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Monday 7 January 2013
Niagara Falls Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Wally Reynolds, 36, of Niagara Falls, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $2,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Reynolds supervised other individuals in a drug conspiracy who imported marijuana from Canada into the United States. The defendant then distributed the marijuana to his customers in the United States.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for May 6, 2013 at 12:30 p.m. before Judge Arcara.
Newport News Woman Sentenced for PerjuryRead the Press Release
NEWPORT NEWS, Va. – Bettina Bugg, 30, of Newport News, Va., has been sentenced to 42 months in prison for lying to a federal grand jury.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Mark S. Davis on January 4, 2013.
Bugg pled guilty on July 6, 2012. According to court documents Bugg was subpoenaed to testify before a federal grand jury in Newport News related to the investigation of a double homicide. The father of one of her children was identified as a suspect in the homicides. Bugg lied under oath in front of the grand jury and then approached a government witness and asked her to lie about the obstructive conduct.
“Bettina Bugg made a mockery of the grand jury system by lying during a murder investigation and trying to get someone else to lie as well,” said U.S. Attorney MacBride. “This tough sentence should be a clear warning that lying to a federal grand jury is a serious crime that could result in years behind bars.”
This case was investigated by FBI, Newport News Police Department, Virginia State Police. Assistant United States Attorney Eric M. Hurt prosecuted 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.New York Man Pleads Guilty to Traveling to Pennsylvania for the Purpose of Engaging in Illicit Sexuals ConductRead the Press Release
ERIE, Pa. - A former resident of Ashville, New York, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
David Michael Lopus, 42, pleaded guilty to three counts before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Lopus traveled from New York to Pennsylvania on four separate occasions for the purpose of engaging in illicit sexual conduct with minors. As part ofhis plea agreement, Lopus agreed to a sentence of21 years of imprisonment and lifetime supervised release.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge McLaughlin scheduled sentencing for May 13, 2013, at 1:30 p.m. The law provides for a total sentence of90 years in prison, a fine of$750,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, the Conewango Township Police Department, the City of Warren Police Department and the Corry Police Department conducted the investigation that led to the prosecution of Lopus.
New Jersey Sex Offender Sentenced to Life Plus 10 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Donald J. Jones, III, 48, of Pemberton, N.J., was sentenced today by U.S. District Court Judge William E. Smith to life plus 10 years in federal prison, having been convicted at trial by a federal court jury in Providence, R.I., in May 2012, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography. Jones was previously convicted on three occasions in the state of New Jersey for crimes against children, including child pornography and aggravated sexual assault of a child under the age of thirteen.
Jones was arrested by federal agents and the Rhode Island State Police on April 8, 2011, after he traveled by bus from Philadelphia to Providence, expecting to meet with an eight-year-old girl and her father. Jones communicated for nearly three weeks via the Internet and by phone with a person he believed was the girl’s father, when in fact he was communicating with federal agents assigned to the Rhode Island State Police Computer Crimes Unit/Internet Crimes Against Children (ICAC) Task Force.Jones’ sentence was announced by United States Attorney Peter F. Neronha; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Kevin M. Niland, U.S. Postal Inspector in Charge; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
U.S. Attorney Peter F. Neronha commented, “As prosecutors, we have no higher calling than to aid parents in protecting their children. Accordingly, I am very pleased with the life sentenced handed down today, which ensures that a remorseless, recidivist pedophile has been brought to justice. Spending the rest of his life in prison ensures that he will never, ever harm another child.”
Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police said, "In addition to preventing this particular pedophile from further targeting any more children, a life sentence sends a clear message to others that may choose to follow in the same path he did.” Colonel O’Donnell added, “I commend the prosecutors, troopers, local police and federal agents for their continued vigilance in tracking, arresting and prosecuting those who prey on our children.”
Kevin M. Niland, U.S. Postal Service Inspector in Charge added, "A life sentence demonstrates the serious consequence that awaits those who sexually exploit innocent children. The Postal Inspection Service will continue to aggressively identify, target, and arrest those who dare prey on our children.""Today's life sentence demonstrates the serious consequences that await those who would sexually prey upon and exploit children," said Bruce Foucart, special agent in charge of HSI Boston. "Criminals with this kind of depravity in mind should know that we are ever vigilant. For every tactic taken to evade law enforcement, we will adapt our strategies to find them and prosecute them. Through our partnerships with state, local and other federal law enforcement agencies in Rhode Island, HSI will continue to police cyber space to investigate child predators and ensure that they feel the full weight of the law."
According to the government’s evidence presented at trial, on March 21, 2011, Jones posted a message on an adult Internet forum seeking a parent willing to allow him to have sex with their pre-pubescent child. The message was discovered by a postal inspector assigned to the RI ICAC who responded, posing as the father of an eight-year-old Rhode Island girl.
Jones and the agent exchanged numerous emails which evolved from the parent purporting to have an interest in allowing Jones to have sex with his daughter, to Jones at first describing and then emailing videos of child pornography in an effort to depict his intentions. They also had numerous telephone conversations, including conversations during which a female Providence Police officer posed as the young girl.
The government presented evidence to the jury that Jones purchased clothing for the young girl and mailed them to the person he believed to be her father. Jones also purchased and brought with him a nightgown and underwear for the young girl to wear.
On April 8, 2011, federal agents watched as Jones boarded a bus in Philadelphia and traveled to New York and then on to Rhode Island. Jones was arrested by federal and state law enforcement agents as he stepped off the bus in downtown Providence.
According to the State of New Jersey sex offender registry, Donald J. Jones, III is a level two child sex offender, convicted in 1993 on charges of aggravated sexual assault and endangering the welfare of a child. Both offenses were against a female under the age of 13. Jones was sentenced today to a consecutive 10 year federal prison sentence for committing a new sex offender crime while being required to register as a sex offender.The case was prosecuted by Assistant U.S. Attorneys Stephen G. Dambruch and Leslie J. Kane.
Providence Police, agents from ICE-Homeland Security Investigations in New Jersey and the U.S. Marshals Service assisted in the investigation.The Rhode Island State Police ICAC Task Force is a Department of Justice grant-funded program administered by the state police, and is comprised of six State Police detectives, detectives from the Providence, West Warwick, Coventry, Warwick, Johnston, and Pawtucket Police Departments, and federal agents from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Postal Inspectors’ Office. The objective of the ICAC is to form strong working relationships among federal, state and local law enforcement in order to effectively and efficiently prevent, detect, investigate, and prosecute online child exploitation and child pornography crimes.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Contact: 401-709-5357
[email protected]Mobridge Woman Sentenced on Drug ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a Mobridge woman convicted of Conspiracy to Distribute and Possess With Intent to Distribute a Controlled Substance was sentenced on January 4, 2013, by U.S. District Judge Charles B. Kornmann. Amber Long Chase, age 32, was sentenced to 105 months in custody, 6 years of supervised release, and a $100 special assessment.
Long Chase was indicted by a federal grand jury in February 2012. She pled guilty to one count of a superseding information in September 2012.
The conviction stems from Long Chase knowingly and intentionally conspiring to distribute and possess a mixture or substance containing methamphetamine, a Schedule II controlled substance, in 2011.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.Long Chase was immediately turned over to the custody of the U.S. Marshal.
Mexican National Sentenced for False United States Passport ApplicationRead the Press Release
Gulfport, Miss. – Estanislao Pulido, 48, a citizen of Mexico, was sentenced to seven months in federal prison for making false statements in an application for a United States Passport, announced U.S. Attorney Gregory K. Davis and Brian Hatheway, Resident Agent in Charge, U.S. Dept. of State Diplomatic Security Service.
Pulido’s prison term will run consecutively to the 120 month term of imprisonment he is currently serving for drug charges in the Eastern District of California.
Pulido pled guilty on October 1, 2012, to making and signing a false application for a United States Passport by falsifying his name, his citizenship, and his Social Security number.
This case was investigated by the U.S. Dept. of State, Diplomatic Security Service, and was prosecuted by Assistant U.S. Attorney Ruth Morgan.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Men from California and Texas Plead Guilty to Federal Kidnapping ChargeRead the Press Release
ALBUQUERQUE – Brandon Lawrence Jones, 35, of San Diego, Calif., and Jesus Manuel Gallegos, 41, of El Paso, Texas, have entered guilty pleas to an indictment charging them with a federal kidnapping charge. Jones entered his guilty plea on Dec. 28, 2012, and Gallegos entered his guilty plea on Jan. 3, 2013. Both guilty pleas were entered without the benefit of plea agreements.
Court records reflect that, on the night of Nov. 5, 2011, Jones and Gallegos carjacked and kidnapped a man as he was leaving a basketball game in El Paso, Texas. Using an air pistol that resembled semi-automatic pistol, Jones forced the victim to get into the passenger seat of his own vehicle. Thereafter, Gallegos joined Jones and the victim in the vehicle. After directing the victim to identify banks at which the victim maintained accounts, Jones took bank cards out of the victim’s wallet; forced the victim to reveal the PINs for his bank accounts; and withdrew cash from the victim’s bank accounts. During this time, Jones and Gallegos repeatedly struck the victim in the face and body with their fists.
Jones and Gallegos drove the vehicle from El Paso to Clines Corner, N.M. During one stop, they duct-taped the victim’s hands and feet, but later released him from the restraints when they realized that it might be hard to explain a restrained passenger as they crossed through the U.S. Border Patrol checkpoint at Hatch, N.M. During a stop in Albuquerque, N.M., Jones and Gallegos continued to use the victim’s bank card to withdraw money from the victim’s bank accounts. When they arrived at Clines Corner in the early morning of Nov. 6, 2011, Jones and Gallegos parked the vehicle at a truck stop and fell asleep. After ensuring that his kidnappers were asleep, the victim escaped from the vehicle and sought help from restaurant employees at the Clines Corner truck stop who called 911 and helped the victim contact family members in El Paso. Shortly thereafter, officers of the New Mexico State Police and Torrance County Sheriff's Office arrested Jones and Gallegos, who were still asleep in the victim’s vehicle.
