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Friday 4 January 2013
McLaughlin Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Jody Charles Red Bird, age 33, of McLaughlin, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to an indictment that charged him with Involuntary Manslaughter. The maximum penalty upon conviction is
8 years' imprisonment, a $250,000 fine, or both, and a period of supervised release of 3 years.The conviction stems from an incident on June 12, 2012, when Red Bird and others were drinking alcohol in Timber Lake, while waiting for work to be done on a vehicle. Following completion of the maintenance, Red Bird and others traveled from Timber Lake to Little Eagle, and eventually decided to drive to McLaughlin. Red Bird was driving the vehicle, and while en route to McLaughlin, he lost control of the vehicle and slid into the ditch abutting the opposing lane of traffic. The vehicle rolled several times, and both Red Bird and the victim were ejected. As a result of the injuries sustained in the accident, the victim died. At the time of the accident, Red Bird had a blood alcohol concentration over three times the legal limit.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 15, 2013. Red Bird was remanded to the custody of the U.S. Marshal pending sentencing.
McLaughlin Man Pleads Guilty to Felon in Possession ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Jess Porras, age 52, of McLaughlin, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to Count I of an Indictment that charged him with being a Felon In Possession of a Firearm. The maximum penalty upon
conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.The conviction stems from an incident on December 29, 2011, when the Defendant, while acting as a guide on a deer hunt on tribal land, grabbed a gun from a hunter and shot a deer. The Defendant was previously prosecuted in 1994 and is a convicted felon.
The investigation was conducted by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for April 29, 2013. The defendant was released on bond pending sentencing.
Maryland Man Sentenced to 36 Months for Transporting Women for Interstate Prostitution RingRead the Press Release
ALEXANDRIA, Va. – Marcos Sanchez Hernandez, also known as “Marquito,” 37, an illegal alien from Mexico who lived in Riverdale, Md., was sentenced today to 36 months in prison, followed by two years of supervised release, for transporting more than 100 women from other states to engage in commercial sex in Virginia.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement sentencing by United States District Judge Gerald Bruce Lee.
“For years, Sanchez Hernandez ran a sex trafficking ring that reached into our communities here in Virginia and out to our neighboring states,” said U.S. Attorney MacBride. “Today, he learned what we hope other sex traffickers are rapidly discovering – sex trafficking is not a viable business enterprise in the Commonwealth of Virginia, and those who engage in it will face lengthy prison time when caught.”
“Sanchez Hernandez profited for years from his multi-state sex trafficking ring,” said HSI SAC Torres. “HSI DC does not tolerate the exploitation of others and is committed to bringing to justice those who are involved in the sex trafficking industry.”
Sanchez Hernandez pled guilty on Oct. 15, 2012, to conspiracy to transport women to engage in prostitution. According to court records, from 2005 through July 2012 Sanchez Hernandez was part of a network that transported women to engage in commercial sex acts in Delaware, Maryland, the District of Columbia, and various locations in Virginia, including Fairfax County, Prince William County, Alexandria, Arlington, Newport News, Norfolk, and Virginia Beach. He admitted to transporting more than 100 women and selling their bodies in 10- to 15-minute increments for $30.
In 2010, Sanchez Hernandez took over leadership of the enterprise and trained an employee where to drive the prostitutes, how to collect proceeds, and how to avoid law enforcement. He advertised the prostitution business by handing out business cards at Spanish restaurants, check cashing stores, construction sites and day laborer sites. Eventually, the proceeds of the operation were sent to the enterprise’s former leader in Mexico.
This case was investigated by the Transnational Gang Unit of Homeland Security Investigations, which participates in the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes. From FY2011 to the present, 46 defendants have been prosecuted in 27 cases in the Eastern District of Virginia for human trafficking and trafficking-related conduct involving at least 32 victims.
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.Maryland Man Pleads Guilty to Enticing A Child and Conspiring to Distribute HeroinRead the Press Release
ALEXANDRIA, Va. – Robert Chin, 65, of Silver Spring, Md., pleaded guilty today to conspiring to distribute heroin to young women in return for sexual favors, including enticing a child into engaging in sexual activity.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; and Barry Barnard, Acting Chief of the Prince William County Police Department, made the announcement after the plea was accepted by United States District Judge T. S. Ellis III.
Chin pleaded guilty to enticement of a minor and conspiracy to distribute heroin, which both carry a mandatory minimum of 10 years and a maximum penalty of life in prison. Sentencing is scheduled for April 5, 2013. Chin will also be required to register as a sex offender.
According to a statement of facts filed with his plea agreement, from 2007 until his arrest in November 2012, Chin conspired with others to bring heroin and oxycodone into the Washington Metropolitan Area. Chin would then distribute the drugs to young women, including at least one minor, in return for sexual favors. In June 2012, Chin filmed at least some of the encounters with the minor girl in which she performed a number of sex acts with different individuals after receiving drugs from Chin.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Prince William County/Manassas City/Manassas Park Narcotics Task Force. Assistant United States Attorney John Eisinger is prosecuting the case on behalf of the United States.
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.”
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.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of New Jersey Resident for Kidnapping ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of MICHAEL VANHISE for conspiracy to commit kidnapping. VANHISE allegedly agreed to pay co-conspirator Gilberto Valle, who was an active-duty New York City Police Officer at the time, to kidnap a woman in New York (the “Victim”), and to bring her to his home in New Jersey, where she would be raped. He also allegedly participated in planning the kidnapping of a female minor. VANHISE was arrested by FBI special agents this morning at his residence in Hamilton, New Jersey, and will be presented later today before U.S. Magistrate Judge Andrew J. Peck in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the complaint, Michael Vanhise engaged in conduct that reads like a script for a bad horror film, but fortunately, neither he nor his co-conspirators were able to act out the twisted conspiracies described in the complaint in real-life. His arrest today is the second in this bone-chilling case, but we are not finished.”
FBI Assistant Director-in-Charge George Venizelos said “The seriousness of the alleged conspiracy is self-evident. No effort to characterize the defendant’s actions is necessary. The factual allegations more than suffice to convey the depravity of the offense.
According to the allegations in the Complaint filed yesterday in Manhattan federal court, and other public documents:
In a February 2012 email conversation, VANHISE and Valle negotiated and agreed that Valle would kidnap the Victim for $5,000. In those conversations, VANHISE and Valle planned for Valle to render the Victim unconscious, bind her hands and feet, gag her, stuff her into a large suitcase, and deliver her to VANHISE’s home. Valle assured VANHISE that the Victim would be delivered alive, so that he could rape her.
VANHISE also emailed photographs of a female minor, whom VANHISE knew well, to other co-conspirators (“CC-2” and “CC-3”). CC-2 and CC-3 both expressed interest in kidnapping the child, and he provided them with the purported address of the girl, which was in close proximity to the girl’s actual home address.
VANHISE, 22, is charged with one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
Valle, 28, of Forest Hills, New York, was charged in October 2012 with one count of kidnapping conspiracy, and one count of intentionally and knowingly accessing a computer without authorization, and exceeding his authorized access, and thereby obtaining information from a department and agency of the United States. His case remains pending.
Mr. Bharara praised the outstanding investigative work of the FBI. He added that the investigation is continuing.
The prosecution of this case is being handled by the Office's Violent Crimes Unit. Assistant United States Attorneys Hadassa Waxman and Randall W. Jackson are in charge of the prosecution.
The charges against VANHISE and Valle are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Michael Vanhise Complaint
Man Sentenced to More Than 6 Years in Prison for Third Illegal Reentry and Failure to Register as A Sex OffenderRead the Press Release
DAVENPORT, IA – On January 4, 2013, Osvaldo Montes Olarte, age 36, was sentenced to 77 months of imprisonment for illegally reentering the United States and for failing to register as a sex offender, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Olarte to three years of supervised release for the immigration offense and seven years of supervised release for his failure to register as a sex offender.
Olarte illegally entered the United States in 1995. Olarte was convicted of Sexual Abuse in the Third Degree in Iowa in 2001 and he was deported in 2003 after his incarceration. As a result of his sexual abuse conviction Olarte was required to register as a sex offender. Olarte reentered the United States and was deported again in both 2006 and 2010. Olarthe thereafter illegally reentered the United States for the third time and returned to Iowa. Olarte knowingly failed to register as a sex offender upon his return to Iowa.
This case was investigated by the United States Marshals Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Madison Woman Who Made False Statements About Use of Federal Funds Sentenced to Federal PrisonRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that AMY KUHNER, 55, formerly of Madison, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for making false statements about her use of federal grant monies. KUHNER also was ordered to pay a $5,000 fine.
“At a time when every dollar of federal spending is precious, we will not hesitate to act to protect the money taxpayers provide for worthy causes,” said U.S. Attorney Fein. “Any failure to fully and accurately account for such funds will be subject to investigation, and where merited, vigorous prosecution.”
“Individuals who handle federal grant funds have an obligation to the government and taxpayers to exercise the utmost care in accounting for those funds,” said Susan J. Waddell, Special Agent in Charge of the Boston Regional Office of the Office of the Inspector General for the U.S. Department of Health and Human Services. “The most basic and obvious obligation is simply to tell the truth about how those funds are used. This prosecution serves notice that where appropriate, we will not hesitate to investigate and prosecute those who violate that basic obligation.”
According to court documents and statements made in court, KUHNER was the Executive Director of Sunshine House, an organization formed for the purpose of constructing a facility in Madison to care for seriously ill children. In September 2001, Sunshine House received an $836,190 federal grant to pay part of the construction costs of the center from the Health Resources Services Administration (“HRSA”), a program of the U.S. Department of Health and Human Services. As Executive Director of Sunshine House, KUHNER was the only person who handled the grant money and exercised exclusive control over the use of the grant funds.
In July 2007, after all of the grant funds had been drawn down, HRSA asked Sunshine House to provide documentation of costs incurred by Sunshine House during the grant period. In pleading guilty, KUHNER admitted sending to HRSA documents that falsely stated that Sunshine House had incurred architectural and engineering costs to date in the amount of $594,225. The documents also omitted the fact that, from September 2001 through September 2006, KUHNER had received a gross salary of $417,932 and health insurance benefits totaling $22,294, and that most of this salary and benefits had been paid using grant funds.
In addition, KUHNER used grant funds to pay her salary in 2007 and 2008, after the grant had closed.
On July 25, 2012, KUHNER pleaded guilty to one count of making false statements about her use of federal funds.
This investigation was conducted by special agents from the Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney David J. Sheldon and Auditor Susan Spiegel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Last Defendant Is Sentenced to the Statutory Maximum Term of Imprisonment in Case Involving W Financial Group’s $17 Million FraudRead the Press Release
Plano Father and Son Currently Serving Federal Prison Sentences for Roles in the Fraud
DALLAS — Adley Husni Abdulwahab, 37, was sentenced today by U.S. District Judge Barbara M. G. Lynn to the statutory maximum sentence of 10 years in federal prison for his role in an investment fraud scheme that he and two other defendants ran from 2006 - 2007 in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Abdulwahab was also ordered to pay nearly $13 million in restitution, jointly and severally with two other defendants who were charged in a related separate case, to the more than 175 victims they had defrauded, and he was ordered to forfeit any proceeds from the crime.
In pronouncing the sentence, Judge Lynn noted that this was a “horrible crime” and “a lot of elderly people lost their life savings.” Judge Lynn ordered that this sentence be served consecutively to the 60-year federal prison sentence that Abdulwahab is currently serving for his role in another securities fraud scheme out of the Eastern District of Virginia.
In the Northern District of Texas case, Abdulwahab, aka Adley H. Wahab, pleaded guilty in March 2012 to one count of engaging in a monetary transaction in property derived from unlawful activity (securities fraud). In related cases, Michael Wallens, Sr., formerly of Nantucket, Massachusetts, and his son, Michael Wallens, Jr., formerly of Plano, Texas, each pleaded guilty in 2010 to one count of securities fraud. Wallens, Sr. was sentenced to 54 months in prison and Wallens, Jr. was sentenced to 60 months in prison.
According to documents filed in the case, Abdulwahab and the Wallens’ offered and sold to investors Collateral Secured Debt Obligations (CDSOs), issued by W Financial Group. CDSOs are promissory notes and a type of security also known as an investment contract. Investors contributed money to a common enterprise, and in exchange, they expected to earn investment returns from the entrepreneurial efforts of persons associated with W Financial. Abdulwahab and the others defrauded investors by deceiving them about the safety of the CSDOs and the ways in which money invested in CSDOs was used.
Acting personally, and through sales agents, Abdulwahab, Wallens, Sr. and Wallens, Jr. offered and sold CSDOs with a total face value of more than $17 million to approximately 180 investors. Investors received several million dollars in payments from W Financial Group in return for their investments, but ended up losing more than $12 million.
Through the printed offering materials and other communications, Abdulwahab, Wallens, Sr. and Wallens, Jr. misrepresented a number of material facts to investors. For instance, they claimed that the insurers Lloyd’s of London and Republic Group “reinsured” the CSDOs, when in fact, as they well knew, the CDSOs were not insured. They also claimed that W Financial Group would enter into a “relationship of trust” with each investor, in which W Financial Group would comply with all the obligations of a fiduciary. In reality, however, as they well knew, they intended to betray and had betrayed the investors’ trust by using investor money for their own personal benefit, such as purchasing Wallen Sr.’s used car dealership from him; purchasing residential lots; and investing in a home building company and a power company.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/
The cases were investigated by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorney Alan M. Buie was in charge of the prosecutions.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 47-year-old Beaumont, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Wilburn Odom pleaded guilty on Aug. 7, 2012 to possession of child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia Crone.According to information presented in court, on Oct. 28, 2010, federal officials conducted a search warrant at Odom’s residence in Beaumont, Texas. Several computers and digital storage were seized during the search and found to contain more than 140 videos and more than 79 images of child pornography. Some of the material would be considered sadistic or masochistic and some depicted prepubescent children under the age of 12. Odom was indicted by a federal grand jury on May 16, 2012.
