ABT GANG MEMBER SENT TO PRISON FOR ROLE IN RACKETEERING CONSPIRACY

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, June 27, 2013

Aryan Brotherhood of Texas Gang Member Sentenced in Houston to 150 Months in Prison for Role in Racketeering Conspiracy

A member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 150 months in prison for his role in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.


James Marshall Meldrum, aka "Dirty," 40, of Dallas, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Meldrum was sentenced to serve five years of supervised release.

On Jan. 31, 2013, Meldrum pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).

According to court documents, Meldrum and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

Meldrum admitted to being an ABT gang member and to trafficking in methamphetamine, as well as to severely beating a subordinate gang member.

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 the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT 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 ABT membership, a person must be sponsored by another gang 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.

Meldrum is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.

This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the 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; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector 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; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.

CONTRACTOR SENTENCED IN SMALL BUSINESS FRAUD SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, June 21, 2013

Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud Scheme

The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.


Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.

"Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners," said Acting Assistant Attorney General Raman. "Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable."

"Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses," said U.S. Attorney Neil H. MacBride. "He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law."

"I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars" said NASA Inspector General Paul K. Martin.

Keith Hedman, 53, of Arlington, Va., was sentenced today after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million.

According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.

In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.

From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.

Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.

In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.

This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.

U.S. RESTRAINS PAINTING BY PICASSO

FROM: U.S. DEPARTMENT OF JUSTICE

Monday, June 24, 2013

U.S. Restrains 1909 Pablo Picasso Painting Valued at $11.5 Million

The Department of Justice today restrained the 1909 Pablo Picasso painting "Compotier et tasse" – estimated to be worth $11.5 million – on behalf of the Italian government, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Preet Bharara of the Southern District of New York; and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.


The restraining order was obtained in response to an official request by the government of Italy, pursuant to the treaty between the United States of America and the Italian Republic on Mutual Legal Assistance in Criminal Matters for assistance in connection with its ongoing criminal investigation and prosecution of Gabriella Amati. Amati and her late husband, Angelo Maj, were charged by the Italian Public Prosecutors’ Office in Milan with embezzlement and fraudulent bankruptcy offenses under Italian law, and Italian prosecutors have obtained a restraining order for the Picasso painting in connection with the criminal proceeding.

According to documents filed in the Italian criminal proceeding, Amati and Maj, in collaboration with a public official of the city of Naples, Italy, employed various schemes to misappropriate tax receipts collected for Naples by companies the couple controlled. In addition, the Italian prosecutors alleged that Amati and Maj orchestrated a number of schemes to embezzle Naples’ tax revenue, including the use of fraudulent service contracts, forged accounting records, inflated operational expenses and fraudulently claimed refunds to Naples taxpayers, all to justify transfers to the couple’s own bank accounts of the taxes that were collected for the city, resulting in a loss of approximately 33 million Euros ($44 million) to Naples.

On May 21, 2013, ICE Homeland Security Investigations (HSI) special agents in New York located and recovered the painting, which was being offered for private sale in the amount of $11.5 million.

An application to enforce the Italian restraining order was filed on June 21, 2013, in the U.S. District Court for the Southern District of New York, seeking to restrain the Picasso painting belonging to Amati and Maj and located in New York City. U.S. District Judge Victor Marrero granted the U.S. government’s application and issued a restraining order prohibiting the removal, sale or disposition of the Picasso painting from the court’s jurisdiction. The United States is working in close cooperation with the Italian Public Prosecutors’ Office in Milan and the Justice Department’s Attaché in Rome to forfeit the painting in an effort to repatriate the Picasso to Italy.

"Restraining this Picasso painting is yet another example of the Justice Department’s close partnership with law enforcement around the world," said Acting Assistant Attorney General Raman. "Our asset forfeiture section is committed to finding and securing every last penny of criminal proceeds and putting those ill-gotten proceeds back in the hands of victims, regardless of where they reside."

"We are pleased to have played a role in securing this valuable work of art by the celebrated artist, Pablo Picasso, on behalf of the Italian government," said U.S. Attorney Bharara. "Our commitment to ‘taking the profit out of crime’ transcends national boundaries and is the operating principle of our asset forfeiture program."

"Restraining this valuable artwork is an effort to help recover some of the estimated $44 million that this couple stole from the tax-paying citizens of Naples," said Director Morton. "We are very pleased that our investigation has led to the recovery of this painting that is so significant to the Italian people. This is an example of the fine work of our HSI cultural repatriation special agents. We will continue our efforts to return stolen antiquities to their rightful owners. "

The U.S. enforcement of the Italian order is being handled by Assistant Deputy Chief Jack de Kluiver and Trial Attorney Jennifer Wallis of Criminal Division’s Asset Forfeiture and Money Laundering Section and Asset Forfeiture Unit Chief Sharon Cohen Levin and Assistant U.S. Attorney Christine Magdo of the U.S. Attorney’s Office for the Southern District of New York, ICE HSI New York and Rome, and the Criminal Division’s Office of International Affairs. In Italy, the case is being handled by the Italian Public Prosecutor’s Office in Milan, and investigated by the Guardia di Finanza police service.

FORMER EXEC. SENTENCED TO PRISON FOR ROLE IN MORTGAGE DOCUMENT FRAUD

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, June 25, 2013

Former Executive at Florida-Based Lender Processing Services Inc. Sentenced to Five Years in Prison for Role in Mortgage-Related Document Fraud Scheme

Over 1 Million Documents Prepared and Filed with Forged and False Signatures, Fraudulent Notarizations


A former executive of Lender Processing Services Inc. (LPS) – a publicly traded company based in Jacksonville, Fla. – was sentenced today to serve five years in prison for her participation in a six-year scheme to prepare and file more than 1 million fraudulently signed and notarized mortgage-related documents with property recorders’ offices throughout the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Middle District of Florida Robert E. O’Neill, and Special Agent in Charge Michelle S. Klimt of the FBI Jacksonville Division.



