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20 February 2013
Justice Department Reaches Settlement with FTD Inc. to Resolve Immigration-Related Retaliation ClaimRead the Press Release
The Justice Department announced today that it reached an agreement with FTD Inc., to resolve allegations that the company retaliated against a man for asserting rights under the anti-discrimination provision of the Immigration and Nationality Act (INA).
The Justice Department initiated the investigation after receiving a complaint from a work-authorized immigrant that FTD rescinded the individual’s conditional job offer after a background check revealed a purported error in his Social Security account number. The man informed FTD that he was authorized to work in the United States and provided documents showing his status. The man also expressed concern to FTD that the company may be violating the anti-discrimination provision of the INA by refusing to hire him and threatened to pursue his legal rights under the INA’s anti-discrimination provision. FTD responded by terminating all communication with the individual.
Under the terms of the agreement, FTD has agreed to pay $1,800 in back pay to the man and $3,000 in civil penalties. FTD has also agreed to undergo Justice Department training on the anti-discrimination provision of the INA. The case settled prior to the Justice Department filing a complaint in this matter.
“People authorized to work in this country should not be afraid to dispute errors in databases relating to their employment eligibility or documents,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “It is unlawful to retaliate against an individual for asserting a right to work under the anti-discrimination provision of the INA.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Lawsuit Against Golden Corral Restaurant for Violation of the Americans with Disabilities ActRead the Press Release
The United States Attorney's Office for the Eastern District of Michigan announced today that it has filed suit against the Golden Corral restaurant in Westland, Michigan for violating the American's with Disabilities Act (ADA) by denying service to a mother and her minor children based on the appearance of the children's skin due to a genetic skin disorder.
The Justice Department's complaint, filed in the U.S. District Court for the Eastern District of Michigan in Detroit, alleges that the manager of the Golden Corral restaurant demanded that Danielle Duford and her four daughters leave the restaurant based on the appearance of the children's skin caused by a genetic skin disorder, epidermolysis bullosa, which causes blisters to form on the skin in response to minor injuries and temperature changes. Despite Ms. Duford informing the restaurant manager of her children's disability and repeatedly emphasizing that they did not have a contagious disease, the manager required the family to immediately leave the restaurant, claiming that he had received complaints from other customers. Title III of the ADA prohibits public accommodations, such as restaurants, from discriminating against people on the basis of disability, or their association with an individual with a disability, in the full and equal enjoyment of the goods or services offered. The lawsuit seeks an injunction against further discrimination, money damages for the victims of the unlawful discrimination, and civil penalties to be paid to the United States. The lawsuit is only an allegation of unlawful conduct by the defendants. The United States will bear the burden of proving the allegations at trial.
"The promise of the Americans with Disabilities Act is that disabled citizens should have full access to public life. We hope that this lawsuit will assist in expanding people's understanding of the range of disabilities and the obligations to treat all disabled citizens fairly under the law," said Barbara L. McQuade, the United States Attorney for the Eastern District of Michigan.
The case is being handled by Assistant U.S. Attorney Susan K. DeClercq in the U.S. Attorney's Office for the Eastern District of Michigan, in collaboration with the Disability Rights Section of the Civil Rights Division of the Justice Department.
More information about the ADA is available at the Justice Department's toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) and via the ADA website at http://www.ada.gov or through contacting the U.S. Attorney's civil rights hotline at 313-226-9151.Joshua Nettles Pleads Guilty to Receipt of Child PornographyRead the Press Release
JOSHUA NETTLES, age 37, of Covington, Louisiana, pled guilty as charged before the Honorable Martin L.C. Feldman to the indictment pending against him, announced United States Attorney Dana J. Boente. A federal grand jury returned a twocount indictment on December 13, 2012, charging NETTLES with receipt of child pornography and possession of child pornography.
According to court documents, NETTLES knowingly received and possessed digital images depicting the sexual exploitation of prepubescent minors, including images of victims younger than four (4) years old. A forensic review of NETTLES’S computer revealed that he had downloaded and saved approximately 1409 files and 14 videos depicting the sexual victimization of these children. NETTLES faces a mandatory minimum term of imprisonment of five (5) years and a maximum penalty of thirty (30) years, followed by up to a life term of supervised release, and a $500,000 fine. He may also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing in this matter has been scheduled for June 12, 2013, at 1:30 p.m. before the Honorable Martin L.C. Feldman.
This case was investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case was handled by Assistant United States Attorney Jordan Ginsberg.
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Honduran National Sentenced to Federal Prison for PerjuryRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced Jimmy Samir Mendoza-Valle (20, Honduras) to 15 months in federal prison for obstruction of justice and perjury charges. Mendoza-Valle pleaded guilty on November 30, 2012.
According to court documents, in June 2012, Mendoza-Valle was one of fourteen defendants in a federal drug-trafficking conspiracy case in the Middle District of Florida. A week prior to trial, Mendoza-Valle filed a motion to dismiss the indictment. The principal contention of his motion was that Mendoza-Valle was actually a minor and, accordingly, the United States should dismiss the indictment.
During the hearing on the motion before U.S. District Judge James S. Moody, Jr., on June 4, 2012, Mendoza-Valle lied under oath and claimed that he had been born on December 10, 1994, and that he was 17 years old. During the hearing, his counsel also offered into evidence a copy of a Honduran birth certificate of Mendoza-Valle, purportedly filed in 1993, reflecting a birth date of December 10, 1994. Subsequent evidence, including a legitimate birth certificate introduced by the United States on June 5, 2012, showed that Mendoza-Valle’s true date of birth was December 10, 1992, and that he was in fact 19 years old on June 4, 2012. At the conclusion of the hearing, Judge Moody ruled that the birth certificate offered by the government was Mendoza-Valle’s true birth certificate.
Mendoza-Valle has since admitted that he lied as to his true age and submitted a false birth certificate to the court during the hearing on June 4, 2012. By attempting to portray himself as a juvenile during that hearing, he admits to erroneously and falsely attempting to influence the hearing in an effort to get the charges against him dismissed.
This case was investigated by the Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Participating agencies include the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the United States Coast Guard Investigative Service (CGIS), the Joint Interagency Task Force - South (JIATFS), and the United States Marshals Service. It was prosecuted by Assistant United States Attorney Matthew Jackson and former Special Assistant United States Attorney Austin Shutt.
Hill District Man Gets Max for Gun CaseRead the Press Release
PITTSBURGH, Pa. - A resident of the Hill District section of Pittsburgh, Pa., has been sentenced in federal court to 10 years incarceration and three years supervised release on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Ernest Thomas Harris, a/k/a Pickle, a/k/a Michael Young, a/k/a Michael Ford, 42, was sentenced on Feb. 15, 2013, by United States District Judge Nora Barry Fischer.
In connection with the Feb. 15 sentencing, the court was advised that Harris was on video brandishing a loaded 40 S&W caliber semiautomatic Glock pistol at the Aces and Deuces bar located at 1400 Fifth Avenue on June 1, 2011. Harris had been previously convicted in multiple cases in the Court of Common Pleas of Allegheny County and one case in the U.S. District Court for the Western District of Pennsylvania. The convictions were for charges including assault, stolen property, theft, drug dealing, threats and firearms. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.
Prior to imposing sentence, the defendant noted that his conviction on 34 previous charges "doesn't look good" and that he had been involved in multiple shootings in the past. He noted that he was a part of the "concrete Vietnam" of street life, resulting in him being shot several times and friends being shot or killed. He also noted that he had previously killed someone in "self-defense". Judge Fischer noted that the defendant had a significant criminal record and showed no convincing remorse for his past criminal behavior. The court determined that the maximum sentence of 10 years federal incarceration was warranted for the actions of Harris.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The gun in this matter was matched by the Allegheny County Crime lab to the one used during the April 6, 2011 murder of 19 year-old Stephon Green in the Hill District. Of the persons allegedly present at the scene of the murder, all have been indicted federally on firearms charges. In addition to Harris, Kedrin "Hoody" Turner faces a minimum of 15 years imprisonment as a result of his June 24, 2010 possession of a 9mm caliber firearm. Calvin "CK" Kane, III was sentenced to 37 months of federal imprisonment as a result of his Feb. 25, 2011, possession of a 45 Auto caliber firearm despite being subject to an active PFA (Protection From Abuse) court order as well as his Jan. 16, 2011 possession of a stolen 9mm caliber firearm. As a result of the federal, state and local investigation, Kane has been charged with the murder of Green and faces a March 11, 2013 trial before Allegheny County Court of Common Pleas Judge Phillip Ignelizi at case # 15977-2012.
In related matters, Bafata "B" Sullivan, the owner of the gun allegedly used by Kane to murder Green, faced federal firearms charges until he died of natural causes on May 9, 2012. Another Hill District felon, Carl "Baby Kong" Stitt, pleaded guilty to violating federal firearms laws and faces sentencing on April 26, 2013.
Individuals with information on the murder of Stephon Green are asked to call the Pittsburgh Bureau of Police Homicide Detectives at 412-323-7161.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Department of Labs and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Harris.
Hayward Woman Pleads Guilty to Filing False ClaimsRead the Press Release
OAKLAND, Calif. – Claudia Robinson, age 39, pleaded guilty yesterday for her role in a false tax refund scheme, United States Attorney Melinda Haag and Special Agent in Charge, IRS Criminal Investigation, Jose M. Martinez announced.
According to her plea agreement, between January 26, 2008, and February 12, 2008, Robinson filed false claims for tax refunds with the IRS in other people’s names. According to her plea, Robinson admitted that the claims listed on the returns were false because the information she listed was largely fictitious, with the exception of the individuals’ identities. Specifically, Robinson admitted the returns were all false because they indicated that: 1) the taxpayer earned income that he or she did not, in fact, earn; 2) the taxpayer lived at the defendant’s residence, her father’s residence, or her sister’s residence, when, in fact, this was false; 3) the taxpayer had a dependent or dependents, when, in fact, the taxpayer did not financially care for such dependent or dependents; and 4) the taxpayer listed on each tax return did not, in fact, view and sign the return.
Robinson also prepared a false income tax return in an individual’s name who did not ask Robinson to prepare a tax return on her behalf. According to court documents, Robinson contacted that individual and offered to pay her to tell the IRS agents that Robinson prepared the return at the individual’s request, which was not true. The Indictment charges Robinson with obstructing the IRS investigation for offering that individual a television in exchange for false testimony.
On September 15, 2011, Robinson, of Hayward, Calif., was charged in a 25-count indictment with wire fraud, false claims, identity theft, and obstructing the IRS. She pleaded guilty to eight counts of filing false claims.
The maximum statutory penalty for each count of False Claims, in violation of Title 18, U.S.C § 287, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In response to these types of cases, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and help U.S. Attorneys’ Offices respond quickly and effectively to the challenges in stolen identity refund fraud cases. To further this goal, Tax Division Directive 144, which took effect on Oct. 1, 2012, was issued to streamline the process for prosecuting these offenses.
Denise Barton and Thomas Newman are the Assistant U.S. Attorneys prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation
Grand Jury Returns Indictment Charging Mark Allen Call with Two Counts of Bank Robbery in Connection with Robberies at Zions Bank Last WeekRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday morning charging Mark Allen Call, age 37, of Layton, with two counts of bank robbery. The indictment alleges Call robbed Zions Bank located at 1420 South 300 West in Salt Lake City twice – once on Feb. 13, 2013, and a second time on Feb. 14, 2013.
