FROM: U.S. MARSHALS SERVICE
Edward Holst, Supervisory Deputy United States Marshal
Middle District of Pennsylvania
U.S. Marshals Task Force Arrests U.S. Army Deserter in Lebanon County
Harrisburg, PA – Today, U.S. Marshal Martin J. Pane announced that the United States Marshals Service (USMS) Task Force arrested Captain Beniah Nwankwo – a 33-year old man in Lebanon County.
In June of 2009, Captain Nwankwo entered the United States Army as a Medical Physician Resident. On June 20, 2012, Captain Nwankwo went absent without leave (AWOL) from his unit located at the Brooke Army Medical Center, Fort Sam Houston, Texas. Captain Nwankwo remained AWOL until his arrest earlier today.
On July 23, 2012, the United States Army listed Captain Nwankwo as a deserter. An investigative lead was sent to the United States Marshals Service in the Middle District of Pennsylvania on February 18, 2014 with information that Nwankwo might be in south central Pennsylvania working as a physician.
On the morning of February 19, 2014, Deputy U.S. Marshals and Task Force Officers arrested Nwankwo without incident in the 400 block of East Lincoln Way in Myerstown. At the time of his arrest, Captain Nwankwo was working at the Stone Ridge Nursing and Retirement Center.
Captain Nwankwo will be seen by a Federal Magistrate Judge tomorrow morning, and awaits further transfer to the United States Army for final disposition.
United States Marshal Martin J. Pane stated, “Assisting the U.S. Military in bringing persons charged with desertion is a responsibility the U.S. Marshals Service bears. Persons charged as such deserve to have their day facing justice.”
The USMS worked jointly in this investigation with personnel from the York City Police Department, York County Sheriff’s Office, and the Pennsylvania State Police. These agencies participate in the U.S. Marshals Service Fugitive Task in the Middle District of Pennsylvania.
Friday, February 28, 2014
Thursday, February 27, 2014
TEXAS MAN CHARGED FOR ALLEGED ASSAULT BASED ON VICTIM'S SEXUAL ORIENTATION
FROM: U.S. JUSTICE DEPARTMENT
Thursday, February 20, 2014
Texas Man Charged with Hate Crime for Assault Based on Victim’s Sexual Orientation
Brice Johnson, 19, of Springtown, Texas, has been charged with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person in a federal criminal complaint, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI Dallas Division announced. The complaint was filed on Feb. 12, 2014, in the U.S. District Court in Fort Worth, Texas.
Johnson has been in state custody since his arrest on Sept. 10, 2013, and he made his initial appearance in federal court today.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s home. Based on ligature marks on A.K.’s wrists, it appears that he was bound with an electrical cord while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove the victim to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name and Johnson later stated that he was playing a prank on the victim because of his sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
A federal complaint is a written statement of the essential facts of the offenses being charged and must be made under oath before a magistrate judge. The defendant is presumed innocent until proven guilty. However, the statutory maximum penalty upon conviction for the offense as charged is 10 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment, and an indictment could include other charges that increase the maximum penalty.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Thursday, February 20, 2014
Texas Man Charged with Hate Crime for Assault Based on Victim’s Sexual Orientation
Brice Johnson, 19, of Springtown, Texas, has been charged with willfully causing bodily injury to a person because of the actual or perceived sexual orientation of that person in a federal criminal complaint, the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI Dallas Division announced. The complaint was filed on Feb. 12, 2014, in the U.S. District Court in Fort Worth, Texas.
Johnson has been in state custody since his arrest on Sept. 10, 2013, and he made his initial appearance in federal court today.
According to the affidavit filed with the criminal complaint, in the early morning hours of Sept. 2, 2013, the adult male victim, identified as A.K., connected with Johnson through the cell phone application for MeetMe.com. A.K.’s MeetMe.com page indicated he was a gay man, while Johnson’s page indicated he was not gay. During their communications, Johnson said that he was interested in engaging in sexual activity with A.K. He invited A.K. to his home, gave A.K. his cell phone number and address and they exchanged text messages planning their sexual activity.
After A.K. showed up at the house, Johnson severely beat him, then put him into the trunk of A.K.’s car and drove him to a friend’s home. Based on ligature marks on A.K.’s wrists, it appears that he was bound with an electrical cord while he was in the trunk of the car. Individuals at the home told Johnson to take A.K. to the hospital or they would call the police, and Johnson eventually drove the victim to an Emergency Medical Services station in Springtown.
A.K. was hospitalized for 10 days in Fort Worth, and he was diagnosed and treated for multiple skull and facial fractures. The investigation revealed that on the night of the incident, Johnson saved A.K.’s cell phone number using a gay slur as a contact name and Johnson later stated that he was playing a prank on the victim because of his sexual orientation, again using a gay slur when referring to A.K. According to the affidavit, A.K. said that he had no physical contact with Johnson prior to the attack.
