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19 February 2013
Milwaukee Man Sentenced for Gun ChargeRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Feb. 19, 2013, Shawn R. Larkin, 30, Milwaukee, Wis., who was living in Minot, N.D., at the time of this incident, was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of firearm and ammunition by a convicted felon. Larkin pleaded guilty to the charge on Oct. 12, 2012.
Judge Hovland sentenced Larkin to serve two years and seven months in federal prison, to be followed by two years of supervised release. Larkin was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On July 14, 2012, officers from the Minot Police Department responded to the report of a fight at Rooster’s Bar in Minot, N.D. While investigating the report, a witness indicated that a man, later identified as Larkin, had a gun in his possession. Officers found that Larkin had a loaded .40 caliber handgun in his waistband.
Larkin was prohibited from possessing either a firearm or ammunition by virtue of his previous felony convictions for theft, Milwaukee County, Wis., in 2001, and simple assault on a peace officer, Ward County, N.D., in 2012.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Minot Police Department.
Assistant U.S. Attorney David Hagler prosecuted the case.
Miami Man Sentenced in Federal Court for Medical Identity Theft SchemeRead the Press Release
Rural Gainesboro, Tennessee Barn Used as Medical Provider Address
Yennier Capote Gonzalez, 33, of Miami, Florida, was sentenced on February 15, 2013, by Chief U.S. District Judge William J. Haynes, Jr., to serve 67 months in federal prison, and ordered to pay restitution in the amount of $19,296 for his role in a medical identity theft scheme, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
Gonzalez was convicted by a federal jury in Nashville, Tennessee on November 2, 2012, of five counts of health care fraud, two counts of aggravated identity theft and one count of money laundering, after he falsely billed $232,000 to Medicare Advantage Program insurance companies.
“Health care fraud and identity theft are top priorities of the U.S. Attorney’s Office,” said U.S. Attorney, Jerry E. Martin. “We continue to expand our focus and dedicate new resources to investigating and prosecuting this type of white collar criminal activity and will stay the course to insure that those who operate fraudulent schemes such as this are held accountable.”
“Medical identity theft is one of the fastest growing areas of health care fraud,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services- Office of Inspector General in Atlanta. “In this case, the defendant was arrested less than 48 hours after our office received the complaint. The sentence handed down today should serve as a deterrent to anyone who tries to defraud the Medicare program.”
This investigation began in August 2010 after the U.S. Department of Health and Human Services- Office of Inspector General was notified that an individual in Miami, Fla. had attempted to wire $17,000 from a new Tennessee account that had recently received a $38,000 Medicare deposit. Gonzalez had opened the account for his recently incorporated business, Gainesboro Ultimate Med Service, in rural Gainesboro, Tennessee. A visit to the property revealed the only structure at the business location was an old barn and an uncompleted house at another tract of land that was used as the address for the fraudulently billed patients.
The investigation also revealed that Gainesboro Ultimate Med Service had stolen the identity of a Knoxville, Tennessee physician and used it to obtain a Medicare provider number at the barn address. Gainesboro Ultimate Med Service then submitted claims using the names of several Medicare beneficiaries who lived in South Florida. The patients, who were also victims of identity theft, were billed for services purportedly rendered at Gainesboro Ultimate Med Service, even though they had never been to Tennessee.
Gonzalez was arrested on August 25, 2010, at a bank in Miami, Fla., during another wire transfer attempt.
This case was investigated by agents of the U.S. Department of health & Human Services-Office of Inspector General. The government is represented by Assistant U.S. Attorneys Darryl Stewart and William Abely.
Leader in Marijuana Distribution Organization Convicted on Racketeering ChargesRead the Press Release
Charges Include Kidnapping and Murder in Aid of RacketeeringBaltimore, Maryland - A federal jury today convicted Jean Brown, age 43, of Jamaica in connection with a conspiracy to distribute marijuana as one of the leaders of the Brown Organization, a criminal organization whose members distributed narcotics primarily in Maryland, Pennsylvania, New York, Arizona and Jamaica. Co-defendant Gabriel Campa-Mayen, age 45, of Tijuana, Mexico, was acquitted of all charges.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Larry W. Tolliver, Sr.
“Today’s conviction of Jean Brown for drug conspiracy and kidnapping and murder in aid of racketeering is a victory for Homeland Security Investigations (HSI) special agents, who since 2009 have been investigating the Jean Brown drug trafficking organization, which spanned five states and two countries. HSI special agents have seized approximately 100 pounds of marijuana, $853,000 in cash and bank accounts and six firearms from these co-conspirators that used intimidation and violence to further their criminal activities,” said William Winter, special agent in charge for ICE HSI Baltimore. “HSI will continue working with our law enforcement partners to investigate and ultimately dismantle criminal organizations that are wreaking violence in our communities through the illicit drug trade.”
According to evidence presented at their seven-day trial, Jean Brown and Carl Smith were the leaders of a drug organization that obtained marijuana in Arizona and California and used trucking companies that Brown owned and operated to transport the marijuana to Maryland, Pennsylvania and New York on a monthly basis. The evidence showed that they transported as much as 1,000 pounds of marijuana per month from 2000 until Brown’s arrest in 2010.
Brown employed drivers to drive the trucks, arranged for the distribution of the marijuana on the East Coast – principally in Baltimore and Pittsburgh, used couriers to smuggle the drug proceeds to Jamaica, and sent cash back to the Southwest to pay for the next load.
Witnesses testified that on December 16, 2009, Brown, Smith and co-defendants Peter Blake, Hubert Downer and Dean Myrie kidnapped Michael Knight, one of Brown’s money couriers. According to trial testimony, Knight was holding $1 million for the organization, but when the money was collected $250,000 was missing. Myrie drove Brown and Knight, who was bound with a telephone cable, and other members of the organization to an apartment in White Marsh, Maryland, where Brown and others interrogated Knight. After Knight was not able to provide the location of the money, Brown ordered Downer and Blake to kill Knight. Knight was stabbed to death in the bathtub. Over the next few days Brown, Myrie, Downer and Blake dismembered Knight and disposed of his body in dumpsters in the Loch Raven and Liberty Road areas of Baltimore County.
In addition to the murder of Knight, the evidence showed that after threatening Smith on several occasions, in April 2010, Brown offered to pay Campa-Mayen and Leo Alvarez Tostado-Gastellium to murder Smith in Tijuana, Mexico. Witnesses testified that Tostado-Gastellium killed Smith, shooting him in the head. Brown also assaulted a former partner in the drug organization with a baseball bat and a woman and her infant child with boiling water and a with a knife.
Brown faces a maximum of life in prison for the drug conspiracy, for kidnapping in aid of racketeering, and for murder in aid of racketeering; and a maximum of 10 years in prison for conspiracy to commit murder in aid of racketeering.
Hubert Downer, a/k/a “Doc” and “Michael Reid,” age 51, of Jamaica; Dean Myrie, a/k/a “Journey,” age 39, of Jamaica; and Peter Blake, age 55, of Jamaica have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Leo Alvarez Tostado-Gastellium, a/k/a “Superman,” is a fugitive.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department Homicide/Missing Persons Unit, and the Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Stefan D. Cassella and Peter M. Nothstein, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Kodiak Man charged with murder of two Coast Guard EmployeesRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that James Michael Wells, 61, of Kodiak was indicted by a federal grand jury for the murders of U.S. Coast Guard Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle. Belisle, who was working as a Coast Guard civilian employee and Hopkins, were murdered at the U.S. Coast Guard Communications Station Kodiak on April 12, 2012. Wells’ is charged with four counts of premeditated murder and two counts of using a weapon in a crime of violence. All counts relate to the two murders.
Wells was arrested on February 15, 2013, under a federal arrest warrant based on a criminal complaint. As charged each count carries a maximum penalty of life in prison. Anyone with knowledge of the facts or information concerning these events is urged to contact the FBI.
Ms. Loeffler notes that the indictment comes after an extensive investigation led by the Federal Bureau of Investigation and the Coast Guard Investigative Service, with support from the Alaska State Troopers.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Kingsville Woman Arrested in Ohio on Corpus Christi Embezzlement CaseRead the Press Release
CORPUS CHRISTI, Texas – Maricella Garza, 37, of Kingsville, has been arrested following the return of an indictment charging her with embezzling funds from the Kingsville Community Federal Credit Union, United States Attorney Kenneth Magidson announced today.
Garza was arrested by U.S. Marshals Friday, Feb. 15, 2013, at a residence in Englewood, Ohio. She appeared in federal court that afternoon before U.S. Magistrate Judge Sharon L. Ovington.
The one-count indictment, returned on Jan. 9, 2013, alleges Garza was an employee of the Kingsville Community Federal Credit Union and embezzled approximately $30,555.55. The thefts are alleged to have occurred between Aug. 28, 2009, and July 9, 2010, according to the indictment.
If convicted, Garza faces up to 30 years in prison as well as a possible $1 million fine. She remains in custody in Dayton pending a bond hearing set for Feb. 20, 2013, at 1:30 p.m. She is expected to appear in Corpus Christi in the near future.
This case is being investigated by the FBI with assistance from the U.S. Marshals Service and prosecuted by Assistant United States Attorney Sam Brown IV.Kansas Man Pleads Guilty to Interstate Travel for the Purpose of Having Sex with A ChildRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has pleaded guilty to interstate travel for the purpose of engaging in sex with a child, U.S. Attorney Barry Grissom said today.
Robert Poe, III, 38, Kansas City, Kan., pleaded guilty to three counts of traveling from Kansas to Missouri for the purpose of engaging in sex acts with a child.
During a hearing today, prosecutors told a judge the crimes occurred in 1999 and 2000. They said the investigation began in November 2000 when the Kansas City, Kan., Police Department received a complaint from the mother of a 7-year-old boy. She said Poe had engaged in sexual acts with her son. At the time, Poe was a friend of the mother’s boyfriend, Michael Arnett, and Poe sometimes served as a babysitter for the boy. Arnett is charged in a separate federal criminal case.
Prosecutors told the judge that one incident (count one) occurred in April 2000 when Poe was babysitting the boy at Poe’s home. Poe showed the boy photos of nude children and then made the boy perform oral sex on him.
Another incident (count two) occurred in July 2000 when Poe was babysitting. The boy said Poe held a gun to his head and forced him to perform oral sex.