When they were arrested, Jones was in possession of a wallet containing the victim’s driver's license, and Gallegos was in possession of one of the victim’s bank cards. In the vehicle, the officers found an air pistol, which looked like a semi-automatic pistol with a laser site, ATM receipts, and wads of used duct tape.
Jones and Gallegos were arrested on federal charges on Nov. 7, 2011, and have been in federal custody since that time. At their sentencing hearings, which have yet to be scheduled, Jones and Gallegos each face a maximum sentence of life imprisonment.
The case was investigated by the Albuquerque Division of the FBI and the New Mexico State Police. The case is being prosecuted by Assistant U.S. Attorneys Charles L. Barth and William Pflugrath and Special Assistant U.S. Attorney Adam Rowley.
Man Indicted for Obstructing and Impeding the Irs by Filing False Irs Forms Claiming $36 Million in RefundsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal Grand Jury in Syracuse has returned a seven-count Indictment charging GLENN RICHARD UNGER (62, of Ogdensburg, NY) with obstructing and impeding the Internal Revenue Service (“IRS”) by filing numerous false and fraudulent IRS forms seeking refunds. Specifically, the Indictment alleges that GLENN RICHARD UNGER obstructed and impeded the IRS between 2007 and 2011 by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately 36 million dollars. Upon receiving the false IRS forms, the IRS realized that they were fraudulent and did not issue any refund checks to GLENN RICHARD UNGER. The Indictment also alleges that the defendant filed false claims for refunds, evaded paying income taxes, and filed a fictitious obligation. If found guilty, the defendant faces a statutory maximum sentence of 20 years, a term of supervised release of up to 3 years, and a maximum fine of $250,000.00. The defendant was arraigned in Albany, New York, on January 2, 2013 before United States Magistrate Judge Randolph F. Treece and is currently detained.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office, the Federal Bureau of Investigation, Albany Field Office, the New York State Police, and the Treasury Inspector General for Tax Administration. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Man Indicted for Obstructing and Impeding the Irs by Filing False Irs Forms Claiming $36 Million in RefundsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that a federal Grand Jury in Syracuse has returned a seven-count Indictment charging GLENN RICHARD UNGER (62, of Ogdensburg, NY) with obstructing and impeding the Internal Revenue Service (“IRS”) by filing numerous false and fraudulent IRS forms seeking refunds. Specifically, the Indictment alleges that GLENN RICHARD UNGER obstructed and impeded the IRS between 2007 and 2011 by filing numerous false and fraudulent claims with the IRS for payment of a refund of taxes totaling approximately 36 million dollars. Upon receiving the false IRS forms, the IRS realized that they were fraudulent and did not issue any refund checks to GLENN RICHARD UNGER. The Indictment also alleges that the defendant filed false claims for refunds, evaded paying income taxes, and filed a fictitious obligation. If found guilty, the defendant faces a statutory maximum sentence of 20 years, a term of supervised release of up to 3 years, and a maximum fine of $250,000.00. The defendant was arraigned in Albany, New York, on January 2, 2013 before United States Magistrate Judge Randolph F. Treece and is currently detained.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office, the Federal Bureau of Investigation, Albany Field Office, the New York State Police, and the Treasury Inspector General for Tax Administration. The case is being prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Louisiana Home Inspector Sentenced to 78 Months in Prison<br /> for Tax FraudRead the Press Release
Jack Ray Carr, of Baton Rouge, La., was sentenced today to 78 months in federal prison for one count of corruptly interfering with the due administration of the Internal Revenue laws, four counts of filing false income tax returns and one count of aiding and assisting in the preparation of a false income tax return, the Justice Department, Internal Revenue Service (IRS) and Treasury Inspector General for Tax Administration (TIGTA) announced. Additionally, Carr was sentenced to one year of supervised release.
On June 20, 2012, following a three-day jury trial in the Middle District of Louisiana, Carr was convicted on all six counts. The evidence at trial established that Carr, a home inspector, threatened violence against a federal agent, filed false documents and tax returns with the IRS, and attempted to pay his tax debt with fraudulent bonds, fictitious money orders and a fake check. On three successive personal income tax returns, Carr falsely reported that his and his wife’s income was “$0.00,” despite earning hundreds of thousands of dollars in total during the 2001, 2002 and 2003 tax years. In 2009, on two tax returns, Carr falsely reported more than $100,000 of federal income tax withholdings based on fictitious IRS Forms 1099-OID attached to the tax returns that Carr filed in his own name and in the name of his wife. In doing so, Carr claimed more than $150,000 of fraudulent tax refunds from the U.S. government.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked the special agents of IRS - Criminal Investigation and TIGTA, who investigated this case. Assistant Attorney General Keneally also thanked Tax Division Trial Attorneys Justin Gelfand and Jason Poole who prosecuted this case.
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 7, 2013, Tiffany Lynn Lafond, 37, of Lincoln, was sentenced to ten years (120 months) in federal prison for her involvement in a conspiracy to distribute and possess with intent to distribute methamphetamine between June of 2010 and March of 2012. Information provided to law enforcement indicated that Lafond was responsible for the distribution of at least 500 grams (approximately 18 ounces) of methamphetamine during that time frame in the Lincoln area.
Following the prison term, Lafond will serve five years on supervised release.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on January 7, 2013, Ledon Marcel Hatcliff, 27, of Lincoln, was sentenced to 15 years and eight months (188 months) in federal prison for his involvement in a conspiracy to distribute and possess with intent to distribute methamphetamine between June of 2009 and February of 2011. Information provided to law enforcement indicated that Hatcliff was responsible for the distribution of at least 350 grams (approximately 12 ½ ounces) of methamphetamine during that time frame in the Lincoln area.
Following the prison term, Hatcliff will serve four years on supervised release.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff=s Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Lake Wales Man Charged with Child Pornography OffensesRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging Paul Henry Carlin (58, Tampa) with transportation and receipt of child pornography. If convicted, Carlin faces a mandatory minimum of 5 years and up to 20 years in federal prison on each count.
According to the indictment, between May 29, 2012, and December 5, 2012, Carlin transported and received files containing child pornography, using the Internet.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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."
Laguna Pueblo Man Pleads Guilty to Federal Domestic Violence by a Habitual Offender ChargeRead the Press Release
ALBUQUERQUE – Last week, Timothy Luke Perea, 41, a member and resident of Laguna Pueblo, pled guilty to an indictment charging him with domestic assault by a habitual offender. Perea entered his guilty plea on Jan. 4, 2013, under a plea agreement with the U.S. Attorney’s Office.
The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
During his plea hearing, Perea admitted assaulting his wife, also a member of Laguna Pueblo, on March 6, 2011. In entering his guilty plea, Perea acknowledged that he had at least two prior convictions for assault against a spouse, household member, intimate partner, or a person with whom he was cohabiting.
Perea was prosecuted federally for the March 6, 2011 assault because he had two prior domestic violence convictions. Court records reflect that Perea was convicted of assault resulting in serious bodily injury on Aug. 29, 1997, in federal court in New Mexico. Perea also was convicted of aggravated battery against a household member on Oct. 20, 1997, in the Second Judicial District Court for the State of New Mexico.
At sentencing, Perea faces a maximum penalty of five years of imprisonment and a $250,000 fine. Perea has been in custody since his arrest on Oct. 17, 2012, and remains detained pending his sentencing hearing, which has yet to be scheduled.The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Southern Pueblos Agency, and the Laguna Pueblo Police Department, and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
Justice Department to Monitor Municipal Special Election in South CarolinaRead the Press Release
The Justice Department announced today that it will monitor the municipal special election on Jan. 8, 2013, in Branchville, S.C., to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Justice Department personnel will monitor polling place activities in Branchville. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Justice Department Reaches Settlement with South Carolina Food Service Provider to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Centerplate Inc., resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). Centerplate, based in Spartanburg, S.C., is one of the largest hospitality companies in the world. With over 10,000 employees nationwide, Centerplate provides food service to over 250 stadiums, convention centers and entertainment venues across the country.
The Justice Department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS) under a memorandum of agreement between the Civil Rights Division and USCIS. The department’s investigation concluded that, for at least the past three years, Centerplate engaged in a pattern or practice of treating work-eligible non-U.S. citizens differently from U.S. citizens during the INA’s employment eligibility verification processes, including E-Verify, by requiring specific documents issued by the Department of Homeland Security from non-U.S. citizens, while not making similar requests of U.S. citizens.
Under the terms of the agreement, Centerplate has agreed to pay $250,000 in civil penalties, the third highest amount paid through settlement since enactment of the INA’s anti-discrimination provision in 1986. Centerplate has also agreed to fully compensate any victims who lost wages as a result of Centerplate’s practices, undergo Justice Department training on the anti-discrimination provision of the INA, and be subject to monitoring of its employment eligibility verification practices for a period of three years. The case settled prior to the Justice Department filing a complaint in this matter.
“Work-eligible applicants – citizens and non-citizens alike – deserve fair and equal treatment in the eligibility verification process,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Therefore, we will continue to vigorously enforce the anti-discrimination provision of the INA.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TDD for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TDD for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Files Lawsuit in Idaho AgainstJerome County Sheriff’s Office to Enforce the Employment Rights of Army National Guard MemberRead the Press Release
The United States Justice Department and U.S. Attorney Wendy J. Olson announced today the filing of a complaint alleging that the Jerome County Sheriff’s Office willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to reemploy and terminating Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service. The suit was filed in federal district court in Idaho.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones was also a member of the Idaho Army National Guard. He suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminating his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing exactly this kind of injustice,” said Thomas E. Perez, Assistant Attorney General for the Department of Justice’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army National Guard sacrifice time away from their jobs to serve their country,” said Olson. “USERRA ensures that they are not discriminated against after they have returned and their employment rights are protected. We are committed to vigorously enforcing USERRA’s protections.”
