WASHINGTON — A federal jury in Philadelphia today convicted Ian P. Norris, the former CEO of The Morgan Crucible Company plc, a United Kingdom corporation, of conspiring with others to obstruct justice, the Department of Justice announced.
In 2004, a federal grand jury indicted Norris, a citizen of the United Kingdom, on one count of fixing prices of carbon brushes and other carbon products, one count of conspiring to obstruct justice, and two counts of obstructing justice in connection with the Department of Justice’s antitrust investigation of price fixing in the carbon products industry. Norris was extradited to the United States in March 2010 on the three obstruction charges. The jury returned a guilty verdict today on the conspiracy to obstruct justice count and not guilty verdicts on the witness tampering count and the count of corruptly persuading others to destroy or conceal documents. Sentencing has been scheduled for Nov. 2, 2010.
The department said that Norris conspired with his subordinates to obstruct the grand jury’s investigation. Morgan Crucible employees conspired with Norris to create a false script that employees of both Morgan Crucible and a competitor were to follow when questioned in the investigation. Also, a document destruction task force was formed to collect and destroy or conceal documents from the grand jury, the department said.
"The Antitrust Division uncovered this elaborate and egregious obstruction of justice scheme," said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "Today’s verdict holds Norris accountable for his actions and sends a message that corporate leaders must promote a culture of law abiding conduct within their companies or be prepared to face stiff prison sentences. The Antitrust Division will remain vigilant in protecting the integrity of its criminal investigations from obstruction in order to effectively carry out its mandate to protect American businesses and consumers from price-fixing cartels."
Carbon products are used to transfer electrical current in automobiles, trains, public transit vehicles and consumer products and are used in pumps and compressors to contain liquids and gases.
Including today’s conviction, more than $11 million in criminal fines have been obtained and four executives and two companies have pleaded guilty or have been convicted as a result of the department’s antitrust investigation of price fixing in the carbon products industry.
The Morgan Crucible Company plc, based in Windsor, England, pleaded guilty in 2002 to one count of tampering with witnesses and one count of document destruction. The company paid a $1 million criminal fine.
A former subsidiary of the company, Morganite Inc., which was based in Dunn, N.C., pleaded guilty in 2002 to fixing prices of carbon brushes and other carbon products and paid a $10 million fine.
In addition, three subordinates of Norris previously pleaded guilty to obstruction charges. Jacobus Johan Anton Kroef, the former Chairman of the Industrial and Traction Division of The Morgan Crucible Company plc, pleaded guilty in 2003 to witness tampering. Robin D. Emerson, former pricing coordinator at Morganite Electrical Carbon Ltd. of Swansea, U.K., pleaded guilty in 2003 to corruptly persuading another person to destroy or conceal documents in connection with the investigation. F. Scott Brown, the former Global President and a member of the Board of Directors of Morgan Advanced Materials and Technology Inc. (MAMAT), now headquartered in Greenville, S.C., pleaded guilty in 2003 to aiding and abetting document destruction in connection with the investigation. Morganite Electrical Carbon Ltd. and MAMAT are subsidiaries of The Morgan Crucible Company plc.
The conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine.
Trial attorneys Lucy McClain, Richard Rosenberg, and Kimberly Justice of the Antitrust Division’s Philadelphia Field Office prosecuted the case.
Saturday, December 31, 2011
Wednesday, December 28, 2011
Third individual arrested in alleged conspiracy to traffic Haitian nationals
JACKSONVILLE, Fla. - The third individual indicted for conspiracy to commit human trafficking offenses involving Haitian nationals was arrested in Miami on Thursday.
The arrest of Willy Edouard, 47, follows a four-count indictment on June 22 by a federal grand jury in the Northern District of Florida that charged him and two others with forced labor and conspiracy, visa fraud, holding documents and conspiracy, following an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents in Jacksonville and Miami and other state, local and federal agencies.
Edouard and Carline Ceneus, 32, both of Miami, and Cabioch Bontemps, 34, of Gainesville, Fla., were charged with crimes arising from an alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program. Ceneus was also charged with taking the victims' travel and identity documents.
"Targeting human traffickers is a top priority for ICE," said Susan McCormick, ICE special agent in charge of the Office of HSI in Tampa. "Those who are motivated by greed to prey on people have a callous disregard for the value of human life. That is why ICE will continue to aggressively investigate those involved in this kind of criminal activity."
On July 1, ICE special agents in Miami arrested Ceneus after she arrived from Haiti at Miami International Airport. Bontemps was arrested July 6 in Gainesville.
Edouard had been considered a fugitive when he was arrested Thursday by the U.S. Marshal's Service.
If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
"Human trafficking denies individuals their freedom and their dignity. Those who prey on the most vulnerable through force, fraud or coercion will be prosecuted to the fullest extent of the law," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division will continue to work with DHS, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency.
The three defendants then maintained the victims' labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims' property. After arrival in the United States, the defendants confiscated the victims' passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty.
This case is being investigated by ICE; the U.S. Department of Labor, Office of Inspector General; and the Alachua County, Fla., Sheriff's Office.
The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services in Fort Myers, Fla; Florida Freedom Partnership in Miami; and World Relief in Jacksonville.
The arrest of Willy Edouard, 47, follows a four-count indictment on June 22 by a federal grand jury in the Northern District of Florida that charged him and two others with forced labor and conspiracy, visa fraud, holding documents and conspiracy, following an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents in Jacksonville and Miami and other state, local and federal agencies.
Edouard and Carline Ceneus, 32, both of Miami, and Cabioch Bontemps, 34, of Gainesville, Fla., were charged with crimes arising from an alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program. Ceneus was also charged with taking the victims' travel and identity documents.
"Targeting human traffickers is a top priority for ICE," said Susan McCormick, ICE special agent in charge of the Office of HSI in Tampa. "Those who are motivated by greed to prey on people have a callous disregard for the value of human life. That is why ICE will continue to aggressively investigate those involved in this kind of criminal activity."
On July 1, ICE special agents in Miami arrested Ceneus after she arrived from Haiti at Miami International Airport. Bontemps was arrested July 6 in Gainesville.
Edouard had been considered a fugitive when he was arrested Thursday by the U.S. Marshal's Service.
If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
"Human trafficking denies individuals their freedom and their dignity. Those who prey on the most vulnerable through force, fraud or coercion will be prosecuted to the fullest extent of the law," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division will continue to work with DHS, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency.
The three defendants then maintained the victims' labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims' property. After arrival in the United States, the defendants confiscated the victims' passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty.
This case is being investigated by ICE; the U.S. Department of Labor, Office of Inspector General; and the Alachua County, Fla., Sheriff's Office.
The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services in Fort Myers, Fla; Florida Freedom Partnership in Miami; and World Relief in Jacksonville.
Sunday, December 25, 2011
Former Port Townsend Area Organic Farmer Sentenced to 10 Years in Prison for Bank Robbery Spree
Defendant Robbed Four Banks Across the West Using Fake Bomb
MICHAEL JOHN FENTER, 40, of Port Townsend, Washington, was sentenced today in U.S. District Court in Tacoma to 10 years in prison, five of supervised release, and $86,000 in restitution for three counts of bank robbery, one count of armed bank robbery, and one count of possession of a firearm during a crime of violence. FENTER pleaded guilty March 18, 2010 admitting in his plea agreement that he robbed banks in Seattle, Tacoma, San Francisco, and Sacramento. FENTER was arrested October 8, 2009, following the robbery of a Bank of America branch on South 9th Street in Tacoma. Officers located FENTER following the robbery and recovered $73,000 stolen from the bank. At sentencing U.S. District Judge Benjamin H. Settle noted that one of the victim tellers appropriately called Fenter a “terrorist.” The judge said the tellers “had been given a life sentence of reliving the terror” of the bank robberies.
According to the plea agreement, on February 4, 2009, FENTER entered a Washington Mutual Bank branch on 4th Avenue in Seattle. FENTER asked one of the tellers to meet with him at a desk. FENTER claimed he had highly explosive material in a briefcase he was carrying, and said he could wipe out the bank. FENTER told the teller to fill a black bag he was carrying with money. FENTER threatened to detonate the bomb by remote control if the teller called police. FENTER escaped with $9,200.
FENTER used the same bomb ruse twice in California. On April 15, 2009, he robbed a Bank of America branch in San Francisco. FENTER told the victim teller that his name was “Patrick Henry,” and he represented an organization that was angry about how the government was spending “bail-out” money and that he intended to take the money and give it to people who needed it. The distraught teller filled the bag with $43,000. FENTER told her if she called police too soon after he left, he would detonate the bomb using his cell phone. In August 2009, FENTER robbed a Wells Fargo branch in Sacramento, saying the money was for “The cause.” He claimed to have associates outside the bank and showed the bank manager an ear piece as if he were in touch with conspirators who could detonate the bomb. FENTER escaped from the bank with $34,000.
On October 8, 2009, FENTER entered the Bank of America branch in Tacoma and told the assistant manager that he wanted to make a large transaction. FENTER sat at the manager’s desk, and showed her the contents of a black box that appeared to contain wires and an antenna. FENTER told the assistant manager that he had a triggering device for the bomb. FENTER said that the robbery was not about the bank, but about a fight against the government. FENTER told the assistant manager she had 10 minutes to fill his black bag with money. Another bank employee saw what was going on and called police with his cell phone. FENTER was apprehended a short distance away from the bank. He had a fully loaded Glock .40 caliber pistol in a holster on his hip. The object he claimed was a bomb was disabled and analyzed. The device contained a commercial grade blasting cap and battery. The two were not wired together. Had they been wired, the blasting cap could have exploded injuring anyone nearby.
In his sentencing memo, Special Assistant United States Attorney Jerry Costello noted that the robberies were prompted by greed, and that they traumatized the bank employees. “The victims understandably feared being blown to bits or being maimed for life—along with others—by the apparent bomb defendant carried. One of the victims was so frightened that she lost emotional control. Creating intense, palpable fear is exactly what defendant wanted, and his motivations are reprehensible. The victims will never forget the day that defendant both threatened their lives and invaded their psyches,” Mr. Costello wrote in his sentencing memo.
The case was investigated by the FBI and the Tacoma Police Department. The case is being prosecuted by Special Assistant United States Attorney Jerry Costello. Mr. Costello is a Deputy Pierce County Prosecutor, specially designated to prosecute gun crimes in federal court.
MICHAEL JOHN FENTER, 40, of Port Townsend, Washington, was sentenced today in U.S. District Court in Tacoma to 10 years in prison, five of supervised release, and $86,000 in restitution for three counts of bank robbery, one count of armed bank robbery, and one count of possession of a firearm during a crime of violence. FENTER pleaded guilty March 18, 2010 admitting in his plea agreement that he robbed banks in Seattle, Tacoma, San Francisco, and Sacramento. FENTER was arrested October 8, 2009, following the robbery of a Bank of America branch on South 9th Street in Tacoma. Officers located FENTER following the robbery and recovered $73,000 stolen from the bank. At sentencing U.S. District Judge Benjamin H. Settle noted that one of the victim tellers appropriately called Fenter a “terrorist.” The judge said the tellers “had been given a life sentence of reliving the terror” of the bank robberies.
According to the plea agreement, on February 4, 2009, FENTER entered a Washington Mutual Bank branch on 4th Avenue in Seattle. FENTER asked one of the tellers to meet with him at a desk. FENTER claimed he had highly explosive material in a briefcase he was carrying, and said he could wipe out the bank. FENTER told the teller to fill a black bag he was carrying with money. FENTER threatened to detonate the bomb by remote control if the teller called police. FENTER escaped with $9,200.
FENTER used the same bomb ruse twice in California. On April 15, 2009, he robbed a Bank of America branch in San Francisco. FENTER told the victim teller that his name was “Patrick Henry,” and he represented an organization that was angry about how the government was spending “bail-out” money and that he intended to take the money and give it to people who needed it. The distraught teller filled the bag with $43,000. FENTER told her if she called police too soon after he left, he would detonate the bomb using his cell phone. In August 2009, FENTER robbed a Wells Fargo branch in Sacramento, saying the money was for “The cause.” He claimed to have associates outside the bank and showed the bank manager an ear piece as if he were in touch with conspirators who could detonate the bomb. FENTER escaped from the bank with $34,000.
On October 8, 2009, FENTER entered the Bank of America branch in Tacoma and told the assistant manager that he wanted to make a large transaction. FENTER sat at the manager’s desk, and showed her the contents of a black box that appeared to contain wires and an antenna. FENTER told the assistant manager that he had a triggering device for the bomb. FENTER said that the robbery was not about the bank, but about a fight against the government. FENTER told the assistant manager she had 10 minutes to fill his black bag with money. Another bank employee saw what was going on and called police with his cell phone. FENTER was apprehended a short distance away from the bank. He had a fully loaded Glock .40 caliber pistol in a holster on his hip. The object he claimed was a bomb was disabled and analyzed. The device contained a commercial grade blasting cap and battery. The two were not wired together. Had they been wired, the blasting cap could have exploded injuring anyone nearby.
In his sentencing memo, Special Assistant United States Attorney Jerry Costello noted that the robberies were prompted by greed, and that they traumatized the bank employees. “The victims understandably feared being blown to bits or being maimed for life—along with others—by the apparent bomb defendant carried. One of the victims was so frightened that she lost emotional control. Creating intense, palpable fear is exactly what defendant wanted, and his motivations are reprehensible. The victims will never forget the day that defendant both threatened their lives and invaded their psyches,” Mr. Costello wrote in his sentencing memo.
The case was investigated by the FBI and the Tacoma Police Department. The case is being prosecuted by Special Assistant United States Attorney Jerry Costello. Mr. Costello is a Deputy Pierce County Prosecutor, specially designated to prosecute gun crimes in federal court.
Thursday, December 22, 2011
ICE arrests 22 in Idaho immigration enforcement surge
All had been previously deported or had criminal convictions in the United States
BOISE, Idaho - Two previously deported felons were among the 22 immigration violators arrested by officers with U.S. Immigration and Customs Enforcement (ICE) during a three-day enforcement surge in Idaho's Magic Valley and the surrounding area.
During the operation, which began July 20, ICE arrested 15 immigration fugitives who had outstanding orders of deportation or had been previously deported and returned to the United States illegally. Six of the immigration fugitives had criminal histories ranging from drug possession, assault, theft, driving under the influence and domestic violence.