Another incident (count three) occurred in 1999 or 2000. A victim told federal agents that he and his now deceased brother were molested by Poe and Arnett while the victim was between 10 and 12 years old. The victim said he first met Arnett in 1997 when his brother was a patient at a hospital in Kansas City. The victim’s brother had cystic fibrosis and died in May 2003. The victim said Arnett befriended him and his brother. The victim said the molestation started when Arnett’s friend Poe started showing up with Arnett in 1998. The victim said Poe held a gun to his head and forced him to perform oral sex on him. The victim said Poe first molested him at the house of Poe’s father in Shawnee Mission, Kan. The victim said Arnett and Poe took him and his brother out of town on weekend trips and molested both boys. The trips were to St. Louis, Mo., Bennet Springs, Mo., and Oklahoma City, Okla.
Sentencing is set for May 20. Poe faces a maximum penalty of 30 years in federal prison and a fine up to $250,000 on each count. In a separate federal case, Arnett pleaded guilty to one count of producing child pornography and is set for sentencing May 13.
Grissom commended the Kansas City, Kan., Police Department, ICE’s Homeland Security Investigations and Assistant U.S. Attorney Kim Martin for their work on the case.
Kansas City Man Gets 95 Years in Federal Prison for Robberies in Topeka and LeavenworthRead the Press Release
KANSAS CITY, KAN. – A Kansas City man has been sentenced to 95 years in federal prison for robbing financial institutions in Topeka and Leavenworth, U.S. Attorney Barry Grissom said today.
Charles E. Shaw, 55, Kansas City, Mo., was convicted in a jury trial in November of the following: – Robbing the Main Street Credit Union at 1609 S. 4th in Leavenworth, Kan., on Nov. 24, 2010; and brandishing a firearm during the robbery.
– Robbing the Citizens National Bank at 601 Delaware Street in Leavenworth on Feb. 14, 2011.
– Robbing the Educational Credit Union at 901 Topeka Boulevard in Topeka, Kan., on Dec. 30, 2011; and brandishing a firearm during the robbery.
– Attempting to rob the Educational Credit Union again on Feb. 9, 2012; carrying a firearm during the attempted robbery; and carrying a firearm after a felony conviction.At sentencing, prosecutors noted that Shaw had five prior convictions for armed robbery dating back to 1983.
The judge also ordered Shaw to pay $54,052 in restitution.
Grissom commended the Topeka Police Department, the Leavenworth Police Department, the FBI and Assistant U.S. Attorney Terra Morehead for their work on the case.Justice Department and Town of East Haven, Conn., Select Kathleen O’toole as Joint Compliance Expert for Police Reform AgreementRead the Press Release
The Department of Justice Civil Rights Division and the U.S. Attorney’s Office for the District of Connecticut announced today, together with the town of East Haven, Conn., and the East Haven Board of Police Commissioners, they have selected Kathleen O’Toole as the Joint Compliance Expert (JCE) to assess and report on the implementation of a comprehensive settlement agreement to reform the East Haven Police Department (EHPD). The district court approved the agreement on Dec. 21, 2012.
Under the agreement, the JCE will assist in determining whether the terms of the agreement have been fully and timely implemented. The JCE’s assessment will include a thorough review of EHPD’s policies, training curricula, standard operating procedures, plans, protocols and other operational documents related to the agreement. The JCE will also assess whether the implementation of the agreement is resulting in constitutional policing, increased community trust, and the professional treatment of individuals by EHPD officers.
Following a joint review that included multiple candidates, the parties selected Ms. O’Toole to serve as JCE. She brings extensive policing experience and a collaborative compliance framework that will assist the parties, the court, and other stakeholders to evaluate the implementation of critical reforms by EHPD. Ms. O’Toole is an internationally-recognized leader in the law enforcement field and recently completed a six-year term as Chief Inspector of the Garda Síochána Inspectorate, an oversight body responsible for bringing reform, best practice, and accountability to the Irish national police service. Previously, she worked her way up the ranks of the Boston Police Department, beginning as a patrol officer and eventually serving as Boston Police Commissioner. Ms. O’Toole also served as Massachusetts Secretary of Public Safety. Ms. O’Toole intends to hire several other police experts to assist her in assessing compliance with the agreement. She will begin her work as JCE immediately.
“We are pleased to have worked collaboratively with the town to select Ms. O’Toole, who we believe is uniquely positioned to assess and report on the East Haven Police Department’s reform efforts,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We look forward to working together with Ms. O’Toole and the town to ensure effective and constitutional policing by the East Haven Police Department.”
U.S. Attorney David Fein commented, “I am pleased that the joint selection of Kathleen O’Toole as the Joint Compliance Expert will now allow the real work to begin on the implementation of the settlement agreement approved by the court.”
The full text of the settlement agreement is available at www.justice.gov/crt/about/spl/findsettle.php . For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt .
Justice Department Reaches Settlement with Texas Champion Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
The Justice Department announced today that Texas Champion Bank of Alice, Texas, will establish uniform pricing policies, conduct employee training and pay $700,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed in conjunction with the Justice Department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Texas Champion charged higher prices on unsecured consumer loans made to His panic borrowers through its branch offices in violation of the Equal Credit Opportunity Act (ECOA).
“The complaint filed today demonstrates that the Civil Rights Division is committed to fair lending enforcement across the entire spectrum of credit markets,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. “We commend Texas Champion for working cooperatively with the Justice Department in reaching an appropriate resolution of this case.”
The lawsuit originated from a 2010 referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division. Texas Champion is a member of the FDIC.
Under the settlement, Texas Champion will pay $700,000 to approximately 2,000 Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin, and provide equal credit opportunity training to its employees. Texas Champion will also revise its pricing policies to ensure that the price charged for its loans is set in a non-discriminatory manner consistent with the requirements of ECOA. The agreement also prohibits the bank from discriminating on the basis of national origin in any aspect of a credit transaction.
“The Southern District of Texas is committed to ensuring banks and other lending institutions do not discriminate against borrowers on the basis of race or national origin,” said U.S. Attorney for the Southern District of Texas Kenneth Magidson. “The consent order filed today should serve as a reminder that discrimination in lending will not be tolerated.”
The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 24 lending matters under the Fair Housing Act, ECOA, and the Servicemembers Civil Relief Act. The settlements in these matters provide for a minimum of $660 million in monetary relief for impacted communities and more than 300,000 individual borrowers. The Attorney General’s annual reports to Congress subject to ECOA highlight the department’s accomplishments in fair lending and are available at http://www.justice.gov/crt/publications .
The Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FDIC are members of the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov .
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing .
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 19, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. He is currently detained. If convicted of these charges, HENDERSON faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each count. Assistant U.S. Attorney Bryan R. Whittaker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Gallup Man Pleads Guilty to Federal Assault Charge Arising from Domestic Violence IncidentRead the Press Release
ALBUQUERQUE –Derek Yabeny, 26, an enrolled member of the Navajo Nation who resides in Gallup, N.M., pled guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Yabeny was arrested on a criminal complaint in Oct. 2012. He subsequently was indicted and charged with assault resulting in serious bodily injury, and abandonment or abuse of a child. According to the criminal complaint, on Oct. 7, 2012, Yabeny assaulted his girlfriend, who is the mother of his two-year old toddler. At the time of the assault, the victim was carrying her infant daughter. The victim sustained two orbital fractures as a result of the assault.
During today’s proceedings, Yabeny pled guilty to Count one of the indictment. In entering his guilty plea, Yabeny admitted assaulting the victim, a Navajo woman, by striking her with his fists and causing her to suffer serious bodily injury. The assault occurred on the grounds of the Shiprock Fair, which are located on the Navajo Indian Reservation on Oct. 7, 2012.
Yabeny has been in federal custody since his arrest on Oct. 26, 2012, and remains detained pending his sentencing hearing, which has not yet been scheduled. Under the terms of the plea agreement, Yabeny will be sentenced to 25 months in prison followed by a supervised release term to be determined by the court.
The case was investigated by the Albuquerque office of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
This case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Franklin Troy Caplette Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 19, 2013, before U.S. District Judge Sam E. Haddon, FRANKLIN TROY CAPLETTE, a 28-year-old resident of Havre, pled guilty to possession with intent to distribute methamphetamine. Sentencing has been set for June 10, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
CAPLETTE had been known throughout the Rocky Boy's and Havre communities to be a source of methamphetamine for the past several years. Law enforcement began their investigation into CAPLETTE in 2010.
Several witnesses would have testified that they purchased methamphetamine numerous times from CAPLETTE between 2010 and August 2012.
CAPLETTE faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $2,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Havre Police Department.
Four Sentenced in Connection with El Paso Corruption InvestigationRead the Press Release
In El Paso this morning, former El Paso County Commissioner Larry Medina, El Paso attorney David Escobar, and former Ysleta Independent School District (YISD) Trustees Linda Chavez and Mickey Duntley were sentenced for their roles in a corruption scheme involving healthcare service contracts with AccessHealth, Inc. (ACCESS), announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Mark Morgan.
United States District Judge Frank Montalvo sentenced: Escobar and Duntley each to 41 months in federal prison followed by three years of supervised release; Medina, 16 months in federal prison followed by three years of supervised release; and, Chavez, five years probation with 30 days in a halfway house. Judge Montalvo also ordered that Escobar pay a $10,000 fine and $42,077.24 restitution; Medina, a $100,000 fine and $56,700.42 restitution; and Chavez, $9,000 restitution.
Last year, Chavez, Duntley and Escobar pleaded guilty to conspiracy to commit mail/wire fraud and deprivation of honest services; Medina, aiding and abetting mail fraud and deprivation of honest services. By pleading guilty, the four defendants admitted to participating in a deliberate and long-term effort to bribe elected officials in order to insure that ACCESS would receive lucrative healthcare service contracts from El Paso County and YISD.
“Today’s sentencing sends a strong message regarding the FBI’s continued aggressive investigations of individuals in the El Paso community involved in public corruption. The FBI, along with our law enforcement partners, will continue our pursuit of individuals and elected officials who actions violate the public’s trust and confidence,” stated FBI Special Agent In Charge Mark Morgan.