The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Related Materials:
Jones Complaint
Justice Department Files Lawsuit in Idaho Against Jerome County Sheriff’s Office to Enforce the Employment Rights of Army National Guard MemberRead the Press Release
WASHINGTON — The United States Justice Department and U.S. Attorney Wendy J. Olson announced today the filing of a complaint alleging that Jerome County Sheriff’s Office willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to reemploy and terminating Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service. The suit was filed in federal district court in Idaho.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
The complaint states that Jones began working for Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones was also a member of the Idaho Army National Guard. He suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminating his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty.
“When Congress enacted USERRA, it was to protect our men and women in uniform from experiencing exactly this kind of injustice,” said Thomas E. Perez, Assistant Attorney General for the Department of Justice’s Civil Rights Division. “The Justice Department is committed to vigorously enforcing federal laws that protect the employment rights of our service members.”
“Members of the Army National Guard sacrifice time away from their jobs to serve their country,” said Olson. “USERRA ensures that they are not discriminated against after they have returned and their employment rights are protected. We are committed to vigorously enforcing USERRA’s protections.”
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Judy A. Robbins to Serve as U.S. Trustee for District of Columbia, Maryland, South Carolina, Virginia, and West Virginia for Interim PeriodRead the Press Release
WASHINGTON – Judy A. Robbins, the U.S. Trustee for the Southern and Western Districts of Texas (Region 7), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for the District of Columbia, Maryland, South Carolina, Virginia, and West Virginia (Region 4) for an interim period beginning on February 1, 2013, the Executive Office for U.S. Trustees announced today. She replaces W. Clarkson McDow, Jr., who is retiring after serving as the U.S. Trustee for Region 4 since June 1994.
Ms. Robbins has served as U.S. Trustee for Region 7 since September 2010. Prior to that appointment, she served as an Assistant U.S. Attorney, Civil Division, in the Southern District of Texas, focusing on bankruptcy, civil fraud, commercial litigation and employment discrimination. She has also served as a bankruptcy attorney for the Federal Deposit Insurance Corporation in Houston, a Trial Attorney for the U.S. Trusteeç´ office in Houston, an estate administrator for the U.S. Bankruptcy Court for the Southern District of Texas and a pro se law clerk for the U.S. District Court for the Southern District of Texas. Ms. Robbins received her law degree from the University of Houston College of Law and her undergraduate degree cum laude from the University of Houston.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 4 is headquartered in Columbia, S.C., with additional offices in Alexandria, Norfolk, Richmond, and Roanoke, Va.; Baltimore and Greenbelt, Md.; and Charleston, W.Va.
Contact:Jane Limprecht, Public Information Officer
Monday, July 15, 2013 3:10 PM
Executive Office for U.S. Trustees
(202) 305-7411Johnstown Man Pleads Guilty to Unlawfully Possessing PistolRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
John A. Hinton, 32, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on April 3, 2012, Hinton, who had been convicted in 2007 in Cambria County, Pa., of delivery of cocaine, unlawfully possessed an H & R pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of cocaine is such a crime.
Judge Gibson scheduled sentencing for June 4, 2013, at 9:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Johnstown Police Department conducted the investigation that led to the prosecution of Hinton.
According to Mr. Hickton, Hinton is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Johnstown Man Pleads Guilty to Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
James Robert Reynolds, 54, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 30, 2011, Reynolds knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 4, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Conemaugh Township Police Department conducted the investigation that led to the prosecution of Reynolds.
According to Mr. Hickton, James Robert Reynolds is being prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, 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 identify and rescue victims.
Indictment: California Man Drove to KansasWith Four Kilograms of CocaineRead the Press Release
WICHITA, KAN. - A federal grand jury today returned an indictment against a California man who was arrested in Thomas County, Kan., charging him with possession with intent to distribute four kilograms of cocaine, U.S. Attorney Barry Grissom said.
Patrick Yarborough, 35, Lawndale, Calif., is charged with one count of possession with intent to distribute cocaine and one count of interstate travel in furtherance of drug trafficking. The indictment alleges he had traveled from California to Kansas for the purpose of drug trafficking when he was arrested Oct. 11, 2013.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million on the possession with intent to distribute charge, and a maximum penalty of five years and a fine up to $250,000 on the interstate travel charge. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
OTHER INDICTMENTS
Costel Neicu, 33, a citizen of Romania, is charged in a superseding indictment with two counts of possessing false passports, two counts of possessing false immigration documents, two counts of producing false immigration documents and one count of aggravated identity theft. The crimes are alleged to have occurred March 1, 2012, in Ellis County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each of the first four counts of possessing false documents, a maximum penalty of 15 years and a fine up to $250,000 on each count of producing false documents, and a mandatory two years to run consecutive to other sentences and a fine up to $250,000 on the aggravated identity theft count. The Kansas Highway Patrol and Homeland Security Investigations investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Marcos Salvatierra-Martinez, 25, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an alien illegally in the United States and one count of unlawful possession of ammunition by an alien illegally in the United States. The crimes are alleged to have occurred Dec. 12, 2013, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department and Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jaime Ollarzabal-Lopez, 28, a citizen of Mexico, is charged with count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported, and one count of unlawful possession of a firearm by an alien illegally in the United States. He was found Dec. 4, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000 on the re-entry charge, and a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge. The Wichita Police Department and Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Darrin Kebert, Jr., 28, Cherryvale, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Aug. 23, 2013, Montgomery County, Kan.If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $2 million on methamphetamine charge, not less than five years consecutive to the sentence on the drug charge and a fine up to $250,000 on the charge of unlawful possession of a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on the other firearm charge. The Kansas Bureau of Investigation investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hunterdon County, N.J., Man Indicted for Social Security Disability FraudRead the Press Release
NEWARK, N.J. – A Hunterdon County, N.J., man who previously owned his own private detective firm was indicted by a federal grand jury and charged with conspiring to commit Social Security disability fraud, U.S. Attorney Paul J. Fishman announced.
David M. Disney, 45, of Alexandria Township and Saddle River, N.J, and formerly of DM Disney & Associates, is charged in a three-count Indictment with conspiring with a former girlfriend to fraudulently obtain $144,000 in disability insurance benefits from the Social Security Administration between 2003 and 2008. Disney appeared in Newark federal court today before U.S. Magistrate Judge Patty Shwartz and U.S. District Court Judge Faith S. Hochberg for his initial appearance and arraignment.
According to the Indictment, unsealed today:
As a result of a head injury he suffered in January 2003, Disney applied for disability insurance payments in the fall of 2003, claiming an inability to work, take care of himself or his finances, or even concentrate for more than five minutes. Based on that application, Disney and his two dependent children were deemed eligible for monthly disability benefit payments to replace his lost income. By signing the application, Disney agreed to notify the Social Security Administration if there was any improvement in his medical condition or if he regained the ability to work and earn income. A former girlfriend of Disney’s, who worked for his private detective firm, also signed forms attesting to his inability to work or earn any income.
However, during the time that Disney was receiving disability benefits, he continued to perform surveillance for clients of DM Disney & Associates, to testify before the New York State Workers' Compensation Board on behalf of clients, and even applied to renew his New Jersey Private Detective License and purchase a handgun. Between 2003 and 2008, Disney collected more than $144,000 in monthly disability payments to which he was not entitled by continuing to make false statements to the Social Security Administration and underreporting the income that he was earning.
Disney is charged in Count One of the Indictment with Conspiracy, in Count Two with Social Security Disability Fraud and in Count Three with Theft of Government Property. Counts One and Two are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine. On Count Three, Disney faces a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the Social Security Administration - Office of the Inspector General, under the direction of Special Agent-in-Charge Edward J. Ryan of the New York Field Division, with the investigation leading to the Indictment.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: James Patton Esq., Livingston, N.J.Disney Indictment
Hudson County, N.J., Teacher Charged with Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A permanent substitute teacher at a private school in Jersey City was arrested today after law enforcement officers discovered alleged child pornography on a computer at his residence, U.S. Attorney Paul J. Fishman announced.
Guy West, 44, of Jersey City, N.J., is charged by Complaint with one count of distributing images of child sex abuse over the Internet. West will make his initial court appearance tomorrow before U.S. Magistrate Judge Patty Shwartz in Newark federal court.
According to the criminal Complaint;
On Dec. 18, 2012, West distributed videos and images depicting child sexual abuse on the Internet via peer-to-peer file sharing software, to which others had access in shared directories. Special agents of the FBI executed a search warrant today at West’s residence, seizing digital evidence that contained numerous images depicting child sexual abuse, including material that involved prepubescent minors and material that portrays sadistic or masochistic conduct. The digital evidence seized included three files previously downloaded from West by law enforcement agents working in an undercover capacity on the peer-to-peer network.
On the child pornography distribution count, West faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.U.S. Attorney Fishman credited special agents of the FBI Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez in Newark, the Jersey City Police Department and the Hudson County Prosecutor’s Office with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Candace Hom Esq., Assistant Federal Public Defender, NewarkWest, Guy Complaint
Guy G. Gebhardt Is Appointed Acting U.S. Trustee for Florida, Georgia, Puerto Rico, Virgin IslandsRead the Press Release
WASHINGTON – Guy G. Gebhardt has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Florida, Georgia, Puerto Rico, and the U.S. Virgin Islands (Region 21), effective on January 12, 2013, the Executive Office for U.S. Trustees announced today. He replaces Donald F. Walton, who is retiring after 25 years with the U.S. Trustee Program (USTP), including the past four and a half as U.S. Trustee.