Lorraine Brown, 56, of Alpharetta, Ga., was sentenced by Senior U.S. District Judge Henry Lee Adams Jr. in the Middle District of Florida. In addition to her prison term, Brown was sentenced to serve two years of supervised release and ordered to pay a fine of $15,000. On Nov. 20, 2012, Brown pleaded guilty to conspiracy to commit mail and wire fraud.

"Lorraine Brown will spend five years in prison for her central role in a scheme to fraudulently execute thousands of mortgage-related documents while our nation’s housing market was at its most vulnerable point in generations," said Acting Assistant Attorney General Raman. "The documents that were fraudulently produced under Brown’s direction were relied upon in court proceedings, including a significant number of foreclosure and bankruptcy matters. Today’s sentencing represents appropriate punishment for someone who sought to capitalize on the nation’s housing crisis."

"Floridians were hard hit by the downturn in the real estate market," said U.S. Attorney O’Neill. "We will continue to pursue individuals like Brown who took advantage of consumers for personal gain and contributed to the financial crisis. Prosecuting financial crimes remains a priority for our office."

"The investigation of sophisticated mortgage and corporate fraud schemes continues to be a priority for the Federal Bureau of Investigation as such criminal activities have a significant economic impact on our community," said Special Agent in Charge Klimt.


Brown was an executive at LPS and the chief executive of DocX LLC, which was a wholly-owned subsidiary of LPS, until it was closed down in early 2010. DocX’s main clients were residential mortgage servicers, which typically undertake certain actions for the owners of mortgage-backed promissory notes. Servicers hired DocX to, among other things, assist in creating and executing mortgage-related documents filed with recorders’ offices.


According to Brown’s plea agreement, employees of DocX, at the direction of Brown and others, began forging and falsifying signatures of authorized personnel on the mortgage-related documents that they had been hired to prepare and file with property recorders’ offices. Only specific personnel at DocX were authorized by clients to sign the documents, but the documents were fraudulently notarized as if actually executed by authorized DocX employees.


According to plea documents, Brown implemented these signing practices at DocX to enable DocX and Brown to generate greater profit. Specifically, DocX was able to create, execute and file larger volumes of documents using these signing and notarization practices. To further increase profits, DocX also hired temporary workers to act as authorized signers. These temporary employees worked for much lower costs and without the quality control represented by Brown to DocX’s clients. Some of these temporary workers were able to sign thousands of mortgage-related instruments a day. Between 2003 and 2009, DocX generated approximately $60 million in gross revenue.

After these documents were falsely signed and fraudulently notarized, Brown authorized DocX employees to file and record them with local county property records offices across the country. Many of these documents were later relied upon in court proceedings, including property foreclosures and federal bankruptcy actions. Brown admitted she understood that property recorders, courts, title insurers and homeowners relied upon the documents as genuine.

This case is being prosecuted by Trial Attorney Ryan Rohlfsen and Assistant Chief Glenn S. Leon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark B. Devereaux of the U.S. Attorney’s Office for the Middle District of Florida. This case was investigated by the FBI, with assistance from the state of Florida’s Department of Financial Services.

This case 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 2,900 mortgage fraud defendants.

TWO FUGITIVE ALLEGED CHILD KIDNAPPERS LOCATED IN COSTA RICA

FROM: U.S. MARSHALS SERVICE

JUNE 17, 2013
Custody Battle Ends In Arrest
Two Fugitives Suspected of Child Kidnapping Found In Costa Rica

San Antonio, TX – Brandy Romano, 35, and Raymond Romano, 42, were arrested this past Friday evening by members of the Gulf Coast Violent Offenders Task Force (GCVOTF) in Houston, TX. Arrest warrants were issued for Brandy and Raymond Romano pursuant to an investigation by the San Antonio Police Department (SAPD), where it is alleged that Brandy and Raymond Romano committed 2 counts of child kidnapping.

Last month, the Lone Star Fugitive Task Force (LSFTF) was contacted by the SAPD for assistance in locating and apprehending Brandy and Raymond Romano. Task force officers initiated an investigation and determined that Brandy and Raymond Romano had previously fled to the Republic of Costa Rica. Task force officers coordinated investigative activities with the United States Marshals Service Investigative Operations Division and their Costa Rican law enforcement counterparts. Costa Rican authorities were able to locate and detain Brandy and Raymond Romano. Brandy and Raymond Romano, both United States citizens, were presented before a Costa Rican immigration judge and determined to have no legal status to remain in the country. Brandy and Raymond Romano were expelled from the Republic of Costa Rica and turned over to the custody of the United States Marshals Service. On Friday evening, Brandy and Raymond Romano were formally arrested by members of the GCVOTF in Houston, TX and transported to the Harris County Sheriff's Office Adult Detention Center.

Brandy and Raymond Romano are currently being held in custody without bond and awaiting transport to Bexar County.

On May 28, 2013, Brandy Romano was ordered by a judge in the 285th District Court to relinquish full custody of her two sons to their biological father, Thomas Walker. Instead of following court orders, Brandy Romano, along with the help of her current husband, Raymond Romano, allegedly kidnapped the two boys, crossed the Mexican border, and fled to the Republic of Costa Rica. Days later, Brandy and Raymond Romano were apprehended by Costa Rican Immigration authorities as they attempted to enter the country. Mr. Walker is currently coordinating with Costa Rican authorities for the safe return of the boys.

Robert Almonte, United States Marshal for the Western District of Texas, stated, "I am thankful for the assistance provided by our Costa Rican counterparts and relieved that both young boys were found quickly and will be returned to their father."

FORMER UNIVERSITY PROFESSOR CHARGED WITH PRODUCING CHILD PORN

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, June 17, 2013

Former University Professor Charged in California with Engaging in Sexual Conduct with Minors and Producing Child Pornography
Walter Lee Williams Is the 500th Addition to Fbi Top Ten Most Wanted List


Walter Lee Williams, a former university professor, has been indicted for allegedly engaging in sexual conduct with minors and producing child pornography, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director Ronald T. Hosko of the FBI Criminal Investigative Division announced today.

Today, the FBI added Williams to its "Ten Most Wanted Fugitives" list, making him the 500th addition to the list.