Call is scheduled to be arraigned on the charges Thursday at 3 p.m. before U.S. Magistrate Judge Evelyn Furse. The potential maximum penalty for each count of bank robbery is 20 years in prison and a fine of $250,000.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by the FBI and the Salt Lake City Police Department.
Fridley Felon Indicted for Possessing AmmunitionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old felon from Fridley was indicted for possessing 9-millimeter ammunition. Raphael Eric Matthews was charged with one count of being a felon in possession of ammunition.
The indictment alleges that on January 31, 2013, Matthews possessed the ammunition. Matthews was a passenger in a vehicle stopped for a traffic violation, and the ammunition was found on his person. Because he is a felon, Matthews is prohibited under federal law from possessing firearms or ammunition at any time. Matthews’s prior Hennepin County convictions include aggravated robbery (2007) and simple robbery (2012).
If convicted, Matthews faces a potential maximum penalty of ten years in federal prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Frankie Dushane Kindness Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 20, 2013, before Chief U.S. District Judge Richard F. Cebull, FRANKIE DUSHANE KINDNESS, a 39-year-old resident of Crow Agency, appeared for sentencing. KINDNESS was sentenced to a term of:
- Prison: 27 months
- Special Assessment: $100
- Restitution: $2,894.63
- Supervised Release: 3 years
KINDNESS was sentenced in connection with his guilty plea to depredation of government property.
In an Offer of Proof filed by Assistant U.S. Attorney E. Vincent Carroll, the government stated it would have proved at trial the following:
During the early morning hours of March 29, 2012, the FBI was contacted by the BIA Police Department (Crow Agency) regarding an officer involved shooting on River Road, north of Crow Agency. The FBI and BIA started an investigation. The investigation showed that a BIA Police officer was looking for a suspect in an unrelated domestic violence case. As the officer was out on patrol at approximately 2:30 a.m., he came across a car parked on River Road near Crow Agency. KINDNESS was in the driver's seat and her husband was in the passenger seat. The officer stopped his vehicle in front of KINDNESS' vehicle and got out. As the officer approached, KINDNESS put her vehicle in reverse and nearly ran off the road into a ditch as she backed up. She then put the car in drive and drove straight at the officer. KINDNESS swerved, missed the front of the BIA police vehicle, but hit the back bumper. The chase was then "on."
The officer chased KINDNESS' vehicle. Another BIA Police officer parked his police vehicle on River Road in an attempt to block, or slow, KINDNESS. The officer stood adjacent to his vehicle as KINDNESS approached, and he yelled for KINDNESS to stop. KINDNESS did not stop, and hit the front of the officer's vehicle.
The incidents were recorded on both BIA Police vehicles' video cameras. Additionally, paint markings on both police vehicles and on KINDNESS' vehicle show that KINDNESS hit the police vehicles.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KINDNESS will likely serve all of the time imposed by the court. In the federal system, KINDNESS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Former Youth Director Indicted on Additional Child Exploitation ChargesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man was indicted by a federal grand jury today on additional charges for taking a minor across state lines for illegal sexual activity. Today’s charges were added to an earlier indictment for viewing and receiving child pornography over the Internet.
Dennis W. Myers, 52, of Blue Springs, was charged in a five-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Myers formerly served as a youth director at churches in Independence, Mo., and in Arkansas. Today’s superseding indictment replaces an indictment returned on Dec. 12, 2012.
Today’s superseding indictment adds two additional counts of transporting a minor across states lines for illegal sexual activity. The indictment alleges that, on separate occasions between November 1993 and November 1995, Myers transported a child victim (identified as “Jane Doe #1”) across state lines to engage in sexual activity for which he could be charged with a criminal offense under Missouri statutes, that is, statutory sodomy or statutory rape.
The superseding indictment also contains all three counts that were part of the original indictment. The indictment contains the original allegations that Myers accessed the Internet in order to view child pornography between April 1 and Sept. 16, 2011. Myers is also charged with one count of receiving a video of child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former U.S. Army Staff Sergeant Pleads Guilty in Tennessee <br /> to Bribery SchemeRead the Press Release
A former U.S. Army staff sergeant pleaded guilty today to accepting thousands of dollars in bribes from contractors while he was deployed to Iraq, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of Tennessee William C. Killian.
Richard A. Gilliland, 44, of Fayetteville, Tenn., pleaded guilty before U.S. Magistrate Judge Susan K. Lee in the Eastern District of Tennessee to a criminal information charging him with one count of conspiracy to accept illegal bribes.
According to court documents, from October 2007 until November 2008, Gilliland was a U.S. Army staff sergeant who worked with the Civil Affairs Unit at Camp Victory in Iraq and also was assigned as a pay agent responsible for U.S. government funds. As a pay agent, Gilliland was responsible for paying contractors to perform work in accordance with civil development objectives set forth by U.S. Army commanders in furtherance of the strategic mission of Coalition Forces in Iraq.
While deployed to Iraq in October 2007, Gilliland worked closely with two Iraqi contracting companies and their American representatives. Gilliland admitted to receiving approximately $27,200 and a laptop in bribes from American representatives of the contracting companies in return for his attempt to influence contracts for the Iraqi-based contractors and his assistance in acquiring used and non-working generators from the Defense Reutilization and Marketing Office. After receiving the bribes, Gilliland wired the cash payments he received back to the United States.
The case is being prosecuted by Special Trial Attorney Mark Grider of the Criminal Division’s Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR), and Assistant U.S. Attorney John MacCoon of the Eastern District of Tennessee. The case was investigated by SIGIR.
Former Topeka Correctional Employee Sentenced on Federal Gun ChargesRead the Press Release
TOPEKA, KAN. – A former employee of the Topeka Correctional Facility has been sentenced to five years in prison on a federal gun charge, U.S. Attorney Barry Grissom said today.
Anastacio D. Gallardo, 33, Topeka, Kan., pleaded guilty to one count of unlawful possession of a firearm in furtherance of a drug trafficking crime. In his plea, he admitted he was driving a van on Aug. 8, 2012, when the Topeka Police Department stopped him for a traffic violation. A search of the van revealed a tool box between the front seats that was found to contain methamphetamine. Also in the toolbox were a box of baggies, two sets of scales, a radio-frequency scanner and two loaded handguns, including a Smith and Wesson .38 caliber revolver and a Glock .40 caliber pistol.
Grissom commended the Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Former Des Plaines Police Commander Charged with Making False Statements About DUI Arersts in Federal Funding ReportsRead the Press Release
CHICAGO — A former Des Plaines Police Department commander was charged today with making false statements in reports that concealed the suburban department’s failure to meet the requirements of a federally-funded impaired-driving enforcement campaign between 2009 and 2012. The defendant, TIMOTHY VEIT, allegedly inflated by 122 the number of arrests for driving under the influence and provided false information regarding blood-alcohol content levels for the fictitious arrests. As a result, the charges allege that Des Plaines fraudulently obtained $132,893 in federal reimbursement for overtime compensation.
Veit, 55, of Mt. Prospect, was with the Des Plains Police Department for 31 years and was commander of the support services division until he retired last year. He was charged with one count of making false statements in a felony information that was filed today. No date has been set yet for his arraignment in U.S. District Court.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Michelle McVicker, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Transportation Office of Inspector General.
According to the charges, the U.S. Department of Transportation’s National Highway Traffic Safety Administration funded grants to state and local law enforcement agencies to conduct highway safety programs, including the Sustained Traffic Enforcement Program (STEP). Locally, the grants were administered through the Illinois Department of Transportation. The STEP grants required intensive enforcement of specific traffic laws, coupled with other measures, at specific times of the year, particularly on major holidays when alcohol-involved and unbuckled fatalities were highest.
Veit served as project director for the Des Plaines Police Department’s participation in STEP enforcement campaigns and was responsible for certifying the department’s compliance with its terms and conditions, including the performance objective that grant recipients average at least one DUI arrest for every 10 hours of overtime worked by officers on impaired-driving enforcement.
STEP grant participants paid the program costs from local funds and then, after each enforcement campaign, submitted claims for reimbursement that covered overtime pay for officers, mileage, and equipment. The reimbursement forms required such information as the identity of the project director, the total officer hours worked during each campaign, and the number of specific enforcement actions, such as DUI arrests, along with the blood-alcohol content level for each DUI arrest. Between 2009 and 2012, the Illinois Transportation Department authorized a total of $170,366 in STEP funds for Des Plaines’ impaired-driving enforcement efforts.
After Veit collected and reviewed accurate information regarding the number of citations, including DUI arrests, issued by Des Plaines officers during each enforcement campaign, the 3 charges allege that he then intentionally inflated the number of DUI arrests and provided false information about blood-alcohol content levels in the reimbursement forms. Overall, between 2009 and 2012, Veit reported a total of 152 DUI arrests during STEP campaigns, when he knew that only 30 had actually occurred. The numbers allegedly reported and actually occurring in each year were: 2009 – 27 and 13; 2010 – 47 and 8; 2011 – 62 and 8; and 2012 – 16 and 1.
As a result of the false information that Veit allegedly provided, he caused a loss of $132,893 in federal funds that were reimbursed to the City of Des Plaines for impaired-driving enforcement campaigns.
The government is being represented by Assistant U.S. Attorney Megan Church.
Making false statements carries a maximum penalty of five years in prison and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that the charges are not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Former Congressman Jesse L. Jackson, Jr. Pleads Guilty to Conspiring to Defraud Campaign of More Than $750,000He and His Wife Used Campaign Funds for Wide Range of Personal Expenses; Sandra Stevens Jackson Pleads Guilty to Tax ChargeRead the Press Release
WASHINGTON – Former Congressman Jesse L. Jackson, Jr., 47, pled guilty today to conspiring to defraud his re-election campaigns of about $750,000 in funds that were used to pay for a range of personal items and expenses, including jewelry, fur capes and parkas, high-end electronics, celebrity memorabilia, furniture, kitchen appliances, and a home renovation project.
Jackson, who has residences in Chicago and Washington, D.C., also admitted taking steps to conceal seven years of illegal activities, including the filing of false and misleading reports with the Federal Election Commission (FEC) and the U.S. House of Representatives.
Jackson’s wife, Sandra Stevens Jackson, 49, a former Chicago alderman, pled guilty in a separate proceeding to filing false tax returns for her role in the scheme.
The guilty pleas, which took place this morning in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Richard Weber, Chief of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Jesse Jackson, Jr. pled guilty to one count of conspiracy to commit wire fraud, mail fraud and false statements. The Honorable Robert L. Wilkins scheduled sentencing for June 28, 2013. The charge carries up to five years in prison, a fine of up to $250,000 and other penalties. Under federal sentencing guidelines, the parties have agreed that the applicable range for the offense is 46 to 57 months in prison and a fine between $10,000 and $100,000.
As part of the plea agreement, Jesse Jackson, Jr. will be required to pay any restitution ordered by the Court and forfeit about $750,000 in proceeds and property from the scheme. Among other items, he must forfeit a mink cashmere cape; a mink reversible parka; a guitar signed by pop legend Michael Jackson; and various memorabilia associated with historic figures and various celebrities.
Sandra Stevens Jackson is to be sentenced July 1, 2013, also by Judge Wilkins. The tax charge carries up to three years in prison, a fine of up to $250,000, and other penalties. According to the government’s calculations, which may be disputed at sentencing, the applicable range for this offense under federal sentencing guidelines is 18 to 24 months in prison and a fine between $4,000 and $40,000.
