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14 February 2013
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
James T. Carter, 41, of East Saint Louis, IL, was sentenced on February 14, 2013, in Federal District Court, in East St. Louis, on one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Carter was sentenced to 60 months in prison, three years supervised release, a $100 special assessment, and a $200 fine. Carter also agreed to the forfeiture of the firearm. Carter pled guilty on November 8, 2012. The charges stem from a July 12, 2012, incident when two off-duty police officers witnessed a vehicle driven by Carter colliding with another vehicle, in front of a club in Alorton, Illinois. After exiting the vehicle, Carter approached the front passenger side door of the second vehicle occupied by two individuals with a gun in his hand. The officers exited their vehicle to stop Carter, instructing him to lie on the ground. Carter complied and dropped the gun. The officers contained Carter until the local police arrived.
Prior to July 12, 2012, Carter had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Alorton, IL, Police Department.
This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Dupree Woman Pleads Guilty to Making False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that Alisa Knight, age 29, of Dupree, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 12, 2013 and pled guilty to Count I of the Indictment that charged her with Making False Statement to Federal Agency. The maximum penalty upon conviction is 5 years' imprisonment, a $250,000 fine or both and a period of supervised release of 3 years.
The conviction stems from an incident on December 12, 2011 when special agents from the Federal Bureau of Investigation made contact with the Defendant regarding a report they received that someone had been sexually assaulted at her home. Rather than informing the agents of the individuals who were present and what occurred on that evening, the Defendant denied that she had anyone at her home or that anyone was consuming alcohol.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for May 6, 2013. The defendant was released on bond pending sentencing.
Drug Smuggler Sentenced to More Than 10 Years for Hitting Border Patrol UnitRead the Press Release
McALLEN, Texas – Alejandro Javier Martinez-Pedraza, 19, and Osvaldo Javier Silva-Hernandez, 19, both Mexican nationals who were illegally present in the United States, have been ordered to prison following convictions for possession with intent to distribute 662 kilograms of marijuana, United States Attorney Kenneth Magidson announced today.
On April 27, 2012, both pleaded guilty to transporting 662 kilograms of marijuana north from the Rio Grande River near Abram. Martinez admitted he helped cross the marijuana from Mexico and helped load it into a truck driven by Silva. As Silva drove the marijuana-laden vehicle, he tried to flee from law enforcement and crashed into one Border Patrol Unit, totaling the vehicle. Luckily, the agents in the unit suffered only minor injuries.
Today, U.S. District Judge Hayden Head sentenced Silva, the driver, to a 135-month sentence. He will also be required to serve a term of five years of supervised release following completion of the prison term. After testimony from the Border Patrol agents, Judge Head found Silva intentionally crashed into the Border Patrol Unit and enhanced Silva’s sentence because of the violent conduct.
Judge Head sentenced Martinez to an 84-month sentence. He will also be required to serve a term of five years of supervised release following completion of the prison term. Judge Head enhanced his sentence because Martinez crossed into the United States from Mexico with the intent to commit this drug trafficking offense.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Border Patrol, FBI and the Drug Enforcement Administration. Assistant United States Attorney Kristen Rees prosecuted the case.
Drug Dealer / Program Thief Faces 12 1/2 Years in PrisonRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on February 14, 2013, Kerry L. Smith, 41, of Carbondale, Illinois, was sentenced in United States District Court in Benton, Illinois. Smith, who had previously pled guilty to a five-count indictment charging him with conspiracy to distribute marihuana, engaging in an unlawful monetary transaction, concealment of material information from the Social Security Administration, and making a false statement (2 counts), was sentenced to 150 months in prison, to be followed by 5 years of supervised release, and ordered to pay a $500 assessment. Smith was also ordered to pay restitution to the Social Security Administration and the Illinois Department of Human Services in the amount of $41,802.00. Additionally, the district court ordered Smith to pay a monetary forfeiture judgment in the amount of $790,020.00. Smith was also ordered to forfeit eight Carbondale residences, two vehicles, $10,576.03 cash, and other personal property to the United States.
“As if drug dealing, that is poisoning our citizens, was not enough, Smith stole from them, as well. This harsh but fair sentence should underscore the notion that such crimes will only result in tough federal prosecutions on my watch,” said United States Attorney Wigginton.
Evidence at the plea and sentencing hearings established that, from at least May, 2001, through February, 2007, Smith was involved with others in the distribution of marihuana in the Jackson County area. Smith acquired certain properties and assets as a result of the marihuana distribution. On December 6, 2007, Smith used over $12,000 in marihuana proceeds to purchase a 1998 Chevrolet Corvette. During this time, Smith also concealed certain information from the Social Security Administration and the United States Department of Agriculture, including information that Smith was working and was acquiring real estate and other assets. This concealment allowed Smith to fraudulently collect Supplemental Security Income (SSI) and food stamps.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and was conducted by the Internal Revenue Service - Criminal Division, Jackson County Sheriff’s Office, Social Security Administration - Office of Inspector General, Illinois Department of Healthcare and Family Services - Office of Inspector General, Murphysboro Police Department, United States Marshals Service, Illinois Department of Corrections - Southern Region Intel Unit, and Drug Enforcement Administration. The Union County Sheriff’s Office, Southern Illinois Enforcement Group, and Carbondale Police Department also participated in the investigation.
The case was prosecuted by Assistant United States Attorneys Amanda A. Robertson and H. Michael Thompson.
Doctor Enters Guilty Plea in Obstruction CaseRead the Press Release
Dr. Mahmoud Yassin, 60, of Robinson, IL, pled guilty in federal district court for obstructing a criminal health care fraud investigator, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Dr. Yassin will be sentenced for this felony offense on May 30, 2013, in Benton, Illinois, at which time he may be sentenced to up to 10 years in prison, a fine of up to $250,000, a special assessment of $100, and a period of up to 3 years of supervised release following prison.
Court proceedings revealed that the felony obstruction occurred on March 2, 2012, when a FBI agent, having served a subpoena for patient records on Dr. Yassin, was given a patient progress note that had been altered by the doctor to show an in-office examination previously claimed to an insurance carrier, but which had not taken place.
The case was investigated by agents of the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, the Drug Enforcement Administration, and the Illinois State Police Medicaid Fraud Control Bureau. The case is assigned to Assistant United States Attorney Michael Quinley.
District Man Sentenced to 32-Month Prison Term for Robbing A Woman in Northwest Washington-Defendant Got Away, but Was Spotted Two Weeks Later by the Victim-Read the Press Release
WASHINGTON – Vincent Shingler, 24, of Washington, D.C., was sentenced today to two years and eight months in prison for a robbery that took place in Northwest Washington last summer, U.S. Attorney Ronald C. Machen Jr. announced.
Shingler pled guilty in December 2012 in the Superior Court of the District of Columbia to a robbery charge. He was sentenced by the Honorable Gerald I. Fisher. Upon completion of his prison term, Shingler will be placed on three years of supervised release.
According to the government’s evidence, Shingler came from behind and approached the victim, a Howard University graduate student, at about 4:15 p.m. on Aug. 22, 2012. The victim was headed toward home from campus, listening to a book on tape, when she was accosted in the 700 block of Quincy Street NW. Shingler snatched her iPhone and ran.
The victim, who had only been in Washington, D.C. for a week, after moving here from Alaska, cried out for help and multiple eyewitnesses came to her aid. However, Shingler was able to successfully get away. Then, about two weeks after the robbery, the victim saw Shingler enter a local store and called police. Members of the Metropolitan Police Department (MPD) arrested Shingler in the 700 block of Rock Creek Church Road NW.
In announcing the sentence, U.S. Attorney Machen commended the work of the MPD officers and detectives who investigated the case. He also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Assistant Todd McClelland and Intelligence Specialist Sharon Johnson. Finally, he acknowledged the efforts of Assistant U.S. Attorney Phil Selden, of the Superior Court Felony Major Crimes Section who prosecuted the case.
13-053Crook County Man Pleads Guilty to Possessing a Loaded Firearm After Being Convicted for a Crime of Domestic ViolenceRead the Press Release
PORTLAND, Ore. - Jacob Tolman, 34, of Portland, Oregon, was sentenced today by United States District Judge Ancer Haggerty to 175 months in prison, to be followed by a four-year term of supervised release. The federal charges were brought after an investigation led by the Clackamas County Sheriff's Office Interagency Task Force (CCITF), which committed experienced narcotics investigators and significant agency resources immediately upon discovery of a heroin overdose victim, Zachary Holland. Holland, 23, a resident of Milwaukie, Oregon, was found dead on Saturday, November 5, 2011. Investigators found drug paraphernalia and residue quantities of black tar heroin. Holland was among the record number of individuals - 143 - who died from heroin overdoses in Oregon in 2011. According to family members, Holland began using heroin after he became dependent on prescription painkillers. Prior to his death, Holland made several attempts to fight his heroin addiction, including attending drug treatment therapy.
According to prosecutors, Tolman is a career offender based on his prior felony convictions. At the time of this offense, Tolman had just been granted pretrial release in Clackamas County where he was pending charges for unlawful distribution of oxycontin. "Heroin continues to wreak havoc on this community, and I applaud the effort of our partners in the Clackamas County Interagency Task Force for their great work in this case and many other investigations that target those who distribute this poison," said U.S. Attorney Amanda Marshall. "Today's 175-month sentence for this defendant is the highest sentence obtained to date in Len Bias cases brought in the District of Oregon. It is our hope that these stiff penalties will dissuade drug dealers who prey on desperate and vulnerable addicts."
The United States Attorney's Office and the Clackamas County District Attorney's Office have made the investigation and prosecution of drug overdose cases a high priority due to the devastating impact drug distribution has in Oregon. Several significant drug dealers who would have otherwise gone undetected, have been arrested, successfully prosecuted, and sentenced to prison in both state and federal court as a result of this combined state and local effort to investigate and prosecute drug overdose deaths.
The case was prosecuted by Assistant U.S. Attorney Leah K. Bolstad and Special Assistant U.S. Attorney Steven Mygrant of the Clackamas County District Attorney's Office.
Convicted Sex Offender Sentenced to Nearly Four Years in Federal Prison for Failing to RegisteRead the Press Release
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PROVIDENCE, R.I. – Gilberto Morales, 30, of Pawtucket, a convicted sex offender in Wisconsin, was sentenced Wednesday in U.S. District Court in Providence to 46 months in federal prison, to be followed by 10 years of supervised release, for failing to register as a sex offender, announced United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth and Pawtucket Police Chief Paul King.
On June 12, 2012, Morales pleaded guilty in federal court to failing to register as a sex offender, admitting to the court that he failed to register in Rhode Island as required by law, after he moved from Wisconsin to Pawtucket in June or July of 2011. Morales has a 25-year duty to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA), and also under Wisconsin and Rhode Island state law. Morales was convicted in Wisconsin in February 2003 of second degree sexual assault of a child. He was also convicted in Wisconsin in September 2006 with failing to register as a sex offender.
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
Shortly after Morales’ arrest in Rhode Island in July 2011 for failing to register as a sex offender, an investigation by Pawtucket Police resulted in charges being brought against Morales for the alleged sexual assault of a 14-year-old Pawtucket girl. It is alleged that the assault took place shortly after Morales moved to Rhode Island. He is currently awaiting trial in state court on two counts of first degree child molestation, two counts of second degree child molestation and one count of failure to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorney Mary Rogers. The sentence was imposed by U.S. District Court Judge John J. McConnell, Jr.
Rhode Island State Police assisted in the investigation of this matter.
Contact: 401-709-5357
[email protected]Collin County Man Guilty of Customs ViolationsRead the Press Release
Department of Justice
Office of Public AffairsChinese national attempted to smuggle ivory falsely labeled as “wood carvings”
SHERMAN, Texas – A 44-year-old Plano, Texas man has pleaded guilty to negligently attempting to smuggle ivory carvings from the United States, announced U.S. Attorney John M. Bales today.
Shichen Wang pleaded guilty to the misdemeanor offense of negligent attempted transportation of wildlife sold in violation of law today before U.S. Magistrate Judge Amos L. Mazzant.
According to information presented in court, on April 19, 2011, Wang attempted to ship two elephant ivory carvings, daffodil flowers and a cylinder brush pot, in two separate packages that were addressed to two different locations in the Republic of China. Both of the packages were falsely labeled to describe their contents as “wood carvings” which is a violation of federal laws that protect specified species of wildlife. The packages were intercepted by wildlife inspectors who were inspecting International Express Mail packages that were consigned for export from the United States. An information was filed on Nov. 29, 2012, charging Wang with federal violations.
Wang faces up to one year in federal prison and a $100,000.00 fine.This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Fort Worth, Texas and Rosemont, Illinois Office and U.S. Customs and Border Protection, Rosemont, Illinois Office and prosecuted by Assistant U.S. Attorney Jim Noble.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, download photos from its Flickr page at http://www.flickr.com/photos/usfwshq. ####Cody James Kinn and Joshua Charles Krank Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 14, 2013, before Chief U.S. District Judge Richard F. Cebull, CODY JAMES KINN, age 22, and JOSHUA CHARLES KRANK, age 22, residents of Roundup, appeared for sentencing. They were each sentenced to a term of:
Probation: 5 years with 6 months house arrest with GPS monitoring
Special Assessment: $100
Restitution: $12,315.29
They were sentenced in connection with their guilty pleas to burglary involving controlled substances.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On October 24, 2011, KINN and KRANK broke into the Pamida Pharmacy in Roundup and stole prescription drugs including Adderall (Dextroamphetamine and Amphetamine), Oxycodone, Hydrocodone, Dextroamphetamine, Hydromorphone, Morphine, and Methadone. There were approximately 7,000 pills taken.
When interviewed by law enforcement, KINN and KRANK admitted to breaking into the Pamida Pharmacy to steal pills. Both admitted to coming into the pharmacy by breaking a window and crawling inside. Both filled IGA shopping bags with bottles of prescription medications from the unlocked safe.
Replacement cost for the stolen pills is approximately $13,000, however this is not their street value.
The investigation was a cooperative effort between the Musselshell County Sheriff's Office, the Drug Enforcement Administration, and the Montana Division of Criminal Investigation.
Cocoa Man Sentenced to 27 Years in Federal Prison for Soliciting A Minor for Sex and the Production of Child PornographyRead the Press Release
Orlando, Florida - U.S. District Chief Judge Anne C. Conway today sentenced Phillip Beyel (28, Cocoa) to 27 years in federal prison for soliciting a minor to have sex and production of child pornography. The court also ordered Beyel to forfeit an Apple iPhone, which he used to facilitate the offenses. Beyel pleaded guilty on September 25, 2012.
According to court documents, on December 31, 2011, Beyel sent a text message from his iPhone, to the minor victim’s iPhone, soliciting the minor victim to engage in sex. After sending the text message, Beyel went to the minor victim’s home, from where they then went to a nearby hotel. Once inside the hotel room, Beyel had sex with the minor and also produced a video of himself engaging in sex with the minor.
