Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 January 2013
Owner of Clark’s Auto Sales Sentenced for Dealing in Illegal Explosives and Falsifying Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Earl Clark, 40, of Franklin, Ohio, was ordered to forfeit two bank accounts containing $353,211.91 and $33,388.14, plus $21,524 in U.S. currency, nine automobiles, and a trailer, and to pay $80,000 in restitution to the Internal Revenue Service (IRS) for committing violations of money laundering, dealing in explosives without a license, and willfully filing a false federal income tax return with the IRS, relative to his ownership of Clark’s Auto Sales. Clark was also sentenced to serve 12 months and one day in prison, 3 years of supervised release, and fined $10,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Darryl Williams, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Cincinnati Field Office; Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol Tobacco, Firearms and Explosives (ATF); Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and members of the Warren County Drug Task Force, announced the sentence handed down by U.S. District Judge Thomas M. Rose.
According to court documents, Earl Clark has owned and operated Clark’s Auto Sales since 2004. Clark assisted several individuals in concealing their assets, which represented the proceeds of illegal drug sales. Between 2007 and October 2010, Clark sold cars to individuals he knew as “dope boys,” a term to describe people engaged in the sale of illegal narcotics. Clark titled these cars in the names of individuals other than the drug dealers in order to help conceal ownership of the vehicles, and he placed false liens of the vehicles, in efforts to prevent law enforcement from trying to seize the property as proceeds of drug trafficking.
Clark laundered the proceeds from the illegal auto sales by depositing cash, totaling between $120,000 and $200,000, into his bank account.
Clark also sold illegal fireworks between June 2009 and June 2010 from his auto dealership, an activity which constitutes explosives dealing under Federal law. Clark did not have a license to distribute, possess, or sell these explosive materials.
In addition, Clark earned significant income between 2004 and 2009 from the sale of fireworks and explosive materials but failed to report some of that income on his federal tax returns. Clark willfully failed to report at least $80,000 in income per year during each of these tax periods, resulting in a tax loss to the IRS in excess of $80,000.
Darryl Williams, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office stated, “Not only was Earl Clark sentenced to significant jail time, but the government seized a significant portion of the illegal proceeds through asset forfeiture. IRS, Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
Stewart commended the cooperative investigation by agents of the IRS Criminal Investigation, ATF, DEA, and the Warren County Drug Task Force, along with Assistant U.S. Attorney Brent Tabacchi, who is prosecuting this case.
Open Mri in Brunswick, Douglas, and Savannah Pays More Than $1.2 Million for False MedicareclaimsRead the Press Release
Government alleged that MRI procedures were conducted without adequate supervision.
SAVANNAH, GA: Diagnostic Systems, Inc. d/b/a Open MRI of Savannah; Southeast Georgia Open MRI d/b/a Open MRI at Fountain Lake, and Open MRI of Douglas, have agreed to pay the United States $1,273,126 to settle allegations that those facilities submitted false claims to Medicare, Georgia Medicaid, TRICARE, and the Federal Employees Health Benefit Program (FEHBP), for certain MRI procedures that were not supervised as required by a physician. A MRI is a common medical imaging technique. With certain MRI procedures, a contrast agent (e.g., dye) may first be injected into a patient to produce a clearer diagnostic picture. The use of contrast, however, could pose significant health risks to a patient. For this reason, under Medicare regulations, MRI procedures with contrast require a physician to be present or immediately available to handle any emergencies that may arise. MRI facilities generally receive a higher rate of reimbursement for procedures that use a contrast agent (as opposed to MRIs without contrast).
The Government alleged that from approximately January 2007 to October 2011, Open MRI facilities in Brunswick, Douglas, and Savannah performed hundreds of MRI procedures using contrast but without any physician supervision. In most instances, only clerical staff and a technician were on site during the procedures. Open MRI then billed various federal health care programs for those unsupervised procedures.United States Attorney Edward J. Tarver said, “Health care providers cannot put profits above patient safety. Medicare, Medicaid and other federal health care programs operate on the honesty of its providers, and this office will actively pursue those who misuse the programs for financial gain.”“Health care providers must provide beneficiaries adequate physician supervision for services that require such standards,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “The OIG will vigorously pursue providers who shortcut Medicare regulations in exchange for profit.”In connection with the settlement, Open MRI also entered into a five-year corporate integrity agreement with the Government which contains provisions intended to ensure the company’s compliance with Medicare regulations in the future.
The civil investigation and settlement were handled by the United States Attorney’s Office for the Southern District of Georgia, with the assistance of Special Agent Mark Creamer from the United States Department of Health and Human Services, Office of Inspector General. The United States was represented by Assistant United States Attorney Edgar Bueno.
For additional information, please contact First Assistant United States Attorney, James D. Durham at (912) 201-2547.Ocean County, N.J., Man Pleads Guilty to Distributing Infant Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man today admitted using a computer in his home to distribute images of child pornography, including images of infants, U.S. Attorney Paul J. Fishman announced.
Arthur Frazer Jr., 34, of Lanoka Harbor, N.J., pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an Information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Frazer admitted distributing images of infant child pornography via email using a computer located in his residence in December 2010. He also admitted to possessing more than 600 images of child pornography on his computer and accessories, which were seized from his residence in February 2012. Frazer acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. Frazer was previously charged by Complaint with distribution of child pornography in February 2012 and has been in custody since his arrest.
The count to which Frazer pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years supervised release, and a $250,000 fine. Sentencing is scheduled for April 30, 2013.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Crimes Squad assigned to Innocent Images, under the direction of Acting Special Agent in Charge David Velazquez in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
13-022
Defense Counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Frazer Information
North Side Man Pleads Guilty in Identity Theft SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to charges of conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Joseph Dees, a/k/a Joseph Lee, a/k/a Jay Dees, 52, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, Dees conspired with other persons to obtain unauthorized credit card account information to purchase merchandise in stores in Pennsylvania and West Virginia.
Judge Schwab scheduled sentencing for April 23, 2013. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, in addition to a mandatory minimum sentence of 24 months incarceration, and a fine of $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Service and the United States Secret Service conducted the investigation that led to the prosecution of Dees.
Norris Man Sentenced for Involuntary ManslaughterRead the Press Release
US Attorney Brendan V. Johnson announced that a Norris man convicted of Involuntary Manslaughter was sentenced on January 10, 2013, by US District Judge Roberto A. Lange. Mark Clairmont, age 38, was sentenced to 33 months in custody, 2 years of supervised release, and $100 to the Victim Assistance Fund.
Clairmont was indicted for Involuntary Manslaughter by a federal grand jury on June 12, 2012. The charge stems from an incident occurring on February 17, 2012, when Clairmont was driving a motor vehicle at approximately 79 miles per hour, had been drinking alcoholic beverages, and was under the influence of alcohol. Claimant lost control of the vehicle; it traveled into a ditch and rolled. The victim was ejected through the rear window of the vehicle and died on scene. Claimant’s blood alcohol level was determined to be .281, two hours after the crash. Claimant pled guilty to Involuntary Manslaughter on October 9, 2012.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. Assistant United States Attorney Marie H. Ruettgers prosecuted the case.
Clairmont was immediately turned over to the custody of the US Marshal.
New Zealand Fishing Company and Chief Engineer Sentenced for Environmental Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON – A New Zealand fishing company that owned and operated the tuna fishing vessel San Nikunau, and a former chief engineer on the ship, were sentenced in federal court today for environmental crimes and obstruction of justice, announced Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney for the District of Columbia Ronald C. Machen Jr.
Sanford Ltd. was ordered to pay a criminal fine of $1.9 million and pay $500,000 in community service to the National Marine Sanctuaries Foundation for the benefit of the Fagatele Bay National Marine Sanctuary in American Samoa. The former Chief Engineer James Pogue was sentenced to 30 days in jail to be followed by two years of supervised release and ordered to pay a criminal fine of $6,000.
“Companies, like Sanford, who benefit from fishing in the oceans and selling their catch in the U.S. must comply with the laws that protect the oceans,” said Assistant Attorney General Moreno. “Today’s sentence makes clear that companies, like Sanford, who deliberately break the law by discharging oil waste into the ocean over a period of years and lie to the U.S. Coast Guard (USCG) about their activities, will be held fully accountable under U.S. laws.”
“Deliberately polluting our oceans is not only harmful to our environment– it is criminal,” said U.S. Attorney Machen. “Today’s sentence sends a clear message to owners and operators of commercial vessels who illegally dump oily waste and try to cover it up. We are committed to protecting our precious natural resources and will punish companies and individuals who ignore their obligations to our planet and future generations.”
“Some of the world's most pristine marine ecosystems are located in the South Pacific and it is important that the rule of law is regarded and respected even in the most remote areas,” said Captain Joanna Nunan, USCG Commander, Coast Guard Sector Honolulu and Captain of the Port in American Samoa. “The U.S. Coast Guard is committed to working with the maritime community to help ensure compliance with these environmental standards.”
According to the government’s evidence, in July 2011, the U.S. Coast Guard conducted a Port State Control examination when the vessel returned to Pago Pago, American Samoa. The investigation revealed that the vessel had been routinely discharging oily waste water, without first using equipment to clean the waste water, and making false entries or no entries in an oil record book that vessels are required to maintain accurately, all in violation of international and U.S. laws.
According to evidence presented at trial, Sanford Ltd. operates the fishing vessel San Nikunau, a vessel that routinely delivers tuna to a cannery in Pago Pago. Over the past five years, Sanford was paid over $24 million for tuna deliveries. Sanford Ltd. was convicted of numerous charges including conspiracy and causing the vessel to enter into the port of Pago Pago with a knowingly falsified oil record book. Sanford Ltd. was also convicted of failing to maintain an accurate oil record book and failing to disclose that required pollution prevention equipment had not been used on the vessel. Sanford Ltd. was also convicted of discharging machinery space bilge waste into the port of Pago Pago without using required pollution prevention equipment, including the oil water separator.
Pogue, of Idaho, served as the chief engineer on the vessel between 2001 and 2010. Pogue was convicted of failing to maintain an oil record book for the vessel and failing to account for transfers of machinery space bilge waste to other areas of the vessel. In addition, Pogue was convicted of intending to influence a Coast Guard investigation by falsely stating in the oil record book that required pollution prevention equipment had been used when it had not.
This case was investigated by the U.S. Coast Guard. The case was prosecuted by Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia and James E. McLeod, a Special Assistant U.S. Attorney from U.S. Coast Guard headquarters.
New Zealand Fishing Company and Chief Engineer Sentenced for Environmental Crimes and Obstruction of JusticeRead the Press Release
WASHINGTON – A New Zealand fishing company that owned and operated the tuna fishing vessel San Nikunau, and a former chief engineer on the ship, were sentenced in federal court today for environmental crimes and obstruction of justice, announced U.S. Attorney Ronald C. Machen Jr. and Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division.
Sanford Ltd. was ordered to pay a criminal fine of $1.9 million and pay $500,000 in community service to the National Marine Sanctuaries Foundation for the benefit of the Fagatele Bay National Marine Sanctuary in American Samoa. The former Chief Engineer James Pogue was sentenced to 30 days in jail to be followed by two years of supervised release and ordered to pay a criminal fine of $6,000.
“Deliberately polluting our oceans is not only harmful to our environment– it is criminal,” said U.S. Attorney Machen. “Today’s sentence sends a clear message to owners and operators of commercial vessels who illegally dump oily waste and try to cover it up. We are committed to protecting our precious natural resources and will punish companies and individuals who ignore their obligations to our planet and future generations.”
“Companies, like Sanford, who benefit from fishing in the oceans and selling their catch in the U.S. must comply with the laws that protect the oceans,” said Assistant Attorney General Moreno. “Today’s sentence makes clear that companies, like Sanford, who deliberately break the law by discharging oil waste into the ocean over a period of years and lie to the U.S. Coast Guard (USCG) about their activities, will be held fully accountable under U.S. laws.”
“Some of the world's most pristine marine ecosystems are located in the South Pacific and it is important that the rule of law is regarded and respected even in the most remote areas,” said Captain Joanna Nunan, USCG Commander, Coast Guard Sector Honolulu and Captain of the Port in American Samoa. “The U.S. Coast Guard is committed to working with the maritime community to help ensure compliance with these environmental standards.”
According to the government’s evidence, in July 2011, the U.S. Coast Guard conducted a Port State Control examination when the vessel returned to Pago Pago, American Samoa. The investigation revealed that the vessel had been routinely discharging oily waste water, without first using equipment to clean the waste water, and making false entries or no entries in an oil record book that vessels are required to maintain accurately, all in violation of international and U.S. laws.
According to evidence presented at trial, Sanford Ltd. operates the fishing vessel San Nikunau, a vessel that routinely delivers tuna to a cannery in Pago Pago. Over the past five years, Sanford was paid over $24 million for tuna deliveries. Sanford Ltd. was convicted of numerous charges including conspiracy and causing the vessel to enter into the port of Pago Pago with a knowingly falsified oil record book. Sanford Ltd. was also convicted of failing to maintain an accurate oil record book and failing to disclose that required pollution prevention equipment had not been used on the vessel. Sanford Ltd. was also convicted of discharging machinery space bilge waste into the port of Pago Pago without using required pollution prevention equipment, including the oil water separator.
