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Thursday 3 January 2013
Sentences for January 02, 2013Read the Press Release
Gregory Kern, 32, of Powell, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 2, 2013, for being a felon in possession of a firearm. Kern was arrested in Powell. He received 60 months of imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rupert Man Sentenced for Selling MethRead the Press Release
POCATELLO – Francisco A. Juarez, 27, of Rupert, Idaho, was sentenced today in United States District Court for possession with intent to distribute in excess of five grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Juarez to 66 months in prison followed by four years of supervised release. Juarez was indicted by a federal grand jury on April 24, 2012, on one count of possession with intent to distribute a controlled substance – five grams or more of actual methamphetamine. He pleaded guilty to the charge on August 29, 2012.
According to the plea agreement, on April 23, 2011, Juarez arranged to deliver methamphetamine to another individual. On August 26, 2011, he delivered in excess of five grams of actual methamphetamine to the person at a restaurant in Heyburn, Idaho.
The case was investigated by the Idaho State Police.
Romanian Charged with Internet Car Sale ScamRead the Press Release
Nikolae Savva, 36, of Oradea, Romania, was charged on September 3, 2013 by Information with conspiracy to commit wire fraud and possession of a fraudulent passport, announced United States Attorney Zane David Memeger. Savva conspired with others to defraud persons who sought to purchase used vehicles on the internet. Savva used false passports supplied by other conspirators to open bank accounts in the United States for the purpose of receiving funds obtained by fraud from the prospective buyers. These buyers would wire money to the bank accounts opened by Savva and Savva would immediately withdraw the funds and then wire most of the money to conspirators outside the United States. The buyer was not able to recover the funds she sent after she discovered that the offer to sell the vehicle was fraudulent.
If convicted the defendant faces a maximum possible sentence of 30 years imprisonment;
3 years supervised release; $500,000 fine; restitution, forfeiture and a $200 special assessmentThe case was investigated by Federal Bureau of Investigation and United States Customs and Border Protection, and is being prosecuted by Assistant United States Attorney Albert S. Glenn.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Rockford, Illinois Woman Admits to Embezzling Almost $200,000 from Local Labor UnionRead the Press Release
ROCKFORD — A Rockford, Ill. woman pleaded guilty today in federal court before U.S. District Judge Frederick J. Kapala to having embezzled almost $200,000 from a local labor union. GRACE RATHKE, 57, Rockford, pleaded guilty to embezzling monies and funds belonging to Local 32 of the Laborers International Union of North America.
Rathke had been indicted on August 2, 2011, and charged with embezzling approximately $200,000 from Local 32. According to the written plea agreement, Rathke admitted that beginning in November of 2004 and continuing until March 2009, she had embezzled over $190,000 from Local 32, including $1,352 on September 25, 2006. In her plea agreement, Rathke admitted that she had been the office manager of Local 32. Members and apprentices of Local 32 had paid their dues and initiation fees to Local 32. As the office manager, Rathke was to enter the amounts received in the records of Local 32 and deposit the funds in the bank account of Local 32. In November of 2004, she began to secretly embezzle dues and fees from Local 32 and to use those monies for her own purposes. In so doing, Rathke failed to credit union members and apprentices with paying their dues and fees.
The guilty plea was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and James Vanderberg, Special Agent-In-Charge of the Chicago office of the United States Department of Labor, Office of Inspector General, Office of Fraud and Labor Racketeering Investigations, and Mary Kebisek, District Director of the Chicago office of the United States Department of Labor – Office of Labor-Management Standards.
Sentencing has been set for April 9, 2013, at 2:30 p.m. before Judge Kapala. Rathke faces a maximum sentence of 5 years in prison to be followed by up to 3 years on supervised release. Rathke may also be sentenced to pay a fine of up to $250,000 and must be sentenced to pay restitution of over $190,000 to Local 32.
The government has been represented by Assistants U.S. Attorney John G. McKenzie and Monica V. Mallory.
Plea Agreement
Postal Service Employee Charged with TheftRead the Press Release
PHILADELPHIA - Venus Jenkins, 40, of Philadelphia, Pennsylvania, a U.S. Postal Service employee, was charged today by Information with one count of theft of Government funds, announced United States Attorney Zane David Memeger. The information alleges that from on or about June 2, 2010 to on or about December 7, 2011, Venus Jenkins implemented a scheme to steal funds from the United States Postal Service by using her position as a Sales and Service Associate to transact over 200 fictitious and fraudulent refunds, resulting in total losses to the government of approximately $17,011.24.
If convicted the defendants each face a maximum possible sentence of ten years incarceration, a $250,000.00 fine, and three years supervised release.
The case was investigated by the United States Postal Service Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Portsmouth Man, Leader of Internet Group 'IMAGiNE,' Sentenced to 60 Months in Prison for Criminal Copyright ConspiracyRead the Press Release
NORFOLK, Va. – The leader of the Internet piracy group “IMAGiNE” was sentenced today to serve 60 months in prison, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C.
Jeramiah B. Perkins, 40, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. In addition to his prison term, Perkins was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution. Perkins pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Aug. 29, 2012.
Perkins was indicted along with three other defendants on April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters.
According to court documents, Perkins directed and participated in using receivers and recording devices in movie theaters to secretly capture the audio sound tracks of copyrighted movies and then synchronized the audio files with illegally recorded video files to create completed movie files suitable for sharing over the Internet among members of the IMAGiNE Group and others.
Perkins admitted he took the lead in renting computer servers in France and elsewhere for use by the IMAGiNE Group. He also admitted he registered domain names for use by the IMAGiNE Group, and opened e-mail and PayPal accounts to receive donations and payments from persons downloading or buying IMAGiNE Group releases of pirated copies of motion pictures and other copyrighted works.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert and Gregory A. Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on May 9, June 22 and July 11, 2012, respectively. Lambert and Lovelady were sentenced on Nov. 2, 2012, to 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to 40 months in prison. A fifth co-defendant, Javier E. Ferrer, was charged in an information on Sept. 13, 2012, for his role in the IMAGiNE Group, and he pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Nov. 29, 2012. Ferrer is scheduled to be sentenced on March 14, 2013.
The investigation of the case and the arrests were conducted by agents with HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public’s health and safety, the U.S. economy and our war fighters.
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.Port Arthur Man Sentenced in Kidnapping and Carjacking SchemeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 33-year-old Port Arthur, Texas man has been sentenced to federal prison in a carjacking case as a result of Operation Time Machine in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Luan Van Nguyen, aka, Kevin Nguyen, was found guilty by a jury on Aug. 2, 2012, of carjacking, conspiracy to commit carjacking, and possession of a firearm in furtherance of a violent crime. Nguyen was sentenced to 330 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, from July 16, 2010 to Aug. 6, 2010, Nguyen conspired with two fellow Port Arthur men, Patrick Allen Chaney and Rigoberto Gaytan Valenzia, to kidnap a 24-year-old Port Arthur man and hold him for ransom. Chaney and Valenzia had both previously performed construction work for Nguyen, who was a construction contractor. Nguyen approached Chaney and Valenzia and asked them to help kidnap the victim and promised to share a portion of the ransom proceeds, which was to be paid by the victim's family. Prior to the kidnapping, Chaney, Valenzia, and Nguyen traveled together on one or more occasions to conduct surveillance on the victim and the victim's family. Nguyen was a friend of the victim’s family and knew that the victim had a job doing computer repair work. Nguyen’s plan was to lure the victim to an vacant house in Port Arthur by having Chaney make a fictitious service call for computer repair. On Aug. 5, 2010, at approximately 6:30 p.m., Chaney, using the alias "Gary Underwood," called the victim on his cell phone and asked the victim to fix a computer.
On Aug. 6, 2010, from approximately 1:00 p.m. to 3:00 p.m., Chaney, using the same alias, "Gary Underwood," made multiple phone calls to the victim's cell phone and the victim’s employer, specifically requesting that the victim be sent to do the computer repair. Chaney instructed the victim to meet him at 3748 Proctor Street in Port Arthur, in order to pick up the computer. At approximately 3:00 p.m., Chaney met the victim at 3748 Proctor Street and was able to lure him into the house. Upon entering the house, Valenzia confronted the victim with a short-barreled shotgun and told the victim to lay face down on the floor and not to move or else he would shoot the victim. Chaney proceeded to blind-fold the victim and bound the victim's hands with duct tape. Valenzia and Chaney then put the victim into Valenzia’s van, bound his feet with duct tape, and then removed the victim’s car keys and cell phone. Chaney took the victim's car which was parked in the driveway. Nguyen drove up to the residence and instructed Chaney to follow Nguyen in the victim's vehicle while Valenzia transported the victim. Chaney and Nguyen then abandoned the victim’s vehicle behind a business on 8th Street and 9th Avenue in order to conceal the location of the kidnaping from law enforcement.
Valenzia took a large knife and placed it against the victim's neck and leg, and told the victim that he would cut him if he moved. Valenzia left the residence in his van with the victim still bound in the back and planned to take the victim back to his apartment. While in route, the victim was able to maneuver to the front of the vehicle and lodge himself against Valenzia and the inside wall of the van. Valenzia choked the victim with his hands in order to try and regain control over him. After a brief struggle, Valenzia stopped the vehicle and opened the driver's side door in order to free himself. Once the door was opened, the victim fell out of the vehicle, managed to free one of his legs, and was able to run to a nearby business for help. A passing motorist observed the victim escaping from the vehicle and called Port Arthur Police. Valenzia left the scene and then called Nguyen on his cell phone and informed him that the victim had escaped. Valenzia attempted to flee in the van, but was later apprehended by Port Arthur Police officers. Port Arthur Police recovered the shotgun used in the kidnapping and carjacking. Chaney voluntarily surrendered to Port Arthur Police on Aug. 13, 2010. A federal grand jury returned an indictment on Sep. 8, 2010, charging Valenzia, Nguyen, and Chaney with federal violations.
The evidence at trial showed that Nguyen fled Port Arthur on Aug. 16, 2010 after he learned federal investigators were investigating him for his role in the kidnaping and carjacking. He was at large for over a year, and was eventually arrested in Houston, Texas on Dec. 14, 2011.
Phone records showed that Nguyen repeatedly called Chaney and Valenzia on the day of the kidnaping and carjacking, and instructed them on how to carry out the crime.
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program in partnership with the Jefferson County District Attorney’s Office. Operation Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in Port Arthur, Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
Chaney pleaded guilty to carjacking and was sentenced on Aug. 9, 2011, to 97 months in federal prison. Valenzia pleaded guilty to carjacking and was sentenced on Apr. 20, 2011 to 116 months in federal prison. Chaney and Valenzia were also convicted of state charges for aggravated kidnapping and were both sentenced to 5 years in the Texas Department of Corrections. During sentencing, Judge Heartfield referred to Nguyen as the “puppeteer” and his co-defendants as the “puppets” in this scheme.
This case was investigated by the Port Arthur Police Department and the ATF and prosecuted by Assistant U.S. Attorney Baylor Wortham and Assistant U.S. Attorney John Ross.
Philadelphia Woman Charged with Social Security FraudRead the Press Release
Crystal Anderson, 45, of Philadelphia, Pennsylvania was charged today by Information with one count of theft of government funds and three counts of social security fraud, announced United States Attorney Zane David Memeger. The information alleges that from in or about January 1996 through in or about November 2011, Crystal Anderson implemented a scheme to defraud the SSA by receiving disability insurance benefits and supplemental security income benefits while concealing that she was working and earning income and receiving dual benefits from SSA, for a period of almost 16 years, using a different name and social security number, resulting in losses to the government of approximately $105,108.32. In furtherance of her scheme, Ms. Anderson allegedly provided a fraudulently obtained social security number in order to obtain a false photographic identification card.
