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24 January 2013
January Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 32 indictments charging 32 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Juan Torres-Martinez, age 36, is charged in a three-count indictment. Count I of the indictment charges Torres-Martinez with misuse of a Social Security Number on or about May 12, 2009. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II of the indictment alleges on or about May 12, 2009, Torres-Martinez made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III charges that on or about May 12, 2009, Torres-Martinez misused a Social Security Card and a State of Kansas Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gilberto Acero-Garcia, age 38, of Fremont, Nebraska, is charged in a three-count indictment. Count I of the indictment charges Acero-Garcia with misuse of a Social Security Number on or about December 4, 2012. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Counts II and III charge that between on or about January 1, 2010, and up to and including January 16, 2013, and between January 1, 2011, and up to and including January 16, 2013, respectively, Acero-Garcia harbored illegal aliens in the United States for the purpose of commercial advantage and private gain, by employing the illegal aliens at DCS Sanitation Management, Inc. The maximum possible penalty for each count includes 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Cory D. Allemang, age 38, of Clearwater, Nebraska, is charged in a three count indictment. Counts 1 and 2 of the indictment charge that on or about December 13, 2011, and between on or about November 2, 2011, and on or about January 6, 2012; respectively, Allemang sold approximately 300 pounds of sausages and approximately 400 pounds of beef jerky, by representing that the meat products had been inspected by the United States Department of Agriculture (USDA), when in fact, the meat products had not been inspected or passed by the USDA. The maximum penalty for each of these counts include imprisonment of 3 years, a fine of $250,000, 1 year supervised release, and a special assessment of $100. Count 3 of the indictment charges that on or about February 3, 2012, Allemang represented that various deer meat products had been inspected and passed by USDA, when in fact, the deer meat products had not been inspected or passed by USDA. The maximum penalty for this count includes imprisonment of 1 year, a fine of $100,000, 1 year supervised release, and a special assessment of $100.
* Jossue Gabriel Alva-Perez, age 19, of LaVista, is charged in the first count of an indictment with production of child pornography on or about January 3, 2013. The maximum possible penalty for this count includes imprisonment of not less than 15 years or more than 30 years, a $250,000 fine, 5 years of supervised release, and a $100 special assessment. Count II charges Alva-Perez with receipt and distribution of child pornography from on or about October 18, 2012, and continuing through January 8, 2013. If convicted, the maximum possible penalty includes imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. Alva-Perez is charged in Count III with possession of child pornography from on or about January 14, 2013. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Margarito Banuelos-Muro, age 38, of Mitchell, Nebraska, is charged with illegal reentry into the United States on or about December 12, 2012, following deportation as an aggravated felon. The maximum possible penalty if convicted includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Alex M. Castro-Funes, age 24, is charged with distributing 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine on or about October 15, 2012. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* Mayra Cortes-Flores, age 31, of Omaha, is charged in a two-count indictment. Count I of the indictment charges Cortes-Flores with misuse of a Social Security Number on or about August 31, 2010. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II charges that on or about August 31, 2010, Cortes-Flores misused a Social Security Card and a Nebraska Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Arnoldo Agustin Escarsega Mendez, age 25, of Omaha, is charged with illegal reentry into the United States on or about January 9, 2013, following deportation as a felon. The maximum possible penalty if convicted includes imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Daniel Galindo, age 18, is charged in a two count indictment. The Indictment alleges that on or about October 29, and November 7, 2012, the defendant distributed 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty for each count includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* Victor Garcia-Ochoa, age 32, also known as Eduardo Najera-Gonzalez, of Grand Island, Nebraska, is charged with illegal reentry into the United States on or about December 12, 2012, following deportation as an aggravated felon. The maximum possible penalty if convicted includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Edgar Faustino Gonzalez-Garcia, age 25, is charged with illegal reentry into the United States on or about January 14, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* William G. Hallowell, age 27, of Walthill, Nebraska, is charged in a one-count indictment. Count I alleges that on or about July 7, 2012, Hallowell broke into a residence in Walthill, Nebraska, within the Omaha Indian Reservation, with the intent to steal electronic equipment and other property. The maximum penalty includes imprisonment of 10 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100.
* Marquis Harrington, age 44, of Omaha, is charged with one count of mail fraud from on or about February 1, 2008. The indictment alleges Harrington fraudulently obtained housing assistance from the Douglas County Housing Authority by submitting an application that intentionally misrepresented the number of children living with him, his income, and his place of residence. The maximum possible penalty for this count includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count II of the indictment charges that on or about February 29, 2008, Harrington made a false statement to HUD. Harrington made a false statement for the purpose of obtaining a loan and advance of credit from JP Morgan Chase Bank, with the intent that this loan and advance be offered and accepted by HUD for insurance. The maximum possible penalty for this count includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jose Hernandez-Leon, age 24, of Columbus, Nebraska, is charged with illegal reentry into the United States on or about December 13, 2012, following deportation as an aggravated felon. The maximum possible penalty if convicted includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Andres Hernandez-Martinez, is charged in a three-count indictment. Count I of the indictment charges Hernandez-Martinez with misuse of a Social Security Number on or about October 3, 2012. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II of the indictment alleges on or about October 3, 2012, Hernandez-Martinez made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III charges that on or about October 3, 2012, Hernandez-Martinez misused a Social Security Card and a State of Texas Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Victor Ibanez-Barragan, age 33, of Omaha, is charged in a two-count indictment. Count I of the indictment charges Ibanez-Barragan with misuse of a Social Security Number on or about June 28, 2011. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II charges that on or about June 28, 2011, Ibanez-Barragan misused a Social Security Card knowing that said document was not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Juan Jimenez-Ruiz, age 27, is charged in a three-count indictment. Count I of the indictment charges Jimenez-Ruiz with misuse of a Social Security Number on or about August 2, 2009. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II of the indictment alleges on or about August 2, 2009, Jimenez-Ruiz made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III charges that on or about August 2, 2009, Jimenez-Ruiz misused a Social Security Card and a State of Kansas Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Luis Jordan, age 36, of Grand Island, is charged in a three count indictment. Counts I and II allege the defendant distributed 5 grams or more of actual methamphetamine on or about November 4, and November 8, 2011. The maximum possible penalty for each count includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. Count III alleges that on or about October 20, 2012, the defendant possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* Ryan Keiter, age 25, of Lincoln, is charged in the first count of an indictment with receipt and distribution of child pornography from at least on or about October 24, 2008, and continuing to on or about April 13, 2012. If convicted, the maximum possible penalty includes imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. Keiter is charged in Count II with possession of child pornography from on or about April 13, 2012. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment. The indictment also alleges that property used or intended to be used as part of these violations should be forfeited to the United States.
* Christopher Lewis, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about November 5, 2012. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $848.00 in United States currency seized from the defendant on November 5, 2012, should be forfeited to the United States.
* Carlos Linares-Valmores, age 27, is charged in a four-count indictment. Count I of the indictment charges Linares-Valmores with misuse of a Social Security Number on or about August 9, 2012. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II of the indictment alleges on or about August 9, 2012, Linares-Valmores made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III charges that on or about August 9, 2012, Linares-Valmores misused a Social Security Card and a State of Iowa Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count IV of the indictment charges Linares-Valmores with illegal reentry into the United States on or about January 17, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Juan Luna-Ochoa, age 32, of Omaha, is charged with illegal reentry into the United States on or about December 14, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Darrin L. Mallatt, age 30, of Lincoln, is charged in the first count of an indictment with receipt and distribution of child pornography from at least on or about October 8, 2008, and continuing to on or about December 3, 2012. If convicted, the maximum possible penalty includes imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. Mallatt is charged in Count II with possession of child pornography from on or about December 3, 2012. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Omar Manuel-Marcial, age 24, of Omaha, is charged with illegal reentry into the United States on or about January 1, 2013, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Rolando Mejia-Mendez, age 25, of Wakefield, Nebraska, is charged with illegal reentry into the United States on or about November 7, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Ismael Pena-Velazquez, age 35, of Omaha, is charged with illegal reentry into the United States on or about December 14, 2012, after deportation or removal. The maximum possible penalty if convicted includes imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Nick Reams, age 55, of St Paul, Nebraska, is charged with possession with intent to distribute 5 grams or more of actual methamphetamine on or about August 24, 2012. The maximum possible penalty includes imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 5 year term of supervised release and a $100 special assessment.
* Ricardo Reyes, age 33, of Omaha, is charged in the first count of an indictment with receipt and distribution of child pornography from on or about October 11, 2012, and continuing through January 15, 2013. If convicted, the maximum possible penalty includes imprisonment of not less than 5 years or more than 20 years, a fine of $250,000, supervised release for life, and a $100 special assessment. Reyes is charged in Count II with possession of child pornography from on or before January 13, 2013. The maximum possible penalty for this count includes imprisonment of 10 years, a $250,000 fine, supervised release for life, and a $100 special assessment.
* Jose Roman-Felix, age 27, of Omaha, is charged with illegal reentry into the United States on or about January 4, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted includes imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Valentin Ruiz-Cajiga, age 28, is charged in a three-count indictment. Count I of the indictment charges Ruiz-Cajiga with misuse of a Social Security Number on or about September 6, 2012. The maximum penalty for this count includes imprisonment of 5 years, a fine of $250,000, followed by a term of supervised release of 3 years, and a special assessment of $100. Count II of the indictment alleges on or about September 6, 2012, Ruiz-Cajiga made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III charges that on or about September 6, 2012, Ruiz-Cajiga misused a Social Security Card and a State of Colorado Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count includes imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Santiago J. Tijerina, also known as Jimmy Ostos or Samuel Jimmy Ostos, of Lexington, Nebraska, is charged with failure to register as a Sex Offender in the State of Nebraska from between April, 2012, and December 22, 2012. The maximum penalty for this count includes imprisonment of 10 years, a $250,000 fine, a term of supervised release for life, and a special assessment of $100.
* Todd Tingelhoff, age 46, of Omaha, is charged with possession with intent to distribute 50 grams or more of actual methamphetamine on or about December 27, 2012. The maximum possible penalty includes imprisonment of not less than 10 years and up to life years, a $10 million fine, a 5 year term of supervised release and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in the indictment, including but not limited to $800.00 in United States currency seized from the defendant’s wallet and $7,705.00 in United States currency seized from a lockbox in the defendant’s vehicle, should be forfeited to the United States.Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 24, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
CASEY LEE MARTIN, a 31-year-old resident of Hays, appeared on a charge of assault with a dangerous weapon. He is currently detained. If convicted of this charge, MARTIN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
MARK EDWIN ABRESCH, a 54-year-old resident of Great Falls, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. He is currently detained. If convicted of these charges, ABRESCH faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $5,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Drug Enforcement Administration.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 24, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
COLEEN FURTHMYRE, a 46-year-old resident of Helena (formerly of Anaconda), appeared on charges of wire fraud and theft of government money. She is currently released on special conditions. If convicted of these charges, FURTHMYRE faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Timothy J. Racicot is the prosecutor for the United States. The investigation was a cooperative effort between the U.S. Secret Service and the U.S. Department of Health and Human Services - Office of Inspector General.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Individual Pleads Guilty to ID Fraud and Impersonating an OSHA Official in Wake of Gulf Oil SpillRead the Press Release
Connie M. Knight, 46, previously of Belle Chasse, La., pleaded guilty in federal court in New Orleans today to three felony criminal charges and one misdemeanor criminal charge for creating false identification documents an impersonating a federal official, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Dana Boente, U.S. Attorney for the Eastern District of Louisiana.
According to the plea agreement, in the wake of the Deepwater Horizon oil spill, Knight impersonated a high-ranking Occupational Safety and Health Administration (OSHA) hazardous waste safety instructor and inspector in order to collect money from individuals who hoped to work on the cleanup effort that followed the spill. The plea agreement describes Knight’s methods, which included creating a false federal identification badge declaring that she was an “OSHA Master Level V Instructor and Inspector.” In reality, OSHA has no such designation. Knight also created false federal identification badges for her employees, who believed that they were working for OSHA. The employees were residents of Southeast Asian fishing communities in Southern Louisiana, and provided Knight a way to access those communities.
From the time of the spill through the end of 2010, many fisheries were closed and Gulf fishermen were seeking other means of employment. Knight held fake OSHA training seminars and assured attendees that they would receive lucrative employment working on the Deepwater Horizon oil spill cleanup once they paid for and completed her course. Knight did not, however, actually have any connection to the cleanup effort.
Court documents also describe the training seminars themselves. Knight required each attendee to pay between $150 and $400 cash to enter a class. She claimed her classes satisfied the various safety requirements that all individuals were to complete in order to be employed at a Deepwater Horizon hazardous waste cleanup site. Knight’s classes lasted as little as two hours, while the legitimate certifications would take at least six days of classroom training and three days of on-site training. Though many of her attendees were Vietnamese, Laotian or Cambodian, Knight spoke only English at the classes, and all materials were in English. At least some attendees later gained access to hazardous waste cleanup sites based on the fraudulent certifications created by Knight.
Producing fraudulent federal identification documents carries a maximum sentence of 15 years in prison and a fine of $250,000. Possessing a fraudulent federal identification document carries a maximum sentence of one year in prison and a fine of $100,000. The two counts of falsely impersonating a federal employee each carry a maximum sentence of three years in prison and a fine of $250,000.
This case was investigated by the U.S. Department of Labor Office of Inspector General and the U.S. Environmental Protection Agency Criminal Investigation Division, with assistance from the Occupational Safety and Health Administration, the FBI, and investigators from the Florida Fish and Wildlife Conservation Commission and the Plaquemines Parish, La., Sheriff’s office.
The case is being prosecuted by Patrick M. Duggan of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Indictment: Credit Counseling Firm Laundered Cash from Marijuana TraffickingRead the Press Release
KANSAS CITY, KAN. – Two people have been charged with laundering cash from marijuana trafficking through a non-profit credit counseling agency in Kansas City, U.S. Attorney Barry Grissom said today.
Mendy Read-Forbes, 37, Platte City, Mo., and Laura Shoop, 46, Platte City, Mo., are charged in a superseding indictment with one count of conspiracy to commit money laundering, one count of conspiracy to possess with intent to distribute marijuana and one count of possession with intent to distribute marijuana. In addition, Read-Forbes is charged with 16 counts of money laundering and Shoop is charged with eight counts of money laundering.