Williams was charged in an indictment unsealed on Friday, June 14, 2013, in U.S. District Court in the Central District of California. The indictment, which was filed on April 30, 2013, charges Williams with one count of producing child pornography, one count of traveling for the purpose of engaging in illicit sexual conduct with a minor and two counts of engaging in illicit sexual conduct in foreign places.

The indictment alleges Williams traveled from Los Angeles to the Philippines in January 2011 to engage in sex acts with two 14-year-old boys he met online in 2010. Prior to his travel, Williams allegedly engaged in sexual activity via Internet webcam sessions with these boys and expressed a desire to visit them in the Philippines to have sex. While in the Philippines, he allegedly engaged in sex acts with both boys and produced sexually explicit photos of one of the boys. Williams fled the Los Angeles area approximately one week after returning from the Philippines.

Williams is a 64-year-old White male. He is 5’9", weighs approximately 180 pounds and has grayish-brown hair and brown eyes. Williams has previously resided in Palm Springs, Calif., and he was affiliated with a religious organization known as the Buddhist Universal Association in Los Angeles. Williams has an extensive history of travel throughout the Southeast Asia region, specifically the Philippines. He has reportedly resided in Indonesia, Polynesia and Thailand. Williams is also alleged to have owned property in Thailand. He may also travel to Mexico and Peru.

The FBI is offering a reward of up to $100,000 for information leading directly to the arrest of this subject, the newest addition to the "Ten Most Wanted Fugitives" list. This is an ongoing investigation.

Trial Attorneys Michael Grant and Herbrina Sanders from the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting this case. The FBI Los Angeles field office is investigating the case.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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 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.

FORMER CEO OF ENRON RESENTENCED FOR FRAUD AND CONSPIRACY CONVICTIONS

FROM: U.S. DEPARTMENT OF JUSTICE
Friday, June 21, 2013

Former Enron CEO Jeffrey Skilling Resentenced to 168 Months for Fraud, Conspiracy Charges

Former Enron Chief Executive Officer Jeffrey K. Skilling has been resentenced to 168 months in prison on conspiracy, securities fraud, and other charges related to the collapse of Enron Corporation. In addition to the prison sentence, Skilling, 59, was ordered to forfeit approximately $42 million to be applied toward restitution for the victims of the fraud at Enron.


Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after Skilling was resentenced before U.S. District Judge Sim Lake at the U.S. District Court in Houston.

"The sentence handed down today ends years of litigation, imposes significant punishment upon the defendant and precludes him from ever challenging his conviction or sentence," said Acting Assistant Attorney General Raman. "With today’s court action, victims of Skilling’s crimes will finally receive more than $40 million that he owes them. We appreciate the hard work and dedication of all the prosecutors and agents who have handled this important case from the initial investigation to today’s successful conclusion."

A federal jury found Skilling guilty in Houston on May 25, 2006, of one count of conspiracy, 12 counts of securities fraud, one count of insider trading, and five counts of making false statements to auditors. Judge Lake initially sentenced Skilling to serve 292 months of imprisonment on Oct. 23, 2006. On Jan. 6, 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling’s convictions but vacated his sentence and remanded for a new sentencing hearing. The court of appeals concluded that the district court erred by increasing Skilling’s sentence for having substantially jeopardized the safety and soundness of a financial institution – that is, Enron’s pension plan. As a result, the court of appeals effectively reduced Skilling’s guidelines range of imprisonment by approximately nine years.

In May 2013, the government and Skilling entered into an agreement to recommend jointly to the district court a sentence between 168 months and 210 months of imprisonment, a limited reduction in Skilling’s guidelines range of imprisonment in exchange for Skilling agreeing, among other things, not to contest the original forfeiture and restitution order and to waive all appeals and other litigation. As court documents make clear, the government entered into this agreement, in part, to bring finality to Skilling’s convictions and thereby allow the government to promptly seek the distribution of approximately $42 million to victims of Skilling’s crimes.

Skilling’s convictions stemmed from a scheme to deceive the investing public, the U.S. Securities and Exchange Commission, and others about the true performance of Enron’s businesses. The scheme was designed to make it appear that Enron was growing at a healthy and predictable rate, consistent with analysts’ published expectations, that Enron did not have significant write-offs or debt and was worthy of an investment-grade credit rating, that Enron was comprised of a number of successful business units, and that the company had an appropriate cash flow. This scheme had the effect of artificially inflating Enron’s stock price, which increased from approximately $30 per share in early 1998 to over $80 per share in January 2001, and artificially stemming the decline of the stock during the first three quarters of 2001.

The fraud scheme eventually unraveled and Enron filed for bankruptcy in December 2001, making its stock virtually worthless.

The investigation into Enron’s collapse was conducted by the Enron Task Force, a team of federal prosecutors supervised by the Justice Department’s Criminal Division, and Special Agents from the FBI and IRS Criminal Investigation. The Task Force received considerable assistance from the Securities and Exchange Commission. The resentencing hearing was handled by Patrick Stokes, Albert Stieglitz and Robert Heberle of the Criminal Division’s Fraud Section.

LA COSA NOSTRA ASSOCIATE PLEADS GUILTY TO LOAN SHARKING

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, June 13, 2013

Philadelphia La Cosa Nostra Associate Pleads Guilty to Loan Sharking

Robert Ranieri, 37, of Glendora, N.J., pleaded guilty today to committing loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family.


Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, made the announcement after the plea was accepted by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania.

Through court documents and statements made in court, Ranieri admitted that he conspired with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and used threats of violence to collect payments on the loan.

At sentencing, scheduled for Sept. 25, 2013, Ranieri faces a maximum penalty of 40 years in prison.

The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.

The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.

COUNTY COMMISSIONER SENTENCED IN BRIBERY, EXTORTION CASE

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, June 12, 2013

County Commissioner Sentenced for Attempted Extortion and Bribery

Al J. Hurley, a former county commissioner in Sumter County, Ga., was sentenced today to 36 months in prison stemming from his acceptance of illicit payments in exchange for his official efforts to secure government contracts for a private contractor, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Middle District of Georgia U.S. Attorney Michael J. Moore announced.


