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4 January 2013
Richmond County Residents Plead Guilty to Federal Drug and Firearm ChargesRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that ten Richmond County men have recently pleaded guilty to federal drug and firearm charges in the Middle District of North Carolina and face lengthy federal sentences.“These convictions remove dangerous criminals from the streets of Richmond County,” said U. S. Attorney Rand. “These men face long federal sentences as a result of the coordination of local, state, and federal law enforcement efforts. We especially commend law enforcement officers in Richmond County and District Attorney Reece Saunders for their cooperation and hard work on these cases.”
CASES SENTENCED
JOHNNY STEELE, age 46, of Mizpah Road, Rockingham, was federally indicted in the Middle District of North Carolina on June 27, 2011. On August 1, 2011, STEELE pleaded guilty to being a felon in possession of a firearm, and on December 8, 2011, he was sentenced to180 months in the Federal Bureau of Prisons.
BRIAN STEVEN MYERS, age 30, of Airport Road, Rockingham, was federally indicted in the Middle District of North Carolina on August 29, 2011. On October 3, 2011, MYERS pleaded guilty to being a felon in possession of a firearm, and on February 15, 2012, he was sentenced to 57 months in the Federal Bureau of Prisons.
CHRISTOPHER CHAD LEVINER, age 23, of Osborne Road, Rockingham, was federally indicted in the Middle District of North Carolina on July 25, 2011. On October 3, 2011, LEVINER pleaded guilty to possession with intent to distribute cocaine base and being a felon in possession of a firearm, and on February 15, 2012, he was sentenced to 120 months in the Federal Bureau of Prisons.
LAWRENCE TYRONE DYE, JR., age 32, of Wilderness Drive, Rockingham, was federally indicted in the Middle District of North Carolina on August 11, 2011. On October 3, 2011, DYE pleaded guilty to distribution of cocaine base, and on February 15, 2012, he was sentenced to 70 months in the Federal Bureau of Prisons.
CASES PENDING SENTENCING
PHILLIP BRUCE KINGSLEY, age 64, of South Carolina Street, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 6, 2012, KINGSLEY pleaded guilty to being a felon in possession of a firearm and ammunition. KINGSLEY is scheduled to be sentenced on April 18, 2012, at 2:00 p.m. in Greensboro.
JIMMY DELL OTT, JR., age 33, of Gathings Street, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 6, 2011, OTT pleaded guilty to being a felon in possession of a firearm. OTT is scheduled to be sentenced on April 18, 2012, at 9:30 a.m. in Greensboro.
MARCO MICHACA SILVA, age 35, of Airport Road, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On January 10, 2012, SILVA was convicted by a jury of reentry by a previously deported alien and being an illegal alien in possession of a firearm. SILVA is scheduled to be sentenced on May 11, 2012, at 2:00 p.m. in Greensboro.
BRENT ALEXANDER EVERETT, age 22, of Daniels Street, Hamlet, was federally indicted in the Middle District of North Carolina on September 27, 2011. On November 9, 2011, EVERETT pleaded guilty to being a felon in possession of a firearm. EVERETT is scheduled to be sentenced on March 9, 2012, at 9:30 a.m. in Winston-Salem.
BOBBY DARRYL LEDBETTER, age 49, of Ledbetter Hailey Road, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 7, 2011, LEDBETTER pleaded guilty to being a felon in possession of a firearm. LEDBETTER is scheduled to be sentenced on April 19, 2012, at 2:00 p.m. in Greensboro.
MATTHEW LAMAR BEMBRY, age 27, Armstead Street, Rockingham, was federally indicted in the Middle District of North Carolina on September 27, 2011. On October 3, 2011, BEMBRY pleaded guilty to being a felon in possession of a firearm. BEMBRY is scheduled to be sentenced on March 19, 2012, at 2:00 p.m. in Winston-Salem.
The convictions referenced above are the result of close cooperation between the Richmond County Sheriff’s Office, the Rockingham Police Department, the North Carolina State Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Richmond County District Attorney’s Office, and the U.S. Attorney’s Office for the Middle District of North Carolina.
Rapid City Man Convicted of Assaulting A Park RangerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City man convicted of Assault on a Federal Officer was sentenced on January 3, 2013, by U.S. Magistrate Judge Veronica L. Duffy. Cody Gallagher, age 25, was sentenced to 2 years’ probation with 4 months in home confinement and ordered to pay $25 to the victims’ assistance fund.
In July 2012, at Horsethief Lake Campground, Gallagher assaulted a park ranger who was attempting to make Gallagher vacate the area. He pleaded guilty on October 10, 2012.
This case was investigated by the Pennington County Sheriff's Office and the National park Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Producer of Child Pornography SentencedRead the Press Release
GREENSBORO, N.C. -- United States Attorney Ripley Rand announced that a Concord man was sentenced today to 120 years in prison and supervised release for life for production of child pornography. David Matthew Hallman, 42, of Concord, North Carolina, pleaded guilty to four counts of production of child pornography in August 2012. United States District Judge Catherine C. Eagles sentenced Hallman to 1,440 months in prison to be followed by lifetime supervised release. Co-defendant Mary Freda Williams, 33, was sentenced on December 17, 2012, by United States District Judge William L. Osteen, Jr., to 40 years imprisonment followed by lifetime supervised release. Hallman sexually exploited multiple children ranging in age from 1 to 12, and produced thousands of images and videos of that sexual exploitation.This case resulted from joint efforts of federal and state authorities and was investigated by the Federal Bureau of Investigation, the Cabarrus County Sheriff’s Office, and the Concord Police Department. The case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy. “Our office would like to thank Cabarrus County District Attorney Roxann Vaneekhoven and Assistant District Attorney Ashlie P. Shanley for their partnership and coordination, which made this prosecution possible,” said U.S. Attorney Rand. “The sentences imposed by the Court are more than appropriate given the horrifying facts in these cases.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###Preparing A False Tax Return Lands Man in Federal PrisonRead the Press Release
HOUSTON - Kermit Woods has landed in federal prison following his conviction for willfully aiding and assisting in the preparation and presentation of a false U.S. Individual Income Tax Return, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Woods pleaded guilty to the charge March 30, 2012, at which time he admitted he owned and operated an income tax preparation business in Houston, known as L&L Finance.
Today, U.S. District Judge Gray H. Miller, who accepted the guilty plea, sentenced Woods to a 24-month-term of federal imprisonment which will be followed by one year of supervised release. Woods had previously agreed to pay restitution to the United States in the amount of $362,340, which is the amount of the tax loss on false income tax returns he prepared at L&L Finance during years 2004 through 2008. At the hearing today, Woods proved he had paid almost all of this restitution toward the tax loss on the tax returns he had prepared for others and intends to pay the remainder shortly.
As part of his plea agreement, Woods agreed to never again aid or assist in the preparing or presenting of tax returns for any taxpayer except himself. Woods also agreed not to oppose any civil action brought by the United States seeking to enjoin Woods from preparing income tax returns for others.
Woods also agreed that the relevant conduct the court will consider at sentencing should include an additional $346,479 that Woods did not report and pay with his own originally-filed income tax returns for years 2005 through 2008. The plea agreement notes that after Woods learned that he was under a criminal tax investigation, he filed amended his income tax returns for years 2005 through 2008 and paid the $346,479 in additional taxes for those years.
Woods further admitted in the plea agreement that in an attempt to conceal his income and assets from the IRS, he placed items he purchased in another’s name, including the home that he built for himself, his investment real estate, the title to his Jaguar automobile and the title to his boat. Woods admitted that he also had another person sign an assumed name certificate in Harris County, Texas, as though that person owned the income tax preparation business he operated.
Previously released on bond, Woods was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher and by Department of Justice Tax Division Trial Attorney Tracy Gostyla.
Pittsburgh Ex-Convict Pleads Guilty to Tax ObstructionRead the Press Release
Michael Carlow, a resident of Pittsburgh, pleaded guilty today to corruptly endeavoring to obstruct the Internal Revenue Service (IRS), the Justice Department and IRS announced. Carlow appeared before U.S. District Judge David Cercone.
In 1996, Carlow pleaded guilty to bank fraud and tax fraud in federal court and was sentenced to eight years in prison. Upon his release in 2002, Carlow resided at the home of his girlfriend, Elizabeth Jones, in Pittsburgh.
According to documents filed in the case, the IRS assessed more than $6 million in overdue taxes, interest and penalties against Carlow for the years 1992 through 1996. However, from 2000 through 2011, in order to thwart efforts by the IRS to collect what he owed, Carlow concealed his assets and income through Jones and eight different nominee corporations. According to documents filed in the case, Carlow maintained a secret interest in various corporations and had fees and royalties paid to Jones rather than to himself. He also failed to report his ownership and control of corporate assets to U.S. Probation and the IRS. Carlow filed false U.S. individual income tax returns for 2003-2006 and failed to file U.S. individual income tax returns from 2008 through 2011. In August 2011, Jones pleaded guilty to her conduct related to acting as a nominee for Carlow.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, commended the investigative efforts of IRS - Criminal Investigation Special Agents, who investigated the case, and Tax Division Trial Attorneys Kenneth Vert and Jeffrey McLellan, who are prosecuting the case.
Sentencing is scheduled for Oct. 4, 2013.
Pine Ridge Woman Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge woman convicted of Assault by Striking, Beating, or Wounding was sentenced on January 3, 2013, by U.S. Magistrate Judge Veronica L. Duffy. Matilda Iron Teeth, a/k/a Matilda Red Shirt, a/k/a Tilly, age 55, was sentenced to 6 months’ imprisonment and ordered to pay $10 to the victims’ assistance fund.
In February 2012, Iron Teeth assaulted a man during an argument. She pled guilty on October 11, 2012.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Iron Teeth was immediately turned over to the custody of the U.S. Marshal.
Pennsylvania State Inmate Pleads Guilty to Assault and Threats Against Federal OfficialsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that Stephen Christopher Pyle, age 27, of Albion, Pennsylvania, entered a guilty plea Thursday in U.S. District Court in Allentown to a two-count felony criminal information charging him with threatening to murder a federal law enforcement official and assaulting a federal employee.
According to United States Attorney Peter J. Smith, Pyle was serving concurrent sentences for both a previous state and federal conviction when he mailed a letter to the United States Attorney’s office for the Eastern District of Pennsylvania threatening to murder the Assistant United States Attorney who handled his federal prosecution for threatening the President of the United States.