Two of the previously deported felons will be federally prosecuted in the District of Idaho on charges of illegal re-entry after deportation. Francisco Garcia-Ramirez, 34, of Mexico has a prior conviction for possession of cocaine and has previously been deported four times. Jesus Jaimes-Flores, 32, of Mexico has criminal convictions for DUI and assault and was previously convicted on federal charges of illegal entry. He has been previously deported once.
"ICE is committed to smart and effective immigration enforcement that targets individuals who pose a threat to public safety," said Steven M. Branch, field office director for ICE's Enforcement and Removal Operations (ERO) in Idaho. "ICE is committed to identifying those who come to the United States, commit crimes and blatantly disregard our nation's laws."
ICE officers made the arrests in nine Idaho communities including Burley, Buhl, Castleford, Hailey, Jerome, Rupert, Shoshone, Twin Falls, and Wendell. Those arrested are from Mexico (18), Nicaragua (1), Honduras (1), Peru (1) and Russia (1).
The arrests were made by ERO Fugitive Operations Teams (FOTs) based in Boise, Idaho, and Salt Lake City. The teams, two of 104 deployed nationwide, are responsible for locating, arresting, and removing criminal aliens and immigration fugitives who have ignored final orders of deportation handed down by the nation's immigration courts.
In fiscal year 2009, the FOTs made 35,904 arrests. More than 31,000 of those arrests, nearly 90 percent involved immigration fugitives and aliens with prior criminal convictions. Criminal aliens accounted for about 45 percent of the overall total, including more than 3,600 individuals with prior convictions for violent crimes such as murder and assault.
BOISE, Idaho - Two previously deported felons were among the 22 immigration violators arrested by officers with U.S. Immigration and Customs Enforcement (ICE) during a three-day enforcement surge in Idaho's Magic Valley and the surrounding area.
During the operation, which began July 20, ICE arrested 15 immigration fugitives who had outstanding orders of deportation or had been previously deported and returned to the United States illegally. Six of the immigration fugitives had criminal histories ranging from drug possession, assault, theft, driving under the influence and domestic violence.
Two of the previously deported felons will be federally prosecuted in the District of Idaho on charges of illegal re-entry after deportation. Francisco Garcia-Ramirez, 34, of Mexico has a prior conviction for possession of cocaine and has previously been deported four times. Jesus Jaimes-Flores, 32, of Mexico has criminal convictions for DUI and assault and was previously convicted on federal charges of illegal entry. He has been previously deported once.
"ICE is committed to smart and effective immigration enforcement that targets individuals who pose a threat to public safety," said Steven M. Branch, field office director for ICE's Enforcement and Removal Operations (ERO) in Idaho. "ICE is committed to identifying those who come to the United States, commit crimes and blatantly disregard our nation's laws."
ICE officers made the arrests in nine Idaho communities including Burley, Buhl, Castleford, Hailey, Jerome, Rupert, Shoshone, Twin Falls, and Wendell. Those arrested are from Mexico (18), Nicaragua (1), Honduras (1), Peru (1) and Russia (1).
The arrests were made by ERO Fugitive Operations Teams (FOTs) based in Boise, Idaho, and Salt Lake City. The teams, two of 104 deployed nationwide, are responsible for locating, arresting, and removing criminal aliens and immigration fugitives who have ignored final orders of deportation handed down by the nation's immigration courts.
In fiscal year 2009, the FOTs made 35,904 arrests. More than 31,000 of those arrests, nearly 90 percent involved immigration fugitives and aliens with prior criminal convictions. Criminal aliens accounted for about 45 percent of the overall total, including more than 3,600 individuals with prior convictions for violent crimes such as murder and assault.
Monday, December 19, 2011
13 indicted for selling counterfeit documents at Houston flea markets
HOUSTON - Thirteen individuals were charged by indictment on Monday for allegedly conspiring to possess or obtain counterfeit identity documents. The indictments were announced by U. S. Attorney José Angel Moreno, Southern District of Texas, and Michael Fienberg, the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI) acting special agent in charge.
"The sale of counterfeit identification documents is a matter of national security," said U. S. Attorney José Angel Moreno. "These types of enforcements actions are necessary to secure our borders and protect our citizens."
Two indictments charging a total of 20 persons returned under seal by a Houston grand jury on July 22 resulted from an 18-month investigation dubbed "Operation Fake I. D.," conducted by the ICE-HSI-led Document and Benefit Fraud Task Force (DBFTF), which includes special agents from the Department of State Diplomatic Security Service and officers of the Houston Police Department. "Operation Fake I. D." focused its investigative efforts on individuals allegedly involved in trafficking counterfeit government identity documents, including U.S. permanent resident cards, at the Sunny, La Tia Pancha and Cintas flea markets in north Houston.
Warrants issued following the return of the indictments were executed by investigating agents beginning July 23 through the weekend, including arrests July 24 at the Sunny, La Tia Pancha and Cintas flea markets. So far, 13 defendants have been arrested. Warrants remain outstanding for those charged but not yet in custody. All defendants in custody are expected to appear before U. S. Magistrate Judge Mary Milloy July 26 when the issue of bond is expected to be raised. The indictments have been ordered unsealed.
"ICE's HSI-led Document and Benefit Task Force provides a comprehensive approach in targeting criminal organizations and individuals involved in illegally manufacturing and selling fraudulent documents," said Michael Fienberg, acting special agent in charge of ICE-HSI in Houston. "HSI and its agency partners are committed to stopping this threat that undermines our nation's security."
The first of the two indictments charges a total of 17 defendants. All 17 are accused of being involved in a conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. permanent resident cards and other identifying documents beginning in or about February 2009 through June 2010. The customers were allegedly photographed and asked to provide other information necessary to complete the counterfeit immigrant and non-immigrant government documents. Once the photograph and information was obtained, the information was communicated via telephone, text messaging or courier to other co-conspirators operating a counterfeit government document production mill which produced the counterfeit documents which were then sold to customers. A conviction for this conspiracy charge carries a maximum punishment of five years imprisonment and a $250,000 fine.
The remaining nine counts of the indictment charges individual defendants separately for alleged specific instances of fraud and misuse of visas - knowingly possessing a forged, counterfeited, altered or falsely made form I-551 or U.S. Permanent Resident card - between July 26, 2009 through July 10, 2010. A conviction for any one of these offenses carries a maximum punishment of 10 years imprisonment and a $250,000 fine.
Two defendants charged in the second indictment and charged in all three counts - conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. Permanent Resident cards and other identifying documents beginning in or about January 2009 through July 2010 and two substantive counts for alleged specific instances of fraud and misusing visas in April and July 2010 - were also arrested on July 24. Both defendants face the same statutory penalties as the defendants in the first indictment upon conviction and are also in federal custody pending a detention hearing.
The defendants charged in the 10 count indictment are ("*" denotes in federal custody): Name, Age, Nationality (LNU = "last name unknown")
•Israel Arroyo-Mora, 37, Mexico "El Tio," true name Salvador Cobos-Lima, 59,
•Mexico Valentin Romero-Cortez, aka "Carlos," 50, Mexico
•Claudia Perez-Luna aka Claudia Del Villar, 53, Mexico
•Juan Carlos Morales-Garcia, aka "Toto," 38, Mexico
•Erika Cortez-Lopez, 35, Mexico
•Leonardo LNU
•"Gordo," true name Dagoberto Cacares, 33, Honduras
•"Baina," true name Carlos Joel Rosario-Solis, 21, Dominican Republic
•Raul Martin Puga, 41, Mexico
•Zeferino Romero-Cortez, 35, Mexico
•FLU LNU (star tattoos on elbows), true name
•Valentin Leonardo Romero-Cortez, 29, Mexico
•Jairo Bravo Luna, 23, U. S. citizen
•Suzanne Marie Ortegon, 23, U. S. citizen
•Cesar Llaguno-Romero, 23, Mexico
•Eulalio David Velazquez-Garduno, 23, Mexico
•Rodolfo Heredia Monroy, 34, Mexico
"The sale of counterfeit identification documents is a matter of national security," said U. S. Attorney José Angel Moreno. "These types of enforcements actions are necessary to secure our borders and protect our citizens."
Two indictments charging a total of 20 persons returned under seal by a Houston grand jury on July 22 resulted from an 18-month investigation dubbed "Operation Fake I. D.," conducted by the ICE-HSI-led Document and Benefit Fraud Task Force (DBFTF), which includes special agents from the Department of State Diplomatic Security Service and officers of the Houston Police Department. "Operation Fake I. D." focused its investigative efforts on individuals allegedly involved in trafficking counterfeit government identity documents, including U.S. permanent resident cards, at the Sunny, La Tia Pancha and Cintas flea markets in north Houston.
Warrants issued following the return of the indictments were executed by investigating agents beginning July 23 through the weekend, including arrests July 24 at the Sunny, La Tia Pancha and Cintas flea markets. So far, 13 defendants have been arrested. Warrants remain outstanding for those charged but not yet in custody. All defendants in custody are expected to appear before U. S. Magistrate Judge Mary Milloy July 26 when the issue of bond is expected to be raised. The indictments have been ordered unsealed.
"ICE's HSI-led Document and Benefit Task Force provides a comprehensive approach in targeting criminal organizations and individuals involved in illegally manufacturing and selling fraudulent documents," said Michael Fienberg, acting special agent in charge of ICE-HSI in Houston. "HSI and its agency partners are committed to stopping this threat that undermines our nation's security."
The first of the two indictments charges a total of 17 defendants. All 17 are accused of being involved in a conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. permanent resident cards and other identifying documents beginning in or about February 2009 through June 2010. The customers were allegedly photographed and asked to provide other information necessary to complete the counterfeit immigrant and non-immigrant government documents. Once the photograph and information was obtained, the information was communicated via telephone, text messaging or courier to other co-conspirators operating a counterfeit government document production mill which produced the counterfeit documents which were then sold to customers. A conviction for this conspiracy charge carries a maximum punishment of five years imprisonment and a $250,000 fine.
The remaining nine counts of the indictment charges individual defendants separately for alleged specific instances of fraud and misuse of visas - knowingly possessing a forged, counterfeited, altered or falsely made form I-551 or U.S. Permanent Resident card - between July 26, 2009 through July 10, 2010. A conviction for any one of these offenses carries a maximum punishment of 10 years imprisonment and a $250,000 fine.
Two defendants charged in the second indictment and charged in all three counts - conspiracy to solicit customers at the various flea markets in north Houston to purchase counterfeit U.S. Permanent Resident cards and other identifying documents beginning in or about January 2009 through July 2010 and two substantive counts for alleged specific instances of fraud and misusing visas in April and July 2010 - were also arrested on July 24. Both defendants face the same statutory penalties as the defendants in the first indictment upon conviction and are also in federal custody pending a detention hearing.
The defendants charged in the 10 count indictment are ("*" denotes in federal custody): Name, Age, Nationality (LNU = "last name unknown")
•Israel Arroyo-Mora, 37, Mexico "El Tio," true name Salvador Cobos-Lima, 59,
•Mexico Valentin Romero-Cortez, aka "Carlos," 50, Mexico
•Claudia Perez-Luna aka Claudia Del Villar, 53, Mexico
•Juan Carlos Morales-Garcia, aka "Toto," 38, Mexico
•Erika Cortez-Lopez, 35, Mexico
•Leonardo LNU
•"Gordo," true name Dagoberto Cacares, 33, Honduras
•"Baina," true name Carlos Joel Rosario-Solis, 21, Dominican Republic
•Raul Martin Puga, 41, Mexico
•Zeferino Romero-Cortez, 35, Mexico
•FLU LNU (star tattoos on elbows), true name
•Valentin Leonardo Romero-Cortez, 29, Mexico
•Jairo Bravo Luna, 23, U. S. citizen
•Suzanne Marie Ortegon, 23, U. S. citizen
•Cesar Llaguno-Romero, 23, Mexico
•Eulalio David Velazquez-Garduno, 23, Mexico
•Rodolfo Heredia Monroy, 34, Mexico
Saturday, December 17, 2011
Activity in the United States Attorney’s Office
Sentences
Michael St. Angelo, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 15, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. St. Angelo received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scott Dodge, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 19, 2010, for felon in possession of firearms and possession of stolen firearms. Dodge received 60 months of imprisonment, a fine of $500.00 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lester Robinson, 56, of Ranier, Washington, was sentenced by Federal District Court Judge Clarence A. Brimmer. The Washington State Patrol, Investigative Service Bureau, executed a search warrant at a residence in Ranier, Washington owned by the Defendant, Lester B. Robinson. The search warrant authorized the seizure of child pornography and electronic storage media upon which child pornography might be stored. During the course of the search, the investigators seized a computer and digital camera. A forensic analysis of the computer revealed images of child pornography including images of a child that investigators were able to determine lived in Wyoming. The Washington state authorities referred the matter to the Wyoming Internet Crimes Against Children Task Force (ICAC). An FBI agent who is a member of the ICAC task force went to the victim’s residence and was able to determine that the pornographic images of the victim were taken in her bedroom and recovered bedding and other articles that appeared in some of the images. The victim was interviewed by FBI agents it was confirmed that she had been sexually abused by the Defendant and he had taken pictures of that sexual abuse. As a result of this conduct on July 20, 2010, Robinson received 240 months of imprisonment, a fine of $2,300.00 and a life term of supervised release. This case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force.
William DeJesus, 30, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 21, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. DeJesus received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Michael St. Angelo, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 15, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. St. Angelo received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Scott Dodge, 22, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 19, 2010, for felon in possession of firearms and possession of stolen firearms. Dodge received 60 months of imprisonment, a fine of $500.00 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lester Robinson, 56, of Ranier, Washington, was sentenced by Federal District Court Judge Clarence A. Brimmer. The Washington State Patrol, Investigative Service Bureau, executed a search warrant at a residence in Ranier, Washington owned by the Defendant, Lester B. Robinson. The search warrant authorized the seizure of child pornography and electronic storage media upon which child pornography might be stored. During the course of the search, the investigators seized a computer and digital camera. A forensic analysis of the computer revealed images of child pornography including images of a child that investigators were able to determine lived in Wyoming. The Washington state authorities referred the matter to the Wyoming Internet Crimes Against Children Task Force (ICAC). An FBI agent who is a member of the ICAC task force went to the victim’s residence and was able to determine that the pornographic images of the victim were taken in her bedroom and recovered bedding and other articles that appeared in some of the images. The victim was interviewed by FBI agents it was confirmed that she had been sexually abused by the Defendant and he had taken pictures of that sexual abuse. As a result of this conduct on July 20, 2010, Robinson received 240 months of imprisonment, a fine of $2,300.00 and a life term of supervised release. This case was investigated by the Federal Bureau of Investigation, Internet Crimes Against Children Task Force.
