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7 February 2013
Serial Bank Robbery Sentenced to 45 Years in Federal PrisonRead the Press Release
A serial bank robber was sentenced today to 45 years in federal prison after having been convicted of four counts of bank robbery and one count of conspiracy to commit bank robbery, announced United States Attorney Barbara McQuade.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation.Arthur Payton, 45, was sentenced by U.S. District Judge Lawrence P. Zatkoff in Port Huron, Michigan.
In November 2012, a federal jury convicted Payton for recruiting heroin-addicted prostitutes to rob banks in Oakland and Wayne counties. After the FBI determined that Payton was responsible for the bank robberies, his co-defendant wore a hidden microphone and recorded Payton planning his next set of bank robberies in downtown Detroit. Payton stole approximately $8,000 from the four banks.
This conviction was Payton's third federal conviction. He was convicted in San Diego in the mid-1990s and in Detroit in 2005 for engaging in identical schemes to use drug-addicted prostitutes to rob banks. In 1994, Payton appeared on the Oprah Winfrey Show as a "bank robbing pimp."
“This defendant has returned to the same criminal scheme each time he has been released from prison, preying on vulnerable women at the fringes of society to rob banks,” McQuade said. “This lengthy sentence was necessary because prison is the only thing that prevents him from robbing banks.”
FBI Special Agent in Charge Foley stated, "This case is an example of the FBI's commitment to combat violent crime in the state of Michigan. We will continue to work with our law enforcement partners to stop these illegal acts and ensure dangerous criminals are arrested and prosecuted."
This case was investigated by the FBI, the Livonia Police Department, the Farmington Hills Police Department, the Farmington Police Department, and the Novi Police Department.
AUSAs Doug Salzenstein and Matthew Roth prosecuted the case for the United States.
Sentences for February 01, 2013Read the Press Release
Debbie Ann Bernard, 40, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 1, 2013, for conspiracy to possess with intent to distribute, and to distribute methamphetamine and cocaine. Bernard conspired with others to distribute 96 ounces of methamphetamine. She was arrested in Casper, Wyoming. She received 60 months of imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Branden Glenn Hatton, 32, formerly of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 1, 2013, for being a felon in possession of a firearm. Hatton was arrested in Tennessee. He received 18 months of imprisonment, to be followed two years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rosebud Woman Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota woman convicted of Sexual Abuse was sentenced on February 4, 2013 by U.S. District Judge Roberto A. Lange. Ina Crow Dog, age 48, was sentenced to 72 months in custody, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
Crow Dog was indicted by a federal grand jury on March 13, 2012, and pled guilty to the charge on November 5, 2012.
The conviction stems from an incident that took place on or about between December 1, 2010 and December 31, 2010, when Crow Dog and another individual sexually abused a victim.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Crow Dog was remanded to the custody of the U.S. Marshal.
Rosebud Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man convicted of Sexual Abuse was sentenced on February 4, 2013 by U.S. District Judge Roberto A. Lange. Anthony Fast Horse, age 53, was sentenced to 192 months in custody, 5 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
The conviction stems from an incident that took place on or about between December 1, 2010 and December 31, 2010, when Fast Horse sexually abused the victim.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Fast Horse was remanded to the custody of the U.S. Marshal.
Rosebud Man Pleads Guilty to Burglary and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that Justin Lee Gabriel, age 21, of Rosebud, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 6, 2013 and pled guilty to Third Degree Burglary and Aiding and Abetting. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
The conviction stems from an incident that took place on September 6, 2012, when Gabriel broke in to the Prairie Hills Square golf club and took U.S. currency from the business.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for May 6, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Rochester Man Sentenced for Failing to Register as a Sex offenderRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that James “Willie” Kimble, 80, of Rochester, N.Y., who was convicted of failing to register as a sex offender, was sentenced to 33 months in prison and five years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that the defendant was a Level III sex offender as a result of a conviction for a rape involving a 17 year old Rochester girl in 1981. Kimble was also previously convicted of attempted rape for a case involving a six year old Rochester girl.
In 2009, Kimble became the primary suspect in an unsolved, 1972 rape and murder case involving a blind Rochester woman. Shortly after being contacted by Rochester homicide detectives, the defendant disappeared. He was eventually located by the United States Marshal Service almost a year later living in Sarasota, Florida where he had failed to register as a sex offender. Kimble was returned to New York to stand trial for the murder and was acquitted by a Monroe County jury in March of 2011. He was taken into Federal custody thereafter and has remained in prison.
The sentencing was the culmination of an investigation on the part of the United States Marshals Service under the direction of Marshal Charles Salina and the Rochester Police Department under the direction of Chief James Sheppard.
Real Estate Developer Pleads Guilty to Fraud ChargeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced that real estate developer, Roger Stephen Clary, age 60, of Little Rock, pled guilty to mail fraud before United States District Judge J. Leon Holmes today. The remaining four counts of wire fraud were dismissed.
According to the indictment, Clary created a company called Destination Ventures which was to purchase, custom outfit and lease buses. Clary obtained a loan from Banc of America Leasing Corporation (BALC) to fund the purchase and outfitting of the buses. The loan was approved and entered into on May 8, 2008. On the following day, Clary requested that BALC distribute a portion of the loan proceeds to purchase and outfit the buses. However, on the same day, Clary directed the vendor who was to outfit the buses to redistribute the funds once the vendor received them. The vendor complied with the directives from Clary. Consequently, $1,595,000 of the loan proceeds were paid to companies in which Clary had a financial interest but which had no involvement in the purchase, custom outfitting, or leasing of the buses as intended by the loan agreement. The mail fraud count charges Clary with later falsely certifying to BALC that the buses had been custom outfitted.
Clary faces a statutory penalty of no more than 30 years incarceration and/or a fine of $1,000,000 with five years of supervised release. The sentencing date will be determined by the Court at a later date.
The investigation was conducted by the Little Rock Field Office of the Federal Bureau of Investigation. The case was prosecuted by former First Assistant United States Attorney Jane Duke and Assistant United States Attorney Angela Jegley.
Pine Ridge Man Sentenced for Domestic AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man convicted of Domestic Assault by a Habitual Offender was sentenced on January 14, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Daryl Lee Goings, age 46, was sentenced to 10 years of imprisonment, 3 years of supervised release and ordered to pay $100 to the Victim Assistance Fund.
Goings was indicted for Kidnapping and Domestic Assault by a Habitual Offender on February 22, 2012. The charges related to Goings causing substantial injury to a female during a domestic assault at Pine Ridge on September 3 or 4, 2011. He has been convicted on at least two separate prior occasions for Aggravated Assault and Assault Resulting in Serious Bodily Injury. Goings pled guilty to Domestic Assault by a Habitual Offender on September 27, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Goings was immediately turned over to the custody of the U.S. Marshal.
Pine Ridge Man Sentenced for Domestic AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man convicted of Domestic Assault by a Habitual Offender was sentenced on January 14, 2013 by Chief U.S. District Judge Jeffrey L. Viken. Daryl Lee Goings, age 46, was sentenced to 10 years of imprisonment, 3 years of supervised release and ordered to pay $100 to the Victim Assistance Fund.
Goings was indicted for Kidnapping and Domestic Assault by a Habitual Offender on February 22, 2012. The charges related to Goings causing substantial injury to a female during a domestic assault at Pine Ridge on September 3 or 4, 2011. He has been convicted on at least two separate prior occasions for Aggravated Assault and Assault Resulting in Serious Bodily Injury. Goings pled guilty to Domestic Assault by a Habitual Offender on September 27, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Goings was immediately turned over to the custody of the U.S. Marshal.
Pine Ridge Man Convicted of Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Daniel Tobacco, age 19, of Pine Ridge, South Dakota was convicted of sexual abuse following a federal jury trial in Rapid City, South Dakota. This charge carries a maximum penalty of life imprisonment and a $250,000 fine. Tobacco was indicted by a federal grand jury for sexual abuse on June 19, 2012.
The charges stem from Tobacco unlawfully engaging in a sexual act with a female at Pine Ridge on February 23, 2012. This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
The defendant will be sentenced following a presentence investigation. A sentencing date of June 10, 2013 has been ordered. The defendant was remanded to the custody of the U.S. Marshal.
Phoenix Man Pleads Guilty to Stalking a Woman in MarylandRead the Press Release
Baltimore, Maryland - David Charles Richards, age 49, of Phoenix, Arizona, pleaded guilty today to stalking a woman in Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to Richards’ guilty plea, from December 2006 through November 2011, Richards used the internet, telephone, electronic mail and the U.S. mail to stalk a woman in Maryland, including threatening to kill the woman. Richards and the woman had a prior romantic relationship, which the woman described as both troubled and violent.
According to Richards’ plea agreement, after not having any contact with the victim for almost 15 years, in June 2006, Richards contacted the victim’s sister telling her that he still loved the victim but wanted to hurt her. Beginning in July 2006, and during each subsequent year, the victim sought and was granted protective orders forbidding Richards to contact her. On December 11, 2006, the victim discovered that a website had been created in her name, which included a countdown clock to the expiration of the protective order the victim had taken out against Richards and other threatening material. In March of 2008, Richards attempted to purchase a firearm in Arizona, but failed to disclose that he was subject to a protective order. He was denied purchase of a firearm by ATF due to his prohibited person status. In December 2009, Richards mailed a threatening note, along with torn and shredded pieces of the protective orders that had been served upon him, to the victim’s home. Through January 2010, Richards left the victim at least eight voicemails totaling one hour and 40 minutes in length. Richards continued to post threats on websites directed at the victim, including as recently as November 2011. Richards’ long campaign of harassment and threats placed the victim in fear of death and serious harm.
Richards faces a maximum sentence of five years in prison for stalking. U.S. District Judge Ellen L. Hollander has scheduled sentencing for June 24, 2013 at 11:00 a.m. Richards remains detained.
United States Attorney Rod J. Rosenstein praised the FBI agents in Baltimore and Phoenix for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who is prosecuting the case.
Ohio Woman Charged with Making False Accusations and Fabricating EvidenceRead the Press Release
NEWARK, N.J. – An Ohio woman who claims she investigates labor unions on behalf of attorneys was arrested today and charged by Complaint with making false accusations against former officers of an international labor union, falsely claiming she was the victim of a shooting, and fabricating evidence to support her false allegations, U.S. Attorney Paul J. Fishman announced.
Debbie Shank Morgan, 54, of Euclid, Ohio, was arrested this morning and made her initial appearance before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.According to the Complaint: In May 2012. Morgan contacted federal agents from the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (“DOL-OIG”) in New Jersey. The DOL-OIG is a federal law enforcement agency that investigates allegations related to federal crimes, such as bribery and theft, committed by and against labor unions, union officers, and employee benefit plans, among others.