After Pyle was moved from the state correctional facility to Philadelphia to face new federal charges, he assaulted a member of the medical staff. The victim was able to fight Pyle off and federal corrections officers were able to restrain and control him.
U.S. District Court Judge James Knoll Gardner scheduled the sentencing for May 13, 2013 in Allentown.
As a result of his guilty plea, the statutory maximum penalty for the offences charged in the criminal Information is imprisonment of up to 30 years.
The investigation was conducted by the United States Marshals Service and the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley. The matter is being prosecuted by the United States Attorney’s Office for the Middle District of Pennsylvania at the request of Eastern District officials who were required to recuse themselves because a member of the staff in that office was an alleged target of the threat.
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Palm Beach County Man Sentenced for Producing Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Acting Special Agent in Charge, Federal Bureau of Investigation, announced yesterday’s sentencing of defendant Frank Joseph Smith, of Palm Beach County, on charges of producing child pornography, in violation of 18 U.S.C. Section 2251(a). At today’s hearing, U.S. District Judge Donald M. Middlebrooks sentenced Smith to 240 months in prison.
During an investigation into a website advertising escort services, the FBI and other law enforcement officers executed a search warrant at Smith’s residence. The search resulted in the seizure of computers, phones, documents and records. In addition, law enforcement agents discovered images of child pornography that Smith had produced using his Apple iPhone.
Mr. Ferrer commended the investigative efforts of the Federal Bureau of Investigation and the Jupiter Police Department. The case was prosecuted by Assistant United States Attorney Lothrop Morris.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Orlando Man Sentenced to More Than Six Years for Possessing Child PornographyRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway sentenced Donald G. Weiss (68, Orlando) yesterday to 6 ½ years in federal prison for possessing child pornography. The court also ordered Weiss to forfeit the computer and hard drives that he used to possess the child pornography. As part of his sentence, the court ordered him to serve 10 years of supervised release following his prison sentence and to register as a sex offender. Weiss pleaded guilty on July 30, 2012.
According to court documents, an employee of a computer repair store found child pornography while repairing Weiss's computer. The employee contacted law enforcement officers. After searching his computer, officers interviewed Weiss, who admitted to possessing child pornography since at least 1998. Law enforcement officers searched several hard drives that Weiss owned and found 698 pictures and 10 movies of child pornography involving children less than 12 years old.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
Operator of Payroll Companies Sentenced in North Carolina for Federal Fraud and Money Laundering CrimesRead the Press Release
GREENSBORO, N.C. - Arthur S. Weiss of Winston-Salem, N.C., was sentenced yesterday to 185 months in prison for employment tax fraud and other crimes by Judge Thomas D. Schroeder, announced Ripley Rand, U.S. Attorney for the Middle District of North Carolina; Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; and Richard Weber, Chief of Internal Revenue Service (IRS) - Criminal Investigation. Judge Schroeder ordered Weiss to pay more than $7 million in restitution to numerous victims, including the IRS, the North Carolina Department of Revenue, and former clients.
Weiss pleaded guilty to charges of wire fraud, bank fraud, money laundering, and tax obstruction on October 5, 2012. According to documents filed in the case, Weiss operated professional employer organizations (PEOs), which provided payroll-related services to client companies. For his client companies, Weiss agreed to pay the employees, withhold and remit federal and state taxes, prepare and file the federal and state employment tax returns, and provide workers compensation insurance (WCI). Weiss did pay the employees and withhold the employment taxes, but he failed to remit the employment taxes, keeping them for his personal use. From 2004 to 2012, Weiss failed to file employment tax returns and failed to pay over to the IRS employment taxes in excess of $4 million. In addition, Weiss collected WCI premiums from his clients but failed to obtain adequate WCI protection, and diverted WCI premiums for his personal use.
“Fraudsters beware - we will relentlessly pursue anyone who cheats our businesses, our financial institutions, or the treasury,” said U.S. Attorney Rand. “This defendant’s business model and financial activities were based on stealing from innocent people, and his audacious conduct deserves the substantial sentence imposed by the court.”
“Business owners who game the system by evading payment of payroll taxes hurt American taxpayers and law-abiding business owners who are at a competitive disadvantage,” said Assistant Attorney General Keneally. “The sentence handed down today shows that those who willfully violate their employment tax obligations will be prosecuted and risk severe punishment for their crimes. In addition, they will still be held responsible for the taxes due, together with interest and civil penalties.”
“Mr. Weiss used a foundation of fraud and deceit in order to cheat the government and is now being held accountable for his egregious behavior,” said Richard Weber, Chief, IRS, Criminal Investigation. “As the operator of a payroll service company, Weiss had an inescapable obligation to remit withheld employment taxes to the IRS. IRS Criminal Investigation intends to vigorously pursue anyone who collects taxes and fails to timely remit those taxes.”
According to court documents, Weiss used a portion of his fraud proceeds to purchase expensive jewelry and exotic cars, such as Ferraris, Lamborghinis, and Porsches. During a trip to Europe, Weiss fraudulently reported four pieces of jewelry lost or stolen, and received $177,480 from his insurance company. The jewelry was later seized during a search at his former residence in Marion, N.C.
Weiss also admitted to committing bank loan fraud. According to publicly filed documents, in order to receive four loans from a bank, Weiss provided numerous personal income tax returns to the bank. Each of the returns Weiss provided to the bank included significantly greater income than the returns actually filed with the IRS.
The case was investigated by IRS-Criminal Investigation, the FBI, the North Carolina Industrial Commission’s Fraud Unit, the North Carolina Department of Insurance-Investigations, and the McDowell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Clifton Barrett and Trial Attorney Todd Ellinwood of the Tax Division.
Omaha Man Sentenced to 7 Years for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Steven D. Fonder, age 33 of Omaha, was sentenced in United States District Court in Omaha for receiving and possessing child pornography. The Honorable Laurie Smith Camp, Chief Judge sentenced Fonder to 84 months imprisonment on Count I for receiving and distributing child pornography and 84 months on Count II for possessing child pornography. The sentences were ordered to run concurrently to each other. There is no parole in the federal system. After his release from prison Fonder will be on supervised release for ten years and will be required to register as a sex offender.
On September 13, 2011 an Investigator with the Nebraska State Patrol was conducting an undercover investigation looking for individuals sharing child pornography on the internet. The information developed through the investigation was used to obtain a federal search warrant.
On April 4, 2012 agents with the FBI Omaha Cyber Crimes Task Force served a search warrant on Fonder’s South Omaha residence. Forensic analysis of the computer revealed 1,250 videos and 40,000 images of child pornography. The children depicted in sexually explicit conduct ranged from infants to teens. Fonder admitted to collecting child pornography over a six year period.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
This matter was investigated by the Omaha FBI’s Cyber Crime Task Force (CCTF), of which the Nebraska State Patrol is a partner. The Omaha CCTF is a multi-jurisdictional task force consisting of eleven federal, state and local law enforcement agencies from Nebraska and Iowa. The mission of the Omaha CCTF is to investigate and apprehend high technology criminals and to protect our communities by preventing high technology crime and national security threats involving computers and computer networks. The Omaha CCTF was established on the premise that the capabilities of law enforcement agencies to investigate computer and high technology related crimes are enhanced in a task force setting involving the sharing of resources and expertise.
Ocean County, N.J., Man Sentenced to 22 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., man was sentenced today to 22 years in prison for taking pornographic pictures of two minors, ages 6 and 3, in Pennsylvania, and distributing those pictures to other individuals between 2008 and 2010, U.S. Attorney Paul J. Fishman announced.Dwayne Tucker, 26, of Bayville, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an Information charging him with one count of production of child pornography and one count of possession of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
“The severe sentence imposed on this defendant is commensurate with the harm he caused his victims,” U.S. Attorney Fishman said. “As this case shows once again, so-called ‘child pornography’ is the recorded sexual assault of a child. The producers of this material are dangerous and must be treated accordingly by the judicial system.”“This sentence should serve as a warning to those who seek to victimize and rob young children of their innocence,” said Andrew McLees, special agent in charge of Homeland Security Investigations Newark. “HSI will maintain its unrelenting commitment to protecting our children by bringing child predators to justice, a fact evidenced by the significant sentence which Tucker received.”
According to documents filed in this case and statements made in court:In addition to taking and distributing the pictures, Tucker admitted to possessing more than 600 images of child pornography on his computer and accessories, which were seized from his Bayville residence in December 2010. Tucker acknowledged that among the images of child pornography he possessed 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.
Tucker was previously charged by Criminal Complaint with possession of child pornography in December 2010, and by Indictment with distribution and possession of child pornography in February 2012. He has been in custody since his arrest in December 2010.In addition to the prison term, Judge Pisano sentenced Tucker to lifetime supervised release.
U.S. Attorney Fishman credited special agentsU.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge McLees, with the investigation leading to today’s sentence.The government is represented by Assistant U.S. Attorney Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Hal Haveson Esq., Princeton, N.J.
Multifest Executive Pleads Guilty to Federal Income Tax FraudRead the Press Release
Starks admitted to stealing more than $300,000 from the Charleston-based organization
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that a Charleston festival executive director pleaded guilty in federal court to income tax fraud. Deborah S. Starks, 55, of Cross Lanes, W.Va., admitted that she filed a false tax return in connection with an embezzlement scheme that drained more than $300,000 from MultiCultural Festival of WV, Inc. (“MultiFest”), a Charleston-based non-profit organization.
U.S. Attorney Booth Goodwin said, "Ms. Starks failed to report more than half a million dollars of income on her taxes. More than $300,000 of that unreported income was stolen by her from the charity that puts on Multifest each year.”
Goodwin continued, “Obviously $300,000 is a substantial amount of money to any company, but it's especially significant to a small business or charity. That's why my office has focused on investigating and prosecuting cases like these to protect such organizations and to send a clear message that such conduct will not be tolerated in this district."
Starks was the treasurer of MultiFest at the time of the scheme. MultiFest sponsors a music, arts and crafts, and dance festival held annually in Charleston. As treasurer, Starks was in charge of revenue and expenses for MultiFest and maintained the organization’s bank accounts.
Starks admitted that beginning in or about 2005 and continuing until 2010, she embezzled approximately $306,000 from MultiFest. She also admitted additional unreported taxable income of approximately $200,000. Starks further admitted that she wrote personal checks to herself and to other people, withdrew cash in the form of checks, and made ATM transactions from MultiFest bank accounts during the scheme. Starks also admitted that the embezzled funds were used primarily to support her personal gambling activities.
