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23 January 2013
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 23, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
JERARD DAVID JO THREEFINGERS, a 23-year-old resident of Lame Deer, appeared on charges of involuntary manslaughter and assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of these charges, THREEFINGERS faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
KYLE LEE FULMER, a 29-year-old resident of Ashland, appeared on a charge of involuntary manslaughter. He is currently released on special conditions. If convicted of this charge, FULMER faces possible penalties of 8 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
DELBERT DEAN SPEAR, a 24-year-old resident of Crow Agency, appeared on a charge of assault with a dangerous weapon. He is currently detained. If convicted of this charge, SPEAR faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Marcia K. Hurd is the prosecutor for the United States. The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
KERRY LYNN VAN HAELE, a 29-year-old resident of Billings, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine and (2) counts of possession with the intent to distribute and distribution of methamphetamine. He is currently detained. If convicted of these charges, VAN HAELE faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 8 years supervised release. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force, the Drug Enforcement Administration, and the U.S. Department of Homeland Security - Homeland Security Investigations.
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.
Hungarian Man Sentenced for Scheme Selling Vehicles over the InternetRead the Press Release
BOSTON – A Hungarian man was sentenced today for conspiring to commit money-laundering and using a counterfeit passport in a scheme to sell vehicles over the Internet.
Zsolt Lendvai, 27, was sentenced by U.S. District Court George A. O’Toole, Jr., to two years in prison and ordered to pay $1.1 million in forfeiture and restitution to the victims. In July 2012, Lendvai pleaded guilty.
In October 2011, Lendvai, and another conspirator, Eniko Somodi, entered the United States from Hungary. While here, a conspirator identified as Z.K., provided them false passports and other identity documents and directed Lendvai and Somodi to use their new false identities to open up mailboxes and bank accounts. Other conspirators then fraudulently sold vehicles over the Internet and directed purchasers to send the purchase money to the conspiracy’s newly-opened bank accounts. Lendvai and Somodi transferred the purchase money elsewhere, often by wiring them to bank accounts in Hong Kong or elsewhere outside the U.S. More than $1 million moved through these accounts.
Sentencing for Eniko Somodi is currently scheduled for March 8, 2013.
United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner Edward Davis made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Scott L. Garland and Veronica Lei of Ortiz’s Cybercrimes and Asset Forfeiture Units.
Hidalgo Man Heads to Prison for Bringing Undocumented Aliens into the U.S.Read the Press Release
McALLEN, Texas – Adan Garcia-Figueroa, 59, of Hidalgo, will spend a total of 70 months in federal prison following his convictions on two counts of bringing an undocumented alien into the United States and one count of illegally re-entering the United States after a prior deportation, United States Attorney Kenneth Magidson announced today. Garcia-Figueroa was convicted by a jury Nov. 16, 2012, following three days of trial.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Garcia-Figueroa 70 months for each of the three charged offenses including two counts of bringing aliens into the U.S. and one count of illegal re-entering the country following a prior deportation. All the sentences will be served concurrently. In handing down the sentence, Judge Crane specifically found Garcia-Figueroa obstructed the administration of justice when he testified falsely at trial. As a result of this finding, Judge Crane increased Garcia-Figueroa’s sentence. Garcia-Figueroa is also expected to face deportation proceedings following his release from prison.
During the trial, the government presented photos, maps and witness testimony illustrating Garcia-Figueroa’s unlawful entry despite being an aggravated felon and while bringing several undocumented aliens into the United States by navigating the Rio Grande River in the shadow of the Hidalgo Port of Entry. The evidence indicated the defendant utilized a raft to bring 12-17 aliens from various Latin American countries, including El Salvador, into the United States during three successive trips across the river. Agents assigned to a Border Patrol Baymaster marine vessel apprehended Garcia-Figueroa while he attempted to flee back to Mexico and later apprehended seven additional aliens after tracking their movement from the river.
Garcia-Figueroa testified and claimed he had previously set fishing nets downstream from the Hidalgo Port of Entry. He attempted to convince the jury he was in the process of floating down several miles of the river in an inflatable raft to retrieve his nets when two border patrol boats appeared and plucked him from his raft and falsely accused him of drug trafficking. Garcia-Figueroa claimed he was the only boater on the water although he admitted to using a raft similar to the one used by the alleged alien smuggler. Garcia-Figueroa could not account for the undocumented aliens that had crossed the river at the same time and place where Garcia-Figueroa was apprehended.
Despite these claims, the government was able to offer additional evidence showing Garcia-Figueroa made numerous admissions to the other aliens as they were being transported to the Border Patrol station including offering to assist the aliens with their return to the United States following their deportation.
Garcia-Figueroa will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigations and the United States Border Patrol. Assistant United States Attorney Grady J. Leupold prosecuted the case.
Hartford Man Pleads Guilty to Illegal Firearm Possession ChargeRead the Press Release
January 23, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that ALEXANDER GARAY, 36, of Hartford, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on May 22, 2012, GARAY was arrested after he engaged Hartford police officers in a car chase during which he nearly hit an officer, threw bags of heroin out of his car window and forced another individual’s vehicle off the road. A subsequent search of GARAY’s vehicle revealed a Taurus 9 millimeter pistol and an additional quantity of heroin.
The firearm GARAY possessed had been reported stolen from its legal owner in 2006.
Prior to May 2012, GARAY had been convicted of multiple felony offenses, including weapon in a motor vehicle (twice), criminal possession of a firearm, sale of hallucinogens/narcotics, possession of narcotics (twice), and stealing a firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Bryant has scheduled sentencing for March 20, 2013, at which time GARAY faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
GARAY has been detained since his arrest by Hartford Police on May 22, 2012.
This case was investigated by the Hartford Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Michelle McConaghy.
The Project Safe Neighborhoods Initiative is aimed at reducing gun and gang violence, deterring illegal possession of guns, and improving the safety of residents of Connecticut’s cities.
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(203) 821-3722 [email protected]Grand Prairie, Texas, Man Sentenced to 210 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Richard Warner, 45, was sentenced this afternoon by U.S. District Judge Jorge A. Solis to 210 months in federal prison and a 10-year term of supervised release, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Warner has been in federal custody since he entered that guilty plea on August 31, 2011.
According to documents filed in the case, Warner admits that in 2008 he was involved in trading images of child pornography over the internet. He further admits that on January 11, 2011, when FBI Special Agents knocked on the door of his Grand Prairie, Texas, residence, he agreed to speak to them about his activities involving child pornography on his computer. He acknowledged that he first became interested in child pornography in 2004-2005, he preferred thin, preteen boys engaged in sexually explicit conduct, and some of his child pornography images and videos also contained bondage and bestiality.
Warner allowed his computer and hard drive to be searched and indicated that in addition to numerous images and videos of child pornography, the FBI would also find stories he had written describing sadistic sexual escapades between an adult male and a minor boy. A forensic analysis conducted by the North Texas Regional Computer Forensic Laboratory on Warner’s computer and external hard drive revealed several thousand images and videos of child pornography in addition to sexual and sadistic stories about an adult male and a 10-year-old boy.
This matter was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Camille Sparks.
Gastonia Man Handed 6-Month Prison Sentence for Vehicle Emissions FraudRead the Press Release
Defendant Delivered Fraudulent Emissions Certificate to Undercover Agents in Exchange for Cash
CHARLOTTE, N.C. – A Gastonia man was sentenced late Wednesday, January 22, 2014, to serve six months in prison for producing a fraudulent vehicle emissions certificate to undercover agents, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Mohammed Hafeez Awan, 52, of Gastonia, to three years of supervised release, six months of which Awan will spend in home confinement. Awan was also ordered to perform 50 hours of community service and to a pay a $1,000 fine.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV License & Theft Bureau).
According to court records and yesterday’s sentencing hearing, Awan is the former owner of Prestige Car Care (Prestige), an automobile repair shop and state licensed vehicle emissions station in Charlotte. In 2005, as a result of a state investigation into illegal emissions inspections, it was determined that Awan and his employees conducted the fraudulent inspections, commonly referred to as “clean scanning,” by connecting Prestige’s emission testing equipment into a designated surrogate vehicle that would pass the state’s emission testing requirements. As a result of that investigation, the NC DMV License & Theft Bureau suspended Prestige’s safety/emissions inspection license for a period of 11 years.
According to yesterday’s sentencing hearing, in September 2011, while Awan’s shop was no longer able to conduct emissions inspections, Awan conspired with Jassim Juburi, a former employee of Central Auto Inspection & Repair in Charlotte to continue this practice. According to court documents, law enforcement agents working undercover paid Awan $150.00 in exchange for a fraudulent vehicle emissions certificate and without ever producing a vehicle to be inspected. The fraudulent emissions test and certificate were generated by Awan’s co-conspirator, Jassim Juburi, a former employee of Central Auto Inspection & Repair in Charlotte. Juburi was previously sentenced to an 18-month prison term for conducting more than 530 illegal “clean scan” inspections.
The Clean Air Act requires vehicle emission inspections in geographic regions that exceed national ambient air quality standards. According to the EPA, the Charlotte metropolitan area exceeds the 8-hour standard set for Ozone, a potent irritant that can cause lung damage and other types of respiratory problems.
In March 2012, Awan pleaded guilty to one count of conspiracy to violate the Clean Air Act by conducting false vehicle emissions inspections. Awan was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation of this case was conducted by the EPA’s criminal investigation division, NC SBI’s Diversion and Environmental Crimes Unit, and NC DMV License & Theft Bureau, with assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch. The prosecution was handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Former Professor Sentenced to 15 Years in Prison for Producing Child PornographyRead the Press Release
PITTSBURGH - A resident of Westmoreland County has pleaded guilty to a charge of production of material depicting the sexual exploitation of a minor, and has been sentenced in federal court to 180 months imprisonment, to be followed by a term of supervised release to extend the remainder of his life, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Balazs Tarnai, 36, formerly of Greensburg, Pa. At the time of his arrest, Tarnai was a Professor of Special Education at Seton Hill University in Greensburg, Pa. He holds a PhD from Penn State University.
According to information presented to the court during the guilty plea phase of the proceedings, on March 30, 2011, Tarnai knowingly received visual depictions of minors engaged in sexually explicit conduct by computer and the United States Mail. A search of his residence and seizure of his laptop computer with valid consent revealed material depicting the sexual exploitation of prepubescent minor boys, as well as homemade videos and images of minor boys using the bathrooms in his home.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the Greensburg Police Department, and the Department of Homeland Security - Immigration and Customs Enforcement, HSI - Pittsburgh, for the investigation leading to the successful prosecution of Tarnai.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Postal Worker Pleads Guilty to Federal Workers Compensation FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Jessy Paliyath Peter (55, Lakeland) today pleaded guilty to theft of government funds and making a false statement to obtain federal employee's compensation. She faces a maximum penalty of 15 years in federal prison.
According to the plea agreement, the Federal Employees Compensation Act, which is administered by the U.S. Department of Labor Office of Workers’ Compensation Programs (DOL/OWCP), provides compensation benefits to civilian employees of the United States for disabilities due to personal injuries sustained while in the performance of their official duties at the workplace. The DOL/OWCP requires disabled federal employees to complete and submit a Form EN-1032 on an annual basis. The DOL/OWCP uses the information provided by the employee on the form to determine whether the employee is still eligible to receive wage replacement income or if an adjustment in benefits is warranted.
In 2000, Peter, who was then employed as a mail clerk in Polk County, alleged that she had sustained an injury to her back. Later, she made application for and was approved to receive federal employees' compensation benefits.
From 2003 to at least December 2012, Peter worked as a sales representative for Avon, Inc. and earned commissions on her sales. From February 2009 to at least December 2012, Peter exercised regularly at Lifestyle Family Fitness Center for an average of four to five days per week, typically for one to two hours per visit. Surveillance video revealed that she routinely and actively participated in group fitness classes and exercised on weight machines, consistently exceeding her medical restrictions. Two physicians, who had previously examined Peter, viewed the surveillance video and advised that Peter had misrepresented her physical condition to them. The physicians removed all medical restrictions and cleared Peter for full duty employment.
In May 2011, Peter filed a false and fraudulent Form EN-1032. Specifically, she reported that she was not employed; reported no income of any kind; and concealed the true state of her physical health. Peter made these false statements because she did not want her DOL/OWCP wage replacement benefits to be reduced or terminated.
This case was investigated by the United States Postal Service Office of Inspector General. It is being prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Former Postal Employee Sentenced to 2 Years in Prison for Stealing a Postal Money Order Purchased by a CustomerRead the Press Release
Also Set Fire to the Postmaster’s Office to Cover-up the TheftBaltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Dana Lind Nixon, age 27, of Baltimore, Maryland, today to two years in prison, followed by three years of supervised release, for stealing a postal money order purchased by a customer. Nixon also set fire to the Postmaster’s office in an attempt to cover up the theft. Judge Quarles ordered Nixon to pay restitution of $4,006.29.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Maryland State Fire Marshal William E. Barnard.
According to Nixon’s guilty plea, she was an employee of the United States Postal Service working as a Sales and Distribution Associate at the Belcamp, Maryland Post Office. Nixon admits that early on the morning of May 15, 2012, she set fire to the Postmaster's office in an attempt to conceal her theft of a $1,000 postal money order. The fire was quelled, although damage was estimated at approximately $5,000. The Fire Marshal determined that the fire was intentionally set and identified seven different ignition points and other indicators of arson.
