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Monday 14 January 2013
Corey “Coop” Lidell Sentenced to 22 Years in Prison for Role in Cocaine Distribution ConspiracyRead the Press Release
Memphis, TN – Corey Lidell, a/k/a “Coop,” 32, of Cordova, TN, was sentenced to 264 months in prison for his role in a conspiracy to distribute more than seven kilograms of cocaine, announced U.S. Attorney Edward L. Stanton III.
# # # #
Lidell was a street-level drug dealer involved with a major drug trafficking ring headed by Enricko Marshall and Christopher Boyland. Lidell was charged along with Marshall, Boyland and 11 others in an 11 count superseding indictment on June 5, 2012. Lidell pleaded guilty to one count of conspiracy to possess with the intent to distribute at least five kilograms of cocaine. Twelve of his thirteen co-conspirators are currently awaiting sentencing, and one is awaiting trial.
U.S. Chief District Judge Jon P. McCalla took into account Lidell’s lengthy criminal history in imposing sentence. He also ordered Lidell to serve five years of supervised release.
This case was investigated by Drug Enforcement Administration (DEA) Task Force Officer John Rada, the Shelby County Sheriff’s Office, and Rod Waller, Special Agent with the DEA. This case was prosecuted for the government by AUSA Jerry Kitchen.Cedar City Man Sentenced to Prison for Felony Tax CrimesRead the Press Release
Las Vegas, Nev. – A man who submitted false and fraudulent federal tax returns for himself and others causing hundreds of thousands of dollars of losses to the IRS, was sentenced today to 2½ years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Michael Titus, 49, most recently of Cedar City, Utah, but currently in federal custody, was sentenced by Senior U.S. District Judge Philip M. Pro to 30 months in prison and three years of supervised release, and ordered to pay approximately $300,000 in restitution to the IRS. Titus pleaded guilty on Sept. 4, 2012, to one count of filing a false claim with the IRS.
According to plea agreement, beginning in about 2007, Titus prepared and filed fraudulent federal tax returns for himself and others in Nevada and Utah, for the purpose of obtaining significant tax refunds to which the taxpayer was not entitled. Through his fraudulent practices, Titus caused losses to the IRS of approximately $468,481. Among other things, Titus created fraudulent W-2 forms and claimed false business losses on the tax returns. Specifically on Jan. 9, 2009, Titus prepared and filed a fraudulent tax return for himself and his wife claiming over $450,000 in income from Medco Networks, Inc., as well as significant withholdings and business losses, when Titus knew that he had not been so employed or earned such income and did not have such withholdings or losses. By filing this false and fraudulent return, the IRS issued to Titus a refund of $49,682.
Titus has several prior felony convictions in Missouri and Arkansas for burglary and theft, as well as a gross misdemeanor conviction in Clark County in 2007 for securities fraud.
The case was investigated by IRS Criminal Investigation and was prosecuted by Assistant U.S. Attorney Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Career Criminal Sentenced for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old career criminal was sentenced for possessing a nine-millimeter pistol. United States District Court Judge Joan N. Ericksen sentenced Michael Dennis Stanke, of Lino Lakes, to 180 months in prison on one count of being a felon in possession of a firearm. Stanke was indicted on June 11, 2012, and pleaded guilty on August 9, 2012.
In his plea agreement, Stanke admitted that on March 8, 2012, while visiting his mother at her residence, he took a nine-millimeter Norinco pistol from the house. He then stole a neighbor’s vehicle from a nearby driveway. A few hours later, Minnetonka police stopped the car Stanke was driving and arrested him. The officers found the loaded firearm lying on the front passenger seat, loaded with seven rounds in the magazine.
Because he is a felon, Stanke was prohibited under federal law from possessing a firearm at any time. His prior Ramsey County convictions include third-degree burglary (1989), theft (1989), fleeing a peace officer in a motor vehicle (1991), theft of a motor vehicle (1993), first-degree assault (2000), and first-degree aggravated robbery (2000). In addition, Stanke was convicted in Hennepin County for theft in 1996 and Dakota County for theft of a motor vehicle in 1997.Since at least three of those offenses constituted crimes of violence, Stanke’s sentence in the current federal case was subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. Because the federal criminal justice system does not have parole, Stanke will spend virtually his entire sentence behind bars.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minnetonka Police Department. It was prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Camden County, N.J., Man Admits Illegal Sale of 14 GunsRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man today admitted selling guns without a license and illegally possessing firearms, U.S. Attorney Paul J. Fishman announced.
Eric J. Reed, 44, of Pennsauken, N.J., pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an Information charging him with one count of dealing firearms without a license and one count of transferring a firearm to a previously convicted felon.
According to documents filed in this case and statements made in court:
Between May 2012 and August 15, 2012, Reed bought 14 firearms from Pennsylvania gun shops and gun shows, which he then transferred for resale to his nephew, Ammie Steward, a/k/a “Beav,” a/k/a “B,” 37, of Pennsauken, a previously convicted felon who served a substantial prison term for manslaughter. Steward then resold the firearms.Reed purchased the firearms in Pennsylvania after fraudulently obtaining a Pennsylvania driver’s license. The 14 firearms included five pistols, seven handguns, and two rifles. Steward sold them to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Reed also admitted to using a power tool to obliterate the serial numbers on the 14 guns. A number of the firearms were sold along with ammunition magazines, and seven of the guns were sold along with high-capacity magazines. On at least one occasion, Reed purchased and gave to Steward for resale a firearm (a Kel Tec PLR-16 .223-cal. pistol) along with a box of ammunition. On a separate occasion, Reed purchased and then transferred to Steward for resale a rifle that contained a bayonet. All 14 weapons are now in the custody of law enforcement.
On Dec. 19, 2012, Steward, pleaded guilty before Judge Bumb to one count of dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced March 25, 2013.
The illegal dealing count to which Reed pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine; the transfer of a firearm to a previously convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for April 22, 2013.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Acting Special Agent in Charge Donald J. Soranno, with the investigation leading to today’s guilty plea. He also thanked the Pennsauken Police Department, under the direction of Chief John J. Coffey.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
12-027
Defense counsel: Maggie Moy, Esq., Assistant Federal Public DefenderReed Information
Beaumont Man Pleads Guilty to CarjackingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, TX – United States Attorney John M. Bales announced today that a Beaumont man has pled guilty to federal carjacking charges in the Eastern District of Texas.
ROGELIO ARELLANO TORRES, 19, of Beaumont, Texas, admitted to charges he car jacked a woman last year during a hearing before United States Judge Marcia Crone today in Beaumont. Torres had been indicted on July 11, 2012 and charged with carjacking in a one count indictment.According to information presented in court, on June 24, 2012, Torres forced the woman at knifepoint into her vehicle in the parking lot of the Pappadeaux’s Restaurant in Beaumont. Torres then drove, with her captive, to a bank ATM where he demanded the victim withdraw money from her account. After withdrawing the money, the woman was eventually forced from her vehicle and Torres fled with her car, purse and cell phone.
Torres faces a term of up to 15 years in prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant United States Attorney Joseph R. Batte. ###Bank Robbery Sentencing for Wilmington RobberiesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today REGGIE ANDRE BECKTON, 27, of Wilmington, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 300 months imprisonment followed by 3 years of supervised release. He was also ordered to pay $689.00 in restitution to the New Bridge Bank and $2,240.00 to RBC Bank.
On September 12, 2012, BECKTON was convicted on one count of Bank Robbery in violation of Title 18, United States Code, Section 2113(a) and one count of Bank Robbery; Aiding and abetting in violation of Title 18, United States Code, Sections 2113(a) and 2. According to the investigation, BECKTON robbed the RBC Centura Bank located at 5120 Market Street, Wilmington, North Carolina on August 17, 2010. On August 26, 2010, BECKTON robbed the New Bridge Bank located at 704 South College Road in Wilmington.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wilmington Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Attorney General Holder Appoints Chuck Adkins-Blanch as Vice Chairman of the Board of Immigration AppealsRead the Press Release
FALLS CHURCH, Va. – Attorney General Eric H. Holder, Jr., has announced the appointment of Chuck Adkins-Blanch as Vice Chairman of the Board of Immigration Appeals (BIA), effective January 13, 2013.
Mr. Adkins-Blanch received a bachelor of arts degree in 1984 from Grinnell College and a juris doctorate in 1990 from the National Law Center, George Washington University. He has served as a BIA member since 2008. From 2004 to 2008, he served as an immigration judge at the Headquarters Immigration Court and, from 1995 to 2004, Mr. Adkins-Blanch served in EOIR’s Office of the General Counsel, as general counsel from 2000 to 2004, as acting general counsel from 1999 to 2000, and as an associate general counsel from 1995 to 1999. From 1990 to 1995, he worked for the BIA as an attorney advisor entering on duty through the Attorney General’s Honors Program. From 1989 to 1990, he clerked in private practice with the firm of Maggio & Kattar, specializing in immigration and nationality law. Mr. Adkins-Blanch is a member of the District of Columbia and Virginia State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewArmed Career Offender Sentenced to 26 Years in Federal Prison for Hobbs Act Robbery, Federal Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Alphonso D. Johnson, 38, of Providence, a career offender, was sentenced today to 312 months in federal prison for robbing a Providence convenience store clerk at gunpoint in April 2011, and for robbing and assaulting a Providence restaurant owner with a pistol two days later, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
U.S. District Court Judge John J. McConnell, Jr. also ordered Johnson to serve five years of supervised release upon completion of his prison term, Johnson pleaded guilty on October 10, 2012, to two counts of Hobbs Act robbery, two counts of being a felon in possession of a firearm, and use and possession of a firearm during a crime of violence.
United States Attorney Peter F. Neronha commented, “We have today another example of a hardened criminal using an illegal gun to victimize others. We also have another example of such a criminal going to federal prison for a very, very long time. I want to thank the Providence Police for their continuing partnership with this Office, and specifically, for the terrific work of the Providence Police Officers involved in this case.”
Providence Police Chief Colonel Hugh T. Clements added, “Through the tireless efforts of the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives another career criminal is off the street and was prosecuted to the fullest extent of the law. We thank our partners in the U.S. Attorney's office for assisting us in keeping criminals like Johnson off the streets of our city.”