If convicted the defendant faces a maximum possible sentence of 25 years imprisonment, a three year period of supervised release, a $1,000,000.00 fine, and a $400.00 special assessment. Full restitution of as much as $105,108.32 may be ordered.
The case was investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant United States Attorney Thomas Moshang III.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pella Woman Pleads Guilty to Mail FraudRead the Press Release
DES MOINES, IA – Beverly Joan DeRonde, age 61, of Pella, Iowa, pleaded guilty to one count of mail fraud in a proceeding before United States Magistrate Judge Ross A. Walters, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for April 5, 2013, at the United States Courthouse in Des Moines before Chief Judge James E. Gritzner.
DeRonde was charged with multiple counts of mail fraud in an indictment filed on August 28, 2012. The indictment alleged that DeRonde obtained approximately $731,950 as a result of these offenses.
In a written plea agreement filed on January 4, 2013, DeRonde admitted that she engaged in a scheme to defraud multiple individuals and obtain money by false pretenses over a seven-year period, from January 2003 through June 2010. DeRonde would ask various friends, relatives, and acquaintances to loan her money, supposedly for surprise birthday or anniversary presents for her husband or to purchase equipment for a boat repair shop. She promised large amounts of interest and often would write a check at the time of the purported loan, instructing the individual loaning the money not to negotiate the check until a later date.
DeRonde admitted that she did not use the loan proceeds as represented but, instead, used the money to purchase antiques, jewelry, Rolex watches, and other consumer items. She also used loan proceeds to repay loans she previously had obtained from other individuals. She admitted to using the United States mails to send letter to various individuals with excuses why she was unable to repay the loans, promising a new date by which she would have the money, and often instructing the individuals to keep the loans a secret from her husband.
DeRonde faces a maximum penalty of up to 20 years in prison, a maximum fine of $250,000, or both a fine and imprisonment. Additionally, under the plea agreement, DeRonde has agreed that the sentencing judge should impose an order of restitution for all relevant conduct and to the forfeiture of certain property found at her residence and a storage unit, which was purchased with the proceeds of the mail fraud. DeRonde remains released, under the supervision of the United States Probation Office, pending imposition of sentence.
This case was investigated by the United States Postal Inspection Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Pearl River Man Charged with Illegal Distribution of Oxymorphone Causing the Overdose Death of 21-Year Old ManRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian Crowell, the Special Agent-in-Charge of the New York Field Division of the U.S. Drug Enforcement Administration (“DEA”), George Longworth, the Commissioner of Westchester County Department of Public Safety, Thomas Zugibe, the Rockland County District Attorney, and Kevin Nulty, the Chief of the Orangetown Police Department, announced the arrest this morning of CRAIG OLEKSOWICZ for illegally distributing oxymorphone, a Schedule II controlled substance, the use of which caused the October 2011 death of another individual, a 21-year-old man in Pearl River, New York. OLEKSOWICZ was additionally charged with illegally distributing codeine, methadone, and Valium pills. OLEKSOWICZ was presented today before U.S. Magistrate Judge George A. Yanthis in White Plains federal court.
U.S. Attorney Preet Bharara stated: “As has been reported, prescription drug trafficking and abuse is an exploding epidemic, claiming the lives of almost 15,000 people a year, more than illegal street drugs like heroin and cocaine combined. As alleged, the defendant was essentially an outlaw pharmacy, and worse, a lethal one. The illegal dealers of prescription drugs will not get any easier treatment from this Office simply because what they are selling can be legally used when properly prescribed. We will not relent in combating this new drug scourge. We commend the teamwork and professionalism of our federal and local partners that led to this arrest.”
DEA Special Agent-in-Charge Brian Crowell stated: “There is zero difference between the local street drug dealer selling heroin to that of a person selling illegally obtained prescription pain medication. Some of these diverted pills, like Opana, are known on the streets as ‘Stop Signs’, due to its shape. The misuse of this and other diverted pain medicine can cause people to become addicts leading to tragic overdoses. Diverted pain pills, not prescribed for the right reasons nor by the right doctor, and sold to people on the street, are the leading cause of overdoses and deaths in our region. Many continue to believe the illegal distribution of pain medications is harmless, this charge and arrest should make clear there is no difference between selling pain medication not prescribed by a doctor and supplying heroin.”
Westchester County Department of Public Safety Commissioner George Longworth stated: “This investigation is another example of the tremendous collaboration that exists among federal, county and local law enforcement agencies in the Hudson Valley. The Department of Public Safety is committed to continuing to work with all our law enforcement partners to combat narcotics trafficking in our communities.”
Rockland County District Attorney Thomas Zugibe stated: “This defendant is accused of trafficking in drugs which are extremely potent and sometimes deadly. Rockland County has seen a huge rise in the use and abuse of prescription painkillers, such as Opana. In fact, the White House Office on National Drug Policy says prescription drug abuse is the nation's fastest-growing drug problem, responsible for the deaths of more Americans than heroin and cocaine combined. My thanks to the members of the Rockland County Drug Task Force, the Orangetown Police Department Detective Bureau and the DEA's Diversionary Unit for partnering in this investigation. All levels of law enforcement must continue working together to battle our growing pill epidemic.”
Orangetown Police Department Chief Kevin Nulty stated: “It was sad for me to see a young man from my own neighborhood in Orangetown die as a result of being illegally sold a prescription narcotic substance. The death was very real to me. I greatly commend the work of the investigators from my department and the US Drug Enforcement Administration who worked very hard in identifying the parties responsible for the drug sale of that caused this death. I am very pleased that this case has been brought to a successful closure. Stopping the epidemic of the sale of and illicit use of prescription drugs is a new challenge for law enforcement agencies across the United States. We will continue to work with our local, state and federal partners in our public education, prevention and enforcement efforts.”
According to the Indictment, which was unsealed today in White Plains federal court, and other public documents:
Between at least February 2011 and October 2011, OLEKSOWICZ, 37, of Pearl River, New York, and others regularly distributed OLEKSOWICZ’s prescription oxymorphone pills for profit. Oxymorphone is a powerful painkiller with a high potential for addiction and abuse, and its improper use may be fatal. In October 2011, the use of oxymorphone pills supplied by OLEKSOWICZ caused the overdose death of a young man residing in Pearl River, New York. Following that death, OLEKSOWICZ continued his illegal distribution of pills, selling codeine, methadone, and Valium pills on at least three separate occasions in February 2012.
If convicted, OLEKSOWICZ faces a mandatory minimum penalty of 20 years in prison, a maximum penalty of life in prison, and a maximum fine of $1 million or twice the gain or loss resulting from the crime.
Mr. Bharara praised the investigative efforts of the DEA, the Westchester County Department of Public Safety, the Rockland County Drug Task Force, and the Orangetown Police Department. He also thanked the Rockland County District Attorney’s Office for its assistance in the case.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Christopher J. DiMase and Abigail S. Kurland are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Craig Oleksowicz Indictment
Owner of Tacoma Western Clothing Store Sentenced to Ten Years in Prison for Heroin Distribution ConspiracyRead the Press Release
A Puyallup man who owns a western wear store in Tacoma was sentenced yesterday to ten years in prison for conspiracy to distribute heroin, announced U.S. Attorney Jenny A. Durkan. MARCOS ARAUJO URRIETA, 47, was arrested on September 17, 2011, following an investigation of heroin trafficking in the Tacoma area. ARAUJO URRIETA pleaded guilty in September 2012. U.S. District Judge Benjamin H. Settle imposed the mandatory minimum ten year sentence in the case.
According to records filed in the case, ARAUJO URRIETA owned Zapateria Tarascos located at 924 E. 72nd Street in Tacoma. The store sold western clothing including boots and other merchandise. Law enforcement served a search warrant at a stash house in Tacoma on September 17, 2011. At the house was a co-conspirator who had been sent by ARAUJO URRIETA to pick up six to eight kilos of heroin for him to distribute from his store. Law enforcement officers then searched the store and found about four pounds of heroin and $250,000 in cash. ARAUJO URRIETA admitted the cash was from drug sales as well as the sales of some store merchandise.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the Lakewood Police Department as the lead agency, and supported by the Pierce County Sheriff’s Office, and other member agencies of the Tahoma Narcotic Enforcement Team (TNET). The Drug Enforcement Administration (DEA) Tacoma Resident Office also participated in the investigation.
The case was prosecuted by Assistant United States Attorneys Matthew Thomas, Marc Perez, and Jeffrey Backhus.
Owner of Detroit Adult Day Care Centers Pleads Guilty in Connection with Medicare Psychotherapy Fraud SchemeRead the Press Release
WASHINGTON – The owner of several Detroit-area adult day care centers pleaded guilty today for her role in a $13.2 million psychotherapy fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Beth Jenkins, 48, of Farmington Hills, Mich., pleaded guilty to one count of conspiracy to commit health care fraud and five counts of health care fraud, before U.S. District Judge Stephen J. Murphy III in the Eastern District of Michigan.
Jenkins admitted that she and others conspired to defraud Medicare through Quality Recreation & Rehabilitation LLC (QRR) and Procare Rehabilitation Inc., two adult day care centers she owned and operated with alleged co-conspirators. According to court documents, Jenkins and her alleged co-conspirators owned and operated several Detroit-area adult foster care homes (AFCs) that housed severely mentally-disabled Medicare recipients. Court documents allege that Medicare beneficiaries living at AFCs, some of which were owned and operated by Jenkins and her alleged co-conspirators, were transported to QRR and Procare by Jenkins and others. According to court documents, Jenkins and her alleged co-conspirators used the AFC residents’ Medicare information to bill Medicare for group and individual psychotherapy that was never provided.
From 2004 through 2011, Jenkins and her alleged co-conspirators submitted more than 185,000 claims to Medicare totaling more than $13.2 million for group and individual psychotherapy that was not provided. According to court documents, Medicare paid $4,777,792 on these claims.
At sentencing, scheduled for April 19, 2013, Jenkins faces a maximum penalty of 60 years in prison and a $1,500,000 fine.
Jenkins’s co-defendants, Dr. Alphonso Berry and Marcus Jenkins, Beth Jenkins’s husband, are scheduled for trial on Jan. 8, 2013. They are presumed innocent until proven guilty at trial.
This case is being prosecuted by William G. Kanellis and Tarek Helou of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Ocean City Shop Owner Pleads Guilty to Selling Counterfeit MerchandiseRead the Press Release
Baltimore, Maryland – Liang Lin, age 34, a resident of Delaware, who owned and operated two shops on the boardwalk in Ocean City, Maryland, pleaded guilty today to trafficking in counterfeit goods.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Acting Chief Kevin Kirstein of the Ocean City Police Department.
“Entrepreneurs are free to sell cheap clothing, shoes, handbags, perfume and other consumer items,” said U.S. Attorney Rod J. Rosenstein. “but they cannot use someone else’s trademark.”
“Counterfeit goods traffickers like Lin are looking to gain profit but in reality are committing a crime that results in American jobs lost, American business profits stolen and American consumers receiving substandard products,” said William Winter, Special Agent in Charge of HSI Baltimore. “Consumers now pay more for legitimate products to make up for the money being lost to counterfeits. HSI enforcement operations into Intellectual property theft protect not only the companies who have copyrighted products, but the consumers who believe they are legitimately buying those copyrighted products.”