She claimed that she was a non-practicing lawyer who investigates crimes associated with labor unions, employee benefit plans, and other alleged violations of federal criminal and civil law. Morgan reported that she had information that a former union officer and his father from an international labor union had committed serious violations of federal law. Morgan alleged that the former union officer had admitted to her that the father had embezzled at least $30 million from a Political Action Committee (“PAC”) associated with the International.
In support of her allegations, Morgan claimed that she had a relationship with the former union officer, and he had sent her numerous incriminating text messages. Morgan “cut and pasted” these alleged text messages, which she claimed were communications between herself and the former union officer, into e-mails and sent them to a DOL-OIG agent in New Jersey.
Federal agents obtained information from the service provider of the phone number provided by Morgan. This information revealed that the phone number had not been in service and was associated with a “land line” or “hard line,” which cannot be used to transmit text messages.In September 2012, Morgan claimed that an unknown individual had fired a weapon at her car in Ohio, but damaged only the mirror. A police officer found no damage or holes in the mirror’s housing.
Morgan is charged with two counts of making false statements (Counts One and Two), each punishable by a maximum of five years in prison and a statutory maximum fine of $250,000. Morgan is also charged with obstruction of justice (Count Three), punishable by a maximum prison term of 20 years and a statutory maximum fine of $250,000
U.S. Attorney Fishman credited special agents of the Department of Labor-Office of Inspector General, under the direction of Special Agent in Charge Robert Panella; and special agents of the U.S. Department of Labor Office of Inspector General Office of Labor Racketeering and Fraud Investigations, Chicago Region, under the direction of Special Agent in Charge James Vanderberg, for their assistance in the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.13-070
Morgan Complaint
North Carolina Woman Pleads Guilty to Operating Interstate Prostitution OrganizationRead the Press Release
RICHMOND, Va. – Michelle Matney, 38, of Greensboro, North Carolina, pleaded guilty today to conspiracy to persuade others to travel in interstate commerce to engage in prostitution for her role as the leader of an interstate prostitution organization.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.and D.A. Middleton, Chief of Police for the Henrico County Police Divisionmade the announcement after the plea was accepted by United States District Judge Henry E. Hudson. Matney faces a maximum penalty of five years of incarceration when she is sentenced on May 10, 20013.
In a statement of facts filed with her plea agreement, Matney admitted to recruiting and supervising numerous prostitutes from 2010 through 2012. She acknowledged that she would recruit prostitutes to work for her, encourage them to travel to various states other than North Carolina, where she was based, to work as prostitutes, post prostitution advertisements online for them, and set up prostitution appointments with clients. In exchange, Matney received a portion of the earnings that the women made from prostitution. Matney came to the attention of law enforcement after the Henrico County Police Department arrested several women for prostitution who stated that they were working for Matney.
This case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and Henrico County Police Division. Assistant United States Attorney Jamie L. Mickelson and Roderick C. Young are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Non-Indian from Chimayo Sentenced to Thirty Months in Prison for Robbing Santa Clara Pueblo ManRead the Press Release
ALBUQUERQUE – This morning, a federal judge sentenced David Ralph Martinez, 27, a non-Indian man from Chimayo, N.M., for robbing a Santa Clara Pueblo man on the Santa Clara Pueblo Reservation in Rio Arriba County, N.M. Martinez will serve 30 months in prison followed by three years of supervised release. Martinez also was ordered to pay $148.51 in restitution to the victim of the robbery and $140 to the U.S. New Mexico Credit Union.
Martinez’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Martinez was arrested on a criminal complaint on Aug. 10, 2011, and has been in federal custody since that time. On Aug. 23, 2011, Martinez was indicted and charged with (1) armed robbery and (2) assault with a dangerous weapon in an indictment on Aug. 23, 2011.
On Dec. 6, 2011, Martinez entered a guilty plea to Count 1 of the indictment, charging him with armed robbery. In entering his guilty plea, Martinez admitted robbing an enrolled member of Santa Clara Pueblo on Aug. 11, 2011. Martinez admitted approaching the victim at a credit union ATM located on Pueblo land and taking $140 from the victim by threatening him with a knife.
The Court dismissed Count 2 of the indictment against imposing sentence on Martinez.
The case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Northern Pueblos Agency with assistance from the Santa Clara Tribal Police Department, the Espanola Police Department and the Rio Arriba County Sheriff’s Department, and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
New York Man Pleads Guilty to Attempting to Bomb New York Federal Reserve Bank in Lower ManhattanRead the Press Release
BROOKLYN, N.Y. – Earlier this afternoon, at the U.S. District Court for the Eastern District of New York, Quazi Mohammad Rezwanul Ahsan Nafis, 21, pleaded guilty to attempting to detonate what he believed to be a 1,000 pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan’s financial district. The charge to which Nafis pleaded guilty, attempting to use a weapon of mass destruction, carries a sentence of up to life imprisonment.
The guilty plea was announced by Loretta E. Lynch, U.S. Attorney for the Eastern District of New York; Lisa Monaco, Assistant Attorney General for National Security; George Venizelos, Assistant Director-in-Charge, FBI, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
According to today’s guilty plea and documents filed in the case, defendant Nafis, a Bangladeshi national, traveled to the United States in January 2012, intending to fight violent jihad. Nafis attempted to recruit multiple individuals to form a terrorist cell inside the United States. He brought with him digital media containing bomb-making instructions and speeches by Anwar al-Awlaki, a now deceased leader of al-Qaeda in the Arabian Peninsula (AQAP). Nafis also actively sought out al-Qaeda contacts within the United States to assist him in carrying out an attack. Unbeknownst to Nafis, one of the individuals he attempted to recruit was a source for the FBI. During their subsequent investigation, FBI agents and NYPD detectives working with the Joint Terrorism Task Force closely monitored Nafis as he attempted to implement his plan.
Nafis proposed several targets for terrorist attack, including a high-ranking U.S. official and the New York Stock Exchange. Ultimately, Nafis decided to conduct a bombing operation against the New York Federal Reserve Bank. In a written statement he devised to claim responsibility for the terrorist bombing of the Federal Reserve Bank on behalf of al-Qaeda, Nafis wrote that he wanted to “destroy America” and that he believed the most efficient way to accomplish this goal was to target America’s economy. In this statement, Nafis also included quotations from “our beloved Sheikh Osama bin Laden” to justify the killing of women and children that Nafis expected would result from the attack.
During the investigation, Nafis came into contact with an FBI undercover agent who posed as an al-Qaeda facilitator. At Nafis’s request, the undercover agent supplied Nafis with 20 50-pound bags of purported explosives. Nafis then worked to store the material and assemble the explosive device for his attack. Nafis purchased components for the bomb’s detonator and conducted surveillance for his attack on multiple occasions in New York City’s financial district in lower Manhattan. Throughout his interactions with the undercover agent, Nafis repeatedly asserted that the plan was his own and was the reason he had come to the United States.
On October 17, 2012, the day of the planned attack, Nafis met the undercover agent and traveled in a van to a warehouse located in the Eastern District of New York. While en route, Nafis explained to the undercover agent that he had a “Plan B” that involved conducting a suicide bombing operation in the event that the attack was about to be thwarted by the police. Upon arriving at the warehouse, Nafis assembled what he believed to be a 1,000 pound bomb inside the van. Nafis and the undercover agent then drove to the New York Federal Reserve Bank. During this drive, Nafis armed the purported bomb by assembling the detonator and attaching it to the explosives. Nafis and the undercover agent parked the van next to the New York Federal Reserve Bank, exited the van, and walked to a nearby hotel. There, Nafis recorded a video statement to the American public which he intended to release in connection with the attack. During this video statement, Nafis stated: “We will not stop until we attain victory or martyrdom.” Nafis then repeatedly, but unsuccessfully, attempted to detonate the bomb, which had been assembled using the inert explosives provided by the undercover agent. JTTF agents arrested Nafis immediately after he attempted to detonate the bomb.
“As today’s guilty plea shows, the defendant came to this country not to further his studies, but to advance the goals of jihad. Once here, he devoted his energies to refining his plan to disrupt the U.S. economy and kill Americans, and attempting to recruit others to join him. Ultimately, he resolved to commit mass murder in downtown Manhattan through an attack on the New York Federal Reserve Bank, a symbol of America’s economy. With diligence and determination, Nafis attempted to carry out his plan in the name of al-Qaeda. We are committed to protecting the safety of all Americans, including the hundreds of thousands who work in New York’s financial district. We will not wait for our enemies to attack us before using the tools at our disposal to discourage, disrupt, and ultimately, detain them with lengthy terms of incarceration,” stated U.S. Attorney Loretta E. Lynch. “I would like to thank our partners at the FBI, NYPD, United States Secret Service, Immigration and Customs Enforcement/Homeland Security Investigations, New York State Police, the other agencies who participate in the JTTF, and the Department of Justice’s National Security Division for their hard work on this important investigation. I would also like to thank the security teams at the New York Federal Reserve Bank and the New York Stock Exchange for their assistance.”
“Rezwanul Nafis today admitted that he came to America for the purpose of conducting terrorist attacks, that he tried to recruit others into his plans, and that he ultimately concocted and attempted to carry out an attack against the New York Federal Reserve Bank. Thanks to a coordinated undercover law enforcement effort, his plot was thwarted. I applaud the many agents, analysts and prosecutors who helped bring about today’s successful outcome,” said Lisa Monaco, Assistant Attorney General for National Security.
FBI Assistant Director-in-Charge George Venizelos stated, “Nafis admits he came to the U.S. intent on committing jihad, assembled a bomb for that purpose, and attempted to detonate it. Thankfully, among those who stood between him and his goal were a source and an undercover FBI agent. In order to stop those committed to terrorism from conspiring with others who would actually help them, we will continue to use all available tactics, including the use of undercover agents. There is no more important mission.”
NYPD Commissioner Kelly stated, “Nafis is just one of the more recent examples of individuals charged in terrorist plots against targets in New York City. There have been 16 plots against the city that we know of since the World Trade Center Twin Towers were destroyed in 2001. Time and again, individuals intent on making a violent terrorist statement select New York City as their venue. That’s why, as in many other cases, the NYPD cooperated closely with federal prosecutors and the Joint Terrorism Task Force of the FBI to bring Nafis to justice.”
The defendant faces a statutory maximum sentence of life. His sentencing is scheduled for May 30, 2013, at 10:00 AM, before Chief Judge Carol B. Amon, at the federal courthouse in Brooklyn.
The government’s case is being prosecuted by Assistant U.S. Attorneys James P. Loonam and Richard M. Tucker, with assistance from Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.
The Defendant:
Quazi Mohammad Rezwanul Ahsan Nafis
Age: 21
Jamaica, New YorkNampa Man Pleads Guilty to Possessing A Sawed-Off ShotgunRead the Press Release
BOISE – Kenneth Lee Morgan, 51, of Nampa, Idaho, pleaded guilty today in United States District Court in Boise to possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced.