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This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by ICE/HSI, Beaumont Police Department, and Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Irish National Sentenced, Faces Deportation Proceedings for Falsely Representing U.S. CitizenshipRead the Press Release
PROVIDENCE, R.I. – Denis Quirke, 37, an Irish national, will be turned over to immigration officials for deportation proceedings after being sentenced today by U.S. District Court Judge William E. Smith to time served in federal prison for falsely representing to the government that he was a U.S. citizen when he applied for a Rhode Island identification card from the Rhode Island Department of Motor Vehicles in December 2011. Quirke has been detained in federal custody since his arrest on August 31, 2012.
Quirke’s sentence was announced by United States Attorney Peter F. Neronha; Todd Ziccarelli, Special Agent in Charge of the New England Field Office of the U.S. Department of State, Diplomatic Security Service; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
On October 19, 2102, Quirke pleaded guilty to an information charging him with one count each of false claim to United States citizenship and fraudulent use of a Social Security number. He admitted to the court that he misrepresented U.S. citizenship to the Rhode Island Department of Motor Vehicles when he presented the Social Security number of another person as proof of U.S. citizenship in an effort to gain a Rhode Island identification card.The matter was investigated by the U.S. Department of State, Diplomatic Security Service; and Social Security Administration, Office of the Inspector General/Office of Investigations.
The case was prosecuted by Assistant U.S. Attorneys Richard W. Rose and ZechariahContact: 401-709-5357
[email protected]Hyannis Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Boston - A Hyannis man was sentenced yesterday for soliciting and recording underage girls engaged in sexually explicit conduct.
Kevin McNicol, 24, was sentenced by U.S. District Judge Douglas P. Woodlock to 15 years in prison to be followed by seven years of supervised release, including conditions prohibiting unsupervised contact with minors and unapproved Internet access for charges of the sexual exploitation of a child for the transmission of child pornography.
In March 2011, a website filed a cyber tip with the National Center for Missing and Exploited Children (NMCEC). An online user of the website had uploaded an image of suspected child pornography, specifically an image depicting a minor Asian girl, approximately 10-years-old, engaged in simulated oral sex. Law enforcement traced this posting back to McNicol at his residence in Hyannis.
In May 2011, a search warrant was executed at McNicol’s address where law enforcement located child pornography on a computer. Specifically, investigators observed several video files that depicted minor females exposing their genitals and/or engaging in sexual acts.
Forensic analysis later revealed that McNicol recorded underage and adult females engaging in such acts via the Internet. McNicol engaged the girls in web chats, whereupon he would solicit them to expose their breasts, anus, and/or vagina and ultimately engage in sexually explicit conduct for his viewing and recording. Law enforcement recovered 92 such video files, the majority of which depicted as many as 78 underage females. At least nine videos, depicting approximately eight different young girls, clearly meet the legal definition of child pornography and the remainder constitute either child pornography or child erotica.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The matter was investigated by the Massachusetts Internet Crimes Against Children Task Force (ICAC) including Massachusetts State Police, Barnstable Police Department, Barnstable County Sheriff’s Office, Yarmouth Police Department, and the U.S. Postal Inspection Service. In coordination with the Cape and Islands District Attorney’s Office, the case was prosecuted by Assistant U.S. Attorneys Michael I. Yoon and Stacy Dawson Belf.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from 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.projectsafechildhood.gov/.
Gail B. Geiger Is Appointed Acting U.S. Trustee for Alaska, Idaho, Montana, Oregon, WashingtonRead the Press Release
WASHINGTON – Gail B. Geiger has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Alaska, Idaho, Montana, Oregon, and Washington (Region 18), effective on January 5, 2013, the Executive Office for U.S. Trustees announced today. She replaces Robert D. Miller Jr., who is retiring after nearly 25 years with the U.S. Trustee Program (USTP), including the past two and a half as U.S. Trustee.
Prior to her appointment as Acting U.S. Trustee, Ms. Geiger served as the Assistant U.S. Trustee in the Eugene, Ore., office. She has also served as Special Assistant to the Office of the General Counsel in the Executive Office for U.S. Trustees (EOUST) in Washington, D.C., coordinating USTP enforcement activity relating to mortgage servicers and other creditors, and as Associate General Counsel for Consumer Practice in the EOUST's Office of the General Counsel, advising USTP field offices on consumer bankruptcy issues. In October 2011, she was part of a team of USTP employees who received the Attorney General's Award for Distinguished Service for their work on the $25 billion National Mortgage Settlement. Other assignments in the USTP include serving as Acting Assistant U.S. Trustee in Riverside, Calif.; a Trial Attorney in Seattle; and Attorney in Charge in Agana, Guam.
Before joining the USTP in 1990, Ms. Geiger practiced law with a Seattle law firm and served as an Assistant Attorney General for the Commonwealth of the Northern Mariana Islands. Ms. Geiger received her law degree cum laude from Willamette University Law School in Salem, Ore., and her undergraduate degree from Gonzaga University in Spokane, Wash.
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 18 is headquartered in Seattle, with additional offices in Spokane, Wash.; Anchorage, Alaska; Boise, Idaho; Eugene and Portland, Ore.; and Great Falls, Mont.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Founder and President of Venture Development Associates Inc. Sentenced to 15 Months in Prison for Wire FraudRead the Press Release
TRENTON, N.J. – The founder and president of Venture Development Associates Inc. (“VDA”), a Farmingdale, N.J., company that presents itself as a provider of corporate financing, was sentenced today to 15 months in prison for defrauding an Illinois man out of nearly $50,000, U.S. Attorney Paul J. Fishman announced.
Michael Peniston, 54, of Farmingdale, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an Information charging him with one count of wire fraud in connection with obtaining nearly $50,000 in a false investment scheme from a victim who resided in La Grange, Ill. As part of his plea agreement, Peniston also agreed to pay back $199,169 to a total of four victims. Judge Thompson imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
In February 2008, Peniston, through VDA, presented an agreement to the victim that falsely represented that Peniston would use the victim’s capital to acquire “via lease procedure” a “bank instrument” valued at 500,000,000 Euros. The agreement falsely stated that Peniston would use this bank instrument to purchase “Medium Term Notes” that he would sell at a profit, and that he would pay half the profits to the victim investor. That month, in reliance on these false promises, the purported investor made three wire transfers totaling almost $50,000 to a VDA bank account controlled by Peniston.
After these transfers, Peniston and VDA continued to falsely communicate with the investor that the transactions for Medium Term Notes were imminent, and, later, that they had taken place. Later in February, Peniston promised the Illinois investor a $37.4 million payment per week over a period of 40 out of 56 weeks. In April 2008, Peniston sent a letter to the victim, stating that the “transaction” had been concluded and the funds had been forwarded to the Bank of New York.
Peniston never acquired a “bank instrument,” nor any Medium Term Notes. Instead, he spent the investor’s money on personal expenditures.
In late July 2011, Peniston again communicated with the Illinois investor, promising him restitution. To follow up that communication, Peniston faxed the victim a copy of a check for $200,000 and a shipping label, to make it appear that Peniston was providing these funds to an attorney for payment to the victim. Peniston admitted that he made these communications knowing that they were false.
In addition to the prison term, Judge Thompson sentenced Peniston to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: David Schafer Esq., Assistant Federal Public Defender, TrentonFormer Prince George’s County, Maryland, Correctional Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
Anthony McIntosh, a former correctional officer at the Prince George’s County Detention Center, in Upper Marlboro, Md., today pleaded guilty to obstruction of justice for providing false information about the circumstances surrounding the in-custody death of Ronnie White on June 29, 2008. White, at the time of his death, was being detained on charges related to the death two days earlier of a Prince George’s County police officer.
McIntosh, 49, of Brooklyn, N.Y., pleaded guilty to a violation of 18 U.S.C. § 1519 for providing false information in a witness statement he submitted to a police detective investigating White’s in-custody death. McIntosh admitted during his guilty plea that when he wrote his witness statement, he omitted material information that was truthful, and included information that he knew was false. Specifically, McIntosh claimed in the false witness statement that another officer had discovered White unresponsive in his single-occupant cell and had then summoned McIntosh to the cell. During the guilty plea, McIntosh admitted that, in actuality, he had been the first correctional officer to find White unresponsive in the cell, and had failed to call a medical emergency signal as required by the Department of Corrections. McIntosh also admitted that he included in his statement the false claims that he never moved Ronnie White and that he “didn’t know what was going on” when his partner told him that White appeared to be unresponsive.
“Instead of lawfully carrying out his critical public safety responsibilities, Mr. McIntosh used his position to obstruct the search for the truth,” said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “The Justice Department will continue to vigorously prosecute officers who cross the line and engage in criminal misconduct.”
McIntosh faces a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is set for April 8, 2013, before U.S. District Judge Alexander Williams Jr.
The case was investigated by the Baltimore Division of the FBI and was prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Ali Ahmad of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
Former Police Officer in New Town, North Dakota, Arrested on Federal Civil Rights ViolationRead the Press Release
The Justice Department announced today that Lindrith Tsoodle, 57, a former officer with the Three Affiliated Tribes Police Department, was apprehended and arrested on the Rocky Boy Reservation in Montana yesterday in relation to his indictment on civil rights and obstruction violations.
Tsoodle was indicted on Dec. 13, 2012. The indictment alleges that, on Dec. 6, 2010, Tsoodle, while acting in his capacity as a police officer, assaulted “T.K.” during an arrest while T.K. was handcuffed, thereby violating his civil rights. The indictment alleges that Tsoodle slammed T.K. against a wall, excessively tightened his handcuffs, shoved him into a police car, used Oleoresin Capsicum spray on him, and struck him repeatedly, both with his body and with a baton. The indictment further charges that T.K. suffered bodily injury as a result of Tsoodle’s use of excessive force.
According to the indictment, following the assault on T.K., Tsoodle attempted to convince a witness not to report the incident to other law-enforcement officials and lied to a federal agent about the assault.
Tsoodle is also charged with assaulting “S.L.” during a separate arrest. The indictment alleges that, on Nov. 20, 2010, while S.L. was in handcuffs, Tsoodle twisted his neck, shoved him to the ground, and kneed him in the chest, thereby violating his civil rights.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the North Dakota Division of the FBI and is being prosecuted by Special Litigation Counsel Gerard V. Hogan and Trial Attorney Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Former Police Chief Admits Accepting Cash in Return for Protecting Drug Deals, Purchasing Restricted Police EquipmentRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., pleaded guilty in federal court to charges of violating the Hobbs Act, United States Attorney David J. Hickton announced today.
Donald Abraham Solomon, 56, pleaded guilty to three counts before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Solomon was the Chief of Police of East Washington Borough, Pa. He received payments from a purported drug dealer, who was an undercover FBI agent, to protect drug shipments and to purchase law enforcement restricted police equipment.
Judge Conti scheduled sentencing for May 3, 2013, at 3:30 pm. The law provides for a total sentence of 60 years in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Solomon on bond.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Donald Abraham Solomon.
Former Owner of Employee Leasing Company Pleads Guilty in Salt Lake City to Federal Employment Tax CrimeRead the Press Release
Richard R. Whatley, a former owner of Alliance Staffing Management Inc. (ASM), pleaded guilty today for willfully failing to account for and pay over employment taxes, the Justice Department and the Internal Revenue Service (IRS) announced today. Whatley appeared before Judge David Nuffer in Salt Lake City.
In January 2010, a federal grand jury charged Whatley with five counts of willfully failing to account for and pay over employment taxes, relating to three different employee leasing companies that he operated and controlled between the years 2001 and 2006. According to the terms of the written plea agreement, Whatley pleaded guilty to one count of the superseding indictment and may serve between 41 months and 51 months in federal prison. Whatley will also pay $541,513.61 in restitution to the IRS.
According to the plea agreement, during the 2002 through 2004 tax years, Whatley held an ownership interest in and had the ability to control the finances of ASM, an employee leasing company. Whatley’s control included determining the amount of employment taxes that had to be paid over to the IRS and the authority to decide which bills would be paid and which bills would not be paid. Whatley was also a responsible person at ASM for paying over the employment taxes to the IRS. As charged in the superseding indictment, in the fourth tax quarter of 2003, Whatley caused the collection of employment taxes from ASM’s employees’ wages and then willfully failed to pay over $541,513.61 in employment taxes (employee portion) to the IRS.
Sentencing is scheduled for July 10, 2013 before Judge Nuffer in Salt Lake City.
The case is being prosecuted by Trial Attorneys Christopher J. Maietta and Stuart A. Wexler of the Justice Department’s Tax Division, and was investigated by special agents of IRS - Criminal Investigation.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Former New Jersey Law Firm Employee Sentenced to 21 Months in Prison for Stealing More Than $500,000 from Law FirmRead the Press Release
TRENTON, N.J. – The former bookkeeper of a law firm based in Ocean County, N.J., was sentenced to 21 months for defrauding her former employer by stealing more than $500,000 from the firm, U.S. Attorney Paul J. Fishman announced.