According to his plea agreement, Lin owned and operated two stores in Ocean City, Maryland: Hot Topik, at 401 South Atlantic Avenue, and Everything $5.99 and Up (Hot Topik), at 806 South Atlantic Avenue #8, as well as operating stores in Delaware. Lin admitted that from at least June 2010 through at least September 2011, he sold, and attempted to sell counterfeit merchandise, including purses, handbags, shirts, jewelry perfume, hats, and shoes that bore trademarks such as Michael Kors, Nike, Monster, Coach, Gucci, Versace, Vera Wang, Louis Vuitton and Channel.
During the summer of 2011, undercover investigators observed large quantities of counterfeit merchandise in Lin’s stores in Ocean City, and several undercover buys of counterfeit merchandise were made, including the purchase of a counterfeit Coach purse.
On the morning of August 17, 2011, federal search warrants were executed at both of Lin’s stores in Ocean City and approximately 8,000 items of counterfeit merchandise were seized. Two days after the execution of the federal search warrant, an investigator again saw counterfeit merchandise for sale at Everything $5.99 and Up (Hot Topik), including merchandise of the same type seized during the search. On September 1, 2011, an investigator made an undercover buy of a counterfeit Coach purse at Everything $5.99 and Up (Hot Topik).
On January 30, 2012, Lin was stopped re-entering the United States after a one-day trip to Canada and declared that the only thing he purchased in Canada was liquor from a duty free shop. A border search of his vehicle recovered approximately 869 pieces of counterfeit jewelry bearing trademarks such as Chanel.
It is estimated by the manufacturers whose goods were counterfeited that the lost retail value (or the retail value of the infringed items) of the goods seized and sold is estimated to be between $200,000 and $400,000. The estimated retail value of the counterfeit merchandise, based on what Lin was selling the infringing counterfeit items for, is $153,585.
Lin faces a maximum sentence of 10 years in prison and a fine of $2 million. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for March 27, 2013 at 9:30 a.m.
Today’s law enforcement action is an example of the type of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to http://www.justice.gov/dag/iptaskforce/.
United States Attorney Rod J. Rosenstein praised HSI Ocean City, the Maryland State Police and Ocean City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Justin Herring, who is prosecuting the case.
New Jersey Man Charged with Bank FraudRead the Press Release
Ron Credle, 48, of East Orange, New Jersey, was charged today by Information with one count of bank fraud and one count of aggravated identity theft, announced United States Attorney Zane David Memeger.
Credle faces a maximum sentence of 32 years imprisonment and a mandatory minimum of at least two years in prison. He also faces a $1.25 million fine and a $200 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Heroin Dealer Sentenced to More Than Five Years in Federal PrisonRead the Press Release
January 3, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that FRANK CARR, also known as “FL,” 45, of New Haven, was sentenced yesterday by Chief United States District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by five years of supervised release, for distributing heroin.
According to court documents and statements made in court, on November 20, November 28, and December 22, 2011, CARR sold heroin to an individual working with law enforcement.
CARR was arrested on February 24, 2012. At the time of his arrest, he possessed approximately 67 grams of heroin packaged for street-level distribution.
On July 2, 2012, CARR pleaded guilty to one count of possession with intent to distribute and distribution of heroin.
CARR has been detained since his arrest.
This matter was investigated by the Drug Enforcement Administration, with assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. The case was prosecuted by Assistant United States Attorney Marc H. Silverman.
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[email protected]Munoz Sentenced to 41 Months in Federal Prison After Pleading Guilty to Wire Fraud, Money Laundering in Connection with Property Fraud Scheme Near Park CityRead the Press Release
SALT LAKE CITY – Mauricio R. Munoz, age 49, of Sandy, who pleaded guilty to wire fraud and money laundering in connection with a construction fraud scheme involving five lots in the Promontory Point development located near Park City, will serve 41 months in federal prison. U.S. District Judge Ted Stewart imposed the sentence Wednesday in federal court in Salt Lake City.
Two other defendants in the case, Daniel Alfonso Blanco, age 41, of West Jordan, and Michael Russell Held, age 48, of Pullman, Washington, were each sentenced to 30 months in federal prison. Each defendant was ordered to pay $2,944,760.46 in restitution in connection with other co-defendants and Blanco and Munoz were ordered to forfeit $2,944,760.46 in currency. Held, who Judge Stewart found to be a minimal participant in the scheme, was not included in the forfeiture judgment. Munoz, Blanco, and Held, who will surrender to begin their prison sentences on Feb. 18, 2013, will be on supervised release for 36 months when they complete their prison sentence.
Justin Hatton, age 40, of Salt Lake City, who was charged in a separate indictment in connection with the scheme, has pleaded guilty to bank fraud, money laundering, and filing a false tax return. He is scheduled to be sentenced Friday at 2 p.m. by U.S. District Judge Tena Campbell.
The cases were investigated by special agents of the FBI and IRS Criminal Investigation.
According to documents filed in court, the defendants joined with Hatton in 2007 in falsifying paperwork and making misrepresentations to persuade a father and son living in Park City to lend a substantial portion of their personal savings to place five high-dollar lots ($645,900-$919,000 each) under contract. The defendants misrepresented to the victims that the lots had values of between $1.25 million and more than $1.8 million.
These misrepresentations convinced the victims that they were safe in making bridge loans of $4,414,389 at financial market rates with the understanding that the buyers had paid large down-payments and that the properties, which served as security for the loans, were worth approximately twice what they were lending. Munoz and Hatton asserted that the bridge loans would soon be replaced by a series of construction loans and later, long-term financing. The victims were promised that the construction loans would repay the bridge loans and end their involvement within less than two months.
At the end of the day, court records show, the victims learned that their funds were secured by lots worth less than half the loan. The construction financing that purportedly would pay them off was briefly pursued but not obtained. Hatton, Munoz, and Blanco channeled hundreds of thousands of dollars from the deals. Approximately $600,000 was laundered through the bank account of Munoz’ mother and divided between Hatton and Munoz. Held, who forged false contracts and documents, appears to have received no more than $300 related to the transactions. A witness reported that Blanco was paid $10,000 for creating essentially double closing documents – one set that reflected the true closing of the loans and diversion of excess loan proceeds to the co-conspirators and another set reflecting a false closing to make the bridge lenders feel comfortable that their loan proceeds had been applied as promised.
The bridge loans were not repaid and the victims suffered substantial losses on each transaction.
Missouri Man Charged with Distributing Heroin in Saline CountyRead the Press Release
Bryan L. Cayce, 45, of O’Fallon, Missouri, appeared for arraignment today in United States District Court in Benton on charges that he illegally distributed heroin, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment charging Cayce was returned by a Federal Grand Jury on November 6, 2012, and alleged that the distribution occurred on September 18, 2012, in Saline County.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Cayce faces up to 20 years imprisonment, a $1 million fine, and a term of 3 years to life on supervised release to follow his incarceration.
Cayce will next appear in United States District Court in Benton on Friday, January 4th at 11:30 a.m. for a hearing on a motion that he be held without bond. Cayce was remanded to the custody of the United States Marshal to await that hearing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Mississippi Man Pleads Guilty for Conspiring to Commit Hate Crimes Against African-Americans in Jackson, MississippiRead the Press Release
Joseph Dominick, 21, from Brandon, Miss., pleaded guilty today in U.S. District Court in Jackson, Miss., to one count of conspiracy to commit federal hate crimes in connection with his role in the assault of African-Americans in Jackson. Defendants Deryl Paul Dedmon, 20; John Aaron Rice, 19; Dylan Wade Butler, 21; William Kirk Montgomery, 23; and Jonathan Kyle Gaskamp, 20, all from Brandon have previously entered guilty pleas in connection with their roles in these offenses. The conspiracy culminated in the death of James Craig Anderson, who was assaulted and killed on June 26, 2011.
The investigation conducted by the FBI revealed that, beginning in the spring of 2011, Dominick and others conspired with one another to harass and assault African-Americans in and around Jackson. On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles to cause, and attempt to cause, bodily injury to African-Americans. They would specifically target African-Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault. The co-conspirators would often boast about these racially motivated assaults.
On an occasion predating the death of Mr. Anderson, Dominick, Montgomery, Butler and others known to the government traveled to Jackson in Dominick’s truck for the purpose of finding and assaulting vulnerable African-Americans. The co-conspirators threw multiple glass beer bottles at African-American pedestrians. Dominick and his co-conspirators also purchased a sling shot and metal ball bearings to shoot at African-Americans, and then took turns shooting the sling shot at multiple African-Americans they encountered.
On June 25, 2011, Dominick and others attended a party/bonfire in Puckett, Miss., to celebrate Dominick’s birthday. During the party, Dominick and others, talked about going to Jackson to harass and assault African-Americans. By the early morning hours of June 26, 2011, Montgomery, Dedmon, Rice, Butler and three other co-conspirators known to the government agreed to carry out their plan to find, harass and assault African-Americans. Dominick did not go to Jackson on June 26, 2011. That evening culminated in Dedmon deliberately using his Ford F250 truck to run over Mr. Anderson, causing injuries which resulted in Mr. Anderson’s death.
“We hope that today’s guilty plea provides further assurance to the victim’s family and to the community that the Department of Justice will leave no stone unturned to find those responsible for these senseless racially motivated attacks,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Our investigation is ongoing, and we will continue to pursue those who participated in this violent conspiracy, which culminated in the tragic death of James Craig Anderson.”
“The acts carried out by Dominick and his co-conspirators against African-Americans are absolutely reprehensible. Bringing these individuals to justice is a top priority of this office and we will continue to assist the Department of Justice Civil Rights Division in this investigation,” said U.S. Attorney Gregory K. Davis.
Daniel McMullen, Special Agent in Charge of the FBI’s Jackson Field Office, said, “The FBI continues to investigate the hate fueled assaults on African-Americans in and around Jackson, Mississippi, which include the attack on and resulting death of James Anderson on June 26, 2011. This behavior, which seeks to deprive others of their civil rights based on the color of their skin, cannot be tolerated.”
These guilty pleas were the result of a cooperative effort between the U.S. Attorney’s Office for the Southern District of Mississippi, the United States Department of Justice’s Civil Rights Division, and the Hinds County District Attorney’s Office. This case was investigated by the Jackson Division of the FBI and the Jackson Police Department. It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division and Assistant U.S. Attorney Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.
Members of the Philadelphia La Cosa Nostra Family Found Guilty of Racketeering and Other ChargesRead the Press Release
PHILADELPHIA - A federal court jury today returned guilty verdicts against Joseph Massimino, Damion Canalichio, and Gary Battaglini for conspiring to participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity and through the collection of unlawful debts. The jury also returned guilty verdicts against co-defendant Anthony Staino, Jr. for conspiracy to make extortionate extensions of credit and conspiracy to collect extensions of credit by extortionate means. Trial lasted 43 days. Five co-defendants charged in the case pleaded guilty prior to trial while three additional co-defendants are still awaiting trial. U.S. District Court Judge Eduardo C. Robreno scheduled sentencing hearings for May 21, 2013 and scheduled bail hearings for February 6, 2013. Each charge of racketeering conspiracy carries a maximum penalty of 20 years in prison.