The indictment alleges that Forbes and Newhard Credit Solutions was registered as a nonprofit organization that provided credit counseling services to people who were in bankruptcy proceedings. Forbes held herself out as the owner and operator of the agency. Shoop was an acquaintance of Forbes who worked at various times for the agency.
In March and April 2012, Forbes was introduced to an undercover officer posing as a marijuana dealer. Forbes offered to devise a scheme to launder the dealer’s drug proceeds. As part of the scheme, Forbes offered to deposit money given to her by the drug dealer into the bank accounts of Forbes and Newhard Credit Solutions or related companies and then to return the money to the dealer via checks, money orders or wire transfers. The bank accounts were in Kansas.
To make the transactions appear legitimate, Forbes gave the drug dealer a contract titled “Purchase and Sale of Business Agreement.” The contract, bearing the signature of the drug dealer and another person known to the grand jury, made it appear that the marijuana dealer was purchasing assets of FCP, Inc., a corporation controlled by Forbes and another person.
To make it appear that the drug dealer was engaged in business as a certified credit counselor with Forbes and Newhard Credit Solutions, Forbes gave the drug dealer a certificate saying he had completed training as a bankruptcy specialist.
In addition, Forbes created a company called Maximum Lawn Care, LLC, and opened bank accounts where cash from the drug dealer was deposited.
Forbes agreed not to charge a fee for laundering the drug dealer’s money until she had laundered $170,000 so that the dealer could use the funds to purchase more marijuana. Forbes also agreed to let the drug dealer store 40 pounds of marijuana at her house.
If convicted, they face a maximum penalty of 20 years and a fine up to $250,000 on the charge of conspiracy to commit money laundering and each of the money laundering counts; and a maximum penalty of five years and a fine up to $250,000 on each of the two marijuana counts.
The Kansas Bureau of Investigation, the U.S. Secret Service, the Internal Revenue Service and the Department of Housing and Urban Development investigated. Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble are prosecuting.
OTHER INDICTMENTS
Sean C. Costa, 24, Wichita, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Jan. 9, 2012, in Wichita, Kan.
Costa initially was charged in a criminal complaint filed Jan. 17 in U.S. District Court in Wichita. The complaint alleged that on Jan. 9 the Wichita Police Department was called to a report of shots fired at the McDonald’s restaurant at 6350 W. Kellogg in Wichita. The victims reported that the disturbance had begun when another car tried to cut in front of them in the drive thru. They said a male in the other car had stepped out of the vehicle and fired a shotgun at them. The blast struck the post between the driver’s side front and back doors of the victims’ car.
While investigating the case, Wichita police officers served a search warrant at 2440 Newell in Wichita. Costa was arrested and police recovered a Mossberg pump action shotgun from a crawl space next to Costa’s bed. Costa denied shooting the gun at McDonald’s.
Because had a prior felony conviction on a charge of aggravated assault in 2011 he was prohibited from possessing a firearm under federal law.
If convicted, he faces a maximum penalty 10 years in federal prison and a fine up to $250,000. Assistant U.S. Attorney Matt Treaster is prosecuting.
Carin Leon-Pacheco, 38, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being convicted of a felony an deported. He was found Sept. 25, 2012, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Brandon Milhouse, 27, Overland Park, Kan., is charged with possession of 43 counterfeit $100 bills and nine counterfeit $20 bills. The crime is alleged to have occurred Nov. 27, 2012, in Johnson County, Kan.
If convicted, he faces a maximum penalty of 25 years in federal prison and a fine up to $250,000. The U.S. Secret Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Alleges Social Security ScamRead the Press Release
Raylene Wilson, 43, of Salisbury, Maryland, was charged today by Indictment with one count of identity theft and one count of using a false Social Security number, announced United States Attorney Zane David Memeger.
If convicted, Wilson faces a maximum possible sentence of 20 years in prison; a $500,000 fine; three years of supervised release; and a $200 special assessment.
The case was investigated by the United States Postal Inspection Service, the Social Security Administration’s Office of Inspector General, and Westtown-East Goshen Police Department and is being prosecuted by Assistant United States Attorney Vineet Gauri.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Houston Man Sentenced for Health Care FraudRead the Press Release
More than $600,000 stolen from Medicare based on false claims
SHREVEPORT, La: United States Attorney Stephanie A. Finley announced today that Godspower Joseph Essang, 35, of Houston, Texas, was sentenced today, to 37 months in federal prison with three years supervised release for Medicare fraud.
Essang was also ordered to pay $613,096 in restitution to Medicare. Judge Maurice S. Hicks immediately remanded Essang into the custody of the U. S. Marshal’s Service to begin serving his sentence.
Essang was sentenced based on his Sept. 28, 2012, guilty plea to one count of health care fraud. During the guilty plea hearing, Essang admitted owning and operating Shalom Equipment, a durable medical equipment company, located on Woodward Avenue in Shreveport. Shalom engaged in the business of providing what were referred to as “ortho kits,” which were braces for various parts of the body. Essang admitted paying individuals to provide him with their Medicare beneficiaries and physicians information. He then used this identifying information to file false claims with Medicare for providing the “ortho kits” to Medicare beneficiaries who did not need, were not prescribed and/or did not receive the items. Essang admitted that between Aug. 12, 2007 and Oct. 21, 2008, he filed approximately 736 claims, billing Medicare for $1,223,255. Medicare actually paid out $613,096 on the claims.
“Mr. Essang’s scheme was designed to defraud a program whose sole purpose is providing medical services to the elderly and the disabled,” U.S. Attorney Stephanie A. Finley stated. “His actions defrauded the program and, ultimately, U.S. taxpayers. This office will continue to vigorously pursue charges against those who steal from such programs.”
“Durable medical equipment fraud is a major problem that costs taxpayers billions in lost and wasted dollars,” said William W. Root, Assistant Special Agent in Charge, U.S. Department of Health and Human Services. “Today’s sentencing is the culmination of a concerted and joint effort by our Inspector General’s Office, the U.S. Attorney’s Office and the Federal Bureau of Investigation to quickly bring to justice those who prey on our elderly for financial gain.”
The FBI and the U. S. Department of Health and Human Services, Office of the Inspector General, conducted the investigation. Assistant U.S. Attorney C. Mignonne Griffing prosecuted the case.
Heroin Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
January 24, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that JUAN RUANO, 49, a citizen of Guatemala last residing in Stamford, was sentenced today by United States District Judge Janet C. Hall in New Haven to 130 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, on December 19, 2011, RUANO and his wife, Saira Ruano, were arrested in the parking lot of a Windsor Locks hotel moments after taking delivery of luggage containing approximately 11 kilograms of heroin. The heroin was secreted in 15 cans marked as refried beans that had been smuggled into the United States from Guatemala City, Guatemala. A search of RUANO’s car revealed a black plastic trash bag containing $18,000 in cash intended for other members of the conspiracy who arranged the transport the heroin.
Subsequent investigation revealed that from approximately May 2010 through December 2011, more than $200,000 in currency exchanges were transacted on joint back accounts owned by RUANO and his wife.
RUANO has been detained since his arrest on December 19, 2011. On September 28, 2012, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, one kilogram or more of heroin.
RUANO has forfeited the $18,000 seized at the time of his arrest.
On December 4, 2012, Saira Ruano pleaded guilty to structuring financial transactions to avoid currency reporting requirements. She awaits sentencing.
This matter has been investigated by the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection, with the assistance of the Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Hayward Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
Oakland, Calif. – Naushad Buksh today pleaded guilty to filing a false tax return and aiding and assisting in the preparation of false tax returns, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge Jose M. Martinez announced.
According to his plea agreement, Buksh has prepared tax returns for approximately 20 years. During 2007, 2008, 2009 and 2010, he operated a tax return preparation business in Hayward, Calif., and was responsible for all income and expenses at that business. Buksh intentionally signed and filed with the IRS false U.S. Individual Income Tax Returns for 2007 through 2010, which underreported his gross receipts by $599,226 and resulted in a tax loss of $160,528.
Buksh admitted in his plea that, in addition to filing false returns for himself, he also prepared tax returns on behalf of his clients that included false deductions and credits for the purpose of creating fraudulent tax refunds. Buksh knew the deductions and credits were false because he fabricated them. Some of the false deductions and credits included home mortgage interest and points, unreimbursed employee expenses, inflated education credits, student loan interest and/or tuition fee deductions, false personal property tax deductions, and false or inflated tax preparation fees.
Buksh, 56, of Hayward, Calif., was charged on May 15, 2012, with four counts of making and subscribing false tax returns and 41 counts of aiding and assisting in the preparation of false tax returns. He pleaded guilty to one count of each. Buksh is next scheduled to appear in federal court in Oakland at 2 p.m. on April 11 for sentencing before United States District Court Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of making and subscribing to a false income tax return, in violation of Title 26, U.S.C § 7206(1), and aiding and assisting in the preparing of false tax returns, in violation of Title 26, U.S.C § 7206(2), is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Moore is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Gainesville Woman Sentenced to Federal Prison on Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, FL - U.S. District Judge Timothy J. Corrigan sentenced Regina Ward (31, Gainesville) yesterday to 13 months’ imprisonment for charges related to identity theft, fraud against the United States, and Treasury check fraud. Ward was also ordered to serve a 3-year term of supervised release following her incarceration, and to pay restitution to the Internal Revenue Service in the amount of $6,500.According to court documents, in February 2012, Ward met with an undercover agent (UC) posing as an individual willing and capable of cashing United States Treasury checks without proper identification. Ward presented the UC with a Treasury check in the amount of $12,727.81, in the name of another individual. Ward negotiated a check cashing fee with the UC and advised that she had other checks that she needed to cash. Ward sold the Treasury check to the UC for $6,500.
Later that same month, Ward met with the UC again and attempted to cash two additional Treasury checks. During the meeting, Ward sold ten stolen identities for the purpose of filing fraudulent federal income tax returns. Specifically, Ward provided names, social security numbers and dates of birth for ten individuals. She also provided drivers’ license numbers and Turbo Tax pin numbers from prior years for some of the individuals. She sold these identities for $850 each.
The case was investigated by Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Four Sentenced to Prison in Florida<br /> Community Mental Health Center CaseRead the Press Release
The owners of three Miami-area assisted living facilities and an affiliated psychologist were sentenced to prison today in connection with a health care fraud scheme, involving now-defunct Miami-area health provider Health Care Solutions Network Inc. (HCSN), in which Medicare was billed for mental health treatments that were unnecessary or not provided.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
U.S. District Judge Cecilia M. Altonaga sentenced Serena Joslin, 32, of Looneyville, W.Va., to 63 months in prison, following her previous guilty plea to conspiracy to commit health care fraud. Raymond Rivero, 55, Daniel Martinez, 46, and Ivon Perez, 50, all of Miami, were each sentenced to 28 months in prison. All three had previously pleaded guilty to conspiracy to violate the anti-kickback statute.
According to court documents, HCSN operated community mental health centers both in Miami and North Carolina, including partial hospitalization programs (PHP) – a form of intensive treatment for severe mental illness. HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not provided.
In Miami, HCSN obtained beneficiaries by paying kickbacks to owners and operators of assisted living facilities (ALF) or by otherwise recruiting them from the facilities and from nursing homes. Rivero, Martinez and Perez admitted during their guilty pleas to referring Medicare beneficiaries to HCSN in exchange for cash bribes. Rivero, former owner of Miami-based God Is First ALF; Martinez, former owner of Homestead, Fla.-based Mi Renacer ALF; and Perez, former owner of Homestead-based Kayleen and Denis Care Corp., are no longer permitted to operate such facilities as a condition of their guilty pleas.
According to court documents, ALF residents referred to HCSN by Rivero, Martinez and Perez were not qualified to be placed in PHP and were only selected because they had Medicare or state of Florida Medicaid benefits. In some cases, ALF patients suffered from dementia, Alzheimer’s disease or mental retardation, or were otherwise unable to benefit from mental health services.
According to court documents, Joslin, a licensed psychologist, was hired by HCSN in North Carolina in April of 2010 as a clinical coordinator and later promoted to clinical director. In those roles, she conspired with other HCSN employees to fabricate medical documents to substantiate alleged PHP treatment that was medically unnecessary and, in many instances, not even provided to the beneficiaries. Joslin admitted that many of the HCSN patients were unqualified for the PHP program because they suffered from conditions such as mental retardation and dementia, and that she directed therapists to fabricate medical records to support HCSN’s fraudulent billing to the Medicare program. Joslin was also required to surrender her North Carolina license to provide mental health treatment as part of her plea agreement.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
In addition to the prison terms, Judge Altonaga sentenced Joslin, Rivero, Martinez and Perez each to serve three years of supervised release, and ordered them to pay $4,464,728; $90,896; $76,358; and $89,245 in restitution, respectively.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. The cases were investigated by the FBI and HHS-OIG and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Four Nebraskans Indicted for Structuring Currency TransactionsRead the Press Release
United States Attorney Deborah R. Gilg and Tanya T. Brewer, Acting Special Agent in Charge of IRS Criminal Investigation, announced that four Nebraskans were indicted for structuring financial transactions in an effort to defeat legal reporting requirements imposed on financial institutions. “Structuring” refers to the manipulation of cash transactions for the purpose of preventing a financial institution from filing certain reports. For example, federal law requires financial institutions, credit unions, casinos and money service businesses to file a Currency Transaction Report with the Internal Revenue Service whenever a person deposits more than $10,000.00 in cash. The purpose of the law prohibiting structured deposits is to help identify suspicious cash transactions that might be indicative of other criminal activity. A person engaged in structuring might break up a cache of currency in excess of $10,000.00 into multiple deposits for the purpose of keeping the institution from filing the required report. The four individuals indicted by the Grand Jury, in separate and unrelated cases, are as follows:
Peter V. Bristol, age 51 of Omaha, is charged in a 13-count indictment. In Counts 1 through 12 it is alleged that on various dates from on or about May 8, 2009, through on or about April 24, 2011, Bristol structured financial transactions to evade reporting requirements when he made deposits in the amount of approximately $131,504.00 to Security National Bank. Count 13 charges Bristol with structuring financial transactions to evade reporting requirements when he conducted approximately 93 transactions from on or about February 2, 2009, to on or about November 12, 2012, to Security National Bank, in the amount of approximately $878,897.00.
