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13 February 2013
Raleigh Man Sentenced for Drug TraffickingRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday United States District Judge Terrence W. Boyle sentenced DONTEZ RUFFIN, 30, to 420 months imprisonment followed by 5 years supervised release.
On December 1, 2012, RUFFIN plead guilty to one count of conspiring to distribute and possessing with intent to distribute 5 kilograms or more of cocaine, 280 grams or more of cocaine base (crack) and a quantity of marijuana, in violation of Title 21, United States Code, Section 841(a)(1). This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Damu Demolition.
The investigation demonstrated that RUFFIN was a member of a drug trafficking organization operating as early as 2004 in and throughout Southeast Raleigh that was responsible for multiple kilograms of cocaine being cooked into crack cocaine and distributed into local communities. RUFFIN and his co-conspirators were also responsible for the bulk distribution of high grade marijuana; more than 500 pounds of which were seized as part of the investigation.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force consisting of the Raleigh Police Department, the Cary Police Department, the Garner Police Department, the Durham Police Department, the North Carolina Alcohol Law Enforcement, the North Carolina State Highway Patrol, the Durham County Sheriff’s Office and the North Carolina Department of Probation and Parole. Assistant United States Attorney Denise Walker represented the government.
President of Bogus Foreclosure Rescue Company Involved in Mortgage Fraud Pleads GuiltyRead the Press Release
NEWARK, N.J. – An Ocean County man today admitted his role in a mortgage loan fraud scheme that succeeded in obtaining $4.4 million in mortgage loans while masquerading as a foreclosure rescue operation based in Holmdel, N.J., U.S. Attorney Paul J. Fishman announced.
Vito C. Grippo, 58, of Jackson, N.J., the president of Morgan Financial Equity Shares and Vanick Holdings, LLC, pleaded guilty before U.S. District Judge Kevin McNulty to an Indictment charging him with one count of conspiracy to commit wire fraud, two counts of filing a false tax return for the years 2006 and 2007, and one count of aiding and procuring the filing of a false tax return for the year 2008.
According to documents filed in this case and statements made in court:
Between January 2008 and February 2010, Vito Grippo held Morgan Financial out to the public as a company that could help homeowners who faced foreclosure on their homes through something Grippo called the “Equity Share Program.” As described by Grippo and his associates, the Equity Share Program involved creating a limited liability company (“LLC”) in the name of the homeowner’s house, in which the homeowner would supposedly own a 90 percent interest with the rest to be owned by one or two private investors.
In reality, the so-called investors invested nothing and were instead straw buyers recruited by Vito Grippo or his son, Frederick “Freddie” Grippo, because they had good credit. The Grippos and their associates then applied for mortgages in the names of the “investors” for the purchase of the properties owned by the homeowners in distress. Freddie Grippo pleaded guilty to conspiracy to commit wire fraud before Judge McNulty on Nov. 28, 2013.
A homeowner in distress would come to a closing in Vito Grippo’s office in Holmdel and be given a stack of documents to sign to prevent foreclosure. The homeowners frequently did not understand that they would be transferring title to their homes to the “investor.”
The so-called investor was in reality a straw buyer of the homeowner’s house. The new mortgage loan applications filled out by the Grippos or their associates in the name of one of the investors contained materially false information about the loan applicant’s monthly income, his assets and whether the residence to be bought would be applicant’s primary residence.
Once the new loan application was filled out, it would be submitted to Worldwide Financial Resources for processing where Freddie Grippo, a loan officer at Worldwide, would see to it that the loan was approved. Once the loan was approved and the loan money was wired to the settlement agent for a given transaction, Vito Grippo would direct the settlement agent to forward a portion of those loan proceeds to bank accounts that Vito Grippo controlled.
Properties that lost money through the Equity Share Program were found throughout the metropolitan area, including homes in Rutherford, N.J., Monroe, N.J. and Brooklyn, N.Y.
For the year 2006, Vito Grippo did not report $289,780 in gross income from the activities of Vanick Holdings LLC. For the year 2007, he did not report $213,261; and for the year 2008, he did not report $1,366,261.
The conspiracy charge to which Vito Grippo pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million. Each of the three tax charges to which Vito Grippo pleaded carries a maximum penalty of three years and a maximum fine of $100,000. Sentencing is scheduled for May 29, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Red Bank Resident Agency, under the direction of Acting Special Agent in Charge David Velazquez in Newark; special agents from IRS—Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, and postal inspectors in the Newark Division, under the direction of Acting Inspector in Charge Maria Kelokates, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Economic Crimes Unit in Newark.
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Defense counsel: Patrick N. McMahon Esq., Assistant Federal Public Defender, Newark
Grippo Indictment
Postal Service Contract Driver Charged with Stealing MailRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of Theft of Mail, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Feb. 12, named John Marianov, 57, as the sole defendant.
According to the indictment presented to the court, Marianov was employed as a highway route contract driver for the United States Postal Service. From May 2012 ,through December 2012, while Marianov was working as a contract driver, he stole greeting cards and letters containing cash, checks, money orders, gift cards and opera tickets from mail that was routed through the Washington, Pa., post office. The total value of the stolen items was over $4,000.
The law provides for a maximum total sentence of 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 Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The United States Postal Inspection 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.
Paralegal Who Filed Fraudulent Visa Applications for Foreign Nationals Is SentencedRead the Press Release
February 13, 2013David B, Fein, United States Attorney for the District of Connecticut, announced that FERNANDO GONCALVES, 56, a citizen of Brazil who formerly resided in Bethany, was sentenced today by United States District Judge Michael P. Shea in Hartford to approximately 7 and one-half months of imprisonment, time already served, for filing fraudulent visa applications for foreign nationals.
According to court documents and statements made in court, GONCALVES, a practicing attorney in Brazil, served as the office manager and paralegal at a law practice in Stamford that assisted persons in obtaining immigration benefits, including employment authorization and permanent resident status. GONCALVES’s responsibilities included meeting with potential clients, preparing documents for submission to various state and federal agencies, and collecting monies paid by clients for legal representation by the law firm. In his position as office manager and paralegal, GONCALVES knowingly filed fraudulent employment-based visa applications for foreign nationals.
Specifically, GONCALVES obtained money from foreign nationals by preparing and submitting approximately eight fraudulent I-485 forms (Application to Register Permanent Residence or Adjust Status). GONCALVES was paid more than $7,000 by each foreign national for whom he performed immigration services. Each of the applications submitted on behalf of the eight individuals contained false statements and fraudulent documents in support of the application, including false rental agreements, false affidavits, false employment experience and false letters.
GONVALVES has been detained since his arrest on June 28, 2012, at JFK International Airport, after he returned to the United States from Brazil. On September 18, 2012, he waived his right to indictment and pleaded guilty to one count of document fraud.
This matter was investigated by ICE Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Ohio Federal Court BarsAppraiser of Historic-Preservation EasementsRead the Press Release
A federal court in Cleveland has barred MAI-designated real estate appraiser Michael Ehrmann and his firm, Jefferson & Lee Appraisals Inc., from preparing property appraisals for federal tax purposes, the Justice Department announced today. Judge Dan Aaron Polster of the U.S. District Court for the Northern District of Ohio signed the civil injunction order against Ehrmann and Jefferson & Lee Appraisals. The defendants consented to the injunction without admitting the allegations against them.
Federal law allows a taxpayer in certain limited circumstances to claim a charitable deduction for the value of a conservation easement donated to a qualified organization. The easement’s value must be determined by a qualified appraiser. According to the government complaint, Ehrmann’s appraisals repeatedly overstated the value of conservation easements placed on historic properties, including the Book Cadillac Hotel in Detroit and the Powerhouse Building in the Flats District of Cleveland.
In its complaint, the government contends that Ehrmann distorted data and provided misinformation or unsupported personal opinions to get artificially high values for conservation-easement donations. The complaint also alleges that “Ehrmann knows that his clients will use the inflated values provided in his appraisals to claim overstated charitable contribution deductions.” According to the government complaint, the amount of improper tax deductions attributable to Ehrmann’s flawed appraisals could reach hundreds of millions of dollars.
In 2011, in the U.S. District Court for the District of Columbia, the Justice Department obtained an injunction against the Trust for Architectural Easements, formerly known as the National Architectural Trust, barring it from engaging in abusive practices relating to the valuation and donation process for historic-conservation easements. The Internal Revenue Service has listed abuse of charitable deductions as one of its “Dirty Dozen” tax scams . The Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters in the past decade. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Michael Ehrmann, et al.
Agreed Order of Permanent Injunction (PDF)Northern Virginia Therapy Provider to Pay $700,000<br /> to Resolve False Claims Act AllegationsRead the Press Release
Fairfax, Va.-based skilled nursing facility Fairfax Nursing Center (FNC) and its owners have agreed to pay $700,000 to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to Medicare of false claims for non-reimbursable rehabilitation therapy services, the Justice Department announced today.
The settlement resolves claims that FNC provided excessive, medically unnecessary, or otherwise non-reimbursable physical, occupational, and speech therapy services to 37 Medicare beneficiaries serviced by FNC between January 2007 and December 2010. The United States alleged that the rehabilitation therapy services provided by FNC to these beneficiaries were not reasonable and necessary for the treatment of their condition. Specifically, the United States alleged that the therapy services were often excessive, duplicative, performed without clear goals or direction, and, in some instances, performed primarily to capture higher reimbursement rates.
“Today’s settlement is another example of the Department’s efforts to hold skilled nursing facilities accountable for the rehabilitation therapy services they deliver to some of the most vulnerable in our society,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “The provision of excessive and medically unnecessary therapy services will not be tolerated.”
“Medicare fraud takes many forms and arises in various segments of health care,” said U.S. Attorney Neil H. MacBride. “We continue to work toward recovery of money lost to overbillings to Medicare.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by two former FNC therapists and one former contract therapist under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblowers in this case will receive, collectively, $122,500 of the recovery. The lawsuit is captioned as United States of America & Commonwealth of Virginia ex rel. Christine Ribik, Nadine Kelly, & Stephanie Beauregard v. Fairfax Nursing Center, Inc., et al. No. 1:11-cv-496 (E.D. Va.).
The case was handled by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Virginia, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Medicaid Fraud Control Unit of the Commonwealth of Virginia Attorney General’s Office. The claims settled by this agreement are allegations only; there has been no determination of liability.
North Tonawanda Tax Preparer Sentenced for Tax Evasion and Bank FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Vincent P. Mangione,49 of North Tonawanda, N.Y., who was convicted of tax evasion and bank fraud, was sentenced to 30 months in prison and ordered to pay more than $800,000 in restitution to the victims by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant operated MTS Payroll and Mil-Sher Tax Services, Inc. The companies provided payroll services and bookkeeping and tax preparation for individuals and businesses. Between December 2002 and April 2007, Mangione, without the knowledge of the businesses he represented, filed fraudulent quarterly federal tax returns. In order to avoid detection, the defendant obtained the actual amount of withholding tax the businesses owed to the Internal Revenue Service. Mangione then filed a false quarterly tax return that under represented the amount owed to the IRS and would keep the difference for his own benefit.
In addition, in December 2007, the defendant defrauded a local bank by depositing checks into an account, which he knew had insufficient funds, and then withdrew the funds from the account prior to the checks clearing. The loss associated with both schemes totaled over $800,000
The sentencing is the culmination of an investigation on the part of Special Agents of the Criminal Division of the Internal Revenue Service, under the direction of Special Agent in Charge Toni Weirauch and the United States Secret Service under the direction of Special Agent in Charge Tracy Gast.