The jury was undecided ("hung") on several counts pertaining to defendants Joseph Ligambi, George Borgesi, and Joseph Massimino. Judge Robreno declared a mistrial on those counts. The jury found defendants Ligambi, Staino, Brogesi, Canalichio, and Battaglini not guilty of several substantive counts; Joseph Licata was found not guilty.In addition to prison terms, the defendants each face possible fines of up to $250,000 for each count.
The case is being investigated by the FBI, the Internal Revenue Service Criminal Investigation Division, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section, and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole.
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PATTY HARTMAN, Media Contact, 215-861-8525Massachusetts Man Sentenced to 24 Months in Federal Prison on Money Laundering, Gambling and Tax ViolationsRead the Press Release
CONCORD – John Giannelli, Sr., 66, of Danvers, Massachusetts, was sentenced to 24 months in federal prison today after pleading guilty on September 27, 2012 in the United States District Court for the District of New Hampshire to one count of money laundering, one count of operating an illegal gambling business, and five counts of impeding the administration of the Internal Revenue laws, announced United States Attorney John P. Kacavas.
Giannelli operated a computer based sports betting business while he resided in Peabody, Massachusetts and then Kingston, New Hampshire. Giannelli controlled access, through the use of user identifications and passwords, to a gambling site and granted access to that site to dozens of agents. Approximately 300 customers making sports related wagers were able to gain access to the site through the agents and Giannelli was able to monitor the overall betting activity. A forensic analysis of betting records obtained from computers seized at Giannelli’s residence in March 2012 established that the operation generated gross profits of approximately $188,000 over a twelve week period.
The money laundering charges arose from a scheme in which Giannelli was listed as an employee on a former sports betting customer’s business. Giannelli provided the business with cash proceeds generated by the gambling business and, in return, the business issued paychecks to Giannelli, thus making it appear that Giannelli’s income was legitimate. The business also caused to be generated false W-2 forms that Giannelli used to support tax returns filed with the IRS. Between 2003 and 2007, Giannelli laundered approximately $452,000 in proceeds through the scheme. The District Court ordered a money judgment forfeiture in the amount of $452,000.
The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service.
Manhattan U.S. Attorney Announces Arrest of Business Owner for Failing to Pay More Than $250,000 in Payroll TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the indictment of TREVOR WHITTINGHAM, an owner of parking lots in Manhattan, for a scheme in which he allegedly failed to pay more than $245,000 in payroll taxes to the IRS. WHITTINGHAM was arrested this morning at his residence in Fort Lee, New Jersey, in connection with today’s charges and will be presented and arraigned before U.S. District Judge Richard J. Sullivan at 3:30 p.m. this afternoon.
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:
WHITTINGHAM owned and controlled two companies, EZ Going Park Here and We Have Cars II, through which he operated parking lots in Harlem and other parts of upper Manhattan, New York. WHITTINGHAM was responsible for collecting, accounting for and paying payroll taxes on behalf of both of these companies. From December 2006 through June 2009, WHITTINGHAM caused EZ Going Park Here and We Have Cars II to deduct and collect payroll taxes from its employees. The majority of those payroll taxes, however, were not paid over to the IRS as required. Instead, WHITTINGHAM used the corporate funds of EZ Going Park Here and We Have Cars II to pay for various personal items and otherwise finance a lavish lifestyle. As a result, from 2005 through 2009 EZ Going Park Here and We Have Cars II accumulated approximately $251,265 in unpaid payroll tax liabilities.
WHITTINGHAM, 63, is charged with 13 counts of failing to pay over payroll taxes to the IRS. He faces a maximum sentence on each count of five years in prison, or a total of 65 years in prison on all counts.
Mr. Bharara praised the efforts of IRS-CI in the investigation. He also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Special Assistant U.S. Attorney Andrew Young is in charge of the prosecution.
The charges and allegations contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Trevor Whittingham Indictment
Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Christopher A. Crofts announced today that on January 2, 2013, Aaron David Mbonu, a 36-year-old Citizen of the Federal Republic of Nigeria, appeared in Federal District Court for sentencing before Chief Federal District Court Judge Nancy D. Freudenthal on a single count of sexual abuse of a minor. The charge carried a maximum penalty of 15 years imprisonment; a $250,000.00 fine; supervised release of not less than three (3) years; restitution; and a $100.00 special assessment. Mbonu received 51 months of imprisonment, to be followed by ten years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. The charge stemmed from an offense which occurred between March 6, 2012 and March 16, 2012, on the Wind River Indian Reservation and involved a victim who was at least twelve (12) years of age but had not yet attained the age of sixteen (16) years, and was at least four (4) years younger than the Defendant. The case was investigated by the Federal Bureau of Investigation.
Man Admits Committing Several Violent, Takeover-Style, Armed Bank RobberiesRead the Press Release
Co-Conspirator Also Murdered a Brinks Security Guard
DALLAS — Jesus Sandoval, 50, appeared in federal court this morning and pleaded guilty, before U.S. District Judge Barbara M. G. Lynn, to his role in three violent, takeover-style, armed bank robberies that he and co-conspirator Enrique Lopez, 28, committed in 2009, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Sandoval pleaded guilty to one count of conspiracy to commit bank robbery and two counts of using, carrying, and brandishing a firearm during and in relation to, and possessing a firearm in furtherance of a crime of violence. The conspiracy count carries a maximum penalty of five years in federal prison and each of the firearm counts carry a maximum penalty of life in prison. Each count also carries a maximum potential fine of $250,000. Sentencing is set for May 10, 2013, at 1:30 p.m., before Judge Lynn.
Sandoval and Lopez, were arrested, by officers with the Balch Springs Police Department, as they fled the scene after committing the armed robbery of the Chase Bank on Lake June Road in Balch Springs, Texas, on October 3, 2009.
Lopez was sentenced in October 2012 to two life sentences plus 85 years in federal prison for murdering a Brinks Security Guard and committing five violent, takeover-style, armed bank robberies.
Factual resumes filed in the case detail the robberies. On February 13, 2009, Lopez and Sandoval, armed with firearms, robbed a Loomis security guard as he replenished cash in an automatic teller machine (ATM) located at the Bank of America on Camp Wisdom Road in Dallas. Lopez grabbed the guard from behind, put a pistol to his neck, threatened to kill him and demanded money. The two took the guard’s service weapon and money bags, and Lopez fired at the Loomis driver.
On August 1, 2009, Lopez and Sandoval, each armed with a firearm, robbed the Wachovia Bank located at 39703 Lyndon B. Johnson Freeway, in Dallas, threatening bank employees with death during the course of the robbery. After taking the cash, they fled in a vehicle fitted with stolen license plates.
On the morning of October 3, 2009, Sandoval and his accomplice, Lopez, each armed with a loaded pistol, entered the Chase Bank located at 12329 Lake June Road in Balch Springs. The bank was celebrating its grand opening and more than 40 people were in the bank. Lopez and Sandoval, with their pistols, threatened the lives of the people inside the bank and claimed they had a bomb in the backpack that would detonate if anyone notified the police. Following a high-speed chase, Lopez and Sandoval were arrested. Police recovered the loaded pistols, the bank’s money and the backpack from the car, which, while it did not contain a bomb, contained two boxes of ammunition.
The case was investigated by the FBI, the Dallas Police Department and the Balch Springs Police Department. Assistant U.S. Attorneys Brandon McCarthy and Jerri Sims prosecuted.
Leader of Nevada – Alaska Oxycodone Ring Sentenced to 15 Years in Prison and Ordered to Forfeit over $1.2 MillionRead the Press Release
Las Vegas, Nev. – A Las Vegas man who operated an illegal drug trafficking organization that transported prescription drugs from Las Vegas to Anchorage, Homer, Kenai, Soldotna and Wasilla, Alaska, and laundered over $1 million through bank accounts in Las Vegas, was sentenced today to 15 years in prison for his guilty pleas to conspiracy, drug and money laundering charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Nicholas Ghafouria, 28, was sentenced by Senior U.S. District Judge Roger L. Hunt. In addition to the prison time, Ghafouria was also ordered to forfeit over $1.2 million in cash and property, and must serve three years of supervised release following his release from prison. Ghafouria pleaded guilty on Oct. 1, 2012, and was the last of the 27 defendants charged in the scheme to be sentenced, most of whom were sentenced to prison. Nineteen of those defendants were from Alaska and eight were from Las Vegas.
“Over the last several years, we have been working with state and local law enforcement and health care providers to attack the growing prescription drug abuse problem in Nevada,” said U.S. Attorney Bogden. “Since January 2010, over 100 individuals, including four doctors and a pharmacist, have been charged in Nevada with unlawfully distributing highly addictive prescription painkillers.”
Between May 2009 and October 2010, Ghafouria organized and led a group of individuals who distributed over 4,000 oxycodone pills in Alaska and laundered at least $1.2 million in cash proceeds from the unlawful distribution of the drugs. Ghafouria and his co-conspirators used various ways to get the drugs to Alaska, including sending them in packages and transporting them on airplane flights. Ghafouria sold the pills for approximately $65 each in Alaska. Co-conspirators in Alaska either provided money directly to couriers who delivered it to Ghafouria in Las Vegas, or they deposited money into bank accounts in Alaska which was withdrawn in Las Vegas by individuals under Ghafouria’s direction.
The cases were investigated by IRS Criminal Investigation in Las Vegas, the FBI in Las Vegas and Anchorage, DEA in Las Vegas and Anchorage, Bureau of Alcohol, Tobacco, Firearms, and Explosives in Anchorage, Department of Homeland Security in Anchorage, Las Vegas OCDETF, Las Vegas Metropolitan Police Department, United States Attorney’s Office, District of Alaska, Alaska Bureau of Alcohol and Drug Enforcement, Alaska State Troopers (Soldotna SERT, Soldotna ABI, Anchor Point Troopers), Alaska Wildlife Troopers, Kenai Police Department, Anchorage, Kenai and Mat-Su Judicial Services, Kenai District Attorney’s Office, Soldotna Police Department, Kenai Adult Probation, Alaska Department of Corrections, United States Fish and Wildlife Service, and Alaska National Guard. The cases were prosecuted by Assistant United States Attorneys Patrick Walsh and Kishan Nair.
Leader of Internet Piracy Group “IMAGiNE” Sentenced in Virginia to 60 Months in Prison for Criminal Copyright ConspiracyRead the Press Release
WASHINGTON – The leader of the Internet piracy group “IMAGiNE” was sentenced today to serve 60 months in prison, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Jeramiah B. Perkins, 40, of Portsmouth, Va., was sentenced by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. In addition to his prison term, Perkins was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution. On Aug. 29, 2012, Perkins pleaded guilty to one count of conspiracy to commit criminal copyright infringement.
Perkins was indicted along with three other defendants on April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters.
According to court documents, Perkins directed and participated in using receivers and recording devices in movie theaters to secretly capture the audio sound tracks of copyrighted movies and then synchronized the audio files with illegally recorded video files to create completed movie files suitable for sharing over the Internet among members of the IMAGiNE Group and others.
Perkins admitted he took the lead in renting computer servers in France and elsewhere for use by the IMAGiNE Group. He also admitted he registered domain names for use by the IMAGiNE Group, and opened e-mail and PayPal accounts to receive donations and payments from persons downloading or buying IMAGiNE Group releases of pirated copies of motion pictures and other copyrighted works.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert and Gregory A. Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on May 9, June 22 and July 11, 2012, respectively. Lambert and Lovelady were sentenced on Nov. 2, 2012, to 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to 40 months in prison. A fifth co-defendant, Javier E. Ferrer, was charged in an information on Sept. 13, 2012, for his role in the IMAGiNE Group, and he pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Nov. 29, 2012. Ferrer is scheduled to be sentenced on March 14, 2013.