In addition to the embezzlement scheme, the defendant admitted that she prepared, signed and filed a joint U.S. Individual Income Tax Return for each of the calendar years 2005, 2006, 2007, 2008, 2009 and 2010 and did not report the embezzled funds as income.
Starks has agreed to pay restitution to MultiFest in the amount of $306,872.04 and the Internal Revenue Service (IRS) in the amount of $128,626.
Starks faces up to three years in prison and a $250,000 fine when she is sentenced on April 2, 2013 by United States District Judge John T. Cophenhaver, Jr.
This matter was investigated by the IRS. Assistant United States Attorney Eumi L. Choi is handling the prosecution.
This case is being prosecuted as part of the United States Attorney’s Office for the Southern District of West Virginia’s Small Business Protection Initiative. U.S. Attorney Booth Goodwin announced the Small Business Protection Initiative in November 2010. Small Business Protection is a key initiative of the U.S. Attorney’s Office for the Southern District of West Virginia that focuses on the prosecution of individuals who defraud small West Virginia businesses located in the Southern District.
Montgomery Man Pleads Guilty to Bank RobberyRead the Press Release
Montgomery, Alabama - Darrin J. Bell, 32 years old, of Montgomery, Alabama, pled guilty today to one count of bank robbery and one count of using a firearm during a violent crime, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
On October 5, 2011, Bell walked into the Community Bank and Trust located at 9190 East Chase Parkway in Montgomery. He pulled a gun from his duffle bag and demanded money from the teller. The teller complied and gave him approximately $1500. Bell then left the bank area on his motorcycle. Bell was indicted and pled guilty to bank robbery. Because Bell used a firearm during the bank robbery, he was also charged and pled guilty to using a firearm during a violent crime.
“Most everyone uses banks and most everyone has to visit their bank from time to time,” said U.S. Attorney Beck. “When a criminal uses a gun and endangers the innocent patrons and tellers at that bank, we will prosecute. This is a serious crime, which requires serious punishment. My office is unrelenting, and we will not let up on these criminals, we will continue to utilize all the resources possible to prosecute and bring these criminals to justice.”
"The collaboration between federal and municipal law enforcement agencies paved the way for the successes of this investigation," stated Stephen E. Richardson, FBI Special Agent in Charge, Mobile Division.
The maximum punishment for bank robbery is 20 years in prison, a fine of no more than $250,000.00, and a period of supervised release not to exceed three years. The maximum punishment for using a firearm in a violent crime is a term of imprisonment of at least seven years, a fine not to exceed $250,000.00, and a period of supervised release of not more than three years.
The United States Attorney thanks the Federal Bureau of Investigation, the Montgomery Police Department and the Opelika Police Department for their hard work and dedication on this case. This case is being prosecuted by Assistant United States Attorney Susan R. Redmond.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Medical Assistant Pleads Guilty to Conspiracy to Bill Medicare for Unlicensed Physician’s ServicesRead the Press Release
NEWARK, N.J. – A medical assistant at a pair of large medical services companies with offices in New Jersey and New York admitted today to conspiring with the companies’ chief executive officer to defraud Medicare over a four-year period by performing illegal, unlicensed physicians’ services for patients, U.S. Attorney Paul J. Fishman announced.
Mario Roncal, 61, of Woodland Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Indictment charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
In 1988, Roncal received a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico. Since that time, however, he was never licensed to practice medicine in New Jersey, New York, or any other state in the United States. In 2000 and 2002, Roncal was advised by the N.J. Board of Medical Examiners that he were ineligible to obtain a medical license in New Jersey because his medical school was not accredited and he lacked certain requirements for international medical students to obtain a license in the United States.
From 2004 to the present, Roncal was employed ostensibly as a medical assistant for Cardio-Med Services LLC, in New Jersey, and for Comprehensive Healthcare & Medical Services LLC, in Manhattan and Queens, New York. These companies were owned and operated by the CEO and head physician at Cardio-Med and Comprehensive Healthcare, who is a board-certified cardiologist licensed to practice medicine in New Jersey and New York, and who is identified in the Indictment as the “CEO-Physician.”
According to Roncal, from 2004 through at least 2008, he conspired with the CEO-Physician to cause Cardio-Med and Comprehensive Healthcare to submit false billing claims to Medicare representing that physicians’ services had been provided by the CEO-Physician when those services had, in fact, been provided by Roncal. Roncal admitted that he held himself out to fellow employees and to patients as “Dr. Roncal,” and that he examined new patients as well as the CEO-Physician’s follow-up patients. He also admitted that he ordered diagnostic tests for patients; diagnosed patients with medical conditions, diseases, and the like; and recommended and prescribed courses of treatment, including surgery and enhanced external counter pulsation (or “EECP”), for patients. Roncal stated that he intentionally ordered unnecessary diagnostic tests for the patients he unlawfully treated, and that he willfully misdiagnosed patients with diseases and conditions such as coronary artery disease and angina, for the purpose of fraudulently prescribing and administering treatments of EECP, at the direction of the CEO-Physician. To disguise that he, rather than the CEO-Physician, was providing these physicians’ services to patients, Roncal forged the CEO-Physician’s signature on paperwork associated with these unlawful services, including on prescription pads and patient charts.
The count to which Roncal pleaded guilty is punishable by a maximum potential penalty of 10 years in prison. Sentencing is scheduled for April 17, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Thomas F. O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Marie Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal investigators at the U.S. Attorney’s Office, for the investigation leading to the guilty plea.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
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Defense counsel: Alan D. Bowman Esq., NewarkRoncal Indictment
Medical Assistant Pleads Guilty to Conspiracy to Bill Medicare for Unlicensed Physician’s ServicesRead the Press Release
NEWARK, N.J. – A medical assistant at a pair of large medical services companies with offices in New Jersey and New York admitted today to conspiring with the companies’ chief executive officer to defraud Medicare over a four-year period by performing illegal, unlicensed physicians’ services for patients, U.S. Attorney Paul J. Fishman announced.
Mario Roncal, 61, of Woodland Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Indictment charging him with one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
In 1988, Roncal received a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico. Since that time, however, he was never licensed to practice medicine in New Jersey, New York, or any other state in the United States. In 2000 and 2002, Roncal was advised by the N.J. Board of Medical Examiners that he were ineligible to obtain a medical license in New Jersey because his medical school was not accredited and he lacked certain requirements for international medical students to obtain a license in the United States.
From 2004 to the present, Roncal was employed ostensibly as a medical assistant for Cardio-Med Services LLC, in New Jersey, and for Comprehensive Healthcare & Medical Services LLC, in Manhattan and Queens, New York. These companies were owned and operated by the CEO and head physician at Cardio-Med and Comprehensive Healthcare, who is a board-certified cardiologist licensed to practice medicine in New Jersey and New York, and who is identified in the Indictment as the “CEO-Physician.”
According to Roncal, from 2004 through at least 2008, he conspired with the CEO-Physician to cause Cardio-Med and Comprehensive Healthcare to submit false billing claims to Medicare representing that physicians’ services had been provided by the CEO-Physician when those services had, in fact, been provided by Roncal. Roncal admitted that he held himself out to fellow employees and to patients as “Dr. Roncal,” and that he examined new patients as well as the CEO-Physician’s follow-up patients. He also admitted that he ordered diagnostic tests for patients; diagnosed patients with medical conditions, diseases, and the like; and recommended and prescribed courses of treatment, including surgery and enhanced external counter pulsation (or “EECP”), for patients. Roncal stated that he intentionally ordered unnecessary diagnostic tests for the patients he unlawfully treated, and that he willfully misdiagnosed patients with diseases and conditions such as coronary artery disease and angina, for the purpose of fraudulently prescribing and administering treatments of EECP, at the direction of the CEO-Physician. To disguise that he, rather than the CEO-Physician, was providing these physicians’ services to patients, Roncal forged the CEO-Physician’s signature on paperwork associated with these unlawful services, including on prescription pads and patient charts.
The count to which Roncal pleaded guilty is punishable by a maximum potential penalty of 10 years in prison. Sentencing is scheduled for April 17, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez; the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Thomas F. O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Marie Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal investigators at the U.S. Attorney’s Office, for the investigation leading to the guilty plea.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
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Defense counsel: Alan D. Bowman Esq., NewarkRoncal Indictment
McLaughlin Man Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a McLaughlin man charged with Assault With a Dangerous Weapon was sentenced on January 4, 2013, by U.S. District Judge Charles B. Kornmann. Rodney Lyman Reeds, age 44, was sentenced to 41 months in custody, 3 years of supervised release, and a $100 special assessment.
Reeds was indicted by a federal grand jury in May of 2012. On October 1, 2012, he pled guilty to Count II of the Indictment charging Assault With a Dangerous Weapon.
The conviction stems from an incident in McLaughlin where Reeds used a knife to assault the victim. As a result of the assault, the victim sustained a puncture wound to his neck which required stitches.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy Morley prosecuted the case.
Reeds was immediately turned over to the custody of the U.S. Marshal.
McLaughlin Man Sentenced on Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that a McLaughlin man charged with Assault With a Dangerous Weapon was sentenced on January 3, 2013, by U.S. District Judge Charles B. Kornmann. Roland Joseph Thundershield, age 39, was sentenced to 37 months in custody, 3 years of supervised release, and a $100 special assessment.
Thundershield was indicted by a federal grand jury in May 2012. He pled guilty to the indictment in October 2012. The conviction stems from an incident in January 2011 when Thundershield assaulted the victim with a box cutter.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
Thundershield was immediately turned over to the custody of the U.S. Marshal.
McLaughlin Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Jody Charles Red Bird, age 33, of McLaughlin, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to an indictment that charged him with Involuntary Manslaughter. The maximum penalty upon conviction is
8 years' imprisonment, a $250,000 fine, or both, and a period of supervised release of 3 years.The conviction stems from an incident on June 12, 2012, when Red Bird and others were drinking alcohol in Timber Lake, while waiting for work to be done on a vehicle. Following completion of the maintenance, Red Bird and others traveled from Timber Lake to Little Eagle, and eventually decided to drive to McLaughlin. Red Bird was driving the vehicle, and while en route to McLaughlin, he lost control of the vehicle and slid into the ditch abutting the opposing lane of traffic. The vehicle rolled several times, and both Red Bird and the victim were ejected. As a result of the injuries sustained in the accident, the victim died. At the time of the accident, Red Bird had a blood alcohol concentration over three times the legal limit.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 15, 2013. Red Bird was remanded to the custody of the U.S. Marshal pending sentencing.