In the course of investigating the arson, Postal Inspectors interviewed the Belcamp Postmaster and learned that on May 14, 2012, the Postmaster left paperwork on her desk documenting a complaint from a customer who purchased a $1,000 postal money order on May 8, 2012. The customer alleged that, upon returning home, she realized that the postal clerk, later determined to be Nixon, failed to provide her with the purchased $1,000 postal money order. Further investigation revealed that shortly after the customer purchased the money order from Nixon, Nixon cashed the money order at her own bank in her own name.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service, ATF, and Maryland State Fire Marshal’s Office for their work in the investigation, with assistance from the U.S. Postal Service - Office of Inspector General,. Mr. Rosenstein thanked Assistant United States Attorney Rachel M. Yasser, who prosecuted the case.
Former Miami Clinic Director Sentenced to 70 Months in Prison<br /> for Role in HIV Infusion Fraud SchemeRead the Press Release
A former Miami HIV infusion clinic director was sentenced today to serve 70 months in prison for his role in a $26.2 million HIV infusion fraud scheme, announced Assistant Attorney General Lanny Breuer of the Criminal Division, U.S. Wifredo A. Ferrer of the Southern District of Florida, 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.
Former Humana Inc. Employee Admits to Taking Kick-Backs Totaling $2 Million Dollars in an Insurance Sales Bribery SchemeRead the Press Release
LOUISVILLE, Ky. – Former Humana Inc. sales manager, James E. Wenger, pleaded guilty in United States District Court in Louisville, Kentucky today, to charges of racketeering and bribery, in connection with his former position, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Wenger, age 50, of Louisville, pleaded guilty to a single count federal information charging him with taking kickbacks totaling at least two million dollars while employed as part of Humana’s sales and marketing division known as the MarketPoint Organization.
According to the plea agreement, Wenger admits that in 2005, he, along with others, met at a hotel in Florida to discuss sending insurance agents to Shep Cutler, one of the larger Managing General Agencies (MGA) and Dan McNerney, one of his business partners, and also a MGA. Wenger and co-defendant Glenn Fine, another Humana employee, agreed to send insurance agents, who wanted to sell Humana Medicare Advantage and Prescription Drug Plan products, to Cutler and McNerney in exchange for Cutler sending payments to Wenger and Fine. The four agreed to split the override fees, and each would receive payments of 25%. Fine and Wenger agreed to set up fictitious businesses accounts in their wives' names. Wenger admitted he sent agents to Cutler and McNerney's MGAs, and acknowledged his wife did not provide any service in exchange for the money received from Cutler. Wenger was not authorized by Humana to enter into a kickback relationship with Cutler and McNerney. Wenger received approximately $2,000,000 for his participation in the scheme. As a result of this kickback arrangement, Humana suffered a loss to its business, and had to pay legal and other investigative costs.
At sentencing, Wenger faces a combined maximum term of five years in prison, a combined maximum fine of $250,000, and a three year period of supervised release. Wenger may also be ordered to forfeit any and all property derived from the gross proceeds of the offenses for which he has pleaded guilty. Co-defendant Glenn Fine is scheduled to make an initial appearance on February 19, 2013, in U.S. District Court located in Louisville, Kentucky.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and is being investigated by the Federal Bureau of Investigation (FBI), the Department of Health and Human Services, Office of Inspector General, with assistance from Humana Inc.
Former Executive Director of Chelsea Housing Authority Charged with Falsely Reporting SalaryRead the Press Release
BOSTON - The former Executive Director of the Chelsea Housing Authority was charged today in federal court with falsely reporting his salary in annual budgets required by the U.S. Department of Housing and Urban Development (HUD) and the Massachusetts Department of Housing and Community Development.
Michael E. McLaughlin, 67, of Dracut, was charged in an Information with four counts of falsifying a record in a federal agency matter with intent to impede and obstruct that matter. The Information alleges that McLaughlin knowingly concealed, falsified, made false entries, and caused such concealment and false entries, in records and documents, namely, the annual fiscal year budgets of the Chelsea Housing Authority from 2008 to 2011, and submitted them electronically to the Massachusetts Department of Housing and Community Development.
The Information alleges that McLaughlin falsely stated that his budgeted annual salary was $151,945, when he knew that his actual salary for FY 2008 was at least $242,908 under his existing contract. It is further alleged that McLaughlin made the same kind of concealment of his rising salary in the ensuing three years. Specifically, in FY 2009 McLaughlin falsely reported that his budgeted annual salary was $156,503, when he knew that his actual salary was at least $267,199 under his existing contract and his total compensation was at least $292,902, as reflected in his 2008 W-2. Then in FY 2010, McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $275,215 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2. In FY 2011 McLaughlin falsely reported that his budgeted annual salary was $160,415, when he knew that his actual salary was at least $283,471 under his existing contract and his total compensation was at least $324,896, as reflected in his 2009 W-2.
The maximum punishment under the statute is 20 years in prison, followed by three years of supervised release and a fine of $250,000 on each count.
United States Attorney Carmen M. Ortiz; Cary Rubenstein, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General; and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement today. The Massachusetts Inspector General’s Office and Massachusetts State Police also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorney S. Theodore Merritt of the Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney Edward Beagan from the Massachusetts Attorney General’s Office.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Doctor at District of Columbia Jail Pleads Guilty to Sexually Assaulting A Male Inmate in 2008-Defendant Has Pled Guilty to Similar Charges in Georgia-Read the Press Release
WASHINGTON - Lewis Jackson, 36, of Atlanta, Ga., who formerly did contract work as a medical doctor at the District of Columbia Jail, has pled guilty to a felony charge stemming from a sexual assault of an inmate, U.S. Attorney Ronald C. Machen Jr. announced today.
Jackson, formerly of Washington, D.C., pled guilty on Jan. 22, 2013 in the Superior Court of the District of Columbia to one count of second-degree sexual abuse. He will be sentenced later this year by the Honorable Herbert B. Dixon, Jr. Jackson faces a statutory maximum of 20 years in prison.
According to the government’s factual proffer at the plea hearing, on Nov. 10, 2008, Jackson was working at the D.C. Jail as a medical doctor. The victim, then an inmate at the jail, was sexually assaulted by Jackson when he went to him for medical care. The victim immediately reported the matter to authorities at the D.C. Jail.
The government secured Jackson’s indictment last year after developing DNA evidence. Within weeks of Jackson’s indictment in the District of Columbia, he was indicted for similar crimes in federal court in Atlanta. In that case, Jackson pled guilty in November 2012 to federal charges stemming from the sexual abuse of three inmates at a federal penitentiary where Jackson had worked as a doctor. Jackson, who worked at the federal penitentiary from January 2011 through July 2012, admitted that he sexually abused the three inmates in October 2011. He is to be sentenced in Atlanta on Feb. 7, 2013. His sentencing in the District of Columbia will be scheduled after those proceedings.
In announcing the plea, U.S. Attorney Machen praised the work of members of the Metropolitan Police Department’s Sexual Assault Unit. He also acknowledged the efforts of Paralegal Specialist Jason Manuel and Victim Advocate Tracy Hawkins. Finally, he commended the work of former Assistant U.S. Attorney Stephanie Brooker, and Assistant U.S. Attorneys Sharon Donovan and Peter V. Taylor, who investigated and prosecuted this case.
13-019Former Director of Broward Public Works Department, Two Contractors, and Another Charged with Offering and Accepting Bribes in Connection with County ContractsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the unsealing of a criminal complaint and the filing of an Information charging defendants Jihad El Eid, 53, formerly of Plantation, FL, and Wael El Eid, 45, formerly of Coral Springs, FL, and both currently residing in Lebanon, with bribery in connection with programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, and conspiracy to commit those offenses, in violation of Title 18, United States Code, Sections 666, 1020, 1341, 1349, 1951, and 371, respectively. Also charged are defendants Anthoneel Allen, 40, of Sunrise, FL, and James Hashim, 50, of Plantation, FL, for conspiracy to commit bribery in programs receiving federal funds, highway fraud, mail fraud, extortion under color of official right, tax fraud, Disadvantaged Business Enterprise fraud, all in violation of Title 18, United States Code, Sections 371. Defendants Allen and Hashim made their initial appearance in federal court this morning before U.S. Magistrate Judge Barry S. Seltzer. Both were released on a $100,000 personal surety bond. Jihad El Eid and Wael El Eid are believed to be out of the country and did not appear in court.
According to the criminal complaint and the Information, in 1998, Jihad El Eid was hired as the director of the Broward County Traffic Engineering Division (BCTED), which is responsible for constructing, repairing, and maintaining the traffic systems and signs on the roadways in Broward County. Defendant Allen owned Southeast Underground Utilities, Corp., (SUU), in Plantation, Florida, which was in the business of installing, repairing and maintaining street lights and traffic signals. Prior to 2005, SUU had no contracts with the Broward County government or any Broward County municipality. In or about 2005, Allen hired defendant Hashim as a vice president of SUU. Hashim was to work as an estimator and to help SUU obtain government contracts.
According to the criminal complaint and the Information, beginning in the fall of 2006 through 2010, at the request of Jihad El Eid, Allen and Hashim provided to Jihad El Eid more than $150,000 in cash, a 2003 Ford Taurus, and a job at SUU for Wael El Eid (a relative of Jihad El Eid). Allen and Hashim allegedly made these payments to curry favor with Jihad El Eid. In return, Jihad El Eid allegedly helped SUU obtain work on multi-million dollar projects initiated by the BCTED, including the Signalization and Street Light Installation (SSLI) contract, a contract to make installations and do repair work of the street lights and traffic equipment in Broward County; the Advanced Transportation Management System (ATMS Project), a federally-funded project, which required the contractor to install an integrated traffic control system which entailed laying hundreds of thousands of feet of underground cable and conduit in order to synchronize traffic flow within Broward County; and the Video Detection Contract (VDC), which required the contractor to install video detection cameras in various intersections in Broward County in order to improve traffic flow. Jihad El Eid also assisted SUU concerning billing, specification and inspection matters that resulted in SUU being overpaid by at least $3,000,000.
According to the Information, Allen and Hashim conspired to evade paying federal income and employment taxes on bonuses and payments on the purchase of Hashim’s $1.25 million house in Plantation, Florida. The charging documents also allege that Allen filed a fraudulent application on behalf of SUU to have SUU certified as a Disadvantaged Business Enterprise (DBE), which resulted in SUU being awarded awarded directly or as a subcontractor approximately 25 contracts from Broward County and other state, county and local governments in the State of Florida based on its fraudulently obtained DBE status, which entitled SUU to receive in excess of $10,000,000 in government contracts.
U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”
“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”
“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”
If convicted of the charges in the criminal complaint, defendants Jihad El Eid and Wael El Eid face a possible maximum statutory sentence of up to 20 years in prison. If convicted of the charges in the Information, defendants Allen and Hashim each face a possible statutory maximum sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Broward County Office of the County Attorney, the Broward County Professional Standards Section, the Federal Highway Administration, the Florida Department of Transportation, and the employees of the Broward County Traffic Engineering Division. The cases are being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Attachments: Complaint (PDF)
Information (PDF)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.
Foreign National Pleads Guilty to Trafficking in Cocaine and MethamphetamineRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, has pled guilty, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Gonzalo Nunez-Camacho, 38, a citizen of Mexico who most recently resided in West Valley City, Utah, pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine; Conspiracy to Distribute and Possess with the Intent to Distribute Methamphetamine; and Interstate Travel in Support of Racketeering. Nunez-Camacho also admitted the forfeiture allegation in the indictment and agreed to forfeit to the United States the amount of $532,000, in addition to the $35,738 in United States currency which was seized from him by law enforcement on June 23, 2012. In addition, Nunez-Camacho agreed to the entry of a Judicial Order of Removal, which will require that he be deported from the United States following the service of his sentence.
Nunez-Camacho is currently scheduled to be sentenced on May 10, 2013. Each of the conspiracy counts carries a potential sentence of 10 years to life in prison, a $10,000,000 fine, and a term of supervised release of at least 5 years. Interstate Travel in Support of Racketeering carries a potential sentence of not more than 5 years in prison, a $250,000 fine, and not more than 3 years supervised release. Each of the counts also carries a $100 special assessment.
Three of the ten conspirators charged in the indictment have entered pleas of guilty. Five are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are presumed to be innocent of a charge and are entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff’s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Foreign National Pleads Guilty to Cocaine ConspiracyRead the Press Release
A citizen of Mexico, who was named, along with nine others in an indictment returned in August 2012, has pled guilty, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Vincente Lopez, 38, a citizen of Mexico, who most recently resided in Madison, Illinois, pled guilty to Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine. Lopez also admitted the forfeiture allegation in the indictment and agreed to forfeit to the United States the amount of $27,104. In addition, Lopez agreed to the entry of a Judicial Order of Removal, which will require that he be deported from the United States following the service of his sentence.
Lopez is currently scheduled to be sentenced on May 10, 2013, at which time he faces a potential sentence of 10 years to life in prison, a $10,000,000 fine, a term of supervised release of at least 5 years, and a $100 special assessment.