The investigation of the case and the arrests were conducted by agents with HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Leader of Multi-Million Dollar Real Estate Fraud Scheme Pleads Guilty to Fraud and Money LaunderingRead the Press Release
Defrauded Investors in Multiple States and Abroad; Defendant Faces
Up to 25 Years in PrisonTRENTON, N.J. – An Ocean County, N.J., man today admitted that he ran a real estate investment fraud scheme that caused $200 million in losses and then laundered the proceeds of the scheme, U.S. Attorney Paul J. Fishman announced.
Eliyahu Weinstein, a/k/a “Eli Weinstein,” a/k/a “Edward Weinstein,” a/k/a “Eddie Weinstein,” 37, of Lakewood, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to two counts of the Indictment pending against him: one count of conspiracy to commit wire fraud, and one count of money laundering. Weinstein’s trial on these charges was scheduled to start Jan. 7, 2013. Weinstein’s co-defendant, Vladimir Siforov, is charged in the Indictment with three counts of wire fraud and remains a fugitive.Under the terms of the plea agreement, which Judge Pisano accepted today, Weinstein may be sentenced to up to 25 years in prison and up to three years of supervised release. He must also provide a full accounting of all monies paid to him during the period covered by the Indictment. Weinstein has also agreed to forfeit $2 million in seized property and pay restitution to the victims of his offenses. Sentencing is scheduled for April 2, 2013.
“Weinstein shamelessly exploited investors’ trust, using doctored documents for properties he didn’t own – including in a town that doesn’t exist – and continued to commit crimes while out on bail,” U.S. Attorney Fishman said. “With false promises of sound investments and charitable donations, he stole $200 million, spending freely on fancy cars, jewelry and gambling trips. And in using victims’ money to collect Judaica, Weinstein robbed from his own community’s present to stockpile artifacts of its past.”FBI Acting Special Agent in Charge David Velazquez said: “Mr. Weinstein came to the wrong conclusion when he assumed he would never be held accountable for his criminal activity. His greed got the best of him and he will pay a heavy price before the law for the frauds he committed.”
According to documents filed in this case and statements made in court:From June 2004 through August 2011, Weinstein orchestrated – with the help of Siforov and others – a real estate investment fraud scheme, headquartered in Lakewood, that has resulted in multi-million dollar losses to victim investors.
To induce victims to invest, Weinstein and others made various types of materially false and misleading statements and omissions. Weinstein and others told victims that Weinstein’s inside access to certain real estate opportunities allowed him to buy a particular piece of property at a below-market price. Weinstein and others also told victims that their money would be used to purchase a specific property, and the property would be quickly resold – or “flipped” – to a third-party purchaser that Weinstein had lined up. Victims were also told that the victims’ money would be held in escrow until the closing of a purported real estate transaction.
Weinstein bolstered his lies by creating, and causing to be created, various types of fraudulent documents, including “show checks,” which Weinstein led victims to believe represented Weinstein’s investments in specific transactions, but which in fact were never deposited; forged checks, which had actually been negotiated for small amounts, but which Weinstein altered so as to appear worth millions of dollars; and various kinds of phony legal documents, including mortgages, and deeds.Weinstein and others initially targeted victims from the Orthodox Jewish community to which Weinstein belonged, exploiting his standing in, and knowledge of, the customs and practices of this community to further the scheme. This type of illegal activity is commonly referred to as “affinity fraud,” and refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The perpetrators of affinity fraud scams frequently are, or pretend to be, members of the group, and they exploit the trust and friendship that exist in groups of people who have something in common.
Weinstein abused the Orthodox community’s practice of engaging in transactions based on trust, and without paperwork, to obtain money from his victims without substantial written records. He would then falsely represent that specific real estate transactions existed, that the victims’ monies were used to fund those transactions, or that the victims’ profits from those transactions were being “rolled” into new investments. Weinstein also used a portion of the fraud’s proceeds to fund “charitable and religious contributions,” which he used to elevate his reputation within the Orthodox Jewish community.By 2010, Weinstein had tarnished his reputation in the Orthodox Jewish community due to the massive losses caused by his fraud scheme and found it difficult to obtain more money to further the scheme from within the Orthodox Jewish community. In April 2010, Weinstein and others began soliciting victims from outside of the Orthodox Jewish community, whom they defrauded out of additional millions of dollars.
Weinstein also used millions of dollars fraudulently obtained from his victims to fund his own lavish spending, including millions of dollars worth of antique Judaica and other artwork; a multi-million dollar collection of jewelry and watches; gambling in Las Vegas and elsewhere; and Weinstein’s personal expenses, including millions of dollars in credit card bills, millions of dollars in legal bills, and luxury car-lease payments.
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 guilty plea. He also credited agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit and by Rachael A. Honig, Deputy Chief of the Office’s Criminal Division.The charges and allegations against Siforov are merely accusations, and he is considered innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crime.
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Defense counsel: Robert J. Cleary Esq., New York
Weinstein, Eliyahu Indictment
Lansdale Man Charged in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA - Willie G. Manley, Jr., 62, of Lansdale, Pennsylvania, was charged yesterday, by Information, with one count of conspiracy to commit loan and wire fraud, three counts of loan fraud, one count of making a false statement in connection with a Federal Housing Administration Loan, two counts of wire fraud, and aiding and abetting, announced United States Attorney Zane David Memeger.
The information alleges a massive mortgage fraud conspiracy the operated between May 2004 and February 2009, primarily in the West Philadelphia section of the city of Philadelphia. Manley, an accountant, is alleged to have created false income documents, such as W-2 forms, paystubs, and Form 1040 income tax returns that were submitted to lenders to help induce the lenders into issuing mortgages for the properties. The information alleges that other co-conspirators included an appraiser who issued grossly inflated appraisals, a title agent who created false title insurance policies, contractors who submitted false receipts to show home repairs that had never been done, and numerous straw buyers whose names and identities were used to purchase the properties. The information alleges that a Philadelphia-based property settlement company - “KREW Settlement Services” - was at the center of the conspiracy. The information alleges that all told, the mortgage fraud scheme involved more than 100 properties and over $20 million in loan proceeds, with most of the mortgages being unpaid and the properties falling into foreclosure.
If convicted, the defendant faces a maximum possible sentence 137 years in prison, five years supervised release, restitution of up to $13.7 million, a fine of up to $4 million and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Kevin Alexander Santamaria-oviedo Sentenced for Unlawful Transfer of Identification Documents and Possession of Document-making ImplementsRead the Press Release
KEVIN ALEXANDER SANTAMARIA-OVIEDO, age 22, a citizen of El Salvador, was sentenced today in federal court by U. S. District Judge Jane Triche Milazzo to twenty-one (21) months imprisonment, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Milazzo ordered that SANTAMARIA be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of his supervised release.
According to court documents, on September 27, 2012, SANTAMARIA pled guilty to knowingly transferring a fraudulent Social Security card and a fraudulent Permanent Resident Card (also known as a “green card”) on April 4, 2012, knowing that such documents were produced without lawful authority, and the false identification documents appear to have been issued by or under the authority of the United States. SANTAMARIA also pled guilty to possession of document-making implements, specifically a card printer, with intent that the document-making implements would be used to produce false identification documents. SANTAMARIA illegally entered the United States. SANTAMARIA’s wife, JENNIFER MARILYN HERRERA, was sentenced to a two-year term of probation on December 20, 2012 for her role in the scheme.
The case was investigated by the U. S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations. The case was prosecuted by Special Assistant U. S. Attorney Robert Weir.Kansas City Man Charged with Nine Robberies in Less Than Two WeeksRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., was charged today with committing robberies at nine stores in less than two weeks, U.S. Attorney Barry Grissom said Thursday.
Llewellyn Richard, 44, Kansas City, Kan., was charged in U.S. District Court in Kansas City, Kan., with nine counts of robbery.
Court records identified the robberies as:
– Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Dollar General, 2272 Quindaro, Kansas City, Kan., Dec. 25, 2012.
– Family Dollar, 1251 Central Avenue, Kansas City, Kan., Dec. 25, 2012.
– Quick Service gas station, 7959 State Avenue, Kansas City, Kan., Dec. 25, 2012.
– Boost Mobile, 7640 State Avenue, Kansas City, Kan., Dec. 26, 2012.
– Cricket store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
– Sally’s Beauty Supply, 5020 Roe Boulevard, Roeland Park, Kan., Dec. 28, 2012.
– Dollar General, 2801 S. 47th Street, Kansas City, Kan., Dec. 28, 2012.
– Family Dollar, 3129 State Avenue, Kansas City, Kan., Dec. 30, 2012.
According to a criminal complaint and affidavit, the first robbery at the Boost Mobile store occurred at about 1:14 p.m. Dec. 21 when Richard walked behind the counter, grabbed a clerk around the waist and demanded money. He gestured to her as if he had a gun in his jacket pocket. He fled the store with the money.In the second robbery at the Dollar General Store on Dec. 24, he walked behind the counter and pushed the clerk. The clerk stated she felt what she believed to be a gun that the robber shoved into her back. She said he threatened her, saying “Don’t look at me! Don’t turn around!”
On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped a 1997 red GMC pickup. The driver pulled over and then drove away when the officers approached the truck. A pursuit ended when the truck crashed and Richard was arrested.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
KC Man Pleads Guilty to Northland Bank RobberyRead the Press Release
KANSAS CITY, Mo. - David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man pleaded guilty in federal court today to robbing the Bank of America.
Edward L. Green, 24, of Kansas City, pleaded guilty before U.S. District Judge Beth Phillips to the charge contained in an Aug. 7, 2012, federal indictment.
Co-defendants Robert Lowe, 27, and Rolando Winters, 25, also of Kansas City, have also pleaded guilty to their roles in the bank robbery and await sentencing.
Green admitted today that he drove the getaway car for the July 19, 2012, robbery in which they stole $5,863 from the Bank of America at 661 N.W. 55th Terr., Kansas City. Lowe and Winters entered the bank in order to rob it while Green positioned the vehicle to pick them up after the robbery.
Upon entering the bank, Winters announced that “This is a robbery” and demanded money from a teller. Winters told the teller that her life depended on it and to move quicker. Winters kept his hand in his waistband and the teller feared that he may have a gun. Lowe took money from another teller while Winters took money from the first teller. Lowe and Winters then fled from the bank.
According to court documents, law enforcement officers had been conducting surveillance on Green, Lowe and Winters as the men were apparently casing several banks in North Kansas City, Mo., and in Kansas City-North. When Lowe and Winters ran out of the bank, law enforcement officers ordered them to stop. Green was arrested without incident but Lowe and Winters continued to run around the apartment complex. They ran into an undercover law enforcement truck around the corner of a building and were taken into custody. Winters was transported to North Kansas City Hospital for treatment of injuries he received from running into the vehicle.
Under federal statutes, each of the defendants is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Clark. It was investigated by the FBI.Justice Department Reaches Settlement with Law Firm over Discrimination Against Deaf IndividualsRead the Press Release
The Justice Department today announced a settlement agreement with Peroutka and Peroutka P.A., a debt collection law firm based in Pasadena, Md., to resolve allegations that the law firm violated the Americans with Disabilities Act (ADA) by discriminating against people who are deaf.