McLaughlin Man Pleads Guilty to Felon in Possession ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Jess Porras, age 52, of McLaughlin, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to Count I of an Indictment that charged him with being a Felon In Possession of a Firearm. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine or both, and a period of supervised release of 3 years.
The conviction stems from an incident on December 29, 2011, when the Defendant, while acting as a guide on a deer hunt on tribal land, grabbed a gun from a hunter and shot a deer. The Defendant was previously prosecuted in 1994 and is a convicted felon.
The investigation was conducted by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered and a sentencing date was set for April 29, 2013. The defendant was released on bond pending sentencing.
Maryland Man Sentenced to 36 Months for Transporting Women for Interstate Prostitution RingRead the Press Release
ALEXANDRIA, Va. – Marcos Sanchez Hernandez, also known as “Marquito,” 37, an illegal alien from Mexico who lived in Riverdale, Md., was sentenced today to 36 months in prison, followed by two years of supervised release, for transporting more than 100 women from other states to engage in commercial sex in Virginia.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement sentencing by United States District Judge Gerald Bruce Lee.
“For years, Sanchez Hernandez ran a sex trafficking ring that reached into our communities here in Virginia and out to our neighboring states,” said U.S. Attorney MacBride. “Today, he learned what we hope other sex traffickers are rapidly discovering – sex trafficking is not a viable business enterprise in the Commonwealth of Virginia, and those who engage in it will face lengthy prison time when caught.”
“Sanchez Hernandez profited for years from his multi-state sex trafficking ring,” said HSI SAC Torres. “HSI DC does not tolerate the exploitation of others and is committed to bringing to justice those who are involved in the sex trafficking industry.”
Sanchez Hernandez pled guilty on Oct. 15, 2012, to conspiracy to transport women to engage in prostitution. According to court records, from 2005 through July 2012 Sanchez Hernandez was part of a network that transported women to engage in commercial sex acts in Delaware, Maryland, the District of Columbia, and various locations in Virginia, including Fairfax County, Prince William County, Alexandria, Arlington, Newport News, Norfolk, and Virginia Beach. He admitted to transporting more than 100 women and selling their bodies in 10- to 15-minute increments for $30.
In 2010, Sanchez Hernandez took over leadership of the enterprise and trained an employee where to drive the prostitutes, how to collect proceeds, and how to avoid law enforcement. He advertised the prostitution business by handing out business cards at Spanish restaurants, check cashing stores, construction sites and day laborer sites. Eventually, the proceeds of the operation were sent to the enterprise’s former leader in Mexico.
This case was investigated by the Transnational Gang Unit of Homeland Security Investigations, which participates in the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes. From FY2011 to the present, 46 defendants have been prosecuted in 27 cases in the Eastern District of Virginia for human trafficking and trafficking-related conduct involving at least 32 victims.
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.Maryland Man Pleads Guilty to Enticing A Child and Conspiring to Distribute HeroinRead the Press Release
ALEXANDRIA, Va. – Robert Chin, 65, of Silver Spring, Md., pleaded guilty today to conspiring to distribute heroin to young women in return for sexual favors, including enticing a child into engaging in sexual activity.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Debra Evans Smith, Acting Assistant Director in Charge of the FBI’s Washington Field Office; and Barry Barnard, Acting Chief of the Prince William County Police Department, made the announcement after the plea was accepted by United States District Judge T. S. Ellis III.
Chin pleaded guilty to enticement of a minor and conspiracy to distribute heroin, which both carry a mandatory minimum of 10 years and a maximum penalty of life in prison. Sentencing is scheduled for April 5, 2013. Chin will also be required to register as a sex offender.
According to a statement of facts filed with his plea agreement, from 2007 until his arrest in November 2012, Chin conspired with others to bring heroin and oxycodone into the Washington Metropolitan Area. Chin would then distribute the drugs to young women, including at least one minor, in return for sexual favors. In June 2012, Chin filmed at least some of the encounters with the minor girl in which she performed a number of sex acts with different individuals after receiving drugs from Chin.
This case was investigated by the FBI’s Washington Field Office, with assistance from the Prince William County/Manassas City/Manassas Park Narcotics Task Force. Assistant United States Attorney John Eisinger is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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.Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of New Jersey Resident for Kidnapping ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of MICHAEL VANHISE for conspiracy to commit kidnapping. VANHISE allegedly agreed to pay co-conspirator Gilberto Valle, who was an active-duty New York City Police Officer at the time, to kidnap a woman in New York (the “Victim”), and to bring her to his home in New Jersey, where she would be raped. He also allegedly participated in planning the kidnapping of a female minor. VANHISE was arrested by FBI special agents this morning at his residence in Hamilton, New Jersey, and will be presented later today before U.S. Magistrate Judge Andrew J. Peck in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged in the complaint, Michael Vanhise engaged in conduct that reads like a script for a bad horror film, but fortunately, neither he nor his co-conspirators were able to act out the twisted conspiracies described in the complaint in real-life. His arrest today is the second in this bone-chilling case, but we are not finished.”
FBI Assistant Director-in-Charge George Venizelos said “The seriousness of the alleged conspiracy is self-evident. No effort to characterize the defendant’s actions is necessary. The factual allegations more than suffice to convey the depravity of the offense.
According to the allegations in the Complaint filed yesterday in Manhattan federal court, and other public documents:
In a February 2012 email conversation, VANHISE and Valle negotiated and agreed that Valle would kidnap the Victim for $5,000. In those conversations, VANHISE and Valle planned for Valle to render the Victim unconscious, bind her hands and feet, gag her, stuff her into a large suitcase, and deliver her to VANHISE’s home. Valle assured VANHISE that the Victim would be delivered alive, so that he could rape her.
VANHISE also emailed photographs of a female minor, whom VANHISE knew well, to other co-conspirators (“CC-2” and “CC-3”). CC-2 and CC-3 both expressed interest in kidnapping the child, and he provided them with the purported address of the girl, which was in close proximity to the girl’s actual home address.
VANHISE, 22, is charged with one count of conspiracy to commit kidnapping, which carries a maximum sentence of life in prison, and a maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
Valle, 28, of Forest Hills, New York, was charged in October 2012 with one count of kidnapping conspiracy, and one count of intentionally and knowingly accessing a computer without authorization, and exceeding his authorized access, and thereby obtaining information from a department and agency of the United States. His case remains pending.
Mr. Bharara praised the outstanding investigative work of the FBI. He added that the investigation is continuing.
The prosecution of this case is being handled by the Office's Violent Crimes Unit. Assistant United States Attorneys Hadassa Waxman and Randall W. Jackson are in charge of the prosecution.
The charges against VANHISE and Valle are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Michael Vanhise Complaint
Man Sentenced to More Than 6 Years in Prison for Third Illegal Reentry and Failure to Register as A Sex OffenderRead the Press Release
DAVENPORT, IA – On January 4, 2013, Osvaldo Montes Olarte, age 36, was sentenced to 77 months of imprisonment for illegally reentering the United States and for failing to register as a sex offender, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Olarte to three years of supervised release for the immigration offense and seven years of supervised release for his failure to register as a sex offender.
Olarte illegally entered the United States in 1995. Olarte was convicted of Sexual Abuse in the Third Degree in Iowa in 2001 and he was deported in 2003 after his incarceration. As a result of his sexual abuse conviction Olarte was required to register as a sex offender. Olarte reentered the United States and was deported again in both 2006 and 2010. Olarthe thereafter illegally reentered the United States for the third time and returned to Iowa. Olarte knowingly failed to register as a sex offender upon his return to Iowa.
This case was investigated by the United States Marshals Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Madison Woman Who Made False Statements About Use of Federal Funds Sentenced to Federal PrisonRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that AMY KUHNER, 55, formerly of Madison, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for making false statements about her use of federal grant monies. KUHNER also was ordered to pay a $5,000 fine.
“At a time when every dollar of federal spending is precious, we will not hesitate to act to protect the money taxpayers provide for worthy causes,” said U.S. Attorney Fein. “Any failure to fully and accurately account for such funds will be subject to investigation, and where merited, vigorous prosecution.”
“Individuals who handle federal grant funds have an obligation to the government and taxpayers to exercise the utmost care in accounting for those funds,” said Susan J. Waddell, Special Agent in Charge of the Boston Regional Office of the Office of the Inspector General for the U.S. Department of Health and Human Services. “The most basic and obvious obligation is simply to tell the truth about how those funds are used. This prosecution serves notice that where appropriate, we will not hesitate to investigate and prosecute those who violate that basic obligation.”
According to court documents and statements made in court, KUHNER was the Executive Director of Sunshine House, an organization formed for the purpose of constructing a facility in Madison to care for seriously ill children. In September 2001, Sunshine House received an $836,190 federal grant to pay part of the construction costs of the center from the Health Resources Services Administration (“HRSA”), a program of the U.S. Department of Health and Human Services. As Executive Director of Sunshine House, KUHNER was the only person who handled the grant money and exercised exclusive control over the use of the grant funds.
In July 2007, after all of the grant funds had been drawn down, HRSA asked Sunshine House to provide documentation of costs incurred by Sunshine House during the grant period. In pleading guilty, KUHNER admitted sending to HRSA documents that falsely stated that Sunshine House had incurred architectural and engineering costs to date in the amount of $594,225. The documents also omitted the fact that, from September 2001 through September 2006, KUHNER had received a gross salary of $417,932 and health insurance benefits totaling $22,294, and that most of this salary and benefits had been paid using grant funds.
In addition, KUHNER used grant funds to pay her salary in 2007 and 2008, after the grant had closed.
On July 25, 2012, KUHNER pleaded guilty to one count of making false statements about her use of federal funds.
This investigation was conducted by special agents from the Office of the Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney David J. Sheldon and Auditor Susan Spiegel.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Last Defendant Is Sentenced to the Statutory Maximum Term of Imprisonment in Case Involving W Financial Group’s $17 Million FraudRead the Press Release
Plano Father and Son Currently Serving Federal Prison Sentences for Roles in the Fraud
DALLAS — Adley Husni Abdulwahab, 37, was sentenced today by U.S. District Judge Barbara M. G. Lynn to the statutory maximum sentence of 10 years in federal prison for his role in an investment fraud scheme that he and two other defendants ran from 2006 - 2007 in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Abdulwahab was also ordered to pay nearly $13 million in restitution, jointly and severally with two other defendants who were charged in a related separate case, to the more than 175 victims they had defrauded, and he was ordered to forfeit any proceeds from the crime.