At the time of his guilty plea, Johnson admitted to the court that on April 18, 2011, he robbed a Providence convenience store clerk at gunpoint of several hundred dollars in cash, cigarettes and a box of cigars, and that two days later he robbed a West End restaurant owner at gunpoint of more than $4,300 cash in restaurant proceeds, struck her in the face twice with a .25 caliber pistol and kicked her before fleeing on foot. Providence Police officers quickly canvassed the neighborhood and located Johnson hiding between two parked cars a few blocks away. After a brief foot chase and struggle, Johnson was apprehended.
According to information presented to the court, Johnson, whose criminal record includes multiple convictions as a juvenile, includes felony convictions as an adult for felonious assault, possession of narcotics, simple assaults, domestic assault, and threats to a public official.
Johnson has been detained since his arrest by Providence Police
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
Contact: 401-709-5357
[email protected]"Dr. Smurf" Sentenced to 5 Years Probation for Identity TheftRead the Press Release
PITTSBURGH - A resident of Brick, New Jersey, has been sentenced in federal court to five years probation on his conviction of identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Tadas Petrauskas, 23.
According to information presented to the court, the court was advised that on or about July 16, 2008, Petrauskas, known on the Internet as "Dr. Smurf," sold the user names and passwords of 39 employees of a data hosting center with approximately 10,000 customers, enabling the purchaser to access the data hosting center's computer systems.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, with the assistance of the United States Postal Inspection Service, the National Cyber Forensics Training Alliance, the Computer Crime and Intellectual Property Section of the United States Department of Justice, and Lithuanian authorities, for the investigation leading to the successful prosecution of Tadas Petrauskas.
Sunday 13 January 2013
Man with Prior State and Federal Convictions Robbed Liquor Store and Shot ClerkRead the Press Release
DAYTON ARMED CAREER CRIMINAL SENTENCED TO MORE THAN 29 YEARS IN PRISON
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio was sentenced in U.S. District Court to serve 25 years in prison for an armed robbery he committed in 2009 and an additional 50 months in prison for committing the robbery while on supervised release for earlier federal crimes.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the sentence handed down today by U.S. District Judge Walter H. Rice.
Fugate pleaded guilty on August 28, 2013 to one count of interference with interstate commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act).
According to a sentencing memorandum filed by Assistant U.S. Attorney Mary Beth Young prior to today’s hearing, Fugate robbed the Kwik-N-Kold convenience store on Wyoming St. in Dayton, Ohio at gunpoint in November 2009. During the robbery, Fugate shot a male store clerk. The bullet fired at the male clerk struck the victim in the right arm, traveled through his chest cavity, and punctured his right lung, resulting in permanent loss of a portion of the lung. Fugate stole a cash register tray and plastic tip jar and approximately $465 in cash. Fugate led two citizens who followed him as he fled the robbery in a chase throughout the surrounding area, during which he brandished and discharged a firearm.
Dayton Police officers recovered the cash register tray, tip jar, $168 cash, and the Smith and Wesson handgun used during the robbery from the residence to which Fugate fled. At the time of the robbery, Fugate was on supervised release after serving time in federal prison for armed bank robbery and use of a firearm in a crime of violence and a separate federal charge of attempted escape. He also had two prior Ohio burglary convictions, for which he also served prison terms.
“The offense conduct is all the more disturbing in light of Fugate’s history, which places this offense as only the most recent in a string of violent offenses committed by Fugate,” Assistant U.S. Attorney Young wrote.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who prosecuted the case.
# # #Anderson, S.C. Attorney Pleads Guilty to ObstructionRead the Press Release
Defendant Made False Statements To Federal Authorities During Investigation Of Client Indicted on Drug Conspiracy Charges
GREENVILLE, S.C. – Charles Anderson, an attorney in Anderson, S.C., pleaded guilty to obstruction charges in federal court today before U.S. District Judge Michelle Childs in Greenville, S.C., announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Greenville District Office, and Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s plea hearing, Anderson, 44, pleaded guilty to one count of making materially false statements to a department or agency of the United States. Court records show that Anderson represented Lonnie Maddox, who is currently facing federal drug charges in South Carolina, stemming from a large-scale cocaine conspiracy. Court records indicate that on five occasions from February 21 to March 15, 2013, Anderson lied to federal agents concerning his knowledge of the whereabouts of two vehicles Maddox had purchased with the illegal proceeds of his drug dealings.
According to the charging documents and information presented in court, Anderson knew where Maddox’s Yukon Denali sport utility vehicle was located, but repeatedly denied this fact to DEA and HSI agents. Anderson further lied to law enforcement about his participation in moving the Denali, which was ultimately recovered at the residence of Anderson’s law partner. Court records also show that Anderson initially lied to federal agents about possessing another one of Maddox’s vehicles, a classic Chevrolet Chevelle. Anderson later admitted to law enforcement that he had in fact possessed the Chevelle but then lied about the location from where he had obtained the vehicle.
“Lawyers are officers of the court, sworn to protect the law and adhere to a professional code of ethics. Anderson’s actions were illegal, unethical but most importantly compromised the integrity of our legal system. Any attorney who puts personal gain above professional responsibility has no business practicing law,” said U.S. Attorney Tompkins.
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “Drug trafficking often leads to morally debased actions of those involved, which was the case during this investigation. This attorney was licensed to practice law, but this does not mean that he was above the law. Now, the full measure of the justice system will appropriately deal with his criminal actions. This investigation would have not been possible without the collaborative efforts of our local, state and federal law enforcement counterparts.”
“Mr. Anderson overstepped his role as a zealous advocate for his client, which led him afoul of the law,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Georgia and the Carolinas. “By lying to federal investigators, Mr. Anderson betrayed his responsibilities as an officer of the court and will pay a heavy price for his malfeasance.”
Anderson has been released on bond. At sentencing, he faces a maximum prison term of five years, a $250,000 fine, or both. A sentencing date has not yet been set.
The case was investigated jointly by the DEA and HSI. The prosecution is being handled for the government by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.
Friday 11 January 2013
White Horse Man Pleads Guilty to Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Cliff Marshall, Jr., age 35, of White Horse, South Dakota, appeared before U.S. District Judge Roberto A. Lange on January 9, 2013, and pled guilty to an indictment that charged him with Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both.
The conviction stems from an incident on June 8, 2012, when Marshall assaulted the victim resulting in serious injuries that required hospitalization. The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 1, 2013. The defendant has been ordered to self-report on or before March 1, 2013, to the U.S. Marshal’s Service.
West Hartford Man Who Filed False Tax Returns Is SentencedRead the Press Release
January 11, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that MICHAEL P. WEINSTEIN, 70, of West Hartford, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to two years of probation, the first six months of which WEINSTEIN must serve in home confinement, for filing false tax returns. WEINSTEIN also was ordered to pay a fine of $100,000 and to forfeit more than $143,000.
According to court documents and statements made in court, WEINSTEIN lawfully engaged in gambling in Connecticut and elsewhere. In 2009, WEINSTEIN had approximate gambling winnings of $448,400 and gambling losses of $268,990, resulting in net winnings of approximately $179,410. In April 2010, WEINSTEIN signed and filed his 2009 U.S. Individual Income Tax Return, Form 1040, which under reported his income. Consequently, he failed to pay an additional $50,235 in federal taxes that were owed for 2009.
In 2010, WEINSTEIN had approximate gambling winnings of $475,800 and gambling losses of $475,800, resulting in net zero gambling winnings. On his 2010 tax return, WEINSTEIN failed to report his gambling winnings or losses, which affected the Alternative Minimum Tax on his return, and which resulted in his not paying $1,405 in federal taxes.
On October 3, 2012, WEINSTEIN waived his right to indictment and pleaded guilty to one count of filing a false federal income tax return.
As part of the resolution of this case, WEINSTEIN has paid more than $97,000 in back taxes, interest and penalties for the 2009 and 2010 tax years. WEINSTEIN also has forfeited $143,562.46, which the IRS seized in November 2011 from two of WEINSTEIN’s bank accounts pursuant to a court-authorized seizure warrant.
This matter was investigated by the Internal Revenue Service – Criminal Investigation with the assistance of the Stamford Police Department. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]West Carrollton Man Sentenced for Food Stamp Fraud, Conspiracy and Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Edward “Ed” Claude Jones, 55, of West Carrollton was sentenced to 24 months in prison, 3 years of supervised release, and agreed to a $300,000 money judgment relative to committing conspiracy, food stamp fraud and tax crimes in connection with two businesses in which he was involved, the InBetween Quick Mart in Moraine and Arrow Battery in West Carrollton.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down by U.S. District Judge Thomas M. Rose.
The Dayton Major Crimes Task Force, which is part of the Ohio Organized Crime Investigations Commission in Attorney General DeWine’s Office, investigated the case.
According to court documents, Jones and others conspired between February 2009 and February 2011 to hide money received from the sale of counterfeit goods or the illegal purchase of Electronic Benefit Transfer “food stamp” cards by cashing 12 checks of more than $10,000 each and failing to file reports required by the Bank Secrecy Act involving large cash transactions.
Jones also filed an income tax return with the IRS using the name “Randy Banker”, a deceased individual, and a Social Security number belonging to an individual in Westerville, Ohio in an effort to conceal income he received.
Stewart commended the cooperative investigation by the task force agencies which include the Internal Revenue Service Criminal Investigation (IRS), the U.S. Department of Agriculture Office of Inspector General – Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Ohio Bureau of Criminal Investigation (BCI), the Ohio Investigative Unit, and the police departments in Centerville, Kettering, West Carrollton, Moraine and Oakwood, and the Tactical Crime Suppression Unit. He also commended Assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
PLEAS:
Brett Keiling , 48, of Granger, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of threatening to assault an employee of the United States with the intent to interfere with the performance of official duties. Sentencing has been set for 4/15/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Jose Nevarez, 36, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of structuring transactions to evade reporting requirements.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Internal Revenue Service Criminal Investigation Division.This case is being prosecuted by Assistant United States Attorney William Grimmer.
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.
DISPOSITIONS:
Christopher Peter, 35, of Mishawaka, Indiana, was sentenced by District Judge Jon DeGuilio to 60 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime.According to documents filed by the government in this case, Peter admitted that he grew marijuana in the garage at his residence located in Mishawaka, Indiana.He had a loaded Hi-Point 9mm semiautomatic pistol that was hidden in the ceiling of the basement which he could easily access. He possessed this firearm in furtherance of possessing and manufacturing marijuana. This case was the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Montell Williams, 33, of Chicago, Illinois, pled guilty before Senior District Judge Rudy Lozano to the felony offense of transporting for prostitution.Sentencing has been set for 4/25/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Laurie Brezinski, 43, of Schererville, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of embezzlement from a corporation engaged in the business of insurance and filing a false income tax return.Sentencing has been set for 4/4 13.These charges were filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Jacqueline Jacobs.