In court today Morgan admitted that on April 18, 2011, he was in possession of a sawed-off shotgun. According to information presented in court, the Winchester 12 gauge sawed-off shotgun was recovered by law enforcement agents after Morgan sold the shotgun to another individual.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release.
Sentencing is set for April 30, 2013, before the Hon. John C. Coughenour, U.S. District Judge for the Western District of Washington, at the federal courthouse in Boise.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, a task force comprised of local and federal law enforcement agencies in the Treasure Valley. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Montgomery Woman Is Sentenced to 65 Months for Stealing Identities for Tax RefundsRead the Press Release
Montgomery, Alabama - Angeline Austin, 41, of Montgomery, Alabama, was sentenced by U.S. District Judge Myron Thompson to 65 months in federal prison for one count of conspiring to defraud the Government regarding claims, one count of fraud in connection with identification documents, a count of fraud in connection with computers, and of aggravated identity theft, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
Between June 13, 2010 and March 25, 2011, Austin worked for Southern Records Management, Inc., a company that contracts with other companies to manage their business data. As an employee for Southern Records Management, Austin worked at the Troy Regional Medical Center records office. While working at Troy Hospital, Austin stole over 800 names, Social Security numbers, dates of birth, and other personal information from current and former patients of the Troy Hospital. Austin then sold that information to another person for between $6500 and $8000. These stolen identities were then used to file fraudulent tax returns. The IRS, believing the tax refunds were legitimate, deposited the tax refunds from those fraudulent tax returns on pre-paid debit cards, and sent them to people working with Austin. Those people then cashed out the debit cards at various ATM machines.
At the sentencing hearing, one of the victims, whose identity Austin stole, testified that he used to work at a defense contracting company making over $100,000 a year. His job at the defense contracting company required him to maintain a top secret security clearance. As a result of Austin stealing his identity, his credit was severely impacted and his security clearance was suspended. Because his security clearance was suspended, he was fired from his job. He now works at a fast food restaurant making minimum wage. Further, a member of the Air National Guard, his military duties have been scaled back because of the suspended security clearance. The lack of income has severely affected the his family; for example, his wife had to quit nursing school; his daughter, who sings in her school choir, couldn’t go on several choir trips where the family had to pay for the trips; and, his son had to decrease his trips with his sport’s teams.
The Chief Executive Officer (CEO) of Troy Regional Medical Center also testified at Austin’s sentencing hearing. She told the Court that Austin had access to all of Troy Medical Center’s patients’ information because Austin’s job was to provide patients, and other authorized individuals, copies of their medical records. Although Austin was employed by the hospital as a contractor, Troy Medical Center trained her, as they did all hospital employees, about Federal and States laws requiring the protection of patients’ privacy and personal information. The CEO further explained to Judge Thompson that Troy Medical Center has been operating at a loss for years and that the hospital was very concerned that it may be fined over $1.5 million dollars for violations of Federal and State of Alabama health care privacy laws stemming from Austin stealing the patients’ identities. This fine could severely impact the capability to operate the only hospital in Troy.
“These identity thieves are becoming more bold,” said U.S. Attorney Beck. “However, my office is unrelenting, and we will not let up on these criminals. We cannot, and will not, allow these criminals to continue to prey on our citizens.”
"Identity thieves come in all forms, a complete stranger or a neighbor down the street,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica Hyman-Pillot. “Whatever their background, IRS Criminal Investigation and the United States Attorney’s Office are dedicated to identifying, investigating and vigorously prosecuting those individuals who choose to victimize and steal from honest individuals.”
“Identity theft is an ongoing problem in the United States and the Montgomery, Alabama area, unfortunately, is in the top ten of cities where the stolen identities are being used to file fraudulent tax returns,” stated Resident Agent in Charge Clayton Slay, U.S. Secret Service in Montgomery, Alabama. Slay continued by saying, “Austin’s sentencing is the most recent in this case which involved numerous defendants who stole identities from, not only Troy Hospital, but local Montgomery high schools and other hospitals in Montgomery, Alabama, and the Atlanta, Georgia, areas through collusive employees, security guards, and U.S. Postal delivery personnel and resulted in approximately $1.6 million dollars in loss to legitimate tax payers. With the 2013 tax filing season approaching, the U.S. Secret Service, along with the Internal Revenue Service Criminal Investigative division will remain proactive in the investigation of individuals and groups associated with these types of crimes, especially individuals like Austin who abuse positions of trust to commit crimes and ruin the lives of innocent citizens.”
The United States Attorney thanked the United States Secret Service and the Internal Revenue Service, the agencies that investigated the case, and, Todd A. Brown, the Assistant United States Attorney who represented the United States at the sentencing of Austin.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mission Man Pleads Guilty to Firearm ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that Gary Joe Emery, age 27, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on February 6, 2013 and pled guilty to Felon in Possession of a Firearm. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment.
On April 13, 2009 Emery was convicted of a felony in United States District Court – District of South Dakota. On June 10, 2012, Emery possessed a firearm at his residence in Todd County, South Dakota.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for May 6, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Mexican Drug Traffickers Sentenced on Drug Conspiracy Charges; Conspiracy Manager Forfeits $750,000 in CashRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Genaro Torres, 58, formerly of Laredo, Texas, and Maria E. Garcia, 64, formerly of Houston, Texas, were sentenced for their roles in a cocaine conspiracy.
Torres, who was convicted of conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine, was sentenced to 10 years in prison by U.S. District Judge David G. Larimer. In addition, Torres forfeited $750,000 in United States currency, which he admitted constituted, or derived from, proceeds he obtained as a result of his illegal drug activity. Garcia, who was convicted of conspiracy to distribute, and possess with intent to distribute cocaine, was sentenced to four years in prison by Judge Larimer.
Assistant U.S. Attorney Frank H. Sherman, who handled the case, stated that the defendants were involved with a group of individuals that distributed over 150 kilograms of cocaine from Mexico in the United States between 1991 to 2008. During the course of the conspiracy, cocaine was transported to, and distributed in, Rochester by members of the conspiracy. Cocaine was also provided to Houston, Chicago, New York City, Atlanta and the New England region of the country.
Since the early 1990s, Genaro Torres was involved in transporting quantities of cocaine across the Mexican-South Texas border in the area of Laredo, Texas, and thereafter distributing the cocaine. Torres was found by the Court to have acted as a manager or supervisor in this extensive drug distribution activity and the Court further found that, between 2000 and 2008, Torres arranged at times for the distribution of multi-kilogram quantities of cocaine to individuals in or about Houston, Texas.
As for Maria Garcia, by early 2000, this defendant was selling cocaine in Houston, Texas, after being supplied by Genaro Torres. Between February 2000 and April 2000, Torres arranged the delivery of over 50 kilograms of cocaine in Houston, Texas, to Garcia or her customers. Torres and Garcia are Mexican citizens (and permanent resident aliens of the United States) and it is anticipated that both Torres and Garcia will be deported upon the completion of their sentences."It's often said that crime doesn't pay and in this case that is especially true," said U.S. Attorney Hochul. "The hard work of our law enforcement partners and prosecutors has led to the take down of a major drug conspiracy. But in addition, we have literally taken the profit out of this particular crime syndicate. The money being forfeited will now be put to a much more positive use including continued crime fighting efforts."
The sentencings are the result of an Organized Crime Drug Enforcement Task Force investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, assisted by the Rochester Police Department, under the direction of Chief James M. Sheppard, and the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent in Charge Toni Weirauch.
Mexican Citizen Convicted of Smuggling Heroin in Her Luggage at IAHRead the Press Release
HOUSTON – A Mexican woman who was smuggling nearly two kilograms of heroin in her luggage as she arrived at George Bush-Intercontinental Airport (IAH) from Ecuador has entered a plea of guilty, United States Attorney Kenneth Magidson announced today.
Yessica Chanel Cabanillas-Torres, 21, of Sonora, Mexico, pleaded guilty to conspiracy to possess with the intent to distribute more than a kilogram of heroin just moments ago before United States District Judge Gray H. Miller.
At the hearing, Cabanillas-Torres admitted that on Oct. 4, 2012, she arrived at IAH as a passenger aboard a flight from Quito, Ecuador. Her ticket indicated she was continuing her travel through Houston to Newark, N.J. Upon her arrival at IAH, Customs and Border Protection (CBP) officers questioned Cabanillas-Torres about her reasons for visiting the United States and examined her and her luggage for potentially prohibited items or contraband.
During the examination, she presented herself and two hard-sided suitcases to CBP officers for examination. Officers removed the contents of the suitcases and noticed the suitcases seemed to be unusually heavy. Officers then x-rayed the two suitcases at which time anomalies were discovered along the inner frame of each bag. Based on these anomalies and the weight of the suitcases, officers drilled into the two suitcases and discovered a brown powdery substance within the walls of each suitcase which field tested positive for the presence of heroin. Officers then dismantled one of the suitcases and found several small bundles of heroin inside with a gross weight of approximately 1.2 kilograms. Officers then left the second suitcase intact and sent it to the CBP forensic laboratory to be disassembled in order to remove the suspected heroin inside. The second suitcase was also found to contain bundles of heroin and packaged in a similar fashion to the first suitcase. The total amount of heroin found was approximately 1.934 kilograms with a purity of approximately 82.7%
Cabanillas-Torres indicated she had been hired by an individual in Mexico to transport luggage from Quito to Newark in exchange for $4,000. She stated she did not know the identity of the person in Newark to whom she was supposed to deliver the luggage, but knew the luggage contained drugs and was intending to deliver these suitcases to another person in the U.S.
Judge Miller has set for sentencing for May 17, 2013, at 11:00 a.m., at which time she faces a minimum of 10 years and up to life imprisonment and a possible $10 million fine. She will remain in custody pending that hearing.
This case was investigated by Homeland Security Investigations and CBP. Assistant United States Attorney Arthur R. Jones is prosecuting the case.
Metroplex Agencies Reap Benefits of Major Marijuana Trafficking OrganizationRead the Press Release
Department of Justice
Office of Public AffairsGARLAND, Texas – The dismantling of a major marijuana trafficking organization has resulted in the distribution of significant assets to five Metroplex law enforcement agencies in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
In October 2010, law enforcement agencies became aware of a drug trafficking organization that was responsible for moving large amounts of marijuana and cash between the Dallas, Texas area and various points in Arizona. On Dec. 4, 2010, members of the drug trafficking organization were observed removing an air conditioning unit from a horse trailer to reveal a hidden compartment used to hide currency, marijuana and firearms. Law enforcement officers moved in and arrested members of the drug trafficking organization. They also recovered two rifles and a firearm on the front seat of a vehicle. Additional weapons were seized at the location along with $685,825.00 in cash. Agents then executed search warrants at other residences and a storage unit. At the storage unit, agents seized an additional $257,520.00, $206,400.00, and $309,880.00 for a total currency seizure of $1,722,446.00.