In pronouncing the sentence, Judge Lynn noted that this was a “horrible crime” and “a lot of elderly people lost their life savings.” Judge Lynn ordered that this sentence be served consecutively to the 60-year federal prison sentence that Abdulwahab is currently serving for his role in another securities fraud scheme out of the Eastern District of Virginia.
In the Northern District of Texas case, Abdulwahab, aka Adley H. Wahab, pleaded guilty in March 2012 to one count of engaging in a monetary transaction in property derived from unlawful activity (securities fraud). In related cases, Michael Wallens, Sr., formerly of Nantucket, Massachusetts, and his son, Michael Wallens, Jr., formerly of Plano, Texas, each pleaded guilty in 2010 to one count of securities fraud. Wallens, Sr. was sentenced to 54 months in prison and Wallens, Jr. was sentenced to 60 months in prison.
According to documents filed in the case, Abdulwahab and the Wallens’ offered and sold to investors Collateral Secured Debt Obligations (CDSOs), issued by W Financial Group. CDSOs are promissory notes and a type of security also known as an investment contract. Investors contributed money to a common enterprise, and in exchange, they expected to earn investment returns from the entrepreneurial efforts of persons associated with W Financial. Abdulwahab and the others defrauded investors by deceiving them about the safety of the CSDOs and the ways in which money invested in CSDOs was used.
Acting personally, and through sales agents, Abdulwahab, Wallens, Sr. and Wallens, Jr. offered and sold CSDOs with a total face value of more than $17 million to approximately 180 investors. Investors received several million dollars in payments from W Financial Group in return for their investments, but ended up losing more than $12 million.
Through the printed offering materials and other communications, Abdulwahab, Wallens, Sr. and Wallens, Jr. misrepresented a number of material facts to investors. For instance, they claimed that the insurers Lloyd’s of London and Republic Group “reinsured” the CSDOs, when in fact, as they well knew, the CDSOs were not insured. They also claimed that W Financial Group would enter into a “relationship of trust” with each investor, in which W Financial Group would comply with all the obligations of a fiduciary. In reality, however, as they well knew, they intended to betray and had betrayed the investors’ trust by using investor money for their own personal benefit, such as purchasing Wallen Sr.’s used car dealership from him; purchasing residential lots; and investing in a home building company and a power company.
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 http://www.stopfraud.gov/
The cases were investigated by the FBI and the FDIC Office of Inspector General, with substantial assistance from the Enforcement Division staff of the Securities and Exchange Commission. Assistant U.S. Attorney Alan M. Buie was in charge of the prosecutions.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 47-year-old Beaumont, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Charles Wilburn Odom pleaded guilty on Aug. 7, 2012 to possession of child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia Crone.According to information presented in court, on Oct. 28, 2010, federal officials conducted a search warrant at Odom’s residence in Beaumont, Texas. Several computers and digital storage were seized during the search and found to contain more than 140 videos and more than 79 images of child pornography. Some of the material would be considered sadistic or masochistic and some depicted prepubescent children under the age of 12. Odom was indicted by a federal grand jury on May 16, 2012.
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This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by ICE/HSI, Beaumont Police Department, and Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.Irish National Sentenced, Faces Deportation Proceedings for Falsely Representing U.S. CitizenshipRead the Press Release
PROVIDENCE, R.I. – Denis Quirke, 37, an Irish national, will be turned over to immigration officials for deportation proceedings after being sentenced today by U.S. District Court Judge William E. Smith to time served in federal prison for falsely representing to the government that he was a U.S. citizen when he applied for a Rhode Island identification card from the Rhode Island Department of Motor Vehicles in December 2011. Quirke has been detained in federal custody since his arrest on August 31, 2012.
Quirke’s sentence was announced by United States Attorney Peter F. Neronha; Todd Ziccarelli, Special Agent in Charge of the New England Field Office of the U.S. Department of State, Diplomatic Security Service; and Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations.
On October 19, 2102, Quirke pleaded guilty to an information charging him with one count each of false claim to United States citizenship and fraudulent use of a Social Security number. He admitted to the court that he misrepresented U.S. citizenship to the Rhode Island Department of Motor Vehicles when he presented the Social Security number of another person as proof of U.S. citizenship in an effort to gain a Rhode Island identification card.The matter was investigated by the U.S. Department of State, Diplomatic Security Service; and Social Security Administration, Office of the Inspector General/Office of Investigations.
The case was prosecuted by Assistant U.S. Attorneys Richard W. Rose and ZechariahContact: 401-709-5357
[email protected]Hyannis Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
Boston - A Hyannis man was sentenced yesterday for soliciting and recording underage girls engaged in sexually explicit conduct.
Kevin McNicol, 24, was sentenced by U.S. District Judge Douglas P. Woodlock to 15 years in prison to be followed by seven years of supervised release, including conditions prohibiting unsupervised contact with minors and unapproved Internet access for charges of the sexual exploitation of a child for the transmission of child pornography.
In March 2011, a website filed a cyber tip with the National Center for Missing and Exploited Children (NMCEC). An online user of the website had uploaded an image of suspected child pornography, specifically an image depicting a minor Asian girl, approximately 10-years-old, engaged in simulated oral sex. Law enforcement traced this posting back to McNicol at his residence in Hyannis.
In May 2011, a search warrant was executed at McNicol’s address where law enforcement located child pornography on a computer. Specifically, investigators observed several video files that depicted minor females exposing their genitals and/or engaging in sexual acts.
Forensic analysis later revealed that McNicol recorded underage and adult females engaging in such acts via the Internet. McNicol engaged the girls in web chats, whereupon he would solicit them to expose their breasts, anus, and/or vagina and ultimately engage in sexually explicit conduct for his viewing and recording. Law enforcement recovered 92 such video files, the majority of which depicted as many as 78 underage females. At least nine videos, depicting approximately eight different young girls, clearly meet the legal definition of child pornography and the remainder constitute either child pornography or child erotica.
United States Attorney Carmen M. Ortiz and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The matter was investigated by the Massachusetts Internet Crimes Against Children Task Force (ICAC) including Massachusetts State Police, Barnstable Police Department, Barnstable County Sheriff’s Office, Yarmouth Police Department, and the U.S. Postal Inspection Service. In coordination with the Cape and Islands District Attorney’s Office, the case was prosecuted by Assistant U.S. Attorneys Michael I. Yoon and Stacy Dawson Belf.
This case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Gail B. Geiger Is Appointed Acting U.S. Trustee for Alaska, Idaho, Montana, Oregon, WashingtonRead the Press Release
WASHINGTON – Gail B. Geiger has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Alaska, Idaho, Montana, Oregon, and Washington (Region 18), effective on January 5, 2013, the Executive Office for U.S. Trustees announced today. She replaces Robert D. Miller Jr., who is retiring after nearly 25 years with the U.S. Trustee Program (USTP), including the past two and a half as U.S. Trustee.
Prior to her appointment as Acting U.S. Trustee, Ms. Geiger served as the Assistant U.S. Trustee in the Eugene, Ore., office. She has also served as Special Assistant to the Office of the General Counsel in the Executive Office for U.S. Trustees (EOUST) in Washington, D.C., coordinating USTP enforcement activity relating to mortgage servicers and other creditors, and as Associate General Counsel for Consumer Practice in the EOUST's Office of the General Counsel, advising USTP field offices on consumer bankruptcy issues. In October 2011, she was part of a team of USTP employees who received the Attorney General's Award for Distinguished Service for their work on the $25 billion National Mortgage Settlement. Other assignments in the USTP include serving as Acting Assistant U.S. Trustee in Riverside, Calif.; a Trial Attorney in Seattle; and Attorney in Charge in Agana, Guam.
Before joining the USTP in 1990, Ms. Geiger practiced law with a Seattle law firm and served as an Assistant Attorney General for the Commonwealth of the Northern Mariana Islands. Ms. Geiger received her law degree cum laude from Willamette University Law School in Salem, Ore., and her undergraduate degree from Gonzaga University in Spokane, Wash.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 18 is headquartered in Seattle, with additional offices in Spokane, Wash.; Anchorage, Alaska; Boise, Idaho; Eugene and Portland, Ore.; and Great Falls, Mont.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Founder and President of Venture Development Associates Inc. Sentenced to 15 Months in Prison for Wire FraudRead the Press Release
TRENTON, N.J. – The founder and president of Venture Development Associates Inc. (“VDA”), a Farmingdale, N.J., company that presents itself as a provider of corporate financing, was sentenced today to 15 months in prison for defrauding an Illinois man out of nearly $50,000, U.S. Attorney Paul J. Fishman announced.
Michael Peniston, 54, of Farmingdale, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an Information charging him with one count of wire fraud in connection with obtaining nearly $50,000 in a false investment scheme from a victim who resided in La Grange, Ill. As part of his plea agreement, Peniston also agreed to pay back $199,169 to a total of four victims. Judge Thompson imposed the sentence today in Trenton federal court.According to documents filed in this case and statements made in court:
In February 2008, Peniston, through VDA, presented an agreement to the victim that falsely represented that Peniston would use the victim’s capital to acquire “via lease procedure” a “bank instrument” valued at 500,000,000 Euros. The agreement falsely stated that Peniston would use this bank instrument to purchase “Medium Term Notes” that he would sell at a profit, and that he would pay half the profits to the victim investor. That month, in reliance on these false promises, the purported investor made three wire transfers totaling almost $50,000 to a VDA bank account controlled by Peniston.
After these transfers, Peniston and VDA continued to falsely communicate with the investor that the transactions for Medium Term Notes were imminent, and, later, that they had taken place. Later in February, Peniston promised the Illinois investor a $37.4 million payment per week over a period of 40 out of 56 weeks. In April 2008, Peniston sent a letter to the victim, stating that the “transaction” had been concluded and the funds had been forwarded to the Bank of New York.
Peniston never acquired a “bank instrument,” nor any Medium Term Notes. Instead, he spent the investor’s money on personal expenditures.
In late July 2011, Peniston again communicated with the Illinois investor, promising him restitution. To follow up that communication, Peniston faxed the victim a copy of a check for $200,000 and a shipping label, to make it appear that Peniston was providing these funds to an attorney for payment to the victim. Peniston admitted that he made these communications knowing that they were false.
In addition to the prison term, Judge Thompson sentenced Peniston to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: David Schafer Esq., Assistant Federal Public Defender, TrentonFormer Prince George’s County, Maryland, Correctional Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
Anthony McIntosh, a former correctional officer at the Prince George’s County Detention Center, in Upper Marlboro, Md., today pleaded guilty to obstruction of justice for providing false information about the circumstances surrounding the in-custody death of Ronnie White on June 29, 2008. White, at the time of his death, was being detained on charges related to the death two days earlier of a Prince George’s County police officer.
