Friday, November 30, 2012
FORMER MASSAGE PARLOR OPERATOR SENTENCED TO LIFE FOR HUMAN TRAFFICKING
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 26, 2012
Former Chicago Massage Parlor Operator Sentenced to Life in Prison for Human Trafficking of Four Women
Alex Campbell, 45, of Glenview, Ill., a former northwest suburban massage parlor owner was sentenced today to life in federal prison for various crimes including sex-trafficking, forced labor, harboring illegal aliens, confiscating passports to further forced labor and extortion involving four foreign women whom he mentally and physically abused while forcing them to work for him, the Justice Department announced today. The defendant, who operated the Day and Night Spa on Northwest Highway in Mt. Prospect, Ill., used violence and threats of violence to force three women from the Ukraine and one from Belarus to work for him without pay and, at times, little to no subsistence between July 2008 and January 2010.
Campbell, also known as "Dave" and "Daddy" and who called himself "Cowboy," was also ordered to pay approximately $124,000 restitution by U.S. District Judge Robert Gettleman. There is no parole in the federal prison system.
Campbell was convicted at trial in January of this year of three counts each of forced labor, harboring illegal aliens for financial gain and confiscating passports and other immigration documents to force the victims to work and one count each of sex trafficking by force, and extortion. He faced a mandatory minimum sentence of 15 years in prison and a maximum of life on the sex-trafficking count alone, and the judge also imposed maximum prison terms ranging from five to 20 years on each of the remaining counts, to run concurrent with the life sentence.
"Alex Campbell abused women by violently coercing them into labor and commercial sex. By working together with law enforcement and community groups, those women were able to testify about that abuse," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "Today’s sentence is a victory not only for the Department and the Cook County Human Trafficking Task Force, but also for those women who so bravely came forward and told the truth about their exploitation."
"If you treat human beings as property, to be branded, beaten, raped, and sold, the law will punish you to the greatest extent possible," said Gary S. Shapiro, Acting U.S. Attorney for the Northern District of Illinois. "This sentence ensures Alex Campbell’s incapacitation, which will prevent him from victimizing other women."
"The sentence handed down today sends a clear message to those who think they can callously prey upon vulnerable women to turn a profit," said Gary J. Hartwig, Special Agent-in-Charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Chicago. "HSI will continue to work with our law enforcement partners to ensure that those who engage in human trafficking are held accountable for their actions."
Cook County Sheriff Thomas J. Dart, whose sheriff’s police initiated the investigation, said, "I am extremely proud of the effort and resolution of all the agencies involved with the successful investigation, conviction and now sentencing of such a violent individual."
All four victims testified as government witnesses at trial, as well as co-defendant, Danielle John, 25, who pleaded guilty before trial to two counts of harboring illegal aliens for financial gain. She was sentenced previously to three years’ probation. In addition to the trial victims, the government presented evidence that investigators learned of approximately 20 women that Campbell victimized.
The trial showed that Campbell recruited and groomed foreign women without legal status in the United States to become part of his "Family," which he claimed was an international organization that would provide them with support. He offered them jobs in his massage parlor, a place to live, assistance with immigration, and lured each of them to enter into a romantic relationship with him. After gaining their trust, he forced the victims to get tattooed with his moniker, which he said made them his property and allowed him to stop paying them. At the same time, he acquired the women’s passports and visas. The women were forced to work long hours every day and do as Campbell instructed them, and they were beaten and punished if they disobeyed him.
Trial testimony established that Campbell confiscated passports and identity documents from three of the victims, as well as harbored and transported them to ensure their continued labor. Campbell forced one victim to engage in commercial sex acts with customers at various other massage parlors, but not at the Day and Night Spa, which testimony showed he operated "cleanly" to avoid problems with law enforcement. He extorted another victim to pay him more than $25,000 to leave the "Family" by threatening to send a sexually-explicit video recording to her parents in Belarus.
The Cook County State’s Attorney’s Office assisted in the investigation, which was coordinated by the Cook County Human Trafficking Task Force. The task force, together with the Salvation Army Family and Community Services STOP-IT Initiative Against Human Trafficking, operate a toll-free hotline, (877) 606-3158, which victims of trafficking or those with information about human trafficking can call for assistance. The government is represented by Assistant U.S. Attorneys Diane MacArthur and Steven Grimes and Special Litigation Counsel John Richmond of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Monday, November 26, 2012
Former Chicago Massage Parlor Operator Sentenced to Life in Prison for Human Trafficking of Four Women
Alex Campbell, 45, of Glenview, Ill., a former northwest suburban massage parlor owner was sentenced today to life in federal prison for various crimes including sex-trafficking, forced labor, harboring illegal aliens, confiscating passports to further forced labor and extortion involving four foreign women whom he mentally and physically abused while forcing them to work for him, the Justice Department announced today. The defendant, who operated the Day and Night Spa on Northwest Highway in Mt. Prospect, Ill., used violence and threats of violence to force three women from the Ukraine and one from Belarus to work for him without pay and, at times, little to no subsistence between July 2008 and January 2010.
Campbell, also known as "Dave" and "Daddy" and who called himself "Cowboy," was also ordered to pay approximately $124,000 restitution by U.S. District Judge Robert Gettleman. There is no parole in the federal prison system.
Campbell was convicted at trial in January of this year of three counts each of forced labor, harboring illegal aliens for financial gain and confiscating passports and other immigration documents to force the victims to work and one count each of sex trafficking by force, and extortion. He faced a mandatory minimum sentence of 15 years in prison and a maximum of life on the sex-trafficking count alone, and the judge also imposed maximum prison terms ranging from five to 20 years on each of the remaining counts, to run concurrent with the life sentence.
"Alex Campbell abused women by violently coercing them into labor and commercial sex. By working together with law enforcement and community groups, those women were able to testify about that abuse," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "Today’s sentence is a victory not only for the Department and the Cook County Human Trafficking Task Force, but also for those women who so bravely came forward and told the truth about their exploitation."
"If you treat human beings as property, to be branded, beaten, raped, and sold, the law will punish you to the greatest extent possible," said Gary S. Shapiro, Acting U.S. Attorney for the Northern District of Illinois. "This sentence ensures Alex Campbell’s incapacitation, which will prevent him from victimizing other women."
"The sentence handed down today sends a clear message to those who think they can callously prey upon vulnerable women to turn a profit," said Gary J. Hartwig, Special Agent-in-Charge of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations in Chicago. "HSI will continue to work with our law enforcement partners to ensure that those who engage in human trafficking are held accountable for their actions."
Cook County Sheriff Thomas J. Dart, whose sheriff’s police initiated the investigation, said, "I am extremely proud of the effort and resolution of all the agencies involved with the successful investigation, conviction and now sentencing of such a violent individual."
All four victims testified as government witnesses at trial, as well as co-defendant, Danielle John, 25, who pleaded guilty before trial to two counts of harboring illegal aliens for financial gain. She was sentenced previously to three years’ probation. In addition to the trial victims, the government presented evidence that investigators learned of approximately 20 women that Campbell victimized.
The trial showed that Campbell recruited and groomed foreign women without legal status in the United States to become part of his "Family," which he claimed was an international organization that would provide them with support. He offered them jobs in his massage parlor, a place to live, assistance with immigration, and lured each of them to enter into a romantic relationship with him. After gaining their trust, he forced the victims to get tattooed with his moniker, which he said made them his property and allowed him to stop paying them. At the same time, he acquired the women’s passports and visas. The women were forced to work long hours every day and do as Campbell instructed them, and they were beaten and punished if they disobeyed him.
Trial testimony established that Campbell confiscated passports and identity documents from three of the victims, as well as harbored and transported them to ensure their continued labor. Campbell forced one victim to engage in commercial sex acts with customers at various other massage parlors, but not at the Day and Night Spa, which testimony showed he operated "cleanly" to avoid problems with law enforcement. He extorted another victim to pay him more than $25,000 to leave the "Family" by threatening to send a sexually-explicit video recording to her parents in Belarus.
The Cook County State’s Attorney’s Office assisted in the investigation, which was coordinated by the Cook County Human Trafficking Task Force. The task force, together with the Salvation Army Family and Community Services STOP-IT Initiative Against Human Trafficking, operate a toll-free hotline, (877) 606-3158, which victims of trafficking or those with information about human trafficking can call for assistance. The government is represented by Assistant U.S. Attorneys Diane MacArthur and Steven Grimes and Special Litigation Counsel John Richmond of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Thursday, November 29, 2012
FORMER POLICE OFFICER SENTENCED TO 181 MONTHS IN PRISON FOR PROVIDING SECURITY FOR A COCAINE TRANSACTION
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
U.S. DEPARTMENT OF DEFENSE NOTIFIES SOUTH CAROLINA SERVICE MEMBERS OF POSSIBLE IDENITY/INFORMATION THEFT
FROM: U.S. DEPARTMENT OF DEFENSE
DOD Notifies Troops of South Carolina Cyber Intrusions
By Nick Simeone
American Forces Press Service
WASHINGTON, Nov. 28, 2012 - The Defense Department and South Carolina officials are notifying military members and families who paid state income taxes there that they may have been victims of information/identity theft as a result of several recent cyber intrusions.
South Carolina's Department of Revenue reported nearly four million Social Security numbers and several hundred thousand credit and debit card numbers belonging to current and former taxpayers may have been stolen during cyber intrusions in August and September.
While the vast majority of the personal data is believed to have been protected by encryption, state revenue officials said about 16,000 accounts were not, and that anyone who filed a South Carolina income tax return as far back as 1998 could be affected.
The intrusions were discovered last month, officials said. While South Carolina officials believe their system is now secure, Gov. Nikki Haley said the state is offering one year of free credit monitoring and identity protection to anyone who might have been exposed and applies for it. "The number of records breached requires an unprecedented, large-scale response," she said.
In addition to Social Security numbers and credit card information, defense officials said information usually found on the front of checks may also have been exposed.
DOD personnel and their family members who are current or former South Carolina taxpayers, especially those who are living abroad, are urged to visit www.ProtectMyId.com/SCDOR or contact Experian's national consumer assistance center at 1-866-578-5422 by January 31, 2013, to enroll in identity threat protection.
DOD Notifies Troops of South Carolina Cyber Intrusions
By Nick Simeone
American Forces Press Service
WASHINGTON, Nov. 28, 2012 - The Defense Department and South Carolina officials are notifying military members and families who paid state income taxes there that they may have been victims of information/identity theft as a result of several recent cyber intrusions.
South Carolina's Department of Revenue reported nearly four million Social Security numbers and several hundred thousand credit and debit card numbers belonging to current and former taxpayers may have been stolen during cyber intrusions in August and September.
While the vast majority of the personal data is believed to have been protected by encryption, state revenue officials said about 16,000 accounts were not, and that anyone who filed a South Carolina income tax return as far back as 1998 could be affected.
The intrusions were discovered last month, officials said. While South Carolina officials believe their system is now secure, Gov. Nikki Haley said the state is offering one year of free credit monitoring and identity protection to anyone who might have been exposed and applies for it. "The number of records breached requires an unprecedented, large-scale response," she said.
In addition to Social Security numbers and credit card information, defense officials said information usually found on the front of checks may also have been exposed.
DOD personnel and their family members who are current or former South Carolina taxpayers, especially those who are living abroad, are urged to visit www.ProtectMyId.com/SCDOR or contact Experian's national consumer assistance center at 1-866-578-5422 by January 31, 2013, to enroll in identity threat protection.
Wednesday, November 28, 2012
POLICE OFFICE IN WASHINGTON STATE SENTENCED FOR CRIMES RELATED TO IN-CUSTODY DEATH
FROM: U.S. DELPARTMENT OF JUSTICE
Friday, November 16, 2012
Spokane Police Officer Sentenced for Civil Rights and Obstruction Violations in Connection with In-custody Death of Otto Zehm
A federal judge sentenced Spokane, Wash., Police Officer Karl F. Thompson Jr. to 51 months in prison followed by three years supervised release for civil rights and obstruction violations stemming from his March 18, 2006, beating of an unarmed citizen and an extensive cover-up that followed, the Justice Department announced today. Following a Taser deployment and a rapid series of baton blows to the head, neck and body, the victim, the late Otto Zehm, 36, was hogtied, stopped breathing and was transported to the hospital, where he died two days later. The defendant claimed the beating was justified because he felt threatened by a plastic bottle of soda Zehm was holding.
The evidence at trial established that on the evening of March 18, 2006, Zehm went to a convenience store to buy soda and snacks. Security video showed that the defendant ran into the store, drew his baton and rushed toward Zehm from behind, subsequently delivering two baton blows toward Zehm’s head, knocking him backwards onto the floor. The defendant then stood over Zehm and fired Taser probes into him, also continuing to deliver overhand baton blows, including a final flurry of seven baton strikes in eight seconds, which was captured by the convenience store’s security cameras. The defendant never asked Zehm any questions or even mentioned the ATM. Witnesses testified that Zehm’s last words were: "all I wanted was a Snickers."
The defendant went to the convenience store after two teenagers reported that a man fitting Zehm’s description had approached a drive-up ATM on foot as they were conducting a transaction, and they felt uncomfortable. After the teenagers pulled away from the ATM, they were unsure whether they had cancelled their transaction. Prior to the defendant’s first strike, dispatchers made clear that the complainants were not sure whether the man at the ATM had taken any of their money. One of the women at the ATM who called 911 that night testified at trial that she was horrified by the defendant’s rapid series of overhand baton blows to Zehm.