Pogue, of Idaho, served as the chief engineer on the vessel between 2001 and 2010. Pogue was convicted of failing to maintain an oil record book for the vessel and failing to account for transfers of machinery space bilge waste to other areas of the vessel. In addition, Pogue was convicted of intending to influence a Coast Guard investigation by falsely stating in the oil record book that required pollution prevention equipment had been used when it had not.
This case was investigated by the U.S. Coast Guard. The case was prosecuted by Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, Assistant U.S. Attorney Frederick W. Yette of the U.S. Attorney's Office for the District of Columbia and James E. McLeod, a Special Assistant U.S. Attorney from U.S. Coast Guard headquarters.
13-008Multiple Defendants Sentenced This Week for Distribution of Cocaine and Possession of Illegal Firearms in U.S. District Court Located in Paducah, KentuckyRead the Press Release
PADUCAH, Ky. – Jessie Haskins of Christian County, Kentucky, plead guilty to possession and distribution of cocaine in United States District Court before Senior Judge Thomas B. Russell on January 10, 2013. According to the plea agreement, on December 30, 2009 and January 2010 and February 11, 2012, Haskins was recorded selling cocaine to a confidential informant. The amounts sold were 2.371 grams, 2.35 grams and 2.985 grams. Two of the transactions took place at the defendant’s home. At sentencing Haskins faces a combined maximum sentence of 90 years in prison and a $3,000,000 fine. He is scheduled for sentencing on April 24, 2013 at 11:30am in U.S. District Court.
Torrino Edwards, of Paducah, Kentucky, was sentenced to 70 months in federal prison, followed by three years of supervised release, on January 10, 2013, by Senior Judge Thomas B. Russell on January 10, 2103 for possession and distribution of crack cocaine. According to court records, Torrino admitted to selling and possessing crack cocaine on four separate occasions in November and December of 2010, and February of 2011. Sales were made in Paducah, Kentucky to a confidential informant. Edwards has two prior felony convictions in McCracken County Court.
Christopher Watkins, of Christian County, Kentucky, was sentenced to 100 months in prison followed by four years of supervised release, by Senior Judge Thomas B. Russell on January 10, 2013 for possession and distribution of cocaine and possession of a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm. According to court records, Watkins admitted to selling crack cocaine in April and May of 2009. The crack cocaine was sold to a confidential informant. The amounts were 11.8 grams, 57.6 grams and 36.5 grams of crack cocaine. Further, Watkins admitted to being a felon in possession of a firearm and selling a Bryco Arms 9mm semiautomatic pistol to a confidential informant.
Melvin Stamps Moore of Christian County, Kentucky was sentenced in U.S. District Court by Senior Judge Thomas B. Russell on January 10, 2013 to 92 months in prison followed by four years of supervised release, after pleading guilty to possession and distribution of cocaine base also known as crack cocaine. According to court records, Moore admitted in August and 2010 on two occasions that he sold crack cocaine. The sales to a confidential informant were recorded and were greater than 28 grams.
Donnell Brodie of Christian County, Kentucky was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 120 months in federal prison followed by three years of supervised release. Brodie plead guilty in United States District Court on September 18, 2012 to possession and distribution of crack cocaine on four occasions in April, 2011.
Reginald R. Buchanan, Jr. of Christian County, Kentucky plead guilty before Senior Judge Thomas B. Russell, in U.S. District Court on January 10, 2013 to a single count of possession of a firearm and ammunition by a convicted felon. At sentencing, Buchanan faces a maximum sentence of 10 years in prison and a fine of $250,000.
Brandon S. Walker was sentenced by Senior Judge Thomas B. Russell on January 10, 2013 to 51 months in federal prison followed by two years of supervised release, after entering a guilty plea to a single count federal indictment charging him with possession of a firearm by a felon. According to the court documents, on February 22, 2011, in Paducah, Kentucky, Walker possessed and sold a Glock GMBH, Model 22, .40 caliber semiautomatic pistol and 9 rounds of Smith & Wesson .40 caliber ammunition. The weapon was forfeited to the United States Government. Walker had previously been convicted of felony crimes in Jefferson County and McCracken County in 2000 and 2002.
All cases were prosecuted by Assistant United States Attorneys for the Western District of Kentucky and the cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Western Kentucky Gun Crimes, Hopkinsville Police Department, the Paducah Police Department, Christian County Sheriff’s Department and the U.S. Drug Enforcement Administration (DEA).
Mt. Carmel Accountant Indicted for 40 Counts of Alleged Fraud and Money Laundering for Financially Exploiting an Elderly VictimRead the Press Release
A Mt. Carmel resident was indicted by the federal grand jury on January 8, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Kevin C. Williams, 52, was indicted for 35 counts of wire fraud and five (5) counts of money laundering.
The Indictment alleges that Williams developed a personal relationship with an elderly Mt. Carmel resident that enabled him to exert influence over the investment and distribution of her income. The Indictment charges that Williams engaged in a lengthy scheme to defraud the victim, by stealing her money while she was alive and altering her will and trust documents so that he would stand to inherit more of her money upon her demise.
Williams is charged with wire fraud for 35 separate financial transactions related to a series of thefts where he obtained a total of $1,521,169.34 from the victim. He is alleged to have transferred her funds into his personal checking accounts, his personal savings accounts, his business accounts, and to pay his mortgage. Each count of wire fraud is punishable by not more than 20 years’ imprisonment, and/or a $250,000 fine, and not more than three years of supervised release.
The first money laundering count charges a transaction in which Williams stole $15,000 from the victim that was deposited into his personal savings account. He is alleged to have engaged in a subsequent financial transaction in which he used more than $10,000 of the proceeds of that theft to transfer money into a separate business account. This offense is punishable by not more than 10 years’ imprisonment, and/or a $250,000 fine, and not more than one year of supervised release.
The remaining counts of the Indictment charge that Williams provided the victim with phony account statements so that she would believe that her money was safely invested when in truth much of her money had been stolen. The remaining money laundering counts allege that Williams engaged in a series of financial transactions designed to deceive the victim into believing that she was receiving interest payments from investments - when no such investments really existed. The Indictment alleges that Williams misappropriated the victim’s money to buy cashier’s checks, but then he misrepresented those cashier’s checks to be the proceeds of her investments, when in truth and in fact no such investments existed. This type of money laundering is punishable by not more than 20 years’ imprisonment, and/or a $500,000 fine, or both and not more than three years of supervised release.
Williams was arrested and subsequently arraigned in US District Court on January 10, 2013, at which time the Indictment was unsealed. His trial is scheduled to begin on March 11, 2013.
The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigations, the Illinois Securities Department, and the US Department of Labor. The case is being prosecuted by Assistant United States Attorneys Steven D. Weinhoeft.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
Missouri Man Sentenced for Firearm OffenseRead the Press Release
Travis L. Garner, 26, from St. Louis, MO, was sentenced on January 11, 2013, in District Court in East St. Louis, Il, on one count of Unlawful Possession of a Firearm by a Previously Convicted Felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Garner was sentenced to 63 months in prison, three years of supervised release, fined $400 and ordered to pay $100 special assessment. He also forfeited a firearm. Garner, who had previously pled guilty, admitted that he had possessed a gun, knowing that he was a convicted felon and that it was illegal for him to have a gun.
Prior to April 5, 2012, Garner had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
The investigation was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Madison County Sheriff’s Office.
This was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission man convicted of Assault with a Dangerous Weapon was sentenced on January 10, 2013, by United States District Judge Roberto A. Lange. Byron Eagleman, age 31, was sentenced to 30 months in custody, 2 years of supervised release, and a $100 special assessment to the Victim Assistance Fund.
The conviction stems from an incident that took place on April 30, 2012, when Eagleman, who was highly intoxicated, cut and stabbed the victim while the victim attempted to prevent a fight between Eagleman and another person.
The investigation was conducted by Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Marie H. Ruettgers.
Eagleman was remanded to the custody of the United States Marshal.
Michael Page Charged with Federal Drug ViolationRead the Press Release
MICHAEL PAGE, age 36, a resident of Slidell, Louisiana, was charged today in a one-count indictment by a Federal Grand Jury for conspiracy to distribute and possess with intent to distribute cocaine base (“crack”), announced United States Attorney Dana J. Boente.
According to court documents, PAGE conspired with others, known and unknown from February of 2010 until September of 2010 to distribute and possess with intent to distribute at least 28 grams of crack cocaine.
If convicted of this offense, PAGE faces a maximum of 40 years of incarceration, a maximum fine of $5,000,000, and four years of supervised release.
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.This case was initiated by the Narcotics Unit of the St. Tammany Parish Sheriff’s Office and investigated with assistance from the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Edward J. Rivera.
(Download Indictment )
Maryland Man Sentenced to Eight Years in Prison in Robbery That Led to Victim’s Death-Victim, Stabbed in the Attack, Died Weeks Later-Read the Press Release
WASHINGTON – Reco Coates, 22, of Upper Marlboro, Md., was sentenced today to eight years in prison after earlier pleading guilty to voluntary manslaughter in the death of a man following a robbery in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coates pled guilty in November 2012 in the Superior Court of the District of Columbia. He was sentenced by the Honorable William M. Jackson. Following completion of his prison term, Coates will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 12, 2007, at about 5:30 p.m., Coates and others set out to rob the victim, Anthony Collins, 39, in an apartment in the 100 block of 34th Street SE. The robbers, including Coates, knocked on the front door and claimed to want to buy illegal drugs from Mr. Collins. When Mr. Collins opened the door, one robber shoved a gun through the doorway and said words to the effect of, “You know what time it is.”
Mr. Collins then attempted to slam the door shut and barricade it with his body as he was being stabbed by the robbers on the other side. The robbers gained entry into the apartment, stabbed and cut Mr. Collins with knives and stole crack cocaine before fleeing.
Mr. Collins was transported by ambulance to a hospital. During the course of his treatment, Mr. Collins’s condition deteriorated. After lapsing into a coma, Mr. Collins died in the hospital on Dec. 28, 2007. A subsequent autopsy determined that the cause of death was complications from the stab wound to the chest and that the manner of death was homicide.
After Mr. Collins’s death, Coates gave a statement to the Metropolitan Police Department (MPD) in which he admitted being one of the robbers who participated in the crime. During the litigation, he disavowed these statements.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives and officers of the Criminal Investigations Division and the Sixth District of the MPD. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sharad Khandelwal (now with the U.S. Attorney’s Office for the Southern District of Texas); Victim Witness Advocates Tamara Ince and Marcia Rinker; Paralegal Specialists Kelly Blakeney and Marian Russell; Librarian Lisa D. Kosow; Kimberly Smith and Leif Hickling of the Litigation Technology Unit, and Interns Roland Achtau and James Perkins. Finally, U.S. Attorney Machen praised the work of Assistant U.S. Attorneys Shana Fulton and Deputy Chief Michelle Jackson, both of the Homicide Section, who prosecuted the case.
13-007Manhattan U.S. Attorney Announces Charges Against 16 Alleged Members of Bronx Armed Robbery Crew That Impersonated Police OfficersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian R. Crowell, the Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Raymond W. Kelly, the Commissioner of the New York City Police Department (“NYPD”), and Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), today announced the filing of a Complaint charging 16 alleged members of a Bronx, New York, armed robbery crew who impersonated police officers. The defendants were charged with robbery conspiracy, narcotics conspiracy, and firearms offenses. All 16 of the defendants, who were arrested Wednesday night, were presented yesterday in Manhattan federal court. In connection with the arrests, federal agents seized, among other things, five loaded semi-automatic firearms and a loaded pistol, .45 caliber and .380 caliber ammunition, shirts bearing the word “Police,” tactical gear, and a hydraulic ram similar to those used by law enforcement to break down doors.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, this was a marauding gang of armed and violent thieves in the Bronx who masqueraded as police officers in order to trick their narcotics-dealing targets so they could steal their drugs and their cash. This is the latest in a string of multi-defendant arrests in the Bronx and Manhattan this week that underscore our commitment to making the streets in this district safer for their residents.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “While most New Yorkers were sleeping last night, our Drug Enforcement Task Force arrested and removed alleged members of an extremely violent, armed and sophisticated drug gang. They were the drug world’s version of a James Bond style robbery crew, utilizing fake police equipment, law enforcement badges, replica vehicles complete with emergency lighting and outfitted with complex traps to hide illegal and loaded firearms. As alleged, this crew was comprised of sixteen members who tried to conceal themselves as cops to rob, steal and plunder. This is yet another investigation epitomizing the extreme violence that surrounds drug trafficking and I commend the men and women of our task force from the NYPD, the NYSP, and the DEA for steadfastly wading into harm’s way to protect our citizens.”
NYPD Commissioner Raymond W. Kelly said: “The NYPD and federal partners will continue to crack down on drug dealers and guns in the Bronx and elsewhere, and the NYPD Internal Affairs Bureau will thoroughly investigate any instances of alleged police impersonation. The impersonators will be pursued and prosecuted.”
NYSP Superintendent Joseph A. D’Amico said: “The collaborative efforts of the Drug Enforcement Task Force, including the New York State Police, the Drug Enforcement Administration, and the New York City Police Department, have resulted in the arrests of a number of dangerous individuals. We will not tolerate this type of activity in our state. These individuals allegedly masqueraded as police officers with the intent to commit crimes. Ensuring the public’s continued safety is our ultimate goal. By arresting the alleged members of this dangerous drug gang, our streets are now safer.”