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.
DISPOSITIONS:
Nathaniel Milligan, Jr., 43, of East Chicago, Indiana, a defendant in the case US v Webb et al., was sentenced by District Judge Joseph Van Bokkelen to 51months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of conspiracy to distribute crack cocaine and conspiracy to distribute marijuana.This case was the result of an investigation by the Drug Enforcement Administration and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorneys Joshua Kolar and Jill Koster.
Kimberlyn Cross, 49, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 27 months imprisonment, restitution of $121,600.00 and 1 year of supervised release after pleading guilty to the felony offense of wire fraud.According to documents filed by the government in this case, Cross pled guilty and admitted her role in a scheme to defraud the Indiana Family and Social Services Administration (“FSSA”).Cross ran a fake daycare at the expense of Indiana citizens. Her conduct involved a high level of sophistication – including paying kickbacks to some mothers to gain access to their swipe cards and repeatedly submitting false information to the State giving the impression a daycare operated at her home. In reality, for many months, no daycare existed. Cross used others, including minors, to steal $121,600 from FSSA and $17,683.81 from a business providing food services to FSSA. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Gerardo Lozano, 35, of Hobart, Indiana, was sentenced by Chief Judge Philip Simon to 21 months imprisonment, restitution of $5,136.00 and 1 year of supervised release after pleading guilty to the felony offense of paying a bribe to an agent of local government receiving federal funds.According to documents filed by the government in this case, Lozano formed Greentree Builders in 2006.From 2007 through 2009 Lozano’s business received 1.3 million dollars from East Chicago, the School City of East Chicago and the East Chicago Public Library. In 2008, Lozano provided free home renovations to Frank Ramirez, Treasurer for the School City of East Chicago with the intent to influence Ramirez with respect to contracts issued by the school city of East Chicago, a local government that received more than $10,000 in federal funds during 2008. This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Wayne Alan Partin 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 January 11, 2013, before U.S. District Judge Dana L. Christensen, WAYNE ALAN PARTIN, a 52-year-old resident of Butte, appeared for sentencing. PARTIN was sentenced to a term of:
- Prison: 120 months
- Special Assessment: $200.00
- Supervised Release: 10 years
PARTIN was sentenced in connection with his guilty plea to conspiracy to distribute controlled substances and accessing with intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorneys Timothy J. Racicot and Cyndee L. Peterson, the government stated it would have proved at trial the following:
In early August 2011, law enforcement officers in Butte received information about a large quantity of prescription medication located at a local residence. The landlords of the residence evicted the tenants and later found a white, five-gallon bucket and a small lunch cooler that were filled with various pills, and a metal box containing smaller boxes with a white, powdery substance.
The bucket of pills had "Stericycle," a bar code, and an SKU number on it. Stericycle is a medical waste disposal company in Butte. An investigating officer interviewed the manager of Stericycle, who said he was not aware of that particular bucket, but confirmed that one of the former tenants of the above-referenced residence had been employed by Stericycle, though he had been terminated.
On August 16, 2011, agents interviewed both former tenants of the residence where the bucket was found. The tenants reported receiving the bucket from PARTIN and buying drugs from PARTIN for approximately three years, including oxycontin, hydrocodone, morphine, and methamphetamine. The tenants said that PARTIN had stolen the drugs from Stericycle - where he was then employed - and described helping PARTIN move several containers of prescription pills from one residence to another in approximately July 2011.
Also on August 16, 2011, officers from Probation and Parole in Silver Bow County, along with the case agents, conducted a probation search of PARTIN's residence in Butte. During the search, officers seized approximately 61,583 pills (controlled and non-controlled substances), Stericycle storage containers, sharps containers, needles, forceps and other medical waste, handwritten notes that appear to describe and identify pills, books used to identify pills, printed images that appeared to be child pornography, and a computer.
A forensic examiner analyzed the computer and determined that between January 2010 and August 2011, PARTIN searched for and viewed child pornography online. The images depicted minors engaged in sexually explicit conduct. In addition, PARTIN used the computer to conduct searches aimed at identifying various pills and prescription medication.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARTIN will likely serve all of the time imposed by the court. In the federal system, PARTIN 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 U.S. Department of Homeland Security - Homeland Security Investigations and the Butte-Silver Bow Law Enforcement Agency.
Virginia Man Sentenced for Trafficking in Counterfeit Gm Diagnostic EquipmentRead the Press Release
WASHINGTON – A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office.
Justin DeMatteo, 31, of Saxe, Va., was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his Sept. 26, 2012, guilty plea to one count of trafficking in goods bearing counterfeit marks. In addition to his prison term, DeMatteo was sentenced to three years of supervised release and ordered to pay restitution of $328,500 (the full amount of GM’s losses). At DeMatteo’s plea proceeding, the court entered a consent order of forfeiture requiring him to forfeit $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011.
In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded “Tech 2” vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.
DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.
The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit, as part of “Operation Engine Newity,” an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and the FBI Richmond Division.
The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The sentencing announced today was the result of one of many enforcement efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Valentine Woman Sentenced for Wire FraudRead the Press Release
US Attorney Brendan V. Johnson announced that a Valentine, Nebraska, woman convicted of one count of Wire Fraud and one count of Theft from Gaming Establishment on Indian Lands was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Michelle Carrier, age 37, was sentenced to 6 months’ probation, $10,000 in restitution, and $200 to the Victim Assistance Fund.
Between February 1, 2008, and June 30, 2009, Carrier used her position as a payroll clerk for the Rosebud Casino to embezzle funds by manipulating the payroll system in order to pay herself more than what she was entitled to receive. She pled guilty to the charges on October 10, 2012.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Two Baltimore Women Indicted in Scheme to Use Victims’ Personal Information to Steal Social Security BenefitsRead the Press Release
Allegedly Duped Victims into Providing Their Personal Identifying Information by Claiming That the Victims Had Won the Jamaican National LotteryBaltimore, Maryland - A federal grand jury returned a superseding indictment late yesterday charging Scerena Simpson Genus, age 35, and Doreen Spence, age 50, both of Baltimore, in connection with a scheme to steal social security benefits. The superseding indictment adds a conspiracy count to the original indictment, returned on October 11, 2012.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Michael Ryan of the Social Security Administration - Office of Inspector General, Office of Investigations, Criminal Investigations; and Brian Crane, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General.
According to the seven count superseding indictment, from August 2011 to February 2012, co-conspirators in Jamaica called social security beneficiaries (the victims) and informed them that they had won the Jamaican National Lottery. The co-conspirators elicited personal identifying information from the victims, including their names, addresses, social security numbers and dates of birth, by promising to wire lottery winnings to the victims once they provided their personal information. The Jamaican co-conspirators allegedly used the victims’ personal information to apply for Direct Express debit cards in the names of the victims and requested that the victims’ monthly social security benefits be loaded onto the debit cards. The Jamaican co-conspirators provided a mailing address for the cards on Finney Avenue in Baltimore.
The indictment alleges that Spence and Genus received the debit cards at the Finney Avenue house and used the cards to make purchases and cash withdrawals at ATM’s in Maryland. Immediately after Spence had made cash withdrawals from the victims’ debit cards, she allegedly wired funds to the Jamaican co-conspirators. The Jamaican co-conspirators instructed one or more of the victims to wire funds directly to Spence, who then rewired a portion of those funds to the Jamaican co-conspirators.
The defendants face a maximum sentence of five years in prison and a fine of $250,000 for conspiring to commit wire fraud; 10 years in prison and a fine of $250,000 for access device fraud; and a mandatory minimum sentence of two years in prison consecutive to any other sentence on each of five counts of aggravated identity theft. Initial appearances have been scheduled on January 18, 2013 in U.S. District Court in Baltimore. Both defendants are released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the Social Security Administration - OIG and Department of the Treasury - OIG for their work in the investigation. Mr. Rosenstein praised Special Assistant U.S. Attorney Paul Nitze and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Tulalip Tribal Member Charged in Death of ToddlerRead the Press Release
An enrolled member of the Tulalip Tribes was charged today with second degree murder and two counts of criminal mistreatment related to the October, 2012 death of her young daughter and the neglect of her second daughter, announced U.S. Attorney Jenny A. Durkan. CHRISTINA D. CARLSON will make her initial appearance in U.S. District Court in Seattle at 2:30 today.
CARLSON was transferred to federal custody this morning and the criminal complaint was unsealed. The complaint describes how on October 8, 2012, emergency crews were called to an address on Marine Drive NE on the Tulalip Tribal Reservation where CARLSON was performing CPR on her 19-month-old daughter who was unresponsive on a blanket on the ground. The child was unconscious, not breathing and covered in urine and feces. A second child, a 33-month old girl, was found strapped in her car seat in a nearby vehicle. The child was pale, unresponsive and covered in urine and feces. The girl was transported to the hospital and later recovered. The 19-month old child died and the Snohomish County Medical examiner classified the manner of death as homicide by parental neglect. According to the report the child was malnourished and dehydrated, weighing only 19 pounds. The child’s skin in the diaper area was excoriated and infested with maggots. Her hair was infested with lice.
The investigation revealed that CARLSON had been living in the car with the girls on the property since mid-September. On October 8, 2012 CARLSON had left the girls in the car while she went to use a phone at the residence on the property. CARLSON was away from the car for more than an hour by some estimates. About 20 minutes after the neighbors told her to go back to the car and her children, CARLSON returned asking them to call 9-1-1 because the youngest child was unresponsive.
Second Degree Murder is punishable by up to life in prison. Criminal mistreatment is punishable by up to ten years in prison. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tulalip Tribal Police and the FBI.
Staten Island Man Found Guilty in Synthetic Drug CaseRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A Staten Island man accused of supplying a local video store operator with synthetic drugs commonly known as “bath salts” was found guilty late Thursday evening of a variety of related charges following a four-day jury trial in the United States District Court for the Western District of Virginia in Charlottesville.
Stephen Dominick McFadden, 52, of Staten Island, New York, was indicted in February 2012 on one charge of conspiracy to distribute three separate controlled substance analogues and eight counts of distributing controlled substance analogues. On Thursday evening, a federal jury found the defendant guilty of all nine charges.