The defendant gave his report of the incident on March 22, 2006, after he knew Zehm had died. In his report, the defendant denied hitting Zehm in the head with his baton because that would have constituted deadly force, which he admitted was not justified in this case. However, trial testimony established that the defendant admitted to Spokane Police Officer Timothy Moses on-scene that night that he had struck Zehm in the head and neck with his baton. Witnesses and medical testimony also confirmed that the defendant had delivered baton blows to Zehm’s head and neck.
"The defendant was given considerable power to enforce the law, but instead he abused his authority when he brutally beat an innocent man," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This prosecution reflects the department’s commitment to prosecuting official misconduct cases, and today’s sentence sends a message that such violent abuse of power will not be tolerated."
"A large majority of law enforcement officers work courageously every day to make our communities safe," said Michael Ormsby, U.S. Attorney for the Eastern District of Washington. "Since those in uniform deserve our respect and support, it is vitally important to prosecute those officers who violate their oaths of office and the public trust placed in them. Our community has learned many lessons from this incident, it is now incumbent upon all of us to apply those lessons to reforms within the Police Department."
"This investigation is emblematic of the FBI's vigorous commitment to the protection of the civil rights that define what it means to be an American," said Assistant Special Agent in Charge Carlos Mojica of the FBI Seattle Division. "While the vast majority of law enforcement officers uphold and obey the law, in those rare instances where serious transgressions occur, the FBI will conduct a comprehensive investigation to preserve and restore the public trust that forms the fabric of our society."
This case was investigated by the FBI’s Spokane Field Office, and was prosecuted by Trial Attorney Victor Boutros of the Justice Department’s Civil Rights Division, and by Assistant U.S. Attorneys Timothy Durkin and Aine Ahmed of the Eastern District of Washington.
Friday, November 16, 2012
Spokane Police Officer Sentenced for Civil Rights and Obstruction Violations in Connection with In-custody Death of Otto Zehm
A federal judge sentenced Spokane, Wash., Police Officer Karl F. Thompson Jr. to 51 months in prison followed by three years supervised release for civil rights and obstruction violations stemming from his March 18, 2006, beating of an unarmed citizen and an extensive cover-up that followed, the Justice Department announced today. Following a Taser deployment and a rapid series of baton blows to the head, neck and body, the victim, the late Otto Zehm, 36, was hogtied, stopped breathing and was transported to the hospital, where he died two days later. The defendant claimed the beating was justified because he felt threatened by a plastic bottle of soda Zehm was holding.
The evidence at trial established that on the evening of March 18, 2006, Zehm went to a convenience store to buy soda and snacks. Security video showed that the defendant ran into the store, drew his baton and rushed toward Zehm from behind, subsequently delivering two baton blows toward Zehm’s head, knocking him backwards onto the floor. The defendant then stood over Zehm and fired Taser probes into him, also continuing to deliver overhand baton blows, including a final flurry of seven baton strikes in eight seconds, which was captured by the convenience store’s security cameras. The defendant never asked Zehm any questions or even mentioned the ATM. Witnesses testified that Zehm’s last words were: "all I wanted was a Snickers."
The defendant went to the convenience store after two teenagers reported that a man fitting Zehm’s description had approached a drive-up ATM on foot as they were conducting a transaction, and they felt uncomfortable. After the teenagers pulled away from the ATM, they were unsure whether they had cancelled their transaction. Prior to the defendant’s first strike, dispatchers made clear that the complainants were not sure whether the man at the ATM had taken any of their money. One of the women at the ATM who called 911 that night testified at trial that she was horrified by the defendant’s rapid series of overhand baton blows to Zehm.
The defendant gave his report of the incident on March 22, 2006, after he knew Zehm had died. In his report, the defendant denied hitting Zehm in the head with his baton because that would have constituted deadly force, which he admitted was not justified in this case. However, trial testimony established that the defendant admitted to Spokane Police Officer Timothy Moses on-scene that night that he had struck Zehm in the head and neck with his baton. Witnesses and medical testimony also confirmed that the defendant had delivered baton blows to Zehm’s head and neck.
"The defendant was given considerable power to enforce the law, but instead he abused his authority when he brutally beat an innocent man," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This prosecution reflects the department’s commitment to prosecuting official misconduct cases, and today’s sentence sends a message that such violent abuse of power will not be tolerated."
"A large majority of law enforcement officers work courageously every day to make our communities safe," said Michael Ormsby, U.S. Attorney for the Eastern District of Washington. "Since those in uniform deserve our respect and support, it is vitally important to prosecute those officers who violate their oaths of office and the public trust placed in them. Our community has learned many lessons from this incident, it is now incumbent upon all of us to apply those lessons to reforms within the Police Department."
"This investigation is emblematic of the FBI's vigorous commitment to the protection of the civil rights that define what it means to be an American," said Assistant Special Agent in Charge Carlos Mojica of the FBI Seattle Division. "While the vast majority of law enforcement officers uphold and obey the law, in those rare instances where serious transgressions occur, the FBI will conduct a comprehensive investigation to preserve and restore the public trust that forms the fabric of our society."
This case was investigated by the FBI’s Spokane Field Office, and was prosecuted by Trial Attorney Victor Boutros of the Justice Department’s Civil Rights Division, and by Assistant U.S. Attorneys Timothy Durkin and Aine Ahmed of the Eastern District of Washington.
Tuesday, November 27, 2012
FLORIDA HOSPITALS AGREE TO PAY $10.1 MILLION TO RESOLVE FALSE CLAIMS ALLEGATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 20, 2012
Group of Owned and Affiliated Florida Hospitals Agree to Pay US $10.1 Million to Resolve False Claims Act Allegations
Morton Plant Mease Health Care Inc. and its affiliated hospitals (Morton Plant) have agreed to pay $10,169,114 to the federal government to resolve allegations that they violated the False Claims Act by submitting false claims for services rendered to Medicare patients, the Justice Department announced today. Morton Plant owns and operates, or is affiliated with, Morton Plant Hospital, St. Joseph’s Hospital, Morton Plant North Bay Hospital, St. Anthony’s Hospital, Mease Countryside Hospital and Mease Dunedin Hospital. These hospitals are part of the BayCare Health System in Florida’s Pinellas, Hillsborough and Pasco counties.
The settlement announced today resolves allegations that, between July 1, 2006 and July 31, 2008, Morton Plant improperly billed for certain interventional cardiac and vascular procedures as inpatient care when those services should have been billed as less costly outpatient care or as observational status.
"Overbilling the government for routine procedures wastes valuable resources that could be used to care for other patients," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. "At a time when we are trying to reduce public spending, it is especially important to ensure that hospitals do not overcharge the government by improperly inflating their billing."
"We hold medical providers to a high standard in our district, and we will not hesitate to hold them to account when we find evidence of serious misconduct," said Robert O’Neill, U.S. Attorney for the Middle District of Florida. "This settlement should send a strong message that health care fraud enforcement is a growing priority in our office."
Today’s settlement resolves a qui tam, or whistleblower, lawsuit filed by Randi Ferrare, a former director of Health Management Services at Morton Plant Hospital. Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and
share in any recovery. Ms. Ferrare will receive over $1.8 million as her share of the government’s recovery.
"When hospitals attempt to boost profits with improper inpatient admissions, they squander scarce dollars from Medicare and Medicaid," said Daniel R. Levinson, Inspector General of the Department of Health & Human Services. "Our corporate integrity agreements hold providers accountable for preventing such abuse of government health care programs."
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion
The United States’ investigation was conducted by the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division of the Department of Justice, the FBI and the Department of Health and Human Services, Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Tuesday, November 20, 2012
Group of Owned and Affiliated Florida Hospitals Agree to Pay US $10.1 Million to Resolve False Claims Act Allegations
Morton Plant Mease Health Care Inc. and its affiliated hospitals (Morton Plant) have agreed to pay $10,169,114 to the federal government to resolve allegations that they violated the False Claims Act by submitting false claims for services rendered to Medicare patients, the Justice Department announced today. Morton Plant owns and operates, or is affiliated with, Morton Plant Hospital, St. Joseph’s Hospital, Morton Plant North Bay Hospital, St. Anthony’s Hospital, Mease Countryside Hospital and Mease Dunedin Hospital. These hospitals are part of the BayCare Health System in Florida’s Pinellas, Hillsborough and Pasco counties.
The settlement announced today resolves allegations that, between July 1, 2006 and July 31, 2008, Morton Plant improperly billed for certain interventional cardiac and vascular procedures as inpatient care when those services should have been billed as less costly outpatient care or as observational status.
"Overbilling the government for routine procedures wastes valuable resources that could be used to care for other patients," said Stuart F. Delery, Principal Deputy Assistant Attorney General for the Justice Department’s Civil Division. "At a time when we are trying to reduce public spending, it is especially important to ensure that hospitals do not overcharge the government by improperly inflating their billing."
"We hold medical providers to a high standard in our district, and we will not hesitate to hold them to account when we find evidence of serious misconduct," said Robert O’Neill, U.S. Attorney for the Middle District of Florida. "This settlement should send a strong message that health care fraud enforcement is a growing priority in our office."
Today’s settlement resolves a qui tam, or whistleblower, lawsuit filed by Randi Ferrare, a former director of Health Management Services at Morton Plant Hospital. Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and
share in any recovery. Ms. Ferrare will receive over $1.8 million as her share of the government’s recovery.
"When hospitals attempt to boost profits with improper inpatient admissions, they squander scarce dollars from Medicare and Medicaid," said Daniel R. Levinson, Inspector General of the Department of Health & Human Services. "Our corporate integrity agreements hold providers accountable for preventing such abuse of government health care programs."
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover $10.1 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $13.8 billion
The United States’ investigation was conducted by the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division of the Department of Justice, the FBI and the Department of Health and Human Services, Office of Inspector General.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Monday, November 26, 2012
TWO PLEAD GUILTY IN MENTAL HEALTH CARE FRAUD SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 20, 2012
Two Plead Guilty in Miami for Roles in $63 Million Mental Health Care Fraud Scheme
Two Health Care Professionals Pleaded Guilty This Week for Roles in Multi-State Scheme
WASHINGTON –A registered nurse pleaded guilty today and a former program coordinator pleaded guilty yesterday in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
John Thoen, 53, of Miami, pleaded guilty today before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. Alexandra Haynes, 36, of Taylor, S.C., pleaded guilty yesterday before Judge Altonaga to one count of conspiracy to commit health care fraud in the same case.
According to court documents, HCSN operated community mental health centers (CMHC) at three locations Miami-Dade County, Fla., and one location in Hendersonville, N.C. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness.
According to an indictment unsealed on May 2, 2012, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided. HCSN obtained those beneficiaries in Miami by paying kickbacks to owners and operators of assisted living facilities.
According to court documents, Thoen was a licensed registered nurse in both Florida and North Carolina. In Florida, Thoen participated in the admission to HCSN of patients who were ineligible for PHP services. Thoen participated in the routine fabrication of patient medical records that were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Medicaid.
In North Carolina, Thoen, according to court documents, routinely submitted fraudulent PHP claims for Medicare patients who were not even present at the CMHC on days PHP services were purportedly rendered. Thoen also caused the submission of fraudulent Medicare claims on days the CMHC was closed due to snow.
Thoen also admitted to his role in a money laundering scheme, involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder health care fraud proceeds. According to court documents, Thoen was president of PCN.
According to court documents, Haynes was employed in Miami as an intake specialist and routinely fabricated patient medical records. In North Carolina, Haynes was employed as a program coordinator and conducted group therapy sessions and fabricated corresponding group therapy notes even though she was not licensed to provide mental health services in the state.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Nine defendants have been charged for their alleged roles in the HCSN health care fraud scheme. Six defendants have pleaded guilty, and three defendants are scheduled for trial on Jan. 14, 2013, before U.S. District Judge Altonaga in Miami. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Tuesday, November 20, 2012
Two Plead Guilty in Miami for Roles in $63 Million Mental Health Care Fraud Scheme
Two Health Care Professionals Pleaded Guilty This Week for Roles in Multi-State Scheme
WASHINGTON –A registered nurse pleaded guilty today and a former program coordinator pleaded guilty yesterday in connection with a health care fraud scheme involving defunct health provider Health Care Solutions Network Inc. (HCSN), announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Acting Special Agent-in-Charge of the FBI’s Miami Field Office; and Special Agent-in-Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
John Thoen, 53, of Miami, pleaded guilty today before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to commit money laundering. Alexandra Haynes, 36, of Taylor, S.C., pleaded guilty yesterday before Judge Altonaga to one count of conspiracy to commit health care fraud in the same case.
According to court documents, HCSN operated community mental health centers (CMHC) at three locations Miami-Dade County, Fla., and one location in Hendersonville, N.C. HCSN purported to provide partial hospitalization program (PHP) services to individuals suffering from mental illness. A PHP is a form of intensive treatment for severe mental illness.
According to an indictment unsealed on May 2, 2012, HCSN obtained Medicare beneficiaries to attend HCSN for purported PHP treatment that was unnecessary and, in many instances, not even provided. HCSN obtained those beneficiaries in Miami by paying kickbacks to owners and operators of assisted living facilities.
According to court documents, Thoen was a licensed registered nurse in both Florida and North Carolina. In Florida, Thoen participated in the admission to HCSN of patients who were ineligible for PHP services. Thoen participated in the routine fabrication of patient medical records that were utilized to support false and fraudulent billing to government sponsored health care benefit programs, including Medicare and Medicaid.
In North Carolina, Thoen, according to court documents, routinely submitted fraudulent PHP claims for Medicare patients who were not even present at the CMHC on days PHP services were purportedly rendered. Thoen also caused the submission of fraudulent Medicare claims on days the CMHC was closed due to snow.
Thoen also admitted to his role in a money laundering scheme, involving Psychiatric Consulting Network Inc. (PCN), a Florida corporation that was utilized by HCSN as a shell corporation to launder health care fraud proceeds. According to court documents, Thoen was president of PCN.