Mr. Gebhardt has served since 1991 as the Assistant U.S. Trustee in the Atlanta office. He has participated in numerous working groups to implement USTP priorities that include coordinating national enforcement against identity theft and unlawful “foreclosure rescue” operations, tracking and reporting civil enforcement activities, and streamlining field office operations. He was a recipient of the Director’s Award for Exemplary Service in November 2002 for his longstanding contributions to the USTP. Before joining the USTP, Mr. Gebhardt practiced law in Atlanta for 17 years. He received his undergraduate degree cum laude from Illinois Wesleyan University in Bloomington, Ill., and, after serving in the U.S. Army, received his law degree from Vanderbilt University School of Law in Nashville, Tenn.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 21 is headquartered in Atlanta with additional offices in Macon and Savannah, Ga.; Miami, Orlando, Tallahassee, and Tampa, Fla.; and San Juan, Puerto Rico.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Georgia Woman Indicted for Stealing Identities to Obtain Tax RefundsRead the Press Release
A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Deatrice Smith Williams and Quentin Collick for their roles in a stolen identity refund fraud conspiracy, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, U.S. Attorney for the Middle District of Alabama George L. Beck Jr. and the Internal Revenue Service (IRS) announced today. The 13 count indictment charges Williams and Collick with conspiracy to file false claims, theft of public funds, wire fraud and aggravated identity theft.
On Aug. 9, 2012, Quentin Collick was indicted for his role in the conspiracy. In November 2012, pursuant to a criminal complaint, Williams was arrested for her role in the conspiracy. The superseding indictment was unsealed today.
According to court documents, Williams worked for a debt collection company in Georgia. As part of her employment, Williams had access to names and social security numbers. She provided several names and Social Security numbers to her son-in-law, Quentin Collick. Collick, and his co-conspirators used those names to file false tax returns from the Middle District of Alabama. Collick and his co-conspirators, in turn, cashed several fraudulent federal refund checks.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Collick and Williams each face maximum potential sentences of 10 years in prison for the conspiracy count, up to 20 years in prison for each wire fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. Collick also faces up to 10 years in prison for each theft of public funds count. They are also subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Tax Division Trial attorneys Jason H. Poole and Michael Boteler and Assistant U.S. Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Georgia Woman Indicted for Stealing Identities to Obtain Tax RefundsRead the Press Release
Montgomery, Alabama - A federal grand jury in Montgomery, Ala., returned a superseding indictment charging Deatrice Smith Williams and Quentin Collick for their roles in a stolen identity refund fraud conspiracy, Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division, United States Attorney George L. Beck, Jr., and the Internal Revenue Service (IRS) announced today. The thirteen count indictment charges Williams and Collick with conspiracy to file false claims, theft of public funds, wire fraud, and aggravated identity theft.
On August 9, 2012, Quentin Collick was indicted for his role in the conspiracy. In November 2012, pursuant to a criminal complaint, Williams was arrested for her role in the conspiracy. The superseding indictment was unsealed today.
According to court documents, Williams worked for a debt collection company in Georgia. As part of her employment, Williams had access to names and social security numbers. She provided several names and social security numbers to her son-in-law, Quentin Collick. Collick and his co-conspirators used those names to file false tax returns from the Middle District of Alabama. Collick and his co-conspirators, in turn, cashed several fraudulent federal refund checks.
An indictment merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Collick and Williams each face maximum potential sentences of 10 years imprisonment for the conspiracy count, up to 20 years imprisonment for each wire fraud count, and a mandatory 2-year sentence for the aggravated identity theft counts. Collick also faces up to 10 years imprisonment for each theft of public funds count. They are also subject to fines and mandatory restitution if convicted.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Tax Division Trial attorneys Jason H. Poole and Michael Boteler and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Garfield Man Found Guilty of Constructing A Road Through A Protected Wetland BasinRead the Press Release
MINNEAPOLIS – Last week in federal court, a 48-year-old man from the central
Minnesota community of Garfield was found guilty of constructing a road through a federallyprotected
wetland basin located on his property. Based on evidence presented during a two-day
bench trial last August, United States Magistrate Judge Leo I. Brisbois issued a written order on
January 4, 2013, convicting James Bosek of one misdemeanor count of filling a wetland that was
subject to a federal easement under the National Wildlife Refuge System Act.
Judge Brisbois found that Bosek engaged in prohibited activity when he built a road across
the eastern edge of his property, located in rural Douglas County. The property is subject to a
perpetual easement that the U.S. Department of Interior purchased in 1963. Bosek purchased the
property subject to the easement in 2001.
Judge Brisbois found that Bosek knew of the easement before building the road, and that
Bosek did not obtain permission or authorization from the U.S. Fish and Wildlife Service
(“USFWS”) before building the road. The USFWS discovered the road while making an
unrelated visit to Bosek’s property in April of 2008. Judge Brisbois credited the trial testimony
of a USFWS biologist, who surveyed the property and concluded that Bosek’s filling of the
wetland damaged the wetland as a protected native habitat for waterfowl. Bosek was charged on
August 19, 2011, after refusing the USFWS’s demand that he remove the road and restore the
wetland.
Under the statute of conviction, Bosek faces a potential maximum penalty of 180 days in
prison, a $5,000 fine, and costs of restoring the wetland. Judge Brisbois will determine his
sentence at a future hearing, scheduled for March 27, 2013, at the federal courthouse in Fergus
Falls. This case is the result of an investigation by the USFWS. It is being prosecuted by Assistant U.S. Attorneys Lola Velazquez-Aguilu, Thomas Calhoun-Lopez, and William J.
Otteson.Fulton Man Pleads Guilty to Bank Robbery, Admits Robbing Five BanksRead the Press Release
JEFFERSON CITY, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man pleaded guilty in federal court today to bank robbery, admitting that he had robbed banks in Sedalia, Chillicothe, Cuba, Moberly and Rolla, Mo.
John David Farnell, 61, of Fulton, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to the charge contained in a June 9, 2010, federal indictment. Farnell is currently serving a federal prison sentence in a separate bank robbery case that was prosecuted in the Eastern District of Missouri.
Farnell pleaded guilty to stealing $11,540 from Excel Bank in Sedalia, Mo., on Aug. 10, 2009. Farnell entered the bank carrying a green gym bag in his left hand and immediately approached a teller. He set the bag on the counter, retrieved a black handgun that had a long barrel and wooden grip, pointed it at the teller and instructed her not to make a sound. He told the teller to give him twenties, fifties and hundreds. The teller pulled the bills out of her drawer and put them on the counter. Farnell instructed the teller not to make a sound or move again, and then walked down to another window.
Farnell approached a second teller counter. He again placed the bag on the counter, displayed the gun, and stated, “I want all your tens, twenties, fifties, hundreds.” The second teller gave him all the loose bills, and Farnell asked, “Is that all?” The second teller responded, “No, I’m sorry,” and gave him the bundled tens and the twenties. Farnell exited the bank through the front doors, got into a white minivan and left.
On April 29, 2010, the First Community National Bank in Cuba was robbed. At approximately 11 a.m., a Missouri State Highway Patrol trooper stopped Farnell, who was traveling in a van that matched the description of the suspect vehicle involved in the bank robbery. During a search of the van, a Ruger .357 magnum revolver was recovered, as well as U.S. currency.
Farnell admitted to law enforcement officers that he committed the robbery in Cuba and the robbery in Sedalia, as well as robbing BTC Bank in Chillicothe on Feb. 24, 2010. Farnell stated that he committed the robberies because of financial reasons, and admitted that he used the .357 magnum revolver recovered from his van during all of the robberies.
In a separate case, Farnell was sentenced in the Eastern District of Missouri on March 9, 2012, to 13 years and six months in federal prison without parole. Farnell pleaded guilty in that case to robbing First Community National Bank in Cuba, Commerce Bank in Moberly (on March 13, 2009) and Town & Country Bank in Rolla (on Dec. 18, 2009). He also pleaded guilty in that case to one count of possessing a firearm in connection with a crime of violence.
Under federal statutes, Farnell is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Missouri State Highway Patrol, and the police departments of Sedalia, Chillicothe, El Dorado Springs, Rolla and Cuba, Mo.
Four (4) Members of an International Drug Trafficking Organization Found Guilty of Conspiracy to Import 146 Kilograms of Cocaine and 8 Kilograms of Heroin into Puerto RicoRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico announced that yesterday, a federal jury returned a guilty verdict against Manuel Liriano-De la Cruz, José Pena-Santo, Jonathan Martinez, and José Ramón Vicente-Arias for Conspiring to Import Drugs into the United States and Conspiring to Possess Drugs in a Vessel Subject to the Jurisdiction of the United States. Liriano-De la Cruz and Pena-Santo were also found guilty of being aliens attempting to illegally re-enter into the United States after having been removed from the United States. All four (4), members of an international drug trafficking organization based in the Dominican Republic, attempted to introduce a load of 146 kilograms of cocaine and 8 kilograms of heroin, with a street value of 3.2 million dollars into Puerto Rico. Two (2) other defendants, Alejandro Difot-Santos and Carlos De la Cruz-Sànchez pled guilty, the day before the trial was scheduled to begin.
The evidence at trial showed that the drug traffickers departed from the Dominican Republic in a yawl carrying the load of drugs contained in six bags wrapped with duct tape. The yawl was detected in the late evening and early morning hours by law enforcement heading in a track line towards the coast of Puerto Rico. Air and marine units from the Caribbean Air and Marine Branch (CAMB), U.S. Coast Guard and FURA from the Puerto Rico Police Department were launched to intercept the yawl. A fast boat from the U.S. Coast Guard arrived and detained the yawl, along with the six subjects onboard, approximately four (4) nautical miles off the coast of Dorado in U.S. customs waters. A fixed wing aircraft from CAMB observed the individuals onboard the yawl throwing the bales containing the load of drugs into the water. A CAMB helicopter illuminated the debris field which allowed the FURA marine unit to recover the heavy packages before they sank.
This case shows the commitment of federal and state authorities to work together against the drug trafficking organizations that attempt to use our coasts for the importation of drugs into the United States.
The case was prosecuted by Special Assistant United States Attorney US Coast Guard Lieutenant Kelley Tiffany and Assistant United States Attorney Carlos R. Cardona from the Organized Crime Drug Enforcement Task Force (OCDETF) initiative of the United States Attorney’s Office for the District of Puerto Rico.