Sharon Wetter, 53, of Forked River, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an Information charging her with one count of mail fraud. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wetter admitted that between 2004 and October 2010, she embezzled from her former employer, referred to in court documents only as the “law firm,” by wrongfully writing checks from the bank accounts of the firm to pay her outstanding personal credit card balances and to make car payments. Wetter concealed those payments by altering the law firm’s electronic books and records to make it appear that the checks were for legitimate business expenses. Wetter, who had access to checks and bank accounts in order to perform her duties as the firm’s bookkeeper, used that access to divert more than $500,000.
In addition to the prison term, Judge Cooper sentenced Wetter to three years of supervised release, ordered Wetter to make restitution in the amount of $521,596.
U.S. Attorney Fishman credited special agents of the Red Bank office of the FBI, under the direction of Special Agent in Charge David Velazquez, for their work in the investigation of this case.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.13-009
Defense counsel: Anthony Simonetti Esq., Hightstown, N.J.
Former New Jersey Law Firm Employee Sentenced to 21 Months in Prison for Stealing More Than $500,000 from Law FirmRead the Press Release
TRENTON, N.J. – The former bookkeeper of a law firm based in Ocean County, N.J., was sentenced to 21 months for defrauding her former employer by stealing more than $500,000 from the firm, U.S. Attorney Paul J. Fishman announced.
Sharon Wetter, 53, of Forked River, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an Information charging her with one count of mail fraud. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wetter admitted that between 2004 and October 2010, she embezzled from her former employer, referred to in court documents only as the “law firm,” by wrongfully writing checks from the bank accounts of the firm to pay her outstanding personal credit card balances and to make car payments. Wetter concealed those payments by altering the law firm’s electronic books and records to make it appear that the checks were for legitimate business expenses. Wetter, who had access to checks and bank accounts in order to perform her duties as the firm’s bookkeeper, used that access to divert more than $500,000.
In addition to the prison term, Judge Cooper sentenced Wetter to three years of supervised release, ordered Wetter to make restitution in the amount of $521,596.
U.S. Attorney Fishman credited special agents of the Red Bank office of the FBI, under the direction of Special Agent in Charge David Velazquez, for their work in the investigation of this case.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.13-009
Defense counsel: Anthony Simonetti Esq., Hightstown, N.J.
Former Coast Guard Petty Officer Pleads Guilty to Fraud, Accepting BribesRead the Press Release
NORFOLK, Va. – Nathan Allen Dunn, 30, formerly of Virginia Beach, Va., pleaded guilty today to wire fraud and accepting more than $220,000 in bribes as a public official.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Michael P. Dawson, Special Agent in Charge, Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Lawrence R. Leonard.
“In two years, Mr. Dunn took more than $220,000 in bribes in exchange for using his position to award over-priced and false contracts for favored shipping companies,” said U.S. Attorney MacBride. “Rooting out criminals who abuse the public’s trust strengthens the integrity of – and our confidence in – the government’s procurement process.”
Dunn was indicted on May 23, 2012, by a federal grand jury on charges of conspiracy, wire fraud, accepting bribes as a public official, and false statements. Dunn faces a maximum penalty of 20 years in prison when he is sentenced before Judge Mark S. Davis on April 29, 2013.
According to a statement of facts filed with his plea agreement, from October 2009 to November 2011, Dunn was an active duty U.S. Coast Guard (USCG) Petty Officer assigned as a Transportation Administrator at the Surface Forces Logistics Center in Norfolk, Va. Dunn’s primary duty was to coordinate the shipping of large freight such as boats, trailers, and generators between USCG bases located throughout the United States. Dunn utilized the Department of Defense Transportation Command (TransCom) automated system to bid out and then contract the shipments with authorized freight brokerage companies. During the time frame covered by the indictment, Dunn’s co-conspirator owned twelve such freight brokerage companies, all located in Brookwood, Ala.
In September 2009, Dunn’s co-conspirator traveled to Norfolk to meet with Dunn and told him that in exchange for Dunn issuing USCG freight contracts to the co-conspirator’s companies, the co-conspirator would kickback a percentage of the profits to Dunn. Dunn agreed and, shortly thereafter, the co-conspirator began offering monetary bribes to Dunn by providing him with debit cards linked to several of the co-conspirator’s business bank accounts. To inflate the profit he made from each contract, Dunn would fraudulently manipulate various data entered into the TransCom computer system in order to artificially inflate the price of the shipping contracts he steered to the co-conspirator’s companies. Dunn would also create false shipping contracts for shipments that did not exist, then award the contract and profits to the co-conspirator. Since no freight was actually being shipped pursuant to these false contracts, the payment made to the co-conspirator from the USCG was total profit to the co-conspirator, resulting in Dunn also receiving a larger kickback. Over a two-year period, Dunn received more than $220,000 in bribe payments from the co-conspirator. The total fraud loss to the United States is more than $1 million.
This investigation was brought as part of the Hampton Roads Procurement Fraud Initiative, a collaboration of defense investigative agencies, Inspectors General, and law enforcement dedicated to strengthening the integrity of the federal procurement system.
This case was investigated by the United States Coast Guard Investigative Service and the Department of Homeland Security, Office of the Inspector General, Washington Field Office. Assistant United States Attorneys Stephen W. Haynie and V. Kathleen Dougherty are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Foreign National Pleads Guilty in Houston <br /> to Human Smuggling ChargesRead the Press Release
WASHINGTON – A foreign national pleaded guilty today to federal human smuggling charges for his role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Kenneth Magidson for the Southern District of Texas; and Special Agent in Charge Brian M. Moskowitz of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Houston
Fabiano Augusto Amorim, 28, a Brazilian national, pleaded guilty today at a hearing before U.S. District Judge Ewing Werlein Jr. in Houston, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
On June 6, 2012, Amorim was charged by indictment, along with four other individuals, with one count of conspiracy to smuggle undocumented migrants into the United States and six human smuggling counts related to five incidents in which Amorim helped smuggle undocumented migrants into the United States. Based on Amorim’s guilty plea, the government will dismiss the remaining human smuggling counts against him at sentencing.
At the plea hearing and in related court documents, Amorim admitted that between January 2011 and April 2012, he conspired with his co-defendants to bring undocumented migrants to the United States, and to encourage and induce undocumented migrants to come to the United States unlawfully. According to court documents, Amorim and his co-conspirators devised the scheme to profit financially.
In support of the conspiracy, Amorim and other conspirators recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Amorim and his co-conspirators used a network of alleged conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Amorim and his co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events, including five of the incidents described in the indictment, involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
At sentencing, which is scheduled for April 5, 2013, Amorim faces a maximum sentence of 15 years in prison and a fine of up to $500,000. Amorim currently is serving a 36-month sentence in federal prison for participating in a separate conspiracy to smuggle undocumented migrants from Brazil and Peru into the United States via a maritime route from the Bahamas into southern Florida.
Amorim’s co-conspirator Maria Adela De Luna pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. Co-conspirator Kaushik Jayantibhai Thakkar pleaded guilty on Dec. 3, 2012, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.The investigation was conducted by agents with ICE-HSI in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.Final Three Conspirators Sentenced for Civil Rights ViolationRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced James Nowicki, age 29, of Baltimore, today to five months in prison followed by three years of supervised release, with five months of the supervised released to be served as home detention, for conspiring to deprive a person of civil rights and violating the Fair Housing Act, in connection with his involvement in hanging a raccoon on the porch of a family from Africa. Judge Hollander also sentenced Dena Whedbee, age 43, to seven months of home detention as part of two years probation, and sentenced her daughter Brittany Whedbee, age 21, today to six months of home detention. Judge Hollander also ordered the Whedbees, both of Baltimore, to each perform 100 hours of community service for their involvement in the conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein: Assistant Attorney General Thomas E. Perez of the U.S. Department of Justice Civil Rights Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their plea agreements, Nowicki conspired with Dena and Brittany Whedbee, Joshua Wall and Billy Pratt to hang a dead raccoon from a noose on the porch of an African family, in order to frighten the family and interfere with their housing rights. Dena and Brittany Whedbee encouraged their co-conspirators to hang the raccoon on the family’s porch. On April 29, 2010, Nowicki and Dena Whedbee found a dead raccoon and gave Wall a rope to make a noose. Later that night, Pratt acted as a look-out while Nowicki and Wall hung the raccoon on the porch of the home.Billy Ray Pratt, age 24, of Halethorpe, Maryland and Joshua Wall, age 21, of Essex, Maryland, previously pled guilty to their involvement in the conspiracy, and both were sentenced to four months in prison.
United States Attorney Rod J. Rosenstein and Assistant Attorney General Thomas E. Perez commended the FBI for its work in the investigation and thanked U.S. Department of Justice Trial Attorney AeJean Cha of the Civil Rights Division and Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
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Fall River Man Sentenced to 22 ½ Years in Federal Prison for Armed Robbery of West Greenwich, R.I. BankRead the Press Release
PROVIDENCE, R.I. – Craig A. Carey, 44, of Fall River, Mass., was sentenced on Friday to 272 months in federal prison on conspiracy, bank robbery and firearm charges, announced United States Attorney Peter F. Neronha; West Greenwich Police Chief Richard N. Ramsay; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Richard Deslauriers, Special Agent in Charge of the FBI’s New England Field Office.
On October 9, 2012, Carey admitted to the court that in May 2011, he and a co-defendant, Louis R. Peters III, 24, of West Topsham, Vt., bound and held employees of a West Greenwich, R.I., bank at gunpoint and robbed the bank of approximately $82,000. Carey pleaded guilty to one count each of conspiracy, bank robbery, carrying and brandishing a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm.
At sentencing, U.S. District Court Judge William E. Smith also ordered Carey to serve 5 years of supervised release upon completion of his prison term.
On November 23, 2012, Peters was sentenced by U.S. District Court Judge William E. Smith to 120 months in federal prison for his participation in the armed robbery of the West Greenwich, R.I., bank. Peters pleaded guilty on January 25, 2012, to one count each of conspiracy, bank robbery and carrying and brandishing a firearm during and in relation to a crime of violence.
At the time of their guilty pleas, Carey and Peters admitted to the court that on May 28, 2011, they accosted the manager of the Centreville Savings Bank branch office on Victory Highway at gunpoint as the manager prepared to enter the bank. Once inside the bank, Carey and Peters detained and later bound other employees and robbed the bank of approximately $82,000.
Shortly after Carey and Peters fled the bank, two West Greenwich police officers and a Rhode Island State Police trooper located Peters sitting in a vehicle parked behind a nearby building, and Carey who was walking a short distance away. Both men have been detained since their arrest.
The cases were prosecuted by Assistant U.S. Attorney Stephen G. Dambruch, Assistant U.S. Attorney Sandra R. Hebert, and First Assistant U.S. Attorney Kenneth P. Madden.
The matter was investigated by West Greenwich Police, Rhode Island State Police and the FBI.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]East Stroudsburg Resident Charged with Illegal EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Victor Marroquin, age 41, from El Salvador and residing in East Stroundsburg, Pennsylvania was charged with illegal entry into the United States in a criminal Information filed today in U.S. District Court in Scranton.
According to United States Attorney Peter J. Smith, Marroquin came to the attention of federal authorities after being charged by the Pennsylvania State Police with Driving Under the Influence.The investigation was conducted by the U.S. Immigration and Customs Enforcement and is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 6 months’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
EMH Regional Medical Center and North Ohio Heart Center to Pay $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. Today’s 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. Today’s settlement evidences 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. These few didn’t,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “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 today’s 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 and Federal Bureau of Investigation. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Thecase is captioned United States ex rel. Loughner v. EMH Regional Medical Center, et al., Case No. 1:06-cv-2441 (N.D. Oh.)
Derby Man Sentenced to Six Years in Prison for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALBERT LOPEZ, 42, of Derby, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on April 2, 2011, a Connecticut State Trooper seized a loaded 9 millimeter pistol from LOPEZ’s waistband. LOPEZ was released on bond but failed to appear for his state court hearing. On April 15, 2011, LOPEZ was arrested by the United States Marshals Violent Fugitive Task Force as he tried to flee from another person’s residence.
Prior to April 2011, LOPEZ had been convicted of multiple felony offenses in Connecticut state court and federal courts in both Connecticut and Pennsylvania. Specifically, LOPEZ has been convicted of second degree assault with a firearm, carrying a pistol without a permit, conspiracy to distribute cocaine, possession of contraband by an inmate, and possession of a firearm by a convicted felon.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
LOPEZ has been detained since his arrest on April 15, 2011. On September 4, 2012, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
On March 3, 2008, LOPEZ was sentenced to 47 months of imprisonment and three years of supervised release for possession of a firearm by a previously convicted felon. He was released from prison in March 2010 and was on supervised release at the time of his arrest in April 2011.
Judge Underhill sentenced LOPEZ to five years of imprisonment for being a felon in possession of a firearm, and a consecutive one-year prison term for violating his supervised release.
This matter was investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.
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Tom Carson
(203) 821-3722
[email protected]Defendant Sentenced to 15 Years in Prison for $39 Million Mortgage Fraud Scheme; Another Defendant Pleads GuiltyRead the Press Release
To Date, Five Defendants Have Pled Guilty in Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Al Lamberti, Sheriff, Broward Sheriff’s Office, announce yesterday’s sentencing of defendant Juan Carlos Sanchez, of New York, N.Y. Sanchez was sentenced to 15 years in prison, to be followed by 3 years of supervised release for his participation in a $39 million mortgage fraud scheme. Sanchez previously pled guilty to count one of the indictment, which charged him with conspiracy to commit mail and wire fraud.