According to court documents, Haynes was employed in Miami as an intake specialist and routinely fabricated patient medical records. In North Carolina, Haynes was employed as a program coordinator and conducted group therapy sessions and fabricated corresponding group therapy notes even though she was not licensed to provide mental health services in the state.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
Nine defendants have been charged for their alleged roles in the HCSN health care fraud scheme. Six defendants have pleaded guilty, and three defendants are scheduled for trial on Jan. 14, 2013, before U.S. District Judge Altonaga in Miami. Defendants are presumed innocent until proven guilty at trial.
The cases are being prosecuted by Special Trial Attorney William Parente and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section. This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Sunday, November 25, 2012
TAX DEFIER GETS 10 YEARS IN PRISON FOR FRAUD AND TAX CONSPIRACY
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 20, 2012
Colorado Tax Defier Sentenced to 10 Years in Prison for Fraud and Tax Conspiracy
Curtis L. Morris, age 43, of Elizabeth, Colo., was sentenced Monday in Denver to 120 months in prison followed by 3 years of supervised release by U.S. District Court Judge Robert E. Blackburn, the Justice Department and Internal Revenue Service (IRS) announced. Judge Blackburn also ordered Morris to pay $ $1,916,831 in restitution to the IRS.
Morris was found guilty on April 30, 2012, after a three week jury trial, of three counts of mail fraud, seventeen counts of filing false claims against the United States, and one count of conspiracy to defraud the United States. According to the testimony at trial, Armstrong, Morris and others conspired to file false federal income tax returns claiming large tax refunds based upon fictitious federal income tax withholdings taken from bogus Forms 1099-OID for themselves and others. Codefendant Richard Kellogg Armstrong, age 77, of Prescott, Ariz., was sentenced on Aug. 10, 2012, to 9 years in prison followed by 3 years of supervised release.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS – Criminal Investigation Denver Field Office, who investigated the case, and Assistant United States Attorney Kenneth Harmon and Tax Division Trial Attorney Kevin F. Sweeney, who prosecuted the case.
Tuesday, November 20, 2012
Colorado Tax Defier Sentenced to 10 Years in Prison for Fraud and Tax Conspiracy
Curtis L. Morris, age 43, of Elizabeth, Colo., was sentenced Monday in Denver to 120 months in prison followed by 3 years of supervised release by U.S. District Court Judge Robert E. Blackburn, the Justice Department and Internal Revenue Service (IRS) announced. Judge Blackburn also ordered Morris to pay $ $1,916,831 in restitution to the IRS.
Morris was found guilty on April 30, 2012, after a three week jury trial, of three counts of mail fraud, seventeen counts of filing false claims against the United States, and one count of conspiracy to defraud the United States. According to the testimony at trial, Armstrong, Morris and others conspired to file false federal income tax returns claiming large tax refunds based upon fictitious federal income tax withholdings taken from bogus Forms 1099-OID for themselves and others. Codefendant Richard Kellogg Armstrong, age 77, of Prescott, Ariz., was sentenced on Aug. 10, 2012, to 9 years in prison followed by 3 years of supervised release.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS – Criminal Investigation Denver Field Office, who investigated the case, and Assistant United States Attorney Kenneth Harmon and Tax Division Trial Attorney Kevin F. Sweeney, who prosecuted the case.
Friday, November 23, 2012
MAN AND COMPANY CHARGED WITH TRYING TO SMUGGLE MILITARY ANTENNAS TO SINGAPORE AND HONG KONG
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 20, 2012
Iranian National and His Company Charged in Plot Involving Export of Military Antennas from the United States
Amin Ravan, a citizen of Iran, and his Iran-based company, IC Market Iran (IMI), have been charged in an indictment unsealed today with conspiracy to defraud the United States, smuggling, and violating the Arms Export Control Act (AECA) in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.
The indictment was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE); Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
According to the indictment, which was returned under seal by a grand jury in the District of Columbia on Nov. 16, 2011, Ravan was based in Iran and, at various times, acted as an agent of IMI in Iran and an agent of Corezing International, Pte, Ltd, a company based in Singapore that also maintained offices in Hong Kong and China.
On Oct. 10, 2012, Ravan was arrested by authorities in Malaysia in connection with a U.S. provisional arrest warrant. The United States is seeking to extradite him from Malaysia to stand trial in the District of Columbia. If convicted of the charges against him, Ravan faces a potential 20 years in prison for the AECA violation, 10 years in prison for the smuggling charge and five years in prison for the conspiracy charge.
According to the indictment, in late 2006 and early 2007, Ravan attempted to procure for shipment to Iran export-controlled antennas made by a company in Massachusetts, through an intermediary in Iran. The antennas sought by Ravan were cavity-backed spiral antennas suitable for airborne or shipboard direction finding systems or radar warning receiver applications, as well as biconical antennas that are suitable for airborne and shipboard environments, including in several military aircraft.
After this first attempt was unsuccessful, Ravan joined with two co-conspirators at Corezing in Singapore so that Corezing would contact the Massachusetts company and obtain the antennas on behalf of Ravan for shipment to Iran. When Corezing was unable to purchase the export-controlled antennas from the Massachusetts firm, Corezing then contacted another individual in the United States who was ultimately able to obtain these items from the Massachusetts firm by slightly altering the frequency range of the antennas to avoid detection by the company’s export compliance officer.
In March 2007, Ravan and the co-conspirators at Corezing agreed on a purchase price of $86,750 for 50 cavity-backed antennas from the United States and discussed structuring payment from Ravan to his Corezing co-conspirators in a manner that would avoid transactional delays caused by the Iran embargo. Ultimately, between July and September 2007, a total of 50 cavity-backed spiral antennas and five biconical antennas were exported from the United States to Corezing in Singapore and Hong Kong.
According to the indictment, no party to these transactions -- including Ravan or IMI -- ever applied for or received a license from the State Department’s Directorate of Defense Trade Controls to export any of these antennas from the United States to Singapore or Hong Kong.
Two of Ravan’s co-conspirators, Lim Kow Seng (aka Eric Lim) and Hia Soo Gan Benson (aka Benson Hia), principals of Corezing, have been charged in a separate indictment in the District of Columbia in connection with this particular transaction involving the export of military antennas to Singapore and Hong Kong. The two Corezing principals were arrested in Singapore last year and the United States is seeking their extradition.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents and analysts in Minneapolis; and Department of Commerce, Office of Export Enforcement agents and analysts in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, and U.S. Department of Justice, Office of International Affairs.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
Tuesday, November 20, 2012
Iranian National and His Company Charged in Plot Involving Export of Military Antennas from the United States
Amin Ravan, a citizen of Iran, and his Iran-based company, IC Market Iran (IMI), have been charged in an indictment unsealed today with conspiracy to defraud the United States, smuggling, and violating the Arms Export Control Act (AECA) in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.
The indictment was announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE); Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
According to the indictment, which was returned under seal by a grand jury in the District of Columbia on Nov. 16, 2011, Ravan was based in Iran and, at various times, acted as an agent of IMI in Iran and an agent of Corezing International, Pte, Ltd, a company based in Singapore that also maintained offices in Hong Kong and China.
On Oct. 10, 2012, Ravan was arrested by authorities in Malaysia in connection with a U.S. provisional arrest warrant. The United States is seeking to extradite him from Malaysia to stand trial in the District of Columbia. If convicted of the charges against him, Ravan faces a potential 20 years in prison for the AECA violation, 10 years in prison for the smuggling charge and five years in prison for the conspiracy charge.
According to the indictment, in late 2006 and early 2007, Ravan attempted to procure for shipment to Iran export-controlled antennas made by a company in Massachusetts, through an intermediary in Iran. The antennas sought by Ravan were cavity-backed spiral antennas suitable for airborne or shipboard direction finding systems or radar warning receiver applications, as well as biconical antennas that are suitable for airborne and shipboard environments, including in several military aircraft.
After this first attempt was unsuccessful, Ravan joined with two co-conspirators at Corezing in Singapore so that Corezing would contact the Massachusetts company and obtain the antennas on behalf of Ravan for shipment to Iran. When Corezing was unable to purchase the export-controlled antennas from the Massachusetts firm, Corezing then contacted another individual in the United States who was ultimately able to obtain these items from the Massachusetts firm by slightly altering the frequency range of the antennas to avoid detection by the company’s export compliance officer.
In March 2007, Ravan and the co-conspirators at Corezing agreed on a purchase price of $86,750 for 50 cavity-backed antennas from the United States and discussed structuring payment from Ravan to his Corezing co-conspirators in a manner that would avoid transactional delays caused by the Iran embargo. Ultimately, between July and September 2007, a total of 50 cavity-backed spiral antennas and five biconical antennas were exported from the United States to Corezing in Singapore and Hong Kong.
According to the indictment, no party to these transactions -- including Ravan or IMI -- ever applied for or received a license from the State Department’s Directorate of Defense Trade Controls to export any of these antennas from the United States to Singapore or Hong Kong.
Two of Ravan’s co-conspirators, Lim Kow Seng (aka Eric Lim) and Hia Soo Gan Benson (aka Benson Hia), principals of Corezing, have been charged in a separate indictment in the District of Columbia in connection with this particular transaction involving the export of military antennas to Singapore and Hong Kong. The two Corezing principals were arrested in Singapore last year and the United States is seeking their extradition.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents and analysts in Minneapolis; and Department of Commerce, Office of Export Enforcement agents and analysts in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, and U.S. Department of Justice, Office of International Affairs.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
Thursday, November 22, 2012
NURSE SENTENCED FOR ROLE IN $13.8 MILLION HEALTH CARE FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
Detroit-Area Nurse Sentenced to 30 Months in Prison for Role in $13.8 Million Home Health Care Fraud Scheme
WASHINGTON—A Detroit-area registered nurse was sentenced today to serve 30 months in prison for his role in a nearly $13.8 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
Anthony Parkman, 41, of Southfield, Mich., was sentenced today by U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan. In addition to his prison term, Parkman was sentenced to three years of supervised release and was ordered to pay $450,988 in restitution, jointly and severally with his co-defendants.
Parkman pleaded guilty on June 26, 2012, to one count of conspiracy to commit health care fraud.
According to Parkman’s plea agreement, beginning in approximately December 2008, Parkman, a registered nurse, was paid to sign medical documentation for Physicians Choice Home Health Care LLC, a home health agency that billed and received payments from Medicare for home health care services that were never rendered. Parkman admitted to not seeing or treating the beneficiaries for whom he signed medical documentation and admitted he knew that the documents he signed would be used to support false claims to Medicare. Parkman was paid approximately $150 for each false and fictitious file that he signed.
Parkman was subsequently paid to sign falsified medical documentation and files for First Care Home Health Care LLC, Quantum Home Care Inc. and Moonlite Home Care Inc., which were Detroit-area home health care companies owned by Parkman’s co-conspirators that billed Medicare for services that were never rendered.
The four home health companies for which Parkman worked were paid in total approximately $13.8 million by Medicare. From approximately December 2008 through September 2011, Medicare paid approximately $450,988 to the four home health care companies for fraudulent skilled nursing claims based on falsified files signed by Parkman.
Nine of Parkman’s co-defendants have pleaded guilty and await sentencing. Three co-defendants are fugitives, and six co-defendants await trial.
This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Monday, November 19, 2012
Detroit-Area Nurse Sentenced to 30 Months in Prison for Role in $13.8 Million Home Health Care Fraud Scheme
WASHINGTON—A Detroit-area registered nurse was sentenced today to serve 30 months in prison for his role in a nearly $13.8 million Medicare fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.
Anthony Parkman, 41, of Southfield, Mich., was sentenced today by U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan. In addition to his prison term, Parkman was sentenced to three years of supervised release and was ordered to pay $450,988 in restitution, jointly and severally with his co-defendants.
Parkman pleaded guilty on June 26, 2012, to one count of conspiracy to commit health care fraud.
According to Parkman’s plea agreement, beginning in approximately December 2008, Parkman, a registered nurse, was paid to sign medical documentation for Physicians Choice Home Health Care LLC, a home health agency that billed and received payments from Medicare for home health care services that were never rendered. Parkman admitted to not seeing or treating the beneficiaries for whom he signed medical documentation and admitted he knew that the documents he signed would be used to support false claims to Medicare. Parkman was paid approximately $150 for each false and fictitious file that he signed.
Parkman was subsequently paid to sign falsified medical documentation and files for First Care Home Health Care LLC, Quantum Home Care Inc. and Moonlite Home Care Inc., which were Detroit-area home health care companies owned by Parkman’s co-conspirators that billed Medicare for services that were never rendered.
The four home health companies for which Parkman worked were paid in total approximately $13.8 million by Medicare. From approximately December 2008 through September 2011, Medicare paid approximately $450,988 to the four home health care companies for fraudulent skilled nursing claims based on falsified files signed by Parkman.
Nine of Parkman’s co-defendants have pleaded guilty and await sentencing. Three co-defendants are fugitives, and six co-defendants await trial.
This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Wednesday, November 21, 2012
MAN GETS 48 MONTHS FOR STOLEN IDENTITY REFUND FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Tuesday, November 20, 2012
MAN GETS PRISON SENTENCED FOR UNDER-REPORTING BUSINESS INCOME
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
San Diego Used Car Wholesaler Sentenced on Tax Evasion
Mohammad Jafar Nikbakht, aka Freydoon Nikbakht, was sentenced Friday to 15 months in prison for evading his individual income taxes, the Justice Department and Internal Revenue Service (IRS) announced. According to the indictment and other documents filed with the court, Nikbakht ran a series of lucrative auto dealerships in the greater San Diego area and significantly under-reported income earned through these businesses. John A. Houston, U.S. District Court Judge for the Southern District of California, who presided over the sentencing hearing, found that Nikbakht caused over $200,000 in tax loss. Judge Houston ordered Nikbakht to make restitution payments to the IRS for $124,454 of this amount.