Founder of Violent “Dead Man Incorporated” Gang Sentenced to Life on Federal Racketeering, Murder and Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, today to life in prison for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI). Roark has been the “Supreme Commander” of DMI since it was originally created as a prison gang in Maryland in 2000. At the government’s request, Judge Bennett has recommended that Roark serve his sentence at USP Florence, Colorado, the most secure prison in the federal system.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
“Perry Roark was scheduled to be released from state prison, but instead he will spend the rest of his life in federal prison for leading the violent Dead Man Incorporated gang and arranging murders,” said U.S. Attorney Rod J. Rosenstein. “Federal racketeering prosecutions serve a critical role in the coordinated local, state and federal law enforcement strategy to reduce violent crime in Maryland.”
According to Roark’s plea agreement, DMI was created originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
DMI members operated in and out of prisons throughout Maryland, as well as Pennsylvania, Louisiana and Texas. DMI is active in numerous prison facilities in Maryland. Units operating outside the prisons are identified by the region they cover, such as Brooklyn, South Baltimore, Southwest Baltimore, Southeast Baltimore, Dundalk, Westminster, Glen Burnie, etc.
Roark admitted that he conspired to conduct the affairs of DMI through a pattern of criminal activity from 2000 to the present, including: murder and threats to commit murder, armed robbery, drug trafficking and extortion. DMI members and associates smuggled drugs, tobacco, cell phones and other contraband into prisons, by concealing them on the persons of visitors to the prisons.
Gang members used contraband cell phones in prisons to coordinate the smuggling of contraband into prisons, disseminate information about arrests and releases of members and associates, to warn of investigations, to publicize the identities of persons believed to be cooperating with law enforcement, and to order assaults and murders of such persons, as well as enemies of DMI.
Specifically, Roark admitted that from November 2008 through June 2, 2009, he ordered and planned the June 2, 2009, murder of Tony Geiger, which was carried out by his co-defendants. Roark admitted that he ordered three other murders, which were never carried out, as well as numerous assaults. Roark was frequently involved in drug trafficking within the prisons where he was housed from 2000 to the present.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
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Former TCU Football Player and Fellowship of Christian Athletes Staffer Admits Defrauding Investors in Nearly $16 Million Forex Market ScamRead the Press Release
DALLAS – Eldon A. Gresham, Jr., 67, pleaded guilty late Thursday afternoon, before U.S. District Judge Jorge A. Solis, to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam that he ran from January 2004 through June 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Gresham, formerly of Olney, Texas, who is representing himself in the case, was set to go on trial next Monday, January 14, 2013, on a superseding indictment charging four counts of mail fraud.
Gresham faces a maximum statutory sentence of 20 years in prison, a $250,000 fine and restitution. However, in accordance with the terms of the plea agreement, if the Court accepts the plea, the parties agree that the maximum prison term shall be at the bottom end of the U.S. Sentencing Guideline range that is ultimately determined by the Court. In addition, Gresham shall forfeit a money judgment to the U.S. in the amount of $15.8 million, constituting the proceeds obtained from his offense. A sentencing date has not been set.
Gresham is presently in federal custody, having been arrested in Georgia on December 13, 2012, for violating the conditions of pre-trial release. It is expected that a bond hearing will be held in the near future.
According to the superseding indictment, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.
As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme. He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.” He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.
According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading. He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits. Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.
The U.S. Postal Inspection Service is in charge of the investigation. Assistant U.S. Attorneys David Jarvis and J. Nicholas Bunch are prosecuting.
Former Police Detective and His Wife Sentenced in Drug ConspiracyRead the Press Release
Keith Gidelson, 36, a former Philadelphia Police Detective, was sentenced today to 4 years in prison for operating anabolic steroid and human growth hormone (“HGH”) distribution organization in Philadelphia and throughout the United States. His wife, Kirsten Gidelson, was sentenced to three years probation, with the first year on home confinement, and a $100 special assessment, for her participation in the conspiracy. Gidelson acquired steroids from foreign suppliers and then sold these steroids to his co-conspirators who distributed the drugs to their own customers. He pleaded guilty October 9, 2012, to conspiracy to distribute anabolic steroids and 16 counts of possession with intent to distribute anabolic steroids. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered Gidelson to pay a $25,000 fine and ordered three years of supervised release.
Gidelson received monthly shipments of anabolic steroids and HGH from suppliers in Europe and China. One supplier shipped the steroids to California where defendant Robert Walters re-packaged them for shipment to Gidelson. Another supplier shipped orders of steroids to a mailbox that Gidelson had rented at a UPS store. Gidelson and his wife stored and packaged steroids and HGH at their home in Philadelphia. The couple met with drug customers, including defendants Michael Barclay, Keith Ebner, Jeffrey Filoon, Christian Kowalko, Joel Levin, Luke Lors, Joseph McIntyre, George Sambuca, William Schiavo, and Vaidotas Verikas, at their home and at Philadelphia-area fitness clubs, to distribute anabolic steroids and HGH in various quantities.
Gidelson also distributed steroids to customers throughout the United States that he met through online weightlifting chat rooms on websites including: Steroids.com; Inject.com; Isteroids.com; and Bodybuilding.com. Gidelson also allegedly used the electronic mail service yahoo.com, and the encrypted email services hushmail.com and safemail.com to place orders and communicate with his foreign suppliers.The case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Philadelphia Police Department, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney David L. Axelrod.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Former Pennington Gap Police Chief Pleads Guilty to Drug Conspiracy and Burglary ChargesRead the Press Release
ABINGDON, VIRGINIA -- The former police chief of the Pennington Gap Virginia Police Department pleaded guilty this morning to felony charges related to his involvement in the distribution of prescription pain killers and the burglary of a pharmacy.
William Bryan Young, 39, of Duffield, Va., pled guilty today in the United States District Court for the Western District of Virginia in Abingdon, to one count of conspiracy to possess with the intent to distribute and distribute oxycodone and one count of burglary of a pharmacy, related to the burglary of the Rite-Aid pharmacy in Pennington Gap, Virginia, on September 28, 2012.
Young’s co-defendants, Kevin Andrew Young, 35, of Duffield, Va., and Chris Miles, 35, of Duffield, Va., also entered guilty pleas to one count of burglary of a pharmacy.
“William Bryan Young abused his police authority and repeatedly broke the law he was sworn to uphold,” United States Attorney Timothy J. Heaphy said today. “By arranging a commercial burglary and engaging in numerous illegal drug transactions, Mr. Young tarnished the badge he wore and violated the trust of the people of Pennington Gap. This case demonstrates our commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status.”
“When a police officer violates the trust that our citizens have placed in its law enforcement, that is something we will not tolerate. I hope this sends a clear message to those who would engage in this wanton misconduct that there will be a penalty paid,” said Richard Marianos, special agent in charge of ATF Washington Field Division.According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary Lee, in the Spring of 2012, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating William Bryan Young’s associations with known drug distributors in Lee County, Virginia. Their investigation, aided by other state, local, and federal law enforcement agencies, determined that William Bryan Young was a long-time user of controlled substances, had distributed controlled substances while employed as the police chief, and that he had orchestrated the burglary of the Rite Aid pharmacy in Pennington Gap, Virginia to obtain prescription pain killers.
Specifically, the investigation determined that on September 28, 2012, William Bryan Young sent all other Pennington Gap Police Department personnel home to ensure that he would be the only police officer working the night shift. At approximately 2:50 a.m. a burglary of the Rite-Aid pharmacy in Pennington Gap, Virginia occurred. Just prior to the burglary, William Bryan Young, who was on duty at the time, contacted officers with the Lee County Sheriff’s Office to determine their positions relative to the location of the pharmacy. After determining that there were no law enforcement officers in close proximity to the pharmacy, William Bryan Young contacted Kevin Young, Jimmy Johnson and Chris Miles to tell them it was clear for them to break-in to the Rite Aid pharmacy. Kevin Young drove himself, Johnson and Miles to the Rite-Aid. Miles broke into the Rite-Aid pharmacy through the drive-thru window and stole approximately 5,000 oxycodone pills. William Bryan Young later received stolen pills from the pharmacy robbery.
On October 18, 2012, William Bryan Young, in his police department issued uniform, sold twenty oxycodone pills to a confidential informant cooperating with the ATF in their investigation. Shortly thereafter, William Bryan Young was arrested by agents with the ATF at the Lee County Courthouse in Jonesville, Virginia.
William Bryan Young admitted to being an illegal user of controlled substances for a number of years and admitted to distributing twenty Percocet pills earlier that day. William Bryan Young also admitted to distributing twenty Percocet pills the previous day, and to distributing six Percocet pills the previous weekend. A search of William Bryan Young’s police cruiser located the pre-recorded United States currency used by the confidential informant to purchase twenty Percocet pills earlier that day. Agents also located thirteen Percocet pills and one oxicodone pill in the police cruiser.
On October 18, 2012, a search warrant was executed at William Bryan Young’s residence located in Duffield, Virginia by federal agents, the Lee County Sheriff’s Office, and the Virginia State Police. Law enforcement officers found 548 Percocet pills and firearms in the residence. In addition, agents located empty evidence bags from the Pennington Gap Police Department in William Bryan Young’s personal vehicle that appeared to have previously contained controlled substances.
William Bryan Young faces a potential maximum sentence of up to forty years imprisonment and a potential fine of up to $1,250,000. Kevin Young faces a potential maximum sentence of up to twenty years imprisonment and a potential fine of up to $250,000. Chris Miles faces a potential maximum sentence of up to twenty years imprisonment and a potential fine of up to $250,000.