Jesse Jackson, Jr. was elected to Congress in 1995 and served until November 2012 as the representative for the 2nd Congressional District of Illinois. According to the government’s evidence, Jackson and his wife carried out the fraud scheme from in or about August 2005 until in or about April 2012. Rather than using funds donated to the Campaign as they were intended to be used – to pay for legitimate expenses associated with Jackson’s re-election – the Jacksons used a substantial portion of the contributed funds for personal expenditures.
According to the government’s evidence, Jesse Jackson, Jr. made direct expenditures from the Campaign’s accounts for personal expenses, totaling approximately $57,792. In addition, he and his wife used credit cards issued to the Campaign to make purchases for personal expenses, totaling approximately $582,773. Finally, Jackson provided his wife and a congressional staffer, known in court documents as “Person A,” approximately $112,150 solely for the purpose of engaging in transactions that benefited the Jacksons.
“Today’s guilty plea is nothing short of tragic,” said U.S. Attorney Machen. “Jesse Jackson, Jr. entered public life with unlimited potential, but squandered his bright future by engaging in a self-destructive course of conduct that was staggering in both degree and scope. For seven years, Mr. Jackson betrayed the very people he inspired by stealing their campaign donations to finance his extravagant lifestyle. His fall from grace will hopefully chasten other leaders who are tempted to sacrifice their ideals and integrity to line their own pockets.”
"Today, Mr. Jackson admitted to engaging in a conspiracy to defraud his constituents by using money donated to his re-election campaign for his own personal use,” said Assistant Director in Charge Parlave of the FBI. “But Mr. Jackson’s scheme did not stop there, as he then knowingly withheld information about his campaign finances from the FEC and IRS. This investigation and these guilty pleas demonstrate that the FBI and our law enforcement partners will continue to pursue all allegations of public corruption and prove that no one in this country is above the law, to include those who make our laws.”
“Public officials hold positions of trust. While the vast majority of public officials are hard-working and dedicated, fraud and corruption at any level of public service breaches this trust,” said IRS-CI Chief Weber. “IRS-CI stands committed to investigating those officials, regardless of political status, who ignore their pledge to the American public and, instead, take a path of greed and corruption. Mr. Jackson disregarded his pledge to America by using campaign funds for his own personal expenses. Then, he attempted to conceal his spending by filing false and misleading reports with the FEC and the House of Representatives. Mrs. Jackson also took steps to conceal the income by willfully underreporting their income on their joint U.S. Individual Income Tax Returns for a six-year period. This case should serve as a strong warning to those who might consider similar behavior. No one is above the law and everyone is accountable for their misdeeds.”
Framework of the Scheme:
According to the government’s evidence, Sandra Stevens Jackson had a series of roles in Jackson’s re-election campaigns, including treasurer, from about January 2005 to about November 2006; consultant, from at least 2008 to about November 2012, and campaign manager, starting in 2011.
“Person A” also served different roles over the years, including: assistant treasurer for the campaign, from about January 2005 through about November 2006; treasurer, from about January 2007 through about June 2008, and staff member for Jackson’s Washington, D.C. congressional office, starting in or around June 2008.
According to the government’s evidence, money was channeled from the Campaign to the Jacksons in the following ways:
DIRECT EXPENDITURES: Jackson made $57,792 in direct expenditures from the Campaign’s bank account from January 2006 through July 2011. In July 2007, for example, he withdrew $43,350 in Campaign funds to purchase an official check made payable to a jeweler for a men’s gold-plated Rolex watch. In addition, he used $14,442 in Campaign funds to pay down balances on person credit cards maintained by the Jacksons.
CREDIT CARD EXPENDITURES: The Campaign maintained a credit card account, “Jackson for Congress,” from at least August 2005 through August 2012. Individual credit card members on this account included Jackson and his wife. During this period, the Jacksons used the credit cards to purchase merchandise and services that were personal in nature, including high-end electronic items; a washer, a dryer, a range and refrigerator; collector’s items; clothing, food and supplies; movie tickets; health club dues; personal travel, including a holistic retreat, and personal dining expenses.
All told, Campaign funds were used to pay $582,773 of these purchases. During the conspiracy, the Jacksons made approximately 3,100 purchases that were personal in nature. A large number of these personal expenditures fit into these categories:
- Restaurants, nightclubs, and lounges, approximately $60,857.
- Airfare, approximately $31,700.
- Sports clubs and lounges, including gym membership, approximately $31,700.
- Tobacco shops, approximately $17,163.
- Alcohol, approximately $5,814.
- Dry cleaning, approximately $14,513.
- Grocery stores, approximately $8,046.
- Drug stores, approximately $6,095.
OTHER EXPENDITURES: In March 2006, Jackson directed that a $36,000 check from the Campaign be issued to his wife’s business for billboard expenses. Sandra Stevens Jackson transferred this money from the business account to a personal account. Jackson and his wife, who controlled the personal account, used nearly all of the money that purportedly was for billboard expenses to pay down personal debts.
Jackson paid “Person A” with funds from the campaign account so that “Person A” could pay expenses on behalf of Sandra Stevens Jackson, or, in some instances, give cash to Jackson. The Campaign issued about $76,150 in checks to “Person A” from about October 2008 until about March 2012, even though “Person A” actually was entitled to only $11,409 for his work. “Person A” then expended nearly all of the remaining $64,741 for the personal benefit of Jackson and his wife. Examples of this scheme include:
- “Person A” used checks from the Campaign to provide Jackson with $15,700, which Jackson deposited into personal accounts he maintained for his own use.
- “Person A” used checks from the Campaign to pay down the credit card balance of Jackson and his wife by $4,800.
- “Person A” used checks from the Campaign to pay for $26,347 worth of work performed on the Jacksons’ home.
GIFTS AND LOANS: At Jackson’s direction, two companies made payments on the balance of a personal credit card of Jackson and his wife. The owner of an Illinois consulting firm issued a check in 2009 for $3,500 from a business account to pay down the balance of a personal credit card. The owner of an Alabama-based family issued a check for $25,000 from a corporate account in 2011, also to pay down a personal credit card balance.
Filing of False and Misleading Reports:
According to the government’s evidence, the Jacksons took steps from 2005 until 2012 to ensure that materially false and misleading reports were filed with government entities. These reports were filed with the FEC and the House of Representatives. These actions were critical to carrying out the conspiracy because they enabled the conduct to continue without question for a lengthy period of time and without the questions from regulators and the public that likely would have ensued had truthful, accurate reports been filed.
Campaigns are required to periodically file reports with the FEC reflecting contributions and expenditures during the reporting period. Campaigns are responsible for reviewing credit card statements and itemizing expenditures exceeding $200. They also are to itemize in cases in which a particular vendor receives more than $200 during the election cycle.
Jackson and his wife, on numerous occasions, directed “Person A” not to itemize the personal expenditures made on the Campaign credit cards. Additionally, they knowingly and intentionally provided “Person A” with false justifications for the expenditures, causing “Person A,” in turn to prepare false reports for submission to the FEC.
For example, in May 2008, “Person A” reported that the Campaign spent $1,553 in January 2008 at a Chicago museum for a fundraiser. In fact, Jackson spent these funds to purchase porcelain collector’s items. In July 2008, “Person A” reported that the Campaign spent $387 for equipment for office repairs. Jackson actually used this money to purchase grass seed and fertilizer for the lawn at his Chicago home.
As a member of Congress, Jackson was required annually to file a financial disclosure statement with the House of Representatives. He failed to report the funds that he and his wife used in defrauding the Campaign. In addition, he failed to report that he was the beneficiary of undisclosed expenditures made by third parties.
Income Tax Returns:
In her guilty plea, Sandra Stevens Jackson admitted to filing false tax returns for calendar years 2006 through 2011. According to the government’s evidence, she knowingly and willfully failed to report nearly $570,000 in taxable income for those tax years. This led to an estimated tax loss of approximately $159,000.
In announcing the guilty pleas, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Weber commended the work of those who investigated the case for the FBI and IRS-CI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service on the asset forfeiture aspects of the case. In addition, they commended those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, Lenisse Edloe and Gail Price, and former Paralegal Specialist Sarah Reis.
Finally, they acknowledged the work of Assistant U.S. Attorneys Matt Graves, Michael K. Atkinson, and Jonathan W. Haray, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, who are investigating and prosecuting the matter, as well as Assistant U.S. Attorneys Catherine K. Connelly and Anthony Saler, of the Asset Forfeiture and Money Laundering Section.
13-061Former Bishop of Trumbull Church Pleads Guilty to Investor Fraud OffensesRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JULIUS C. BLACKWELDER, 59, of North Dakota, formerly of Stratford, pleaded guilty today before Senior United States District Judge Ellen Bree Burns in New Haven to federal wire fraud and money laundering offenses stemming from an investor fraud scheme.
“This defendant abused his position of trust as a leader in his church to defraud fellow church members and others out of hundreds of thousands of dollars, much of which he used to construct a waterfront home,” stated U.S. Attorney Fein. “I commend the U.S. Postal Inspection Service, SIGTARP, IRS-Criminal Investigation, Connecticut Department of Banking and our other law enforcement partners who are working diligently to protect investors by identifying and rooting out fraudulent financial schemes.”
According to court documents and statements made in court, beginning in 2005, BLACKWELDER persuaded individuals to invest their money with him as part of an investment pool known as the “Friend’s Investment Group.” At the time, BLACKWELDER was the Bishop of the Bridgeport Ward of the Church of Jesus Christ of Latter-day Saints located in Trumbull, and he solicited investments from, among others, members of his congregation.
BLACKWELDER misrepresented to investors that he would invest their money in safe, long-term commodities futures contracts, and that he was an experienced and successful commodities investor. In some instances, BLACKWELDER guaranteed investors’ principal and a specific return on their investment. He documented his misrepresentations to investors in promissory notes, offering memoranda, and account updates that he prepared.
In fact, BLACKWELDER used investors’ money to pay his own expenses, which included repaying earlier investors in the scheme, building a waterfront home in Stratford, and repaying personal bank loans, including a line of credit from a Troubled Asset Relief Program (TARP) recipient bank.
Through this scheme, BLACKWELDER defrauded investors of more than $400,000.
BLACKWELDER pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. Judge Burns has scheduled sentencing for May 15, 2013.
This matter is being investigated by the United States Postal Inspection Service, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Internal Revenue Service – Criminal Investigation, and the State of Connecticut Department of Banking. The case is being prosecuted by Assistant United States Attorney Jonathan N. Francis and Deputy United States Attorney Deirdre M. Daly.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former Albuquerque Corrections Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
Matthew Pendley, 26, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., pleaded guilty today to one count of obstructing justice when he lied to law enforcement during their investigation of the assault on an inmate at the hands of another corrections officer.
According to court documents, during the early morning hours of Dec. 21, 2011, Pendley was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. During the course of his shift, Pendley entered the shower room/dress out area and witnessed Demetrio Gonzales, another corrections officer, assaulting an inmate. The inmate was not posing a physical threat to anyone, and therefore, the assault was not justified. There was no legitimate law enforcement purpose for Gonzales to use force on the inmate. As a result of the assault, the inmate sustained injuries and began bleeding. When the Bernalillo County Sheriff’s Office (BCSO) began investigating, instead of telling detectives that he witnessed the assault, Pendley lied, claiming that he did not remember what Gonzales was doing in the shower room/dress out area.
A sentencing date has not yet been set.