Newtown Man Admits Producing Child PornographyRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that EDWARD F. WILSON, 29, of Newtown, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of production of child pornography.
According to court documents and statements made in court, in approximately 2011 and 2012, WILSON sexually abused a female child, filmed and photographed the abuse with an iPhone and maintained the videos and images on his home computer. The victim was approximately four years old at the time of the abuse.
In addition to filming, photographing and maintaining videos and images of the sexual abuse that he inflicted on the female child, WILSON traded via email hundreds of other images and videos of child pornography and maintained a collection of child pornography on his home computers.
WILSON is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on May 1, 2013, at which time WILSON faces a mandatory minimum term of imprisonment of 15 years, a maximum term of imprisonment of 30 years and a fine of up to $250,000.
WILSON has been detained in state custody since his arrest on April 13, 2012, for first-degree possession of child pornography, obscenity and promoting a minor in an obscene performance. On July 10, 2012, he was arrested on 22 additional state charges, including six counts of first-degree sexual assault, five counts of fourth-degree sexual assault and 11 counts of risk of injury. The state charges are pending.
This case is being investigated by the Connecticut State Police Computer Crimes Unit, the Newtown Police Department, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant United States Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Doctor Sentenced to Five Months in Prison for Taking Cash Kickbacks for Medicare and Medicaid Patient ReferralsRead the Press Release
Also Sentenced to Five Months of Home Confinement, Fined $30,000.
NEWARK, N.J. – A New Jersey doctor practicing in West Orange was sentenced today to five months in prison and five months of home confinement for his role in a payment-for-patients scheme in which he took envelopes of cash in exchange for making patient referrals, U.S. Attorney Paul J. Fishman announced.
Dov Rand, 48, of Franklin Lakes, N.J., previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of violating the federal healthcare program anti-kickback statute. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 13, 2011, Rand was arrested – along with 12 other New Jersey doctors and one nurse practitioner – and charged with accepting cash kickback payments from Orange Community MRI (“Orange MRI”), an Orange, N.J., diagnostic facility, in exchange for his referral of Medicare and Medicaid patients. During the course of the investigation, Rand and others were recorded taking envelopes of cash in exchange for their patient referrals. Orange MRI’s executive director, Chirag Patel, 37, of Warren, N.J., was arrested on Dec. 8, 2011, in connection with the scheme.
Starting in 2010, Orange MRI made monthly cash kickback payments to Rand in exchange for his referral of patients to Orange MRI for diagnostic tests. At the end of each month, individuals at Orange MRI printed patient reports that detailed how many tests Rand referred and used them to calculate the kickback payment owed to Rand. Pursuant to Rand’s agreement with Orange MRI, he was paid kickbacks for each MRI test on a Medicare or Medicaid beneficiary referred to the facility.
Rand admitted receiving cash payments on more than one occasion in October and November 2011 in exchange for his referral of patients.
In addition to the prison term and home confinement, Judge Cecchi sentenced Rand to two years of supervised release and fined him $30,000.
U.S. Attorney Fishman credited special agents of U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation leading to today’s sentence. He also thanked the Centers for Medicare and Medicaid Services for its vital role at the investigation’s inception.
The government is represented by Assistant U.S. Attorneys Joseph Mack and Scott B. McBride of the U.S. Attorney’s Office Healthcare and Government Fraud Unit in Newark.
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Defense counsel: Anthony Pope Esq., Newark
New Haven Man Sentenced to Two Years in Federal Prison for Distributing MarijuanaRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that KAI JACKSON, also known as “Killer Kai,” 31, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 24 months of imprisonment, followed by two years of supervised release, for distributing marijuana.
JACKSON is one of 108 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms.
The investigation revealed that JACKSON conspired with others to purchase and redistribute between 2.5 and five kilograms of marijuana.
JACKSON has been detained since his arrest on May 22, 2012. On November 16, 2012, he pleaded guilty to one count of conspiracy to distribute marijuana.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided invaluable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Mortgage Broker and Loan Officer Sentenced for Multi-Million Dollar Fraud SchemeRead the Press Release
PHILADELPHIA - Dennis Nicholas, 62, Bernadette Nicholas, 64, both of Newtown Square, PA, and Kevin McAllister, 59, of Drexel Hill, PA, were sentenced today for engaging in schemes to defraud Wilmington Trust Federal Savings Bank and Malvern Federal Savings Bank that involved properties valued at more than $35.5 million. Dennis Nicholas was sentenced to 72 months in prison; Bernadette Nicholas was sentenced to 42 months in prison; McAllister was sentenced to 20 months in prison
In addition to the prison terms, U.S. District Court Judge Legrome D. Davis ordered Bernadette Nicholas and Kevin McAllister to jointly pay restitution to Wilmington Trust in the amount of $2.5 million; ordered Bernadette Nicholas to pay restitution to Malvern Federal Savings in the amount of $2.5 million; and ordered Dennis Nicholas to pay restitution to Malvern Federal Savings in the amount of $2,755,909.27.
Bernadette Nicholas was a mortgage broker who intentionally misrepresented material facts to Wilmington Trust about borrowers’ income and assets, the potential rental income and accurate appraisals of properties. She falsified borrowers’ tax returns and documents relating to the true source and amount of the down payments being made by borrowers, and forged borrowers’ signatures on loan documents.
Kevin McAllister was a loan officer with Wilmington Trust working in conjunction with Nicholas to approve mortgage loans for borrowers who did not meet Wilmington Trust’s criteria for income, assets, and credit scores, in return for bribes and kickbacks from Nicholas. As a result, Nicholas and McAllister caused the approval of loans totaling more than $30 million.
Bernadette Nicholas received a mortgage broker’s commission equivalent to approximately two to three percent of the total amount of a funded loan at the time of loan settlement. During the years 2004, 2005, and 2006, Bernadette Nicholas received approximately $1.2 million as the result of the loans funded by Wilmington Trust. She deposited the money into accounts maintained by Dennis Nicholas who then paid Kevin McAllister equivalent to approximately one percent of the amount of the funded loan, which was a kickback/bribe for getting the questionable loan approved and funded. McAllister made $379,075 in kickbacks. None of the defendants reported the income on their taxes.
Dennis Nicholas was convicted at trial on July 19, 2012 of bank fraud, bank bribery, loan application fraud, and filing false and fraudulent income tax returns. Bernadette Nicholas pleaded guilty to those same charges on October 31, 2011. McAllister pleaded guilty on October 31, 2011 to bank fraud, bank bribery, loan application fraud, and tax evasion.
Another defendant, Wayne Rosen, who was charged in a scheme with Bernadette Nicholas to defraud Malvern Federal, will be sentenced February 25, 2013. Nicholas brokered the sale of an apartment building between Rosen and mortgage clients and sought a $1.6 million loan from Malvern Federal for her clients. Nicholas altered the borrowers’ income tax returns prior to submitting them to Malvern Federal and falsely represented the borrowers’ income, the amount of the borrowers’ down payment, and the details of a subordination agreement between Rosen and the borrowers on the borrowers’ loan application and supporting documents. At settlement on the apartment building, Dennis Nicholas, Bernadette Nicholas and Rosen falsely represented to Malvern Federal that the borrower had made a down payment. Bernadette Nicholas and Rosen applied for a $3.5 million loan to refinance an existing loan that they had on a medical building. In order to influence Malvern Federal’s actions, Bernadette Nicholas, Dennis Nicholas and Rosen prepared and caused to be prepared fraudulent leases which misrepresented the potential rental flow income of their medical building and caused these leases to be submitted to Malvern Federal.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Anita Eve.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Miller Man Sentenced for Killing Endangered SpeciesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Miller, South Dakota man pled guilty and was sentenced for killing an endangered whooping crane.
Jeff Blachford, age 26, appeared before U.S. Magistrate Judge Mark A. Moreno on February 13, 2013 and pled guilty to one count of violating the Federal Endangered Species Act. Blachford was sentenced to $85,000 in restitution, 2 years of probation, and a $25 assessment to the Victim Assistance Fund. Blachford was additionally ordered to forfeit the rifle he used in the offense and is prohibited from hunting, fishing, or trapping anywhere in the United States for two years.
“Wildlife is an important resource to the people of South Dakota. This year marks the 40th anniversary of the Endangered Species Act, and the sentence handed down today for the senseless killing of a whooping crane, one of the rarest birds in the world, is a prime example of the enforcement of that law,” said Johnson. “The Department of Justice works hand in hand with the U.S. Fish and Wildlife Service and takes the killing of endangered species very seriously. Let this case serve as notice to anyone who thinks otherwise.”
In April 2012, Blachford shot and killed an adult male whooping crane approximately 17 miles southwest of Miller. “The killing of this whooping crane was a senseless act and the U.S. Fish and Wildlife Service is pleased with the sentence handed down in this case,” said Deputy Chief Edward Grace of the U.S. Fish and Wildlife Service Office of Law Enforcement. “The protection of endangered species is a high priority for the U.S. Fish and Wildlife Service and our Special Agents, in partnership with the South Dakota Department of Game, Fish and Parks, will continue to aggressively investigate these types of violations to ensure these animals receive the protection they need to survive.”
Whooping cranes are one of the rarest birds in the world with a total population of approximately 600 individuals. The whooping crane killed in this case was one of about 300 wild whooping cranes that migrate from wintering grounds along the gulf coast of Texas to the Woods Buffalo State Park located in Alberta and the Northwest Territories of Canada. This population of whooping cranes is the only self-sustaining population in the world.
This investigation was conducted by the U.S. Fish and Wildlife Service Office of Law Enforcement and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Members of Rhino Smuggling Ring Arrested and ChargedRead the Press Release
Three people have been charged this week in Newark, Miami and New York City with wildlife smuggling and related charges for their alleged roles in an international rhino horn smuggling ring, the Justice Department announced today. The arrests and charges are the result of “Operation Crash”, a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
Federal grand juries in Newark, N.J., and Miami have indicted Zhifei Li, in the international smuggling of rhinoceros horns. Shusen Wei, a 44 year old Chinese business executive and an associate of Li, has also been charged with offering to bribe a federal agent in the Li case. Qing Wang was charged today in a related criminal complaint in federal court in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li via Hong Kong.
According to the indictment filed in Newark on Feb. 11, 2013, Li, a 28 year-old Chinese national, conspired to smuggle more than 20 raw rhinoceros horns from the United States to Hong Kong in 2011 and 2012. Li wired hundreds of thousands of dollars over at least a year to a co-conspirator in the United States to fund purchases of rhinoceros horns. Li’s co-conspirator smuggled the rhino horns in porcelain vases and mailed them to Hong Kong and China to a person other than Li, in an effort to evade detection by U.S. officials. Li and his co-conspirator bought many of the horns in New Jersey from other members of the conspiracy. Li was arrested in January on charges previously filed in New Jersey.