“This verdict demonstrates that synthetic drugs, or bath salts, are illegal to buy and sell under federal law,” United States Attorney Timothy J. Heaphy said today. “The analogue statute provides a powerful weapon to prosecute bath salt distribution, and we will use that weapon as part of a broad strategy to reduce the use of these dangerous substances. We must combine our investigation and prosecution of those who traffic synthetic substances with education and inform the public about the volatility of synthetic drugs. People should be aware that use of these substances may place you in federal prison or a hospital.”
According to evidence presented during the four-day trial by Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney and Assistant Commonwealth’s Attorney for the City of Charlottesville, Joe Platania, McFadden was the primary source of bath salts for Lois McDaniel, a local distributor of the drugs and former owner of C-ville Video, the venue from which she, and her employees, sold bath salts. McDaniel previously pleaded guilty to federal drug conspiracy charges associated with her involvement with McFadden.Evidence showed that McDaniel ordered bath salts from McFadden via text messages and the telephone every week or two. After receiving the order, McFadden would overnight ship the bath salts from Staten Island to Charlottesville. The jury heard evidence that McFadden was obtaining these substances from China. After hearing recorded phone calls during the trial, the jury concluded that McFadden and McDaniel were conspiring together to distribute the bath salts. Through other evidence, including expert witness testimony, the jury also found that the bath salts at issue in this case had similar chemical structures to controlled substances. The government also proved that McFadden knew the bath salts he was sending to Charlottesville were for human consumption and produced similar physical effects on users as controlled substances.
In addition to McDaniel, Dustin Wayne Orange, of Charlottesville, previously pleaded guilty to federal charges related to the sale of bath salts. Orange has admitted to selling bath salts while working at C-ville Video.
The investigation of the case was conducted by the Drug Enforcement Administration, the Jefferson Area Drug Enforcement Task Force and the Investigations Division of the Charlottesville Police Department. Assistant United States Attorney Ronald Huber and Special Assistant United States Attorney Joe Platania prosecuted the case for the United States.
St. Francis Man Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, man convicted of Involuntary Manslaughter was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Dino Dean Kane, age 23, was sentenced to 40 months in custody, 2 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Kane was indicted by a federal grand jury on August 22, 2012, and pled guilty to the charge on October 10, 2012.
The conviction stems from an incident that took place on August 4, 2012, when Kane was driving a motor vehicle recklessly and could not keep the vehicle on the roadway. The victim died from injuries sustained in the crash.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Tim Maher.
Kane was remanded to the custody of the United States Marshal.
Southern Illinois Resident Sentenced for Deliberately Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Michael Douglas, 31, of O’Fallon, Illinois was sentenced today in the United States District Court for the Southern District of Illinois, East St. Louis Division for defrauding the unemployment insurance program. Following his plea of guilty on September 17, 2012, to a one-count indictment for Embezzlement of Public Funds, the District Court sentenced Douglas to a 5 month term of incarceration to be followed by a 3 year term of supervised release. Douglas will spend the first 5 months of his supervised release term subject to home confinement. He also was ordered to repay approximately $17,470 in restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of his guilty plea, Douglas admitted to being employed between January 2009 and December 2009 while also filing for and receiving unemployment insurance benefits. In order to receive the benefits, Douglas had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that he was not working and that he was ready, willing, and able to work. He also had to verify that he was actively seeking work. Douglas was supposed to inform IDES of any income he received during the certification period, but he did not report that he was employed and earning money, instead choosing to collect both wages and benefits simultaneously. Between January and December of 2009 Douglas collected $21,264 in employment insurance benefits to which he was not entitled; however, Douglas repaid some of the money he stole prior to his sentencing, resulting in a lower restitution figure.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; the United States Postal Inspection Service; and the Illinois Department of Employment Security. This case was prosecuted by Assistant United States Attorney Katherine L. Lewis.
Six Defendants Indicted in $4.5 Million Mortgage Fraud SchemeRead the Press Release
Defendants Used Sanford Title Services and Shell Companies to Fraudulently Disburse Settlement Proceeds to ThemselvesBaltimore, Maryland - A federal grand jury has indicted six defendants for conspiracy in a $4.5 million mortgage fraud scheme:
- Bonnie Kathleen Kreamer, a/k/a “Bonnie Meehan,” age 47, of Riva, Maryland;
- Niesha Williams, age 33, of Fort Washington, Maryland;
- Rhonda Scott, age 51, of Oxon Hill, Maryland;
- Emeka Udeze, age 37, of Bowie, Maryland;
- Demetrius Peete, age 45, of Manassas, Virginia; and
- Gregory Green, age 49, of Waldorf, Maryland.
The indictment was returned on December 18, 2012 and unsealed today upon the arrests of Kreamer, Peete and Green.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Gene E. Morrison, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
The indictment alleges that Kreamer worked at Sanford Title Services LLC located at 8900 Snowden River Parkway, Columbia, Maryland. In 2002, her Maryland license to issue title insurance policies was revoked. From June 2008 to January 2010, Kreamer, Williams, Scott, Udeze and Peete allegedly arranged for individuals, including Green, to buy and sell real estate so they could improperly obtain money from the transactions. Kreamer, Williams, Scott, Udeze and Peete are alleged to have created multiple versions of settlement statements to deceive lenders, lien holders, buyers and sellers; and arranged for proceeds from mortgage transactions to be disbursed to shell companies created by the defendants in order to disguise that the money was really for their benefit. Kreamer and Sanford Title failed to make required disbursements of settlement funds to pre-existing lien holders, funneling the money instead to themselves.
According to the indictment, Green, a former contract specialist with the Office of Justice Programs, U.S. Department of Justice, agreed to make false representations to lenders when applying for real estate loans, in return for secretly receiving a portion of the real estate proceeds to use as a down payment and for the monthly mortgage payments.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The defendants face a maximum sentence of 20 years in prison and a $250,000 fine for the conspiracy. An initial appearance has been scheduled today at 3:30 p.m. in U.S. District Court in Baltimore for Kreamer, Peete and Green.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice - OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office for assisting in this case, and Assistant United States Attorney Harry Gruber, who is prosecuting the case.
Shelton Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
January 11, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ARTHUR GALLOWAY, 38, of Shelton, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department, Federal Bureau of Investigation conducted a court-authorized search of GALLOWAY’s residence and seized a laptop computer, an external hard drive and other items. Investigators determined that GALLOWAY used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that GALLOWAY possessed 11 printed photographs, 913 images and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
Judge Arterton has scheduled sentencing for April 17, 2013, at which time GALLOWAY faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
GALLOWAY has been released on bond under electronic monitoring by the U.S. Probation Office since shortly after his arrest.
This matter is being investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Felice M. Duffy.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Saxe Man Sentenced for Trafficking Counterfeit GM Diagnostic EquipmentRead the Press Release
ALEXANDRIA, Va. – A Virginia man was sentenced today in federal court to serve one year and one day in prison for selling counterfeit General Motors (GM) automotive diagnostic devices used by mechanics to identify problems with and assure the safety of motor vehicles, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, FBI Assistant Director Ronald T. Hosko of the Criminal Investigative Division and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office.
Justin DeMatteo, 31, of Saxe, Va., was sentenced by Senior U.S. District Judge Claude M. Hilton in the Eastern District of Virginia, following his Sept. 26, 2012, guilty plea to one count of trafficking in goods bearing counterfeit marks. In addition to his prison term, DeMatteo was sentenced to three years of supervised release and ordered to pay restitution of $328,500 (the full amount of GM’s losses). At DeMatteo’s plea proceeding, the court entered a consent order of forfeiture requiring him to forfeit $109,074 in criminal proceeds and all facilitating property and contraband seized during the execution of search warrants at his business and home on Dec. 15, 2011.
In court documents, DeMatteo admitted he sold counterfeit GM Corporation-branded “Tech 2” vehicle diagnostic systems between January and May 2011. The Tech 2 is a hand-held computer used to diagnose problems in vehicles that use electronic controls and interfaces. For newer vehicles, GM designed a new diagnostic interface – the Controller Area Network diagnostic interface (CANdi) module, which serves as an enhancement to the Tech 2 and completes the interface necessary to communicate with future on-board computer systems.
DeMatteo also admitted he offered for sale purported Tech 2 units and CANdi modules that bore counterfeit GM marks. DeMatteo sold the counterfeit Tech 2 units on eBay and accepted payment via PayPal. DeMatteo purchased the units from unauthorized manufacturers in the People’s Republic of China (PRC) and in many cases had them drop-shipped directly from the PRC to U.S. customers. On Dec. 15, 2011, federal agents executed search warrants at DeMatteo’s residence in Saxe and place of business in South Boston, Va. Among other things, agents seized numerous counterfeit GM Tech 2 units and CANdi modules, and various computer equipment and documents that contained evidence linking DeMatteo to the sale of the counterfeit Tech 2 units. According to the stipulated statement of facts and plea agreement, the number of Tech 2 and CANdi units sold by DeMatteo or seized during the searches totaled nearly 100. The retail price of 100 authentic products would have been more than $380,000.
The case was prosecuted by Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and was investigated by the FBI’s Intellectual Property Rights Unit, as part of “Operation Engine Newity,” an international initiative targeting the production and distribution of counterfeit automotive products that impact the safety of the consumer, and the FBI Richmond Division.
The FBI is a full partner at the National Intellectual Property Rights Coordination Center (IPR Center). The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. The IPR Center uses the expertise of its 19 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property (IP) theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and the war fighters. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The sentencing announced today was the result of one of many enforcement efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.San Antonio Man Sentenced to Federal Prison for Ammunition SmugglingRead the Press Release
In San Antonio this morning, United States District Judge sentenced 31-year-old Edward Sandoval to 41 months in federal prison followed by three years of supervised release for purchasing approximately 40,000 rounds of ammunition to be smuggled into the Republic of Mexico, announced United States Attorney Robert Pitman and Homeland Security Investigations Acting Deputy Special Agent in Charge Monica Mapel.
On September 6, 2012, the San Antonio resident pleaded guilty to one count of aiding and abetting the smuggling of goods from the United States. According to the factual basis filed in this case, in January and February 2011, Sandoval admittedly purchased a total of approximately 40,000 rounds of multiple caliber ammunition, including 7.62 caliber and .223 caliber, from a San Antonio gun shop for a friend who informed Sandoval that the ammunition was destined for Mexico via Eagle Pass, Texas. Sandoval further admitted that he was paid $1,500 each time he purchased ammunition for others. In February 2011, authorities in Eagle Pass seized approximately 15,000 rounds of ammunition purchased by Sandoval prior to it being smuggled into Mexico.