McIntosh, 49, of Brooklyn, N.Y., pleaded guilty to a violation of 18 U.S.C. § 1519 for providing false information in a witness statement he submitted to a police detective investigating White’s in-custody death. McIntosh admitted during his guilty plea that when he wrote his witness statement, he omitted material information that was truthful, and included information that he knew was false. Specifically, McIntosh claimed in the false witness statement that another officer had discovered White unresponsive in his single-occupant cell and had then summoned McIntosh to the cell. During the guilty plea, McIntosh admitted that, in actuality, he had been the first correctional officer to find White unresponsive in the cell, and had failed to call a medical emergency signal as required by the Department of Corrections. McIntosh also admitted that he included in his statement the false claims that he never moved Ronnie White and that he “didn’t know what was going on” when his partner told him that White appeared to be unresponsive.
“Instead of lawfully carrying out his critical public safety responsibilities, Mr. McIntosh used his position to obstruct the search for the truth,” said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. “The Justice Department will continue to vigorously prosecute officers who cross the line and engage in criminal misconduct.”
McIntosh faces a maximum penalty of 20 years in prison and a fine of $250,000. Sentencing is set for April 8, 2013, before U.S. District Judge Alexander Williams Jr.
The case was investigated by the Baltimore Division of the FBI and was prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Ali Ahmad of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the District of Maryland.
Former Police Officer in New Town, North Dakota, Arrested on Federal Civil Rights ViolationRead the Press Release
The Justice Department announced today that Lindrith Tsoodle, 57, a former officer with the Three Affiliated Tribes Police Department, was apprehended and arrested on the Rocky Boy Reservation in Montana yesterday in relation to his indictment on civil rights and obstruction violations.
Tsoodle was indicted on Dec. 13, 2012. The indictment alleges that, on Dec. 6, 2010, Tsoodle, while acting in his capacity as a police officer, assaulted “T.K.” during an arrest while T.K. was handcuffed, thereby violating his civil rights. The indictment alleges that Tsoodle slammed T.K. against a wall, excessively tightened his handcuffs, shoved him into a police car, used Oleoresin Capsicum spray on him, and struck him repeatedly, both with his body and with a baton. The indictment further charges that T.K. suffered bodily injury as a result of Tsoodle’s use of excessive force.
According to the indictment, following the assault on T.K., Tsoodle attempted to convince a witness not to report the incident to other law-enforcement officials and lied to a federal agent about the assault.
Tsoodle is also charged with assaulting “S.L.” during a separate arrest. The indictment alleges that, on Nov. 20, 2010, while S.L. was in handcuffs, Tsoodle twisted his neck, shoved him to the ground, and kneed him in the chest, thereby violating his civil rights.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the North Dakota Division of the FBI and is being prosecuted by Special Litigation Counsel Gerard V. Hogan and Trial Attorney Dana Mulhauser of the Civil Rights Division of the U.S. Department of Justice.
Former Police Chief Admits Accepting Cash in Return for Protecting Drug Deals, Purchasing Restricted Police EquipmentRead the Press Release
PITTSBURGH, Pa. - A resident of Washington, Pa., pleaded guilty in federal court to charges of violating the Hobbs Act, United States Attorney David J. Hickton announced today.
Donald Abraham Solomon, 56, pleaded guilty to three counts before United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Solomon was the Chief of Police of East Washington Borough, Pa. He received payments from a purported drug dealer, who was an undercover FBI agent, to protect drug shipments and to purchase law enforcement restricted police equipment.
Judge Conti scheduled sentencing for May 3, 2013, at 3:30 pm. The law provides for a total sentence of 60 years in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Solomon on bond.
Assistant United States Attorneys Robert S. Cessar and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Donald Abraham Solomon.
Former Owner of Employee Leasing Company Pleads Guilty in Salt Lake City to Federal Employment Tax CrimeRead the Press Release
Richard R. Whatley, a former owner of Alliance Staffing Management Inc. (ASM), pleaded guilty today for willfully failing to account for and pay over employment taxes, the Justice Department and the Internal Revenue Service (IRS) announced today. Whatley appeared before Judge David Nuffer in Salt Lake City.
In January 2010, a federal grand jury charged Whatley with five counts of willfully failing to account for and pay over employment taxes, relating to three different employee leasing companies that he operated and controlled between the years 2001 and 2006. According to the terms of the written plea agreement, Whatley pleaded guilty to one count of the superseding indictment and may serve between 41 months and 51 months in federal prison. Whatley will also pay $541,513.61 in restitution to the IRS.
According to the plea agreement, during the 2002 through 2004 tax years, Whatley held an ownership interest in and had the ability to control the finances of ASM, an employee leasing company. Whatley’s control included determining the amount of employment taxes that had to be paid over to the IRS and the authority to decide which bills would be paid and which bills would not be paid. Whatley was also a responsible person at ASM for paying over the employment taxes to the IRS. As charged in the superseding indictment, in the fourth tax quarter of 2003, Whatley caused the collection of employment taxes from ASM’s employees’ wages and then willfully failed to pay over $541,513.61 in employment taxes (employee portion) to the IRS.
Sentencing is scheduled for July 10, 2013 before Judge Nuffer in Salt Lake City.
The case is being prosecuted by Trial Attorneys Christopher J. Maietta and Stuart A. Wexler of the Justice Department’s Tax Division, and was investigated by special agents of IRS - Criminal Investigation.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .
Former New Jersey Law Firm Employee Sentenced to 21 Months in Prison for Stealing More Than $500,000 from Law FirmRead the Press Release
TRENTON, N.J. – The former bookkeeper of a law firm based in Ocean County, N.J., was sentenced to 21 months for defrauding her former employer by stealing more than $500,000 from the firm, U.S. Attorney Paul J. Fishman announced.
Sharon Wetter, 53, of Forked River, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an Information charging her with one count of mail fraud. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wetter admitted that between 2004 and October 2010, she embezzled from her former employer, referred to in court documents only as the “law firm,” by wrongfully writing checks from the bank accounts of the firm to pay her outstanding personal credit card balances and to make car payments. Wetter concealed those payments by altering the law firm’s electronic books and records to make it appear that the checks were for legitimate business expenses. Wetter, who had access to checks and bank accounts in order to perform her duties as the firm’s bookkeeper, used that access to divert more than $500,000.
In addition to the prison term, Judge Cooper sentenced Wetter to three years of supervised release, ordered Wetter to make restitution in the amount of $521,596.
U.S. Attorney Fishman credited special agents of the Red Bank office of the FBI, under the direction of Special Agent in Charge David Velazquez, for their work in the investigation of this case.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.13-009
Defense counsel: Anthony Simonetti Esq., Hightstown, N.J.
Former New Jersey Law Firm Employee Sentenced to 21 Months in Prison for Stealing More Than $500,000 from Law FirmRead the Press Release
TRENTON, N.J. – The former bookkeeper of a law firm based in Ocean County, N.J., was sentenced to 21 months for defrauding her former employer by stealing more than $500,000 from the firm, U.S. Attorney Paul J. Fishman announced.
Sharon Wetter, 53, of Forked River, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an Information charging her with one count of mail fraud. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Wetter admitted that between 2004 and October 2010, she embezzled from her former employer, referred to in court documents only as the “law firm,” by wrongfully writing checks from the bank accounts of the firm to pay her outstanding personal credit card balances and to make car payments. Wetter concealed those payments by altering the law firm’s electronic books and records to make it appear that the checks were for legitimate business expenses. Wetter, who had access to checks and bank accounts in order to perform her duties as the firm’s bookkeeper, used that access to divert more than $500,000.
In addition to the prison term, Judge Cooper sentenced Wetter to three years of supervised release, ordered Wetter to make restitution in the amount of $521,596.
U.S. Attorney Fishman credited special agents of the Red Bank office of the FBI, under the direction of Special Agent in Charge David Velazquez, for their work in the investigation of this case.
The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Trenton Office.13-009
Defense counsel: Anthony Simonetti Esq., Hightstown, N.J.
Former Coast Guard Petty Officer Pleads Guilty to Fraud, Accepting BribesRead the Press Release
NORFOLK, Va. – Nathan Allen Dunn, 30, formerly of Virginia Beach, Va., pleaded guilty today to wire fraud and accepting more than $220,000 in bribes as a public official.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region; and Michael P. Dawson, Special Agent in Charge, Department of Homeland Security, Office of Inspector General, Washington Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Lawrence R. Leonard.
“In two years, Mr. Dunn took more than $220,000 in bribes in exchange for using his position to award over-priced and false contracts for favored shipping companies,” said U.S. Attorney MacBride. “Rooting out criminals who abuse the public’s trust strengthens the integrity of – and our confidence in – the government’s procurement process.”
Dunn was indicted on May 23, 2012, by a federal grand jury on charges of conspiracy, wire fraud, accepting bribes as a public official, and false statements. Dunn faces a maximum penalty of 20 years in prison when he is sentenced before Judge Mark S. Davis on April 29, 2013.
According to a statement of facts filed with his plea agreement, from October 2009 to November 2011, Dunn was an active duty U.S. Coast Guard (USCG) Petty Officer assigned as a Transportation Administrator at the Surface Forces Logistics Center in Norfolk, Va. Dunn’s primary duty was to coordinate the shipping of large freight such as boats, trailers, and generators between USCG bases located throughout the United States. Dunn utilized the Department of Defense Transportation Command (TransCom) automated system to bid out and then contract the shipments with authorized freight brokerage companies. During the time frame covered by the indictment, Dunn’s co-conspirator owned twelve such freight brokerage companies, all located in Brookwood, Ala.
In September 2009, Dunn’s co-conspirator traveled to Norfolk to meet with Dunn and told him that in exchange for Dunn issuing USCG freight contracts to the co-conspirator’s companies, the co-conspirator would kickback a percentage of the profits to Dunn. Dunn agreed and, shortly thereafter, the co-conspirator began offering monetary bribes to Dunn by providing him with debit cards linked to several of the co-conspirator’s business bank accounts. To inflate the profit he made from each contract, Dunn would fraudulently manipulate various data entered into the TransCom computer system in order to artificially inflate the price of the shipping contracts he steered to the co-conspirator’s companies. Dunn would also create false shipping contracts for shipments that did not exist, then award the contract and profits to the co-conspirator. Since no freight was actually being shipped pursuant to these false contracts, the payment made to the co-conspirator from the USCG was total profit to the co-conspirator, resulting in Dunn also receiving a larger kickback. Over a two-year period, Dunn received more than $220,000 in bribe payments from the co-conspirator. The total fraud loss to the United States is more than $1 million.