The Texas Department of Public Safety led the investigation with assistance from the Wylie Police Department, the Collin County Sheriff’s Office, the Dallas County Sheriff’s Office, and the Dallas County District Attorney’s Office. The Bureau of Alcohol, Tobacco, Firearms, and Explosives provided follow-up investigation after the arrest and seizure of evidence. In total, nine individuals were convicted of federal drug trafficking violations.
"This investigation is a great example of the successful partnership between local, state and federal law enforcement agencies in Texas," said DPS Deputy Director David Baker. "Thanks to the efforts by all involved, these criminals are now off our streets, and our communities are safer today."
The following agencies received equitable sharing checks as a result of this case:Texas Department of Public Safety $1,119,360.20 (65%)
Wylie Police Department $86,104.63 (5%)
Dallas County Sheriff’s Office $86,104.63 (5%)
Collin County Sheriff’s Office $68,883.70 (4%)
Dallas County District Attorney’s Office $17,220.93 (1%)The remaining 20% of the forfeiture money will be deposited into the Asset Forfeiture Fund.
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This case was prosecuted by Assistant U. S. Attorney Ernest Gonzalez.Maryland’s St. Joseph’s Medical Center Agrees to Pay $4.9 Million for Medically Unnecessary Hospital AdmissionsRead the Press Release
St. Joseph’s Medical Center, a hospital located in Towson, Md., has reached a settlement with the United States to pay $4.9 million in connection with its submission of false claims to Medicare, Medicaid and other federal healthcare programs, the Justice Department announced today.
This settlement resolves the hospital’s civil liability to the United States under the False Claims Act for the hospital’s disclosure that from 2007-2009 it engaged in a practice of admitting patients to the hospital unnecessarily. In particular, the hospital disclosed that it admitted patients for short stays – typically one or two days – that were not warranted by the patient’s medical condition, and thereby generated a larger reimbursement than was proper for each patient. Of the $4.9 million to be paid by St. Joseph’s, $4.6 million will go the United States, and $152,406 will go to the state of Maryland, which is also a party to the agreement.
“The improper admission of patients for the purpose of obtaining increased reimbursement is a significant drain on the resources of federal and state healthcare programs,” said Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division. “This recovery reflects the Department’s continuing efforts to safeguard federal funds.”
This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.2 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.
Mr. Delery thanked the Department of Health and Human Services, Office of the Inspector General; the U.S. Attorney’s Office for the District of Maryland; and the Justice Department’s Commercial Litigation Branch, for their resolution of this matter.
Manhattan U.S. Attorney Files and Simultaneously Settles Lawsuit Against St. Luke’s-Roosevelt Hospital Center for Fraudulently Billing Medicare and MedicaidRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed and simultaneously settled a health care fraud lawsuit under the False Claims Act against the ST. LUKE’S-ROOSEVELT HOSPITAL CENTER (the “Hospital”), CONTINUUM HEALTH PARTNERS, INC., and SLR PSYCHIATRIC ASSOCIATES (“SLR”) (collectively, “ST. LUKE’S”) for improperly billing Medicare and Medicaid for out-patient services provided at its mental health clinics. As part of the settlement, ST. LUKE’S agreed to pay $2,325,000 to settle the Government’s claims for damages and penalties under the False Claims Act, with $1,258,115.17 of that amount to be paid to the United States and the balance to the State of New York for its share of the Medicaid overpayment. The settlement was approved yesterday by United States Circuit Court Judge Denny Chin, sitting by designation.
Manhattan U.S. Attorney Preet Bharara stated: “As they admitted today, St. Luke’s engaged in billing shenanigans that siphoned millions of taxpayer dollars out of government health care programs intended to benefit elderly and low-income individuals. Medicare and Medicaid fraud divert precious and dwindling resources from those who truly need help, and this Office will keep protecting those resources.”
According to the Complaint and Settlement filed in this case:
ST. LUKE’S double-billed the United States for psychiatric services provided by the Hospitals’ physicians at SLR, one of its out-patient mental health clinics, in two ways: (1) the Hospital sought and received reimbursement pursuant to Medicare for non-reimbursable costs relating to outpatient psychiatric visits conducted by SLR during the period 1999 to 2002; and (2) the Hospital billed out-patient psychiatric services to Medicaid as a rate-based service, which included the care provided by the physician and all other related costs. At the same time, SLR billed the Government on a fee-for-service basis for the same care provided by the physician. As a result, ST. LUKE’S received Medicare and Medicaid payments that it was not entitled to receive.
As part of the settlement, ST. LUKE’S has admitted, acknowledged, and accepted responsibility for the following conduct:
- During the period 1999 to 2002, the Hospital sought and received reimbursement pursuant to Medicare for non-reimbursable costs relating to outpatient psychiatric visits conducted by SLR.
- During the period from on or about February 1998 through 2002, the Hospital and SLR overbilled the United States and New York State in connection with claims for reimbursement under Medicaid relating to outpatient psychiatric visits conducted by SLR; specifically, SLR submitted claims and received reimbursement under Medicaid for costs that were already included in, and reimbursed to the Hospital pursuant to, separate claims submitted by the Hospital.
- From 2003 through 2010, the Hospital submitted claims and received reimbursement under Medicaid relating to services furnished by physicians in the Hospital’s outpatient mental health clinic. Department of Social Services regulations provide that “[t]he costs of routine physicians' services are included in facilities' rate or fee and shall not be billed separately.” The Hospital billed for such physician services separately, although the Hospital had removed the physician costs from its institutional cost report.
Pursuant to the settlement, ST. LUKE’S will pay $1,258,115.17 to the United States and $1,066,884.83 to the State of New York in damages and civil penalties within ten days of the settlement.
Mr. Bharara thanked the Office of the Inspector General for the U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services for their assistance with the case. He also thanked the Medicaid Fraud Control Unit of the Office of the New York State Attorney General.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Joseph A. Pantoja is in charge of the case.
US v. St. Luke's Roosevelt Complaint
US v. St. Luke's Hospital Order of Settlement and Dismissal
US v. St Luke's Hospital Order of Settlement and ReleaseManhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrests of Three Defendants in $2.5 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), announced the filing of a three-count criminal Complaint charging CHARLES HUGGINS, CHRISTOPHER BUTCHKO, and ANNE THOMAS for allegedly perpetrating a $2.5 million Ponzi scheme involving investments in gold and diamonds purportedly mined in West Africa for sale in the United States. HUGGINS and THOMAS were arrested this morning in Edgewater, New Jersey, and Cliffside Park, New Jersey, respectively. BUTCHKO was arrested this morning in Murrieta, California. HUGGINS and THOMAS are expected to be presented in Manhattan federal court before Magistrate Judge Debra Freeman later today, and BUTCHKO is expected to be presented in federal court in the Central District of California later today.
Manhattan U.S. Attorney Preet Bharara said: “The promise of riches mined in Africa was fool’s gold that these defendants allegedly dangled in front of investors in what was nothing more than a scam. For those Ponzi schemers who have yet to get the message, be aware that you will be exposed by law enforcement and punished accordingly.”
Assistant Director-in-Charge George Venizelos said: “As alleged, these defendants lied about their intentions regarding investors’ money, pocketing most of it for personal use. So long as there are people with money to invest, there will likely be investment swindlers eager to take their money under false pretenses. There will also be the FBI to arrest the swindlers.”
According to the Complaint filed in Manhattan federal court:
From 2008 through September 2011, HUGGINS, BUTCHKO, and THOMAS solicited $2.5 million from various investors through companies known as JYork Industries Inc. (“JYork”) and Urogo Inc. (“Urogo”). HUGGINS and
BUTCHKO and others repeatedly made false and misleading representations about how they would use the investors’ money to mine gold and diamonds from Sierra Leone and Liberia, and promised high rates of return, based on the profits they said would be generated by the sale of the gold and diamonds in the United States.
HUGGINS, BUTCHKO, and THOMAS misappropriated the majority of the money they raised and kept it for themselves or used it to repay other investors. For example, investor funds were diverted to Orpheus Inc., a record label owned by HUGGINS, and VASNC Pvt Ltd., a petroleum company owned by BUTCHKO, and used to pay monthly apartment rental payments, restaurant bills, personal credit card bills, and other expenses. THOMAS personally received more than $90,000 in cash and disbursed more than $830,000 in investor proceeds through wire transfers to the Bahamas and checks repeatedly issued in amounts less than $10,000 in an apparent attempt to avoid the reporting threshold. Contrary to the defendants’ representations, only a small portion of the money they raised was transferred to Africa.
When investors complained that they had not received the return on their investment that they were promised, HUGGINS, BUTCHKO, and THOMAS frequently converted or offered to convert their investment into restricted shares of Oraco Resources, a publicly traded company of which HUGGINS, BUTCHKO, and THOMAS were majority shareholders. The investigation has revealed that only one investor to date has been made whole. That investor received the principal of his investment only after he threatened to bring civil litigation.
HUGGINS, 66, of Edgewater, New Jersey, and BUTCHKO, 43, of Murrieta, California, are each charged in the Complaint with one count of conspiracy to commit wire fraud and one count of wire fraud. Those counts each carry a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss derived from the offense. THOMAS, 68, of Cliffside Park, New Jersey, is charged with one count of conspiracy to commit wire fraud and one count of money laundering. The money laundering count carries a maximum potential penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the money laundering transactions.
Mr. Bharara praised the investigative work of the FBI in this case. He added that the investigation is ongoing.
The case is being handled by the General Crimes Unit of the United States Attorney's Office. Assistant United States Attorney Edward A. Imperatore is in charge of the prosecution.
The charges contained in the Compliant are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Huggins, Butchko, Thomas Complaint
Manassas Woman Pleads Guilty to Purchasing More Than 31 Handguns in 15 DaysRead the Press Release
ALEXANDRIA, Va. – Kimberly Yvette Dinkins, 44, of Manassas, Va., pled guilty today to purchasing 31 handguns from three Virginia gun shows to resell for profit.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Dinkins pled guilty to dealing firearms without a license and faces a maximum penalty of five years in prison when she is sentenced on May 3, 2013.According to a statement of facts filed in court, Dinkins purchased 31 firearms – all handguns – on three consecutive weekends from Nov. 17 through Dec. 1, 2012. She purchased 13 handguns at a gun show in Chantilly, Va., nine at a gun show in Richmond, Va., and nine at a gun show in Hampton, Va. Dinkins was not a federally licensed dealer of firearms; however, Dinkins was unemployed and purchased the handguns with the intention of selling them for profit.