The investigation of the case was conducted by the Lee County Sheriff’s Office, Virginia State Police, Southwest Virginia Drug Task Force, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Federal Bureau of Investigation, and United States Marshals Service. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.Former Mayor of Melissa, Texas Guilty in Bribery SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – Two Collin County, Texas men, including the former mayor of the city of Melissa, have pleaded guilty in connection with a bribery scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
David E. Dorman, 66, of Melissa, Texas, pleaded guilty to an Information charging him with mail fraud today before U.S. Magistrate Judge Amos Mazzant. John Christie, 65, of Frisco, Texas, pleaded guilty to misprision of a felony on Jan. 4, 2013, before Judge Mazzant.According to information presented in court, in 2007, Dorman, then mayor of the city of Melissa, solicited a $70,000 bribe from Christie in exchange for arranging for the city of Melissa to annex a portion of land from the city of McKinney, Texas, in order for Christie to develop and sell the land to potential customers. Based on a letter from Dorman, the cities of Melissa and McKinney approved the annexation and in exchange, Christie made one $10,000 cash payment and two $10,000 payments by check to Dorman. The men were initially named in an indictment returned by a federal grand jury on Sep. 12, 2012.
Dorman faces up to 20 years in federal prison. Christie faces up to three years in federal prison for his role in the scheme. Sentencing dates have not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.
Former Huntington Convenience Store Owner Sentenced to Prison Time for Federal Food Stamp FraudRead the Press Release
All-In-One store was demolished in Huntington’s Fairfield district in December
HUNTINGTON, W.Va. - U.S. Attorney Booth Goodwin announced that a former Huntington convenience store owner was sentenced to six months in federal prison and six months of home confinement followed by three years of supervised release for defrauding the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Food Stamp Program. Abderahamane Eloirzazi, also known as Abe, 44, of Huntington, was the owner and operator of the All-In-One convenience store formerly located on 9th Avenue in Huntington. The store, once a magnet for crime in Huntington’s Fairfield neighborhood, was demolished in December following the defendant’s conviction.Eloirzazi was required to hand over the property to the City of Huntington as a condition of his plea agreement.
U.S. Attorney Booth Goodwin said, “With this sentencing the book on the All-In-One store is closed. It is up to the community to write a new one.”
From some time prior to June 2010 and continuing until February 2012, Eloirzazi and co-defendants Stephanie Pauley, 35, and Cynthia Gibson, 40, all of Huntington, conspired together and with other known individuals in an illegal scheme to defraud the federal food benefits program. Federal food benefits cards are provided to qualifying low-income households for the purpose of feeding people who otherwise might go hungry. The benefits can only be used to buy food. Eloirzazi and his co-conspirators, however, cheated the program. Card-holders could walk into Eloirzazi’s store and swipe their cards for fake food purchases, pretending to buy food when in fact they were simply transferring money from their food benefits card to Eloirzazi’s account. In exchange, Eloirzazi would compensate them with cash or items like cigarettes or alcoholic beverages, usually offering only 50 to 65 cents for every dollar’s worth of food benefits a card-holder had paid him.
The Court ordered the defendant to pay restitution in the amount of $127,000 to the Department of Agriculture.
The investigation was conducted by the Department of Agriculture, the Huntington Police Department, the West Virginia State Police and the Department of Homeland Security. Assistant United States Attorney Erik Goes handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers
Former Head of Major New York Caviar Distributor Sentenced in Manhattan Federal Court and Will Be Deported for Multi-Million Dollar Customs Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that Italian citizen ISIDORO “MARIO” GARBARINO was sentenced today in Manhattan federal court to time served – approximately four months in prison – and will be deported for unlawfully importing more than 100,000 pounds of Russian and Iranian caviar, valued at more than $10 million, into the U.S. between 1984 and 1987. GARBARINO was first arrested on these charges in July 1987, but fled the country in July 1989 while he was free on bail. He remained a fugitive until his arrest by the U.S. Marshals in September 2012, and ultimately pled guilty in November 2012. GARBARINO was sentenced today by U.S. District Judge Kevin Thomas Duffy.
According to the Complaint, the Indictment, GARBARINO’s plea agreement, statements made in court proceedings, and other public documents:
At the time of his arrest in 1987, GARBARINO was the president and owner of the now-defunct Aquamar Gourmet Imports, Inc. (“Aquamar”), a company that supplied luxury food items, including Russian and Iranian caviar, to prominent New York City gourmet stores such as Zabar’s, and to some of the world’s largest air and cruise lines. At that time, certain Russian and Iranian goods that were imported into the U.S., including caviar, were taxed at a high rate—approximately 30 percent.
Between 1984 and 1987, GARBARINO and Aquamar used several schemes to avoid the tariffs, which were administered according to the value of the goods being imported. For example, GARBARINO would significantly understate the weight and value of the caviar he was importing by placing orders for thousands of pounds of caviar—with a wholesale value of hundreds of thousands of dollars—while declaring to the United States Customs Service that he was importing a small fraction of that amount. In another scheme, GARBARINO would arrange for Russian or Iranian caviar to land at John F. Kennedy International Airport in New York, purportedly for immediate exportation to customers overseas. Immediate exports, which were never supposed to leave the airport, were exempt from U.S. tariffs. GARBARINO, however, would secretly substitute much cheaper American caviar for the expensive Russian or Iranian caviar that had just arrived. He would then export the domestic goods, and unlawfully import and sell the foreign caviar to his U.S. customers. In so doing, GARBARINO avoided paying the required tariffs to the United States for the expensive foreign caviar, and defrauded his international customers who were paying full price for the imported caviar, but were instead receiving the cheaper American caviar. Through these schemes, GARBARINO was able to unlawfully import more than 100,000 pounds of Russian and Iranian caviar into the United States with a then-wholesale value in excess of $10 million.
Prior to today’s sentencing and as a condition of his plea agreement with the Government, GARBARINO, 69, paid $3 million in restitution to the U.S. Customs and Border Protection which represents the duties, penalties, and accrued interest owed for the unlawfully imported caviar described above.
Mr. Bharara thanked the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and its predecessor, the U.S. Customs Service, for their assistance in the investigation.
The case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Edward B. Diskant is in charge of the prosecution.
Former Clinic Owner Pleads Guilty to $3.4 Million Medicaid Fraud SchemeRead the Press Release
Fraudster Bought Luxury Vehicles and Jewelry with Stolen Funds
CHARLOTTE, N.C. – A Charlotte man pleaded guilty today for his involvement in a health care fraud scheme that attempted to defraud Medicaid of at least $3.4 million for sham mental and behavioral health services, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID).
Ronnie Lorenzo Robinson, 36, of Charlotte, pleaded guilty today before U.S. Magistrate Judge David S. Cayer to two counts of health care fraud. At today’s plea hearing, Robinson admitted that from in or about 2007 to in or about 2011, he engaged in a scheme to defraud Medicaid of at least $3.4 million in fraudulent reimbursement payments from false claims submitted to Medicaid. According to filed court documents and statements made in court, Robinson owned and operated Peaceful Alternative Resources, Inc. (PAR), which held itself out as a non-profit provider of mental health and mentoring services and maintained offices in Charlotte, Mooresville and Greensboro, N.C. Robinson and his company defrauded Medicaid by submitting false claims to Medicaid stating that licensed clinicians allegedly employed by PAR had performed services when those clinicians had not. The claimed services, if provided at all, were provided by unlicensed individuals who were not approved by Medicaid to provide such services and, in many instances, the claimed services were not provided at all.
According to filed documents, Robinson and his company misappropriated the Medicaid provider numbers of at least three licensed clinicians who performed some work for PAR. Robinson then used these Medicaid provider numbers to seek reimbursement for services that the licensed clinicians did not perform. Court documents indicate that Robinson obtained Medicaid beneficiary information from other organizations. Although employees associated with PAR sometimes provided services to the Medicaid recipients, these services typically were not provided by licensed professionals and were little more than mentoring services, which Medicaid does not reimburse. Court documents indicate that Robinson attempted to defraud Medicaid of approximately $3.4 million and received approximately $3.1 million in payments.
During the course of the investigation, law enforcement agents seized a 2004 Land Rover Range Rover HSE, a 2007 Chevrolet Suburban, a 2007 Mercedes S550 and a 1 5/8 carat oval ladies diamond ring, purchased with money fraudulently obtained from Medicaid. Agents also seized a classic 1972 Chevrolet Chevelle-Malibu, a 2006 Chrysler 300 and approximately $660,000 in funds in connection with the fraud. Robinson has agreed to forfeit all of these assets as part of his plea.
“This type of blatant abuse of a federally-funded system simply will not be tolerated,” said U.S. Attorney Tompkins. “The money Robinson stole from Medicaid was intended to cover the medical expenses of needy North Carolinians, including children, not to fund the defendant’s penchant for cars and jewelry. My office will continue to hold accountable those who engage in schemes that rip off government health care programs supported by taxpayer dollars.”
“Health care fraud increases costs for everyone and degrades the integrity of our health care system. The FBI is committed to rooting out this type of fraud and holding those accountable who attempt to illegally manipulate the system that so many Americans count on,” said John A. Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“Fraud like this hurts patients who really need care, wastes tax dollars, and drives up health care costs for everyone. Our investigators and attorneys will continue to work with their federal partners to go after health care fraud,” said Attorney General Roy Cooper, who oversees North Carolina’s MID.
At sentencing, Robinson faces a maximum term of 10 years in prison and a $250,000 fine for each count of conviction. In his plea agreement, Robinson has agreed to pay full restitution to Medicaid for any losses resulting from his criminal scheme. The final restitution amount will be determined by the Court at Robinson’s sentencing hearing, which has not been scheduled yet. Robinson remains on bond pending sentencing.
The investigation into Robinson was handled by the FBI and MID. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Former Bowie Union Trustee Sentenced for Stealing over $379,000 of Labor Union FundsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Ava L. Ramey, age 61, of Bowie, Maryland today to two years in prison followed by three years of supervised release for embezzling at least $379,000 from a labor union. Judge Titus also ordered that Ramey pay restitution and forfeiture of $379,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor - Management Standards.