Demetrio Gonzales previously pleaded guilty to violating the civil rights of the inmate by choking and striking the inmate multiple times. He was sentenced on Jan. 8, 2013, to 33 months in prison followed by three years of supervised released.
A third former MDC corrections officer, Kevin Casaus, was also indicted by a federal grand jury in June 2012 on related charges. Casaus is charged with violating the victim’s civil right rights when he shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the BCSO and then for falsifying his incident report. Casaus’ trial is set for March 4, 2013. He is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Albuquerque Corrections Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
ALBUQUERQUE – Matthew Pendley, 26, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., pleaded guilty today to one count of obstructing justice when he lied to law enforcement during their investigation of the assault on an inmate at the hands of another corrections officer.
According to court documents, during the early morning hours of Dec. 21, 2011, Pendley was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. During the course of his shift, Pendley entered the shower room/dress out area and witnessed Demetrio Gonzales, another corrections officer, assaulting an inmate. The inmate was not posing a physical threat to anyone, and therefore, the assault was not justified. There was no legitimate law enforcement purpose for Gonzales to use force on the inmate. As a result of the assault, the inmate sustained injuries and began bleeding. When the Bernalillo County Sheriff’s Office (BCSO) began investigating, instead of telling detectives that he witnessed the assault, Pendley lied, claiming that he did not remember what Gonzales was doing in the shower room/dress out area.
A sentencing date has not yet been set.
Demetrio Gonzales previously pleaded guilty to violating the civil rights of the inmate by choking and striking the inmate multiple times. He was sentenced on Jan. 8, 2013, to 33 months in prison followed by three years of supervised released.
A third former MDC corrections officer, Kevin Casaus, was also indicted by a federal grand jury in June 2012 on related charges. Casaus is charged with violating the victim’s civil right rights when he shoved and struck the victim while in the shower area/dress out area. Casaus is further charged with obstruction of justice and falsification of records, first for making false statements to detectives of the BCSO and then for falsifying his incident report. Casaus’ trial is set for March 4, 2013. He is presumed innocent unless proven guilty.
This case is being investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Federal Jury Finds Two Guilford Women Guilty of Overseeing “gifting Tables” Pyramid SchemeRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal jury in Hartford has found DONNA BELLO, 56, and JILL PLATT, 65, both Guilford, guilty of conspiracy, tax and wire fraud offenses related to their involvement in a pyramid scheme known as “Gifting Tables.” The trial before Chief United States District Judge Alvin W. Thompson began on January 24 and the jury returned its verdict this afternoon after deliberating for approximately two hours.
“As the jury’s swift verdict of guilty on all counts makes clear, ‘Gifting Tables’ are pyramid schemes and illegal, plain and simple,” stated U.S. Attorney Fein. “These defendants enriched themselves while fraudulently misrepresenting material facts about the Gifting Tables and conspired to hide their income from the IRS. I commend the agents of IRS Criminal Investigation for their thorough investigation of this matter, which is ongoing.”
“I’m pleased to see that the jury saw that the ultimate purpose was the enrichment of the defendants,” stated IRS Criminal Investigation Special Agent in Charge Offord. “IRS Criminal Investigation remains committed to investigating schemes like these in an effort to protect the financial well-being of the American public and to ensure that everyone pays their fair share of taxes.”
According to the evidence presented during the trial, a Gifting Table is configured as a four-level pyramid, with eight participants assigned to the bottom row, four participants assigned to the third row, two participants assigned to the second row, and one participant assigned to the top row. The top row participant is referred to as the “Dessert,” the two participants on the second row as “Entrees,” the four participants on the third row as “Soup and Salads,” and the eight participants on the bottom row as “Appetizers.” To join a Gifting Table, new participants were required to pay $5,000, typically cash, to the Dessert, that is, the participant occupying the top position on the pyramid. The $5,000 payment, which was fraudulently characterized as a gift, secured the new participant a position as an Appetizer on the bottom row. Participants moved from the bottom row of the pyramid and progressed through a Gifting Table by recruiting additional people to join. When eight new participants joined a Gifting Table, each having made a $5,000 “gift” to the person occupying the Dessert position at the top of the pyramid, the Dessert left the Gifting Table and kept the $40,000 paid by the eight new participants. That particular Gifting Table was then split, with the two participants occupying the Entree position on the second row moving to the top position (Dessert) of two new pyramids. The other incumbent members of the Gifting Table moved up a row on one of the two newly-formed pyramids, and the search for 16 new participants began. The success of the Gifting Tables depended on new participants joining and making the $5,000 “gift.”
From approximately 2008 to 2011, BELLO and PLATT oversaw and profited from this Gifting Tables pyramid scheme. The defendants recruited individuals to join the scheme, prepared and distributed materials to recruits that contained false representations, and misrepresented to recruits and participants that Gifting Tables was not a pyramid scheme. Also, in May 2010, the defendants attempted to intimidate a participant who had questioned the legality of the Gifting Table scheme.
BELLO and PLATT also conspired to defraud the Internal Revenue Service by misrepresenting to recruits and participants that monies given and received during the scheme were legally considered tax-free “gifts” under the IRS code and that lawyers and accountants had approved Gifting Tables as legal ventures that generated tax-free proceeds. In addition, BELLO and PLATT filed false tax returns that failed to report income generated from the scheme.
Evidence at trial included several emails, including an email sent by Platt in March 2009 that told a participant: “It’s sort of a joke that I refer to our freezer as the ATM.” Later in March 2009, Bello complained to Hopkins and another individual about two recruits, stating: “They have had enough parties. Its [sic] costing us a small fortune in their food and wine delights. No more parties until they commit with the cash.”
In June 2009, Bello sent an email that said “I am not a . . . saint . . . . I’m teaching you all how to make an extra 80 grand a year . . . . Isn’t that enough?”
Later in October 2009, Bello emailed a participant and indicated “as women we like our own stash. Keep it in a safe. Keep it quiet because rather not have red flags raised. Hiring accountants and atterneys [sic] is costly.”
The jury found BELLO and PLATT guilty of one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years, one count of conspiracy to commit to defraud the IRS, which carries a maximum term of imprisonment of five years, and 11 counts and four counts of wire fraud, respectively, charges that carry a maximum term of imprisonment of 20 years. Finally, BELLO was found guilty of two counts and PLATT of one count of filing a false tax return, a charge that carries a maximum term of imprisonment of three years.
“During the trial, the jury heard evidence that other Gifting Tables continue to operate in Connecticut,” stated U.S. Attorney Fein. “The jury’s verdict today is fair notice to anyone participating on Gifting Tables that any money received is taxable income and that they may be involved in an illegal pyramid scheme.”
Chief Judge Thompson has scheduled sentencing for May 15, 2013.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, and is being prosecuted by Assistant United States Attorneys Douglas P. Morabito and Peter S. Jongbloed.
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Essex County, N.J., Man Sentenced to 130 Months in Prison for Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced today to 130 months in prison for his role in an armed carjacking in Elizabeth, N.J., on Jan. 25, 2011, U.S. Attorney Paul J. Fishman announced.
Alhakim Young, 23, of Newark, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to a Superseding Information charging him with conspiracy, theft of a motor vehicle by force, violence and intimidation, and use of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
Young conspired with Jermaine May, David Jones and Maurice Williams to carjack a vehicle. On Jan. 25, 2011, Young, May, Jones and Williams traveled to Elizabeth in a white Jeep Cherokee to carjack a vehicle. Young and May approached two victims who were standing near a 2004 Infiniti G-35 that was parked and warming up on Britton Street in Elizabeth, and at gunpoint, ordered the two victims to the ground. Williams and Jones fled in the Infiniti, while Young and May fled in the white Jeep Cherokee. May, Jones and Williams previously pleaded guilty to conspiracy to commit carjacking, carjacking, and use of a firearm in furtherance of a crime of violence.
Judge Cecchi sentenced Young to concurrent 70-month prison terms on the counts of carjacking and conspiracy and a consecutive 60-month sentence on the firearms count. In addition to the prison term, Judge Cecchi sentenced Young to five years of supervised release. Restitution will be determined at a hearing on May 19, 2013.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Dara Aquila Govan of the Organized Crime/Gangs Unit and Gurbir Grewal of the Economic Crimes Unit in Newark.
13-086Defense counsel: Sean McGovern Esq., Newark
Emissions Inspector Sentenced for Falsely Passing Vehicle InspectionsRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced ANGEL DARIO RODRIGUEZ NUNEZ, 30, of Durham, North Carolina, to 5 years of probation with a special condition of 6 months house arrest and a $500 fine. The sentence reflected a reduction for NUNEZ cooperation in the on-going investigation.
“Falsifying vehicle emission inspections directly undermines the Clean Air Act’s goal to protect and enhance our Nation’s air resources. This prosecution reflects that corruption among licensed inspectors that perpetrates pollution for personal monetary gain will not be tolerated,” said Mr. Walker.
A Criminal Information was filed on March 6, 2012, charging NUNEZ with conspiring to violate the Clean Air Act, in violation of Title 18, United States Code, Section 371, and making a material false statement, representation, or certification, in violation of Title 42, United States Code, Section 7413(c)(2)(A). On April 9, 2012, NUNEZ pled guilty to the charges.
According to the Criminal Information, NUNEZ worked at both Express Auto Sales, in Durham, North Carolina, and Services and Car Care Express Auto Sales and Services, also in Durham, North Carolina, as a licensed North Carolina emissions inspector. From May, 2009, to July, 2010, NUNEZ conspired with others to pass vehicles that would normally have failed the emissions inspection in exchange for $150 to $225 per car.
The Information further alleges that NUNEZ and his co-conspirators would enter the vehicle identification number either manually or by scanning. A surrogate vehicle, usually one manufactured between 1996 and 1999 that would not generate a vehicle identification number when connected to the analyzer, would be selected. Using the surrogate vehicle, an emissions report would be generated for the customer’s vehicle. During this period 817 vehicles passed the false inspection. Of those 817, NUNEZ falsely tested 353.
Each day emissions inspection reports are electronically transferred to the North Carolina Office of Information and Technology Services in Raleigh, North Carolina. The United States Environmental Protection Agency requires the State to conduct vehicle emissions testing in certain areas because the areas exceed national standards for carbon monoxide and ozone.
“Cheating on emissions tests damages the air we breathe and puts businesses that do things the right way at an unfair disadvantage,” said Attorney General Roy Cooper, whose department includes the NC SBI. “We’re working closely with our state and federal partners to crack down on these illegal polluters.”
“Americans have a right to breathe clean air, free from excessive vehicle emissions,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “In order to protect the public from harmful air pollutants, governments must have accurate and honest vehicle emissions tests. This case is an excellent example of government agencies working together to protect both the public and the environment.”
Investigation of this case was conducted by the United States Environmental Protection Agency, Criminal Investigation Division; the North Carolina State Bureau of Investigations; and the North Carolina Department of Motor Vehicles, License and Theft Bureau. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
El Departamento de Justicia Lanza un Video en Español Sobre la Discriminación en la Verificación de la Elegibilidad para el EmpleoRead the Press Release
WASHINGTON – La División de Derechos Civiles del Departamento de Justicia anunció hoy el lanzamiento de su primer video educativo en español. El video fue elaborado por la Oficina del Consejero Especial [Office of Special Counsel (OSC)] para Prácticas Injustas de Empleo Relacionadas a la Inmigración para ayudar a los empleadores a evitar cargos de discriminación durante el proceso del Formulario I-9 de Verificación de Elegibilidad para el Empleo y para ayudar a los empleados a enterarse de sus derechos legales. La OSC hace cumplir la provisión contra la discriminación que contiene la Ley de Inmigración y Nacionalidad [Immigration and Nationality Act (INA)], la que prohíbe a los empleadores el discriminar en la contratación, el despido, el reclutamiento o la recomendación a personas autorizadas para trabajar, independientemente de su estado de ciudadanía u origen nacional. Asimismo, la ley prohíbe la discriminación durante los procesos del Formulario I-9 y de Verificación Electrónica [E-Verify].