According to the allegations in the Complaint filed yesterday in Manhattan federal court:
On December 17, 2012, JAVION CAMACHO met with a confidential informant (“CI-1”) working at the direction of the DEA. During that meeting, CI-1 told JAVION CAMACHO that a shipment of heroin was going to be arriving in New York City after the holidays, and that he wanted him to use force to steal the shipment. CAMACHO told CI-1 he had a robbery crew of police impersonators who would be able to carry out the robbery for him. During subsequent meetings CAMACHO and his brother JULIO CAMACHO, among others, expressed their interest in robbing the group of drug traffickers and their stash house, which the defendants believed, based on representations made by CI-1, would contain at least 20 kilograms of heroin.
On the evening of January 9, 2013, the defendants – JAVION and JULIO CAMACHO, ALEX CESPEDES, GARY SANCHEZ, MANUEL PIMENTEO, DOMINGO VASQUEZ, BENJAMIN JIMINEZ, RAFAEL HUERTA, OSCAR NORIEGA, VICTOR JOSE GOMEZ, JOSHUA ROMAN, VICTOR E. MORAL, RAMON JIMINEZ, ALI A. HUSAIN, LOUIS BORRERO, and OLIVER F. FLORES – assembled at a location in the Bronx, and then traveled in tandem in five different vehicles to a location identified by CI-1 where they planned to use force in order to rob the purported heroin traffickers.
Upon arriving at the specified location, the defendants were placed under arrest and their vehicles were searched. Two of the vehicles contained secret compartments, or “traps,” designed to conceal contraband. One of the vehicles contained a mechanized device that, when operated by the vehicle’s driver, would cover the vehicle’s license plate with a steel plate. The vehicle searches conducted at the time of arrest resulted in the seizure of six loaded firearms, including a .45 caliber High Point, two .380 caliber semi-automatic firearms for which the make has not been identified, a .9 mm Beretta, a .45 caliber Glock, and a silver pistol. The defendants were also found to be in possession of: shirts bearing the word “Police;” tactical vests similar to those used by law enforcement; a hydraulic ram similar to those used by law enforcement to break down doors; a police scanner; handcuffs; zip-ties similar to those used by law enforcement to handcuff individuals; bolt-cutters; walkie-talkies; a purported law enforcement shield; a baseball bat; a crowbar; ski masks; gloves; GPS units similar to those used by law enforcement to track suspects; and a “rabbit pump” which is a tool used by law enforcement to break down doors.
A chart containing the ages, residency information, and charges against the defendants, as well as the maximum and mandatory minimum penalties that they face, is attached.
Mr. Bharara praised the DEA, the NYPD, and the NYSP for their work in the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorney Rachel Maimin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)U.S. v. Javion Camacho, et al. Complaint
Manassas Woman Indicted After Allegedly Purchasing More Than 25 Firearms in 15 DaysRead the Press Release
Pistol Purchased on Nov. 17, 2012, Allegedly Recovered on Nov. 30, 2012 During Arrest of Suspected Narcotics Trafficker
ALEXANDRIA, Va. – Kimberly Yvette Dinkins, 44, of Manassas, Va., has been indicted by a federal grand jury accused of purchasing more than 25 firearms to illegally sell to others, along with lying to federal agents about those purchases.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and James Newman, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the indictment was returned.
“Kimberly Dinkins is accused of purchasing a high volume of handguns in 15 days, at least one of which made it into the hands of a suspected drug trafficker,” said U.S. Attorney MacBride. “Illegal gun dealing is a serious crime, and we applaud the ATF for their quick work in putting this case together.”“When offenders indiscriminately put guns on the streets that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Acting SAC Newman. “ATF’s mission and priority is to deny criminals access to firearms and to protect the rights of law abiding citizens.”
On Jan. 10, 2013, Dinkins was indicted and charged with dealing firearms without a license and making a materially false statement, which each carry a maximum penalty of five years in prison, if convicted. She was previously charged through a criminal complaint and arrested on Dec. 13, 2012, and she has remained in federal custody since her arrest pending further court action.
According to court records, Dinkins does not have a license to deal in firearms. From Nov. 17, 2012, through Dec. 1, 2012, she attended three Virginia gun shows on three consecutive weekends and allegedly purchased more than 25 semi-automatic handguns from dealers. One of the firearms allegedly purchased by Dinkins at a gun show in Chantilly, Va., the weekend of Nov. 16-18, 2012, was recovered during the arrest of a suspected narcotics trafficker on Nov. 30, 2012 in Prince George’s County, Md.
The indictment alleges that during an interview on Dec. 3, 2012, Dinkins falsely stated that she had sold all of the firearms she had purchased at the three gun shows, despite still being in possession of some of the firearms.
This investigation is being conducted by ATF’s Washington Field Division. Special Assistant United States Attorney L. Rush Atkinson and Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Pleads Guilty to Impeding and Intimidating ProsectorRead the Press Release
A Minnesota man who interfered with a federal prosecutor while engaged in his official duties pled guilty on January 10, 2013, in federal court in Davenport.Timothy Demuth, age 51, from Plymouth, Minnesota, pled guilty to one count of opposing, impeding, intimidating, and interfering with a federal employee while engaged in official duties.
At the plea hearing, Demuth admitted that on February 14, 2011, he was present in a federal courtroom in Davenport, Iowa, at the time sentence was imposed upon his son, Scott Demuth, in Southern District of Iowa criminal case number 09-CR-00117. The Court imposed a six-month term of imprisonment upon Demuth’s son. The Court also ordered Demuth’s son to be immediately remanded to the custody of the United States Marshal. Demuth was surprised and upset that his son was not permitted to self-surrender. Demuth walked out of the of the courtroom. Court was then adjourned, and Demuth began to re-enter the courtroom. Demuth admitted that, as he re-entered the courtroom, he bumped shoulders with the prosecutor, and then intentionally stepped to the side, directly in front of the prosecutor, thereby opposing, impeding, intimidating, and interfering with the prosecutor as he attempted to exit the courtroom. An FBI agent then intervened to escort Demuth from the courtroom.
Sentencing before United States District Court Judge John A. Jarvey has been set for May 16, 2013, at 10:30 am in Davenport, Iowa. Demuth remains free on bond previously set pending sentencing. Demuth faces a possible maximum sentence of not more than one year imprisonment without the possibility of parole; a $100,000 fine, $25 in special assessments, and up to one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by the United States Marshals Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-00105.
Lummi Nation Tribal Members Sentenced to Prison for Stabbing DeathRead the Press Release
Two Lummi Nation members who fought with a third Tribal member, with one of them stabbing him to death, were sentenced today in U.S. District Court in Seattle to prison terms for involuntary manslaughter, announced U.S. Attorney Jenny A. Durkan. JOHNATHAN CASEY PHAIR, 25, was sentenced to five years in prison and three years of supervised release, and DEZI-REY THOMAS LOUIE, 22, was sentenced to four years in prison and three years of supervised release. The two pleaded guilty in September 2012 to the December 17, 2011, stabbing death of Lamar Felipe James at a home on Lummi Tribal land. At today’s sentencing U.S. District Judge Richard A. Jones said, “This was a brutal and devastating crime. And what caused both of you to be involved? Drugs.”
According to the plea agreements, LOUIE and PHAIR went to the home on Lummi Tribal land to purchase drugs. LOUIE brought some electronics to the house to sell or exchange for drugs. LOUIE met with James in a back room of the home. The two men got into a physical fight. PHAIR rushed into the room with a butcher knife and stabbed James multiple times. One of the wounds severed an artery. PHAIR and LOUIE ignored James’ serious wounds and failed to call for help. Instead they fled the home and tried to conceal their guilt by burning their clothes. PHAIR was arrested three days after the attack. LOUIE was arrested on December 24, 2011.
The case was investigated by the Lummi Police and the FBI. The case was prosecuted by Assistant United States Attorneys Susan Roe and J. Tate London. Ms. Roe and Mr. London serve as Tribal Liaisons for the United States Attorney’s Office.
Lower Brule Man Sentenced for Failure to Register as A Sex Offender and AssaultRead the Press Release
US Attorney Brendan V. Johnson announced that a Lower Brule man convicted of Failure to Register as a Sex Offender and Assault by Striking, Beating and Wounding was sentenced on January 7, 2013, by US District Judge Roberto A. Lange.
Glen Eagle Thunder, age 38, was sentenced to 17 months of imprisonment and 5 years of supervised release on the failure to register charge and 1 month on the assault charge. The sentences are to be served consecutively. Eagle Thunder was on supervised released when he committed the above offenses and was sentenced to an additional 11 months in custody upon revocation to be served concurrently. He is also to pay $110 to the Victim Assistance Fund.
On or about June 22, 2012, Eagle Thunder consumed alcohol and assaulted a family member. He was released on bond and absconded, failing to update his sex offender registration as required. He pled guilty to the charges on October 10, 2012.
The investigation was conducted by the Federal Bureau of Investigation and the US Marshal’s Service. Assistant US Attorney Meghan N. Dilges prosecuted the case.
Eagle Thunder was immediately turned over to the custody of the US Marshal.
Lower Brule Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
US Attorney Brendan V. Johnson announced that Douglas LaRoche, age 44, of Lower Brule, appeared before US District Judge Roberto A. Lange on January 9, 2013, and pled guilty to the Superseding Information that charged him with Abusive Sexual Contact. The maximum penalty upon conviction is 3 years of imprisonment, $250,000 fine, or both.
The charge stems from an incident when LaRoche knowingly engaged in and attempted to engage in sexual contact with someone, who at the time was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating unwillingness to engage in the sexual contact.
The investigation was conducted by the Federal Bureau of Investigation. Assistant US Attorney Meghan N. Dilges is prosecuting the case. LaRoche was remanded to the custody of the US Marshal pending sentencing. A sentencing date has been set for April 1, 2013.
Local Attorney Indicted for Bank FraudRead the Press Release
Memphis, TN – Sharon Anderson, 49, of Oakland, Tennessee, has been charged in a one-count indictment charging bank fraud, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. Anderson, an attorney with offices in Cordova, was arrested this morning and is expected to be released this afternoon on bond after an appearance before U.S. Magistrate Judge Diane K. Vescovo.
# # # #
According to the indictment, Anderson defrauded First Citizens Bank in connection with a mortgage loan for the purchase of property in Memphis by submitting a fraudulent settlement statement to the bank. At the closing of the sale, Anderson disbursed $65,000 to the seller of the property and $8,950.78 to the buyer of the property. She prepared a settlement statement that she provided to the seller that reflected these disbursements based on a sales price of $97,500, a First Citizens Bank loan of $78,000, and a $31,126.08 “seller second” mortgage from the seller to the buyer.
However, Anderson prepared a different settlement statement for First Citizens Bank. The settlement statement sent to First Citizens Bank fraudulently represented a $96,126.08 disbursement to the seller and represented that the buyer would pay $22,175.30 at the closing. The settlement statement submitted to First Citizens Bank fraudulently indicated that the buyer was investing money to purchase the property when, in fact, he obtained a portion of the loan proceeds as cash out of the closing. The “second seller” mortgage listed on the settlement statement provided to the seller was a fiction to divert funds from the seller to the buyer.
This investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney John Fabian represents the government.Justice Department Settles Lawsuit for Violation of the FACE ActRead the Press Release
The Justice Department announced today that a settlement has been reached with David Hamilton for violations of the Freedom of Access to Clinic Entrances (FACE) Act. Under the terms of the agreement Hamilton will pay $2,500 in compensatory damages to the victim of Hamilton’s use of force outside the EMW Women’s Surgical Center in Louisville, Ky. The United States and Hamilton came to the agreement at a settlement conference held Jan. 7, 2013, in Louisville. On Jan. 10, 2013, the United States sent Hamilton’s attorney a joint stipulation of dismissal to be filed with the court as soon as Hamilton tenders payment.
The agreement settles a lawsuit the United States filed against Hamilton for his alleged violation of the FACE Act, which makes it unlawful for any person to use force to intentionally injure, intimidate, or interfere with, or attempt to injure, intimidate, or interfere with, anyone because that person is or has been obtaining or providing reproductive health services. The United States’ complaint alleged that on Jan. 30, 2010, Hamilton, a regular protester, grabbed and pushed a volunteer escort at the center. At the time of the incident, the victim was attempting to escort a patient to the front entrance of the center. The complaint alleged that Hamilton’s actions constituted a use of force that intimidated and interfered with individuals who were attempting to obtain and provide reproductive health services at the center.
The FACE Act limits statutory compensatory damages to $5,000. The $2,500 Hamilton agreed to pay will go to the victim in this matter per the terms of the statute. Hamilton no longer resides in the Louisville area.
“It is absolutely crucial that those individuals who desire reproductive health services be able to obtain them in an environment that is free of interference, intimidation and fear,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “By continuing to enforce the Freedom of Access to Clinic Entrances Act, we are helping to ensure that they are able to do so.”
This civil action was filed by Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorneys Aaron Fleisher and Jack Morse.
Justice Department Seeks to Shut Down Florida Tax PreparerRead the Press Release
The Justice Department announced today that it has sued a Kissimmee, Fla., tax return preparer, seeking to bar him permanently from preparing federal tax returns for others. The civil injunction suit, filed in Orlando, Fla., with the U.S. District Court for the Middle District of Florida, alleges that Carlos A. Cabrera and his business – Cabrera Financial Group – prepare federal income tax returns for customers that claim improper losses for non-existent businesses and fabricated education credits in order to unlawfully understate customers’ tax liabilities.