Nikbakht had pleaded guilty to tax evasion on March 30, 2011. At his plea hearing, he admitted that during 2007 he earned income through auto dealership operations, including through a dealership called Southern California Car Exchange. Nikbakht further admitted that he willfully failed to file his personal tax return and pay his taxes for 2007, and that he engaged in various acts to conceal income from the IRS. For example, Nikbakht admitted that he operated under another dealer’s license and that he instructed the other dealer to write his income payment checks to the order of a third-party or to "cash".
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended special agents of IRS - Criminal Investigation, who prosecuted the case, and Tax Division Trial Attorneys Thomas W. Flynn and Joseph A. Rillotta, who prosecuted the case.
Monday, November 19, 2012
San Diego Used Car Wholesaler Sentenced on Tax Evasion
Mohammad Jafar Nikbakht, aka Freydoon Nikbakht, was sentenced Friday to 15 months in prison for evading his individual income taxes, the Justice Department and Internal Revenue Service (IRS) announced. According to the indictment and other documents filed with the court, Nikbakht ran a series of lucrative auto dealerships in the greater San Diego area and significantly under-reported income earned through these businesses. John A. Houston, U.S. District Court Judge for the Southern District of California, who presided over the sentencing hearing, found that Nikbakht caused over $200,000 in tax loss. Judge Houston ordered Nikbakht to make restitution payments to the IRS for $124,454 of this amount.
Nikbakht had pleaded guilty to tax evasion on March 30, 2011. At his plea hearing, he admitted that during 2007 he earned income through auto dealership operations, including through a dealership called Southern California Car Exchange. Nikbakht further admitted that he willfully failed to file his personal tax return and pay his taxes for 2007, and that he engaged in various acts to conceal income from the IRS. For example, Nikbakht admitted that he operated under another dealer’s license and that he instructed the other dealer to write his income payment checks to the order of a third-party or to "cash".
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended special agents of IRS - Criminal Investigation, who prosecuted the case, and Tax Division Trial Attorneys Thomas W. Flynn and Joseph A. Rillotta, who prosecuted the case.
Monday, November 19, 2012
GAMER CHARGED WITH ALLEGED HACKING INTO GAMING COMPANY SERVERS
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 15, 2012
Gamer Charged with Hacking into and Disabling New Hampshire Gaming Company’s Computer Servers
WASHINGTON – A federal grand jury in the District of New Hampshire returned an indictment late yesterday charging a Dutch national with allegedly conspiring to hack into and disable computer servers belonging to Rampid Interactive, a New Hampshire-based company that publishes and hosts a multi-player online role-playing game called "Outwar," Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire announced today.
Anil Kheda, 24, of the Netherlands, is charged with one count of conspiring to commit computer intrusion and one count of making extortionate interstate threats.
The indictment alleges that from November 2007 to August 2008, Kheda and other members of the conspiracy, all of whom were avid "Outwar" players, accessed Rampid’s computer servers without authorization and rendered "Outwar" unplayable for days at a time. According to the indictment, Kheda and his alleged co-conspirators also used their unauthorized access to Rampid’s servers to alter user accounts – causing the restoration of suspended player accounts and the accrual of unearned game points – and obtain a copy of all or portions of the "Outwar" computer source code, which they used to help create a competitor online game, "Outcraft." The indictment also alleges that Kheda and his alleged co-conspirators sent Rampid interstate communications threatening to continue to hack into Rampid’s computer systems unless Rampid agreed to pay them money or provide them with other benefits.
According to the indictment, as a result of the defendants’ hacking activities, Rampid was unable to operate "Outwar" for a total of approximately two weeks over a nine-month period and incurred over $100,000 in lost revenues, wages, hosting costs, long term loss of business, as well as the loss of exclusive use of their proprietary source code, which it had invested approximately $1.5 million in creating.
According to court documents, Kheda earned approximately $10,000 in profits from operating "Outcraft," which has approximately 10,000 players worldwide.
If convicted, Kheda faces a maximum sentence of five years in prison on the conspiracy charge and two years in prison on the interstate threats charge.
The case was investigated by the FBI and is being prosecuted by Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Thursday, November 15, 2012
Gamer Charged with Hacking into and Disabling New Hampshire Gaming Company’s Computer Servers
WASHINGTON – A federal grand jury in the District of New Hampshire returned an indictment late yesterday charging a Dutch national with allegedly conspiring to hack into and disable computer servers belonging to Rampid Interactive, a New Hampshire-based company that publishes and hosts a multi-player online role-playing game called "Outwar," Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire announced today.
Anil Kheda, 24, of the Netherlands, is charged with one count of conspiring to commit computer intrusion and one count of making extortionate interstate threats.
The indictment alleges that from November 2007 to August 2008, Kheda and other members of the conspiracy, all of whom were avid "Outwar" players, accessed Rampid’s computer servers without authorization and rendered "Outwar" unplayable for days at a time. According to the indictment, Kheda and his alleged co-conspirators also used their unauthorized access to Rampid’s servers to alter user accounts – causing the restoration of suspended player accounts and the accrual of unearned game points – and obtain a copy of all or portions of the "Outwar" computer source code, which they used to help create a competitor online game, "Outcraft." The indictment also alleges that Kheda and his alleged co-conspirators sent Rampid interstate communications threatening to continue to hack into Rampid’s computer systems unless Rampid agreed to pay them money or provide them with other benefits.
According to the indictment, as a result of the defendants’ hacking activities, Rampid was unable to operate "Outwar" for a total of approximately two weeks over a nine-month period and incurred over $100,000 in lost revenues, wages, hosting costs, long term loss of business, as well as the loss of exclusive use of their proprietary source code, which it had invested approximately $1.5 million in creating.
According to court documents, Kheda earned approximately $10,000 in profits from operating "Outcraft," which has approximately 10,000 players worldwide.
If convicted, Kheda faces a maximum sentence of five years in prison on the conspiracy charge and two years in prison on the interstate threats charge.
The case was investigated by the FBI and is being prosecuted by Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sunday, November 18, 2012
MICHIGAN MAN CHARGED WITH SELLING COUNTERFEIT MICROSOFT SOFTWARE
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 8, 2012
Michigan Man Charged with Selling Counterfeit Microsoft Software Worth More Than $1.2 Million
WASHINGTON – A Michigan man was arraigned today in U.S. District Court for the Eastern District of Michigan on charges of mail fraud and selling counterfeit Microsoft software with a retail value of more than $1.2 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan, Barbara L. McQuade and Lev J. Kubiak, Director of the National Intellectual Property Rights Coordination Center (IPR Center).
Bruce Alan Edward, 48, of Atlanta, Mich., was charged in an indictment returned on Oct. 24, 2012, and unsealed on Nov. 1, 2012, by the federal grand jury in Bay City, Mich. The indictment charges Edward with five counts of criminal copyright infringement and one count of mail fraud.
According to the indictment, Edward unlawfully distributed counterfeit copies of Microsoft Office 2003 Professional and Microsoft Windows XP Professional software by purchasing counterfeit copies of the copyrighted works from China and Singapore, selling the copyrighted works on eBay and then using the U.S. Postal Service to deliver the counterfeit software. The indictment further alleges that Edward obtained more than $140,000 between May 2008 and September 2010 by selling more than 2,500 copies of counterfeit Microsoft software that had a retail value of over $1.2 million.
If convicted of all counts in the indictment, Edward faces a maximum of 45 years in prison and $1.5 million in fines. The indictment also contains a forfeiture allegation that requires the defendant, if convicted, to forfeit all criminal proceeds and counterfeit items and any property used to commit the alleged criminal activity.
The case is being prosecuted by Trial Attorney Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Janet Parker of the U.S. Attorney’s Office for the Eastern District of Michigan.
The investigation was conducted by the National Intellectual Property Rights Coordination Center (IPR Center) in Crystal City, Va., and U.S. Immigration and Customs Enforcement Homeland Security Investigations in Sault Ste. Marie, Mich.
The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Thursday, November 8, 2012
Michigan Man Charged with Selling Counterfeit Microsoft Software Worth More Than $1.2 Million
WASHINGTON – A Michigan man was arraigned today in U.S. District Court for the Eastern District of Michigan on charges of mail fraud and selling counterfeit Microsoft software with a retail value of more than $1.2 million, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan, Barbara L. McQuade and Lev J. Kubiak, Director of the National Intellectual Property Rights Coordination Center (IPR Center).
Bruce Alan Edward, 48, of Atlanta, Mich., was charged in an indictment returned on Oct. 24, 2012, and unsealed on Nov. 1, 2012, by the federal grand jury in Bay City, Mich. The indictment charges Edward with five counts of criminal copyright infringement and one count of mail fraud.
According to the indictment, Edward unlawfully distributed counterfeit copies of Microsoft Office 2003 Professional and Microsoft Windows XP Professional software by purchasing counterfeit copies of the copyrighted works from China and Singapore, selling the copyrighted works on eBay and then using the U.S. Postal Service to deliver the counterfeit software. The indictment further alleges that Edward obtained more than $140,000 between May 2008 and September 2010 by selling more than 2,500 copies of counterfeit Microsoft software that had a retail value of over $1.2 million.
If convicted of all counts in the indictment, Edward faces a maximum of 45 years in prison and $1.5 million in fines. The indictment also contains a forfeiture allegation that requires the defendant, if convicted, to forfeit all criminal proceeds and counterfeit items and any property used to commit the alleged criminal activity.
The case is being prosecuted by Trial Attorney Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Janet Parker of the U.S. Attorney’s Office for the Eastern District of Michigan.
The investigation was conducted by the National Intellectual Property Rights Coordination Center (IPR Center) in Crystal City, Va., and U.S. Immigration and Customs Enforcement Homeland Security Investigations in Sault Ste. Marie, Mich.
The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.
Friday, November 16, 2012
SAUDI MAN SENTENCED FOR ATTEMPTED USE OF WEAPON OF MASS DESTRUCTION
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 13, 2012
Saudi Student Sentenced to Life in Prison for Attempted Use of Weapon of Mass Destruction
Khalid Aldawsari Purchased Bomb Materials and Researched U.S. Targets
Khalid Ali-M Aldawsari, 22, a citizen of Saudi Arabia and resident of Lubbock, Texas, was sentenced today by U.S. District Judge Donald E. Walter in federal court in Amarillo, Texas, to life in prison.
Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure. He was lawfully admitted into the United States in 2008 on a student visa and was enrolled at South Plains College near Lubbock.
Today’s announcement was made by Sarah R. Saldaña , U.S. Attorney for the Northern District of Texas; Lisa Monaco, Assistant Attorney General for National Security; and Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division.
According to court documents and evidence presented during trial, at the time of his arrest last year, Aldawsari had been researching online how to construct an IED using several chemicals as ingredients. He had also acquired or taken a substantial step toward acquiring most of the ingredients and equipment necessary to construct an IED and he had conducted online research of several potential U.S. targets. In addition, he had allegedly described his desire for violent jihad and martyrdom in blog postings and a personal journal.
"This case, in which private citizens paid attention to details and notified authorities of their suspicions, serves as a reminder to all private citizens that we must always be observant and vigilant, as there are some who intend to cause great harm," said U.S. Attorney Saldaña. "Khalid Aldawsari, acting as a lone wolf, may well have gone undetected were it not for the keen observations of private citizens. We owe them, and all the hundreds of hard-working members of our law enforcement community, our deepest gratitude."
"Khalid Aldawsari came to this country intent on carrying out an attack. He then began purchasing ingredients to construct a bomb and was actively researching potential targets in America. Thanks to the hard work of many agents, analysts and prosecutors, his plot was thwarted before anyone was harmed; he was convicted at trial and, today at sentencing, he was held accountable for his actions," said Assistant Attorney General Monaco.
"Today’s sentencing demonstrates our commitment to detecting, investigating and prosecuting individuals who seek to do harm to others in our country. Our success was the result of the cooperation of law enforcement and intelligence resources, particularly, the FBI’s North Texas Joint Terrorism Task Force, the Texas Tech Police Department, the Lubbock Police Department and the Lubbock County Sheriff’s Office," said FBI Special Agent in Charge Rodriguez. "The dedicated agents, officers, and analysts; the computer forensics team; and the linguists are all to be commended for their diligent work on this investigation and the U.S. Attorney’s Office in the Northern District for the successful prosecution of Mr. Aldawsari."
The government presented evidence that on Feb. 1, 2011, a chemical supplier reported to the FBI a suspicious attempted purchase of concentrated phenol by a man identifying himself as Khalid Aldawsari. Phenol is a toxic chemical with legitimate uses, but can also be used to make the explosive trinitrophenol, also known as T.N.P., or picric acid. Ingredients typically used with phenol to make picric acid, or T.N.P., are concentrated sulfuric and nitric acids.
Aldawsari attempted to have the phenol order shipped to a freight company so it could be held for him there, but the freight company told Aldawsari that the order had been returned to the supplier and called the police. Later, Aldawsari falsely told the supplier he was associated with a university and wanted the phenol for "off-campus, personal research." Frustrated by questions being asked over his phenol order, Aldawsari cancelled his order, placed an order with another company, and later emailed himself instructions for producing phenol. In December 2010, he had successfully purchased concentrated nitric and sulfuric acids.