La OSC elaboró un video sobre este tema llevado frecuentemente a la atención de la OSC por medio de llamadas a su línea directa y cargos presentados por empleados. Los empleadores suelen creer incorrectamente que necesitan verificar de nuevo la autorización de trabajo de trabajadores que tienen el status de residente permanentes cuando sus Tarjetas de Residente Permanente [Permanent Resident Cards or Green Card] se vencen. El nuevo video de la OSC aclara esta práctica y explica que esto no está permitido y que puede ser motivo de reclamos bajo la provisión contra la discriminación.
“Creemos que este video ayudará tanto a los empleadores como a los empleados de todo el país a comprender las normas de verificación de la elegibilidad para el empleo y que también ayudará a los residentes permanentes legales a conservar sus empleos”, dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles. “La ley federal prohíbe la discriminación en el proceso de verificación de elegibilidad para el empleo, y el Departamento de Justicia se compromete a hacer cumplir la ley”.
Se puede observar el video en español en: www.youtube.com/watch?v=HLps_3sWJxk
Una versión del mismo video con subtítulos en inglés se puede observar en : www.youtube.com/watch?v=XWRSMNFxxKY
El video es parte de la serie de videos educativos de la OSC lanzo en el 2012. La OSC también opera una línea directa para empleadores y trabajadores, frecuentemente orientando a los empleadores acerca de cómo evitar la discriminación y educando a los al respecto de sus derechos protegidos por la provisión contra la discriminación. La OSC ofrece ‘webinars’ o seminarios por internet en vivo para educar a los empleadores acerca de cómo evitar la discriminación en el trabajo y educar a los empleados respecto de sus derechos. El próximo seminario por internet en español se dará a cabo hoy febrero 20 del 2013 a las 3:00pm tiempo del Este. Usted se puede registrar por internet en: http://www.justice.gov/crt/about/osc/webinars.php. Para obtener más información sobre las protecciones contra la discriminación laboral bajo la ley de inmigración, llame a la línea directa del trabajador de la OSC al: 1-800-255-7688 (1-800-237-2525, TDD para las personas con problemas auditivos); llame a la línea directa del empleador de la OSC al: 1-800-255-8155 (1-800-362-2735, TDD para las personas con problemas auditivos); envíe un mensaje de correo electrónico u ‘email’ a: [email protected]; o visite el portal en Internet de la OSC, www.justice.gov/crt/about/osc.East Haven Woman Charged with Threatening Violent Attack at Gateway Community CollegeRead the Press Release
February 20, 2013David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, today announced that AMANDA C. BOWDEN, 19, of East Haven, has been charged by federal criminal complaint with falsely threatening to carry out a violent attack at Gateway Community College in New Haven.
“As alleged, this defendant made a series of threats that described in great detail her intention to carry out a suicidal mass murder at a community college in New Haven,” stated U.S. Attorney Fein. “All threats of this nature will be viewed as serious by this office and prosecuted to the full extent of federal law. I commend the FBI’s Joint Terrorism Task Force and the New Haven and East Haven Police Departments for their swift investigation of this matter.”
“The FBI’s investigations into threats of violence will be swift and thorough,” stated FBI Special Agent in Charge Mertz. “In this day and age, the making of any threat will not and cannot be tolerated. There will be consequences. The Agents and Task Force Officers assigned to the New Haven Division’s Joint Terrorism Task Force and the U.S. Attorney’s Office did an outstanding job in addressing this threat from the time it was first reported to the FBI until the successful arrest of the subject.”
As alleged in the criminal complaint, between approximately February 4 and February 16, 2013, BOWDEN made numerous telephonic threats, initially through text messaging with a cooperating witness and subsequently through text messaging and verbal conversations with an undercover law enforcement agent, discussing her plans to commit a suicidal mass shooting and bombing at Gateway Community College in New Haven. In these communications, BOWDEN claimed to possess firearms and to have constructed at least two napalm-based bombs at her residence.
BOWDEN was arrested yesterday on state charges. At that time, investigating agents conducted a court-authorized search of BOWDEN’s East Haven residence. No firearms or explosive devices or related materials were found during the search.
BOWDEN appeared today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport and is detained pending a hearing that is scheduled for March 1.
BOWDEN is charged with one count of false information and hoaxes. The charge carries a maximum term of imprisonment of five years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the New Haven Police Department and the East Haven Police Department. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.
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(203) 821-3722 [email protected]Drug Dealer Sentenced to 108 Months in Federal PrisonRead the Press Release
EUGENE, Ore. – Jose Gonzalez-Alvarado, 32, of Springfield, Oregon, was sentenced today by U.S. District Court Chief Judge Ann Aiken to 108 months in federal prison for possession with intent to distribute methamphetamine. Upon his release from prison, Gonzalez-Alvarado will be on supervised release for five years.
On November 3, 2010, Springfield Police Department detectives contacted Gonzalez-Alvarado in Springfield after receiving a tip that he was going to deliver methamphetamine. Gonzalez-Alvarado was searched and detectives found four ounces of methamphetamine on his person. A residence associated with Gonzalez-Alvarado was also searched and five ounces of methamphetamine, $6,000 in drug proceeds, scales, packaging material, and a pistol were located.
This case was investigated by the Springfield Police Department and the Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Jeffrey S. Sweet.
Convicted Fraudster Sentenced to 8 Years in Prison in Scheme to Buy Merchandise Using Stolen Identifying Information to Open Instant Credit AccountsRead the Press Release
Convicted in a Similar Scheme in 2007Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Lavon Richard Caldwell, age 31, of Baltimore, today to eight years in prison followed by five years of supervised release for bank fraud and four counts of aggravated identity theft. Judge Bennett also ordered Caldwell to pay restitution of $16,024.70.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Jasinski of the United States Secret Service – Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
Caldwell pleaded guilty after four days of trial to using the personal identifying information of individual victims, without their knowledge, to obtain credit accounts in the victims’ names. According to evidence introduced at trial, from September 2011 to February 3, 2012 Caldwell used the fraudulently obtained credit accounts to purchase high priced merchandise from retail stores, including designer clothing, electronics and other personal items, without intending to pay for the merchandise. Caldwell used fake driver’s licenses and other identifying information to assume the identity of the victims.
Caldwell stole the personal identifying information of five individual victims to purchase and attempt to purchase merchandise, including luxury items, such as Hermes sweaters and Gucci bags, electronics and other personal items, totaling at least $70,677.52.
On February 3, 2012 the defendant was arrested at the Neiman Marcus in Washington, D.C., while attempting to purchase $4,000 in merchandise using a fraudulently obtained account and fake driver’s license.
At the time Caldwell engaged in this fraud scheme, he was on supervised release after having served 61 months in federal prison for conspiracy to commit bank fraud and aggravated identity theft in connection with a similar scheme. Judge Bennett also sentenced Caldwell today to 21 months in prison, followed by two years of supervised release, to be served concurrent to the eight year sentence, for violating his supervised release.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Paul Budlow and Michael Cunningham, who prosecuted the case.
Charlotte Man Charged with Stealing More Than $829,000 from the University of North Carolina at CharlotteRead the Press Release
The Defendant Has Agreed to Plead Guilty to Conspiracy to Commit Theft of Program Receiving Federal Funds
CHARLOTTE, N.C. – A bill of information and a plea agreement were filed today in U.S. District Court charging a Charlotte man with one count of federal program theft conspiracy for stealing over $829,000 from the University of North Carolina at Charlotte (“UNCC”), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Jeffrey A. Baker, of UNCC’s Police Department, join U.S. Attorney Tompkins in making today’s announcement.
According to the criminal bill of information, Sam Hanna, 62, of Charlotte, and two co-conspirators engaged in a scheme involving fraudulent contracts, bribes and kickbacks which defrauded UNCC of over $829,000. Court documents indicate that beginning in March 2005 Hanna was employed by UNCC as a Facilities Engineer Specialist and was responsible for soliciting bids and selecting outside contractors to work at UNCC. Hanna also had the authority to award contracts under $30,000 without a bid process. UNCC is an educational institution that receives federal assistance in the form of grants, loans and subsidies, among others.
According to the charging document and plea agreement filed today, Hanna used his position and authority to award no-bid contracts under $30,000 to two entities owned by Hanna’s co-conspirators. One of the companies owned by Hanna’s son-in-law, identified in the bill of information as “Individual A,” owned and operated “Air Handling Equipment Enterprises (“Air Handling”), based in Washington, D.C. A second co-conspirator, identified as “Individual B,” owned and operated “Air Motion Systems” (“Air Motion”) a company based in Greenville, S.C. Both companies maintained company bank accounts which were used to facilitate the scheme, filed documents indicate.
According to information contained in the charging document and the plea agreement, beginning from 2006 through 2011 Hanna awarded no-bid contracts to Air Handling and Air Motion and directed $829,807 as payments to the two companies in connection with such no-bid contracts. Air Handling and Air Motion did little or no work to justify the payments and Hanna issued fraudulent invoices from UNCC for Air Handling and Air Motion to cover up the fraudulent scheme. Court records show that the co-conspirators deposited the fraud proceeds in the companies’ bank accounts. Then, at Hanna’s direction, individuals A and B directed $413,170 in bribe payments to Hanna by depositing the money in a bank account of a company owned by Hanna, “Air Touch Systems” (“Air Touch”). Filed documents indicate that Hanna used the money he obtained through these kickbacks to pay for personal expenditures, including payments for multiple consumer lines of credit, mortgage payments for his home, and to make purchases from Dish Network, Anne Taylor and Verizon, among other things.
Hanna has been charged with, and agreed to plead guilty to, one count of federal program theft conspiracy. He faces a maximum prison term of five years and a $250,000 fine. The defendant has also agreed to pay full restitution, the amount of which will be determined by the Court at sentencing. Hanna’s initial appearance and plea hearing will be scheduled by the U.S. District Court.
The investigation is handled by FBI and the UNCC Police Department. The prosecution for the government is being handled by Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte.
Chadron Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Robert Fleming, 32, of Chadron, Nebraska, was sentenced today, February 20, 2013, in Lincoln, Nebraska, to 10 years in prison by United States District Judge Richard G. Kopf, for receipt and distribution of child pornography. After his release from prison, Fleming will be required to serve the rest of his life under supervision.
On November 22, 2008, the Chadron Police Department executed a search warrant at Fleming’s residence in Chadron, Nebraska. The Chadron Police Department then contacted the FBI seeking assistance in conducting forensic examinations of the computer and other storage media to determine if there was child pornography on the items seized from Fleming’s residence. The FBI determined that there were 78 videos and 4,000 pornographic images depicting child pornography found on the computer and storage media. The images found included prepubescent minors engaged in graphic sexually explicit conduct. The images were received from at least July 27, 2006 to November 22, 2008.
This case was investigated by the Federal Bureau of Investigation and Chadron Police Department.Camp Hill Marijuana Trafficker ChargedRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment today charging a Camp Hill marijuana trafficker.