Randy L. Evans, age 59 of Grand Island, is charged in a 15-count indictment. In Counts 1 through 14 it is alleged that on various dates from on or about March 29, 2010, through on or about December 27, 2011, Evans structured financial transactions to evade reporting requirements when he made deposits in the amount of approximately $210,381.00 to Five Points Bank. Count 15 charges Evans with structuring financial transactions to evade reporting requirements when he conducted approximately 449 transactions from on or about January 4, 2010, to on or about February 28, 2012, to Five Points Bank, in the amount of approximately $2,030,322.00.
Arturo W. Torres, age 35 of Bellevue, is charged in a three-count indictment. In Counts 1 and 2 it is alleged that on or about January 6, 2011, and February 24, 2011, respectively, Torres structured financial transactions to evade reporting requirements when he made deposits in the amount of approximately $19,360.00 to First National Bank. Count 3 charges Torres with structuring financial transactions to evade reporting requirements when he conducted approximately 177 transactions from on or about February 6, 2010, to on or about January 31, 2012, to the First National Bank of Omaha, in the amount of approximately $631,289. 00.
Irma Crispin-Gomez, age 41 of Grand Island, is charged in a 16-count indictment. In Counts 1 through 15 it is alleged that on various dates from on or about June 27, 2009, through on or about March 19, 2012, Crispin-Gomez structured financial transactions to evade reporting requirements when she made deposits in the amount of approximately $247,800.00 to Five Points Bank. Count 16 charges Crispin-Gomez with structuring financial transactions to evade reporting requirements when she conducted approximately 423 transactions from on or about January 5, 2009, through on or about March 30, 2012, to Five Points Bank and Wells Fargo Bank, in the amount of approximately $2,082,338.00.
All the counts in all four indictments are punishable by imprisonment of up to 5 years, a fine of up to $250,000.00, or both, to be followed by up to 3 years of supervised release, and a $100 special assessment.
“The structuring of currency is an avenue used by individuals and businesses to conceal the true source of their money,” said Tanya T. Brewer, Acting Special Agent in Charge of IRS Criminal Investigation. “Information from currency reports filed with the IRS provides a paper trail or roadmap for investigations of financial crimes and illegal activities.”
“Financial crimes, especially structuring, are oftentimes a method used to evade payment of taxes lawfully owed to the United States. We will continue to aggressively pursue these crimes in order to protect the millions of Americans that lawfully comply with our tax laws,” according to United States Attorney Deborah R. Gilg
An indictment is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
Four Mid-State Men Indicted for Operating an Illegal Cockfighting EnterpriseRead the Press Release
Howard Gay, 55, of Hohenwald, Tenn., Thomas Hardiman, 64, of Iron City, Tenn., Walter Wooten, 57, of Leoma, Tenn., and Phillip Heidekker, 66 of Bon Aqua, Tenn., were indicted by a federal grand jury on January 17, 2013, and were each charged with three counts relating to their participation in a cockfighting enterprise known as the “Shiloh Club” in Hohenwald, Tenn., announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
The indictment charges each defendant with operating an illegal gambling business, conspiring to operate an illegal gambling business and aiding and abetting an animal fighting venture.
“Cockfighting is a shockingly vicious and cruel pursuit that is illegal in Tennessee and almost always involves illegal gambling,” said U.S. Attorney Jerry Martin. “Leaders of organizations that exist to profit on illegal gambling and other illegal enterprises should expect to face federal prosecution whenever federal statutes are violated.”
According to the indictment, the Shiloh Club had been in operation for more than a generation and had hosted cockfighting derbies every other Saturday between November 2008 and May 2009. The defendants operated and worked for the Shiloh Club and hosted and participated in cockfighting derbies that involved fights between roosters brought from Tennessee and other states.
The defendants facilitated widespread gambling on the outcome of the cockfights in the form of entry fees as well as side bets among spectators. Through the collection of admission fees and entry fees, as well as from the sale of concessions and cockfighting paraphernalia, the defendants made a significant profit. During one cockfighting derby alone, more than $12,300 in entry fees were paid to the Shiloh Club.
In May 2009 federal and state law enforcement executed a federal search warrant at the Shiloh Club and more than 200 individuals were subsequently prosecuted on state charges for being spectators at the cockfight and for gambling and other charges.
If convicted, the defendants each face up to five years in prison and a $250,000 fine, as well as forfeiture of property derived from or used in violation the offenses charged.
The case was investigated by agents with the U.S. Department of Agriculture- Office of Inspector General and the Tennessee Bureau of Investigation, with valuable assistance from the Tennessee Highway Patrol, the Federal Bureau of Investigation, the Williamson County Sherriff’s Department, and the 21st Judicial District Attorney General’s Office. The United States is represented by Assistant U.S. Attorney William F. Abely.Four Indicted for Filing False Federal Income Tax ReturnsRead the Press Release
Four individuals were indicted by a federal grand jury and charged with making and subscribing false federal income tax returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The offenses each carry a statutory maximum sentence of up to 3 years in prison, a $250,000 fine and restitution for the amount of the tax loss.
Anaya Bluiett, 25, of Brooklyn, IL, was charged with three counts of making and subscribing false federal income tax returns for the years 2008, 2009, and 2010.
Terri M. Boatmans, 45, of Belleville, IL, was charged with two counts of making and subscribing false federal income tax returns for the years 2009 and 2010.
Demetrius L. Combs, 21, of East St. Louis, IL, was charged with one count of making and subscribing false federal income tax return for the year 2010.
Gemarian Douglas, 37, of Alorton, IL, was charged with one count of making and subscribing false federal income tax return for the year 2009.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The Indictment is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud call the I.R.S. Criminal Investigations at (618) 622-2160 or by sending the information to the Internal Revenue Service, Fresno, CA 93888.
Four Co-Conspirators Plead Guilty to Federal Drug Trafficking, Money Laundering ChargesRead the Press Release
To Date, 13 Defendants Have Pleaded Guilty in the Case
POCATELLO – Four more members of an Idaho Falls area drug trafficking organization pleaded guilty in United States District Court in Pocatello, U.S. Attorney Wendy J. Olson announced.
Isidoro David Herrera, 31, of Idaho Falls, Idaho, pleaded guilty on Wednesday to conspiracy to possess with intent to distribute in excess of 50 grams of methamphetamine. The charge is punishable by a minimum term of ten years up to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
Alberto Abarca, 22, of Idaho Falls, pleaded guilty on Wednesday to possession with intent to distribute methamphetamine. Nicolas Levi Olsen, 29, of Idaho Falls, Idaho, pleaded guilty today to aiding and abetting the possession of methamphetamine with intent to distribute. The charges are punishable by up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
Ana Rosa Valdez-Ceja, 26, of Shelley, Idaho, pleaded guilty on Wednesday to money laundering, which is punishable by up to 20 years in prison, a maximum fine of $500,000, and up to three years of supervised release.
According to the plea agreements, from June 2005 through January 2012, a group of individuals centered around co-defendant Samuel Nevarez-Ayon entered into a conspiracy to possess and distribute in excess of 50 grams of actual methamphetamine in the Idaho Falls area. In furtherance of the conspiracy, Nevarez-Ayon admitted that he distributed methamphetamine to other individuals on at least three occasions during this same time period. In furtherance of the conspiracy, Nevarez-Ayon directed activities of various co-defendants. In addition to distributing methamphetamine, several defendants laundered proceeds from the sale of the methamphetamine, and made false loan application to local banks to further the laundering of money. During the course of the conspiracy, the defendants obtained in excess of $500,000 from the distribution of methamphetamine. The government is seeking forfeiture of assets derived from the criminal offenses.
Abarca and Valdez-Ceja are scheduled to be sentenced on April 29, and Herrera and Olsen on April 30, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Nine co-conspirators pleaded guilty in December 2012 to related drug trafficking charges. Sentencings are set for March 6, 7 and 8.
The remaining defendant, Guadalupe Meraz, 41, of Madera, California, did not appear in court as scheduled. A warrant for his arrest has issued.
The charges are the result of a nine-month investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organization
Former Treasurer of St. Joseph Conference of St. Vincent De Paul Society Sentenced for EmbezzlementRead the Press Release
St. Louis, MO - Nancy O’Donnell was sentenced to one year and one day in prison for her embezzlement of donor funds. She was also ordered to pay $209,000 restitution, $192,000 has already been paid.
According to court documents, St. Joseph Catholic Church of Cottleville, Missouri, was a Catholic Church in operation for over 100 years. The St. Vincent de Paul Society was a non-profit organization providing personal assistance with furniture, food, clothing, rent, utilities and other necessities to people facing economic and other crises. The St. Joseph Conference of the St. Vincent de Paul Society is comprised of lay Catholic volunteers collecting and distributing donations to those in need within the St. Joseph parish. Monetary donations are made to the St. Joseph Conference of the St. Vincent de Paul Society through cash and by check primarily from St. Joseph parishioners.
Nancy O'Donnell served as the Treasurer for the St. Joseph Conference of the St. Vincent de Paul Society since October 2005. As Treasurer, she was in charge of financial record keeping for the Society, including receiving donations and payments by cash and check, documenting payments received, depositing funds to the Society's bank account and documenting the use of donated funds. The St. Joseph Conference of the St. Vincent de Paul Society had an authorized bank account for the receipt and disbursement of donations under the Society's actual address. On April 27, 2006, O’Donnell opened a sham checking account in the name of the St. Joseph Conference of the St. Vincent de Paul Society, using her own personal residence address as the business address for this sham account. The Board of Directors of the Society had no knowledge that she had opened this sham account and did not authorize the opening of the account. In opening the sham account, she completed and executed an unauthorized corporate resolution on behalf of the Society, and completed and executed paperwork so that she was the only authorized signer on the sham account. She also maintained a personal checking account in her own name.
As Treasurer of the Society, O’Donnell received donations from individuals by cash or check made out to the Society and, instead of depositing those cash or check donations into the Society's authorized account, she deposited those cash and check donations either into the unauthorized sham account or into her personal account. O’Donnell then wrote checks on both the sham account and the personal account either to herself or to "cash" thereby embezzling, misappropriating and stealing those donated funds, which she used for her own personal purposes, unrelated to the business of the Society. O’Donnell also wrote checks on the Society’s authorized account and deposited those checks into both the sham account and into her personal account, using the funds for personal expenses.
In order to conceal her scheme, all treasurer's reports prepared by O’Donnell and provided by her to the Society included only information from the authorized account and no information from the unauthorized sham account. Further, in order to conceal her scheme, all account statements and correspondence relative to the sham account were mailed to her at her personal residence address, rather than to the Society’s true business address.NANCY O'DONNELL, St. Peters, MO, pled guilty in October to one felony count of mail fraud. She appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Cottleville Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney’s Office.
Former Miami Clinic Director Sentenced to 70 Months in Prison for Role in HIV Infusion Fraud SchemeRead the Press Release
A former Miami HIV infusion clinic director was sentenced yesterday to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced U.S. Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Lanny Breuer of the Criminal Division, Acting Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Enrique Gonzalez, 67, formerly of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to his prison term, Judge Altonaga sentenced Gonzalez to serve three years of supervised release and ordered him to pay $17,590,896 in restitution to HHS.
On Nov. 13, 2012, Gonzalez pleaded guilty to one count of conspiracy to defraud the United States, to cause the submission of false claims, and to pay health care kickbacks, and one count of conspiracy to commit health care fraud.
Gonzalez admitted that between August 2002 and March 2004, he conspired with co-defendant Ronald Harris, a Miami physician, and alleged co-conspirators to operate Physicians Med-Care and Physicians Health (together the “Physicians Clinics”), two Miami HIV infusion clinics. According to court documents, the Physicians Clinics were owned and controlled by alleged co-conspirators Carlos Benitez and his brother Luis Benitez. The Physicians Clinics purported to specialize in treating patients with HIV, but were operated for the sole purpose of committing Medicare fraud, according to court documents. Gonzalez was a director of Physicians Med-Care and, at the direction of his co-conspirators, was responsible for the finances of the Physicians Clinics.
Gonzalez admitted that he agreed with his co-conspirators to handle the finances for the Physicians Clinics, moving the money paid by the Medicare program out of the Physicians Clinics’ accounts and into accounts owned and controlled by his co-conspirators. According to court documents, Harris signed blank checks that Gonzalez used to transfer funds to various Benitez-owned entities and others, as directed by his co-conspirators. In addition, Gonzalez agreed to provide cash to various co-conspirators at the Physicians Clinics to be used to pay bribes and kickbacks to the Medicare beneficiaries in return for those beneficiaries allowing the Physicians Clinics to bill the Medicare program for HIV infusion services that were not medically necessary and often not provided.
Gonzalez admitted that during his association with Physicians Med-Care, the clinic billed the Medicare program approximately $24.5 million in HIV infusion therapy claims, for which the clinic received $16.7 million in payments. Gonzalez also admitted that during his time with Physicians Health, the clinic billed Medicare approximately $1.7 million and received approximately $800,000 in payment from the Medicare program for fraudulent services.
Gonzalez was a fugitive from justice from the time of his indictment in 2008, until he was located and detained in Peru in late 2011. Gonzalez was extradited to the United States in July of 2012. Gonzalez’ daughter, Carmen Gonzalez, was indicted in a related case and is currently a fugitive.
Co-defendant Harris pleaded guilty on Aug. 26, 2008, to one count of conspiracy to defraud the United States, to cause the submission of false claims and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims to the Medicare program. Harris pleaded guilty in connection with his role as the medical director for the Physicians Clinics. On Nov. 4, 2008, Harris was sentenced to serve 84 months in prison for his role in the scheme.
Carlos and Luis Benitez and Thomas McKenzie were charged separately with health care fraud and money laundering crimes in an indictment unsealed on June 11, 2008. According to the separate indictment, the defendants provided the money and staff necessary to open the Physicians Clinics, the Medicare patients that the clinics needed to bill the Medicare program and transportation for the HIV patients who visited the clinics. Carlos and Luis Benitez and McKenzie were charged for their role in committing approximately $109 million in HIV infusion fraud and money laundering through the Physicians Clinics and nine other HIV infusion clinics.