The settlement agreement resolves two complaints alleging that Peroutka discriminated against deaf individuals by refusing to accept Video Relay Service calls, which were necessary for the complainants to communicate by phone with Peroutka employees. According to the complaint, Peroutka employees also hung up on one complainant and informed the other complainant that Peroutka could not assist her and that she had to call back at a specific time when a manager was present.
“People with disabilities cannot be denied services simply because they use alternative ways to communicate,” said Assistant Attorney General Thomas E. Perez. “The ADA does not tolerate this type of discrimination and neither does the Justice Department.”
Under the settlement, Peroutka is required to pay $30,000 in compensation to the complainants, to revise its policies and procedures to ensure that the office accepts Video Relay Service calls and treats people with disabilities equally, and to train its employees on the ADA’s obligations.
Title III of the ADA prohibits discrimination against people with disabilities at places of public accommodation, including law firms. Among other things, Title III requires public accommodations to afford people with disabilities full and equal enjoyment of their goods, services, and facilities. The ADA also requires public accommodations to make reasonable modifications to their policies, practices, and procedures when necessary to afford equal access to people with disabilities, unless doing so would fundamentally alter the goods or services provided.
Those interested in learning more about this settlement or an entity’s obligations under the ADA may call the Justice Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access its ADA website at www.ada.gov . Additionally, ADA complaints may be filed by email to [email protected] .
Judge Sentences French Citizen for Airplane IncidentRead the Press Release
PHILADELPHIA - Philippe Jeannard, 61, of La Rochelle, France, was sentenced today to time served for one count of fraud in connection with an identification document. Jeannard has been in federal custody since March 21, 2013. He was arrested after he boarded a commercial airplane, on March 20, 2013, at Philadelphia International Airport, using a fraudulent Air France identification card of a former Air France employee and gained access to the plane’s cockpit.
U.S. District Court Judge Gene E.K. Pratter also ordered Jeannard to pay $4,875 in reimbursement for counsel’s fees that she found he had the ability to pay. He was also ordered to pay a $100 special assessment. Jeannard will be deported and will not be permitted back into the United States without written permission from the Secretary of the Department of Homeland Security.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations, the FBI, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney K.T. Newton.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Joplin Woman Pleads Guilty to Making False Statements to Receive Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman pleaded guilty in federal court today to making false statements in order to obtain federal disaster benefits following the May 22, 2011, tornado.
Pamala Ann Shafer, 37, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in an April 3, 2012 federal indictment.
Shafer admitted that she applied for federal disaster benefits by falsely claiming that her residence had been damaged by the tornado. Shafer also filed an application for temporary rental assistance. On the basis of Shafer’s representations, FEMA authorized a $938 payment. Shafer admitted today she did not reside at that address at the time of the tornado. Rather, the apartment had been owned by another individual, who did not know Shafer.
Shafer is the fifth defendant to plead guilty in cases related to fraudulently receiving federal disaster benefits following the tornado. In separate and unrelated cases, Wanda Gail McBride, Ronald Martell Irby and Karen Marie Parks, all of Joplin, pleaded guilty and have been sentenced. Amber Nicole Peters of Joplin pleaded guilty and awaits sentencing.
Under federal statutes, Shafer is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI, Homeland Security Investigations-Office of Inspector General, and the Joplin, Mo., Police Department.Janssen Pharmaceuticals Pleads Guilty and Is Sentenced for MisbrandingRead the Press Release
PHILADELPHIA – Janssen Pharmaceuticals, Inc. (Janssen), a subsidiary of health care giant Johnson & Johnson (J&J), pleaded guilty today to a one count information charging Janssen with introducing a misbranded drug, Risperdal, into interstate commerce. U.S. District Court Judge Timothy J. Savage sentenced the company, ordering payment of a $344 million fine and forfeiture of $66 million.
Risperdal, an atypical anti-psychotic drug, was originally approved only to treat the management of the manifestations of psychotic disorders. On March 3, 2002, the approved use was narrowed to treatment of schizophrenia only. Janssen introduced Risperdal for a new, unapproved use, rendering the product misbranded. In a plea agreement resolving these charges, Janssen admits that between March 3, 2002, and December 31, 2003, it promoted Risperdal to health care providers for treatment of psychotic symptoms and associated disturbances exhibited by elderly, non-schizophrenic dementia patients, uses not approved as safe and effective by the Food and Drug Administration (FDA).
The Federal Food, Drug and Cosmetic Act (FDCA) requires a pharmaceutical company to specify the intended uses of a product in its new drug application to the FDA. Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses. A manufacturer’s promotional activities of a drug for a use not approved by the FDA are evidence of its intent to distribute the drug for a new, unapproved use, also known as “misbranding.”
The case was investigated by the Health and Human Services-Office of Inspector General, the Food and Drug Administration’s Office of Criminal Investigations, and the Defense Criminal Investigative Service of the Department of Defense.
The criminal case was prosecuted by Assistant U.S. Attorneys Albert Glenn and Scott Cullen.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges Philadelphia Man with Four Bank RobberiesRead the Press Release
Kevin Neal, 36, of Philadelphia, PA, was charged today by indictment with four counts of bank robbery, announced United States Attorney Zane David Memeger. According to the indictment, Neal robbed the First Niagara Bank, located at 9869 Bustleton Avenue, Philadelphia, on January 10, 2013; the First Niagara Bank, located at 11730 Bustleton Avenue, Philadelphia, on January 16, 2013; the PNC Bank, located at 123 Old York Road, Jenkintown, on February 16, 2013; and the Trumark Financial Credit Union, located at 7306 Castor Avenue, Philadelphia, on March 13, 2013.
If convicted of all charges, Neal faces a maximum sentence of 80 years in prison, a fine of up to $1 millionod of supervised release of three years, a $1,000,000 fine, a $100 special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Hyattsville Man Sentenced for Selling Misbranded Prescription and Non-Prescription DrugsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Luis Alberto Jimenez, age 33, formerly of Hyattsville, Maryland, today to 10 months incarceration, with five months of that being home detention with electronic monitoring, followed by two years of supervised release, for selling misbranded, non-FDA approved prescription and non-prescription drugs. Judge Williams also ordered Jiminez to pay a $3,000 fine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“The FDA - Office of Criminal Investigations is committed to working with the DEA and Prince George’s County Police Department to ensure the public is not endangered by pseudo medical practitioners dispensing and administering unapproved medications,” said Special Agent in Charge Antoinette V. Henry of the FDA Office of Criminal Investigations, Metro Washington Field Office.
According to his plea agreement, from 2007 to March 27, 2012, Jimenez purchased misbranded prescription and nonprescription drugs from conspirators who brought the drugs into the United States from El Salvador and elsewhere, and then sold the drugs from his residence. Jimenez is not a doctor licensed to administer prescription drugs, nor a pharmacist, and the drugs Jimenez sold had not been approved by the FDA.
Twice in 2012, Jimenez sold misbranded prescription and nonprescription drugs to an undercover law enforcement agent. According to court documents and testimony at today’s hearing, the undercover agent told Jimenez that she was pregnant and had a history of blood clots. Jimenez provided her medications such as Nomagest, even telling her it would help her blood clots. Nomagest cannot be legally sold in the U.S., can harm unborn babies, and in fact can increase the risk of blood clots. Pregnant woman and individuals with blood clots are warned not to take the active ingredient, Estradiol, found in Nomagest.
Agents executed a search warrant at Jimenez’s residence and seized more than $19,000 worth of prescription and nonprescription drugs, along with documents showing purchases and sales of over $30,000.
United States Attorney Rod J. Rosenstein commended the DEA, FDA - Office of Criminal Investigations and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney Ann O’Brien, assigned from the Department of Justice’s Antitrust Division, who prosecuted the case.
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Husband and Wife Sentenced for 10-Year Long Tax Defiance SchemeRead the Press Release
Defendants Claimed Not To Be U.S. Citizens and To Be Exempt from Paying Taxes,
Then Falsely Sought Refunds of Over $420,000ATLANTA – Stephen Paul Thomas, 46, and Patricia Denese Anderson, 51, of Lawrenceville, Georgia, who waged a 10-year tax defiance scheme against the IRS, were sentenced today by United States District Judge Charles A. Pannell. Thomas was sentenced to serve 5 years in federal prison and Anderson was sentenced to 4 years, 3 months in federal prison. On October 16, 2012, after a six-day trial, Thomas and Anderson were convicted by a jury of conspiring to defraud the United States and making false claims upon the Internal Revenue Service.
“For over a decade, Thomas and Anderson waged a campaign of obstruction against the IRS, culminating in filing false tax returns claiming hundreds of thousands of dollars in false refunds,” said United States Attorney Sally Quillian Yates. “They cheated not only the government, but their fellow taxpayers. The sentence in this case demonstrates that those who defy the tax laws by obstructing the IRS and filing false and frivolous tax returns will be prosecuted and punished for their conduct.”“The term voluntary compliance means that each of us are responsible for filing a tax return when required and for paying the correct amount of tax,” stated Acting Special Agent in Charge, IRS Criminal Investigation, Veronica Hyman-Pillot. “That responsibility should not be taken lightly. The defendants chose to take extreme measures in order not to file and pay taxes and they are now convicted felons with a prison term to serve.”
Thomas was sentenced to 5 years in prison, to be followed by 3 years of supervised release, and fined $10,000. Anderson was sentenced to 4 years, 3 months in prison, to be followed by 3 years of supervised release, and fined $10,000.
According to United States Attorney Yates, the charges and other information presented in court: Thomas and Anderson, who were married and jointly owned and operated an outdoor yard furnishing store and general contracting business in Duluth, Georgia, stopped filing federal income tax returns in the 1990s. They then hired American Rights Litigators (ARL), an organization that sold and promoted tax defiance schemes, to send obstructive and harassing materials to the IRS on their behalf. The IRS repeatedly sent notices to Thomas and Anderson notifying them that they had to pay their federal income taxes and that they had to comply with the tax laws.
After the IRS shut down ARL as a result of fraudulent anti-tax actions, Thomas and Anderson continued to send a variety of obstructive, frivolous and harassing documents to IRS and Department of Treasury officials instead of paying their taxes. These documents included statements that they were not United States citizens but instead were “American citizens”; that they were not subject to the federal income tax laws; and that paying income tax was voluntary. Thomas and Anderson also established business bank accounts using fictitious tax identification numbers for the purpose of hiding the money inside the accounts from the IRS. They also instructed a financial institution as well as a bartering exchange company that their business operated solely in Belize, knowing that their business was located and did business throughout the state of Georgia.
Finally, in 2009 after a decade of not filing tax returns, Thomas and Anderson submitted two false tax returns claiming over $420,000 in fraudulent refunds from the IRS. That same year, Thomas and Anderson also submitted fictitious financial instruments to the federal government, including a document purporting to be a $100 billion private registered bond, and instructed the government to use this bogus bond to pay any of their debts to the government.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Thomas J. Krepp and Sally B. Molloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Honduran Citizen Pleads Guilty to Being Present in the United States IllegallyRead the Press Release
Oscar Naun Torres-Hernandez, 22, a citizen of Honduras, pled guilty today in United States District Court in Benton to charges that he was illegally present in the United States after having been previously removed by immigration officials, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment charging Torres-Hernandez was returned by a Federal Grand Jury on November 6, 2012, after he was taken into custody by an Illinois State Police trooper on October 15th at the direction of Immigration and Customs Enforcement agents following a routine traffic stop on Interstate 57 in Effingham County during which the trooper learned that Torres-Hernandez was an illegal alien.