According to her guilty plea, from December 2005 to October 2009, Ramey served first as an assistant trustee and then a trustee for the United Government Security Officers of America Local 21 based in Bowie, Maryland. During that time, for her personal use, Ramey: wrote more than $80,000 in checks from the union account either to herself or to “cash;” purchased more than $70,000 worth of merchandise with the union debit card; withdrew more than $60,000 from the union account at ATMs; withdrew in person or transferred to her personal account more than $100,000 of union funds; and wrote more than $60,000 in checks from the union account to her family members.
In all, Ramey embezzled a total of at least $379,000 from the union.
This law enforcement action is part of President Barack Obama’s 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.
United States Attorney Rod J. Rosenstein thanked the U.S. Department of Labor, Office of Labor - Management Standards for its work in the investigation and praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
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Florida Woman Sentenced for Role in $30 Million Telemarketing Scam That Victimized over 22,000 PeopleRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Erin Todd, 31, of West Palm Beach, Florida was sentenced in federal district court on Friday, January 4, 2013, to 42 months in prison, 5 years supervised release, and ordered to pay a $500 fine and a $100 special assessment fee. Todd was convicted of one count of Conspiracy to Commit Mail and Wire Fraud following a three-day jury trial in September 2012.
The evidence at trial showed that Todd was a low-level telemarketer, referred to as an “opener,” at Creative Vacation Solutions, a timeshare resale telemarketing operation that was based in Palm Beach County, Florida. Todd’s role as an opener was to reach out as an initial contact to timeshare owners and set them up for a string of false representations centered around a promise that Creative Vacation Solutions had a buyer for an owner’s timeshare. Telemarketers, like Todd, then solicited advanced fees of up to several thousand dollars from each victim in purported closing costs that they promised would be refunded to the owner once the closing on the property occurred. Many timeshare owners were falsely told that their closings were scheduled within the next sixty to ninety days. Despite collecting fees from 22,000 victims, these companies did not sell a single timeshare unit. Todd earned only about $5,600 in her five months working as an opener. Additional evidence introduced at sentencing, however, indicated that, after Todd left Creative Vacation Solutions, she and her co-defendant, David Johnson, operated other timeshare resale scams in Florida that targeted some of the same victims as Creative Vacation Solutions. David Johnson pleaded guilty and was sentenced to 3 years in prison on December 14, 2012.
Todd is the nineteenth individual to be sentenced in connection with this Florida-based telemarketing scam operating under the names Universal Marketing Solutions and Creative Vacation Solutions. The scam targeted owners of timeshares throughout the United States and Canada. Todd conspired with Jennifer Kirk, the owner of Universal Marketing Solutions and Creative Vacation Solutions to bilk over 22,000 victims out of $30 million dollars. The scam victimized consumers in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty eight (28) of the thirty eight (38) counties comprising the Southern District of Illinois.
Approximately twenty-nine others have been charged and twenty-three have pleaded guilty in connection with the Creative Vacation Solutions telemarketing scam. The first of whom was Jennifer Kirk, who pleaded guilty to a criminal Information on June 30, 2011. She was sentenced on January 9, 2012, to over 16 years in prison and five years supervised release.
This prosecution follows an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case was handled by Special Assistant U.S. Attorney Katherine Lewis, Assistant U.S. Attorney Nathan Stump, and Assistant U.S. Attorney Bruce E. Reppert.
EMH Regional Medical Center and North Ohio Heart Center <br /> to Pay U.S. $4.4 Million to Resolve False Claims Act AllegationsRead the Press Release
EMH Regional Medical Center (EMH) has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.
EMH is a non-profit community hospital system located in Lorain County, Ohio. During the relevant time period, NOHC was an independent physician group located in Lorain County that practiced at EMH. The settlement resolves allegations that between 2001 and 2006 EMH and NOHC performed unnecessary cardiac procedures on Medicare patients. Specifically, the United States alleged that EMH and NOHC performed angioplasty and stent placement procedures on patients who had heart disease but whose blood vessels were not sufficiently occluded to require the particular procedures at issue.
“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and puts patients at risk. The settlement demonstrates the Department of Justice’s efforts both to protect public funds and safeguard Medicare beneficiaries,” said Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division.
“ Most doctors act responsibly,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “ These few didn't. Patient health and taxpayer dollars have to come before greed.”
This matter was initiated by the filing of a whistleblower complaint under the False Claims Act (FCA). Under the FCA, private citizens can bring suit for false claims on behalf of the United States and receive a share of the recovery obtained by the government. The whistleblower in this matter, Kenny Loughner, was the former manager of EMH’s catheterization and electrophysiology laboratory. As a result of the settlement, Mr. Loughner will receive $660,859 of the United States’ recovery.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion.
The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Civil Division, the Office of the Inspector General of the Department of Health and Human Services Cleveland Field Office and the FBI. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The case is captioned United States ex rel. Loughner v. EMH Regional Medical Center, et al. , Case No. 1:06-cv-2441 (N.D. Oh.)
Delaware Man Sentenced to 97 Months on Fraud and Money Laundering ChargesRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Kyong Ho Kim, age 45, of Newark, Delaware, was sentenced today by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to 97 months imprisonment and full restitution, after being convicted of wire fraud (18 U.S.C. § 1343), and engaging in monetary transactions in property derived from specified unlawful activity (Money Laundering, 18 U.S.C. § 1957).
The defendant solicited and obtained over US $2.2 million from more than eight victims in Delaware and elsewhere, through a fraudulent foreign currency trading scheme. The defendant represented that he was a successful foreign currency trader and that he would invest his victims’ money in foreign currency markets. Meanwhile, the defendant diverted most of the funds into his personal bank accounts. The defendant continued the fraud over a decade by falsifying bank records and sending victims false financial statements, indicating that their investments had grown through foreign currency trading. The defendant spent the diverted funds on personal items such as a high-end Mercedes, a yacht, and a lease on a waterfront home.
U.S. Attorney Oberly said of the sentence, “Fraud schemes targeting individual investors have a devastating impact on the victims’ financial and emotional well-being. This case should send a clear signal that those who commit fraud by representing themselves as so-called investment advisors will face significant penalties.”
This case was prosecuted by Assistant United States Attorney Lauren M. McEvoy, and was investigated by the Federal Bureau of Investigation.
Convicted Felon Pleads Guilty to Federal Charges in Straw-Buying Scheme to Purchase and Stockpile FirearmsRead the Press Release
PROVIDENCE, R.I. – Peter A. Laporte, 47, of Warwick, a four-time convicted felon who helped orchestrate the straw-purchase of 10 firearms and a significant quantity of ammunition from a federally licensed firearms dealer in Wyoming, R.I., pleaded guilty today in federal court to being a felon in possession of a firearm.
Laporte admitted to the court that he orchestrated the purchases during the summer of 2012, because he wanted to stockpile firearms, ammunition and other supplies in preparation for “doomsday.” Laporte was arrested in August 2012, as he exited the firearms dealer’s business.
Laporte’s guilty plea was announced by United States Attorney Peter F. Neronha; Guy N. Thomas, Special Agent in Charge ATF’s Boston Field Office; Richmond Police Chief Elwood M. Johnson, Jr.; and Warwick Police Chief Colonel Stephen M. McCartney.
At today’s change of plea hearing, Laporte admitted to the court that on July 30, 2012, he accompanied his wife to the firearms dealer and advised her on several purchases of firearms which she made, including four 9mm pistols, a .357 revolver, two semi-automatic assault rifles, a Remington 30-6 rifle, two shotguns and more than 750 rounds of ammunition.
According to information presented to the court, two weeks after ordering the firearms and ammunition, Laporte and his wife returned to the gun shop to pick-up the firearms. Laporte provided a cash payment totaling $6,878.63. He returned to the dealer again on August 22, 2012, to pick-up ammunition that was previously ordered. He was arrested as he exited the business.
Nine of the firearms, 1,000 rounds of assault rifle ammunition and other items were seized by federal agents on August 22, 2012, during an authorized search of a garage and trailer in Warwick rented by Laporte. Court records indicate that a search of Laporte and his wife’s Warwick residence resulted in the seizure of the 10th firearm purchased on July 30 and another rifle.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. United States Attorney Peter Neronha acknowledged the assistance of the Richmond and Warwick Police Departments in the investigation of this matter and the arrest of the Laporte.
Contact: 401-709-5357
[email protected]Company and Its President Agree to $5 Million Settlement over Billing for Linguists Sent into War ZonesRead the Press Release
PHILADELPHIA - Worldwide Language Resources, Inc., and its president, Lawrence P. Costa, have agreed to pay $5 million to resolve civil liabilities under the False Claims Act for allegedly providing untested linguists to the United States Department of Defense operating in overseas combat zones and for other military venues. This settlement, announced by U.S. Attorney Zane David Memeger, also resolves allegations that Worldwide which, at the time, was operating in Maine, billed the government for linguist services that were not provided.
The untested linguists were provided under two contracts. A 1999 Contract was a “requirements” contract that obligated the government to fill all of its requirements for linguist services exclusively from Worldwide; the government could not acquire such services from any other entity or person. The 2003 Contract with Worldwide provided for a lower price than that previously provided under the GSA Contract for certain services, and was designed to reduce the costs to the government of acquiring those services. Both the 1999 and 2003 Worldwide contracts included qualification requirements for the proficiency of the linguists supplied by Worldwide pursuant to the delivery orders, including requirements that each linguist take certain proficiency tests and achieve certain test scores in order to be acceptable to work under the contracts.
The government alleges that Worldwide knowingly supplied untested linguists under the
1999 Contract and the 2003 Contract until March 2004, despite its knowledge that both contracts included specific testing requirements. The government alleges that: Worldwide failed to test its linguists; failed to notify any government employee that it was not testing its linguists; continued to supply untested linguists to the government to serve in overseas combat areas and other military venues; and continued to invoice the government for the services of these untested linguists and certify its compliance with the contractual testing requirements. Worldwide did not know if its untested linguists were adequate to the assigned tasks.Without the testing, the government was asked to pay for linguists who were untested in the subject language and/or English who may have had inadequate or no proficiency, potentially obligating the government to pay for a useless “service,” or services which were insufficient to meet the needs of military personnel.