According to United States Attorney Peter J. Smith, Andrew Angle, age 25, is charged with conspiracy to distribute marijuana and money laundering. The Government is also seeking the forfeiture of approximately $85,000 in drug proceeds seized from a bank account, safe deposit box, and locations affiliated with Angle.
The case was investigated by the Drug Enforcement Administration, Dauphin County Drug Task Force, and the Cumberland County Drug Task Force. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In these particular cases, the maximum penalty under the federal statute is five years’ imprisonment for Angle and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Brooksville Man Sentenced to More Than Eight Years in Prison for Running Fraudulent Home Inspection BusinessRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody today sentenced Dean Counce (42, Brooksville) president and founder of American Mortgage Field Services, LLC (AMFS), to 8 years and one month in federal prison for conspiracy to commit wire fraud. The court also ordered Counce to forfeit his interest in real estate and jewelry, which are traceable to proceeds of the offense. In addition, the court entered a money judgment in the amount of $12,774,102, which are the proceeds of the conspiracy. Counce pleaded guilty on September 14, 2012.
According to the plea agreement, Counce owned American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, in order to protect the investments and to prevent unnecessary deterioration that may result from neglect or vandalism, some of these servicing lenders retained Counce’s company to conduct periodic inspection of government-owned or insured properties.
Each month, the servicing lenders would send Counce and AMFS a list of properties that required inspection. Counce performed some inspections personally and, as the business grew, he hired others to assist and eventually take over the inspection process. These inspections required Counce and other AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce and others then compiled these inspection reports and transmitted them electronically to the servicing lender. The servicing lenders then paid Counce and AMFS a fee per inspection.
As the real estate market declined in Florida and throughout the country, Counce and AMFS began to receive an increasing number of requests for inspections on properties in foreclosure, the mortgages for most or all of which were owned or insured by Fannie Mae, Freddie Mac or FHA. The requests far exceeded Counce’s or AMFS’s capacity to deliver. As a result, Counce and other AMFS employees began fabricating inspection reports.
In total, between 2007 and 2009, Bank of America remitted $4,490,398.87 to Mid-Florida Home Securing (later known as AMFS) and, between 2009 and 2012, Bank of America paid AMFS $19,044,973.06 for inspections, a large percentage of which were never actually performed. As a result of this fraud, Counce and AMFS managed to keep overhead and expenses low and profits high, resulting in net profits to Counce of up to $1 million in a single month. Based on employee reports of fabrication rates, the government estimates the loss in this case to be approximately $12,774,102.
This case was investigated by the Federal Housing Finance Agency Office of Inspector General, Department of Housing and Urban Development Office of the Inspector General, and the United States Secret Service. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Brooklyn Man Pleads Guilty in Manhattan Federal Court to Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HENRY GORDIN pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. GORDIN was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 defendants, 10 of whom were former Claims Conference employees, including a former director. He pled guilty today before U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Henry Gordin was supposed to help survivors of the Holocaust be financially supported in their waning years, but instead he used his position to defraud the Claims Conference and help himself to money intended for victims of the Nazis. With his plea today, we are closer to holding to account all those who participated in this repulsive fraud.”
According to the Complaint and the Indictment filed in Manhattan federal court:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a network of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtained from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
While employed as a caseworker in the Hardship Fund program at the Claims Conference, GORDIN knowingly processed fraudulent applications in return for payments from his co-conspirators. In addition, after he left the employ of the Claims Conference, GORDIN passed materials, including identification documents, to a co-conspirator still employed at the Claims Conference to support other fraudulent Hardship Fund applications.
GORDIN is the 23rd of the 31 defendants charged in the scheme to plead guilty, including six former Claims Conference employees. Charges remain pending against the remaining eight defendants in the case, who are presumed innocent unless and until proven guilty.
GORDIN, 75, of Brooklyn, New York, faces a maximum sentence of 20 years in prison. He is scheduled to be sentenced by Judge Griesa on August 7, 2013 at 4:30 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Jonathan Cohen, and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
U.S. v. Domnitser, et al. S1 Indictment
Blairsville Man Pleads Guilty in Heroin Trafficking SchemeRead the Press Release
JOHNSTOWN, PA. - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Dewann Jamal Macon, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Macon, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for July 2, 2013, at 9:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Macon. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Baltimore Felon Sentenced to 15 Years in Prison for Possession of AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Robert Hubbard, age 37, of Baltimore, late yesterday to 15 years in prison, followed by five years of supervised release, for being a felon in possession of ammunition. Judge Bennett enhanced Hubbard’s sentence upon finding that he is an armed career criminal based on two previous convictions for carjacking and two previous robbery convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to testimony at Hubbard’s three day trial, on November 10, 2011, Baltimore Police Department officers executed a search warrant at Hubbard’s residence after a confidential informant purchased drugs from Hubbard at his home. During the search Hubbard was located in the front bedroom and told the officers that his gun was in the safe and the drugs on the bed belonged to him. During a search of the front bedroom, officers found a safe containing a .32 caliber revolver loaded with 5 rounds of ammunition, 1 box of ammunition (containing 47 .32 rounds), $150 cash, 1 clear ziplock bag with marijuana, and a copy of Hubbard's rental agreement. Officers also recovered 1 clear plastic bag containing seven ziplock bags of heroin and another clear bag containing cocaine.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, and Assistant U.S. Attorney Michael C. Hanlon, who prosecuted the case.
Augusta Optometrist Pleads Guilty to Health Care Fraud CaseRead the Press Release
AUGUSTA, GA: JEFFREY SPONSELLER, 47, of Augusta, Georgia pleaded guilty today before United States District Court Judge J. Randal Hall to submitting over $800,000 in fraudulent claims to Medicare.
Evidence presented at today’s guilty plea hearing showed that SPONSELLER, an optometrist and an owner of Eye Care One, located at 3152 Washington Road in Augusta, Georgia, submitted claims to Medicare for payment for eye examinations of nursing home patients. Instead of billing Medicare for the actual service he was providing at the nursing homes, SPONSELLER claimed that he was conducting the most expensive type of eye examination which typically lasts 45 minutes. An example of this health care fraud presented at today’s guilty plea hearing involved a July 27, 2009 visit by SPONSELLER to a nursing home in Americus, Georgia where SPONSELLER billed Medicare for 177 patients that he claimed to have examined individually for 45 minutes each during that one-day visit. As a result this type of fraudulent billing, Medicare paid SPONSELLER for that type of eye exam more than any other doctor in the United States in 2009.
United States Attorney Edward J. Tarver said, “Health care fraud is a cancer on the financial health of our nation. In many cases, such as with this Defendant, it is committed by professionals who are well educated and highly regarded. Whether that fraud is perpetrated by an optometrist willing to claim that he worked the equivalent of 5½ days during a one-day visit to a nursing home – like this defendant did – or a medical equipment supplier that bills Medicare without authorization, the ultimate injury is to the American taxpayer. The United States Attorney’s Office and its law enforcement partners will actively pursue those who abuse our country’s health care programs for financial gain.”
Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region, said, “Any time false claims are submitted for payment, our nation's health insurance programs and beneficiaries suffer. Protecting precious Medicare funds remains a top priority for the Inspector General and our law enforcement partners.”
SPONSELLER faces a maximum penalty of five years imprisonment and a fine of up to $250,000, in addition to paying restitution. The date for SPONSELLER’s sentencing hearing has not yet been scheduled.
FBI Special Agents Paul Kubala and Jason Gustin, U.S. Attorney’s Office Investigator Kimberly Reinken, HHS-OIG Special Agent David Graupner, and IRS Special Agents Roger Garland and Jeffrey Hale participated in the investigation of this case. Assistant United States Attorney David Stewart is prosecuting in this case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Aldama-Rodriguez Sentenced for Part in Abbeville Drug Distribution RingRead the Press Release
LAFAYETTE, La: United States Attorney Stephanie A. Finley announced today that Ramon Guadalupe Aldama-Rodriguez, 35, of Mexico, was sentenced Tuesday before U.S. District Judge Richard T. Haik to 37 months in prison plus five years supervised release for distributing cocaine and heroin between Abbeville and Baton Rouge.
According to court documents, Aldama-Rodriguez and Jose Manuel MojicaEcheverria were approached at a Duson trailer park by Abbeville drug traffickers Jesus Silverio Cervantes and Joel Sotomayor Cervantes on June 13, 2010, to drive a truck loaded with 2 kilograms of cocaine and 360 grams of heroin to Baton Rouge. Aldama-Rodriguez drove the truck and Mojica-Echeverria rode with him, while Jesus Silverio Cervantes and Joel Sotomayor Cervantes followed in another vehicle. Authorities stopped the truck and the drugs were found. Aldama-Rodgriguez pleaded guilty on Oct. 11, 2012.
“This investigation disrupted the sale of illegal drugs that spanned from Abbeville to Baton Rouge,” Finley stated. “We thank the federal, state and local authorities who participated to end this criminal activity. This case reflects a joint effort by this office, the DEA, the Baton Rouge Police Department and the sheriff’s office. More operations like this one make a difference in our communities.”
Aldama-Rodriguez was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The DEA, the Baton Rouge Police Department, and the Vermillion Parish Sheriff’s Office participated in this OCDETF investigation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug traffickingorganizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Albuquerque Man Sentenced to More Than Fourteen Years in Prison for Robbing Three Albuquerque-Area BanksRead the Press Release
ALBUQUERQUE – Late yesterday afternoon, Danny Kevin Brawner, 50, of Albuquerque, N.M., was sentenced to 170 months in prison to be followed by nine years of supervised release for his bank robbery convictions. Brawner also was ordered to pay full restitution to the three banks he robbed.
Brawner was arrested on April 21, 2011, and has been in federal custody since that time. On Nov. 29, 2012, Brawner pled guilty to an indictment charging him with three counts of bank robbery.
At his plea hearing, Brawner admitted robbing the following three Albuquerque banks: (1) the Wells Fargo Bank inside the Albertson’s Supermarket at 6200 Coors Blvd. NW, on Feb. 7, 2011; (2) the First Community Bank at 1418 Carlisle Blvd. NE, on April 14, 2011; and (3) Bank of the West at 5901 Menaul Blvd. NE on April 18, 2011. In entering his guilty plea, Brawner admitted presenting each of the victim bank tellers with a note demanding cash and threatening that he had a weapon.
Court records reflect that the FBI began investigating Brawner after it received a tip identifying Brawner as the individual who robbed the three banks. The investigation revealed that the get-away car used during the April 14, 2011 bank robbery was registered in the name of Brawner’s girlfriend. After witnesses to the first two of Brawner’s bank robberies identified him from a photo array, the FBI and Albuquerque Police Department arrested Brawner, who admitted robbing the three banks.
The case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Alberto Jose Zapata Morel Sentenced for Illegal Re-entryRead the Press Release
ALBERTO JOSE ZAPATA MOREL, age 40, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Sarah S. Vance to twenty (20) months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Vance ordered that MOREL be placed on three (3) years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, on November 7, 2012, MOREL, who also goes by the name Martin de Jesus Herrera-Mayerena, pled guilty to one count of an indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States in Jefferson Parish, Louisiana without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. MOREL’s sentence was subject to an enhancement based on a previous aggravated felony conviction.
The case was investigated by U. S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE). The case was prosecuted by Special Assistant United States Attorney Robert Weir.
19 February 2013
Washington County Man Sentenced to 5 Years in Prison for Violating Federal Firearms LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., has been sentenced in federal court to five years imprisonment, to be followed by two years supervised release, on violating federal firearms charges, United States Attorney David J. Hickton announced today.
