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17 January 2013
Virgin Islands Senator Pleads Guilty to Operating and Participating in A Criminal Enterprise That Engaged in Bribery, Mail Fraud, and Wire Fraud St. Thomas, USVIRead the Press Release
St. Thomas, USVI - Former Virgin Islands Senator Alvin Williams, Jr., pleaded guilty today in federal district court to operating and participating in a criminal enterprise whose members and associates engaged in illegal activities, including bribery, mail fraud and wire fraud, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation (FBI) Special Agent in charge Joseph Campbell, United States Marshal Cheryl Jacobs, Virgin Islands Office of the Inspector General Steven van Beverhoudt, Internal Revenue Service Criminal Investigation Division (IRS-CI) Special Agent-in-Charge Jose A. Gonzalez, U.S. Department of Education Office of Inspector General Special Agent-in-Charge Yessyka Santana, Drug Enforcement Administration (DEA) Acting Special Agent-in-Charge Pedro J. Janer, and Virgin Islands Police Department (VIPD) Commissioner Henry White.
Williams, 34, and two other defendants were charged by grand jury indictment on November 8, 2012. The plea agreement followed an extensive investigation conducted by the Federal Public Corruption Task Force, which comprises the FBI, United States Marshals Service, IRS-CI, U.S. Department of Education Inspector General, DEA, Virgin Islands Office of the Inspector General, and the VIPD.
In entering his plea of guilty to Count One of the indictment, racketeering before U.S. District Court Judge Curtis V. Gomez, Williams admitted bribing a Virgin Islands public official and soliciting and receiving bribes from numerous St. Thomas construction project developers; fraudulently soliciting and increasing staff member salaries and using the increase of funds for his personal use; and using Virgin Islands Legislative staff members to do his University of Phoenix online coursework for him during legislative work hours.
Williams faces a maximum penalty of 20 years imprisonment and $250,000 in fines, in addition to forfeiture penalties and restitution. No sentencing date has been set.
United States Attorney Ronald W. Sharpe commended the work of the Public Corruption Task Force and Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, who are prosecuting this case.
Uniontown Man Sentenced to 12½ Years in Prison for Dealing Crack CocaineRead the Press Release
PITTSBURGH - A resident of Uniontown, Pa., has been sentenced in federal court to 150 months (12 ½ years) incarceration and six years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Darrell Howard Foster, 35.
According to information presented to the court, on March 14, 2012, Foster possessed with intent to distribute crack cocaine. As a result of Foster's prior felony drug and aggravated assault convictions, he was deemed a career offender and subject to an increased recommended sentencing range.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration, Pennsylvania State Police, and Uniontown Police Department for the investigation leading to the successful prosecution of Foster.
U.S. Attorney's Office to Host School Safety Summit on February 6thRead the Press Release
Educators and law enforcement to address practical steps against school violence; Pulitzer-prize nominated expert and author to speak
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today announced that the United States Attorney's Office for the Southern District of West Virginia will host a Summit on West Virginia Safe Schools on Wednesday, February 6, 2013, beginning at 9 a.m. at the Culture Center, State Capitol Complex in Charleston. The summit will bring together educators and law enforcement officials, who will jointly consider practical steps to prevent and prepare for school violence. Dr. James Phares, West Virginia Superintendent of Schools, will speak at the summit's morning session.
The summit will feature a morning address by internationally recognized scholar, author, and speaker Lt. Col. Dave Grossman (ret.), an expert on the causes of mass shootings and school violence. Lt. Col. Grossman is a former nominee for the Pulitzer Prize in non-fiction for his work on the psychology of violence.
In addition, three panels of experts from around West Virginia will address issues in school safety. Following the summit, participants will develop a written set of school safety recommendations for the education and law enforcement communities.
"The goal of this summit is to answer two very practical questions," said U.S. Attorney Booth Goodwin. "First, how do we identify potentially violent situations in schools and handle them before something bad happens? Second, what should our schools and first responders be doing to prepare in case the unthinkable comes to pass?"
"The tragedy last month at Sandy Hook Elementary was heartbreaking, and it's still very much on all our minds," Goodwin continued. "This summit is a chance to develop specific steps that we can take, right now, at the local level, to prevent school violence and to be as prepared as possible. I invite anyone who's interested in safer schools to join us on February 6 and participate in the discussion."
Lt. Col. Dave Grossman (ret.), a former West Point psychology professor and U.S. Army Ranger, is a leading expert in the field of human aggression and the causes of violence and violent crime. He has presented papers before the national conventions of the American Medical Association, the American Psychiatric Association, the American Psychological Association, and the American Academy of Pediatrics. Lt. Col. Grossman has been involved in the response to numerous school shootings, including the tragedies at Columbine and Virginia Tech. He will speak to summit participants at 9:30 a.m.
Three panels of experts from around West Virginia will address an array of issues related to school violence. The first panel will focus on how to identify and address potentially violent situations. The second will concentrate on planning by schools and by law enforcement agencies for what to do if violence occurs. The third will emphasize the perspectives of those on the front lines of these issues: principals, teachers, counselors, law enforcement officers, and students.
Participants in the three panel discussions will include Mark Manchin, Executive Director of the West Virginia School Building Authority, as well as representatives of the West Virginia Department of Education, the West Virginia Department of Military Affairs and Public Safety, and the West Virginia State Police.
The Summit on West Virginia Safe Schools is being co-sponsored by the West Virginia Department of Military Affairs and Public Safety and the West Virginia Division of Justice and Community Services. The Summit is also being held in partnership with the West Virginia State Police, the West Virginia Department of Education, the West Virginia Center for Professional Development, the West Virginia School Building Authority, and Cabell County Schools.
The February 6th summit is open to educators and law enforcement personnel, and to the public. Individuals interested in attending may register at www.wvsafeschools.org. Seating is limited, so those interested are encouraged to register well in advance.
For questions regarding the Safe Schools Summit, please call Deanna Eder at: 304-345-2200 or 800-659-8726.
Two Men Indicted for Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS—Yesterday in federal court, two men from northern Minnesota were indicted in connection with the December 10, 2012, armed robbery of the First State Bank of Bigfork, located in Kelliher, Minnesota. Cody Lowell Troy, age 19, of Mizpah, and Travis Michael Burns, age 20, of Bemidji, were charged with one count of armed bank robbery. In addition, Troy was charged with one count of brandishing a firearm during a crime of violence and one count of being a felon in possession of a firearm.
The indictment alleges that on December 10, 2012, the defendants stole approximately $3,738 from the bank while putting the lives of others in jeopardy by brandishing a 12-gauge, sawed-off shotgun. In addition, authorities assert that the shotgun’s serial number was partially obliterated.
According to a law enforcement affidavit filed in the case, an individual, later identified as Troy, entered the bank at approximately 2:24 p.m. He reportedly wore a white protective containment suit, a “Halloween” movie style mask, Nike Air Jordan shoes, and black gloves. Allegedly, he approached a teller, placed a black backpack on the counter, pointed the shotgun in the teller’s direction, and pumped the gun. The teller immediately placed the money in the backpack, which Troy allegedly grabbed before fleeing the premises in a red pickup truck.On December 12, 2012, police arrested Troy in Bemidji on an outstanding Itasca County warrant for failure to appear in connection with a prior felony. At that time, officers also located a red pickup that matched the description of the one witnesses spotted in the vicinity of the bank immediately after the robbery.
During the subsequent execution of a search warrant at the Bemidji apartment where Burns lived and Troy was staying, authorities seized shotgun shells, a hacksaw, and a loaded sawed-off shotgun, as well as the sawed-off gun stock and barrel. They also recovered a white protective containment suit, black gloves, Nike Air Jordan shoes, and a “Halloween” movie style mask. The backpack used in the robbery, as well as some money from the bank were recovered in Burns’ bedroom.
Because he is a felon, Troy is prohibited under federal law from possessing a firearm at any time. In 2011, Troy was convicted of third-degree burglary in Koochiching County.
If convicted, the defendants face a potential maximum penalty of 25 years in prison for armed bank robbery. In addition, Troy faces a potential maximum penalty of ten years for being a felon in possession of a firearm and a mandatory minimum penalty of ten years for brandishing a firearm during a violent crime. All sentences will be determined by a federal district court judge.
This case was investigated by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Kevin S. Ueland.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.
Toledo Men Accused of Defrauding Insurance Companies Through Fake Auto AccidentsRead the Press Release
An indictment was filed charging Michael N. Smith, age 57, and Darryl Richardson, age 57, both of Toledo, with conspiracy to commit mail fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The defendants are accused of devising a scheme to enrich themselves through the submission of false and fraudulent auto insurance claims to various insurers, causing total losses of more than $135,000. The scheme involved recruiting numerous other co-conspirators to fake auto accidents and then make false claims to insurance companies, according to the indictment.
The conspiracy took place between December 2006 and March 2009 and involved more than 20 claims submitted to companies including GEICO, Safe Auto Insurance Company, Permanent Generl, n/k/a The General, and Progressive Casualty Insurance Company, according to the indictment.
If convicted, the defendants’ sentence will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agencies in this case are the United States Postal Service, Cleveland, Ohio, United States Secret Service, Toledo, Ohio, and the National Insurance Crime Bureau, Chardon, Ohio. The case is being handled by Assistant United States Attorney Joseph R. Wilson.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Title Company Owner Sentenced in $1.5 Million Fraud SchemeRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Harriet M. Taylor, age 57, of Ellicott City, Maryland, today to two years in prison followed by five years of supervised release for wire fraud in connection with a scheme to use over $1.5 million in mortgage closing funds for her personal use and to operate her title companies. Judge Quarles also ordered Taylor to pay restitution of $1,256,635.70 to Old Republic and $253,750.84 to CAN Surety, the insurer on Taylor’s errors and omissions policies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Inspector General Steve A. Linick of the Federal Housing Finance Agency Office of Inspector General.
According to her plea agreement, Taylor co-owned and managed two title insurance companies, Regal Title Company, LLC and Loyalty Title Company, LLC, located in Columbia, Maryland. Pursuant to an agreement with a national title insurance underwriter, and as required by Maryland state law, escrow accounts for Regal and Loyalty were established, separate from company operating accounts, for the purpose of holding and disbursing funds received from lenders for real estate closings.
Beginning in 2009, however, Taylor caused some mortgage lenders to wire their funds entrusted for real estate settlements to Regal’s operating account, rather than to the escrow accounts. Taylor also caused funds in Regal’s and Loyalty’s escrow accounts to be transferred back and forth to the companies’ respective operating accounts. By using commingled funds throughout 2009, Taylor kept her two businesses afloat, while enriching herself with both company and escrow funds. From January through December 2009, Taylor paid herself $477,877.50 from three company operating accounts.
As shortfalls in the escrow accounts increased, Taylor failed to remit insurance premiums to the title insurance underwriter, Old Republic National Title Insurance Company (Old Republic), pay recording fees for deeds and pay off prior liens, including four of which belonged to the government sponsored entities, Fannie Mae and Freddie Mac.
Old Republic learned of the commingling of escrow and operating funds during a 2009 audit of Regal. They directed Taylor to stop the practice. Five months later during a further audit of both companies, Old Republic discovered that in nine cases Taylor used the payoff checks that were supposed to pay prior lien holders, and immediately terminated her as an agent. Old Republic was obligated to satisfy the prior liens against the properties affected by the misuse of settlement funds and to complete other transactions Regal and Loyalty failed to perform. Accordingly, in January 2010, Old Republic incurred a total loss of $1,518,532 which resulted from paying off prior liens, paying recording fees, and for insurance premiums collected by Regal and Loyalty but not forwarded to Old Republic.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and the Federal Housing Finance Agency Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Three Holyoke Residents Sentenced for Defrauding MasshealthRead the Press Release
BOSTON – Three Holyoke residents were sentenced this week in U.S. District Court in Springfield for defrauding MassHealth, the Commonwealth’s Medicaid program.
Today, Aida Hernandez, 59, was sentenced to two years of probation and ordered to pay $23,383 in restitution. On Jan. 15, 2013, Maria Jusino, 35, was sentenced to three years of probation, including six months of home confinement, and ordered to pay $159,285 in restitution to MassHealth. Rafael Belen, 39, was also sentenced to time served, to be followed by three years of supervised release, during which time he will be required to perform 100 hours of community service, and ordered to pay $78,956 in restitution. In August 2012, Jusino, Belen and Hernandez pleaded guilty to conspiracy to commit health care fraud.
Beginning in 2006 and continuing through 2011, the three co-conspirators engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program. The PCA Program, funded by MassHealth, the Commonwealth’s Medicaid Program, helps individuals with permanent or chronic disabilities keep their independence, stay in the community, and manage their own personal care. The defendants caused MassHealth to be billed for services that were never provided. For example, Jusino billed MassHealth for PCA services she claimed she provided to two different individuals at the same time. Other examples include the following:
- Jusino and Belen signed times sheets for PCA services for their son that were never provided;
- Belen claimed to be providing for PCA services to his brother-in-law in Holyoke when Belen was, in actuality, on vacation in Puerto Rico;
- Hernandez signed time sheets for PCA services she claimed she was provided to Jusino’s son on the same dates and during the same hours that she was running a day care center in her home; and
- Jusino billed MassHealth for PCA services she claimed she was performing for her mother during the same hours that Hernandez was billing MassHealth for PCA services she claimed to be providing to Jusino.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was investigated by the U.S. Department of Health and Human Services with the assistance of the Commonwealth of Massachusetts Auditor’s Office, Bureau of Special Investigations and the Commonwealth of Massachusetts, Office of the Attorney General, Medicaid Fraud Division. The case was prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Office.