Aldawsari used various email accounts in researching explosives and targets, and often sent emails to himself as part of this process. He emailed himself a recipe for picric acid, which was described in the email as a "military explosive" and also emailed himself instructions on how to convert a cell phone into a remote detonator and how to prepare a booby-trapped vehicle using household items. Aldawsari also purchased many other items, including a Hazmat suit, a soldering iron kit, glass beakers and flasks, a stun gun, clocks and a battery tester.
Excerpts from a journal found at Aldawsari’s residence indicated that he had been planning to commit a terrorist attack in the United States for years. One entry describes how Aldawsari sought and obtained a particular scholarship because it allowed him to come directly to the United States and helped him financially, which he said "will help tremendously in providing me with the support I need for Jihad." The entry continues: "And now, after mastering the English language, learning how to build explosives and continuous planning to target the infidel Americans, it is time for Jihad."
In another entry, Aldawsari wrote that he was near to reaching his goal and near to getting weapons to use against infidels and their helpers. He also listed a "synopsis of important steps" that included obtaining a forged U.S. birth certificate; renting a car; using different driver’s licenses for each car rented; putting bombs in cars and taking them to different places during rush hour; and leaving the city for a safe place.
Aldawsari conducted research on various targets and emailed himself information on these locations and people. One of the documents he sent himself, with the subject line listed as "Targets," contained the names and home addresses of three American citizens who had previously served in the U.S. military and had been stationed for a time at Abu Ghraib prison in Iraq. In others, Aldawsari sent himself the names of 12 reservoir dams in Colorado and California and listed two categories of targets: hydroelectric dams and nuclear power plants. He also sent himself an email titled "Tyrant’s House," in which he listed the Dallas address for former President George W. Bush. Aldawsari also conducted research that indicated he considered using infant dolls to conceal explosives and the possible targeting of a nightclub with an explosive concealed in a backpack.
Tuesday, November 13, 2012
Saudi Student Sentenced to Life in Prison for Attempted Use of Weapon of Mass Destruction
Khalid Aldawsari Purchased Bomb Materials and Researched U.S. Targets
Khalid Ali-M Aldawsari, 22, a citizen of Saudi Arabia and resident of Lubbock, Texas, was sentenced today by U.S. District Judge Donald E. Walter in federal court in Amarillo, Texas, to life in prison.
Aldawsari was convicted on June 27, 2012, on an indictment charging one count of attempted use of a weapon of mass destruction in connection with his purchase of chemicals and equipment necessary to make an improvised explosive device (IED) and his research of potential U.S. targets, including persons and infrastructure. He was lawfully admitted into the United States in 2008 on a student visa and was enrolled at South Plains College near Lubbock.
Today’s announcement was made by Sarah R. Saldaña , U.S. Attorney for the Northern District of Texas; Lisa Monaco, Assistant Attorney General for National Security; and Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division.
According to court documents and evidence presented during trial, at the time of his arrest last year, Aldawsari had been researching online how to construct an IED using several chemicals as ingredients. He had also acquired or taken a substantial step toward acquiring most of the ingredients and equipment necessary to construct an IED and he had conducted online research of several potential U.S. targets. In addition, he had allegedly described his desire for violent jihad and martyrdom in blog postings and a personal journal.
"This case, in which private citizens paid attention to details and notified authorities of their suspicions, serves as a reminder to all private citizens that we must always be observant and vigilant, as there are some who intend to cause great harm," said U.S. Attorney Saldaña. "Khalid Aldawsari, acting as a lone wolf, may well have gone undetected were it not for the keen observations of private citizens. We owe them, and all the hundreds of hard-working members of our law enforcement community, our deepest gratitude."
"Khalid Aldawsari came to this country intent on carrying out an attack. He then began purchasing ingredients to construct a bomb and was actively researching potential targets in America. Thanks to the hard work of many agents, analysts and prosecutors, his plot was thwarted before anyone was harmed; he was convicted at trial and, today at sentencing, he was held accountable for his actions," said Assistant Attorney General Monaco.
"Today’s sentencing demonstrates our commitment to detecting, investigating and prosecuting individuals who seek to do harm to others in our country. Our success was the result of the cooperation of law enforcement and intelligence resources, particularly, the FBI’s North Texas Joint Terrorism Task Force, the Texas Tech Police Department, the Lubbock Police Department and the Lubbock County Sheriff’s Office," said FBI Special Agent in Charge Rodriguez. "The dedicated agents, officers, and analysts; the computer forensics team; and the linguists are all to be commended for their diligent work on this investigation and the U.S. Attorney’s Office in the Northern District for the successful prosecution of Mr. Aldawsari."
The government presented evidence that on Feb. 1, 2011, a chemical supplier reported to the FBI a suspicious attempted purchase of concentrated phenol by a man identifying himself as Khalid Aldawsari. Phenol is a toxic chemical with legitimate uses, but can also be used to make the explosive trinitrophenol, also known as T.N.P., or picric acid. Ingredients typically used with phenol to make picric acid, or T.N.P., are concentrated sulfuric and nitric acids.
Aldawsari attempted to have the phenol order shipped to a freight company so it could be held for him there, but the freight company told Aldawsari that the order had been returned to the supplier and called the police. Later, Aldawsari falsely told the supplier he was associated with a university and wanted the phenol for "off-campus, personal research." Frustrated by questions being asked over his phenol order, Aldawsari cancelled his order, placed an order with another company, and later emailed himself instructions for producing phenol. In December 2010, he had successfully purchased concentrated nitric and sulfuric acids.
Aldawsari used various email accounts in researching explosives and targets, and often sent emails to himself as part of this process. He emailed himself a recipe for picric acid, which was described in the email as a "military explosive" and also emailed himself instructions on how to convert a cell phone into a remote detonator and how to prepare a booby-trapped vehicle using household items. Aldawsari also purchased many other items, including a Hazmat suit, a soldering iron kit, glass beakers and flasks, a stun gun, clocks and a battery tester.
Excerpts from a journal found at Aldawsari’s residence indicated that he had been planning to commit a terrorist attack in the United States for years. One entry describes how Aldawsari sought and obtained a particular scholarship because it allowed him to come directly to the United States and helped him financially, which he said "will help tremendously in providing me with the support I need for Jihad." The entry continues: "And now, after mastering the English language, learning how to build explosives and continuous planning to target the infidel Americans, it is time for Jihad."
In another entry, Aldawsari wrote that he was near to reaching his goal and near to getting weapons to use against infidels and their helpers. He also listed a "synopsis of important steps" that included obtaining a forged U.S. birth certificate; renting a car; using different driver’s licenses for each car rented; putting bombs in cars and taking them to different places during rush hour; and leaving the city for a safe place.
Aldawsari conducted research on various targets and emailed himself information on these locations and people. One of the documents he sent himself, with the subject line listed as "Targets," contained the names and home addresses of three American citizens who had previously served in the U.S. military and had been stationed for a time at Abu Ghraib prison in Iraq. In others, Aldawsari sent himself the names of 12 reservoir dams in Colorado and California and listed two categories of targets: hydroelectric dams and nuclear power plants. He also sent himself an email titled "Tyrant’s House," in which he listed the Dallas address for former President George W. Bush. Aldawsari also conducted research that indicated he considered using infant dolls to conceal explosives and the possible targeting of a nightclub with an explosive concealed in a backpack.
Thursday, November 15, 2012
FIVE FISHING BOAT CAPTAINS INDICTED FOR LACEY ACT VIOLATIONS REGARDING HARVESTING OF STRIPED BASS
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 8, 2012
Virginia Charter Fishing Boat Captains Indicted for Lacey Act Violations and Other Crimes
WASHINGTON – Five charter fishing boat captains operating out of Rudee Inlet in Virginia Beach, Va. – Jeffery S. Adams, Raymond Carroll Webb, David Dwayne Scott, William W. "Duby" Lowery, IV and Nolan L. Agner – were indicted today for violating the Lacey Act by selling illegally harvested Striped Bass, the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Eastern District of Virginia announced. The captains also face charges of making false statements to law enforcement officers and destroying property to prevent its seizure by law enforcement.
In 1984, Congress passed the Atlantic Striped Bass Conservation Act, recognizing that "Atlantic striped bass are of historic commercial and recreational importance and economic benefit to Atlantic coastal States and to the Nation," and that it "is in the national interest to implement effective procedures and measures to provide for effective inter-jurisdictional conservation and management of this species." Since 1990, the Secretary of Commerce has imposed a moratorium on fishing for Striped Bass within the Exclusive Economic Zone (EEZ), the zone where the U.S. and other coastal nations have jurisdiction over economic and resource management. The moratorium makes it unlawful to fish for or harvest Striped Bass in the EEZ. The moratorium also makes it unlawful to retain any Striped Bass that were taken in or from the EEZ.
The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the sale, offer to sell or intent to sell fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of the United States. Under the Lacey Act, it is a "sale" of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Each of the five charter fishing boat captains face charges that they sold charter fishing trips and harvested Striped Bass from the EEZ.
Jeffrey Adams, captain of the F/V Providence II, and his corporation Adams Fishing Adventures, are charged with conspiracy, trafficking in illegally harvested Striped Bass in violation of the Lacey Act and making false statements to law enforcement officers. The indictment alleges that, between March 4, 2009, and Feb. 9, 2011, the defendants sold charter fishing trips to harvest Striped Bass illegally from the EEZ. The indictment also alleges that, as part of the conspiracy, Adams and others would puncture the air bladder of Striped Bass and, if contacted by law enforcement, would throw illegally-harvested Striped Bass into the sea in hopes of avoiding detection. Adams is also charged with making a false statement to law enforcement officers regarding the location where his charter fishing clients harvested Striped Bass.
Raymond Carroll Webb, captain of the F/V Spider Webb, and his corporation Peake Enterprisees, Ltd., were charged with trafficking in illegally harvested Striped Bass and Destruction of Evidence for actions taken during a Striped Bass charter fishing trip on Feb. 12, 2011.
David Dwayne Scott, captain of the Stoney’s Kingfisher, was charged with trafficking in illegally harvested Striped Bass and destruction of evidence for actions taken during a Striped Bass charter fishing trip on Feb. 7, 2009.
William W. "Duby" Lowery, captain of the Anna Lynn, was charged with trafficking in illegally harvested Striped Bass and destruction of evidence for actions taken during a Striped Bass charter fishing trip on Jan. 15, 2010.
Nolan L. Agner, captain of the Flat Line, and his corporation, Agner, Inc., were charged with trafficking in illegally harvested Striped Bass for actions taken during a Striped Bass charter fishing trip on Jan. 16, 2011.
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of the fishing vessels used during the commission of the crimes. If convicted, the corporate defendants face a maximum penalty of a $500,000 fine per count, as well as forfeiture of the fishing vessels used during the commission of the crimes.
The case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. The case is being prosecuted by Department of Justice’s Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Thursday, November 8, 2012
Virginia Charter Fishing Boat Captains Indicted for Lacey Act Violations and Other Crimes
WASHINGTON – Five charter fishing boat captains operating out of Rudee Inlet in Virginia Beach, Va. – Jeffery S. Adams, Raymond Carroll Webb, David Dwayne Scott, William W. "Duby" Lowery, IV and Nolan L. Agner – were indicted today for violating the Lacey Act by selling illegally harvested Striped Bass, the Department of Justice Environment and Natural Resources Division and the U.S. Attorney for the Eastern District of Virginia announced. The captains also face charges of making false statements to law enforcement officers and destroying property to prevent its seizure by law enforcement.
In 1984, Congress passed the Atlantic Striped Bass Conservation Act, recognizing that "Atlantic striped bass are of historic commercial and recreational importance and economic benefit to Atlantic coastal States and to the Nation," and that it "is in the national interest to implement effective procedures and measures to provide for effective inter-jurisdictional conservation and management of this species." Since 1990, the Secretary of Commerce has imposed a moratorium on fishing for Striped Bass within the Exclusive Economic Zone (EEZ), the zone where the U.S. and other coastal nations have jurisdiction over economic and resource management. The moratorium makes it unlawful to fish for or harvest Striped Bass in the EEZ. The moratorium also makes it unlawful to retain any Striped Bass that were taken in or from the EEZ.
The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase any fish and wildlife taken, possessed, transported or sold in violation of any law or regulation of the United States, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the sale, offer to sell or intent to sell fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of the United States. Under the Lacey Act, it is a "sale" of fish or wildlife for any person, for money or other consideration, to offer or provide guiding, outfitting, or other services.
Each of the five charter fishing boat captains face charges that they sold charter fishing trips and harvested Striped Bass from the EEZ.
Jeffrey Adams, captain of the F/V Providence II, and his corporation Adams Fishing Adventures, are charged with conspiracy, trafficking in illegally harvested Striped Bass in violation of the Lacey Act and making false statements to law enforcement officers. The indictment alleges that, between March 4, 2009, and Feb. 9, 2011, the defendants sold charter fishing trips to harvest Striped Bass illegally from the EEZ. The indictment also alleges that, as part of the conspiracy, Adams and others would puncture the air bladder of Striped Bass and, if contacted by law enforcement, would throw illegally-harvested Striped Bass into the sea in hopes of avoiding detection. Adams is also charged with making a false statement to law enforcement officers regarding the location where his charter fishing clients harvested Striped Bass.
Raymond Carroll Webb, captain of the F/V Spider Webb, and his corporation Peake Enterprisees, Ltd., were charged with trafficking in illegally harvested Striped Bass and Destruction of Evidence for actions taken during a Striped Bass charter fishing trip on Feb. 12, 2011.
David Dwayne Scott, captain of the Stoney’s Kingfisher, was charged with trafficking in illegally harvested Striped Bass and destruction of evidence for actions taken during a Striped Bass charter fishing trip on Feb. 7, 2009.