Li also was indicted on Feb. 12, 2013, in Miami on wildlife trafficking and smuggling charges. According to court records and government statements made in court, shortly after arriving in Florida in January 2013 for the Original Miami Beach Antique Show, Li purchased two endangered black rhinoceros horns from an undercover U.S. Fish & Wildlife Service agent in a Miami Beach hotel room for $59,000. Li asked if the undercover officer could procure additional rhinoceros horns and mail them to his company in Hong Kong.Also arrested on a related criminal complaint filed in Miami was Shusen Wei, a Chinese business executive, who also was attending the antique show and sharing a hotel room with Li. According to documents filed in court in Miami, Wei was interviewed by agents after Li’s arrest and admitted to knowing about Li’s smuggling activities and to purchasing rhinoceros carvings from Li that apparently had been purchased in and smuggled from the United States. After being served with a grand jury subpoena to appear in New Jersey, Wei left Miami for New York en route to China. Prior to leaving Miami, Wei allegedly asked an undercover informant to invite a FWS special agent out to dinner in Miami and offer her money to assist Li. After a series of recorded phone calls and text messages, Wei was arrested as he attempted to board a flight bound for China at JFK International Airport in New York on Saturday, Feb. 3, 2013, on charges of bribing a federal official. According to documents filed in court, Wei proposed that the undercover informant offer the agent as much as $10,000.
Qing Wang is scheduled to appear in court today to face charges in a criminal complaint in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li in Hong Kong. According to documents unsealed today, Wang was one of several that purchased items in the United States for Li. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups . Drinking from such a cup was believed to bring good health and such carvings are highly prized by collectors. Wang is alleged to have been smuggling rhinoceros horn cups as well as ivory carvings to Li in Hong Kong.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
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 more than 175 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. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing multi-agency effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation resulting in the charges announced today has been conducted by the Special Investigations Unit of the FWS Office of Law Enforcement, with assistance from the Department of Homeland Security. The Li case is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey by Assistant U.S. Attorney Kathleen O’Leary. The Wei case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald in the Southern District of Florida. The Wang case is being prosecuted by Assistant U.S. Attorney Janis Echenberg in the U.S. Attorney’s Office of the Southern District of New York. Senior Trial Attorney Richard A. Udell of the Environmental Crimes Section of the U.S. Department of Justice is assisting in and coordinating all of the prosecutions. Additional support has been provided by the U.S. Attorney’s Office in the Eastern District of New York.
Members of Rhino Smuggling Ring Arrested and ChargedRead the Press Release
Chinese Business Executive Arrested After Allegedly Offering Bribe
Three people have been charged this week in Newark, Miami and New York City with wildlife smuggling and related charges for their alleged roles in an international rhino horn smuggling ring, the Department of Justice announced today. The arrests and charges are the result of “Operation Crash”, a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
Federal grand juries in Newark, N.J., and Miami have indicted Zhifei Li for international smuggling of rhinoceros horns. Shusen Wei, a 44 year old Chinese business executive and an associate of Li, has also been charged with offering to bribe a federal agent in the Li case. Qing Wang was charged today in a related criminal complaint in federal court in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li via Hong Kong.
According to the indictment filed in Newark on Feb. 11, 2013, Li, a 28 year-old Chinese national, conspired to smuggle more than 20 raw rhinoceros horns from the United States to Hong Kong in 2011 and 2012. Li wired hundreds of thousands of dollars over at least a year to a co-conspirator in the United States to fund purchases of rhinoceros horns. Li’s co-conspirator smuggled the rhino horns in porcelain vases and mailed them to Hong Kong and China to a person other than Li, in an effort to evade detection by U.S. officials. Li and his co-conspirator bought many of the horns in New Jersey from other members of the conspiracy. Li was arrested in January on charges previously filed in New Jersey.
Li also was indicted on Feb. 12, 2013, in Miami on wildlife trafficking and smuggling charges. According to court records and government statements made in court, shortly after arriving in Florida in January 2013 for the Original Miami Beach Antique Show, Li purchased two endangered black rhinoceros horns from an undercover U.S. Fish & Wildlife Service agent in a Miami Beach hotel room for $59,000. Li asked if the undercover officer could procure additional rhinoceros horns and mail them to his company in Hong Kong.
Also arrested on a related criminal complaint filed in Miami was Shusen Wei, a Chinese business executive, who also was attending the antique show and sharing a hotel room with Li. According to documents filed in court in Miami, Wei was interviewed by agents after Li’s arrest and admitted to knowing about Li’s smuggling activities and to purchasing rhinoceros carvings from Li that apparently had been purchased in and smuggled from the United States. After being served with a grand jury subpoena to appear in New Jersey, Wei left Miami for New York en route to China. Prior to leaving Miami, Wei allegedly asked an undercover informant to invite a FWS special agent out to dinner in Miami and offer her money to assist Li. After a series of recorded phone calls and text messages, Wei was arrested as he attempted to board a flight bound for China at JFK International Airport in New York on Saturday, Feb. 3, 2013, on charges of bribing a federal official. According to documents filed in court, Wei proposed that the undercover informant offer the agent as much as $10,000.
Qing Wang is scheduled to appear in court today to face charges in a criminal complaint in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li in Hong Kong. According to documents unsealed today, Wang was one of several that purchased items in the United States for Li. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups . Drinking from such a cup was believed to bring good health and such carvings are highly prized by collectors. Wang is alleged to have been smuggling rhinoceros horn cups as well as ivory carvings to Li in Hong Kong.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
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 more than 175 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. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing multi-agency effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation resulting in the charges announced today has been conducted by the Special Investigations Unit of the FWS Office of Law Enforcement, with assistance from the Department of Homeland Security. The Li case is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey by Assistant U.S. Attorney Kathleen O’Leary. The Wei case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald in the Southern District of Florida. The Wang case is being prosecuted by Assistant U.S. Attorney Janis Echenberg in the U.S. Attorney’s Office of the Southern District of New York. Senior Trial Attorney Richard A. Udell of the Environmental Crimes Section of the U.S. Department of Justice is assisting in and coordinating all of the prosecutions. Additional support has been provided by the U.S. Attorney’s Office in the Eastern District of New York.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Members of Rhino Smuggling Ring Arrested and ChargedRead the Press Release
Chinese Business Executive Arrested After Allegedly Offering Bribe
WASHINGTON – Three people have been charged this week in Newark, Miami and New York City with wildlife smuggling and related charges for their alleged roles in an international rhino horn smuggling ring, the Department of Justice announced today. The arrests and charges are the result of “Operation Crash,” a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
A federal grand jury in Newark, N.J., indicted Zhifei Li for international smuggling of rhinoceros horns, U.S. Attorney for the District of New Jersey Paul J. Fishman said. Li was also indicted by a federal grand jury in Miami on the same charge. Shusen Wei, a 44-year old Chinese business executive and an associate of Li, has also been charged with offering to bribe a federal agent in the Li case. Qing Wang was charged today in a related criminal complaint in federal court in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li via Hong Kong.
According to the indictment filed in Newark:
Li, a 28 year-old Chinese national, conspired to smuggle more than 20 raw rhinoceros horns from the United States to Hong Kong in 2011 and 2012. Li wired hundreds of thousands of dollars over at least a year to a co-conspirator in the United States to fund purchases of rhinoceros horns. Li’s co-conspirator smuggled the rhino horns in porcelain vases and mailed them to Hong Kong and China to a person other than Li, in an effort to evade detection by U.S. officials. Li and his co-conspirator bought many of the horns in New Jersey from other members of the conspiracy. Li was arrested in January on charges previously filed in New Jersey.
Li also was indicted on Feb. 12, 2013, in Miami on wildlife trafficking and smuggling charges. According to court records and government statements made in court, shortly after arriving in Florida in January 2013 for the Original Miami Beach Antique Show, Li purchased two endangered black rhinoceros horns from an undercover U.S. Fish & Wildlife Service agent in a Miami Beach hotel room for $59,000. Li asked if the undercover officer could procure additional rhinoceros horns and mail them to his company in Hong Kong.Also arrested on a related criminal complaint filed in Miami was Shusen Wei, a Chinese business executive, who also was attending the antique show and sharing a hotel room with Li. According to documents filed in court in Miami, Wei was interviewed by agents after Li’s arrest and admitted to knowing about Li’s smuggling activities and to purchasing rhinoceros carvings from Li that apparently had been purchased in and smuggled from the United States. After being served with a grand jury subpoena to appear in New Jersey, Wei left Miami for New York en route to China. Prior to leaving Miami, Wei allegedly asked an undercover informant to invite a FWS special agent out to dinner in Miami and offer her money to assist Li. After a series of recorded phone calls and text messages, Wei was arrested as he attempted to board a flight bound for China at JFK International Airport in New York on Saturday, Feb. 3, 2013, on charges of bribing a federal official. According to documents filed in court, Wei proposed that the undercover informant offer the agent as much as $10,000.
Qing Wang is scheduled to appear in court today to face charges in a criminal complaint in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to Li in Hong Kong. According to documents unsealed today, Wang was one of several that purchased items in the United States for Li. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups . Drinking from such a cup was believed to bring good health and such carvings are highly prized by collectors. Wang is alleged to have been smuggling rhinoceros horn cups as well as ivory carvings to Li in Hong Kong.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
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 more than 175 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. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing multi-agency effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation resulting in the charges announced today has been conducted by the Special Investigations Unit of the FWS Office of Law Enforcement, with assistance from the Department of Homeland Security.The Li case is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey by Assistant U.S. Attorney Kathleen O’Leary. The Wei case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald in the Southern District of Florida. The Wang case is being prosecuted by Assistant U.S. Attorney Janis Echenberg in the U.S. Attorney’s Office of the Southern District of New York. Senior Trial Attorney Richard A. Udell of the Environmental Crimes Section of the U.S. Department of Justice is assisting in and coordinating all of the prosecutions. Additional support has been provided by the U.S. Attorney’s Office in the Eastern District of New York.
13-078Li Indictment
Members of Rhino Smuggling Ring Arrested and ChargedRead the Press Release
WASHINGTON – Three people have been charged this week in Newark, Miami and New York City with wildlife smuggling and related charges for their alleged roles in an international rhino horn smuggling ring, the Department of Justice announced today. The arrests and charges are the result of “Operation Crash”, a nationwide effort led by the U.S. Fish & Wildlife Service (FWS) and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
Federal grand juries in Newark, N.J., and Miami have indicted ZHIFEI LI for international smuggling of rhinoceros horns. SHUSEN WEI, a 44 year old Chinese business executive and an associate of LI, has also been charged with offering to bribe a federal agent in the LI case. QING WANG was charged today in a related criminal complaint in federal court in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to LI via Hong Kong.
According to the indictment filed in Newark on Feb. 11, 2013, LI, a 28 year-old Chinese national, conspired to smuggle more than 20 raw rhinoceros horns from the United States to Hong Kong in 2011 and 2012. LI wired hundreds of thousands of dollars over at least a year to a co-conspirator in the United States to fund purchases of rhinoceros horns. LI’s co-conspirator smuggled the rhino horns in porcelain vases and mailed them to Hong Kong and China to a person other than LI, in an effort to evade detection by U.S. officials. LI and his co-conspirator bought many of the horns in New Jersey from other members of the conspiracy. LI was arrested in January on charges previously filed in New Jersey.
LI also was indicted on Feb. 12, 2013, in Miami on wildlife trafficking and smuggling charges. According to court records and government statements made in court, shortly after arriving in Florida in January 2013 for the Original Miami Beach Antique Show, LI purchased two endangered black rhinoceros horns from an undercover U.S. Fish & Wildlife Service agent in a Miami Beach hotel room for $59,000. LI asked if the undercover officer could procure additional rhinoceros horns and mail them to his company in Hong Kong.