Timothy D. Johnson, 41, was sentenced on 11 counts before United States District Judge Cathy Bissoon. Johnson was also ordered to forfeit firearms and silencers, including a Sten machine gun.
According to information presented to the court, in or around 2008 Johnson knowingly disposed of a firearm to a convicted felon. In addition, on various dates between Dec. 5, 2010, and Oct. 14, 2011, Johnson unlawfully possessed and transferred silencers and a machine gun. Most of the transactions and conversations preceding the transactions were captured on audio and video recordings supervised by the FBI.
Johnson frequently boasted of his ability to manufacture silencers and fully automatic weapons during the investigation. After his arrest, Johnson admitted that the firearm and silencer he possessed and transferred on May 18, 2011, were used by him in April 2011 in a drive-by shooting of a car parked outside a Washington County residence. One of the bullets from that shooting struck the house, though no one was injured. Johnson told the FBI that former East Washington Police Chief Donald Solomon instigated the shooting.
FBI Special Agent James Shearer testified that Johnson and Solomon were originally to be members of a "home invasion" team that would rob homeowners of cash and, in some instances, drugs. Solomon, as Police Chief, was to provide background information on the subjects and "cover" during the home invasions, according to recorded conversations captured by the FBI.
Prior to announcing sentence, Judge Bissoon described Johnson's challenges to the evidence as "unpersuasive" and "disingenuous".
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Pennsylvania State Police, the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, and other state and federal law enforcement agencies, for the investigation leading to the successful prosecution of Johnson.
Two Former Marines Charged in Miramar Air Station Bribery and Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced today that former U. S. Marine Sergeants Luis Gilbert Menchaca and Manuel Ramos Padilla have been indicted on bribery and fraud charges involving the filing of false travel and lodging claims at the Marine Corp Air Station (MCAS) Miramar.
The indictment alleges that from 2002 to 2011, Menchaca served in the U. S. Marine Corps reserves, and periodically received orders calling him onto active duty at MCAS Miramar. Ramos, a fellow Marine, worked in an administrative office at Miramar that processed lodging claims for reservists like Menchaca. The indictment alleges that Ramos and Menchaca conspired to defraud the Defense Department by submitting false monthly claims for lodging reimbursements for Menchaca, and by creating fake rental bills to substantiate those false claims. The address in San Diego that Menchaca claimed to be renting was, in fact, a nonexistent street number in Mission Valley.
According to the indictment, Ramos knowingly signed and approved dozens of false lodging claims for Menchaca and another reservist, a Staff Sergeant (identified only by initials in the indictment) who has been charged elsewhere. Each of the two reservists received tens of thousands of dollars in lodging payments as a result of the scheme. In exchange for facilitating the fraud, Ramos in turn demanded and received thousands of dollars of bribe payments from the reservists. Many of these bribes were paid by personal checks made payable to Ramos; other bribes were paid in cash.
The ten-count indictment charges both defendants with conspiracy to commit bribery and false claims in count one. Counts two through four charge Ramos with substantive counts of bribery. The remaining six counts charge the defendants with making false claims to the United States.
United States Attorney Duffy stated, “Investigating and prosecuting bribery is one of our top priorities. With our nation’s military budget being strained to the breaking point, public corruption that drains needed U. S. Marine Corps resources will not be tolerated.”
The Naval Criminal Investigative Service notes that fraud in the armed services is not a victimless crime; it squanders hard-earned tax dollars and erodes the confidence that citizens place in their military. Charles Warmuth, NCIS Special Agent in Charge for Marine Corps West Field Office, stated "The Department of the Navy is facing massive budget cuts in the near future so it is as important as ever that offenders are found and held accountable.”
Menchaca was arraigned today before U. S. Magistrate Judge Karen S. Crawford and Ramos was arraigned on January 24 before U.S. Magistrate Judge Barbara L. Major. Both defendants pled not guilty. The case has been assigned to U. S. District Judge Dana M. Sabraw. The next scheduled court appearance is March 1, 2013 for a motion hearing.
DEFENDANTS Case Number: 12cr5099-DMS Manuel Ramos-Padilla
Luis Gilbert Menchaca SUMMARY OF CHARGESCount 1: Conspiracy to commit bribery and false claims, in violation of Title 18, United States Code, Section 371 (all defendants) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
Counts 2 to 4: Bribery, in violation of Title 18, United States Code, Section 201 (defendant Ramos) - Maximum penalties (per count): Fifteen years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
Counts 5 to 7: False claims, in violation of Title 18, United States Code, Section 287 (defendants Ramos and Menchaca) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
Counts 8 to 10: False claims, in violation of Title 18, United States Code, Section 287 (defendant Ramos) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYNaval Criminal Investigative Service
An indictment is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Three Individuals Plead Guilty to Selling Meth on the Spirit Lake Indian ReservationRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced that on Feb. 19, 2013, Fulton Merrick, Jr., Garrick Mini, and Rayone Sherman, each pleaded guilty before U.S. District Judge Ralph R. Erickson to a charge of distribution of a controlled substance.
Merrick, Jr., 37, Devils Lake, N.D., pleaded guilty to distributing approximately .40 grams of a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in August of 2011.
Mini, 32, Devils Lake, N.D., pleaded guilty to distributing approximately .15 grams of methamphetamine in August of 2011.
Sherman, 44, Fort Totten, N.D., pleaded guilty to distributing approximately .72 grams of a substance containing a detectable amount of methamphetamine in May of 2011.
All incidents occurred on the Spirit Lake Indian Reservation.
The charge of distribution of a controlled substance carries a statutory maximum penalty of 20 years' imprisonment.
These cases were investigated by the Drug Enforcement Administration, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation and Devils Lake Police Department.
Sentencing for all defendants has been scheduled for May 9, 2013, in U.S. District Court in Grand Forks, N D.
Assistant U.S. Attorney Janice M. Morley is prosecuting the cases.
Three Automotive Parts Suppliers Charged in Manhattan Federal Court with Selling Counterfeit Replacement PartsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of Indictments charging three automotive parts suppliers with selling counterfeit replacement parts. The three men – SHASHI MALHOTRA, FADI KILANI, and RICHARD DININNI – were arrested at their homes earlier this morning. MALHOTRA and KILANI will be presented in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein this afternoon. DININNI will be presented in federal court in Allentown, Pennsylvania.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants sold the automobile replacement parts equivalent of designer knock-offs, but represented to their unsuspecting customers that they were buying the ‘name brand.’ And while their replacement parts may have been no different from many other generic parts sold every day in the aftermarket, they were able to command the same higher prices charged by the automobile manufacturers’ whose names they stole. We encourage those who think they may have purchased counterfeit parts from these defendants or from anyone else to call the numbers listed at the end of this release.”
FBI Assistant Director-in-Charge George Venizelos said: “While it is not generally against the law to sell replicas or imitations, it is illegal to try to pass them off as authentic or original. Likewise, there is a legitimate market for aftermarket auto parts, but these defendants allegedly packaged parts to appear to be original manufacturer equipment and sold them as such. That isn’t legitimate; it’s fraud.”
According to the allegations in the Indictments unsealed in Manhattan federal court earlier today:
New automobiles sold to consumers are equipped with automotive parts that are manufactured or provided by the automobile’s manufacturer (“Original Equipment Manufacturer” or “OEM”). When a consumer needs to replace a part in an automobile, he or she can purchase either: parts made by OEMs which are sold under the OEMs’ brand names; or generic parts made by other manufacturers that are commonly referred to as “aftermarket” parts. Generic parts are regularly bought and sold lawfully as aftermarket parts, typically at lower prices than OEM parts. Many types of aftermarket parts – including those sold and falsely packaged as OEM parts by MALHOTRA, KILANI, and DININNI – do not have to meet independent federal safety standards.
MALHOTRA and KILANI
From October 2011 through February 2013, MALHOTRA, who operated Worldwide Auto Parts and S&S International Products and Manufacturing in Paterson, New Jersey, and KILANI, who operated Cypros Trading and Shipping in Paterson, New Jersey, conspired to sell counterfeit OEM parts. Specifically, the defendants and their co-conspirators deceptively packaged and caused to be packaged certain aftermarket automotive parts – including brakes, brake pads, brake shoes, ignition coils, water pumps, window regulators, suspension sway bar links, wheel hubs, anti-lock braking sensors, control arm bushings, transmission filters, pitman arms, tie rod ends, and suspension air springs – to falsely make it appear as though these parts had been manufactured by OEMs such as Ford Motor Company, General Motors, and Federal Mogul (the “Manufacturers”). They sold these parts to individuals and entities that they understood would re-sell them to the general public and to certain automotive repair shops, including repair shops that service New York City’s taxis and limousines, which are subject to separate and regularly scheduled safety testing by the New York City Taxi and Limousine Commission. MALHOTRA obtained some of these counterfeit parts from China, and KILANI exported some of these counterfeit parts to Saudi Arabia.
DININNI
Similarly, from November 2011 through June 2012, DININNI, who operated Professional Parts USA in Easton, Pennsylvania, also conspired to sell counterfeit OEM parts. Along with his co-conspirators, DININNI also deceptively packaged and caused to be packaged certain aftermarket automotive parts, including brake pads and water pumps to falsely make it appear as though these parts had been manufactured by OEMs. DININNI and his co-conspirators then sold these parts to individuals and entities that they understood would re-sell them to the general public and to certain automotive repair shops, including repair shops that service New York City’s taxis and limousines.
MALHOTRA, 67, of Norwood, New Jersey, KILANI, 28, of Englewood, New Jersey, and DININNI, 57, of Easton, Pennsylvania, are each charged with one count of conspiracy to traffic in counterfeit goods, which carries a maximum sentence of five years in prison, and one count of trafficking in counterfeit goods, which carries a maximum sentence of 10 years in prison.
As the U.S. Attorney’s Office and the FBI identify individuals and entities that may have purchased counterfeit automotive parts from these defendants, both will make appropriate notifications. If you believe you may have purchased any counterfeit automotive parts from these defendants or anyone else, you may wish to have your car inspected at an authorized and qualified vehicle inspection facility to determine whether the parts in question are counterfeit.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked U.S. Customs and Border Protection, Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Commerce for their assistance with this investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Joseph Facciponti and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture aspects of the case.
If you have questions, you may call the victim witness hotline for the U.S. Attorney’s Office at (866) 874-8900 or the FBI at (212) 384-2135. Several original equipment manufacturers have also established numbers which you may call with questions. You may call Ford Motor Company at (313) 337-3663, Federal Mogul at (877) 489-6659, and Chrysler at (855) 818-7612.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Shashi Malhotra and Fadi Kilani Indictment
U.S v. Richard Dininni IndictmentTax Preparer Charged with Falsifying Returns to Increase Client RefundsRead the Press Release
PHILADELPHIA - Shawn Sisco, 48, of Philadelphia, PA, was charged today by Indictment with preparing false income tax returns for her clients, announced United States Attorney Zane David Memeger. According to the indictment, Sisco, who owned Sisco Accounting, a home-based tax preparation business, falsified the itemized deductions on her clients’ returns in order to obtain refunds in amounts larger than the filers would have otherwise received if Sisco had truthfully prepared the tax returns. According to the indictment, the bogus expense deductions included: medical and dental expenses; charitable contributions; mortgage interest; cell phone expenses; property tax expenses; clothing and shoe expenses; laundry expenses; and maintenance expense.