These sentencings are a result of a large scale FBI investigation which began in 2004. To date, 32 individuals have been convicted of federal offenses stemming from the investigation. Four are awaiting trial. Assistant United States Attorneys Debra Kanof, Jose Luis Gonzalez, William F. Lewis, Jr., Juanita Fielden, Chris Skillern and Donna Miller are prosecuting these cases on behalf of the Government.
Four Plead Guilty to Selling Homes Without Knowledge of Real Property OwnersRead the Press Release
ALEXANDRIA, Va. – Four individuals – including two settlement agents in Annandale, Va. – have pleaded guilty to conspiring to fraudulently taking over the titles of homes in Washington, D.C., without the real property owners’ knowledge, selling those homes, and keeping the profit.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by United States District Judge Gerald Bruce Lee.
According to court records, Jamaul Roberts, 25, College Park, Md., conspired with others to visit the D.C. tax courts to identify properties with overdue property tax bills. They would use sources such as Ancestry.com and the D.C. property tax database to locate vulnerable properties where they could take over the home’s title without the real owners’ knowledge. These homes included those left vacant, passed on to heirs after the owner’s death, or owned by the elderly in nursing homes who did not understand the transactions taking place.
The fraudulent sales were facilitated by two settlement agents, Patricia Mantilla, 35, of Lorton, Va., and Melissa McWilliams, 35, Chantilly, Va., who worked at Ace Title & Escrow in Annandale. The agents knew the home sales were fraudulent and that the owners appearing at settlement were not the rightful owners. They also assisted the conspirators in hiding profits on the property sales from other parties involved in the sale through fictitious invoices to be paid at closing.
The conspirators, including Michael Brown, 41, Hyattsville, Md., recruited straw sellers to sign documents and falsely represent themselves as the owners of the properties. Brown, for example, appointed himself the personal representative of the rightful owner of a property and prepared a fake death certificate for the owner, although the owner was still living. He attempted to sell the property to another member of the conspiracy for $350,000.
During the course of the scheme, numerous properties were fraudulently sold, resulting in more than $1 million in actual and intended losses.
Roberts and Brown pled guilty to conspiring to commit wire fraud and face a maximum penalty of 20 years in prison when they are sentenced on May 10, 2013, and May 3, 2013, respectively.
Mantilla and McWilliams pled guilty to conspiring to commit wire fraud and face a maximum penalty of five years in prison when they are sentenced on April 26, 2013, and June 7, 2013.
This ongoing investigation is being conducted by the FBI’s Washington Field Office. Assistant United States Attorney Chad Golder of the Office’s Financial Fraud and Public Corruption Unit is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Wayne County Official Found Guilty of Falsifying Documents to Conceal Bribery SchemeRead the Press Release
Zayd Allebban, former Wayne County Director of Enterprise Applications, the office that does software application development for Wayne County, was found guilty today by a federal jury in Detroit on charges of falsifying documents with the intent to obstruct justice, U.S. Attorney Barbara L. McQuade announced. The purpose of the falsified documents was to conceal a bribery/extortion scheme by Allebban’s friend and supervisor, Tahir Kazmi, former Wayne County Chief Information Officer.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III of the Federal Bureau of Investigation (“FBI”).
The eight day trial was conducted before United States District Judge Stephen J. Murphy. The jury deliberated for approximately a day and a half before reaching their verdict.
The evidence presented at trial established that Allebban and Kazmi sought to obstruct justice by seeking to persuade a private contractor to provide false information to the FBI and to a federal grand jury investigating corruption in the Wayne County government. Allebban and Kazmi sought to conceal the fact that the contractor had given Kazmi tens of thousands of dollars in cash and trips to Hawaii, Turkey, and Florida. Allebban was found guilty of falsifying documents that indicated that all payments from the contractor had been repaid by Kazmi, prior to the initiation of the grand jury investigation, with the intent to obstruct the grand jury and FBI investigation. Allebban, as part of the scheme, also delivered $24,000 in cash to the private contractor in an effort to induce the contractor to tell the FBI that the contractor had never given anything to Kazmi.
Allebban faces up to twenty years in prison and a fine of up to $250,000 on each of the two counts of falsifying documents.
A sentencing date will be set by Judge Murphy’s chambers.
Allebban was found not guilty on separate charges of conspiracy to obstruct justice and obstruction of justice by means of false documents.
Tahir Kazmi pleaded guilty on July 26, 2012 to accepting a bribe and is scheduled to be sentenced on February 22, 2013. He faces a maximum sentence of ten years in prison and/or a $250,000 fine.
U.S. Attorney McQuade said, “Public officials who illegally enrich themselves will be detected and brought to justice. Efforts to conceal their crimes will bring additional charges and higher penalties.”
FBI Special Agent in Charge Foley said, "The citizens of Wayne County deserve honest government and leaders committed to serving the needs of taxpayers. This verdict should serve as a reminder that the FBI-led Detroit Area Public Corruption Task Force will remain vigilant and dedicated to stopping these illegal acts."The case was investigated by Special Agents of the FBI and Detroit Area Public Corruption Task Force. It is being prosecuted by Assistant United States Attorney Sheldon Light.
Former Topeka Lawyer Sentenced for Stealing from Clients' Trust FundsRead the Press Release
TOPEKA, KAN. – A former Topeka lawyer has been sentenced to five years in federal prison for stealing money from clients’ trust funds, U.S. Attorney Barry Grissom said today. He was ordered to pay restitution of $537,680.
Robert M. Telthorst, 52, Topeka, Kan., pleaded guilty to one count of wire fraud and one count of money laundering. In his plea, he admitted that from November 2005 to August 2011 he executed what was in essence a Ponzi scheme in which he took clients' money and used it both to benefit himself and to cover up the fact he was taking money from other clients' trust accounts.
The list of clients he allegedly defrauded includes the following: -- The daughters of a man identified in court documents as Otto K. After the man's death, Telthorst was appointed to administer $463,344 for the man's two daughters. The man wanted the first daughter, identified as Sheri T., to receive a lump sum. Money for the second daughter, identified as Marlene O., was to be invested, with monthly payments to be made to her. Before providing the lump sum to Sheri T., Telthorst took approximately $22,000 for his own benefit. In the trust for Marlene O, the balance dropped from more than $208,500 to less than $150 after Telthorst removed most of the funds for his own benefit.
-- The granddaughters of a client, identified as Mia, Olivia and Lillian. Telthorst set up three educational gift trusts of $10,000 each. He depleted all three trusts, leaving them each with balances of less than $350.
-- Arnold and Bertha J., who established a charitable trust of $80,000 for the KU School of Business. The balance in the account dropped to less than $1,750 after Telthorst diverted funds to his own benefit.Grissom commended the FBI, the Shawnee County District Attorney's Office and Assistant U.S. Attorney Tanya Treadway for their work on the case.
Former South Plainfield, N.J., Police Captain Charged with Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain is charged with the sexual exploitation of a minor female after enticing the girl to live-stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 50, of South Plainfield, N.J., is charged by Complaint with one count of sexual exploitation of a child. Grennier appeared today before U.S. Magistrate Judge Tonianne J. Bongiovanni and was detained.
According to the Complaint:
Special agents of the FBI executed a consent search of the New Jersey home of “Jane Doe,” a minor female, on Feb. 15, 2013. Jane Doe stated in an interview that day that for several years Grennier paid her for photographs and video of herself naked and partially clothed. Grennier had also paid Jane Doe and another minor female, “Mary Roe,” to engage in sexually explicit conduct in hotel rooms, which Grennier videotaped. Grennier paid Jane Doe to perform sexually explicit acts while Grennier watched via webcam from another computer. The last time Grennier enticed Jane Doe to do this was at approximately 10:30 p.m. on February 14, 2013, according to Jane Doe. This was confirmed by text-messages between Grennier and Jane Doe on February 14, 2013, at approximately that time. As payment for those acts, Grennier was going to purchase approximately $175 worth of merchandise for Jane Doe.
The charge of sexual exploitation of children carries a mandatory minimum penalty of
15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.U.S. Attorney Fishman credited the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the federal charges. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Bruce J. Kaplan, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-085
Grennier Complaint
Former South Plainfield, N.J., Police Captain Charged with Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain is charged with the sexual exploitation of a minor female after enticing the girl to live-stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 50, of South Plainfield, N.J., is charged by Complaint with one count of sexual exploitation of a child. Grennier appeared today before U.S. Magistrate Judge Tonianne J. Bongiovanni and was detained.
According to the Complaint:
Special agents of the FBI executed a consent search of the New Jersey home of “Jane Doe,” a minor female, on Feb. 15, 2013. Jane Doe stated in an interview that day that for several years Grennier paid her for photographs and video of herself naked and partially clothed. Grennier had also paid Jane Doe and another minor female, “Mary Roe,” to engage in sexually explicit conduct in hotel rooms, which Grennier videotaped. Grennier paid Jane Doe to perform sexually explicit acts while Grennier watched via webcam from another computer. The last time Grennier enticed Jane Doe to do this was at approximately 10:30 p.m. on February 14, 2013, according to Jane Doe. This was confirmed by text-messages between Grennier and Jane Doe on February 14, 2013, at approximately that time. As payment for those acts, Grennier was going to purchase approximately $175 worth of merchandise for Jane Doe.
The charge of sexual exploitation of children carries a mandatory minimum penalty of
15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.U.S. Attorney Fishman credited the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the federal charges. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Bruce J. Kaplan, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and
Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe
Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Grennier Complaint
Former South Plainfield, N.J., Police Captain Charged with Sexually Exploiting A MinorRead the Press Release
TRENTON, N.J. – A former South Plainfield, N.J., police captain is charged with the sexual exploitation of a minor female after enticing the girl to live-stream sexually explicit acts via the Internet, U.S. Attorney Paul J. Fishman announced.
Michael Grennier, 50, of South Plainfield, N.J., is charged by Complaint with one count of sexual exploitation of a child. Grennier appeared today before U.S. Magistrate Judge Tonianne J. Bongiovanni and was detained.
According to the Complaint:
Special agents of the FBI executed a consent search of the New Jersey home of “Jane Doe,” a minor female, on Feb. 15, 2013. Jane Doe stated in an interview that day that for several years Grennier paid her for photographs and video of herself naked and partially clothed. Grennier had also paid Jane Doe and another minor female, “Mary Roe,” to engage in sexually explicit conduct in hotel rooms, which Grennier videotaped. Grennier paid Jane Doe to perform sexually explicit acts while Grennier watched via webcam from another computer. The last time Grennier enticed Jane Doe to do this was at approximately 10:30 p.m. on February 14, 2013, according to Jane Doe. This was confirmed by text-messages between Grennier and Jane Doe on February 14, 2013, at approximately that time. As payment for those acts, Grennier was going to purchase approximately $175 worth of merchandise for Jane Doe.