According to the civil injunction complaint, Cabrera prepared over 17,000 tax returns for 2009 and 2010, with an average tax understatement of $4,222 per return for returns the Internal Revenue Service examined. The government suit alleges that the total losses to the U.S. Treasury from Cabrera’s misconduct could be tens of millions of dollars for those two years alone.
This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Over the last decade, the Justice Department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about these cases and the Justice Department’s Tax Division can be found on the Department’s web site.
Related Materials:
United States v. Carlos A. Cabrera
Complaint for Permanent Injunction and Other Relief (PDF)
Justice Department Reaches Agreement to Protect Rights of Military and Overseas Voters in IllinoisRead the Press Release
The Justice Department announced that yesterday it reached an agreement with Illinois officials to help ensure that military service members, their family members and other U.S. citizens living overseas have an opportunity to participate fully in the upcoming Feb. 26, 2013, special primary election, and the April 9, 2013, special election to fill a vacated seat in the state’s 2nd Congressional District. The agreement is necessary to ensure Illinois’s compliance with the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) as amended by the 2009 Military and Overseas Voter Empowerment Act (MOVE Act).
The agreement, filed yesterday evening, which must be approved by the federal district court in Chicago, requires that by Jan. 15, 2013, the state will ensure expedited transmittal of ballots for the special primary election to UOCAVA voters who have requested them by that date. The agreement also requires that by Jan. 31, 2013, the state will resolve any candidate petition challenges and ensure expedited notice to UOCAVA voters of the final list of candidates for the special primary election. The voted ballots must be postmarked by Feb. 25, 2013, and received by March 6, 2013, to be counted in the special primary election.
The agreement also requires that by March 8, 2013, the state will ensure expedited transmittal of ballots for the April 9, 2013 special election to all UOCAVA voters who have requested them. Under Illinois law, the voted ballots must be postmarked by April 8, 2013, and received by April 23, 2013 to be counted in the special election.
In addition, for both the special primary election and the special election, the state will provide all UOCAVA voters the option of returning their marked ballots by email, fax or express mail at no expense to the voter.
“This agreement reflects this department’s continued and resolute commitment to ensure that members of our armed forces, their families and overseas citizens are offered a full and meaningful opportunity to vote in all federal elections, including special elections scheduled to fill vacated seats,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “I am pleased that we are able to reach this agreement with Illinois officials, which will ensure that these voters can fully participate in the state’s upcoming special primary election and special election.”
The UOCAVA requires states to allow uniformed service voters, serving both overseas and within the United States, and their families and overseas citizens to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made broad amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to voters covered under UOCAVA, by mail or electronically at the voter’s option, no later than 45 days before federal elections.
Under the terms of the agreement, the state will also provide detailed reports to the department concerning the transmission of ballots for the special primary election and special election. The state will also take actions as are necessary to assure that UOCAVA voters shall have a fair and reasonable opportunity to participate in future federal elections, including actions needed to fully remedy any potential UOCAVA violations arising from Illinois law governing the state’s special election calendar.
More information about UOCAVA and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/misc/activ_uoc.php . Please report any complaints to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Related Materials:
Illinois Complaint
Illinois Proposed Consent DecreeJeffery W. Larson 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 10, 2013, before Chief U.S. District Judge Richard F. Cebull, JEFFERY W. LARSON, a 46-year-old resident of Billings, was sentenced to a term of:
- Prison: 84 months
- Special Assessment: $100.00
- Restitution: $2,000.00
- Supervised Release: 10 years
LARSON was sentenced in connection with his guilty plea to receipt of child pornography.
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:
Law enforcement officers were investigating allegations of child pornography access by users utilizing the peer-to-peer file sharing network Gigatribe. One investigation involved a person in Billings who had child pornography available to share via the file sharing program. An undercover agent downloaded a number of child pornography files from that person in early January 2012. A search warrant was obtained for the residence and served on January 18, 2012.
LARSON was one of the occupants of the residence. When questioned, LARSON admitted that he used the peer-to-peer file sharing program Gigatribe to receive and possess thousands of child pornography videos and images. He detailed the search terms he used to find child pornography, how he saved it to various computers and other equipment, and how he had been doing so for a lengthy period of time.
Agents seized various computer equipment at LARSON's residence. A forensic examination revealed thousands of images and movies of child pornography that LARSON had received via the Internet for years and continuing until the equipment was seized. LARSON possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LARSON will likely serve all of the time imposed by the court. In the federal system, LARSON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation, the Billings Police Department, and the Internet Crimes Against Children (ICAC) Task Force.
Jackson Men Indicted for Illegal Firearm PossessionRead the Press Release
Jackson, TN – Kirby Ross, 20, of Jackson, TN, and Demario Harris, 29, of Jackson, TN, were each indicted by a federal grand jury for firearms related charges, announced U.S. Attorney Edward L. Stanton III.
Ross was indicted on December 17, 2012 for a violation of 18 U.S.C. § 922(j), possession of a stolen firearm. If convicted, he faces up to 10 years in prison and three years supervised release. Harris was indicted on December 17, 2012 for a violation of 18 U.S.C. § 922(k), possession of a firearm with an obliterated serial number. If convicted he faces up to five years in prison and three years supervised release.
On October 5, 2012, Ross and Harris were approached by investigators with the Tennessee Bureau of Investigation and the Jackson Police Department outside a residence in Jackson, Tennessee, on suspicion of drug charges. Ross was found to be in possession of a Glock, Model 22, .40 caliber semi-automatic pistol that had been reported as stolen. Harris was found to be in possession of a Ruger, Model Security Six .357 revolver with an obliterated serial number.
Ross is scheduled for an initial appearance before U.S. District Judge J. Daniel Breen at 2:00 p.m., Friday, January 11, 2013.
The case is being investigated by the Jackson Police Department, the Tennessee Bureau of Investigation, and the Multijurisdictional Violent Crime and Gang Task Force. Assistant U.S. Attorney Vic Ivy is prosecuting the case.
# # # #Identity Thief Sentenced to 2 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge Virginia M. Hernandez Covington today sentenced Linval Thompson a/k/a Cory Howard a/k/a Miguel Cruz to 24 months in federal prison for aggravated identity theft. The court also sentenced Thompson to a one-year term of supervised release, upon his release from prison. Thompson (22), an illegal alien from Jamaica, pleaded guilty to the charges in October 2012. He will be deported to Jamaica following his sentence of incarceration.
According to information contained in court documents, on October 28, 2011, Thompson used the identity and Social Security number of an innocent victim to open a bank account at the Wells Fargo Bank. He subsequently used that bank account to deposit and withdraw money as he needed it.
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), along with the Tampa Police Department. It was prosecuted by Assistant United States Attorney Jay L. Hoffer of the Tampa Division.
Idaho Businessman Convicted of Income Tax EvasionRead the Press Release
Assistant Attorney General for the Tax Division Kathryn Keneally, U.S. Attorney for the District of Idaho Wendy J. Olson and the Internal Revenue Service (IRS) announced today that a Coeur d’Alene, Idaho, jury convicted Michael George Fitzpatrick, 51, of Hope, Idaho, of two counts of income tax evasion after a four-day trial before U.S. District Judge Larry A. Burns. In September 2012, Fitzpatrick was tried on four tax fraud counts. That jury rendered guilty verdicts on two counts of failure-to-file 2004 corporate income tax returns but was unable to reach verdicts on the tax evasion counts. The verdict today was the result of a second trial on those two charges. Fitzpatrick was remanded into custody immediately.
According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004 the business’s gross sales exceeded $9 million, operating under the names Dynamic Solutions Inc. (DSI) and NAES. The evidence proved Fitzpatrick last filed an individual income tax return in 1996. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of almost $1.4 million.
The evidence at trial established that Fitzpatrick sent over $5 million offshore to WWIN, a “warehouse” bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers. During a two-year period, Fitzpatrick used his offshore funds to purchase his personal residence and two four-unit apartment buildings in northern Idaho, with a combined cost of over $700,000. Fitzpatrick also wired $114,980 from his offshore bank accounts to the Bellagio Casino during nine trips to Las Vegas.
Sentencing is scheduled for May 13, 2013. The maximum penalty Fitzpatrick faces on each count of tax evasion is five years in prison and a $250,000 fine. The two convictions for failure to file corporate income tax returns each carry a maximum penalty of one year in prison and a $100,000 fine.
“Paying income tax is a solemn obligation of citizenship,” said Olson. “Those who hide income and evade taxes by sending money off-shore, undermine our democracy. This verdict sends a strong message that those who seek to avoid their tax responsibilities will be punished to the fullest extent of the law.”
“This verdict should send a clear message, it’s imperative for all Americans to pay their share of taxes and those who commit income tax evasion will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.
The case was investigated by special agents from the Boise, Idaho, office of IRS-Criminal Investigation and prosecuted by Tax Division Trial Attorneys Lori A. Hendrickson, Christopher P. O’Donnell and Erin S. Mellen, with valuable support from the U.S. Attorney’s Offices in Boise and Coeur d’Alene.
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.
Idaho Businessman Convicted of Income Tax EvasionRead the Press Release
WASHINGTON – U.S. Attorney Wendy J. Olson, Assistant Attorney General for the Tax Division Kathryn Keneally, and Internal Revenue Service (IRS) announced today that a Coeur d’Alene, Idaho, jury convicted Michael George Fitzpatrick, 51, of Hope, Idaho, of two counts of income tax evasion after a four-day trial before U.S. District Judge Larry A. Burns. In September 2012, Fitzpatrick was tried on four tax fraud counts. That jury rendered guilty verdicts on two counts of failure-to-file 2004 corporate income tax returns but was unable to reach verdicts on the tax evasion counts. The verdict today was the result of a second trial on those two charges. Fitzpatrick was remanded into custody immediately.
According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004 the business’s gross sales exceeded $9 million, operating under the names Dynamic Solutions, Inc. (DSI) and NAES. The evidence proved Fitzpatrick last filed an individual income tax return in 1996. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of almost $1.4 million.
The evidence at trial established that Fitzpatrick sent over $5 million offshore to WWIN, a “warehouse” bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers. During a two-year period, Fitzpatrick used his offshore funds to purchase his personal residence and two four-unit apartment buildings in northern Idaho, with a combined cost of over $700,000. Fitzpatrick also wired $114,980 from his offshore bank accounts to the Bellagio Casino during nine trips to Las Vegas, Nevada.
Sentencing is scheduled for May 13, 2013. The maximum penalty Fitzpatrick faces on each count of tax evasion is five years in prison and a $250,000 fine. The two convictions for failure to file corporate income tax returns each carry a maximum penalty of one year in prison and a $100,000 fine.
“Paying income tax is a solemn obligation of citizenship,” said Olson. “Those who hide income and evade taxes by sending money off-shore undermine our democracy. This verdict sends a strong message that those who seek to avoid their tax responsibilities will be punished to the fullest extent of the law.”
“This verdict should send a clear message, it’s imperative for all Americans to pay their share of taxes and those who commit income tax evasion will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.
The case was investigated by special agents from the Boise, Idaho, office of IRS Criminal Investigation and prosecuted by Tax Division Trial Attorneys Lori A. Hendrickson, Christopher P. O’Donnell, and Erin S. Mellen, with valuable support from the United States Attorney’s Offices in Boise and Coeur d’Alene.
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.
Halfway House Escapee Sent Back to Prison for Failing to Return When OrderedRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday afternoon, United States District Judge Louise W. Flanagan sentenced BENNIE JOSEPH DUNLAP, III, 26, of Raleigh, to 21 months in prison, followed by a 3 year term of supervised release, on a single charge of Escape in violation of Title 18, United States Code, Section 751.
Pursuant to DUNLAP’s guilty plea and other evidence in the case, in November of 2011 a federal judge sentenced DUNLAP on a charge for possession of a firearm while being a convicted felon. As a part of the sentence, DUNLAP was ordered to serve a term of imprisonment in the custody of the United States Bureau of Prisons (BOP).
Under its own rules and policies, and at its discretion, the BOP may transfer an inmate to a halfway house to serve a portion of the term of imprisonment ordered by the court. Service of a term of incarceration at a halfway house is a privilege. Although inmates are given limited privileges to leave a halfway house to, among other things, seek gainful employment and obtain medical care, inmates are at all times in the custody and control of the BOP through the halfway house staff. When authorized to leave, inmates may only be away from the halfway house for the duration of time authorized by the halfway house. Moreover, when authorized to leave, inmates must only go to the authorized location, and then promptly return to the halfway house as instructed.
The evidence showed that on June 21, 2012, the BOP transferred DUNLAP to the halfway house known as Community Corrections Center, Cavalcorp Ltd. (hereinafter “Cavalcorp”), located at 312 Tryon Road in Raleigh, North Carolina. Upon transfer to Cavalcorp, DUNLAP was advised orally and in a written document as follows:
This is your official notification that should you be unaccountable at work, pass, or any other approved site, or if you leave the center without permission, you will be charged with escape.
Contrary to popular belief by the inmate population, you DO NOT HAVE 72 HOURS TO TURN YOURSELF IN before escape charges are filed.