William W. "Duby" Lowery, captain of the Anna Lynn, was charged with trafficking in illegally harvested Striped Bass and destruction of evidence for actions taken during a Striped Bass charter fishing trip on Jan. 15, 2010.
Nolan L. Agner, captain of the Flat Line, and his corporation, Agner, Inc., were charged with trafficking in illegally harvested Striped Bass for actions taken during a Striped Bass charter fishing trip on Jan. 16, 2011.
If convicted, the individual defendants face a maximum penalty of five years in prison, and a $250,000 fine per count, as well as forfeiture of the fishing vessels used during the commission of the crimes. If convicted, the corporate defendants face a maximum penalty of a $500,000 fine per count, as well as forfeiture of the fishing vessels used during the commission of the crimes.
The case was investigated by the National Oceanic and Atmospheric Administration, Fisheries, Office for Law Enforcement, and the Virginia Marine Police with assistance from the Federal Communications Commission Enforcement Bureau, Norfolk Office. The case is being prosecuted by Department of Justice’s Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Virginia.
An indictment is a formal accusation and is not proof of guilt. Defendants are presumed innocent until and unless they are found guilty.
Wednesday, November 14, 2012
TEXAS INMATE PLEADS GUILTY TO ASSALUTING INMATE THAT HE BELIEVED WAS GAY
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, November 8, 2012
Texas Inmate Pleads Guilty to Federal Hate Crime for Assaulting Fellow Inmate
John Hall, 27, an inmate at the Federal Correctional Institution in Seagoville, Texas, pleaded guilty today in federal court to violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, who he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011.
According to information presented during the plea hearing, Hall targeted the victim, a fellow inmate, because of the victim’s perceived sexual orientation. Hall admitted that he assaulted the victim because of his perceived sexual orientation by repeatedly punching and kicking the victim while calling the victim gay slurs. The victim sustained multiple lacerations to his face, and chipped and fractured teeth as a result of Hall’s unprovoked attack. The assault occurred inside the Federal Correctional Institution, which is within the special maritime or territorial jurisdiction of the United States.
"The Justice Department continues to investigate and prosecute acts of violence targeting individuals because of their sexual orientation; this case is just another example of the department’s commitment to the pursuit of justice on behalf of all people regardless of their sexual preference or orientation." said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department will continue to vigorously enforce the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, and all the laws under our jurisdiction, to protect the rights of all individuals."
Hall faces a maximum sentence of 10 years in prison for this crime.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Thursday, November 8, 2012
Texas Inmate Pleads Guilty to Federal Hate Crime for Assaulting Fellow Inmate
John Hall, 27, an inmate at the Federal Correctional Institution in Seagoville, Texas, pleaded guilty today in federal court to violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act stemming from his assault of a fellow inmate, who he believed to be gay, the Department of Justice announced. Hall assaulted his fellow inmate with a dangerous weapon, causing bodily injury to the victim on Dec. 20, 2011.
According to information presented during the plea hearing, Hall targeted the victim, a fellow inmate, because of the victim’s perceived sexual orientation. Hall admitted that he assaulted the victim because of his perceived sexual orientation by repeatedly punching and kicking the victim while calling the victim gay slurs. The victim sustained multiple lacerations to his face, and chipped and fractured teeth as a result of Hall’s unprovoked attack. The assault occurred inside the Federal Correctional Institution, which is within the special maritime or territorial jurisdiction of the United States.
"The Justice Department continues to investigate and prosecute acts of violence targeting individuals because of their sexual orientation; this case is just another example of the department’s commitment to the pursuit of justice on behalf of all people regardless of their sexual preference or orientation." said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department will continue to vigorously enforce the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, and all the laws under our jurisdiction, to protect the rights of all individuals."
Hall faces a maximum sentence of 10 years in prison for this crime.
This case was investigated by the FBI Dallas Division. The case was prosecuted by Assistant U.S. Attorney Errin Martin and Trial Attorney Adriana Vieco of the Civil Rights Division.
Tuesday, November 13, 2012
34 ALLEGED ARYAN BROTHERHOOD OF TEXAS GANG MEMBERS INDICTED
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 9, 2012
34 Alleged Aryan Brotherhood of Texas Gang Members Indicted on Federal Racketeering Charges
Four Alleged Top Officials and 13 Other Alleged ABT Leaders Charged
Thirty-four alleged members of the Aryan Brotherhood of Texas gang (ABT), including four of its most senior leaders, have been indicted by a federal grand jury in Houston for allegedly conspiring to participate in a racketeering enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Melvin D. King of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Division and FBI Special Agent in Charge Stephen L. Morris of the Houston Field Office.
The 17 count superseding indictment was returned by a federal grand jury on Oct. 22, 2012, and unsealed today in U.S. District Court in the Southern District of Texas. Fourteen individuals were taken into custody today, and 15 defendants charged in the superseding indictment are already in custody. Five defendants remain at large.
"Today’s takedown represents a devastating blow to the leadership of ABT," said Assistant Attorney General Breuer. "Four ABT generals, 13 additional alleged ABT leaders, and numerous other gang members and associates are named in the indictment. As charged, ABT uses extreme violence and threats of violence to maintain internal discipline and retaliate against those believed to be cooperating with law enforcement. Through violence and intimidation, ABT allegedly exerts control over prison populations and neighborhoods, and instills fear in those who come in contact with its members. As today’s operations show, the Criminal Division, working closely with its federal, state, and local law enforcement partners, is determined to continue disrupting and dismantling ABT and other violent, criminal gangs."
"This indictment is the culmination of a joint federal, state and local law enforcement effort targeting a large-scale prison gang involved in violent organized crime," said U.S. Attorney Magidson. "Only when we work in partnership utilizing all our resources can we attack a criminal organization and dismantle it entirely."
"ATF is serious about fighting violent crime. We remain steadfast in our commitment to focus on those violent criminals who illegally use firearms to prey on their victims," said ATF Special Agent in Charge King. "Through a collective effort with our law enforcement partners this operation was a success today."
"This multi-year investigation and indictment clearly targets the worst-of-the-worst among the ABT," said FBI Special Agent in Charge Morris. "This effort not only exemplifies the level of effort the FBI and our law enforcement partners will expend to prevent prison gang racism and criminal activity from poisoning our communities. It sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these criminal enterprises regardless of where they lay their heads."
As charged, the defendants range from senior leaders to soldiers of the ABT, a "whites only," prison-based gang with members operating inside and outside of state and federal prisons throughout Texas and elsewhere in the United States since at least the early 1980s.
According to court documents, the ABT has a detailed and uniform organizational structure, with territory divided into five regions, each run by a "general." The superseding indictment charges four generals, Terry Ross Blake, 55, aka "Big Terry"; Larry Max Bryan, 51, aka "Slick"; William David Maynard, 42, aka "Baby Huey"; and Charles Lee Roberts, 68, aka "Jive," with conspiracy to participate in the racketeering activities of the ABT, among other charges.
In total, the superseding indictment charges 34 alleged members of the ABT with conspiracy to participate in the racketeering activities of the ABT. Alleged members of the ABT are also charged with involvement in three murders, multiple attempted murders, kidnappings, assaults and conspiracy to distribute methamphetamine and cocaine.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT is alleged to have has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."
According to the superseding indictment, in order to be considered for membership, a person must be sponsored by another ABT member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Ten defendants have been charged with offenses that are eligible for the death penalty. The remaining 24 defendants face a maximum penalty of life in prison.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by a multi-agency task force consisting of the ATF; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; the Montgomery County, Texas, Sheriff’s Department; Houston Police Department-Gang Division; Texas Department of Criminal Justice– Office ofInspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; San Antonio Police Department; Baytown, Texas, Police Department; Carrollton, Texas, Police Department; Alvin, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; Harris County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.
Friday, November 9, 2012
34 Alleged Aryan Brotherhood of Texas Gang Members Indicted on Federal Racketeering Charges
Four Alleged Top Officials and 13 Other Alleged ABT Leaders Charged
Thirty-four alleged members of the Aryan Brotherhood of Texas gang (ABT), including four of its most senior leaders, have been indicted by a federal grand jury in Houston for allegedly conspiring to participate in a racketeering enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Melvin D. King of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Division and FBI Special Agent in Charge Stephen L. Morris of the Houston Field Office.
The 17 count superseding indictment was returned by a federal grand jury on Oct. 22, 2012, and unsealed today in U.S. District Court in the Southern District of Texas. Fourteen individuals were taken into custody today, and 15 defendants charged in the superseding indictment are already in custody. Five defendants remain at large.
"Today’s takedown represents a devastating blow to the leadership of ABT," said Assistant Attorney General Breuer. "Four ABT generals, 13 additional alleged ABT leaders, and numerous other gang members and associates are named in the indictment. As charged, ABT uses extreme violence and threats of violence to maintain internal discipline and retaliate against those believed to be cooperating with law enforcement. Through violence and intimidation, ABT allegedly exerts control over prison populations and neighborhoods, and instills fear in those who come in contact with its members. As today’s operations show, the Criminal Division, working closely with its federal, state, and local law enforcement partners, is determined to continue disrupting and dismantling ABT and other violent, criminal gangs."
"This indictment is the culmination of a joint federal, state and local law enforcement effort targeting a large-scale prison gang involved in violent organized crime," said U.S. Attorney Magidson. "Only when we work in partnership utilizing all our resources can we attack a criminal organization and dismantle it entirely."
"ATF is serious about fighting violent crime. We remain steadfast in our commitment to focus on those violent criminals who illegally use firearms to prey on their victims," said ATF Special Agent in Charge King. "Through a collective effort with our law enforcement partners this operation was a success today."
"This multi-year investigation and indictment clearly targets the worst-of-the-worst among the ABT," said FBI Special Agent in Charge Morris. "This effort not only exemplifies the level of effort the FBI and our law enforcement partners will expend to prevent prison gang racism and criminal activity from poisoning our communities. It sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these criminal enterprises regardless of where they lay their heads."
As charged, the defendants range from senior leaders to soldiers of the ABT, a "whites only," prison-based gang with members operating inside and outside of state and federal prisons throughout Texas and elsewhere in the United States since at least the early 1980s.
According to court documents, the ABT has a detailed and uniform organizational structure, with territory divided into five regions, each run by a "general." The superseding indictment charges four generals, Terry Ross Blake, 55, aka "Big Terry"; Larry Max Bryan, 51, aka "Slick"; William David Maynard, 42, aka "Baby Huey"; and Charles Lee Roberts, 68, aka "Jive," with conspiracy to participate in the racketeering activities of the ABT, among other charges.
In total, the superseding indictment charges 34 alleged members of the ABT with conspiracy to participate in the racketeering activities of the ABT. Alleged members of the ABT are also charged with involvement in three murders, multiple attempted murders, kidnappings, assaults and conspiracy to distribute methamphetamine and cocaine.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT is alleged to have has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."
According to the superseding indictment, in order to be considered for membership, a person must be sponsored by another ABT member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Ten defendants have been charged with offenses that are eligible for the death penalty. The remaining 24 defendants face a maximum penalty of life in prison.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by a multi-agency task force consisting of the ATF; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; the Montgomery County, Texas, Sheriff’s Department; Houston Police Department-Gang Division; Texas Department of Criminal Justice– Office ofInspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; San Antonio Police Department; Baytown, Texas, Police Department; Carrollton, Texas, Police Department; Alvin, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; Harris County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.
Monday, November 12, 2012
BAR BRAWL, BRUTAL BEATING LEADS TO DEATH
FROM: U.S. MARSHALS SERVICE
Bar Brawl Turned Deadly Three Men Charged On Allegations of First Degree Murder
San Antonio, TX – Jose Velez, 29, was arrested by the Lone Star Fugitive Task Force in San Antonio without incident. An arrest warrant was issued by the San Antonio Police Department (SAPD) Homicide Division, where it is alleged that Velez committed first degree murder.
With the assistance of the SAPD Repeat Offenders Program (ROPE) unit, task force officers determined that Velez was living in an apartment located in the 7200 block of Marbach Road. Task force officers entered the residence and Velez was immediately arrested.
Velez is currently being held in Bexar County Jail on a $250,000 bond.
Last month, Velez, accompanied by two other men Larry Castro, 41, and Bernardo Cresanto, 25, allegedly had an altercation with another man, Juan Romero, 41, at a San Antonio sports bar. A short time after leaving the sports bar, Velez, Castro, and Cresanto spotted Romero at a gas station in the 2300 block of Vance Jackson. The three men approached Romero and beat him severely. Romero later died as a result of the brutal beating. Castro and Cresanto turned themselves into authorities soon after the alleged assault, but Velez was a fugitive until yesterday evening.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, "With the assistance of SAPD ROPE, the Lone Star Fugitive Task Force was able to apprehend and arrest another violent offender. When you commit a crime and there’s an active warrant for your arrest, we’re going to stay on your heels and not let you catch your breath."
Bar Brawl Turned Deadly Three Men Charged On Allegations of First Degree Murder
San Antonio, TX – Jose Velez, 29, was arrested by the Lone Star Fugitive Task Force in San Antonio without incident. An arrest warrant was issued by the San Antonio Police Department (SAPD) Homicide Division, where it is alleged that Velez committed first degree murder.
With the assistance of the SAPD Repeat Offenders Program (ROPE) unit, task force officers determined that Velez was living in an apartment located in the 7200 block of Marbach Road. Task force officers entered the residence and Velez was immediately arrested.
Velez is currently being held in Bexar County Jail on a $250,000 bond.
Last month, Velez, accompanied by two other men Larry Castro, 41, and Bernardo Cresanto, 25, allegedly had an altercation with another man, Juan Romero, 41, at a San Antonio sports bar. A short time after leaving the sports bar, Velez, Castro, and Cresanto spotted Romero at a gas station in the 2300 block of Vance Jackson. The three men approached Romero and beat him severely. Romero later died as a result of the brutal beating. Castro and Cresanto turned themselves into authorities soon after the alleged assault, but Velez was a fugitive until yesterday evening.