Thirty Boston Gang Members Charged with Drug and Firearms Offenses Law Enforcement Round-Up Members of Hendry Street and Woodward Avenue GangsRead the Press Release
BOSTON - Over 300 federal, state and local law enforcement officers carried out arrests and executed search warrants early this morning in Operation Concord, a large-scale collaborative investigation into the violence and distribution of drugs by the Woodward Avenue and Hendry Street gangs and their associates who terrorized the residents in Bowdoin-Geneva section of Dorchester and the Uphams Corner section of Roxbury.
“This community has been in desperate need of reprieve from the violence. We hope the arrests and prosecution of the defendants will quiet the streets and improve the quality of life for all residents,” said United States Attorney Carmen M. Ortiz.
“Today is a great day for the hardworking people of Bowdoin-Geneva and Uphams Corner,” Mayor Thomas M. Menino said. “Thanks to their help, and the help of our law enforcement partners, drugs have been taken from our streets, and these violent individuals who profit from harming others will no longer terrorize our neighborhoods.”
Teams of law enforcement and SWAT/STOP members arrested a total of 27 people today; 25 from the local area, one from California and one from Maine. Two other defendants are already in custody on federal supervised release violations and one remains a fugitive. Search warrants were executed at 12 locations.
As stated in court documents, the investigation, which involved controlled drug purchases, surveillance, and a wiretap, began in the summer of 2011. It is alleged that the defendants have been involved in gang, gun and drug activity in the Bowdoin-Geneva corridor or other areas of Dorchester and Roxbury at the direction of Alexis Hidalgo, 31, of Dorchester, and Jonathan DaSilva, 29, of Roxbury. Wiretap evidence was a crucial component of the investigation and provided investigators with information regarding the alleged partnership between Hidalgo, alleged leader of the Hendry Street gang, and DaSilva, alleged leader of the Woodward Avenue gang.
Hidalgo and DaSilva are alleged to be responsible for the distribution of kilos of crack cocaine, thousands of oxycodone pills throughout greater Boston, as well as hundreds of pounds of marijuana which they branded as high-grade and sold for up to $5,200 a pound. In a wiretap recording, a “mother-load” shipment of drugs was described in a call intercepted between Hidalgo and his associate. It is alleged that Hidalgo responded by saying, “You just got us indicted bro. If they are listening, I sell weed man.”
“From the Berkshires to Cape Cod, the FBI and our law enforcement partners actively analyze and investigate hot spots of gang activity in Massachusetts. As a result, we have concluded several lengthy gang investigations over the past year like today’s, which targets the Hendry Street and Woodward Avenue gangs,” said Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Because of today’s multiple arrests, neighborhoods in Boston and several surrounding cities and towns are safer now than they were mere hours ago. Our unified law enforcement goal is to eradicate the scourge of gang activity which adversely impacts the safety of our communities.”
“This case demonstrates, working with our law enforcement partners, we are keeping the pressure on violent criminals involved in the drug trade,” Police Commissioner Ed Davis said. “We will not tolerate these defendants and others like them from terrorizing our neighborhoods. We are committed to rooting out the bad actors who make our communities unsafe.”
“This effort shows our collective resolve in Boston and the Commonwealth to attack and dismantle these dangerous street gangs," said Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “For too long, gangs here and elsewhere have used violence and intimidation to hold communities hostage. As this operation shows, now it's the gang members who have something to fear.”
“The Massachusetts Department of Correction is committed to working with other criminal justice agencies in a joint effort to ensure public safety,” said Luis S. Spencer, Commissioner of the Massachusetts Department of Correction.United States Marshal John Gibbons said, “The success of this investigation demonstrates the excellent working relationships the federal government shares with its state and local partners.”
The following individuals have all been charged with conspiracy to distribute cocaine base, cocaine, heroin, and marijuana, and are subject to forfeiture of property:
1) Alexis Hidalgo, 31, of Dorchester. (Also charged with two counts of distribution of cocaine base.)
2) Jonathan DaSilva, 29, of Roxbury. (Also charged with distribution of marijuana, two counts of distribution of cocaine base, distribution of oxycodone, and being a felon in possession of a firearm.)
3) John Alves, 23, of Roxbury.
4) Hamzal Awil, 24, of Westbrook, Maine.
5) Benjamin Baptista, 29, of Hyde Park.
6) Jeremia Barbosa, 28, of New Bedford.
7) Maurice Barnett, 30, of Salinas, Cali.
8) Jackson Barros, 30, Dorchester. (Fugitive)
9) Michael Beal, 32, of Roxbury.
10) Joshua Brandao, 22, of Dorchester. (Also charged with distribution of cocaine base.)
11) Julio Collazos, 32, of Brockton.
12) Ilton Correia, 28, of Roxbury. (Also charged with distribution of marijuana.)
13) Jerry Correia, 25, of Dorchester.
14) Lino Correia, 20, of Randolph.
15) Alex DaSilva, 29, of Roxbury.
16) Jose Denis, 36, of Roxbury.
17) Carlos Fernandez, 36, of Dorchester.
18) Moises Figueroa, 33, of Wellesley Hills. (Also charged with distribution of cocaine base.)
19) Patrick Gomes, 27, in federal custody on a supervised release violation. (Also charged with being a felon in possession of a firearm.)
20) Hamilton Lopes, 29, of Brockton. (Also charged with distribution of cocaine base.)
21) Leakana Om, 22, of Cambridge.
22) Nicholas Otey, 25, in federal custody on a supervised release violation. (Also charged with distribution of cocaine base.)
23) Ruth Rivera-Lopes, 22, of Dorchester.
24) Morris Robinson, 31, of Brockton.
25) Martinho Rodrigues, 30, of Boston.
26) Victor Scott, 23, of Dorchester. (Also charged with distribution of cocaine base.)
27) Dulsilina Tavares, 26, of Dorchester.
28) Carl Taylor, 34, of Roxbury.
29) O’Neil Taylor, 30, of Norwood.
30) John Webbe, 34, of Boston. (Also charged with distribution of cocaine).Jonathan DaSilva and Gomes face an additional count of forfeiture for all firearms including a Ruger P89 semiautomatic handgun.
U.S. Attorney Ortiz; Mayor Thomas M. Menino; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Edward Davis; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement, Homeland Security Investigations in Boston; United States Marshal John Gibbons; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Commissioner Luis S. Spencer of the Massachusetts Department of Correction, made the announcement today.
Special thanks to Suffolk District Attorney Daniel Conley and members of his office and the numerous local law enforcement agencies who provided substantial cooperation and assistance throughout the course of the investigation and during the execution of the arrests and searches today. The case is being prosecuted by Assistant United States Attorneys in Ortiz’s Organized Crime and Gang Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tenino Elementary School Teacher Charged with Possession of Child PornographyRead the Press Release
A teacher at Tenino Elementary School is in custody today charged with possession of child pornography, announced U.S. Attorney Jenny A. Durkan. JAMES DONALD MOBLEY, 46, was arrested yesterday on a criminal complaint charging him with receipt and possession of child pornography. MOBLEY is also active as a volunteer in Boy Scouts and as a private tutor. The U.S. Postal Inspection Service and Tenino Police Department are investigating the case. Parents who are concerned about contact their children may have had with MOBLEY are asked to call Tenino Police at 360-264-2626.
According to records filed in the case, the U.S. Postal Inspection Service has been investigating an international company that distributed child pornography through the mails and via download to personal computers. In May 2011, foreign law enforcement executed a search of the business and seized hundreds of child pornography DVDs and business records. An analysis of those records revealed that on multiple occasions between February 2009 and January 2011, MOBLEY had purchased suspected child pornography from the company. In a search of MOBLEY’s home, law enforcement seized a computer hard drive and additional DVDs of child pornography.
MOBLEY remains detained at the Federal Detention Center at SeaTac, Washington pending a detention hearing on Tuesday January 22, 2013. The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tenino Police Department and the U.S. Postal Inspection Service (USPIS).
The case is being prosecuted by Assistant United States Attorney Marci Ellsworth.
Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Albany, New York —JAMES P. AIMI, age 65, of Ancram, New York, pled guilty on January 14, 2013 in United States District Court in Albany before Chief United States District Court Judge Gary L. Sharpe to twenty-four counts of aiding and assisting in the preparation and presentation of false and fraudulent U.S. income tax returns, announced United States Attorney Richard S. Hartunian and Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, New York Field Office.
AIMI admitted that between 2005 and 2008, he aided numerous taxpayers in the preparation of income tax returns for presentation to the Internal Revenue Service each of which was false and fraudulent, in that each return represented that the taxpayer was entitled to claim deductions that AIMI knew were false or exaggerated.
Sentencing was scheduled by Chief Judge Sharpe for May 7, 2013, at 11:00 a.m. in Albany, New York. Aimi faces a maximum sentence of three years of imprisonment on each of the twenty-four counts.
This case was investigated by the Internal Revenue Service.
LOCAL CONTACT:
Daniel Hanlon
Assistant U.S. Attorney
Tel: (518) 431-0247Tanya Marie Nava Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on January 16, 2013, before Chief U.S. District Judge Richard F. Cebull, TANYA MARIE NAVA, a 38-year-old resident of Billings, appeared for sentencing. NAVA was sentenced to a term of:
Prison: 262 months
Special Assessment: $100
Supervised Release: 5 years
NAVA was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On September 16, 2009, law enforcement arranged a controlled drug purchase utilizing a Confidential Human Source (CHS). The transaction was set for Grass Range and the CHS made arrangements with Lisa Martinez to set up the deal. Martinez told the CHS that she would be bringing two subjects with her and identified the vehicle in which they would be traveling. Later that evening, the CHS met Lisa Martinez, Lawrence "Larry" Kopp and NAVA at a gas station in Grass Range. The CHS noted that s/he handed Martinez $4,400 for two ounces of methamphetamine and that Larry Kopp was driving and NAVA was in the front passenger seat. After the transaction was completed, a uniformed deputy in Mussellshell County stopped the vehicle for a traffic violation and positively identified all three subjects. Kopp, NAVA, and Martinez, acting in concert, distributed 43.2 grams of 49.4% methamphetamine or 21.3 grams of actual methamphetamine, a Schedule II controlled substance.
On September 28, 2009, the same CHS made telephonic contact with Martinez again for the purpose of purchasing one ounce of methamphetamine in Billings. The following day, on September 29, 2009, the CHS called Martinez again, and she told the CHS to come to her residence in Billings. After arriving at the location, the CHS made contact again with Martinez, Larry Kopp, and NAVA. On the body wire recording, NAVA and Larry Kopp could be heard weighing the methamphetamine out together, as they were having a disagreement as to how much was in an ounce. NAVA and Kopp were acting in concert and aided and abetted each other in weighing out the one ounce of methamphetamine that was to be distributed to the CHS. The CHS ended up purchasing 26.9 grams of 47.9% methamphetamine or 12.8 grams of actual methamphetamine, a Schedule II controlled substance, for $2,400 cash. After the CHS left, it was realized that a digital scale belonging to the Drug Task Force was left there.
On October 23, 2009, the CHS set up another methamphetamine purchase. The CHS agreed to meet CG, who resided with NAVA, Larry Kopp, and Lisa Martinez in Roundup. The CHS met with CG, who was driven to the meet by Joseph Lira with NAVA in the vehicle. The purchase consisted of two ounces of methamphetamine for $4,200. Lira was positively identified as the driver of the vehicle during an interview with CG. CG advised Lira knew the trip to Roundup was for a methamphetamine deal.
On November 12, 2009, the CHS spoke again with CG, and advised that s/he would be sending a friend of theirs to pick the drugs up in Billings. This "friend" was an undercover agent (UA). The UA made telephonic contact with CG on NAVA's cell phone and arranged to meet at a parking lot in Billings. CG called the UA and stated he was standing in front of the store, and the UA picked him up. After the three ounces of methamphetamine and $7,500 was exchanged, the UA dropped CG off around the corner at another business.
Surveillance units observed CG exit the business with NAVA and another person, and the three got into a pickup and left the area. The vehicle was followed and a traffic stop was conducted on it. All three subjects were detained and questioned, but all refused to cooperate. Most of the original buy money was recovered in NAVA's purse ($7,200), with the remaining $300 found in CG's purse.
On November 24, 2009, a search warrant was executed on NAVA's vehicle after it was impounded by the Billings Police Department. During a search of the vehicle, items of drug paraphernalia were located. Additionally, the digital scale that the FBI CHS left at NAVA's residence on the September 29 drug deal was located in the car.
Larry Kopp, Lisa Martinez, and Joseph Lira pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that NAVA will likely serve all of the time imposed by the court. In the federal system, NAVA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force and the Federal Bureau of Investigation.
Tahawwur Rana Sentenced to 14 Years in Prison for Supporting Pakistani Terror Group and Terror Plot in DenmarkRead the Press Release
A Pakistani native who operated a Chicago-based immigration business was sentenced today to 14 years in prison for conspiracy to provide material support to a terrorist plot in Denmark and providing material support to Lashkar e Tayyiba, a terrorist organization operating in Pakistan that was responsible for the November 2008 attacks in Mumbai, India. The defendant, Tahawwur Hussain Rana, was convicted of the charges on June 9, 2011, following a three-week trial in U.S. District Court in Chicago.
Rana, 52, a Canadian citizen, was ordered to serve 14 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. “This certainly was a dastardly plot,” Judge Leinenweber said in imposing the sentence.
Rana was convicted of conspiracy to provide material support to a plot from October 2008 to October 2009 to commit murder in Denmark, including a horrific plan to behead employees of Morgenavisen Jyllands-Posten, a Danish newspaper, and throw their heads on to the street in Copenhagen, as well as providing material support, from late 2005 to October 2009, to Lashkar, a militant jihadist organization operating in Pakistan. Lashkar planned and carried out the November 2008 attacks in Mumbai that killed more than 160 people, including six Americans, before initially planning the terrorist attack in Denmark in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. Rana was acquitted of conspiracy to provide material support to the Mumbai attacks.“This serious prison sentence should go a long way towards convincing would-be terrorists that they can’t hide behind the scenes, lend support to the violent aims of terrorist organizations, and escape detection and punishment,” said Gary S. Shapiro, Acting U.S. Attorney for the Northern District of Illinois.