This case was investigated by agents with Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark Roomberg prosecuted this case on behalf of the Government.
Rosebud Man Pleads Guilty to AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that Kelly Crow Dog, age 27, of Rosebud, South Dakota, appeared before US District Judge Roberto A. Lange on January 10, 2013, and pled guilty to one count of Assault Resulting in Serious Bodily Injury. The maximum penalty upon conviction is 10 years of imprisonment, $250,000 fine, or both.
The charge stems from an incident on August 7, 2012, when Crow Dog argued with the victim, grabbed her hair and shirt, threw her on the ground, placed a knife on her throat, and stabbed her left hand.
The investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Marie H. Ruettgers is prosecuting the case. Crow Dog was released and ordered to self-report on January 14, 2013. A sentencing date has been set for April 8, 2013.
Physician Pleads Guilty to Drug Fraud ChargeRead the Press Release
CONCORD – Douglas McCullom, 52, pled guilty in United States District Court for the District of New Hampshire to one count of fraudulently obtaining controlled substances, announced United States Attorney John P. Kacavas.
According to documents that were filed in United States District Court, McCullom is a doctor of osteopathic medicine who is licensed to practice medicine in Maine. He worked as a physician for the Department of Veterans Affairs in New Hampshire. In 2010, McCullom wrote approximately 17 prescriptions for oxycodone and OxyContin that were not documented in the medical records of one of his patients. Some of these prescriptions were written for the patient after McCullom was placed on worker’s compensation leave. The patient has stated that he later provided some of these pills to McCullom.
McCullom had a registration with the Drug Enforcement Administration (DEA) that allowed him to write prescriptions for controlled substances. As part of his plea agreement, McCullom has agreed to surrender his DEA registration and never to seek another DEA registration. He also must advise the licensing authorities in Maine about his conviction and is scheduled to be sentenced on April 15, 2013.
In November of 2012, McCullom entered into a separate civil settlement agreement to resolve allegations that he violated federal regulations when he issued prescriptions that were not for a legitimate medical purpose and were outside the scope of his DEA registration. While not admitting any wrongdoing, McCullom paid $25,000 to resolve his potential civil liability.
The case was investigated by the Office of Inspector General of the Department of Veterans Affairs and the Drug Enforcement Administration. The Office of Inspector General of the Office of Personnel Management also provided assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Owners of Woodbridge Home Health Business Convicted for Health Care Fraud, Aggravated Identity TheftRead the Press Release
ALEXANDRIA, Va. – The owners of a Woodbridge, Va.-based home health care business have been convicted by a federal jury in Alexandria, Va., for submitting numerous false claims to Medicaid for reimbursement for services they did not provide.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Ken Cuccinelli, Attorney General of Virginia; and Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by United States District Judge Claude M. Hilton.
Irvine Johnston King, 46, and Aisha Rashidatu King, 40, of Woodbridge, were convicted of conspiracy to commit health care fraud, which carries a maximum penalty of 10 years in prison; 22 counts of health care fraud, which each carry a maximum penalty of 10 years in prison; and two counts of aggravated identity theft, which carry a consecutive mandatory penalty of two years in prison. Sentencing is scheduled for March 22, 2013.
According to court records and evidence at trial, the Kings owned and operated Bright Beginnings Healthcare Services, a business that provided in-home personal and respite care and private duty nursing services to Medicaid-eligible individuals. From at least March 2008 through June 2011, the Kings defrauded Medicaid by submitting false claims to Medicaid for services that were not provided, providing fabricated documentation in connection with an audit, and instructing an employee to lie to Medicaid about claims billed by Bright Beginnings. In addition, the Kings instructed an employee to convince a patient’s mother to lie to Medicaid regarding the false claims and asked the parent of a patient to sign blank Medicaid time sheets that were used as a basis to bill Medicaid for services that the Kings knew had not been performed.
The Kings also used – without lawful authority to do so – the name, date of birth, and insurance identification number of a patient on claims seeking reimbursement from Medicaid.
The investigation was conducted by FBI Washington Field Office and the Virginia Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Timothy D. Belevetz and Special Assistant U.S. Attorney and Virginia Assistant Attorney General Steven W. Grist of the Virginia Attorney General’s Office are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of Gemstar Capital Group Private Equity Company Pleads Guilty to Role in Approximately $40 Million Ponzi SchemeRead the Press Release
FORT WORTH, Texas — Jeffrey J. Sykes, 54, of San Bernardino County, California, pleaded guilty this morning before U.S. District Judge John McBryde to two counts of securities fraud stemming from a Ponzi scheme he ran in connection with his ownership of Gemstar Capital Group, Inc. (Gemstar), a California-based private equity company. For each count of securities fraud, Sykes faces a maximum statutory penalty of five years in prison, a $250,000 fine and restitution. Sentencing is set for April 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Sykes owned and operated Gemstar out of Redlands, California. In 2006, Sykes and “M.K.,” an individual who lived in Westlake, Texas, met at a golf tournament. Sykes told M.K. that Gemstar was a venture capital company interested in investing in emerging growth companies and that Gemstar was looking to supplement its planned venture capital operations by engaging a brokerage firm to assist it in buying and selling U.S. Treasury Bills (T-Bills).
M.K. asked Sykes whether he could participate, and in April 2007, Sykes and M.K. entered into an agreement in which M.K. would solicit investors to participate in the T-Bill trading program described by Sykes. The next month, M.K. formed a limited liability company, known as KCG, and began to solicit investors. Using information Sykes provided, M.K. secured approximately 37 investors who invested approximately $24,617,441. M.K. sent the money, minus fees he withheld for himself, to Gemstar to be invested by Sykes. However, unbeknownst to the investors, neither KCG or Gemstar was engaged in any T-Bill trading program at the time of M.K.’s solicitations.
In addition to the funds that M.K. raised, Sykes personally raised approximately $22,488,539 from investors by making representations about a T-Bill trading program that were materially false or omitted material facts. In fact, none of the money was invested in a T-Bill trading program. Instead, Sykes and M.K. used some of the money for personal expenses. Some of the money was invested in ventures that the investors were unaware of and had not given their consent to participate in. Some of the money was returned to investors, although in some cases, Sykes falsely claimed that the funds represented the return of capital and/or profits from the T-Bill trading program.
Although Sykes used some of the investments he received for personal expenses, to pay partners, and for other purposes, he held a large portion of the invested funds in low-risk money market accounts. Because a substantial portion of the funds received from investors were held in these accounts, investors were able to recover some of their investments.
All told, accounting for payments made to investors during the course of the scheme and money returned to investors after the termination of the scheme, investors collectively lost approximately $12,981,597. This amount includes losses incurred by the investors solicited by M.K., whose funds he subsequently sent to Sykes after taking a fee for himself.
The two counts of securities fraud to which Sykes is pleading specifically stem from false Gemstar account statements that Sykes used to deceive investors about the value of their investments.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.
(The case is being investigated by the U.S. Postal Inspection Service and the FBI. Assistant U.S. Attorney Jay S. Weimer is in charge of the prosecution.
Owner of Clark’s Auto Sales Sentenced for Dealing in Illegal Explosives and Falsifying Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Earl Clark, 40, of Franklin, Ohio, was ordered to forfeit two bank accounts containing $353,211.91 and $33,388.14, plus $21,524 in U.S. currency, nine automobiles, and a trailer, and to pay $80,000 in restitution to the Internal Revenue Service (IRS) for committing violations of money laundering, dealing in explosives without a license, and willfully filing a false federal income tax return with the IRS, relative to his ownership of Clark’s Auto Sales. Clark was also sentenced to serve 12 months and one day in prison, 3 years of supervised release, and fined $10,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms and Explosives (ATF); Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and members of the Warren County Drug Task Force, announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, Earl Clark has owned and operated Clark’s Auto Sales since 2004. Clark assisted several individuals in concealing their assets, which represented the proceeds of illegal drug sales. Between 2007 and October 2010, Clark sold cars to individuals he knew as “dope boys,” a term to describe people engaged in the sale of illegal narcotics. Clark titled these cars in the names of individuals other than the drug dealers in order to help conceal ownership of the vehicles, and he placed false liens of the vehicles, in efforts to prevent law enforcement from trying to seize the property as proceeds of drug trafficking.
Clark laundered the proceeds from the illegal auto sales by depositing cash, totaling between $120,000 and $200,000, into his bank account.
Clark also sold illegal fireworks between June 2009 and June 2010 from his auto dealership, an activity which constitutes explosives dealing under Federal law. Clark did not have a license to distribute, possess, or sell these explosive materials.
In addition, Clark earned significant income between 2004 and 2009 from the sale of fireworks and explosive materials but failed to report some of that income on his federal tax returns. Clark willfully failed to report at least $80,000 in income per year during each of these tax periods, resulting in a tax loss to the IRS in excess of $80,000.
Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office stated, “Not only was Earl Clark sentenced to significant jail time, but the government seized a significant portion of the illegal proceeds through asset forfeiture. IRS, Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Stewart commended the cooperative investigation by agents of the IRS Criminal Investigation, ATF, DEA, and the Warren County Drug Task Force, along with Assistant U.S. Attorney Brent Tabacchi, who is prosecuting this case.
Open Mri in Brunswick, Douglas, and Savannah Pays More Than $1.2 Million for False MedicareclaimsRead the Press Release
Government alleged that MRI procedures were conducted without adequate supervision.
SAVANNAH, GA: Diagnostic Systems, Inc. d/b/a Open MRI of Savannah; Southeast Georgia Open MRI d/b/a Open MRI at Fountain Lake, and Open MRI of Douglas, have agreed to pay the United States $1,273,126 to settle allegations that those facilities submitted false claims to Medicare, Georgia Medicaid, TRICARE, and the Federal Employees Health Benefit Program (FEHBP), for certain MRI procedures that were not supervised as required by a physician. A MRI is a common medical imaging technique. With certain MRI procedures, a contrast agent (e.g., dye) may first be injected into a patient to produce a clearer diagnostic picture. The use of contrast, however, could pose significant health risks to a patient. For this reason, under Medicare regulations, MRI procedures with contrast require a physician to be present or immediately available to handle any emergencies that may arise. MRI facilities generally receive a higher rate of reimbursement for procedures that use a contrast agent (as opposed to MRIs without contrast).