On January 1, 2012, during a controlled telephone call between the minor victim and Beyel, they discussed the sexual activity which had taken place on December 31, 2011. During that call, Beyel told the minor victim that if the minor had to go to the doctor, not to say that the injury was caused by the two of them having sex.
A forensic examination of Beyel’s iPhone recovered several videos and photographs depicting sexual acts between Beyel and the minor victim, including the one made on December 31, 2011.
“Homeland Security Investigations and our law enforcement partners are determined to find and arrest individuals who prey on minors,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Cocoa Beach office that investigated this case. “Child exploitation is one of the most heinous crimes we investigate, and I assure you, we will make sure these predators are prosecuted to the fullest extent of the law.”
This case was investigated by the Brevard County Sheriff's Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Carlos A. Perez-Irizarry.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Clearwater Man Sentenced to 2 Years in Federal Prison for Immigration Document FraudRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Mario Cabrera (34, Clearwater) to 24 months in federal prison for immigration document fraud. The court also ordered him to forfeit electronics and computer equipment, which were used to commit the offense. Cabrera pleaded guilty on November 26, 2012.“When Homeland Security Investigations special agents executed a search warrant at Mr. Cabrera’s residence, they uncovered more than 100 fraudulent documents, “ said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Mr. Cabrera was providing these documents to people trying to evade the legal immigration process. These individuals could be threats to public safety, or even worse, national security.”
According to court documents, Cabrera sold counterfeit documents, including driver's licenses, social security cards, and permanent resident alien cards to a confidential informant on multiple occasions.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Citizen of Mexico Who Was Twice Deported Pleads Guilty to Identity TheftRead the Press Release
KANSAS CITY, KAN. - A citizen of Mexico who has been living and working in Kansas City, Kan., after twice being deported pleaded guilty Friday to a federal charge of altering and using a Social Security card of another person, U.S. Attorney Barry Grissom said.
Juan Francisco Morales-Jimenez, 35, pleaded guilty to one count of using an altered genuine Social Security card of another person to unlawfully reside and obtain employment in the United States. In his plea, he admitted he unlawfully used a Social Security number and a false name to work for True North Outdoor, a commercial landscaping and snow removal service in Kansas City, Kan. According to court records, investigators determined that under his true name he had been deported from the United States in 1998 and 2006. A fingerprint check revealed he also had criminal convictions in Colorado for forgery and non-consensual sexual contact. Items seized from Morales-Jimenez included a black ski mask, walkie-talkies, 69 rounds of 9mm hollow point ammunition, a shoulder holster and body armor.
He is set for sentencing on June 3, 2014. Both parties have agreed to recommend a sentence of 24 months in federal prison. Grissom commended Homeland Security Investigations and Special Assistant U.S. Attorney Trey Alford for their work on the case.
Charlotte Woman Sentenced for Role in Recruiting 13 Year Old Girl into Prostitution OrganizationRead the Press Release
RICHMOND, Va. – Rachael Masingene, 21, of Charlotte, NC was sentenced yesterday to 36months in prison, followed by three years of supervised release, for conspiracy to transport an individual across state lines for prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; and D.A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after sentencing by United States District Judge Henry E. Hudson.
“Rachael Masingene played an integral role in recruiting a 13-year-old girl into the vile world of sex trafficking,” said U.S. Attorney MacBride. “She taught the girl the business of online prostitution and lived with her in hotels for months while the victim’s family desperately searched for their child. Many people think human trafficking is a man’s business – but the recruiters are often women, and we hold them accountable.”
“It is reprehensible for an adult to recruit a vulnerable and defenseless child into the vile world of prostitution,” said FBI SAC Mazanec. “Children deserve to be protected from the criminal world - not recruited into it. Today’s sentence is a strong reflection that this criminal behavior will not be tolerated. Our office will continue to work with the United States Attorney’s Office and our other law enforcement partners to interdict this kind of criminal activity that unfortunately plagues many states across the country.”
Masingene pled guilty on September 27, 2012 to conspiracy to transport an individual across state lines for purpose of prostitution. According to court documents, Masingne worked as a prostitute for Korey Reynolds in the Charlotte area from 2011 through 2012. In a statement of facts filed with her plea agreement, Masingne admitted that in February or March 2012, she met a 13-year old female while she, Reynolds, and Whitney Hayes, another woman who was also working as a prostitute for Reynolds, were in Miami, Florida. Masingene acknowledged that she and Hayes recruited the 13-year old to join the prostitution organization. Once they were back in Charlotte, Masingene and Hayes taught the juvenile the business of prostitution, including posting internet advertisements, offering the female as a prostitute to prospective customers. In May 2012, Reynolds, Masingene and Hayes transported the juvenile from Charlotte to Richmond, Virginia, with the intent that the juvenile engage in prostitution while in Virginia.
Reynolds was convicted of Transporting a Minor in Interstate Commerce for Purposes of Prostitution, and sentenced to 130 months of imprisonment. Hayes was also convicted of Conspiracy to Transport an Individual across state lines for prostitution, and was sentenced to 57 months of imprisonment.
This case was investigated by the FBI and the Henrico County Police Division. Assistant United States Attorney Jamie L. Mickelson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Cardiologist Admits Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – An Edison cardiologist today admitted referring patients for diagnostic testing in exchange for cash kickbacks as part of a cash-for-patients scheme with a diagnostic facility in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
Shashi Agarwal, 60, of Edison, N.J., who has his own cardiology practice in East Orange, N.J., pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an Information charging him with one count of soliciting and receiving more than $100,000 in cash kickbacks in violation of the federal health care anti-kickback statute.
Agarwal is the 10th person to plead guilty in the government’s investigation into the scheme to pay cash to health care providers who referred patients to Orange Community MRI, LLC (Orange MRI) in Orange N.J., for diagnostic testing.
According to documents filed in this case and statements made in court:From early 2009 through December, 2011, Orange MRI paid Agarwal for each MRI and CAT scan he referred. According to Agarwal, Orange MRI gave him $100 cash for each Medicare or Medicaid patient he referred for an MRI. Agarwal also received $50 for each CAT scan referral. Agarwal also admitted that he agreed to refer as many as 20 MRIs to Orange MRI each month. Agarwal agreed to forfeit $101,750 in bribe money.
Agarwal identified two occasions on which he was paid kickbacks. On Oct. 11, 2011, Agarwal received $2,600 in cash from a government informant at Salvadoreño restaurant in Elizabeth, N. J., in exchange for MRI and CAT scan referrals. On Nov. 10, 2011, at his office in East Orange, N.J., Agarwal received another kickback for patient referrals of $2,500 in cash.
Agarwal was one of 12 doctors and one nurse practitioner arrested Dec. 13, 2011, and charged with accepting cash kickback payments.The anti-kickback charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for June 6, 2013.
Eight of those who pleaded guilty have agreed to forfeit $279,690 in illegal cash kickbacks from Orange MRI. The two other defendants, Ashokkumar Babaria, Orange MRI’s former medical director, and Chirag Patel, Orange MRI’s former executive director, have agreed to forfeit their gains. Babaria agreed to forfeit revenues traceable to corrupt referrals, which the government estimates could reach as much as $2 million. Patel agreed to forfeit $89,180.
With respect to the other defendants charged in the investigation:• Jose Castaneda, a nurse practitioner formerly practicing in Newark, N.J., pleaded guilty before Judge Cecchi on April 3, 2012, and is scheduled to be sentenced on June 18, 2013.
• Ash Khanna, M.D., a doctor practicing in East Orange, N.J., was indicted on May 4, 2012, by a federal grand jury on one count of accepting kickbacks. Judge Cecchi has not yet set a trial date.
• Dov Rand, M.D., a doctor practicing in West Orange, N.J., pleaded guilty before Judge Cecchi on May 18, 2012, and was sentenced to five months in prison and five months of home confinement on Feb.13, 2013.
• Daisy Deguzman, M.D., a doctor practicing in Newark, N.J., pleaded guilty before Judge Cecchi on June 4, 2012, and was sentenced to six months in prison and six months of home confinement on Jan. 31, 2013.
• William Lagrada, M.D., another Newark, N.J., doctor, pleaded guilty before Judge Cecchi on July 11, 2012, and is scheduled to be sentenced on June 4, 2013.
• Maryam Jafari, M.D., another Newark, N.J, doctor, was indicted July 13, 2012, by a federal grand jury on one count of accepting kickbacks. On Sept. 14, 2012, the same grand jury handed up a superseding indictment against Dr. Jafari, charging her with one count of conspiracy and two counts of accepting kickbacks. The trial of Dr. Jafari ended with a hung jury and mistrial on Dec. 6, 2012. Judge Cecchi has set the retrial date for March 1, 2013.
• Chikezie Onyenso, M.D., an Irvington, N.J., doctor, was indicted Sept. 7, 2012, by a federal grand jury on one count of accepting kickbacks. Judge Cecchi has not yet set a trial date.
• Dinesh Patel, M.D., another Newark doctor, pleaded guilty before Judge Cecchi on September 19, 2012, and is scheduled to be sentenced on Feb. 26, 2013.• Ashokkumar Babaria, M.D., a Moorestown, N.J., radiologist and Orange MRI’s former medical director and owner-in-fact, pleaded guilty before Judge Cecchi on Sept. 27, 2012, and is scheduled to be sentenced on March 21, 2013.
• Lucio Cardoso, M.D., a North Arlington, N.J., physician, pleaded guilty before Judge Cecchi on October 10, 2012, and is scheduled to be sentenced on March 27, 2013.
• Rameshcha Kania, M.D., an East Orange, N.J., doctor, pleaded guilty before Judge Cecchi on Oct. 12, 2012, and is awaiting sentencing.
• Chirag Patel, Orange MRI’s former executive director, pleaded guilty before Judge Cecchi on Oct. 16, 2012, and is scheduled to be sentenced on July 15, 2013.The remaining defendants are charged in criminal complaints at this time.
Fishman credited special agents of the U.S. Department of Health and Human Services- Office of the Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, as well as criminal and civil investigators with the U.S. Attorney’s Office, for the investigation leading to the guilty plea.
The case is being prosecuted by Assistant U.S. Attorneys Scott B. McBride and Joseph G. Mack of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
13-081
Defense counsel: William R. Lundsten Esq.; Teaneck, NJ
Agarwal, Shashi Information
Cape Cod Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BOSTON - A West Harwich man, formerly of Charlestown, was convicted yesterday for possessing child pornography.
Thomas J. Richardson, 67, pleaded guilty before U.S. District Judge Joseph L. Tauro to possession of child pornography. Sentencing is scheduled for April 17, 2013. Under the terms of the plea agreement, the Court must sentence Richardson to between 24 to 46 months in prison, followed by five years of supervised release, restitution and forfeiture.Between July 4 and 8, 2008, an FBI agent working undercover went online to a peer-to-peer file sharing software program. The FBI agent received a "friend" request and offline messages from Richardson using the screen name "Greatg." In the messages, Richardson asked when the agent would be online, stated that his name was "Gretchne," and falsely indicated that he was a mother of two.
On July 9, 2008, the agent logged into the file sharing program and found files containing child pornography images and videos belonging to Richardson. The agent attempted to download the files, however, Richardson terminated this transaction before it was completed because he was unable to download any content from the agent's online profile. Prior to the termination, the agent was able to download three files. A video named was corrupted and could not be viewed. Another video, depicted anal-genital sexual intercourse between an adult man and a toddler boy. And an image depicted a nude, adult man touching the clothed genitals of a minor boy on a bed. The agent determined, through IP address location information, that the user profile belonged to Thomas J. Richardson in Charlestown.
In August, 2008, the agent again logged into the file-sharing program and observed that Richardson's profile was also online. The agent browsed Richardson's shared file directories, and found files containing child pornography images and videos. The agent downloaded 11 files of child pornography, including a number of images depicting a prepubescent boy and prepubescent girl engaging in sexual acts with each other. The agent determined, through IP address location information, that the user profile belonged to Richardson's address in West Harwich.The West Midlands Police, in Birmingham, England, also had reported to the FBI in Boston that an individual using the screen name "GreatG" was communicating and trading pornography with a target in their jurisdiction through the Google Hello program. British law enforcement obtained IP login information for GreatG's account and determined that Richardson had accessed this account from his residences as well as from his then-employer.
On November 6, 2008, the FBI executed a search warrant at Richardson's homes in Charlestown and West Harwich and seized six laptop computers.
The FBI conducted a forensic examination of the computers and found evidence of significant child pornography activity. The Internet browsing history and recent link files showed that Richardson accessed a number of files with explicit names indicative of child pornography. Evidence of installation and use of the file-sharing program and Google Hello were also found on an HP laptop in Charlestown.
Forensic analysis revealed at least 10 images including the following:
- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
- An image which depicts a girl, who appears to be approximately 12 to 14 years-old, holding a penis near her mouth. There appears to be semen on her face and shirt; and
- An image which depicts a prepubescent, nude girl who is kneeling on the floor and engaging in oral-genital sexual intercourse with an adult male who is standing. The girl is wearing a mask (with an opening at the mouth) and her hands appear to be tied.
Forensics further revealed numerous deleted and temporary internet images of child pornography on the computers.
From Richardson's computer, forensic agents recovered 159 chats between Richardson and 81 other users on Google Hello trading numerous images of child pornography and child erotica, including images of children as young as six engaged in sexual acts and images depicting sadomasochistic sexual abuse of children. The chats indicate Richardson's substantial knowledge of child pornography series as well as his extensive collection of child pornography, which allowed him to provide child pornography tailored to the requester's preferences.United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today.
The case is being prosecuted by Assistant U.S. Attorneys Michael Yoon and Stacy Dawson Belf of Ortiz's Major Crimes Unit and Trial Attorney Bonnie Kane of the Department of Justice's Child Exploitation & Obscenity Section.This case is being brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
- An image which depicts a nude girl lying on a bed with her legs spread - her wrists and one visible ankle are tied to the bed frame;
California Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Ceres, California man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Robert R. Ortega, age 44, was indicted by a federal grand jury on December 4, 2012 for failing to pay over $70,548.00. He appeared before U.S. Magistrate Judge William D. Gerdes on February 8, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing. The charge is merely an accusation and Ortega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case. Ortega was released on bond pending trial. A trial date has not been set.
Bulverde Man Indicted for Bank RobberyRead the Press Release
CORPUS CHRISTI, Texas – Joseph C. M. Krist, 41, of Bulverde, has been indicted by a Corpus Christi federal grand jury for robbing IBC Bank, United States Attorney Kenneth Magidson announced today.
The unsealed indictment, returned late yesterday, alleges Krist committed a bank robbery of the IBC Bank in Corpus Christi on Jan. 13, 2013. He allegedly used force, violence and intimidation in order to obtain cash from two bank employees, according to the indictment.