If convicted the defendant faces a maximum possible sentence of 93 years of imprisonment, a fine of $7.750 million, a special assessment of $3,100 and 1 year of supervised after she is released from prison.
The case was investigated by Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Tabor City Man Pleads Guilty in Crop Insurance Fraud CaseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today PATRICK REX LOVETT, 48, of Tabor City, North Carolina, pled guilty before Chief United States District Judge James C. Dever III, to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and (d)(2).
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT, a farmer and President of Lovett Farms, structured currency transactions with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. From October 8, 2008, through September 14, 2009, LOVETT cashed 22 checks totaling over $160,000. Each check was issued in amounts less than $10,000, and some of the checks were tied to tobacco sales.
At sentencing, set for the May 20th, 2013, term of court, LOVETT faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in the Eastern District of North Carolina.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Suwannee County Man Indicted on Federal Charge of Failure to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - United States Attorney Robert E. O'Neill announced today the return of an indictment charging Denny Junior Jenkins (41, Live Oak) with failing to register as sex offender in the State of Florida after traveling from South Carolina. Jenkins faces up to 10 years in federal prison and a $250,000 fine. An arraignment and detention hearing are scheduled for February 22, 2013, at 10:00 a.m. before United States Magistrate Judge Monte C. Richardson.
According to the indictment, on September 4, 1992, Jenkins was convicted of committing two sex offenses in Florida. Subsequent to his conviction, between March 2012 and September 2012, Jenkins traveled from South Carolina to Florida, where he has since resided. Jenkins allegedly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Steven Ray Cook Sentenced to 360 Months for Running Multi-State Drug Distribution RingRead the Press Release
Memphis, TN – Stephen Ray Cook, 40, of Trenton, TN, was sentenced on Friday, February 15, 2013, to 360 months in federal prison for his role in masterminding a drug distribution ring that operated across the eastern United States, announced U.S. Attorney Edward L. Stanton III.
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Cook was indicted by a federal grand jury on May 18, 2011 and charged with one count of conspiracy to possess with intent to distribute at least 1,000 kilograms of marijuana, and one count of possession with intent to distribute at least 500 grams of methamphetamine. He pleaded guilty to the marijuana conspiracy charge on January 12, 2012. The government agreed to dismiss the methamphetamine count.
It was revealed during his plea hearing and at sentencing that Cook recruited family members and acquaintances to assist him in trafficking marijuana from locations in Mexico to Memphis, Chicago, Atlanta and other cities.
In addition to the prison sentence, U.S. District Judge Samuel H. Mays, Jr. ordered Cook to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Drug Enforcement Administration, the Bolivar Police Department, and the West Tennessee Drug Task Force. Assistant U.S. Attorney Jerry Kitchen represented the government.Second Former Humana Inc. Employee Admits to Taking Kick-Backs Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
LOUISVILLE, Ky. – Former Humana Inc. regional sales director, Glen Allan Fine, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Fine, age 56, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization. Co-defendant, James Wenger, age 50, of Louisville pleaded guilty to the charge on January 23, 2013.
According to the plea agreement, Fine admits that in 2005, he, along with Wenger and others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA). Fine and co-defendant James Winger, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Fine and Wenger. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Fine admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Fine was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Fine received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Fine faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Fine may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, and the United States Postal Inspection Service, with assistance from the Humana Inc.
San Francisco Man Sentenced to Eight Years in Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO - Vincent Lee was sentenced yesterday to 96 months in prison, and ordered to pay $2,400 in restitution for possession of child pornography, United States Attorney Melinda Haag announced.
Mr. Lee pleaded guilty on September 6, 2012, to one count of possessing child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). According to the plea agreement, Mr. Lee admitted that he possessed over 200 videos of child pornography, including videos of prepubescent children being sexually abused in ways that would cause them pain. Mr. Lee also admitted that upon learning a search warrant would be executed at his residence, he obstructed the investigation by deleting software and images on his computer before the police arrived.
Mr. Lee, age 54, of San Francisco, California, was indicted by a federal grand jury on May 3, 2012. He was charged with distributing and possessing child pornography. He has been in continuous custody since his initial bond was revoked after he cut off his electronic bracelet and left the District in violation of his bond conditions.
The sentence was handed down by U.S. District Court Judge Jeffrey S. White following a guilty plea to one count in violation of 18 U.S.C. § 2252(a)(4)(B) (possession of child pornography). Judge White also sentenced the defendant to a five-year period of supervised release.
Stacey Geis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rania Ghawi. The prosecution is the result of an investigation by the Department of Homeland Security in coordination with the San Jose Police Department.
Parkville Man Sentenced to 27 Years in Prison for Sexual Bondage of a 15 Year Old GirlRead the Press Release
Recruited Women and Girls Online Into a Bondage and Sadistic Lifestyle; Took the 15 Year Old Girl from Her Home and Kept Her ConfinedBaltimore Maryland - U.S. District Judge James K. Bredar sentenced John Andrew Blaes, age 49, of Parkville, Maryland, today to 27 years in prison followed by a lifetime of supervised release for conspiracy to produce child pornography and transporting a minor to engage in sexually explicit conduct. Judge Bredar ordered that upon his release from prison, Blaes must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence 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 William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, at some time prior to March 2010, Blaes and 37 year old co-conspirator Margaret Jones met online and became involved in a sexual relationship. Blaes used the Internet to recruit other women and girls into a bondage and sadistic sexual lifestyle.
On July 5, 2011, Blaes solicited a 15 year old girl to have sex with him and Jones. Blaes and Jones knew that the victim was a vulnerable minor. Blaes and Jones sent pornographic pictures of themselves to the victim using the computer.
On July 22, 2011, Blaes and Jones traveled to the victim’s home in North Carolina to bring her to live with them in Parkville. After picking the victim up in North Carolina, Blaes and Jones sexually abused her in the back of their vehicle, including using bondage with ropes, chains and clamps. The next day, Blaes and Jones rented a hotel room in North Carolina to have sex with the victim. Blaes and Jones used a camera to document the sexual abuse of the victim in the van and the hotel. The images include sadistic and masochistic conduct.
From July 22 to November 20, 2011, Blaes and Jones engaged in sex acts with the victim multiple times a week. Blaes also cut the victim and held lemons to her injuries. Blaes and Jones instructed the victim to keep the sexual conduct and her age a secret. The victim was kept in their residence or in their control at all times, and was not enrolled in school.
Blaes and the co-conspirator used a camera and cell phones to photograph the victim in sexually explicit poses and their sexual abuse of the victim. Blaes distributed the sexually explicit images online to recruit other individuals.
Margaret Ellen Jones, of Parkville, Maryland, pleaded guilty to conspiracy to produce child pornography and is scheduled to be sentenced on June 11, 2013 at 4:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore and the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Judson T. Mihok, who prosecuted the case.
Parker Man Pleads Guilty to Abusive Sexual Contact with Minor ChildRead the Press Release
PHOENIX – Roberto Aguilar-Ramirez, 51, of Parker, Ariz., pleaded guilty in federal district court in Phoenix on Feb. 19, 2013, to abusive sexual contact with a minor. The minor victim was a member of the Colorado River Indian Tribes and the acts occurred on the Colorado River Indian Tribes Indian Reservation.
Aguilar-Ramirez, a foster father, had been charged with engaging in various abusive sexual acts with the minor victim over a period of two years.
A conviction for abusive sexual contact with a minor carries a maximum penalty of life in prison, a $250,000 fine, or both.
Sentencing is set before Chief Judge Roslyn O. Silver on May 13, 2013.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution is being handled by Christina J. Reid-Moore and Jennifer E. Green, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-0922-PHX-ROS
RELEASE NUMBER: 2013-018_Aguilar-RamirezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
North Hills Man Sentenced to Prison for Stealing Firearms from Hunting Supply CompanyRead the Press Release
PITTSBURGH, Pa. - A resident of Gibsonia, Pa., has been sentenced in federal court to one year and one day incarceration, to be followed by three years supervised release, on his conviction of violating federal firearm laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Robert Keller, 25.
According to information presented to the court, on Nov. 1, 2010, Keller stole five firearms from Misczak Hunting Supplies located at 201 Crawford Run Road, Creighton, Pa. As part of the sentence in this case, Keller was ordered to pay $1,480 in restitution to Misczak Hunting Supplies, as well as a $500 fine.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Robert Keller.
New Haven Man Pleads Guilty to Federal Narcotics ChargeRead the Press Release
February 19, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that RODNEY SNAPE, 32, of New Haven, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of possessing cocaine base ("crack cocaine").
According to court documents and statements made in court, this matter stems from an FBI New Haven Safe Streets Task Force investigation into drug trafficking and associated violence in the Hill area of New Haven. From October to December 2012, an individual working with law enforcement made four purchases of a total of approximately 52 grams of crack cocaine from SNAPE.
Judge Arterton has scheduled sentencing for May 17, 2013, at which time SNAPE faces a maximum term of imprisonment of 20 years and a fine of up to $1 million.
This matter is being investigated by the FBI New Haven Safe Streets Task Force, which is composed of agents and officers with the Federal Bureau of Investigation, New Haven, Milford and Hamden Police Departments, and the Connecticut Department of Correction.
This case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and H. Gordon Hall.
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(203) 821-3722 [email protected]Mobile Accountant Sentenced to Federal Prison for Bankruptcy, Tax Perjury ChargesRead the Press Release
United States Attorney Kenyen Brown announces that Simon Ndongo of Mobile, Alabama was sentenced to eighteen (18) months in Federal prison and three years supervised release on his conviction of charges of falsification of documents in relation to a bankruptcy case and tax perjury. Ndongo, a former City of Mobile accountant, was also ordered to pay restitution of $278,055.47 to Bank of America; $50,131.33 to Citibank; $5,205.29 to JPMorgan Chase; $1,509.93 to Discover Card; $38,088.79 to the Bankruptcy Court; and 36,872 to the Internal Revenue Service.
The guilty plea concerns Ndongo’s 2008 Federal tax return, which falsely claimed the First Time Home Buyer Credit for purchasing a home in 2008, when he had not in fact purchased a home that year. Ndongo filed that false tax return with the Internal Revenue Service.
Ndongo also pled guilty to charges that he falsely answered questions about his investments in his bankruptcy Schedules, which obstructed the proper administration of the bankruptcy case, Case No. 08-11173, by concealing the investments from the Bankruptcy Court for the Southern District of Alabama, the Trustee and creditors. The plea agreement also required Ndongo to make restitution to the victims of crimes charges in other counts of the indictment to which he did not plead guilty.
The case was investigated by agents of the Mobile Office of the Federal Bureau of Investigation and the Mobile Office of Criminal Investigation, Internal Revenue Service. United States Attorney Kenyen R. Brown stated that the prosecution shows that the Department of Justice understands its duty to work to ensure that honest taxpayers are not taken advantage of and to endeavor to keep the bankruptcy system clean. Special Agent In Charge Veronica Hyman-Pilot, Internal Revenue Service Criminal Investigation, stated “Fraud and dishonesty in bankruptcy proceedings undermines the integrity of those important proceedings. Concealing assets from the bankruptcy court and not paying taxes is a gross violation of civic duty and deserves punishment such as that handed down today.”
The case was prosecuted by Assistant U.S. Attorneys Vicki Davis, Michele O’Brien and Charles Baer on behalf of the United States Attorney’s Office for the Southern District of Alabama.