“Today’s sentence demonstrates that, just as vigorously as we pursue terrorists and their organizations, we will also pursue those who facilitate their violent plots from a safe distance. As established at trial, Tahawwur Rana provided critical support to David Headley and other terrorists from his base in the United States, knowing they were plotting attacks overseas. I thank the many agents, analysts and prosecutors who helped bring about today’s result,” said Lisa Monaco, Assistant Attorney General for National Security.
“It is my hope that the judge’s decision today sends a message to those who plot attacks and those who provide the support to make the plots possible, both here and abroad, that you will be held accountable for your actions. Our mission, detecting and preventing terrorist acts and eliminating the enabling support provided by terrorist sympathizers, remains our top priority,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the FBI.
Rana is one of two defendants to be convicted, among a total of eight defendants who have been indicted, in this case since late 2009. Co-defendant David Coleman Headley, 52, pleaded guilty in March 2010 to 12 terrorism charges, including aiding and abetting the murders of the six Americans in Mumbai. Headley, who is scheduled to be sentenced next Thursday, has cooperated with the government since he was arrested in October 2009, and testified as a government witness at Rana’s trial. He is facing a maximum of life in prison
The evidence at Rana’s trial showed that he knew he was assisting a terrorist organization and murderers, knew their violent goals, and readily agreed to play an essential role in achieving their aims. The government contended that Rana knew the objective of his co-conspirators was to retaliate against and influence the Danish government for its perceived role in the publication of the Prophet Mohammed cartoons, and he knew that the goal of Lashkar was to retaliate against and influence the Indian and Danish governments and intended that the support he provided – enabling Headley’s activities – would be used toward that purpose.
In a post-arrest statement in October 2009, Rana admitted knowing that Lashkar was a terrorist organization and that Headley had attended training camps that Lashkar operated in Pakistan. Headley testified that he attended the training camps on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks three years later that killed more than 160 people and wounded hundreds more.
In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities. Headley testified that he traveled to Chicago and advised Rana, his long-time friend since the time they attended high school together in Pakistan, of his assignment to scout potential targets in India. Headley obtained approval from Rana, who owned First World Immigration Services in Chicago and elsewhere, to open a First World office in Mumbai as cover for his activities. Rana directed an individual associated with First World to prepare documents supporting Headley’s cover story, and advised Headley how to obtain a visa for travel to India, according to Headley’s testimony, as well as emails and other documents that corroborated his account.
Between Nov. 26-28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, some of which Headley had scouted in advance.Regarding the Denmark terror plot, Headley testified that in the fall of 2008, he met with a Lashkar member in Karachi, Pakistan, and was instructed to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus.
In late 2008 and early 2009, after reviewing with Rana how he had performed surveillance of the targets attacked in Mumbai, Headley testified that he advised Rana of the planned attack in Denmark and his intended travel there to conduct surveillance of the newspaper’s facilities. Headley obtained Rana’s approval and assistance to identify himself as a representative of First World and gain access to the newspaper’s offices by falsely expressing interest in placing advertising for First World in the newspaper. Headley and Rana caused business cards to be made that identified Headley as a representative of the Immigration Law Center, the business name of First World, according to the evidence at trial.
The trial evidence also included transcripts of recorded conversations, including those in September 2009, when Headley and Rana spoke about reports that a co-defendant, Ilyas Kashmiri, an alleged Pakistani terrorist leader, had been killed and the implications of his possible death for the plan to attack the newspaper. In other conversations, Rana told Headley that the attackers involved in the Mumbai attacks should receive Pakistan’s highest posthumous military honors. In the late summer of 2009, Rana and Headley agreed that funds that had been provided to Rana could be used to fund Headley’s work in Denmark, and the evidence showed that Rana, pretended to be Headley in sending an email to the Danish newspaper.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation has been conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from FBI offices in Los Angeles, New York and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.Tahawwur Rana Sentenced to 14 Years in Prison for Supporting Pakistani Terror Group and Terror Plot in DenmarkRead the Press Release
CHICAGO — A Pakistani native who operated a Chicago-based immigration business was sentenced today to 14 years in prison for conspiracy to provide material support to a terrorist plot in Denmark and providing material support to Lashkar e Tayyiba, a terrorist organization operating in Pakistan that was responsible for the November 2008 attacks in Mumbai, India. The defendant, TAHAWWUR HUSSAIN RANA, was convicted of the charges on June 9, 2011, following a three-week trial in U.S. District Court.
Rana, 52, a Canadian citizen, was ordered to serve 14 years, followed by five years of supervised release by U.S. District Judge Harry Leinenweber. “This certainly was a dastardly plot,” Judge Leinenweber said in imposing the sentence.
Rana was convicted of conspiracy to provide material support to a plot from October 2008 to October 2009 to commit murder in Denmark, including a horrific plan to behead employees of Morgenavisen Jyllands-Posten, a Danish newspaper, and throw their heads on to the street in Copenhagen, as well as providing material support, from late 2005 to October 2009, to Lashkar, a militant jihadist organization operating in Pakistan. Lashkar planned and carried out the November 2008 attacks in Mumbai that killed more than 160 people, including six Americans, before initially planning the terrorist attack in Denmark in retaliation for the newspaper’s publication of cartoons depicting the Prophet Mohammed. Rana was acquitted of conspiracy to provide material support to the Mumbai attacks.
“This serious prison sentence should go a long way towards convincing would-be terrorists that they can’t hide behind the scenes, lend support to the violent aims of terrorist organizations, and escape detection and punishment,” said Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois.
“Today’s sentence demonstrates that, just as vigorously as we pursue terrorists and their organizations, we will also pursue those who facilitate their violent plots from a safe distance. As established at trial, Tahawwur Rana provided critical support to David Headley and other terrorists from his base in the United States, knowing they were plotting attacks overseas. I thank the many agents, analysts and prosecutors who helped bring about today’s result,” said Lisa Monaco, Assistant Attorney General for National Security.
“It is my hope that the judge’s decision today sends a message to those who plot attacks and those who provide the support to make the plots possible, both here and abroad, that you will be held accountable for your actions. Our mission, detecting and preventing terrorist acts and eliminating the enabling support provided by terrorist sympathizers, remains our top priority,” said Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Rana is one of two defendants to be convicted, among a total of eight defendants who have been indicted, in this case since late 2009. Co-defendant David Coleman Headley, 52, pleaded guilty in March 2010 to 12 terrorism charges, including aiding and abetting the murders of the six Americans in Mumbai. Headley, who is scheduled to be sentenced next Thursday, has cooperated with the Government since he was arrested in October 2009, and testified as a Government witness at Rana’s trial. He is facing a maximum of life in prison.
The evidence at Rana’s trial showed that he knew he was assisting a terrorist organization and murderers, knew their violent goals, and readily agreed to play an essential role in achieving their aims. The government contended that Rana knew the objective of his co-conspirators was to retaliate against and influence the Danish government for its perceived role in the publication of the Prophet Mohammed cartoons, and he knew that the goal of Lashkar was to retaliate against and influence the Indian and Danish governments and intended that the support he provided – enabling Headley’s activities – would be used toward that purpose.
In a post-arrest statement in October 2009, Rana admitted knowing that Lashkar was a terrorist organization and that Headley had attended training camps that Lashkar operated in Pakistan. Headley testified that he attended the training camps on five separate occasions between 2002 and 2005. In late 2005, Headley received instructions from members of Lashkar to travel to India to conduct surveillance, which he did five times leading up to the Mumbai attacks three years later that killed more than 160 people and wounded hundreds more.
In the early summer of 2006, Headley and two Lashkar members discussed opening an immigration office in Mumbai as a cover for his surveillance activities. Headley testified that he traveled to Chicago and advised Rana, his long-time friend since the time they attended high school together in Pakistan, of his assignment to scout potential targets in India. Headley obtained approval from Rana, who owned First World Immigration Services in Chicago and elsewhere, to open a First World office in Mumbai as cover for his activities. Rana directed an individual associated with First World to prepare documents supporting Headley’s cover story, and advised Headley how to obtain a visa for travel to India, according to Headley’s testimony, as well as emails and other documents that corroborated his account.
Between Nov. 26-28, 2008, 10 attackers trained by Lashkar carried out multiple assaults with firearms, grenades and improvised explosive devices against multiple targets in Mumbai, some of which Headley had scouted in advance.
Regarding the Denmark terror plot, Headley testified that in the fall of 2008, he met with a Lashkar member in Karachi, Pakistan, and was instructed to conduct surveillance of the Jyllands-Posten newspaper offices in Copenhagen and Aarhus.
In late 2008 and early 2009, after reviewing with Rana how he had performed surveillance of the targets attacked in Mumbai, Headley testified that he advised Rana of the planned attack in Denmark and his intended travel there to conduct surveillance of the newspaper’s facilities. Headley obtained Rana’s approval and assistance to identify himself as a representative of First World and gain access to the newspaper’s offices by falsely expressing interest in placing advertising for First World in the newspaper. Headley and Rana caused business cards to be made that identified Headley as a representative of the Immigration Law Center, the business name of First World, according to the evidence at trial.
The trial evidence also included transcripts of recorded conversations, including those in September 2009, when Headley and Rana spoke about reports that a co-defendant, Ilyas Kashmiri, an alleged Pakistani terrorist leader, had been killed and the implications of his possible death for the plan to attack the newspaper. In other conversations, Rana told Headley that the attackers involved in the Mumbai attacks should receive Pakistan’s highest posthumous military honors. In the late summer of 2009, Rana and Headley agreed that funds that had been provided to Rana could be used to fund Headley’s work in Denmark, and the evidence showed that Rana, pretended to be Headley in sending an email to the Danish newspaper.
The government is being represented by Assistant U.S. Attorneys Daniel Collins and Sarah E. Streicker, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. Federal prosecutors in Los Angeles have worked on a broader investigation of the Mumbai attacks. The investigation has been conducted by the Chicago Joint Terrorism Task Force, led by the Chicago Office of the Federal Bureau of Investigation, with assistance from FBI offices in Los Angeles, New York and Washington, D.C., as well as both U.S. Customs and Border Protection and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
St. Paul Felon Indicted for Possessing .22-caliber Revolver, Ammunition, MethamphetamineRead the Press Release
MINNEAPOLIS—Recently in federal court, a 25-year-old St. Paul felon was indicted for possessing a .22-caliber revolver, ammunition, and methamphetamine. On January 15, 2013, Christopher Lee Rousseau was charged with one count of being an armed career criminal in possession of a firearm, one count of being an armed career criminal in possession of ammunition, one count of carrying a firearm in relation to a drug-trafficking crime, and one count of possession with intent to distribute methamphetamine.
The indictment alleges that on December 3, 2012, Rousseau possessed the revolver, two rounds of .22-caliber ammunition, and methamphetamine. Because he is a felon, Rousseau is prohibited under federal law from possessing a firearm or ammunition at any time. His prior convictions in Ramsey County include aiding and abetting second-degree burglary (2010) and fleeing police in a motor vehicle (2011). In addition, Rousseau was convicted in Pine County for fleeing police in a motor vehicle in 2007 and, in Dakota County, for third-degree burglary in 2010. Because these convictions constituted crimes of violence, Rousseau is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm and/or ammunition.According to a law enforcement affidavit filed in the current case, at approximately 12:30 a.m. on December 3, 2012, officers stopped Rousseau on a traffic violation near the intersection of U.S. Highway 61 and Warner Road. He was arrested for driving after cancellation of license. During a search of Rousseau’s person, police found the ammunition and $385. A search of the vehicle led to the recovery of the gun and the methamphetamine.
If convicted, Rousseau faces a potential maximum penalty of 20 years in prison on the methamphetamine possession count, and a mandatory minimum penalty of five years on the carrying a firearm count, as well as the 15-year mandatory minimum penalty on each of the two armed career criminal counts. All sentences will be determined by a federal district court judge.
This case is the result of an investigation by the St. Paul Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.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.
Spiro Baltatzidis, Former Founder and Chief Executive Officer of Starwich, Inc., Pleads Guilty in Manhattan Federal Court to Wire FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Keith Milke, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that SPIRO BALTATZIDIS, the former Founder and Chief Executive Officer of Starwich, Inc. (“Starwich”), pled guilty today in Manhattan federal court to a one-count Information charging him with wire fraud. BALTATZIDIS pled guilty before United States District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara stated: “Spiro Baltatzidis engaged in an elaborate charade to dupe a financial institution into lending him many millions of dollars – creating fraudulent bank statements, and doctoring emails. Fortunately, the financial institution did not ultimately lend him the $25 million he was seeking, his charade was discovered, and he has acknowledged his guilt.”
USPIS Inspector-in-Charge Keith Milke said: “Mr. Baltatzidis’ attempt to defraud investors is a classic case of greed overcoming honest business practices. Postal Inspectors are steadfast in investigating and stamping out fraud, keeping the US Mail and all modes of communication safe and secure for the American public.”
According to the Information and statements made in today’s plea proceeding:
Starwich was a privately held corporation headquartered in New York that engaged in the food services business, and more specifically, the upscale specialty sandwich business. Starwich operated a micro-chain of restaurants located around Manhattan and maintained multiple corporate bank accounts (collectively, the “Starwich Bank Accounts”) at Citibank, N.A. (“Citibank”) into which investor funds were deposited.