This investigation is being conducted by ATF’s Washington Field Division. Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Who Interfered with Flight Crew on JetBlue Flight from New York to California SentencedRead the Press Release
DENVER – Marcus Covington, age 33, of New York City, New York, was sentenced today by Senior U.S. District Court Judge Wiley Y. Daniel to serve 172 days (time served) for Interference with a Flight crew, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge James Yacone announced. Following his prison sentence, Covington was ordered to spend 2 years on supervised release. While on supervised release the judge ordered that he not have any alcohol. The defendant was also ordered to pay JetBlue, the victim, $4,170 in restitution for costs incurred in the unexpected landing in Denver.
Covington was first charged by Complaint on August 20, 2012. He was then indicted by a federal grand jury on August 22, 2012. He pled guilty on November 28, 2012, and was sentenced on February 7, 2013.
According to court documents, on August 19, 2012, Covington intimidated a flight crew member and a flight attendant on JetBlue Flight 677, an Airbus A-320, carrying approximately 150 passengers, which was flying from John F. Kennedy International Airport in New York to Los Angeles International Airport. Covington also groped a 27 year-old pregnant female.
As a result of his assaultive and intimidating behavior, an FBI special agent, who was traveling on the flight as a passenger, was asked by flight crew to assist in dealing with Covington. Following consultation with the FBI agent and the Captain of JetBlue Flight 677, the Captain decided to divert the flight to Denver International Airport. The FBI agent and another passenger sat next to Covington to keep him under control while the plane made this unscheduled landing. While seated, the agent noticed Covington taking a number of unidentifiable pills.
Upon the aircraft’s arrival at the gate, Covington was escorted off the plane in handcuffs. While Denver Police Department officers were attempting to get Covington to sit in a chair, he kicked at, and spit on them while threatening to kill them.
This case was investigated by the Denver Police Department and the Federal Bureau of Investigation.
Covington was prosecuted by James Allison, Chief of the Criminal Division of the U.S. Attorney’s Office in Colorado.
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MCC Guard Indicted for Allegedly Taking Bribes to Violate Prison Rules Regarding Inmate Possession of ContrabandRead the Press Release
CHICAGO — A correctional guard at the federal Metropolitan Correctional Center in Chicago was indicted on bribery charges for allegedly violating Federal Bureau of Prisons rules regarding inmate possession of contraband. The defendant, TONY HENDERSON, was charged with five counts of bribery in an indictment returned by a federal grand jury. The charges are not related to the Dec. 18, 2012, escape of two inmates, both of whom were later captured, from the federal facility in downtown Chicago.
Henderson, 51, of Portage, Ind., an MCC correctional guard since 1996, was placed on administrative leave last September. No date has been set yet for his arraignment in U.S. District Court.
The charges, returned yesterday, were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and John F. Oleskowicz, Special Agent-in-Charge of the Chicago Field Office of the U.S. Department of Justice Office of the Inspector General.
According to the indictment, on five different dates in July and August 2012 – July 12 and 28 and Aug. 4, 18 and 31 – Henderson accepted a bribe to violate BOP rules and regulations regarding inmate possession of contraband.
The Metropolitan Correctional Center, or MCC Chicago, located at 71 West Van Buren St., is an administrative detention facility operated by the Federal Bureau of Prisons.
The government is being represented by Assistant U.S. Attorney Christopher Parente.
Each count of bribery carries a maximum penalty of 15 years in prison and a $250,000 fine, or a fine of up to three times the value of the bribe. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Luzerne County Man Sentenced to Prison for Federal Heroin Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today by Senior United States District Judge Richard P. Conaboy to serve 84 months in prison on the charge of conspiracy to distribute heroin.
According to United States Attorney Peter J. Smith, Alik Jerome Harrington, age 35, of Kingston, previously admitted to participating in a conspiracy to distribute heroin in the Luzerne County area. On April 14, 2011, after making a traffic stop, members of the Kingston Police Department seized over 200 bags of heroin from Harrington’s vehicle. Investigators then obtained a search warrant and obtained an additional quantity of heroin from a residence on Divison Street in Kingston where Harrington was residing.
In addition to the prison term, Senior Judge Conaboy also ordered that Harrington be supervised by a probation officer for three years following his prison sentence.
The investigation was conducted by the Kingston Police Department and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
Lumberton Woman Sentenced for Health Care FraudRead the Press Release
New Bern - United States Attorney Thomas G. Walker announced that in federal court on January 31, 2013, United States District Judge Louise W. Flanagan sentenced ANDETRA MICHELLE SAMPSON, 39, to 60 months imprisonment followed by 3 years supervised release, for her involvement in a health care fraud scheme that defrauded Medicaid of at least $2,187,951.65 for false billings for behavioral health services for children that were not provided. Sampson was ordered to pay full restitution to Medicaid in the amount of the fraud.
On July 11, 2012, SAMPSON pled guilty to one count of conspiring to commit health care fraud. According to court documents and proceedings, SAMPSON and others engaged in a scheme to defraud Medicaid, a health care benefit program, by submitting fraudulent claims for Day Treatment Services for preschool and school-aged children. Day Treatment Services are a covered Medicaid service designed to address a child’s medically necessary mental health and behavioral needs as evidenced by the presence of a mental diagnosis. This service required the authorization of a mental health professional such as a psychiatrist, in the form of a signed service order. SAMPSON was the principal owner and manager for Country Layne Day Treatment, LLC. located in Pembroke, North Carolina. In April 2006, SAMPSON applied for and received a Medicaid provider number and orchestrated an elaborate system for submitting fraudulent billings to Medicaid by billing for services that were not provided or were provided by unqualified individuals, falsifying service notes to hide these false billings, and creating false service orders with forged doctors’ signatures. This activity continued through 2010.
In November of 2010, the United States Health and Human Services Office of the Inspector General (HHS-OIG), the Medicaid Investigations Division (MID) of the North Carolina Attorney General’s Office, the North Carolina State Bureau of Investigation and the United States Secret Service seized in excess of $300,000.00 in property belonging to SAMPSON; the property was purchased using Medicaid money. All of this property has now been forfeited to the United States and included a fleet of recreational vehicles, personal vehicles, and rare motorcycles. The seizure included two custom motorcycles, a 2008 Queen Cobra and a 2008 Bourget Cobra, valued at $89,500.00 and $69,000.00 respectively.
North Carolina Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigation Division (MID), Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region, and Russell F. Nelson, Special Agent in Charge, United States Secret Service, Charlotte Field Office join the U.S. Attorney’s Office in making today’s announcement.
Investigation of this case was conducted by The United States Department of Health and Human Services, Office of the Inspector General, the Medicaid Investigations Division of the North Carolina Attorney General’s Office, the United States Secret Service, the North Carolina State Bureau of Investigation and the North Carolina Division of Medical Assistance Program Integrity Section. Assistant United States Attorney Thomas Murphy and Special Assistant U.S. Attorney Erica Bing of the Medicaid Investigations Division of the North Carolina Attorney General’s Office prosecuted this case. Assistant United States Attorney Steve West handled the forfeiture of these assets.
Louisville Return Preparer Sentenced to 27 Months in Prison for Preparing False Income Tax ReturnsRead the Press Release
– Returns claimed over $430,000 in false deductions and expenses
LOUISVILLE, KY – A Louisville tax preparer was sentenced in U.S. District Court by Judge John G. Heyburn, II to 27 months in prison and ordered to pay a $1,500 special penalty assessment, for aiding and assisting in the preparation of false income tax returns that claimed over $430,000 in false deductions and expenses announced David J. Hale, United States Attorney for the Western District of Kentucky.
Stacey Elzy, 38, pleaded guilty to all 15 counts of a federal grand jury indictment on September 10, 2012 and was sentenced on January 25, 2013. Elzy admitted in court that beginning in April 2006 and continuing through April 2008, she prepared individual income and partnership tax returns for other individuals that misrepresented and under-reported taxes owed by these taxpayers. Elzy assured her clients that the false itemized deductions and false business losses and the resulting inflated refunds were legitimate. The clients received large refunds and recommended Elzy to others, thus generating additional business. In total, the false items claimed by Elzy on the returns caused a loss of $207,243.00 to the IRS. The returns were filed with the Internal Revenue Service (IRS).
This case was prosecuted by Assistant United States Attorney Terry M. Cushing and was investigated by the IRS Criminal Investigation Division.
London Couple Convicted on All Counts of Child Pornography OffensesRead the Press Release
LONDON, KY - A federal jury found a London, KY., couple guilty of photographing two children engaging in sexually explicit conduct.
The jury convicted 58-year-old Ricky L. Sherman and his wife, 33-year-old Corrine Sherman late Wednesday afternoon of two counts of producing child pornography, conspiracy to produce child pornography, and one count of possessing child pornography. The jury returned the verdict after approximately four hours of deliberation following three days of trial.
Evidence presented at trial showed that, in 2008, the Shermans produced approximately 40 images of two prepubescent children engaged in sexually explicit conduct.
At the time Ricky Sherman was arrested for the federal offenses he was on probation for a previous state offense. The investigation started when state authorities received a tip that Ricky Sherman violated terms of his probation by having access to a computer. The evidence revealed that Ricky Sherman contacted his wife as the investigation was underway, and she subsequently attempted to conceal a camera from law enforcement. The camera was recovered and found to contain the produced child pornography images.
Ricky Sherman owned Truck Town Repair in Laurel County. He and his wife were indicted in September 2011.
Kerry B. Harvey, U.S Attorney for Eastern District Kentucky, Perrye Turner, Special Agent in Charge, FBI and Stewart Walker, Chief of the London Police Department jointly announced the convictions.
The investigation was conducted by the FBI and the London Police Department. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason Parman.
The Shermans will appear for sentencing on June 4, 2013. They face a minimum of 15 years in prison and a maximum of life. The couple will have to serve a minimum of 85 percent of the prison sentences imposed. The court will impose a sentence after reviewing the U.S. Sentencing Guidelines and the federal statutes.
Lebanon Woman Sentenced to 27 Months for $848,000 Wire FraudRead the Press Release
EUGENE, Ore. – Today, Chief U.S. District Judge Ann Aiken sentenced Rhonda Milligan, 42, of Lebanon, Oregon, to 27 months in federal prison for embezzling from her former employer, Entek Manufacturing, Inc., a company in Lebanon, Oregon. Milligan pled guilty to a single count of wire fraud on May 18, 2012. She was also sentenced to three years supervised release and must pay restitution in the amount of $848,156.
“This defendant abused her position of trust in her company by stealing hundreds of thousands of dollars to line her own pockets,” commented U.S. Attorney Amanda Marshall. “This sort of egregious fraud within the corporate setting will not be tolerated.”
According to the charges, court documents and other information presented in court, Milligan worked as an assistant to Entek’s president and on Entek’s management team for many years. As part of her responsibilities, Milligan had access to various financial accounts and paid personal bills for Entek’s president and owner. Milligan used her access to these accounts to embezzle money. She made more than $540,000 in unauthorized payments through an online electronic payment system to pay her personal credit card expenses and diverted another $293,000 by forging the name of Entek’s president on checks. Additionally, she skimmed from the company’s petty cash, and, in some cases, Milligan just cut checks for cash directly to herself. At sentencing, the court found that Milligan embezzled more than $848,000 between 2005 and 2011.