Krist is currently in federal custody for violating a previous term supervised release, which he was serving after a previous conviction for a robbery in San Antonio.
The case is being investigated by FBI and the Corpus Christi Police Department with the assistance of the U.S. Marshals Service. Assistant United States Attorney Lance Duke is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.Buffalo Man Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Harold Howard, 42, of Buffalo, N.Y., was convicted after a jury trial of conspiracy to distribute cocaine, possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking crimes, possession of firearms and ammunition while being a convicted felon, and unlawful possession of a machine gun. The charges carry a mandatory minimum sentence of 35 years in prison.
Assistant U.S. Attorneys Melissa M. Marangola and George C. Burgasser, who handled the prosecution of the case, stated that the defendant was arrested following a long term investigation by the Erie County Sheriff's Department. In November 2011, during the execution of a search warrant at 93 Elmer St. in Buffalo, law enforcement officers found three kilograms of cocaine and three loaded firearms in Howard's vehicle.The Government presented evidence at trial that Howard transported cocaine between Atlanta, Georgia and Buffalo between 2008 and November 2011. In November 2008, the defendant was stopped in Atlanta with $104,000 and a loaded firearm. In November 2009, Howard was arrested by Buffalo Police after being stopped with cocaine and a loaded firearm. As a result, the defendant is currently serving a state sentence for possession of a firearm.
"This case is another example of the successful cooperation between our Office and our local, state and federal law enforcement partners," said U.S. Attorney Hochul. "The prosecution brings to an end the flow of illegal narcotics and illegal firearms into our community by this particular defendant."The conviction is the result of an investigation on the part of the Erie County Sheriff's department, under the direction of Sheriff Timothy B. Howard, and the New York State Police, under the direction of Major Christopher Cummings, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Frank Christiano, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
Sentencing is scheduled for May 30, 2013 at 12:30 p.m. before U.S. District Judge Richard J. Arcara.
Brockton Man with Felony Record Sentenced for Possessing FirearmRead the Press Release
FEBRUARY, 14, 2013BOSTON – A Brockton man, who is a felon, was sentenced yesterday for possessing a firearm and ammunition.
Foster L. Starks, Jr., 51, was sentenced by U.S. District Judge Joseph L. Tauro to 210 months in prison, followed by two years of supervised release. In 2011, Starks was convicted after a jury trial for possessing a firearm and ammunition after having been convicted of a felony offense. Starks’ criminal record includes nine convictions for armed robbery, as well as convictions for armed robbery while masked, unarmed robbery and armed assault with intent to rob.On May 24, 2009, Starks was stopped by a Massachusetts State Police Officer while driving on Route 24 North in Taunton. The stop led to the discovery of a handgun and 14 rounds of ammunition in the automobile. It was a violation of federal law for Starks to possess a gun or bullets because he had previously been convicted of a felony.
United States Attorney Carmen M. Ortiz; Gene Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Armando Hernandez-Vaca Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 13, 2013, before Senior U.S. District Judge Jack D. Shanstrom, ARMANDO HERNANDEZ-VACA, a 25-year-old resident of Billings, pled guilty to conspiracy to possess with intent to distribute and distribution of methamphetamine. Sentencing has been set for May 15, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement.
During the investigation law enforcement learned that HERNANDEZ-VACA delivered methamphetamine to C.M., his co-conspirator, D.M., and several other individuals from approximately April 2011 to October 2011. HERNANDEZ-VACA regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, C.M. was incarcerated on non-drug related charges. D.M. took over the distribution of methamphetamine and collection of money for the organization. HERNANDEZ-VACA also came back to Billings during the same time to bring more methamphetamine and to make sure D.M. could continue the distribution of methamphetamine in the area. Following C.M.'s arrest, HERNANDEZ-VACA became more involved in the actual distribution of methamphetamine to C.M.'s network of distributors and began to collect drug debts from C.M.'s customers.
During the course of his involvement in the conspiracy, HERNANDEZ-VACA distributed over 500 grams of a mixture containing a detectable amount of methamphetamine from places outside of the state of Montana into the Yellowstone County area.
HERNANDEZ-VACA faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Antiques Dealer Sentenced in New York City for Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
David Hausman, an antiques dealer in Manhattan, was sentenced today in Manhattan federal court to six months in jail for obstruction of justice and creating false records in connection with illegal rhinoceros horn trafficking, announced Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Preet Bharara, U.S. Attorney for the Southern District of New York.
In addition to the jail term, the judge sentenced Hausman, 67, of New York, N.Y., to pay a $10,000 fine to the Lacey Act Reward Fund and $18,000 to the Rhino Tiger Conservation Fund. Hausman was also sentenced to one year of supervised release to follow his sentence and ordered to pay a $200 special assessment fee.
In his July 2012 guilty plea, Hausman admitted that he committed these offenses while holding himself out to the U.S. Fish & Wildlife Service (FWS) as an antiques expert who purportedly wanted to help the agency investigate rhinoceros horn trafficking. Hausman was arrested in February 2012 as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.
“Mr. Hausman’s blatant deception of officers conducting a federal investigation was illegal and reprehensible,” said Assistant Attorney General Moreno. “He posed as someone who was protecting this endangered species when he was really obtaining and using inside information to further the illegal trade in black rhino horns. We will vigorously prosecute all those who violate the wildlife protection laws enacted by Congress to protect endangered species like the black rhinoceros from extinction.”“With today’s sentence, David Hausman now knows that trafficking in endangered, and legally protected species, and obstructing law enforcement’s ability to do its job have grave consequences,” said U.S. Attorney Bharara.”
“Rhino populations across the globe are being decimated by poachers seeking to meet rising demand for rhino horn for ceremonial purposes and as a traditional ‘medicine,’ despite the fact that it has no demonstrable medicinal benefits,” said U.S. Fish & Wildlife Service Director Dan Ashe. “As this week's arrests and sentencing demonstrate, we continue to work with the Department of Justice and international law enforcement agencies to do everything we can to shut this trafficking down and hold perpetrators responsible under the law.”
Background on Operation Crash
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.
Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for Rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s FWS in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
Hausman’s OffensesAccording to the information, plea agreement and statements made during court proceedings:
In December 2010, Hausman – while purporting to help the government crack down on illegal rhinoceros trading – advised FWS that the taxidermied head of a black rhinoceros containing two horns had been illegally sold by a Pennsylvania auction house. Upon learning that the sale was not finalized, Hausman covertly purchased the rhinoceros mount himself, using a “straw buyer” to conceal that he was the true purchaser because federal law prohibits interstate trafficking in endangered species. Hausman instructed the straw buyer not to communicate with him about the matter by email to avoid creating a paper trail that could be followed by law enforcement. After the purchase was completed, Hausman directed the straw buyer to remove the horns and mail them to him. He then made a realistic set of fake horns using synthetic materials and directed the straw buyer to attach them on the rhinoceros head in order to deceive law enforcement in the event that they conducted an investigation. After his arrest, Hausman contacted the straw buyer and they agreed that the rhinoceros mount should be burned or concealed.
In a second incident, in September 2011, Hausman responded to an internet offer to sell a (different) taxidermied head of a black rhinoceros containing two horns. Unbeknownst to Hausman, the on-line seller was an undercover federal agent. Before purchasing the horns on Nov. 15, 2011, Hausman directed the undercover agent to send him an email falsely stating that the mounted rhinoceros was over 100 years old, even though the agent had told him that the rhinoceros mount was only 20 to 30 years old. There is an antique exception for certain trade in rhinoceros horns that are over 100 years old. By falsifying the age of the horns, Hausman sought to conceal his illegal conduct. Hausman also insisted on a cash transaction and told the undercover agent not to send additional emails so there would be no written record. After buying the black rhinoceros mount at a truck stop in Princeton, Ill., agents followed Hausman and observed him sawing off the horns in a motel parking lot.
At the time of his arrest, FWS agents seized four rhinoceros heads from Hausman’s apartment as well as six black rhinoceros horns – two of which were the horns he was seen sawing off in the parking lot – numerous carved and partially carved rhinoceros horns, fake rhinoceros horns and $28,000 in cash.
U.S. Attorney Bharara and Assistant Attorney General Moreno commended FWS and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Newark for their outstanding work in this investigation.
The case is being handled by the U.S. Attorney’s Complex Frauds Unit and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Janis M. Echenberg and Richard A. Udell, a Senior Trial Attorney with the Justice Department’s Environmental Crimes Section, are in charge of the prosecution.
Antiques Dealer Sentenced in Manhattan Federal Court Six Months in Prison for Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Ignacia S. Moreno, the Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, announced that DAVID HAUSMAN, an antiques dealer in Manhattan, was sentenced today in Manhattan federal court to six months in prison for obstruction of justice and creating false records, in connection with illegal Rhinoceros horn trafficking. In his July 2012 guilty plea, HAUSMAN admitted that he committed these offenses while holding himself out to the U.S. Fish & Wildlife Service (FWS) as an antiques expert who purportedly wanted to help the agency investigate Rhinoceros horn trafficking. HAUSMAN was arrested in February 2012 as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn. He was sentenced today by U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, David Hausman now knows that trafficking in endangered, and legally protected species, and obstructing law enforcement’s ability to do its job have grave consequences.”
Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Ignacia S. Moreno said: “Mr. Hausman’s blatant deception of officers conducting a federal investigation was illegal and reprehensible. He posed as someone who was protecting this endangered species when he was really obtaining and using inside information to further the illegal trade in black rhino horns. We will vigorously prosecute all those who violate the wildlife protection laws enacted by Congress to protect endangered species like the black rhinoceros from extinction.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of Rhinoceros are protected under United States and international law and all Black Rhinoceros species are endangered.
Since 1976, trade in Rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. The demand for Rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms, or alleged medicinal elements made from the horn. This has led to an almost complete decimation of the global Rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s FWS, in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of Rhinoceros. Operation Crash is an ongoing effort to detect, deter, and prosecute those engaged in the illegal killing of Rhinoceros and the unlawful trafficking of Rhinoceros horns.
Hausman’s Offenses
According to the Information, plea agreement, and statements made during court proceedings:
In December 2010, HAUSMAN – while purporting to help the Government crack down on illegal rhinoceros trading – advised FWS that the taxidermied head of a Black Rhinoceros containing two horns had been illegally sold by a Pennsylvania auction house. Upon learning that the sale was not finalized, HAUSMAN covertly purchased the rhinoceros mount himself, using a “straw buyer” to conceal his identification as the true purchaser, because federal law prohibits interstate trafficking in endangered species. HAUSMAN instructed the straw buyer not to communicate with him about the matter by email to avoid creating a paper trail that could be followed by law enforcement. After the purchase was completed, HAUSMAN directed the straw buyer to remove the horns and mail them to him. He then made a realistic set of fake horns using synthetic materials and directed the straw buyer to attach them on the Rhinoceros head in order to deceive law enforcement in the event that they conducted an investigation. After his arrest, HAUSMAN contacted the straw buyer and they agreed that the Rhinoceros mount should be burned or concealed.
In a second incident, in September 2011, HAUSMAN responded to an internet offer to sell a (different) taxidermied head of a Black Rhinoceros containing two horns. Unbeknownst to HAUSMAN, the on-line seller was an undercover federal agent. Before purchasing the horns on November 15, 2011, HAUSMAN directed the undercover agent to send him an email falsely stating that the mounted Rhinoceros was over 100 years old, even though the agent had told him that the rhinoceros mount was only 20 to 30 years old. There is an antique exception for certain trade in rhinoceros horns that are over 100 years old. By falsifying the age of the horns, HAUSMAN sought to conceal his illegal conduct. HAUSMAN also insisted on a cash transaction and told the undercover agent not to send additional emails so there would be no written record. After buying the Black Rhinoceros mount at a truck stop in Princeton, Illinois, agents followed HAUSMAN and observed him sawing off the horns in a motel parking lot.
At the time of his arrest, FWS agents seized four Rhinoceros heads from HAUSMAN’s apartment as well as six Black Rhinoceros horns – two of which were the horns he was seen sawing off in the parking lot – numerous carved and partially carved Rhinoceros horns, fake Rhinoceros horns, and $28,000 in cash.
In addition to the prison term, Judge Oetken sentenced HAUSMAN, 67, of New York, New York, to one year of supervised release. HAUSMAN was also ordered to pay a $10,000 fine to the Lacey Act Reward Fund, $18,000 to the Rhino Tiger Conservation Fund, and a $200 special assessment fee.
Mr. Bharara and Ms. Moreno commended the United States Fish and Wildlife Service and the United States Immigration and Customs Enforcement’s Homeland Security Investigations in Newark for their outstanding work in this investigation. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.
The case is being handled by the U.S. Attorney’s Complex Frauds Unit and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Janis M. Echenberg and Richard A. Udell, a Senior Trial Attorney with the Environmental Crimes Section are in charge of the prosecution.
Albuquerque Man Sentenced to Ten Years for Firearms and Bank Robbery ConvictionsRead the Press Release
ALBQUERQUE – Randy Lee Gwaltney, 46, of Albuquerque, N.M., was sentenced this afternoon to ten years in prison followed by three years of supervised release for his convictions for being a felon in possession of firearms and bank robbery. Gwaltney also was ordered to pay full restitution to the three banks that were the victims of his criminal conduct.
Gwaltney was sentenced based on guilty pleas in two separate cases. The indictment in the first case charged Gwaltney with being a felon in possession of firearms and possession of an unregistered firearm in Valencia County, N.M., on Jan. 19, 2009. According to the indictment, at the time, Gwaltney was prohibited from possessing firearms because he previously had been convicted of a drug trafficking offense and failure to appear in connection with a felony in the Seventh Judicial District Court for the State of New Mexico (Torrance County).
The indictment in the second case charged Gwaltney with robbing three banks in Albuquerque: (1) robbing the Bank of America, located in the Albertson’s supermarket at 4950 Montgomery Blvd. NE, on Dec. 29, 2008; (2) robbing the Bank of America, located in the Albertson’s supermarket at 2801 Eubank Blvd. NE, on Jan. 9, 2009; and (3) the Bank of America, located in the Albertson’s supermarket at 4950 Montgomery Blvd. NE, on Jan. 16, 2009.
On Oct. 3, 2011, Gwaltney entered guilty pleas to the felon in possession charge in the first case and the Dec. 29, 2008 bank robbery charged in the second case. Under the terms of the plea agreement, the remaining counts of the two indictments were dismissed after Gwaltney was sentenced.
The firearms case was investigated by the Bureau of Alcohol, Tobacco, Firearms& Explosives, the Los Lunas Police Department and the Bosque Farms Police Department. The bank robbery case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Both cases were prosecuted by Assistant U.S. Attorney Louis E. Valencia.
14 Arrested in Market Manipulation Schemes That Caused Thousands of Investors to Lose More Than $30 MillionRead the Press Release
Two Federal Indictments Charge 15 Defendants in Plots that Fraudulently Inflated Stock Values and Laundered Profits through Offshore Accounts
LOS ANGELES – Federal authorities have arrested 14 people named in two federal indictments that allege long-term schemes to manipulate stock prices that led to more than 20,000 investors losing over $30 million when artificially inflated stock prices collapsed. As one defendant described his scheme during a wiretapped phone call: “What I do is turn stock into money.”