From the summer of 2007 through May 2008, BALTATZIDIS solicited a $25 million investment from a financial institution (the “Victim Financial Institution”). BALTATZIDIS represented that the purpose of the investment was to expand the business operations of Starwich. In connection with the investment solicitation, the Victim Financial Institution conducted due diligence to determine whether Starwich was a prudent investment opportunity. This due diligence included, among other things, a review of Starwich’s financials. Accordingly, at the Victim Financial Institution’s request, on September 16, 2007, it received a fax from Starwich containing Citibank statements for one of the Starwich Bank Accounts. The first statement purported to cover the period December 1, 2006 through December 31, 2006, and reflected an ending balance of approximately $450,000. Another statement for the same account purported to cover the period June 1, 2007 through June 30, 2007, reflected an ending balance of approximately $1.2 million – an increase in the ending balance of well over 100% in the six-month period between December 2006 and June 2007.
Based in part on the fake bank statement that showed a balance of approximately $1.2 million in the account as of June 30, 2007, the Victim Financial Institution entered into a Memorandum of Terms (“the Memorandum”) with Starwich on November 2007. The Memorandum detailed the principal terms of a proposed $25 million investment in shares of Starwich to be divided into three stages of disbursements – $5 million, $10 million, and $10 million, respectively – provided that Starwich met certain conditions. However, the bank statements provided to the Victim Financial Institution were in fact fake. The actual bank account records from Citibank showed a balance of approximately $400 as of December 31, 2006, and approximately $200 as of June 30, 2007.
In furtherance of its due diligence, the Victim Financial Institution requested a further update of Starwich’s financials and in response to this request, BALTATZIDIS forwarded an email chain between BALTATZIDIS and an employee of Citibank (the “Bank Employee”) on November 15, 2007. The content of the email chain forwarded to the Victim Financial Institution (the “Victim Financial Institution Email”) reflected that BALTATZIDIS asked the Bank Employee for the balance of one of the Starwich accounts for the period ending September 30, 2007, and the Bank Employee purportedly responded that the account’s current balance was approximately $1.3 million.
In fact, the email chain forwarded by BALTATZIDIS to the Victim Financial Institution on November 15, 2007, was materially altered from its original version (the “Authentic Citibank Email”). Specifically, in the Authentic Citibank Email, the Bank Employee wrote that the account’s current balance was “-$3,963.93,” whereas the Victim Financial Institution Email reflected a balance of “$1,317,963.93.” In addition, the Authentic Citibank Email included a copy of the account statement for the period ending September 30, 2007, whereas the Victim Financial Institution Email omitted the account statement.
From November 15, 2007 through May 2008, BALTATZIDIS and the Victim Financial Institution continued their discussions regarding the solicited financial investment in Starwich. By May 2008, however, the Victim Financial Institution decided against investing with Starwich and ended its discussions with BALTATZIDIS. In August 2008, Starwich filed for bankruptcy.
BALTATZIDIS, 37, faces a maximum prison term of 20 years and a maximum fine of the greater of $250,000 or twice the gross pecuniary gain or loss resulting from the crime. He is scheduled to be sentenced by Judge Abrams on April 23, 2013, at 3:00 p.m.
Mr. Bharara praised the investigative work of the United States Postal Inspection Service.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Julian J. Moore is in charge of the prosecution.
U.S. v. Spiro Baltatzidis Information
Seven Arrested, Charged with $22 Million Detroit-area<br /> Home Health Care Fraud SchemeRead the Press Release
Six Detroit-area residents and one Chicago-area resident were arrested today by federal agents on charges arising from the ongoing investigation into an alleged $22 million home health care fraud scheme. The indictment was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; Special Agent in Charge Lamont Pugh III of the Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office; and Special Agent in Charge Erick Martinez of the Internal Revenue Service Criminal Investigation (IRS-CI) Detroit Field Office.
According to the 18-count indictment returned Jan. 15, 2013, and unsealed today, the seven individuals allegedly participated in a Medicare fraud scheme operating out of four Oakland County, Mich., home health agencies claiming to provide in-home health services: Royal Home Health Care Inc., Prestige Home Health Services Inc., Platinum Home Health Services Inc. and Empirical Home Health Care Inc. The indictment alleges Medicare paid the agencies approximately $22 million for fraudulently reported services since August 2008.
In addition to the arrests, law enforcement agents suspended Medicare payments to four health care companies associated with the alleged scheme.Muhammad Aamir, 42; Usman Butt, 39; Hemal Bhagat, 31; Syed Shah, 50; Tariq Tahir, 46; and Raquel Ellington, 56, of the Detroit area; and Tayyab Aziz, 43, from the Chicago area, each are charged with conspiracy to commit health care fraud. All but Aziz are also charged with health care fraud and with conspiracy to violate the Anti-Kickback Statute. Butt, Bhagat, Shah and Aziz are additionally charged with conspiracy to commit money laundering.
According to the indictment, Aamir and Butt owned and operated Prestige; Butt, Bhagat and Shah owned and operated Royal; and Aamir owned and operated Platinum and Empirical – all of which allegedly claimed to provide home health therapy services to Medicare beneficiaries that were unnecessary and/or were never performed. The indictment alleges Tahir and Ellington recruited Medicare beneficiaries, paying them kickbacks for their Medicare information and signatures on documents that detailed physical therapy and/or skilled nursing services that were either never rendered or not medically necessary. Aamir, Butt, Bhagat, Shah, Tahir and Ellington are also charged with conspiring to pay kickbacks to Tahir and Ellington for their recruiting work. Butt, Bhagat, Shah and Aziz allegedly conspired to launder the proceeds of the scheme.
The charges of health care fraud conspiracy and health care fraud each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison and a $25,000 fine. The charge of conspiracy to commit money laundering carries a maximum potential penalty of 20 years in prison and a $500,000 fine.
An indictment is merely a charge and defendants are presumed innocent unless nad until proven guilty.The case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section. The investigation is conducted jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, and IRS-CI, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Related Materials:
Aamir, Muhammed et al. (Prestige) Indictment
Sentences for January 11 - 14, 2013Read the Press Release
Ponciano Lucero-Acuna, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Lucero-Acuna was arrested in Natrona County, Wyoming. He received six months of imprisonment, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Roberto Garcia-Martinez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Martinez was arrested in Laramie County, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Robert Michael Sides, 39, of West Valley City, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for possession of 91.8 grams of methamphetamine with intent to distribute, and aiding and abetting. Sides was arrested in Uinta County, Wyoming. He received 120 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Mark Hostetler, 38, of Ohio, was sentenced Chief Federal District Court Judge Nancy D. Freudental on January 14, 2013, for being a felon in possession of a firearm. Hostetler came into custody via a Writ. He received 33 months of imprisonment, concurrent with a state sentence, and will serve three years of supervised release after serving his prison term. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ivan Arellano-Cruz, aka Manuel Covarrubias-Cervantes, 33, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 14, 2013, for illegal re-entry of a previously deported alien into the United States. Arellano-Cruz was arrested in Casper, Wyoming. He was sentenced to time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Justin Eberhardt, 21, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for attempted interference with interstate commerce by means of robbery and aiding and abetting and for use of a firearm during and in relation to a crime of violence and aiding and abetting. Eberhardt was arrested in Casper, Wyoming. He received 27 months imprisonment as to Count 1, to be followed by a mandatory 120 months imprisonment, to be served consecutive to Count 1. The Court also ordered the defendant to pay a $200.00 special assessment and a $300.00 fine. Upon release from imprisonment the defendant will serve a five-year term of supervised release, per count, concurrently. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Timothy Adam Baum, 50, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for possession of child pornography. Baum was arrested in Sheridan, Wyoming. He received 200 months of imprisonment to be followed by a life-term of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.Jose Ramon Troches-Caballero, 35, of Honduras, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 11, 2013, for illegal re-entry of a previously deported alien into the United States. Troches-Cabellero was arrested in Casper, Wyoming. He received time served, plus ten days, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scottdale Man Pleads Guilty in Crack Cocaine Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Scottdale, Pa., pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Jeremy Alan Gray, 22, pleaded guilty to one count before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that from Aug. 25, 2012, and continuing thereafter to Aug. 27, 2012, Gray conspired with others to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance.
Judge Cohill scheduled sentencing for Thursday May 16, 2013 at 11:3 a.m. The law provides for a total sentence of forty (40) years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Gray on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI) conducted the investigation that led to the prosecution of Gray.
Sanjoy Bhattacharya Charged with False Statements to an Agency of the United StatesRead the Press Release
SANJOY BHATTACHARYA, age 56, a resident of New Orleans, Louisiana, was charged in a one-count indictment filed today for false statements to an agency of the United States, announced U. S. Attorney Dana J. Boente.
According to the Bill of Information, prior to and during the time of Hurricane Katrina, BHATTACHARYA resided on Tyler Drive in Slidell, Louisiana. On or about September 21, 2007, BHATTACHARYA applied for funds from the Louisiana Road Home Program claiming his primary residence at the time of the storm was on Joseph Street in New Orleans, a property he knew was leased to and inhabited by his tenants at time of the storm. As a result of the false statements in his application, BHATTACHARYA fraudulently received approximately $84,423 from the United States Department of Housing and Urban Development (“HUD”), an agency and department of the United States.
If convicted, BHATTACHARYA faces a maximum term of imprisonment of five (5) years, a $250,0000 fine, restitution to the HUD, three (3) years of supervised release following any term of imprisonment, and a $100 special assessment.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U. S. Attorney Julia K. Evans.
(Download Indictment )
Rickey Groves Sentenced to More Than 118 Years in Prison for Carjacking, Armed Robbery SpreeRead the Press Release
Memphis, TN – Rickey Groves, a/k/a Rickey Hughes, 29, of Memphis, Tennessee, was sentenced today to 1424 months in federal prison by U.S. District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III.
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In April and May of 2008, Groves carjacked at least two individuals and robbed at least four restaurants at gunpoint near Southeast Memphis. The robbery spree included the McDonalds located at 3377 Winchester Road; the McDonalds located at 1755 Getwell Road; the Popeye’s located at 4720 Showcase Boulevard; and The Kettle located at 4139 Winchester Road.
On August 15, 2011, Groves was convicted by a jury of carjacking and possession of a firearm during and in relation to a crime of violence. He was also convicted by a jury on October 30, 2012 of four counts of robbery of a business engaged in interstate commerce and four counts of using a firearm during each robbery. There is no parole in the federal system.
“This sentence is the product of a true collaborative effort between federal and local law enforcement,” said U.S. Attorney Stanton. “Rickey Groves had a criminal history marked by violent acts perpetrated against innocent citizens across Memphis. His conviction under federal statutes which promise no opportunity for parole, coupled with today’s stiff sentence, sends a message to anyone who chooses to use a firearm to commit unlawful acts that you will be brought to justice and be held accountable to the fullest extent of the law.”
The investigation was conducted by the Safe Streets Task Force, specifically by the Memphis Police Department and the FBI. This case was prosecuted by First Assistant U.S. Attorney Michelle Kimbril-Parks.Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
A Des Moines, Washington, man was sentenced this afternoon in U.S. District Court in Seattle to ten years in prison for possession of child pornography, announced U.S. Attorney Jenny A. Durkan. GREGORY SEAN O’NEALL, 51, a convicted sex offender originally from Houston, Texas, was arrested in June 2012. He pleaded guilty in September 2012. Chief U.S. District Judge Marsha J. Pechman also sentenced O’NEALL to lifetime supervised release including sex offender treatment and the use of special software to monitor his computer.
According to records in the case, O’NEALL came to the attention of the Internet Crimes Against Children Task Force because of his postings on an online file sharing site. A Homeland Security Investigation agent working undercover on the site observed sexually explicit images of children being distributed from the internet protocol address at O’NEALL’s residence. The agent engaged O’NEALL in an online chat. O’NEALL discussed various photographs. Further investigation revealed that O’NEALL had posted other pictures in albums on a web site. More than 100 of the photos had been surreptitiously taken of young girls shopping with their families at retail stores. The ‘up-skirt’ photos focused on the underwear area of the young girls, but were not child pornography. Prior to his arrest O’NEALL worked for a contractor providing food samples at a Costco store in Federal Way, Washington. Some of the pictures appear to have been taken at that store.
O’NEALL has a prior sex offense conviction for molesting a 6-year-old girl who was left in his care. On December 2, 1991, he was convicted in Fort Worth, Texas, for Indecency with a Child (Contact), and sentenced to 7 years of probation.
In asking for a 135 month sentence prosecutors wrote to the court, “A substantial period of imprisonment is the only effective means to protect our community from the defendant, and it is also a fitting and just sanction for the harm he has caused.”
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.projectsafechildhood.gov.
The case was investigated by ICE’s Homeland Security Investigations (HSI) as part of the Internet Crimes Against Children Task Force (ICAC).
The case was prosecuted by Assistant United States Attorney Jerrod Patterson, who coordinates Project Safe Childhood for the U.S. Attorney’s Office.
Rafael Antonio Murillo Indicted on Illegal Re-entry ChargeRead the Press Release
RAFAEL ANTONIO MURILLO, age 41, a citizen of El Salvador, was charged today in a one-count indictment by a Federal Grand Jury for illegal re-entry by an alien previously removed, announced U. S. Attorney Dana J. Boente.
According to court documents, on or about December 19, 2012, MURILLO, an alien who had previously been removed from the United States, was found in the United States, in Jefferson Parish within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, MURILLO, who was convicted of a felony prior to his previous removal, faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and three (3) years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case was investigated by U. S. Immigration and Customs Enforcement (ICE) - Enforcement and Removal Operations with the assistance of the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Indictment )
Queen City Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
CONCORD, NH - Neville Padmore, 30, of Manchester, was sentenced in United States District Court for the District of New Hampshire to forty-eight months in prison and three years of supervised release for possessing controlled substances with the intent to distribute them, announced United States Attorney John P. Kacavas.