Sentencing was set for April 25, 2013, at 10:30 a.m. at the United States District Courthouse in Benton. Torres-Hernandez faces up to 2 years in prison, a $250,000 fine, and 3 years of supervised release.
Torres-Hernandez has been held in federal custody since his arrest on October 15th and was returned to the custody of the United States Marshal to await sentencing.
The case was investigated by Immigration and Customs Enforcement, which is an agency of the Department of Homeland Security, and the Illinois State Police.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Honduran Charged with Illegally Re-entering U.S. After DeportationRead the Press Release
PITTSBURGH, Pa. - A citizen of Honduras has been indicted by a federal grand jury in Pittsburgh on charges of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
The indictment, returned on Jan. 2, named Alex Omar Colindres-Ortiz, formerly from Choluteca, Honduras, as the sole defendant.
According to indictment, Colindres-Ortiz, an alien, was removed from the United States on September 3, 2010. Colindres-Ortiz was found in New Castle, Lawrence County, on Dec. 5, 2012, without having been given permission to re-enter the United States.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hartford Man Pleads Guilty to Federal Drug Distribution ChargesRead the Press Release
January 3, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ANDREW PARENTE, 76, of Hartford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of conspiracy to possess with intent to distribute a Schedule II controlled substance, and one count of possession with intent to distribute and distribution of a Schedule II controlled substance.
According to court documents and statements made in court, in October and November 2011, PARENTE and Robert Gentile conspired to distribute and distributed Schedule II controlled substances, including oxycodone, in a form commonly known as OxyContin, and hydromorphone, in a form commonly known as Dilaudid.
Judge Chatigny has scheduled sentencing for March 22, 2013, at which time PARENTE faces a maximum term of imprisonment of 20 years on each count.
PARENTE has been released on a $50,000 bond since his arrest on February 10, 2012.
Gentile has been detained since his arrest on February 10, 2012. On November 14, 2012, he pleaded guilty to multiple drug and firearms offenses. He is scheduled to be sentenced on April 12.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the U.S. Department of Health and Human Services, Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]Hannibal Man Sentenced to 21 Years in Prison for Illegally Possessing a Sawed-off ShotgunRead the Press Release
JEFFERSON CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Hannibal, Mo., man was sentenced in federal court today for illegally possessing a sawed-off shotgun.
David Lee Ardrey, 45, of Hannibal, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 21 years and 10 months in federal prison without parole.
On June 6, 2012, Ardrey was convicted of being a felon in possession of a firearm and of illegally possessing a sawed-off shotgun.
Ardrey was arrested on June 8, 2011, during a traffic stop in which he was the passenger in the vehicle. Ardrey provided law enforcement officers with false identification, including a driver’s license and Social Security card in the name of another person (who was deceased). Ardrey grabbed the arresting officer’s uniform and ripped his shirt, after which he was subdued and handcuffed. Ardrey refused to get into the patrol vehicle and had to be pulled into the vehicle by an officer in the back seat. While officers searched the vehicle in which Ardrey was riding, he tried to escape from the patrol vehicle by kicking out the window. Officers pushed him back into the vehicle, but when they opened the door he attempted to push past the officers. While officers held him on the ground and placed leg restraints on him, Ardrey continued kicking at the officers. One of the officers went to the hospital for treatment of possible broken fingers after Ardrey caught and held them in the handcuff chain during the struggle.
Law enforcement officers searched the vehicle and found a loaded, sawed-off Rossi .410 shotgun that belonged to Ardrey, as well as seven shotgun shells.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ardrey has two prior felony convictions for burglary and two prior felony convictions for assault, as well as prior felony convictions for armed criminal action, stealing and receiving stolen property.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Centralia, Mo., Police Department, the Hallsville, Mo., Police Department and the Sturgeon, Mo., Police Department.Greenwich Man Sentenced to Federal Prison for Possessing Unregistered Machine GunsRead the Press Release
January 3, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that THOMAS BELLUCI, 51, of Greenwich, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for possessing unregistered machine guns. BELLUCI also was ordered to serve two months of home confinement immediately after his release from prison, perform 100 hours of community service and pay a $6,000 fine.
According to court documents and statements made in court, on August 22, 2011, Greenwich Police officers encountered BELLUCI at his residence on Cutler Road in Greenwich after a neighbor had reported that shots had been fired on BELLUCI’s property. BELLUCI, who was alone in the house, initially stated that he did not hear any gunshots and he allowed officers to enter his home. BELLUCI then showed officers only one side of the house, claimed that the living room encompassed the entire house and that there was no second floor to the house. After BELLUCI led the officers through a door, which he at first stated was to a closet but, in fact, led to a hallway that opened into other rooms, BELLUCI ran into a room and locked the door. Two officers then forced opened the door and spotted BELLUCI bent over several long gun cases that were on the floor.
When the officers asked BELLUCI if he had fired a weapon earlier, he admitted that he had fired a handgun out of his kitchen window. However, he would not tell the officers where the firearm was. The officers then attempted to restrain BELLUCI, but he resisted, struggled with one officer and was tased by the other. BELLUCI was placed into an ambulance and was taken to the hospital.
A subsequent search of BELLUCI’s home revealed more than 160 firearms, including 10 machine guns, at least eight of which were operational and fired multiple rounds with a single squeeze of the trigger. Officers seized the firearms, as well as thousands of rounds of ammunition and other accessories. None of the machine guns were registered in the National Firearms Registration and Transfer Record.
BELLUCI was arrested on federal charges on May 11, 2012, and was detained until his release on a $500,000 surety bond on July 30, 2012. On October 9, 2012, he pleaded guilty to one count of unlawful possession of a machine gun. He has been ordered to report to prison on February 14, 2013.
This matter was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenwich Police Department. The case was prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
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[email protected]GoDaddy.com Bowl and Pre-Bowl EventRead the Press Release
Kenyen Brown, U.S. Attorney for the Southern District of Alabama, announces that the United States Attorney’s Office for the Southern District of Alabama is collaborating with the GoDaddy.com Bowl, the athletic departments of Arkansas State University and Kent State University, Mt. Hebron Church Ministries as well as other local churches, Team Focus, Volunteers of America, the Mobile Chapter of 100 Black Men, and Mobile Community Action in order to use athletics as a means to reach at-risk youth between the ages of 10-15.
An “Enlarge Your Vision” meeting will be hosted by Mt. Hebron Church Ministries (the event will take place in the Bright Spot behind the main sanctuary) this evening from 6-8pm, where nearly 1000 area children will hear remarks from U.S. Attorney Kenyen Brown, Mobile County Juvenile Judge Edmond Naman, Mike Gottfried of Team Focus, formerly incarcerated football player Henry Tooten, and several of the current football players for Arkansas State University and Kent State University. U. S. Attorney Brown stated, “The purpose of the meeting is to stress the importance of character to the young people in attendance, to encourage them to stay on the right path and to inspire to them to set high goals of achievement.”
Following remarks, the young people will have the opportunity to meet with the players and other speakers. The meeting will culminate with the 1000 young people being broken down into smaller groups to discuss what they might have learned from the meeting with possible mentors.
After tonight’s meeting, the entire group of young people will reconvene again to attend this year’s GoDaddy.com Bowl on Sunday night and will be seated in the south end zone area. The GoDaddy.com Bowl has generously donated nearly 1000 tickets for young people and 150 tickets for chaperones to attend Sunday’s contest between Arkansas State University and Kent State University. In addition to attendance at the game, the GoDaddy.com Bowl has invited the “Enlarge Your Vision” group of young people to participate in tailgate festivities prior to the game in the Kidzone. Within the Kidzone the young people will have the opportunity to climb a rock wall, as well as other activities. The group will also be provided with hot dogs, hamburgers, soft drinks and a GoDaddy.com Bowl tee shirt at no cost.
Over fifteen churches will be participating in the events, with some coming as far away as Washington and Clarke Counties. A similar event will be held prior the Senior Bowl in late January. Additional Note: U.S. Attorney Brown, Judge Edmond Naman, Mike Gottfried, Henry Tooten, and Pastor Joe Johnson of Mt. Hebron Church Ministries will be available for interviews at 5:30pm at the Bright Spot of Mt. Hebron Church Ministries.
Former President of International Outdoor Advertising Company Sentenced in Manhattan Federal Court to Four Months in Prison for Orchestrating $19.75 Million Accounting Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TODD HANSEN, the former President of the United States division of an international outdoor advertising company (the “Company”), was sentenced today in Manhattan federal court to four months in prison, in connection with his participation in a five-year, $19.75 million accounting fraud scheme designed to make it appear that the Company was meeting certain performance targets so that he could receive higher salary increases and bonuses. HANSEN pled guilty in June 2012 to one count of conspiracy to commit wire fraud, and one substantive count of wire fraud. He was sentenced by U.S. District Judge Jed S. Rakoff.
According to the Complaint and the Indictment filed in Manhattan federal court:
From 2004 until 2009, HANSEN served as President of the Company, a wholly-owned subsidiary of a United Kingdom corporation, with its common stock listed on the London Stock Exchange. HANSEN, together with Finance Director, James Buckley, directed the Company’s controller (the “Controller”) to make fictitious accounting entries in the Company’s books and records in order to give the appearance that the Company was meeting its monthly performance targets. To create these inflated income figures, HANSEN directed the Controller to record higher monthly revenues from either false client billings or rebates on certain goods and services that the Company was purportedly receiving from some of its vendors.
The false accounting entries resulted in the preparation of financial statements that reflected artificially inflated monthly income amounts for the Company. HANSEN was thereby able to create the misimpression that the Company was meeting its projected financial performance goals. During this five-year period, the fraudulent entries HANSEN requested resulted in a total overstatement of the Company’s net income by approximately $19.75 million. As a result of meeting these fictitious performance goals, HANSEN was paid approximately $1.1 million in salaries and bonuses over the five-year period.
In addition to the accounting fraud scheme, during this same time period, HANSEN misused tens of thousands of dollars of Company funds to pay for expenses and fees that directly benefitted him, his family, and friends, and that were unrelated to the Company’s legitimate business.
In addition to the prison term, Judge Rakoff sentenced HANSEN, 49, of Bakersfield, California, to three years of supervised release. HANSEN was also ordered to pay $231,000 in restitution and forfeit $173,450.90.
James Buckley, 49, of Westwood, New Jersey, was sentenced by Judge Rakoff on October 16, 2012 to time served, followed by one year of supervised release, and ordered to pay $26,872.22 in restitution.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Nicole Friedlander are in charge of the prosecution.
Former Odessa Adult Bookstore Owner Sentenced to Federal PrisonRead the Press Release
Today in Midland, 68-year-old Jimmy Wayne Wright, former owner of B & L Bookstore in Odessa, was sentenced to 20 months in federal prison after pleading guilty to possession with intent to distribute Methylenedioxypyrovalerone, or more commonly referred to as “bath salts,” announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
In addition to the prison term, United States District Judge Robert A. Junell ordered that Wright be placed under supervised release for a period of three years after completing his prison term. Wright also agreed to forfeit $763,865.20 in cash and his business property to the Government.