Three of the ten conspirators charged in the indictment have entered pleas of guilty. Five are awaiting trial, and two remain fugitives. An indictment is a formal charge against a defendant. Under the law, those defendants who have not yet been convicted are 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.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff’s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Five Sentenced in Connection with Cigarette Smuggling Ring Operating in North and South CarolinaRead the Press Release
The Defendants Were Caught In ATF And IRS-CI Undercover Investigation Involving More Than 486,000 Cartons Of Purportedly Stolen Cigarettes Worth Over $20 Million
CHARLOTTE, N.C. – Five of twelve conspirators charged with running a cigarette smuggling ring in North and South Carolina were sentenced in U.S. District Court on Wednesday, January 22, 2014 on cigarette trafficking and money laundering charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The smuggling ring was uncovered over the course of “Operation Burn Notice,” a multi-agency investigation into the interstate transport and sales of stolen property and money laundering in Charlotte and Greensboro, N.C. and Columbia, S.C.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department join U.S. Attorney Tompkins in making today’s announcement.
Chief U.S. District Judge Frank D. Whitney handed down the federal sentences ranging from 14 months to 18 years in prison:
• Kamal Zaki Qazah, 35, of Columbia, S.C., was sentenced to 18 years in prison followed by two years of supervised release and ordered to forfeit property associated with his offenses.
• Tha’er Ismail Ayyad, 48, of Kernersville, N.C., was sentenced to 41 months in prison followed by two years of supervised release. Ayyad, a Jordanian national, was also convicted of one count of visa fraud and will be deported upon completion of his sentence.
• Ahmed Ibrahim, age 48, of Columbia, S.C., was sentenced to 30 months in prison followed by two years of supervised release.
• Ziad Hashem Najjar, 47, of Greensboro, N.C., was sentenced to 24 months in prison followed by two years of supervised release.
• Ahmed Samy Hosney Kareem, 35, of Matthews, N.C., was sentenced to 14 months in prison followed by two years of supervised release.
The final defendant in the conspiracy, Nasser Kamal Alquza, 48, of Mt. Pleasant, N.C., will appear before Judge Whitney on January 30, 2014, for his final sentencing and pending forfeiture of property associated with his offenses.
According to the sentencing hearings, trial evidence and other court records:
From about August 2009 to November 2011, the co-conspirators engaged in a cigarette smuggling conspiracy that trafficked more than 486,000 cartons of cigarettes across North and South Carolina with an estimated retail value of $20 million. The co-conspirators paid more than $9.3 million in cash for cigarettes they believed to be stolen from Virginia and Tennessee, and profited by selling them to a network of retail businesses and associates willing to purchase the illegally obtained cigarettes at prices far below market value. The co-conspirators laundered their criminal proceeds through businesses owned by Kamal Qazah and Nasser Alquza in Columbia, S.C.
Kamal Zaki Qazah and Nasser Kamal Alquza were convicted of multiple counts of conspiracy on February 4, 2013, after a seven-day jury trial in federal district court in Charlotte.
The other six defendants involved in the conspiracy were previously sentenced as follows:
• Khaled Fadel Ibrahim, 50, of Charlotte, was sentenced to 60 months in prison and two years of supervised release.
• Wael Mahmoud Salem, 38, of Oakland Gardens, N.Y. was sentenced to 27 months in prison and one year of supervised release.
• Jose Calderon-Silver, 38, of New York, N.Y., was sentenced to one month in prison, six months of home confinement and one year of supervised release.
• Zafer Ramadan Kafozi, 48, of Charlotte, was sentenced to 18 months in prison and two years of supervised release.
• Hesham Rahman, 46, of Charlotte, was sentenced to 21 months in prison and two years of supervised release.
• Murad Ayyad, 33, of Charlotte, was sentenced to one year of probation.
Defendants Qazah, Alquza and Tha’er Ayyad are currently in federal custody. The remaining defendants will be ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Tompkins thanked ATF, IRS-CI and CMPD for their investigation of the case. The prosecution was handled by Assistant United States Attorneys Mike Savage and Jennifer Dillon of the U.S. Attorney’s Office in Charlotte.
Federal Jury Convicts Three Men for Conspiring to Distribute MethRead the Press Release
Twelve Co-Defendants Await Sentencing
BOISE – U.S. Attorney Wendy J. Olson announced that Jesus Guadalupe Sanchez a/k/a Jose Salazar, 31, a Mexican national, Michael Dennis Morris, 42, of Ontario, Oregon, and Jim Allen Loveland, 56, of Boise, Idaho, were convicted in United States District Court yesterday of conspiracy to distribute methamphetamine. Sanchez was also convicted of possession of methamphetamine with intent to distribute. They are scheduled to be sentenced on April 8, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
During the six-day trial, the jury heard evidence that from early November 2011 through May 16, 2012, the defendants conspired with others, including their co-defendants, to distribute a total of approximately 11 pounds of methamphetamine in Canyon, Payette and Washington counties in Idaho.
Eleven co-defendants pleaded guilty last year to one count of conspiracy to distribute methamphetamine and are currently awaiting sentencing: Patrick Campbell, 36, of Boise, and Rachel Coblentz, 25, of Wrangell, Alaska, formerly of Weiser, are set for sentencing on February 1; Mario Martinez, Jr., 55, of Greenleaf, Idaho, Fabian Jordano Beltran, 23, and Jacob James Clevenger, 31, both of Weiser, on February 4; Amber Hites, 26, of Weiser, on February 26; Benjamine L. Vertner, 34, of Ontario, Kristopher Hensley, 26, of Weiser, and Johnathan E. Chapman, 27, of New Plymouth, Idaho, on February 27; Johnny A. Tambunga, 40, of Weiser, on February 28; and Dawson Lee Moore, 60, of Weiser, on March 27. Amy Maria Cavazos, 38, of Weiser, pleaded guilty to one count of possession of methamphetamine with intent to distribute and will be sentenced on February 1.
The charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine each carry a mandatory minimum sentence of ten years with the possibility of up to life in prison, a $10 million fine, and at least five years of supervised release. The charge of possession of methamphetamine with intent to distribute carries a mandatory minimum sentence of five years in prison, a maximum fine of $5 million, and not less than four years of supervised release.
“These convictions underscore federal, state and local law enforcement's commitment to aggressively prosecute drug traffickers who damage our rural communities, prey upon Idahoans and cause damage that ripples through our state,” said Olson. “Methamphetamine is a highly addictive drug. The U.S. Attorney's Office and its law enforcement partners will use all lawful means to bring to justice and seek punishment for those who traffic in it.” Olson added that in 2012, the U.S. Attorney’s Office had a strong record of prosecuting methamphetamine cases – 73 defendants were sentenced collectively to a total of 6,694 months – over 557 years – in federal prison for methamphetamine crimes.
The case was investigated by the Idaho State Police.
Federal Inmate Indicted for Fraudulently Obtaining $23,000 in Social Security BenefitsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 32-year-old woman incarcerated at the Federal Correctional Institute in Waseca, Minnesota, was indicted for stealing more than $23,000 in Social Security benefits. Nefertiti Randall was charged with one count of theft of government money or property.
The indictment alleges that from June 12, 2009, through May 16, 2012, Randall stole $23,012 from the Social Security Administration. The funds, which were deposited automatically into a bank account accessible to both Randall and her mother, represented benefits intended solely for Randall’s mother. Her mother died in June of 2009, and in August of 2009, Randall began serving an unrelated, multi-year, identity-theft sentence at the Federal Correctional facility in Waseca. According to the indictment, Randall nonetheless continued to access her mother’s social security benefits until spring of 2012.
If convicted, Randall faces a potential maximum penalty of ten years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Social Security Administration-Office of Inspector General, with cooperation from the United States Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Federal Grand Jury Returns Indictments in Tyler, TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas –A federal grand jury returned indictments today charging individuals with separate federal crimes in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Cloyd Ray Knight, III, 57, of Arlington, Texas, was charged with making and passing counterfeit $100 bills. If convicted, he faces up to 20 years in federal prison. According to the indictment, in December 2012, Knight is alleged to have forged $100 bills which he used at various retail stores across East Texas. This case is being investigated by the U.S. Secret Service and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Pastor Sanchez-Ortuno, 38, was indicted for being present in the United States after having been previously deported. If convicted, he faces up to 10 years in federal prison followed by deportation. This case is being investigated by HSI-ICE and prosecuted by Assistant U.S. Attorney Gregg Marchessault.
Pedro Gallegos-Perez, 31, a Mexican national, was indicted for being present in the United States after having been previously deported. If convicted, he faces up to 10 years in federal prison followed by deportation. This case is being investigated by HSI-ICE and prosecuted by Assistant U.S. Attorney Allen Hurst.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
####Federal Grand Jury Indicts Russell Allen Erxleben in Connection with an Alleged $2.5 Million Ponzi SchemeRead the Press Release
In Austin, federal authorities announced the indictment and arrest this morning of 56–year-old Russell Allen Erxleben for allegedly running a Ponzi scheme that generated more than $2 million.
An eight–count federal grand jury indictment, returned on Tuesday and unsealed today, charges the Dripping Springs, Texas, resident with five counts of wire fraud, one count of securities fraud, and two counts of money laundering. According to the indictment, from 2005 until October 2009, Erxleben devised and implemented a scheme to defraud and to obtain money from investors by the use of fraudulent pretenses, representations and promises. The indictment alleges that Erxleben used several companies, including WALTEC Consultants, LRE Holdings, and The MDM Group, to promote investments in fraudulent ventures, namely, in post-WWI German government gold bearer bonds and in a work of art purportedly by Paul Gauguin, a famous late 19th-early 20th century artist. The indictment further alleges that Erxleben used investment proceeds for the benefit of himself and his family, and to pay dividends to previous investors. In furtherance of the fraudulent scheme, the indictment also alleges that Erxleben made various wire transfers using numerous financial accounts which were opened and maintained by others, including one or more family members, in an effort to avoid detection by authorities. According to the indictment, Erxleben also failed to disclose to investors his 1999 federal felony criminal convictions for securities fraud and conspiracy to commit securities fraud, as well as the fact that he owed approximately $28 million in restitution stemming from those convictions.
Upon conviction, Erxleben faces up to 20 years in federal prison for each of the wire fraud and securities fraud counts, and up to 10 years in federal prison per money laundering count. Erxleben remains in federal custody pending the outcome of a detention hearing next week.
This indictment resulted from an investigation by the Internal Revenue Service-Criminal Investigation together with the Texas State Securities Board along with assistance from Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew Devlin and Alan Buie are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Grand Jury Indicts Maverick County Commissioner Rodolfo Bainet Heredia in Connection with Bribery, Kickback and Bid-rigging SchemeRead the Press Release
In Del Rio this morning, a federal grand jury indicted Maverick County Precinct Two Commissioner Rodolfo Bainet Heredia, age 54, of Eagle Pass, Texas, in connection with an alleged bribery, kickback and bid-rigging scheme, announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
The federal grand jury indictment charges Heredia with six counts of receiving a bribe and one count of paying a bribe to an agent of an organization receiving federal funds. The indictment alleges that in 2010 and 2011, Heredia manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Those contractors deposited the checks issued to them by Maverick County and then made cash payments to Heredia. According to the indictment, the private contractors submitted inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay the bribe to Heredia. The indictment further alleges that Heredia gave benefits to a county employee to guarantee that checks were issued to the contractors involved in this scheme.
Upon conviction, Heredia faces up to ten years in federal prison on each count. Heredia remains in custody following his arrest in October of last year on federal money laundering and bulk cash smuggling charges. A trial on those charges is scheduled for April 16, 2013. No court dates have been scheduled in connection with today’s indictment.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Federal Charges Allege Captors Held Adults with Disabilities in Subhuman Conditions to Carry out Social Security FraudRead the Press Release
Linda Weston, her daughter and three co-defendants are charged in a 193-count indictment, unsealed today, with racketeering, murder in aid of racketeering, hate crimes, sex trafficking, forced labor, theft, fraud and other crimes. The indictment alleges that Weston and her associates carried out a racketeering enterprise that targeted victims with mental disabilities as part of a scheme to steal disability payments from the victims and the Social Security system. As part of the scheme, Weston persuaded each victim to make her the designated recipient of their Social Security disability payments in exchange for the promise of a comfortable place to live. Once appointed as the designated recipient of disability payments, Weston, aided by the co-defendants, subjected the victims to subhuman conditions of captivity.
According to the indictment, the defendants beat the victims, kept them captive in locked closets, basements and attics, deprived them of adequate food and medical care, and moved them between Philadelphia, Pennsylvania, Texas, Virginia and Florida in order to further the scheme and evade law enforcement. According to the indictment, some of the victims endured this abuse for years, until Oct. 15, 2011, when Philadelphia Police Department officers rescued them from the sub-basement of an apartment building in the city’s Tacony section.
Today’s indictment was announced at a press conference by U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger, FBI Acting Special Agent-in-Charge John Brosnan, Special Agent-in-Charge Michael McGill with the Social Security Administration’s Office of Inspector General and Philadelphia Police Commissioner Charles Ramsey.
Along with Weston and her daughter Jean McIntosh, the indictment charges Weston’s paramour, Gregory Thomas Sr., Eddie Wright and Nicklaus Woodard. According to the indictment, the defendants used isolation, intimidation, threats of violence and violence to control the victims with mental disabilities and each defendant had a role in the racketeering enterprise:
?? Linda Weston was the leader and organizer of the enterprise that operated from at least the fall of 2001 through October of 2011. She enticed all of the victims into coming to live with the enterprise and controlled all aspects of their captivity.
?? Jean McIntosh was also a leader of the enterprise who acted as her mother’s right hand woman. She assisted in confining, controlling, disciplining, housing and transporting the victims.