On February 2, 2012, the Manchester Police Department found distribution quantities of oxycodone and marijuana in Padmore’s possession when they executed a warrant to search Padmore’s Manchester apartment.
This matter was investigated by the Manchester Police Department and was prosecuted by Assistant U.S. Attorney Bill Morse.
Prior Felon Sentenced to 70 Months in Prison for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Anthony Chavez, 30, of Albuquerque, N.M., was sentenced this morning to 70 months in prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chavez was indicted in Aug. 2011, and was charged with unlawfully possessing a semiautomatic pistol and ammunition in Bernalillo County, N.M., on April 14, 2011. At the time, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of (1) intentional child abuse and larceny, and (2) cocaine trafficking, in the Second Judicial District Court for the State of New Mexico.
Chavez was arrested on Sept. 21, 2011, and has been in federal custody since that time. On April 11, 2012, Chavez pled guilty to the indictment. As part of his plea agreement, Chavez was required to forfeit the firearm and ammunition that were in his possession on April 14, 2011.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Albuquerque Police Department, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Ottumwa Man Is Sentenced to 87 Months Imprisonment for Fraudulent Investment SchemeRead the Press Release
DES MOINES, IA – United States District Court Judge John Jarvey sentenced John Francis Holtsinger, age 52, of Ottumwa, Iowa, to 87 months imprisonment on wire fraud and tax evasion charges, announced U.S. Attorney Klinefeldt. Judge Jarvey also ordered the federal sentence to be served consecutive to a five-year sentence Holtsinger recently received on unrelated state charges. Holtsinger also was ordered to pay $948,239.67 in restitution to the victims of his offense, and will have to serve 60 months of supervised release following the completion of his prison term.
In an earlier hearing, Holtsinger admitted to soliciting and receiving more than $1.1 million from investors in the State of Iowa between 2005 and 2012. He represented to the investors that he would put their money into investment accounts; however, he actually used most of it for personal expenses or to pay back investors whose money he had misappropriated earlier.Holtsinger admitted that he ended up exhausting all the funds he received from investors. He then attempted to conceal his fraud by falsely informing the investors that their funds had been frozen as a result of actions taken by state or federal authorities. In reality, the funds were gone.
Holtsinger also admitted during the earlier hearing to attempting to convince investors to lie to law enforcement officers regarding the purpose of the funds they had given him. He instructed them to describe their payments to him as “interest free loans,” when in reality they were investments. Holtsinger also threatened that anyone who cooperated with law enforcement officers would not be repaid.
U.S. Attorney Nicholas A. Klinefeldt said the sentence reflects the seriousness of the offense and should have a deterrent effect on others. “These victims thought they were investing their money in a safe place,” he said. “In reality, it was nothing more than a Ponzi scheme. I am pleased that Holtsinger will have to spend more than seven years in jail as punishment for defrauding people who considered him to be a friend, and I hope his sentence will convince anyone else who might be tempted to engage in similar conduct not to do so.”
The case was investigated by the United States Secret Service, Internal Revenue Service, and Iowa Attorney General’s Office, and was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Odessa Physician Enters Guilty Plea in Connection with A Methamphetamine Distribution and Fraudulent Prescription SchemeRead the Press Release
In Midland, 59–year-old Odessa physician Barrett Doyle Whitefield, faces a mandatory minimum ten-year federal prison term after pleading guilty this morning to conspiring to possess with intent to distribute and distribute controlled substances, announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
By pleading guilty, Whitefield admitted that from late 2011, to July 19, 2012, when Drug Enforcement Administration agents and Midland Police Department Narcotics Detectives executed a search warrant at his medical office in Odessa, he wrote prescriptions for hydrocodone to numerous individuals upon request, without examining them, and on some occasions for individuals whom he never saw as patients. Whitefield further admitted that he was aware his co-defendants were selling the hydrocodone pills to other individuals in the Midland/Odessa area. Additionally, Whitefield admitted that he delivered a package of methamphetamine to an individual in Lamesa, TX, at the direction of his co-defendants.
Also this morning, Whitefield’s codefendants, Christina Rene Barfield, Megan Lynn Maner, and Cynthia Marie Constanzo, pleaded guilty to the conspiracy charge. By pleading guilty, Barfield admitted to directing co-defendants to sell hydrocodone and methamphetamine; Maner and Constanzo, to distributing hydrocodone and methamphetamine. Yesterday, co-defendant Cody Wayne Hearn entered a guilty plea to the conspiracy charge and admitted that he filled fraudulent hydrocodone and Xanax prescriptions written by Whitefield and distributed methamphetamine at the direction of Barfield. After pleading guilty, Barfield, Maner, Constanzo and Hearn each face a mandatory minimum of ten years in federal prison. No sentencing dates have been scheduled.
Jury selection for the three remaining co-defendants, Robert Michael Handlon, Matthew Christian Woodside, and Amanda Leigh Glenn, is scheduled for 8:30am on February 11, 2013. All face the same conspiracy to possess with intent to distribute and distribute controlled substances charge.
The case was investigated by the Drug Enforcement Administration and the Midland Police Department. Assistant United States Attorney Brandi Young is prosecuting the case on behalf of the Government.North Wales Man Sentenced for Illegally Exporting GoodsRead the Press Release
PHILADELPHIA - Timothy Gormley, 52, of North Wales, PA, was sentenced today to 42 months in prison for five counts of violating the International Emergency Economic Powers Act (IEEPA). Gormley was employed by Amplifier Research, in Souderton, Pennsylvania, a manufacturer and supplier of microwave amplifiers with both domestic and foreign customers. On November 30, 2011, the Department of Commerce (DOC), Office of Export Enforcement, received a voluntary self-disclosure from Amplifier Research. Many of their products are classified under an Export Control Classification Number and require a license for export to most destinations outside of Europe. These amplifiers are controlled for National Security reasons, and have application in military systems which include radar jamming, weapons guidance systems, and other uses. Amplifier Research became aware that Gormley had committed numerous violations of government regulations, between June 7, 2006 and June 28, 2011.
Gormley pleaded guilty on October 17, 2012, admitting that he had: altered invoices and shipping documents to conceal the correct classification of amplifiers to be exported so that they would be shipped without the required licenses; listed false license numbers on export paperwork for defense article shipments; and lied to fellow employees about the status and existence of export licenses. Gormley's actions resulted in at least 50 unlicensed exports of national security sensitive items to destinations including China, India, Hong Kong, Taiwan, Thailand, Russia, Mexico, and other countries. When Gormley admitted to the conduct, he explained it by saying he was "too busy" to obtain the licenses. Gormley claimed he was overwhelmed at work and that was his only excuse.
In handing down her sentence, U.S. District Court Judge Gene E.K. Pratter cited the risk to the community in allowing National Security goods to be exported without proper licenses and the need for deterrence. In addition to the prison term, Judge Pratter ordered three years of supervised release and fined Gormley $1,000.
The case was investigated by the Department of Commerce and was prosecuted by Assistant United States Attorney Nancy Winter.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525North Tonawanda Man Sentenced in Pharmacy BurglaryRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Timothy J. Lichtenburger, 30, of North Tonawanda, N.Y., who was convicted of burglarizing a pharmacy and possession with intent to distribute the various controlled substances taken in the burglary, was sentenced to 70 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on May 15, 2011, the defendant broke into the Rite Aid Pharmacy at 1381 Nash Road, in the City of Tonawanda, on two separate occasions and stole in excess of $26,000 worth of various Schedule II, III and IV controlled substances. Lichtenburger then distributed the narcotic prescription pain pills between the date of the burglary and his arrest on May 21, 2011. The defendant was also ordered to pay restitution to Rite Aid in the amount of $27,197.37.
The sentencing is the culmination of an investigation on the part of the North Tonawanda Police Department Detective Bureau, under the direction of Police Chief Randy Szukala, and Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
North Suburban Man Sentenced to 10 Years in Prison for $4 Million Fraud of 50 Investors in Sleep Disorder BusinessesRead the Press Release
CHICAGO — A north suburban man with a history of multiple bankruptcies, financial schemes and civil lawsuits that twice resulted in contempt findings, was sentenced today to 10 years in federal prison for fraudulently obtaining more than $4 million from 51 investors in a now-defunct sleep disorder businesses that he operated in Northbrook. The defendant, KENNTH A. DACHMAN, pleaded guilty without a plea agreement last October to 11 counts of wire fraud. The government established that Dachman misappropriated at least $2 million of comingled funds from investors and the companies to benefit himself and his family.
Dachman, 52, of Glencoe and formerly of Lake Forest, was ordered to pay both restitution and forfeiture totaling just over $4 million each by U.S. District Judge James Zagel, who set a hearing for Jan. 30 to decide when Dachman will begin serving his sentence. Judge Zagel also placed Dachman on three years of supervised release following his sentence.
“His business was not sleep apnea but putting money in his pocket,” Judge Zagel said in imposing the sentence. Three investors spoke at the sentencing hearing and told the judge that Dachman’s crimes had seriously affected their lives and retirement security. The sentence was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Dachman operated Central Sleep Diagnostics, LLC, which purported to treat sleep apnea and sleep-related illnesses by conducting diagnostic studies in a patient’s own home instead of a hospital or clinic, and Advanced Sleep Devices, LLC, which purported to sell equipment used to treat sleep disorders to patients. He also operated Key Partners, LLC, to handle marketing for both businesses.
Between June 2008 and September 2010, Dachman fraudulently obtained funds from investors by misrepresenting the use of the funds, the expected return on and risks involved in investments, his business background, the financial condition of Central Sleep and Advanced Sleep and the status of investments. Instead of using the funds to operate the businesses as he promised, Dachman used a significant amount of the investors’ funds to purchase a two-acre mansion in Lake Forest, to operate a tattoo parlor in Chicago that was co-owned by his son-inlaw, to purchase vacations and cruises for himself and his family to Italy, Nevada, Florida and Alaska, to purchase a new sport utility vehicle, to fund personal gambling in Las Vegas and stock trading, and to purchase rare books and antiques.
According to the indictment, Dachman and an individual he retained as director of investor relations offered and sold at least three forms of investments in Central Sleep and Advanced Sleep to the public: an “Assignment of Units” agreement which gave investors units or shares in Central Sleep or Advanced Sleep; a “Convertible Debt Agreement” in which Dachman personally guaranteed he would repay investors’ principal, as well as monthly payments equal to between 5 and 24 percent annually; and an agreement which enabled investors to purchase various sleep-related equipment and lease it back to Central Sleep Diagnostics. Dachman told prospective investors and investors that the funds he raised would be used to purchase sleep-related equipment, to rent office space, to set up the companies’ offices, to hire and pay administrative personnel, and to retain and pay physicians to review sleep diagnostic studies.
From July 2008 through January 2009, Dachman falsely represented to the first 15 investors in Central Sleep that their combined funds of approximately $1.4 million would be used to open and operate Central Sleep. In fact, he intended to and did use almost $1 million of these funds for his own use and benefit, including more than $200,000 for personal stock trading, more than $180,000 to operate the tattoo parlor, Windy City Ink, and more than $160,000 to fund checks made payable to himself and his wife, even though at the time, Central Sleep had not received any income from the operation of its business.
Dachman personally guaranteed to repay certain investors’ principal without disclosing that he had almost no assets to fund the guarantees and that he had declared personal bankruptcy on seven prior occasions. Dachman falsely told victims that he had a PhD from Northwestern University, and that he had invested his own funds in Central Sleep, knowing that he had not done so. To induce additional investments as late as March 2010, Dachman represented to investors that Central Sleep was a successful company and was “on pace to be the most important and largest sleep diagnostic firm in the world,” despite knowing that he was draining the financially-troubled business of previous investor funds.
The government is being represented by Assistant U.S. Attorney Sunil Harjani. The U.S. Securities and Exchange Commission assisted the investigation conducted by the FBI.
The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.
Member of Multi-State Pharmaceutical Theft Scheme Admits Possession and Sale of Stolen GoodsRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in conspiring to possess a stolen interstate shipment of prescription respiratory medicine manufactured by a subsidiary of Mylan Inc., that was stolen while on route by tractor-trailer from Texas to a customer in Florida, U.S. Attorney Paul J. Fishman announced.
Reynaldo Tapanes, 46, of Miami, Fla., pleaded guilty before U.S. District Judge William J. Martini to an Information charging him with conspiring to possess the stolen prescription medicine, as well as an additional count of conspiracy to receive and sell stolen L’Oreal hair care products.
On May 3, 2012, Tapanes was charged in a Complaint with conspiracy to deal in stolen goods with Ernesto Romero-Vidal, a/k/a “Bemba,” of Hallandale, Fla.; Rocke R. Lopez-Batista, a/k/a “El Nino;” and Ariel Garcia, of Coral Gables, Fla. Tapanes and Romero-Vidal were charged with conspiracy to receive and sell the stolen L’Oreal hair care products, and Tapanes, Lopez-Batista, and Garcia were charged with conspiracy to possess the stolen Mylan pharmaceuticals. Romero-Vidal and Lopez-Batista were also charged with conspiracy to receive and sell stolen Sandoz prescription respiratory medicine.
Eight other defendants were also charged on May 3, 2012, in two separate Complaints, as part of the same long-term investigation by the FBI into illegal trafficking of pharmaceuticals and other stolen goods.
According to documents filed in this case and statements made in court:
On Sept. 8, 2009, a tractor-trailer containing pharmaceutical products manufactured by a subsidiary of Mylan Inc., was stolen in Tampa. Mylan has estimated the value of the stolen pharmaceuticals – which included Ipratropium Bromide Inhalation and Albuterol Sulfate Inhalation Solutions – to have a wholesale acquisition cost (WAC) of approximately $264,000.