The charge of sexual exploitation of children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the federal charges. Fishman also thanked the South Plainfield Borough Police Department, under the direction of Chief of Police James Parker, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Bruce J. Kaplan, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Grennier, Michael Complaint
Former Inmate Sentenced on Fraud ChargesRead the Press Release
DANVILLE, VIRGINIA -- A former inmate at Green Rock Correctional Center in Chatham, Va., was sentenced this morning in the United States District Court for the Western District of Virginia in Danville to fraud charges.
Stanley Paul Tatum, 59, of Chatham, Va., previously waived his right to be indicted and pled guilty to a one count Information charging him with mail fraud. This afternoon in District Court, Tatum was sentenced to 41 months of Federal incarceration.
“Mr. Tatum was able to defraud numerous people and businesses from the isolation of state prison,” United States Attorney Timothy J. Heaphy said today. “His long-running scheme has justly earned him to a lengthy stay in a more restrictive environment in federal prison.”
According to evidence presented at previous hearings by Assistant United States Attorney Daniel Bubar, Tatum was a inmate at Green Rock Correctional Center from at least July 15, 2008 through December 9, 2008. During this time period, Tatum engaged in a fraudulent scheme in which he portrayed himself to others via the telephone, mail and personal visits, to be a millionaire.
After portraying himself as a millionaire, Tatum convinced individuals to send him various amounts of money in the form of United States Postal Money Orders. He also convinced an auto dealer to release a new automobile to a friend. Tatum also convinced Geico to create eight insurance policies for several other vehicles.
In all, it is estimated that Tatum’s fraudulent scheme resulted in the loss of approximately $33,211.
The investigation of the case was conducted by Special Agent Craig O’Der, Jr., Office of the Inspector General for the Virginia Department of Corrections. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Former HISD Elementary Teacher Convicted of Possession and Distribution of Child PornographyRead the Press Release
HOUSTON – Juan Antonio Villarreal, 53, of Houston, has entered a plea of guilty to both distribution and possession of child pornography, United States Attorney Kenneth Magidson announced today.
The investigation began as a result of several downloads of child pornography over the Internet by a Beaumont police officer which were traced to a computer used by Villarreal.
On Aug. 31, 2012, Homeland Security Investigations (HSI) agents executed a federal search warrant at the residence of Villarreal in Houston, at which time several images and videos of child pornography were discovered on a thumb drive inserted into a USB port on a Dell Desktop computer located within the residence. One of the videos included a known minor child victim performing oral sex on an adult male.
Child pornography was also found on a Dell desktop computer and five additional thumb drives found in the residence. A forensic exam on the devices resulted in the discovery of a total of approximately 1425 images and 277 videos of child pornography.
Villarreal confirmed he was a third grade teacher at an HISD elementary school. He also admitted he had received, viewed and downloaded child pornography for approximately five years.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for May 13, 2013. At that time, Villarreal faces a sentence of at least five and up to 20 years imprisonment for the distribution conviction as well as a maximum 10 years imprisonment for possession. Both charges also carry as possible punishment a $250,000 fine. Upon completion of any prison term imposed, Villarreal also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
The charges against Villarreal were the result of an investigation conducted by HSI. He has been in custody since his arrest Aug. 31, 2012, where he will remain pending sentencing.
This case, prosecuted by Assistant United States Attorney Robert Stabe, 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 Executive Director of Chelsea Housing Authority Pleads Guilty to Falsely Reporting SalaryRead the Press Release
BOSTON - The former Executive Director of the Chelsea Housing Authority was convicted today of falsely reporting his salary in annual budgets required by the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development.
Michael E. McLaughlin, 67, of Dracut, pleaded guilty before U.S. District Judge Douglas P. Woodlock to four counts of falsifying a record in a federal agency matter with intent to impede and obstruct that matter. Sentencing is scheduled for May 14, 2013 at 2:00. The maximum sentence under the statute is 20 years in prison, followed by three years of supervised release and a fine of $250,000 on each count.
From 2008 through 2011, McLaughlin, who served since 2000 as the Executive Director of the Chelsea Housing Authority, falsified his salary figure in the annual fiscal year budgets of the Chelsea Housing Authority and submitted them electronically to the Massachusetts Department of Housing and Community Development.
In 2008, McLaughlin falsely stated that his budgeted annual salary was $151,945, when his actual salary was at least $242,908 under his existing contract. McLaughlin made the same kind of concealment of his increasing salary in the ensuing three years. Specifically, in FY 2009 McLaughlin falsely reported that his budgeted annual salary was $156,503, when his actual salary was at least $267,199 under his existing contract and his total compensation was at least $292,902, as reflected in his 2008 W-2. Then in FY 2010, McLaughlin falsely reported that his budgeted annual salary was $160,415, when his actual salary was at least $275,215 under his existing contract and his total compensation was at least $324,896. In FY 2011 McLaughlin falsely reported that his budgeted annual salary was $160,415, when his actual salary was at least $283,471 under his existing contract and his total compensation was at least $324,896.
United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The Massachusetts Inspector General’s Office and Massachusetts State Police also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of Ortiz’s Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney Edward Beagan from the Massachusetts Attorney General’s Office.
Former Employee of Deceased Friendswood Financial Advisor Convicted of Running Own Ponzi SchemeRead the Press Release
HOUSTON - Brian Anthony Bjork, 43, of Missouri City, has pleaded guilty in connection with an investment scam that defrauded nearly a dozen investors of more than $1 million, United States Attorney Kenneth Magidson announced today. While Bjork pleaded to just one count of wire fraud this afternoon before United States District Judge Gray Miller, he admitted all of his fraudulent conduct during his plea hearing.
Bjork was a registered investment advisor formerly employed at J. David Financial Group and later Select Asset Management (SAM), two businesses owned and operated by deceased Friendswood financial advisor David Salinas. Bjork also served as treasurer of Houston Athletics Foundation (HAF), a non-profit organization which contributes funds to the Athletic Department at the University of Houston.
In 2006, SAM became a registered investment advisor with the State of Texas and the Securities and Exchange Commission (SEC). In July 2010, the SEC began investigating SAM for certain disclosure irregularities in connection with its lending funds. In particular, the SEC was concerned that SAM was lending money to affiliated entities (namely, other businesses owned by Salinas) without disclosing that fact to investors. As the investigation of SAM proceeded, the SEC learned that Salinas, through J. David Financial, had for years been offering corporate bonds that Salinas was purportedly able to purchase in bulk at a discount. In pressing for further information on the Salinas bond offerings, the SEC became troubled that there was little to no evidence of the actual purchase of the bonds and that Bjork was unable to provide information concerning the entity purportedly serving as the custodian for the bonds.
As the SEC’s investigation came to head in July 2011, Salinas’s behavior became erratic and he stopped returning phone calls to bond investors and others who had learned that there was now a concern over whether or not Salinas’s bonds existed at all. Salinas ultimately took his own life by shooting himself at his home in Friendswood on July 17, 2011. A criminal investigation was initiated soon thereafter. On Aug. 1, 2011, United States District Judge Keith P. Ellison signed an order authorizing the SEC to take J. David Financial Group, SAM and other Salinas entities into receivership on the grounds that SAM’s lending funds failed to disclose certain self-dealing and that Salinas’s bond offerings never existed in the first place as he was simply running a Ponzi scheme.
The ensuing criminal investigation revealed that on Sept. 1, 2004, Bjork opened Bank of America account under the name “Brian A Bjork dba: J David Financial Group” for the purpose of defrauding a subset of the J. David Financial investors. Bjork was the sole signatory on this account. Preying largely upon current and former family members, as well as using his position of trust within HAF, Bjork began perpetrating a scheme whereby he would solicit and obtain money under the false pretense of intending to invest those funds in Salinas’s pawn shops or in Salinas’s corporate bond offerings, but instead simply converted the funds to his own use. The investigation of this unusual “scam within a scam” revealed that Bjork selected as his victims various family members or other individuals he knew personally and that were not likely to speak to Salinas about their investments. Bjork would also create fictitious “Consolidated Statements” to trick investors into believing that he had made certain investments when in fact he had not.
With respect to the funds Bjork fraudulently obtained from HAF, the investigation revealed Bjork used his position as treasurer and signatory on HAF’s bank account to simply write checks disguised as bond investments with J. David Financial. Bjork would sign the checks as HAF’s Treasurer, forge the signature of any other individuals required to sign checks on the HAF account and then then deposit the checks into his Bank of America account. He used the funds to support his lifestyle and pay prior investors. In order to deceive the firm auditing HAF’s financials, Bjork would generate fictitious duplicate Consolidated Statements and would then provide those bogus statements to the auditing firm to enable HAF to pass the audit. In total, Bjork stole approximately $550,000 of HAF’s funds. HAF was unfortunately also victimized in the larger Salinas bond scam by an even greater amount.
Judge Miller has permitted Bjork to remain on bond pending his sentencing, set for June 14, 2013, at 10:15 a.m.
The investigation leading to the charges in this case was conducted by the United States Secret Service and the FBI. Assistant United States Attorney Jason Varnado is prosecuting this case.
Former Chief Financial Officer Indicted for Wire FraudRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Andrew Thurman Melton, age 66, of Roland, Arkansas, made his initial appearance before United States Magistrate Judge J. Thomas Ray this morning on 12 counts of wire fraud. Melton pled not guilty. Melton is not detained.
Melton was indicted by a federal grand jury Wednesday, February 6, 2013. If convicted on these charges, each count carries a statutory penalty of no more than 20 years incarceration and/or a fine of $250,000.
According to the indictment, Melton was the Chief Financial Officer for ThermoEnergy Corporation. Melton’s wages were supposed to be garnished as a result of a Judgment against him personally. However, Melton allegedly caused checks to be issued from ThermoEnergy to pay the Judgment and expensed those payments on ThermoEnergy’s financials as if the payments were legitimate business expenses of the company. The indictment alleges that between, in or about August 2006 and April 2009, through this scheme, he obtained approximately $109,575.80.