Also arrested on a related criminal complaint filed in Miami was SHUSEN WEI, a Chinese business executive, who also was attending the antique show and sharing a hotel room with LI. According to documents filed in court in Miami, WEI was interviewed by agents after LI’s arrest and admitted to knowing about LI’s smuggling activities and to purchasing rhinoceros carvings from LI that apparently had been purchased in and smuggled from the United States. After being served with a grand jury subpoena to appear in New Jersey, WEI left Miami for New York en route to China. Prior to leaving Miami, WEI allegedly asked an undercover informant to invite a FWS special agent out to dinner in Miami and offer her money to assist LI. After a series of recorded phone calls and text messages, WEI was arrested as he attempted to board a flight bound for China at JFK International Airport in New York on Saturday, Feb. 3, 2013, on charges of bribing a federal official. According to documents filed in court, WEI proposed that the undercover informant offer the agent as much as $10,000.
QING WANG is scheduled to appear in court today to face charges in a criminal complaint in the Southern District of New York for his role in smuggling libation cups carved from rhinoceros horns from New York to LI in Hong Kong. According to documents unsealed today, WANG was one of several that purchased items in the United States for LI. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups . Drinking from such a cup was believed to bring good health and such carvings are highly prized by collectors. WANG is alleged to have been smuggling rhinoceros horn cups as well as ivory carvings to LI in Hong Kong.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
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 more than 175 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. As a result, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
Operation Crash (named for the term used to describe a herd of rhinoceros) is an ongoing multi-agency effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation resulting in the charges announced today has been conducted by the Special Investigations Unit of the FWS Office of Law Enforcement, with assistance from the Department of Homeland Security. The LI case is being prosecuted by the U.S. Attorney’s Office of the District of New Jersey by Assistant U.S. Attorney Kathleen O’Leary. The WEI case is being prosecuted by Assistant U.S. Attorney Tom Watts-FitzGerald in the Southern District of Florida. The WANG case is being prosecuted by Assistant U.S. Attorney Janis Echenberg in the U.S. Attorney’s Office of the Southern District of New York. Senior Trial Attorney Richard A. Udell of the Environmental Crimes Section of the U.S. Department of Justice is assisting in and coordinating all of the prosecutions. Additional support has been provided by the U.S. Attorney’s Office in the Eastern District of New York.
Massachusetts Man Sentenced to 10 Years for Cocaine ConspiracyRead the Press Release
CONCORD, NH – Jose M. Reyes, 53, of Boston, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 10 years in federal prison and 4 years of supervised release after pleading guilty to participating in a cocaine distribution conspiracy and three counts of selling cocaine in the Manchester area, announced United States Attorney John P. Kacavas.
Reyes was categorized as a career offender under the advisory United States Sentencing Guidelines based on prior convictions for drug trafficking. Career offenders are subject to enhanced penalties under the sentencing guidelines.
The case was investigated by the Manchester Police Department and prosecuted by First Assistant United States Attorney Don Feith.
Maryland Woman Pleads Guilty to Recruiting Teen for Sex Trafficking RingRead the Press Release
ALEXANDRIA, Va. – Yanira del Carmen Guerrero Andrade, aka Yadira or Litsy, 28, an illegal alien from El Salvador formerly of Adelphi, Md., pleaded guilty today to recruiting a 15-year-old runaway to engage in commercial sex for a prostitution ring.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; Virginia Attorney General Kenneth Cuccinelli II; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
“Ms. Guerrero Andrade’s actions show just how vile the world of human trafficking is – right here in our community,” said U.S. Attorney MacBride. “She lured a 15-year-old girl into her boyfriend’s commercial sex trade business so she could sell her off time and time again for profit. Many people think human trafficking is a man’s business – but the recruiters are often women, and we hold them accountable.”
“This case demonstrates that human trafficking knows no boundaries of sex, age, or ethnicity -- on either side of the crime,” said Attorney General Cuccinelli. “Ms. Guerrero Andrade exploited a 15-year-old girl for her own profit. Tragedies like this are why we continue to investigate and prosecute the crime of human trafficking to the fullest extent of the law.”
“HSI will continue to thwart those who prey on teenage victims for their own greed”, said Special Agent in Charge Torres. “We cannot allow anyone to traffic vulnerable victims and think they can get away with this. We will continue to diligently work with our law enforcement partners to combat sex trafficking in our community.”
Guerrero Andrade pled guilty to child sex trafficking, which carries a mandatory minimum of 10 years and a maximum of life in prison. Sentencing is scheduled for May 10, 2013.
According a statement of facts filed with her plea agreement, Guerrero Andrade admitted that she met a 15-year-old runaway in January 2009 and encouraged her to work as a prostitute for an organization run by Julio Cesar Revolorio Ramos, whom Guerrero Andrade was dating. After the victim spoke to Revolorio Ramos by phone, Guerrero Andrade introduced the victim to him and the two of them transported the victim from Maryland into Virginia to work as a prostitute, even though they knew the victim was under 18 years of age.
On the first day the victim was trafficked, she had sexual relations with approximately 17 customers, and on the third day she had sexual relations with 25 customers. In June 2010, Guerrero Andrade invited the victim to live in the basement of the home she shared with Revolorio Ramos. One week after moving in to the home, Revolorio Ramos again prostituted the victim, and the victim paid rent with the money she received from prostitution.
Guerrero Andrade also admitted that in 2010, she provided the victim with contact information for other prostitution organizations so the victim could work for those organizations during the weeks she was not being prostituted by Revolorio Ramos.
On Feb. 8, 2013, Revolorio Ramos was sentenced to 188 months in prison for his role in sex trafficking a child.
This case was investigated by ICE HSI, with assistance from the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Maryland Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
WASHINGTON – Cornelius Magee, 36, of Silver Spring, Md., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Magee entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Amy Berman Jackson is to sentence him on April 26, 2013. Magee faces a maximum sentence of 10 years of imprisonment as well as a fine of $250,000. Under federal sentencing guidelines, he faces a likely sentencing range of 97 to 121 months in prison.
According to the government's evidence, on Oct. 24, 2012, Magee contacted a man he believed to be the father of a 12-year-old girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force.
Over the next two days, Magee engaged in online e-mail and instant message conversations with the undercover officer. During this period of time, Magee sent the undercover officer two videos of child pornography which depicted adult men engaged in sexual acts with children. Following the defendant’s arrest on Oct. 26, 2012, members of the FBI’s Child Exploitation Task Force conducted a search of Magee’s residence and found approximately 16 additional videos of child pornography on the defendant’s computer.
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 guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-051Manhattan U.S. Attorney Announces Arrest of New York City Man for $8 Million Identity Theft and International Telecommunications Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Steven G. Hughes, the Special Agent-in-Charge of the New York Office of the U.S. Secret Service, and Kenneth Siegler, the Resident Agent-in-Charge of the New York Office of the Defense Criminal Investigative Service (“DCIS”), announced today the arrest of AMADOU DIA for participating in an international telecommunications fraud scheme that used stolen identity information to activate fraudulent mobile telephone accounts and then make telephone calls to fraudulent overseas telephone numbers that charged a premium connection fee. The scheme allegedly compromised more than 1,000 identities – nearly half of them belonging to members of the U.S. military – and caused at least $8 million in losses to mobile telecommunications providers including AT&T and T-Mobile. DIA was arrested this morning in Manhattan and is expected to be presented in Manhattan federal court before United States Magistrate Judge James L. Cott later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Amadou Dia and his co-conspirators dialed for dollars - many millions of them - by stealing countless identities, including hundreds belonging to U.S. military personnel, and racking up international phone bills in their names that left telecom service providers holding the bag. Identity theft is an epidemic of global proportions and we are bound and determined to identify and prosecute those who engage in this illegal conduct.”
Special Agent-in-Charge Steven G. Hughes said: "This investigation is just one example that proves the power of agency partnerships in combating financial fraud and identity theft. This indictment and arrest should serve as a reminder to criminals that law enforcement will continue to pursue individuals engaged in stealing the identities of innocent Americans for financial gain.”
DCIS Resident Agent-in-Charge Kenneth Siegler said: "Today's arrest demonstrates the ongoing commitment of Defense Criminal Investigative Service and its partners in law enforcement to aggressively pursue these crimes and to support their prosecution to the fullest. As a team, we will continue to methodically investigate these allegations, work to ensure confidence in the system, and protect America's war fighters’ identities."
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From 2001 through January 2013, DIA participated in an identity theft and international telecommunications scheme in which he and his co-conspirators obtained stolen identification information from individuals, including names, dates of birth, and social security numbers. He would then activate fraudulent cellular service accounts in their names.
Once the accounts were activated, DIA and members of the fraud ring would create SIM cards and insert them into mobile handsets. They then called premium international telephone numbers that they acquired and controlled, presumably to generate fees for the members of the scheme. The premium numbers were either dead when dialed, or simulated a ringing sound to appear as if a call was not yet connected. The premium numbers – the equivalent of 900 numbers in the United States – charged significant connection fees of as much as $1 per minute that the international carrier then charged to U.S.-based cellular providers such as AT&T and T-Mobile. While the U.S. provider would normally bill subscribers for the calls, in this case the U.S. provider was forced to pay for the calls because the accounts were registered to identity theft victims. The international carrier provided a share of the fees to the holders of the fraudulent international premium telephone numbers, who are believed to be the members of the fraud ring.
Since 2008, approximately 3,400 fraudulent telephone accounts have been activated involving stolen identification information from more than 1,000 individual identity theft victims. According to records maintained by the U.S. Department of Defense, at least 450 or nearly half, of the identity theft victims targeted during the course of this scheme are active duty or retired United States military personnel. The scheme has caused at least $8 million dollars in losses to U.S.-based telephone providers.
DIA, 49, of Manhattan, is charged with one count of conspiracy to commit wire fraud, which carries a maximum of 20 years in prison, one count of conspiracy to commit identity theft, which carries a maximum sentence of 15 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum of two years in prison.
Mr. Bharara praised the Secret Service and DCIS for its outstanding work investigating this case. He also thanked AT&T and T-Mobile USA for their cooperation in the investigation.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Timothy T. Howard is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Dia, Amadou Arrest PR
Manchester, New Hampshire Man Sentenced on Distribution of Crack CocaineRead the Press Release
CONCORD, N.H. – Felix Urena, 29, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 5 months imprisonment and three years of supervised release, which includes 5 months of electronic monitoring, after pleading guilty to three counts of distribution of the controlled substance- crack cocaine, announced United States Attorney John P. Kacavas
In March of 2011, the FBI Safe Street Task Force conducted an investigation into the illegal sale of controlled substances within the city of Manchester. A confidential informant identified Urena as a source of supply for “crack” cocaine. On three separate occasions, Urena sold the confidential informant crack cocaine.
The case was prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Manchester Woman Sentenced for Distribution of Oxycodone and Crack CocaineRead the Press Release
CONCORD, NH –Inez Rodriguez, 43, of Manchester, was sentenced in United States District Court for the District of New Hampshire to 12 months in prison and 2 years of supervised release, for her involvement in the distribution of oxycodone and crack cocaine, announced United States Attorney John P. Kacavas.