The Government alleged that from approximately January 2007 to October 2011, Open MRI facilities in Brunswick, Douglas, and Savannah performed hundreds of MRI procedures using contrast but without any physician supervision. In most instances, only clerical staff and a technician were on site during the procedures. Open MRI then billed various federal health care programs for those unsupervised procedures.United States Attorney Edward J. Tarver said, “Health care providers cannot put profits above patient safety. Medicare, Medicaid and other federal health care programs operate on the honesty of its providers, and this office will actively pursue those who misuse the programs for financial gain.”“Health care providers must provide beneficiaries adequate physician supervision for services that require such standards,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “The OIG will vigorously pursue providers who shortcut Medicare regulations in exchange for profit.”In connection with the settlement, Open MRI also entered into a five-year corporate integrity agreement with the Government which contains provisions intended to ensure the company’s compliance with Medicare regulations in the future.
The civil investigation and settlement were handled by the United States Attorney’s Office for the Southern District of Georgia, with the assistance of Special Agent Mark Creamer from the United States Department of Health and Human Services, Office of Inspector General. The United States was represented by Assistant United States Attorney Edgar Bueno.
For additional information, please contact First Assistant United States Attorney, James D. Durham at (912) 201-2547.Ocean County, N.J., Man Pleads Guilty to Distributing Infant Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man today admitted using a computer in his home to distribute images of child pornography, including images of infants, U.S. Attorney Paul J. Fishman announced.
Arthur Frazer Jr., 34, of Lanoka Harbor, N.J., pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Frazer admitted distributing images of infant child pornography via email using a computer located in his residence in December 2010. He also admitted to possessing more than 600 images of child pornography on his computer and accessories, which were seized from his residence in February 2012. Frazer acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. Frazer was previously charged by Complaint with distribution of child pornography in February 2012 and has been in custody since his arrest.
The count to which Frazer pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years supervised release, and a $250,000 fine. Sentencing is scheduled for April 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Crimes Squad assigned to Innocent Images, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense Counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Frazer Information
North Side Man Pleads Guilty in Identity Theft SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to charges of conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Joseph Dees, a/k/a Joseph Lee, a/k/a Jay Dees, 52, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Dees conspired with other persons to obtain unauthorized credit card account information to purchase merchandise in stores in Pennsylvania and West Virginia.
Judge Schwab scheduled sentencing for April 23, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, in addition to a mandatory minimum sentence of 24 months incarceration, and a fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Secret Service conducted the investigation that led to the prosecution of Dees.
Norris Man Sentenced for Involuntary ManslaughterRead the Press Release
US Attorney Brendan V. Johnson announced that a Norris man convicted of Involuntary Manslaughter was sentenced on January 10, 2013, by US District Judge Roberto A. Lange. Mark Clairmont, age 38, was sentenced to 33 months in custody, 2 years of supervised release, and $100 to the Victim Assistance Fund.
Clairmont was indicted for Involuntary Manslaughter by a federal grand jury on June 12, 2012. The charge stems from an incident occurring on February 17, 2012, when Clairmont was driving a motor vehicle at approximately 79 miles per hour, had been drinking alcoholic beverages, and was under the influence of alcohol. Claimant lost control of the vehicle; it traveled into a ditch and rolled. The victim was ejected through the rear window of the vehicle and died on scene. Claimant’s blood alcohol level was determined to be .281, two hours after the crash. Claimant pled guilty to Involuntary Manslaughter on October 9, 2012.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Clairmont was immediately turned over to the custody of the US Marshal.
New Zealand Fishing Company and Chief Engineer Sentenced for Environmental Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON – A New Zealand fishing company that owned and operated the tuna fishing vessel San Nikunau, and a former chief engineer on the ship, were sentenced in federal court today for environmental crimes and obstruction of justice, announced Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney for the District of Columbia Ronald C. Machen Jr.
Sanford Ltd. was ordered to pay a criminal fine of $1.9 million and pay $500,000 in community service to the National Marine Sanctuaries Foundation for the benefit of the Fagatele Bay National Marine Sanctuary in American Samoa. The former Chief Engineer James Pogue was sentenced to 30 days in jail to be followed by two years of supervised release and ordered to pay a criminal fine of $6,000.
“Companies, like Sanford, who benefit from fishing in the oceans and selling their catch in the U.S. must comply with the laws that protect the oceans,” said Assistant Attorney General Moreno. “Today’s sentence makes clear that companies, like Sanford, who deliberately break the law by discharging oil waste into the ocean over a period of years and lie to the U.S. Coast Guard (USCG) about their activities, will be held fully accountable under U.S. laws.”
“Deliberately polluting our oceans is not only harmful to our environment– it is criminal,” said U.S. Attorney Machen. “Today’s sentence sends a clear message to owners and operators of commercial vessels who illegally dump oily waste and try to cover it up. We are committed to protecting our precious natural resources and will punish companies and individuals who ignore their obligations to our planet and future generations.”
“Some of the world's most pristine marine ecosystems are located in the South Pacific and it is important that the rule of law is regarded and respected even in the most remote areas,” said Captain Joanna Nunan, USCG Commander, Coast Guard Sector Honolulu and Captain of the Port in American Samoa. “The U.S. Coast Guard is committed to working with the maritime community to help ensure compliance with these environmental standards.”
According to the government’s evidence, in July 2011, the U.S. Coast Guard conducted a Port State Control examination when the vessel returned to Pago Pago, American Samoa. The investigation revealed that the vessel had been routinely discharging oily waste water, without first using equipment to clean the waste water, and making false entries or no entries in an oil record book that vessels are required to maintain accurately, all in violation of international and U.S. laws.
According to evidence presented at trial, Sanford Ltd. operates the fishing vessel San Nikunau, a vessel that routinely delivers tuna to a cannery in Pago Pago. Over the past five years, Sanford was paid over $24 million for tuna deliveries. Sanford Ltd. was convicted of numerous charges including conspiracy and causing the vessel to enter into the port of Pago Pago with a knowingly falsified oil record book. Sanford Ltd. was also convicted of failing to maintain an accurate oil record book and failing to disclose that required pollution prevention equipment had not been used on the vessel. Sanford Ltd. was also convicted of discharging machinery space bilge waste into the port of Pago Pago without using required pollution prevention equipment, including the oil water separator.
Pogue, of Idaho, served as the chief engineer on the vessel between 2001 and 2010. Pogue was convicted of failing to maintain an oil record book for the vessel and failing to account for transfers of machinery space bilge waste to other areas of the vessel. In addition, Pogue was convicted of intending to influence a Coast Guard investigation by falsely stating in the oil record book that required pollution prevention equipment had been used when it had not.
This case was investigated by the U.S. Coast Guard. The case was prosecuted by Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia and James E. McLeod, a Special Assistant U.S. Attorney from U.S. Coast Guard headquarters.
New Zealand Fishing Company and Chief Engineer Sentenced for Environmental Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON – A New Zealand fishing company that owned and operated the tuna fishing vessel San Nikunau, and a former chief engineer on the ship, were sentenced in federal court today for environmental crimes and obstruction of justice, announced U.S. Attorney Ronald C. Machen Jr. and Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division.
Sanford Ltd. was ordered to pay a criminal fine of $1.9 million and pay $500,000 in community service to the National Marine Sanctuaries Foundation for the benefit of the Fagatele Bay National Marine Sanctuary in American Samoa. The former Chief Engineer James Pogue was sentenced to 30 days in jail to be followed by two years of supervised release and ordered to pay a criminal fine of $6,000.
“Deliberately polluting our oceans is not only harmful to our environment– it is criminal,” said U.S. Attorney Machen. “Today’s sentence sends a clear message to owners and operators of commercial vessels who illegally dump oily waste and try to cover it up. We are committed to protecting our precious natural resources and will punish companies and individuals who ignore their obligations to our planet and future generations.”
“Companies, like Sanford, who benefit from fishing in the oceans and selling their catch in the U.S. must comply with the laws that protect the oceans,” said Assistant Attorney General Moreno. “Today’s sentence makes clear that companies, like Sanford, who deliberately break the law by discharging oil waste into the ocean over a period of years and lie to the U.S. Coast Guard (USCG) about their activities, will be held fully accountable under U.S. laws.”
“Some of the world's most pristine marine ecosystems are located in the South Pacific and it is important that the rule of law is regarded and respected even in the most remote areas,” said Captain Joanna Nunan, USCG Commander, Coast Guard Sector Honolulu and Captain of the Port in American Samoa. “The U.S. Coast Guard is committed to working with the maritime community to help ensure compliance with these environmental standards.”
According to the government’s evidence, in July 2011, the U.S. Coast Guard conducted a Port State Control examination when the vessel returned to Pago Pago, American Samoa. The investigation revealed that the vessel had been routinely discharging oily waste water, without first using equipment to clean the waste water, and making false entries or no entries in an oil record book that vessels are required to maintain accurately, all in violation of international and U.S. laws.
According to evidence presented at trial, Sanford Ltd. operates the fishing vessel San Nikunau, a vessel that routinely delivers tuna to a cannery in Pago Pago. Over the past five years, Sanford was paid over $24 million for tuna deliveries. Sanford Ltd. was convicted of numerous charges including conspiracy and causing the vessel to enter into the port of Pago Pago with a knowingly falsified oil record book. Sanford Ltd. was also convicted of failing to maintain an accurate oil record book and failing to disclose that required pollution prevention equipment had not been used on the vessel. Sanford Ltd. was also convicted of discharging machinery space bilge waste into the port of Pago Pago without using required pollution prevention equipment, including the oil water separator.
Pogue, of Idaho, served as the chief engineer on the vessel between 2001 and 2010. Pogue was convicted of failing to maintain an oil record book for the vessel and failing to account for transfers of machinery space bilge waste to other areas of the vessel. In addition, Pogue was convicted of intending to influence a Coast Guard investigation by falsely stating in the oil record book that required pollution prevention equipment had been used when it had not.
This case was investigated by the U.S. Coast Guard. The case was prosecuted by Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia and James E. McLeod, a Special Assistant U.S. Attorney from U.S. Coast Guard headquarters.