The arrests were made yesterday pursuant to two grand jury indictments that were unsealed yesterday. The indictments detail two separate, large-scale fraud schemes in which conspirators: gained control of the majority of the stock of publicly traded companies, often co-opting company management to assist in these efforts;
concealed their control of the stock by purchasing and transferring shares to offshore accounts and to nominee entities with names such as “Dojo,” “Picasso,” and “Big Dog”;
fraudulently inflated the prices and trading volumes of the companies’ stocks through slick marketing campaigns, misleading press releases, payments to stock promoters, and “cross-trading” among co-conspirators that made it appear the stocks were being actively traded;
coordinated the sale of the companies’ shares at the peak of the fraudulently manipulated market; and
hid profits in nominee and offshore accounts.
According to court documents, the defendants are serial market manipulators who carried out several fraudulent deals each year, each of which generated several million dollars. The defendants generally targeted marginal companies operating in areas they believed could easily be touted as generating breakthroughs or deals that would explain sudden increases in trading volume and price, including companies purportedly involved in pharmaceuticals, hair restoration, green technologies, entertainment, oil and gas development, and e-commerce websites. The indictments allege that increased trading volume and higher stock prices were actually the result of the defendants’ fraudulent actions. A company CEO brought into one of the schemes summed up a typical deal during a wiretapped call: “There's nothing in there, there’s nothing to the company. It’s monkey business.”
The indictments allege that the schemes collectively engaged in five specific deals that defrauded more than 20,000 investors around the world and generated more than $30 million in illegal profits.
“This case has dismantled a far-reaching stock market manipulation scheme run with ruthless efficiency and operated with one goal in mind – to steal money from the investing public,” said United States Attorney André Birotte Jr. “This type of predatory behavior cheats the average investor, erodes overall confidence in the markets, and has a devastating impact on companies and their employees.”
One indictment alleges a scheme led by Sherman Mazur and his nephew, Ari Kaplan, charging that they “perpetrated a multimillion-dollar scheme to fraudulently inflate the prices and trading volumes of public company stocks and then sell millions of shares of those companies at the fraudulently inflated prices to the investing public for substantial profits.” The indictment alleges that the scheme involved a number of companies, but focuses on deals involving two businesses – GenMed, which purported to develop, manufacture and distribute generic pharmaceuticals; and Biostem, which purported to develop and license regenerative stem cell treatments, including hair regrowth technology.
The 32-count Mazur indictment charges nine defendants, all of whom were taken into custody yesterday morning. They are:
Sherman Mazur, 63, of the Westwood district of Los Angeles, who controlled a company called the London Finance Group, Ltd.;
Ari Kaplan, 40 of Venice, who is Mazur’s nephew and was his partner in the London Finance Group, as well as in a series of other business endeavors;
Grover Henry Colin Nix IV (who generally used the name “Colin Nix”), 39, of the Los Feliz district of Los Angeles, who controlled the Santa Monica-based Calbridge Capital, LLC, which purported to be a “boutique investment banking firm”;
Regis Possino, 65, of the Pacific Palisades district of Los Angeles, a now-disbarred attorney who was Nix’s partner at Calbridge Capital;
Edon Moyal, 32, of Carlsbad, California, who controlled a company called 8 Sounds, Inc. and while allegedly involved in this scheme was free on bond pending trial in a criminal case filed in federal court in San Diego;
Mark Harris, 56, of Scottsdale, Arizona, a stock promoter who controlled Apache Capital, LLC, an investor relations firm in Scottsdale, Arizona;
Joey Davis, 46, of the Los Feliz district of Los Angeles, who controlled Scripted Consulting Group, a public relations firm in Los Angeles, and who was allegedly involved in this scheme while free on bond pending trial in a criminal case filed in federal court in Los Angeles;
Curtis Platt, who turned 51 today, of Sarasota, Florida, who controlled Big Dog International, LLC; and
Dwight Brunoehler, 62, of Maitland, Florida, who is the CEO of Biostem, a company based in Clearwater, Florida.
The Mazur indictment alleges that the nine defendants conspired to commit securities fraud and wire fraud. The indictment alleges that members of the scheme generated at least $13 million in illegal proceeds when they sold their shares of manipulated companies, a figure that includes at least $2.1 million in illegal proceeds from the manipulation campaign for Genmed, as well as $500,000 in illegal proceeds from the ongoing manipulation campaign for Biostem. The indictment further alleges that Mazur, Kaplan, Nix, Possino and Harris engaged in money laundering, using funds transferred from offshore accounts to promote their fraudulent scheme.
“The defendants’ alleged combination of celebrities, press releases, gimmicks and lies was similar to a how a magician deceives unsuspecting believers into an illusion,” said Bill Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “While operating the schemes alleged in the indictments, the defendants kept their audience captive until stock prices peaked, while investor money vanished into defendants bank accounts.”
Release No. 13-024
13 February 2013
Worcester Man Sentenced to 87 Months for Stealing over 50 GunsRead the Press Release
BOSTON A Worcester man was sentenced today in U.S. District Court in Worcester for stealing over 50 firearms from a licensed gun dealer and reselling the weapons.
Kevin William Burke, 32, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 87 months in prison, followed by three years of supervised release and ordered to pay $41,967 in restitution. In May 2012, Burke pleaded guilty to 16 counts of stealing firearms.K&R Target Sports (K&R) was a federally licensed gun dealer operating in Hudson, Mass. Burke worked at K&R beginning in July 2009, and managed the business from December 2009 through mid April 2010 while the owner was in Florida. During his employment, Burke stole 54 guns from the inventory and sold most of the guns to other gun dealers in the Worcester area.
In order to conceal the theft, Burke made numerous false entries in the book and records of K&R that tracked the acquisition and disposition of guns. In many instances Burke failed to record that K&R had received a gun from the manufacturer or dealer, even though an invoice showed that it had. In other instances, Burke falsely reported that the gun was sold to a party other than the individual or gun dealer to whom Burke actually sold the gun. Burke told gun dealers that he was liquidating his inventory of guns because he was returning to Afghanistan. Burke maintained a secret bank account through which over $65,000 in unexplained income passed. At the time of his arrest, numerous firearms were found in his home including a handgun with an obliterated serial number and a sawed-off shotgun.
In addition, Burke sold guns he stole to a private party, knowing that the private party was, in turn, delivering the guns to associates and members of the Hell's Angels outlaw motorcycle gang.
“The theft and sale of illegal weapons has vast and indefinite consequences that jeopardize the security of citizens across Massachusetts,” said United States Attorney Carmen M. Ortiz. “We will continue to work with our law enforcement partners to investigate and prosecute individuals who violate the gun laws, risking the safety of our communities.”
“ATF's top priority is to combat violent crime. The theft of firearms and their transfer from the legal market to the illegal market threatens the safety and security of our communities,” said Gene Marquez, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Boston. “Today's sentencing sends a strong message - when you victimize gun stores and steal firearms you will be prosecuted and you will be put behind bars.”
United States Attorney Carmen M. Ortiz and Acting SAC Marquez of the Bureau of Alcohol, Tobacco, Firearms and Explosives Boston Field Division, made the announcement today. Assistance was also provided by the Hudson Police Department, Marlborough Police Department and Worcester Police Department. The case was prosecuted by Assistant U.S. Attorney David Hennessy, Chief of Ortiz’s Worcester Office
Woman Pleads Guilty in Heroin Trafficking ConspiracyRead the Press Release
JOHNSTOWN, PA - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Kimberly Cassidy, 40, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Cassidy, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for June 27, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Cassidy. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Williamson County Woman Sentenced on Methamphetamine OffenseRead the Press Release
On February 13, 2013, a Williamson County resident was sentenced in United States District Court in Benton on a one-count indictment charging Possession of a Listed Chemical Knowing it was Going to be Used to Manufacture a Controlled Substance, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Amber R. Stanton, 38, of Hurst, was sentenced to 87 months in prison, to be followed by 2 years of supervised release, and fined $300. Evidence at the plea and sentencing hearings established that Stanton had purchased over 120 grams of pseudoephedrine knowing that the pseudoephedrine was going to be used to manufacture methamphetamine. The offense occurred between 2010 and January 2012, in Williamson, Jackson and Franklin Counties.
The investigation was conducted by the Jackson County Sheriff’s Office, Williamson County Sheriff’s Office, Murphysboro Police Department and Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Wamblee Tonka Rowland Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 12, 2013, before Chief U.S. District Judge Richard F. Cebull, WAMBLEE TONKA ROWLAND, a 34-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, pled guilty to assault with a dangerous weapon. Sentencing has been set for May 15, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On July 16, 2012, the victim was at her home in Lame Deer, which is within the boundaries of the Northern Cheyenne Indian Reservation. ROWLAND and the victim got into a verbal argument that escalated to the point where ROWLAND threw rocks at her. ROWLAND threatened to kill the victim and told her that he was going to get his gun. ROWLAND then walked to his house, in the same neighborhood, and retrieved a shot gun. He loaded the gun with shells, walked toward the victim, and confronted her with the gun. He cocked the gun and pointed it at her. The victim retreated into her residence but, once inside, remembered that her children were outside and went back out to retrieve her kids. The victim was afraid that ROWLAND would shoot her in front of her kids.
ROWLAND's common law wife was outside of ROWLAND's house and witnessed the altercation with the victim. She tried to calm ROWLAND down, but ROWLAND's response was to point the gun at her. When interviewed, though, ROWLAND's common-law wife said that she was not afraid because the gun was not operational and she believed that she could calm ROWLAND down.
The police were called by neighbors who also witnessed the altercation. ROWLAND retreated into his house, hid the shotgun, and then hid under a table. He was arrested while trying to hide. He had shells in his pocket. The shot gun was seized.
Law enforcement test fired the shotgun and confirmed that it is operational.
ROWLAND faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Virginia Man Convicted by Jury of Attempting to Entice Minor to Engage in Illicit Sexual ActivityRead the Press Release
WASHINGTON - Paul David Hite, 58, of Midlothian, Va., was found guilty by a jury today of two federal charges of attempting to entice a minor to engage in illicit sexual activity, announced U.S. Attorney Ronald C. Machen Jr. and Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Joining in the announcement were Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Hite was convicted of the charges following a trial in the U.S. District Court for the District of Columbia. He faces a mandatory minimum sentence of 10 years of imprisonment on each count, a maximum sentence of 30 years’ imprisonment on each count, and a fine of up to $250,000. The Honorable Colleen Kollar-Kotelly scheduled sentencing for July 2, 2013.
Evidence presented at trial established that from Feb. 1, 2012 through Feb. 17, 2012, Hite engaged in a series of Internet chats and telephone calls with an undercover police detective in Washington, D.C., who was posing as an adult who was sexually abusing a minor girl and a minor boy. During the course of the communications with the undercover detective, Hite described, in graphic detail, the sexual activity in which he wanted to engage with the purported minors. Hite also discussed plans to travel to Washington, D.C. for the purpose of sexually abusing the purported minors.
Hite was arrested near his residence in Midlothian on Feb. 17, 2012. Law enforcement recovered computer equipment from Hite’s home, which uncovered evidence of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the verdict, U.S. Attorney Machen, Assistant Attorney General Breuer, Assistant Director in Charge Parlave and Chief Lanier commended the work of all who participated in the investigation. They especially acknowledged the efforts of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They expressed appreciation for the assistance provided by the U.S. Attorney’s Office for the Eastern District of Virginia, as well as the FBI’s Richmond Field Division.
They also acknowledged the efforts of Digital Investigative Analyst Christie Gardner of the Criminal Division’s Child Exploitation and Obscenity Section, and Criminal Investigator John Marsh of the U.S. Attorney’s Office for the District of Columbia. They additionally commended the efforts of those who assisted with the case at the U.S. Attorney’s Office, including Paralegal Specialist Starla Stolk; Legal Assistants Jessica Moffatt and Charmonique Price; Dawn Tolson-Hightower and David Foster of the Victim Witness Assistant Unit; and Joshua Ellen, Kimberly Smith, and Leif Hickling of the Litigation Services Unit.
Finally, they commended the work of Assistant U.S. Attorneys Elizabeth Wu from the Eastern District of Virginia, Diane Lucas of the Asset Forfeiture and Money Laundering Section of the U.S. Attorney’s Office for the District of Columbia, and David B. Kent and Julieanne Himelstein of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Darcy Katzin of the Criminal Division’s Child Exploitation and Obscenity Section.
13-052Utica Woman Sentenced in Fraud CaseRead the Press Release
United States Attorney Richard S. Hartunian announced today that a Utica woman has been sentenced for her role in an insurance and health care fraud scheme.
Today CYNTHIA MORGAN, age 54, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse. MORGAN was sentenced to 27 months imprisonment and ordered to pay restitution in an amount exceeding $1.4 million. MORGAN will also serve three years of supervision following her release from incarceration. She was remanded to prison immediately following sentencing.
MORGAN pled guilty on August 23, 2012 to conspiracy to commit mail and health care fraud. MORGAN admitted that in or about 2005 she agreed with Joseph Demme, Joseph Dellerba, Michael Matrulli and her husband David Morgan to participate in an insurance and health care fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, MORGAN claimed to have been driving a Ford van which was struck by a Ryder truck driven by Matrulli. In fact, the collision was staged and MORGAN was not injured. The defendant, however, claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits and disability benefits. MORGAN sought medical treatment for non-existent injuries or injuries that were not related to the collision. The bills for this medical care were submitted to and paid by a health care benefit program, specifically an insurance policy issued by Progressive Insurance Company. MORGAN collected $108,000 from Mutual of Omaha under a disability policy with that company. MORGAN also commenced a civil lawsuit seeking damages for personal injuries sustained in the accident. She received a payment of $30,000 to settle that suit.
The case was investigated by the Federal Bureau of Investigation and the New York State Insurance Frauds Bureau. The case was prosecuted by Assistant United States Attorney Edward R. Broton.
Union County, N.J., Bank Employee Sentenced to 37 Months in Prison for Conspiracy to Commit Bank RobberyRead the Press Release
TRENTON, N.J. – A Union County, N.J., man employed by the Westfield, N.J., branch of TD Bank was sentenced today to 37 months in prison for his role in a plan to rob the bank, U.S. Attorney Paul J. Fishman announced.