William DeJesus, 30, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 21, 2010, for conspiracy to steal firearms from a licensed federal firearms dealer, and to stealing from a licensed federal firearms dealer and for possession of stolen firearms. DeJesus received 121 months of imprisonment, restitution in the amount of $6,436.89 and 3 years of supervised release. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wednesday, December 14, 2011
Thirteen People Indicted on Conspiracy to Distribute Methamphetamine
Thirteen people were indicted this week by a federal grand jury for conspiracy to distribute methamphetamine, the U.S. Attorney’s Office announced. All thirteen have been arrested. Initial appearances were held for 12 of the 13 defendants on July 20, 2010. A trial has been scheduled for September 13, 2010.
The defendants have been identified as:
•Jose Gallardo-Dedios, 36, Nampa, Idaho
•Guadalupe Valenzuela, 42, Nampa, Idaho
•Heidi Tucker, 42, Meridian, Idaho
•Quentin Mick, 27, Boise, Idaho
•Jason Marr, 24, Boise, Idaho
•Francisco Quinones, 47, Los Angeles, California
•Jorge Valdez, 31, Nampa, Idaho
•Haylee Lindauer, 31, Boise, Idaho
•Kalli Lindauer, 28, Boise, Idaho
•Juan Antonio Arvizu-Betancourt, 63, Nampa, Idaho
•Shawn Peterson, 32, American Falls, Idaho
•Fortino Bastidas, 31, Los Angeles, California
•Nabor Martinez-Herrera, 47, Salt Lake City, Utah
According to the indictment, between March 2009 and July 2010, the defendants knowingly and intentionally conspired to distribute at least five hundred grams or more of methamphetamine.
The defendants each face a mandatory minimum sentence of ten years in federal prison, up to life, and a fine of up to $4,000,000.
The Boise Police Department’s Bandit Drug Unit and the Drug Enforcement Administration, as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) led the investigation. The OCDETF program is a federal multi-agency, multi-jurisdictional task force which supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Nampa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, Idaho State Police, and Meridian Police Department assisted in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendants have been identified as:
•Jose Gallardo-Dedios, 36, Nampa, Idaho
•Guadalupe Valenzuela, 42, Nampa, Idaho
•Heidi Tucker, 42, Meridian, Idaho
•Quentin Mick, 27, Boise, Idaho
•Jason Marr, 24, Boise, Idaho
•Francisco Quinones, 47, Los Angeles, California
•Jorge Valdez, 31, Nampa, Idaho
•Haylee Lindauer, 31, Boise, Idaho
•Kalli Lindauer, 28, Boise, Idaho
•Juan Antonio Arvizu-Betancourt, 63, Nampa, Idaho
•Shawn Peterson, 32, American Falls, Idaho
•Fortino Bastidas, 31, Los Angeles, California
•Nabor Martinez-Herrera, 47, Salt Lake City, Utah
According to the indictment, between March 2009 and July 2010, the defendants knowingly and intentionally conspired to distribute at least five hundred grams or more of methamphetamine.
The defendants each face a mandatory minimum sentence of ten years in federal prison, up to life, and a fine of up to $4,000,000.
The Boise Police Department’s Bandit Drug Unit and the Drug Enforcement Administration, as part of the Organized Crime and Drug Enforcement Task Force (OCDETF) led the investigation. The OCDETF program is a federal multi-agency, multi-jurisdictional task force which supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Nampa Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, Idaho State Police, and Meridian Police Department assisted in the investigation.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sunday, December 11, 2011
Mexican Citizen Sentenced to 20 Years in Federal Prison for Drug Conspiracy and Money Laundering
Anchorage, Alaska — United States Attorney Karen L. Loeffler announced that on July 16, 2010, Gilberto Gonzalez, a.k.a. “Toro,” a.k.a. Victor Manuel Reyes, a citizen of Mexico who illegally returned to the United States after a prior conviction for drug trafficking, was sentenced in federal court in Anchorage to 20 years of imprisonment for his conviction of conspiracy to distribute cocaine and methamphetamine, and money laundering.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
Wednesday, December 7, 2011
Brooklyn, New York Man Sentenced 13 Years for Transporting 16-Year-Old for Prostitution
ALEXANDRIA, VA—Marc Shawn Brickhouse, 32, of Brooklyn, N.Y., was sentenced today to 156 months in prison, followed by five years of supervised release, for transporting a 16-year-old girl across state lines for the purpose of prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Shawn Henry, the Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Brickhouse pled guilty on May 11, 2010. According to court documents, Brickhouse was a pimp operating in Virginia, Maryland, and New York. Brickhouse and one of his prostitutes, Julie McKenna, 21, lured a 16-year-old girl from California to the East Coast to work as a prostitute. McKenna befriended the teen earlier when both McKenna and the juvenile lived in California. They kept in contact via MySpace. When the girl contacted McKenna saying she wanted to run away from home, Brickhouse and McKenna agreed for the girl to join them as long as she worked as a prostitute. McKenna flew to California. Then, McKenna and the girl rode a Greyhound bus back to Maryland where they were met by Brickhouse.
From late December 2009 to February 2010, Brickhouse and McKenna transported the 16-year-old between Virginia, Maryland, and New York to engage in prostitution. The girl was prostituted in each location. They posted prostitution advertisements for the girl on Craigslist and operated out of hotels, including the Quality Inn and Marriot Residence Inn in Woodbridge, Va. Finally, on Feb. 20, 2010, the girl ran from the Marriot Residence Inn to a nearby Babies 'R Us, where she asked a store employee to call the police.
On July 9, 2010, McKenna was sentenced to 71 months in prison.
This case was investigated by the FBI Washington Field Office and the Prince William County Police Department. Assistant United States Attorney Patricia Giles is prosecuting the case on behalf of the United States.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Shawn Henry, the Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge Liam O’Grady.
Brickhouse pled guilty on May 11, 2010. According to court documents, Brickhouse was a pimp operating in Virginia, Maryland, and New York. Brickhouse and one of his prostitutes, Julie McKenna, 21, lured a 16-year-old girl from California to the East Coast to work as a prostitute. McKenna befriended the teen earlier when both McKenna and the juvenile lived in California. They kept in contact via MySpace. When the girl contacted McKenna saying she wanted to run away from home, Brickhouse and McKenna agreed for the girl to join them as long as she worked as a prostitute. McKenna flew to California. Then, McKenna and the girl rode a Greyhound bus back to Maryland where they were met by Brickhouse.
From late December 2009 to February 2010, Brickhouse and McKenna transported the 16-year-old between Virginia, Maryland, and New York to engage in prostitution. The girl was prostituted in each location. They posted prostitution advertisements for the girl on Craigslist and operated out of hotels, including the Quality Inn and Marriot Residence Inn in Woodbridge, Va. Finally, on Feb. 20, 2010, the girl ran from the Marriot Residence Inn to a nearby Babies 'R Us, where she asked a store employee to call the police.
On July 9, 2010, McKenna was sentenced to 71 months in prison.
This case was investigated by the FBI Washington Field Office and the Prince William County Police Department. Assistant United States Attorney Patricia Giles is prosecuting the case on behalf of the United States.
Sunday, December 4, 2011
Miami-Area Husband and Wife Plead Guilty in $13.7 Million HIV Infusion Clinic Fraud Scheme
Two Individuals Sentenced to Prison for Separate HIV Infusion Scheme in Miami
WASHINGTON – Miami-area husband and wife Modesto and Victoria de la Vega pleaded guilty today in U.S. District Court in Miami for their participation in a $13.7 million HIV infusion Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS). Also today, two Miami-area residents were sentenced to prison for their participation in a separate HIV infusion Medicare fraud scheme.
Modesto de la Vega, 59, and his wife, Victoria de la Vega, 59, pleaded guilty before U.S. District Court Judge Adalberto Jordan to one count of conspiracy to defraud the United States, to cause submission of false claims to Medicare, and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims, as charged in a March 2010 indictment. At sentencing, scheduled for Nov. 5, 2010, Modesto and Victoria de la Vega each face a maximum penalty of five years in prison for the conspiracy to defraud the United States count and each false claims count, and 10 years in prison for the health care fraud conspiracy count.
According to plea documents, Modesto de la Vega was an owner and operator of T&R Rehabilitation Professional Corp., a Miami clinic that purported to provide expensive injection and infusion treatments to patients with HIV. Victoria de la Vega was an office assistant at T&R. Modesto de la Vega admitted at his plea hearing that he agreed with his co-defendants and others to enlist patient recruiters and patients, among others, into a scheme to defraud Medicare. Modesto and Victoria de la Vega admitted that they knew the patients at T&R did not need and/or did not receive the purported services, and that it would be necessary to pay kickbacks and bribes to the patients so that T&R could bill the Medicare program for the HIV infusion services that were not medically necessary and/or were not provided.
The defendants admitted that from approximately January 2003, through approximately July 2005, they and their co-defendants caused T&R to submit fraudulent claims to the Medicare program in the amount of approximately $13.7 million. Medicare paid approximately $4.1 million of these fraudulent claims.
In a separate and unrelated case, two Miami-area residents were sentenced today by U.S. District Judge Ursulla Ungaro in the Southern District of Florida for their participation in a similar HIV infusion Medicare fraud scheme. Keith Earnest Humes, a patient recruiter for a fraudulent HIV/AIDS infusion clinic known as Tendercare Medical Center Inc., was sentenced to 84 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $539,485. Lawrence Edward Humes, also a patient recruiter for Tendercare, was sentenced to 33 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $222,967. In addition, based on the court’s consideration of relevant conduct, Keith Humes was ordered to pay further restitution in the amount of $346,889.
According to court documents, Keith Humes and Lawrence Humes admitted that they conspired with each other and other individuals to defraud Medicare by submitting false claims for injection and infusion treatments that were medically unnecessary and that in most instances were not provided. Keith Humes and Lawrence Humes paid kickbacks to beneficiaries in return for their Medicare numbers and signatures, which Tendercare used to submit the false claims. Between January 2005 and December 2007, Tendercare submitted approximately $5.8 million in false and fraudulent claims to Medicare for treatments that were medically unnecessary or never provided. Medicare paid Tendercare approximately $2.7 million.
Today’s guilty pleas and sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The cases were prosecuted by attorneys from the Criminal Division’s Fraud Section, including Trial Attorneys N. Nathan Dimock, Joseph Beemsterboer, Charles D. Reed, former Trial Attorney Michael Padula, former Fraud Section Assistant Chief John S. (Jay) Darden and former Fraud Section Special Trial Attorney Martha Talley, on detail from HHS-OIG. The cases were investigated by the FBI and HHS-OIG and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
WASHINGTON – Miami-area husband and wife Modesto and Victoria de la Vega pleaded guilty today in U.S. District Court in Miami for their participation in a $13.7 million HIV infusion Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS). Also today, two Miami-area residents were sentenced to prison for their participation in a separate HIV infusion Medicare fraud scheme.
Modesto de la Vega, 59, and his wife, Victoria de la Vega, 59, pleaded guilty before U.S. District Court Judge Adalberto Jordan to one count of conspiracy to defraud the United States, to cause submission of false claims to Medicare, and to pay health care kickbacks; one count of conspiracy to commit health care fraud; and three counts of submitting false claims, as charged in a March 2010 indictment. At sentencing, scheduled for Nov. 5, 2010, Modesto and Victoria de la Vega each face a maximum penalty of five years in prison for the conspiracy to defraud the United States count and each false claims count, and 10 years in prison for the health care fraud conspiracy count.
According to plea documents, Modesto de la Vega was an owner and operator of T&R Rehabilitation Professional Corp., a Miami clinic that purported to provide expensive injection and infusion treatments to patients with HIV. Victoria de la Vega was an office assistant at T&R. Modesto de la Vega admitted at his plea hearing that he agreed with his co-defendants and others to enlist patient recruiters and patients, among others, into a scheme to defraud Medicare. Modesto and Victoria de la Vega admitted that they knew the patients at T&R did not need and/or did not receive the purported services, and that it would be necessary to pay kickbacks and bribes to the patients so that T&R could bill the Medicare program for the HIV infusion services that were not medically necessary and/or were not provided.
The defendants admitted that from approximately January 2003, through approximately July 2005, they and their co-defendants caused T&R to submit fraudulent claims to the Medicare program in the amount of approximately $13.7 million. Medicare paid approximately $4.1 million of these fraudulent claims.
In a separate and unrelated case, two Miami-area residents were sentenced today by U.S. District Judge Ursulla Ungaro in the Southern District of Florida for their participation in a similar HIV infusion Medicare fraud scheme. Keith Earnest Humes, a patient recruiter for a fraudulent HIV/AIDS infusion clinic known as Tendercare Medical Center Inc., was sentenced to 84 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $539,485. Lawrence Edward Humes, also a patient recruiter for Tendercare, was sentenced to 33 months in prison and three years of supervised release, and was ordered to pay restitution jointly and severally with co-defendants in the amount of $222,967. In addition, based on the court’s consideration of relevant conduct, Keith Humes was ordered to pay further restitution in the amount of $346,889.
According to court documents, Keith Humes and Lawrence Humes admitted that they conspired with each other and other individuals to defraud Medicare by submitting false claims for injection and infusion treatments that were medically unnecessary and that in most instances were not provided. Keith Humes and Lawrence Humes paid kickbacks to beneficiaries in return for their Medicare numbers and signatures, which Tendercare used to submit the false claims. Between January 2005 and December 2007, Tendercare submitted approximately $5.8 million in false and fraudulent claims to Medicare for treatments that were medically unnecessary or never provided. Medicare paid Tendercare approximately $2.7 million.
Today’s guilty pleas and sentences were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The cases were prosecuted by attorneys from the Criminal Division’s Fraud Section, including Trial Attorneys N. Nathan Dimock, Joseph Beemsterboer, Charles D. Reed, former Trial Attorney Michael Padula, former Fraud Section Assistant Chief John S. (Jay) Darden and former Fraud Section Special Trial Attorney Martha Talley, on detail from HHS-OIG. The cases were investigated by the FBI and HHS-OIG and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Thursday, December 1, 2011
Two Individuals Plead Guilty to Participating in International Child Pornography Group
WASHINGTON – Two individuals have pleaded guilty to charges related to their participation in an international group of child pornography traffickers who used a social networking site to share thousands of sexually explicit images, announced Assistant Attorney General Lanny A. Breuer for the Criminal Division and Acting U.S. Attorney Robert Cessar for the Western District of Pennsylvania.