Criminal Escape charges may be pursued with the US Attorney’s Office in each and every case.DUNLAP executed a document containing this official notification. Above DUNLAP’s signature the document also stated, “I have read the above information and fully understand that if I leave the center without permission, or am unaccountable at any time, I can be charged criminally with Escape. I also understand that there is no grace period to turn myself back in to avoid being charged.”
The evidence showed that on June 21, 2012, DUNLAP was also advised orally and in writing of the contents of an “Acknowledgment of Custody” form. This form advised DUNLAP that, “The willful failure of a prisoner to remain within the extended limits of his confinement or to return within the time prescribed to an institution or facility designated by the Attorney General shall be deemed an escape from custody of the Attorney General...” DUNLAP executed the acknowledgment under the section which stated:
I understand that, while at CAVALCORP LTD. COMPREHENSIVE SANCTION CENTER, I am in the custody of the Attorney General of the United States / Bureau of Prisons. I further understand that leaving the facility without permission from the staff shall be deemed an escape from the custody of the Attorney General. I also understand that leaving my place of employment or training without permission from the staff, or failure to return to the facility within the time prescribed shall be deemed an escape from the custody of the Attorney General of the United States supervision.The evidence further showed that on July 31, 2012 at approximately 7:40 am, DUNLAP signed out, and was authorized to leave Cavalcorp for the limited purpose of going to Wake Medical Center. DUNLAP was instructed that while away he was to be in telephone contact with Cavalcorp every 2 hours. DUNLAP was to immediately return to Cavalcorp after visiting Wake Medical Center.
DUNLAP failed to report his whereabouts to Cavalcorp by phone as instructed, and was unaccountable from 7:40 a.m until approximately 3:00 pm. At approximately 3:00 pm on July 31, 2012, DUNLAP called Cavalcorp and advised that he was not at Wake Medical Center. Cavalcorp staff ordered DUNLAP to immediately return to the halfway house. DUNLAP did not return as instructed. At approximately 4:15 pm on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed. At approximately 5:30 on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed.
DUNLAP made no contact with Cavalcorp for two full days between the evening of July 31, 2012 and August 2, 2012. At 6:15 pm on August 2, 2012 DUNLAP called and was again ordered to immediately return to Cavalcorp. Later that night at 10:54 pm, DUNLAP returned to Cavalcorp, and was arrested shortly thereafter.
At the sentencing on January 10, 2013, DUNLAP faced an advisory United States Sentencing Guideline range of 6 to 12 months in prison. Upon motion of the United States, however, the Court upwardly departed and varied to a sentence of 21 months in prison, citing the inadequacy of the defendant’s criminal history category and the need to deter DUNLAP and others from this type of offense. Investigation of this case was conducted by the United States Marshals Service. Assistant United States Attorney William M. Gilmore represented the United States.
Grand Junction Real Estate Developers Arrested for Bank FraudRead the Press Release
DENVER – Franklin Thad Harris, age 57, and Merlin D. Unruh, age 51, both of Grand Junction, Colorado, were arrested today in Grand Junction for a bank fraud scheme, the United States Attorney’s Office, the Federal Bureau of Investigation and IRS Criminal Investigation announced. Harris and Unruh were indicted by a federal grand jury in Denver on January 8, 2013, for charges of bank fraud and money laundering. The indicted remained under seal until their arrest. There initial appearance took place in Grand Junction earlier today, where they were advised of their rights. The two were released on bond, and are due back in court in Grand Junction on Tuesday, January 15, 2013 at 3:00 p.m. for arraignment.
According to the indictment, on or about October 2007 through December 2008, Harris and Unruh executed a scheme to defraud First National Bank of the Rockies (FNBR) by using false and fraudulent representations and documentation, which were material to FNBR’s decision to approve requests to withdraw funds for construction expenses. Harris engaged primarily in the business of constructing housing developments throughout the Grand Junction area. Unruh was also in the construction business and was utilized as a general contractor for projects with Harris.
Chatfield was a residential housing subdivision project developed by Harris and Unruh. Chatfield IV was a proposed fourth section of the Chatfield subdivision, to be constructed on 11.75 acres located at 3152 E Road, Grand Junction, Colorado. Harris had another project named Thunder Valley, a proposed residential subdivision with single-family detached units, to be constructed on 12.9 acres at 3079 F ½ Road, Grand Junction, Colorado. TDSM was a Colorado real estate Company owned and operated by Harris and Unruh.
On October 19, 2007, TDSM obtained a draw-down line of credit loan in the amount of $2,050,000.00, for the purpose of developing Chatfield IV. Over the course of the Chatfield IV loan, from October 2007 through July 2008, Harris and Unruh made five draw requests, resulting in a total disbursement by FNBR of $1,524,112.83. On or about April 4, 2008, TDSM obtained a draw-down line of credit loan in the amount of $2,625,000.00 for the purpose of developing Thunder Valley. Over the course of the Thunder Valley I Loan, from April 2006 through December 2008, Harris and Unruh made nine draw requests, resulting in a total disbursement by FNBR of $2,290,474.48.
For the purpose of executing and facilitating their fraud scheme, Harris, Unruh and others committed acts and made material misrepresentations and omissions to FNBR including submitting: false and fraudulent information, altered invoices, duplicate invoices and false information concerning costs incurred for work done. Harris and Unruh knowingly and fraudulently misrepresented to FNBR the nature of the work performed and progress made at the Chatfield and Thunder Valley development sites when in fact they diverted Chatfield IV and Thunder Valley I Loan proceeds for their personal use. Furthermore, they conducted financial transactions to conceal and disguise the use and control of the construction draw proceeds obtained; and when confronted by representatives of FNBR about their fraudulent draw requests, Harris and Unruh either knowingly provided false information or refused to provide any information or supporting documentation.
“Individuals who defraud banks impose costs on all Americans who use our banking system, and will be held accountable,” said U.S. Attorney John Walsh. “In this case, the defendants lined their pockets claiming to access their line of credit to develop residential housing.”
“The FBI will continue to work in collaboration with our law enforcement partners to protect financial institutions against individuals who fraudulently exploit banking practices in furtherance of their criminal schemes,” said FBI Denver Special Agent in Charge James Yacone.
“IRS Criminal Investigation will work diligently with our law enforcement counterparts to insure bank fraud is vigorously investigated and brought to justice, said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Harris and Unruh were each charged with thirty-five counts of bank fraud, six counts of money laundering and one count of conspiracy to commit money laundering. If convicted of bank fraud they face not more than 30 years in federal prison, and a fine of up to $1,000,000 per count. If convicted of money laundering they face not more than 10 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by agents with Federal Bureau of Investigation (FBI) and IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
####
Fraud Case Settled for $170,000Read the Press Release
The United States Attorney for the District of South Dakota, Brendan V. Johnson, announced that Black Hills Tree Farm (“BHTF”) and Western Hills Tree Farm (“WHTF”), both of Philip, South Dakota, jointly paid $170,000 to settle allegations that they defrauded the United States Department of Agriculture (“USDA”) crop insurance program.
The claim was brought under the federal False Claims Act and alleged that between September 1, 2005, and November 15, 2006, BHTF and WHTF engaged in a scheme to sell hail damaged trees for which BHTF already received crop insurance payments. BHTF was obligated to return all monies received from the sale of those trees to the crop insurance program. Instead, BHTF used WHTF as a third party to accomplish the sale and conceal from the USDA the true sale price of the trees.
“The crop insurance program is of vital importance to our farmers and ranchers, and my office will continue our efforts to vigorously protect the integrity of the program,” said Johnson.
According to the Settlement Agreement, BHTF and WHTF deny the allegations made by the United States, but settled the case without admitting liability to avoid the delay, uncertainty, inconvenience, and expense of protracted litigation.
"The Federal Crop Insurance Program is a central component of our nation's farm safety net, and when one farmer takes advantage of that system, all farmers are hurt. To preserve the safety net for honest, hard-working farmers, the Risk Management Agency actively works to decrease fraud, waste and abuse in the Federal Crop Insurance Program," said Brandon Willis, Acting Administrator of USDA's Risk Management Agency, which manages the Federal Crop Insurance Program.
The investigation was conducted by the USDA, Office of Inspector General. The United States was represented by Assistant United States Attorney Robert Gusinsky.
Four More Sentenced in Case of Filing Fraudulent Tax Returns in the Name of Deceased PeopleRead the Press Release
Four more people were recently sentenced for their roles in a $1.7 million scheme to defraud the United States by obtaining false and fraudulent U.S. Treasury tax refund checks using the identities of deceased people, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Darryl Williams, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation’s Cincinnati office.
Elian Zayed (AKA Nasser Zayed and Nick Zayed), 45, of Westlake was sentenced to 2 ½ years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy and mail fraud.
Samer Sammor, 40, of Broadview Heights, was sentenced to 18 months in prison and ordered to pay $25,429 in restitution after pleading guilty to making a false claim against the U.S.
Eric J. Howard, 42, of Tampa, Florida, was sentenced to more than five years in prison and ordered to pay $177,744 in restitution after pleading guilty to conspiracy to commit mail fraud, mail fraud and aggravated identity theft.
Lamia Suleiman, 44, of Lutz, Florida, was sentenced to three years of probation and ordered to pay $177,744 in restitution after pleading guilty to misprision of a felony.
“The theft of anyone’s identity is a serious offense, but stealing the identities of the recently departed to defraud all the other taxpayers is particularly egregious,” said Steven M. Dettelbach, the U.S. Attorney for the Northern District of Ohio. “These sentences should cause anyone who would engage in this conduct to reconsider.”
Five other people were sentenced to prison last year for their roles in a related scheme.
From 2009 to at least August 2011Zayed, Suleiman, Howard, Samor and other co-conspirators defrauded the United States by filing false and fraudulent tax returns, many in the names of recently deceased taxpayers, according to court documents.
The co-conspirators directed the refunds to controlled locations in Florida. The U.S. Treasury checks generated by the false tax returns were sent by U.S. mail to co-conspirators located in Ohio. The Ohio co-conspirators then sold and distributed those Treasury checks for negotiation at various businesses and banking institutions, according to court documents.
The IRS estimated that the scheme involved at least $1.7 million in fraudulently obtained tax returns.
The case was prosecuted by Assistant United States Attorneys Margaret Sweeney and Gary D. Arbeznik following an investigation was by the the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the United States Postal Service.Four Additional Defendants Plead Guilty in Connection with the LIRR Disability Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARIA RUSIN, the office manager of Dr. Peter J. Ajemian’s medical practice, GREGORY NOONE, a former Long Island Railroad (“LIRR”) manager of engineering operations, DANIEL DENIS, a former LIRR ticket agent, and REGINA WALSH, a former LIRR director of employee operations, pled guilty to charges related to the allegedly massive fraud scheme in which LIRR workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. RUSIN and WALSH pled guilty today before U.S. Magistrate Judge Henry B. Pitman. NOONE and DENIS pled guilty before Judge Pitman on January 8, 2013 and January 9, 2013, respectively.
According to the Complaint, the Superseding Indictment, the Superseding Informations, and statements made in other public filings and in court:
The LIRR Disability Fraud Scheme
The Railroad Retirement Board (“RRB”) is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service), they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under oath in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 2004 through 2008, 61% of LIRR employees who stopped working and began receiving RRB disability benefits were between the ages of 50 and 55. In contrast, only 7% of employees at Metro-North who stopped working and received disability benefits during the same time period were between the ages of 50 and 55.
Rusin’s Obstruction of Justice
In August 2010, RUSIN participated in a voluntary interview with criminal investigators in the Southern District of New York, and falsely denied knowing that almost all of Dr. Peter Ajemian’s patients from the LIRR were retiring at the same time that they were claiming occupational disability from the United States Railroad Retirement Board. RUSIN also falsely claimed that she was never told that an LIRR patient was planning to retire except when the patient was directed to see her to pay for a narrative, and that this usually occurred at the end of the process of seeing Ajemian—about two weeks to one month prior to the worker’s retirement. In addition, RUSIN falsely claimed to have no understanding about how an occupational disability would affect the payout for an LIRR worker who was retiring.
RUSIN, 57, of Farmingdale, New York, and WALSH, 64, of New Hyde Park, New York will be sentenced by U.S. District Judge Victor Marrero on May 13, 2013 and NOONE, 63, of East Islip, New York, will be sentenced by Judge Marrero on July 12, 2013. DENIS, 60, of East Rockaway, will be sentenced by U.S. District Judge Kimba Wood on July 11, 2013. A chart setting forth the counts to which each defendant pled guilty, as well as the maximum penalties, is attached.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 16 of whom have now pled guilty. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the RRB-OIG, the FBI, and the MTA-OIG for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Daniel Tehrani, Nicole Friedlander, Danya Perry and Amy Garzon are in charge of the prosecution.
Former Tsa Officer Sentenced to More Than Five Years in Prison for Accepting Bribes from Drug TraffickerRead the Press Release
January 11, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that CHRISTOPHER ALLEN, 47, of Palm Beach Gardens, Fla., formerly a Transportation Security Administration officer based at Palm Beach International Airport, was sentenced today by United States District Judge Janet C. Hall in New Haven to 68 months of imprisonment, followed by three years of supervised release, for accepting cash in exchange for facilitating the transportation of illegal narcotics through airport security without detection. Two other former TSA officers, a former Westchester County Police officer and a former Florida State Trooper have also been charged and convicted as a result of this investigation.