On Sept. 18, 2008, McKenzie pleaded guilty to one count of conspiracy to commit health care fraud and one count of submitting false claims to the Medicare program, and admitted to his role in a $119 million HIV infusion fraud scheme. On Dec. 18, 2008, McKenzie was sentenced to serve 14 years in prison.
Carlos and Luis Benitez are also fugitives. Anyone with information regarding the whereabouts of the fugitives is urged to contact HHS-OIG fugitive reporting phone line at 888-476-4453.
The defendants who have not been convicted are presumed innocent unless and until proven guilty.
The Physicians Med-Care and Physicians Health case is being prosecuted by Trial Attorney N. Nathan Dimock of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the DHS Office of Inspector General.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The Department also thanks the Peruvian National Police Interpol Unit for their assistance.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Former Federal Inmate Sentenced for Attempting to Possess Heroin in PrisonRead the Press Release
ALEXANDRIA, La.: United States Attorney Stephanie A. Finley announced today that U.S. District Judge Dee D. Drell sentenced former federal inmate Jose Rueperto Alaniz, 39, of Wichita Falls, Texas, to 24 months in prison with three years supervised release and Diana Castillo, 31, also of Wichita Falls, Texas, to three months in prison with three years supervised release for attempting to smuggle heroin into the U.S. Penitentiary in Pollock. The sentence was handed down yesterday in federal court in Alexandria.
Investigation of the case revealed that Castillo visited Alaniz on May 22, 2010, in the Pollock Penitentiary visiting room. Prison officials observed Alaniz remove something from Catillo’s waistband. They then saw Alaniz place the object in his own jumpsuit. A search of Alaniz later revealed two small packages of approximately 74.8 grams of black tar heroin.
At the time, Alaniz was in prison for violating supervised release relating to a distribution of cocaine charge and left the prison Sept. 29, 2010 after completing time served for that offense. He will now return to federal prison to serve time for the contraband charge.
The FBI, Alexandria, Louisiana Resident Agency conducted the investigation. Senior Litigation Counsel Joseph G. Jarzabek and Special Assistant U.S. Attorney Robert J. France prosecuted the case.
Former Consultant for Clarksville Department of Electricity Found Guilty of Honest Services Mail and Wire FraudRead the Press Release
Two Co-defendants Previously Pleaded Guilty
Tommy L. Walton II, 39, of Huntersville, North Carolina, was found guilty late yesterday by a federal jury on nine counts of honest services mail fraud and seven counts of honest services wire fraud after a week-long trial, announced Jerry E. Martin, U.S. Attorney for the Middle District of Tennessee. The jury also recommended a monetary judgment against Walton in the amount of $95,211.38.
U.S. Attorney Jerry Martin stated, “Corrupt practices by public officials and those who corruptly pay public officials undermine the confidence that citizens must have in their governmental institutions. The costs of corruption are borne by taxpayers, ratepayers, honest vendors and honest public employees. The Department of Justice is committed to prosecuting individuals who fraudulently game the system and line their own pockets at the expense of the public and of all those who labor honestly and follow the rules.”
According to testimony at trial, on November 3, 2008, Walton was hired as a consultant for the Clarksville, Tennessee Department of Electricity by Rick R. Ingram, Sr., then president of the Clarksville Department of Electricity. Between that date and June 29, 2009, Walton and his consulting firm, IntelliNet Consulting LLC, invoiced and received from the Clarksville Department of Electricity a total of $156,139,39. The payment of each invoice was approved by Ingram and during that same time, Walton paid $51,500 directly to Ingram or to one of Ingram’s creditors.
The payments made by Walton to Ingram were not disclosed to members of the Clarksville Electric Power Board or to other employees at the Clarksville Department of Electricity. The United States alleged that these payments by Walton were bribes and kickbacks and that the concealment of these payments from the Clarksville Department of Electricity deprived the Clarksville Department of Electricity and its customers of the honest services of Ingram.
On May 25, 2012, Rick Ingram pleaded guilty to two counts of honest services mail fraud and two counts of honest services wire fraud related to this same scheme and to a separate scheme involving Walton’s father, Tommy L. Walton, Sr. Rick Ingram testified at the trial that he would not have approved the payment of all invoices submitted to the Clarksville Department of Electricity by Walton and IntelliNet Consulting had Walton and IntelliNet Consulting not continued making payments to Ingram and to Ingram’s creditor.
Tommy L. Walton, Sr. pleaded guilty to eight counts of honest services mail fraud and to five counts of honest services wire fraud on January 14, 2013.Sentencing hearings will be scheduled for each of these defendants. Each defendant faces up to twenty years in prison, fines of up to $250,000, and orders requiring payment of restitution to the Clarksville Department of Electricity.
This case was investigated by agents of the Tennessee Valley Authority- Office of Inspector General. The case was prosecuted by Assistant United States Attorneys Byron Jones and John Webb.
Former Co-Owner of Contracting Company Sentenced <br /> in San Antonio to 30 Months in Prison for Scheme to Defraud the U.S. GovernmentRead the Press Release
A former co-owner of a U.S. civilian contractor company was sentenced today in San Antonio to serve 30 months in prison for falsifying official documents in connection with Iraq reconstruction government contracts, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas.
Jill Ann Charpia, 33, formerly of San Antonio and currently of Colorado, was sentenced today by U.S. District Judge Orlando L. Garcia in the Western District of Texas. In addition to her prison term, Charpia was sentenced to serve three years of supervised release and ordered to pay $920,000 plus interest in restitution to the United States.
According to court documents, from 2008 through 2009, Charpia was the co-owner of Sourcing Specialist LLC, a privately owned company that contracted with the U.S. government to provide services in Iraq. In September 2008, she contracted to provide a turn-key housing facility located outside Iraq’s International Zone to facilitate the introduction of multi-national firms desiring to develop business opportunities in Iraq. That same month, Charpia signed and submitted to the Department of Defense (DOD) Joint Contracting Command Iraq/Afghanistan, for payment through the contract, a false invoice in the amount of $1,270,075 purportedly for mobilization costs. She followed up with two invoices, one representing that she had paid $700,000 for the rental of two villas in Baghdad, and the other representing that she had paid $570,075 on the purchase of three armored vehicles from an Iraqi company. In October 2008, as a result of her false and fraudulent statements, DOD caused $1,270,075 to be wired to Charpia’s bank account. Charpia admitted that she fabricated both invoices and forged the signatures on the documents. She also admitted that she did not purchase any armored vehicles and paid only half the submitted cost for the villas.
This case is being prosecuted by Special Trial Attorney Mark Grider of the Criminal Division’s Fraud Section, on detail from the Special Inspector General for Iraq Reconstruction (SIGIR), and by Assistant U.S. Attorney Judith A. Patton of the Western District of Texas. The case is being investigated by SIGIR, Internal Revenue Service-Criminal Investigation and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.
Former Car Dealership Employee Sentenced for EmbezzlementRead the Press Release
BOSTON – A former employee of a car dealership in Hanover was sentenced today for embezzling $96,920 from her employer.
Susan Morris, 44, was sentenced by U.S. District Judge Zobel to four months in prison, to be followed by two years of supervised release and restitution of $96,920. In October 2012, Morris pleaded guilty to wire fraud.
From April 2010 through March 2012, while Morris was working in the accounting department of Dave Delaney’s Buick GMC car dealership, she embezzled $96,920 from the company’s bank account. Morris processed dozens of bogus return transactions, each time fraudulently “returning” the funds to her own debit card.United States Attorney Carmen M. Ortiz and Steven D. Riccardi, Special Agent in Charge of the Boston office of the U.S. Secret Service, made the announcement today. The case was investigated by the Boston office of the U.S. Secret Service. The case was prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
Florida Man Charged with Income Tax EvasionRead the Press Release
JOHNSTOWN, Pa. - On Jan. 15, 2013, a resident of Winter Garden, Fl., was indicted by a federal grand jury in Johnstown on charges of income tax evasion, United States Attorney David J. Hickton announced today.
The four-count indictment named Walter C. Pruchnik, Jr.
According to the indictment presented to the court, from April 15, 2008, until April 15, 2011, Pruchnik owed substantially more federal income tax for the calendar years 2007 through 2010 than he declared on his income tax returns. Specifically, Pruchnik stated his taxable income for the calendar year 2007 was the sum of $66 and the amount of tax he owed was $5,316, when, in actuality, his taxable income for that year was $198,713, upon which he owed to the United States of America income tax of $66,079. For the calendar year 2008, Pruchnik stated his taxable income was -$3,638 and the amount of tax he owed was $4,380. However, in actuality, his taxable income for that year was $180,595, upon which he owed to the United States of America income tax of $58,890. For the calendar year 2009, Pruchnik stated his taxable income was $55,998 and the amount of tax he owed was $18, 677. However, in actuality, his taxable income for that year was $110,630, upon which he owed to the United States of America income tax of $35,125. For the calendar year 2010, Pruchnik stated his taxable income was $35,447 and the amount of tax he owed was $12,197. However, in actuality, his taxable income for that year was $50,795, upon which he owed to the United States of America income tax of $16,833.
The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Commercial Fisherman Pleads Guilty to False StatementsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, Southeast Division, and Major Jeff Hubert, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announced that Jason Cardinale, 41, pled guilty today to one count of making false statements to the NOAA Southeast Fisheries Science Center, in violation of Title 18, United States Code, Section 1001. Sentencing has been scheduled for April 4, 2013 before U.S. District Judge Donald M. Middlebrooks.
According to the allegations in the indictment and statements made in court, from about January 15, 2010 through February 24, 2012, Cardinale submitted false No Fishing Activity Reports to the NOAA Southeast Fisheries Science Center, potentially compromising the management of fisheries under NOAA’s jurisdiction.
U.S. Attorney Wifredo A. Ferrer stated, “The U.S. Attorney’s Office will continue to do its part to help protect our fragile eco-system, including our fisheries.”
“Falsely reporting data leaves fishery scientists with an incomplete picture of what is truly happening on the water, which can ultimately lead the entire industry to shorter seasons and weaker fish populations,” said Dr. Bonnie Ponwith, Director for NOAA Fisheries’ Southeast Fisheries Science Center. “We applaud those who understand the integral role they play in an effective fishery management process by taking the time to supply high-quality, timely data.”
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and FWC. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.
Federal Judge Sentences Two for Trafficking MethRead the Press Release
Seven Await Sentencing for Conspiracy, Distributing Meth, Money Laundering
BOISE – Jimenez Valencia a/k/a Jorge Jimenez, 25, a Mexican national formerly living in Nampa, Idaho, and Tanna Spencer, 30, of Parma, Idaho, were sentenced to serve federal prison sentences today, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Valencia to 57 months for conspiracy to distribute methamphetamine; Spencer was sentenced to 15 months for possession with intent to distribute methamphetamine. Each will serve three years of supervised release following their release from prison. They pleaded guilty to the charge on November 8, 2012.
According to court documents, beginning in January 2011 and continuing through December 16, 2011, the defendants conspired with co-defendant Alfredo Dominguez-Villareal and others to possess and distribute in excess of 50 grams of methamphetamine in the Treasure Valley, and transported methamphetamine from California to Idaho for this purpose.
Seven co-defendants entered into plea agreements last year on related charges and currently await sentencing: Cynthia Casillas, 24, and Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, 34, both of Delano, California, on February 5; Alfredo Dominguez-Villareal a/k/a Alfredo Vasquez-Dominguez, 29, and Nelson Fernando Garcia-Soto, 39, both of Boise, on February 6; Hector Morales, 29, of Tallamantez, California, on February 7; and Delia Garcia-Pineda, 44, of Boise, and Alonso Martinez, 26 a Mexican national, of Delano, California, on April 10.
The remaining defendant, Samuel Chavez, 32, of Boise, is set for trial on March 25 at the federal courthouse in Boise. He is charged with conspiracy to distribute methamphetamine and use of a communication facility.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department and the Ada County Sheriff's Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Federal Grand Jury Indicts Two Utah Men for Violating Migratory Bird Treaty ActRead the Press Release
Defendants Charged with Unlawfully Offering for Sale Bald Eagle,
Red-Tail Hawk and Northern Flicker Feathers.ALBUQUERQUE – A federal grand jury sitting in Albuquerque has indicted two men from Bluff, Utah, for violating the Migratory Bird Treaty Act, announced U.S. Attorney Kenneth J. Gonzales and Nicholas E. Chavez, Special Agent in Charge of the Southwest Region, U.S. Fish and Wildlife Service Office of Law Enforcement.
Peterson Oliver Black, Jr., 30, and Jonas Brown, 31, are charged in a three-count indictment that was filed on Jan. 23, 2013. The indictment alleges that Black and Brown offered for sale Bald Eagle, Red-Tail Hawk, and Northern Flicker feathers on Jan. 31, 2009, in San Juan County, N.M. Arraignment dates for Black and Brown have yet to be scheduled.
If convicted, Black and Brown each face a maximum penalty of two years imprisonment, one year of supervised release, and a $250,000 fine on each of the three counts of the indictment. Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty.
Eagles, Red-Tail Hawks, Northern Flickers, and other migratory birds are protected under federal wildlife laws, including the Migratory Bird Treaty Act. These laws prohibit the possession, use, and sale of the feathers or other parts of federally protected birds, as well as the unauthorized killing of these birds, to help ensure that the Eagle and other bird populations remain healthy and sustainable.
“Protecting our Nation's Wildlife from unlawful commercial exploitation of protected U.S. Species is a high priority for the U. S. Fish and Wildlife Service Office of Law Enforcement,” said Special Agent in Charge Nicholas Chavez of the U.S. Fish and Wildlife Service. “We also work with our local, state, tribal, and other federal law enforcement partners to apprehend individuals that violate wildlife laws."
The case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers, and was investigated by the U.S. Fish and Wildlife Service and the Navajo Department of Fish and Wildlife Conservation. The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov. Connect with its Facebook page at www.facebook.com/usfws, follow its tweets at www.twitter.com/usfwshq, watch its YouTube Channel at http://www.youtube.com/usfws and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq.