Sanchez was originally indicted with seven other defendants, Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The other defendants were: Quelyory Rigal, a/k/a “Kelly,” of Homestead, FL, Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL.
Defendant Campo pled guilty on January 3, 2013, to count one of the indictment, which charged her with conspiracy to commit mail and wire fraud. Sentencing is scheduled for March 13, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendant Mena pled guilty in October 2012, and sentencing is scheduled for January 11, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendants Mota and Arboleda pled guilty in September 2012. Defendant Mota was sentenced on November 28, 2012 to 5 years of probation. Defendant Arboleda was sentenced on December 12, 2012 to 30 months in prison, to be followed by 3 years of supervised release.
According to the indictment and statements made in court, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. In this way, the conspirators obtained approximately $39 million in fraudulent mortgage loans.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Pleads Guilty to Crack Conspiracy and Faces Mandatory Sentence of Twenty YearsRead the Press Release
[Plattsburgh, New York]—United States Attorney Richard S. Hartunian announces that DARRYL FIGUEROA, age 29, pled guilty on January 3, 2013 to conspiracy to possess with the intent to distribute and to distribute more than 280 grams of cocaine base, in violation of Title 21, United States Code, Section 846. On July 25, 2012 co-defendant DESHAWN WHITE, age 27, pled guilty to the same offense. FIGUEROA and WHITE pled guilty before Chief United States District Court Judge Gary L. Sharpe in Albany, New York. WHITE is scheduled to be sentenced on March 21, 2013 in Albany, New York and FIGUEROA is scheduled to be sentenced on May 7, 2013, in Albany, New York. Both FIGUEROA and WHITE have prior drug felony convictions and, as a result, are subject to a mandatory minimum sentence of twenty (20) years imprisonment, a maximum sentence of life, and a fine up to $20,0000,000. Judge Sharpe has ordered that the defendants remain detained pending sentencing.
FIGUEROA, also known as “Mike,” and WHITE, also known as “Jay,” are both residents of Brooklyn, New York. Since approximately 2007 until January 2012, both FIGUEROA and WHITE were involved in a scheme to transport large quantities of cocaine base, “crack,” from Brooklyn, New York to Plattsburgh, New York and then distribute the crack in Plattsburgh. FIGUEROA and WHITE recruited local crack dealers and users to sell the drugs on their behalf.
The investigation was conducted by the Adirondack Drug Task Force, the Drug Enforcement Administration, the Plattsburgh Police Department, the New York State Police, and the Clinton County Sheriff’s Department. The case is being prosecuted by the United States Attorney’s Office for the Northern District of New York.
Any questions may be directed to Executive Assistant U.S. Attorney John G. Duncan in Syracuse, New York at (315) 448-0672 or Assistant U.S. Attorney Daniel C. Gardner in Plattsburgh, New York at 518-314-7800.
Current and Former Tribal Officials Charged with Stealing from the Mashantucket Pequot Tribal NationRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford has returned two separate indictments charging STEVEN THOMAS, 38, and MICHAEL THOMAS, 44, each with one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds. STEVEN THOMAS is the current Treasurer of the Mashantucket Pequot Tribal Council, and MICHAEL THOMAS is the former Chairman of the Mashantucket Pequot Tribal Council.
The indictment against STEVEN THOMAS alleges that, from January 2005 through June 2008, he stole Mashantucket Pequot Tribal Nation (“MPTN”) funds while he was the Assistant Director of MPTN’s Department of Natural Resources Protection.
The indictment against MICHAEL THOMAS alleges that, from October 2007 through April 2009, he stole MPTN funds while serving as the Chairman of the Mashantucket Pequot Tribal Council.
If convicted of stealing from an Indian tribal organization, both men face a maximum term of imprisonment of five years and a fine of up to $250,000. If convicted of stealing from an Indian tribal government receiving federal funds, both men face a maximum term of imprisonment of 10 years and a fine of up to $250,000 on each count.
The indictments also include forfeiture allegations. If convicted, STEVEN THOMAS faces forfeiture of approximately $739,743.64, and MICHAEL THOMAS faces forfeiture of $102,393.34 and two personal computers.
The defendants are scheduled to appear before United States Magistrate Judge Joan G. Margolis in New Haven on Monday, January 7, at 3:45 p.m.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and United States Department of Interior – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Christopher Mattei.
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Tom Carson
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[email protected]Chinese National Sentenced to Federal Prison for Smuggling Counterfeit Tobacco Products into the U.S.Read the Press Release
PROVIDENCE, R.I. – Lin Xiao Wei, 33, a Chinese national, was sentenced on Friday to 16 months in federal prison for importing counterfeit tobacco products into the United States from China, earmarked for Rhode Island. In February 2013, Wei admitted to the court that in February 2012, he arranged for the shipment of a 20-foot cargo container containing counterfeit cigarettes from China to the United States.
Wei, who has been detained since his arrest in Miami on June 4, 2012, pleaded guilty in U.S. District Court in Providence on February 1, 2013, to one count of causing the sale of counterfeit tobacco products.
Wei’s sentence was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island, and Mark Dragonetti, Special Agent in Charge of the FDA Office of Criminal Investigations.
At the time of his guilty plea, Wei admitted to the court that he arranged for the purchase and shipment from China to the United States of a 20-foot cargo container of counterfeit Marlboro cigarettes. The cargo container, which shipping documentation claimed contained 696 cartons of leather products, was shipped from a port in China on March 27, 2012.
According to information presented to the court, between the time Wei agreed to ship the fraudulent tobacco products to the U.S. and the arrival of the cargo container through a port in Miami on April 27, 2012, several wire transactions were sent to Wei for the cost of the product and associated shipping fees. Upon arrival in Miami, FDA-OCI and Homeland Security Investigations agents seized the container.
According to information presented to the court, on June 3, 2012, Wei met at a Miami hotel with a confidential informant who was working with investigators, and with an undercover FDA-OCI Task Force agent from Rhode Island. Wei discussed the shipment of the fraudulent tobacco products, as well as previous of counterfeit pharmaceutical products and the availability of other fraudulent products.
U.S. Attorney Neronha commended the FDA-OCI Rhode Island Task Force, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rhode Island State Police, East Providence Police and North Providence Police for their efforts in this multi-jurisdictional investigation.
The case was prosecuted by Assistant U.S. Attorneys Richard B. Myrus and Adi Goldstein.
The sentence was imposed by U.S. District Court Judge William E. Smith.
To assist the media and the public, a glossary of federal judicial terms and procedures is now available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bullhead Man Pleads Guilty to Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Willard Paul Farrell, III, age 25, of Bullhead, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to one count of an indictment that charged him with Domestic Assault by an Habitual Offender, resulting in
substantial bodily injury. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine, or both, and a period of supervised release of 3 years.The conviction stems from an incident on January 15, 2011, when the victim was walking in McLaughlin. Farrell ran up to her, unprovoked, and assaulted her on a public street. Over the course of the assault, Farrell hit, shoved, and kneed the victim in the face, resulting in the victim receiving numerous scrapes and bruises, along with a fractured cheekbone. At the time of the incident, the victim had a restraining order in place preventing Farrell from having contact with, or harassing her.
Farrell has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 29, 2013. Farrell was remanded to the U.S. Marshal's Service pending sentencing.
Bucks County Man Sentenced for Illegal Possession of ExplosivesRead the Press Release
PHILADELPHIA - John Grzyminski, 50, of Warrington, PA, was sentenced today to 30 months in prison for the illegal possession of an unregistered explosive device. On May 9, 2012, the defendant’s mother called the Warrington Township Police Department to report that she felt threatened by the defendant. Police arrived and, after the officers left, the defendant’s mother found a pipe bomb on her kitchen counter. The Warrington Police Department was again dispatched to the residence along with the Philadelphia Police Department Bomb Disposal Unit (PPDBDU) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bomb technicians found two additional pipe bombs in an upstairs bedroom and bomb making materials in the garage. Grzyminski was arrested after being stopped by the Solebury Township Police on May 10, 2012. He told police that he had made the bombs for hunting bears, and that he also liked to throw them into lakes for entertainment. The defendant stated that he had manufactured the bombs over a 12 year period. He pleaded guilty to the charge on September 17, 2012.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Judy G. Smith.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Brooklyn, N.Y., Man Sentenced to Federal Prison for Trafficking Cocaine & MarijuanaRead the Press Release
PROVIDENCE, R.I. – Charles Fermin, 29, of Brooklyn, N.Y., was sentenced today in U.S. District Court in Providence, R.I., to 41 months in federal prison, having been convicted by a federal court jury in Rhode Island in September 2012 of trafficking cocaine and marijuana, announced United States Attorney Peter F. Neronha and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
U.S. District Court Judge William E. Smith also ordered Fermin to serve 3 years of supervised release upon completion of his prison term. Fermin was arrested by members of the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force on January 6, 2012.
At trial, the government presented evidence to a jury that at the time of his arrest by members of the HIDTA Task Force, Fermin was in possession of a suitcase containing a loaded .357 Magnum revolver, 33 pounds of marijuana, more than an ounce of cocaine, and drug trafficking paraphernalia.
The jury heard evidence that during an ongoing investigation into suspected illegal drug activity, HIDTA Task Force agents watched as Fermin carted the suitcase around several Providence streets, pausing at one point to make a cell phone call. When approached, the defendant told arresting officers that he had found the suitcase after it had been tossed over a nearby fence by an unknown person, and that he was unaware of its contents.
The jury convicted Fermin of cocaine and marijuana trafficking, but acquitted him of a firearms charge.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The Rhode Island State Police High Intensity Drug Trafficking Area Task Force is comprised of members of law enforcement from the Rhode Island State Police, ATF, DEA, ICE-HSI, R.I. National Guard, and the Johnston, Pawtucket, Providence and Smithfield Police Departments.Contact: 401-709-5357
[email protected]Antonio Clifton Earns 292 Month Sentence for Possession of Drugs and GunsRead the Press Release
Memphis, TN – Antonio Clifton, 38, of Memphis, TN, was sentenced yesterday to 292 months in federal prison for firearms possession, possession of cocaine, and possession of crack cocaine, announced U.S. Attorney Edward L. Stanton III.
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Chief U.S. District Judge Jon P. McCalla ordered Clifton to serve 120 months for violating 18 U.S.C. § 922(g), being a felon in possession of firearms; 120 months for violating 21 U.S.C. 841(a)(1), possession of cocaine with intent to distribute; and 292 months for violating 21 U.S.C. 841(a)(1), possession of crack cocaine with intent to distribute. The sentences will be served concurrently.
According to information presented in court and cited by the judge, on March 3, 2008, members of the Memphis Police Department’s Organized Crime Unit executed a search warrant at 2307 Hubbard in Memphis. When officers knocked and announced their presence, Antonio Clifton ran out of the rear of the residence with a sack of money, jumped over a fence and attempted to escape through a residential neighborhood. Clifton was ultimately apprehended and brought back to the residence, where officers located boxes of plastic baggies, a vacuum sealer, breathing masks with cocaine residue, and digital scales with cocaine residue. The officers also found over 180 grams of powder cocaine and 390 grams of crack cocaine, the majority of which was buried in the back yard, more than $18,400 in cash, and three loaded semi-automatic handguns.
At the time of these events, Clifton was on federal supervised release from a prior federal gun charge. Clifton previously entered a plea of guilty to his supervised release violation petition and received a twenty-four month sentence. The twenty-four year and four months sentence he received yesterday will be served consecutive to the sentence for the supervised release violation, for a total period of incarceration of twenty-six years and four months.
In addition to the prison sentence, the court also ordered Clifton to serve five years of supervised release and to pay a $300.00 special assessment.
This investigation was conducted by the Drug Enforcement Administration Task Force and by the Project Safe Neighborhoods initiative, which is made up of officers from the Memphis Police Department (MPD), the Shelby County Sheriff’s Department (SCSD) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Jennifer Lawrence Webber represented the government.24 Year Old Woman of Bland, Virginia, Was Sentenced to 240 Months of Imprisonment on Federal Charges Relating to the Production of Child PornographyRead the Press Release
United States Attorney Christopher Crofts announced that on Friday, January 4th 2013, Jessica Shockley, age 24, of Bland, Virginia, was sentenced by United States District Court Judge Alan Johnson to 240 months of imprisonment on federal charges relating to the production of child pornography. Shockley must pay a $1,000 fine and a $100 special assessment and will also be placed on lifetime probation upon her release
Shockley’s sentencing is the culmination of an investigative effort that involved agents from the Wyoming Department of Probation and Parole, Rock Springs Police Department detectives, Special Agents with Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HIS), Wyoming DCI and Virginia authorities. The federal complaint filed in the U.S. District Court for Wyoming, alleged that Shockley engaged in sexual activity with a 3 month old child, took photographs of the sexual activity, and sent the images to an individual in Rock Springs, Wyoming.
“I am personally grateful to all of those involved in the investigation and prosecution of this most difficult case” said US Attorney Crofts. “It is vitally important that we aggressively prosecute these cases so that our children may remain safe and enjoy a healthy and happy childhood”.