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
KC Man Sentenced to 10 Years for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to receive child pornography over the Internet.
Russell S. Nicholson, 36, of Kansas City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
Nicholson pleaded guilty on Aug. 3, 2012. He was arrested after an officer with the Independence, Mo., Police Department, who was investigating child pornography offenses in an undercover capacity in conjunction with an officer with the Salem, Ore., Police Department, identified his computer as sharing files that contained child pornography.
Nicholson was using a peer-to-peer file-sharing program to share nine videos of child pornography with other users via the Internet. The videos depicted minors engaged in sexual intercourse and other sexual activity with adults and with other minors. The child victims in these videos were as young as three years old. Some of the videos depicted prepubescent children being subjected to penetration or attempted penetration by adult males, or being subjected to other sadistic or violent sexual activity.
Officers executed a search warrant at Nicholson’s apartment and seized three computers, which were found to contain evidence of child pornography. Nicholson admitted that he threw into a dumpster the laptop he had with him at the time he heard about the search warrant. He said he did this because he knew there was child pornography on the computer.
Nicholson admitted that he had been downloading child pornography over the Internet for approximately 10 years.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the FBI Cybercrime Task Force, the Independence, Mo., Police Department and the Salem, Ore., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Seeks to Shut Down Miami Tax-Preparation OfficeRead the Press Release
The United States has asked a federal court to shut down a tax-preparation office in Miami, the Justice Department announced today. The civil injunction suit, filed in U.S. District Court for the Southern District of Florida, alleges that Olivia Greene and Walter Jefferson of Miami prepare returns through Angel Tax Service with falsely-claimed credits, including fuel tax credits, the earned-income tax credit, the work pay credit and educational credits.
According to the complaint, in order to conceal her role in this scheme, Greene prepared returns using an alias, Olivia Mayo. The complaint alleges that after the Internal Revenue Service (IRS) rejected Greene’s application for a preparer ID number, she hired other persons to obtain ID numbers in their names for Greene to use.
The IRS lists return-preparer fraud and false fuel tax credits as two of its “Dirty Dozen” tax scams .
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website .
Related Materials:
United States v. Olivia Greene, etc., et al.
Complaint and Request for Injunctive Relief (PDF)Jury Convicts Pharr Man in Marijuana Smuggling ConspiracyRead the Press Release
McALLEN, Texas – A federal jury in McAllen has convicted Erick Ochoa-Rodriguez, 19, of Pharr, on two counts of conspiring to possess and actually possessing marijuana with the intent to distribute the controlled substance to another, United States Attorney Kenneth Magidson announced today. The verdicts were returned earlier today after nearly three days of trial.
Ochoa-Rodriguez was charged in an indictment returned on Nov. 13, 2012. During the trial, the government presented photos, maps and witness testimony illustrating his attempt to receive 175 kilograms of marijuana from unknown individuals carrying the drugs from the border.
On Oct. 29, 2012, Border Patrol agents encountered Ochoa-Rodriguez as he drove his vehicle to a planned rendezvous near a levee within two miles of the border with seven individuals who had carried marijuana bundles from the Rio Grande River. He immediately fled, first in his vehicle and then on foot into a densely forested area. Agents ultimately located him as he was lying in the fetal position within dense overgrowth through the use of a canine unit, trackers and aircraft.
The government also proved this was not the defendant’s first encounter with law enforcement. Additional evidence demonstrated that Ochoa-Rodriguez received 125 kilograms of marijuana from undercover federal agents on June 11, 2012, before successfully fleeing law enforcement on that occasion. The prosecution further introduced evidence obtained from his Facebook account wherein Ochoa-Rodriguez acknowledged coordinating the trafficking of large quantities of marijuana from Mexico into the United States. Further investigation revealed his growing ties with Mexican Drug Cartels and his involvement in cocaine trafficking, illegal possession of firearms, money laundering and other cartel-related crimes.
Ochoa-Rodriguez is scheduled to be sentenced on April 24, 2013, and faces up to 40 years imprisonment.
This case is being investigated by the Drug Enforcement Administration, Border Patrol and Homeland Security Investigations. Assistant United States Attorney Grady J. Leupold is prosecuting the case.
Jimmy Rollins Pleads Guilty to Producing Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jimmy Rollins, 44, of Palmer, Tenn., pleaded guilty on Feb. 5, 2013, in the U.S. District Court for the Eastern District of Tennessee at Chattanooga, to producing child pornography. Sentencing has been set for May 6, 2013, in the U.S. District Court in Chattanooga.
Rollins faces a minimum term of 25 years up to 50 years in prison, a fine of up to $250,000 and supervised release from five years to life.
In February 2012, an undercover investigation by the Winchester Police Department identified Rollins as a person who used the internet to traffic in pornographic images of children. A search of his home in May 2012 revealed equipment used in the production of child pornography, and multiple photographic images and videos of Rollins engaged in sexual activity with a known minor. All the child pornographic scenes were set in a bedroom that can be recognized as Rollins’. Rollins had been previously convicted in 1994 of two counts of statutory rape in the Criminal Circuit Court of Grundy County, Tennessee.
U.S. Attorney William C. Killian stated, “We will aggressively prosecute those who are using interstate commerce to victimize children for profit and sexual gratification. Let the message be clear: If you engage in production of child pornography in the Eastern District of Tennessee, you will be caught and you will serve significant time in prison.”
On Nov. 27, 2012, a nine-count indictment, which included the aforementioned charge, was returned against Rollins by a federal grand jury sitting in Chattanooga, Tenn. This indictment was the result of an ongoing investigation by the Winchester Police Department, Tennessee Bureau of Investigation and Federal Bureau of Investigation. John P. MacCoon, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jesup Man Pleads Guilty to Sexually Exploiting Minor and Producing and Trafficking Child PornographyRead the Press Release
BRUNSWICK, GA: STEPHEN A. KEATING, 52, of Jesup, Georgia, pleaded guilty Tuesday before Chief United States District Court Judge Lisa Godbey Wood to three counts of Sexual Exploitation of a Minor in relation to his production of numerous images of child pornography, and one count of Distribution of Child Pornography.
Evidence presented at the guilty plea hearing showed that on numerous occasions in 2010 and 2011, KEATING sexually molested three minor children in order to create pictures and videos of that conduct. KEATING then distributed a number of the images, which were discovered in September 2012 during the arrest of a sex offender in Denmark. The charges against KEATING arose from an investigation led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from INTERPOL, the U.S. Customs and Border Protection (CBP) Office of Field Operations in Savannah, CBP Air and Marine Operations in Jacksonville, Fla., the Georgia Bureau of Investigation, and the Liberty County Sheriff’s Office.
United States Attorney Edward J. Tarver said, “No child should be subjected to sexual abuse and, certainly, no child should have to live with the knowledge that the abuse was captured on film for redistribution to other like-minded predators. This defendant exploited the most vulnerable members of our society, our children. Swift, aggressive prosecution of child predators is the highest priority for the Department of Justice and this United States Attorney’s Office.”
“To victimize the innocent in the manner that this child predator has pleaded guilty to is one of the most revolting crimes in our society," said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations in Atlanta. “HSI special agents will not rest until each and every child victim of sexual exploitation is rescued and defendants like Keating are behind bars.”
Each count of Sexual Exploitation of a Minor to which KEATING pleaded guilty carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison. KEATING also faces a mandatory minimum sentence of 5 years in prison and a maximum sentence of 20 years in prison for Distribution of Child Pornography. If released from prison, KEATING will be required to register as a sex offender. The date for KEATING’s sentencing hearing has not yet been scheduled.
This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. The case is being prosecuted by Assistant United States Attorney Jennifer G. Solari. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 341-7842.
Jason Owen Gierke Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on February 7, 2013, before Chief U.S. District Judge Richard F. Cebull, JASON OWEN GIERKE, a 51-year-old resident of Miles City, appeared for sentencing. He was sentenced to a term of:
Prison: 15 days (credit for time served)
Special Assessment: $100
Supervised Release: 3 years
He was sentenced in connection with his guilty plea to conspiring to maintaining drug involved premises.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
In approximately March of 2011, law enforcement received a complaint that Ross Pattison and Travis Birdinground were distributing marijuana to numerous people in Hardin and other places in Big Horn County. Through investigation and interviews, law enforcement determined that Pattison possessed a Montana medical marijuana card but was not listed as a caregiver because he is a convicted felon. Law enforcement also determined that Birdinground worked for Pattison delivering marijuana. Birdinground also possessed a medical marijuana card and was a caregiver for only one patient. Law enforcement observed Birdinground leave Pattison's residence numerous times a night and make trips to several residences within Hardin. Law enforcement also observed several individuals drive to Pattison's residence to purchase marijuana from Pattison.
On April 22, 2011, law enforcement executed search warrants for Pattison's Hardin residence and two pickup trucks. Law enforcement seized approximately five pounds of marijuana, approximately $124,000 in cash, digital scales, a paper grocery bag full of zip-lock bags, a methamphetamine pipe with residue, hashish, and photocopies of patient medical marijuana cards for marijuana caregivers GIERKE, Brandon Strecker, Birdinground and another individual.
On May 23, 2011, law enforcement executed a search warrant at Strecker's Hardin residence. Law enforcement seized a total of 420 marijuana plants - 112 marijuana plants in the attached garage, 239 marijuana plants in the bedroom, one plant in the living room, 68 in the greenhouse and shed. They also seized loose marijuana.
Several witnesses confirmed that Pattison would take and receive orders for marijuana and GIERKE, Birdinground, and another individual would deliver marijuana to the buyers. Several witnesses will testify that after Ross Pattison's house was searched, all deliveries were then made by Strecker or the others.
During an interview with law enforcement on April 22, 2011, Birdinground admitted his role in the conspiracy to distribute marijuana from Pattison's and Strecker's Hardin residences. The marijuana that he possessed on April 22, 2011, was marijuana that he was delivering for Pattison and Strecker. The marijuana was ordered through Pattison. Birdinground would pick up the marijuana from Pattison and give Pattison the money after the transaction. Pattison and Strecker paid Birdinground $800 every two weeks.
During an interview with law enforcement on May 25, 2011, GIERKE stated that he helped set up the greenhouses and watering system as part of the marijuana grow operation at Strecker's Hardin residence. GIERKE obtained his marijuana from Pattison and Strecker. GIERKE, Pattison, and Strecker were "business partners." Pattison put it all together and they grew the marijuana at Strecker's residence.
Chemists with the DEA laboratory in San Francisco tested the marijuana items submitted from the search of Strecker's residence. Some of the items were plant clippings as well as loose marijuana. The result of the analysis was that those items contained a detectable amount of marijuana, a Schedule I controlled substance.