Inez Rodriguez’s son, Felix Fernandez was a large-scale Percocet distributor. Felix Fernandez supplied defendant Inez Rodriguez, and his grandmother, Aida Marquez, a/k/a “Abuela,” with Percocet for distribution. The Percocet was distributed from various residences in Manchester, including, the residence of Felix Fernandez, the residence of Inez Rodriguez, and the residence of Aida Marquez.
The investigation was conducted by the Federal Bureau of Investigation Safe Streets Gang Task Force and the Manchester, New Hampshire, Police Department Special Investigation Unit. The arrests consisted of a joint federal, state and local effort. Members of the arrest teams included: (1) the Federal Bureau of Investigation; (2) the Manchester, New Hampshire, Police Department; (3) the United States Marshal’s Service; (4) the New Hampshire State Police; (5) the Nashua, New Hampshire, Police Department; and (6) the New Hampshire Department of Probation and Parole and prosecuted by assistant United States Attorney Terry Ollila.
The Safe Streets Gang Task Force initiative, part of the FBI's Violent Crimes and Major Offenders Program, was created to encourage coordinated crime fighting efforts among FBI field offices and our local law enforcement partners. The mission of the Safe Streets Gang Task Force is to effectively utilize task forces to investigate, locate, arrest, and prosecute subjects for serious federal and state crimes, including drug and weapons violations, armed robbery, bank robbery, kidnapping, and gang and drug-related violence.
Man Arrested on Bus Pleads Guilty in Kansas City, Kan., Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A man who was arrested on a bus pleaded guilty Thursday to robbing a bank in Kansas City, Kan., U.S. Attorney Barry Grissom said.
Jamarr Dale, 29, Kansas City, Kan., pleaded guilty to one count of bank robbery. In his plea he admitted that on Jan. 2, 2014, he robbed the Security Bank at 10840 Parallel Parkway in Kansas City, Kan. He entered the bank and gave a teller a note saying, “I need you to give me $3,000 or I’m going to start shooting.” He took the money and left the bank on foot.
Officers of the Kansas City, Kan., Police Department responded to the call and were advised the robber had boarded a city bus at a bus stop in the Wal-Mart parking lot around the corner from the bank. They found Dale sitting on the bus and arrested him.Sentencing will be set at a later date. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Grissom commended the Kansas City, Kan., Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Lynnwood Couple Sentenced for Defrauding Programs Designed to Help the NeedyRead the Press Release
A Lynnwood, Washington couple who defrauded state and federal programs designed to assist the needy were sentenced to incarceration and home confinement today for multiple counts of mail fraud and theft of government funds. IGOR MEYER, 47, was sentenced to 30 days in prison, six months of home detention and three years of supervised release. His wife, ZOYA MUSHAILOVA, 35, was also sentenced to 30 days in prison, six months of home detention and three years of supervised release. The couple had a household income of approximately $100,000 and owned their own home. However, they represented to caseworkers that MEYER was a single father of four with income of less than $12,000 per year, allowing him to collect housing and other government benefits. At sentencing U.S. District Judge Robert S. Lasnik said the fraud scheme “has a real corrosive impact on society… both in the attitude of taxpayers and in denying benefits to people who really need them.”
The couple was indicted in October 2011, and the two were convicted following a jury trial in October 2012. Evidence at trial revealed they schemed to defraud programs for the needy of more than $70,000 over three years. The couple purchased a Lynnwood condominium in MUSHAILOVA’s name and they used a real estate management company to ‘rent’ it to MEYER claiming he was a former in-law of MUSHAILOVA. MEYER applied for both food and Social Security benefits as a single father of four, claiming the family had no income. MUSHAILOVA not only owned the Lynnwood condo, she also owned a rental property in Arizona, making the family ineligible for aid. Far from being needy, the couple drove luxury cars, and took cross country and international vacations. On the day they returned from one such vacation to New York and Mount Rushmore, MEYER submitted a declaration to the housing program claiming MUSHAILOVA was his “ex-wife” and he did not know where she lived.
In asking for prison time, prosecutors noted that the average time on the waiting list for housing assistance in Snohomish County is six years. “Defendants exploited social programs intended for the poor. By fraudulently collecting housing benefits they did not need, they denied truly needy families the opportunity to obtain decent housing. They stole funds intended to provide food, cash and medical assistance to the poor. In short, defendants enriched themselves by victimizing the most vulnerable members of the community,” prosecutors wrote in their sentencing memo.
The case was investigated by the Department of Housing and Urban Development Office of Inspector General (HUD-OIG), the Social Security Administration Office of Inspector General (SSA-OIG) and the Department of Social and Health Services Office of Fraud and Accountability.
The case was prosecuted by Assistant United States Attorney Kate Vaughan and Special Assistant United States Attorney Seth Wilkinson. Mr. Wilkinson is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Lummi Tribal Member Sentenced to 14 Years in Prison for Sexually Molesting Young ChildrenRead the Press Release
A 42-year-old Whatcom County resident was sentenced today in U.S. District Court in Seattle to 14 years in prison and five years of supervised release for two counts of Aggravated Sexual Abuse, announced U.S. Attorney Jenny A. Durkan. DAVID ALLEN JAMES is a Lummi Tribal member, and the crimes occurred on Lummi Tribal land so the case was prosecuted federally. JAMES was indicted in May 2012 and pleaded guilty in October 2012. At sentencing U.S. District Judge Robert S. Lasnik said, “We have come a long way in recognizing how devastating sexual abuse is to children and how it repeats itself through generations.”
According to records filed in the case, JAMES admitted that between April 2010 and April 2012 he sexually assaulted two young children who were in his care. The children, presently ages 7 and 8, disclosed the abuse and the Lummi Police Department and the FBI investigated.
Speaking to the court JAMES said he hopes to use his time behind bars to get help to understand why he molested the children. JAMES claims that he too was molested as a child.
Judge Lasnik urged JAMES’ family to take a leadership role in bringing sexual abuse out of the shadows in their community saying it was “hurting generation after generation of children. Step up and stop this cycle of sexual abuse.”
The case was prosecuted by Assistant United States Attorney Nicholas Brown.
Logan Quinn Sandau Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on February 12, 2013, before U.S. District Judge Sam E. Haddon, LOGAN QUINN SANDAU, a 24-year-old resident of Poplar and an enrolled member of a federally recognized tribe, appeared for sentencing. SANDAU was sentenced to a term of:
Prison: 45 months
Special Assessment: $200
Supervised Release: 3 years
SANDAU was sentenced in connection with his guilty plea to assault with a dangerous weapon and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorneys Laura B. Weiss and Ryan G. Weldon, the government stated it would have proved at trial the following:
On June 9, 2012, SANDAU struck J.W.S. with his car outside a residence on the Fort Peck Indian Reservation. The victim suffered multiple leg fractures, a torn ACL and underwent orthopedic and skin grafting procedures.
The victim was with his brother the day of the offense. They arrived at their cousin's house. Words were exchanged between SANDAU and the victim, resulting in SANDAU threatening to kill the victim. The victim then began punching SANDAU. SANDAU fell, then jumped up and ran to the driver's side of his vehicle. He hopped in and accelerated around the house. The victim did not chase him. SANDAU began driving down the alley toward the victim, who was standing near the house. SANDAU first slowed down when he approached, then suddenly hit the gas and struck the victim, pinning him against the house. Several eye witnesses saw this event transpire and identified SANDAU as the driver.
The victim suffered multiple injuries, including several leg fractures, a torn ACL, cut tendons requiring surgery, and skin grafts.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SANDAU will likely serve all of the time imposed by the court. In the federal system, SANDAU 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 a cooperative effort between the Federal Bureau of Investigation, the Fort Peck Tribes Criminal Investigation Division, and the Poplar Police Department.
Las Vegas Man Indicted for Felony Bank LarcenyRead the Press Release
Allegedly Stole Three ATM Machines in Idaho
BOISE – Clarence Edward Lancaster, 57, of Las Vegas, Nevada, was indicted yesterday by a federal grand jury in Boise on two counts of felony bank larceny, U.S. Attorney Wendy J. Olson announced. An arraignment date has not yet been set.
The indictment alleges that Lancaster stole three automatic teller machines (ATMs) from two college campuses in Idaho. Specifically, Lancaster allegedly took an ATM machine from the College of Southern Idaho in Twin Falls, Idaho, and stole $39,760 from the machine. The indictment also alleges that Lancaster took two ATMs from Idaho State University in Pocatello, Idaho, and stole a total of $9,000 from those machines.
If convicted, Lancaster faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
The case is being investigated by the Federal Bureau of Investigation, Boise Police Department, Pocatello Police Department, and Twin Falls Police Department.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
Insurance Agent and Farmer Sentenced in Multi-Million Dollar Crop FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced an insurance agent and a farmer for their parts in a widespread tobacco crop fraud. WILLIAM LARRY ROGERS, 69, an insurance agent, was sentenced to a total of 108 months imprisonment followed by 3 years supervised release. ROGERS was also ordered to pay restitution in the amount of $8,381,378.
RICHARD ENOCH, 68, a farmer who filed false claims in 2006 and 2008, received 1 day imprisonment followed by 5 years supervised release and 6 months house arrest. ENOCH was also ordered to pay restitution in the amount of $58,672.00 and a fine in the amount of $5,000.
Both defendants are from Mebane, North Carolina.
U.S. Attorney Walker stated, As an insurance agent, Rogers was a gatekeeper to ensure honest reporting to the federal government and private insurance companies. Instead, Rogers abused his position of trust for personal enrichment and for the benefit of his insureds. Our office continues to aggressively investigate federal crop insurance fraud to protect the integrity of the United States Department of Agriculture programs and safeguard the taxpayer’s monies.”
Criminal Informations were filed on September 4, 2012, and September 27, 2012, charging ROGERS and ENOCH, respectively. On October 29, 2012, both defendants pled guilty to making false statements to the Federal Crop Insurance Corporation and aiding and abetting the same, all in violation of Title 18, United States Code, Sections 1014 and 2. Additionally, ROGERS pled guilty to conspiring to make false statements, to make material false statements, to commit mail and wire fraud, and to obstruction of justice, all in violation of Title 18, United States Code, Section, 371.
According to the Criminal Information and information presented in open court, ENOCH was a tobacco farmer in Alamance County. ENOCH’s insurance agent was ROGERS. ROGERS owned and operated W.L. Rogers Farm, LLC, and also worked as an insurance agent with Triangle Insurance Group, Inc. As an insurance agent, ROGERS sold, among other things, multi-peril crop insurance and private crop-hail policies for various crops including tobacco. As a result of his agency relationship with insurance companies servicing federal crop insurance policies, ROGERS was required to submit annual conflict of interest forms.
From September 2005 through September 2011, ROGERS conspired with others to commit fraud upon the federal crop insurance program and private crop hail programs, and to obstruct the federal investigation of the fraud. It was the purpose of the conspiracy to profit through the filing of false, ficitious, and fraudulent federal crop insurance claims and private crop hail claims, the sale of unreported tobacco, and to hide the criminal procceds through payments in nominee names.
ROGERS, on behalf of W.L. Rogers Farms, LLC, entered into a contract with Phillip Morris for the sale of tobacco each year from 2005 through 2011. ROGERS thereafter would take tobacco production from co-conspiring farmers and sell that tobacco on the W.L. Rogers Farms, LLC contract. As a result, the farmers were able to hide some or all of their tobacco production. Thereafter, the farmers, with the knowledge and assistance of ROGERS, filed false crop insurance claims.