“This defendant received cash payments to assist a known drug trafficker pass safely through airport security with oxycodone pills destined for illegal trafficking in Connecticut,” stated U.S. Attorney Fein. “Corruption within the ranks of those who are entrusted with the responsibility for screening air travelers and their baggage can never be tolerated. I commend the DEA Task Force for shutting down a pipeline of highly addictive prescription pills from Florida to Connecticut, and for bringing to justice this federal employee and others who participated in this illegal scheme.”
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills to various Connecticut-based narcotics dealers. The narcotics trafficker purchased oxycodone pills in Florida for approximately $5.00 per pill, and traveled from Florida to Connecticut several times a week carrying up to 8,000 oxycodone pills per trip. He then used drivers to transport him to and from narcotics transactions during which he would sell the pills to Connecticut-based dealers for between $10.00 and $13.00 per pill. After exchanging low-denomination currency for larger notes, he transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights. The Connecticut-based dealers sold the pills to lower-level dealers and drug customers for between $23.00 and $30.00 per pill.
According to court documents and statements made in court, ALLEN, while employed as a TSA officer at Palm Beach International Airport in West Palm Beach, Fla., accepted cash payments from the narcotics trafficker to ensure that the trafficker would not be stopped by TSA officers as he carried oxycodone pills through airport security on his way to Connecticut. On four occasions between May and August 2011, the narcotics trafficker, who by this time was cooperating with law enforcement, paid ALLEN $500 in cash to allow the trafficker to travel safely through airport security. On two of these trips, the narcotics trafficker traveled with an undercover law enforcement officer.
As disclosed in court, the evidence in this case includes recorded conversations involving ALLEN, the cooperating narcotics trafficker and the undercover law enforcement officer.
ALLEN was arrested on September 13, 2011. On April 16, 2012, he pleaded guilty to one count of extortion under color of right and one count of receipt of a bribe by a public official.
Twenty individuals have been charged as a result of this investigation. Jonathan Best, a TSA officer based at Palm Beach International Airport, Brigitte Jones, a TSA officer based at Westchester County Airport in White Plains, Justin Kolves, a former Florida State Trooper and Michael Brady, a former Westchester County Police officer, also pleaded guilty and have been sentenced to prison terms of 76 months, 45 months, 84 months and 37 months, respectively.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
U.S. Attorney Fein also acknowledged the cooperation of the Westchester County Department of Public Safety and the Florida Highway Patrol, and the substantial assistance provided by the United States Attorney’s Office for the Southern District of Florida.
This case is being prosecuted in the District of Connecticut by Assistant United States Attorneys Rahul Kale and Tracy Lee Dayton.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Former State Department Employee Sentenced to 30 Months in Prison for Carrying Out Identity Theft Scam-Got Access to Information While in A Student Work Program-Read the Press Release
WASHINGTON – Rodney P. Quarles, Jr., 26, of Charlotte Hall, Md., was sentenced today to 30 months in prison for taking part in an identity theft scam in which he and others used stolen credit cards to make more than $70,000 in purchases.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Barry Moore, Assistant Director for Domestic Operations, U.S. Diplomatic Security Service, Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service, and David Beach, Special Agent in Charge of the Washington Field Office, U.S. Secret Service.
Quarles pled guilty in October 2012 in the U.S. District Court for the District of Columbia to a charge of conducting illegal transactions with credit cards. He was sentenced by the Honorable Richard W. Roberts. As part of his plea agreement, Quarles agreed to pay $71,774 in restitution to Chase Bank USA NA.
According to a statement of offense, signed by the defendant as well as the government, Quarles worked from September 2007 through March 2008 for the Department of State’s Bureau of Consular Affairs. He was a member of the student work program, assigned to the Washington, D.C., Passport Office. His job responsibilities primarily consisted of destroying old passports and passports that had been reported lost or stolen. Part of the process entailed accessing files of individuals whose passports were being destroyed on a State Department database.
During his time on the job, Quarles agreed to engage in a conspiracy in which he and others used, without authorization, stolen credit cards to purchase goods and to obtain funds. The scheme’s participants included a mail sorter for the U.S. Postal Service, who stole envelopes that he suspected contained credit cards. The names on these cards were passed along to Quarles, who used the State Department database to retrieve information that helped activate the accounts.
With the accounts activated, Quarles and others used the stolen credit cards to purchase goods and obtain funds in the District of Columbia, Maryland and other jurisdictions. All told, the conspirators completed transactions totaling at least $71,774 to obtain cash, jewelry, high-end electronic equipment, gift cards, and other items. During the scheme, Quarles and others also unsuccessfully attempted to conduct another $133,494 in transactions.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Moore, Inspector in Charge Barksdale, and Special Agent in Charge Beach commended the efforts of those who investigated the case from the State Department’s Bureau of Diplomatic Security, Postal Inspection Service, and Secret Service. They also praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Carolyn Cody, Tasha Harris, and Lenisse Edloe; Victim Advocate Yvonne Bryant; Assistant U.S. Attorney Catherine K. Connelly, who investigated the matter, and Assistant U.S. Attorney Matt Graves, who investigated and prosecuted the matter.
13-006Former Santa Fe Resident Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – This morning, Carl Labadie, 60, a Colorado resident, entered a guilty plea to possession of a visual depiction of minors engaged in sexually explicit conduct under a plea agreement with the U.S. Attorney’s Office.
Labadie pled guilty to an indictment charging him with possessing child pornography in Santa Fe, N.M., on March 1, 2012. At the time he committed the offense, Labadie was a resident of Santa Fe, where he was self-employed as an acupuncture and massage therapist.
In his plea agreement, Labadie acknowledged that on March 1, 2012, agents of the New Mexico State Police (NMSP) and Homeland Security Investigations (HSI) executed a search warrant at his Santa Fe residence and seized computers and computer-related media. The search warrant was obtained based on a NMSP undercover investigation that began in Jan. 2012, which determined that an Internet Protocol Address registered to Labadie was being used to distribute child pornography.
While the agents were executing the search warrant at Labadie’s residence, Labadie voluntarily participated in an interview with NMSP and HSI agents during which he admitted using file-sharing programs to download child pornography. Labadie further admitted engaging in this illegal conduct for approximately four years.
Labadie also acknowledged that an examination of the images and videos on his computers and computer-related media by the National Center for Missing and Exploited Children revealed 5,350 images and 200 videos of 129 children who have been identified as child pornography victims and have been rescued.
After entering his guilty pleas, Labadie was remanded into the custody of the U.S. Marshals Service pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Labadie will sentenced to four years of imprisonment to be followed by a term of supervised release to be determined by the Court. Labadie will pay $500.00 in restitution to each of two victims whose images he possessed on his computers and computer-related media. He also will be required to register as a sex offender.The case was investigated by the NMSP, HSI and the New Mexico Regional Computer Forensic Lab, and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees.
U.S. Attorney Kenneth J. Gonzales said that Labadie was charged as part of Operation Artemis, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. In March 2012, federal, state and local law enforcement officers executed thirteen unrelated federal and state search warrants at residences throughout New Mexico, and seized computers and computer-related evidence related to child pornography offenses. To date, six individuals have been arrested for violating federal and state child pornography laws based on the search warrants executed as part of Operation Artemis. The law enforcement agencies that participated in Operation Artemis include: HSI, NMSP, New Mexico Attorney General’s Office, FBI, Albuquerque Police Department, Los Lunas Police Department, Santa Fe Police Department, Rio Rancho Police Department, and the New Mexico Regional Computer Forensic Lab.
Operation Artemis was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Former Postal Service Employee Sentenced for Stealing MailRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Deborah Jean Gibson, age 57, of Windsor Mill, Maryland today to a year and a day in prison followed by three years of supervised relief for theft of mail by a postal service employee. Judge Hollander also ordered Gibson to pay restitution of $1,215.39.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General (OIG).
According to her plea agreement, Gibson was a U.S. Postal Service employee for approximately 13 years. Gibson worked as a mail processing clerk at the Linthicum facility, manually feeding mail into a delivery bar code sorter, and preparing mail for delivery to postal customers.
In November 2011, complaints were received that greeting cards containing gift cards that had been processed through the Linthicum facility were not delivered. In February 2012, a stack of opened greeting cards were found in the facility and identified as having been processed by the machine operated by Gibson. Thereafter, on two occasions, Postal Service OIG agents observed Gibson stealing gift cards from the mail and placing the contents into her pockets or purse.
After Gibson was seen stealing mail again on May 3, 2012, Postal Service OIG agents confronted her and recovered the stolen mail from her purse. Federal search warrants executed at Gibson’s car and residence recovered additional stolen mail. In all, 71 mail pieces and 50 gift cards/personal checks were recovered.
Gibson admitted that she stole from over 250 victims, resulting in an attempted loss of between $10,000 and $30,000.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Service, Office of Inspector General for its work in the investigation and thanked Assistant U.S. Attorney Rachel M. Yasser, who prosecuted the case.
Former Law Firm IT Chief and Contract Employee Vendor Indicted in $4.8 Million Billing Fraud and Kick-back SchemeRead the Press Release
CHICAGO — The former chief information officer of a Chicago-based international law firm who was charged previously, and the president of a company that provided contract technology workers who was charged for the first time and arrested today, were indicted for allegedly engaging in a fraudulent billing and kickback scheme that netted each of them more than $2 million. NICHOLAS DEMARS, the president of NS Mater, a defunct firm that provided contract employees and technology to assist in office automation, web and database development, and general information technology, was arrested today and indicted with DAVID TRESCH, the former law firm officer who supervised the work and billing related to the contract employees.
For the first six years of the scheme that began in 2004, Demars allegedly paid Tresch a portion of the profits that NS Mater made from work its contract employees performed at the victim law firm. During the last two years ending in June 2012, Tresch allegedly received kickbacks totaling nearly all of the false billings that the law firm paid NS Mater for work that was not performed.
Tresch, 51, and Demars, 57, both of Itasca, were each charged with 10 counts of mail fraud in an indictment that was returned by a federal grand jury yesterday and unsealed today after Demars was arrested. Demars was released on bond after appearing this morning before U.S. Magistrate Judge Sidney Schenkier in U.S. District Court. Tresch, who was released on bond after he was arrested in August, will be arraigned at a later date in Federal Court.
The indictment also seeks forfeiture of $4,819,253 representing the combined net proceeds that both men allegedly obtained from the scheme, as well as their respective homes, Demars’ condominium in Chicago, and a residence in Lake Geneva, Wis., and more than $225,000 that was seized from Tresch along with his camping trailer, a van, and a luxury automobile.
The charges were announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and Thomas R. Trautmann, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
According to the initial complaint, the victim law firm, which was not identified by name, reported Tresch’s alleged criminal activity and cooperated in the investigation. The firm, which has offices worldwide, hired Tresch in May 2004 and he held several positions in the information technology department before he was promoted in July 2011 to chief information officer.
The indictment alleges that between November 2004 and March 2011, the law firm issued checks totaling approximately $7.68 million to NS Mater, and Demars, in turn, kicked back $1.14 million to Tresch. In 2004 and 2005, Demars allegedly paid kickbacks directly to Tresch after paying legitimate NS Mater contract employees and payroll administrators for work they had performed for the law firm. Beginning in April 2006, allegedly to conceal the kickbacks, Demars began paying Tresch by issuing checks to Tresch’s wife and treating her as an employee of NS Mater, even though both defendants knew that she was not an employee and had not performed any work, according to the indictment. Tresch’s wife is not a defendant.
Subsequently, in late 2010, Tresch learned that that the law firm would soon stop using NS Mater contract employees, and, in February 2011, the firm directed Tresch to no longer permit NS Mater to provide personnel for the information technology department. Between November 2011 and June 2012, Demars allegedly continued submitting invoices to Tresch totaling more than $1.1 million, falsely representing that NS Mater performed work that both defendants knew was not performed. Tresch submitted the false invoices, which the firm paid, and of the $1.1 million paid during this period, Demars kicked back approximately $970,000 to Tresch, while retaining the remainder for himself, the indictment alleges.
Each count of mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. The Court may impose an alternative fine totaling twice the loss to the victim or twice the gain to the defendant, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Terra Reynolds.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Former Harris County Deputy Convicted for Aiding Ecstasy LoadsRead the Press Release
HOUSTON - Former Harris County Deputy Sheriff Jesus Martinez, of Humble, has been convicted of aiding possession of a controlled substance, United States Attorney Kenneth Magidson announced today.
According to the factual summary in support of the plea today, a public corruption task force conducted a sting operation in which an informant asked Martinez, 30, to provide protection for a delivery of money or marijuana.
On July 23, 2012, the informant met with an undercover police officer, who appeared to be engaged in a drug transaction. At that time, Martinez drove his Harris County Sheriff’s Office (HCSO) patrol car through the parking lot as protection. The informant contacted Martinez after the delivery and stated that the deal resulted in “X” (3,4 Methylenedioxy-methamphetamine or MDMA), a Schedule I Controlled Substance which is also known as “X” or Ecstasy. The informant then asked Martinez to follow him out of the parking lot.
U.S. District Judge David Hittner, who accepted the plea today, has set sentencing for April 8, 2013, at which time Martinez faces up to 20 years in federal prison and a possible $1 million fine.