13-008Multiple Defendants Sentenced This Week for Distribution of Cocaine and Possession of Illegal Firearms in U.S. District Court Located in Paducah, KentuckyRead the Press Release
PADUCAH, Ky. – Jessie Haskins of Christian County, Kentucky, plead guilty to possession and distribution of cocaine in United States District Court before Senior Judge Thomas B. Russell on January 10, 2013. According to the plea agreement, on December 30, 2009 and January 2010 and February 11, 2012, Haskins was recorded selling cocaine to a confidential informant. The amounts sold were 2.371 grams, 2.35 grams and 2.985 grams. Two of the transactions took place at the defendant’s home. At sentencing Haskins faces a combined maximum sentence of 90 years in prison and a $3,000,000 fine. He is scheduled for sentencing on April 24, 2013 at 11:30am in U.S. District Court.
Torrino Edwards, of Paducah, Kentucky, was sentenced to 70 months in federal prison, followed by three years of supervised release, on January 10, 2013, by Senior Judge Thomas B. Russell on January 10, 2103 for possession and distribution of crack cocaine. According to court records, Torrino admitted to selling and possessing crack cocaine on four separate occasions in November and December of 2010, and February of 2011. Sales were made in Paducah, Kentucky to a confidential informant. Edwards has two prior felony convictions in McCracken County Court.
Christopher Watkins, of Christian County, Kentucky, was sentenced to 100 months in prison followed by four years of supervised release, by Senior Judge Thomas B. Russell on January 10, 2013 for possession and distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm. According to court records, Watkins admitted to selling crack cocaine in April and May of 2009. The crack cocaine was sold to a confidential informant. The amounts were 11.8 grams, 57.6 grams and 36.5 grams of crack cocaine. Further, Watkins admitted to being a felon in possession of a firearm and selling a Bryco Arms 9mm semiautomatic pistol to a confidential informant.
Melvin Stamps Moore of Christian County, Kentucky was sentenced in U.S. District Court by Senior Judge Thomas B. Russell on January 10, 2013 to 92 months in prison followed by four years of supervised release, after pleading guilty to possession and distribution of cocaine base also known as crack cocaine. According to court records, Moore admitted in August and 2010 on two occasions that he sold crack cocaine. The sales to a confidential informant were recorded and were greater than 28 grams.
Donnell Brodie of Christian County, Kentucky was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 120 months in federal prison followed by three years of supervised release. Brodie plead guilty in United States District Court on September 18, 2012 to possession and distribution of crack cocaine on four occasions in April, 2011.
Reginald R. Buchanan, Jr. of Christian County, Kentucky plead guilty before Senior Judge Thomas B. Russell, in U.S. District Court on January 10, 2013 to a single count of possession of a firearm and ammunition by a convicted felon. At sentencing, Buchanan faces a maximum sentence of 10 years in prison and a fine of $250,000.
Brandon S. Walker was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 51 months in federal prison followed by two years of supervised release, after entering a guilty plea to a single count federal indictment charging him with possession of a firearm by a felon. According to the court documents, on February 22, 2011, in Paducah, Kentucky, Walker possessed and sold a Glock GMBH, Model 22, .40 caliber semiautomatic pistol and 9 rounds of Smith & Wesson .40 caliber ammunition. The weapon was forfeited to the United States Government. Walker had previously been convicted of felony crimes in Jefferson County and McCracken County in 2000 and 2002.
All cases were prosecuted by Assistant United States Attorneys for the Western District of Kentucky and the cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Western Kentucky Gun Crimes, Hopkinsville Police Department, the Paducah Police Department, Christian County Sheriff’s Department and the U.S. Drug Enforcement Administration (DEA).
Mt. Carmel Accountant Indicted for 40 Counts of Alleged Fraud and Money Laundering for Financially Exploiting an Elderly VictimRead the Press Release
A Mt. Carmel resident was indicted by the federal grand jury on January 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Kevin C. Williams, 52, was indicted for 35 counts of wire fraud and five (5) counts of money laundering.
The Indictment alleges that Williams developed a personal relationship with an elderly Mt. Carmel resident that enabled him to exert influence over the investment and distribution of her income. The Indictment charges that Williams engaged in a lengthy scheme to defraud the victim, by stealing her money while she was alive and altering her will and trust documents so that he would stand to inherit more of her money upon her demise.
Williams is charged with wire fraud for 35 separate financial transactions related to a series of thefts where he obtained a total of $1,521,169.34 from the victim. He is alleged to have transferred her funds into his personal checking accounts, his personal savings accounts, his business accounts, and to pay his mortgage. Each count of wire fraud is punishable by not more than 20 years’ imprisonment, and/or a $250,000 fine, and not more than three years of supervised release.
The first money laundering count charges a transaction in which Williams stole $15,000 from the victim that was deposited into his personal savings account. He is alleged to have engaged in a subsequent financial transaction in which he used more than $10,000 of the proceeds of that theft to transfer money into a separate business account. This offense is punishable by not more than 10 years’ imprisonment, and/or a $250,000 fine, and not more than one year of supervised release.
The remaining counts of the Indictment charge that Williams provided the victim with phony account statements so that she would believe that her money was safely invested when in truth much of her money had been stolen. The remaining money laundering counts allege that Williams engaged in a series of financial transactions designed to deceive the victim into believing that she was receiving interest payments from investments - when no such investments really existed. The Indictment alleges that Williams misappropriated the victim’s money to buy cashier’s checks, but then he misrepresented those cashier’s checks to be the proceeds of her investments, when in truth and in fact no such investments existed. This type of money laundering is punishable by not more than 20 years’ imprisonment, and/or a $500,000 fine, or both and not more than three years of supervised release.
Williams was arrested and subsequently arraigned in US District Court on January 10, 2013, at which time the Indictment was unsealed. His trial is scheduled to begin on March 11, 2013.
The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigations, the Illinois Securities Department, and the US Department of Labor. The case is being prosecuted by Assistant United States Attorneys Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Missouri Man Sentenced for Firearm OffenseRead the Press Release
Travis L. Garner, 26, from St. Louis, MO, was sentenced on January 11, 2013, in District Court in East St. Louis, Il, on one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Garner was sentenced to 63 months in prison, three years of supervised release, fined $400 and ordered to pay $100 special assessment. He also forfeited a firearm. Garner, who had previously pled guilty, admitted that he had possessed a gun, knowing that he was a convicted felon and that it was illegal for him to have a gun.
Prior to April 5, 2012, Garner had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
The investigation was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Madison County Sheriff’s Office.
This was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission man convicted of Assault with a Dangerous Weapon was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Byron Eagleman, age 31, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
The conviction stems from an incident that took place on April 30, 2012, when Eagleman, who was highly intoxicated, cut and stabbed the victim while the victim attempted to prevent a fight between Eagleman and another person.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Marie H. Ruettgers.
Eagleman was remanded to the custody of the United States Marshal.
Michael Page Charged with Federal Drug ViolationRead the Press Release
MICHAEL PAGE, age 36, a resident of Slidell, Louisiana, was charged today in a one-count indictment by a Federal Grand Jury for conspiracy to distribute and possess with intent to distribute cocaine base (“crack”), announced United States Attorney Dana J. Boente.
According to court documents, PAGE conspired with others, known and unknown from February of 2010 until September of 2010 to distribute and possess with intent to distribute at least 28 grams of crack cocaine.
If convicted of this offense, PAGE faces a maximum of 40 years of incarceration, a maximum fine of $5,000,000, and four years of supervised release.
U.S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.This case was initiated by the Narcotics Unit of the St. Tammany Parish Sheriff’s Office and investigated with assistance from the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
(Download Indictment )
Maryland Man Sentenced to Eight Years in Prison in Robbery That Led to Victim’s Death-Victim, Stabbed in the Attack, Died Weeks Later-Read the Press Release
WASHINGTON – Reco Coates, 22, of Upper Marlboro, Md., was sentenced today to eight years in prison after earlier pleading guilty to voluntary manslaughter in the death of a man following a robbery in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coates pled guilty in November 2012 in the Superior Court of the District of Columbia. He was sentenced by the Honorable William M. Jackson. Following completion of his prison term, Coates will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 12, 2007, at about 5:30 p.m., Coates and others set out to rob the victim, Anthony Collins, 39, in an apartment in the 100 block of 34th Street SE. The robbers, including Coates, knocked on the front door and claimed to want to buy illegal drugs from Mr. Collins. When Mr. Collins opened the door, one robber shoved a gun through the doorway and said words to the effect of, “You know what time it is.”
Mr. Collins then attempted to slam the door shut and barricade it with his body as he was being stabbed by the robbers on the other side. The robbers gained entry into the apartment, stabbed and cut Mr. Collins with knives and stole crack cocaine before fleeing.
Mr. Collins was transported by ambulance to a hospital. During the course of his treatment, Mr. Collins’s condition deteriorated. After lapsing into a coma, Mr. Collins died in the hospital on Dec. 28, 2007. A subsequent autopsy determined that the cause of death was complications from the stab wound to the chest and that the manner of death was homicide.
After Mr. Collins’s death, Coates gave a statement to the Metropolitan Police Department (MPD) in which he admitted being one of the robbers who participated in the crime. During the litigation, he disavowed these statements.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the Sixth District of the MPD. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharad Khandelwal (now with the U.S. Attorney’s Office for the Southern District of Texas); Victim Witness Advocates Tamara Ince and Marcia Rinker; Paralegal Specialists Kelly Blakeney and Marian Russell; Librarian Lisa D. Kosow; Kimberly Smith and Leif Hickling of the Litigation Technology Unit, and Interns Roland Achtau and James Perkins. Finally, U.S. Attorney Machen praised the work of Assistant U.S. Attorneys Shana Fulton and Deputy Chief Michelle Jackson, both of the Homicide Section, who prosecuted the case.
13-007Manhattan U.S. Attorney Announces Charges Against 16 Alleged Members of Bronx Armed Robbery Crew That Impersonated Police OfficersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian R. Crowell, the Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Raymond W. Kelly, the Commissioner of the New York City Police Department (“NYPD”), and Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), today announced the filing of a Complaint charging 16 alleged members of a Bronx, New York, armed robbery crew who impersonated police officers. The defendants were charged with robbery conspiracy, narcotics conspiracy, and firearms offenses. All 16 of the defendants, who were arrested Wednesday night, were presented yesterday in Manhattan federal court. In connection with the arrests, federal agents seized, among other things, five loaded semi-automatic firearms and a loaded pistol, .45 caliber and .380 caliber ammunition, shirts bearing the word “Police,” tactical gear, and a hydraulic ram similar to those used by law enforcement to break down doors.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, this was a marauding gang of armed and violent thieves in the Bronx who masqueraded as police officers in order to trick their narcotics-dealing targets so they could steal their drugs and their cash. This is the latest in a string of multi-defendant arrests in the Bronx and Manhattan this week that underscore our commitment to making the streets in this district safer for their residents.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “While most New Yorkers were sleeping last night, our Drug Enforcement Task Force arrested and removed alleged members of an extremely violent, armed and sophisticated drug gang. They were the drug world’s version of a James Bond style robbery crew, utilizing fake police equipment, law enforcement badges, replica vehicles complete with emergency lighting and outfitted with complex traps to hide illegal and loaded firearms. As alleged, this crew was comprised of sixteen members who tried to conceal themselves as cops to rob, steal and plunder. This is yet another investigation epitomizing the extreme violence that surrounds drug trafficking and I commend the men and women of our task force from the NYPD, the NYSP, and the DEA for steadfastly wading into harm’s way to protect our citizens.”