Hurley, 55, of Americus, Ga., was sentenced today by U.S. District Judge W. Louis Sands. On Dec. 3, 2012, a federal jury sitting in the Albany Division of the Middle District of Georgia found Hurley guilty of one count each of attempted extortion and federal program bribery.

Hurley was first elected to the five-member Sumter County board of commissioners in 1999. As the primary governing body for the county, the board presided over a variety of official matters, including the bidding process for and award of various county contracts.

Evidence at trial showed that from September to December 2011, Hurley, in his capacity as a county commissioner, solicited and agreed to accept cash payments – including $5,000 on Oct. 23, 2011, and $15,000 on Dec. 19, 2011 – from a private contractor, in exchange for Hurley’s repeated promises to use official action and influence to help facilitate the award of county contracting work to the contractor.

In particular, Hurley told the contractor that he would help him win a $100,000 depot renovation contract in a city within Hurley’s district. Trial testimony also established that, in order to drive up the bribe amount, Hurley invented two inside contacts that he claimed to have at a new racetrack project in his district, and claimed the contacts could influence the award of related contracting work in favor of the contractor. Hurley, who testified, admitted the contacts did not exist.

This case was investigated by the FBI. This case was prosecuted by Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.

U.S. MARSHALS ARREST DRIVE-BY SHOOTER

FROM: U.S. MARSHALS SERVICE

June 19, 2013

U.S. Marshals Arrest Drive-By Shooter
Albuquerque, NM - On June 8, 2013, William Michael Clark allegedly shot 3 people in a drive-by shooting in the parking lot of the Olive Garden in NE Albuquerque, NM. The shooting occurred shortly after 9pm and was the result of a drug deal gone bad. Albuquerque Police detectives quickly identified the suspect as William Michael Clark. Clark, 24 years old, was charged with Aggravated Battery with a Deadly Weapon (3 counts), and Aggravated Assault with a Deadly weapon (3 counts).

On June 11, 2013, local authorities believed that Clark had fled the city and asked the United States Marshals Service, South West Investigative Fugitive Team (SWIFT) task force for assistance in locating Clark.

On June 17, 2013, through investigative measures and Crimestopper tips, the task force tracked Clark to Santa Fe, NM. The task force located and arrested Clark in the "Plaza" area of old town Santa Fe. Clark was booked into the Metropolitan Detention Center without incident. District of New Mexico, United States Marshal, Conrad Candelaria, said "Combining the efforts of many law enforcement agencies, along with Crimestoppers and investigative surveillance techniques, proved beneficial in apprehending this dangerous fugitive."

MAN INDICTED IN STOLEN IDENTITY TAX REFUND SCHEME

FROM: U.S. DEPARTMENT OF JSUTICE
Wednesday, June 12, 2013

Alabama Man Indicted for Multi-state Stolen Identity Refund Fraud Scheme

Christopher Cordelle Davis, of Montgomery County, Ala., was indicted by a federal grand jury in the Middle District of Alabama for his role in a scheme to file fraudulent tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today following Davis’s arrest. He was charged with conspiracy to defraud the United States, five counts of wire fraud, and five counts of aggravated identity theft.


According to the indictment, Davis provided stolen identities to Kenneth Jerome Blackmon Jr. Davis and Blackmon then filed fraudulent tax returns using the stolen identities. The refunds would be directed to debit cards. Davis would recruit individuals to obtain the debit cards and to go on trips during which the cards would be used to cash out the refund money at various locations in different states, including Georgia and South Carolina. The indictment also alleges that in September 2011, Davis possessed over 600 stolen identities, some taken from a medical facility in Alabama and over 200 prepaid debit cards in Gwinnett County, Ga. Blackmon was previously convicted and sentenced to 51 months in prison for his role in the conspiracy.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty. If convicted, Davis faces a maximum potential sentence of five years in prison for the conspiracy charge, up to 20 years in prison for each wire fraud charge and a mandatory two-year sentence for the aggravated identity theft counts. He will also be subject to fines and mandatory restitution and forfeiture if convicted.

This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Jason Poole and Justin Gelfand of the Justice Department’s Tax Division are prosecuting the case with assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.

FORMER CONGRESSMAN RENZI FOUND GUILTY OF 17 FELONY OFFENCES

FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, June 11, 2013

Former Congressman Richard G. Renzi Convicted of Extortion and Bribery in Illegal Federal Land Swap

A former U.S. Congressman and a real-estate investor were convicted today by a federal jury in Tucson, Ariz., of conspiring together to extort and bribe individuals seeking a federal land exchange, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney John Leonardo of the District of Arizona and Special Agent in Charge Douglas F. Price of the FBI’s Phoenix Division.


Richard G. Renzi, 55, of Burke, Va., was found guilty of 17 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right, racketeering, money laundering and making false statements to insurance regulators.

James W. Sandlin, 62, of Sherman, Texas, was found guilty of 13 felony offenses including conspiracy, honest services wire fraud, extortion under color of official right and money laundering.

Sentencing is set before U. S. District Judge David C. Bury on Aug. 19, 2013.

"Former Congressman Renzi’s streak of criminal activity was a betrayal of the public trust and abuse of the political process," said Acting Assistant Attorney General Raman. "After years of misconduct as a businessman, political candidate and member of Congress, Mr. Renzi now faces the consequences for breaking the laws that he took an oath to support and defend."

"Our democracy is undermined whenever our elected officials misuse the power entrusted to them by the voters to serve their own private interests rather than in the service of the public interest," said U.S. Attorney Leonardo. "The jury’s verdict reinforces the fundamental principle that our society is governed by the rule of law, and that no citizen, including the most influential and powerful among us, is above the law."

"Today's conviction is a culmination of the investigative efforts of the FBI and IRS-Criminal Investigation over a period of several years," said FBI Special Agent in Charge Price. "Public corruption is one of the top criminal priorities of the FBI, and it is imperative that elected public officials be held accountable to uphold the public's trust. The FBI remains committed to this criminal priority in combating public corruption at all levels."