The operation was conducted by the FBI-led public corruption task force which included the Houston Police Department and the Texas Rangers. Also assisting in the overall investigation was Drug Enforcement Administration and the HCSO among others.
Assistant United States Attorney Jim McAlister is prosecuting the case.
Former Deputy Sheriff Pleads Guilty to Civil Rights ViolationsRead the Press Release
Craig Billings, 39, a former deputy sheriff with the Murray County Sheriff’s Office in Sulphur, Okla., pleaded guilty today in federal court to a one-count information charging him with Deprivation of Rights for using unreasonable force and violating the civil rights of an individual who was being booked into the Murray County Jail.
According to court documents, on Oct. 8, 2011, Billings, while working in his capacity as a deputy sheriff, physically assaulted the victim, who was handcuffed at the time and not a physical threat to anyone. Billings tackled the victim to the ground, positioned himself over the victim, grabbed the victim by the chin and began to bang the victim’s head into the floor. In so doing, Billings subjected the victim to unreasonable force, punishing him for verbally offending Billings. As a result, the victim sustained a mild concussion and suffered pain and swelling to his head. Billings knew that he was prohibited from using physical force on a restrained arrestee who is not a physical threat, and assaulted the victim anyway.
“Every person in America has the right to be free from excessive physical force when they are taken into custody by law enforcement officers,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “While the vast majority of officers uphold this right on a daily basis, the Department of Justice and the Civil Rights Division will vigorously prosecute officers who do not act in accordance with the Constitution.
Billings was remanded into custody at the time of his guilty plea. He faces a maximum sentence of 10 years in prison. A sentencing date has not yet been set.
This case was investigated by the Ardmore Resident Agency of the Oklahoma City Division of the FBI and is being prosecuted by Assistant U.S. Attorney Dean Burris for the Eastern District of Oklahoma and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Citizens Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
BOSTON - A Rhode Island woman was convicted today of embezzling more than $375,000 from the accounts of Citizens Bank customers.
Maria DaSilva, 44, pleaded guilty before U.S. District Judge Richard Stearns to violating the federal bank fraud statute.
From February 2008 through January 2012, while she was working as a bank teller at the North Attleboro branch of Citizens Bank, DaSilva embezzled over $375,000 from the accounts of three elderly bank customers by forging withdrawal slips on various accounts held by these customers.
Sentencing is scheduled for May 8, 2013. DaSilva faces up to 30 years in prison, to be followed by five years of supervised release and a $1,00,000 fine.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Jeremy Sternberg of Ortiz’s Economic Crimes Unit.
Former Chicago Police Officer and Two Members of Latin Kings Street Gang Sentenced in Indiana for Roles in Racketeering ConspiracyRead the Press Release
WASHINGTON – A former Chicago police officer and two members of the Latin Kings street gang were sentenced this week in Indiana to serve prison time for their roles in a racketeering conspiracy and other related charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Former Chicago Police Officer Alex Guerrero, 41, of Chicago, was sentenced today to serve 228 months in prison and five years of supervised release. Antonio Gudino, aka “Chronic,” 31, of Hammond, Ind., was sentenced yesterday to serve 175 months in prison and two years of supervised release. Brandon Clay, aka “Cheddar,” “Cheddar Boy,” “Swiss” and “Slick” 25, of Chicago, was sentenced Wednesday to serve 360 months in prison and five years of supervised release. Guerrero, Gudino and Clay were each sentenced by U.S. District Judge Rudy Lozano in the Northern District of Indiana.On Aug. 2, 2012, Guerrero pleaded guilty to one count each of conspiracy to participate in racketeering activity, conspiracy to possess with intent to distribute and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana, interference with commerce by threats or violence, and use and carrying of a firearm during and in relation to crimes of violence and drug trafficking. On July 31, 2012, Gudino and Clay each pleaded guilty to one count of racketeering conspiracy.
According to the third superseding indictment filed in this case, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States. The Latin Kings is a well organized street gang that has specific leadership and is composed of regions that include multiple chapters. The third superseding indictment charges that the Latin Kings were responsible for at least 19 murders, including juveniles and one pregnant woman, in the Chicago/Northwest Indiana area and Big Spring, Texas.
According to the third superseding indictment, the Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as “missions.”
During their guilty plea proceedings, Guerrero, who was a Chicago Police Department officer, admitted to being associated with the Latin Kings, and Gudino and Clay admitted to being Latin King members from an early age. They also acknowledged they were aware that the Latin Kings distributed more than 150 kilograms of cocaine and 1,000 kilograms of marijuana over the course of the racketeering conspiracy. Guerrero admitted in his plea agreement that he was responsible for possession of and distribution of 150 kilograms or more of cocaine. Gudino and Clay admitted to participating in street activities to further the drug trafficking and other gang activities.Guerrero also admitted to participating in robberies at the direction of Latin Kings leader and co-conspirator Sisto Bernal. Specifically, Guerrero acknowledged that in approximately December 2006, he entered into the Hammond residence of James Walsh, a rival gang member. Guerrero and his police partner and co-defendant Antonio Martinez physically restrained Walsh and others while the home was searched and robbed. Guerrero admitted that by committing these crimes while employed as a Chicago police officer, he abused a position of public trust in a manner that significantly facilitated the commission or concealment of the offense. Bernal and Martinez previously pleaded guilty for their roles in the racketeering and robbery conspiracies.
Guerrero resigned from the Chicago Police Department following his plea hearing.
Clay acknowledged that on Feb. 25, 2007, he, along with four other defendants, rode on a “mission” from Illinois to Griffith, Ind. While armed with three firearms, they were ordered to shoot to kill rival gang members who were attending a party. Once the two rival members – James Walsh and Gonzalo Diaz – left the party, several Latin Kings members, including Clay, rode up in a vehicle, and Clay and another defendant got out of the vehicle and shot and killed Walsh and Diaz. On April 22, 2009, Clay, along with two other defendants, drove to a rival gang neighborhood and caused the shooting death of Christiana Campos, a member of a rival gang.
Twenty-three Latin Kings members and associates have been indicted in this case. Twenty have pleaded guilty; one was found guilty following a jury trial; one awaits trial; and one remains a fugitive.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith Police Department; the Highland Police Department; the Hammond Police Department; and the East Chicago Police Department.The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and David J. Nozick of the U.S. Attorney’s Office for the Northern District of Indiana. Assistant U.S. Attorney Andrew Porter of the U.S. Attorney’s Office for the Northern District of Illinois provided significant assistance.
The third superseding indictment is not evidence of guilt. The defendants who have not been convicted are innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Bank President and Other Officers Indicted in Massive Fraud That Preceded the Collapse of First National BanksRead the Press Release
SAVANNAH, GA: The former president and six other officers of First National Bank of Savannah were indicted by a federal grand jury, accused of defrauding First National Bank and other banks out of millions of dollars. The long-running scheme allegedly contributed to the failure of First National Bank in 2010, which will cost the FDIC deposit-insurance fund over $90 million.
The 35-count indictment, returned today in federal court in Savannah, charges the following former officers of First National Bank: * Heys Edward McMath III, 58, who served as the President and CEO of the bank. McMath is charged with conspiracy, bank fraud, misapplication of bank funds and false statements to influence a bank.
* Stephen Michael Little, 65, who served as the Executive Vice President and CFO of the bank. Little is charged with conspiracy and bank fraud.
* Robert Wilson Dailey, 51, who served as the City President and Senior Lending Officer of the bank. Dailey is charged with conspiracy, bank fraud, and false entries made in bank records.
* Jay Patrick Gardner, 62, who served as a Vice President and the Chief Credit Officer of the bank. Gardner is charged with conspiracy and bank fraud.
* Isaac Jefferson Mulling, 53, who served as a Senior Vice President and commercial loan officer of the bank. Mulling is charged with conspiracy, bank fraud, false statements to influence a bank, and false entries made in bank records.
* Alan Robert Fleming, 36, who served as the City President of the Tybee Island branch and a commercial loan officer of the bank. Fleming is charged with conspiracy, bank fraud, misapplication of bank funds, false statements to influence a bank, and false entries made in bank records.
* Jeffrey Allen Farrell, 44, who served as the City President of the Richmond Hill branch and a commercial loan officer of the bank. Farrell is charged with conspiracy, bank fraud, false statements to influence a bank, and false entries made in bank records.
United States Attorney Edward J. Tarver said, “The State of Georgia leads the nation in bank failures, with 84 banks failing since 2008, including First National Bank. As the nation still recovers from a banking crisis of epic proportions, citizens should know this: no matter the complexity of the scheme, bank officers who place FDIC-funds at risk through fraud and other criminal conduct will be brought to justice.”
According to the allegations in the indictment, as First National Bank’s financial condition began to deteriorate, the Defendants schemed to hide from the bank, members of the bank’s Board of Directors and from federal regulators millions of dollars in non-performing loans. The Defendants accomplished the scheme by unlawfully loaning money to unqualified nominees to make interest and other payments on other non-performing loans; enticing others to take over non-performing loans with hidden promises, side deals and other terms unfavorable to First National Bank; and recruiting other banks to fund non-performing loans based upon fraudulent misrepresentations about the quality of the loans. To assist in their scheme, the Defendants falsified and fabricated numerous bank documents and records.
This case is the result of a joint investigation conducted by the Board of Governors of the Federal Reserve Office of Inspector General; the FDIC Office of Inspector General; the U.S. Department of Treasury Office of Inspector General; the U.S. Secret Service; and the United States Attorney’s Office. First Assistant United States Attorney James D. Durham and Assistant United States Attorney Jennifer Solari are prosecuting the case on behalf of the United States.Former Attorney Sent to Prison for A Decade in $7 Million Ponzi SchemeRead the Press Release
HOUSTON - Billy Frank Davis, aka Bill F. Davis, a former attorney residing in Houston, has been sentenced to 10 years in federal prison for perpetrating a decade-long investment fraud scheme that victimized more than 20 investors of approximately $7.8 million, United States Attorney Kenneth Magidson announced today.
Davis pleaded to one count of wire fraud Oct. 15, 2012. Today, U.S. District Judge David Hittner, who accepted the guilty plea, handed Davis a 120-month sentence to be followed by a three-year-term of supervised release before a courtroom packed with victims who were all wearing red ribbons as a sign of solidarity. Although Davis pleaded guilty to a single count, he had admitted to the entirety of his fraudulent scheme and agreed to be held accountable for all of the losses incurred by his victims. He was also ordered to pay $7.8 million in restitution.
In handing down the sentence, Judge Hittner went above the sentence recommended by the U.S. Sentencing Guidelines. At the hearing, Judge Hittner read from a number of victim impact statements, most from victims who had known Davis for 20 years or more. One letter read as follows: “[Davis] exploited the most fundamental of human relationships and did it both knowingly and intentionally. He deserves the same level of consideration he gave his friends as he was robbing all of us – none.” Another victim described Davis as a “smooth talking parasite or predator who will do harm to more honest people if ever back on the street. He has stolen most all of my retirement cash and destroyed my marriage. I do not sleep.”
In addition to the victim letters read in open court, Judge Hittner allowed one victim to speak at the sentencing hearing. “Every cent Bill Davis stole was from a very good friend and he took advantage of that friendship on every occasion,” the victim stated. After noting Davis’s ability to maintain his image of success helped enable him to commit his crimes, the same victim closed by saying: “Mr. Davis, as for your image, the last image I want to see of you is you being led away in handcuffs in an orange jumpsuit.” After pronouncing the sentence, Judge Hittner ordered Davis to be taken immediately into custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
During the past 10 years, Davis, 68, held himself out to friends and potential investors as being involved in the real estate investment business. While Davis did conduct some legitimate business activity during this time period, a substantial portion of the funds he solicited were simply part of a Ponzi scheme Davis was operating in an effort to satisfy old debts and to fund his personal lifestyle. In acknowledging his criminal conduct at the time of his guilty plea, Davis admitted to using a variety of ploys to perpetuate his Ponzi scheme, all of which involved falsely representing to investors the existence or nature of various real estate investment opportunities, accepting funds from investors under such false pretenses, and then using the investor funds in a manner other than as represented to investors.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Jason Varnado.
Fifth Test-Taker Pleads Guilty in Teacher Certification Cheating ScamRead the Press Release
Memphis, TN – Jeryl Shaw, 40, of Memphis, pled guilty to aiding and abetting the creation of a fraudulent identification document in connection with the teacher certification cheating scam directed by ringleader Clarence Mumford, Sr., 59, of Memphis, announced United States Attorney for the Western District of Tennessee, Edward L. Stanton III. This plea, along with previous guilty pleas by John Bowen, 63; Felippia Kellogg, 42; Shantell Shaw, 40; and Carlos Shaw, 87; of Memphis, brings to five the total number of guilty pleas thus far in Mumford Sr.’s teacher certification cheating scam. Jeryl Shaw is the husband of Shantell Shaw. Neither are related to Carlos Shaw.