The investigation was conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by AUSA Jana Harris.
An indictment contains only allegations and is not evidence of guilt. The defendant is presumed innocent until and unless proven guilty.
Former Chairman of Western Springs Bank Sentenced to Prison for Concealing Personal Interest in Loans from U.S. RegulatorsRead the Press Release
CHICAGO — The former chairman of a west suburban bank was sentenced today to a year and a day in federal prison for making false statements in regulatory documents regarding his undisclosed personal interest in loans that resulted in the bank losing more than $680,000. The defendant, JAMES A. REGAS, who was chairman of the board of directors of the former Western Springs National Bank & Trust, pleaded guilty last July, admitting that he falsified and concealed material facts that should have been fully disclosed to the bank’s directors and government regulators during 2008 and 2009. The bank’s two branches were closed by federal regulators in April 2011, and its assets were purchased by Heartland Bank and Trust Company.
Regas, 82, of Oak Brook, has paid $681,617 in restitution and he was fined $60,000 by U.S. District Judge Gary Feinerman, who cited Regas’ “sustained course of conduct” in imposing the sentence in Federal Court in Chicago. Regas was ordered to begin serving his sentence in 90 days.
“At a time when the public’s confidence in the banking system has plummeted, Regas concealed material information from the board of directors, placed his personal interests above those of the bank, and caused false statements to be made to regulators charged with ensuring that all national banks are operating in a safe and sound manner,” the government argued in urging a custodial sentence.
In pleading guilty, Regas admitted causing a bank employee to file a false quarterly Report of Condition and Income, also known as a “Call Report,” with the Federal Deposit Insurance Corp., and he signed the report knowing they contained false information regarding the delinquency status of certain loans.
Regas admitted that between 2004 and 2009 he referred business associates to Western Springs for loans, without disclosing to the bank that he had financial partnerships with those individuals and that he intended to benefit personally from the loans. Regas knowingly submitted false conflict-of-interest statements to the bank, in which he denied having any financial relationship with any of the bank’s borrowers.
Among the loans from which Regas benefitted, directly or indirectly, without the knowledge and approval of disinterested bank directors, were: an $803,000 loan to North Park Webster LLC in December 2004, which was used partially to finance the purchase of three properties in Evanston in which Regas and family members had financial interests; a $500,000 loan to one of Regas’ associates in November 2005, from which Regas received approximately half of the proceeds indirectly through a third-party; and a $750,000 loan to a real estate investor in September 2008 to finance the investor’s purchase of an apartment building in Evanston from Regas. That building served as collateral for the bank on another loan that Regas acquired and sold through a nominee company.
These loans enabled Regas to use bank funds for his own benefit without having to apply for loans himself, posting collateral, or signing any promises to repay the bank’s money, while evading federal restrictions on insider loans. Because the loans were not fully repaid, Western Springs suffered a loss of approximately $681,617, which Regas paid as restitution.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorneys Brian Havey and Andrianna Kastanek.
The prosecution falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov
Former CEO and Two Associates Plead Guilty to Conspiracy to Impede the Lawful Functions of the Internal Revenue ServiceRead the Press Release
WASHINGTON - Shelly S. Singhal, Loretta Fredy Bush, and Dennis L. Pelino, formerly of Xinhua Finance Limited (Xinhua Finance), a Chinese company trading publicly in Japan, each have pled guilty, in a one-count Information, to conspiracy to impede the lawful functions of the Internal Revenue Service.
Singhal, 45, of Newport Beach, Calif., pled guilty today before the Honorable Chief Judge Royce C. Lamberth in the U.S. District Court for the District of Columbia. Bush, 54, of San Francisco, pled guilty before Chief Judge Lamberth on Feb. 13, 2013. Pelino, 65, of Miami Beach, Fla., pled guilty before Chief Judge Lamberth on Feb. 15, 2013.
Singhal, Bush, and Pelino face maximum statutory terms of imprisonment of five years. Sentencing for each was scheduled for April 29, 2013.
The guilty pleas were announced by Mary B. McCord, Acting U.S. Attorney in this case, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
In connection with the guilty pleas and as set forth in detail in the executed Statements of Offense, the defendants acknowledged that Singhal was the owner and Chairman of SBI Advisors, LLC, a California limited liability company engaged in the business of providing investment advisory services as well as buying and selling securities. Bush and Pelino acknowledged that, from time to time, they participated in investment and borrowing opportunities developed and recommended by Singhal.
Beginning in or about April 2005, Entrée Capital, a limited liability company formed at Singhal’s direction, opened an account at the First Internet Bank of Indiana and transferred funds to Bush and Pelino. Bush and Pelino executed a series of promissory notes obligating them to repay the funds within a fixed term and to pay interest annually at a fixed rate, but the notes did not provide for the method of calculating interest (simple or compound).
The defendants acknowledged that, in or about August 2006, documentation was executed to transfer the ownership of Entrée Capital to a foreign national residing outside the United States. Employees of SBI Advisors continued to maintain Entrée Capital’s books and records. Between January 2006 and January 2009, Bush and Pelino made several interest payments at the rates prescribed in the promissory notes they had executed, but these payments were not made according to any fixed schedule.
Singhal, Bush and Pelino acknowledged that, in or about October 2008, the Entrée Capital account at the First Internet Bank of Indiana was closed by the management of the bank. Each of the defendants acknowledged that, by in or around February 2009, he or she had learned that the Entrée Capital account was closed. In addition, the defendants acknowledged that in 2009 and continuing into early 2010, they became aware that the foreign national to whom ownership of Entrée Capital had been assigned had failed to respond to inquiries or otherwise acknowledge his ownership of Entrée Capital.
The defendants acknowledged that from April 15, 2010 through May 10, 2011, they conspired to impede the lawful functions of the Internal Revenue Service in the ascertainment, assessment, and determination of whether the principal balances owed to Entrée Capital by Bush and Pelino had become forgiven debt and represented income to Bush and Pelino.
As of April 15, 2010, the principal balances owed by Bush and Pelino to Entrée Capital were approximately $2,153,663 and $1,380,633, respectively. The defendants acknowledged failing to notify and otherwise concealing from the Internal Revenue Service that the nominal owner of Entrée Capital had effectively abandoned its assets, including the principal balances payable to Entrée Capital by Bush and Pelino, to delay the payment of any income tax due and owing on those unpaid amounts as forgiven debt. They acknowledged discussing among themselves and with others the fact that the owner of Entrée Capital was a foreign national and that any information in the foreign national’s possession was possibly beyond the authority of the Internal Revenue Service to obtain. Singhal did not direct his employees at SBI Advisors, who maintained Entrée Capital’s books and records, to issue Forms 1099-C (Cancellation of Debt) to Bush and Pelino, which forms would have notified the Internal Revenue Service that Entrée Capital was treating the principal balances payable to Entrée Capital by Bush and Pelino as forgiven debt. Bush and Pelino acknowledged filing Forms 1040 (U.S. Individual Tax Return) for the tax year 2009, which returns failed to declare any portion of the $2,153,663 and $1,380,633 owed to Entrée Capital as income to Bush and Pelino, respectively.
As part of the plea agreements, the government agreed to move at sentencing to dismiss with prejudice the indictments previously returned against the defendants.
Three others earlier pled guilty to charges in the investigation.
In announcing the guilty pleas, Acting U.S. Attorney McCord, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly praised the investigative efforts of the Special Agents of the FBI’s Washington Field Office and the IRS-Criminal Investigation Division. They also recognized the work of U.S. Attorney’s Office Forensic Accountant Crystal Boodoo, Paralegal Specialist Tasha Harris, and Legal Assistants Lenisse Edloe and Krishawn Graham. Finally, they commended the efforts of Trial Attorney Kenneth C. Vert, U.S. Department of Justice, Tax Division, Northern Criminal Enforcement Section, and Assistant U.S. Attorneys Jonathan Hooks and Michael K. Atkinson, who prosecuted the case.
13-060Former Benton Firefighter Indicted in Federal Child Pornography CaseRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that Timothy Ryan Bodkin, age 39, a former Lieutenant with the Benton Fire Department, made his initial appearance today before United States Magistrate J. Thomas Ray on charges of receipt and possession of child pornography. Bodkin pled not guilty. He is not detained.
Bodkin was indicted February 6, 2012, after an investigation into the file sharing of child pornography. On May 24, 2012, an Arkansas State Police Special Agent isolated an IP address used by Bodkin which had downloaded pornographic images. With assistance from the Saline County Sheriff’s Office, it was determined that the computer Bodkin allegedly used to acquire and view child pornography was located in his locker at a Benton Fire Department station.
After securing a search warrant, investigators found a laptop computer in Bodkin’s locker at the fire station. Investigators obtained a subsequent search warrant to review the materials on the computer. The forensic report conducted by agents with the Arkansas State Police, revealed over 1,000 images of child pornography were located on Bodkin’s computer.
This case was investigated by the Arkansas State Police and the Saline County Sheriff’s Office. Assistant United States Attorney Chris Givens is prosecuting this case for the United States.
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.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Federal Jury Finds Houston Man Guilty in Firearms ConspiracyRead the Press Release
HOUSTON - Tyrone Reid, 22, of Houston, has been found guilty of a conspiracy involving numerous co-defendants who lied to federal firearms dealers in the purchase of firearms, United States Attorney Kenneth Magidson announced today. The Houston federal jury returned its verdicts this afternoon after three days of trial and approximately two hours of deliberation.
The evidence presented at trial demonstrated that Reid would induce others to claim that they were the actual buyer of the firearms, even though Reid supplied the money and immediately took possession from the buyer. Testimony revealed that none of the purported buyers kept any of the firearms they purchased, many which were later found in crime scenes, both in the United States and in the Virgin Islands.
Western Union receipts sent from the Virgin Islands to the United States reflected more than $60,000 in payments received by Reid or at his direction. Three of the firearms were recovered by agents in a search at the home of one of Reid’s associates, who was also linked to some of the money sent to the Virgin Islands to Reid here in Houston. Evidence demonstrated that a total of seven firearms were seized in the Virgin Islands, six of which were seized from crime scenes, including a homicide. Two other firearms associated with this conspiracy were found in New Jersey crime scenes, including an aggravated armed robbery.
Testimony revealed that more than 30 firearms were identified with this lying and buying conspiracy.