Fred Woolum, 58, of Lexington, Va., pleaded guilty today before U.S. District Judge Arthur A. Schwab to one count of engaging in a child exploitation enterprise. Daniel Cox, 54, of Houston, pleaded guilty Wednesday before Judge Schwab to one count of conspiring to distribute and receive child pornography. Information presented at court established that from January 2007 to September 2009, Woolum, Cox and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
Sentencing has been set for Feb. 18, 2011, for Woolum and March 4, 2011, for Cox. At sentencing, Woolum faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, with the possibility of lifetime supervised release. Cox faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, with the possibility of lifetime supervised release. Woolum and Cox both face a fine of up to $250,000.
These cases were 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
U.S. Immigration and Customs Enforcement and the High Tech Investigative Unit of CEOS conducted the investigation that led to the prosecution of Woolum and Cox. CEOS Trial Attorney Barak Cohen and Assistant U.S. Attorney Craig W. Haller prosecuted the cases.
Fred Woolum, 58, of Lexington, Va., pleaded guilty today before U.S. District Judge Arthur A. Schwab to one count of engaging in a child exploitation enterprise. Daniel Cox, 54, of Houston, pleaded guilty Wednesday before Judge Schwab to one count of conspiring to distribute and receive child pornography. Information presented at court established that from January 2007 to September 2009, Woolum, Cox and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
Sentencing has been set for Feb. 18, 2011, for Woolum and March 4, 2011, for Cox. At sentencing, Woolum faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, with the possibility of lifetime supervised release. Cox faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison, with the possibility of lifetime supervised release. Woolum and Cox both face a fine of up to $250,000.
These cases were 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute 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.
U.S. Immigration and Customs Enforcement and the High Tech Investigative Unit of CEOS conducted the investigation that led to the prosecution of Woolum and Cox. CEOS Trial Attorney Barak Cohen and Assistant U.S. Attorney Craig W. Haller prosecuted the cases.
Wednesday, November 30, 2011
Police Officer Faces Additional Charges
LAREDO, TX—A superseding indictment accusing Orlando Jesus Hale, aka Chacho, 27, of Laredo, of mail and wire fraud arising from an alleged auto theft insurance fraud scheme in addition to the previous charges of conspiracy to possess with intent to distribute cocaine and using a firearm in furtherance of that drug offense has been unsealed, United States Attorney José Angel Moreno announced today.
The superseding indictment returned under seal on Tuesday, July 20, 2010, was unsealed yesterday following Hale’s arrest. The new indictment adds four new counts of mail and wire fraud to the original indictment returned in April 2010. Hale, who pleaded not guilty to the new charges, has been ordered released on the same conditions originally imposed in April to include electronic monitoring.
Hale was originally charged with conspiracy to possess with intent to distribute cocaine between Oct. 15, 2008, to Nov. 30, 2008, and using and carrying a firearm during and in relation to a drug trafficking crime and possessing the firearm in furtherance of the drug trafficking crime between Nov. 7 to Nov. 25, 2008.
The new charges allege that between May 2008 and February 2009, Hale devised a scheme to defraud insurance companies to obtain money and property by assisting in the theft and sale of vehicles from complicit owners. According to allegations in the indictment, Hale participated in the taking of vehicles from the United States which were driven to Mexico and sold and transferred to others. Hale was to, in turn, allegedly receive money from the persons in Mexico and elsewhere, who had possession of the vehicles and driven them to Mexico. The taking of the vehicles was pre-arranged with the cooperation and consent of the owners of the vehicles who had either fallen behind in payments or no longer wanted to pay on the loan on the vehicles. The owner would falsely report the vehicle stolen to Hale or to another Laredo police officer recruited and paid by Hale to generate an official report of the theft of the vehicle. The owner would then submit the false report of theft to their respective auto insurance companies. The insurance companies, relying on the false reports, would satisfy the claim by sending checks via the U.S. Mail to the insured owners or via wire transfer to satisfy expenses incurred by the owners. The three mail fraud charges and one wire fraud charge arise from the alleged theft of two vehicles in October 2008 and December 2008 resulting in the payment of thousands of dollars in insurance proceeds to pay for the purported loss of the vehicles and expenses allegedly incurred as a result of the thefts.
Each of the four new charges of mail and wire fraud carries a maximum term of imprisonment of 20 years upon conviction. The drug conspiracy count carries a mandatory minimum sentence of 10 years' imprisonment and a maximum of life imprisonment along with a $4 million fine upon conviction. The firearms charge carries a mandatory minimum sentence of five years' imprisonment upon conviction, which must be served consecutive or upon completion of any term of imprisonment imposed for the underlying drug offense as well as a $250,000 fine.
The investigation leading to the charges was conducted by the FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration Customs Enforcement and Customs Border Protection, with the assistance and cooperation of the Laredo Police Department. Assistant United States Attorney Roberto F. Ramirez and James McAlister are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
The superseding indictment returned under seal on Tuesday, July 20, 2010, was unsealed yesterday following Hale’s arrest. The new indictment adds four new counts of mail and wire fraud to the original indictment returned in April 2010. Hale, who pleaded not guilty to the new charges, has been ordered released on the same conditions originally imposed in April to include electronic monitoring.
Hale was originally charged with conspiracy to possess with intent to distribute cocaine between Oct. 15, 2008, to Nov. 30, 2008, and using and carrying a firearm during and in relation to a drug trafficking crime and possessing the firearm in furtherance of the drug trafficking crime between Nov. 7 to Nov. 25, 2008.
The new charges allege that between May 2008 and February 2009, Hale devised a scheme to defraud insurance companies to obtain money and property by assisting in the theft and sale of vehicles from complicit owners. According to allegations in the indictment, Hale participated in the taking of vehicles from the United States which were driven to Mexico and sold and transferred to others. Hale was to, in turn, allegedly receive money from the persons in Mexico and elsewhere, who had possession of the vehicles and driven them to Mexico. The taking of the vehicles was pre-arranged with the cooperation and consent of the owners of the vehicles who had either fallen behind in payments or no longer wanted to pay on the loan on the vehicles. The owner would falsely report the vehicle stolen to Hale or to another Laredo police officer recruited and paid by Hale to generate an official report of the theft of the vehicle. The owner would then submit the false report of theft to their respective auto insurance companies. The insurance companies, relying on the false reports, would satisfy the claim by sending checks via the U.S. Mail to the insured owners or via wire transfer to satisfy expenses incurred by the owners. The three mail fraud charges and one wire fraud charge arise from the alleged theft of two vehicles in October 2008 and December 2008 resulting in the payment of thousands of dollars in insurance proceeds to pay for the purported loss of the vehicles and expenses allegedly incurred as a result of the thefts.
Each of the four new charges of mail and wire fraud carries a maximum term of imprisonment of 20 years upon conviction. The drug conspiracy count carries a mandatory minimum sentence of 10 years' imprisonment and a maximum of life imprisonment along with a $4 million fine upon conviction. The firearms charge carries a mandatory minimum sentence of five years' imprisonment upon conviction, which must be served consecutive or upon completion of any term of imprisonment imposed for the underlying drug offense as well as a $250,000 fine.
The investigation leading to the charges was conducted by the FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration Customs Enforcement and Customs Border Protection, with the assistance and cooperation of the Laredo Police Department. Assistant United States Attorney Roberto F. Ramirez and James McAlister are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
Monday, November 28, 2011
Dallas Man Sentenced to More Than 14 Years in Federal Prison on Cocaine and Firearm Convictions
DALLAS—Jose Miguel Estevane, 26, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jorge A. Solis to a total of 170 months in federal prison, without parole, on cocaine and firearm convictions, announced U.S. Attorney James T. Jacks of the Northern District of Texas.
Estevane pleaded guilty in March 2010 to one count of possession with the intent to distribute cocaine and one count of carrying a firearm during and relation to a drug trafficking crime. Estevane has been in custody since his arrest in December 2009 by special agents with the FBI on charges outlined in a related federal criminal complaint.
According to documents filed in the case, on December 9, 2009, Estevane agreed to sell five kilograms of cocaine to a confidential informant, working with the FBI, for $125,000. When the FBI executed a search warrant at Estevane’s residence on Fernwood Drive in Dallas that day, they discovered approximately nine kilograms of cocaine on a table, in plain view. In addition, his co-defendant, Alex Noel Mendoza-Cano, 34, was at the residence guarding the drugs. This amount of cocaine is consistent with bulk distribution, not personal use.
Mendoza-Cana pleaded guilty in March 2010 to one count of possession with intent to distribute cocaine and faces a minimum statutory sentence of not less than 10 years or more than life in prison and a $4 million fine. He is scheduled to be sentenced by Judge Solis on September 8, 2010.
Estevane had a .40 caliber pistol on his person when he was arrested, and admitted that he carried the pistol to protect his interests in the commission of the drug trafficking crime.
The case was investigated by the FBI. Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Estevane pleaded guilty in March 2010 to one count of possession with the intent to distribute cocaine and one count of carrying a firearm during and relation to a drug trafficking crime. Estevane has been in custody since his arrest in December 2009 by special agents with the FBI on charges outlined in a related federal criminal complaint.
According to documents filed in the case, on December 9, 2009, Estevane agreed to sell five kilograms of cocaine to a confidential informant, working with the FBI, for $125,000. When the FBI executed a search warrant at Estevane’s residence on Fernwood Drive in Dallas that day, they discovered approximately nine kilograms of cocaine on a table, in plain view. In addition, his co-defendant, Alex Noel Mendoza-Cano, 34, was at the residence guarding the drugs. This amount of cocaine is consistent with bulk distribution, not personal use.
Mendoza-Cana pleaded guilty in March 2010 to one count of possession with intent to distribute cocaine and faces a minimum statutory sentence of not less than 10 years or more than life in prison and a $4 million fine. He is scheduled to be sentenced by Judge Solis on September 8, 2010.
Estevane had a .40 caliber pistol on his person when he was arrested, and admitted that he carried the pistol to protect his interests in the commission of the drug trafficking crime.
The case was investigated by the FBI. Assistant U.S. Attorney Gary Tromblay is in charge of the prosecution.
Friday, November 25, 2011
Former Law Enforcement Officer Pleads Guilty to Mail Fraud
TRENTON, NJ—Michael Palermo, 51, of Jackson Township, New Jersey, pleaded guilty today to committing mail fraud in connection with a civil lawsuit that he instituted against a contracting company, its principal, and others who constructed and sold him a house in 2006, United States Attorney Paul J. Fishman announced.
Palermo, a former Task Force Officer with the Federal Bureau of Investigation, pleaded guilty to an Information charging him with one count of mail fraud before United States District Judge Peter G. Sheridan in Trenton federal court. Palermo was initially charged with the fraud in a criminal Complaint on October 8, 2009. Judge Sheridan allowed Palermo to remain on $50,000 bail pending his sentencing, scheduled for October 29, 2010.
According to documents filed in this case and statements made in court:
Palermo was an officer with the Port Authority Police Department (PAPD) for over 16 years and was detailed to work with the FBI as a Task Force Officer on violent crime investigations for the last 11 years.
Palermo admitted that, from February 2007 to January 2009, he perpetrated a scheme to defraud the adverse parties in the civil lawsuit by misrepresenting the cost to clean up water damage in the basement of his home. To further the scheme, Palermo enlisted an individual serving as cooperating witness in cases with which he was involved in an official capacity. Palermo admitted he asked this individual to create a false bill indicating Palermo had paid him $10,000 for repairs, which Palermo later provided in civil discovery to the adverse parties. Palermo never actually paid the individual for any services related to the cleanup of his basement. Palermo also admitted that he made false, sworn statements in a relevant deposition and provided false answers to interrogatories in the civil lawsuit, including that he paid $10,000 for the repairs, and directed his attorneys to mail those answers to the adverse parties.
The mail fraud charge to which Palermo pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, New Jersey, with the investigation leading to today’s plea. Fishman also thanked Department of Justice Office of the Inspector General, under the direction of Special Agent in Charge James. E. Tomlinson, and the PAPD, under the direction of Superintendent Michael Fedorko, for their vital roles in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Eric T. Kanefsky of the U.S. Attorney’s Office Special Prosecutions Division.
Palermo, a former Task Force Officer with the Federal Bureau of Investigation, pleaded guilty to an Information charging him with one count of mail fraud before United States District Judge Peter G. Sheridan in Trenton federal court. Palermo was initially charged with the fraud in a criminal Complaint on October 8, 2009. Judge Sheridan allowed Palermo to remain on $50,000 bail pending his sentencing, scheduled for October 29, 2010.
According to documents filed in this case and statements made in court:
Palermo was an officer with the Port Authority Police Department (PAPD) for over 16 years and was detailed to work with the FBI as a Task Force Officer on violent crime investigations for the last 11 years.
Palermo admitted that, from February 2007 to January 2009, he perpetrated a scheme to defraud the adverse parties in the civil lawsuit by misrepresenting the cost to clean up water damage in the basement of his home. To further the scheme, Palermo enlisted an individual serving as cooperating witness in cases with which he was involved in an official capacity. Palermo admitted he asked this individual to create a false bill indicating Palermo had paid him $10,000 for repairs, which Palermo later provided in civil discovery to the adverse parties. Palermo never actually paid the individual for any services related to the cleanup of his basement. Palermo also admitted that he made false, sworn statements in a relevant deposition and provided false answers to interrogatories in the civil lawsuit, including that he paid $10,000 for the repairs, and directed his attorneys to mail those answers to the adverse parties.
The mail fraud charge to which Palermo pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, New Jersey, with the investigation leading to today’s plea. Fishman also thanked Department of Justice Office of the Inspector General, under the direction of Special Agent in Charge James. E. Tomlinson, and the PAPD, under the direction of Superintendent Michael Fedorko, for their vital roles in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Eric T. Kanefsky of the U.S. Attorney’s Office Special Prosecutions Division.