Additionally, ROGERS helped his farmers pay bribes to loss adjusters who, in turn, inflated the extent of damage to tobacco crops. Loss adjusters submitted the inflated claims to the insurance companies and farmers received monies on false claims.
One such farmer was RICHARD ENOCH. In 2006, and then again in 2008, ENOCH sold tobacco through ROGERS and thereafter failed to disclose such tobacco in production reports in connection with his claims for indemnity payments. As a result of his false claims, ENOCH obtained $58,672 in indemnity payments to which he was not entitled. On March 23, 2011, ENOCH lied to federal law enforcement officers and denied selling hidden tobacco through ROGERS.
In addition to helping farmers commit federal crop insurance fraud, ROGERS lied on conflict of interest forms. Annually from October 2005, through August 2010, ROGERS denied and failed to disclose business relationships with his insureds, including that he was, among other things, (1) buying and selling tobacco with and through his insureds; (2) selling gas and fertilizer to his insureds; (3) loaning equipment to his insureds; and (4) employing an insured as a contract employee.
During the criminal investigation, ROGERS told at least one of his insureds to lie to federal investigators. Other conspiring farmers also provided false and misleading information to law enforcement officers.
As a result of the offense conduct, ROGERS caused to be paid a total of $7,359,197 worth of federal crop insurance indemnity payments to his insureds, and a total of $1,022,181 worth of crop hail indemnity payments to his insureds.
Kaye Citizen-Wilcox, Special Agent in Charge of the U.S. Department of Agriculture-Office of Inspector General added, “The United States Department of Agriculture, Risk Management Agency (RMA), through its private partnerships serve a vital role in serving the needs of farmers following a disaster. Fraudulent activity undermines this program and misdirects taxpayer funds from the puposes they were intended. It is the mission of the United States Department of Agriculture, Office of Inspector General-Investigations to investigate allegations of waste, fraud and abuse in USDA programs. We would like to thank United States Attorney Thomas G. Walker and Assistant United States Attorney Banumathi Rangarajan for aggressively prosecuting perpetrators of fraud in USDA programs.”
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Indiana Man Indicted on Charges of Sexually Exploiting Kansas GirlRead the Press Release
KANSAS CITY, KAN. – An Indiana man has been indicted on charges of using the Internet to sexually exploit a minor girl in Douglas County, Kan., U.S. Attorney Barry Grissom said today.
Brett J. Williamson, 35, Ft. Wayne, Ind., is charged with three counts of producing child pornography and three counts of enticing a minor to engage in an unlawful sexual activity. The indictment alleges that in February and April 2012 Williamson enticed the girl to send him photos of herself engaged in sexual activities.
Williamson is being held in the Douglas County Jail.
If convicted, he faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000 on each count of producing child pornography; and a penalty of not less than 10 years and not more than life and a fine up to $250,000 on each count of enticing a minor. The Lawrence Police Department and the FBI investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
OTHER INDICTMENTS
Edward Davis, 30, Kansas City, Mo., is charged with one count of armed bank robbery. The indictment alleges that on July 13, 2012, Davis used a handgun to rob the Bank Midwest, 3500 Rainbow Blvd., in Kansas City, Kan.
If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Lola Cherrolene Spurlin, 30, Lenox, Ga., and Eliseo Ortiz-Pinacho, 35, a citizen of Mexico, are charged with knowingly transporting six aliens unlawfully within the United States by automobile. Co-defendant Jose Mario Esquit-Ordon, 22, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. The crimes are alleged to have occurred Feb. 7, 2013, in Allen County, Kan.
Upon conviction, the crimes carry the following penalties: Knowingly transporting aliens unlawfully in the United States: A maximum penalty of five years in federal prison without parole and a fine up to $250,000.
Unlawfully re-entering the United States after being deported: A maximum penalty of two years in federal prison without parole and a fine up to $250,000.Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Ashley Davis, 27, Kansas City, Kan., is charged with one count of concealing Daniel Bryant from arrest. The crime is alleged to have occurred Jan. 11, 2013, in Kansas City, Kan.
If convicted, she faces a maximum penalty of five years in federal prison and a fine up to $250,000. The FBI and the Career Criminal Squad of the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Dion M. Jones, 21, Kansas City, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Feb. 3, 2013, in Lawrence, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Lawrence Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Earl Watson, 29, an inmate at Leavenworth Penitentiary, is charged with one count of possession with intent to distribute marijuana and one count of possession of marijuana, which is a prohibited object in the prison. The crimes are alleged to have occurred March 23, 2012, in the prison.
If convicted, he faces a maximum penalty of five years and a fine up to $250,000 on the charge of possession with intent to distribute; and a maximum penalty of five years and fine up to $250,000 on the other charge. The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Arturo Zamudio-Nava, 28, a citizen of Mexico who has been living in Olathe, Kan., is charged with unlawfully re-entering the United States after being deported. He was found July 16, 2012, in Johnson County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Department of Homeland Security investigated. Assistant U.S. Attorney David Smith is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
ID Thief Pleads Guilty to Defrauding Area BanksRead the Press Release
PITTSBURGH, Pa.- A resident of Allegheny County pleaded guilty in federal court to charges of bank fraud and identity theft, United States Attorney David J. Hickton announced today.
Anthony Jose Marchionno, 29, of Pittsburgh, Pa., pleaded guilty on Wednesday to nine counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Marchionno used stolen identities of account holders at Citizens Bank, and other western Pennsylvania banks, to produce counterfeit checks or to make cash withdrawals at banks.
Judge Schwab scheduled sentencing for June 12, 2013. The law provides for a total sentence of 225 years in prison, a fine of $2,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
U.S. Attorney Hickton commended Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Anthony Jose Marchionno. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Henderson, Kentucky Man Charged in Multiple Bank RobberiesRead the Press Release
BOWLING GREEN, KY – A federal grand jury meeting in Bowling Green, Kentucky has charged a Henderson, Kentucky man with six counts of bank robbery, today announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the federal indictment, James Allen Morris, age 54, by force, violence, and intimidation robbed six banks, whose deposits were then insured by the Federal Deposit Insurance Corporation, located in Henderson County, Kentucky, between July 23, 2010 and January 17, 2013.
Specifically, Morris is charged with bank robbery on about January 17, 2013 at Green River Credit Union, 902 Second Street, Henderson, Kentucky; on or about August 22, 2012, Independence Bank, 2610 Zion road, Henderson, Kentucky; on or about August 22, 2012, Bank of Henderson, 2003 Stapp Drive, Henderson, Kentucky; on or about July 11, 2012, Green River Credit Union, 902 Second Street, Henderson, Kentucky; on or about May 24, 2011, U.S. Bank, 501 Barrett Boulevard, Henderson, Kentucky; and on or about July 23, 2010, Integra Bank, 9720 U.S. HWY 41 N., Poole, Kentucky.
If convicted at trial, Morris faces no more than 20 years in prison for each count for a combined maximum of 120 years, a $250,000 fine for each count for a combined maximum of $1,500,000, and supervised release for a period of three years.
Morris is scheduled for an initial appearance on the charges before Magistrate Judge Brent Brennenstuhl, in United States District Court in Owensboro, Kentucky, on February 28, 2013.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Heather Louise Manyen 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 Chief U.S. District Judge Richard F. Cebull, HEATHER LOUISE MANYEN, a 32-year-old resident of Laurel, pled guilty to conspiracy to possess methamphetamine with intent to distribute and distribute. Sentencing has been set for May 16, 2013. She is currently released on special conditions.
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., D.M. and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M. and A.H., had several distributors that sold the methamphetamine for the organization. One of the distributors was Julie Rozell. Rozell admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was HEATHER MANYEN.
During the investigation law enforcement learned that HEATHER MANYEN was a distributor of methamphetamine for Rozell from approximately March 2011, and continuing thereafter until late January 2012. HEATHER MANYEN worked with Frank Manyen to distribute the methamphetamine obtained from Rozell. HEATHER MANYEN and Frank Manyen together distributed the methamphetamine they obtained from Rozell in the greater Billings area. HEATHER MANYEN and Frank Manyen obtained approximately 700 grams of methamphetamine from Rozell, which they in turn distributed to their own customers.
Frank Manyen and Julie Rozell pled guilty to federal charges and are awaiting sentencing.
MANYEN faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 5 years supervised release.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.
Hartford Man Involved in Crack Distribution Ring Sentenced to Four Years in Federal PrisonRead the Press Release
February 13, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that EARL DAVIS, 54, of Hartford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 48 months of imprisonment, followed by one year of supervised release, for his role in a Hartford crack cocaine distribution ring.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, Dana Adams and others supplied crack cocaine to numerous street-level dealers, including gang members, who primarily distributed the drug in the area of Enfield Street in Hartford. Adams utilized lower-level dealers, including DAVIS, to bring customers to him in exchange for money or a quantity of crack cocaine. DAVIS would also provide information to Adams regarding police activity in the area. DAVIS was regularly intercepted on court-authorized wiretaps discussing drug trafficking activity and facilitating the distribution of crack cocaine.
DAVIS has been detained since his arrest on May 8, 2012. On November 28, 2012, he pleaded guilty to one count of using a telephone to facilitate a drug trafficking felony.
On January 31, 2013, Adams was sentenced to 156 months of imprisonment for distributing crack cocaine and for violating the conditions of his supervised release from a previous federal conviction.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Harnett County Man Sentenced to 114 Months Imprisonment for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Monday, February 4, 2013, TERRY ALSTON, 46, of Harnett County, North Carolina, was sentenced by Senior United States District Judge W. Earl Britt to 114 months imprisonment for his role in a drug trafficking conspiracy. Specifically, ALSTON was sentenced for conspiring to distribute, and possessing with the intent to distribute, 280 grams or more of crack cocaine and 5 kilograms of powder cocaine, in violation of Title 21, United States Code, Section 846.
The investigation revealed that from at least January 1999 to April 2009, ALSTON agreed with other known individuals to possess and distribute large amounts of controlled substances in Harnett County and the southern Wake County area of North Carolina.
The investigation of this case was conducted by the Fuquay-Varina Police Department, the Harnett County Sheriff’s Office, the Holly Springs Police Department, the North Carolina State Bureau of Investigation, and the Drug Enforcement Administration.
The investigation into drug trafficking in the Fuquay-Varina area, entitled “Operation Freight Train”, is ongoing.
Guilty Plea Entered by Second Contractor Charged with Paying Bribes to Director of Traffic EngineeringRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announced that Anthoneel Allen, 40, of Wellington, pled guilty today to conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, tax fraud, and Disadvantaged Business Enterprise fraud, all in violation of Title 18, United States Code, Section 371. At sentencing, the defendant faces up to five years imprisonment, three years of supervised release and a fine of up to $250,000. Sentencing has been scheduled for April 26, 2013, at 1:30 p.m.
Allen was charged, along with James Hashim, 50, of Plantation, in connection with a scheme wherein they paid bribes to Jihad El Eid, who was the Director of Traffic Engineering in the Division of Public Works in Broward County. Hashim previously pled guilty on February 1, 2013.