Reid’s grandmother, who had traveled here to testify, told the jury that Reid had sent guns to her in the Virgin Islands. Reid took the stand on his own behalf and then called his grandmother a liar.
U.S. District Judge David Hittner, who presided over trial, has set sentencing for May 14, 2013, at which time Reid faces up to 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations. Assistant United States Attorneys Megan J. Paulson and Joe Magliolo prosecuted the case.
Export Man Admits Threatening A Federal Agent and Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa - A resident of Westmoreland County pleaded guilty in federal court to charges of threatening to murder, intimidate, interfere or retaliate against a Federal Official and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Todd Markley, 49, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about May 31, 2012, Markley threatened to assault and murder a United States Postal Inspector of the United States Postal Inspection Service (USPIS), with intent to impede, intimidate, interfere with and retaliate against the Postal Inspector while she was engaged in her official duties. In addition, on or about April 12, 2012, Markley possessed visual depictions, namely, images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for June 18, 2013, at 10:00 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigations and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Markley.
Dalton Gardens Man Sentenced for Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Cody James Freer, 26, of Dalton Gardens, was sentenced today to 30 months in prison for unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Freer to serve three years of supervised release following his prison term. He pleaded guilty to the charge on October 17, 2012.
According to court statements, in June 2012, an individual contacted Coeur d’Alene Police to verify the Glock handgun he was planning to purchase from a private seller was not stolen. Police advised the caller the gun was stolen and determined that the seller – Freer – was prohibited from possessing firearms due to a prior felony conviction. The individual arranged to meet Freer at a Coeur d’Alene parking lot to complete the transaction. Police arrested Freer at the parking lot after determining that he possessed the Glock handgun. Freer has been in custody since his arrest in June 2012.
The case was investigated by the Coeur d’Alene Police Department with the assistance of the North Idaho Violent Crimes Task Force (NIVCTF). The NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and the Coeur d'Alene Tribal Police Department. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Clark Fork Man Sentenced for Stealing FirearmsRead the Press Release
COEUR D’ALENE – Christopher Robin Garlin, 19, of Clark Fork, Idaho, was sentenced today to 11 months in prison for theft of firearms from a licensed dealer’s inventory, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Garlin to serve three years of supervised release following his prison term and pay $8,116.25 in restitution.
Garlin pleaded guilty on October 17, 2012, to an information charging him and co-defendant Jennifer Dunnagan, 23, of Sandpoint, Idaho, with burglarizing Pawn Now, a business located in Ponderay, Idaho, on December 27, 2011. The two admitted stealing 33 firearms. They have been incarcerated since their arrest on federal charges.
Jennifer Dunnagan was sentenced on October 31, 2012, to 24 months in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Ponderay Police Department, and the Bonner County Sheriff’s Office.
The case was prosecuted as a part of Idaho’s Project Safe Neighborhood Program, which seeks to reduce gun violence in Idaho.
Christopher Anthony Quinn Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 19, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, CHRISTOPHER ANTHONY QUINN, a 49-year-old resident of Troy, pled guilty to distribution of child pornography. Sentencing has been set for May 24, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
In March 2012, the Missoula Police Department, a member of the Montana Internet Crimes Against Children Task Force, investigated QUINN for trading child pornography via the Internet.
During the investigation, the detective determined that on February 6, 2012, QUINN utilized his email address and laptop to e-mail an image to a yahoo e-mail account. The image depicts child pornography in that it depicts two minor girls engaged in sexually explicit conduct. The image displays the lascivious exhibition of one of the girls' pubic area or genitalia. That e-mail text was: "I have some different sets. Here are a few samples. Just let me know what you like."
A search warrant for QUINN's residence in Lincoln County was obtained and numerous items were seized.
QUINN faces possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 20 years, a $250,000 fine, and lifetime supervision.
The investigation was a cooperative effort between the Missoula Police Department, the Missoula County Sheriff's Office, the Bozeman Police Department, the U.S. Department of Homeland Security - Homeland Security Investigations, and the Internet Crimes Against Children (ICAC) Task Force.
Chicago Man Sentenced in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Chicago man has been sentenced to 30 months in federal prison for robbing an Overland Park bank, U.S. Attorney Barry Grissom said today.
Xzavier Stewart, 23, Chicago, Ill., pleaded guilty to one count of bank robbery. In his plea, he admitted that on Aug. 20, 2012, he robbed the Bank of the West at 9400 Antioch in Overland Park, Kan. He entered the bank, told a teller to give him money and said: "You have 30 seconds." The clerk recognized him as the same man who had robbed her at the same bank on July 28, 2012.
Shortly after the robbery, Stewart was driving a maroon Malibu westbound on 95th Street near Switzer when police tried to pull him over. He refused to stop and kept driving slowly. He eventually stopped on the off ramp of northbound Highway 69 at 87th Street.
Grissom commended the Overland Park Police Department, the FBI and Assistant U.S. Attorney Sheri McCracken for their work on the case.Brokerage Executive Pleads Guilty in Illegal Hotel Flipping SchemeRead the Press Release
ALEXANDRIA, Va. – Jonathan Propp, 48, of McLean, Va., pleaded guilty today to conspiring with others to steal more than $20 million from Host Hotels and Resorts L.P. (Host), one of the nation’s largest hotel owners, by executing a series of illegal sales of hotels.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by United States District Judge Liam O’Grady.
According to court records, Propp was the chief operating officer of Molinaro-Koger, an international hotel real estate brokerage firm headquartered in Tysons Corner, Va. From 2009 through 2012, Propp conspired with others to illegally sell hotels owned by Host to straw buyers, who would then immediately sell the properties to a buyer at a higher price, with the conspirators pocketing the difference. Propp admitted that he posed as a straw buyer, forged signatures, and obtained a driver’s license for one of the straw buyers who had died before the fraudulent sale could be completed.
Todd Lawyer, 53, of Fairfax, Va., also pleaded guilty today for his role as a straw buyer in the conspiracy. The conspirators earned more than $20 million by illegally flipping the hotels.
In addition, Propp admitted that he participated in a scheme to steal and launder an additional $15 million from deposits provided by prospective buyers of hotels, which they purported to hold in escrow but instead used to pay for personal and business expenses. Propp used the money to pay Molinaro-Koger’s expenses and employee salaries, despite knowing the escrowed funds were obtained fraudulently.
Propp and Lawyer pled guilty to conspiring to commit wire fraud and face a maximum penalty of 20 years in prison when they are sentenced on May 31, 2013, and May 24, 2013, respectively.
This ongoing investigation is being conducted by the FBI’s Washington Field Office. Assistant United States Attorneys Chad Golder of the Office’s Financial Fraud and Public Corruption Unit and Michael Rich of the Office’s Major Crime’s Unit are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Boise Man Pleads Not Guilty to Child Exploitation ChargesRead the Press Release
BOISE – Jason Lloyd Schaber, 40, of Boise, Idaho, pleaded not guilty today to charges of child exploitation, U.S. Attorney Wendy J. Olson announced. A trial is set for April 23, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
A federal grand jury last week returned a 23 count indictment alleging that Schaber posted ads on Craigslist offering a three-year-old minor for sex, and produced, distributed and possessed child pornography between 2010 and 2012. Schaber was arrested on May 31, 2012, and held on state charges. Ada County dismissed the state charges on Thursday in favor of the federal indictment.
The charge of use of facility in interstate commerce in aid of racketeering enterprise sex trafficking of a child – introducing a person under 18 years into prostitution, as charged in count one of the indictment, is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years supervised release. The charge of sexual exploitation of children–production of sexually explicit images of a minor, as charged in counts two through six, is punishable by not less than 15 years and not more than 30 years in prison; distribution of sexually explicit images of minors, as charged in counts seven through 22, is punishable by not less than five years and not more than 20 years in prison; and possession of sexually explicit images of minors, as charged in count 23, is punishable by up to ten years in prison. Each count is punishable by at least five years to lifetime supervised release and a maximum fine of $250,000.
The case is being investigated by the Boise Police Department, the Ada County Sheriff's Office, and members of the Internet Crimes Against Children Task Force, with technical assistance provided by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the High Technology Investigative Unit of the U.S. Department of Justice, Child Exploitation and Obscenity Section.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.” For more information about registered sex offenders in Idaho, visit www.isp.idaho.gov/sor_id/.
Black History Month ProgramRead the Press Release
BATON ROUGE, LA - Chief Judge Brian A. Jackson and Judge James J. Brady of the United States District Court for the Middle District of Louisiana and the agencies of the federal courthouse will host the Eighteenth Annual Federal Courthouse African American History Month Program at 11:00 a.m. on February 22, 2013, in Courtroom 1, on the third floor of the federal courthouse.
The featured guest speaker will be civil rights pioneer Ruby Bridges. Musical entertainment will be provided by soloist Daisha Badon.
Members of the public and the press are invited to attend. For further information, please contact Michael Jefferson, Assistant United States Attorney, at (225) 389-0443.Billie Joe Bullshields Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 19, 2013, before U.S. District Judge Sam E. Haddon, BILLIE JOE BULLSHIELDS, a 29-year-old resident of Browning, pled guilty to distribution of methamphetamine. Sentencing has been set for June 17, 2013.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
Beginning in November 2010, Louis Romero, Henry Lopez, and X.X., facilitated the distribution of methamphetamine to Browning. Z.Z. and a confidential informant (CI) assisted Romero, Lopez, and X.X., by transporting the methamphetamine to Browning. The CI made his first trip to Browning in approximately January 2011, and continued to make trips to Browning for several months to sell methamphetamine. Z.Z. and his mother normally picked the CI up at the train station. Z.Z.'s mother assisted the CI in setting up his narcotics shop in her house. On the CI's first trip to Browning, the CI, Z.Z., and Z.Z.'s mother sold approximately a half pound of methamphetamine from Z.Z.'s mother's house. On another trip, a quarter pound of methamphetamine was sold.
Due to the success of selling methamphetamine in Browning, Z.Z. and the CI were also recruited to sell methamphetamine to numerous people in Great Falls. The CI rewarded Z.Z.'s mother's help in selling methamphetamine by buying her a new Ford Explorer, as well as providing her with groceries and living expenses. During this time, BULLSHIELDS also became involved in purchasing methamphetamine from the CI. BULLSHIELDS resold the methamphetamine she purchased from the CI for profit.