Monday, November 21, 2011
Kidnappers of 7-Month-Old Indicted in Federal Court
Amber Alert Results in Federal Carjacking and Kidnapping charges
KNOXVILLE, TN—A federal grand jury in Knoxville returned a two-count indictment on July 20, 2010, against David Jackson, 35, of Miami, Florida, Ashlea Melynda Laughlin, 21, of Greeneville, Tennessee, and Brooke Lashae Collins Stumbo, 21, of Afton, Tennessee. Jackson, Laughlin, and Stumbo were arrested in Miami, Florida, on July 13, 2010, after removing a 7-month-old from the custody of his mother and taking her car from Greeneville, Tennessee. All three defendants have remained in federal custody since their arrests.
The indictment alleges that on July 11, 2010, Jackson took the car of Anne Boyd with the intent to cause her serious bodily injury or death, and Laughlin and Stumbo took the 7-month-old from his mother, Anne Boyd.
If convicted, Jackson faces a term of 15 years in prison, a $250,000 fine, three years on supervised release, and a $100 special assessment. If convicted, Laughlin and Stumbo face a term of life in prison, a $250,000 fine, a minimum of five years and a maximum of life on supervised release, and a $100 special assessment.
Gregg L. Sullivan, Acting United States Attorney, attributed the safe return of the baby and the prompt charges to the quick response of local, state, and federal law enforcement authorities, the National Center for Missing and Exploited Children, and the public who participated in the nationwide Amber Alert.
This indictment is the result of an investigation by the Greene County Sheriff’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Miami Safe Streets Task Force. Assistant U.S. Attorney Helen Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
KNOXVILLE, TN—A federal grand jury in Knoxville returned a two-count indictment on July 20, 2010, against David Jackson, 35, of Miami, Florida, Ashlea Melynda Laughlin, 21, of Greeneville, Tennessee, and Brooke Lashae Collins Stumbo, 21, of Afton, Tennessee. Jackson, Laughlin, and Stumbo were arrested in Miami, Florida, on July 13, 2010, after removing a 7-month-old from the custody of his mother and taking her car from Greeneville, Tennessee. All three defendants have remained in federal custody since their arrests.
The indictment alleges that on July 11, 2010, Jackson took the car of Anne Boyd with the intent to cause her serious bodily injury or death, and Laughlin and Stumbo took the 7-month-old from his mother, Anne Boyd.
If convicted, Jackson faces a term of 15 years in prison, a $250,000 fine, three years on supervised release, and a $100 special assessment. If convicted, Laughlin and Stumbo face a term of life in prison, a $250,000 fine, a minimum of five years and a maximum of life on supervised release, and a $100 special assessment.
Gregg L. Sullivan, Acting United States Attorney, attributed the safe return of the baby and the prompt charges to the quick response of local, state, and federal law enforcement authorities, the National Center for Missing and Exploited Children, and the public who participated in the nationwide Amber Alert.
This indictment is the result of an investigation by the Greene County Sheriff’s Office, Tennessee Bureau of Investigation, Federal Bureau of Investigation, and Miami Safe Streets Task Force. Assistant U.S. Attorney Helen Smith will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Thursday, November 17, 2011
Bountiful Man Pleads Guilty to Wire Fraud in Connection with Scheme to Get Kickback from Investment Manager
SALT LAKE CITY—Cameron Hayes Cox, age 28, of Bountiful, pled guilty in federal court Tuesday morning to a charge of wire fraud in connection with a scheme to defraud the Utah Retirement Systems (URS) by soliciting a side deal from an investment manager. Cox is a former employee of URS.
Cox was charged in a one-count Felony Information filed in federal court in Salt Lake City in June. At a sentencing hearing Tuesday afternoon, U.S. District Judge Dale Kimball sentenced Cox to a year in federal prison. Judge Kimball also ordered him to serve 36 months of supervised release when he finishes his prison sentence.
Cox was employed by URS as an investment analyst from around January 2008 to around January 2010. URS is an independent agency established by the State of Utah and is responsible for the operation of various funds maintained as retirement accounts for active and retired state public employees.
According to court documents, one aspect of URS’ operations is the selection of third-party investment companies to serve as investment managers for portions of URS’ portfolio. The process of identifying a potential third-party manager, reviewing information, conducting due diligence, negotiating terms, and entering into a formal agreement typically occurs over a period of several months and involves a team of investment analysts, legal counsel, and others. The final step in this process involves a URS committee reviewing a proposed agreement for final approval.
According to the Felony Information, beginning in the spring of 2009, URS was introduced to representatives of a hedge fund based in London. A series of negotiations started between the parties concerning a potential agreement. Cox was a member of the URS team responsible for collecting, reviewing, and analyzing information provided by the company, negotiating terms, and presenting a proposed agreement for consideration by URS. Court records show that negotiations progressed to a point where URS intended to consider a proposed agreement between the parties around November 2009. The proposed agreement, if approved by URS, contemplated the hedge fund would manage approximately $50 million of URS’ portfolio.
Cox admitted in his plea agreement with federal prosecutors that beginning in November 2009 and continuing through January 2010, he communicated with an individual in London using an anonymous identity to negotiate a “side deal” whereby he would be paid $150,000 by the investment manager to ensure URS approved the proposed agreement between the parties. The individual Cox was communicating with was the point person involved in negotiations with URS.
Under the side deal, the company would agree to pay Cox money to facilitate URS’ approval of the company as a third-party fund manager. In truth and in fact, Cox did not have the authority or influence over URS to honor the side deal. Cox concealed all of his communication with the company from URS. Once propositioned, the London investment manager notified URS who notified federal law enforcement officials. Thereafter, hedge fund officials cooperated with the FBI’s efforts to conduct a sting operation.
URS officials say that no retirement trust funds were ever at risk during the course of Cox’s conduct and that he did not have the ability to take trust funds. Cox also did not have the authority or influence to make the decision on whether to hire an investment manager and the processes in place, which were followed in this situation, would not have allowed the improper hiring of an investment manager.
Law enforcement authorities believe Cox acted alone in this case and that no other URS employees were involved. URS worked closely with the FBI in the investigation of this case.
Federal prosecutors said the investment manager and hedge fund, which are not identified in court records, reported the conduct and cooperated fully in the investigation.
“This prosecution underscores our office’s commitment to holding accountable those who abuse their positions of trust. It also demonstrates the strength of effective coordination between potential victims and law enforcement. URS’s and the London hedge fund’s timely and responsible reporting of unlawful conduct, coupled with the FBI’s swift and thorough investigation, provided the foundation to bring a misguided junior investment advisor to justice,” Acting U.S. Attorney Carlie Christensen said today.
James S. McTighe, Special Agent in Charge of the FBI in Salt Lake City, said, “For a public employee to attempt to negotiate this type of secret deal for personal gain is not only a violation of federal law; it's a violation of the public’s trust. This case is an example of why public corruption is the FBI’s top criminal priority. Such illegal activity strikes at the heart of fair competition in the public sector. A public employee who promises contracts or business in exchange for a personal payout will find themselves in trouble with the FBI.”
Cox was charged in a one-count Felony Information filed in federal court in Salt Lake City in June. At a sentencing hearing Tuesday afternoon, U.S. District Judge Dale Kimball sentenced Cox to a year in federal prison. Judge Kimball also ordered him to serve 36 months of supervised release when he finishes his prison sentence.
Cox was employed by URS as an investment analyst from around January 2008 to around January 2010. URS is an independent agency established by the State of Utah and is responsible for the operation of various funds maintained as retirement accounts for active and retired state public employees.
According to court documents, one aspect of URS’ operations is the selection of third-party investment companies to serve as investment managers for portions of URS’ portfolio. The process of identifying a potential third-party manager, reviewing information, conducting due diligence, negotiating terms, and entering into a formal agreement typically occurs over a period of several months and involves a team of investment analysts, legal counsel, and others. The final step in this process involves a URS committee reviewing a proposed agreement for final approval.
According to the Felony Information, beginning in the spring of 2009, URS was introduced to representatives of a hedge fund based in London. A series of negotiations started between the parties concerning a potential agreement. Cox was a member of the URS team responsible for collecting, reviewing, and analyzing information provided by the company, negotiating terms, and presenting a proposed agreement for consideration by URS. Court records show that negotiations progressed to a point where URS intended to consider a proposed agreement between the parties around November 2009. The proposed agreement, if approved by URS, contemplated the hedge fund would manage approximately $50 million of URS’ portfolio.
Cox admitted in his plea agreement with federal prosecutors that beginning in November 2009 and continuing through January 2010, he communicated with an individual in London using an anonymous identity to negotiate a “side deal” whereby he would be paid $150,000 by the investment manager to ensure URS approved the proposed agreement between the parties. The individual Cox was communicating with was the point person involved in negotiations with URS.
Under the side deal, the company would agree to pay Cox money to facilitate URS’ approval of the company as a third-party fund manager. In truth and in fact, Cox did not have the authority or influence over URS to honor the side deal. Cox concealed all of his communication with the company from URS. Once propositioned, the London investment manager notified URS who notified federal law enforcement officials. Thereafter, hedge fund officials cooperated with the FBI’s efforts to conduct a sting operation.
URS officials say that no retirement trust funds were ever at risk during the course of Cox’s conduct and that he did not have the ability to take trust funds. Cox also did not have the authority or influence to make the decision on whether to hire an investment manager and the processes in place, which were followed in this situation, would not have allowed the improper hiring of an investment manager.
Law enforcement authorities believe Cox acted alone in this case and that no other URS employees were involved. URS worked closely with the FBI in the investigation of this case.
Federal prosecutors said the investment manager and hedge fund, which are not identified in court records, reported the conduct and cooperated fully in the investigation.
“This prosecution underscores our office’s commitment to holding accountable those who abuse their positions of trust. It also demonstrates the strength of effective coordination between potential victims and law enforcement. URS’s and the London hedge fund’s timely and responsible reporting of unlawful conduct, coupled with the FBI’s swift and thorough investigation, provided the foundation to bring a misguided junior investment advisor to justice,” Acting U.S. Attorney Carlie Christensen said today.
James S. McTighe, Special Agent in Charge of the FBI in Salt Lake City, said, “For a public employee to attempt to negotiate this type of secret deal for personal gain is not only a violation of federal law; it's a violation of the public’s trust. This case is an example of why public corruption is the FBI’s top criminal priority. Such illegal activity strikes at the heart of fair competition in the public sector. A public employee who promises contracts or business in exchange for a personal payout will find themselves in trouble with the FBI.”
Monday, November 14, 2011
Denver Man Faces Federal Charges in Connection with United Airline Flight Diverted to Salt Lake City
SALT LAKE CITY—A federal grand jury returned a one-count indictment Wednesday afternoon charging Andrew Escobar, age 40, of Denver, with communicating false information endangering aircraft safety.
The charges stem from a Feb. 18, 2010, incident involving a United Airlines flight from Denver to San Francisco. The plane was diverted to Salt Lake City after a flight attendant on the flight discovered a note taped to the beverage service cart. Based on the note, the pilot decided to land the plane in Salt Lake City. The FBI and members of its Joint Terrorism Task Force responded to the airport to investigate.
The indictment alleges Escobar willfully communicated information, knowing it to be false, and under circumstances in which it may reasonably be believed, thereby endangering the safety of an aircraft in flight.
“An aircraft with more than 160 passengers and crew members was diverted to Salt Lake City where it undertook an emergency landing. The flight crew was subjected to considerable stress and the passengers feared for their personal safety, had their travel plans disrupted, and were inconvenienced by the delays associated with the necessary security precautions taken in Salt Lake City. Given the circumstances of the case, I believe a federal prosecution is appropriate,” Acting U.S. Attorney Carlie Christensen said today.
The maximum potential penalty for the charge is up to 20 years in federal prison and a $250,000 fine. A summons will be issued to Escobar to appear on the charges. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The charges stem from a Feb. 18, 2010, incident involving a United Airlines flight from Denver to San Francisco. The plane was diverted to Salt Lake City after a flight attendant on the flight discovered a note taped to the beverage service cart. Based on the note, the pilot decided to land the plane in Salt Lake City. The FBI and members of its Joint Terrorism Task Force responded to the airport to investigate.
The indictment alleges Escobar willfully communicated information, knowing it to be false, and under circumstances in which it may reasonably be believed, thereby endangering the safety of an aircraft in flight.
“An aircraft with more than 160 passengers and crew members was diverted to Salt Lake City where it undertook an emergency landing. The flight crew was subjected to considerable stress and the passengers feared for their personal safety, had their travel plans disrupted, and were inconvenienced by the delays associated with the necessary security precautions taken in Salt Lake City. Given the circumstances of the case, I believe a federal prosecution is appropriate,” Acting U.S. Attorney Carlie Christensen said today.
The maximum potential penalty for the charge is up to 20 years in federal prison and a $250,000 fine. A summons will be issued to Escobar to appear on the charges. An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Friday, November 11, 2011
Texas Man Pleads Guilty in Murder-for-Hire of Troy Couple
A Texas man pleaded guilty today in the murder-for-hire of a Troy, Michigan couple, announced United States Attorney Barbara L. McQuade.
Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, and Special Agent in Charge Brian Moskowitz, Immigrations and Customs Enforcement, Detroit Division.
Pleading guilty before Chief United States District Judge Gerald E. Rosen was Douglas Tobar, age 42, formerly of Houston, Texas.
According to the information presented to the court at the time of the guilty plea, TOBAR and co-defendant Narayan Thadani arranged for Miguel Servando and Nelson Mendoza to travel from Texas to Michigan with the intent to murder Aasha and Brij Chhadbra of Troy, Michigan. Servando and Mendoza were arrested by the Taylor Police Department after a traffic stop while traveling southbound on I-75. The traffic stop led to a search of the vehicle which revealed, among other things, a diagram and address of a home in Troy, Michigan, and a copy of a passport picture of a woman. The Taylor officer requested that the Troy Police Department conduct a welfare check on the home. The Troy Police Department’s welfare check resulted in the discovery of the two victims, Brij and Asha Chhabra, who had been killed.
Co-defendant THADANI pleaded guilty last month and will be sentenced to life in prison without the possibility of parole.
United States Attorney Barbara L. McQuade stated, “This case is a great example of the success that can be achieved when law enforcement agencies work together. Through collaboration, we are able to bring violent criminals to justice."