Robert R. Almonte, United States Marshal for the Western District of Texas, states, "With the assistance of SAPD ROPE, the Lone Star Fugitive Task Force was able to apprehend and arrest another violent offender. When you commit a crime and there’s an active warrant for your arrest, we’re going to stay on your heels and not let you catch your breath."
Sunday, November 11, 2012
FORMER ICE AGENT IN CHARGE OF MIAMI OFFICE, SENTENCED FOR TRANSPORTING CHILD PORNOGRRAPHY
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 9, 2012
Former U.S. Immigration and Customs Enforcement Miami Office Special Agent in Charge Sentenced to 70 Months in Prison for Transporting Child Pornography
WASHINGTON – A former Special Agent in Charge of the U.S. Immigration and Customs Enforcement (ICE) Miami Office was sentenced today to serve 70 months in prison for transporting child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, Acting Special Agent in Charge Michael B. Steinbach of the FBI Miami Field Office and Sheriff Al Lamberti of the Broward County, Fla., Sheriff’s Office.
Anthony Mangione, 52, of Parkland, Fla., was sentenced by U.S. District Judge Kenneth A. Marra in West Palm Beach, Fla. In addition to his prison term, Mangione was sentenced to serve 20 years of supervised release.
On July 16, 2012, Mangione pleaded guilty to one count of transportation of child pornography in U.S. District Court in the Southern District of Florida. He was indicted on Sept. 27, 2011, by a grand jury in Fort Lauderdale, Fla.
According to court documents, between March 2010 and September 2010, Mangione used a computer and other means to transport visual depictions of minors engaging in sexually explicit conduct. Specifically, according to court documents, Mangione established several AOL email accounts to transport numerous images of minors engaging in sexually explicit conduct, including transmitting several images to an individual in Delaware.
During the period of time in which he transported child pornography, Mangione served as the Special Agent in Charge for the ICE Miami Office. Mangione was placed on administrative leave by ICE in April 2011 and has since retired.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child exploitation and abuse. 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Deputy Chief Alexandra R. Gelber and Trial Attorney Michael W. Grant of CEOS. The investigation was conducted by the Broward County Sheriff’s Office and the FBI, with assistance from the Department of Homeland Security, Office of the Inspector General.
Friday, November 9, 2012
Former U.S. Immigration and Customs Enforcement Miami Office Special Agent in Charge Sentenced to 70 Months in Prison for Transporting Child Pornography
WASHINGTON – A former Special Agent in Charge of the U.S. Immigration and Customs Enforcement (ICE) Miami Office was sentenced today to serve 70 months in prison for transporting child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, Acting Special Agent in Charge Michael B. Steinbach of the FBI Miami Field Office and Sheriff Al Lamberti of the Broward County, Fla., Sheriff’s Office.
Anthony Mangione, 52, of Parkland, Fla., was sentenced by U.S. District Judge Kenneth A. Marra in West Palm Beach, Fla. In addition to his prison term, Mangione was sentenced to serve 20 years of supervised release.
On July 16, 2012, Mangione pleaded guilty to one count of transportation of child pornography in U.S. District Court in the Southern District of Florida. He was indicted on Sept. 27, 2011, by a grand jury in Fort Lauderdale, Fla.
According to court documents, between March 2010 and September 2010, Mangione used a computer and other means to transport visual depictions of minors engaging in sexually explicit conduct. Specifically, according to court documents, Mangione established several AOL email accounts to transport numerous images of minors engaging in sexually explicit conduct, including transmitting several images to an individual in Delaware.
During the period of time in which he transported child pornography, Mangione served as the Special Agent in Charge for the ICE Miami Office. Mangione was placed on administrative leave by ICE in April 2011 and has since retired.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child exploitation and abuse. 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was prosecuted by Deputy Chief Alexandra R. Gelber and Trial Attorney Michael W. Grant of CEOS. The investigation was conducted by the Broward County Sheriff’s Office and the FBI, with assistance from the Department of Homeland Security, Office of the Inspector General.
Saturday, November 10, 2012
ALABAMA WOMAN PLEADS GUILTY TO IDENTITY THEFT SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, October 31, 2012
Alabama Woman Pleads Guilty to a Sophisticated Million Dollar Identity Theft Scheme
Defendant Also Pleads Guilty in a Separate Case for Filing False Returns for Clients
Antoinette Djonret pleaded guilty today in two cases: one involving the filing of more than a million dollars worth of false tax returns using stolen identities and the other case involving the filing of false tax returns for clients, the Justice Department and the Internal Revenue Service (IRS) announced today.
On Aug. 9, 2012, a federal grand jury in Montgomery, Ala., returned a superseding indictment charging Djonret and five others for conspiring to file false tax returns using stolen identities and various other charges. Djonret had earlier been charged with making false claims in a criminal complaint that was filed on Feb. 22, 2012, and in an indictment that was filed on March 28, 2012. Djonret pleaded guilty in this case to one count of conspiring to file false tax returns and one count of aggravated identity theft.
"The Justice Department will not tolerate criminals stealing people’s identities and robbing the public fisc," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "We will prosecute and seek just punishment against those who commit stolen identity refund fraud."
"Identity theft causes victims great harm," stated George L. Beck, U.S. Attorney for the Middle District of Alabama. "It victimizes honest taxpayers and causes them an enormous amount of hardship. We will continue to work tirelessly to rid our citizens of this horrible crime."
According to the court documents, between October 2009 and April 2012, Djonret and her co-conspirators filed more than 1,000 false tax returns that claimed more than $1.7 million in fraudulent tax refunds. Djonret obtained stolen identities from multiple sources, including Alabama state databases. She and her co-conspirators filed most of the tax returns from her residence in Montgomery. They used an elaborate network of individuals to launder the tax refunds and recruited individuals to purchase prepaid debit cards to which the fraudulent tax refunds were directed. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds.
In March 2012, the owner of a Montgomery tax preparation business and five return preparers, one of whom was Djonret, were charged with conspiring to defraud the United States and aiding in the filing of false tax returns. According to court documents, in 2007 and 2008, Djonret was employed as a tax preparer at Premier Tax in Montgomery. Djonret received instructions on how to file false tax returns and admitted to filing false tax returns for real clients. She pleaded guilty to one count of aiding and abetting the presentation of a false tax return in relation to this case.
Sentencing has been scheduled for Feb. 6, 2013. Djonret faces between two and 15 years in prison, three years of supervised release, restitution and a maximum fine of $750,000, or twice the loss caused by the offense.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney George L. Beck, Jr. commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who are prosecuting the case.
Wednesday, October 31, 2012
Alabama Woman Pleads Guilty to a Sophisticated Million Dollar Identity Theft Scheme
Defendant Also Pleads Guilty in a Separate Case for Filing False Returns for Clients
Antoinette Djonret pleaded guilty today in two cases: one involving the filing of more than a million dollars worth of false tax returns using stolen identities and the other case involving the filing of false tax returns for clients, the Justice Department and the Internal Revenue Service (IRS) announced today.
On Aug. 9, 2012, a federal grand jury in Montgomery, Ala., returned a superseding indictment charging Djonret and five others for conspiring to file false tax returns using stolen identities and various other charges. Djonret had earlier been charged with making false claims in a criminal complaint that was filed on Feb. 22, 2012, and in an indictment that was filed on March 28, 2012. Djonret pleaded guilty in this case to one count of conspiring to file false tax returns and one count of aggravated identity theft.
"The Justice Department will not tolerate criminals stealing people’s identities and robbing the public fisc," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "We will prosecute and seek just punishment against those who commit stolen identity refund fraud."
"Identity theft causes victims great harm," stated George L. Beck, U.S. Attorney for the Middle District of Alabama. "It victimizes honest taxpayers and causes them an enormous amount of hardship. We will continue to work tirelessly to rid our citizens of this horrible crime."
According to the court documents, between October 2009 and April 2012, Djonret and her co-conspirators filed more than 1,000 false tax returns that claimed more than $1.7 million in fraudulent tax refunds. Djonret obtained stolen identities from multiple sources, including Alabama state databases. She and her co-conspirators filed most of the tax returns from her residence in Montgomery. They used an elaborate network of individuals to launder the tax refunds and recruited individuals to purchase prepaid debit cards to which the fraudulent tax refunds were directed. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds.
In March 2012, the owner of a Montgomery tax preparation business and five return preparers, one of whom was Djonret, were charged with conspiring to defraud the United States and aiding in the filing of false tax returns. According to court documents, in 2007 and 2008, Djonret was employed as a tax preparer at Premier Tax in Montgomery. Djonret received instructions on how to file false tax returns and admitted to filing false tax returns for real clients. She pleaded guilty to one count of aiding and abetting the presentation of a false tax return in relation to this case.
Sentencing has been scheduled for Feb. 6, 2013. Djonret faces between two and 15 years in prison, three years of supervised release, restitution and a maximum fine of $750,000, or twice the loss caused by the offense.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney George L. Beck, Jr. commended the efforts of special agents of IRS – Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who are prosecuting the case.
Friday, November 9, 2012
BARBADOS NATIONAL SENTENCED FOR IDENTITIY THEFT AND TAX REFUND FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 7, 2012
Barbados National Sentenced to Prison for Using Stolen Identities to Obtain Tax Refunds
Defendant Filed False Returns Seeking Over $120 Million in Fraudulent Refunds
Andrew J. Watts, a Barbados national, was sentenced in Chicago by U.S. District Judge Joan Gottschall to 114 months in prison and ordered to pay restitution of just under $1.7 million for devising and executing a stolen identity federal income tax refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, between 2007 and 2011, Watts filed false federal income tax returns in the names of deceased taxpayers seeking fraudulent refunds. Watts either signed the name of the deceased taxpayer to the tax return, or would falsely list himself as the deceased taxpayer’s representative. As part of the scheme, Watts filed over 470 false federal income tax returns, claiming fraudulent refunds in excess of $120 million, and the IRS issued refunds in excess of $10 million. Watts directed the IRS to either mail the refund checks to an address he controlled or to electronically deposit the refund into a bank account under his control.
"While all taxpayers are victims when criminals file false tax returns using stolen identities, those who falsely use the names of deceased individuals add to the grief and burdens of their families," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "We will prosecute and seek just punishment against those who seek to commit these crimes."
"IRS-Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Richard Weber, Chief, IRS-Criminal Investigation. "Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law."
On July 10, 2012, Watts pleaded guilty to one count of mail fraud and one count of aggravated identity theft.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick J. King, Jr., Northern District of Illinois, and Trial Attorney Michelle Petersen, Department of Justice, Tax Division.
Wednesday, November 7, 2012
Barbados National Sentenced to Prison for Using Stolen Identities to Obtain Tax Refunds
Defendant Filed False Returns Seeking Over $120 Million in Fraudulent Refunds
Andrew J. Watts, a Barbados national, was sentenced in Chicago by U.S. District Judge Joan Gottschall to 114 months in prison and ordered to pay restitution of just under $1.7 million for devising and executing a stolen identity federal income tax refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, between 2007 and 2011, Watts filed false federal income tax returns in the names of deceased taxpayers seeking fraudulent refunds. Watts either signed the name of the deceased taxpayer to the tax return, or would falsely list himself as the deceased taxpayer’s representative. As part of the scheme, Watts filed over 470 false federal income tax returns, claiming fraudulent refunds in excess of $120 million, and the IRS issued refunds in excess of $10 million. Watts directed the IRS to either mail the refund checks to an address he controlled or to electronically deposit the refund into a bank account under his control.
"While all taxpayers are victims when criminals file false tax returns using stolen identities, those who falsely use the names of deceased individuals add to the grief and burdens of their families," said Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division. "We will prosecute and seek just punishment against those who seek to commit these crimes."
"IRS-Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system," said Richard Weber, Chief, IRS-Criminal Investigation. "Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law."
On July 10, 2012, Watts pleaded guilty to one count of mail fraud and one count of aggravated identity theft.
The case was investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick J. King, Jr., Northern District of Illinois, and Trial Attorney Michelle Petersen, Department of Justice, Tax Division.
Thursday, November 8, 2012
TEXAS MIDDLE SCHOOL EMPLOYEE PLEADS GUILTY TO CHILD PORN PRODUCTION AND DISTRIBUTION
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, October 31, 2012
Former Middle School Employee Pleads Guilty in Texas to Production and Distribution of Child Pornography
WASHINGTON – A former middle school employee pleaded guilty today in Austin, Texas, to production and distribution of material relating to the sexual exploitation of children, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Texas Robert Pitman.
Robert Ramos Jr., 33, of Austin, pleaded guilty today before U.S. Magistrate Judge Mark Lane in the Western District of Texas to one count of production of child pornography and one count of distribution of child pornography.
At his plea hearing, Ramos, who was previously an assistant band director at Dessau Middle School in Pflugerville, Texas, admitted that he obtained sexually explicit images of a 13-year-old girl by communicating with her on Facebook and that, to do so, he used Facebook accounts that falsely portrayed him as a teenage girl. Ramos also admitted to distributing those images to Timothy Bek, a teacher in New York who was also contacting underage girls for the purpose of obtaining sexually explicit images.
Ramos also admitted at his plea hearing that he viewed via Internet webcam and saved to his computer a video of a five-year-old girl being sexually abused by Jennifer Mahoney, of New Jersey.
Bek was sentenced on May 23, 2012, in U.S. District Court for the Western District of New York to 30 years in prison for production and possession of child pornography. Mahoney pleaded guilty on May 9, 2012, in the U.S. District Court for the District of New Jersey to one count of sexual exploitation of a child, and she awaits sentencing.