The CI met Deanna Wells during the CI's third trip to Browning. Wells accompanied the CI to Great Falls to sell more methamphetamine. They received a large amount of cash during this trip. The CI and Wells regularly deposited cash received from drug deals for cashier's checks, and mailed the checks back to Romero, Lopez, and X.X.
During April 2011, the CI, Z.Z., BULLSHIELDS, and Wells purchased and distributed approximately one pound of methamphetamine throughout Browning and Great Falls. At one point, the CI and Wells drove to Great Falls and rented a motel room where they sold methamphetamine. Shortly thereafter, at the beginning of May, the CI possessed almost two pounds of methamphetamine which the CI began to sell out of Z.Z.'s mother's house. Z.Z. purchased some of this methamphetamine. Z.Z. and BULLSHIELDS regularly purchased the methamphetamine in larger quantities to break down into smaller quantities to re-sell around town. The CI, Wells, BULLSHIELDS, and Z.Z. finished business in Browning and headed to Great Falls with the remaining methamphetamine. BULLSHIELDS took a backpack of methamphetamine into a motel, while the CI and Z.Z. remained outside.
Z.Z. and the CI were ultimately arrested in the parking lot of the motel. Police stopped and found Z.Z. attempting to hide methamphetamine under a nearby car. Police then seized over 50 grams of pure (actual) methamphetamine. After Z.Z. and the CI were arrested, Wells and BULLSHIELDS returned to the hotel room where they retrieved the additional hidden methamphetamine.
From November 2010 until May 2011, BULLSHIELDS distributed 50 or more grams of a substance containing a detectable amount of methamphetamine.
BULLSHIELDS faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release.
The investigation was conducted by the Montana Regional Violent Crimes Task Force.
Baltimore Man Exiled to 15 Years in Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Donte Wise, age 30, of Baltimore, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine, and possession of a firearm in furtherance of a crime of violence, in connection with the planned robbery of a drug dealer.
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 Commissioner Anthony W. Batts of the Baltimore Police Department.
According to Wise=s guilty plea, Wise, Joseph Brown and another co-conspirator, met with a confidential source of information (CS) and with an ATF undercover officer posing as a drug courier to plan the robbery of a drug dealer. Wise and his co-conspirators agreed to commit the armed robbery in exchange for half of the stolen cocaine, expected to be as much as seven kilograms, which they would then distribute. On August 15, 2012, the CS picked up Wise and his co-conspirators and drove to a location in Baltimore to meet the undercover officer, who was to provide a minivan for the conspirators to use to commit the robbery. After arriving at the meet location, ATF agents approached to arrest the conspirators. All three fled, discarding their weapons as they ran, but were caught and arrested. Wise and Brown each threw away a loaded 9mm handgun, which were recovered, along with the .45 caliber handgun thrown on a roof by the third conspirator. A search also recovered black rubber gloves and a black balaclava from Wise and black rubber gloves and a black ski mask from Brown.
Joseph McKinsey Brown, age 29, of Baltimore, previously pleaded guilty and is scheduled to be sentenced on March 27, 2013.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted the case.
Australian National Sentenced to Prison, Deportation for Embezzling FundsRead the Press Release
PITTSBURGH, Pa. - An Australian National living in Pittsburgh has been sentenced in federal court to 21 months incarceration, plus three years supervised release and deportation following service of his sentence on his conviction of wire and mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Kenneth H. Laing, 56.
According to the information presented to the court, Laing was hired as the CEO of Pittsburgh based Ortho-Tag Inc., in 2011, and soon thereafter embezzled over $240,000 from the company's operating account, which Laing used for personal expenses, and to financially support another business which Laing controlled.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and United States Postal Inspection Service conducted the investigation that led to the conviction of Laing.
Armed Career Criminal Sentenced to 15 Years ImprisonmentRead the Press Release
DAVENPORT, IA – On February 15, 2013, T. Wayne Allen, Sr., of Davenport, IA, was sentenced to 180 months imprisonment, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Judge James E. Gritzner also sentenced Allen to four years supervised release following imprisonment and ordered him to pay a $100 special assessment to the crime victim fund.
On August 27, 2011, after Allen made threats to shoot certain people during an argument inside the Davenport, Iowa, Northpark Mall, the Davenport police officers stopped and searched Allen, and found a loaded semi-automatic pistol in his pocket. Subsequent investigation revealed that Allen had a least four convictions for armed robbery in Nevada, Iowa, and one armed robbery conviction in Illinois. Allen denied the convictions, but at sentencing the government proved Allen’s identity by a combination of court records, photographs, and fingerprints. Accordingly, Allen was sentenced to a mandatory term of 15 years imprisonment as an Armed Career Criminal.
This case was investigated by the Davenport, Iowa, Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Addison, Texas, Man Sentenced to 12 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — Guy Martin Johnson, 56, of Addison, Texas, was sentenced today by U.S. District Judge Sam A. Lindsay to 12 years in federal prison and a lifetime of supervised release, following his guilty plea in November 2012 to one count of transportation of child pornography. Johnson has been in federal custody since he entered his guilty plea. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in late January 2012 when law enforcement officials in Florida were involved in an undercover investigation targeting individuals who prey on children on the internet using popular social media sites. An officer, acting in an undercover capacity, entered a chat room, posing as a mother who had a son interested in sex with an adult male. That same day a man, later identified as Johnson, contacted the “mother” and over the course of several days, chatted with the “mother” and expressed his desire to have sex with her 14-year-old son
A few days later, Johnson talked to the “mother” and asked her if she would like him to send her some videos and images of child pornography, and she agreed. At that time, Johnson sent the “mother,” over the internet, 21 images depicting the sexual exploitation of minors.
The undercover officer, still posing as the “mother,” continued the chats with Johnson and discussed Johnson traveling to Florida to meet her son to have sex with him. However, Johnson never did travel to Florida.
In May 2012, members of the Dallas Police Department’s Internet Crimes Against Children (ICAC) task force executed a search warrant at Johnson’s home; Johnson admitted that he chatted over the internet in a chat room to someone in Florida, but that it was all fantasy. An analysis of the computer equipment seized during the search revealed 149 images and two videos of child pornography. Johnson admitted that he distributed images to the “mother” that included bondage and other sadistic acts involving minors.
The 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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Dallas Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks prosecuted.
18 February 2013
Baltimore Immigration Judge Participates in Naturalization CeremonyRead the Press Release
BALTIMORE --Immigration Judge John F. Gossart, Jr. from the Executive Office for Immigration Review, Baltimore Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 75 candidates during a naturalization ceremony at the George H. Fallon Federal Building in Baltimore, Md., on Feb. 15, 2013. The Baltimore District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General William French Smith appointed Judge Gossart in October 1982. Judge Gossart received a bachelor of science degree in 1967 from the University of Maryland and a juris doctorate in 1974 from the University of Baltimore School of Law. From 1975 through 1982, he served in various positions at the former Immigration and Naturalization Service, including general attorney, trial attorney, and deputy assistant commissioner for naturalization. Since 1997, Judge Gossart has served as an adjunct professor of immigration law at the University of Baltimore School of Law; has been a faculty member at the National Judicial College; and has guest lectured at numerous law schools and for the Maryland Institute for Continuing Professional Education of Lawyers. From 1967 to 1969, he served in the U.S. Army. Judge Gossart is a member of the Maryland State and District of Columbia Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration Review
15 February 2013
Yeadon Man Charged in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Eric Ponder, 43, of Yeadon, Pennsylvania, was charged today by Information with participating in a mortgage fraud conspiracy involving more than 100 Philadelphia properties and more than $20 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Ponder is charged with conspiracy to commit loan and wire fraud, loan fraud, and wire fraud. He allegedly received approximately $1 million through his participation in this mortgage fraud scheme.
The information alleges a massive mortgage fraud conspiracy that operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia. Ponder, who held himself out as a real estate developer, is alleged to have helped cause the submission of numerous fraudulent loan applications that resulted in mortgages being unwittingly issued by various banks by, among other things, knowingly making false statements on loan applications in his own name and helping secure mortgages in the names of others by recruiting “straw buyers” whose identity and fraudulent information was used to obtain the loans. Ponder is also alleged to have submitted false invoices for construction work never performed on the properties in order to justify payments to him from the settlement proceeds of loans in the names of the straw buyers. According to the information, co-conspirator Willie G. Manley, charged elsewhere, was an accountant who created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns, which were submitted to lenders. The conspiracy also included grossly inflated appraisals, false title insurance policies, false receipts for home repairs that were never performed, and straw buyers who knowingly allowed their names and identities to be used to purchase the properties and defraud the banks.
The information alleges that a Philadelphia-based property settlement company, “KREW Settlement Services,” was at the center of the conspiracy. Most of the mortgages were unpaid and most of the properties fell into foreclosure.
If convicted, Ponder the defendant faces a maximum possible sentence 55 years in prison, five years of supervised release, a fine of $1.5 million or twice the gross gain resulting from the offense, and a $300 special assessment.The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Wichita Man Sentenced to 10 Years for Attempted Sex Trafficking of MinorsRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to 10 years in federal prison for attempting to recruit and entice teenage girls to work as prostitutes, U.S. Attorney Barry Grissom said today.
In December, a jury in U.S. District Court in Wichita found Brandon W. Dennis, 26, Wichita, guilty on two counts of attempting to recruit teenagers to perform commercial sex acts.
In the first count the victim was a 17-year-old Wichita girl identified in court records as “Jane Doe.” In the other count the victim was identified as “Rissa,” a name used by a detective with the Wichita Police Deparatment who was working undercover.
During trial, prosecutors presented evidence that the 17-year-old victim met Dennis in the summer of 2011 at a party. On Oct. 23 and Oct. 24, 2011, she received several messages on Facebook from Dennis. He told her she could make up to $800 a day working as a prostitute.
One message from Dennis read: “become a hoe n get paid n get rich.”
When she declined his offer, he sent her a message saying: “u jus nothing but a dog that needs the rite trainin n life.”
On Oct. 24, 2011, a police detective accessed the victim’s Facebook account and found a phone number for Dennis. Posing as a 15-year-old named “Rissa,” the detective text messaged Dennis. Via text and phone conversations, Dennis offered “Rissa” the opportunity to work as a prostitute. In one message he said: “we can make this happn n get this money nation wide girl.”