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Indictment
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Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
FortWayne,IN C TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on January 23, 2013:
Dashawn Jones, 23, of Fort Wayne, Indiana, is charged in a single count Indictment with beingafeloninpossessionofafirearmonoraboutDecember21,2012.Thischargewasfiledas aresultofaninvestigationbytheBureauof Alcohol,Tobacco,FirearmsandExplosives,andthe AllenCountyCommunityCorrections.Thiscasehasbeenassignedtoandwillbeprosecutedby Assistant United States Attorney Anthony W. Geller.
JuliusLawson,34,ofFortWayne,Indiana,ischargedinathreecountIndictmentwith attemptedrobberyofapersonhavingcustodyof mailmatter,moneyorpropertyoftheUnited States;using,carryingandbrandishingafirearmduringandinrelationtoacrimeofviolence,and interference with performanceofdutiesofanemployeeofthe United States all occurring on or about December 19, 2012.These charges were filed as a result of an investigation by the United StatesPostalInspection ServiceandtheFortWaynePoliceDepartment. Thiscasehasbeen assigned to and will be prosecuted by Assistant United States Attorney Lovita MorrisKing.
Scot Silvers, 47, of Angola, Indiana, is charged in a five count Indictment with using counterfeitaccessdevicesbetweenonoraboutOctober8,2012,andOctober11,2012,fraudwith identificationdocumentsonoraboutOctober8,2012,possessingdevice makingequipmentonor aboutOctober31,2012,makingcounterfeitobligationonoraboutOctober31,2012,andpassing counterfeitobligationsorsecuritiesonoraboutOctober31,2012.TheIndictmentalsoseeksfor forfeitureofcomputerrelateditems.Thesecharges were filed as a result of an investigation by theUnitedStatesSecretServiceandtheAngolaPoliceDepartment.Thiscasehasbeenassigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Federal Authorities Share Seized Assets with Arapahoe County Sheriff's OfficeRead the Press Release
DENVER – United States Attorney John Walsh and IRS – Criminal Investigation Special Agent in Charge Stephen Boyd presented the Arapahoe County Sheriff’s Office with a check yesterday for $589,826.12, which represents proceeds forfeited by a criminal defendant who was convicted of operating an interstate prostitution business. The check was presented to Undersheriff David Walcher during a private ceremony.
The money seized, forfeited and ultimate presented to the Arapahoe County Sheriff’s Office was part of a $1 million seizure that came from an investigation into the prostitution business dealings of Michelle Schramm, aka Uk Chin Schramm, of Aurora, Colorado. Schramm was indicted, pled guilty, and was sentenced to four months in federal prison. Part of her plea agreement was the stipulation that she not contest the forfeiture of the money seized by law enforcement. Schramm was deported to South Korea immediately after serving her prison sentence, and she is not allowed to return to the United States.
Beginning on December 7, 2005, and continuing through March 17, 2009, the defendant, Michelle Schramm, controlled and operated three businesses in the Denver Metropolitan Area. The businesses were: Bali Spa, located in Arapahoe County, Malley Spa, located in Northglenn, and Green Garden Spa, also known as Beach Tanning Spa, located in Edgewater. In the course of running her spas, the she regularly provided prostitution services, provided by a rotating staff of prostitutes. The prostitutes would provide messages as well as routinely perform sexual acts for customers in exchange for money.
“The citizens of Arapahoe County and Metro Denver benefit twice thanks to the hard work of the Arapahoe County Sheriff and IRS – Criminal Investigation,” said U.S. Attorney John Walsh. “The community benefits by the dismantling of an interstate prostitution organization. They also benefit because that organization’s financial assets were forfeited and shared with the Arapahoe County Sheriff’s Office, for law enforcement use to protect the citizens of Arapahoe County.”
“In cases like this we take away the prize from the crime,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
“The money received as a result of this effort with our federal partners will benefit public safety at the local level. We will invest the money in our continued efforts to protect the citizens of Arapahoe County,” said Arapahoe County Undersheriff David Walcher.
The Schramm case was investigated by IRS Criminal Investigation and the Arapahoe County Sheriff’s Office.
Schramm was prosecuted by Assistant U.S. Attorneys Tim Neff and Tonya Andrews.
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Erie County Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Girard, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
David E. Newcomer, 35, pleaded guilty to one count before United States District Judge Sean J. McLaughlin.
In connection with the guilty plea, the court was advised that Newcomer received computer images depicting minors engaging in sexually explicit conduct.
Judge McLaughlin scheduled sentencing for May 30, 2013 The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Newcomer be detained.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Newcomer.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
East St. Louis Man Pleads Guilty to Firearm OffenseRead the Press Release
On January 24, 2013, Joseph L. Edwards, a 25 year old East St. Louis, Illinois, man pled guilty in United States Federal District Court, in East St. Louis, to Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edwards is scheduled for sentencing on May 20, 2013, at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Edwards also agreed to the forfeiture of the firearm.
Court proceedings revealed that on October 25, 2011, law enforcement officers approached a residence in East St. Louis, Illinois, to investigate an anonymous tip regarding the firing of guns at the home. As officials approached, an officer heard a woman standing on the porch of the home tell Edwards, who was still inside the home, “The feds are here.” An officer spotted Edwards going to the rear of the home and later returning to the front of the house. The officer also noticed a strong marijuana odor coming from the home. After obtaining consent to search the residence from the property owner, who was present, law enforcement located a firearm on a bedroom floor in the rear of the residence. Edwards admitted to taking the gun to the rear of the house and leaving it on a back bedroom floor. Prior to October 25, 2011, Edwards had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park and surrounding communities.
This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
East Aurora Man Sentenced for Money LaunderingRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today John Sorrentino, 46, of East Aurora, N.Y., who was convicted of money laundering, was sentenced to 31 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant used fraudulent loan applications to induce five banks in Arizona and Western New York into lending him large sums of money. Sorrentino then filtered the proceeds from the fraudulent loans into a down payment for the purchase of a home in East Aurora. In applying for a mortgage for the property, the defendant provided false information regarding his salary, employer, and address. In addition, Sorrentino used a fraudulent loan application to obtain a mortgage and a home equity line of credit on a property in Arizona.
As part of the defendant's plea, his home in East Aurora will be forfeited to the Government as well as the computers used to facilitate the unlawful activity and a truck purchased with illegally obtained funds.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The plea was the culmination of an investigation on the part of Special Agents of the Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Eagle Butte Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
US Attorney Brendan V. Johnson announced that Judson His Law, a/k/a Judson Two Dogs, age 18, of Eagle Butte, South Dakota, appeared before US District Judge Roberto A. Lange on January 23, 2013, and pled guilty to Count I of the Indictment that charged him with Possession of a Stolen Firearm. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction arose from an October 2012 incident when His Law stole a Remington shotgun from a vehicle parked outside a convenience store in Eagle Butte, South Dakota.
The investigation was conducted by the Cheyenne River Sioux Tribal Law Enforcement Services. The case is being prosecuted by Assistant US Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for April 15, 2013. The defendant was remanded to the custody of the US Marshal pending sentencing.
Drug Distribution Conspiracy Earns Brownsville Man 151 Month Prison SentenceRead the Press Release
Jackson, TN – Mario Seymour, 29, of Brownsville, TN, was sentenced yesterday to 151 months in prison for his role in a conspiracy to distribute crack cocaine, cocaine and marijuana, announced U.S. Attorney Edward L. Stanton III.
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In an October 11, 2012, appearance before U.S. District Judge J. Daniel Breen, Seymour pleaded guilty to one count of conspiracy to possess and distribute more than 280 grams of cocaine base (crack cocaine), five kilograms of cocaine, and marijuana.
In 2011, agents with the Drug Enforcement Administration, Tennessee Bureau of Investigation, and Bolivar Police Department became aware of a drug trafficking organization based out of Brownsville, Tennessee. As stated in court, the investigation revealed that Seymour was a prominent member of the trafficking organization and was engaged in actively distributing and directing others to distribute crack cocaine, cocaine and marijuana. Investigators were able to intercept shipments of crack cocaine and cocaine with the assistance of the Tennessee Highway Patrol.
On January 25, 2012, during the execution of an arrest and search warrant after a criminal complaint was filed, Seymour was found in possession of a handgun, as well as approximately $103,000 in United States currency, believed to be drug related. The currency was administratively forfeited to the investigating agencies to further future narcotics investigations.
In addition to the 151 month prison term, Breen also sentenced Seymour to five years of supervised release. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration, the Tennessee Bureau of Investigation, the Tennessee Highway Patrol and the Bolivar Police Department. The case was prosecuted by Assistant United States Attorney Matt Wilson on behalf of the government.Douglas Edward Cottrell Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on January 23, 2013, before U.S. District Judge Sam E. Haddon, DOUGLAS EDWARD COTTRELL, a 42-year-old resident of Great Falls, appeared for sentencing. COTTRELL was sentenced to a term of:
Probation: 3 years
Special Assessment: $100
Restitution: $7,707
COTTRELL was sentenced in connection with his guilty plea to supplemental social security income benefit fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
Beginning in August 2007, and continuing until December 2009, COTTRELL, intentionally concealed and failed to disclose his incarceration in Montana State Prison in order to continue to receive SSI and SSDI benefits payments provided to him by the Social Security Administration.
On April 13, 2007, COTTRELL applied for Social Security Supplemental Security Income ("SSI") benefits. COTTRELL was advised by the claims representative that he must legally report events that could affect his eligibility for SSI and Social Security Disability Insurance ("SSDI").
On May 25, 2007, the SSA claims representative conducted an SSI application review with COTTRELL and again advised him of his legal obligation to report events affecting his eligibility to SSI. Several of those events included his fugitive felon and parole or probation violation status, his living arrangements, his resources, and his income. He was approved for both SSI and SSDI.
On June 1, 2007, SSA sent COTRELL a "Notice of Award" letter for his SSI application. The letter also included a pamphlet, "What you need to know when you get SSI." Both the pamphlet and the letter again advised COTTRELL of his legal reporting requirements regarding events affecting his eligibility to SSI. Indeed, the pamphlet informed COTTRELL he must report his incarceration and stated, "benefits usually are not paid to someone who commits a crime and is confined to an institution by court order and at public expense." SSA sent another letter and pamphlet to COTTRELL on June 3, 2007 relating to the SSDI payments.
On June 8, 2007, COTTRELL was convicted of felony sexual assault in Cascade County and was sentenced to 10 years with 6 years suspended in Montana State Prison. He was admitted to prison on August 13, 2007.
Several years later, the SSA Great Falls Office received an anonymous call stating that the caller did not think it was right that COTTRELL could collect SSI and SSDI benefits while incarcerated in Deer Lodge. The SSA began an investigation and verified that COTTRELL was incarcerated and had a scheduled release date of July 3, 2011.
Shortly thereafter, SSA interviewed COTTRELL and he stated that he knew that he was required to report his incarceration and that if he did he would lose his SSI and SSDI benefits. He indicated that he had attempted to send one letter to SSA to notify them of his incarceration. No letter was ever received by SSA. He said he made no further attempts to contact SSA after the letter. He stated, "Yes, I knew that if I was getting the payments [SSA benefits], then the SSA probably didn't know I was in prison, but it was on the government."
During COTTRELL's incarceration, he was visited by his fiancé. COTTRELL told investigators that he told her to take the SSA benefit payments out of his personal bank account to pay rent, car payments, bills, and to deposit some of the money into his prison account.
The total amount of overpayment based upon the unauthorized payments and upon COTTRELL's failure to report the required events was $18,464.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that COTTRELL will likely serve all of the time imposed by the court. In the federal system, COTTRELL does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Dominican National Sentenced to Nearly Six Years in Federal Prison on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Richard Paulino, a/k/a Jose Nieves and Jose Ayala, 30, a Dominican national living in Providence, was sentenced today to 57 months in federal prison for possession with the intent to distribute crack cocaine and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
U. S District Court Judge William E. Smith also ordered Paulino to serve three years of supervised release upon completion of his prison term. Paulino pleaded guilty on July 18, 2012, to one count each of possession with the intent to distribute cocaine base and felon in possession of a firearm. Upon completion of his federal prison sentence, Paulino will be referred to Homeland Security Investigations immigration officials for deportation proceedings.
According to information presented to the court, on April 18, 2012, detectives from the Providence Police Narcotics and Organized Crime Unit executed a court authorized search warrant at a Providence residence used by Paulino as a stash house. During the search, detectives seized a total of 107 grams of cocaine and 15 grams of crack cocaine; a .22 caliber handgun and a .45 caliber handgun; ammunition; $1,460 in cash; and a variety of items used in the preparation and street sale of crack cocaine. Paulino admitted to the court that all of the items seized belonged to him.
Paulino, who was previously convicted in Rhode Island state court on felony drug charges, has been detained since his arrest on April 18, 2012.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
United States Attorney Peter F. Neronha acknowledged the efforts of the Providence Police Narcotics and Organized Crime Unit for their investigation of Paulino’s illegal drug activities and for their arrest of the defendant.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of the firearms seized from Paulino.
Contact: 401-709-5357
[email protected]District Man Sentenced to 4½-Year Prison Term for Robbery and Credit Card Fraud-Defendant Used Victim's Credit Cards Within an Hour of the Robbery-Read the Press Release
WASHINGTON – Robert Reese, 44, of Oxon Hill, Md., has been sentenced to a 4 ½year prison term for robbery and credit card fraud, U.S. Attorney Ronald C. Machen Jr. announced today.
Reese was found guilty by a jury in August 2012, following a trial in the Superior Court of the District of Columbia, on charges of robbery, theft, and credit card fraud. He was sentenced on Jan. 11, 2013, by the Honorable Michael Ryan. Upon completion of his prison term, Reese will be placed on three years of supervised release.
The government’s evidence at trial established that Reese entered the Sweet Green Restaurant, in the 200 block of Pennsylvania Avenue SE, on Capitol Hill, at about 6:45 p.m. March 7, 2012, intending to rob an unsuspecting customer. Reese sat directly behind the victim and robbed her of her credit cards without her knowledge. Reese then proceeded directly to Maryland, where, within an hour of the robbery, he charged over $1,500 worth of items on the victim’s credit cards at a Home Depot store and a Target store.
When Reese committed this crime, he was on parole for an almost-identical crime out of Maryland, in which he robbed a woman of her credit cards and within hours had charged her cards for over a thousand dollars. At Reese’s sentencing, Judge Ryan noted the defendant’s criminal history and the ordeal for the victim, who had to straighten out the credit card issues.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also acknowledged those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tameka Garcia and Litigation Technology Specialists Leif Hickling and Josh Ellen. Finally, he praised the work of Assistant U.S. Attorney Kathleen Connolly, who indicted and tried the case.