“Anyone who produces child pornography begins the cycle of sexual abuse for children around the world,” said Kumar C. Kibble, special agent in charge of HSI Denver. “This significant prison sentence handed down to a 24-year-old mother of two demonstrates the severity of her admitted actions in producing child pornography, and how serious the law considers this crime. This is why Homeland Security Investigations has such an active program for targeting predators and rescuing their victims.”
Thursday 3 January 2013
Wetumpka Woman Indicted for Stealing over $750,000 from MedicaidRead the Press Release
Montgomery, Alabama - Lashawn Denise Anthony, 41, of Wetumpka was arraigned today on charges that she stole over $750,000 from Alabama Medicaid, announced George L. Beck, U.S. Attorney for the Middle District of Alabama.
The 10-count indictment filed in U.S. District Court charges Anthony with committing health care fraud through her business, Youth Enhancement and Family Services, Inc. Youth Enhancement and Family Services, Inc. is a non-profit corporation which provides psychotherapy services to students and families as part of the Medicaid Program in Alabama. The specific program was designed to provide counseling services to children with behavioral problems as well as to give their families living skills training.
Specifically, Anthony committed health care fraud by falsely billing claims as if a psychologist with a doctoral degree had actually provided services, when, in fact, the therapist who performed the service had only a master’s degree. Thus, Anthony made more money from Medicaid than she was legally owed. In July 2010, Alabama Medicaid sent out billing instructions that explained how to bill Medicaid for the services rendered by a person with a doctoral degree and how to bill Medicaid for services provided by a person with only a master’s degree. After receiving these instructions, Anthony falsely billed Medicaid, thereby getting more money from Medicaid than she was legally due. By submitting these false bills to Medicaid, Anthony made false statements to the Medicaid Program.
“The Medicaid Program is in place to provide health care for needy families,” Beck said. “Anyone who fraudulently bills Medicaid, drives up the cost of Medicaid. This limits the ability of the Alabama Medicaid Agency to provide medical care to those in need. This office will continue to investigate and prosecute health care fraud aggressively and thoroughly. I want to especially thank the Benefits Integrity Division of Alabama Medicaid for their discovering this scheme. This joint investigation shows the importance of law enforcement cooperation among federal and state authorities,” stated Beck.
Each count of the health care fraud scheme carries a maximum punishment of 10 years in prison and a $250,000.00 fine, while each of the false statement counts carries a maximum punishment of five years in prison and a $250,000.00 fine.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case, which is set for trial in April.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617W&t Offshore, Inc. Pleads Guilty and Is Sentenced for Violations of Clean Water Act Related to Offshore Production in Gulf of MexicoRead the Press Release
W&T OFFSHORE, INC., a publicly traded company with offices in Houston, Texas and New Orleans, Louisiana was sentenced today to pay a total monetary penalty of $1,000,000 by United States District Court Judge Eldon E. Fallon after pleading guilty to one felony count of violating Title 33, United States Code, Section 1319(c)(4) for tampering with, falsifying or rendering inaccurate a monitoring method required to be maintained under the Clean Water Act, and one misdemeanor count of violating Title 33, United States Code, Section 1319(c)(1)(a) for the negligent discharge of oil into the waters of the United States, announced U.S. Attorney Dana J. Boente.
According to the court documents the charges stem from conduct on W&T OFFSHORE, INC.’s, EW 910 Platform, a manned, offshore facility designed for the production of oil and gas located in the Gulf of Mexico. From at least January 1, 2009, and continuing to present, W&T OFFSHORE, INC., operated EW 910 Platform and was required to conduct its production operations on EW 910 Platform in accordance with a National Pollutant Discharge Elimination System (NPDES) permit which imposed limitations upon the type and amount of pollutants that W&T OFFSHORE, INC., was legally allowed to discharge into the Gulf of Mexico. As required by the NPDES Permit, W&T OFFSHORE, INC., collected and submitted monthly samples of its produced water discharged from EW 910 Platform into the Gulf of Mexico to a laboratory for testing to determine whether the quantity of oil and grease contained in the produced water did not exceed a daily maximum of 42mg/l and a monthly average of 29 mg/l as required by its Permit.
However, on at least six occasions from on or about January 1, 2009, through on or about December 31, 2009, employees of a contractor working for W&T OFFSHORE, INC., on EW 910 Platform ran the produced water samples collected through coffee filters before submitting the samples to the laboratory for testing. Running the produced water samples through coffee filters before it went into the sample jars resulted in the samples not being representative of actual produced water discharge conditions. The employees of the contractor working for W&T OFFSHORE, INC., who tampered with the testing believed that running the produced water samples through the coffee filters would ensure that the samples did not fail the laboratory tests, and thus, W&T OFFSHORE, INC., would not incur additional laboratory costs and regulatory scrutiny.
Court documents also reveal that on or about November 22, 2009, a process upset on the EW 910 Platform resulted in the release of oil from the facility’s flare boom that coated sections of the open grating on the platform and production equipment. Visible oil staining remained on the platform after a professional cleaning company worked for three days to clean the platform. On or about November 27, 2009, Bureau of Safety and Environmental Enforcement (BSEE) inspectors arrived at EW 910 Platform and observed oil on the platform and a light, visible sheen on the water around the platform due to ongoing cleaning efforts. W&T OFFSHORE, INC., had not reported the sheen to the Coast Guard National Response Center at the time the BSEE inspector arrived despite the visible sheen on the water.
W&T OFFSHORE, INC., was sentenced to pay a total monetary penalty of $1,000,000 with $700,000 designated as fines and $300,000 designated as community service payments. W&T OFFSHORE, INC., was placed on a three year term of probation during which the company is required to have the majority of its 107 offshore facilities audited pursuant to the Safety and Environmental Management Systems (“SEMS”) audit as described in Title 30, C.F.R. Part 250. According to the Environmental Compliance Plan, by the end of the last year of probation, 75% of W&T OFFSHORE, INC.’s, Gulf of Mexico facilities will have been audited.
"We appreciate the efforts of the Department of Justice in reaching this agreement," said
Bureau of Safety and Environmental Enforcement (BSEE) Director James A. Watson. "We are committed to holding companies accountable for operating in a safe and environmentally responsible manner, and we will continue to work closely with DOJ to enforce the laws and regulations governing offshore energy exploration, development and production activities."Mary Kendall, Deputy Inspector General of the Department of Interior, Office of
Inspector General said, "This settlement, the result of collaboration and cooperation between the OIG, DOJ, EPA and BSEE, should send a clear message to deter companies from engaging in fraudulent and noncompliant activities."“One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively. To do that, we must receive accurate and honest tests and measurements,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Louisiana. “Violators who submit false information and illegally discharge pollutants undermine our efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated.”
This case was referred by the Houma District of the Bureau of Safety and Environmental Enforcement, investigated by the U.S. Department of Interior-OIG and U.S. Environmental Protection Agency-CID. The case was prosecuted by Emily K. Greenfield and Dorothy Manning Taylor.
(Download Joint Factual Statement )
US Attorney’s Office Collects over Six Million in Fiscal Year 2012Read the Press Release
US Attorney Brendan V. Johnson announced that the US Attorney’s Office in South Dakota collected over $6.3 million in Fiscal Year (FY) 2012 from civil and criminal actions. That amount reflects an increase of more than $2 million over FY 2011 collections.
Of the $6.3 million, over $5.8 million was recovered through criminal fines, restitution, and other assessments and penalties. Civil recoveries accounted for the other $503,289.
Nationwide, the U.S. Attorneys’ offices collected $13.1 billion in criminal and civil actions during FY 2012, more than doubling the $6.5 billion collected in FY 2011. The $13.1 billion represents more than six times the appropriated budget of the combined 94 offices for FY 2012.
“These collections become increasingly important in these times of fiscal uncertainty,” said Johnson. “I am grateful to our dedicated team of professionals who work tirelessly in their efforts to recover money for victims of federal crime and to safeguard the American public’s money.”
The majority of the money collected by the US Attorney’s Office is returned directly to the United States Treasury. However, restitution collected in criminal cases goes directly to compensate victims for their losses. Criminal fines and felony assessments are paid into the Department of Justice’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
U.S. Army Major Pleads Guilty in South Carolina to Defrauding U.S. GovernmentRead the Press Release
WASHINGTON – A U.S. Army Major has pleaded guilty today to accepting thousands of dollars in gratuities from contractors while he was a U.S. Army captain deployed to Iraq, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the District of South Carolina William N. Nettles.
Ulysses S. Hicks, 40, of Sumter, S.C., pleaded guilty before U.S. District Chief Judge Margaret B. Seymour in the District of South Carolina to a criminal information charging him with one count of conspiracy to accept illegal gratuities.
According to court documents, Hicks was a captain in the U.S. Army, who was deployed to Forward Operating Base (FOB) Hammer in Iraq as a pay agent for field ordering officer (FOO) funds. FOO funds are used to purchase miscellaneous items and supplies such as paint, lumber and plywood from local vendors. It is a violation of federal law for pay agents to accept gratuities from contractors dependent upon them for contracts.
From about March 2007 through October 2008, Hicks, along with co-conspirator former U.S. Army Master Sergeant Julio Soto Jr., was involved with the construction of a government building at FOB Hammer by local Iraqi contractors. According to court documents, Hicks and Soto unlawfully sought, received and accepted illegal gratuities for helping Iraqi contractors gain U.S. government contracts. After accepting the illegal gratuities, Hicks and Soto purchased U.S. Postal money orders with the illegal proceeds and mailed them back to the United States.
At sentencing, Hicks faces a maximum penalty of five years in prison, a fine of $250,000 and up to three years of supervised release. As part of his plea agreement, Hicks agreed to pay $65,409 plus interest in restitution to the United States.
Soto pleaded guilty on Aug. 29, 2012, before U.S. District Chief Judge Seymour to a criminal information charging him with one count of conspiracy to accept illegal gratuities. On Dec. 7, 2012, Soto was sentenced to serve five years of probation and ordered to pay $62,542 in restitution.
This case is being prosecuted by Special Trial Attorney Mark Grider of the Criminal Division’s Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR), and by Assistant U.S. Attorney Winston Holliday, Deputy Chief of the General Crimes Section of the U.S. Attorney’s Office for the District of South Carolina. The case was investigated by SIGIR, the Defense Criminal Investigative Service and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.
Two Essex County, N.J., Men Charged in Connection with Stealing Three Cars in One DayRead the Press Release
NEWARK, N.J. – Two Essex County, N.J., men appeared in Newark federal court today in connection with charges arising out of three carjackings that occurred on the same day in March 2012 in Essex and Hudson counties, U.S. Attorney Paul J. Fishman announced.
Louis Holmes, 24, of Newark, is charged in a five-count Complaint with one count of conspiracy to commit carjacking; three counts of theft of a motor vehicle by force, violence, and intimidation; and one count of use of a firearm in furtherance of a crime of violence. Rosendo Perez, 24, of Irvington, is charged in the same Complaint with one count of conspiracy to commit carjacking; one count of theft of a motor vehicle by force, violence, and intimidation; and one count of use of a firearm in furtherance of a crime of violence.
Both were already in state custody when they were charged by Complaint on Dec. 20, 2012. They both made their initial appearances before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court today.
According to the criminal Complaint:On the afternoon of March 27, 2012, Holmes and Perez approached two individuals who were sitting in a parked 2009 Acura TL in the area of South 17th Street in Newark. Holmes pointed a firearm at the victims, and both Holmes and Perez ordered the victims out of the car. Holmes and Perez then fled the area in the carjacked vehicle.
That night, Holmes accosted an individual who was approaching a parked 2010 Nissan Maxima, in which another individual was sitting. The car was parked in a McDonald’s parking lot on Communipaw Avenue in Jersey City. Holmes pointed a firearm at the victims, demanded the car keys, and ordered one victim out of the car. Holmes then fled the area in the carjacked vehicle.
One hour later, Holmes approached an individual who was standing near a 2008 Nissan Altima in the area of Mt. Pleasant Avenue in Newark. Holmes pointed a firearm at the victim and demanded the car keys. Holmes then fled the area in the carjacked vehicle.
Trio from Northeast Ohio Indicted for $1.4 Million Fraud ConspiracyRead the Press Release
Three people from the Greater Cleveland area were indicted for their roles in a $1.4 million fraud conspiracy involving property in North Carolina, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office and Darryl Williams, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Camille M. Harris, 42, of Cleveland, Kenneth T. Embry, 56, of Lyndhurst, and Deon D. Levy, 43, of Bedford, are all charged with three counts each: conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
All three were arrested this morning.
All three were also affiliated with a general contracting company known as Ameribuild Management Company (AMC) in Cleveland: Harris was president, Embry was chief financial officer and Levy was director of operations from May 2007 through February 2008, according to the indictment.
Together, the trio conspired to enrich themselves by making false representations on a mortgage-loan application and other documents related to the North Carolina property and using fictitious invoices as a means to extract money, according to the indictment.
Around November 2007, Levy had been working with a realtor to find a property around Charlotte, N.C. Embry sent Levy bank statements for Harris’ personal account that falsely stated her bi-weekly salary payments were $31,260. Embry also emailed Harris’ personal tax returns and AMC’s corporate tax returns, both of which contained misrepresentations about the financial condition of Harris and AMC, according to the indictment.
On Dec. 21, 2007, Embry sent an invoice to a North Carolina escrow agent for $340,000 from an Ohio business called Wolfco, Inc. The invoice requested payment for work done on the North Carolina property, when in fact no work had been done, according to the indictment.
Embry again sent false bank statements and balance sheets that misstated the financial conditions of Harris and AMC, according to the indictment.