Strecker, Pattison, and Birdinground pled guilty to federal charges and are awaiting sentencing.
The investigation was a cooperative effort between the Drug Enforcement Administration, the Montana Division of Criminal Investigation.
Investment Advisor to the Detroit Pension Funds Pleads Guilty to Conspiring with Former City Treasurer Jeffrey Beasley to Pay Him BribesRead the Press Release
Chauncey Mayfield, a former investment advisor to the two City of Detroit pension funds, pleaded guilty today to conspiring with former Detroit Treasurer Jeffrey Beasley to pay him bribes in exchange for new business from the pension funds, United States Attorney Barbara L. McQuade announced today. McQuade was joined in the announcement by Special Agent in Charge Robert Foley of the Federal Bureau of Investigation (“FBI”).
During a hearing this afternoon before United States District Judge Nancy Edmunds, Mayfield, 56, of Ft. Lauderdale, Florida, admitted that between 2006 and 2008 he had an agreement with the then City Treasurer Beasley to pay bribes to Beasley and others to influence Beasley’s decisions as a Trustee of Detroit’s Police and Fire Retirement System and General Retirement System.
Mayfield was the principal owner and Chief Executive Officer of MayfieldGentry Realty Advisors, L.L.C. (“MayfieldGentry”). MayfieldGentry was an investment advisor and fiduciary to the two Detroit pension funds overseeing a real estate investment portfolio worth more than $200 million of pension fund assets. According to Mayfield, Beasley agreed to maintain business for Mayfield’s company and to give Mayfield new pension fund business in exchange for cash others things of value. In particular, Mayfield gave $50,000 to the Kilpatrick Civic Fund. In addition, Mayfield paid for Beasley and others to take a trip to Las Vegas costing $60,000; paid for another private plane trip to Tallahassee, Florida costing $24,000; paid for a private jet flight to Bermuda; and hired Beasley’s paramour to work at MayfieldGentry at Beasley’s request. Because of the pension fund business directed to MayfieldGentry by Beasley, Mayfield earned significant investment advisory fees from Detroit’s two pension funds.
United States Attorney McQuade said, “Detroit’s pension fund officials are entrusted to care for the retirement savings of the City’s employees, including police officer and firefighters. Officials who abuse their positions of trust for personal gain will be brought to justice.”
Robert Foley, Special Agent in Charge, Federal Bureau of Investigation said,"Those individuals who engage in pay to play schemes rob citizens of their right to honest government. The FBI Led Detroit Area Public Corruption Task Force is committed to stopping these illegal acts."Based on his guilty plea and felony conviction for conspiring to pay bribes, Mayfield is facing a maximum of five years in prison and a fine of up to $250,000.
A criminal indictment is pending against Beasley and against Roy Dixon, a former investment advisor to the two pension funds who paid bribes to Beasley and other officials and who embezzled millions from the funds.
In addition, a number of other defendants have been convicted in relation to the pension fund investigation, including (1) Monica Conyers, a former Trustee of the General Retirement System and former member of the Detroit city council, for conspiracy to take bribes, including bribes relating to a proposed multi-million dollar pension fund investment in Wireless Resources and a $10,000 extortion payment relating to the Police and Fire Retirement System’s investment in the Romulus Deep Injection Waste Well; (2) Samuel L. Riddle, Conyers’ Chief of Staff, for conspiracy to commit bribery and extortion relating to the Wireless Resources and Romulus Deep Injection Well investments; (3) DeDan Milton, a former Trustee of Detroit’s two pension funds; (4) Andrew Park, an owner of Asian Village, who paid a bribe to obtain a $2.75 million loan from Detroit’s General Retirement System; and (5) Derrick Miller, former Chief Information Officer of Detroit, who accepted the bribe from Park and who took a kickback of more than $500,000 on a $44 million investment by Detroit’s two pension funds.
The case was investigated by agents of the Federal Bureau of Investigation, the Internal Revenue Service, and the Department of Labor. It is being prosecuted by Assistant United States Attorneys Robert Cares and David A. Gardey.
Indictment Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on February 7, 2013:
Stacy Davis, 45, of Gary, Indiana, was charged in an Indictment with the robbery of Chase Bank in Merrillville, Indiana and Fifth Third bank in Munster, Indiana.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Ronald Parks, 60, residence unknown, was charged in an Indictment with kidnapping.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the Hammond Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
IRS Criminal Investigation Warns the Public to be Vigilant About Identity TheftRead the Press Release
ALBUQUERQUE – IRS Criminal Investigation is warning taxpayers of an increase in false tax returns being filed with the IRS using stolen Social Security numbers. Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Both nationwide and in New Mexico, IRS Criminal Investigation has designated identity theft as a priority area and increased numbers of tax fraud investigations relating to identity theft have been initiated in recent years.
There are 26 IRS Criminal Investigation field offices across the country that investigate tax fraud and refund fraud, including identity theft. Investigation analysts in IRS Scheme Development Centers often discover identity theft related schemes where refunds appear to be going to identity theft perpetrators. In these instances, action can be taken to stop additional false refunds and protect victim accounts. IRS Criminal Investigation recommends prosecution of refund fraud cases, including cases involving identity theft to the Department of Justice.
“IRS Criminal Investigation is serious about investigating identity theft,” said Gabriel Grchan, Acting Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation. “Filing fraudulent tax returns is the same thing as stealing from the U.S. Treasury. It also harms those individuals whose identities were stolen.”
“IRS Criminal Investigation has partnered with other local and Federal law enforcement agencies to identify the perpetrators of these identity theft schemes. We have obtained the full support of the U.S. Attorney’s Office to pursue prosecution of these individuals which has often resulted in significant prison sentences.”
The following is an example of a recent identity theft case in New Mexico: Douglas Kuester of Silver City, N.M., was sentenced in Nov. 2012 to 48 months in prison for filing false claims and aggravated identity theft. According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds.
“The IRS has taken numerous steps to combat identity theft and protect taxpayers. I encourage you to go to www.IRS.gov and read the Taxpayer Guide to Identity Theft, call 1-800-908-4490 or visit your local IRS office for information about identity theft and what to do if you become a victim,” said Grchan.
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IRS News Release
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IRS Fact Sheet
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IRS ID Theft Map
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Health Care Fraud Fugitive Is Extradited from Colombia to Serve 2006 SentenceRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the return to South Florida of fugitive Magda Luz Lavin, 55, after her arrest and extradition from Colombia. Lavin fled South Florida during a 2006 health care fraud trial, and was subsequently charged with bond jumping. She made her initial appearance in federal court earlier today on the bond jumping charge.
Lavin was the former owner of at least two HIV clinics in the Southern District of Florida. She was charged in a 25-count federal indictment with conspiracy to commit health care fraud, health care fraud, and money laundering. On September 18, 2006, after three weeks of trial before U.S. District Judge Joan A. Lenard, defendant Lavin failed to appear in Court and the Court issued a bench warrant for her arrest. Thereafter, the Court found that Lavin had fled the jurisdiction and had voluntarily waived her appearance during the remainder of the trial, and permitted the government to proceed with the trial. On September 25, 2006, the jury convicted Lavin on all counts.
On December 19, 2006, Judge Lenard sentenced Lavin in absentia to 180 months in prison, and ordered her to pay restitution in the amount of $5,037, 356. Upon her return, Lavin will begin to serve her sentence and face the bond jumping charges.
U.S. Attorney Wifredo A. Ferrer stated, “This case should serve as a wakeup call to health care fraud defendants who seek to avoid justice by fleeing to other countries: the arm of the law is long and we in law enforcement are patient. Sooner or later, we will catch you and you will be brought back to face justice.”
“In 2006, Magda Luz Lavin, a convicted health care fraudster, attempted to cheat justice by fleeing the country during her trial,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Thanks to the support and close cooperation of our partners including Interpol and the Colombian National Police, she is again in the United States in federal custody. Justice is served.”
According to the evidence, the defendant used two medical clinics, Alternative Day Spa, Corp., formerly in Kendall, and Alternative Treatment Programs, formerly in Key West, to defraud Medicare of more than $5 million between May 2000 and December 2002. The two clinics claimed to specialize in the treatment of HIV patients with “infusion therapy treatments.” The patients who attended the clinics were, in fact, HIV positive.
The evidence at trial showed that under Lavin’s direction, the clinics fraudulently billed Medicare for dosages of two expensive medications, Neupogen and Procrit. In fact, however, the patients received either no medication at all or minimal dosages of the medications diluted with vitamins and saline solution or dextrose solution. Lavin also paid kickbacks to patients to induce them to continue to attend the clinics.
During the trial, the evidence revealed that the defendants had caused the falsification of progress notes on “infusion therapy sheets” in the patients’ files to make it appear that the patients were receiving medications as billed to Medicare. In truth, however, patients were not receiving the medications as noted on the sheets and billed to Medicare. In addition, the government presented expert testimony that it was actually impossible for patients to receive the dosages of medications as billed to Medicare. The expert also testified that these medications were normally provided by injection, not by infusion, and that – contrary to the practice at the two clinics – Neupogen and Procrit should not be mixed together, or with saline solution.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Marshall’s Service for its assistance in returning this fugitive to the Southern District of Florida. The health care fraud case was prosecuted by Assistant U.S. Attorney Barbara Martinez.
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.
Hankinson Man Sentenced on Federal Firearm ChargesRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on Feb. 7, 2013, Anthony Nathaniel Hayes, Jr. of Hankinson, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on charges of possession of firearms and ammunition by a convicted felon and possession of an unregistered firearm.
Judge Erickson sentenced Hayes, Jr. to nine and one-half years’ imprisonment to be followed by three years of supervised release. Hayes, Jr. was ordered to pay a $100 special assessment to the Crime Victim's Fund.
Hayes, Jr., 30, pleaded guilty on Aug. 15, 2012, to possessing four firearms and various ammunition including a stolen firearm and a silencer. The incident occurred in the District of North Dakota.
Federal firearms statutes prohibit possession of firearms by a convicted felon.According to the indictment filed, Hayes, Jr. Was previously convicted of assault in the third degree in Anoka County, Minnesota on July 10, 2006.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
Gulfport Man Found Guilty on Federal Gun ChargesRead the Press Release
Gulfport, Miss - Albert Craft, Jr., 29, of Gulfport, was found guilty by a jury in U.S. District Court today of possession of a firearm by a convicted felon, announced United States Attorney Gregory K. Davis.
Craft will be sentenced on May 15, 2013 and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol Tobacco and Firearms, the Mississippi Bureau of Narcotics, and the Gulfport Police Department. It was prosecuted by Assistant United States Attorney Annette Williams.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Gulfport Man Found Guilty on Federal Gun ChargesRead the Press Release
Gulfport, Miss - Albert Craft, Jr., 29, of Gulfport, was found guilty by a jury in U.S. District Court today of possession of a firearm by a convicted felon, announced United States Attorney Gregory K. Davis.