Jelani Bustamonte, 23, of Elizabeth, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an Information charging him with two counts of criminal conspiracy. On Jan. 26, 2012, Bustamonte was arrested at his home and charged by Complaint. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The first conspiracy involved a scheme to rob the TD bank tellers in Westfield. The second conspiracy was a plot to rob the vault inside the same bank. The bank was, in fact, robbed Sept. 11, 2011, although the vault was never robbed. Bustamonte admitted that he provided information about the bank’s layout, security and business operations, information he had gained through his employment, to conspirator Julio Ferrer. Ferrer previously pleaded guilty to robbing the Westfield branch of TD Bank on Sept. 11, 2011, and to six other branches of TD Bank in New Jersey between October 2011 and December 2011. He is scheduled to be sentenced by Judge Pisano on March 5, 2013.
At 2:21 p.m. on Sept. 11, 2011, an individual entered the TD Bank located at 560 North Avenue East, Westfield, and passed a deposit slip across the counter to a bank teller. The bank teller, who was in the process of counting cash at the counter, did not see the handwriting on the note or any monetary amount listed, and attempted to return the slip back to the person. The individual pushed the paper slip back across the counter and ordered the teller to “read it.” The teller read the handwritten note, which stated, “I want all the money lose (sic) bills.”
The teller stepped back upon reading the demand note. The bank robber then reached over the counter and took the cash that the teller had been counting. The bank’s video surveillance camera recorded the entire incident and captured images of the bank robber.Bustamonte told law enforcement he had discussed robbing the vault with the alleged bank robber and others. He said he advised the bank robber to go with one other person to rob the vault, and that the robber agreed to give Bustamonte up to $50,000 of the money from the vault. Bustamonte said he discussed with the robber the layout of the Westfield branch, and other information, including that he should ask for “loose bills” and not strapped money. He also said he was working at the bank the day it was robbed and recognized the bank robber, but did not disclose his identity to bank personnel or law enforcement.
In addition to the prison term, Judge Pisano sentenced Bustamonte to two years of supervised release and ordered him to pay $5,721 in restitution.U.S. Attorney Fishman credited special agents of the FBI under the direction of Acting Special Agent in Charge David Velazquez; the Westfield Police Department, under the direction of Police Chief David Wayman; and the Union County Prosecutor’s Office, under the direction of Prosecutor Theodore J. Romankow, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office in Newark.
13-076
Defense counsel: James P. Nolan Esq., Woodbridge, N.J.Union County, N.J., Bank Employee Sentenced to 37 Months in Prison for Conspiracy to Commit Bank RobberyRead the Press Release
TRENTON, N.J. – A Union County, N.J., man employed by the Westfield, N.J., branch of TD Bank was sentenced today to 37 months in prison for his role in a plan to rob the bank, U.S. Attorney Paul J. Fishman announced.
Jelani Bustamonte, 23, of Elizabeth, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an Information charging him with two counts of criminal conspiracy. On Jan. 26, 2012, Bustamonte was arrested at his home and charged by Complaint. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
The first conspiracy involved a scheme to rob the TD bank tellers in Westfield. The second conspiracy was a plot to rob the vault inside the same bank. The bank was, in fact, robbed Sept. 11, 2011, although the vault was never robbed. Bustamonte admitted that he provided information about the bank’s layout, security and business operations, information he had gained through his employment, to conspirator Julio Ferrer. Ferrer previously pleaded guilty to robbing the Westfield branch of TD Bank on Sept. 11, 2011, and to six other branches of TD Bank in New Jersey between October 2011 and December 2011. He is scheduled to be sentenced by Judge Pisano on March 5, 2013.
At 2:21 p.m. on Sept. 11, 2011, an individual entered the TD Bank located at 560 North Avenue East, Westfield, and passed a deposit slip across the counter to a bank teller. The bank teller, who was in the process of counting cash at the counter, did not see the handwriting on the note or any monetary amount listed, and attempted to return the slip back to the person. The individual pushed the paper slip back across the counter and ordered the teller to “read it.” The teller read the handwritten note, which stated, “I want all the money lose (sic) bills.”
The teller stepped back upon reading the demand note. The bank robber then reached over the counter and took the cash that the teller had been counting. The bank’s video surveillance camera recorded the entire incident and captured images of the bank robber.Bustamonte told law enforcement he had discussed robbing the vault with the alleged bank robber and others. He said he advised the bank robber to go with one other person to rob the vault, and that the robber agreed to give Bustamonte up to $50,000 of the money from the vault. Bustamonte said he discussed with the robber the layout of the Westfield branch, and other information, including that he should ask for “loose bills” and not strapped money. He also said he was working at the bank the day it was robbed and recognized the bank robber, but did not disclose his identity to bank personnel or law enforcement.
In addition to the prison term, Judge Pisano sentenced Bustamonte to two years of supervised release and ordered him to pay $5,721 in restitution.U.S. Attorney Fishman credited special agents of the FBI under the direction of Acting Special Agent in Charge David Velazquez; the Westfield Police Department, under the direction of Police Chief David Wayman; and the Union County Prosecutor’s Office, under the direction of Prosecutor Theodore J. Romankow, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office in Newark.
13-076
Defense counsel: James P. Nolan Esq., Woodbridge, N.J.U.s Attorney Raises Awareness on Teen Dating ViolenceRead the Press Release
PHOENIX - Valentine’s Day is a time to celebrate loving relationships. But maybe it is also a good time for parents to check-in with their teenagers who may be involved in a romantic relationship.
If you are a parent of a teenager, do you know the names and faces of three of their friends? Chances are one of them—maybe your own son or daughter—will be in an abusive relationship.
The fact is teen dating violence is often hidden and unreported. Not only do teens often lack the experience to navigate romantic relationships, they may also be unable to voice their feelings or communicate when emotional situations take a turn for the worse. Even more frightening is that if adolescents find the courage to tell their friends about being in an abusive relationship, statistics show that more times than not, their friends won’t know what to do to get them help.February is National Teen Dating Violence Awareness and Prevention Month and it is a great opportunity to raise awareness and focus efforts on breaking the cycle of violence by providing information about the availability of services and the importance of healthy relationships to young victims, their families and their communities.
While the Nation’s understanding of domestic violence, sexual assault and stalking has increased, so too has our awareness that these forms of violence affect all age groups and that violence within relationships often begin during adolescence. However the pattern of abuse can start much earlier. Studies show that children who are victimized or witness violence may carry this experience with them to the playground, classroom and later to teen relationships and ultimately adult intimate partner violence. As professionals, parents, educators, political and business leaders and other members of our local communities, we must teach about and model healthy, non-violent relationships. Intervention and prevention efforts are key elements to stopping the cycle of abuse and are priorities at the Department of Justice and here in the District of Arizona.
Attorney General Eric Holder’s Defending Childhood initiative is leveraging existing resources across the Department to focus on preventing, addressing, reducing and more fully understanding childhood exposure to violence. In support of this initiative, the Department’s Office on Violence Against Women awarded $5.6 million to 17 organizations that support services for children and caretakers including direct counseling, advocacy or mentoring for children or youth exposed to domestic and dating violence, sexual assault and stalking.
The Office on Violence Against Women administers several youth focused grant programs established by the Violence Against Women Act. This office has awarded grants totaling $38,641,872 to groups in Arizona since 2007 including over $7 million to agencies in Pima County such as Pima County Superior Court, Tucson City Court, the Pasqua Yaqui Tribe and the Tohono O’Odham Nation. Through these grants, federal funds provide unique opportunities for communities to increase collaboration among victim service providers, children, youth and men’s groups and schools to help teens understand healthy relationships. Through these partnerships, agencies can focus on educating the community, teens and children about identifying the signs of abuse and assist them in locating services if they or someone they know is experiencing a physically or emotionally abusive relationship.
Working to end violence in families and communities remains one of the U.S. Attorney’s Office in Arizona’s highest priorities. Every year, millions of children and adolescents across the United States are victimized and exposed to violence in their homes and communities, and often suffer severe long-term emotional and physical consequences. When these problems remain unaddressed, children are at higher risk for school failure, substance abuse, repeat victimization and perhaps, most disturbingly, perpetrating violent behavior later in their own lives. It is our responsibility to address this serious issue and protect our children.
So on this Valentine’s Day, I encourage everybody, especially parents, to look beyond the roses and chocolate-filled hearts that your children may have exchanged and provide an environment to talk about healthy, violence-free relationships.
John S. Leonardo
United States Attorney
District of ArizonaRELEASE NUMBER: 2013-016_TeenDatingViolenceVersion2
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
U.S. Attorney Calls Teen Dating Violence A Hidden CrimeRead the Press Release
By U.S. Attorney Barry Grissom
Valentine’s Day is a time to celebrate loving relationships. But maybe it is also a good time for parents to check-in with their teenagers who may be involved in a romantic relationship. If you are a parent of a teenager, do you know the names and faces of three of their friends? Chances are, one of them—maybe your own son or daughter — will be in an abusive relationship.
The fact is teen dating violence is often hidden and unreported. Not only do teens often lack the experience to navigate romantic relationships, they may also be unable to voice their feelings or communicate when emotional situations take a turn for the worse. Even more frightening is that if adolescents find the courage to tell their friends about being in an abusive relationship, statistics show that more times than not, their friends won’t know what to do to get them help.
February is National Teen Dating Violence Awareness and Prevention Month and it is a great opportunity to raise awareness and focus efforts on breaking the cycle of violence by providing information about the availability of services and the importance of healthy relationships to young victims, their families, and their communities.
While the Nation’s understanding of domestic violence, sexual assault and stalking has increased, so too has our awareness that these forms of violence affect all age groups and that violence within relationships often begins during adolescence. However the pattern of abuse can start much earlier. Studies show that children who are victimized or witness violence may carry this experience with them to the playground, classroom and later to teen relationships and ultimately adult intimate partner violence. As professionals, parents, educators, political and business leaders and other members of our local communities, we must teach about and model healthy, non-violent relationships. Intervention and prevention efforts are key elements to stopping the cycle of abuse and are priorities at the Department of Justice and here in the District of Kansas. Attorney General Eric Holder’s Defending Childhood initiative is leveraging existing resources across the department to focus on preventing, addressing, reducing, and more fullyunderstanding childhood exposure to violence. In support of this initiative, the Department’s Office on Violence Against Women awarded $5.6 million to 17 organizations that support services for children and caretakers including direct counseling, advocacy or mentoring for children or youth exposed to domestic and dating violence, sexual assault and stalking.
The Office on Violence Against Women administers several youth focused grant programs established by the Violence Against Women Act. Through these grants, federal funds provide unique opportunities for communities to increase collaboration among victim service providers, children, youth, and men’s groups and schools to help teens understand healthy relationships. Through these partnerships, agencies can focus on educating the community, teens, and children about identifying the signs of abuse, and assist them in locating services if they or someone they know is experiencing a physically or emotionally abusive relationship.
Working to end violence in families and communities remains one of the District of Kansas’ highest priorities. Every year, millions of children and adolescents across the United States are victimized and exposed to violence in their homes and communities, and often suffer severe long-term emotional and physical consequences. When these problems remain unaddressed, children are at higher risk for school failure, substance abuse, repeat victimization, and, perhaps, most disturbingly, perpetrating violent behavior later in their own lives. It is our responsibility to address this serious issue and protect our children.
So on this Valentine’s Day, I encourage everybody, especially parents, to look beyond the roses and chocolate-filled hearts that your children may have exchanged and provide an environment to talk about healthy, violence-free relationships.
U.S. Attorney Barry Grissom
District of KansasTwo Topeka Men Indicted on Federal Carjacking ChargeRead the Press Release
TOPEKA, KAN. - Two Topeka men have been indicted on a federal carjacking charge, U.S. Attorney Barry Grissom said today.
Tapoleon B. Hendricks, 18, Topeka, Kan., and Leondray M. Sanders, Jr., 18, Topeka, Kan., are charged with one count of carjacking. The indictment alleges that on Jan. 14, 2014, in Shawnee County, Kan., they carjacked a 2001 Chevrolet Impala from a victim identified in court records as S.P.
If convicted, they face a maximum penalty of 15 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER INDICTMENTS
Samuel L. Vliet, 21, Wichita, Kan., is charged with one count of commercial robbery. The indictment alleges that on Feb. 8, 2014, he robbed a Quick Trip at 2106 S. Rock Road in Wichita, Kan.
If convicted, he faces a penalty of not less than 20 years in federal prison and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
William A. Blacksmith, 26, Horton, Kan., is charged with one count of assault occurring on the Kickapoo reservation in Brown County, Kan. The indictment alleges that on Dec. 2, 2013, he assaulted an Indian victim identified in court records as J.E.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Kickapoo Tribal Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Crystal Zoe Amarillas-Norzagaray, 22, Tuscon, Ariz., and Pilar Angel Leon-Belran, 35, Tuscon, Ariz., are charged with one count of conspiracy to distribute 103 kilograms (more than 227 pounds) of marijuana, one count of possession with intent to distribute 103 kilograms of marijuana, and one count each of interstate travel in furtherance of drug trafficking. In addition, Leon-Beltran is charged with one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. The crimes are alleged to have occurred Dec. 30, 2013, in Ellis County, Kan.
Upon conviction, the crimes carry the following penalties: Conspiracy: A maximum penalty of 20 years in federal prison and a fine up to $1 million.
Possession with intent to distribute: A maximum penalty of 20 years in federal prison and a fine up to $1 million.
Aggravated unlawful re-entry: A maximum penalty of 20 years and a fine up to $250,000.
Interstate travel in furtherance of drug trafficking: A maximum penalty of five years and a fine up to $250,000.
The Kansas Highway Patrol and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.Erick Corona, 23, Topeka, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Jan. 24, 2014, in Shawnee County, Kan.
The indictment seeks a criminal forfeiture money judgment of $42,544, representing the proceeds of the crime.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
George Madison Kitchen, IV, 36, Kansas City, Mo., is charged with one count of possession with intent to distribute crack cocaine. The crime is alleged to have occurred Sept. 30, 2013, in Tonganoxie, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Tonganoxie Police Department investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Adam S. Taylor, 30, Wichita, Kan., is charged in a superseding indictment with one count of conspiracy to possess with intent to distribute methamphetamine, one count of unlawful possession of body armor and six counts of using a telephone in furtherance of drug trafficking. The crimes are alleged to have occurred in December 3013 in Sedgwick County, Kan.
Upon conviction the crimes carry the following penalties: Conspiracy: Not less than 10 years in federal prison and a fine up to 410 million.
Unlawful possession of body armor: A maximum penalty of three years and a fine up to $250,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000 on each count.
The Wichita Police Department investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.Antonio Vindiola, 41, Tuscon, Ariz., is charged with one count of possession with intent to distribute methamphetamine and one count of possession with intent to distribute cocaine. The crimes are alleged to have occurred Jan. 29, 2014, in Russell County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on each count. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Aaron L. Streight, 25, McPherson, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Dec. 1, 2013, in McPherson County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The McPherson County Sheriff’s Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
David D. Winchester, 54, Emporia, Kan., is charged with two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Oct. 23, 2013, in Lyon County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Lyon County Sheriff’s Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Victor Hernandez, 31, Independence, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Feb. 6, 2014, in Montgomery County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Drug Enforcement Administration investigated. Assistant U.S. Attorney David Lind is prosecuting.