In addition, the government alleges that Worldwide: billed the government for linguist
services that were not provided at all; claimed payment for linguists’ services for more than the number of days in the billing period; invoiced the government for services of a linguist who was incapacitated and unable to provide services; invoiced additional man-days that were not worked by any linguists; and invoiced for the services of one linguist twice under two separate delivery orders for work performed only once.The United States’ investigation included whistleblower allegations brought by former Worldwide employees Brian Remmey and Khalil Nouri, who filed lawsuits on behalf of the United States under the whistleblower provision of the False Claims Act. Remmey and Nouri will share $925,000 from the settlement amount.
Assistant United States Attorneys Susan Dein Bricklin and Viveca D. Parker handled the civil investigation and settlement negotiations. Auditor Dawn Wiggins of the United States Attorney’s Office for the Eastern District of Pennsylvania contributed significantly to both the investigation and negotiation of the government’s claims. The Department of Defense Criminal Investigative Service and Contract Audit Agency, and the Naval Criminal Investigative Service also participated in the investigation.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Closing Attorney Charged with Wire Fraud in Mortgage Loan SchemeRead the Press Release
BIRMINGHAM – Federal prosecutors have charged a Birmingham real estate lawyer with wire fraud in connection with a nearly $1 million mortgage fraud scheme, announced U.S. Attorney Joyce White Vance.
The U.S. Attorney’s Office charged KELVIN LEONARD DAVIS, 41, with four counts of wire fraud for knowingly submitting false mortgage documents and statements to various lenders in order to obtain approval for mortgage loans. At the time of the fraudulent transactions, from October 2007 to January 2012, Davis served as the closing attorney on each of the fraudulent loan transactions.
Davis has agreed to plead guilty to the charges and to forfeit $269,335 to the government as proceeds of the illegal activity.
The charges against Davis were filed in October. Documents in the case were unsealed last week in U.S. District Court.
According to the four-count information charging Davis, and his plea agreement with the government, he carried out his fraud as follows:
Davis submitted false statements with loan documents in order to obtain approval for mortgage loans that would, otherwise, not have been approved. In many instances, Davis, while serving as closing attorney, would use his trust account to provide money to the borrower when a mortgage loan was closing. Davis would recover the money by subtracting the amount he provided from the proceeds he issued to the seller. Davis also would assess the seller a fee, ranging from $1,000 to $6,000, and make checks for the fee payable to Peaceful Valley Homes, a corporation he had formed. Total losses to the various lenders as a result of Davis’ fraud were nearly $1 million.
The maximum sentence for each count is 20 years in prison and a $1 million fine.
The FBI and the Department of Housing and Urban Development, Office of Inspector General, investigated the case, which Assistant U.S. Attorney Robin Mark is prosecuting.
Cando Man Sentenced for Possession of Child PornographyRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 7, 2013, Jerry W. Gibson, 46, Cando, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials involving the sexual exploitation of minors. Gibson pleaded guilty to the charge on Aug. 22, 2012.
Judge Hovland sentenced Gibson to serve six years and six months in federal prison, to be followed by five years of supervised release. Gibson must register as a sex offender. Gibson was also ordered to pay a $100 special assessment to the Crime Victim’s Fund.
From an unknown time up until Jan. 19, 2012, Gibson possessed images on his home computer which depicted minors engaged in sexually explicit conduct. Gibson admitted using the internet to receive and possess those images.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency, the Federal Bureau of Investigation and the N.D. Bureau of Criminal Investigation.
This case was brought as a 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 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.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Cabell County Doctor Sentenced to 2 Years in Prison for Federal Drug CrimeRead the Press Release
Doctor’s prescribing practices connected to numerous deaths; sentence is four times the maximum recommended by federal guidelines
HUNTINGTON, W.Va. –United States Attorney Booth Goodwin today announced that a Cabell County doctor was sentenced to two years in prison for violating federal drug control laws. Dr. Anita Dawson, 55, of Milton, W.Va., previously pleaded guilty in July to aiding and abetting the illegal acquisition of prescription drugs by misrepresentation, fraud, forgery, deception and subterfuge. The sentence is four times the maximum sentence recommended under federal sentencing guidelines, which called for a sentence of zero to six months.
Dawson admitted that from July 2006 until May 21, 2009, she wrote prescriptions for addictive pain medications to an individual identified by the initials E.B. Dawson admitted she prescribed a total of nearly 6,000 pills containing oxycodone and more than 220 pills for the painkiller Endocet. Dawson further admitted that at the time she wrote the prescriptions for E.B., she knew that the patient was seeking pain medication for an addiction and other inappropriate reasons.
Dawson and E.B. entered into a pain management agreement that required the patient to submit to drug tests and pill counts. Despite E.B.’s repeated violations of the pain management agreement, Dawson admitted she continued to prescribe pain medication.
At today’s sentencing hearing, United States District Judge Robert C. Chambers heard from family members of three people killed in 2009 when their vehicle was hit by another vehicle driven by a patient of Dawson’s. The patient was addicted to prescription drugs and was under the influence of prescription medication at the time of the crash. In imposing Dawson’s sentence, Judge Chambers also noted that nine other patients of Dawson’s had died of prescription drug overdoses.
“It’s hard to put into words the devastating impact of this defendant’s crimes,” said U.S. Attorney Goodwin. “My heart goes out to the families who spoke at today’s hearing and to everyone who lost a loved one because of Dr. Dawson. Judge Chambers was right: This woman’s behavior is shocking, and this case should send a message to other doctors who abuse their prescription power.”
“The vast majority of physicians prescribe responsibly,” Goodwin continued, “but even a handful of bad doctors can flood our communities with illegal pills. Every time we put a law-breaking doctor out of business, it’s a big step toward getting this problem under control.”
In sentencing Dawson, Judge Chambers said that doctors who violate prescription laws need to be held accountable for their role in the “horrible problem” of prescription drug abuse. Judge Chambers said he intended the sentence to send a warning to doctors that they will be held accountable for their prescribing practices.
Dawson’s medical license was suspended by the West Virginia Board of Osteopathy in April 2010, on the same day federal and state investigators executed a search warrant at her Milton office. Following the search and the suspension of her medical license, Dawson voluntarily gave up her license permanently.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The investigation was conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Drug Enforcement Administration, with assistance from the West Virginia State Police and the Cabell County Sheriff’s Office. Assistant United States Attorney Steven Loew handled the prosecution.
Brothers from Espanola Arraigned on Federal Conspiracy and Theft of Postal Property ChargesRead the Press Release
ALBUQUERQUE – This morning, Joseph Torrez, 24, and his brother Ivan Chavez, 18, both of Espanola, N.M., were arraigned on a two-count indictment charging them with conspiracy and theft of postal property offenses. Both men entered not guilty pleas during this morning’s proceedings.
Count 1 of the indictment, which was filed on Dec. 19, 2012, charges Torrez and Chavez with conspiracy to commit theft of postal property. Count 2 charges Torrez alone with theft of postal property. At the time of the offenses alleged in the indictment, Chavez was employed as a contract driver by the U.S. Postal Service in Rio Arriba, County.
The indictment alleges that Chavez conspired with Torrez to stage a robbery at a U.S. Post Office in Rio Arriba County. It further alleges that, during the staged robbery on Nov. 19, 2012, Torrez stole $7,651 in postal remittances from the Post Office. According to the indictment, Chavez reported the staged robbery and falsely claimed that he had been assaulted by the “robber,” when in fact no assault or robbery had been committed and, instead, Torrez committed a theft of postal property with Chavez’s assistance.
U.S. Attorney Kenneth J. Gonzales said that Torrez and Chavez were arrested on a criminal complaint on Nov. 27, 2012, after investigation revealed that the Nov. 19, 2012 robbery of the Fairview Station Post Office in Espanola was staged.
If convicted on the conspiracy charge, Torrez and Chavez each face a maximum penalty of three years of imprisonment. Torrez also faces a maximum penalty of three years of imprisonment if convicted on the theft charge. The two men are released on conditions of release and pretrial services supervision pending trial.
The case was investigated by the U.S. Postal Inspection Service with assistance from the Espanola Police Department and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Boise Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
BOISE – Devin Edward Montgomery, 33, of Boise, Idaho, pleaded guilty today in United States District Court to a single count information charging him with unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on April 3, 2012, federal search warrants were served on a residence located on Broadway Avenue in Boise, Idaho, which served as the clubhouse for the Slayers gang. The search located a Mossberg 12 gauge shotgun inside a safe. According to the plea agreement, Montgomery admitted that he purchased the firearm on August 18, 2011, from Impact Guns in Boise. Montgomery further admitted that at the time he possessed the firearm, he was an unlawful user of a controlled substance and thereby prohibited under federal law from possessing any firearms. Montgomery has charges pending in state court, including delivery of a controlled substance, recruiting a criminal gang member, grand theft by extortion, and aggravated assault. Montgomery agreed pursuant to the plea agreement to forfeit the shotgun.
The federal charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for March 26, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Boise Police Department.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Biloxi Man Sentenced on Federal Firearms ChargeRead the Press Release
Gulfport, Miss - John Buster Jones, 24, of Biloxi, was sentenced to 41 months in prison followed by three years of supervised release for making a false statement to a firearms dealer to purchase a firearm, U. S. Attorney Gregory K. Davis announced today.
Chief U.S. District Judge Louis Guirola, Jr. also ordered Jones to forfeit one Roman/Cugir, WASR 10 model, 7.62 caliber rifle with two extended magazines and one Glock, model 27, .40 caliber pistol.
This case was part of an undercover operation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Annette Williams.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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