In September 2012, Wright admitted that he had marketed “bath salts” under such false descriptive terms as “pipe cleaner,” “stain remover,” “plant food” and others for several months prior to March 2012. On March 6, 2012, DEA agents seized several containers of various types of “bath salts” that Wright had displayed for sale at his business, B & L Bookstore on North Mercury Avenue.
This investigation was conducted by agents with the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation. This matter was prosecuted by Assistant United States Attorneys William Tatum and Brandi Young.
Former La Villa Corrections Officer Sentenced to PrisonRead the Press Release
McALLEN, Texas - Jorge Luis Sandoval, 32, of Pharr, will soon be serving a federal prison sentence for smuggling two cellular telephones into the East Hidalgo Detention Center for an inmate, United States Attorney Kenneth Magidson announced today. Sandoval pleaded guilty to one count of bribery on July 3, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Sandoval a 12-month and one-day prison term which will be followed by two years of supervised release. In handing down the sentence, Judge Hinojosa found that Sandoval was a “public official” under the law and as defined within the United States Sentencing Guidelines. The Judge noted that “by taking a bribe and facilitating the use of the phone” based on greed, Sandoval demonstrated “a total disrespect for the law.” He further noted that “one of the worst damages that comes from a situation like this,” when someone takes on the responsibilities that come with this job (correctional officer), is that “it gives the public the impression that everyone who takes on this job is willing to do the same” and “it hurts the reputation of those that work for the government and law enforcement.”
Sandoval pleaded guilty to the sole count of bribery, admitting to accepting a bribe while working as a corrections officer at the East Hildago Detention Center in La Villa under the authority of the U.S Marshals Service. Sandoval used his official position to enrich himself by accepting a cash payment from an individual acting on behalf of a federal inmate in exchange for smuggling a cellular telephone into the prison on two occasions.
Sandoval was allowed to self-surrender to the U.S. Marshals Service on January 28, 2013, to begin serving his sentence, pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charge in this case was conducted by the FBI and the U.S. Marshals Service. Assistant United States Attorney Casey N. MacDonald prosecuted the case. AUSA Linda Requenez handled the sentencing hearing today.
Former High-Ranking N.J. Department of Corrections Official Sentenced to 46 Months in Prison for ExtortionRead the Press Release
TRENTON, N.J. – Lydell B. Sherrer, a former deputy commissioner of the N.J. Department of Corrections (“NJDOC”), was sentenced today to 46 months in prison for attempting to obtain $10,000 from an employee in exchange for securing that person’s continued employment with the department or its private contractor, U.S. Attorney Paul J. Fishman announced.
Sherrer, 53, of Neptune, N.J., who previously served as deputy commissioner of the NJDOC and as assistant commissioner of its Division of Programs and Community Services, pleaded guilty before U.S. District Judge Joel A. Pisano to Count One of an Indictment charging him with the extortion of a cooperating witness identified in court filings as “Individual One.” Sherrer was previously charged in a 12-count Indictment with extortion and bribery for soliciting money from five separate employees or former employees of NJDOC between February 2010 and October 2010 in exchange for his official action and assistance. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:Following Individual One’s layoff notice from the NJDOC in April 2010, Sherrer said he could secure Individual One’s continued employment with the NJDOC or with private entities that contracted with the NJDOC in exchange for $10,000. Sherrer admitted that on May 17, 2010, he accepted $5,000 in cash from Individual One as an installment of the agreed upon $10,000. Sherrer said he solicited and received $69,000 in bribes between 2006 and 2008 from the five individuals identified in the Indictment and from three additional people. Sherrer agreed to forfeit $9,000, which represented proceeds of his criminal activity, and to pay approximately $22,500 in restitution.
In addition to the prison term, Judge Pisano sentenced Sherrer to three years of supervised release and ordered him to pay $22,500 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, for the investigation leading to today’s sentence. He also thanked the N.J. Department of Corrections Special Investigation Division for their cooperation and assistance throughout the investigation.The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
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Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, TrentonFormer Grand Rapids Area Financial Adviser Sentenced to 54 Months in Prison for Wire FraudRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Lawrence Maxwell McCoy of Bitely, Michigan was sentenced by U.S. District Judge Janet T. Neff to 54 months in prison for wire fraud. The U.S. Attorney’s Office filed a one-count Felony Information on September 7, 2012 charging McCoy with a scheme to defraud. McCoy pled guilty to the charge on September 20, 2012 pursuant to a plea agreement.McCoy sold mutual funds and insurance in and around Holland and Grand Rapids, doing business as Hallbrook Asset Management and Hallbrook Group, LLC. Under these auspices, McCoy provided legitimate investment advice and services, but also defrauded six of his clients, causing total losses of $708,267.37 between 1995 and 2009. To perpetrate his fraudulent scheme, McCoy fabricated an investment that he called “Marsico Private Ledger.” He represented to his clients that Marsico Private Ledger was an investment offered through Marsico Capital Management, LLC, a real mutual fund provider based in Colorado. McCoy then induced many of his existing clients, who otherwise had legitimate investments managed by McCoy, to invest in Marsico Private Ledger. After McCoy received his clients’ money under these fraudulent pretenses, he diverted it to his own use. To cover up the fraudulent scheme, McCoy fabricated investment return information and published it to his clients by manually entering the phony returns on a legitimate third-party internet reporting site dedicated to wealth management reporting. McCoy also sent e-mails to his clients to communicate the phony return information and to assure them that their investments in Marsico Private Ledger were safe. McCoy specifically targeted clients that he knew would not have an immediate need for their money. Through his scheme, McCoy stole clients’ nest eggs and money earmarked for college funds.
In handing down McCoy’s sentence, Judge Neff pointed out that McCoy’s behavior was “not aberrant” but, rather, “a thread in his history.” In 2009, McCoy was sentenced in 28th Circuit Court in Cadillac, Michigan to five years of probation for embezzling money from investments that he managed for a family member. Judge Neff added: “When people fall prey to this type of financial misconduct, it is really devastating.”
U.S. Attorney Miles stated: “Financial fraud often is a silent crime that can go undetected for months, if not years. When that happens, the impact on a victim’s nest egg is truly devastating. The United States Attorney’s Office for the Western District of Michigan is committed to pursuing and bringing to justice financial professionals who defraud their clients.”
In addition to his 54-month prison sentence, McCoy was also sentenced to two years of supervised release and was ordered to pay restitution in the amount of $690,267.37.
The case was prosecuted by Assistant U.S. Attorney Joel Fauson and was investigated by the Federal Bureau of Investigation, Grand Rapids Resident Agency..
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Former Financial Services Broker Sentenced to Serve18 Months in Prison for Role in Conspiracies InvolvingInvestment Contracts for the Proceeds of Municipal BondsRead the Press Release
A former financial services broker was sentenced today in U.S. District Court for the Southern District of New York, for his participation in conspiracies related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
Adrian Scott-Jones, of Morriston, Fla., a former broker for Tradition N.A., was sentenced by District Court Judge Harold Baer Jr. for his role in the conspiracies. Scott-Jones was sentenced to serve 18 months in prison and to pay a $12,500 criminal fine.
“From soliciting intentionally losing bids for investment agreements to paying out kickbacks to manipulate the competitive bidding process, the conspirators went to great lengths to defraud municipalities across the country,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program. “Today's sentence sends a clear message that the division will continue to hold executives accountable for their anticompetitive conduct.”
On Sept. 8, 2010, Scott-Jones pleaded guilty to participating in multiple conspiracies with executives of General Electric Co. (GE) affiliates, from as early as 1999 until 2006. According to the charges, GE and other financial institutions and insurance companies (providers), offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States. The public entities hired brokers like Scott-Jones and Tradition to conduct bidding for contracts to invest money from a variety of sources, primarily the proceeds of municipal bonds issued to raise money for, among other things, public projects. Scott-Jones also participated in a conspiracy with representatives of a second provider located in New York City.According to court documents, in each conspiracy, Scott-Jones gave co-conspirators information about the prices, price levels or conditions in competitors' bids, a practice known as a “last look,” which is explicitly prohibited by U.S. Treasury regulations. Scott-Jones also solicited and received intentionally losing bids for certain investment agreements and other municipal finance contracts. As a result of Scott-Jones’ role in corrupting the bidding process for investment agreements, he and his co-conspirators deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds used by municipalities for various public works projects, such as water pollution abatement projects and low-cost housing. The department said that the conspiracies cost municipalities around the country millions of dollars.
“Today's sentencing reaffirms the ongoing success of our efforts to weed out corruption in the municipal bond market,” said George Venizelos, Acting Director in Charge of the FBI in New York. “The FBI will continue to work closely with our partners from the Antitrust Division to protect the integrity of the competitive bidding process in public finance.”
“Individuals who manipulate the competitive bidding system to benefit themselves will be held accountable for their criminal activity,” said Richard Weber, Chief, Internal Revenue Service Criminal Investigation (IRS-CI). “Quite simply, Mr. Scott-Jones profited at the expense of the towns and cities that needed the money for important public works projects. IRS Criminal Investigation is committed to working with our law enforcement partners to uncover this kind of corruption and secure justice for American taxpayers.”
A total of 20 individuals have been charged as a result of the department's ongoing municipal bonds investigation, 19 of whom have been convicted at trial or pleaded guilty; one is currently awaiting trial. Additionally, one company has pleaded guilty.
The sentences announced today resulted from an ongoing investigation conducted by the Antitrust Division's New York Office, the FBI and IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Today's convictions are part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Anyone with information concerning bid rigging and related offenses in any financial markets should contact the Antitrust Division's New York Field Office at 212-335-8000, the FBI at 212-384-5000 or IRS-CI at 212-436-1761, or visit www.justice.gov/atr/contact/newcase.htm.Former Bookkeeper Pleads Guilty to Wire Fraud and Tax EvasionRead the Press Release
Oklahoma City, Oklahoma – CAROLYN DAWSON, of Oklahoma City, has pled guilty to using interstate wire communications to defraud her former employer, American Plant Products, and to evading federal payroll taxes, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Until November of 2011, Dawson worked as the bookkeeper for American Plant Products, an Oklahoma City wholesaler of greenhouse and garden supplies. Her duties included maintaining payroll, preparing payroll tax returns, and paying withheld taxes to the IRS. According to a criminal information filed on December 18, 2012, Dawson defrauded the business by using interstate wire communications to pay personal credit card expenses from a business bank account, without the knowledge of the business or its owners. The information also alleges that she treated these payments as business-related expenses to disguise her embezzlement. These payments took place from January of 2007 until November 25, 2011, when Dawson was terminated.
In a separate count, the information alleges that Dawson willfully evaded federal payroll taxes by failing to file a 2010 payroll tax return for the company, failing to make payroll withholding payments to the IRS, and altering the books and records of American Plant Products to conceal her failure to make withholding payments.
Today, Dawson pled guilty to both counts. In a plea agreement, she agreed to pay $1,194,656.15 in restitution to American Plant Products. She has also agreed to pay restitution to the Internal Revenue Service, including restitution for her failure to pay personal income taxes on the embezzled money. The plea agreement provides that the loss to the IRS is more than $200,000 and less than $1,000,000.
Dawson’s punishment for wire fraud could be as much as twenty years in prison, three years of supervised release, and a fine of $250,000. Her punishment for tax evasion could be as much as five years in prison, three years of supervised release, and an additional $250,000 fine. Sentencing will take place in approximately ninety days.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation and the Criminal Investigations Division of the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Reference is made to court filings for further information.