Darrell Durbin, 50, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Feb. 9, 2014, in Sedgwick County.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $5 million. The Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Juvenal Bautista-Meza, 33, Garden City, Kan., is charged with one count of distributing methamphetamine, one count of unlawful possession of a firearm after a felony conviction, one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported, and one count of unlawful possession of a firearm by a person unlawfully in the United States. The Finney County Sheriff’s Department, the Garden City Police Department and Homeland Security Investigations investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Manuel Alex Munoz, 35, Chino, Calif., is charged with one count of distributing 25 pounds of methamphetamine and one count of traveling into Kansas in furtherance of drug trafficking. The crimes are alleged to have occurred Jan. 7, 2014, in Colby, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $4 million on the distribution count, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Kansas Highway Patrol investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Librado Hernandez-Flores, 37, a citizen of Mexico, is charged with unlawfully re-entering the United States after having been deported. He was found Jan. 7, 2014, in Sedgwick County, Kan.
He faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Twinsburg Man Indicted on Tax Charges for $8.8 Million SchemeRead the Press Release
A federal grand jury returned a 31-count indictment charging a Brian D. Krantz with crimes related to filing income tax refunds totaling more than $8.8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, IRS-Criminal Investigation Special Agent in Charge.
Krantz is 45 and resides in Twinsburg, Ohio, according to court records. He was indicted on one count of conspiring to make false claims against the United States and 30 counts of making false claims for income tax refunds totaling approximately $8,825,147, according to the indictment.
The U.S. Treasury issued 17 refund checks totaling approximately $3,615,586 payable to Krantz and various corporations controlled by Krantz as a result of the alleged scheme, according to the indictment.
“This defendant is accused of violating tax laws to enrich himself,” Dettelbach said. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be brought to justice.”
Williams added: “Today’s indictment proves that stealing from the government is a serious crime. It sends an important message to America’s taxpayers who play by the rules that we have no tolerance for those who make up their own rules.”
The indictment names Bryan D. McCallum as Krantz’s co-conspirator. McCallum previously pleaded guilty to a two-count information charging him with the false claims conspiracy and with making the same 30 false claims.
During the years charged in the indictment, Krantz owned and controlled two corporations engaged in financial services and/or real estate investment business activities, in which he employed McCallum as an accountant / bookkeeper.
The indictment charges that from approximately April 2009 through June 8, 2010, Krantz and McCallum conspired to make false claims for tax refunds using income tax returns filed with the IRS in the names of Krantz, companies formed by Krantz and McCallum, and several “shelf” companies purchased by Krantz. A “shelf” company is a corporate or other formal non-operating business entity established for the purpose of being held for sale to another person.
The scheme involved the use of fake IRS Forms 2439, titled “Notice to Shareholder of Undistributed Long-Term Capital,” which is a form to be issued by a regulated investment company (RIC) or real estate investment trust (REIT) to report undistributed capital gains and taxes withheld from those gains on behalf of the shareholders. Under federal tax law, RICs and REITs are entities that are not taxed on their earnings but instead pass those earnings to their shareholders who, in turn, have the obligation to report those earnings and any resulting tax liabilities on the shareholders’ income tax returns. The returns filed pursuant to the conspiracy claimed substantial amounts of Form 2439 withholding credits, when, in fact, none of the companies listed on the forms were actually RICs or REITs or had any undistributed capital gains or withheld taxes.
According to the indictment, Krantz used more than $1 million of the refund proceeds to finance a real estate venture he established with other partners, known as Phoenix Ventures Partners LLC. Krantz and McCallum misled Krantz’s real estate partners to believe that a group of Colorada-based hard money lenders had provided the funds.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The government’s case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts, following an investigation by the Internal Revenue Service, Criminal Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twenty-One Individuals Charged with Using Fraudulent Prescriptions to Obtain OxycodoneRead the Press Release
ALBUQUERQUE – Twenty-one individuals have been charged with using fraudulent prescriptions to unlawfully obtain Oxycodone, announced by U.S. Attorney Kenneth J. Gonzales, Second Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Joseph M. Arabit of the DEA’s El Paso Field Division, and Executive Director Larry Loring, R.Ph., of the New Mexico Board of Pharmacy.
Twenty of the 21 defendants were arrested this morning during a multi-agency law enforcement operation spear-headed by the DEA. An additional defendant has been summoned to appear in federal court. Fourteen of the 21 are facing federal charges and the remaining seven are facing state charges. The federal defendants are charged in indictments filed under seal on February 6, 2013, and unsealed earlier today. The state defendants are charged in criminal complaints.
The charges are the result of “Operation Paper Trail,” an investigation initiated in March 2011 by the DEA’s Tactical Diversion Squad in Albuquerque and the New Mexico Board of Pharmacy in response to the epidemic increase in prescription drug abuse, addiction and overdose deaths in New Mexico, particularly among teens and young adults. Operation “Paper Trail” targeted individuals using false and fraudulent prescriptions to obtain large quantities of Oxycodone in Bernalillo County. Oxycodone is opioid narcotic pain reliever similar to morphine that is medically prescribed to treat moderate to severe pain and can be habit-forming.
The abuse of prescription drugs, such as Oxycodone, is a serious problem in our communities. One way that these drugs are obtained illegally is through fraudulent prescriptions, which leads all too often to addiction, shattered lives, and even death,” said DEA Special Agent in Charge, Joseph M. Arabit. “In the interest of public safety, especially that of our young people, DEA and our law enforcement partners will continue to target those who illegally divert these pharmaceuticals.”
Second Judicial District Attorney Kari E. Brandenburg noted that, “Over the course of the past three years our office has accepted nearly 1,100 cases involving various prescription drugs, including Oxycontin, Oxycodone, Morphine, Xanax and others. It is clear that prescription drugs have become a danger to those abusing and illegally distributing them in our community. The problem has become so tremendous, our state ranks as one of the worst in the country for prescription drug overdoses. We are extremely grateful for the work done in this lengthy law enforcement investigation, which has resulted in multiple arrests. We hope this helps prevent future abuse and prescription drug overdoses in our community.”
“The New Mexico Board of Pharmacy recognizes the tragic effects of abuse, dependence and overdose when prescription drugs are diverted from pharmacies for sale on the streets of New Mexico communities,” said Executive Director Larry Loring, R.Ph., of the New Mexico Board of Pharmacy. “Board agents work daily to identify and apprehend those individuals who seek to acquire dangerous narcotic drugs with forged prescriptions. The New Mexico Board of Pharmacy will continue to work closely with local, state, and federal law enforcement to stop prescription forgery of these dangerous narcotic drugs.”
Those arrested today on federal charges include Sandy Candelaria, 50, an Albuquerque resident, who is employed as a secretary by the New Mexico Human Resources Department, and Christina Romero, 32, also of Albuquerque, who is employed as a special education assistant at an APS middle school. Twelve of the 13 federal defendants arrested today will make their initial appearances in federal court in Albuquerque at 9:30 a.m. tomorrow morning. Dolores Gallegos, 30, of Albuquerque, made her initial appearance this afternoon, and Eddie Gallegos, Sr., 60, also of Albuquerque, has been summoned to appear in federal court on Feb. 21, 2013. Each of the 14 federal defendants faces a maximum penalty of four years in prison, three years of supervised release, and a $250,000 fine, if convicted.
Those arrested on state charges include Pamela Zubia, 32, of Albuquerque, who is employed by Abarim Home Healthcare. The state defendants are expected to appear in court tomorrow. Each of the seven state defendants faces a maximum penalty of eighteen months of imprisonment if convicted.
Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The federal cases are being prosecuted by Assistant U.S. Attorneys Shammara H. Henderson, Charles L. Barth, C. Paige Messec, William Pflugrath, Jon K. Stanford, David M. Walsh and Lynn W.Y. Wang, and Special Assistant U.S. Attorneys Adam Rowley and Raquel Ruiz-Velez. The state cases will be prosecuted by Assistant District Attorneys of the Second Judicial District Attorney’s Office. The U.S. Marshals Service and Albuquerque Police Department participated in today’s enforcement operation.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
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Turtle Creek Man Charged with Escape from Renewal, Inc.Read the Press Release
PITTSBURGH, Pa. - One resident of Turtle Creek, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of escape from federal custody, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 12, named Christopher Rockwell, 39, as the sole defendant.
According to the indictment, on or about Dec. 27, 2012, Rockwell knowingly escaped from federal custody by leaving the confines of Renewal, Inc., located at 339 Boulevard of the Allies, in Pittsburgh, and failing to return. Rockwell, who had previously been convicted in the United States District Court for the Southern District of Mississippi of the crime of bank robbery, had been committed to the custody of the Attorney General of the United States, and thereafter transferred to and confined at Renewal, Inc., from where he escaped.
The law provides for a maximum total sentence of not more than five 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 Katherine A. King is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Provident Executives Guilty in Investment Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – Three more executives from Provident Royalties, Inc. have pleaded guilty in connection with an investment fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Brendan W. Coughlin, 46, of Dallas, Henry D. Harrison, 47, of Dallas, and W. Mark Miller, 59, of Plano, Texas, each acknowledged their roles in the multi-million dollar oil and gas investment fraud scheme.
According to documents filed in court, Coughlin and Harrison founded and controlled Provident, and Miller served as its Chief Financial Officer and later, as President. Between Jan. 1, 2009, and Feb. 3, 2009, Coughlin and Harrison conspired with others to defraud investors throughout the United States of $2.3 million. Specifically, Coughlin, Harrison, and other individuals made materially false representations and failed to disclose material facts to their investors in order to induce the investors into providing payments to Provident. Among these false representations were statements that funds invested would be used only for the project for which those funds were raised; among the material facts omitted from disclosure was that funds from investors in later oil and gas projects were being used to pay individuals who invested in earlier oil and projects. Miller knew that the crime had occurred but failed to report it to the authorities and instead took affirmative action – authorizing the lulling payments to investors – to conceal the crime from discovery.
Coughlin, Harrison, and Miller join two other Provident principals who have been held accountable for their crimes. Joseph Blimline, 35, pleaded guilty in connection with the scheme and was sentenced to 20 years in federal prison. Provident CEO/founder Paul R. Melbye, 47, pleaded guilty in connection with the scheme and faces up to five years in federal prison.
Coughlin and Harrison face up to five years in federal prison for their roles in the conspiracy. Miller faces up to three years in federal prison.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler. ####Three Defendants Plead Guilty in Manhattan Federal Court to Participating in $57.3 Million Fraud on Organization That Makes Reparations to Victims of Nazi PersecutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that GENRIKH KOLONTYRSKIY, MOYSEY KUCHER, and DORA KUCHER pled guilty today in Manhattan federal court to conspiring to defraud programs administered by the Conference on Jewish Material Claims Against Germany, Inc. (the “Claims Conference”), established to aid the survivors of Nazi persecution, out of more than $57 million. MOYSEY KUCHER and DORA KUCHER were arrested in February 2011, and KOLONTYRSKIY was arrested in October 2011, as part of an ongoing investigation that has resulted in charges against a total of 31 participants in the scheme. To date, 10 former Claims Conference employees have been charged, including a former director of the programs that were victimized. All three pled guilty today before U.S. District Judge Thomas P. Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Our efforts to hold to account all of the individuals who participated in defrauding an organization that exists solely for the purpose of aiding victims of Nazi atrocities continues. Today’s guilty pleas today underscore that commitment.”
According to the Complaints and the Indictment filed in Manhattan federal court:
The Claims Conference, a not-for-profit organization which provides assistance to victims of Nazi persecution, supervises and administers several funds that make reparation payments to victims of the Nazis, including “the Hardship Fund” and “the Article 2 Fund,” both of which are funded by the German government. Applications for disbursements through these funds are processed by employees of the Claims Conference’s office in Manhattan, and the employees are supposed to confirm that the applicants meet the specific criteria for payments under the funds.
As part of the charged scheme, a web of individuals systematically defrauded the Article 2 Fund and Hardship Fund programs for over a decade. The Claims Conference first suspected the fraud in December 2009, and immediately reported their suspicions to law enforcement, which conducted a wide-reaching investigation.
The Hardship Fund pays a one-time payment of approximately $3,500 to victims of Nazi persecution who evacuated the cities in which they lived and were forced to become refugees. Members of the conspiracy submitted fraudulent applications for people who were not eligible. Many of the recipients of fraudulent funds were born after World War II, and at least one person was not even Jewish. Some members of the conspiracy recruited other individuals to provide identification documents, such as passports and birth certificates, which were then fraudulently altered and submitted to corrupt insiders at the Claims Conference, who then processed those applications. When the applicants received their compensation checks, they kept a portion of the money and passed the rest back up the chain.
From the investigation to date, the Claims Conference has determined that at least 3,839 Hardship Fund applications appear to be fraudulent. These applications resulted in a loss to the Hardship Fund of approximately $12.3 million.
The Article 2 Fund makes monthly payments of approximately $400 to survivors of Nazi persecution who make less than $16,000 per year, and either lived in hiding or under a false identity for at least 18 months; lived in a Jewish ghetto for 18 months; or were incarcerated for six months in a concentration camp or a forced labor camp. The fraud involved doctored identification documents in which the applicant’s date and place of birth had been changed. The fraud also involved more sophisticated deception, including altering documents that the Claims Conference obtains from outside sources to verify a person’s persecution by the Nazis. Some of the detailed descriptions of persecution in the fraudulent Article 2 Fund applications were completely fabricated.
From the investigation to date, the Claims Conference has determined that at least 1,112 Article 2 Fund cases it processed have been determined to be fraudulent. Those cases have resulted in a loss to the Claims Conference of approximately $45 million.
While employed as a caseworker in the Article 2 Fund program at the Claims Conference, KOLONTYRSKIY knowingly processed fraudulent applications in return for payments from his co-conspirators.
MOYSEY KUCHER and DORA KUCHER both recruited individuals to provide identification documents that were subsequently used in connection with the preparation of fraudulent Hardship Fund and Article 2 Fund applications, in exchange for a portion of the money paid out to those applicants. In addition, MOYSEY KUCHER received payments from both the Article 2 Fund and the Hardship Fund based on fraudulent applications submitted to those programs in his own name, while DORA KUCHER received the one-time payment from the Hardship Fund based on a fraudulent application in her name.
With today’s pleas, a total of 22 defendants charged in the scheme have pled guilty. Charges remain pending against the remaining nine defendants in the case, who are presumed innocent unless and until proven guilty.
KOLONTYRSKIY, 80, of Brooklyn, New York, faces a maximum sentence of 40 years in prison. MOYSEY KUCHER, 66, and DORA KUCHER, 58, who also reside in Brooklyn, each face a maximum sentence of 20 years in prison. All three defendants are scheduled to be sentenced by Judge Griesa on August 8, 2013 at 2:30 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”). He also thanked the Claims Conference for bringing this matter to the FBI’s attention and for its extraordinary continued cooperation in this investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Christopher D. Frey and Jonathan Cohen, and Special Assistant U.S. Attorney Rebecca Rohr are in charge of the prosecution.