Tapanes admitted that from September 2009 through October 2009, he conspired with others to possess the stolen prescription respiratory medicine. On Oct. 20, 2009, Tapanes and a conspirator delivered samples of the stolen prescription medicine to a confidential source in Elizabeth, N.J. Nine days later, Tapanes and a conspirator delivered a tractor-trailer containing the stolen prescription respiratory medicine to the confidential source. Tapanes admitted that he received a payment. Later that same day of $140,000 in cash at the home of one of the conspirators in payment for the sale and delivery of the stolen prescription respiratory medicine.
Tapanes admitted he conspired with others to receive and sell the stolen L’Oreal hair care products. On Oct. 21, 2009, Tapanes and a conspirator delivered the stolen L’Oreal hair care products to a warehouse in Newark. The products had been shipped from Ohio and were destined for a customer in Florida when they were stolen in Florida in August 2008. L’Oreal has estimated the value of the stolen hair care products – which included shampoo, mousse, and hair color gels – to have a WAC of approximately $330,000. Tapanes also admitted that he and a conspirator received approximately $40,000 in cash from a confidential source in a Toys-R-Us parking lot in North Bergen, N.J., for the sale and delivery of the stolen goods.
The charges against the other defendants remain pending. These charges are merely accusations, and all defendants are considered innocent unless and until proven guilty.On both of the conspiracy counts, Tapanes faces a maximum potential penalty of five years in prison and a fine of $250,000 on each count. Sentencing is scheduled for April 25, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and detectives of the North Bergen Police Department, under the direction of Chief Robert J. Dowd, for the investigation leading to today’s guilty plea.
The government is represented by Special Litigation Counsel Leslie Faye Schwartz and Assistant U.S. Attorney Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.
13-032Defense Counsel: John C. Whipple Esq., Chatham, N.J.
Tapanes, Reynaldo Information
Maxton Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced ALEX MICHAEL LOCKLEAR, 61, of Maxton, North Carolina, to 300 months imprisonment followed by 5 years supervised release.
On October 4, 2012, LOCKLEAR pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base (crack), in violation of Title 21, United States Code, Section 841(a)(1) and all in violation of Title 21, United States Code Section 846.
The evidence presented at the sentencing hearing revealed that LOCKLEAR was a significant trafficker of cocaine who from at least 2005 until the time of his arrest on August 3, 2012, was responsible for the distribution of over 185 kilograms of cocaine.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.
Maryland Man Sentenced to More Than Eight Years in Prison for Distribution of Child PornographyRead the Press Release
WASHINGTON - Tonio Calhoun, 31, of Bowie, Md., was sentenced today to 100 months in prison for distribution of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Calhoun pled guilty to the charge in October 2012 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Calhoun will be placed on 10 years of supervised release. He also must register as a sex offender for 25 years.
According to the government’s evidence, in April 2012 an undercover officer with the FBI's Child Exploitation Task Force entered a social network site. Between April 30, 2012, and June 13, 2012, the undercover officer and defendant communicated by e-mail and text message. During this time, Calhoun sent the officer two images of child pornography and expressed interest in getting together for the purpose of photographing young girls in public. On June 13, 2012, Calhoun traveled to a previously arranged meeting place where he was arrested.
Following the arrest, law enforcement reviewed the defendant’s cellphone, laptop computer and mail accounts and identified more than 80 videos of child pornography and more than 300 other images of child pornography.
This case was investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is 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 U.S. 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 those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Acting Assistant Director in Charge Smith and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Julieanne Himelstein, who provided assistance in the case, and Assistant U.S. Attorneys Cassidy Kesler Pinegar and Amy Zubrensky, who prosecuted the matter.
13-014Manhattan U.S. Attorney Charges Yonkers Pharmacy Store Manager with Illegal Distribution of OxycodoneRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian R. Crowell, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), announced the arrest today of JI YUN LEE for conspiring to distribute oxycodone and for distribution of oxycodone at a pharmacy (the “Pharmacy”) in Yonkers, New York. LEE will be presented later today before U.S. Magistrate Judge Kevin N. Fox.
Manhattan U.S. Attorney Preet Bharara said: “Our society is in the throes of its own ‘opiates war’ and some pharmacies are serving more as pass-through ‘opiate dens’ than as legitimate professional dispensers of dangerous drugs. As alleged, Ji Yun Lee exploited his access to highly addictive pain medication and functioned as a ‘go-to’ prescription pill dispenser for those who were willing to pay his inflated prices. The number of people who die from prescription pill abuse ever year is staggering and bears repeating – almost 16,500 – which is more than illegal street drugs like heroin and cocaine combined. We are bound and determined to thwart those who facilitate the spread of this epidemic and to ensure that they are prosecuted for their crimes.”
Special Agent-in-Charge Brian R. Crowell said: “The perception that illegal prescription drug abuse is a safer high than street drugs, has spread like wildfire through our communities. According to the Drug Abuse Warning Network (DAWN), visits to hospital emergency rooms involving the misuse or abuse of pharmaceutical drugs have doubled over the past five years and there were more visits from pharmaceutical drug overdoses than all other illicit drugs combined. Over 7 million Americans reported using prescription medication for non-medical purposes and the rate is steadily rising each year as opiate abusers find new methods of obtaining diverted medication. As alleged, Ji Yun Lee took advantage of his position to allegedly accept and fill fraudulent prescriptions in exchange for money, just like a street dealer who puts lives at risk throughout our community. The investigations of medical professionals who choose the path to intentionally fuel this deadly threat to our society, just like traditional heroin traffickers, are one of our highest investigative priorities.”
The following allegations are based on the Complaint unsealed today in Manhattan Federal Court:
From 2011 to January 2013, LEE served as the store manager at the Pharmacy in Yonkers, New York, but was not a licensed pharmacist or physician in the State of New York. The investigation revealed that LEE was distributing large amounts of oxycodone by filling prescriptions for several individuals that he knew were fraudulently issued without a legitimate medical purpose. A confidential informant (“CI-1”) told law enforcement that LEE filled multiple fraudulent oxycodone prescriptions for CI-1 each month beginning in early 2011, prior to the time that CI-1 began working with law enforcement. LEE never requested identification prior to filling the fraudulent prescriptions. When CI-1 presented the fraudulent prescriptions, CI-1 would initially provide them to an employee of the Pharmacy, who would in turn provide them to LEE who would then approach CI-1, tell CI-1 when the oxycodone would be ready and what the price would be. LEE typically charged $1,075 for 180 30-milligram oxycodone pills.
When presented with a prescription from CI-1, LEE would enter information from the fraudulent prescription into a computer, return the prescription to CI-1, and provide a time that the oxycodone would be ready. Legitimate pharmacies retain prescriptions at the time they are initially presented for their records and for reporting requirements. According to CI-1, LEE engaged in this unusual practice to avoid a situation whereby other co-conspirators – who sometimes knew when fraudulent prescriptions were brought to the Pharmacy by others, and knew the fake names on those prescriptions – would visit the Pharmacy before the person who had dropped off the prescription and, without that person’s knowledge or permission, pick up the oxycodone.
A second confidential informant (“CI-2”) also knew that fraudulent oxycodone prescriptions were filled at the pharmacy. Together, CI-1 and CI-2, working with law enforcement, presented multiple fraudulent oxycodone prescriptions to LEE from September 2012 to January 2013, which LEE filled and the confidential informants paid for in cash. On at least two occasions, the names on the prescriptions provided to LEE were for people of different genders than those of the confidential informants. CI-1 and CI-2 would provide cash in exchange for the oxycodone, often placing the cash into paper or plastic bags, which were then handed to LEE. A review of the Pharmacy bank records revealed monthly cash deposits between January and September 2012 of over $100,000.
Records from the DEA and New York State’s Bureau of Narcotics Enforcement revealed that:
o The number of oxycodone dosage units purchased by the Pharmacy in 2012 is more than double the number of oxycodone dosage units purchased by any other pharmacy in the same zip code.
o The number of dosage units of oxycodone purchased by the Pharmacy more than doubled from 2010-2011 and then again more than doubled from 2011-2012.
o Many of the oxycodone prescriptions issued by the same practitioner contained sequential serial numbers, and were paid for in cash.
If convicted of the charges in the complaint, LEE faces a maximum penalty of 20 years in prison and a fine of $1 million.
Mr. Bharara praised the efforts of the DEA’s New York City Tactical Diversion Squad, comprised of members from the DEA, New York City Police Department, Westchester County Department of Public Safety, the New York State Insurance Bureau, the Rockland County Drug Task Force and the Internal Revenue Service. Mr. Bharara also thanked the Westchester County District Attorney’s Office, comprised of members of the New York State Police, the Yonkers Police Department, and District Attorney Investigators for their work on the investigation. He noted that the investigation is ongoing.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Elisha Kobre is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Ji Yun Lee Complaint
Manhattan U.S. Attorney Charges 13 Members and Associates of Bronx Narcotics Organization with Crack Cocaine and Heroin DistributionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner for the City of New York (“NYPD”), announced today the unsealing of an Indictment charging 13 members and associates of a drug trafficking organization (the “Organization”) operating in the Bronx with narcotics trafficking. Of the defendants charged, all thirteen defendants were arrested today, including four defendants who were already in custody on state charges that have been transferred to federal custody. Eleven defendants arrested today were presented in Manhattan federal court before Chief United States Magistrate Judge Kevin Nathaniel Fox. The case has been assigned to U. S. District Judge Deborah A. Batts.
Manhattan U.S. Attorney Preet Bharara said: “Today we continue our efforts to rid the Southern District of drug trafficking crews who peddle their lethal product in our neighborhoods, this time by taking down an alleged group of crack cocaine and heroin dealers in the Bronx. This case is the latest example of law enforcement working together to keep our neighborhoods safe.”
FBI Assistant Director-in-Charge George Venizelos said: “Crack and heroin are a blight on the communities they infest. Even absent the violence that almost always comes with the territory, there would be reason enough to target drug trafficking. But it isn’t just a matter of stopping the spread of poison. Drug trafficking entails violence with such frequency that curbing drug activity means reducing violent crime.”
NYPD Commissioner Raymond W. Kelly said: “Just as the NYPD collaborates with landlords in our "Clean Halls" program to suppress drug dealing and its associated violence in privately-owned buildings in the Bronx, we collaborated with the FBI and Federal prosecutors to suppress drug trafficking in and around Bronx public housing in this case. Residents of crime-prone neighborhoods deserve a modicum of safety others take for granted. Thanks to the detectives, agents and prosecutors who worked together on this case, law-abiding residents of the Bronx are that much safer today.”
According to the allegations in the Indictment filed in Manhattan federal court, other publicly filed documents, and statements made in court earlier today:
Since at least June 2012, the Organization’s members have sold crack cocaine and heroin to street level drug customers, and supplied it to other Bronx drug dealers, primarily in and around the John Adams Housing Project near Tinton Avenue in the Bronx.
The investigation into the Organization’s narcotics trafficking included the court-authorized interception of phone calls and text messages to and from the cellular telephone of a member of the Organization, as well as a number of controlled buys of heroin and crack cocaine by a confidential informant. The investigation was conducted in concert with an investigation into the 2010 murder of an individual on Nelson Avenue in the Bronx. The murder was suspected to have been committed by, among others, Jermaine Smalls, a leading member of the Organization. In October 2012, during the course of the investigations, Smalls was shot and killed outside a Manhattan night club. The investigation into both murders continues.
The defendants are charged with one count of conspiring to distribute, and possess with intent to distribute, crack cocaine and heroin, which carries a mandatory minimum sentence of ten years in prison and a potential maximum sentence of life in prison. Charts containing the names, ages, and residences for the defendants are attached.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD, and added that the investigation is continuing.
The prosecution is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Kan Nawaday and Andrew Bauer are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Lynnwood Company, Owner and Executives Indicted for Trafficking in Counterfeit GoodsRead the Press Release
A Lynnwood, Washington electronics company, its owner and two company executives, and a Chinese company and its representative were indicted today in U.S. District Court in Seattle for conspiracy to traffic in counterfeit goods, announced U.S. Attorney Jenny A. Durkan. According to the indictment, CONNECTZONE.COM LLC had websites that advertised and sold computer networking products including products bearing trademarks owned by U.S. companies Cisco, but the investigation revealed the company obtained its products from multiple foreign suppliers of counterfeit goods including a Chinese firm, XIEWEI ELECTRONICS.
“Protecting the intellectual property of American companies is critical to job growth and economic recovery – especially in our high tech industries,” said U.S. Attorney Durkan. “I commend the dedicated investigators who uncovered this scheme.”
Three of the individuals charged will appear in court tomorrow, January 18, 2013. The CONNECTZONE.COM LLC defendants include: DANIEL OBERHOLTZER, 50, of Lynnwood, the company owner; WARREN LANCE WILDER, 46, of Auburn, the sales manager; and EDWARD VALES, 31, of Seattle, the production manager. SHENZHEN XIEWEI ELECTRONIC LTD, headquartered in Shanghai, China and its representative MAO MANG, aka “BOB MAO” are also indicted.
The indictment alleges that as early as 1997, while the company was operating as Electro Products, Incorporated, it was distributing counterfeit equipment manufactured in China. The indictment alleges that DANIEL OBERHOLTZER, LANCE WILDER and EDWARD VALES would advise BOB MAO and XIEWEI ELECTRONICS and other Chinese companies regarding how to manufacture products that would look like genuine Cisco trademarked goods. Some of the goods would be labeled “samples” when shipped to the U.S. to try to deceive U.S. Customs officials. The U.S. based conspirators falsely advertised the counterfeit goods as genuine and offered it for sale at a much lower price than genuine Cisco equipment. The indictment describes the various emails sent between the conspirators as they ran their scheme. In addition to the conspiracy count, the indictment also charges two counts of mail fraud and four counts of trafficking in counterfeit goods.