?? Gregory Thomas Sr. assisted in obtaining, confining, controlling, housing and transporting the victims. He installed locks on the doors and windows of every residence where the victims were kept to prevent them from escaping.
?? Eddie Wright assisted in confining, controlling, housing and transporting the victims.
?? Nicklaus Woodard assisted in confining, controlling and disciplining the victims.
The indictment charges that in confining the victims, the defendants practiced what is described as “abusive control and confinement techniques” in which the defendants:
· Confined the victims to locked basements, rooms, closets, attics and apartments;
· Sedated the victims by putting drugs in the food and drink served to them by Weston and others, at Weston’s direction;
· Subdued the victims by serving them a low calorie, high starch diet consisting exclusively of Ramen noodles, beans and stew and generally limited them to, at most, one meal a day;
· Punished the victims by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats and hammers or other objects, including the butt of a pistol, when the victims tried to escape, stole food or otherwise protested their confinement and treatment.
The indictment alleges that Weston’s use of these techniques caused the deaths of two of the victims. For example, in 2002, Weston met M.L. and lured her to come live with the family. M.L. was forced to cook, clean, wash clothes and babysit without compensation. M.L. was beaten when she tried to escape or when she begged for food and was not provided with any medical attention for her injuries. When Weston moved the enterprise to Virginia in 2008, M.L. died of bacterial meningitis and starvation. Weston allegedly ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement and the next day the family left for Philadelphia. In addition, in April 2005, Weston and Thomas allegedly targeted victim D.S. who they saw standing on a street corner. They brought D.S. to the WF home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston allegedly ordered other members of the household to move D.S.’s body to a bedroom and stage an accidental overdose before calling law enforcement.
The indictment also alleges that Weston forced two female captives to engage in prostitution while the enterprise operated in Killeen, Texas, and West Palm Beach, Fla.
The defendants are charged in four counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The Shepard-Byrd Act criminalizes certain acts of physical violence causing bodily injury motivated by any person's actual or perceived disability, race, color, national origin, religion, sexual orientation, gender or gender identity.
“The allegations in this indictment describe a scheme to physically abuse and subjugate persons with disabilities for purposes of de-humanizing them, stealing their money, and unlawfully obtaining their labor,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The laws against violently assaulting individuals because of their disabilities and those that prohibit human trafficking were designed to combat conduct aimed at vulnerable members of society, such as the alleged victims in this case.”
“Those with physical and mental disabilities are among the most vulnerable in our society. As with everyone else, they deserve to be treated with respect, not violence,” said U.S. Attorney Memeger. “Linda Weston and others, in fact, decided to prey on these victims specifically because of their disabilities and they did so through violence, fear and intimidation for the purpose of stealing social security payments that were meant for the victims’ long-term care. ‘Shocking’ does not begin to describe the criminal allegations in this case where the victims were tied-up and confined like zoo animals and treated like property akin to slaves. Hopefully, today’s announcement of a 196-count indictment will help begin the process of restoring the victims’ faith in humanity.”
“Today’s indictment represents just one more step towards closure and healing, not only for the victims of this heinous hate crime, but for the community as a whole,” said Special Agent-in-Charge John Brosnan. “The FBI, along with the U.S. Attorney’s Office, the Philadelphia Police Department and the Social Security Administration Office of Inspector General remain committed to protecting each and every citizen's civil rights, and will aggressively investigate any violation of those rights, bringing the perpetrators to justice.”
"The Office of the Inspector General investigates many cases involving the misuse of Social Security benefits by representative payees, but thankfully, we've never seen a case involving this level of cruelty and inhumanity to our most vulnerable beneficiaries," said Special Agent-in-Charge Michael McGill. "We're pleased to see justice served, and grateful to the U.S. Attorney and our investigative partners for their unflagging support in this investigation."
If convicted of all charges, each of the defendants faces a statutory maximum sentence of life in prison with advisory guideline sentencing ranges that involve substantial terms of imprisonment. Weston also faces mandatory restitution in the amount of approximately $212,000, fines, and special assessments.
An indictment is merely an accusation; all defendants are presumed innocent until proven guilty.
The case was investigated by the FBI, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Philadelphia Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, West Palm Beach Field Office. It is being prosecuted by Department of Justice Civil Rights Division Trial Attorney Betsy Biffl and Assistant U.S. Attorneys Richard P. Barrett and Faithe Moore Taylor. The case was originally charged by the Philadelphia District Attorney’s Office.
Federal Charges Allege Captors Held Adults with Disabilities in Subhuman Conditions to Carry Out Social Security FraudRead the Press Release
First Hate Crimes Case Of Its Kind In The Country Also Charges Murder
PHILADELPHIA - Linda Weston, her daughter and three co-defendants are charged in a 196-count indictment, unsealed today, with racketeering conspiracy, murder in aid of racketeering, hate crimes, sex trafficking, kidnapping, forced human labor, theft, fraud, and other violent crimes. The indictment alleges that Weston and her associates carried out a racketeering enterprise that targeted victims with mental disabilities and as part of a scheme to steal disability payments from the victims and the Social Security system. As part of the scheme, Weston persuaded each victim to make her the designated recipient of their Social Security disability payments in exchange for the promise of a comfortable place to live. Once appointed as the designated recipient of disability payments, Weston, aided by the co-defendants, subjected the victims to subhuman conditions of captivity.
According to the indictment, the defendants beat the victims, kept them captive in locked closets, basements and attics, deprived them of adequate food and medical care, and moved them between Pennsylvania, Texas, Virginia, and Florida in order to further the scheme and evade law enforcement. According to the indictment, some of the victims endured this abuse for years, until October 15, 2011, when Philadelphia Police officers rescued them from the sub-basement of an apartment building in the city’s Tacony section. The enterprise allegedly victimized six disabled adults and four children.
Today’s indictment was announced by United States Attorney Zane David Memeger, Assistant Attorney General for the Civil Rights Division Thomas E. Perez, FBI Acting Special Agent-in-Charge John Brosnan, Special Agent-in-Charge Michael McGill with the Social Security Administration’s Office of Inspector General, and Philadelphia Police Commissioner Charles Ramsey.Along with Weston and her daughter Jean McIntosh, the indictment charges Weston’s paramour, Gregory Thomas, Sr., Eddie Wright, and Nicklaus Woodard. According to the indictment, the defendants used isolation, intimidation, threats of violence and violence to control the victims and each defendant had a role in the racketeering enterprise:
● Linda Weston was the leader and organizer of the enterprise that operated from at least as early as the Fall of 2001 through October of 2011. She enticed all of the adults into coming to live with the enterprise and controlled all aspects of their captivity.
● Jean McIntosh was also a leader of the enterprise who acted as her mother’s right hand woman. She assisted in confining, controlling, disciplining, housing, and transporting the victims.
● Gregory Thomas, Sr. assisted in obtaining, confining, controlling, housing, and transporting the victims. He installed locks on the doors and windows of every residence where the victims were kept to prevent them from escaping.
● Eddie Wright assisted in confining, controlling, housing, and transporting the victims.
● Nicklaus Woodard assisted in confining, controlling and disciplining the victims.
The conduct of each defendant is set forth in the overt act section of the indictment and generally describes criminal activity from the Fall of 2001 to October 15, 2011 when the Philadelphia Police rescued the victims from the sub-basement of the apartment building. The indictment charges that in confining the victims, the defendants practiced what is described as “abusive control and confinement techniques” in which the defendants:
a. confined the victims to locked basements, rooms, closets, attics, and apartments; b. sedated the victims by putting drugs in the food and drink served to them by Weston and others, at Weston’s direction; c. subdued the victims by serving them a low calorie, high starch diet consisting exclusively of Ramen noodles, beans and stew and generally limited them to, at most, one meal a day; d. punished the victims by slapping, punching, kicking, stabbing, burning and hitting them with closed hands, belts, sticks, bats, and hammers or other objects, including the butt of a pistol, when the victims tried to escape, stole food, or otherwise protested their confinement and treatment.
The indictment alleges that Weston’s use of these techniques caused the deaths of two of the victims. For example, in 2002, Weston met M.L. and lured her to come live with the family. M.L. was forced to cook, clean, wash clothes, and babysit without compensation. M.L. was beaten when she tried to escape or when she begged for food and was not provided with any medical attention for her injuries. When Weston moved the enterprise to Virginia in 2008, M.L. died of bacterial meningitis and starvation. Weston allegedly ordered other members of the household to move M.L.’s body to a bedroom and stage the scene before calling law enforcement and the next day the family left for Philadelphia. In addition, in April 2005, Weston and Thomas allegedly targeted victim D.S. who they saw standing on a street corner. They brought D.S. to the WF home at 2211 Glenview Avenue in Philadelphia. D.S. was kept in the basement with the other victims, fed a substandard diet, and not allowed to use the bathroom. On June 26, 2005, D.S. was found dead in the basement. Weston allegedly ordered other members of the household to move D.S.’s body to a bedroom and stage an accidental overdose before calling law enforcement.
The indictment also alleges that Weston forced two female captives to engaged in prostitution while the enterprise operated in Killeen, Texas and West Palm Beach, Florida.
The defendants are charged in four counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. The Shepard-Byrd Act criminalizes certain acts of physical violence causing bodily injury motivated by any person's actual or perceived disability, race, color, national origin, religion, sexual orientation, gender, or gender identity.
“The physically and mentally disabled are among the most vulnerable in our society. They deserve to be treated with respect and compassion, not violence,” said Memeger. “Linda Weston and others, in fact, decided to prey on these victims specifically because of their physical and mental challenges and they did so through violence, fear and intimidation for the purpose of stealing social security payments that were meant for the victims’ long-term care. “Shocking” does not begin to describe the criminal allegations in this case where the victims were tied-up and confined like zoo animals and treated like property akin to slaves. Hopefully, today’s announcement of a 196-count indictment will help begin the process of restoring the victims’ faith in humanity.”
“The allegations in this indictment describe a scheme to physically abuse and subjugate persons with disabilities for purposes of de-humanizing them, stealing their money, and unlawfully obtaining their labor,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The laws against violently assaulting individuals because of their disabilities and those that prohibit human trafficking were designed to combat conduct aimed at vulnerable members of society, such as the alleged victims in this case.”
“Today’s Indictment represents just one more step towards closure and healing, not only for the victims of this heinous hate crime, but for the community as a whole,” said Special Agent-in-Charge John Brosnan. “The FBI, along with the United States Attorney’s Office, the Philadelphia Police Department and the Social Security Administration Office of Inspector General remain committed to protecting each and every citizen’s civil rights, and will aggressively investigate any violation of those rights, bringing the perpetrators to justice.”“The Office of the Inspector General investigates many cases involving the misuse of Social Security benefits by representative payees, but thankfully, we've never seen a case involving this level of cruelty and inhumanity to our most vulnerable beneficiaries,” said Special Agent-in-Charge Michael McGill. “We're pleased to see justice served, and grateful to the U.S. Attorney and our investigative partners for their unflagging support in this investigation.”
If convicted of all charges, each of the defendants faces a statutory maximum sentence of life in prison with advisory guideline sentencing ranges that involve substantial terms of imprisonment. Weston potentially faces the death penalty and also faces mandatory restitution of approximately $212,000 and special assessments.
The case was investigated by the Federal Bureau of Investigation, the Social Security Administration Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Philadelphia Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, West Palm Beach Field Office. It is being prosecuted by Assistant United States Attorneys Richard P. Barrett, Faithe Moore Taylor, and Department of Justice Civil Rights Division Trial Attorney Betsy Biffl. The case was originally charged by the Philadelphia District Attorney’s Office.
Indictment.pdf | Charges Chart.pdf | Defendant Chart.pdf
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Essex County, N.J., Man Charged in Union County CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man appeared in Newark federal court today in connection with charges arising out of a carjacking that occurred in December 2012 in Union County, U.S. Attorney Paul J. Fishman announced.
Larry Brown, 22, of Newark, is charged by Complaint with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. The defendant appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to the criminal Complaint:During the morning of Dec. 26, 2012, Brown approached an individual who was sitting in a parked 2012 BMW X5 in Hillside, N.J. Brown pointed a firearm at the victim, tapped on the vehicle’s window with the gun, and ordered the victim to get out of the car. A second individual robbed the victim of the victim’s personal items. Brown and the other individual then entered the victim’s vehicle and fled the area.
Later that same day, the victim’s vehicle was located in East Orange, N.J., and law enforcement officers observed two individuals, one of whom was Brown, walking away from the carjacked vehicle.
The carjacking count with which Brown is charged is punishable by a maximum potential penalty of 15 years in prison. The charge of use of a firearm in furtherance of a crime of violence is punishable by a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each of the two counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Andrew M. McLees; the N.J. State Police, under the direction of Col. Rick Fuentes, Superintendent; special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; the Hillside Police Department, under the leadership of Chief Robert B. Quinlan; the East Orange Police Department, under the leadership of Chief William Robinson; and the Union County Prosecutor’s Office, under the direction of Prosecutor Theodore J. Romankow; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Lisa M. Colone and Special Assistant U.S. Attorney James M. Donnelly of the U.S. Attorney’s Office Criminal Division in Newark.The charges and allegations contained in the Complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-037
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, NewarkBrown, Larry Complaint
Enticing A Minor Lands Mission Man in PrisonRead the Press Release
McALLEN, Texas - Teofanes Salas-Campos, 40, of Mission, has been sentenced to more than 11 years in federal prison prison for enticing a minor, United States Attorney Kenneth Magidson announced today. Salas-Campos previously pleaded guilty Sept. 17, 2012, admitting he intended to have sex with a minor for money.