This investigation was brought as part of the Hampton Roads Procurement Fraud Initiative, a collaboration of defense investigative agencies, Inspectors General, and law enforcement dedicated to strengthening the integrity of the federal procurement system.
This case was investigated by the United States Coast Guard Investigative Service and the Department of Homeland Security, Office of the Inspector General, Washington Field Office. Assistant United States Attorneys Stephen W. Haynie and V. Kathleen Dougherty are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Foreign National Pleads Guilty in Houston <br /> to Human Smuggling ChargesRead the Press Release
WASHINGTON – A foreign national pleaded guilty today to federal human smuggling charges for his role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Kenneth Magidson for the Southern District of Texas; and Special Agent in Charge Brian M. Moskowitz of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Houston
Fabiano Augusto Amorim, 28, a Brazilian national, pleaded guilty today at a hearing before U.S. District Judge Ewing Werlein Jr. in Houston, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
On June 6, 2012, Amorim was charged by indictment, along with four other individuals, with one count of conspiracy to smuggle undocumented migrants into the United States and six human smuggling counts related to five incidents in which Amorim helped smuggle undocumented migrants into the United States. Based on Amorim’s guilty plea, the government will dismiss the remaining human smuggling counts against him at sentencing.
At the plea hearing and in related court documents, Amorim admitted that between January 2011 and April 2012, he conspired with his co-defendants to bring undocumented migrants to the United States, and to encourage and induce undocumented migrants to come to the United States unlawfully. According to court documents, Amorim and his co-conspirators devised the scheme to profit financially.
In support of the conspiracy, Amorim and other conspirators recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Amorim and his co-conspirators used a network of alleged conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Amorim and his co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events, including five of the incidents described in the indictment, involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
At sentencing, which is scheduled for April 5, 2013, Amorim faces a maximum sentence of 15 years in prison and a fine of up to $500,000. Amorim currently is serving a 36-month sentence in federal prison for participating in a separate conspiracy to smuggle undocumented migrants from Brazil and Peru into the United States via a maritime route from the Bahamas into southern Florida.
Amorim’s co-conspirator Maria Adela De Luna pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. Co-conspirator Kaushik Jayantibhai Thakkar pleaded guilty on Dec. 3, 2012, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.The investigation was conducted by agents with ICE-HSI in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.Final Three Conspirators Sentenced for Civil Rights ViolationRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced James Nowicki, age 29, of Baltimore, today to five months in prison followed by three years of supervised release, with five months of the supervised released to be served as home detention, for conspiring to deprive a person of civil rights and violating the Fair Housing Act, in connection with his involvement in hanging a raccoon on the porch of a family from Africa. Judge Hollander also sentenced Dena Whedbee, age 43, to seven months of home detention as part of two years probation, and sentenced her daughter Brittany Whedbee, age 21, today to six months of home detention. Judge Hollander also ordered the Whedbees, both of Baltimore, to each perform 100 hours of community service for their involvement in the conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein: Assistant Attorney General Thomas E. Perez of the U.S. Department of Justice Civil Rights Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their plea agreements, Nowicki conspired with Dena and Brittany Whedbee, Joshua Wall and Billy Pratt to hang a dead raccoon from a noose on the porch of an African family, in order to frighten the family and interfere with their housing rights. Dena and Brittany Whedbee encouraged their co-conspirators to hang the raccoon on the family’s porch. On April 29, 2010, Nowicki and Dena Whedbee found a dead raccoon and gave Wall a rope to make a noose. Later that night, Pratt acted as a look-out while Nowicki and Wall hung the raccoon on the porch of the home.Billy Ray Pratt, age 24, of Halethorpe, Maryland and Joshua Wall, age 21, of Essex, Maryland, previously pled guilty to their involvement in the conspiracy, and both were sentenced to four months in prison.
United States Attorney Rod J. Rosenstein and Assistant Attorney General Thomas E. Perez commended the FBI for its work in the investigation and thanked U.S. Department of Justice Trial Attorney AeJean Cha of the Civil Rights Division and Assistant United States Attorney P. Michael Cunningham, who prosecuted the case.
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Fall River Man Sentenced to 22 ½ Years in Federal Prison for Armed Robbery of West Greenwich, R.I. BankRead the Press Release
PROVIDENCE, R.I. – Craig A. Carey, 44, of Fall River, Mass., was sentenced on Friday to 272 months in federal prison on conspiracy, bank robbery and firearm charges, announced United States Attorney Peter F. Neronha; West Greenwich Police Chief Richard N. Ramsay; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Richard Deslauriers, Special Agent in Charge of the FBI’s New England Field Office.
On October 9, 2012, Carey admitted to the court that in May 2011, he and a co-defendant, Louis R. Peters III, 24, of West Topsham, Vt., bound and held employees of a West Greenwich, R.I., bank at gunpoint and robbed the bank of approximately $82,000. Carey pleaded guilty to one count each of conspiracy, bank robbery, carrying and brandishing a firearm during and in relation to a crime of violence, and being a felon in possession of a firearm.
At sentencing, U.S. District Court Judge William E. Smith also ordered Carey to serve 5 years of supervised release upon completion of his prison term.
On November 23, 2012, Peters was sentenced by U.S. District Court Judge William E. Smith to 120 months in federal prison for his participation in the armed robbery of the West Greenwich, R.I., bank. Peters pleaded guilty on January 25, 2012, to one count each of conspiracy, bank robbery and carrying and brandishing a firearm during and in relation to a crime of violence.
At the time of their guilty pleas, Carey and Peters admitted to the court that on May 28, 2011, they accosted the manager of the Centreville Savings Bank branch office on Victory Highway at gunpoint as the manager prepared to enter the bank. Once inside the bank, Carey and Peters detained and later bound other employees and robbed the bank of approximately $82,000.
Shortly after Carey and Peters fled the bank, two West Greenwich police officers and a Rhode Island State Police trooper located Peters sitting in a vehicle parked behind a nearby building, and Carey who was walking a short distance away. Both men have been detained since their arrest.
The cases were prosecuted by Assistant U.S. Attorney Stephen G. Dambruch, Assistant U.S. Attorney Sandra R. Hebert, and First Assistant U.S. Attorney Kenneth P. Madden.
The matter was investigated by West Greenwich Police, Rhode Island State Police and the FBI.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]East Stroudsburg Resident Charged with Illegal EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Victor Marroquin, age 41, from El Salvador and residing in East Stroundsburg, Pennsylvania was charged with illegal entry into the United States in a criminal Information filed today in U.S. District Court in Scranton.
According to United States Attorney Peter J. Smith, Marroquin came to the attention of federal authorities after being charged by the Pennsylvania State Police with Driving Under the Influence.The investigation was conducted by the U.S. Immigration and Customs Enforcement and is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 6 months’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
EMH Regional Medical Center and North Ohio Heart Center to Pay $4.4 Million to Resolve False Claims Act AllegationsRead the Press Release
EMH Regional Medical Center (EMH) has agreed to pay the United States $3,863,857 and North Ohio Heart Center Inc. (NOHC) has agreed to pay the United States $541,870 to settle allegations that they submitted false claims to Medicare, the Justice Department announced today.
EMH is a non-profit community hospital system located in Lorain County, Ohio. During the relevant time period, NOHC was an independent physician group located in Lorain County that practiced at EMH. Today’s settlement resolves allegations that between 2001 and 2006 EMH and NOHC performed unnecessary cardiac procedures on Medicare patients. Specifically, the United States alleged that EMH and NOHC performed angioplasty and stent placement procedures on patients who had heart disease but whose blood vessels were not sufficiently occluded to require the particular procedures at issue.
“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and puts patients at risk. Today’s settlement evidences the Department of Justice’s efforts both to protect public funds and safeguard Medicare beneficiaries,” said Stuart F. Delery, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division.
“Most doctors act responsibly. These few didn’t,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Patient health and taxpayer dollars have to come before greed.”
This matter was initiated by the filing of a whistleblower complaint under the False Claims Act (FCA). Under the FCA, private citizens can bring suit for false claims on behalf of the United States and receive a share of the recovery obtained by the government. The whistleblower in this matter, Kenny Loughner, was the former manager of EMH’s catheterization and electrophysiology laboratory. As a result of today’s settlement, Mr. Loughner will receive $660,859 of the United States’ recovery.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion.
The investigation was jointly handled by the U.S. Attorney’s Office for the Northern District of Ohio, the Justice Department’s Civil Division, the Office of the Inspector General of the Department of Health and Human Services and Federal Bureau of Investigation. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Thecase is captioned United States ex rel. Loughner v. EMH Regional Medical Center, et al., Case No. 1:06-cv-2441 (N.D. Oh.)
Derby Man Sentenced to Six Years in Prison for Illegal Gun Possession, Violating Supervised ReleaseRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, announced that ALBERT LOPEZ, 42, of Derby, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on April 2, 2011, a Connecticut State Trooper seized a loaded 9 millimeter pistol from LOPEZ’s waistband. LOPEZ was released on bond but failed to appear for his state court hearing. On April 15, 2011, LOPEZ was arrested by the United States Marshals Violent Fugitive Task Force as he tried to flee from another person’s residence.
Prior to April 2011, LOPEZ had been convicted of multiple felony offenses in Connecticut state court and federal courts in both Connecticut and Pennsylvania. Specifically, LOPEZ has been convicted of second degree assault with a firearm, carrying a pistol without a permit, conspiracy to distribute cocaine, possession of contraband by an inmate, and possession of a firearm by a convicted felon.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
LOPEZ has been detained since his arrest on April 15, 2011. On September 4, 2012, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
On March 3, 2008, LOPEZ was sentenced to 47 months of imprisonment and three years of supervised release for possession of a firearm by a previously convicted felon. He was released from prison in March 2010 and was on supervised release at the time of his arrest in April 2011.
Judge Underhill sentenced LOPEZ to five years of imprisonment for being a felon in possession of a firearm, and a consecutive one-year prison term for violating his supervised release.
This matter was investigated by the Connecticut State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Ndidi Moses.