On Dec. 28, 2007, Harris executed and submitted a loan application for the North Carolina property to Fairway Independence Mortgage Corp. that contained several false statements, including claims that she had a monthly income of $62,520, she had more than $1.2 million in two bank accounts and that she owned property on East 141st Street in Cleveland with a market value of $80,000, according to the indictment.
That day, Harris and Embry caused the sale and closing on the North Carolina property with a disbursement check from Fairway of $1,393,873. That included $340,000 that was distributed to Wolfco, Inc. Five days later, Embry opened a bank account in the name of Wolfco, Inc. d/b/a Kenneth Embry, according to the indictment.
On Jan. 7, 2008, Harris and Embry caused the escrow agent to transfer $340,000 to Wolfco’s account. Later that day, Embry drafted a check in the amount of $181,000 made out to “cash.” He then transferred $150,000 from his Wolfco account to the AMC account controlled by Harris, according to the indictment.
Two days after that, Harris drafted a check in the amount of $80,000 from the AMC account payable to herself and deposited it into her personal account.
Harris and Embry caused a loss of approximately $599,388 to Fairway and Amtrust Bank, as the purchaser of the North Carolina property’s mortgage from Fairway, according to the indictment.
This case is being prosecuted by Assistant United States Attorney Robert J. Patton following an investigation by Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigations.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Transocean Agrees to Plead Guilty to Environmental Crime and Enter Civil Settlement to Resolve U.S. Clean Water Act<br /> Penalty Claims from Deepwater Horizon IncidentRead the Press Release
WASHINGTON – Transocean Deepwater Inc. has agreed to plead guilty to violating the Clean Water Act (CWA) and to pay a total of $1.4 billion in civil and criminal fines and penalties, for its conduct in relation to the Deepwater Horizon disaster, the Department of Justice announced today. The criminal information and a proposed partial civil consent decree to resolve the U.S. government’s civil penalty claims against Transocean Deepwater Inc. and related entities were filed today in U.S. District Court in the Eastern District of Louisiana.
Transocean Deepwater Inc. has signed a cooperation and guilty plea agreement with the government, also filed today, admitting its criminal conduct. As part of the plea agreement, Transocean Deepwater Inc. has agreed, subject to the court’s approval, to pay $400 million in criminal fines and penalties and to continue its on-going cooperation in the government’s criminal investigation. In addition, pursuant to the terms of a proposed partial civil consent decree also lodged with the court today, Transocean Ocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., Transocean Deepwater Inc. and Triton Asset Leasing GMBH have agreed to pay an additional $1 billion to resolve federal Clean Water Act civil penalty claims for the massive, three-month-long oil spill at the Macondo Well and the Transocean drilling rig Deepwater Horizon. Under the civil settlement, the Transocean defendants also must implement court-enforceable measures to improve the operational safety and emergency response capabilities at all their drilling rigs working in waters of the United States.
“This resolution of criminal allegations and civil claims against Transocean brings us one significant step closer to justice for the human, environmental and economic devastation wrought by the Deepwater Horizon disaster,” said Attorney General Eric Holder. “This agreement holds Transocean criminally accountable for its conduct and provides nearly a billion dollars in criminal and civil penalties for the benefit of the Gulf states. I am particularly grateful today to the many Justice Department personnel and federal investigative agency partners for the hard work that led to today’s resolution and their continuing pursuit of justice for the people of the Gulf.”
“Today’s announced settlement will aid the Gulf region’s recovery from the Deepwater Horizon oil spill and require Transocean to take important steps that will help guard against such incidents happening in the future,” said Acting Associate Attorney General Tony West. “This resolution is the culmination of the tremendous efforts of many attorneys and staff in the Justice Department’s Criminal, Civil and Environment and Natural Resources Divisions – dedicated public servants whose hard work continues on behalf of the American people.”
“Transocean’s rig crew accepted the direction of BP well site leaders to proceed in the face of clear danger signs — at a tragic cost to many of them,” said Lanny A. Breuer, Assistant Attorney General for the Justice Department’s Criminal Division. “Transocean’s agreement to plead guilty to a federal crime, and to pay a total of $1.4 billion in criminal and civil penalties, appropriately reflects its role in the Deepwater Horizon disaster.”
“The development and exploration of a domestic source of energy is vitally important, and it can and must be done in a responsible and sound manner. This unprecedented settlement under the Clean Water Act demonstrates that companies will be held fully accountable for their conduct and share responsibility for compliance with the laws that protect the public and the environment from harm,” said Ignacia S. Moreno, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. “This settlement will provide immediate relief and benefits to the people of the five Gulf states, and requires Transocean to implement significant safety measures, as well as stringent auditing and monitoring to reduce the risk of any future disasters.”
“Today’s settlement and plea agreement is an important step toward holding Transocean and those responsible for the Deepwater Horizon disaster accountable,” said Cynthia Giles, Assistant Administrator for the U.S. Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “EPA will continue to work with DOJ and its federal partners to vigorously pursue the government’s claims against all responsible parties and ensure that we are taking every possible step to restore and protect the Gulf Coast ecosystem.”
According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history. In agreeing to plead guilty, Transocean Deepwater Inc. has admitted that members of its crew onboard the Deepwater Horizon, acting at the direction of BP’s “Well Site Leaders” or “company men,” were negligent in failing fully to investigate clear indications that the Macondo well was not secure and that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the order presented to the court, $150 million of the $400 million criminal recovery is dedicated to acquiring, restoring, preserving and conserving – in consultation with appropriate state and other resource managers – the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will also be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the oil spill. An additional $150 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.
The civil settlement secures $1 billion in civil penalties for violations of the CWA, a record amount that significantly exceeds last year’s $70 million civil penalty paid by MOEX Offshore 2007 LLC, a 10 percent partner with BP in the Macondo well venture. The unprecedented $1 billion civil penalty is subject to the Resources and Ecosystems Sustainability, Tourist Opportunities and Revived Economies of the Gulf Coast States Act of 2012 (Restore Act), which provides that 80 percent of the penalty will be to be used to fund projects in and for the Gulf states for the environmental and economic benefit of the region. This civil resolution reserves claims for natural resource damages and clean-up costs.
Under the civil settlement, the Transocean defendants must also observe various court-enforceable strictures in its drilling operations, aimed at reducing the chances of another blowout and discharge of oil and at improving emergency response capabilities. Examples of these requirements include certifications of maintenance and repair of blowout preventers before each new drilling job, consideration of process safety risks, and personnel training related to oil spills and responses to other emergencies. These measures apply to all rigs operated or owned by the Transocean defendants in all U.S. waters and will be in place for at least five years.
The guilty plea agreement and criminal charge announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys’ Offices; and investigating agents from the FBI, EPA, Department of the Interior, National Oceanic and Atmospheric Administration Office of Law Enforcement, U.S. Coast Guard, U.S. Fish and Wildlife Service and the Louisiana Department of Environmental Quality.
The civil resolution announced today is part of the ongoing litigation against defendants BP Exploration and Production Inc., the Transocean defendants, and Anadarko Petroleum Corporation (among others) for civil penalties, injunctive relief, and a declaration of unlimited liability for removal costs and damages under the Oil Pollution Act. The civil enforcement effort is supervised by Assistant Attorney General Moreno for the Environment and Natural Resources Division and Deputy Assistant Attorney General Brian Hauck of the Civil Division. Numerous federal agencies have contributed immeasurably to these enforcement and settlement efforts, including the EPA, the U.S. Coast Guard, the National Oceanic and Atmospheric Administration, the Department of the Interior and the Department of Agriculture.
The criminal case against Transocean is being prosecuted by Deepwater Horizon Task Force Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar. Numerous Environment Division and Civil Division lawyers are pursuing the civil enforcement action, led by Steve O’Rourke and R. Michael Underhill.
An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The proposed civil settlement is subject to a public comment period and final court approval. Information on submitting comment will be available at www.justice.gov/enrd/Consent_Decrees.html.
Related Material:
- Transocean Information
- Transocean Notice of Lodging
- Transocean Consent Decree
- Transocean Plea Agreement
The Department recognizes that parts of these documents may not be in an accessible format. If you have a disability and the format of any material on the site interferes with your ability to access some information, please contact [email protected].
Three Parkersburg Residents Plead Guilty to Federal Drug ChargesRead the Press Release
Defendants admit to their roles in a Parkersburg crack cocaine distribution conspiracy
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that three Parkersburg residents pleaded guilty in connection with an illegal crack cocaine distribution conspiracy in Parkersburg, W.Va. Brandon Mykel Perdew, 21, Samuel Shae White, 25 and Sarah Nichole Miller, 21, each pleaded guilty to conspiracy to distribute 28 grams or more of crack cocaine.
Perdew and Miller admitted that no later than the summer of 2011 until April 2012, they were involved in distributing crack cocaine in and around Wood County, W.Va. Perdew obtained the crack cocaine from Columbus, Ohio. Perdew and Miller admitted that during the scheme, they made trips to Columbus to obtain the illegal drugs where they distributed it in and around Parkersburg or provided it to other sellers including Samuel White to distribute in and around Parkersburg. White admitted joining the conspiracy in January 2012.
On January 20, 2012, the Parkersburg Narcotics and Violent Crimes Task Force used a confidential informant to purchase 1.09 grams of crack cocaine from Perdew. On March 13, 2012, the Task Force used an informant to purchase 1.13 grams of crack cocaine from White. On April 16, 2012, law enforcement agents also used an informant to purchase a quantity of crack cocaine from Perdew. Each of the drug transactions occurred at 1330 Staunton Avenue in Parkersburg.
The defendants admitted that the Staunton Avenue residence was rented by Miller in November 2011 and used for storing and selling crack cocaine during the conspiracy.
Miller admitted that on March 8, 2012, she drove White to a residence located on Hill Street in Parkersburg where White sold approximately 1.77 grams of crack to an informant working with law enforcement agents. On April 18, 2012, law enforcement officers observed Miller drive away from the Staunton Avenue residence in a 2003 Volkswagen Passat. Officers executed a search warrant on the vehicle and seized approximately 59.4 grams of crack cocaine, two sets of digital scales, and a .40 caliber semiautomatic pistol that contained a loaded magazine with 12 rounds of ammunition.
Also on April 18, 2012, members of the Parkersburg Narcotics and Violent Crimes Task Force executed a search warrant at the 113 Staunton Avenue residence and seized several items including a stolen M&P 15-22, .22 caliber semiautomatic rifle and a G&P WASR semiautomatic rifle. Agents arrested Perdew and White at the time the search warrant was executed. Perdew admitted that he had a key to the Staunton Avenue residence on his person and $1,005 in cash.
Perdew, White and Miller each face a mandatory minimum of five years and up to 40 years in prison and a $5 million fine when they are sentenced on April 11, 2013 by United States District Judge Thomas E. Johnston.
This case was investigated by the Parkersburg Narcotics and Violent Crimes Task Force. Assistant United States Attorney Joshua Hanks is in charge of the prosecutions.
Three Individuals Sentenced in Connection to Trevor Cook Ponzi SchemeRead the Press Release
MINNEAPOLIS— Earlier today in federal court, United States District Court Chief Judge Michael J. Davis sentenced three individuals in connection to the multi-million-dollar Ponzi scheme orchestrated by Trevor Cook.
Jason Bo-Alan Beckman, age 43, of Plymouth, was sentenced to 360 months in federal prison, on 17 counts of wire and mail fraud, two counts of conspiracy to commit mail and wire fraud, four counts of money laundering, two counts of filing a false tax return, and one count of tax evasion. Because the federal criminal justice system does not have parole, Beckman will spend virtually his entire sentence behind bars. He and the other co-defendants sentenced today were also solely and jointly ordered to pay $155,359,411.77 in restitution to the victims of their fraud scheme.
Gerald Joseph Durand, age 61, of Faribault, was sentenced to 240 months on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering, two counts of concealing a material fact from the United States, and three counts of filing a false tax return.
Christopher Pettengill, age 56, also of Plymouth, was sentenced to 90 months in federal prison on one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.
The sentencing of Patrick Kiley, age 74, was rescheduled for January 18, 2013, after he requested and received a continuance following the appointment of a new lawyer. Kiley will be sentenced on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering.
Beckman, Durand and Kiley were charged in a second superseding indictment on February 22, 2012, and were convicted on June 12, 2012, after a near-two-month trial. Pettengill was charged on June 13, 2011, and pleaded guilty on June 21, 2011.
In sentencing Beckman, Judge Davis called him a central figure in the fraud scheme, adding that the harm he caused was worse than using a gun because he “used the English language to violate so many.” Beckman and his co-conspirators defrauded more than 725 people during the course of their fraud scheme.
Following the sentencings, U.S. Attorney B. Todd Jones said, “We are very pleased with today’s sentences. These are the types of cases this office will vigorously pursue—cases where defendants prey on vulnerable populations, such as the elderly, or use special relationships, like those established through faith communities, to commit financial fraud that devastates thousands of people, crushing their dreams of retirement or college for their children.”
Kelly R. Jackson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigations’ St. Paul Field Office, added, “IRS-Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes and will continue to vigorously pursue those individuals who victimize their investors and violate the public trust. Today’s sentencings demonstrate the government’s determination to restore and ensure that trust.”
The evidence presented at trial proved that between 2005 and November of 2009, the defendants, along with Cook, defrauded investors by soliciting them to invest money in a foreign currency trading program that they alleged would earn a double-digit rate of return, typically between 10.5 and 12 percent annually, with little or no risk. They also claimed investor assets would be held in a segregated account and could be withdrawn at any time. Those representations were false.