In a hearing that concluded late yesterday, U.S. District Judge Randy Crane, handed Salas-Campos a 135-month sentence. At the hearing, additional evidence was presented including the fact the defendant had taken a photograph of the victim on her cell phone which constituted sexually explicit conduct. The sentence was enhanced because the minor victim was only 14 years of age at the time and because there was a commission of a sex act. Salas-Campos will further serve a five-year-term of supervised release following completion of the prison term. He will also be required to register as a sex offender.
In April 2012, a Pharr Police Department investigator contacted Homeland Security Investigations (HSI) agents concerning the solicitation of a minor for sexual purposes. Agents recovered a cellular telephone that was being utilized by a 14-year-old minor to receive messages from adult males requesting sexual encounters in exchange for money. Posing as the minor, agents began conversing with the unknown males via text messages over the cellphone.
During this investigation, two others were arrested and subsequently charged in separate cases with enticing a minor. Felipe de Jesus Ponce-Torres, 24, of Mexico, previously pleaded guilty before U.S. District Court Judge Micaela Alveraz who sentenced him in November 2012 to 120 months in prison. Jose Luis Garcia-Saldivar, 28, also of Mexico, entered his plea guilty before Chief U.S. District Court Judge Ricardo H. Hinojosa and will be sentenced May 9, 2013.
During their respective guilty pleas, all three men admitted they intended to have sex with an individual whom them believed was a minor and that they were going to pay the minor between $80 and $100.
All three men have been and will remain in custody.
The investigation leading to the charges against these defendants was conducted by HSI and Pharr Police Department. Assistant United States Attorneys Kimberly Ann Leo and Juan Villescas prosecuted the case.
District Woman Pleads Guilty to Charges in Sexual Assault of Girl on A Metrobus-Defendant Later Threatened 14-Year-Old Victim-Read the Press Release
WASHINGTON - Pamela Taylor, 23, of Washington, D.C., pled guilty today to a felony charge stemming from a sexual assault of a 14-year-old girl on a Metrobus in Southeast Washington, U.S. Attorney Ronald Machen Jr. announced.
Taylor pled guilty in the Superior Court of the District of Columbia to one count each of second-degree child sexual abuse and threats, in an Alford plea. Under such a plea, the defendant does not admit the allegations but agrees that the government has enough evidence to secure a conviction. Taylor is to be sentenced on March 26, 2013 by the Honorable Herbert B. Dixon, Jr. She faces a statutory maximum of 10 ½ years in prison.
According to the government’s evidence, on the morning of Dec. 10, 2011, Taylor first encountered the victim on a Metro train at the L’Enfant Plaza Metro station. Taylor approached the girl on the train and mentioned members of the victim’s family, leading the girl to believe that Taylor knew the family. At one point, Taylor tricked the girl into providing her cellphone number. At the Anacostia Metro station, Taylor followed the victim onto a Metrobus. During the bus ride, Taylor sat next to the girl and touched the girl inappropriately. The girl had to force her way past Taylor to get off the bus. The following day, Taylor called the teenager, threatening to assault her if she stepped outside of her home.
In announcing today’s plea, U.S. Attorney Machen praised the work of the Metro Transit Police Department, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim Advocate Melissa Milam. Finally, he commended Assistant U.S. Attorney Peter V. Taylor, who investigated and prosecuted this case.
13-021District Man Sentenced to 20 Months in Prison for Courtroom Attack of A Deputy U.S. Marshal- Incident Took Place During A Court Proceeding -Read the Press Release
WASHINGTON – Roderick Hill, also known as Rodrick Delvon Hill, 22, of Washington, D.C., was sentenced today to 20 months in prison for assaulting a Deputy United States Marshal, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Hill pled guilty in October 2012 to a charge of assaulting a federal marshal. He was sentenced by the Honorable Robert L. Wilkins in the U.S. District Court for the District of Columbia. Upon completion of his sentence, Hill will be placed on three years of supervised release.
According to the government’s evidence, on June 21, 2012, Hill was at the Superior Court of the District of Columbia, in Courtroom 301 for a scheduled preliminary hearing in a criminal case that charged him with assault with significant bodily injury. Taped on the exterior side of the double-door of Courtroom 301 were signs that prohibited the use of electronic devices, with few exceptions, for those who are waiting in the gallery of the courtroom.
While working in his official capacity and while court was in session, a deputy marshal observed Hill playing in the courtroom with a black iPhone. Hill was holding the phone at eye level, and he was using both hands to play a game on it. The deputy marshal approached Hill and told him to put the phone away. Hill complied and placed the phone in his right pants pocket.
Moments later, Hill again was observed playing a game on his phone while still seated in the courtroom. As the deputy marshal approached Hill for the second time, they made eye contact, and Hill placed the phone in his pants pocket. At that time, the deputy marshal reported this phone situation to the courtroom deputy.
When the deputy marshal looked around again, Hill was playing with the phone for the third time. At this point, the deputy marshal attempted to confiscate the phone. Hill refused to hand it over, and he struck the deputy marshal with a closed fist numerous times in the face and head area. This assault caused lacerations and extensive bleeding to the deputy marshal’s face and eye area. Consequently, the deputy marshal was rushed to the hospital for medical treatment to close the laceration to his left eye and to attend to his other injuries.
Hill subsequently pled guilty to assault with significant bodily injury in the earlier case that was filed against him in the Superior Court of the District of Columbia. In that matter, Hill was charged with assaulting a man on June 3, 2012, at a Metro station. He is to be sentenced in that case on Jan. 25, 2013. During today’s proceedings, Judge Wilkins ordered that the federal sentence run consecutively to the sentence in the Superior Court matter.
In announcing today’s sentence, U.S. Attorney Machen and U.S. Marshal Hughes commended the actions of the Deputy U.S. Marshals who were in the courtroom that day. U.S. Attorney Machen and Marshal Hughes also praised the efforts of Assistant U.S. Attorneys Emory V. Cole and John C. Truong, who investigated and prosecuted the case.
13-020Defendant from Shirley Arrested for Aiming A Laser Beam at Aircraft Flying over Long IslandRead the Press Release
Complaint Charges Angel Rivas with Using a Laser Pointer to Direct a Laser Beam at a Commercial Airliner Headed for JFK Airport and a Police Helicopter
Federal agents arrested a Shirley, Long Island, man this morning on the charge of aiming a laser pointer at two aircraft last August 2012. 1
The arrest of Angel Rivas was announced today by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office. The defendant is scheduled to be arraigned before the United States Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York, later today.
According to court filings, on August 21, 2012, the defendant used a laser pointer to direct a laser beam at a commercial aircraft and a Suffolk County Police Department helicopter sent up to investigate the initial incident. Investigators first determined that the beam of light came from the vicinity of the defendant’s residence on William Floyd Parkway in Shirley, New York, then confirmed that the defendant himself had directed the laser beam at the aircraft and helicopter.
“Laser pointers aimed at aircraft pose many dangers, including disrupting the vision of pilots,” said United States Attorney Lynch. “Last February, President Obama signed the FAA Modernization and Reform Act of 2012, which specifically prohibited the conduct alleged in the complaint. The safety of American air travelers has been and will continue to be a priority for law enforcement.” Ms. Lynch expressed her grateful appreciation to the U.S. Department of Transportation, Office of Inspector General - Investigations, the FBI Joint Terrorism Task Force in New York, and the Suffolk County Police Department for their participation in the investigation leading to today’s arrest.
FBI Assistant Director-in-Charge Venizelos stated, “On a night last summer, Rivas allegedly endangered the lives of passengers and crew of not one but two aircraft, and potentially, people on the ground. Pointing a laser at an aircraft is not a prank, it is a federal crime with penalties befitting its seriousness.”
If convicted of the charge, the defendant faces a maximum sentence of five years’ imprisonment and a maximum fine of $250,000.
The government’s case is being prosecuted by Assistant United States Attorney Charles N. Rose.
The Defendant:
ANGEL M. RIVAS
Age: 33_____________________________
1 The charges contained in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
Dan James Nichols Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on January 17, 2013, before U.S. District Judge Dana L. Christensen, DAN JAMES NICHOLS, a 47-year-old resident of Belgrade, appeared for sentencing. NICHOLS was sentenced to a term of:
Prison: 48 months
Special Assessment: $100
Forfeiture: $288,000
Supervised Release: 3 years
NICHOLS was sentenced in connection with his guilty plea to conspiracy to maintain drug-involved premises.
In an Offer of Proof filed by Assistant U.S. Attorneys Joseph E. Thaggard, Paulette L. Stewart, and Jessica T. Fehr, the government stated it would have proved at trial the following:
Richard Flor, Sherry Flor, and Justin Flor manufactured marijuana at an annual outdoor grow operation maintained on the premises of the Flor residence in Miles City during a time period that included the years 2006 through 2010.
In early 2009, several individuals, including Thomas Daubert and Christopher Lindsey, decided to join the Flors in the manufacture and distribution of marijuana in Montana. Ultimately, commencing in approximately April 2009, those involved in the conspiracy grew marijuana at the Flor residence in Miles City and at least one location near Three Forks, as well as at a series of large greenhouses comprising the former State Nursery in Helena. Once manufactured, the marijuana was distributed from various points, including locations in Helena, Missoula, Billings, and the Flor residence in Miles City. The undertaking operated under the name "Montana Cannabis."
In approximately the summer of 2010, NICHOLS moved to the premises on which the State Nursery is located. Witnesses would have testified that NICHOLS assisted in the operation at the facility by, among other things, acting as an armed security guard for the undertaking.
In 2010, law enforcement began an investigation of the drug trafficking crimes and a cooperating witness would have testified that he/she assisted members of the conspiracy to manage money generated by the sale of the marijuana. Members of the conspiracy deposited money earned from the sale of marijuana manufactured during the conspiracy into bank accounts. The witness would have testified that, once in the bank accounts, the money was used to promote the conspiracy by providing compensation to the coconspirators or providing funds to finance the continued production and distribution of marijuana.
Bank records related to the conspiracy were examined and in excess of $1,000,000 was deposited in the various bank accounts employed to promote the conspiracy.
On March 14, 2011, law enforcement searched the Flor residence in Miles City and the greenhouses located in Helena, as well as locations in Billings, Helena, and Missoula from which marijuana was distributed.
Law enforcement seized approximately 950 marijuana plants from the greenhouses located at the former State Nursery in Helena. Agents encountered NICHOLS while searching the premises at the State Nursery. NICHOLS emerged from a camp trailer and was wearing an empty holster. Agents recovered firearms, including at least one pistol, from the camp trailer. Agents also seized other firearms from other locations on the premises of the State Nursery.
Law enforcement also seized marijuana ready for sale from distribution points maintained by the conspirators in Helena, Missoula, and Billings, as well as the Flor residence in Miles City. A number of firearms were also seized from the Flor residence in Miles City.
The conspiracy involved the manufacture of at least 1,000 marijuana plants and at least 100 kilograms of a substance containing a detectable amount of marijuana.
On August 12, 2011, Jefferson County Sheriff's Office deputies patrolled the grounds of "Rockin' The Rivers" concert in Jefferson County. They smelled marijuana and observed an apparent drug deal taking place among several males. They would have testified NICHOLS had two clear bags of a substance he was preparing to distribute to another male.
The deputies would have testified they approached NICHOLS, who they told to sit down. Instead, NICHOLS began throwing away plastic bags containing suspected marijuana, as well as a brown material. NICHOLS began to run away, refused to heed their directions to stop, and was ultimately subdued with the assistance of a bystander.
The plastic bags NICHOLS discarded were recovered and a forensic chemist for the Montana Division of Forensic Sciences would have testified the brown material contained 0.70 grams of a substance containing a detectable amount of opium, a Schedule II controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that NICHOLS will likely serve all of the time imposed by the court. In the federal system, NICHOLS 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 following federal, state and local law enforcement agencies: the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, Criminal Investigation Division of the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Environmental Protection Agency-Criminal Investigation Division, U.S. Customs and Border Protection-Border Patrol, and the Occupational Safety and Health Administration. These federal agencies were assisted by local High Intensity Drug Trafficking Area task forces, the Northwest Drug Task Force, the Kalispell Police Department, the Flathead County Sheriff's Office, the Missoula Police Department, the Missoula County Sheriff's Office, the Missoula High Intensity Drug Trafficking Area (HIDTA) Task Force, the Great Falls Police Department, the Cascade County Sheriff's Office, the Central Montana Drug Task Force, the Billings Police Department, the Yellowstone County Sheriff's Office, the Jefferson County Sheriff's Office, the Eastern Montana High Intensity Drug Trafficking Area (HIDTA) Task Force, the Dillon Police Department, the Beaverhead County Sheriff's Office, the Park County Sheriff's Office, the Bozeman Police Department, the Gallatin County Sheriff's Office, the Belgrade Police Department, the Missouri River Drug Task Force, the Helena Police Department, the Lewis & Clark Sheriff's Office, and the Eastern Montana Drug Task Force - Miles City.