The penalty for the charged offense is death or life imprisonment, however, under the terms of the plea agreement the government is recommending a sentence of 20 years in prison based on TOBAR’S cooperation in this case. Thadani and Tobar are currently in the custody of the United States Marshals Service. Servando and Mendoza were charged with first degree murder by the Oakland County Prosecutor's office. Servando pleaded guilty to state and federal charges, and is currently serving a life sentence in federal prison. Mendoza was found guilty after a trial on state charges, and is currently serving a life sentence in state custody.
United States Attorney Barbara McQuade praised the and hard work of the Taylor Police Department, the Troy Police Department, the Oakland County Prosecutor’s Office, the Federal Bureau of Investigation, and Immigration Customs Enforcement for conducting an aggressive, thorough, and effective joint investigation. This multi-jurisdictional investigation serves as another example of how the public can greatly benefit from the cooperation of federal and local law enforcement agencies.
Assistant United States Attorneys Matthew Roth and Jennifer Gorland are handling the prosecution of this case.
Ms. McQuade was joined in the announcement by Andrew G. Arena, Special Agent in Charge, Federal Bureau of Investigation, and Special Agent in Charge Brian Moskowitz, Immigrations and Customs Enforcement, Detroit Division.
Pleading guilty before Chief United States District Judge Gerald E. Rosen was Douglas Tobar, age 42, formerly of Houston, Texas.
According to the information presented to the court at the time of the guilty plea, TOBAR and co-defendant Narayan Thadani arranged for Miguel Servando and Nelson Mendoza to travel from Texas to Michigan with the intent to murder Aasha and Brij Chhadbra of Troy, Michigan. Servando and Mendoza were arrested by the Taylor Police Department after a traffic stop while traveling southbound on I-75. The traffic stop led to a search of the vehicle which revealed, among other things, a diagram and address of a home in Troy, Michigan, and a copy of a passport picture of a woman. The Taylor officer requested that the Troy Police Department conduct a welfare check on the home. The Troy Police Department’s welfare check resulted in the discovery of the two victims, Brij and Asha Chhabra, who had been killed.
Co-defendant THADANI pleaded guilty last month and will be sentenced to life in prison without the possibility of parole.
United States Attorney Barbara L. McQuade stated, “This case is a great example of the success that can be achieved when law enforcement agencies work together. Through collaboration, we are able to bring violent criminals to justice."
The penalty for the charged offense is death or life imprisonment, however, under the terms of the plea agreement the government is recommending a sentence of 20 years in prison based on TOBAR’S cooperation in this case. Thadani and Tobar are currently in the custody of the United States Marshals Service. Servando and Mendoza were charged with first degree murder by the Oakland County Prosecutor's office. Servando pleaded guilty to state and federal charges, and is currently serving a life sentence in federal prison. Mendoza was found guilty after a trial on state charges, and is currently serving a life sentence in state custody.
United States Attorney Barbara McQuade praised the and hard work of the Taylor Police Department, the Troy Police Department, the Oakland County Prosecutor’s Office, the Federal Bureau of Investigation, and Immigration Customs Enforcement for conducting an aggressive, thorough, and effective joint investigation. This multi-jurisdictional investigation serves as another example of how the public can greatly benefit from the cooperation of federal and local law enforcement agencies.
Assistant United States Attorneys Matthew Roth and Jennifer Gorland are handling the prosecution of this case.
Monday, November 7, 2011
Former State Representative Convicted for Insurance Fraud
COLUMBIA, SC—United States Attorney William N. Nettles stated today that Robert A. Kohn, age 65, of Charleston, was convicted of mail fraud, a violation of 18 U.S.C. § 1341, after a two-and-a-half day trial. Kohn is a former state representative. The jury deliberated a little over an hour Wednesday before reaching its verdict. Judge P. Michael Duffy of Charleston presided over the case and will impose the sentence on a date to be determined.
According to evidence presented during the trial, Kohn worked as an insurance consultant, periodically assisting companies with worker’s compensation matters. Among those companies was Knight’s Services, a Charleston-based company overseen by Roy Knight. Knight’s Services performed pipe fitting and welding jobs at Detyens Shipyards. Between 2002 and 2004, Kohn helped prepare Knight’s Services’ annual insurance submissions to Companion Property & Casualty Insurance Company. The premiums charged to Knight’s Services for this coverage were based on the payroll for the company. Kohn and Roy Knight, who has previously pled guilty to related charges, fabricated Knight’s Services’ payroll figures in order to obtain lower premiums for the company. Over the three-year time span, Kohn saved Knight approximately $370,000 in premiums. The fraud was discovered after a Knight’s Services employee, Matthew Williamson, died performing work at the shipyard. The subsequent worker’s compensation claim and scrutiny of the policy led to criminal charges for Kohn and Knight.
The maximum penalty Robert A. Kohn could receive is a fine of $250,000 and/or imprisonment of 20 years. Mr. Nettles said the case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Peter T. Phillips.
According to evidence presented during the trial, Kohn worked as an insurance consultant, periodically assisting companies with worker’s compensation matters. Among those companies was Knight’s Services, a Charleston-based company overseen by Roy Knight. Knight’s Services performed pipe fitting and welding jobs at Detyens Shipyards. Between 2002 and 2004, Kohn helped prepare Knight’s Services’ annual insurance submissions to Companion Property & Casualty Insurance Company. The premiums charged to Knight’s Services for this coverage were based on the payroll for the company. Kohn and Roy Knight, who has previously pled guilty to related charges, fabricated Knight’s Services’ payroll figures in order to obtain lower premiums for the company. Over the three-year time span, Kohn saved Knight approximately $370,000 in premiums. The fraud was discovered after a Knight’s Services employee, Matthew Williamson, died performing work at the shipyard. The subsequent worker’s compensation claim and scrutiny of the policy led to criminal charges for Kohn and Knight.
The maximum penalty Robert A. Kohn could receive is a fine of $250,000 and/or imprisonment of 20 years. Mr. Nettles said the case was investigated by agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Winston D. Holliday, Jr., and Peter T. Phillips.
Two Members of Drug Ring Conspiracy Plead Guilty
Two men connected to a St. Paul drug ring responsible for distributing methamphetamine and other controlled substances have pleaded guilty to the crime in federal court in Minneapolis. Appearing before United States District Court Chief Judge Michael J. Davis late yesterday afternoon, Kou Lee, age 30, of South St. Paul, and Sherman Lee, age 31, of St. Paul, pled guilty to one count of conspiracy to distribute methamphetamine. Sherman Lee also pled guilty to one count of brandishing a firearm during a drug-trafficking crime. The men, along with nine co-defendants, were charged in a superseding indictment on February 10, 2010.
In their plea agreements, the Lees admitted that from May 1, 2009, through January 12, 2010, they conspired to distribute between 500 and 1,500 grams of methamphetamine. In addition, Sherman Lee admitted that during that time period, on at least one occasion, he possessed and brandished a Cobra, Model FS380 handgun while threatening another person during a dispute over unpaid drugs.
This case resulted from an investigation that included a controlled buy of methamphetamine from Kou Lee on November 20, 2009, and from Sherman Lee on December 15, 2009. The November transaction occurred in a St. Paul apartment, and the December transaction took place in an Eagan parking lot.
Several co-defendants in this case already have pleaded guilty to one count of conspiracy. Patrick Michael Grovum, unknown age and address; Zane Youalo Vang, age 24, of Oakdale, pleaded guilty in June of 2010. Deesa Xiong, age 27, of St. Paul, pleaded guilty in April of 2010. In March of 2010, Jorge Ramirez Hernandez, age 22, of St. Paul and Juan Mendez-Rios, age 32, of Minneapolis, pleaded guilty to the charge. A jury trial is set for July 29, 2010, for the remaining co-defendants.
For their crimes, Kou Lee and Sherman Lee face a potential maximum penalty of life in prison on the conspiracy charge. Sherman Lee also faces a potential maximum penalty of life in prison on the firearm count. Judge Davis will determine their sentences at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
In their plea agreements, the Lees admitted that from May 1, 2009, through January 12, 2010, they conspired to distribute between 500 and 1,500 grams of methamphetamine. In addition, Sherman Lee admitted that during that time period, on at least one occasion, he possessed and brandished a Cobra, Model FS380 handgun while threatening another person during a dispute over unpaid drugs.
This case resulted from an investigation that included a controlled buy of methamphetamine from Kou Lee on November 20, 2009, and from Sherman Lee on December 15, 2009. The November transaction occurred in a St. Paul apartment, and the December transaction took place in an Eagan parking lot.
Several co-defendants in this case already have pleaded guilty to one count of conspiracy. Patrick Michael Grovum, unknown age and address; Zane Youalo Vang, age 24, of Oakdale, pleaded guilty in June of 2010. Deesa Xiong, age 27, of St. Paul, pleaded guilty in April of 2010. In March of 2010, Jorge Ramirez Hernandez, age 22, of St. Paul and Juan Mendez-Rios, age 32, of Minneapolis, pleaded guilty to the charge. A jury trial is set for July 29, 2010, for the remaining co-defendants.
For their crimes, Kou Lee and Sherman Lee face a potential maximum penalty of life in prison on the conspiracy charge. Sherman Lee also faces a potential maximum penalty of life in prison on the firearm count. Judge Davis will determine their sentences at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
Saturday, November 5, 2011
Moses Lake Collector of Child Pornography Receives Four-Year Prison Term
SPOKANE, WA—Today, James A. McDevitt, United States Attorney for the Eastern District of Washington, announced that Keith Marshel Ivers, age 50, of Moses Lake, Washington, was sentenced to four years in prison for possessing child pornography on his computer.
In November 2007, the Federal Bureau of Investigation located in New York discovered an Internet location sharing child pornography. Further investigation showed the Internet location was originating from Keith Ivers home located in Moses Lake, Washington. In January 2008, a federal search warrant was executed at Keith Ivers’ home in Moses Lake, where over 2,000 images of child pornography were seized in computers and electronic storage devices. In addition to downloading child pornography from the Internet, the investigation showed that Keith Ivers had been sharing his files over the Internet using a file sharing program. Keith Ivers voluntarily surrendered in July 2009, and was released on electronic home confinement. He was ordered to self report to federal prison once one has been assigned for him. In March 2010, he pleaded guilty to possessing child pornography.
Keith Ivers was ordered to serve 48 months in prison, followed by a five-year term of court supervision after he is released from prison. As well, Keith Ivers will be required to register as a sex offender for his lifetime.
This case is being brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States 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. The Project Safe Childhood (PSC) Initiative has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases and to identify and rescue child victims
• Participation of PSC partners in coordinated national initiatives
• Increased federal enforcement in child pornography and enticement cases
• Training of federal, state, and local law enforcement agents
• Community awareness and educational programs
To report these crimes, visit www.cybertipline.com or call the National Center for Missing and Exploited Children’s hotline at 1-800-843-5678. This investigation was conducted by the Federal Bureau of Investigation. This case was prosecuted by Stephanie Van Marter, Assistant U.S. Attorney for the Eastern District of Washington.
In November 2007, the Federal Bureau of Investigation located in New York discovered an Internet location sharing child pornography. Further investigation showed the Internet location was originating from Keith Ivers home located in Moses Lake, Washington. In January 2008, a federal search warrant was executed at Keith Ivers’ home in Moses Lake, where over 2,000 images of child pornography were seized in computers and electronic storage devices. In addition to downloading child pornography from the Internet, the investigation showed that Keith Ivers had been sharing his files over the Internet using a file sharing program. Keith Ivers voluntarily surrendered in July 2009, and was released on electronic home confinement. He was ordered to self report to federal prison once one has been assigned for him. In March 2010, he pleaded guilty to possessing child pornography.
Keith Ivers was ordered to serve 48 months in prison, followed by a five-year term of court supervision after he is released from prison. As well, Keith Ivers will be required to register as a sex offender for his lifetime.
This case is being brought as part of Project Safe Childhood. In February 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States 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. The Project Safe Childhood (PSC) Initiative has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases and to identify and rescue child victims
• Participation of PSC partners in coordinated national initiatives
• Increased federal enforcement in child pornography and enticement cases
• Training of federal, state, and local law enforcement agents
• Community awareness and educational programs
To report these crimes, visit www.cybertipline.com or call the National Center for Missing and Exploited Children’s hotline at 1-800-843-5678. This investigation was conducted by the Federal Bureau of Investigation. This case was prosecuted by Stephanie Van Marter, Assistant U.S. Attorney for the Eastern District of Washington.
Thursday, November 3, 2011
Tucson Sector Agents Apprehend Five Suspects with Active Warrants within 24 Hours
Tucson, Ariz. – During a 24 hour period, Border Patrol agents across the Tucson Sector apprehended five illegal aliens with active warrants for arrest; to include three with extraditable felony warrants. The warrants and extensive criminal histories of each individual were revealed using the Integrated Automated Fingerprint Identification System (IAFIS).
On Tuesday, agents assigned to the Douglas Border Patrol Station apprehended an individual with an outstanding felony arrest warrant issued by the New York Police Department for rape and sexual abuse. He is being held for prosecution and will be transferred to the U.S. Marshal’s Office.
Also late Tuesday, Casa Grande agents apprehended an individual in the west desert area with an extraditable warrant out of Navajo County, Ariz., on smuggling charges. He is being held pending extradition.
In two separate incidents early Wednesday, three more individuals with outstanding warrants were apprehended by Casa Grande agents. Agents first apprehended two illegal aliens wanted on drug-related charges; one with a felony warrant out of Henderson, Nev., the other out of Spanish Fork, Utah. Both individuals will be transferred to the Pinal County Sherriff’s Department for extradition.
Less than an hour after identifying the first two individuals, Casa Grande agents identified a third illegal alien with a warrant for “failure to appear” on a hit-and-run charge out of Portland, Ore. The warrant is not extraditable so the subject is being held for processing.
IAFIS technology helps agents quickly identify and classify criminals previously arrested and charged by other law enforcement agencies. In Fiscal Year 2009, the Tucson Sector Border Patrol apprehended more than 241,000 people. From Oct. 1, 2009, to June 30, 2010, Tucson Sector agents apprehended more than 184,000 people attempting to enter the United States illegally. The Border Patrol is committed to working with local, state, federal and tribal law enforcement agencies to reach our shared goal of improving the quality of life in all Arizona communities.
On Tuesday, agents assigned to the Douglas Border Patrol Station apprehended an individual with an outstanding felony arrest warrant issued by the New York Police Department for rape and sexual abuse. He is being held for prosecution and will be transferred to the U.S. Marshal’s Office.