According to the documents filed with the court, Allen owned Southeast Underground Utilities Corp., (“SUU”), in Plantation, Florida. SUU installed, repaired and maintained street lights and traffic signals. Prior to 2005, SUU did not have any contracts with the Broward County government or any Broward County municipality. In or about 2005, Allen hired defendant Hashim to become SUU’s Vice President. Hashim worked as an estimator and helped SUU obtain government contracts. Allen admitted that beginning in 2006 through 2010, he and Hashim provided to El Eid more than $150,000 in cash; a 2003 Ford Taurus; and a job at SUU for El Eid’s relative, Wael El Eid, in order to curry favor with Jihad El Eid. In return, El Eid helped SUU obtain work on significant multi-million dollar projects initiated by the Broward County Traffic Engineering Division, including: the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
Furthermore, according to court documents, Allen also admitted that he and Hashim conspired to evade paying federal income and employment taxes on bonuses and payments made by SUU related to the purchase of Hashim’s $1.25 million house in Plantation. Allen also admitted that he filed a fraudulent application on behalf of SUU to have SUU certified as a Disadvantaged Business Enterprise (DBE), which resulted in SUU being awarded -- directly or as a subcontractor -- approximately 25 contracts from Broward County and other state, county and local governments in Florida based on its fraudulently obtained DBE status, which entitled SUU to receive in excess of $10,000,000 in government contracts.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guatemalan Citizen Charged with Illegal ReentryRead the Press Release
Deiby Ovalle-Pinto, 29, of Guatemala, was charged today by Indictment with illegal re-entry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about February 6, 2013, Ovalle-Pinto, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about June 19, 2003.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, not more than three years supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Enforcement and Removal Operations of Immigration and Customs Enforcement of the United States Department of Homeland Security and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Georgia Man Charged with Firearms TraffickingRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Liddon Young, 32, of Atlanta, Georgia, was arrested and charged by criminal complaint with conspiracy to deal in firearms without a license, dealing in firearms without a license, transporting a firearm in interstate commerce with the intent to commit a felony, and traveling from one state to another to acquire a firearm in furtherance of dealing in firearms without a license. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000.00, or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the complaint, Young illegally sold more than 45 handguns and hundreds of rounds of ammunition to a Rochester-based associate over the last four months. The gun sales took place in Rochester and the Atlanta, Georgia area. After purchasing the handguns from Young, the associate sold the guns to various others in the Rochester area.
On February 8, 2013, law enforcement officers arrested Young in a Chevrolet Tahoe and recovered a .380 caliber handgun, which was loaded with 10 rounds of ammunition, and a gun magazine containing an additional seven rounds of ammunition.During this investigation, federal agents and local officers recovered a total of 14 handguns, more than 800 rounds of ammunition, and a bullet proof vest.
“This case demonstrates the commitment of our law enforcement partners to prosecute those who illegally bring guns into our community,” said U.S. Attorney Hochul.
The criminal complaint is the culmination of an investigation on the part of the Firearms Suppression Unit, composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Special Agent in Charge Joseph A. Anarumo, and the Rochester Police Department, under the direction of Chief James M. Sheppard.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Georgia Man Admits Taking Bribes to Allow $1 Million Theft<br /> of Government Equipment from Marine BaseRead the Press Release
A retired employee of the Marine Corps Logistics Base Albany (MCLB-Albany) pleaded guilty today to receiving bribes in exchange for allowing heavy equipment to be stolen from the base for resale, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Shelby C. Janes, 67, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Janes, the former civilian inventory control manager of the distribution management center at MCLB-Albany, admitted to participating in a scheme in which he assisted an individual, referred to in court documents as “Person A,” in stealing heavy equipment – such as cranes, bulldozers and front-end loaders – from the base. Person A, the owner of a commercial trucking business that was routinely contracted by the MCLB’s Defense Logistics Agency, then arranged to sell the equipment to private purchasers.
According to court documents, while working at the distribution management center, Janes was responsible for supervising a number of employees in the inventorying of obsolete equipment returning from the Fleet Marine Corps. This equipment was sent to MCLB-Albany for one of two purposes: to be demilitarized and disposed of through eventual sale or destruction, or to be rehabilitated, repaired and redistributed to the Fleet Marine Corps. To accomplish the theft scheme, Janes and one of his employees, referred to in court documents as “Public Official A,” facilitated the theft of the equipment, including by letting the equipment be driven off the base. Janes admitted that to facilitate the unlawful removal of the equipment, he typically prepared a false DD Form 1348 authorizing the Defense Logistics Agency to release the equipment to Person A, and that the equipment was then sold to private purchasers for tens of thousands of dollars.
Janes also admitted that he received payments from Person A after the sale of the stolen equipment, often delivered to him by Public Official A on behalf of Person A in the form of a check or cash, totaling approximately $98,500 during the approximately 15-month scheme. Janes admitted that the total loss to the Department of Defense from the theft of government equipment was approximately $1,075,000.
At sentencing, Janes faces a maximum potential penalty of 15 years in prison and a fine of twice the gain or loss from the offense. As part of his plea agreement with the United States, Janes agreed to forfeit the bribe proceeds he received from the scheme, as well as to pay full restitution to the Department of Defense. A sentencing date has not yet been set.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Georgia Man Admits Taking Bribes to Allow $1 Million Theft of Government Equipment from Marine BaseRead the Press Release
WASHINGTON – A retired employee of the Marine Corps Logistics Base Albany (MCLB-Albany) pleaded guilty today to receiving bribes in exchange for allowing heavy equipment to be stolen from the base for resale, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.Shelby C. Janes, 67, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Janes, the former civilian inventory control manager of the distribution management center at MCLB-Albany, admitted to participating in a scheme in which he assisted an individual, referred to in court documents as “Person A,” in stealing heavy equipment – such as cranes, bulldozers and front-end loaders – from the base. Person A, the owner of a commercial trucking business that was routinely contracted by the MCLB’s Defense Logistics Agency, then arranged to sell the equipment to private purchasers.
According to court documents, while working at the distribution management center, Janes was responsible for supervising a number of employees in the inventorying of obsolete equipment returning from the Fleet Marine Corps. This equipment was sent to MCLB-Albany for one of two purposes: to be demilitarized and disposed of through eventual sale or destruction, or to be rehabilitated, repaired and redistributed to the Fleet Marine Corps. To accomplish the theft scheme, Janes and one of his employees, referred to in court documents as “Public Official A,” facilitated the theft of the equipment, including by letting the equipment be driven off the base. Janes admitted that to facilitate the unlawful removal of the equipment, he typically prepared a false DD Form 1348 authorizing the Defense Logistics Agency to release the equipment to Person A, and that the equipment was then sold to private purchasers for tens of thousands of dollars.
Janes also admitted that he received payments from Person A after the sale of the stolen equipment, often delivered to him by Public Official A on behalf of Person A in the form of a check or cash, totaling approximately $98,500 during the approximately 15-month scheme. Janes admitted that the total loss to the Department of Defense from the theft of government equipment was approximately $1,075,000.
At sentencing, Janes faces a maximum potential penalty of 15 years in prison and a fine of twice the gain or loss from the offense. As part of his plea agreement with the United States, Janes agreed to forfeit the bribe proceeds he received from the scheme, as well as to pay full restitution to the Department of Defense. A sentencing date has not yet been set.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
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Four Men Initially Arrested and Charged in Worcester County Now Facing Federal ChargesRead the Press Release
Baltimore, Maryland - Federal criminal complaints have been filed charging four men, initially arrested and charged in Worcester County, with gun and drug violations. Tony Lamont Mills, age 32, of Berlin, Maryland, has been charged with possession with intent to distribute heroin and possession of a firearm by a felon. The second criminal complaint charges Ramon M. Diamos, age 47, and Arlon J. Macatangay, age 51, both of Jersey City, New Jersey and Ricky Ibanga, age 38, of Bayonne, New Jersey, with conspiracy to distribute and possess with the intent to distribute in excess of 50 grams of crystal methamphetamine
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Worcester County State’s Attorney Beau Oglesby; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Worcester County Sheriff Reggie T. Mason, Sr.; Chief Arnold Downing of the Berlin Police Department; and Acting
Chief Kevin Kirstein of the Ocean City Police Department.
The State’s Attorney for Worcester County, Beau Oglesby said, “I applaud the combined efforts of Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department, the Berlin Police Department, ATF and HSI for their investigations in these cases. The adoption of these cases by the United States Attorney’s Office demonstrates the strength of the relationship between local and federal authorities as we work together to pursue the eradication of controlled dangerous substances from our streets and to remove the criminals who are armed with illegal firearms from our communities.”
According to the affidavit filed in support of the arrest of Diamos, Macatangay and Ibanga, the three were pulled over by Maryland State Police on Route 13, near the Virginia State line for a traffic stop. The Trooper learned that Diamos was wanted on a New Jersey warrant and he was arrested. A clear glass pipe and a small amount of methamphetamine were recovered from Diamos’ front pants pocket. During a subsequent search of the car, the Trooper discovered a manilla envelope that contained 240 grams of crystal methamphetamine, and a receipt in Macatangay’s name. Macatangay and Ibanga were then arrested and additional methamphetamine was recovered from Macatangay’s jacket pocket.
Diamos, Macatangay and Ibanga face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for conspiracy to distribute methamphetamine. Diamos, Macatangay and Ibanga had an initial appearance this afternoon in U.S. District Court in Baltimore and are detained. Ibanga is scheduled for a detention hearing on February 15, 2013. Diamos and Macatangay consented to detention.
According to Mills’ criminal complaint, on at least two occasions in August 2012, an undercover police detective conducted two hand to hand purchases of heroin from Mills, meeting Mills in his vehicle. On August 31, 2012, law enforcement executed a search warrant at Mills’ residence. Mills was discovered hiding in a bedroom closet, where officers also located a loaded .32 caliber revolver and a box of .32 caliber ammunition. During the search, officers also recovered heroin, marijuana and drug packaging material.
Mills faces a maximum sentence of 20 years in prison for possession with intent to distribute heroin and up to life in prison for being a felon in possession of a firearm. Mills also had an initial appearance today in U.S. District Court in Baltimore and is detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, HSI Baltimore, Worcester County Sheriff’s Office, the Maryland State Police, the Ocean City Police Department and the Berlin Police Department for their work in these investigations. Mr. Rosenstein thanked Assistant United States Attorneys Michael C. Hanlon and Christopher J. Romano, who are prosecuting the Mills and Diamos cases, respectively.
Four Defendants Charged with Possessing, Selling, and Passing Counterfeit U.S. CurrencyRead the Press Release
United States Attorney James L. Santelle announced today that on February 12, 2013, two indictments were returned in federal court charging four defendants with possessing, selling, and passing counterfeit U.S. currency in violation of Title 18, United States Code, Section 472. The defendants were passing and selling the counterfeit U.S. currency throughout the Eastern District of Wisconsin.
The defendants are identified as: Steven G. Luster (age: 49) and his son Stevon M. Luster (age: 20), Abraham T. Scull (age: 28), and Antonio L. Jenkins-Gates (age: 30), all of Milwaukee, WI. To date, the defendants have possessed, sold, and passed over $25,000 of counterfeit U.S. currency. The defendants, if convicted, face a maximum term of 20 years’ imprisonment, a fine of up to $250,000 and a maximum of 3 years’ supervised release.
The defendants were charged after a long-term investigation by the United States Secret Service acting in concert with numerous local law enforcement agencies throughout Southeastern Wisconsin. This case is being prosecuted by Assistant U.S. Attorneys Bridget J. Domaszek and Laura S. Kwaterski.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.Former Oklahoma Jail Superintendent and Assistant Jail Superintendent Indicted on Multiple Civil Rights OffensesRead the Press Release
A federal grand jury in Muskogee, Okla., has indicted Raymond A. Barnes, 42, and Christopher A. Brown, 31, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ) on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown is also charged with making material false statements to the FBI.