Council Bluffs Man Sentenced on Interstate Copper Theft ChargesRead the Press Release
COUNCIL BLUFFS, IA – On January 22, 2013, Jonathan Dale Campbell, age 32, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of conspiracy to commit interstate transportation of stolen property regarding the theft of copper from center-pivot irrigation systems, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Campbell to 37 months in prison, and also ordered Campbell to serve 3 years of supervised release following his imprisonment. The Court ordered that the 37 months federal sentence of imprisonment be served consecutively to, that is, in addition to, State of Iowa sentences currently being served by Campbell. (Campbell is currently serving terms of imprisonment in Iowa for theft and burglary charges unrelated to the federal interstate transportation of stolen property case.) The Court also ordered Campbell to pay restitution in the amount of $174,047.97 to identified victims of the theft scheme in which Campbell was involved, and to pay a $100.00 special assessment for the Crime Victim Fund. Campbell remains in the custody of the United States Marshal pending designation of the Federal Bureau of Prisons facility where he will serve his federal sentence, or return to the custody of the State of Iowa to complete serving sentences from Mills and Pottawattamie, Iowa, counties, which he was serving when taken into federal custody on the interstate theft charges.
Campbell was sentenced upon his plea of guilty to conspiracy to commit interstate transportation of stolen property. The charges arose from a prolonged series of thefts of copper from control cables for center-pivot irrigation systems. The cable was stolen from farming operations stretching from near Sioux City, Iowa, to near St. Joseph, Missouri, with a concentration of the thefts in Harrison and Monona counties in Iowa. Campbell was a part of a conspiracy involving three or more people, which operated from late in 2009, until the summer of 2010. The sentences imposed in this case were in part based on co-conspirators receiving an estimated $70,000.00, to $120,000.00.00, from a salvage yard in Omaha, Nebraska, for the copper cable. Records established that persons involved in this conspiracy delivered copper from the center-pivot irrigation system control cables to the salvage yard in Omaha, Nebraska, on at least 73 occasions. The sentences were also based in part on the number of victims identified in the case, with approximately 28 farming entities and a number of insurance companies being identified as victims in Harrison and Monona counties.
Previously convicted in this conspiracy were Charles Douglas Nichols, age 35, and Joseph Daniel Falknor, age 30, both of Council Bluffs, Iowa. Nichols was sentenced to 31 months in prison, to be followed by 3 years of supervised release. Falknor was sentenced to 12 months and 1 day of imprisonment, to be followed by 3 years of supervised release. Nichols and Falknor were also ordered to pay restitution and to pay an assessment for the Crime Victim Fund.
This investigation was conducted by the Harrison County, Iowa, Sheriff’s Department, the Monona County, Iowa, Sheriff’s Department, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Council Bluffs Man Sentenced on Gun ChargeRead the Press Release
COUNCIL BLUFFS, IA – On January 22, 2013, Charles Edward Duncan, age 25, of Council Bluffs, Iowa, was sentenced in United States District Court in Council Bluffs on the charge of prohibited person in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Chief United States District Court Judge James E. Gritzner sentenced Duncan to 34 months in prison and also ordered Duncan to serve 2 years of supervised release following his imprisonment. The Court also ordered Duncan to pay a $100.00 special assessment for the Crime Victim Fund, and to forfeit the firearm and ammunition found in his possession. Duncan, a victim of a recent shooting, was allowed to remain under the supervision of the United States Probation Office to receive further medical care for his wound, pending the Federal Bureau of Prisons designating the facility at which he is to serve his term of imprisonment.
The indictment alleged that Duncan was an unlawful user of controlled substances (marijuana) and that Duncan had, prior to possessing the firearm, been convicted of a misdemeanor crime of domestic violence. Either circumstance barred Duncan from possessing a firearm. The charge arose out of the execution of a State of Iowa search warrant by the SouthWest Iowa Narcotics Task Force on April 11, 2012, at Duncan’s residence in Council Bluffs, Iowa. During the search, officers found various indicia of use of marijuana by Duncan, and an AK-47 style rifle and ammunition. Duncan had on November 15, 2011 been convicted in the District Court of the State of Iowa for Pottawattamie County, Iowa, of a misdemeanor domestic assault resulting in physical injury, and was at the time of the search subject to a domestic abuse protection order.
This case was investigated by the SouthWest Iowa Narcotics Task Force and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Convicted Felons Operating Grow House in San Leandro, Illegally Possessing Firearms Sentenced to 72 Months and 87 Months in PrisonRead the Press Release
OAKLAND, Calif. – Today, Van Do Nguyen was sentenced to 72 months in prison and Loc Huynh was sentenced to 87 months for conspiracy to possess with the intent to distribute marijuana, possession with the intent to distribute marijuana, and being felons in possession of firearms, United States Attorney Melinda Haag announced.
Huynh and Nguyen were arrested on Jan. 10, 2012, after complaints from citizens led to an investigation by the San Leandro Police Department. Huynh pled guilty on Oct. 31, 2012, and Nguyen pled guilty on Nov. 7, 2012.
In their plea agreements, Huynh and Nguyen admitted that from August 2011 through January 2012, they operated a marijuana grow house at 3471 Carrillo Drive in San Leandro, Calif. They were found in possession of 82 mature marijuana plants, almost one kilogram of marijuana packaged for sale, a Norinco US 7.62 caliber rifle with a high capacity magazine, a Romak-Romarm 7.62 caliber assault rifle that had been stolen, and a .45 caliber Smith & Wesson semiautomatic pistol. Nguyen admitted that he also possessed a .40 caliber Smith & Wesson semiautomatic pistol. In addition, approximately $10,000 in cash, a 9mm Bryco Arms semiautomatic pistol, and more than 100 rounds of various caliber ammunition were found at 3471 Carrillo Drive and seized by law enforcement.
Nguyen, 27, of Alameda, Calif., had previously been convicted in 2005 for carrying a loaded firearm in public. Huynh, 20, of Oakland, had been convicted in 2011 for assault with a deadly weapon not a firearm.
The sentences were handed down by U.S. District Court Judge Phyllis J. Hamilton who also sentenced the defendants to three-year periods of supervised release. Nguyen and Huynh were indicted, with others, by a federal grand jury on June 7, 2012. Co-defendant Vincent Nguyen pled guilty on Oct. 31, 2012, and is scheduled to be sentenced on March 6, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Controller Pleads Guilty to Participating in Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Indiana County pleaded guilty in federal court to charges of conspiracy to commit mail fraud, as well as charges of mail fraud and tax fraud, United States Attorney David J. Hickton announced today.
Cheryl Diane Brooks, 43, of Clymer, Pa., pleaded guilty to seven counts before Chief United States District Judge Gary L. Lancaster.
In connection with the guilty plea, the court was advised that between 2007 and 2012, Brooks, a controller at Falcon Drilling Company in Indiana, Pa., conspired with another person to embezzle funds from Falcon Drilling, causing a loss to Falcon totaling nearly $10,000,000. The government represented to the court that Brooks and another person perpetrated the embezzlement by using forged checks, fake invoices to fictitious or real vendors, and false statements to auditors. Brooks obtained approximately $557,000 from the embezzlement scheme.
Judge Lancaster scheduled sentencing for May 31, 2013. The law provides for a total sentence of 74 years in prison, a fine of $1,300,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and Internal Revenue Service conducted the investigation that led to the prosecution of Brooks.
Consultant for the Florida Department of Transportation Charged with Accepting A BribeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Marlies T. Gonzalez, Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General, announce the filing of an Information charging defendant Ron Capobianco, Jr., 40, of Pompano Beach, FL, with committing bribery in connection with programs receiving federal funds, in violation of Title 18, United States Code, Section 666.
According to the Information, Capobianco, Jr. worked as a construction engineering and inspection consultant at Metric Engineering, Inc., (Metric), which specialized in the transportation industry. The Florida Department of Transportation (FDOT) contracted with Metric to provide many services, including designing, inspecting, and troubleshooting the construction of roads, signs, and traffic signals. Capobianco, Jr. was assigned as the FDOT District 4 Signalization and Lighting Liaison. As such, he acted as FDOT’s project manager for many signalization and lighting projects. Capobianco, Jr. had a team of employees that assisted him in supervising and inspecting contractors performing FDOT work. Because of his position and expertise, Capobianco, Jr. was consulted as an FDOT expert on certain aspects of signalization and lighting construction, including the use of video detection cameras for traffic signalization and control.
According to the Information, around 2009, FDOT began a road construction project along Highway 1 in the Florida Keys (the Marathon Key project), which was designed to improve traffic flow.
The Information alleges that Capobianco Jr. agreed to accept a bribe from a subcontractor working on this project. More specifically, the Information alleges that around May 2009, an agent of the subcontractor offered to pay Capobianco, Jr. $5,000 if the subcontractor could receive at least $25,000 for the installation of the video detection equipment. Capobianco, Jr. agreed to the subcontractor’s $25,000 estimate for the installation of the video detection devices, thus enabling the subcontractor to make a significant profit. The subcontractor’s estimate was approved and subsequently paid by the State of Florida after the installation of the video detection equipment. In or about May 2009, Capobianco, Jr. met with an agent of the subcontractor in Plantation, Florida and was paid $4,000 in cash for his assistance to the subcontractor on the Marathon Key project.
U.S. Attorney Wifredo A. Ferrer stated, “Corruption in the procurement process is unacceptable, especially when it affects programs receiving federal funds. It is crucial that businesses compete on a level playing field, without improper outside influences or the payment or receipt of bribes. The U.S. Attorney’s Office will continue to prosecute those who steal from programs receiving federal funds.”
“This investigation reveals how business is not to be conducted in the United States. The FBI is committed to investigating not just corrupt acts, but the individuals who are behind them,” said Michael B. Steinbach, Acting Special Agent in Charge of the FBI’s Miami Division. “We encourage anyone who may have information about corruption to come forward and report it. That information is critical to our work.”
“Individuals in positions of public trust are expected to work in an ethical manner,” said Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “Accepting a bribe corrupts the system, and IRS Criminal Investigation is committed to working with our law enforcement partners to enforce the law and hold individuals accountable who engage in this type of fraud.”
“The charges filed today are an example to all who would misuse their positions as caretakers of the public trust,” said Marlies T. Gonzalez, Regional Special Agent in Charge, U.S. DOT OIG. “We will continue to vigorously investigate and work with our law enforcement and prosecutorial colleagues to see that those who violate the public trust are punished to the fullest extent of the law.”
Defendant Capobianco, Jr. made his initial appearance in federal court this morning before U.S. Magistrate Judge Barry Seltzer.
If convicted of the charges in the Information, defendant Capobianco, Jr. faces a statutory maximum term of imprisonment of up to 10 years.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the U.S. Department of Transportation, Office of Inspector General, in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan.
Attachments: Information (PDF)
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.
Charlotte Woman Sentenced to More Than Three Years in Prison for $730,000 Mail Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A Charlotte woman was sentenced on Tuesday, January 22, 2013, by U.S. District Court Judge Frank Whitney to 41 months in prison to be followed by three years of supervised release for carrying out a six-year mail fraud scheme against her employer, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The defendant was also ordered to pay restitution in the amount of $737,733.
U.S. Attorney Tompkins is joined in making today’s announcement by Roger A. Coe, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, Maureen Barbara Mallon, 67, of Charlotte, pleaded guilty in July 2011 to one count of mail fraud. Court documents show that Mallon was employed by an insurance company in Charlotte, as the company’s accounts payable/receivable manager and later as its office manager. From 2004 to 2010, Mallon engaged in a scheme to defraud her employer, court records indicate. According to court documents, Mallon’s position at the insurance company gave her full access to the company’s operating account and made her responsible for various administrative and financial tasks, including processing invoices and remitting payments of insurance premiums to insurance companies underwriting client policies for Mallon’s employer.
Court records indicate that beginning in March 2004 Mallon began issuing duplicate insurance premium payments from her employer’s operating accounts. According to court documents, Mallon would mail one check to the underwriting insurance company and deposit a duplicate check into her personal bank account. Filed court documents show that the duplicate company check was usually made payable to “Amwins Brokerage of the Carolinas,” which was an underwriting insurance company that did business with Mallon’s employer. To facilitate the deposit of the fraudulent checks, Mallon changed the name on the personal bank account to “Maureen B Mallon DBA Amwins Brokerage,” court records show.
According to court records and proceedings, over the course of six years, Mallon deposited approximately $730,000 into her personal bank account, and used the money for personal expenditures, including vehicle expenses and residential rental payments. Mallon was ordered to self-report to the Federal Bureau of Prisons to begin her sentence upon the designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI. The case was prosecuted by Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte.
Chamness Technology, Inc. Sentenced for Discharge of PollutantRead the Press Release
DES MOINES, IA B Chamness Technology, Inc. (CTI) was sentenced today to pay a $100,000 fine for the discharge of a pollutant announced United States Attorney Nicholas A. Klinefeldt. United States Magistrate Judge Ross A. Walters also sentenced CTI to serve a term of two years supervised probation, which includes conditions that CTI perform community service and develop a compliance and ethic program. The Court also imposed a $125 crime victim fund assessment.
On November 1, 2010, the Iowa Division of Natural Resources responded to a complaint of a discharge in the Palestine Creek in Wapello County. An investigation revealed that leachate water and storm water runoff had been discharged from an umbilical hose at CTI’s compost facility located outside Eddyville, Iowa. A CTI employee caused the discharge by failing to attach the umbilical hose and ensure the umbilical hose was connected to a spray irrigator at the facility. The leachate water and storm water runoff entered the Palestine Creek and flowed to the Des Moines River. The discharge was not permitted and the employee acted within the scope of employment and intended at least in part to benefit CTI through the employee’s actions.