The defendants and Cook made the investment offers through entities known as Universal Brokerage Services or bearing the acronym “UBS.” (The UBS entities had no legitimate affiliation to the global provider of financial services UBS, AG.) Cook operated the currency program through various foreign currency trading firms, including but not limited to one in Chicago and another in Switzerland.
To induce investors, the defendants and Cook, directly or through others, made false representations regarding the performance, safety, and liquidity of the currency program. They also omitted material information concerning their own backgrounds and qualifications as well as the backgrounds and qualifications of those working for them.
Once investments were made, some investors received UBS account statements that indicated that the currency program was performing as promised, while others received checks for “returns on their investments.” Both the statements and checks, however, were actually produced by the co-conspirators, the purpose being to lull investors or encourage them to make additional investments. At the same time, most investors received nothing from the true custodians of their funds.
Although some investment funds were invested in foreign currency trading, most of that trading was high risk in nature, often resulting in significant losses, none of which was disclosed to investors. Moreover, the co-conspirators concealed that the currency trading firm in Switzerland was in dire financial condition and, instead, continued to solicit investor assets to be sent to that trading firm. Co-conspirators also concealed from investors their own concerns about Cook’s operation of the currency program and alleged illegalities relative to the currency program.
In 2007, when UBS, AG, filed a trademark infringement lawsuit against Cook, Durand, Kiley, and others, the defendants began operating their scheme under other names, including but not limited to those identified by the terms “Oxford” and “Universal Brokerage FX.” They then continued to solicit investors for the currency program, utilizing telemarketing, media spots, and seminars in which they repeated the false representations noted above. Kiley, a Christian radio host, solicited investors for the scam through his radio talk show, which was carried on more than 200 stations across the country. On those programs, he regularly warned listeners to avoid financial ruin by giving their life savings to his company for investment.
Between 2005 and July 2009, the defendants, the defendants, Cook, and others secured approximately $194 million in investments for the currency program. Of that amount, only about $109 million was actually sent to currency trading firms. About $52 million was paid to investors in the form of lulling payments, and approximately $30 million was diverted to fund the business and personal expenses of the defendants, Cook, and others.
While Beckman was soliciting investors for the currency program, he also was attempting to purchase a minority ownership interest in the Minnesota Wild hockey team. He made misrepresentations to the National Hockey League that investments in certain trading accounts were his alone. He also claimed an extraordinary amount of assets under management and lied about the management of his grandfather’s estate and other acts reflecting dishonesty.
Moreover, Beckman filed false individual income tax returns for tax years 2007 and 2009 and failed to file a tax return for 2008. For that year, Beckman and his wife owed more than $1.3 million in federal income taxes. In addition, he caused two life insurance policies of an investor to be sold and stole millions of dollars in proceeds in order to prop up currency trading accounts held in his name.
For his part, Durand concealed more than $20,000 from the court-appointed receiver, who was searching for assets of the currency program fraud. Durand had another individual exchange the Swiss francs for U.S. currency, thereby concealing from law enforcement that he was in truth the source of the funds. Furthermore, Durand filed false individual income tax returns for tax years 2006 through 2008.In his plea agreement, Pettengill admitted that from February through September of 2008, he concealed material information from investors concerning the foreign currency program sold by Pettengill, Cook, and others known as the Oxford Entities Currency Program. He also conducted numerous wire transfers during the course of the conspiracy and made a personal credit card payment of $11,369.19 with funds derived from proceeds of the fraud scheme.
In August of 2010, Cook was sentenced to 300 months in federal prison for his role in the scam. On July 18, 2011, Jon Jason Greco pleaded guilty to two counts of making false statements to federal agents, specifically lying about assets he had concealed relative to this scam. He was sentenced to ten months in prison for his crimes.
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations, with cooperation from the Securities and Exchange Commission and the Commodities Futures Trading Commission. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and David J. MacLaughlin.
Proceeds from the Cook fraud scheme are the subject of an ongoing investigation and recovery efforts led by R.J. Zayed, of the law firm Carlson, Caspers, Vandenburg, and Lindquist. Zayed was appointed Receiver by Judge Davis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort in investigating and prosecuting financial crimes. It 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, will 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.Tamaral Guzman Convicted of Failure to Appear in Connection with Fleeing from Ongoing Drug and Financial Crimes TrialRead the Press Release
KNOXVILLE, Tenn. - Tamral Guzman, 42, of Blount County, Tenn., pleaded guilty on Jan. 3, 2013, in U.S. District Court for the Eastern District of Tennessee at Knoxville, to failure to appear. Sentencing has been set for 10:00 a.m., Mar. 20, 2013, before the Honorable Thomas A. Varlan, U.S. District Judge.
According documents on file with the U.S. District Court, Guzman was charged in a 57-count indictment for which she was on trial beginning on Sept. 24, 2012. She attended trial every day until Oct. 2, 2012, when she failed to appear. A warrant for Guzman’s arrest was issued by the District Court. The trial proceeded and she was convicted of all 57 counts on Oct. 4, 2012.
On Oct. 30, 2012, a vehicle believed to be driven by Guzman was located in Florida. Surveillance was set up on the vehicle and as a result Guzman was identified and arrested. Guzman admitted to living in a local hotel, paying for expenses with cash, and working in a local restaurant under an assumed name with her boyfriend and co-defendant Brian Paul Hatcher.
On Nov. 6, 2012, a three-count indictment, which included these charges, was returned against Hatcher and Guzman by a federal grand jury. Hatcher pleaded guilty on Dec. 20, 2012, and faces a maximum term of 10 years in prison for accessory after the fact and a maximum term of 20 years in prison for retaliating against a witness.
This indictment was the result of an ongoing investigation by the U.S. Marshal Service. Jennifer Kolman Assistant U.S. Attorney represented the United States at trial.
“This conviction is notice to all that running from the custody of the U.S. Marshals is an additional offense which we will prosecute. The federal judicial system must be respected. I extend my sincere praise for the work of the Internal Revenue Service, Drug Enforcement Administration, Blount County Drug Task Force and the U.S. Marshals Service for their diligent and successful work that resulted in these convictions,” said U. S. Attorney Bill Killian. “We are also very appreciative of the work of Assistant U.S. Attorney Jennifer Kolman for her prosecution of these cases,” he added.
Swiss Bank Pleads Guilty in Manhattan Federal Court to Conspiracy to Evade TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the guilty plea of WEGELIN & CO. (“WEGELIN”), a Swiss private bank, for conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret Swiss bank accounts and the income generated in these accounts from the Internal Revenue Service (the “IRS”). One of the managing partners of WEGELIN, Otto Bruderer, appeared on behalf of the bank to enter the guilty plea before U.S. District Judge Jed S. Rakoff. This case represents the first time that a foreign bank has been indicted for facilitating tax evasion by U.S. taxpayers and the first guilty plea by a foreign bank to tax charges.
As part of its guilty plea, WEGELIN agreed to pay approximately $20 million in restitution to the IRS and to pay a $22.05 million fine. In addition, WEGELIN agreed to the civil forfeiture of an additional $15.8 million, representing the gross fees earned by the bank on the undeclared accounts of U.S. taxpayers. Together with the April 2012 forfeiture of over $16.2 million from WEGELIN’s correspondent bank account, this amounts to a total recovery to the United States of approximately $74 million.
Manhattan U.S. Attorney Preet Bharara said: “There is no excuse for wealthy Americans flouting their responsibilities as citizens of this great country to pay their taxes, and there is no excuse for foreign financial institutions helping them to do so. Wegelin became a haven for U.S. taxpayers seeking to circumvent the tax code by hiding their money in secret off-shore accounts, and the bank willfully and aggressively jumped in to fill a void that was left when other Swiss banks abandoned the practice due to pressure from U.S. law enforcement. Today’s guilty plea is a watershed moment in our efforts to hold to account both the individuals and the banks – wherever they may be in the world – who are engaging in unlawful conduct that deprives the U.S. Treasury of billions of dollars of tax revenue. We will continue our efforts until this practice is eliminated in its entirety.”
Assistant Attorney General Keneally said: “Today, Wegelin was held responsible for unlawfully helping U.S. taxpayers who had fled from UBS and other banks hide their income and assets from the IRS. As I have said, it is a high priority of the Department of Justice to find those who continue to shirk their tax obligations, as well as those who would profit by helping them do so. The best deal now for these folks is to come in and “get right” with the I.R.S., before either the I.R.S. or the Justice Department finds them.”
IRS-CI Chief Richard Weber said: “Today, we witnessed another historic event in the enforcement of offshore tax evasion and foreign banks. Wegelin & Co., Switzerland’s oldest bank, pleaded guilty to tax charges. Banks who facilitate tax evasion face serious consequences, including criminal charges, steep fines and restitution. IRS-CI continues to be vigilant in the investigation of offshore tax evasion.”
According to the Superseding Indictment, the February 2012 civil forfeiture Complaint filed against the funds in WEGELIN’s correspondent bank account, and statements made during WEGELIN’s guilty plea today:
Founded in 1741, WEGELIN is Switzerland’s oldest bank. It provided private banking, asset management, and other services to clients around the world, including U.S. taxpayers living in the Southern District of New York. WEGELIN had no branches outside Switzerland, but it directly accessed the U.S. banking system through a correspondent bank account that it held at UBS AG (“UBS”) in Stamford, Connecticut. As of December 2010, WEGELIN had approximately $25 billion in assets under management.
From 2002 through 2011, WEGELIN conspired with various U.S. taxpayers and others, to hide from the IRS the existence of bank accounts held at WEGELIN, and the income generated in those secret accounts. WEGELIN carried out this scheme through among others, client advisers Michael Berlinka (“Berlinka”), Urs Frei (“Frei”), and Roger Keller (“Keller”), who began working at WEGELIN in 2008, 2006, and 2007, respectively.
In 2008 and 2009, WEGELIN opened and serviced dozens of new undeclared accounts for U.S. taxpayers in an effort to capture clients lost by UBS in the wake of widespread news reports that UBS was being investigated by U.S. authorities for helping U.S. taxpayers evade taxes and hide assets in Swiss bank accounts. By mid-2008, UBS had stopped servicing undeclared accounts for U.S. taxpayers.
In the wake of the U.S. investigation of UBS, members of WEGELIN’s senior management decided to take steps to capture the illegal business that UBS had exited. To capitalize on the business opportunity this presented and to increase its assets under management, and the fees earned from managing those assets, WEGELIN employees told various U.S. taxpayer-clients that their undeclared accounts would not be disclosed to the United States authorities because the bank had a long tradition of secrecy. They also persuaded U.S. taxpayer-clients to transfer assets from UBS to WEGELIN by emphasizing that, unlike UBS, WEGELIN did not have offices outside of Switzerland and was therefore less vulnerable to United States law enforcement pressure. Members of WEGELIN’s senior management approved efforts to capture the clients who were leaving UBS and also participated in some meetings with U.S. taxpayer-clients who were fleeing UBS.
In February 2009, UBS entered into a deferred prosecution agreement with the Department of Justice on charges of conspiring to defraud the United States by impeding the IRS. As part of the deferred prosecution agreement, UBS paid $780 million in fines, penalties, interest, and restitution.
To further the goals of the conspiracy from 2002 through 2011, WEGELIN took steps that included the following:
- Opening and servicing undeclared accounts for U.S. taxpayer-clients in the names of sham corporations and foundations formed under the laws of Liechtenstein, Panama, Hong Kong, and other jurisdictions for the purpose of concealing some clients’ identities from the IRS;
- Accepting documents that falsely declared that the sham entities were the beneficial owners of certain accounts, when in fact the accounts were beneficially owned by U.S. taxpayers, and making them part of WEGELIN’s client files;
- Permitting certain U.S. taxpayer-clients to open and maintain undeclared accounts at WEGELIN using code names and numbers to minimize references to the actual names of the U.S. taxpayers on Swiss bank documents;
- Ensuring that account statements and other mail for U.S. taxpayer-clients were not mailed to them in the United States;
- Communicating with some U.S. taxpayer-clients using their personal email accounts to reduce the risk of detection by law enforcement; and
- Issuing checks drawn on, and executing wire transfers through, its U.S. correspondent bank account for the benefit of U.S. taxpayers with undeclared accounts at WEGELIN and at least two other Swiss banks. In so doing, WEGELIN sometimes separated the transactions into batches of checks or multiple wire transfers in amounts that were less than $10,000 to reduce the risk that the IRS would detect the undeclared accounts.
U.S. taxpayers are required to report the existence of any foreign bank account on their federal income tax returns if it holds more than $10,000 at any time during a given year, as well as any income it earns.
By 2010, the collective maximum value of the assets in undeclared accounts beneficially owned by U.S. taxpayer-clients of WEGELIN was more than $1.2 billion, with many accounts holding more than $10,000 in any one year.