13-023Disbarred Chicago Lawyer Surrenders After More Than Six Years on the Run; Allegedly Skipped Prison TermRead the Press Release
CHICAGO — A disbarred Chicago lawyer was indicted in a new federal case for allegedly failing to surrender to begin serving a federal fraud sentence in 2006. The defendant, STEVEN J. DELLA ROSE, surrendered to authorities in Puerto Vallarta, Mexico, on Dec. 11, 2012, more than six years after he was ordered to self-surrender to begin serving a 41-month sentence for defrauding a client of $64,000.
Della Rose, 61, formerly of Chicago, was charged with failing to surrender to begin serving a sentence in a single-count indictment returned yesterday by a federal grand jury. The indictment was announced today by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Darryl McPherson, United States Marshal for the Northern District of Illinois.
Della Rose was returned to the U.S. and immediately began serving his original sentence once he was in U.S. custody last month. No date has been set yet for his arraignment on the new charge in U.S. District Court.
According to the indictment, Della Rose was released on his own recognizance after he was charged with mail fraud in 2002. After a trial in March 2003, a jury found him guilty of defrauding a client of $64,000 in a worker’s compensation case. On Dec. 5, 2003, a judge sentenced him to serve 41 months in prison. Service of the sentence was delayed by two appeals, and on June 22, 2006, Della Rose was ordered to surrender to a designated U.S. Bureau of Prisons facility on Aug. 7, 2006. He allegedly failed to self-surrender at a prison on that date and he remained a fugitive until he turned himself in to authorities in Mexico last month.
The new charge carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines, and any new sentence must be served consecutively to the original sentence.
The Government is being represented in court by Assistant U.S. Attorney Clifford Histed.
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
Dayton Man Receives 13-year Sentence for Assaulting an Officer, Conspiracy, Drug and Tax CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –Charles D. Warren, 38, of Dayton was sentenced today to 156 months in prison for crimes including assaulting an officer by running his car into a car driven by a federal task force officer, illegal possession of a firearm, possession of a firearm with an obliterated serial number, conspiracy to distribute marijuana, conspiracy to launder money, illegally structuring financial transactions, and interstate travel in furtherance of a drug conspiracy.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Edward J. Hanko, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Division (FBI), Stephanie R. Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Darryl Williams, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) and Dayton Police Chief Richard Biehl announced the sentences handed down by U.S. District Judge Timothy S. Black.
According to court documents, Warren was wanted on an outstanding illegal gun possession warrant when DPD officers stopped him for a traffic violation on July 7, 2011. Warren fled in his car as members of the FBI Safe Streets Task Force approached the scene. Warren stopped several blocks away. As a task force officer was beginning to exit his vehicle, Warren put his car in reverse and rammed the officer’s vehicle.
Court documents also state that Warren and others trafficked more than 100 kilograms of marijuana from suppliers in California to the Dayton area between 2009 and 2011. IRS investigators determined that the conspirators used several different methods of laundering approximately $1,100,000 of drug proceeds including depositing the cash using other people’s names in order to avoid currency reporting requirements.
Warren pleaded guilty on February 23, 2012. Stewart commended the cooperative investigation by the federal and local agencies, along with Assistant U.S. Attorney Sheila Lafferty, who is prosecuting the case.
David Coleman Headley Sentenced to 35 Years in Prison for Role in India and Denmark Terror PlotsRead the Press Release
David Coleman Headley, a U.S. citizen partly of Pakistani descent, was sentenced today to 35 years in prison for a dozen federal terrorism crimes relating to his role in planning the November 2008 terrorist attacks in Mumbai, India, and a subsequent proposed attack on a newspaper in Denmark. Headley pleaded guilty in March 2010 to all 12 counts that were brought against him following his arrest in October 2009 as he was about to leave the country. Immediately after his arrest, Headley began cooperating with authorities.
Headley, 52, was ordered to serve 35 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. There is no federal parole and defendants must serve at least 85 percent of their sentence. “Mr. Headley is a terrorist,” Judge Leinenweber said in imposing the sentence.
“There is little question that life imprisonment would be an appropriate punishment for Headley’s incredibly serious crimes but for the significant value provided by his immediate and extensive cooperation,” the government argued in seeking a sentence of 30 to 35 years.
In pleading guilty and later testifying for the government at the trial of a co-defendant, Headley admitted that he attended training camps in Pakistan operated by Lashkar e Tayyiba, a terrorist organization operating in that country, on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from three members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks in 2008 that killed approximately 164 people, including six Americans, and wounded hundreds more. Headley’s plea agreement in March 2010 stated that he “has provided substantial assistance to the criminal investigation, and also has provided information of significant intelligence value.”
In consideration of Headley’s past cooperation and anticipated future cooperation, which would include debriefings for the purpose of gathering intelligence and national security information, as well as testifying in any foreign judicial proceedings held in the United States by way of deposition, video-conferencing or letters rogatory, the Attorney General of the United States authorized the U.S. Attorney’s Office in Chicago not to seek the death penalty.
“Today’s sentence is an important milestone in our continuing efforts to hold accountable those responsible for the Mumbai terrorist attacks and to achieve justice for the victims. Our investigations into Mumbai attacks and the Denmark terror plot are ongoing and active. I thank the many agents, analysts and prosecutors responsible for this investigation and prosecution,” said Lisa Monaco, Assistant Attorney General for National Security.
Headley was convicted of conspiracy to bomb public places in India; conspiracy to murder and maim persons in India; six counts of aiding and abetting the murder of U.S. citizens in India; conspiracy to provide material support to terrorism in India; conspiracy to murder and maim persons in Denmark; conspiracy to provide material support to terrorism in Denmark; and conspiracy to provide material support to Lashkar.
According to Headley’s guilty plea and testimony, he attended the following training camps operated by Lashkar: a three-week course starting in February 2002 that provided indoctrination on the merits of waging jihad; a three-week course starting in August 2002 that provided training in the use of weapons and grenades; a three-month course starting in April 2003 that taught close combat tactics, the use of weapons and grenades, and survival skills; a three-week course starting in August 2003 that taught counter-surveillance skills; and a three-month course starting in December 2003 that provided combat and tactical training.
Mumbai Terror Attacks
After receiving instructions in late 2005 to conduct surveillance in India, Headley changed his given name from Daood Gilani in February 2006 in Philadelphia to facilitate his activities on behalf of Lashkar by portraying himself in India as an American who was neither Muslim nor Pakistani. In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities.
Headley eventually made five extended trips to Mumbai — in September 2006, February and September 2007, and April and July 2008 — each time making videotapes of various potential targets, including those attacked in November 2008. Before each trip, Lashkar members and associates instructed Headley regarding specific locations where he was to conduct surveillance. After each trip, Headley traveled to Pakistan to meet with Lashkar members and associates, report on the results of his surveillance, and provide the surveillance videos.
Before the April 2008 surveillance trip, Headley and co-conspirators in Pakistan discussed potential landing sites in Mumbai for a team of attackers who would arrive by sea. Headley returned to Mumbai with a global positioning system device and took boat trips around the Mumbai harbor and entered various locations into the device.
Between Nov. 26 and 28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, including the Taj Mahal and Oberoi hotels, the Leopold Café, the Chabad House and the Chhatrapati Shivaji Terminus train station, each of which Headley had scouted in advance, killing approximately 164 victims and wounding hundreds more.
The six Americans killed during the siege were Ben Zion Chroman, Gavriel Holtzberg, Sandeep Jeswani, Alan Scherr, his daughter Naomi Scherr and Aryeh Leibish Teitelbaum.
In March 2009, Headley made a sixth trip to India to conduct additional surveillance, including of the National Defense College in Delhi, and of Chabad Houses in several cities.
Denmark Terror Plot
Regarding the Denmark terror plot, Headley admitted and testified that in early November 2008, he was instructed by a Lashkar member in Pakistan, to conduct surveillance of the Copenhagen and Aarhus offices of the Danish newspaper Morgenavisen Jyllands-Posten in preparation for an attack in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. After this meeting, Headley informed co-defendant Abdur Rehman Hashim Syed (Abdur Rehman), also known as “Pasha,” of his assignment. Abdur Rehman told Headley words to the effect that if Lashkar did not go through with the attack, Abdur Rehman knew someone who would. Although not identified by name at the time, Headley later learned this individual was co-defendant Ilyas Kashmiri. Abdur Rehman previously told Headley that he was working with Kashmiri and that Kashmiri was in direct contact with a senior leader of Al Qaeda
While in Chicago in late December 2008 and early January 2009, Headley exchanged emails with Abdur Rehman to continue planning for the attack and to coordinate his travel to Denmark to conduct surveillance. In January 2009, at Lashkar’s direction, Headley traveled from Chicago to Copenhagen to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus and scouted and videotaped the surrounding areas.
In late January 2009, Headley met separately with Abdur Rehman and a Lashkar member in Pakistan, discussed the planned attack on the newspaper, and provided them with videos of his surveillance. About the same time, Abdur Rehman provided Headley a video produced by the media wing of Al Qaeda in approximately August 2008, which claimed credit for the June 2008 attack on the Danish embassy in Islamabad, Pakistan, and called for further attacks against Danish interests to avenge the publication of the offending cartoons.
In February 2009, Headley and Abdur Rehman met with Kashmiri in the Waziristan region of Pakistan, where they discussed the video surveillance and ways to carry out the attack. Kashmiri told Headley that he could provide manpower for the operation and that Lashkar’s participation was not necessary. In March 2009, a Lashkar member advised Headley that Lashkar put the newspaper attack on hold because of pressure resulting from the Mumbai attacks. In May 2009, Headley and Abdur Rehman again met with Kashmiri in Waziristan. Kashmiri told Headley to meet with a European contact who could provide Headley with money, weapons and manpower for the Denmark attack, and relate Kashmiri’s instructions that this should be a suicide attack and the attackers should prepare martyrdom videos beforehand. Kashmiri also stated that the attackers should behead captives and throw their heads on to the street in Copenhagen to heighten the response from Danish authorities, and added that the “elders,” whom Headley understood to be Al Qaeda leadership, wanted the attack to happen as soon as possible.
In late July and early August 2009, Headley traveled from Chicago to various places in Europe, and met with and attempted to obtain assistance from Kashmiri’s contacts and, while in Copenhagen, he made approximately 13 additional surveillance videos. When he returned to the United States on Aug. 5, 2009, Headley falsely told a U.S. Customs and Border Protection inspector in Atlanta that he had visited Europe for business reasons. On Oct. 3, 2009, Headley was arrested at O’Hare International Airport in Chicago, intending ultimately to travel to Pakistan to deliver the approximately 13 surveillance videos to Abdur Rehman and Kashmiri.
One of Headley’s co-defendants, Tahawwur Rana, 52, of Chicago, was sentenced last week to 14 years in prison for conspiracy to provide material support to the Denmark terror plot and providing material support to Lashkar. Headley testified for the government at Rana’s trial in June 2011.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation was conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the FBI, with assistance from FBI offices in Los Angeles, Philadelphia and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
David Coleman Headley Sentenced to 35 Years in Prison for Role in India and Denmark Terror PlotsRead the Press Release
CHICAGO — DAVID COLEMAN HEADLEY, a U.S. citizen partly of Pakistani descent, was sentenced today to 35 years in prison for a dozen federal terrorism crimes relating to his role in planning the November 2008 terrorist attacks in Mumbai, India and a subsequent proposed attack on a newspaper in Denmark. Headley pleaded guilty in March 2010 to all 12 counts that were brought against him following his arrest in October 2009 as he was about to leave the country. Immediately after his arrest, Headley began cooperating with authorities.
Headley, 52, was ordered to serve 35 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. There is no federal parole and defendants must serve at least 85 percent of their sentence.
“Mr. Headley is a terrorist,” Judge Leinenweber said in imposing the sentence.
“There is little question that life imprisonment would be an appropriate punishment for Headley’s incredibly serious crimes but for the significant value provided by his immediate and extensive cooperation,” the government argued in seeking a sentence of 30 to 35 years.
In pleading guilty and later testifying for the government at the trial of a co-defendant, Headley admitted that he attended training camps in Pakistan operated by Lashkar e Tayyiba, a terrorist organization operating in that country, on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from three members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks in 2008 that killed approximately 164 people, including six Americans, and wounded hundreds more. Headley’s plea agreement in March 2010 stated that he “has provided substantial assistance to the criminal investigation, and also has provided information of significant intelligence value.”
In consideration of Headley’s past cooperation and anticipated future cooperation, which would include debriefings for the purpose of gathering intelligence and national security information, as well as testifying in any foreign judicial proceedings held in the United States by way of deposition, video-conferencing or letters rogatory, the Attorney General of the United States authorized the U.S. Attorney’s Office not to seek the death penalty.
“Today’s sentence is an important milestone in our continuing efforts to hold accountable those responsible for the Mumbai terrorist attacks and to achieve justice for the victims. Our investigations into Mumbai attacks and the Denmark terror plot are ongoing and active. I thank the many agents, analysts and prosecutors responsible for this investigation and prosecution,” said Lisa Monaco, Assistant Attorney General for National Security.
Headley was convicted of conspiracy to bomb public places in India; conspiracy to murder and maim persons in India; six counts of aiding and abetting the murder of U.S. citizens in India; conspiracy to provide material support to terrorism in India; conspiracy to murder and maim persons in Denmark; conspiracy to provide material support to terrorism in Denmark; and conspiracy to provide material support to Lashkar.
According to Headley’s guilty plea and testimony, he attended the following training camps operated by Lashkar: a three-week course starting in February 2002 that provided indoctrination on the merits of waging jihad; a three-week course starting in August 2002 that provided training in the use of weapons and grenades; a three-month course starting in April 2003 that taught close combat tactics, the use of weapons and grenades, and survival skills; a three-week course starting in August 2003 that taught counter-surveillance skills; and a three-month course starting in December 2003 that provided combat and tactical training.