U.S. v. Domnitser, et al. S1 Indictment
U.S. v. Domnitser, et al. Complaint
Claims Conference Fraud Takedown Remarks (11-09-2010)Three Armed Career Criminals Plead GuiltyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that three Georgia residents entered pleas of guilty in three separate Indictments before the Honorable Clay D. Land, United States District Judge for the Middle District of Georgia, in Columbus, Georgia, under the Armed Career Criminal Act of 1984. The Act provides for a mandatory minimum sentence of fifteen (15) years up to a maximum of life imprisonment for felons who possess a firearm after having been previously convicted of three or more prior violent felonies or serious drug crimes. Sentencing is scheduled for all three defendants on August 15, 2013.Jason Scott Carney of Columbus, Georgia, age 46, entered a guilty plea to Possession of a Firearm by a Convicted Felon, in violation of Title 18 United States Code, Section 922(g)(1) and 924(e)(1). The remaining counts were dismissed in consideration of this plea. Mr. Carney has sixteen (16) previous arrests and five (5) prior felony convictions.
Russell Scott Delevie of Columbus, Georgia, age 35, entered his guilty plea to Count One, Possession of a Firearm by a Convicted Felon, in violation of Title 18 Unites States Code, Section 922(g)(1) and 924(e)(1). Mr. Delevie has eleven (11) previous arrests and five (5) prior felony convictions.
Tommy Nykeal Johnson of Shellman, Georgia, age 36, entered a guilty plea to a One Count Indictment charging him with Possession of a Firearm by a Convicted, in violation of Title 18 United States Code, Section 922(g)(1)and 924(e)(1). Mr. Johnson has sixteen (16) previous arrests and five (5) prior felony convictions.
United States Attorney for the Middle District of Georgia Michael J. Moore stated that, “The Armed Career Criminal Act is one of the strongest weapons federal prosecutors have in fighting violent crime and making sure that repeat offenders are locked away when they illegally possess a firearm. These three defendants have been thorns in the side of their communities, and hopefully their lengthy incarcerations will provide some relief to the law-abiding citizens in the Columbus area.”
These cases were investigated by the Bureau of Alcohol, Tobacco, and Firearms and were prosecuted by Assistant United States Attorney Crawford Seals.
Questions concerning these cases should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office, at (478) 621-2602.
Thirty-Two Individuals Convicted of Cocaine, Marijuana, and Oxycodone ConspiraciesRead the Press Release
GREENEVILLE, Tenn. – Between September 2011 and February 2013, the 32 individuals, listed below have all pleaded guilty to various drug conspiracies related to cocaine, marijuana, and oxycodone:
1. William A. Lawson, 66, of Rogersville, Tenn.; 2. Randal Michael Lawson, 57, of Limestone, Tenn.; 3. James Light, 64, of Rogersville, Tenn.; 4. Kenneth A. Lawson, 45, of Limestone, Tenn.; 5. Tia L. Lawson, 40, Kingsport, Tenn.; 6. Elia Maria Camacho Garcia, 30, Burlington, N.C.; 7. Brock A. Lawson, 26, Rogersville, Tenn.; 8. Jeffrey M. Bledsoe, 31, Kingsport, Tenn.; 9. Jessica L. Lawson, 32, Bristol, Tenn.; 10. Charles T. Laing, 30, Boynton Beach, Fla.; 11. Jackie D. Dykes, 48, of Rogersville, Tenn.; 12. Michael L. Dykes, 51, of Rogersville, Tenn.; 13. Lorne L. Loucel, 32, of Rogersville, Tenn.; 14. Lisa A. Crawford, 37, of Rogersville, Tenn.; 15. Virginia D. Light, 49, of Rogersville, Tenn.; 16. Asa Kermit M. Calhoun, 33, of Rogersville, Tenn.; 17. Steve A. Gooch, 29, of Rogersville, Tenn.; 18. Jonathan L. Light, 24, of Kingsport, Tenn.; 19. Jeremy R. Light, 28, of Rogersville, Tenn.; 20. Michael B. Dykes, 30, of Rogersville, Tenn.; 21. Daniel L. Dykes, 29, of Rogersville, Tenn.; 22. Christy D. Dykes, 32, of Rogersville, Tenn.; 23. Levi D. Love, 24, of Kingsport, Tenn.; 24. Shandeeda M. Compton, 31, of Rogersville, Tenn.; 25. Jessica R. Bernard, 23, Greeneville, Tenn.; 26. Cody A. Arnold, 27, Greeneville, Tenn.; 27. Joyce L. Malone, 35, Greeneville, Tenn.; 28. Christopher L. Tipton, 30, Afton, Tenn.; 29. Abbey M. Armstrong, 28, Greeneville, Tenn.; 30. Amanda D. Bernard, 23, Greeneville, Tenn.; 31. Christy R. Seay, 39, Greeneville, Tenn.; and 32. Marvin Neal Southerland, 34, Greeneville, Tenn.
This investigation began in 2009 and targeted individuals in the Tennessee counties of Greene, Sullivan, and Hawkins, who were trafficking in large quantities of cocaine and marijuana supplied by a drug trafficking organization in North Carolina. In addition, individuals in Tennessee were distributing large quantities of oxycodone pills obtained from Nevada and Georgia. In 2010, Laing and other individuals opened The Liberty Wellness Pain Clinic in Norcross, Ga., and began using the clinic to obtain oxycodone for distribution in the Eastern District of Tennessee. In April 2012, the Drug Enforcement Administration (DEA) in Georgia raided the clinic and shut down its operations.
During the investigation, the DEA, in conjunction with agencies in Tennessee, North Carolina, and Georgia, seized a total of 105 kilograms of cocaine, 271 pounds of marijuana, hundreds of oxycodone pills, multiple firearms, approximately $2.5 million in cash, and three parcels of real property in the Eastern District of Tennessee.
In total, the investigation revealed that, between 2002 and 2012, approximately 6,545 kilograms of marijuana, 35 kilograms of cocaine, and over 20,000 oxycodone pills were distributed in the Eastern District of Tennessee by these individuals.
“These cases are an example of extraordinary cooperation and effort on behalf of several local, state, and federal agencies. With the substantial support of these local and state law enforcement agencies, we were able to convict a large number of individuals associated with this very significant drug operation. There were millions of dollars, hundreds of pounds of cocaine, marijuana, and tens of thousands of oxycodone pills involved in this widespread illegal operation. The investigation continues. It is essential for local, state and federal authorities to work together to rid society of such criminal activity. In these cases, the cooperative effort was superb. Hawkins, Sullivan and Greene county residents are safer because of these prosecutions and convictions. AUSA Hebets, representing the United States, has worked long and diligent hours, for months, to achieve these convictions,” said U.S. Attorney Bill Killian.
Hawkins County Tennessee Sheriff Ronnie Lawson stated, “This is the first time in the history of Hawkins County that local, state, and federal agencies have teamed together to rid one community of a terrible drug problem. It gives me great pride to be a part of that.”
Sullivan County Tennessee Sheriff Wayne Anderson stated, “This investigation resulted in the conviction of several high profile individuals who have been engaging in criminal conduct in our communities since the 1990’s. This is a great example of what we can accomplish when we work together.”
Greene County Tennessee Sheriff Steve Burns stated, “I am very proud of this multi-agency investigation which has made a large impact on the drug problem in this region.”
In addition to the drug distribution charges, several individuals, including William A. Lawson, Randall Michael Lawson, Elia Maria Camacho Garcia, and Charles T. Laing, also pleaded guilty to conspiracies to launder money.
William A. Lawson and Randall Michael Lawson also pleaded guilty to Social Security Fraud. Charles T. Laing and Jeffrey M. Bledsoe also pleaded guilty to possessing a firearm in furtherance of the drug trafficking offenses.
These individuals are all awaiting sentencing before the Honorable Leon Jordan, U.S. District Court Judge and the Honorable J. Ronnie Greer, U.S. District Court Judge. Randall Michael Lawson faces a mandatory term of 20 years in prison, a maximum fine of $20,000,000.00, and at least 10 years supervised release upon his release from prison. William A. Lawson, Kenneth A. Lawson, Tia L. Lawson, Brock A. Lawson, and Jessica L. Lawson each face mandatory terms of 10 years in prison, maximum fines of $10,000,000.00 and at least five years supervised release upon release from prison. James Light, Elia Maria Camacho Garcia, and Jeffrey M. Bledsoe each face mandatory terms of five years in prison, maximum fines of $5,000,000.00, and at least four years supervised release upon release from prison. The remaining individuals each face maximum terms of 20 years in prison, maximum fines of $1,000,000.00, and at least three years of supervised release upon release from prison. Additionally, Charles T. Laing and Jeffrey M. Bledsoe both face consecutive terms of five years in prison in connection with the firearms charges. All also face mandatory court assessments.
This indictment was the result of an investigation by the Hawkins County Tennessee Sheriff’s Department, Sullivan County Tennessee Sheriff’s Department, Greene County Tennessee Sheriff’s Department; Second Judicial Drug Task Force, Kingsport, Tennessee, Police Department, Third Judicial Drug Task Force, Tennessee Bureau of Investigation, and DEA. Assistant U.S. Attorney Caryn L. Hebets represented the United States.
Third Defendant Sentenced in $15 Million Mortgage Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Cameron Green, 36, of Pickerington, Ohio was sentenced to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Jason Simcox and Kevin Simcox, to the victim mortgage lenders for fraudulently obtaining approximately $15,037,421 in mortgage loans to finance the purchase of 26 real estate properties in Maricopa County, Arizona.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Michael Watson.
On January 9, 2013 Jason Simcox, 39, of Pickerington, Ohio was sentenced by Senior U.S. District Judge George C. Smith to 12 months and one day in prison, three years of supervised release, and ordered to pay $6,115,965 in restitution, jointly and severally with Cameron Green and Kevin Simcox, to the victim mortgage lenders.
According to court documents, between August 2006 and May 2007, the two men applied for loans using false income, assets, and occupancy statements on the loan applications. The mortgage loans were inflated to allow Simcox and Green to use the excess mortgage proceeds to generate cash kickbacks payable to co-conspirators that were undisclosed to the mortgage lenders. The co-conspirators then provided the money to Simcox and Green via interstate wire transfers.
The men used a mortgage brokerage company they co-owned, Vanguard Mortgage, located in Westerville, Ohio, to finance the purchases of the properties. Each man inflated his income, minimized his assets, failed to disclose his ownership of several other properties on which he held mortgage loans, and concealed the fact that he intended to receive substantial cash kickbacks after the closing of three properties. Simcox and Green received approximately $1,469,263.00 in seller kickbacks, real estate agent commissions, real estate agent commission kickbacks, and fees.
All 26 of the Arizona properties were subsequently sold short or foreclosed upon due to the borrowers being unable to pay the monthly mortgage payments.
Stewart commended Assistant United States Attorney Laura Fulton who prosecuted these cases and the cooperative investigation conducted by FBI and IRS agents as part of the Southern Ohio Mortgage Fraud Task Force.
Successful Conclusion of Operation Rolling Thunder Deals Blow to Illegal Trafficking in Federally-Protected Eagles and HawksRead the Press Release
United States Attorney Michael W. Cotter of the District of Montana, and United States Attorney Brendan V. Johnson of the District of South Dakota, announced the results of Operation Rolling Thunder, a two-year covert investigation focusing on unlawful trafficking in federally-protected migratory birds, primarily bald and golden eagles. The operation was conducted by agents of the U.S. Fish and Wildlife Service from March 2008 through February 2011 in Montana and South Dakota.
The investigation documented 43 transactions of protected migratory birds, primarily bald and golden eagles, in violation of the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act, and the Lacey Act. The unlawful transactions include the purchase of multiple whole carcass bald and golden eagles in interstate commerce using the United States Postal Service and wire transfers of funds to further the transactions. In total, the operation was able to purchase feathers, other bird parts (wings, claws), and complete migratory birds, which involved a minimum of 80 eagles and 30 hawks.
In response to the successful prosecutions in Operation Rolling Thunder, U.S. Attorney Michael W. Cotter said, "I have to commend the investigators with the U.S. Fish Wildlife Service and Assistant U.S. Attorney Mark Smith for his excellent work in this case. Investigations and prosecutions, like Operation Rolling Thunder, of those that kill our protected species for their own gain are vital to ensuring the sustainability of the majestic raptors of our country."
U.S. Attorney Brendan V. Johnson added, "I want to recognize and thank the U.S. Fish and Wildlife Service investigators for their diligent efforts in this Operation, and Assistant U. S. Attorneys Eric Kelderman and Tim Maher for their vigorous prosecution of those that have violated the Bald and Golden Eagle Protection Act. The Department of Justice respects the appropriate use of bird parts for cultural and religious purposes, but the success of Operation Rolling Thunder demonstrates that once that line is crossed, we will strongly enforce federal wildlife laws that preserve natural resources."
This investigation documented the unlawful killing and commercialization of eagles and hawks, an unlawful practice that in certain areas of our country is a significant threat to species that are a vital part of our natural heritage," said Ed Grace, Deputy Chief for the U.S. Fish and Wildlife Service. "We hope the penalties in these cases serve as a deterrent to those engaged in this practice, and urge the public to help us put an end to it."
On October 12, 2012, the Department of Justice announced a policy addressing the ability of members of federally recognized Indian tribes to possess or use eagle feathers, an issue of great cultural significance to many tribes and their members. The Attorney General's memorandum is the first formal policy statement adopted by the Justice Department on this issue. It clarifies and expands on longstanding Department practice, consistent with the Department of the Interior's 35-year old Morton Policy, of not prosecuting tribal members for possessing or using eagle feathers and other protected bird parts. Federal wildlife laws such as the Bald and Golden Eagle Protection Act generally criminalize the killing of eagles and other migratory birds and the possession or commercialization of the feathers and other parts of such birds. These important laws are enforced by the Department of Justice and the Department of the Interior and help ensure that eagle and other bird populations remain healthy and sustainable.
Many Indian tribes and tribal members have historically used, and today continue to use federally protected birds, bird feathers or other bird parts for their tribal cultural and religious expression. Federal wildlife laws recognize the importance of accommodating tribal spiritual needs by allowing exceptions for the religious purposes of Indian tribes. Eagle feathers are made available to tribal members every year from the Fish and Wildlife Service's National Eagle Repository. www.fws.gov/le/national-eagle-repository.html
For more information on the Department's Eagle Feathers Policy, visit www.justice.gov/tribal/feathers-fs.htm.