The case was investigated by the Environmental Protection Agency and the Iowa Division of Natural Resources, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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California Economist Found Guilty on All Counts in Manhattan Federal Court of Tax Evasion and Mail Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID GILMARTIN, a Ph.D. economist, was found guilty today in Manhattan federal court of tax fraud charges stemming from his failure to file income tax returns, report more than $1.7 million in income, and pay over $1.5 million in taxes, penalties, and interest for the years 1989 through 2010. GILMARTIN was convicted after a one-week jury trial before U.S. District Judge Miriam G. Cedarbaum.
Manhattan U.S. Attorney Preet Bharara stated: “David Gilmartin repeatedly and systematically flouted the tax laws, and during his journey through the criminal justice system he got to see other people’s tax dollars at work, all the way through his conviction. With his conviction today, he trades his status as tax evader for tax felon. This Office will continue to prosecute tax cheats of all stripes and will not tolerate those who think the laws do not apply to them.”
According to the Indictment and the evidence presented during the trial:
GILMARTIN, who has a Ph.D. in economics, worked from 1989 to 2010, as an economist, performing computer analysis for a variety of companies, some of which were located in New York. Despite being paid compensation for every tax year during that 22-year period, GILMARTIN failed to file tax returns with the IRS as required, and evaded paying more than $1.5 million in taxes, penalties, and interest. GILMARTIN claimed that he did not have to file income tax returns or pay income taxes. He based his views in large part on the conduct of others who evaded paying taxes, and who are currently in prison on various tax charges.
GILMARTIN took various steps to evade his tax obligations and obstruct the IRS’s ability to collect back taxes. He used a false Social Security Number, submitted IRS forms to certain employers fraudulently claiming to be exempt from taxes, and caused checks that were paid to him as compensation to be cashed against a personal bank account rather than be deposited. GILMARTIN also caused checks paid to him as compensation to be made payable to a finance company, in order to pay down a personal line of credit and to prevent the IRS from seizing, pursuant to bank levies, the funds paid to him as compensation. GILMARTIN also engaged in a scheme to defraud New York out of state income taxes.
Over the years, GILMARTIN ignored many warnings and statements of courts, the IRS, and New York tax authorities, and associates who told him that he was required to file and pay income taxes. GILMARTIN admitted to an undercover agent earlier this year that he “may be living in prison next year.”
GILMARTIN, 69, of Phelan, California, faces five years’ incarceration on the tax evasion and charge and 20 years’ incarceration on the mail fraud charge. GILMARTIN also faces three years’ incarceration on the tax obstruction charge, and one year each on the failure to file and pay taxes charges.
United States District Judge Miriam G. Cedarbaum set April 30, 2013 as the sentencing date for GILMARTIN.
Mr. Bharara praised the work of the New York Field Office of the Internal Revenue Service, Criminal Investigations.
The prosecution was handled by Assistant United States Attorney Stanley Okula, and Nanette L. Davis, Assistant Chief with the Northern Criminal Enforcement Section of the Tax Division of the Department of Justice.
U.S. v. David Gilmartin S1 Indictment
CHARGING DOCUMENTS: U.S. V. Nikita Kuzmin, U.S. V. Mihai Ionut Paunescu, and U.S. V. Deniss CalovskisRead the Press Release
U.S. v. Nikita Kuzmin Information
U.S. v. Deniss Calovskis S4 Indictment
U.S. v. Mihai Ionut Paunescu Complaint
U.S. v. Mihai Ionut Paunescu Indictment
U.S. v. Nikita Kuzmin ComplaintBrothers from Newport News Plead Guilty to Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – Andrew Lee Liesman, and his twin brother, Randall Scott Liesman, both 25, of Newport News, pled guilty January 22, 2013, to receipt of child pornography.
Neil H. MacBride for the Eastern District of Virginia, made the announcement after the pleas were accepted by United States District Magistrate Judge Lawrence R. Leonard.
The Liesman brothers were indicted by a federal grand jury on charges of distribution, receipt and possession of child pornography, as well as numerous charges of obscene visual representations of the sexual abuse of children. A search warrant was obtained after they distributed child pornography to undercover officers. They were arrested following execution of the search warrant and both confessed to downloading child pornography. Both men face up to 20 years in prison and a lifetime of supervised release when they are sentenced on April 23, 2013.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
The case was investigated by FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case on behalf of the United States.Brooklyn Park Man Sentenced for Health Care FraudRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 52-year-old Brooklyn Park man was sentenced for executing a scheme to defraud Medicaid out of more than $500,000. United States District Court Judge David S. Doty sentenced Allwell Tam Inimgba to 18 months in prison on one count of health care fraud. Inimgba, was charged on September 21, 2012, and pleaded guilty on October 9, 2012.
In his plea agreement, Inimgba admitted that from January of 2006 to March of 2009, he executed a scheme to defraud Medicaid, a federal health benefit program, by billing it for services supposedly provided by Registered Nurses (“RNs”), when that was not the case. At the time, Inimgba was the responsible billing party for Victory Home Care, Inc. (“Victory”), a home health care agency that provided, or purported to provide, RN services to Medicaid recipients.
During the time period noted above, Inimgba billed Medicaid for more than 20,000 hours of services supposedly provided to various clients by RNs, and Medicaid paid Victory more than $1,400,000 as a result of those claims. However, RNs provided far less care than noted in Victory’s claims. In fact, approximately $513,734 awarded to Victory was ultimately found to be for work not done by RNs.This case was the result of an investigation by the U.S. Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, the Minnesota Department of Health, and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit. It was prosecuted by Assistant U.S. Attorney David M. Genrich.
According to the Justice Department, health care fraud investigations have been growing, and the Department has formed a senior-level task force to tackle the problem nationwide. The Health Care Fraud Prevention and Enforcement Action Team, represented by the Department of Justice and Health and Human Services, will look at how to share more effectively real-time intelligence data on health care fraud patterns as well as critical information about health care services, pharmaceuticals, and medical devices. In 2008, the Justice Department filed criminal charges in 502 health care fraud cases involving 797 defendants.
In Minnesota, the U.S. Attorney’s Office is also participating in a task force with the Minnesota Attorney General Office’s Medicaid Fraud Control Unit that focuses on home health care fraud. That task force includes the U.S. Department of Health and Human Services-Office of Inspector General, the Federal Bureau of Investigation, the Internal Revenue Service, and other federal, State and local law enforcement partners.
For more information, visit http://www.stopmedicarefraud.gov/Brecksville Man Ordered to Forfeit $1 Million, Sentenced to Nine Months Home DetentionRead the Press Release
A Brecksville man was sentenced today to nine months of home detention with electronic monitoring, ordered to perform 40 hours of community service by United States District Court Judge Dan Aaron Polster, who also entered the final order of forfeiture in the amount of $1 million arising from his conviction on one count of conspiracy to hire undocumented workers, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ravindra Telluri, age 42, of Brecksville, Ohio, was also sentenced to five years of supervised release.
Telluri previously pleaded guilty before United States District Court Judge Dan Aaron Polster on October 17, 2012, at which time Telluri paid $1 million to the United States to satisfy the forfeiture based upon the proceeds he received as a result of his criminal activity.
Telluri is a lawful permanent resident of the United States and a citizen of India, according to court records. He also withdrew his application to obtain United States citizenship by naturalization and agreed to no longer work in any employment position involving the recruiting or hiring of undocumented workers.
“We will continue to prosecute those employers who would hire undocumented workers,” Dettelbach said. “While the H-1b temporary worker visa program can be a valuable tool in a company’s hiring practices, abuse of the system will not be tolerated.”
Between January 1, 2008 and October 14, 2010, Telluri was the sole owner and operator of two information technology firms, Hytech Consulting, Inc., and InterOne Corp., both companies located in Seven Hills, Ohio. The firms hired and then placed computer programmer analysts at client firms to serve as computer consultants. The two companies were subsequently sold and Telluri is no longer an owner or operator, according to court documents.
During the time period charged in the criminal information, Telluri engaged in a conspiracy with two unindicted coconspirators in India to recruit and hire citizens of India to come to the United States as temporary specialty occupation workers in the area of information technology as computer programmer analysts, according to the information.
Federal laws permit companies to recruit and hire qualified temporary specialty occupation workers utilizing H-1b visas issued by the United States Citizenship and Immigration Services (USCIS). As part of the process, there must exist an actual position for the person to be hired and a Labor Condition Application from the Department of Labor certifying that hiring a temporary alien worker at the location of the employment will not adversely affect the existing workforce in that geographic area of the country.
It was part of the conspiracy that Telluri was aware at the time of hiring undocumented workers that false documentation purportedly from client companies previously had been submitted as part of the process of submitting petitions for issuance of H-1b visas, and that as a result, he hired workers who were not lawfully authorized to be so employed, according to the information.“Our goal is to protect opportunities for the nations’s legal workers and level the playing field for those businesses that play by the rules,” said William Hayes, Acting Special Agent in Charge for Homeland Security Investigations Detroit, which covers Michigan and Ohio. “Employers who willfully violate our nation’s hiring laws gain an unfair economic advantage over their law-abiding competitors. They will be held accountable for their actions as evident in the significant financial penalties as a result of today’s sentencing.”
“Today’s sentencing should serve as a stern warning to those who intentionally submit false labor certification applications to the U.S. Department of Labor. The defendant in this case devised an international scheme to fraudulently obtain H-1b visas for foreign workers. The Office of Inspector General will continue to work with our law enforcement partners to combat these types of crimes,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Officer of Labor Racketeering and Fraud Investigations.
“U.S. Citizenship and Immigration Services (USCIS) immigration officers serve on the front lines protecting our Nations’s security and, as this case so aptly demonstrates, are actively involved in the detection of fraud and abuse,” said Mark Hansen, USCIS District Director in Cleveland. “We remain committed to protecting the immigration system from those who would seek to exploit it and, together with our federal, state, and local law enforcement partners, will strive to maintain the integrity of our national immigration system.”
The case was prosecuted by Assistant U.S. Attorneys Phillip J. Tripi, Gregory C. Sasse, and James L. Morford, following an extensive joint criminal investigation by Homeland Security Investigations, Department of Labor Office of Inspector General, and the United States Citizenship and Immigration Services.
Boston Man Charged with Multiple Bank RobberiesRead the Press Release
BOSTON - A Boston man was charged yesterday with robbing two banks in Boston and Somerville.
Michael Tucker, 45, was indicted on two counts of unarmed bank robbery.
It is alleged that on Oct. 10, 2012, around 3:30 p.m., a man entered Citi Bank on Stuart Street in Boston, handed the teller a note and stated that he had a gun. The teller handed $2,396 to the man, who then fled the bank.
On Oct. 13, 2012, around 11:20 a.m., a man entered the Citizens Bank in Union Square, Somerville. While at the teller’s station the man shouted, “This is a robbery.” The man passed a note to the teller demanding money. After the teller then handed him $1,720 he fled the bank leaving the demand-note behind.
It appears to be the same man, whose image was captured on bank surveillance videos, that robbed both banks.Following the robbery of the Citizens Bank and based on the images captured by both bank’s surveillance video system, the Somerville Police Department released a photograph of Tucker, as the suspect wanted in the robbery. On Oct. 15, 2012, the FBI’s Violent Crimes Task Force received a call from a Detective of the Westwood Police Department, who was conducting an unrelated investigation for a recent breaking and entry of a gas station, and suspected the man involved might be Tucker. The FBI’s Violent Crimes Task Force then compared surveillance photos from each incident with Tucker’s RMV photograph concluding that it was the same individual. On Oct. 16, 2012, the FBI, acting on a tip, located and arrested Tucker in a motel in southern New Hampshire.
The maximum sentence under the statue is 20 years in prison, to be followed by three years of supervised release, a $250,000 fine and restitution.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division; John Gibbons, U.S. Marshal of the U.S. Marshal’s Service; and Chief Paul T. Donovan of the Salem New Hampshire Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Belcourt Man Pleads Guilty to Sexual AbuseRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Jan. 23, 2013, Nodin J. Azure, 24, Belcourt, N.D., pleaded guilty in U.S. District Court to a charge of sexual abuse.
On May 24, 2011, Azure went into a bedroom where the victim was sleeping and proceeded to have sexual intercourse with the victim. When the victim awoke, she pushed Azure off of her, fled the residence, and drove to the hospital.
The charge of sexual abuse carries a statutory maximum penalty of life in federal prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Turtle Mountain Agency.
Sentencing for Azure has been scheduled for May 20, 2013, in U.S. District Court in Minot, N.D., at 10:00 a.m.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Atlanta Man Sentenced for Smuggling Cocaine from Caribbean Through Hartsfield-Jackson International AirportRead the Press Release
ATLANTA – Lincoln E. Son, 38, of Atlanta, was sentenced today by United States District Judge Orinda D. Evans, to serve 16 years, 8 months in federal prison on charges of conspiring to import cocaine into the United States aboard international commercial flights.
As a member of a Caribbean-based drug-trafficking organization, Son recruited Delta employees at Hartsfield-Jackson International Airport to pick suitcases filled with cocaine from checked baggage ramps, bypass U.S. Customs inspection, and smuggle the luggage off airport property.
United States Attorney Sally Quillian Yates said, “Putting a stop to the use of commercial airlines for smuggling is important, not only because narcotics themselves are a threat to the health and safety of our citizens, but also because airline smuggling of any kind poses a threat to the security of aviation in our country. Today’s sentence should serve as a reminder that those who are caught in international smuggling activity of any kind will pay a heavy price.”