Mumbai Terror Attacks
After receiving instructions in late 2005 to conduct surveillance in India, Headley changed his given name from Daood Gilani in February 2006 in Philadelphia to facilitate his activities on behalf of Lashkar by portraying himself in India as an American who was neither Muslim nor Pakistani. In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities.
Headley eventually made five extended trips to Mumbai — in September 2006, February and September 2007, and April and July 2008 — each time making videotapes of various potential targets, including those attacked in November 2008. Before each trip, Lashkar members and associates instructed Headley regarding specific locations where he was to conduct surveillance. After each trip, Headley traveled to Pakistan to meet with Lashkar members and associates, report on the results of his surveillance, and provide the surveillance videos.
Before the April 2008 surveillance trip, Headley and co-conspirators in Pakistan discussed potential landing sites in Mumbai for a team of attackers who would arrive by sea. Headley returned to Mumbai with a global positioning system device and took boat trips around the Mumbai harbor and entered various locations into the device.
Between Nov. 26 and 28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, including the Taj Mahal and Oberoi hotels, the Leopold Café, the Chabad House and the Chhatrapati Shivaji Terminus train station, each of which Headley had scouted in advance, killing approximately 164 victims and wounding hundreds more.
The six Americans killed during the siege were Ben Zion Chroman, Gavriel Holtzberg, Sandeep Jeswani, Alan Scherr, his daughter Naomi Scherr, and Aryeh Leibish Teitelbaum.
In March 2009, Headley made a sixth trip to India to conduct additional surveillance, including of the National Defense College in Delhi, and of Chabad Houses in several cities.
Denmark Terror Plot
Regarding the Denmark terror plot, Headley admitted and testified that in early November 2008, he was instructed by a Lashkar member in Pakistan, to conduct surveillance of the Copenhagen and Aarhus offices of the Danish newspaper Morgenavisen Jyllands-Posten in preparation for an attack in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. After this meeting, Headley informed co-defendant Abdur Rehman Hashim Syed (Abdur Rehman), also known as “Pasha,” of his assignment. Abdur Rehman told Headley words to the effect that if Lashkar did not go through with the attack, Abdur Rehman knew someone who would. Although not identified by name at the time, Headley later learned this individual was co-defendant Ilyas Kashmiri. Abdur Rehman previously told Headley that he was working with Kashmiri and that Kashmiri was in direct contact with a senior leader of Al Qaeda.
While in Chicago in late December 2008 and early January 2009, Headley exchanged emails with Abdur Rehman to continue planning for the attack and to coordinate his travel to Denmark to conduct surveillance. In January 2009, at Lashkar’s direction, Headley traveled from Chicago to Copenhagen to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus and scouted and videotaped the surrounding areas.
In late January 2009, Headley met separately with Abdur Rehman and a Lashkar member in Pakistan, discussed the planned attack on the newspaper, and provided them with videos of his surveillance. About the same time, Abdur Rehman provided Headley a video produced by the media wing of Al Qaeda in approximately August 2008, which claimed credit for the June 2008 attack on the Danish embassy in Islamabad, Pakistan, and called for further attacks against Danish interests to avenge the publication of the offending cartoons.
In February 2009, Headley and Abdur Rehman met with Kashmiri in the Waziristan region of Pakistan, where they discussed the video surveillance and ways to carry out the attack. Kashmiri told Headley that he could provide manpower for the operation and that Lashkar’s participation was not necessary. In March 2009, a Lashkar member advised Headley that Lashkar put the newspaper attack on hold because of pressure resulting from the Mumbai attacks. In May 2009, Headley and Abdur Rehman again met with Kashmiri in Waziristan. Kashmiri told Headley to meet with a European contact who could provide Headley with money, weapons and manpower for the Denmark attack, and relate Kashmiri’s instructions that this should be a suicide attack and the attackers should prepare martyrdom videos beforehand. Kashmiri also stated that the attackers should behead captives and throw their heads on to the street in Copenhagen to heighten the response from Danish authorities, and added that the “elders,” whom Headley understood to be Al Qaeda leadership, wanted the attack to happen as soon as possible.
In late July and early August 2009, Headley traveled from Chicago to various places in Europe, and met with and attempted to obtain assistance from Kashmiri’s contacts and, while in Copenhagen, he made approximately 13 additional surveillance videos. When he returned to the United States on Aug. 5, 2009, Headley falsely told a U.S. Customs and Border Protection inspector in Atlanta that he had visited Europe for business reasons. On Oct. 3, 2009, Headley was arrested at O’Hare International Airport in Chicago, intending ultimately to travel to Pakistan to deliver the approximately 13 surveillance videos to Abdur Rehman and Kashmiri.
One of Headley’s co-defendants, Tahawwur Rana, 52, of Chicago, was sentenced last week to 14 years in prison for conspiracy to provide material support to the Denmark terror plot and providing material support to Lashkar. Headley testified for the government at Rana’s trial in June 2011.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation was conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from FBI offices in Los Angeles, Philadelphia, and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Creator of Two Retail Marijuana Stores Sentenced to Serve 100 Months in Federal PrisonRead the Press Release
SAN DIEGO - A man who created two medical marijuana dispensaries and a phony board of directors as a front for a multimillion-dollar drug trafficking operation was sentenced today to serve 100 months in federal prison. The defendant was immediately remanded into custody.
Joshua John Hester of San Diego pleaded guilty January 3, 2012, to eight felony charges, including conspiracy to distribute over 1,000 kilograms of marijuana, conspiracy to maintain drug-related premises, conspiracy to launder money, and criminal forfeiture. He was sentenced by United States District Judge Irma E. Gonzalez.
According to his plea agreement, Hester admitted that he was the silent owner of two marijuana dispensaries known as the “Downtown Kush Lounge” in downtown San Diego and the “Green Kross Collective” in Mission Beach, where he made millions of dollars in the retail sale of marijuana.
This is the most significant prosecution of a large-scale dispensary operator in the Southern District of California. And, this was the first time federal authorities used wiretaps in an investigation of medical marijuana dispensaries.
“Joshua Hester is the poster boy for the types of marijuana dispensary operations that the federal government is criminally targeting,” said U.S. Attorney Laura Duffy. “He wasn’t overseeing a non-profit collective that served sick people. He was a convicted drug trafficker making millions of dollars selling high-quality marijuana to recreational users and exploiting state laws that were meant to help the seriously ill.”
“The role of IRS Criminal Investigation (CI) in the investigation of Joshua Hester was to follow the money laundered as part of the conspiracy to distribute illegal marijuana,” said N. Dawn Mertz Acting Special Agent in Charge of IRS CI's Los Angeles Field Office. “IRS CI will continue to collaborate with our law enforcement partners to trace the proceeds in this highly lucrative industry and enforce our nation’s federal tax and money laundering laws.”
“This case illustrates the kind of criminal activity going on within medical marijuana dispensary operations,” said San Diego Drug Enforcement Administration Acting Special Agent in Charge William R. Sherman. “The proprietors of these operations are simply drug dealers who are hiding behind the guise of compassionate care, when in fact their only motivation is making money. We will continue to investigate these criminal enterprises that are not only violating the Federal Controlled Substances Act, but are also involved in a variety of other criminal activities.”
Since October 2011, the United States Attorney’s Office in coordination with the DEA, has issued cease and desist letters to approximately 253 marijuana dispensaries operating in the district. There has been a 95% self-closure rate in response to the letters, with less than 12 dispensaries remaining open.
In his plea agreement, Hester admitted to two types of trafficking in this case. First, he went the traditional route, using a supplier, distributing over 1,000 kilograms of high-quality marijuana known as “Canadian BC Bud,” and laundering millions of dollars of profits. When his supplier was arrested, Hester opened dispensaries and started selling and manufacturing his own marijuana and purchased bulk quantity from others.
Hester admitted that he set up a “sham” Board of Directors at the Green Kross Collective and Downtown Kush Lounge, which had no authority or control over the management of the cooperatives. Hester also admitted that he laundered over $2 million in connection with the purchase of a residence in Rancho Santa Fe, California, where he manufactured marijuana at that location. Hester also admitted selling the supposedly non-profit Green Kross Collective for $250,000 in cash.
Hester acknowledged that he was the true owner of the 37-acre Palomar Mountain Property, but placed the property in another name to conceal his ownership. And, he acknowledged that he intended to grow marijuana at that location. As part of his plea agreement, Hester agreed to forfeit over $575,000 in assets, including cash, vehicles, and jewelry.
An investigation of Hester by federal drug agents began in spring of 2008 in connection with marijuana trafficking in San Diego County that was unrelated to dispensaries. It was a chance encounter with police in Glendale, California, on December 8, 2008, that propelled Hester into the dispensary business.
Glendale police had been following a suspected small-time marijuana dealer to a storage locker in Calabasas, California. “The local officers were extremely surprised to find $843,000 in cash inside the locker as they accidentally stumbled into a multi-million dollar international drug operation,” according to Hester’s sentencing memorandum.
Hester came on the radar when he and his key marijuana supplier, Rajeev Kaushal, arrived at the locker to pick up the cash. Hester was detained but not charged. But Kaushal was taken into custody in Los Angeles and ultimately pleaded guilty in Los Angeles. Court documents said that in the two years leading up to Kaushal’s arrest in December 2008, Hester had purchased over 3,000 pounds of high-grade Canadian marijuana from Kaushal for almost $9 million, and distributed it throughout San Diego County.
With his key supplier in custody in December 2008, Hester “turned to medical marijuana dispensaries” in the spring of 2009, according to the sentencing memorandum.
In February of 2010, the investigation shifted to the dispensary operations and agents from the Internal Revenue Service and the DEA’s Narcotics Task Force obtained federal wiretaps, intercepting text messages for a 30-day period, then expanding for another 30 days to both text messages and phone conversations.
According to the Government’s sentencing memorandum, “These wiretaps demonstrated that defendant Joshua Hester, who was making millions of dollars in connection with these ‘medical marijuana dispensaries,’ was using these ‘dispensaries’ as retail marijuana outlets and distribution centers. He had assembled management teams and had a Board of Directors, who worked under his direction.” Hester has admitted the board was a sham, and directors had no power.
The wiretap revealed that the Green Kross Collective and the Downtown Kush Lounge were making between $5,000 -7,000 each day at each location on the average, the sentencing memorandum said. Assuming that together, both locations generated at least $10,000 each day, Hester was grossing approximately $3.5 million dollars annually. The California sales tax records for the collectives show far less reported income.
According to court documents, the products seized by federal agents included: Many plastic bottles of THC-laden soft drinks labeled “7 High,” “Dr. Feelgood,” “Laughing Lemonade,” “Rasta Berry Iced Tea,” “Danktopia,” “Orange Cush,” “Root Buzz,” and “Marijuana Dank.” There were cookies and brownies labeled “White Chip Hash Brownie,” “Reese’s Crumbled Hash Brownie,” “Cannabis Creation Brownie,” “Reefers Peanut Butter Cup,” “M&M Hash Brownies,” Reefers Peanut Butter Cup with Nuts,” “Cannabis Creation Sugar Free Cookies,” and “Cannabis Creation Cookies.” Agents also seized marijuana candy, including “Jolly Stones THC Medicated Hard Candies,” and “Stone Candy,” and different flavored lollipops, including strawberry, watermelon, bubble gum, cotton candy, orange, lemon, pina colada, and grape. The officers also seized “Bud Head Bubblegum.”
The office computer showed that Green Kross Collective had approximately 1,732 members - most of the members were between the ages of 18-22, court records said. The computerized records also showed that the Downtown Kush Lounge had 811 members. Judge Gonzalez ordered restitution in an amount to be determined at a later date.
Likewise, in a related development, the Court on January 14, 2013, ordered Hester’s realtor on the Rancho Santa Fe and Palomar Mountain properties, Marco Luis, to pay restitution in the amounts of $329,767 to CitiGroup and $615,935 to JP Morgan. Luis pleaded guilty in August to money laundering charges in connection with those properties and was sentenced to 48 months in prison.
DEFENDANT Criminal Case No. 10CR2967-IEG Joshua John Hester SUMMARY OF CHARGESTitle 21, United States Code, Sections 846 and 841(a)(1)[count 1] - Conspiracy to distribute over 1,000 kilograms of marijuana
Title 21, United States Code, Sections 856(a)(1) and 846 [counts 6, 7 and 8] - Conspiracy to maintain drug related premises Title 18, United States Code, Sections 1956(a)(1)(A)(I) and 1956(h) [count 15] - Conspiracy to launder money
Title 18, United States Code, Sections 1957 and 1956(h) [count 16] - Conspiracy to launder money
Title 18, United States Code, Sections 1957 and 1956(h) [count 25] - Conspiracy to launder money
Title 18, United States Code, Sections 1956(a)(1)(B)(I) and 1956(h) [count 33] - Conspiracy to launder money
INVESTIGATING AGENCIESThis investigation was conducted by the Internal Revenue Service, Criminal Investigation, San Diego, and the San Diego Drug Enforcement Administration’s Narcotics Task Force. The lead prosecutor is Sherri Walker Hobson.
Comandante Wicho Heads to Federal PrisonRead the Press Release
BROWNSVILLE, Texas – Jose Luis Zuniga-Hernandez, 44, of Control, Tamaulipas, Mexico, is headed to prison for a term of seven years, United States Attorney Kenneth Magidson announced today. Zuniga-Hernandez aka “El Wicho” or “Comandante Wicho” or “XW” pleaded guilty to being an alien found within the United States after deportation and being an alien in possession of a firearm on Jan. 8, 2013.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Zuniga-Hernandez a total term of 84 months in prison. At the hearing, additional testimony was presented including that Zuniga-Hernandez was a high ranking member of the Gulf Cartel in charge of the Rio Bravo and Matamoros plazas at different times during the years prior to his arrest. Testimony further indicated that Zuniga-Hernandez had paid $57,000 dollars for a diamond, gold and ruby encrusted 38 super hand gun.
Zuniga-Hernandez’s sentence includes upward adjustments or increases in his calculated sentencing guideline range because he was in possession of the firearm in connection with another felony offense. The sentence also represents a departure from the sentencing guidelines because of the defendant’s prior criminal history, his possession of a loaded handgun, 3.7 grams of cocaine and almost $40,000 dollars at the time of his arrest. Evidence indicated that the defendant had previously been convicted for possessing with intent to distribute more than a ton of marijuana in 1990.