Dennis arranged to meet “Rissa” at the Drury Inn, 400 W. Douglas in Wichita. He was arrested when he arrived there.
Grissom commended the Wichita/Sedgwick County Exploited and Missing Child Unit - Internet Crimes Against Children Task Force and Assistant U.S. Attorney Jason Hart for their work on the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, Indiana -- The United States Attorney’s Office announced today that:
JURY VERDICT:
Omar Duran Lagunes, 35, Luis Omar Montes Merino, 34, Yalitz Exclusa Borrero, 31, Evelyn Riviera Borrero, 44, all of Indianapolis, Indiana, and Margarito Fuentes Reyes, 51, of Goshen, Indiana, were found guilty at trial on all counts of an Indictment charging them with immigration fraud and conspiracy to commit mail fraud.The indictment, returned in June 2012, charged that the defendants presented false information, forged documents, and made false representations to the Indiana Bureau of Motor Vehicles and the Indiana Secretary of State, including making false representations regarding the identity of the actual owners of motor vehicles, to obtain motor vehicle registrations, license plates, and titles.By committing these and other misdeeds, the defendants concealed, harbored, and shielded from detection aliens who are in the United States in violation of immigration laws and encouraged aliens to enter and remain in the United States in violation of immigration laws.The conspirators operated at locations in Indianapolis, Goshen and Elkhart, Indiana.
"These individuals abused legitimate government services and circumvented this nation’s immigration laws – all in the name of profit,” said Gary Hartwig, special agent in charge of Homeland Security Investigations in Chicago. “Identity fraud affects all of us and has far-reaching implications. Today's verdict demonstrates ICE's resolve to work with our law enforcement partners to stop this type of criminal activity."
These charges were filed as the result of an investigation by ICE - Homeland Security Investigations and the United States Postal Inspection Service.Others assisting in the investigation include the Indianapolis Metropolitan Police Department, the Elkhart Police Department, the Indiana State Police and investigators with the Indiana Bureau of Motor Vehicles and the Indiana Secretary of State.Assistant United States Attorney’s for the Southern District of Indiana were also involved in the investigation and assisted.This case was prosecuted by Assistant United States Attorney Kenneth Hays.
PLEAS:
Scott Reahard, 46, of Wabash, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 5/13/13.These charges were filed as a result of an investigation by United States Marshal’s Service and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Gigi Riley, 32, of South Bend, Indiana, pled guilty to in Information charging her with the felony offenses of conspiracy to defraud the US Department of Treasury and filing false tax returns.These charges were filed as a result of an investigation by Internal Revenue Service and the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Robert Troup, 54, of Mishawaka, Indiana, was sentenced by District Judge Jon DeGuilio to 180 months imprisonment and 20 years of supervised release after pleading guilty to the felony offense of enticing a minor to engage in sexually explicit conduct to produce child pornography.According to documents filed in this case, Troup admitted that in December 2010 he worked as a custodian at Penn High School, which is located in Mishawaka Indiana. His area of responsibility included the swimming pool and the boys and girls swimming locker rooms and showers. Troup placed a small video camera in a locker in the boy’s locker room at the high school. He positioned the camera in such a location that it would capture the midsection of any boys who happened to stand in front of the locker, or pass close by the locker. He also positioned the camera so that it was aimed at the showers where boys would be showering before or after using the swimming pool.He intended to obtain nude photographs of the teenage boys who were using the locker room and understood that many of the boys were under the age of 18. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the Elkhart County Sheriff’s Department.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Michael Hodowaniac, 22, of South Bend, Indiana, was sentenced by District Judge Jon DeGuilio to 60 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of attempted arson of a vehicle.According to documents filed in this case, Hodowaniac admitted that he agreed with his father John Hodowaniac and another person to set fire to an automobile in exchange for a cash payment from this other person. He took substantial steps toward the execution of the plan to set fire to and maliciously destroy the automobile by placing gas in a plastic bottle, traveling to the area where the automobile was parked and accepting cash for the arson. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Jazneen Williams, 22, of Gary, Indiana, was charged in an Indictment returned on 10/17/12 with making materially false statements in connection with the purchase of a firearm and making false statements about information required to be kept in the records of a Federally Licensed Firearms Dealer.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Dean Lanter.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
DISPOSITIONS:
Lawrence Zitt, 43, of Michigan City, Indiana, was sentenced by Senior District Judge Rudy Lozano to 72 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.This case was the result of an investigation by the Drug Enforcement Administration, the Porter County Drug Task Force, the Michigan City Police Department, the Indiana State Police and the LaPorte Metro Operations Drug Task Force.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Guillermo Briseno, 27, of East Chicago, Indiana, a defendant in the case US v Briseno et al., was sentenced by Chief Judge Philip Simon to 87 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of conspiracy to participate in racketeering activity and conspiracy to distribute marijuana.This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Alejandro Balboa Lara, 21, of Hammond, Indiana, a defendant in the case US v Briseno et al., was sentenced by Chief Judge Philip Simon to 22 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to participate in racketeering activity.This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Fort Wayne, Indiana- The United States Attorney’s Office announced the following activity:
PLEA:
Joseph Klinker, 38, of Decatur, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of bank fraud.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Travis Black, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 50 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of maintaining a residence for the purpose of manufacturing and distributing marijuana.This case was the result of an investigation by the Federal Bureau of Investigation and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Washington County Felon Sentenced to 15 Years in Prison for Possessing 14 FirearmsRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., has been sentenced in federal court to 15 years incarceration on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Justin Michael King, 34.
According to information presented to the court, King had prior convictions at the time he possessed 14 stolen firearms that included rifles, shotguns and handguns.
Assistant United States Attorney Jonathan B. Ortiz 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 and the Pennsylvania State Police for the investigation leading to the successful prosecution of Justin Michael King.
U.S. Trustee Program’s Settlement with Law Firm Includes Monetary Remedies, Independent ReviewRead the Press Release
WASHINGTON – The U.S. Trustee Program has filed in bankruptcy court a national settlement with law firm Kaye Scholer LLP in the bankruptcy case of GSC Group, Inc. If approved by the Bankruptcy Court for the Southern District of New York, the proposed settlement will resolve the U.S. Trustee’s allegations that Kaye Scholer failed to make accurate and complete disclosures in the case. In particular, the U.S. Trustee alleged that Kaye Scholer filed inaccurate documents about its retention as counsel to the chapter 11 debtor.
Under the proposed settlement, Kaye Scholer will pay $1.5 million; adopt policies and procedures approved by an independent expert to ensure the accuracy and completeness of disclosure, including checks for conflicts of interest and assurance that attorneys review documents filed in their name; establish a special compliance review committee to certify under penalty of perjury the law firm’s continuing compliance; and provide training to its attorneys and other staff to ensure the accuracy and completeness of documents it files in bankruptcy court.
If approved by the bankruptcy court, the settlement will mark the first time the U.S. Trustee Program has obtained relief that includes an independent expert’s review of a law firm’s practices.
“Leading law firms are not above the bankruptcy rules of disclosure and other professional obligations, and this agreement shows that violations will be addressed transparently and appropriately,” stated Clifford J. White III, Director of the Executive Office for U.S. Trustees. “I am pleased that Kaye Scholer has agreed to monetary remedies and independent review of its practices, so that the practices of the law firm, from senior partners on down, will be improved in the future.”
Director White noted that “the relief provided in this settlement, in conjunction with relief agreed to by financial adviser Capstone Advisory Group LLC in this same case, should cause all professionals in the bankruptcy system to review their own internal practices. Professionals in large bankruptcy cases are paid extraordinary sums of money, and failing to follow the rules pertaining to disclosure of possible conflicts of interest and related matters is not acceptable.”
Director White also commended U.S. Trustee Tracy Hope Davis for bringing the original action in the bankruptcy court in Manhattan, as well as attorneys who worked on the case, including Trial Attorney Andrea Schwartz of the U.S. Trustee’s Office in Manhattan and Trial Attorney Carole Ryczek of the U.S. Trustee’s Office in Madison, Wis.
The case is In re GSC Group Inc., U.S. Bankruptcy Court, Southern District of New York, No. 10-14653.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411U.S. Postal Service Official Pleads Guilty to Accepting BribesRead the Press Release
ALEXANDRIA, Va. – Gene Quarles, 47, of Spotsylvania, Va., pleaded guilty late yesterday to receiving thousands of dollars in bribes to use his position as a purchasing specialist for the United States Postal Service to obtain and facilitate contracts for a Maryland-based information technology firm.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Acting Special Agent in Charge Barry Grzechowiak of the U.S. Postal Service, Office of Inspector General, made the announcement after the plea was accepted by United States District Judge T. S. Ellis III.
Quarles pled guilty on Feb. 14, 2013, to bribery of a public official and faces a maximum penalty of 15 years in prison when he is sentenced on May 17, 2013.
According to a statement of facts filed with his plea agreement, Quarles worked for the United States Postal Service (USPS) since 2007. During the time in which he was accepting bribes, he served as a purchasing specialist, where he oversaw, evaluated, and managed USPS contracts relating to business mail entry and payment technologies.
In April 2010, officials with AH Computer Consulting, Inc. (AHCC), an international information technology consulting firm based in Rockville, Md., approached Quarles and offered to pay him bribes in exchange for various impermissible contracting preferences and advantages. Quarles accepted this offer, and from April 2010 through June 2012, AHCC employees paid Quarles numerous cash payments — totaling thousands of dollars — in exchange for Quarles’ providing advantages to AHCC during the USPS contracting process.
For example, Quarles provided AHCC with confidential USPS contracting information, including other vendors’ proposals and labor rates, so that AHCC could tailor its bids to what other potential contractors were bidding. Quarles also forwarded various private call-in numbers for conference calls between USPS officials, where official business was discussed, so that AHCC employees could anonymously listen in and get a leg-up on their competition. Quarles also allowed AHCC employees to complete surveys, evaluations, and other review materials in Quarles’ own name so that AHCC could obtain additional government contracts.
Quarles admitted that he used the bribe payments to pay for bills, rent, and other living expenses.
This case was investigated by the United States Postal Service, Office of Inspector General. Assistant United States Attorney Chad Golder from the U.S. Attorney’s Office for the Eastern District of Virginia’s Financial Crimes and Public Corruption Unit is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.