The indictment charges both Barnes and Brown with one count of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the indictment alleges that as part the conspiracy, the defendants did the following: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat to anyone; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at the MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within the MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
The indictment further charges the defendants with aiding and abetting each other in violating the rights of two different inmates when the MCJ jailers slammed and threw the inmates to the ground while they were handcuffed. The indictment alleges that these offenses resulted in bodily injury.
Brown is additionally charged with one count of making material false statements to the FBI. According to the indictment, Brown falsely claimed that during “meet and greets,” when an inmate from an out-of-county jail arrives at MCJ, the inmate is ordered out of the transport vehicle, and then is “gently placed” on the ground. The indictment alleges that this was false in that the defendant knew at the time of his statement to the FBI that during “meet and greets,” when an inmate arrived from an out-out-county jail, the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and not posing a physical threat to anyone.
Barnes and Brown face a maximum penalty of 10 years for each of the three civil rights offenses. Brown faces a maximum penalty of five years for making material false statements to the FBI.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and is being prosecuted by Fara Gold and Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Former Muskogee, Oklahoma, Detention Officer Indicted for Making False Statements to the FBIRead the Press Release
A federal grand jury in Muskogee, Okla., has indicted Dennis Frisbie Jr., 32, a former detention officer at the Muskogee County Jail (MCJ), on one count of making material false statements to the FBI.
According to the indictment, Frisbie falsely reported to the FBI that he had been shot by an unknown individual on or about July 9, 2011, and that he believed he was shot because he had previously been interviewed and cooperated with the FBI regarding an investigation into matters at the MCJ. The indictment alleges that this statement was false because Frisbie knew at the time of his statement to the FBI that he had not been shot by an unknown individual because of his previous cooperation with the FBI.
Frisbie faces a maximum penalty of five years for making material false statements to the FBI.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and is being prosecuted by Fara Gold and Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Former Hedge Fund Founder Steven Fortuna Sentenced in Manhattan Federal Court for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN FORTUNA, who co-founded the hedge fund S2 Capital LLC (“S2”), was sentenced today to two years of probation for his participation in an insider trading scheme in which he obtained and traded on material, nonpublic information (“Inside Information”) about various publicly-traded companies from employees at other hedge funds. FORTUNA pled guilty in October 2009 to three counts of conspiracy to commit securities fraud and one count of securities fraud pursuant to a cooperation agreement with the Government. He was sentenced today in Manhattan federal court by U.S. District Judge Sidney H. Stein.
According to the Information, statements made during FORTUNA’s guilty plea proceeding, and the Government’s sentencing submission in his case:
From July 2008 through March 2009, while working as a portfolio manager at a hedge fund he co-founded, FORTUNA obtained Inside Information concerning various technology companies from employees at other hedge funds for the purpose of trading on that information. The Inside Information was disclosed by company insiders in breach of their duties to their respective employers.
For example, in July and August 2008, FORTUNA obtained Inside Information concerning Akamai, Inc. (“Akamai”) from Danielle Chiesi, a portfolio manager at New Castle Partners, a hedge fund. Chiesi told FORTUNA that Akamai planned to report that its revenue guidance for the following quarter would miss expectations and that, internally, the company believed that its stock price would fall following the quarterly earnings announcement. FORTUNA executed trades based on that Inside Information, and earned approximately $2.4 million in profits for S2.
As part of the conditions of his probation, FORTUNA, 50, of Westwood, Massachusetts, was ordered to serve six months on home confinement with electronic monitoring, and 120 hours of community service during each of the years of his probation. He was also ordered to pay forfeiture in the amount of $200,000, and a $400 special assessment fee.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Antonia M. Apps is in charge of the prosecution.
Florida Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
United States Attorney Brendan V. Johnson announced that an Ormond Beach, Florida man appeared before Chief U.S. District Judge Jeffrey L. Viken on February 8, 2013 and pled guilty to Trafficking in Counterfeit Goods or Services. The maximum penalty upon conviction is 10 years' imprisonment and/or a $2,000,000 fine.
Between February 2010 and August 2011, Nir Giist, age 55, intentionally sold counterfeit goods near Rapid City, Keystone, Deadwood, Hill City, and Sturgis, South Dakota. The sale of counterfeit goods violated the trademarks held by Monster Energy, Angry Birds, Hollister, The North Face, and Ed Hardy.
The investigation was conducted by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date was set for June 10, 2013. The defendant was released on bond pending sentencing.
Fairfax Nursing Center to Pay $700,000 to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Fairfax, Va.-based skilled nursing facility Fairfax Nursing Center (FNC) and its owners have agreed to pay $700,000 to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to Medicare of false claims for non-reimbursable rehabilitation therapy services, the Justice Department announced today.
The settlement resolves claims that FNC provided excessive, medically unnecessary, or otherwise non-reimbursable physical, occupational, and speech therapy services to 37 Medicare beneficiaries serviced by FNC between January 2007 and December 2010. The United States alleged that the rehabilitation therapy services provided by FNC to these beneficiaries were not reasonable and necessary for the treatment of their condition. Specifically, the United States alleged that the therapy services were often excessive, duplicative, performed without clear goals or direction, and, in some instances, performed primarily to capture higher reimbursement rates.
“Medicare fraud takes many forms and arises in various segments of health care,” said U.S. Attorney Neil H. MacBride. “We continue to work toward recovery of money lost to overbillings to Medicare.”
“Today’s settlement is another example of the Department’s efforts to hold skilled nursing facilities accountable for the rehabilitation therapy services they deliver to some of the most vulnerable in our society,” said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Civil Division of the Department of Justice. “The provision of excessive and medically unnecessary therapy services will not be tolerated.”
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.2 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14 billion.
The allegations settled today arose from a lawsuit filed by two former FNC therapists and one former contract therapist under the qui tam, or whistleblower provisions, of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery. The whistleblowers in this case will receive, collectively, $122,500 of the recovery. The lawsuit is captioned as United States of America & Commonwealth of Virginia ex rel. Christine Ribik, Nadine Kelly, & Stephanie Beauregard v. Fairfax Nursing Center, Inc., et al., No. 1:11-cv-496 (E.D. Va.).
The case was handled by Assistant U.S. Attorneys Monika Moore and Gerard Mene of the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of Justice’s Civil Division, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Medicaid Fraud Control Unit of the Commonwealth of Virginia Attorney General’s Office. The claims settled by this agreement are allegations only; there has been no determination of liability.
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Dodge City Gang Member Pleads Guilty to Attempted MurderRead the Press Release
WICHITA, KAN. – A member of a Dodge City street gang targeted in a federal racketeering case has pleaded guilty to attempted murder, U.S. Attorney Barry Grissom said today.
Jason Najera, 29, Dodge City, Kan., pleaded guilty to one count of attempted murder in furtherance of racketeering. In his plea, Najera admitted that on Aug. 27, 2011, he used a knife to stab two men he mistakenly believed were members of a rival gang.
On that date, Najera accompanied co-defendant Humberto Ortiz when Ortiz went to a residence at 703 9th Avenue in Dodge City. Ortiz and Najera confronted some men they suspected of being members of the Surenos street gang. Ortiz was a member of Los Carnales Chingones and Najera was a member of Diablos Viejos, both of which were associated with the Nortenos street gang and considered Surenos their common enemies.
When a fight started, Najera used a knife to stab victims Gabriel Rivera and Carlos Ramirez. During the fight, both Rivera and Ramirez were stabbed, with Rivera’s injuries requiring a life-flight to a hospital in Wichita.
In his plea, Najera admitted that as a member of the Diablos Viejos he was part of an ongoing criminal conspiracy involving the Nortenos street gang whose members used murder, robbery, assault and acts of violence to protect and expand their operations.
Sentencing is set for May 6. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
In January, co-defendant Humberto Ortiz was sentenced to 46 months in federal prison.
Najera and Ortiz were among 23 defendants indicted in May who were charged under the federal RICO Act (Racketeering Influenced and Corrupt Organizations Act.) The indictment marked only the second time federal prosecutors in Kansas have filed charges under RICO and VICAR (Violent Crimes in Aid of Racketeering).
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Dentist Sentenced in Healthcare Fraud SchemeRead the Press Release
ERIE, Pa. - A resident of Sugar Land, Texas and former resident of Fairview, Pennsylvania, has been sentenced in federal court to 4 months imprisonment, 8 months home detention with electronic monitoring, three years of supervised release and ordered to make restitution to United Healthcare Community Plan of Pennsylvania in the amount of $288,528.89 on her conviction of false statements relating to health care matters, United States Attorney David J. Hickton announced today.
United States District Judge Sean J. McLaughlin imposed the sentence on Kristi Ayn Liebau, 40.
According to information presented to the court, during the period from January 2008 through March 2011, Dr. Liebau, a dentist, submitted false claims to health care benefit programs (insurance plans), billing for different procedures than she had performed, up-coding claims to more expensive services, billing for medically unnecessary procedures, billing for procedures on teeth that were not present, billing for procedures that were not performed, and billing for an exorbitant number of procedures that could not have been performed in the allotted surgery time.
Prior to imposing sentence, Judge McLaughlin commented that the sentence he imposed should have a deterrent effect on other dentists or doctors who would seek to use their professions to engage in fraud.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Liebau.
Deming Man Sentenced to Ten Years in Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Yesterday afternoon, a federal judge in Las Cruces, N.M., sentenced Derek Marcus Garcia, 35, of Deming, N.M., to ten years in prison followed by five years of supervised release for his methamphetamine trafficking conviction.
Garcia was arrested on Sept. 1, 2011, and charged in a criminal complaint after law enforcement authorities recovered approximately 195 grams of methamphetamine from him following a vehicle stop in Deming. In Jan. 2012, Garcia was indicted and charged with possession of methamphetamine with intent to distribute. Garcia pled guilty to the indictment on June 19, 2012.
Court records reflect that Garcia was stopped by a New Mexico State Police officer for a traffic violation in Deming on Sept. 1, 2011. After a U.S. Border Patrol narcotics canine detected the presence of narcotics in the driver’s seat of Garcia’s vehicle, Garcia admitted that he was in possession of narcotics and removed a bag containing approximately 195 grams of methamphetamine from his pants.
Garcia has been on conditions of release since Sept. 16, 2011. He was ordered to surrender to the U.S. Bureau of Prisons to begin serving his prison sentence in approximately 60 days.
The case was investigated by the Deming office of the Homeland Security Investigations, the New Mexico State Police and the U.S. Border Patrol. It was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Convicted Felon Gets 78 Months for Gun ChargeRead the Press Release
PHILADELPHIA - Marquan Greggs, 22, of Philadelphia, was sentenced yesterday to 78 months for a charge of possession of a firearm by a convicted felon. Greggs was arrested after a police chase on March 1, 2011, during which he threw a stolen firearm with 10 rounds of ammunition into the street in the 800 block of E. Hilton Street, Philadelphia. Greggs was on parole at the time for two drug trafficking convictions. Greggs pleaded guilty to the charge on April 24, 2012.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered a $1,000 fine, three years of supervised release, and a $100 special assessment.
This case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. It was prosecuted by Assistant United States Attorney Ewald Zittlau.
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