Five defendants were indicted in South Dakota, and seven were indicted in Montana. What follows is a summary of the cases for those defendants who have been sentenced:
SOUTH DAKOTA DEFENDANTS:
Stanley LITTLEBOY On January 5, 2012, Stanley LITTLEBOY appeared before United States District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. LITTLEBOY was sentenced to the following:
Five (5) months in the custody of the Bureau of Prisons
Five (5) months in Community ConfinementOne (1) year of Supervised Release
Special Assessment Fee
Shane REDHAWK On January 18, 2012, Shane REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following:
One (1) month in the custody of the Bureau of Prisons
Five (5) months in Home Confinement
One (1) year of Supervised Release
Community Service
Special Assessment Fee
Noella REDHAWK On January 18, 2012, Noella REDHAWK appeared before United States District Court Judge Roberto A. Lange and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. REDHAWK was sentenced to the following:
Six (6) months in Home Confinement
One (1) year of Probation
Community Service
Special Assessment Fee
Tilden REDDEST On February 24, 2012, Tilden REDDEST appeared before U.S. District Court Judge Jeffrey L. Viken and was sentenced on two counts of violating the Bald and Golden Eagle Protection Act. REDDEST was sentenced to the following:
Fifty-two (52) consecutive weekends in custody. To be served at the Pennington County Jail, Rapid City, South Dakota
Five (5) years of Probation
Community Service
Special Assessment Fee
MONTANA/SOUTH DAKOTA JOINT DEFENDANT:
Ernie L. STEWART On January 11, 2012, Ernie L. STEWART appeared before U.S. District Judge Jeffrey L. Viken and pled guilty to one (1) count of violating the Bald and Golden Eagle Protection Act. Later, Stewart's case was transferred from the District of South Dakota to the District of Montana for sentencing, because Stewart had related charges pending in that District. On May 9, 2012, Ernie L. STEWART appeared before U.S. District Court Judge Jack D. Shanstrom and was sentenced on three (3) counts of violating the Bald and Golden Eagle Protection Act. STEWART was sentenced to the following for charges in Montana and South Dakota:
Twelve (12) months and one (1) day in the custody of the Bureau of Prisons
One (1) year of Supervised Release
Revocation of hunting and fishing privileges
Special Assessment Fee
MONTANA DEFENDANTS:
Melody GOODSTRIKER On January 7, 2012, Melody GOODSTRIKER, per a plea agreement with the U.S. Attorney's Office, forfeited $500.00 in collateral to the Central Violations Bureau for a violation of the Migratory Bird Treaty Act.
Harvey HUGS On January 27, 2012, Harvey HUGS appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Bald and Golden Eagle Protection Act. HUGS was sentenced to the following:
Six (6) months in the custody of the Bureau of Prisons
One (1) year of Supervised Release
Special Assessment Fee
Marc LITTLE LIGHT On March 8, 2012, Marc LITTLE LIGHT appeared before U.S. Magistrate Judge Carolyn S. Ostby and was sentenced on one count of violating the Migratory Bird Treaty Act. LITTLE LIGHT was sentenced to the following:
One (1) year of Probation
Fine
Special Assessment Fee
William E. HUGS Jr. On May 2, 2012, William E. HUGS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on five (5) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. HUGS Jr., was sentenced to the following:
Time served in custody (Jan 9, 2012 through May 2, 2012)
Three (3) years of Supervised Release
Payment of $500.00 Special Assessment Fee
Gilbert G. WALKS Jr. On May 4, 2012, Gilbert G. WALKS Jr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on four (4) counts of violating the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act. WALKS Jr., was sentenced to the following:
Twenty-four (24) months in the custody of the Bureau of Prisons
One (1) year of Supervised Release
Community Service
Payment of $400.00 Special Assessment Fee
William E. HUGS Sr. On June 13, 2012, William E. HUGS Sr. appeared before Chief U.S. District Court Judge Richard F. Cebull and was sentenced on one (1) count of violating the Bald and Golden Eagle Protection Act. HUGS Sr., was sentenced to the following:
Eighteen (18) months in the custody of the Bureau of Prisons
Three (3) years of Supervised Release
Payment of $500.00 Special Assessment Fee
Law enforcement is essential to virtually every aspect of wildlife conservation. The U.S. Fish and Wildlife Service Office of Law Enforcement contributes to Service efforts to manage ecosystems, save endangered species, conserve migratory birds, preserve wildlife habitat, restore fisheries, combat invasive species, and promote international wildlife conservation.
U.S. Fish and Wildlife Service law enforcement today focuses on potentially devastating threats to wildlife resources -- illegal trade, unlawful commercial exploitation, habitat destruction, and environmental contaminants. The Office of Law Enforcement investigates wildlife crimes, regulates wildlife trade, helps Americans understand and obey wildlife protections laws, and works in partnership with international, state, and tribal counterparts to conserve wildlife resources.
When fully staffed, the Office of Law Enforcement includes 261 special agents and some 140 wildlife inspectors.
Second Carbon County Woman Pleads GuiltyRead the Press Release
To Federal Cocaine Trafficking Charges
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a second woman from Carbon County pleaded guilty today before Senior United States District Judge Edwin M. Kosik to the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Victoria Ann Argott, age 34, of Lansford, Carbon County, admitted to participating in a conspiracy to distribute crack cocaine and powder cocaine in the Carbon County area between January 2011 and December 2012.
Previously, Bonnie Vosburgh, age 22, of Nesquehoning, Carbon County, entered a guilty plea and admitted to participating in the same cocaine trafficking conspiracy.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Rodrick D. Gant Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 13, 2013, before Chief U.S. District Judge Richard F. Cebull, RODRICK D. GANT, a 23-year-old resident of Billings, was sentenced to a term of:
Prison: 106 months
Special Assessment: $300
Supervised Release: 5 years
GANT was sentenced after a federal district court trial in which he was found guilty of conspiracy to commit robbery affecting interstate commerce, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a person convicted of domestic abuse.
Assistant U.S. Attorney Marcia K. Hurd prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GANT will likely serve all of the time imposed by the court. In the federal system, GANT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Riverview Woman Pleads Guilty to Tax Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Carlista Hawls pleaded guilty today to one count of conspiracy to defraud the Internal Revenue Service, wire fraud, and theft of government funds and one count of aggravated identity theft. Hawls faces a maximum penalty of 5 years in federal prison for the conspiracy charge and a consecutive 2-year mandatory minimum term of imprisonment for the aggravated identity theft charge.
According to the plea agreement, between January and August 2012, Hawls engaged in a scheme with other individuals to file false income tax returns with the IRS. The returns were filed in order to obtain fraudulent refunds to which the conspirators were not owed. The conspirators used the personal information of others to electronically file approximately 217 false and fraudulent federal income tax returns. In many cases, the individuals whose information appeared on these fraudulent filed returns did not know that Hawls and her co-conspirators were filing the returns on their behalf. In total, these 217 fraudulent returns claimed approximately $1,554,493.00 in bogus tax refunds. Ultimately, the IRS paid out $551,472.90 in refunds to the conspirators.
This case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Ringleader Pleads Guilty in Multistate Teacher Certification Cheating ScamRead the Press Release
Memphis, TN – Clarence Mumford, Sr., 59, of Memphis, has pled guilty to charges related to the teacher certification cheating scam of which he was the ringleader, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Mumford was originally charged in July 2012 in a 45-count indictment alleging a conspiracy to violate the laws of the United States, mail fraud, wire fraud, social security fraud, aggravated identity theft and fraud in connection with identification documents. The original indictment was superseded twice, in August 2012 and September 2012, ultimately resulting in a 63-count indictment charging Mumford and twelve other individuals.
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“Today’s guilty plea by the ringleader of this test-taking scam illustrates one of the fundamental lessons we teach our kids: cheaters never win,” said United States Attorney Edward L. Stanton III. “Clarence Mumford cheated both honest teachers who did things the right way and also the parents and children who deserve to have qualified teachers in the classroom – and he did it all for personal gain. Actions such as these undermine our educational system and ultimately strike at the core of our society.” U.S. Attorney Stanton added: “We are proud to have partnered with the U.S. Secret Service, the Tennessee Bureau of Investigation, and the Shelby County District Attorney General’s Office to bring Mumford to justice.”
Mumford’s guilty plea is the ninth in the case. Guilty pleas have been entered previously by John Bowen, Dante Dowers, Valerie Humphrey, Carlo McClelland, Carlos Shaw, Jeryl Shaw, Shantell Shaw, and Felippia Turner-Kellogg.
Mumford pleaded guilty to one count of conspiring to violate the laws of the United States and one count of aggravated identity theft. During the guilty plea hearing, it was revealed that numerous individuals paid Mumford to have teacher certification (PRAXIS) examinations taken on their behalf. Many were teaching under temporary licenses and needed to pass the examinations to retain their jobs. Others were attempting to obtain teaching jobs, or were teachers seeking additional endorsements on their licenses in subjects such as guidance counseling. Twenty-six individuals who had one or more examinations arranged by Mumford were named at the hearing. Of those, many obtained teaching licenses in Tennessee and
Mississippi based on the examinations. Many, however, never obtained licenses. Sometimes Mumford’s test-takers did not show up or did not pass the exams.
It was also revealed at the hearing that test-takers who were identified during the investigation admitted taking approximately 70 to 90 tests during the course of the scheme, which dated back to 1995. Mumford paid test-takers from $200 to $1000 per examination during the course of the conspiracy and charged individuals prices ranging from $1,000 to $6,000 for multiple examinations.
“The U.S. Secret Service is proud to be a partner in this investigation and prosecution,” said Rick Harlow, Special Agent in Charge of the Memphis field office of the United States Secret Service. “Mr. Mumford’s actions attack the integrity of our school systems and undermine the trust of the people. The community impact of this case is significant and long reaching.”
Investigators began to unravel the ring after Bowen was caught at Arkansas State University taking a test in the morning in one person’s name and in the afternoon in a second person’s name. Proctors caught Bowen and two others who had taken morning and afternoon sessions in multiple names. Educational Testing Services, which created and administered the PRAXIS examinations, investigated and reported the incident to the Tennessee Department of Education, which referred the case to the Tennessee Bureau of Investigation. The United States Secret Service later joined the investigation.
“At a time when educators across the state and nation are making sweeping reforms to improve the education system, this case tarnishes those efforts,” said Tennessee Bureau of Investigation Director Mark Gwyn. “We hold the people who work in our schools and we trust with our children in high regard; unfortunately, the teachers, administrators and individuals involved in this case are a black eye on the education system. Cheating on teacher certification examinations sets a very poor example to our children. The Tennessee Bureau of Investigation is grateful that the scheme was exposed, and those responsible, especially Mr. Mumford, are going to have to pay a price.”
“The teacher fraud investigation and convictions exemplify the great results that can happen when state and federal agencies work together. Mumford’s guilty plea encompasses everything we mean when we say our job is to seek justice,” said Amy Weirich, Shelby County District Attorney General.
In addition to Mumford’s guilty plea, U.S. Attorney Stanton also announced that the following individuals, all of whom had tests taken for them during the scheme, have entered into diversion agreements with the government admitting to their involvement: Debbie Adams, 39, of Lauderdale, MS
Natalie Blackmon, 36, of Jackson, MS
Keiver Campbell, 43, of Greenville, MS
Yanesha Coleman, 32, of Louisville, MS
Lavante Epson, 36, of Greenville, MS
Genette Haggie, 43, of Yazoo City, MS
Jacqueline Hill, 52, of Macon, MS
Frances Jones, 59, of Greenwood, MS
Gregory King, 41, of Columbus, MS
Willie Knox, 55, of Memphis, TN
Maria Lozano, 31, of Cordova, TN
Jerome Martin, 40, of Coldwater, MS
Vic Mosby, 56, of Pine Bluff, AR
Shunica Scott, 38, of Memphis, TN
Forman Thompson, 40, of Carthage, MS
Leonardo Thompson, 39, of Starkville, MS
Taponsa Wells, 41, of Clarksdale, MS
Brian Williams, 32, of Anguilla, MS
The diversion agreements bar these individuals from teaching for five years, regardless of whether they obtain valid teaching certificates based on their own scores, or whether they have already done so. These individuals have also signed five-year statute of limitations waivers, so that if they attempt obtain a teaching job within five years they will be prosecuted. In addition, the agreements require restitution from the individuals who obtained teaching licenses and positions as a result of tests arranged by Clarence Mumford, Sr.
This investigation is being conducted by the Tennessee Bureau of Investigation and the United States Secret Service. Assistant U.S. Attorney John Fabian and Special Assistant U.S. Attorney Kirby May represent the government.Rhode Island Tax Preparer Pleads Guilty to Violating Federal Court Order Barring Him from Preparing Tax Returns; Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Michael Brier, owner of the tax preparation firm Refunds Now Inc., based in Providence, R.I., pleaded guilty Monday in U.S. District Court in Providence to violating a federal court order permanently barring him from preparing tax returns for others. He also pleaded guilty to underreporting more than $1.1 million dollars in income between 2004 and 2009, and failing to pay nearly $400,000 in federal taxes.
Brier pleaded guilty to one count of criminal contempt and one count of tax evasion, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston office of the Internal Revenue Service (IRS), Criminal Investigation.
In November 2010, the court entered a preliminary injunction against Brier and his employees, after finding that at least 300 tax returns prepared by Brier and Refunds Now understated customers’ tax liabilities, and that Brier and his employees fabricated tax deductions and credits on the returns. Brier and his employees prepared approximately 24,000 federal income tax returns between 2003 and 2007. An IRS examination 350 of those returns determined that 92 percent of them required adjustments, resulting in a government-estimated loss of more than $1.1 million in tax revenue.
On March 7, 2011, the federal court ordered that Michael Brier and his employees be permanently barred from preparing federal income tax returns for others.
According to information presented to the court on Monday, on April 26, 2011, IRS Criminal Investigation agents executed a court-authorized search warrant at Brier’s tax preparation business, Refunds Now. During the execution of the search warrant, agents seized copies of tax returns prepared by Brier and several of his employees that were filed after the date of the permanent injunction. Agents also seized payment records and client communications establishing that Brier had continued to provide tax preparation services after March 7, 2011. IRS agents also interviewed numerous taxpayers who confirmed that Brier personally prepared and filed their federal tax returns after March 7, 2011.
At the time of his guilty plea on Monday, Brier admitted to the court that he underreported taxable income to the IRS between 2004 and 2009 totaling $1,152,679, and that he underpaid $399, 424 in taxes to the IRS.
Brier is scheduled to be sentenced on May 10, 2013.
There is no maximum penalty set forth for criminal contempt. At sentencing, the court has the power to punish by fine or imprisonment. The maximum fine allowed is $250,000, or twice the gross gain or gross loss, whichever is greater. The maximum term of supervised release is 5 years.
Tax evasion is punishable by a maximum sentence of up to 5 years in federal prison; a fine of $10,000, or twice the gross gain or gross loss, whichever is greater; and up to a maximum term of supervised release of 3 years.
The case is being prosecuted by Assistant U.S. Attorney Richard B. Myrus.
Contact: 401-709-5357
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