According to evidence at trial, Renzi, then a member of Congress from Arizona’s 1st Congressional District, promised in 2005 to use his legislative influence to profit from a federal land exchange that involved property owned by Sandlin, a real-estate investor.

At the time, Sandlin owed Renzi $700,000 in future payments from their business dealings, and Renzi threatened a proponent of the land exchange that he would not support it unless they purchased Sandlin’s property in Cochise County, Ariz. When that individual refused, Renzi promised a second proponent of a land exchange that he would support the exchange if they purchased Sandlin’s property. According to an agreement reached in May 2005, Sandlin was paid $1 million in earnest money, out of which he paid $200,000 to Renzi. Just before Sandlin received the $1.6 million balance owed on the exchange, he paid an additional $533,000 to Renzi.

Evidence at trial further showed that from 2001 to 2003, Renzi engaged in insurance fraud by diverting his clients’ insurance premiums to fund his first campaign for Congress, and he provided false statements to various state regulators who were investigating his activities.

Renzi was indicted in February 2008, and in October 2008, Renzi moved to dismiss the indictment under his rights as a member of Congress under the Speech or Debate Clause. The court denied his motion in February 2010, and Renzi pursued an interlocutory appeal. After Renzi’s appeal was unsuccessful, trial was set for May 2013.

Honest services wire fraud, extortion under color of official right, concealment money laundering and racketeering each carry maximum penalties of 20 years in prison. Conspiracy carries a maximum penalty of five years in prison, and making false statements to insurance regulators and transactional money laundering each carry maximum penalties of 10 years in prison.

This case was investigated by the FBI and the Internal Revenue Service – Criminal Investigation. The prosecution was handled by Trial Attorneys David Harbach and Sean Mulryne of the Department of Justice’s Public Integrity Section and Assistant U.S. Attorneys Gary Restaino and James Knapp of the District of Arizona.

MAN GETS PRISON TIME FOR ROLE IN FRAUDULENT MILITARY RECRUITING BONUS SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, June 7, 2013

Former Army National Guard Soldier Sentenced to 57 Months in Prison for Lead Role in Fraudulent Military Recruiting Referral Bonus Scheme

A former member of the U.S. Army National Guard was sentenced today to serve 57 months in prison for leading a conspiracy to obtain approximately $244,000 in fraudulent recruiting referral bonuses from various U.S. military components and their contractor, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.


Former U.S. Army National Guard Specialist Xavier Aves, 42, of San Antonio, was sentenced by Chief U.S. District Judge Fred Biery in the Western District of Texas. In addition to his prison term, Chief Judge Biery sentenced Aves to serve three years of supervised release and ordered Aves to pay $244,000 in restitution, jointly and severally with co-conspirators.

On Sept. 16, 2011, a grand jury in the Western District of Texas returned a 41-count indictment against Aves and five co-defendants, in which Aves was charged with one count of conspiracy to commit wire fraud, 30 counts of wire fraud and 10 counts of aggravated identity theft.

On Feb. 3, 2012, Aves pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.

The case against Aves and his co-defendants arose from an investigation concerning allegations that former and current soldiers and military and civilian contract recruiters in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting referral bonuses. To date, 11 individuals have been charged, 10 of whom have pleaded guilty and been sentenced. The investigation is ongoing.

According to court documents, between 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc. to administer recruiting bonus programs designed to offer monetary incentives to soldiers who referred others to serve in the U.S. military. In addition, the Army managed its own recruiting bonus programs, which offered referral bonuses to soldiers who referred other individuals to serve in the Army or Army Reserves after registering online as recruiting assistants (RA) or sponsors.

Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to join the U.S. military. Based on certain milestones achieved by the referred soldier, a participating soldier would receive the recruiting bonus payments in the form of direct deposits and pre-paid debit card payments.

According to court documents, between February 2006 and February 2011, Xavier Aves, Christopher Castro, Grant Bibb, Paul Escobar, Richard Garcia, Ernest Gonzales and others paid military recruiters, including Jesus Torres-Alvarez, for the names and social security numbers of potential soldiers. Aves, Castro, Bibb, Escobar, Garcia, Gonzales and others used the information they obtained from recruiters to claim credit in their online RA and sponsor accounts for referring certain new soldiers to join the military, when in fact they did not refer those individuals.

Aves orchestrated the scheme by serving as a key intermediary between the recruiters and the participating RAs. Aves arranged for the money to be split among his co-conspirators and directed a portion of the proceeds to be wired to his and his girlfriend’s personal bank accounts.

As a result of the fraudulent referrals, Aves and his co-conspirators received a total of approximately $244,000 in fraudulent recruiting bonuses.

The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Mark J. Cipolletti and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Division.

METHLAB AND RUNAWAY LOCATED

FROM: U.S. MARSHALS SERVICE
U.S. Marshals Fugitive Task Force Locates Endangered Runaway and Meth Lab Concord, NH

– Last night, members of the U.S. Marshals Fugitive Task Force in New Hampshire located a 17 year old endangered runaway in Manchester who has been missing from the Bristol, Virginia area since May 19, 2013. The U.S. Marshals through its partnership with the National Center for Missing and Exploited Children received information that the endangered runaway was in the Manchester area. Through the investigation conducted by the fugitive task force, it was learned that this runaway juvenile was possibly located at 300 Village Circle Way in Manchester.

In the process of locating the runaway at this address, the fugitive task force encountered several people that were in the presence of the runaway and an apparent methamphetamine lab. The occupants were detained and removed from the residence by law enforcement. The Manchester Police and Fire Departments were notified, along with the Drug Enforcement Agency and New Hampshire State Police, whom all responded to the scene to assist with the suspected methamphetamine lab.

The endangered runaway is currently in protective custody with the Manchester Police Department. With the assistance from the National Center for Missing and Exploited Children she will soon be reunited with her parents.