“Counterfeiting high dollar goods can be very lucrative for enterprising criminals,” said Brad Bench, special agent in charge of HSI Seattle. “Their illicit activities ultimately come at the expense of trademark owners and consumers. They don’t contribute to research and development and the knockoffs they sell generally don’t match the quality and safety of genuine items.”
Conspiracy to traffic in counterfeit goods is punishable by up to ten years in prison and a $2 million fine; Mail fraud is punishable by up to 20 years in prison and trafficking in counterfeit goods is punishable by up to 10 years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Seattle-Tacoma Border Enforcement Security Task Force (BEST) led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) with the Seattle Police Department, the Port of Seattle Police Department and assistance from U.S. Customs and Border Protection Office of Field Operations (CBP OFO). BEST Seattle is comprised of full time members from HSI; CBP OFO; the U.S. Secret Service; the Port of Seattle Police Department; the U.S. Coast Guard Investigative Service; and the FBI. The BEST investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
The case is being prosecuted by Assistant United States Attorney Norman Barbosa.
London Doctor Admits Evading Hundreds of Thousands of Dollars in TaxesRead the Press Release
LONDON, KY - A London, KY., physician, who worked in eastern Kentucky and Tennessee, admitted he evaded hundreds of thousands of dollars in federal income taxes.
Werner Grentz, 64, pleaded guilty today to tax evasion in front of U.S. District Judge Gregory F. Van Tatenhove. As part of his plea, Grentz agreed to pay the IRS approximately $900,000.
Grentz admitted he made $356,073 in taxable income in 2009 working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, Ky. In order to hide his income, Grentz had his earnings deposited into bank accounts of companies that he controlled, and he did not file a tax return or pay federal income taxes.
Grentz admitted that he failed to pay $900,068 in taxes since 1999. He was indicted in April of last year.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant.
Grentz is scheduled to appear for sentencing on May 16 at 2:30 p.m., in Federal court in London. He faces a maximum prison sentence of five years. However, the court must consider the United States Sentencing Guidelines and the federal statute before imposing a sentence.
Logan County Man Pleads Guilty to Producing Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mickell Close, 31, of Quincy, Ohio pleaded guilty in U.S. District Court to one count of using minors to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William A. Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott who heads the Franklin County Internet Crimes Against Children (ICAC) Task Force, and Logan County Sheriff Andrew J. Smith announced the plea entered today before U.S. District Judge Edmund A. Sargus Jr.
According to a statement read by an HSI agent during the hearing, law enforcement officials patrolling the internet in June 2012 identified an email account connected to sharing child pornography. The account was traced to Close.
Further investigation found that Close used his cell phone to secretly record videos of three prepubescent female victims at his residence while the victims were using the bathroom or bathing. Portions of the videos showed close-up depictions focused on the nude genitalia of each of the victims. After recording the videos he made still images from the videos and traded the videos and images with other individuals on the internet in exchange for images and videos of child pornography.
Forensic examination of computers and storage media at Close’s residence revealed at least 34 images of mainly prepubescent females engaged in sexually explicit activity or posed in a sexually explicit manner while in bondage.
“Once images of exploitation are on the internet, they never go away,” U.S. Attorney Stewart said. “This adds to the indignity and humiliation the victim is already facing.”
Logan County Sheriff’s deputies working with HSI arrested Close on November 9. He has been in custody since his arrest.
“Today's conviction is the first step toward healing for the victims of the depraved acts perpetrated by the defendant in this case,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “While we cannot restore the innocence stolen from the young victims in cases like these, we will continue to make the aggressive pursuit of their predators among our highest priorities.”
“Individuals who represent the worst of the worst are the reasons why we do what we do,” Franklin County Sheriff Scott said. “Close’s conviction can prevent other children from horrific and unimaginable abuse. It's because of the cooperative effort between all of the agencies that make up the Franklin County Internet Crimes Against Children Task Force and HSI, that predators like Close are identified and brought to justice.”
In the plea agreement, the parties have agreed that a term of incarceration between 252 months and 318 months followed by 20 years under court supervision is the appropriate sentencing range. The court will conduct a pre-sentence investigation before deciding whether or not to accept the terms of the plea agreement.
Close also agreed to forfeit all computer equipment and visual depictions of the child pornography that were seized from him at the time of the execution of the search warrant in this case. The plea agreement also allows the U.S. Probation Office to install monitoring software on any computer he owns, uses or has access to during his period of supervised release. He will also be required to register as a sex offender anywhere he lives, works or goes to school.
This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Lengthy Federal Prison Sentences for Two Providence Felons for Crimes Involving FirearmsRead the Press Release
PROVIDENCE, R.I. – For the second time this week, a federal court judge has sentenced a previously convicted felon to a lengthy federal prison sentence for crimes involving the use or possession of a firearm, announced United States Attorney Peter F. Neronha; Providence Police Chief Colonel Hugh T. Clements, Jr; and Guy N. Thomas, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Boston Field Office.
U.S. District Court Judge William E. Smith on Wednesday sentenced Juan Colon, 22, of Providence, to 96 months in federal prison. Colon was convicted by a federal court jury in September 2012 on drug trafficking and firearm charges, brought as a result of a Providence Police investigation into Colon’s drug trafficking activities. At the time of Colon’s arrest in December 2011, Providence Police seized three loaded firearms and more than 100 rounds of ammunition associated with the defendant.
On Monday, Alphonso D. Johnson, 38, of Providence, a career offender, was sentenced by U.S. District Court Judge John J. McConnell, Jr. to 312 months in federal prison for robbing a Providence convenience store clerk at gunpoint in April 2011, and for robbing and assaulting a Providence restaurant owner with a pistol two days later. Johnson pleaded guilty on October 10, 2012, to two counts of Hobbs Act robbery, two counts of being a felon in possession of a firearm, and use and possession of a firearm during a crime of violence.
United States Attorney Peter Neronha commented, “As I stated earlier this week, I am pleased that, working with the Providence Police Department and with Attorney General Peter Kilmartin, we continue to bring gun-wielding criminals to justice, whether in federal or state court. These cooperative efforts are essential to removing illegal guns from the streets to ensure that our neighborhoods are safe for all Rhode Islanders.”
Providence Police Chief Colonel Hugh T. Clements, Jr. said, "Thanks to the continued hard work and collaboration between the Providence Police Department and our federal partners in law enforcement, two dangerous criminals no longer threaten our community. I commend the U.S. Attorney’s Office for its successful prosecution of these men, and look forward to future cooperation between our agencies."
“The Bureau of Alcohol, Tobacco, Firearms and Explosives will continue to work with our law enforcement partners, in these cases the Providence Police Department, to investigate career criminals who commit firearms related crime,” stated ATF Special Agent in Charge Guy N. Thomas, Boston Columbus Field Division. “The lengthy sentences both individuals received should send a clear message to others who commit firearm related violent crime.”
According to evidence presented to a federal jury, a court authorized search of Juan Colon’s residence on December 5, 2011, resulted in the seizure of a loaded firearm which Colon attempted to hide as officers entered the residence, a significant quantity of ammunition, and various quantities of cocaine and marijuana. A search of two vehicles parked outside of Colon’s residence resulted in the seizure of two loaded firearms and $10,000 in cash, all associated with the defendant. On September 13, 2012, a federal jury convicted Colon of possession with intent to distribute marijuana, possession of a firearm by a convicted felon, and possession of a firearm with an obliterated serial number.
At the time of his guilty plea in U.S. District Court on October 10, 2012, Alphonso Johnson admitted to the court that on April 18, 2011, he robbed a Providence convenience store clerk at gunpoint of several hundred dollars in cash, cigarettes and a box of cigars. He also admitted to the court that two days later he robbed a West End restaurant owner at gunpoint of more than $4,300 cash in restaurant proceeds, struck her in the face twice with a .25 caliber pistol and kicked her before fleeing on foot.
Juan Colon was prosecuted by Assistant U.S. Attorneys Paul F. Daly and Milind M. Shah. Alphonso Johnson was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of both of these matters.
Contact: 401-709-5357
[email protected]Leader in Latrobe Homes Drug Conspiracy Exiled to over 10 Years in PrisonRead the Press Release
Distributed Up To a Ton of Marijuana During the ConspiracyBaltimore , Maryland - U.S. District Judge Catherine C. Blake sentenced Raymond Williams, age 36, of Baltimore, Maryland today to 121 months in prison, followed by four years of supervised release, for conspiracy to distribute and possess with the intent to distribute between 1,400 and 2,000 pounds of marijuana as part of a drug organization that operated in the Latrobe Homes area of East Baltimore and elsewhere. Judge Blake also ordered that Williams forfeit over $315,000, including $101,580 seized during a search of his home, and a Land Rover.
A total of sixty-six defendants were charged in March 2011 - 31 in federal court and 35 in state court – for dealing drugs at Latrobe Homes in East Baltimore, an area prone to violence and drug activity. The federal indictments alleged that the conspirators obtained heroin and marijuana from suppliers in New York and California, and that violent crimes were committed in furtherance of the conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Robert Brisolari of the Drug Enforcement Administration - Washington Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Williams’ plea agreement, from at least 2008 through March 10, 2011, Williams participated in a conspiracy to distribute drugs in the Latrobe Homes area of Baltimore and elsewhere, purchasing significant quantities of marijuana from suppliers in California, and selling marijuana to other conspirators for further distribution. Between June 2010 and March 2011, Williams, who lives in Maryland, maintained a residence in San Diego, California, which functioned as a distribution center for his drug trafficking operation. Williams used the home to receive large quantities of marijuana, which were then broken down into smaller quantities by Williams and others for shipment to purchasers around the country. Williams oversaw an operation in which he and his associates shipped boxes of marijuana weighing between 10 and 25 pounds each from California to locations in Maryland, New Jersey, and Pennsylvania for distribution in Maryland. Law enforcement agents have identified more than 500 pounds of marijuana shipments associated with accounts Williams maintained at a shipping company between December 2010 and March 2011.
Williams sent some of the proceeds of the marijuana sales back to California to purchase more marijuana for distribution. Williams mailed cash to associates in California, transferred drug proceeds deposited in Maryland bank accounts to individuals in California, and paid couriers to fly to California carrying large amounts of cash on their persons and in their luggage. During the investigation, U.S. Postal Inspectors seized a total of $214,280 in cash from packages mailed or received by individuals associated with the conspiracy, including $15,000 that was seized from a package that, during surveillance of Williams, law enforcement had seen being mailed on Williams’ behalf. In addition, $101,580 in cash was recovered on March 10, 2011, during a search of Williams’ San Diego house, along with trace amounts of marijuana and handwritten instructions on how to package marijuana for shipment. Williams admits that the money seized was the proceeds of drug trafficking.
All 31 federal defendants have pleaded guilty to their participation in the drug trafficking conspiracy, including Shawn Johnson, age 41, of Bronx, New York, who was sentenced to 160 months in prison; Dana Bowman, age 39 and Donald Wright, age 41; both of Baltimore, who were each sentenced to 151 months in prison; and Antonio McNeely, age 34, of Baltimore, sentenced to 136 months in prison. Another co-defendant, Melvin Thompson, age 31, of Baltimore, Maryland, was sentenced earlier this week to 10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore City Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein praised Baltimore City Assistant State’s Attorney Christopher M. Mason who assisted in the federal prosecution, and Baltimore City Assistant State’s Attorneys Tony Gioia, Miabeth Marosy, Jeanne Canal and Anna Mantegna, who are prosecuting related state cases. Mr. Rosenstein thanked Assistant United States Attorney Benjamin M. Block, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Knoxville Woman Sentenced to One Year in Prison for Lying to Court About Cancer DiagnosisRead the Press Release
KNOXVILLE, Tenn. – Angela Elwood, 48, of Knoxville, Tenn., was sentenced on Jan. 17, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve one year in federal prison.
On Aug. 17, 2012, United States Attorney William C. Killian filed an information in U.S. District Court charging Elwood with obstructing justice by lying to the court about having cancer so that she could delay her reporting date to the federal Bureau of Prisons to begin a prison term imposed for a bank fraud conviction.
According to court documents, Elwood admitted that following her bank fraud conviction in 2009, and while awaiting designation and a reporting date to a federal prison facility, she obstructed the due administration of justice by having the Court extend her reporting date to federal prison based on medical documents submitted to the Court that she fabricated to falsely state that she had been diagnosed with breast cancer and needed immediate medical treatment. At the time Elwood submitted the false medical documents to the Court, she already had been told by a medical professional that she in fact did not have breast cancer.
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the government.
Justice Department Seeks to Shut Down Florida Tax PreparerRead the Press Release
The United States has asked a federal court in Jacksonville, Fla., to stop Thomas G. Bandzul from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Bandzul has repeatedly prepared federal tax returns that unlawfully understate customers’ federal tax liabilities. The suit alleges that Bandzul concocts bogus or inflated deductions, business expenses, education credits and charitable contributions, which he falsely reports on his customers’ federal income tax returns.
The suit alleges that the Internal Revenue Service (IRS) has examined over 250 tax returns prepared by Bandzul and found that over 90 percent of tax returns understated the taxpayer’s liability. According to the complaint, the total harm to the U.S. Treasury caused by Bandzul’s misconduct could exceed $17 million.
The suit further alleges that, in some instances, Bandzul filed returns that claimed a refund larger than what Bandzul had disclosed to the taxpayer. Once the refund was paid, Bandzul retained the additional amount without the taxpayer’s knowledge.
Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Thomas G. Bandzul
Complaint for Permanent InjunctionJohnstown Man Pleads Guilty to Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court on a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Douglas Teeter, 37, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on March 13, 2009, Teeter knowingly possessed videos and images as computer graphic files containing images of child pornography, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for June 6, 2013, at 10:30 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Homeland Security Investigations, with the assistance of the Johnstown Police Department, conducted the investigation that led to the prosecution of Teeter.
This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse, led by the United States Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims.
Jackson Purchase Medical Center Agrees to Pay $850,343.84 to Settle False Medicare BillingsRead the Press Release
– United States alleges violations of the False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law
LOUISVILLE, Ky. – PineLake Regional Hospital, LLC doing business as Jackson Purchase Medical Center (JPMC), has voluntarily entered into a settlement with the United States of America to pay $850,343.84 to settle allegations that the acute care facility submitted or caused to be submitted false claims for payment to the Medicare program in violation of the Federal False Claims Act, the Anti-Kickback Statue, and the Physician Self-Referral Law announced the Office of Inspector General of the Department of Health and Human Services and David J. Hale, United States Attorney for the Western District of Kentucky.
“Pursuing health care fraud is a priority of my Office and the Department of Justice. We will continue to work with the Department of Health and Human Services to ensure that medical providers who overbill Medicare are investigated,” stated David J. Hale, United States Attorney for the Western District of Kentucky. “Those that do not follow the rules designed to safeguard our nation’s limited health care resources will be held to account.”
According to the settlement agreement, the United States contends Dr. Raymond Charette, an orthopedic surgeon in private practice, received improper financial benefits from JPMC and, in return, referred patients to and treated patients at JPMC, a 107 licensed bed facility located in Mayfield, Kentucky.
The improper financial relationship, alleged by the United States, between JPMC and Dr. Charette, occurred for a period of seven years beginning in July 2004 through August 31, 2011. The United States alleged that from November 1, 2007, through August 31, 2011, JPMC employed a nurse practitioner who worked primarily and extensively for Dr. Charette; from July 1, 2007, through December 31, 2007, JPMC relieved Dr. Charette from his monetary rental obligations for space in JPMC’s medical building without modifying the lease in a signed agreement; and from July 6, 2004, through August 31, 2011, JPMC failed to collect rent on an equipment lease for an x-ray machine used by Dr. Charette’s medical practice. Having received financial benefits in the form of a Nurse Practitioner and reduced rental obligations, Dr. Charette referred patients to and treated patients at JPMC. As a result of these actions, the United States contends that JPMC submitted claims to Medicare for services rendered to these referred patients in violation, of the False Claims Act, the Anti-Kickback Statue, the Physician Self-Referral Law, and other federal statutes and common law doctrines.
This settlement agreement is neither an admission of liability by JPMC nor a concession by the United States that its claims are not well founded.
This case was prosecuted by Assistant United States Attorney Benjamin S. Schecter and it was investigated by the Office of Inspector General for the Department of Health and Human Services.
Insurance Broker Defrauds Seniors Out of Annuity FundsRead the Press Release
Williamsburg’s William Lowder Pleads Guilty to Wire Fraud and Tax ChargesGRAND RAPIDS, MICHIGAN – William Edward Lowder, age 57, of Williamsburg, Michigan, pleaded guilty to one count of wire fraud and one count of filing a false federal income tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division, Special Agent in Charge Robert D. Foley III of the FBI, and Sheriff Thomas Bensley of the Grand Traverse Sheriff’s Office.
According to a Felony Information filed on January 9, 2013, Lowder was a licensed insurance agent and annuities producer who operated as Lowder Insurance and Ash Brokerage. Beginning in 2001, Lowder began defrauding several of his elderly clients by convincing them to liquidate existing annuity investments under the promise that the proceeds would be reinvested in annuities earning higher rates of return. After the clients liquidated their annuities, Lowder convinced them to provide the proceeds directly to him for reinvestment. Instead of reinvesting the proceeds, Lowder deposited the proceeds into his own bank account. To conceal his fraud, Lowder provided these clients with false statements of account.
“Vigorous prosecution of professionals who commit financial crimes remains one of the top priorities of this Office,” said U.S. Attorney Miles. “This case is especially troubling given that Mr. Lowder stole significant amounts of money from elderly clients who, like most citizens, rely upon their limited investments to provide for their financial security.” FBI Special Agent in Charge, Robert D. Foley III, agreed, stating “those who target elderly victims, many of whom live on a fixed income, rob them of their hard-earned savings and their security. The FBI is committed to stopping predatory scams against seniors.”
Between 2001 and 2009, Lowder stole in excess of one million dollars from his clients, which he used to fund his own comfortable lifestyle. As part of his plea, Lowder admitted that he did not claim the amounts stolen from his clients as income on his U.S. individual income tax returns from 2006 to 2009, despite knowing that he had an obligation to do so.
“There is never a time when it is okay to steal from someone, especially our seniors. IRS Criminal Investigation is committed to finding these perpetrators and pursuing them to the full extent of the law,” said Special Agent in Charge Erick Martinez..
END
Indictment Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ FAX (219) 852-2770
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on January 16, 2013:
Brealon B. Miller, Jr., 24, and David L. Hardin, Jr.,22, both of Gary, Indiana, were charged in an Indictment with the robbery of BMO Bank in Hammond, Indiana and use of a firearm in relation to a crime of violence, to wit: armed robbery.Miller was also charged with possession of a stolen firearm.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
Octavio Alejandre-Mata, 44, of Hobart, Indiana, was charged in an Indictment with four counts of distribution of cocaine and one count of being an illegal alien, having been previously deported from the United States.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Allen Ray Evens, 24, of Gary, Indiana, was charged in an Indictment with two counts of possession of a firearm by a convicted felon.These charges were filed as the result of an investigation by the by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Nicholas Padilla.
Charles E. Johnson, Jr., 32, of Gary, Indiana, was charged in an Indictment with one count of possession with the intent to distribute crack cocaine.These charges were filed as the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Hyattsville Man Sentenced to 12 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Juan Alvizures Oliva, age 30, of Hyattsville, Maryland, today to 12 years in prison, followed by five years of supervised release, for production and possession of child pornography. Oliva will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). It is expected that Oliva will be deported upon his release from prison.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Mark A. Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Crimes against children and others who are most vulnerable in our community are inexcusable,” said Prince George’s County Police Chief Mark Magaw. “I am proud of the work the Prince George’s County Police Department and our law enforcement partners did to arrest and prosecute Oliva to ensure he can’t harm anyone else.”
According to his plea agreement, on February 20, 2011, Oliva engaged in sexually explicit conduct with a four year old female, whom he was babysitting at the time. Oliva also had the child take off her clothes and expose her genitals and used his cell phone to take a photograph of the child in that state.
On April 4, 2011, Oliva was interviewed and admitted his conduct. Oliva’s cell phone and home computer were seized and forensically examined by law enforcement. The photo Oliva had taken of the victim was found on his cell phone and had also been uploaded onto the computer for availability to distribute.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, assigned from the Department of Justice Child Exploitation and Obscenity Section, who prosecuted the case.
Huntsville Army Officer Convicted of False Statements and Theft of Government PropertyRead the Press Release
HUNTSVILLE – A federal jury today convicted a U.S. Army officer for making false statements to a department of the United States and for stealing government property, announced U.S. Attorney Joyce White Vance and John F. Khin, special agent in charge, Defense Criminal Investigative Service, U.S. Department of Defense.
The jury convicted Lt. Col. James O. McLinnaham, 45, who is stationed at Redstone Arsenal in Huntsville, after a three-day trial before U.S. District Judge Abdul K. Kallon. The jury found McLinnaham guilty of three counts of making false statements on official, confidential disclosure forms; one count of making false statements in a questionnaire for national security clearance; and three counts of making false statements in work orders submitted to the Army print shop.
Evidence at trial showed the defendant had certified that the financial disclosure forms were true when he had failed to disclose his position with an outside business, and to having received wages and other payments from that business. The evidence showed that the defendant had certified that his questionnaire for national security clearance was true when he had failed to disclose his association with the same business, a prior marriage, and a prior misdemeanor arrest. The defendant was required to fill out all these forms as part of his official duties with the U.S. Army.False statements on the work orders related to McLinnaham certifying that posters printed and mounted by the Army print shop were for official purposes when they were actually for his outside business. The theft of government property charge related to the same posters, and to the defendant obtaining a conference table from Redstone Arsenal for which his business received a $400 credit toward the purchase of another conference table from a local furniture store.
“The citizens are entitled to expect honesty and integrity from all government employees, including military personnel,” Vance said. “This case is important because it demonstrates our commitment to investigating and prosecuting those who do not live up to the trust that our citizens have placed in them,” she said.
The defendant faces a maximum sentence of five years in prison and a $250,000 fine for the false statement charges. He also faces a maximum sentence of 10 years in prison and a $250,000 fine for the theft charge.
McLinnaham is tentatively scheduled for sentencing in April.
The case was investigated by the Defense Criminal Investigative Service, with assistance from the U.S. Army Criminal Investigation Command, and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Russell E. Penfield and Terence M. O’Rourke prosecuted the case.
Hudson County, N.J., Man Indicted for Distributing Images of Child Sexual Abuse over the InternetRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was charged today in an Indictment with one count each of possessing and distributing images of child sex abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Jonathan Martin, 23, of Jersey City, N.J., and Short Hills, N.J., was previously arrested on a Complaint and is currently in federal custody.
According to documents filed in the case and statements made in court:
On August 7, 2012, special agents of the FBI executed a search warrant at Martin’s Jersey City residence and seized digital evidence containing more than 2000 images depicting child sexual abuse, including prepubescent minors and portrayals of sadistic or masochistic conduct. The digital evidence seized included 50 files previously downloaded from Martin by law enforcement agents working in an undercover capacity on a publicly available peer-to-peer network.
On the distribution count, Martin faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, Newark Division’s Child Exploitation Task Force, under the direction of Acting Special Agent in Charge David Velazquez, and the Jersey City Police Department, under the direction of Acting Police Director Robert Kakoleski and Chief Thomas Comey with the investigation leading to today’s Indictment.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Alan Zegas Esq., Chatham, N.J.Martin, Jonathan Indictment
Hualapai Nation Tribal Member Sentenced to Prison for Assault on A Federal OfficerRead the Press Release
PHOENIX – On Jan.14, 2012, Jordan Reed Sumatzkuku, 25, of Peach Springs, Ariz., was sentenced by U.S. District Judge David G. Campbell to 36 months in prison. Sumatzkuku was also sentenced to 12 months in prison for violating his supervised release in another case. The sentences were ordered to run consecutively for a total sentence of 48 months in prison, followed by a term of three years of supervised release. Sumatzkuku, a member of the Hualapai Nation Indian Tribe, pleaded guilty on Nov. 7, 2012 to assault on a federal officer. Sumatzkuku’s sister, co-defendant Raema Sumatzkuku, was sentenced to 12 months in prison for assault on a federal officer on Dec. 17, 2012.
According to court records, on July 2, 2012, when a Hualapai Nation Police Officer tried to arrest Sumatzkuku’s sister, Sumatzkuku grabbed the officer, knocked him to the ground, and wrestled with the officer. The victim sustained a fracture to his left foot as a result of the assault.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8182-PCT-DGC
RELEASE NUMBER: 2013-005_SumatzkukuFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Houston Area Man Handed 45 Years for Multiple Child Pornography ConvictionsRead the Press Release
Defendant calls himself a “monster” during the hearing
HOUSTON - DJ Christopher Lowe, 37, has been sentenced to a total of 540 months in federal prison for his convictions of possession, distribution as well as production of child pornography, United States Attorney Kenneth Magidson announced today. Lowe pleaded guilty Dec. 2, 2011, admitting he exploited six different children in order to produce child pornography.
Just moments ago, U.S. District Judge Ewing Werlein Jr. handed Lowe the statutory maximum of 360 months for each of three counts of sexual exploitation of children (production of child pornography) and 120 months for the possession charge all to run concurrently with each other and to the 240-month sentence for the distribution conviction. He was further ordered to serve 180 months for three additional charges of sexual exploitation of children which will run concurrently to one another but consecutively to the other sentences imposed today for a total sentence of 540 months. Lowe will also have to serve the rest of his life on supervised release following completion of that prison term and pay an $8000 fine.
Lowe spoke at the hearing and called himself a monster.
In handing down the sentence, U.S. District Judge Ewing Werlein Jr. noted that someone who victimizes half a dozen children requires a sentence that would deter others from becoming the monster as Lowe described himself to be. He called Lowe’s conduct “reprehensible,” and noted that each child should be considered of independent worth. He further noted that Lowe’s collection of pornographic images and videos was one of the largest he had ever seen.
The production and distribution charges occurred as far back as 2009 and June 2010, respectively, while he possessed the child pornography as recently as Aug. 13, 2010.
Lowe’s activities were discovered when an individual was arrested on similar charges in Italy. On that man’s computer, were child pornography images and chats between he and Lowe, including child pornography images/videos of Lowe’s own relatives. Based on the information obtained in Italy, a federal search warrant was executed on Lowe’s home in Houston on Aug. 13, 2010, at which time, more than 17,000 images and hundreds of videos of child pornography were found. All of the children used in the production of child pornography have been identified and were, at the time of Lowe’s arrest, as young as two years old.
At the time the warrant was executed, Lowe was interviewed and admitted to downloading, possessing and distributing child pornography. He acknowledged his communication with the Italian individual and exchanging digital images and videos of child pornography with him.
Lowe will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges against Lowe are the result of an investigation conducted by members of the Innocent Images Unit of the Houston FBI, which focuses its attention on investigating offenses involving the exploitation of children via the Internet.
This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."