He was further ordered to pay a $10,000 fine. As an illegal alien, Zuniga-Hernandez is expected to face deportation proceedings following his release from prison. In handing down the sentence, Judge Hanen stated the crime committed represented a serious threat to the well-being of the citizens of South Texas.
Zuniga-Hernandez was previously convicted in January 2012, but later permitted to withdraw that plea. At the time he ultimately was convicted in January 2013, he admitted he had entered the United States illegally after he had been previously deported from the United States on Aug. 8, 1997. Prior to his deportation, Zuniga had been convicted of possession with intent to distribute marijuana on Feb. 14, 1990. Zuniga also admitted that at the time of his arrest he was in possession of a customized gold, diamond and ruby encrusted Colt 38 Super handgun.
Zuniga-Hernandez has been in jail since his arrest on Oct. 26, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Angel Castro.
Colorado River Man Pleads Guilty to Second-degree MurderRead the Press Release
PHOENIX – On Jan. 23, 2013, Loren Kaysang Tahbo, 33, of Parker, Ariz., and a member of the Colorado River Indian Tribes, pleaded guilty in federal district court to second-degree murder.
On Aug. 10, 2012, Tahbo stabbed and ultimately killed a man on the Colorado River Indian Tribes reservation. Tahbo left the scene of the murder and crashed the victim’s car into a canal. He later fled to a woman’s home where tribal police apprehended him. Tahbo is currently held in federal custody pending sentencing.
A conviction for second-degree murder carries a maximum penalty of life in prison, a $250,000 fine, or both. Sentencing is set before Judge Frederick J. Martone on April 2, 2013.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribes Police Department. The prosecution is being handled by Jennifer E. Green, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-01773-PHX-FJM
RELEASE NUMBER: 2013-008_TahboFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Colorado Man Sentenced for Receiving Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Denver, Colorado, man, formerly of Plymouth, Minnesota, was sentenced for receiving, via his computer, thousands of images of child pornography. United States District Court Judge Patrick J. Schiltz sentenced Russell Ronald Brimeyer to 85 months in federal prison on one count of receipt of child pornography. Brimeyer was charged on May 7, 2012, and pleaded guilty on June 26, 2012.
In his plea agreement, Brimeyer admitted that on April 15, 2009, he received, by way of his computer, thousands of images of a minor under the age of 12 engaged in sexually explicit conduct. He received the images through an Internet peer-to-peer, file-sharing program. Authorities discovered the images on Brimeyer’s computer and other media devices on September 24, 2009, during the execution of a search warrant at his residence.
This case was the result of an investigation by the Minnesota Cyber Crimes Task Force, which is sponsored by the Federal Bureau of Investigation and the U.S. Secret Service, and the National Center for Missing and Exploited Children. It was prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Presently, the Justice Department is funding a study concerning the correlation between involvement in child pornography and the hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
The U.S. Department of Justice is committed to combating the sexual exploitation of children, particularly via the Internet. In Fiscal Year 2010, 2,235 defendants pleaded guilty to federal child pornography charges, 2,222 of whom were sentenced to prison. In Fiscal Year
2009, 2,083 defendants were sentenced to prison on child pornography charges. For more information about these efforts, please visit the Department’s Project Safe Childhood website, at www.projectsafechildhood.gov.Clearwater Armed Career Criminal Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. sentenced Michael Anthony Moody (28, Clearwater) yesterday to 15 years and nine months in federal prison for being a felon in possession of a firearm and ammunition. Moody was sentenced under the Armed Career Criminal Act because of his extensive criminal history. Moody pleaded guilty in October 2012.
According to court documents, on May 8, 2012, Pinellas County Sheriff's Office deputies stopped Moody for a vehicle window tint violation. As deputies approached the vehicle, Moody tried to destroy a marijuana joint that he was smoking. During a search of Moody's vehicle, officers found a loaded Hi-Point 9mm semi-automatic handgun, with an attached laser and pressure switch attached to the grip. At the time of his arrest, Moody had eighteen prior felony convictions dating back to age sixteen, including multiple violent crime and narcotics offenses. As a previously convicted felon, he is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pinellas County Sheriff's Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Charlotte Man Sentenced to 15 Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – A Charlotte man has been sentenced to 15 years in prison for a firearms related offense announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. On Wednesday, January 23, 2013, U.S. District Court Judge Max O. Cogburn, Jr. sentenced Ramsey Dean Lewis, 44, of Charlotte to serve 180 months in prison, followed by three years of supervised release.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte Mecklenburg Police Department (CMPD).
In July 2011, a criminal bill of indictment charged Lewis with one count of possession of a firearm by a convicted felon. According to filed court documents and statements made in court, on December 8, 2010 Lewis possessed a loaded .22 caliber revolver in the car he was driving. Court records indicate that law enforcement recovered the firearm in the car after the defendant was involved in a car accident. Lewis pleaded guilty to the charge in December 2011.
Lewis’s prior convictions prohibit him from carrying a weapon and he was therefore sentenced as an armed career criminal by the Court.
Lewis has been in federal custody since July 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert J. Gleason of the U.S. Attorney’s Office in Charlotte.
California Hedge Fund Manager Doug Whitman Sentenced to 24 Months in Prison in Manhattan Federal Court for Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DOUG WHITMAN, a portfolio manager at Whitman Capital, LLC, was sentenced today in Manhattan federal court to 24 months in prison for his involvement in two insider trading schemes that earned his firm more than $900,000 in illegal profits. As part of the schemes, WHITMAN executed trades based on material, non-public information (“Inside Information”), related to three publicly traded companies: Marvell Technology Group, Ltd. (“Marvell”); Polycom, Inc. (“Polycom”); and Google, Inc. (“Google”). WHITMAN was convicted in August 2012 on two counts of conspiracy to commit securities fraud and two counts of securities fraud. He was sentenced by U.S. District Judge Jed S. Rakoff.
Manhattan U.S. Attorney Preet Bharara said: “With his sentence today, Doug Whitman joins scores of other privileged professionals who traded on inside information to gain an illegal edge and now live behind bars. His punishment shows yet again that supposedly elite financial players must operate by the same rules that apply to everyone else.”
According to the Indictment, evidence presented at Whitman’s trial, and testimony from other trials and court proceedings:
From 2007 through 2009, while running Whitman Capital, WHITMAN bought and sold Marvell stock and options based on Inside Information, including earnings, revenue, and/or other material financial and business information. The Inside Information was provided to WHITMAN by Karl Motey, an independent research consultant, who had obtained it from certain Marvell employees. In exchange for the Inside Information, WHITMAN paid Motey through a soft dollar payment arrangement between Whitman Capital and Motey’s consulting firm. WHITMAN also provided the Marvell Inside Information to Wesley Wang in exchange for other Inside Information.
In another scheme, from 2006 to 2007, WHITMAN obtained Inside Information, including earnings information and other material financial information pertaining to Polycom and Google from Roomy Khan, who worked in the hedge fund industry. Khan obtained the Polycom Inside Information from an employee at the company, and she obtained the Google Inside Information from an employee of a firm that provided investor relations services to Google. WHITMAN used the Polycom and Google Inside Information to execute securities transactions that earned his firm more than $900,000 in illegal profits. In exchange for the Inside Information, WHITMAN provided Khan with information about other publicly traded technology companies.
In addition to his prison term, WHITMAN, 55, of Atherton, California, was sentenced to one year of supervised release. He was also ordered to pay a $250,000 fine, a special assessment of $400, and to forfeit $935,306.
In issuing Whitman’s sentence, Judge Rakoff said, “Mr. Whitman was someone who had no compunctions about going across the legal lines that he was very well aware of, and excusing them, and even carrying those excuses into the courtroom when it served his interest.”
WHITMAN’s co-conspirators, Karl Motey, Roomy Khan, and Wesley Wang, previously pled guilty to insider trading charges. Wang was sentenced in Manhattan federal court to two years’ probation on January 9, 2013 by Judge Rakoff. Khan and Motey are scheduled to be sentenced by Judge Rakoff on January 31, 2013 and February 4, 2013, respectively.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation (“FBI”) and thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jillian Berman, Christopher LaVigne, and Micah Smith are in charge of the prosecution.
Calexico Resident Found Guilty of Receipt of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced that Lawson Hardrick, a retired United States Customs and Border Protection Officer was found guilty by a federal jury earlier today in San Diego of two counts of receipt of images of minors engaged in sexually explicit conduct, each a felony. The verdicts follow a one-day trial before United States District Judge Marilyn L. Huff.
According to the evidence presented at trial, agents with Immigration and Customs Enforcement’s Homeland Security Investigations conducted an investigation of persons using peer to peer file-sharing programs to make child pornography available to others. According to the forensic evidence introduced at trial, the defendant received videos of children as young as four and nine years old through a file-sharing program in 2008 through 2010. The indictment was handed up by a federal grand jury sitting in San Diego in July 2012.
The defendant is next scheduled to be in court on April 29, 2013 at 9:00 a.m., before Judge Huff for a sentencing hearing.
DEFENDANT Case Number: 12cr3061-H Lawson Hardrick SUMMARY OF CHARGESCounts: 2
INVESTIGATING AGENCY
Receipt of Images of Minors Engaged in Sexually Explicit Conduct- Title 18, United States Code, Section 2252(a) (2)
Maximum Penalties: 20 years’ incarceration with a five year mandatory minimum sentence, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.Immigration and Customs Enforcement’s Homeland Security Investigations
Baltimore Armed Robber Sentenced to over 15 Years in Prison for Robbing Two StoresRead the Press Release
Pointed a Gun at a Store Owner and Her Nine Year-Old SonBaltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Cedric Lamont Scott, age 39, of Baltimore, today to 183 months in prison, followed by three years of supervised release, for robbery and using a gun in relation to the robbery. Judge Blake also ordered Scott to pay restitution of $1,175.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, on January 21, 2012, Scott entered a store in the 6700 block of Reisterstown Road in Baltimore and selected some items which he took to the cash register. The store owner’s nine year-old son asked his mother if he could ring up the sale. As the boy rang up the sale, Scott pointed a handgun at the boy and his mother and demanded all the cash. The boy and his mother handed Scott all the cash from the register. Scott also took an envelope filled with cash proceeds from the business, the coin drawer from beneath the register and the mother’s cell phone, before fleeing.
On February 16, 2012, Scott robbed a business in the 4600 block of W. Northern Parkway in Baltimore, pretending to want to purchase an item, then demanding money from the cashier. The store manager approached the cash register and realizing that a robbery was taking place, ran out the front door to get help. Scott chased the manager and during a struggle between the two, Scott fired his gun at least once. Scott reentered the store and fired a shot into the cash register drawer lock. When the register failed to open, Scott slammed it to the ground which caused the cash drawer to open. Scott took all the bills and some coins, and fled on foot.
Baltimore Police officers arrived, saw Scott running away and ordered him to stop. Scott continued running, but the officers were eventually able to capture and arrest Scott. Officers seized from Scott a loaded .22 caliber revolver, $282 stolen in the second robbery, and the cell phone Scott took from the store owner during the first robbery.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
BRosebud Woman Pleads Guilty to Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Sarah Richenda Richards, age 25, of Rosebud, South Dakota, appeared before United States Magistrate Judge Mark A. Moreno on January 22, 2013, and pled guilty to Assault by Striking, Beating and Wounding and Simple Assault. The maximum penalty upon conviction on each count is 6 months in custody, a $5,000 fine, or both; and a $10 special assessment.
The conviction stems from an incident that took place on November 30, 2011, when Richards stabbed the victim with a butcher knife.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Marie H. Ruettgers.
A presentence investigation was ordered. The defendant was released to a third party custodian pending sentencing. A sentencing date has been set for March 22, 2013.
Another Orthofix Defendant Sentenced for Committing Medicare FraudRead the Press Release
BOSTON – A former Orthofix territory manager was sentenced yesterday for defrauding Medicare by forging patient medical records.
Michael J. McKay, 32, was sentenced by U.S. District Court Judge Denise J. Casper to one year of probation, with the first three months to be served in home confinement, and ordered to forfeit $10,000 and pay a fine of $3,000. In May 2012, McKay pleaded guilty to healthcare fraud.
Between 2008 and 2009 McKay was a territory manager for Orthofix, a company that manufactured and distributed bone growth stimulator medical devices that were intended to assist patients with bone fractures that did not heal properly. Medicare and many private insurance carriers have specific guidelines describing when it will pay for bone growth stimulators. When McKay received orders for patients that did not satisfy these guidelines, McKay frequently falsified the patients’ medical records to make it appear as though the order met Medicare’s rules so that Medicare would pay for a claim that otherwise would not be covered. Between 2008 and 2010, federal insurance carriers paid more than $70,000 for bone growth stimulators for claims where McKay falsified medical records. McKay altered physician’s chart notes, changing the dates of patient visits, describing patient visits that did not occur, and inserting false diagnoses. McKay also forged prescriptions and Medicare Certificates of Medical Necessity within the orders. Orthofix fired McKay after it discovered his fraud. Even after he was fired, however, McKay continued to submit orders for stimulators by submitting them to a colleague, Derrick Field, who split the commissions with Field. Even after he was fired, McKay continued to forge chart notes, prescriptions and CMNs in the orders he submitted to Field. On January 9, 2013, Field was sentenced to five months home confinement, two years of probation, and $44,000 in fines and forfeiture.
In addition to the McKay sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit, and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- On January 22, 2013, Tom Guerrieri, the former vice president of sales for Orthofix, was sentenced to eight months in prison and ordered to pay $50,000 in fines and forfeiture for paying kickbacks;
- In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison, six months home confinement, and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- In December 2011, Mitchell Salzman pleaded guilty while he was a regional manager for Orthofix and is scheduled to be sentenced on Jan. 31, 2013; and
- In September 2012, Brian Racey pleaded guilty to health care while he was a territory manager for Orthofix and is scheduled to be sentenced on Feb. 20, 2013 in the U.S. District Court for the Eastern District of Pennsylvania.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations; the Federal Bureau of Investigation Boston Field Division; and the Department of Defense, Defense Criminal Investigative Service – Boston Resident Agency. It was being prosecuted by Assistant U.S. Attorneys David Schumacher and Jeremy Sternberg of Ortiz's Health Care Fraud Unit.