Along with the recovered endangered runaway, the following arrests were made; Michael Fleenor, 48; Jackie Barr, 45; and Cody Vinson, 22 all from the Bristol County, Virginia area. Fleenor was arrested and is being held at the Hillsborough County Jail on charges of possession and manufacturing of methamphetamine. Barr was wanted by Bristol County Sheriff’s Office, VA on an outstanding arrest warrant for a probation violation, stemming from an original conviction and sentence for larceny and is currently being held as a fugitive from justice at the Hillsborough County Jail. Vinson was being sought by the Bristol, Tenn. Police Department on an outstanding warrant for aggravated domestic assault and is also currently being held as a fugitive from justice at the Hillsborough County Jail.

U.S. Marshal David Cargill, Jr. said, "We are pleased that we have recovered this endangered runaway who was in a difficult situation and can now be reunited with her family." Cargill continued, "I would like to thank all the agencies that assisted us in bringing this situation to a safe conclusion; which include the DEA, N.H. State Police, Hillsborough County Sheriff’s Office, Rockingham County Sheriff’s Office, Manchester Police Department and the Manchester Fire Department. The team work provided by these agencies made the difference, preventing a bad situation from becoming a tragedy." Cargill further said "Methamphetamine is a very volatile and dangerous drug that jeopardizes the safety of not just the addicts but the public, who are often unaware that they are being exposed to these dangerous chemicals and their potential health risks."

Since the inception of the New Hampshire Joint Fugitive Task Force in 2002, these partnerships have resulted in over 5,370 arrests. These arrests have ranged in seriousness from murder, assault, unregistered sex offenders, probation and parole violations and numerous other serious offenses. Nationally the United States Marshals Service fugitive programs are carried out with local law enforcement in 94 district offices, 85 local fugitive task forces, 7 regional task forces, as well as a growing network of offices in foreign countries.

MAN PLEADS GUILTY TO MAKING FALSE STATEMENTS TO FEDERAL ELECTION COMMISSION

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, June 5, 2013
Louisiana Businessman Pleads Guilty to Making False Statements to the Federal Election Commission

The president of a Louisiana towing company pleaded guilty today to using his personal and business accounts to fund campaign contribution checks in the names of others in support of two candidates for the U.S. Senate, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Dana Boente announced.

Arlen "Benny" Cenac Jr., 57, a resident of Houma, La., and the president and owner of Cenac Towing, pleaded guilty today to making false statements to the Federal Elections Commission (FEC). He faces a maximum penalty of five years in prison when he is sentenced on Sept. 5, 2013, before U.S. District Judge Carl Barbier.

"Today’s plea marks the second campaign finance conviction in a week and is one of many such cases brought throughout the nation," said Acting Assistant Attorney General Raman. "Mr. Cenac’s crime undermined the cornerstones of campaign finance laws, and his conviction demonstrates our resolve to hold accountable anyone who corrupts our electoral process."

"Mr. Cenac, in an effort to increase his political contributions, structured his financial transactions and created false documents," said U.S. Attorney Boente. "This prosecution should serve as a warning to people who attempt to hide their identity and make contributions in excess of legal limits."

According to the plea documents, Cenac obtained cashier’s checks using his personal and corporate funds in names of individuals other than himself, including people he knew professionally, personally, or through family relations. Cenac neither sought nor obtained the permission of the individuals he listed as remitters on the cashier’s checks. He then submitted the checks as campaign contributions to the campaigns of two U.S. Senate candidates, causing the campaigns to submit materially false information regarding the source and the amount of the contributions to the FEC.

The case was investigated by the FBI’s New Orleans Division. Trial Attorney Tracee Plowell of the Public Integrity Section and Assistant U.S. Attorney Daniel Friel of the Eastern District of Louisiana are prosecuting the case on behalf of the United States.

TWO MEN AND A COMPANY TO PAY OVER $2.7 MILLION IN SANCTIONS FOR FRAUD

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

Federal Court Orders Utah Residents Christopher D. Hales, Eric A. Richardson and their Company Bentley Equities, LLC to Pay More Than $2.7 Million in Sanctions for Fraud

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained federal court orders for more than $2.7 million in disgorgement and civil monetary penalties against Bentley Equities, LLC (Bentley), a Delaware corporation, and its principals, Christopher D. Hales (Hales) and Eric A. Richardson (Richardson), resolving the CFTC’s May 2, 2012 Complaint charging them with fraud. Hales is currently an inmate at the Federal Correctional Institution in Safford, Arizona, and Richardson is currently an inmate at the Florence Federal Correction Complex in Florence, Colorado.

On May 31, 2013, the Honorable Dee Benson of the United States District Court for the District of Utah, Central Division, entered a Consent Order for Permanent Injunction against Richardson requiring him to pay $100,000 in disgorgement and a $150,000 civil monetary penalty. That Order also permanently bans Richardson from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits him from violating the anti-fraud provisions of the Commodity Exchange Act, as charged. On May 14, 2013, Judge Benson also entered an Order for Default Judgment and Permanent Injunction against Hales and Bentley that requires Hales to pay $382,080 in disgorgement and $1,146,240 in civil monetary penalties and Bentley to pay an $840,000 civil monetary penalty. That Order also permanently bans Hales and Bentley from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.

The CFTC’s 2012 enforcement action against Hales, Richardson and Bentley charged them with fraudulently soliciting and accepting more than $1.1 million from approximately 39 customers for the purpose of trading commodity futures. It also alleged that they misappropriated approximately $658,452 of customer funds for personal expenses including auto expenses, utility bills and credit card payments and to make payments to existing customers in the manner of a Ponzi scheme. The Complaint further alleged that Hales, Richardson and Bentley misrepresented to customers that their trading was profitable, when in reality, they lost more than $482,000 trading commodity futures and that Hales and Bentley issued false statements to certain customers.

In related criminal prosecutions, Hales was sentenced to more than seven years imprisonment and ordered to pay $12,719,236 in criminal restitution in connection with a judgment entered against him in United States v. Christopher D. Hales, No. 2:10-CR-183-TS-SA-1 (C. D. UT, Sept. 2, 2010) and Richardson was sentenced to a year and a day imprisonment and ordered to pay $110,000 in criminal restitution in connection with a judgment entered against him in United States v. Eric A. Richardson, No. 2:12-CR-00354 (C.D. UT, June 27, 2012).