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(203) 821-3722 [email protected]Defendant Sentenced to 15 Years in Prison for $39 Million Mortgage Fraud Scheme; Another Defendant Pleads GuiltyRead the Press Release
To Date, Five Defendants Have Pled Guilty in Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Steve Linick, Inspector General, Federal Housing Finance Agency, Office of Inspector General, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Al Lamberti, Sheriff, Broward Sheriff’s Office, announce yesterday’s sentencing of defendant Juan Carlos Sanchez, of New York, N.Y. Sanchez was sentenced to 15 years in prison, to be followed by 3 years of supervised release for his participation in a $39 million mortgage fraud scheme. Sanchez previously pled guilty to count one of the indictment, which charged him with conspiracy to commit mail and wire fraud.
Sanchez was originally indicted with seven other defendants, Case No. 12-60088-CR-Williams, for fraudulently obtaining mortgages for the purchase of condominium units at Marina Oaks Condominiums in Fort Lauderdale, FL. The other defendants were: Quelyory Rigal, a/k/a “Kelly,” of Homestead, FL, Sandra P. Campo, of Colombia, Osbelia Lazardi, of Southwest Ranches, FL, Dayanara Montero, of Miramar, FL, Edward R. Mena, of Miami, FL, Celeste Mota, of Fort Myers, FL, and David Arboleda, of Doral, FL.
Defendant Campo pled guilty on January 3, 2013, to count one of the indictment, which charged her with conspiracy to commit mail and wire fraud. Sentencing is scheduled for March 13, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendant Mena pled guilty in October 2012, and sentencing is scheduled for January 11, 2013, at 10:00 am before U.S. District Judge William J. Zloch.
Defendants Mota and Arboleda pled guilty in September 2012. Defendant Mota was sentenced on November 28, 2012 to 5 years of probation. Defendant Arboleda was sentenced on December 12, 2012 to 30 months in prison, to be followed by 3 years of supervised release.
According to the indictment and statements made in court, from January 2007 through November 2008, the defendants conspired to recruit individuals who would be willing to purchase condominium units at Marina Oaks Condominiums. These buyers were promised a “buyers’ incentive,” which payment was not disclosed to the lenders or reflected on any of the closing documents. The conspirators would then prepare materially false mortgage applications for the buyers on HUD Uniform Loan Application Form 1003. These forms contained false information regarding the borrowers’ credit worthiness in order to qualify the borrowers for mortgages to purchase the Marina Oaks Condominiums. The conspirators would also create false documents to support the mortgage applications. Once the loans closed, the conspirators would divert portions of the mortgage proceeds for their personal use and benefit. In this way, the conspirators obtained approximately $39 million in fraudulent mortgage loans.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General, IRS-CI and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Pleads Guilty to Crack Conspiracy and Faces Mandatory Sentence of Twenty YearsRead the Press Release
[Plattsburgh, New York]—United States Attorney Richard S. Hartunian announces that DARRYL FIGUEROA, age 29, pled guilty on January 3, 2013 to conspiracy to possess with the intent to distribute and to distribute more than 280 grams of cocaine base, in violation of Title 21, United States Code, Section 846. On July 25, 2012 co-defendant DESHAWN WHITE, age 27, pled guilty to the same offense. FIGUEROA and WHITE pled guilty before Chief United States District Court Judge Gary L. Sharpe in Albany, New York. WHITE is scheduled to be sentenced on March 21, 2013 in Albany, New York and FIGUEROA is scheduled to be sentenced on May 7, 2013, in Albany, New York. Both FIGUEROA and WHITE have prior drug felony convictions and, as a result, are subject to a mandatory minimum sentence of twenty (20) years imprisonment, a maximum sentence of life, and a fine up to $20,0000,000. Judge Sharpe has ordered that the defendants remain detained pending sentencing.
FIGUEROA, also known as “Mike,” and WHITE, also known as “Jay,” are both residents of Brooklyn, New York. Since approximately 2007 until January 2012, both FIGUEROA and WHITE were involved in a scheme to transport large quantities of cocaine base, “crack,” from Brooklyn, New York to Plattsburgh, New York and then distribute the crack in Plattsburgh. FIGUEROA and WHITE recruited local crack dealers and users to sell the drugs on their behalf.
The investigation was conducted by the Adirondack Drug Task Force, the Drug Enforcement Administration, the Plattsburgh Police Department, the New York State Police, and the Clinton County Sheriff’s Department. The case is being prosecuted by the United States Attorney’s Office for the Northern District of New York.
Any questions may be directed to Executive Assistant U.S. Attorney John G. Duncan in Syracuse, New York at (315) 448-0672 or Assistant U.S. Attorney Daniel C. Gardner in Plattsburgh, New York at 518-314-7800.
Current and Former Tribal Officials Charged with Stealing from the Mashantucket Pequot Tribal NationRead the Press Release
January 4, 2013David B. Fein, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford has returned two separate indictments charging STEVEN THOMAS, 38, and MICHAEL THOMAS, 44, each with one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds. STEVEN THOMAS is the current Treasurer of the Mashantucket Pequot Tribal Council, and MICHAEL THOMAS is the former Chairman of the Mashantucket Pequot Tribal Council.
The indictment against STEVEN THOMAS alleges that, from January 2005 through June 2008, he stole Mashantucket Pequot Tribal Nation (“MPTN”) funds while he was the Assistant Director of MPTN’s Department of Natural Resources Protection.
The indictment against MICHAEL THOMAS alleges that, from October 2007 through April 2009, he stole MPTN funds while serving as the Chairman of the Mashantucket Pequot Tribal Council.
If convicted of stealing from an Indian tribal organization, both men face a maximum term of imprisonment of five years and a fine of up to $250,000. If convicted of stealing from an Indian tribal government receiving federal funds, both men face a maximum term of imprisonment of 10 years and a fine of up to $250,000 on each count.
The indictments also include forfeiture allegations. If convicted, STEVEN THOMAS faces forfeiture of approximately $739,743.64, and MICHAEL THOMAS faces forfeiture of $102,393.34 and two personal computers.
The defendants are scheduled to appear before United States Magistrate Judge Joan G. Margolis in New Haven on Monday, January 7, at 3:45 p.m.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and United States Department of Interior – Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Christopher Mattei.
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(203) 821-3722 [email protected]Chinese National Sentenced to Federal Prison for Smuggling Counterfeit Tobacco Products into the U.S.Read the Press Release
PROVIDENCE, R.I. – Lin Xiao Wei, 33, a Chinese national, was sentenced on Friday to 16 months in federal prison for importing counterfeit tobacco products into the United States from China, earmarked for Rhode Island. In February 2013, Wei admitted to the court that in February 2012, he arranged for the shipment of a 20-foot cargo container containing counterfeit cigarettes from China to the United States.
Wei, who has been detained since his arrest in Miami on June 4, 2012, pleaded guilty in U.S. District Court in Providence on February 1, 2013, to one count of causing the sale of counterfeit tobacco products.
Wei’s sentence was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island, and Mark Dragonetti, Special Agent in Charge of the FDA Office of Criminal Investigations.
At the time of his guilty plea, Wei admitted to the court that he arranged for the purchase and shipment from China to the United States of a 20-foot cargo container of counterfeit Marlboro cigarettes. The cargo container, which shipping documentation claimed contained 696 cartons of leather products, was shipped from a port in China on March 27, 2012.
According to information presented to the court, between the time Wei agreed to ship the fraudulent tobacco products to the U.S. and the arrival of the cargo container through a port in Miami on April 27, 2012, several wire transactions were sent to Wei for the cost of the product and associated shipping fees. Upon arrival in Miami, FDA-OCI and Homeland Security Investigations agents seized the container.
According to information presented to the court, on June 3, 2012, Wei met at a Miami hotel with a confidential informant who was working with investigators, and with an undercover FDA-OCI Task Force agent from Rhode Island. Wei discussed the shipment of the fraudulent tobacco products, as well as previous of counterfeit pharmaceutical products and the availability of other fraudulent products.
U.S. Attorney Neronha commended the FDA-OCI Rhode Island Task Force, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Rhode Island State Police, East Providence Police and North Providence Police for their efforts in this multi-jurisdictional investigation.
The case was prosecuted by Assistant U.S. Attorneys Richard B. Myrus and Adi Goldstein.
The sentence was imposed by U.S. District Court Judge William E. Smith.
To assist the media and the public, a glossary of federal judicial terms and procedures is now available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bullhead Man Pleads Guilty to Assault ChargeRead the Press Release
U.S. Attorney Brendan V. Johnson announced that Willard Paul Farrell, III, age 25, of Bullhead, appeared before U.S. District Judge Charles B. Kornmann on January 2, 2013, and pled guilty to one count of an indictment that charged him with Domestic Assault by an Habitual Offender, resulting in substantial bodily injury. The maximum penalty upon conviction is 10 years' imprisonment, a $250,000 fine, or both, and a period of supervised release of 3 years.
The conviction stems from an incident on January 15, 2011, when the victim was walking in McLaughlin. Farrell ran up to her, unprovoked, and assaulted her on a public street. Over the course of the assault, Farrell hit, shoved, and kneed the victim in the face, resulting in the victim receiving numerous scrapes and bruises, along with a fractured cheekbone. At the time of the incident, the victim had a restraining order in place preventing Farrell from having contact with, or harassing her.
Farrell has been found guilty on two or more separate prior occasions for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Troy Morley.
A presentence investigation was ordered, and a sentencing date was set for April 29, 2013. Farrell was remanded to the U.S. Marshal's Service pending sentencing.
Bucks County Man Sentenced for Illegal Possession of ExplosivesRead the Press Release
PHILADELPHIA - John Grzyminski, 50, of Warrington, PA, was sentenced today to 30 months in prison for the illegal possession of an unregistered explosive device. On May 9, 2012, the defendant’s mother called the Warrington Township Police Department to report that she felt threatened by the defendant. Police arrived and, after the officers left, the defendant’s mother found a pipe bomb on her kitchen counter. The Warrington Police Department was again dispatched to the residence along with the Philadelphia Police Department Bomb Disposal Unit (PPDBDU) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Bomb technicians found two additional pipe bombs in an upstairs bedroom and bomb making materials in the garage. Grzyminski was arrested after being stopped by the Solebury Township Police on May 10, 2012. He told police that he had made the bombs for hunting bears, and that he also liked to throw them into lakes for entertainment. The defendant stated that he had manufactured the bombs over a 12 year period. He pleaded guilty to the charge on September 17, 2012.
In addition to the prison term, U.S. District Court Judge Stewart Dalzell ordered three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Judy G. Smith.
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