“The integrity of our nation’s airport security systems is of paramount importance to Homeland Security Investigations,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “The special agents HSI has assigned to Hartsfield-Jackson have a keen eye for spotting criminal conspiracies like this one that seek to exploit what they believe are weaknesses in the system. They will not succeed on our watch.”
“Investigations and results like these are the results of extraordinary teamwork,” noted Atlanta’s High Intensity Drug Trafficking Area (HIDTA) Director, Jack Killorin.
Son was sentenced to 16 years, 8 months in prison to be followed by 5 years of supervised release. Son was convicted of these charges on October 26, 2012, upon his plea of guilty.According to United States Attorney Yates, the charges and other information presented in court: Lincoln Son, a native of the U.S. Virgin Islands, was part of a Caribbean-based drug-trafficking organization. In February 2010, the U.S. Customs Enforcement’s Homeland Security Investigations - Atlanta, received information indicating that a Caribbean-based drug trafficking organization was smuggling large amounts of cocaine into Atlanta, using suitcases laden with cocaine placed on board Delta Air Lines flights from St. Lucia, St. Maarten, and Trinidad and Tobago. Once the flights arrived at the Hartsfield-Jackson Atlanta International Airport, Delta ramp workers intercepted the cocaine-laden suitcases, circumvented U.S. Customs inspection, and smuggled them off airport property.
HSI identified Son, who had recruited the Delta personnel to intercept the cocaine laden suitcases, smuggle them off airport property, and deliver them to Son. In February 2012, Son was indicted on charges of conspiring to import cocaine, conspiracy to possess cocaine with intent to distribute, and for attempted possession of cocaine with intent to distribute. Son entered his plea of guilty to all three charges on October 26, 2012.
This case was investigated by Special Agents of the U.S. Customs Enforcement’s Homeland Security Investigations, together with Delta Air Lines Security personnel.
Special Assistant United States Attorney Jane Swift Borucki, who is a Gwinnett County Assistant District Attorney assigned to Atlanta’s High Intensity Drug Trafficking Area Task Force and the U.S. Attorney’s Office, prosecuted the case.
The U.S. Attorney's Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Arnoldo Ayala Guevara Cazarez Sentenced to 235 Months in Prison for Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. - On Tuesday, Jan. 22, 2013, Arnoldo Ayala Guevara Cazarez, 49, was sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 235 months in federal prison for his leadership role in trafficking in methamphetamine. Guevara pleaded guilty on June 5, 2012 to conspiring to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.
Guevara, his brother, Jose Cruz Guevara and his nephew, Habraham Enrique Guevara, conspired to bring four pounds of high quality Mexican methamphetamine from Oklahoma City to sell in upper East Tennessee. All four pounds were found at the Guevara family home in Limestone, Tenn. One pound was 92.9 percent pure and qualified as meth ice. Arnoldo Guevara was the main source of supply for the four pounds of methamphetamine. He set the price and directed the activities of others with regard to the transportation and ultimate delivery of the methamphetamine. Overall, the investigation resulted in the conviction of six individuals, all natives of Sinaloa, Mexico, who were illegally present in the United States. Arnoldo Guevara is an illegal alien from Mexico who had been deported from the United States on four prior occasions, but was living in Oklahoma during the period of this conspiracy. Habraham Enrique Guevara was previously sentenced to 84 months in prison for his role as a translator, lookout and transporter in the conspiracy. Jose Cruz Guevara is set for sentencing on March 4, 2013.
U.S. Attorney William C. Killian stated, “The quantity of methamphetamine seized in this case was the second largest prosecuted in federal court in the northeast division of the Eastern District of Tennessee. Methamphetamine is a highly addictive drug and the presence of high quality Mexican methamphetamine in Washington County presented a real danger to the safety of that community.”
The indictment and subsequent conviction of Guevara was the result of an investigation by the Federal Bureau of Investigation, Department of Homeland Security Investigations, Washington County Sheriff’s Office and Second Judicial District Drug Task Force. Assistant U.S. Attorneys Helen Smith and Wayne Taylor represented the United States in the prosecution.
Ambridge Man Sentenced to 3 Years in Prison for Stolen Credit Card Information SchemeRead the Press Release
PITTSBURGH - A resident of Beaver County has been sentenced in federal court to 36 months incarceration on his conviction of conspiring to use stolen credit card account numbers, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Calvin Smith, 43, of Ambridge, Pa.
According to the information presented to the court, Smith conspired with others to steal identities and account information belonging to American Express and Discover Card account holders to purchase merchandise at retail stores in Pennsylvania, West Virginia and Ohio between December 2010, and June 2011. Losses from the fraud total approximately $249,000.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Officers from the United States Postal Inspection Service and United States Secret Service, along with agents from the Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted this investigation. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the Pittsburgh Bureau of Police and the Pennsylvania State Police.
32 Chicago Area Defendants Allegedly Obtained Nearly $874,000 in Fraudulent Unemployment Insurance BenefitsRead the Press Release
CHICAGO — Thirty-two Chicago area defendants have been charged separately with fraudulently obtaining thousands of dollars each in unemployment benefits from the Illinois Department of Employment Security (IDES), federal law enforcement officials announced today. In each case, the defendants allegedly lied about their eligibility for benefits by either falsely claiming to be unemployed or underreporting their income, and fraudulently obtained benefits ranging from $19,399 to $38,798. Altogether, the charges allege that IDES was defrauded out of nearly $874,000.
Twenty-seven of the defendants were charged with felony theft of federal funds, and five were charged with misdemeanor theft counts in 32 separate criminal informations or grand jury indictments filed as recently as yesterday in U.S. District Court in Chicago. According to the charges, each defendant applied for unemployment insurance benefits, falsely certified their continuing eligibility to receive payments, and fraudulently collected benefits to which they were not entitled while gainfully employed in various occupations.
In Illinois, unemployment insurance benefits typically are funded primarily by contributions from employers, with IDES’ administrative costs funded primarily by the federal government. During periods of high unemployment, however, the U.S. Treasury also funds unemployment payments.
The charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois; James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General; and Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The U.S. Postal Service Office of Inspector General assisted with the investigation of one defendant, a mail carrier. The federal agencies conducted the criminal investigations following referrals of suspected fraud from IDES.
“The unemployment insurance program is intended to provide financial assistance to workers who are unemployed due to no fault of their own. We will continue to work with our law enforcement partners to investigate those who allegedly engage in fraudulent schemes against this and other Department of Labor programs,” Mr. Vanderberg said.
“Unemployment insurance benefits provide assistance to families during difficult times. When a person is not entitled to use these benefits, and they mislead and misuse the system, they jeopardize the integrity of a program meant for honest and deserving families. There are consequences for committing unemployment insurance fraud and the U.S. Postal Inspection Service takes this alleged criminal activity very seriously,” Mr. Brady said.
In each case, restitution is mandatory and the felony theft counts carry a maximum penalty of 10 years in prison and a $250,000 fine, while the misdemeanor theft counts carry a maximum penalty of a year in prison and a $100,000 fine. The indictments and informations contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The defendants and alleged fraud amount in each case follow:
KANYA BOOSE, 37, of Chicago, $32,567; (AUSA Philip Fluhr, Jr.); ANTOINETTE BURRELL, 63, of Chicago, $29,652 (AUSA Naana Frimpong); ANTHONY COLLINS, 56, of Chicago, $25,280; (AUSA Raj Laud); ERIC CRIBBS, 40, of Matteson, $20,423; (AUSA Katherine Sawyer); JEREMIAH DOBINE, 32, of Chicago, $25,600 (AUSA Matthew Hiller); MARIA GUZMAN, 48, of Chicago, $38,271 (AUSA Ryan Fayhee); MANUSYA HEINRICHS, 44, of Buffalo Grove, $27,950, misdemeanor (AUSA Paul Tzur); LASANDRA HERRON, 45, of Chicago, $20,200 (AUSA Boling Haxall); NICOLE HOLCOMB, 30, of Chicago, $27,168 (AUSA Sawyer); NICOLE HOWELL, 40, of Park Forest, $25,985 (AUSA Sawyer); ALLEN JONES, 45, of Kankakee, $21,242. Jones was charged with, and pleaded guilty to, a misdemeanor, and is awaiting sentencing on March 26. (AUSA Nicole Kim); THEARS JUDKINS IV, 29, of Chicago, $32,831 (AUSA Frimpong); JOSEPH J. KUBAT III, 51, of Westmont, $28,222, misdemeanor (AUSA Kate Zell); OLYMPIA LOVE, 31, of Flossmoor, $26,562 (AUSA Hiller); JAMIE MASTERSON, 26, of Carpentersville, $27,049 (AUSA Tzur); CHRISTOPHER McDONALD, 34, of Chicago, $20,740 (AUSA Laud); DARLENE McGEE, 41, of Joliet, $23,560 (AUSA Haxall); JOSEPH MORGANFIELD, 48, of Bolingbrook, $26,054 (AUSA Zell); MANUEL NIEVES, 35, of LaGrange, $25,216 (AUSA Haxall); THEAROS NOU, 40, of Chicago, $27,170 (AUSA Christopher Stetler); TONY ROBINSON, 50, of Chicago, $25,935 (AUSA Hiller); CAREY SILLS, 64, of Chicago, $36,615 (AUSA Fayhee); COURTNEY SMITH, 41, of Lockport, $31,055 (AUSA Fluhr); CURTIS SMITH, 58, of Chicago, $32,494 (AUSA Laud); STEVEN STEINBERG, 61, of Buffalo Grove, $19,680. Steinberg was charged with, and pleaded guilty to, a misdemeanor. He paid full restitution and was sentenced to a year’s probation. (AUSA Stetler); LAUREL STEVENS, 46, of Chicago, $23,392 (AUSA Stetler); SHAWN SUTTON, 46, of Chicago, $24,257 (AUSA Fluhr); MICHAEL THORNTON, 47, of Chicago, $35,697 (AUSA Frimpong); GREGORY THRASHER, 36, of Calumet, $25,240 (AUSA Sawyer); MARK VANDENBARK, 38, of Naperville, $19,399, misdemeanor (AUSA Zell); NELDA WARD, 41, of Chicago, $38,798 (AUSA Bill Thomas); and
LORETTA WASHINGTON, 35, of Alsip, $29,685 (AUSA Fayhee).
22 January 2013
Williamsville Woman Pleads Guilty to Credit Card FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today Christine Whitney, 35, of Williamsville, N.Y., pleaded guilty today before U.S. District Court Judge Richard J. Arcara to using an unauthorized access device. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Trini E. Ross., who handled the case, stated that between January 20, 2012 and March 15, 2012, Whitney fraudulently obtained a Discover credit card in the name of another person who resided outside New York State. The defendant then used the card to make unauthorized ATM withdrawals at local area banks and unauthorized purchases at various retail stores in the Western District of New York. Whitney illegally obtained cash and merchandise totaling approximately $8,000.
The plea is the culmination of an investigation by the U.S. Postal Inspection Service, under the direction of Inspector in Charge Kevin Niland.
Sentencing is scheduled for May 13, 2013 at 12:30 p.m. before Judge
Arcara.Washington Man Sentenced to Ten Years for Sex TraffickingRead the Press Release
Joseph McDaniels, 43, of Shoreline, Wash., was sentenced today in U.S. District Court for interstate transportation of a 22 year old woman for purposes of prostitution. Judge James L. Robart sentenced McDaniels to 10 years in prison followed by three years of supervised release. Requirements during the supervised release include registration under the Sex Offender Registration and Notification Act, sexual deviancy evaluation and treatment, restrictions and monitoring of his use of computers and restrictions on contact with minors.
On Sept. 28, 2012 McDaniels pleaded guilty to interstate transportation for prostitution. The indictment alleged that between August 2011 and April 2012, McDaniels compelled the woman to engage in commercial sex acts through force, fraud and coercion and that McDaniels transported her between Washington state and Oregon for purposes of prostitution.
According to court filings, McDaniels is a registered sex offender and had completed serving a 15-year sentence for a series of robberies in the mid-1990’s when he was released from state prison in early 2011. Only a few months later, McDaniels met and recruited the woman, preying upon her youth and drug addiction to coerce her into engaging in acts of prostitution.
According to court documents, McDaniels advertised the woman on Backpage.com, transported her to prostitution dates, took all of her money and supplied her with drugs. He threatened to harm her and her family, and in December 2011, McDaniels was arrested and later convicted in state court for assaulting the woman. He was arrested again in May 2012 after he had taken her to Portland, Ore., for prostitution, and then attempted to have the woman withdraw a state-issued no contact order against him.
“The exploitation and sexual abuse of a vulnerable young woman is intolerable and the Justice Department will continue to prosecute and seek justice for victims of such abhorrent crimes,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
“We will continue our battle against human trafficking in western Washington,” said U.S. Attorney for the District of Washington Jenny A. Durkan. “We are fortunate to have committed local, state and federal officers working together to find and stop sexual predators like the defendant. Today the court ensured that other young women will not be exploited by him.”
This case was investigated by the Kent Police Department, Auburn Police Department, and the FBI’s Innocence Lost Task Force, and prosecuted by Assistant U.S. Attorney Ye-Ting Woo and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The FBI’s Innocence Lost Task Force provides a rapid and effective investigative response to reported federal crimes involving the victimization of children. The task force strives to reduce the vulnerability of children to acts of sexual exploitation and abuse and strengthens the capabilities of federal, state and local law enforcement through training programs and investigative assistance.