The CFTC appreciates the assistance of the U.S. Attorney’s Office for the District of Utah, the U.S. Department of Housing and Urban Development—Office of Inspector General, the U.S. Postal Inspection Service and the FBI.

The following CFTC Division of Enforcement staff is responsible for this case: Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger and Richard Wagner.

MAN SENTENCED TO PRISON FOR CONSPIRING TO DISTRIBUTE PRESCRIPTION DRUGS OVER THE INTERNET

FROM: U.S. DEPARTMENT OF JUSTICE
Monday, June 3, 2013
Illinois Man Sentenced to Serve 72 Months in Prison for Conspiring to Distribute Presciption Drugs Over the Internet

Michael P. Jackson, 40, of Carmi, Ill., was sentenced today in the U.S. District Court for the Southern District of Florida to serve 72 months in prison for selling the prescription drug known as Adderall, from 2009 to 2012, to a Florida woman who operated an illegal Internet-pharmacy business. Jackson also was sentenced to three years of supervised release.

According to the Dec. 6, 2012, indictment, defendant Jackson supplied his co-defendant Lina Rodriguez with pills of Adderall, which contains amphetamine, a Schedule II controlled substance. As defendant Jackson was aware and intended, co-defendant Rodriguez resold the Adderall pills through an Internet business she owned and operated in southern Florida.

"This prosecution aims to curb the sale of dangerous drugs to United States citizens," said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice. "The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs."

Jackson pled guilty to the lead count of the indictment on March 11, 2013, which charged him and Rodriguez with conspiring to possess with the intent to distribute Adderall. Pursuant to his plea agreement, Jackson agreed not to oppose a judgment against him in the amount of $18,862, as gross proceeds of the offense to which he pleaded guilty. Rodriguez was sentenced to 72 months’ imprisonment on April 22, 2013.

The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.

MONEY FORFEITED UNDER JUSTICE DEPARTMENT''S KLEPTOCRACY INITIATIVE

FROM: U.S. DEPARTMENT OF JUSTICE

Friday, May 31, 2013

Rockville, Md., Property Purchased with Nigerian Corruption Proceeds Forfeited Through Justice Department’s Kleptocracy Initiative

A forfeiture judgment was executed today against real property with an estimated value of more than $700,000 in Rockville, Md., that had been purchased with corruption proceeds traceable to Diepreye Solomon Peter Alamieyeseigha, a former Governor of Bayelsa State, Nigeria, announced Acting Assistant Attorney General Mythili Raman of the Criminal Division and U.S. Immigration and Customs Enforcement (ICE) Director John Morton.

"Foreign officials who think they can use the United States as a stash-house are sorely mistaken," said Acting Assistant Attorney General Raman. "Through the Kleptocracy Initiative, we stand with the victims of foreign official corruption as we seek to forfeit the proceeds of corrupt leaders’ illegal activities."

"This investigation was initiated by ICE’s Homeland Security Investigations (HSI) Asset Identification & Removal Group (AIRG) in Baltimore, in an effort to recover the criminal proceeds from Diepreye Solomon Peter Alamieyeseigha’s assets, whose shell companies were convicted of money laundering offenses in Nigeria," said ICE Director Morton. "HSI’s AIRG will continue working with the Department of Justice to seek to recover illicit proceeds gained through foreign corruption and to protect the U.S. financial system from being utilized by criminals."

Alamieyeseigha, aka DSP, was the elected governor of oil-producing Bayelsa State in Nigeria from 1999 until his impeachment in 2005. As alleged in the U.S. forfeiture complaint, DSP’s official salary for this entire period was approximately $81,000, and his declared income from all sources during the period was approximately $248,000. Nevertheless, while governor, DSP accumulated millions of dollars’ worth of property located around the world through corruption and other illegal activities. The complaint alleges that DSP acquired the Rockville property during his first term as governor of Bayelsa State with funds obtained through corruption, abuse of office, money laundering and other violations of Nigerian and U.S. law. Title to the property was transferred to Solomon & Peters, Ltd., a shell corporation controlled by DSP and on whose behalf the former governor entered a guilty plea to money laundering in Nigeria in 2007.

On May 24, 2013, U.S. District Court Judge Roger W. Titus of the District of Maryland granted a motion for a default judgment filed by the Criminal Division’s Asset Forfeiture and Money Laundering Section and issued a final decree of forfeiture. The order extinguishes all prior title and authorizes forfeiture to the United States of the private residence located in Rockville, Maryland, estimated to be worth more than $700,000 and allows the United States to liquidate the property in accordance with federal law. In a related action in the District of Massachusetts, the Department of Justice and ICE Homeland Security Investigations successfully forfeited approximately $400,000 from an investment account traceable to DSP.

Both actions were brought under the Justice Department’s Kleptocracy Asset Recovery Initiative announced by the Attorney General in 2010. Through this initiative, the Department of Justice, along with federal law enforcement agencies, seeks to identify and forfeit the proceeds of foreign official corruption, and where possible and appropriate return those corruption proceeds for the benefit of the people of the nations harmed by the corruption.

The case was investigated by the HSI’s Asset Identification & Removal Group (AIRG) in Baltimore. The case was prosecuted by Assistant Deputy Chief Daniel H. Claman and Trial Attorney Tracy Mann of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.

TWO FORMER PUERTO RICO POLICE OFFICERS CONVICTED OF EXTORTING MONEY FROM A DEFENDANT

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, May 29, 2013
Former Puerto Rico Police Officers Convicted of Extorting a Defendant for $50,000

Two former police officers with the Police of Puerto Rico were convicted of attempting to extort a commonwealth defendant and soliciting bribe payments of $50,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.

Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on charges including conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to the same counts during trial.

According to court records and evidence presented at trial, Arroyo and Becerril arrested eight individuals for possession of unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one individual a bribe payment of $50,000 to have his case dismissed. Beginning on Sept. 11, 2012, both officers spoke with the individual multiple times over the telephone, discussing payment details and strategies for dismissing the individual’s case. Arroyo and Becerril collected approximately $35,000 of the $50,000 in two different payment installments.