Craft will be sentenced on May 15, 2013 and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol Tobacco and Firearms, the Mississippi Bureau of Narcotics, and the Gulfport Police Department. It was prosecuted by Assistant United States Attorney Annette Williams.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Our nation-wide commitment to reducing gun crime in America.
Grand Jury Returns Indictment Charging Jacksonville Man with Conspiracy to Distribute Crack CocaineRead the Press Release
Springfield, Ill. – A grand jury has returned a seven-count indictment against a Jacksonville, Ill., man, Michael Smith, 36, of the 200-block of Howe Street, for distribution of crack cocaine and heroin. Smith was charged last week by criminal complaint with possession with intent to distribute 280 grams or more of crack cocaine on or about Jan. 16, 2013.
The indictment charges Smith with conspiracy to distribute 280 grams or more of crack cocaine (one count); possession of 280 grams or more of crack cocaine with intent to distribute (one count); possession of heroin with intent to distribute (one count); and four counts of distribution of crack cocaine in December 2012 and January 2013.
The affidavit filed in support of the criminal complaint alleges that in December 2012 and January 2013, law enforcement officers with DEA and the Central Illinois Enforcement Group made controlled purchases of crack cocaine from Smith. Agents also executed a federal search warrant at Smith’s residence on Jan. 16, 2013. Officers recovered suspected marijuana and a Highpoint 9mm semi-automatic pistol and ammunition, as well as approximately 564 grams of crack cocaine and approximately 80 grams of heroin from under the hood of a pickup truck.
U.S. Magistrate Judge Byron G. Cudmore has ordered that Smith remain detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty for conspiracy to distribute 280 grams or more of crack cocaine and for possession with intent to distribute 280 grams or more of crack cocaine is a mandatory minimum 10 years to life in prison. If the defendant has a prior drug felony conviction, the mandatory minimum penalty is 20 years to life in prison. For possession of heroin with intent to distribute and for each count of distribution of crack cocaine, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the Drug Enforcement Administration; the Central Illinois Enforcement Group; the Jacksonville Police Department; the Morgan County Sheriff’s Office; and Illinois State Police District Nine. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Grand Jury Returns Indictment Charging Jacksonville Man with Conspiracy to Distribute Crack CocaineRead the Press Release
Springfield, Ill. – A grand jury has returned a seven-count indictment against a Jacksonville, Ill., man, Michael Smith, 36, of the 200-block of Howe Street, for distribution of crack cocaine and heroin. Smith was charged last week by criminal complaint with possession with intent to distribute 280 grams or more of crack cocaine on or about Jan. 16, 2013.
The indictment charges Smith with conspiracy to distribute 280 grams or more of crack cocaine (one count); possession of 280 grams or more of crack cocaine with intent to distribute (one count); possession of heroin with intent to distribute (one count); and four counts of distribution of crack cocaine in December 2012 and January 2013.
The affidavit filed in support of the criminal complaint alleges that in December 2012 and January 2013, law enforcement officers with DEA and the Central Illinois Enforcement Group made controlled purchases of crack cocaine from Smith. Agents also executed a federal search warrant at Smith’s residence on Jan. 16, 2013. Officers recovered suspected marijuana and a Highpoint 9mm semi-automatic pistol and ammunition, as well as approximately 564 grams of crack cocaine and approximately 80 grams of heroin from under the hood of a pickup truck.
U.S. Magistrate Judge Byron G. Cudmore has ordered that Smith remain detained in the custody of the U.S. Marshals Service.
If convicted, the statutory penalty for conspiracy to distribute 280 grams or more of crack cocaine and for possession with intent to distribute 280 grams or more of crack cocaine is a mandatory minimum 10 years to life in prison. If the defendant has a prior drug felony conviction, the mandatory minimum penalty is 20 years to life in prison. For possession of heroin with intent to distribute and for each count of distribution of crack cocaine, the statutory penalty is up to 20 years in prison.
The charges are the result of an investigation by the Drug Enforcement Administration; the Central Illinois Enforcement Group; the Jacksonville Police Department; the Morgan County Sheriff’s Office; and Illinois State Police District Nine. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Gang Member Sentenced to 13 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
PORTLAND, Ore. – Pedro Cruz Gonzales, 33, of Portland, Oregon, was sentenced by the Honorable Robert E. Jones to 13 years in federal prison following the defendant’s guilty plea to sex trafficking of a minor. Upon his release from prison, the defendant will serve a five year term of supervised release.
In pleading guilty, the defendant admitted that between August 2011 and September 2011, he recruited, enticed, harbored, transported, provided, obtained, and maintained a minor female knowing and in reckless disregard of the fact that she would be caused to engage in a commercial sex act.
Prior to imposing the sentence, Judge Jones recounted the defendant’s criminal history, his gang membership, the nature of the crime and then noted that the defendant was “a very bad, bad and dangerous man” who “engaged in one of the worst forms of a crime, sex trafficking with a minor.” In imposing the 13 year sentence, the Court directly addressed the defendant and told him, “Society needs to be protected from you.”
“We could not agree with Judge Jones more,” stated U.S. Attorney S. Amanda Marshall. “The prosecution of sex trafficking cases is a priority for the U.S. Attorney’s Office and sentences such as this send a powerful message that sex trafficking is a horrendous crime that we will aggressively prosecute.”
“Mr. Gonzales exploited one of the most vulnerable populations in society, runaway teenage girls, by preying upon their youth, vulnerabilities, and desperate circumstances,” said Multnomah County District Attorney Rod Underhill. “Cases such as this highlight the collaborative efforts of law enforcement and victim service groups in investigating and prosecuting these cases, as well as the continued need for preventative measures to ensure kids never find themselves in this situation in the first place.”
This case was investigated by Portland Police Bureau East Precinct Prostitution Coordination Detail, the Portland Police Bureau’s Minor Victims of Sex Trafficking Unit, the FBI’s Child Exploitation Task Force, and Immigration and Customs Enforcement Homeland Security Investigations. Sexual Assault Resource Center helped with providing victim assistance. Special Assistant U.S. Attorney Glen “J.R.” Ujifusa was the lead prosecutor on the case, and was assisted by Assistant U.S. Attorney Scott Kerin. Mr. Ujifusa is a Multnomah County Deputy District Attorney who also prosecutes sex trafficking cases in federal court as a member of the U.S. Attorney’s Office Gang and Sex Trafficking Unit.
Former State Corrections Accountant Pleads Guilty to Embezzling $77,000 from Various Department FundsRead the Press Release
Springfield, Ill. – A former employee of the Illinois Department of Corrections, Mary Ann Bohlen, 46, of Edinburg, Ill., admitted today that she embezzled approximately $77,000 from various department funds over a period of four years, from 2007 to 2011. During her appearance before U.S. Magistrate Judge Byron Cudmore, Bohlen waived indictment and entered pleas of guilty to two counts of mail fraud and two counts of embezzlement of government funds as charged in an information filed Feb. 1, 2013, by the U.S. Attorney’s Office for the Central District of Illinois.
According to court documents, Bohlen was employed from February 2004 until Feb. 15, 2012, as Assistant Deputy Director and Supervisor of Central Accounting for the Division of Fiscal Accounting Compliance. In her position, Bohlen had access to various financial accounts and funds including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund. In April 2006, Bohlen became treasurer of the Illinois Correctional Employees Memorial Association, an organization of IDOC employees formed to recognize and memorialize IDOC employees who were killed or suffered permanent disability in the line of duty. Bohlen actively solicited employees to become members of the association, which was funded by membership fees, fundraisers and donations.
Bohlen admitted that from June 22, 2007, to July 19, 2011, she embezzled more than $50,000 from the Illinois Correctional Employees Memorial Association. As a further part of the scheme, Bohlen admitted that from about Mar. 6, 2008, to April 27, 2011, she embezzled more than $27,000 from other various funds, including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund, to conceal and replace the funds she had embezzled from the Memorial Association.
Bohlen admitted that she wrote more than $50,000 worth of checks drawn on the Memorial Associations’ bank account which were payable to herself, to cash, and to a business in Owaneco, Ill., where she was an employee, partner or accountant. The business sold various products including Illinois wine, cheese, pizza, elk products, soy candles and other items.
Sentencing for Bohlen is scheduled on Jun. 10, 2013, before U.S. District Judge Sue E. Myerscough. Each count of mail fraud carries a statutory penalty of up to 20 years in prison; each count of embezzlement carries penalties of up to 10 years in prison.
The charges were investigated by the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
Former State Corrections Accountant Pleads Guilty to Embezzling $77,000 from Various Department FundsRead the Press Release
Springfield, Ill. – A former employee of the Illinois Department of Corrections, Mary Ann Bohlen, 46, of Edinburg, Ill., admitted today that she embezzled approximately $77,000 from various department funds over a period of four years, from 2007 to 2011. During her appearance before U.S. Magistrate Judge Byron Cudmore, Bohlen waived indictment and entered pleas of guilty to two counts of mail fraud and two counts of embezzlement of government funds as charged in an information filed Feb. 1, 2013, by the U.S. Attorney’s Office for the Central District of Illinois.
According to court documents, Bohlen was employed from February 2004 until Feb. 15, 2012, as Assistant Deputy Director and Supervisor of Central Accounting for the Division of Fiscal Accounting Compliance. In her position, Bohlen had access to various financial accounts and funds including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund. In April 2006, Bohlen became treasurer of the Illinois Correctional Employees Memorial Association, an organization of IDOC employees formed to recognize and memorialize IDOC employees who were killed or suffered permanent disability in the line of duty. Bohlen actively solicited employees to become members of the association, which was funded by membership fees, fundraisers and donations.
Bohlen admitted that from June 22, 2007, to July 19, 2011, she embezzled more than $50,000 from the Illinois Correctional Employees Memorial Association. As a further part of the scheme, Bohlen admitted that from about Mar. 6, 2008, to April 27, 2011, she embezzled more than $27,000 from other various funds, including the Inmate Benefit Fund, Inmate Commissary Fund, and the Reimbursement and Education Fund, to conceal and replace the funds she had embezzled from the Memorial Association.
Bohlen admitted that she wrote more than $50,000 worth of checks drawn on the Memorial Associations’ bank account which were payable to herself, to cash, and to a business in Owaneco, Ill., where she was an employee, partner or accountant. The business sold various products including Illinois wine, cheese, pizza, elk products, soy candles and other items.
Sentencing for Bohlen is scheduled on Jun. 10, 2013, before U.S. District Judge Sue E. Myerscough. Each count of mail fraud carries a statutory penalty of up to 20 years in prison; each count of embezzlement carries penalties of up to 10 years in prison.
The charges were investigated by the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.