Also late Tuesday, Casa Grande agents apprehended an individual in the west desert area with an extraditable warrant out of Navajo County, Ariz., on smuggling charges. He is being held pending extradition.
In two separate incidents early Wednesday, three more individuals with outstanding warrants were apprehended by Casa Grande agents. Agents first apprehended two illegal aliens wanted on drug-related charges; one with a felony warrant out of Henderson, Nev., the other out of Spanish Fork, Utah. Both individuals will be transferred to the Pinal County Sherriff’s Department for extradition.
Less than an hour after identifying the first two individuals, Casa Grande agents identified a third illegal alien with a warrant for “failure to appear” on a hit-and-run charge out of Portland, Ore. The warrant is not extraditable so the subject is being held for processing.
IAFIS technology helps agents quickly identify and classify criminals previously arrested and charged by other law enforcement agencies. In Fiscal Year 2009, the Tucson Sector Border Patrol apprehended more than 241,000 people. From Oct. 1, 2009, to June 30, 2010, Tucson Sector agents apprehended more than 184,000 people attempting to enter the United States illegally. The Border Patrol is committed to working with local, state, federal and tribal law enforcement agencies to reach our shared goal of improving the quality of life in all Arizona communities.
Tuesday, November 1, 2011
CBP Southbound Inspections Capture Fugitive Wanted in Colorado on Murder Charges
El Paso, Texas - U.S. Customs and Border Protection officers and border patrol agents working at the El Paso port of entry took custody of a man wanted by Lakewood, Colo., police on murder charges. The apprehension was made Tuesday morning at the southbound Stanton Street international crossing.
CBP officers and Border Patrol agents were performing an outbound inspection operation when a Mexico-bound commercial bus arrived at the crossing point. CBP personnel boarded the bus and initiated an inspection of bus passenger and their belongings. They encountered a male subject who claimed to be a U.S. citizen but had no formal documentation to support his claim.
CBP officers utilized their Integrated Automated Fingerprint Identification System (IAFIS) to check the identity of the individual. The query revealed that the person they were checking was 28-year-old Edward Gerald Graham of El Paso, Texas. The query also indicated that Graham had outstanding warrants in Lakewood, Colo., for charges of murder and assault with a deadly weapon. CBP officers arrested Graham and turned him over to the El Paso police department. He was booked into the El Paso County Jail where he is currently detained.
“Our outbound examinations routinely identify people who are wanted by law enforcement,” said William Molaski, U.S. Customs and Border Protection El Paso port director. “Our ability to locate and remove wanted fugitives from the streets of our community helps make El Paso and our nation a safer place to live.”
CBP officers and Border Patrol agents were performing an outbound inspection operation when a Mexico-bound commercial bus arrived at the crossing point. CBP personnel boarded the bus and initiated an inspection of bus passenger and their belongings. They encountered a male subject who claimed to be a U.S. citizen but had no formal documentation to support his claim.
CBP officers utilized their Integrated Automated Fingerprint Identification System (IAFIS) to check the identity of the individual. The query revealed that the person they were checking was 28-year-old Edward Gerald Graham of El Paso, Texas. The query also indicated that Graham had outstanding warrants in Lakewood, Colo., for charges of murder and assault with a deadly weapon. CBP officers arrested Graham and turned him over to the El Paso police department. He was booked into the El Paso County Jail where he is currently detained.
“Our outbound examinations routinely identify people who are wanted by law enforcement,” said William Molaski, U.S. Customs and Border Protection El Paso port director. “Our ability to locate and remove wanted fugitives from the streets of our community helps make El Paso and our nation a safer place to live.”
Sunday, October 30, 2011
Member of New Bedford Street Gang Sentenced for Narcotics Offenses
BOSTON—A member of the Montes Park street gang in New Bedford was sentenced today in federal court on drug charges.
United States Attorney Carmen M. Ortiz; James C. Burrell, Acting Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; C. Samuel Sutter, Bristol County District Attorney; Massachusetts State Police Colonel Marian McGovern; New Bedford Police Chief Ronald Teachman; and Bristol County Sheriff Thomas M. Hodgson, announced that AARON VAUGHAN, 34, of New Bedford, was sentenced by U.S. District Court Judge Joseph L. Tauro to 40 months' incarceration, to be followed by six years of supervised release.
On May 3, 2010, VAUGHAN pleaded guilty to a one count indictment charging him with distribution of cocaine base and abetting and abetting. On the date of the plea, the prosecutor informed the court that, had the case proceeded to trial, the evidence would have proven that on March 26, 2008, VAUGHAN and a co-defendant sold 1.6 grams of crack cocaine to a undercover cooperating witness in exchange for money.
The indictments, as well as a detention affidavit filed with the court in connection with the investigation into the Montes Park gang, alleged that VAUGHAN was a member of the New Bedford Montes Park street gang. Throughout the more than nine-month investigation, it is alleged that law enforcement made purchases of crack cocaine or firearms from various Montes Park street gang defendants. It is alleged that the Montes Park street gang has a long history of involvement in a variety of illegal activities, including violence against rival gang members, and drug and firearm trafficking. It is further alleged that the Montes Park street gang has been involved in a gang war in New Bedford with a rival area gang over a period of time resulting in numerous shootings, murders, and other acts of violence.
VAUGHN is the second Montes Park gang member to be sentenced in federal court in the past week. On July 15, RAYMOND GREEN, 40, of New Bedford, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to 78 months' incarceration, to be followed by three years of supervised release. In May, GREEN pleaded guilty to a two-count indictment charging him with conspiracy to distribute cocaine base, distribution of cocaine base, and abetting and abetting.
Both cases were investigated by the Federal Bureau of Investigation and the Southeastern Massachusetts Gang Task Force and were prosecuted by Assistant U.S. Attorney Suzanne Sullivan in Ortiz’s Strike Force Unit.
United States Attorney Carmen M. Ortiz; James C. Burrell, Acting Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; C. Samuel Sutter, Bristol County District Attorney; Massachusetts State Police Colonel Marian McGovern; New Bedford Police Chief Ronald Teachman; and Bristol County Sheriff Thomas M. Hodgson, announced that AARON VAUGHAN, 34, of New Bedford, was sentenced by U.S. District Court Judge Joseph L. Tauro to 40 months' incarceration, to be followed by six years of supervised release.
On May 3, 2010, VAUGHAN pleaded guilty to a one count indictment charging him with distribution of cocaine base and abetting and abetting. On the date of the plea, the prosecutor informed the court that, had the case proceeded to trial, the evidence would have proven that on March 26, 2008, VAUGHAN and a co-defendant sold 1.6 grams of crack cocaine to a undercover cooperating witness in exchange for money.
The indictments, as well as a detention affidavit filed with the court in connection with the investigation into the Montes Park gang, alleged that VAUGHAN was a member of the New Bedford Montes Park street gang. Throughout the more than nine-month investigation, it is alleged that law enforcement made purchases of crack cocaine or firearms from various Montes Park street gang defendants. It is alleged that the Montes Park street gang has a long history of involvement in a variety of illegal activities, including violence against rival gang members, and drug and firearm trafficking. It is further alleged that the Montes Park street gang has been involved in a gang war in New Bedford with a rival area gang over a period of time resulting in numerous shootings, murders, and other acts of violence.
VAUGHN is the second Montes Park gang member to be sentenced in federal court in the past week. On July 15, RAYMOND GREEN, 40, of New Bedford, was sentenced by U.S. District Court Judge George A. O’Toole, Jr., to 78 months' incarceration, to be followed by three years of supervised release. In May, GREEN pleaded guilty to a two-count indictment charging him with conspiracy to distribute cocaine base, distribution of cocaine base, and abetting and abetting.
Both cases were investigated by the Federal Bureau of Investigation and the Southeastern Massachusetts Gang Task Force and were prosecuted by Assistant U.S. Attorney Suzanne Sullivan in Ortiz’s Strike Force Unit.
Friday, October 28, 2011
League City Man Sentenced to Prison for Possessing Child Pornography
Court Orders Defendant Register as Sex Offender and Serve a Life Term of Supervised Release
HOUSTON—Michael Simeon Sadowski, 51, a League City resident, has been sentenced to 97 months in federal prison without parole, was ordered to register as a sex offender, and must serve a life-term of supervised release for possessing child pornography, United States Attorney José Angel Moreno announced today. U.S. District Judge Keith P. Ellison handed down the sentence a hearing today.
Sadowski’s conviction is the result of an investigation conducted by the U.S. Postal Inspectors Service (USPIS), members of the Houston Metro Internet Crimes Against Children (ICAC) Task Force and the League City Police Department which began in August 2009. At that time, Sadowski responded to an e-mail from someone who purported to trade in child pornography requesting that a flyer offering the opportunity to purchase “exotic and special interest” videos via catalog be sent to him in a different format. The “someone” was actually an undercover postal inspector. On Aug. 21, 2009, Sadowski sent an e-mail to the undercover inspector asking that a detailed catalog be sent to him. The catalog, which was sent to him as requested, described videos depicting children engaged in sexually explicit conduct and included an order form, the price for one video ($15) and instructions regarding how to send payment to an undercover mailing address.
Correspondence between the postal inspector and Sadowski continued between Aug. 20, 2009, and Sept. 15, 2009. On Sept. 1, 2009, the postal inspector received via the U.S. Mail at his undercover address a handwritten letter from Sadowski ordering seven videos. Sadowski’s order request included $116.00 in the form of U.S. currency. Sadowski provided his name and home address in League City, Texas, as the address to which the child pornography videos he ordered should be shipped. On Oct. 1, 2009, the seven DVDs were delivered to Sadowski.
On Oct. 8, 2010, USPIS inspectors, FBI agents, Houston Metro ICAC members and the League City Police Department executed a federal search warrant at Sadowski’s residence. Sadowski was alone at his residence at the time and admitted to ordering and paying for the seven DVDs containing child pornography that were delivered to him. The DVDs were found in a wicker chest in the living room; the shipping packaging was also found. Sadowski also told officers they would find child pornography images and videos on his desktop computer and that the links would be on his desktop.
Investigating officers seized one desktop computer, more than 500 CDs, DVDs, and video tapes, as well as three video cameras, one digital camera, one pair of binoculars, one Bushnell Digital Imaging Scope, and approximately 67 8 ½ ” x 11” photographs depicting child pornography and/or child erotica. Several of the photos were from the LS series and BD series which are known to contain child pornography and child erotica.
Sadowski had a video camera on a tri-pod facing out the window on the front of his house which he used to videotape underage girls outside his house and at public events. A forensic analysis of his computer resulted in the discovery of more than 1000 images and hundreds of videos of child pornography, including images with prepubescent minors and the sexual penetration of those minors by adult males.
Sadowski was arrested on Oct. 8, 2009, and has been in federal custody without bond since then. He will remain in custody to serve his sentence. During his life-term of supervised release, Sadowski is required to comply with a number of special conditions designed to protect children and prohibit the use of the Internet including registration as a sex offender. Failure to abide by any of the conditions imposed can result in a revocation of the supervised release term and a prison term.
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, 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.
Assistant U.S. Attorney Robert Stabe prosecuted the case.
HOUSTON—Michael Simeon Sadowski, 51, a League City resident, has been sentenced to 97 months in federal prison without parole, was ordered to register as a sex offender, and must serve a life-term of supervised release for possessing child pornography, United States Attorney José Angel Moreno announced today. U.S. District Judge Keith P. Ellison handed down the sentence a hearing today.
Sadowski’s conviction is the result of an investigation conducted by the U.S. Postal Inspectors Service (USPIS), members of the Houston Metro Internet Crimes Against Children (ICAC) Task Force and the League City Police Department which began in August 2009. At that time, Sadowski responded to an e-mail from someone who purported to trade in child pornography requesting that a flyer offering the opportunity to purchase “exotic and special interest” videos via catalog be sent to him in a different format. The “someone” was actually an undercover postal inspector. On Aug. 21, 2009, Sadowski sent an e-mail to the undercover inspector asking that a detailed catalog be sent to him. The catalog, which was sent to him as requested, described videos depicting children engaged in sexually explicit conduct and included an order form, the price for one video ($15) and instructions regarding how to send payment to an undercover mailing address.
Correspondence between the postal inspector and Sadowski continued between Aug. 20, 2009, and Sept. 15, 2009. On Sept. 1, 2009, the postal inspector received via the U.S. Mail at his undercover address a handwritten letter from Sadowski ordering seven videos. Sadowski’s order request included $116.00 in the form of U.S. currency. Sadowski provided his name and home address in League City, Texas, as the address to which the child pornography videos he ordered should be shipped. On Oct. 1, 2009, the seven DVDs were delivered to Sadowski.
On Oct. 8, 2010, USPIS inspectors, FBI agents, Houston Metro ICAC members and the League City Police Department executed a federal search warrant at Sadowski’s residence. Sadowski was alone at his residence at the time and admitted to ordering and paying for the seven DVDs containing child pornography that were delivered to him. The DVDs were found in a wicker chest in the living room; the shipping packaging was also found. Sadowski also told officers they would find child pornography images and videos on his desktop computer and that the links would be on his desktop.
Investigating officers seized one desktop computer, more than 500 CDs, DVDs, and video tapes, as well as three video cameras, one digital camera, one pair of binoculars, one Bushnell Digital Imaging Scope, and approximately 67 8 ½ ” x 11” photographs depicting child pornography and/or child erotica. Several of the photos were from the LS series and BD series which are known to contain child pornography and child erotica.
Sadowski had a video camera on a tri-pod facing out the window on the front of his house which he used to videotape underage girls outside his house and at public events. A forensic analysis of his computer resulted in the discovery of more than 1000 images and hundreds of videos of child pornography, including images with prepubescent minors and the sexual penetration of those minors by adult males.
Sadowski was arrested on Oct. 8, 2009, and has been in federal custody without bond since then. He will remain in custody to serve his sentence. During his life-term of supervised release, Sadowski is required to comply with a number of special conditions designed to protect children and prohibit the use of the Internet including registration as a sex offender. Failure to abide by any of the conditions imposed can result in a revocation of the supervised release term and a prison term.
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, 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.
Assistant U.S. Attorney Robert Stabe prosecuted the case.