Ramos has been in custody since his arrest by FBI agents in January 2012.
At sentencing, Ramos faces a maximum penalty of 50 years in prison.
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 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.
This case was investigated by the FBI and CEOS. CEOS Trial Attorney Keith Becker and Assistant U.S. Attorney Matthew Devlin of the Western District of Texas are prosecuting this case.
Wednesday, October 31, 2012
Former Middle School Employee Pleads Guilty in Texas to Production and Distribution of Child Pornography
WASHINGTON – A former middle school employee pleaded guilty today in Austin, Texas, to production and distribution of material relating to the sexual exploitation of children, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Texas Robert Pitman.
Robert Ramos Jr., 33, of Austin, pleaded guilty today before U.S. Magistrate Judge Mark Lane in the Western District of Texas to one count of production of child pornography and one count of distribution of child pornography.
At his plea hearing, Ramos, who was previously an assistant band director at Dessau Middle School in Pflugerville, Texas, admitted that he obtained sexually explicit images of a 13-year-old girl by communicating with her on Facebook and that, to do so, he used Facebook accounts that falsely portrayed him as a teenage girl. Ramos also admitted to distributing those images to Timothy Bek, a teacher in New York who was also contacting underage girls for the purpose of obtaining sexually explicit images.
Ramos also admitted at his plea hearing that he viewed via Internet webcam and saved to his computer a video of a five-year-old girl being sexually abused by Jennifer Mahoney, of New Jersey.
Bek was sentenced on May 23, 2012, in U.S. District Court for the Western District of New York to 30 years in prison for production and possession of child pornography. Mahoney pleaded guilty on May 9, 2012, in the U.S. District Court for the District of New Jersey to one count of sexual exploitation of a child, and she awaits sentencing.
Ramos has been in custody since his arrest by FBI agents in January 2012.
At sentencing, Ramos faces a maximum penalty of 50 years in prison.
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 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.
This case was investigated by the FBI and CEOS. CEOS Trial Attorney Keith Becker and Assistant U.S. Attorney Matthew Devlin of the Western District of Texas are prosecuting this case.
Tuesday, November 6, 2012
TWO SENTENCED FOR ROLES IN FORECLOSURE RESCUE SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 2, 2012
As Part of Scheme Lied to Homeowners Facing Foreclosure They Could Stay in Their Homes
Lisa Wright, 46, and Cathy Saffer, 52, of Pompano Beach, Fla., were sentenced today to serve 66 and 60 months respectively for defrauding homeowners and mortgage lenders as part of a foreclosure rescue scheme, the Justice Department announced. The two women were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.
Wright pleaded guilty on March 27, 2012, to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud. Saffer was convicted of one count of conspiracy to commit mail and wire fraud, three counts of mail fraud and two counts of wire fraud, following a two week jury trial in July.
According to the indictment and evidence presented at trial, Wright and Saffer operated Foreclosure Solution Specialists (FSS) from 2006 to 2009. Through FSS, Wright and Saffer targeted homeowners facing foreclosure, advertising that FSS could assist those homeowners in remaining in their homes. When contacted by distressed homeowners seeking assistance, Wright and Saffer misrepresented to those homeowners that their homes would be sold to investors. They also claimed that customers could remain in their homes after the sales and promised them an opportunity to repurchase the homes at a later date. Rather than selling the homes to legitimate investors, Wright and Saffer designed sham sales to straw purchasers whom they paid to participate in the scheme.
According to the indictment and evidence presented at trial, Wright and Saffer paid Florida Certified Public Accountant Barrington Coombs to write a fraudulent letter which falsely vouched for the fraudulent information on various loan applications. Coombs, who was also convicted by the jury, is scheduled to be sentenced Dec. 7, 2012.
Mortgage transactions completed by FSS drew equity out of the homes, which Wright and Saffer pocketed for their own purposes. After doing so, Wright and Saffer allowed the loans to go into foreclosure. Homeowners ultimately lost all of the equity in their homes, and most of the victims were forced to move out of their homes.
"The individuals sentenced today took advantage of desperate homeowners hoping to shed the weight of debt and foreclosure, ," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "We will continue to work with the FBI and our other law enforcement partners to investigate and prosecute mortgage fraud and foreclosure rescue schemes such as this one."
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida stated, " This case illustrates the lengths that fraudsters will go to victimize and ruin the lives of hard working families. This mortgage fraud scheme robbed homeowners of more than just their homes; it also robbed them of hope and the American dream of home ownership. The best way to avoid being victimized is to do your homework and ask hard questions. Be wary of those whose promises seem too good to be true. Through this prosecution, these fraudsters have been brought to justice."
The case was investigated by the FBI. The case is being prosecuted by Christopher E. Parisi and John Claud, Trial Attorneys at the Civil Division’s Consumer Protection Branch.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Friday, November 2, 2012
As Part of Scheme Lied to Homeowners Facing Foreclosure They Could Stay in Their Homes
Lisa Wright, 46, and Cathy Saffer, 52, of Pompano Beach, Fla., were sentenced today to serve 66 and 60 months respectively for defrauding homeowners and mortgage lenders as part of a foreclosure rescue scheme, the Justice Department announced. The two women were sentenced by U.S. District Judge Kenneth A. Marra in the Southern District of Florida.
Wright pleaded guilty on March 27, 2012, to one count of conspiracy to commit mail and wire fraud, one count of mail fraud and one count of wire fraud. Saffer was convicted of one count of conspiracy to commit mail and wire fraud, three counts of mail fraud and two counts of wire fraud, following a two week jury trial in July.
According to the indictment and evidence presented at trial, Wright and Saffer operated Foreclosure Solution Specialists (FSS) from 2006 to 2009. Through FSS, Wright and Saffer targeted homeowners facing foreclosure, advertising that FSS could assist those homeowners in remaining in their homes. When contacted by distressed homeowners seeking assistance, Wright and Saffer misrepresented to those homeowners that their homes would be sold to investors. They also claimed that customers could remain in their homes after the sales and promised them an opportunity to repurchase the homes at a later date. Rather than selling the homes to legitimate investors, Wright and Saffer designed sham sales to straw purchasers whom they paid to participate in the scheme.
According to the indictment and evidence presented at trial, Wright and Saffer paid Florida Certified Public Accountant Barrington Coombs to write a fraudulent letter which falsely vouched for the fraudulent information on various loan applications. Coombs, who was also convicted by the jury, is scheduled to be sentenced Dec. 7, 2012.
Mortgage transactions completed by FSS drew equity out of the homes, which Wright and Saffer pocketed for their own purposes. After doing so, Wright and Saffer allowed the loans to go into foreclosure. Homeowners ultimately lost all of the equity in their homes, and most of the victims were forced to move out of their homes.
"The individuals sentenced today took advantage of desperate homeowners hoping to shed the weight of debt and foreclosure, ," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. "We will continue to work with the FBI and our other law enforcement partners to investigate and prosecute mortgage fraud and foreclosure rescue schemes such as this one."
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida stated, " This case illustrates the lengths that fraudsters will go to victimize and ruin the lives of hard working families. This mortgage fraud scheme robbed homeowners of more than just their homes; it also robbed them of hope and the American dream of home ownership. The best way to avoid being victimized is to do your homework and ask hard questions. Be wary of those whose promises seem too good to be true. Through this prosecution, these fraudsters have been brought to justice."
The case was investigated by the FBI. The case is being prosecuted by Christopher E. Parisi and John Claud, Trial Attorneys at the Civil Division’s Consumer Protection Branch.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Monday, November 5, 2012
NORTHERN CALIFORNIA REAL ESTATE INVESTOR AGREES TO PLEAD GUILTY TO BID RIGGING AT PUBLIC FORECLOSURE AUCTIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Investigation Has Yielded 26 Plea Agreements to Date November 1, 2012
WASHINGTON — A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
A four-count felony charge was filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Norman Montalvo, of Concord, Calif. Montalvo is the 26th individual to plead guilty or agree to plead guilty as a result of the department's ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Montalvo conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Francisco and San Mateo counties, Calif. Montalvo was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Montalvo conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo counties beginning as early as June 2008 and continuing until about September 2010.
"The real estate investors involved in the conspiracy illegally restrained competition at foreclosure auctions by falsely creating the appearance of unfettered bidding while they were secretly colluding to suppress prices," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division's criminal enforcement program. "The Antitrust Division remains committed to holding accountable those involved in anticompetitive acts that harm lenders and distressed homeowners."
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco and San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
"Our vigorous pursuit in enforcing fraudulent anticompetitive practices at foreclosure auctions here in northern California is evident in this guilty plea," said Joel Moss, Acting Special Agent in Charge of the FBI San Francisco Division. "Criminals who take advantage of the real estate auction process will be brought to justice by the FBI and the Department of Justice."
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest cases filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division's San Francisco Office and the FBI's San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division's San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today's charges are part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Investigation Has Yielded 26 Plea Agreements to Date November 1, 2012
WASHINGTON — A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
A four-count felony charge was filed today in the U.S. District Court for the Northern District of California, in San Francisco, against Norman Montalvo, of Concord, Calif. Montalvo is the 26th individual to plead guilty or agree to plead guilty as a result of the department's ongoing antitrust investigation into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Montalvo conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Francisco and San Mateo counties, Calif. Montalvo was also charged with a conspiracy to use the mail to carry out a scheme to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
The department said Montalvo conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Francisco and San Mateo counties beginning as early as June 2008 and continuing until about September 2010.
"The real estate investors involved in the conspiracy illegally restrained competition at foreclosure auctions by falsely creating the appearance of unfettered bidding while they were secretly colluding to suppress prices," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division's criminal enforcement program. "The Antitrust Division remains committed to holding accountable those involved in anticompetitive acts that harm lenders and distressed homeowners."
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Francisco and San Mateo County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
"Our vigorous pursuit in enforcing fraudulent anticompetitive practices at foreclosure auctions here in northern California is evident in this guilty plea," said Joel Moss, Acting Special Agent in Charge of the FBI San Francisco Division. "Criminals who take advantage of the real estate auction process will be brought to justice by the FBI and the Department of Justice."
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victim if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest cases filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division's San Francisco Office and the FBI's San Francisco office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division's San Francisco Field Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today's charges are part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Sunday, November 4, 2012
INTERNET PIRACY GROUP MEMBERS SENTENCED FOR CRIMINAL COPYRIGHT CONSPIRACY
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 2, 2012
Two Members of Internet Piracy Group "IMAGiNE" Sentenced in Virginia for Criminal Copyright Conspiracy
WASHINGTON – Two members of the Internet piracy group "IMAGiNE" were sentenced to prison today in Virginia, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C.
Willie Lambert, 57, of Pittston, Pa., was sentenced today by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia to serve 30 months in prison, three years of supervised release and $449,514 in restitution, jointly and severally with co-defendants. Sean M. Lovelady, 28, of Pomona, Calif., was sentenced today by Judge Wright Allen to 23 months in prison, three years of supervised release and $7,500 in restitution.
Lambert and Lovelady were indicted along with two other defendants on April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release to the Internet copies of movies only showing in theaters.
Lovelady and Lambert each pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit criminal copyright infringement on May 9, 2012, and June 22, 2012, respectively.
According to court documents, Lambert, Lovelady and their co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Both Lovelady and Lambert admitted that they went to movie theaters and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies (referred to as "capping"). After obtaining, editing and filtering audio sound tracks and uploading them to servers utilized by the IMAGiNE Group, Lambert and Lovelady used and attempted to use software to synchronize the audio file with an illegally obtained video file to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.
Co-defendants Jeramiah B. Perkins and Gregory Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Aug. 29, 2012, and July 11, 2012, respectively. Perkins is scheduled to be sentenced on Jan. 3, 2013, and Cherwonik is scheduled to be sentenced on Nov. 29, 2012.
The investigation of the case and the arrests were conducted by agents with HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Friday, November 2, 2012
Two Members of Internet Piracy Group "IMAGiNE" Sentenced in Virginia for Criminal Copyright Conspiracy
WASHINGTON – Two members of the Internet piracy group "IMAGiNE" were sentenced to prison today in Virginia, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C.
Willie Lambert, 57, of Pittston, Pa., was sentenced today by U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia to serve 30 months in prison, three years of supervised release and $449,514 in restitution, jointly and severally with co-defendants. Sean M. Lovelady, 28, of Pomona, Calif., was sentenced today by Judge Wright Allen to 23 months in prison, three years of supervised release and $7,500 in restitution.
Lambert and Lovelady were indicted along with two other defendants on April 18, 2012, for their roles in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release to the Internet copies of movies only showing in theaters.
Lovelady and Lambert each pleaded guilty in U.S. District Court for the Eastern District of Virginia to one count of conspiracy to commit criminal copyright infringement on May 9, 2012, and June 22, 2012, respectively.
According to court documents, Lambert, Lovelady and their co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Both Lovelady and Lambert admitted that they went to movie theaters and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies (referred to as "capping"). After obtaining, editing and filtering audio sound tracks and uploading them to servers utilized by the IMAGiNE Group, Lambert and Lovelady used and attempted to use software to synchronize the audio file with an illegally obtained video file to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.
Co-defendants Jeramiah B. Perkins and Gregory Cherwonik each pleaded guilty to one count of conspiracy to commit criminal copyright infringement on Aug. 29, 2012, and July 11, 2012, respectively. Perkins is scheduled to be sentenced on Jan. 3, 2013, and Cherwonik is scheduled to be sentenced on Nov. 29, 2012.
The investigation of the case and the arrests were conducted by agents with HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Justice Department Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
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