The April 2012 forfeiture of approximately $16.2 million from WEGELIN’s correspondent bank account was the result of a civil forfeiture Complaint filed in February 2012. As alleged in the Complaint, WEGELIN used its correspondent bank account at UBS to help U.S. taxpayers with undeclared accounts repatriate money that they had hidden at WEGELIN. This was often done in a manner designed to evade detection by U.S. authorities. For example, U.S. taxpayers routinely asked WEGELIN to issue and send them checks, which were drawn on WEGELIN’S correspondent bank account, and that represented funds held in their secret accounts at the bank. Further, WEGELIN permitted at least two other Swiss banks to issue checks drawn on its correspondent bank account for the benefit of U.S. taxpayers holding undeclared accounts at these other banks. The sheer volume of transactions in WEGELIN’s correspondent bank account served to conceal the repatriation of money from U.S. taxpayers’ undeclared accounts at WEGELIN and the other banks. On April 24, 2012, U.S. District Judge Laura Taylor Swain entered an order forfeiting over $16.2 million seized from the U.S. correspondent account of WEGELIN. As part of its plea agreement, WEGELIN agreed not to contest the April 2012 forfeiture.
By entering its guilty plea in this case, WEGELIN waived any objections to service of the summons and the Superseding Indictment in this case and agreed, as part of its plea agreement, not to contest service of process in this case in the future.
In entering the guilty plea on WEGELIN’s behalf, Bruderer admitted, among other things, that “[f]rom about 2002 through about 2010, Wegelin agreed with certain U.S. taxpayers to evade the U.S. tax obligations of these U.S. taxpayer clients, who, among other things, filed false tax returns with the IRS.” Bruderer also admitted that “[i]n furtherance of its agreement to assist U.S. taxpayers to commit tax evasion in the United States, Wegelin, among other things, opened and maintained accounts at Wegelin in Switzerland for U.S. taxpayers who did not complete W-9 tax disclosure forms.” A W-9 is an IRS form used through which U.S. taxpayers can identify themselves as such to a bank, thereby causing the bank to report income generated in the U.S. taxpayers’ account to the IRS.
Bruderer further admitted that “Wegelin knew that certain U.S. taxpayers were maintaining non-W-9 accounts at Wegelin in order to evade their U.S. tax obligations, in violation of U.S. law, and Wegelin knew of the high probability that other U.S. taxpayers who held non-W-9 accounts at Wegelin also did so for the same unlawful purpose.” Bruderer also admitted that “Wegelin intentionally opened and maintained non W-9 accounts for [certain U.S.] taxpayers with the knowledge that, by doing so, Wegelin was assisting these taxpayers in violating their legal duties” and that “Wegelin was aware that this conduct was wrong.”
WEGELIN is headquartered in St. Gallen, Switzerland, and, in addition to the payment of restitution, faces a fine of up to approximately $40,000,000, representing twice the gross pecuniary loss to the IRS.
Berlinka, 42, Frei, 52, and Keller, 48 – who all reside in Switzerland – were charged in the Indictment in January 2012 and the Superseding Indictment in February 2012. They each face a maximum term of five years in prison, a maximum term of three years of supervised release, and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victims. Berlinka, Frei, and Keller have not been arrested.
WEGELIN is scheduled to be sentenced by Judge Rakoff on March 4, 2013, at 4:00 p.m.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation. He also thanked the U.S. Department of Justice’s Tax Division and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Foreign Corruption Investigations Group for their significant assistance in the investigation.
This criminal case is being handled by the Office’s Complex Frauds Unit and the civil forfeiture proceedings are being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys David B. Massey, Daniel W. Levy, and Jason H. Cowley are in charge of the prosecution and civil forfeiture proceedings.
The charges and allegations contained in the Indictment and Superseding Indictment as against the remaining defendants – Berlinka, Frei, and Keller – are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
U.S. v. Wegelin & Co. S1 Indictment
St. Louis Man Sentenced to 35 Years for Armed Bank Robbery in which Security Guard was KilledRead the Press Release
KANSAS CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a St. Louis, Mo., man was sentenced in federal court today for his role in the murder of 70-year-old security guard Dwight Mayhugh, Sr., during an armed bank robbery in 2006.
Thirplus Moose, 25, of St. Louis, was sentenced by U.S. District Judge Gary A. Fenner to 35 years in federal prison without parole.
On Nov. 1, 2012 Moose pleaded guilty to participating in a conspiracy to commit bank robbery, armed bank robbery with forcible restraint and discharging a firearm during a crime of violence resulting in death. Moose admitted that he participated in a conspiracy to commit armed bank robbery in connection with two robbery attempts at United Missouri Bank, 7901 Wornall Road in Kansas City, in February 2006. During the second robbery attempt at the bank on Feb. 24, 2006 security guard Dwight W. Mayhugh, Sr., was fatally shot.
Co-defendant Iralee E. French, Jr., 25, of Kansas City, was sentenced on June 26, 2012 to 87 years in federal prison without parole. On July 22, 2011, French was convicted of his role in the conspiracy to commit armed bank robbery.
French and Moose used a shotgun to rob United Missouri Bank on Feb. 9, 2006. During that robbery, they confronted a bank teller in an underground parking garage as she was about to enter the bank at approximately 6:40 a.m. French pointed a shotgun at the teller, who was forced to give the robbers $8,263 from her teller station. After returning to the parking garage, the teller was ordered at gunpoint to get into the trunk of her vehicle, which she repeatedly refused to do. When she began screaming and crying, the robbers left the bank with the teller's vehicle, which was recovered the next day after being abandoned by the robbers.
French and Moose returned to the bank on Feb. 24, 2006. Using a shotgun, the robbers confronted Mayhugh when he drove into the same underground parking garage. French shot Mayhugh in the right shoulder and neck from approximately 10 feet away through the driver's side window of his vehicle. The robbers then forced Mayhugh out of his vehicle and into the bank. They demanded access to money, but Mayhugh responded that he did not have access to bank money. The robbers then stole Mayhugh's 2002 Geo Tracker and drove it away from the parking lot. The vehicle was recovered later the same day.
Mayhugh, bleeding from severe chest and neck wounds, walked to the convenience store across the street from the bank and told the store clerk he had been shot. The clerk immediately called 911 for an ambulance. Another store clerk, seeing Mayhugh's blood-soaked shirt and wounds in the neck and throat area, got a chair for him to sit on. The clerks placed towels over the wounds until paramedics arrived at the store. Mayhugh was transported to a hospital for treatment, but died the next day.
Law enforcement officers were unable to develop substantial leads or investigative progress in the bank robberies throughout the remainder of 2006, 2007 and most of 2008. On Aug. 12-13, 2008, law enforcement officers conducted a large scale re-canvas of the area around 23rd Street and Oakley in Kansas City. Nearly 500 houses were targeted to be canvassed in this operation. As a result of the publicity related to this re-canvas, a Yellow Cab taxi driver came forward and provided information related to the investigation. The taxi driver told investigators that, on the morning of the bank robbery, he picked up two men in the area of 5609 E. 23rd (the same area where the stolen vehicles were recovered) and drove them to the area of 79th Street and Brookside (a block east of United Missouri Bank), where he dropped them off.
Law enforcement investigators connected the telephone number that was used to call the taxi company with the telephone number provided by Moose, who had been contacted during the original canvas of the 23rd Street area on the day of the fatal bank robbery attempt.
This case was prosecuted by Acting U.S. Attorney David M. Ketchmark. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal's Service, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations and the U.S. Postal Inspection Service.
Spring Couple Handed Sentences for Hurricane Ike FraudRead the Press Release
HOUSTON – A local husband and wife have been sentenced to federal prison following their two convictions for defrauding the Federal Emergency Management Agency in relation to disaster assistance following Hurricane Ike, United States Attorney Kenneth Magidson announced today. LaCarsha, 40, and Andrew Goodman, 41, entered pleas of guilty on April 10 and May 17, 2012, respectively.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty pleas for theft of government property and fraud In connection with major disasters, sentenced LaCarsha Goodman to a term of 27 months in prison. Andrew Goodman received a 24-month sentence on Sept. 7, 2012. Both were also ordered to pay $23,014 in restitution and serve two years of supervised release upon completion of their prison terms.
The evidence showed Goodmans perpetrated an ongoing series of frauds against the government, reporting false addresses and damage to their home in connection with Hurricane Ike. The Goodmans reported multiple home addresses as their primary residence in order to receive these benefits. In each instance, the Goodmans falsely indicated that their primary residences were damaged by Hurricane Ike and that access into their homes was restricted. As a result of their claims, the Goodmans received $23,014 in disaster relief funds from FEMA.
The case was initiated after the Department of Homeland Security, Office of Inspector General received an allegation from U.S. Housing and Urban Development, Office of Inspector General alleging the Goodmans may have defrauded FEMA by submitting a false claim for disaster assistance following Hurricane Ike, which made landfall on Sept. 13, 2008.
A review of FEMA's National Emergency Management System revealed that between Sept. 18, 2008, and Oct. 21, 2008, Andre and LaCarsha Goodman submitted two separate claims for disaster assistance. LaCarsha used two distinct Social Security numbers and, along with Andre, claimed two different addresses on the 14500 block of Vantage Parkway as their primary residence in Houston. In each of the claims, the Goodmans indicated that their primary residence was damaged by Hurricane Ike and that access to their home was restricted. On the basis of one of the claims, FEMA awarded the Goodmans a total of $23,014 in disaster related assistance payments. The investigation revealed the Goodmans did not live, own or rent one of the residences they claimed with FEMA to be their primary residence.
Previously released on bond, LaCarsha was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future, while Andre was ordered into custody following his sentencing hearing.
The case was prosecuted by Assistant United States Attorney Suzanne Elmilady.
The United States Attorney's Office for the Southern District of Texas is a member of the Department of Justice's Disaster Fraud Task Force, established to deter, detect and prosecute instances of fraud related to hurricanes and other types of disasters. Comprised of federal, state and local law enforcement investigating agencies, the Task Force combats all types of fraud relating to disasters and their aftermath, with an emphasis on charity fraud, emergency-benefit fraud, identity theft, insurance fraud and procurement fraud.
Anyone suspecting criminal activity involving disaster assistance programs can make an anonymous report by calling the toll-free fraud hotline, 1-866-720-5721 or contacting the Disaster Fraud Fax at 1-225-334-4707 or the Disaster Fraud e-mail at [email protected], 24 hours a day, seven days a week until further notice. Information can also be sent by surface mail, with as many details as possible, to:
National Center for Disaster Fraud
Baton Rouge, LA 70821-4909Smith County Man Guilty of Stealing Government PropertyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 33-year-old Tyler, Texas man has pleaded guilty to stealing government property in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Raymond Kyle Welsh pleaded guilty to an Information charging him with theft of government property today before U.S. Magistrate Judge Judith K. Guthrie.
According to information presented in court, from January 2003 to September 2010, Welsh concealed and failed to disclose his financial resources and income in order to receive Social Security and Medicaid benefits. Welsh stole approximately $26,588.00 from the Social Security Administration in the form of Social Security Supplemental Income (SSI) payments and $213,981.19 from the Department of Health and Human Services in the form of Medicaid benefits. Welsh admitted that he knew he was not entitled to the benefits and that they belonged to the United States government.
Welsh faces up to 10 years in federal prison, restitution of $240,569.19 and forfeiture of $26,588.00 at sentencing. A sentencing date has not been set.
This case is being investigated by the Social Security Administration and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Several Retailers Agree to Resolve Allegations Concerning the Unlawful Advertising and Selling of Rayon Products as Being Made from BambooRead the Press Release
Amazon.com; Leon Max Inc., d/b/a Max Studio; Macy’s Inc.; and Sears, Roebuck and Co., Kmart Corporation and Kmart.com (collectively, Sears) have agreed to settle civil lawsuits concerning alleged violations of the Textile Fiber Product Identification Act and the Federal Trade Commission (FTC) Act, the Justice Department announced today.
The complaints, which were filed today in federal court along with proposed stipulated orders to settle the matters, allege that these retailers violated the Textile Act and the FTC Act by advertising and labeling textile products that were made from rayon as being made from “bamboo.” The cases were referred to the Justice Department by the FTC, which investigates violations of the Textile Act and FTC Act.
Under the terms of the proposed stipulated orders agreed to by the companies, the companies will take steps to prevent future violations, including distributing the orders to employee managers with responsibility for marketing or sale of textile products, keeping accounting and other records necessary to demonstrate compliance with the order, and reporting relevant data to the FTC. In addition, each company has agreed to make a monetary payment to the government as follows: Amazon ($455,000); Max Studio ($80,000); Macy’s ($250,000); and Sears ($475,000).
Under the Textile Act and Rules, a product’s label and advertising must accurately describe the type of fiber used to make the product. Unless a product is made directly with bamboo fiber, it cannot be labeled and advertised as “bamboo.” The complaints allege that these retailers advertised and sold products that were really made from a manufactured fiber, rayon, as being made from bamboo, widely understood to be a renewable resource.
According to the complaints, the manufacturing process for rayon requires the use of hazardous chemicals such as sodium hydroxide. The complaints further note that this manufacturing process emits hazardous air pollutants, including carbon disulfide, carbonyl sulfide, ethylene oxide, methanol, methyl chloride, propylene oxide and toluene.
“Consumers pay a premium for products labeled and advertised as being made from bamboo because they believe that the product is made from a renewable resource and is good for the environment,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division. “Consumers expect that they will get what they pay for; here, they didn’t.”
The cases, United States v. Amazon.com, Inc.; United States v. Leon Max, Inc., d/b/a Max Studio; United States v. Macy’s, Inc.; and United States v. Sears, Roebuck and Co. et al. were filed in the District Court for the District of Columbia.
Principal Deputy Assistant Attorney General Delery thanked the FTC for referring this matter to the department. The Consumer Protection Branch of the Justice Department’s Civil Division brought the cases on behalf of the United States.