Wednesday, October 26, 2011
Mexican Citizen Sentenced to 20 Years in Federal Prison for Drug Conspiracy and Money Laundering
Anchorage, Alaska — United States Attorney Karen L. Loeffler announced that on July 16, 2010, Gilberto Gonzalez, a.k.a. “Toro,” a.k.a. Victor Manuel Reyes, a citizen of Mexico who illegally returned to the United States after a prior conviction for drug trafficking, was sentenced in federal court in Anchorage to 20 years of imprisonment for his conviction of conspiracy to distribute cocaine and methamphetamine, and money laundering.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
United States District Court Judge John W. Sedwick imposed the sentence on Gonzalez, 35.
According to information presented to the court by Lead Organized Crime and Drug Enforcement Task Force AUSA Stephan A. Collins, Gonzalez was a manager of a conspiracy that trafficked in cocaine and methamphetamine between Nevada, California, Alaska, and Hawaii. During a four-month period, the conspiracy distributed multiple kilograms of cocaine and methamphetamine in Alaska and transfered drug proceeds through fictitious bank accounts from Alaska to Nevada. Other members of the conspiracy were previously convicted and sentenced included Alfonso Acosta Ruiz, 32, Mirina Millan Guitierrez, 47, Martin Ochoa Valara, 36, Jose Mata-Linares, 24, and Jose Inoa-Ramos, 34. With the exception of Inoa-Ramos, who is a citizen of the Dominican Republic, all of the conspirators are citizens of Mexico. The Court ordered that all fo the defendants were to be deported from the United States after they complete their respective sentences.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the United States Department of Homeland Security Investigations for the investigation leading to the successful prosecution of Gonzalez and his co-conspirators.
Monday, October 24, 2011
Parkville Man Pleads Guilty to Trafficking Over $400,000 in Counterfeit Goods, Money Laundering Conspiracy
KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Parkville, Mo., man pleaded guilty in federal court today to his role in a conspiracy to traffic more than $400,000 worth of counterfeit designer purses, shoes, and other items, and to a money laundering conspiracy.
James L. Dicapo, also known as “Jimmy,” 57, of Parkville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to a federal information that charges him with conspiring to traffic in counterfeit goods and to commit money laundering.
By pleading guilty today, Dicapo admitted that he participated in a conspiracy to traffic in counterfeit goods in the Kansas City, Mo., area from Nov. 1, 2007, to Sept. 9, 2009. Dicapo admitted that he sold more than $400,000 worth of counterfeit goods, including Burberry, Coach, Chanel, Dolce & Gabbana, Dooney & Bourke, Ed Hardy, Gucci, Louis Vuitton, and Prada trademarked merchandise, at prices far below the retail value of the genuine goods.
Dicapo received the counterfeit goods from a supplier in New York, who shipped them via UPS to Dicapo’s residence or to Dee Fashion in Kansas City, Kan. Dicapo used the proceeds from the sale of counterfeit goods to purchase money orders to pay for the COD deliveries of additional counterfeit goods. For example, from Nov. 20, 2007, to Jan. 12, 2009, Dicapo paid approximately $173,032 for counterfeit goods shipped from his New York supplier.
According to today’s plea agreement, Dicapo sold more than $400,000 worth of counterfeit goods during the conspiracy.
Dicapo sold several purses to undercover law enforcement officers. Dicapo sold a counterfeit Prada purse and a counterfeit Coach purse for $85 each. On another occasion, Dicapo sold a counterfeit Coach purse for $75 and a counterfeit Coach wallet for $35. Dicapo also sold a counterfeit Coach purse and a counterfeit Dolce & Gabbana purse for $65 each.
Under the terms of today’s plea agreement, Dicapo must forfeit to the government hundreds of counterfeit goods that were seized from him by FBI agents. On March 31, 2009, Dicapo possessed approximately 576 pieces of counterfeit designer merchandise in his residence and in his van, including 21 18-gallon plastic tubs in his van that contained counterfeit purses, shoes, blue jeans, t-shirts, sunglasses, and wristlets, which were seized by law enforcement. On Sept. 9, 2009, Dicapo possessed approximately 70 pieces of counterfeit designer merchandise in his residence and in his van, including counterfeit purses, sunglasses, baseball hats, and t-shirts, which were seized by law enforcement.
Dicapo also admitted that he participated in a conspiracy to conduct financial transactions that involved the proceeds of his illegal activity, which was intended to promote that activity and designed to conceal the source of the proceeds.
Under federal statutes, Dicapo is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Federal Bureau of Investigation and the Kansas City, Missouri, Police Department.
James L. Dicapo, also known as “Jimmy,” 57, of Parkville, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to a federal information that charges him with conspiring to traffic in counterfeit goods and to commit money laundering.
By pleading guilty today, Dicapo admitted that he participated in a conspiracy to traffic in counterfeit goods in the Kansas City, Mo., area from Nov. 1, 2007, to Sept. 9, 2009. Dicapo admitted that he sold more than $400,000 worth of counterfeit goods, including Burberry, Coach, Chanel, Dolce & Gabbana, Dooney & Bourke, Ed Hardy, Gucci, Louis Vuitton, and Prada trademarked merchandise, at prices far below the retail value of the genuine goods.
Dicapo received the counterfeit goods from a supplier in New York, who shipped them via UPS to Dicapo’s residence or to Dee Fashion in Kansas City, Kan. Dicapo used the proceeds from the sale of counterfeit goods to purchase money orders to pay for the COD deliveries of additional counterfeit goods. For example, from Nov. 20, 2007, to Jan. 12, 2009, Dicapo paid approximately $173,032 for counterfeit goods shipped from his New York supplier.
According to today’s plea agreement, Dicapo sold more than $400,000 worth of counterfeit goods during the conspiracy.
Dicapo sold several purses to undercover law enforcement officers. Dicapo sold a counterfeit Prada purse and a counterfeit Coach purse for $85 each. On another occasion, Dicapo sold a counterfeit Coach purse for $75 and a counterfeit Coach wallet for $35. Dicapo also sold a counterfeit Coach purse and a counterfeit Dolce & Gabbana purse for $65 each.
Under the terms of today’s plea agreement, Dicapo must forfeit to the government hundreds of counterfeit goods that were seized from him by FBI agents. On March 31, 2009, Dicapo possessed approximately 576 pieces of counterfeit designer merchandise in his residence and in his van, including 21 18-gallon plastic tubs in his van that contained counterfeit purses, shoes, blue jeans, t-shirts, sunglasses, and wristlets, which were seized by law enforcement. On Sept. 9, 2009, Dicapo possessed approximately 70 pieces of counterfeit designer merchandise in his residence and in his van, including counterfeit purses, sunglasses, baseball hats, and t-shirts, which were seized by law enforcement.
Dicapo also admitted that he participated in a conspiracy to conduct financial transactions that involved the proceeds of his illegal activity, which was intended to promote that activity and designed to conceal the source of the proceeds.
Under federal statutes, Dicapo is subject to a sentence of up to 25 years in federal prison without parole, plus a fine up to $750,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Federal Bureau of Investigation and the Kansas City, Missouri, Police Department.
Saturday, October 22, 2011
Beltsville Leader in Mortgage Fraud Scheme Sentenced to Over Four Years in Prison
Paid Over 15 Straw Purchasers and Used False Documents to Buy 25 Properties; Received Over $3.8 Million in Fraud Proceeds
BALTIMORE, MD—U.S. District Judge J. Frederick Motz sentenced Timothy Reed, age 45, of Beltsville, Maryland, today to 51 months in prison followed by five years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia, and Virginia using false mortgage and settlement documents. Judge Motz also ordered that Reed pay $4,196,967 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service - Washington Division; Montgomery County State’s Attorney John McCarthy and his Economic Crimes Unit; and Special Agent in Charge Jeffrey Irvine of the United States Secret Service - Washington Field Office.
According to Reed’s plea agreement, Reed and others paid over 15 straw purchasers $10,000 per property to purchase houses for Reed and others. Reed created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. Reed and others also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, Reed and others were “repaid” at closing for the purported renovations. Reed was an organizer and leader in this scheme.
From 2006 to 2008, Reed and others received approximately $3,830,418 in fraudulent funds as part of this scheme. Many of the purchased properties have been foreclosed upon.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/Mortgage-Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.United States Attorney Rod J. Rosenstein thanked Assistant United States Attorney Kwame J. Manley, who prosecuted the case.
BALTIMORE, MD—U.S. District Judge J. Frederick Motz sentenced Timothy Reed, age 45, of Beltsville, Maryland, today to 51 months in prison followed by five years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia, and Virginia using false mortgage and settlement documents. Judge Motz also ordered that Reed pay $4,196,967 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; Postal Inspector in Charge Daniel S. Cortez of the U.S. Postal Inspection Service - Washington Division; Montgomery County State’s Attorney John McCarthy and his Economic Crimes Unit; and Special Agent in Charge Jeffrey Irvine of the United States Secret Service - Washington Field Office.
According to Reed’s plea agreement, Reed and others paid over 15 straw purchasers $10,000 per property to purchase houses for Reed and others. Reed created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. Reed and others also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, Reed and others were “repaid” at closing for the purported renovations. Reed was an organizer and leader in this scheme.
From 2006 to 2008, Reed and others received approximately $3,830,418 in fraudulent funds as part of this scheme. Many of the purchased properties have been foreclosed upon.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/Mortgage-Fraud/index.html.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.United States Attorney Rod J. Rosenstein thanked Assistant United States Attorney Kwame J. Manley, who prosecuted the case.
Thursday, October 20, 2011
Former Pharmacy Technician Pleads Guilty to Health Care Fraud
HUNTSVILLE—A Rainbow City woman pleaded guilty today to health care fraud totaling more than $330,000 for illegal prescription reimbursements she received while working as a pharmacy technician at a discount department store in East Gadsden, U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Patrick Maley announced.
CHARLOTTE TURLEY, 52, pleaded guilty before U.S. District Judge C. Lynwood Smith Jr. to four counts of health care fraud and agreed to forfeit at least $331,118 to the government as proceeds of illegal activity. A federal grand jury indicted TURLEY on the fraud charges in April.
“When someone steals money intended to pay legitimate claims, it results in higher overall health insurance costs to everyone,” Vance said. “We intend to be vigilant in detecting and prosecuting this type of crime. Would-be health care criminals are not welcome in Alabama.”
According to TURLEY’s plea agreement, she schemed to defraud Blue Cross and Blue Shield of Alabama between June 2005 and July 2008 while she worked at an East Gadsden K-Mart store. As a pharmacy technician, TURLEY entered insurance claim information for prescription drugs into the store’s computer system. TURLEY acknowledged in her plea agreement that she entered false information to reflect she received prescriptions that were never prescribed, and that she received reimbursements from Blue Cross and Blue Shield for the fake prescriptions.
The defendant faces maximum sentences of 10 years in prison and fines of up to $250,000 on each count. Sentencing is scheduled Nov. 18 at 11 a.m.
The FBI investigated the case. It is being prosecuted by Assistant U.S. Attorneys Lloyd Peeples and Henry Cornelius.
CHARLOTTE TURLEY, 52, pleaded guilty before U.S. District Judge C. Lynwood Smith Jr. to four counts of health care fraud and agreed to forfeit at least $331,118 to the government as proceeds of illegal activity. A federal grand jury indicted TURLEY on the fraud charges in April.
“When someone steals money intended to pay legitimate claims, it results in higher overall health insurance costs to everyone,” Vance said. “We intend to be vigilant in detecting and prosecuting this type of crime. Would-be health care criminals are not welcome in Alabama.”
According to TURLEY’s plea agreement, she schemed to defraud Blue Cross and Blue Shield of Alabama between June 2005 and July 2008 while she worked at an East Gadsden K-Mart store. As a pharmacy technician, TURLEY entered insurance claim information for prescription drugs into the store’s computer system. TURLEY acknowledged in her plea agreement that she entered false information to reflect she received prescriptions that were never prescribed, and that she received reimbursements from Blue Cross and Blue Shield for the fake prescriptions.
The defendant faces maximum sentences of 10 years in prison and fines of up to $250,000 on each count. Sentencing is scheduled Nov. 18 at 11 a.m.
The FBI investigated the case. It is being prosecuted by Assistant U.S. Attorneys Lloyd Peeples and Henry Cornelius.
Tuesday, October 18, 2011
Pine Ridge Man Sentenced on Marijuana Charge
United States Attorney Brendan V. Johnson announced that a Pine Ridge man charged with distribution of marijuana was sentenced on July 16, 2010, by Chief U.S. District Judge Karen E. Schreier. Charles Schrader, age 44, was sentenced to 33 months of imprisonment, three years of supervised release, and a $100 victim assessment. Schrader was indicted by a federal grand jury on November 18, 2009. In April 2009, he distributed marijuana on the Pine Ridge Indian Reservation. Schrader pled guilty to the charge on March 2, 2010. This case was investigated by the Oglala Sioux Tribe, Bureau of Indian Affairs, ATF, and FBI. Assistant U.S. Attorney Mark A. Vargo prosecuted the case. Schrader was immediately turned over to the custody of the U.S. Marshal.
Sunday, October 16, 2011
Eagan Man Pleads Guilty to Possessing Child Pornography
A 35-year-old Eagan man pleaded guilty earlier today in federal court in St. Paul to possessing child pornography. Appearing before United States District Court Judge Richard H. Kyle, Yem Nguyen pled guilty to one count of possession of child pornography. Nguyen was indicted on March 11, 2010.
In his plea agreement, Nguyen admitted that on July 3, 2007, he possessed computer images of minors engaged in sexually explicit conduct. For his crime, Nguyen faces a potential maximum penalty of 10 years in prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Eagan Police Department and the Joint FBI-Secret Service Minnesota CyberCrimes Task Force, which is comprised of the FBI, the United States Secret Service, the U.S. Postal Inspection Service, the St. Paul Police Department, the Minneapolis Police Department, the Ramsey County Sheriff’s Office, the Hennepin County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, Minnesota Alcohol and Gambling Enforcement, and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Erika R. Mozangue.
In his plea agreement, Nguyen admitted that on July 3, 2007, he possessed computer images of minors engaged in sexually explicit conduct. For his crime, Nguyen faces a potential maximum penalty of 10 years in prison. Judge Kyle will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Eagan Police Department and the Joint FBI-Secret Service Minnesota CyberCrimes Task Force, which is comprised of the FBI, the United States Secret Service, the U.S. Postal Inspection Service, the St. Paul Police Department, the Minneapolis Police Department, the Ramsey County Sheriff’s Office, the Hennepin County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, Minnesota Alcohol and Gambling Enforcement, and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Erika R. Mozangue.
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