In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to dismissal of that defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant.

Unbeknownst to the officers, the individuals who dropped off the payments were cooperating with federal law enforcement.

The case was investigated by the FBI’s San Juan Field Office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.

ALABAMA WOMAN PLEADS GUILTY TO ROLE IN STOLEN IDENTITY REFUND FRAUD SCHEME

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, May 29, 2013

Alabama Resident Pleads Guilty in Stolen Identity Refund Fraud Scheme

Today, Bridgette Rivers, a resident of Montgomery, Ala., pleaded guilty to her involvement in a conspiracy to use stolen identities to file fraudulent tax returns, the Justice Department and the Internal Revenue Service (IRS) announced today.

According to the court documents, Rivers provided identity information to her co-conspirators, Barbara Murry, Veronica Temple and Yolanda Moses. Those co-conspirators used these stolen identities and others to file false tax returns that fraudulently requested tax refunds from the IRS. Rivers also recruited another individual to provide her bank account information to the conspiracy. The fraudulently obtained tax refunds went into that individual’s bank account and the individual would then withdraw the money to give to Rivers.

This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Michael Boteler and Jason Poole of the Justice Department’s Tax Division are prosecuting the case, with the assistance from the U.S. Attorney’s Office for the Middle District of Alabama and, in particular, Assistant U.S. Attorney Todd Brown.

MAN PLEADS GUILTY TO PRODUCING PORNOGRAPHY USING MINORS

FROM: U.S. JUSTICE DEPARTMENT
Wednesday, May 29, 2013

Former Navy Reservist Pleads Guilty to Sexual Exploitation of Multiple Minors to Produce Pornography

Anthony K. Mastrogiovanni, 30, of Crofton, Md., pleaded guilty today to the sexual exploitation of minors to produce pornography.

The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service’s Washington Division.

According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.

Mastrogiovanni has been in federal custody since he was arrested by inspectors of the U.S. Postal Inspection Service in Las Vegas on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.

As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013.

The investigation was conducted by the U.S. Postal Inspection Service, with the assistance of the Air Force Office of Special Investigations, Naval Criminal Investigative Service and FBI’s Maryland Child Exploitation Task Force. The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland.

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 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.

U.S. Department of Defense Armed with Science Update: Using Technology to Stop International Nacotics Trade

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MAN SENTENCED FOR COERCING A MINOR TO PERFORM IN ONLINE SEX SHOW

FROM: U.S. JUSTICE DEPARTMENT
Tuesday, May 28, 2013
Pennsylvania Man Sentenced to 12 Years in Prison for Coercing and Enticing a Minor to Perform in an Online Sex Show

A Pennsylvania man was sentenced today to serve 12 years in prison for coercing and enticing a minor and possessing child pornography, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Western District of Pennsylvania David J. Hickton; and Special Agent in Charge John Kelleghan of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Philadelphia.

Jeffrey W. Herschell, 54, of Washington, Pa., was sentenced by U.S. District Judge David Stewart Cercone in the Western District of Pennsylvania. According to a statement of facts entered into the record by the government and agreed to by the defendant, Herschell sent money to the Philippines in February 2010 for a live, online sex show that included a 12-year-old minor female engaging in sexual activity. Herschell also admitted to possessing child pornography videos at his Pennsylvania residence.

This case was prosecuted by Assistant U.S. Attorney Jessica Lieber Smolar of the Western District of Pennsylvania and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). This case was investigated by ICE-HSI Pittsburgh and the ICE-HSI Attache’s Office in the Philippines with significant assistance from the National Bureau of Investigation (Philippines) and the Philippine National Police.

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 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.
 

WOMAN INDICTED FOR SETTING FIRE TO A HOME OF AN AFRICAN-AMERICAN FAMILY

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, May 23, 2013
Missouri Woman Indicted for Violating Civil Rights of Family by Setting Fire to Their Home

An Independence, Mo., woman was indicted by a federal grand jury today for violating the civil rights of an African-American family by setting fire to their residence, announced Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, and Tammy Dickinson, U.S. Attorney for the Western District of Missouri.


Victoria A. Cheek-Herrera, 33, of Independence, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.


Today’s indictment charges Cheek-Herrera with participating in a conspiracy to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color. It also charges Cheek-Herrera with committing a racially-motivated arson and with using fire during the commission of a felony.


According to the indictment, Cheek-Herrera conspired with others on June 26, 2008, to injure, oppress, threaten and intimidate Larry Davis, Stacey Little and the couple’s minor children in the free exercise of their constitutional right to occupy and rent their home in Independence, because of their race and color. Davis, Little and their children are all African American.


The indictment alleges that Cheek-Herrera discussed with others her desire to set fire to the home of Davis and Little, and that Cheek-Herrera and a co-conspirator drew a swastika and wrote the words "White Power" on the driveway to Davis and Little’s residence. Cheek-Herrera allegedly asked a juvenile acquaintance for gasoline then helped create a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Cheek-Herrera and a co-conspirator then allegedly lit the wick and threw the gasoline-filled bottle into the side of the house that Davis and Little were renting, which set the residence on fire.

If convicted, Cheek-Herrera faces a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of conspiracy against rights, a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of interference with housing rights, and a penalty of 10 years imprisonment consecutive to any other sentence and a fine of $250,000 for one charged count of using fire during the commission of a felony.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the FBI.

TEXAS FORMER POLICE OFFICER GOES TO PRISON FOR CIVIL RIGHTS VIOLATIONS

FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, May 23, 2013
Former Texas Police Officer Ordered to Federal Prison for Deprivation of Civil Rights Frank Carter, 43, a former officer with the Laredo, Texas, Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney Kenneth Magidson. Carter pleaded guilty on Thursday, March 7, 2013.

Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.

Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.

According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.

Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

This case was investigated by the LPD, FBI and Texas Rangers. Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax and Assistant U.S. Attorney Ruben R. Perez prosecuted the case.