The original indictment in the case, filed in July 2012, charged Mumford Sr. with orchestrating a scheme that began as early as 1995 to pay test-takers to take teacher certification examinations on behalf of teachers and hopeful teachers. In August, a superceding indictment charged Dante Dowers, 40, of Belle Glade, Florida and Mumford Sr.’s son, Clarence Mumford Jr., 28, of Memphis. And in September, a second superceding indictment charged ten more individuals, including Samuel Campbell, 39, of Jackson, Mississippi; Darcel Gardner, 35, of Columbus, Mississippi; Steve Holmes, 53, of Memphis, Tennessee; Valerie Humphrey, 47, of Oakland, Tennessee; Carlo McClelland, 35, of Meridian, Mississippi; Jacklyn McKinnie, 44, of Memphis, Tennessee; Jadice Moore, 30, of Port Gibson, Mississippi; Sarah Richard, 54, of Richland, Mississippi; Jeryl Shaw, 40, of Memphis, Tennessee; and Kimberly Taylor, 36, of Charleston, Mississippi. Cedrick Wilson, 34, of Memphis, Tennessee, was charged in a separate indictment related to the scam in October 2012.
In previous guilty plea hearings, Bowen and Kellogg admitted being paid by Mumford to take numerous tests. Bowen admitted that after he met Mumford Sr. during the 1994-1995 school year – when Bowen was a substitute teacher and Mumford Sr. was the assistant principal at Humes Junior High School – he took at least three to four tests per year from 2000 to 2010. Kellogg admitted that after she met Mumford in May 2009, she took a number of tests over a one and a half year period and received approximately $4,000 from Mumford. Carlos Shaw, who was formerly an assistant principal at the Memphis Academy of Science and Engineering and also taught at Carver High School and Booker T. Washington High School, was first approached by Mumford Sr. approximately ten years ago and admitted taking approximately 10 to 15 tests for payments ranging from $200 to $700. Shantell Shaw admitted that she met Mumford at Trezevant High School in 2008 when she was a new teacher and Mumford, Sr. was her mentor, and that she took approximately 12 to 15 tests for total payments of approximately $8,000.
During Bowen’s guilty plea hearing, it was revealed that investigators began to unravel the ring after Bowen was caught in June 2009 at Arkansas State University in Jonesboro taking an afternoon examination in one man’s name after having taking a morning examination in a woman’s name. Other test-takers paid by Mumford Sr. were at the same test location on the same date doing the same thing. ETS investigated and later referred the case to the Tennessee Department of Education, which referred the case to the Tennessee Bureau of Investigation. After the investigation was brought to the United States Attorney's Office in the summer of 2011, the United States Secret Service also joined the investigation. Investigators interviewed dozens of individuals, and obtained bank, phone and testing records to identify participants in the scheme.
During Jeryl Shaw’s guilty plea hearing, Shaw admitted taking approximately three tests in the 2008-2009 time frame and admitted providing his driver’s license to Mumford via his wife, Shantell Shaw. Mumford used Jeryl Shaw’s driver’s license to create fake identification documents that enabled Jeryl Shaw to take tests on behalf of others. Jeryl Shaw has never been a teacher. He has a degree in polymer chemistry.
This investigation is being conducted by the Tennessee Bureau of Investigation and the United States Secret Service. Assistant U.S. Attorney John Fabian and Special Assistant U.S. Attorney Kirby May represent the government.Ferris Kleem Sentenced to Three Years in Prison, Fined $250,000 for Bribery ConvictionRead the Press Release
Contractor Ferris Kleem was sentenced to three years in prison, fined $250,000 and ordered to pay $24,000 in restitution to Cuyahoga County after previously pleading guilty to one count of bribery concerning programs receiving federal funds, law enforcement officials said.
Kleem, 54, of Berea, engaged in a conspiracy between 2006 through July 28, 2008 in which Kleem provided things of value to Cuyahoga County Commissioner Jimmy Dimora, County Auditor Frank Russo and county employee J. Kevin Kelley in return for those men performing acts and promising to perform official acts to benefit Kleem and his interests, according to court documents.
In 2006, Kleem asked Dimora and Russo to assist him in obtaining a county grant to build a pedestrian bridge at Coe Lake in Berea. County commissioners eventually voted to award a $150,000 grant to the city of Berea for the project, according to court documents.
In 2008, Kleem asked Dimora and Russo to assist his brother with a smoking violation at his restaurant. Dimora made phone calls inquiring about the violation, according to court documents.
In 2008, Kleem helped arrange a trip to Las Vegas for Dimora, Russo, Kelley and others. Kleem gave Dimora and Russo $6,000 in cash each -- $1,000 to cover the cost of airfare and $5,000 for gambling. The money was enough to ensure that Dimora and Russo gambled enough to be “comped” suites at the Mirage, as Kleem had arranged, according to court documents.
While in Las Vegas, Kleem gave Dimora approximately $3,500 in gaming chips. He also hired a prostitute, at Dimora’s request, for $1,000 and escorted the prostitute to Dimora’s suite, according to court documents.
While in Las Vegas, Kleem and Dimora discussed details of bids for work on the county’s Juvenile Justice Center project, work for which Kleem was bidding. They also discussed having a specific inspector assigned to the Snow Road resurfacing project. The inspector was eventually assigned to the job, as a result of Kelley’s efforts and Dimora’s influence, according to court documents.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon, Ann C. Rowland and Nancy L. Kelley following an investigation by the FBI and IRS – Criminal Investigation.
Federal Inmate Pleads Guilty to Assaulting Another InmateRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 46-year-old woman pleaded guilty to assaulting another inmate at the Federal Correctional Institute in Waseca, Minnesota. Felecia Thomas pleaded guilty to one count of assault with a dangerous weapon. She did not enter into a plea agreement with the United States, but, rather, offered a “straight plea” to the single count in the indictment, which was filed on May 15, 2012.
The indictment alleges that on June 10, 2011, Thomas, who was then serving time at the correctional facility in Waseca following a 2004 conviction for arson and use of explosives in commission of a felony, assaulted an inmate with a rope. The rope allegedly had been removed from a laundry bag.
For her crime, Thomas faces a potential maximum penalty of ten years in prison. U.S. District Court Chief Judge Michael J. Davis will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Bureau of Prisons. It is being prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Defendant’s Plead Guilty to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances Acts, and Obstruction of JusticeRead the Press Release
TRAVIS HUDSON, age 29; RODERICK WIGGINS, age 22; SHAYNE LEBLANC, age 40, all residents of Harvey, Louisiana; as well as TOREY RICHARDSON, age 21, a resident of Marrero, Louisiana; and AKAI SULLIVAN, age 27, a resident of New Orleans, Louisiana, all pled guilty in federal court yesterday before U.S. District Judge Lance M. Africk to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances Acts, and Obstruction of Justice, announced
U. S. Attorney Dana J. Boente.TRAVIS HUDSON
Pled guilty to: Count 1 – RICO Conspiracy
Possible sentence – maximum term of life imprisonment, a maximum fine of $250,000.00 and a five years of supervised release following any term of imprisonment.Count 21 – Distribution of Cocaine Base.
Possible sentence – maximum of twenty (20) years imprisonment, a maximum fine of $1,000,000.00, and three (3) years of supervised release following any term of imprisonmentRODERICK WIGGINS and TOREY RICHARDSON, both pled guilty to: Count 1 – RICO Conspiracy
Possible sentence – each face a maximum term of life imprisonment, a maximum fine of $250,000.00 and five years of supervised release following any term of imprisonment.Count 2 – Conspiracy to Distribute and Possess with Intent to Distribute over 25 grams Cocaine Base
Possible sentence – each face a maximum term of life imprisonment, a fine of up to $10,000,000.00 and at least five (5) years of supervised release following any term of imprisonment.Count 5 – Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses
Possible sentence – each face a maximum of twenty (20) years imprisonment, a maximum fine of $250,000.00, and at least three (3) years supervised release following any term of imprisonment.SHAYNE LEBLANC, pled guilty to a one count Bill of Information with violations of Conspiracy to Manufacture and Possess with the Intent to Distribute a Quantity of Cocaine Base.
LEBLANC faces a maximum term of imprisonment of twenty (20) years imprisonment, a maximum of $1,000,000.00 in fines and at least three (3) years supervised release following any term of imprisonment.AKAI SULLIVAN, pled guilty to Count 6 Obstruction of Justice. SULLIVAN faces a maximum of twenty (20) years imprisonment, a maximum of $250,000.00 in fines and a maximum of three (3) years supervised release following any term of imprisonment.
This case arose out of a joint investigation by ATF, FBI, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. It was revealed that a group of individuals operated in various areas of Harvey, Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the “Harvey Hustlers” and/or “Murder Squad”.
The “Murder Squad”, or “MS”, was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Sentencing for these defendants is scheduled for April 18, 2013.
The case was investigated by the Bureau of Alcohol, Tobacco and Firearms, Federal Bureau Investigation, and the Jefferson Parish Sheriff’s Office. The case is being prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
(Download Indictment - TRAVIS HUDSON )
(Download Indictment - RODERICK WIGGINS )
(Download Indictment - TOREY RICHARDSON )
(Download Indictment - SHAYNE LEBLANC )
(Download Indictment - AKAI SULLIVAN )
Defendants Charged in Conspiracy to Manufacture and Pass Counterfeit Currency Are SentencedRead the Press Release
LUBBOCK, Texas — Harley Graves, 29, of Lubbock, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 41 months in federal prison, following his guilty plea in August 2012 to one count of conspiracy to manufacture, possess and pass counterfeit U.S. currency. In addition, Graves was ordered to pay $4,600 restitution, jointly and severally with his two convicted co-defendants. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The two other defendants who were charged in the case have been convicted and were sentenced last month. Thomas Vasquez, 36, of Lubbock, pleaded guilty to a misprision of a felony and was sentenced to six months in federal prison and Augustine Moreno, 50, pleaded guilty to one count of conspiracy to possess and pass counterfeit U.S. currency and was sentenced to 27 months in federal prison. Graves and Moreno have been in custody; Vasquez was ordered to surrender to the Bureau of Prisons on January 25, 2013.
According to documents filed in the case, Graves admitted that he came to Lubbock to do a large counterfeit deal that was arranged by Vasquez. He also admitted that he manufactured counterfeit U.S. currency in his hotel room in Lubbock. He also admitted that he passed some of that currency at small restaurants in Lubbock. Moreno admitted that he obtained counterfeit currency from Vasquez and that he assisted others in passing the currency by driving them to various locations in his car. Moreno also admitted that he passed several counterfeit bills at small restaurants and a Kohls in Lubbock. Vasquez admitted allowing individuals that he knew possessed the counterfeit currency to use his car to deliver the counterfeit currency to other individuals who would pass it or to individuals who passed the currency themselves, and did not make it known to authorities. He also allowed individuals to stay at his house while making the counterfeit currency.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Ann Roberts was in charge of the prosecution.
Court Finalizes Consent Decree to Transform the New Orleans Police DepartmentRead the Press Release
Today, U.S. District Court for the Eastern District of Louisiana entered an order granting the joint motion of the United States and the city of New Orleans to enter the consent decree regarding the New Orleans Police Department (NOPD). This order is a critical milestone in reforming the long-troubled NOPD and is an important step in dealing with the public safety crisis in New Orleans and in restoring community confidence in the New Orleans criminal justice system. The court’s order ensures critical changes to policy and practices, oversight by a federal monitor and transparency so that the community can continue to participate in and track the reform process. The order finalizes this binding agreement that was extensively negotiated between the department and the city, and allows for that agreement’s immediate implementation. The department and the city signed the agreement in July 2012.
“The Department of Justice appreciates the court’s careful attention to this matter,” said Thomas E. Perez, Assistant Attorney General for Civil Rights. “The court’s action today ensures that the people of New Orleans will have a police department that respects the Constitution, ensures public safety and earns the confidence of the community. This decree will provide the city with important tools to reduce crime, ensure effective, constitutional policing and restore public confidence in NOPD.”
As outlined in the court’s order, approval of the consent decree comes after thorough review of the consent decree to determine if it is fair, reasonable and adequate to address the long-standing constitutional deficiencies within NOPD. The review included hearing extensive testimony from the United States, the city, the Office of the Independent Police Monitor, the Fraternal Order of Police and the Police Association of New Orleans and many other New Orleans stakeholders and residents. The testimony reaffirmed both that NOPD engages in unconstitutional conduct, and that there is a public safety crisis in New Orleans that the NOPD can only address by implementing the reforms required by the decree.
The court’s approval of the consent decree comes at a time of continuing and serious public safety challenges in New Orleans.
“The deficiencies within NOPD that the Department of Justice identified during its extensive investigation continue to plague New Orleans,” said Assistant Attorney General Perez. “Time is of the essence. We look forward to the immediate implementation of the agreement, and stand ready to work with all stakeholders in New Orleans to continue the reform process.”
The department opened an investigation into NOPD in May 2010 after Mayor Landrieu asked for the department’s help with a complete transformation of NOPD. After a thorough investigation of NOPD’s policies and practices the department issued a letter of findings in March 2011 that outlined a pattern of unconstitutional conduct and violations of federal law that stemmed from entrenched practices within NOPD. These constitutional violations include use of excessive force; unconstitutional stops, searches and arrests, and; discriminatory and biased policing based on gender, race, national origin and sexual orientation.
“In his first days in office, Mayor Landrieu called for a comprehensive federal civil rights investigation of NOPD, and said that ‘nothing short of the complete transformation is necessary and essential to ensure safety for the citizens of New Orleans.’ This consent decree provides the roadmap for the complete transformation of NOPD,” said Assistant Attorney General Perez.
The court documents can be viewed at www.justice.gov/crt/about/spl/nopd.php.