NYPD Commissioner Raymond W. Kelly said: “The NYPD and federal partners will continue to crack down on drug dealers and guns in the Bronx and elsewhere, and the NYPD Internal Affairs Bureau will thoroughly investigate any instances of alleged police impersonation. The impersonators will be pursued and prosecuted.”
NYSP Superintendent Joseph A. D’Amico said: “The collaborative efforts of the Drug Enforcement Task Force, including the New York State Police, the Drug Enforcement Administration, and the New York City Police Department, have resulted in the arrests of a number of dangerous individuals. We will not tolerate this type of activity in our state. These individuals allegedly masqueraded as police officers with the intent to commit crimes. Ensuring the public’s continued safety is our ultimate goal. By arresting the alleged members of this dangerous drug gang, our streets are now safer.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court:
On December 17, 2012, JAVION CAMACHO met with a confidential informant (“CI-1”) working at the direction of the DEA. During that meeting, CI-1 told JAVION CAMACHO that a shipment of heroin was going to be arriving in New York City after the holidays, and that he wanted him to use force to steal the shipment. CAMACHO told CI-1 he had a robbery crew of police impersonators who would be able to carry out the robbery for him. During subsequent meetings CAMACHO and his brother JULIO CAMACHO, among others, expressed their interest in robbing the group of drug traffickers and their stash house, which the defendants believed, based on representations made by CI-1, would contain at least 20 kilograms of heroin.
On the evening of January 9, 2013, the defendants – JAVION and JULIO CAMACHO, ALEX CESPEDES, GARY SANCHEZ, MANUEL PIMENTEO, DOMINGO VASQUEZ, BENJAMIN JIMINEZ, RAFAEL HUERTA, OSCAR NORIEGA, VICTOR JOSE GOMEZ, JOSHUA ROMAN, VICTOR E. MORAL, RAMON JIMINEZ, ALI A. HUSAIN, LOUIS BORRERO, and OLIVER F. FLORES – assembled at a location in the Bronx, and then traveled in tandem in five different vehicles to a location identified by CI-1 where they planned to use force in order to rob the purported heroin traffickers.
Upon arriving at the specified location, the defendants were placed under arrest and their vehicles were searched. Two of the vehicles contained secret compartments, or “traps,” designed to conceal contraband. One of the vehicles contained a mechanized device that, when operated by the vehicle’s driver, would cover the vehicle’s license plate with a steel plate. The vehicle searches conducted at the time of arrest resulted in the seizure of six loaded firearms, including a .45 caliber High Point, two .380 caliber semi-automatic firearms for which the make has not been identified, a .9 mm Beretta, a .45 caliber Glock, and a silver pistol. The defendants were also found to be in possession of: shirts bearing the word “Police;” tactical vests similar to those used by law enforcement; a hydraulic ram similar to those used by law enforcement to break down doors; a police scanner; handcuffs; zip-ties similar to those used by law enforcement to handcuff individuals; bolt-cutters; walkie-talkies; a purported law enforcement shield; a baseball bat; a crowbar; ski masks; gloves; GPS units similar to those used by law enforcement to track suspects; and a “rabbit pump” which is a tool used by law enforcement to break down doors.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum and mandatory minimum penalties that they face, is attached.
Mr. Bharara praised the DEA, the NYPD, and the NYSP for their work in the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorney Rachel Maimin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)U.S. v. Javion Camacho, et al. Complaint
Manassas Woman Indicted After Allegedly Purchasing More Than 25 Firearms in 15 DaysRead the Press Release
Pistol Purchased on Nov. 17, 2012, Allegedly Recovered on Nov. 30, 2012 During Arrest of Suspected Narcotics Trafficker
ALEXANDRIA, Va. – Kimberly Yvette Dinkins, 44, of Manassas, Va., has been indicted by a federal grand jury accused of purchasing more than 25 firearms to illegally sell to others, along with lying to federal agents about those purchases.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the indictment was returned.
“Kimberly Dinkins is accused of purchasing a high volume of handguns in 15 days, at least one of which made it into the hands of a suspected drug trafficker,” said U.S. Attorney MacBride. “Illegal gun dealing is a serious crime, and we applaud the ATF for their quick work in putting this case together.”“When offenders indiscriminately put guns on the streets that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Acting SAC Newman. “ATF’s mission and priority is to deny criminals access to firearms and to protect the rights of law abiding citizens.”
On Jan. 10, 2013, Dinkins was indicted and charged with dealing firearms without a license and making a materially false statement, which each carry a maximum penalty of five years in prison, if convicted. She was previously charged through a criminal complaint and arrested on Dec. 13, 2012, and she has remained in federal custody since her arrest pending further court action.
According to court records, Dinkins does not have a license to deal in firearms. From Nov. 17, 2012, through Dec. 1, 2012, she attended three Virginia gun shows on three consecutive weekends and allegedly purchased more than 25 semi-automatic handguns from dealers. One of the firearms allegedly purchased by Dinkins at a gun show in Chantilly, Va., the weekend of Nov. 16-18, 2012, was recovered during the arrest of a suspected narcotics trafficker on Nov. 30, 2012 in Prince George’s County, Md.
The indictment alleges that during an interview on Dec. 3, 2012, Dinkins falsely stated that she had sold all of the firearms she had purchased at the three gun shows, despite still being in possession of some of the firearms.
This investigation is being conducted by ATF’s Washington Field Division. Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Pleads Guilty to Impeding and Intimidating ProsectorRead the Press Release
A Minnesota man who interfered with a federal prosecutor while engaged in his official duties pled guilty on January 10, 2013, in federal court in Davenport.Timothy Demuth, age 51, from Plymouth, Minnesota, pled guilty to one count of opposing, impeding, intimidating, and interfering with a federal employee while engaged in official duties.
At the plea hearing, Demuth admitted that on February 14, 2011, he was present in a federal courtroom in Davenport, Iowa, at the time sentence was imposed upon his son, Scott Demuth, in Southern District of Iowa criminal case number 09-CR-00117. The Court imposed a six-month term of imprisonment upon Demuth’s son. The Court also ordered Demuth’s son to be immediately remanded to the custody of the United States Marshal. Demuth was surprised and upset that his son was not permitted to self-surrender. Demuth walked out of the of the courtroom. Court was then adjourned, and Demuth began to re-enter the courtroom. Demuth admitted that, as he re-entered the courtroom, he bumped shoulders with the prosecutor, and then intentionally stepped to the side, directly in front of the prosecutor, thereby opposing, impeding, intimidating, and interfering with the prosecutor as he attempted to exit the courtroom. An FBI agent then intervened to escort Demuth from the courtroom.
Sentencing before United States District Court Judge John A. Jarvey has been set for May 16, 2013, at 10:30 am in Davenport, Iowa. Demuth remains free on bond previously set pending sentencing. Demuth faces a possible maximum sentence of not more than one year imprisonment without the possibility of parole; a $100,000 fine, $25 in special assessments, and up to one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the United States Marshals Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-00105.
Lummi Nation Tribal Members Sentenced to Prison for Stabbing DeathRead the Press Release
Two Lummi Nation members who fought with a third Tribal member, with one of them stabbing him to death, were sentenced today in U.S. District Court in Seattle to prison terms for involuntary manslaughter, announced U.S. Attorney Jenny A. Durkan. JOHNATHAN CASEY PHAIR, 25, was sentenced to five years in prison and three years of supervised release, and DEZI-REY THOMAS LOUIE, 22, was sentenced to four years in prison and three years of supervised release. The two pleaded guilty in September 2012 to the December 17, 2011, stabbing death of Lamar Felipe James at a home on Lummi Tribal land. At today’s sentencing U.S. District Judge Richard A. Jones said, “This was a brutal and devastating crime. And what caused both of you to be involved? Drugs.”
According to the plea agreements, LOUIE and PHAIR went to the home on Lummi Tribal land to purchase drugs. LOUIE brought some electronics to the house to sell or exchange for drugs. LOUIE met with James in a back room of the home. The two men got into a physical fight. PHAIR rushed into the room with a butcher knife and stabbed James multiple times. One of the wounds severed an artery. PHAIR and LOUIE ignored James’ serious wounds and failed to call for help. Instead they fled the home and tried to conceal their guilt by burning their clothes. PHAIR was arrested three days after the attack. LOUIE was arrested on December 24, 2011.
The case was investigated by the Lummi Police and the FBI. The case was prosecuted by Assistant United States Attorneys Susan Roe and J. Tate London. Ms. Roe and Mr. London serve as Tribal Liaisons for the United States Attorney’s Office.
Lower Brule Man Sentenced for Failure to Register as A Sex Offender and AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that a Lower Brule man convicted of Failure to Register as a Sex Offender and Assault by Striking, Beating and Wounding was sentenced on January 7, 2013, by US District Judge Roberto A. Lange.
Glen Eagle Thunder, age 38, was sentenced to 17 months of imprisonment and 5 years of supervised release on the failure to register charge and 1 month on the assault charge. The sentences are to be served consecutively. Eagle Thunder was on supervised released when he committed the above offenses and was sentenced to an additional 11 months in custody upon revocation to be served concurrently. He is also to pay $110 to the Victim Assistance Fund.
On or about June 22, 2012, Eagle Thunder consumed alcohol and assaulted a family member. He was released on bond and absconded, failing to update his sex offender registration as required. He pled guilty to the charges on October 10, 2012.
The investigation was conducted by the Federal Bureau of Investigation and the US Marshal’s Service. Assistant US Attorney Meghan N. Dilges prosecuted the case.
Eagle Thunder was immediately turned over to the custody of the US Marshal.