A federal complaint is a written statement of the essential facts of the offenses being charged and must be made under oath before a magistrate judge. The defendant is presumed innocent until proven guilty. However, the statutory maximum penalty upon conviction for the offense as charged is 10 years in federal prison and a $250,000 fine. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment, and an indictment could include other charges that increase the maximum penalty.
The investigation is being conducted by the FBI, the Springtown Police Department and the Parker County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Cara Foos Pierce and Trial Attorney Saeed Mody of the Civil Rights Division.
Wednesday, February 26, 2014
GEORGIA REAL ESTATE INVESTOR PLEADS GUILTY TO BID RIGGING
FROM: U.S. JUSTICE DEPARTMENT
GEORGIA REAL ESTATE INVESTOR PLEADS GUILTY TO BID RIGGING AND FRAUD AT PUBLIC REAL ESTATE FORECLOSURE AUCTIONS
WASHINGTON — A Georgia real estate investor pleaded guilty today for her role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges were filed on Dec. 19, 2013, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Amy James. According to court documents, from as early as Dec. 6, 2005, until at least Jan. 23, 2009, James 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 DeKalb County, Ga. James was also charged with a conspiracy to commit mail fraud by fraudulently acquiring title to selected DeKalb County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Today’s guilty plea is the third in the Antitrust Division’s ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in the state of Georgia,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division remains committed to holding accountable individuals who conspire to defraud distressed homeowners and lenders in Georgia and elsewhere.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain real estate offered at DeKalb 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, the 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.
“Today's guilty plea reflects the FBI's commitment toward enforcement of federal antitrust laws that are designed to provide a level playing field among businesses and individuals as they engage in competition for commerce,” said Ricky Maxwell, Acting Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners regarding these enforcement matters and asks that the public contact their nearest FBI field office regarding such unfair and illegal business practices.”
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 a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime.
The investigation is being conducted by Antitrust Division attorneys in Atlanta and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 is 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.
GEORGIA REAL ESTATE INVESTOR PLEADS GUILTY TO BID RIGGING AND FRAUD AT PUBLIC REAL ESTATE FORECLOSURE AUCTIONS
WASHINGTON — A Georgia real estate investor pleaded guilty today for her role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Georgia, the Department of Justice announced.
Felony charges were filed on Dec. 19, 2013, in the U.S. District Court for the Northern District of Georgia in Atlanta, against Amy James. According to court documents, from as early as Dec. 6, 2005, until at least Jan. 23, 2009, James 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 DeKalb County, Ga. James was also charged with a conspiracy to commit mail fraud by fraudulently acquiring title to selected DeKalb County properties sold at public auctions and making and receiving payoffs and diverting money to co-conspirators that would have gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.
“Today’s guilty plea is the third in the Antitrust Division’s ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in the state of Georgia,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division remains committed to holding accountable individuals who conspire to defraud distressed homeowners and lenders in Georgia and elsewhere.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain real estate offered at DeKalb 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, the 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.
“Today's guilty plea reflects the FBI's commitment toward enforcement of federal antitrust laws that are designed to provide a level playing field among businesses and individuals as they engage in competition for commerce,” said Ricky Maxwell, Acting Special Agent in Charge of the FBI’s Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners regarding these enforcement matters and asks that the public contact their nearest FBI field office regarding such unfair and illegal business practices.”
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 a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A count of conspiracy to commit mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 for individuals. The fine may be increased to twice the gross gain the conspirators derived from the crime or twice the gross loss caused to the victims of the crime.
The investigation is being conducted by Antitrust Division attorneys in Atlanta and the FBI’s Atlanta Division, with the assistance of the Atlanta Field Office of the Housing and Urban Development Office of Inspector General and the U.S. Attorney’s Office for the Northern District of Georgia.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established 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 is 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.
Sunday, February 23, 2014
ARMENIAN POWER GANG ASSOCIATE CONVICTED FOR CONSPIRACY
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, February 12, 2014
Armenian Power Gang Associate Convicted for His Role in Racketeering Conspiracy
Andranik Aloyan, an associate of the Armenian Power gang, has been convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers who held accounts that were valued at more than $25 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Aloyan, 40, of Los Angeles, was convicted by a federal jury on Feb.11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft, and possession of a firearm by a convicted felon. According to evidence at trial, Aloyan possessed personal and financial information of more than 75 mostly elderly customers of banks throughout the country. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated fraudulent schemes of bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and laundering criminal proceeds. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
Aloyan was convicted after a five-day jury trial before U.S. District Judge Philip S. Gutierrez in the Central District of California. He is scheduled to be sentenced on June 2, 2014.
Five defendants remain pending trial in March 2014. Seventy-seven defendants have previously been convicted or pleaded guilty to the indictments.
The case is being investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the U.S. Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.
Wednesday, February 12, 2014
Armenian Power Gang Associate Convicted for His Role in Racketeering Conspiracy
Andranik Aloyan, an associate of the Armenian Power gang, has been convicted at trial for his role in a racketeering conspiracy that included stealing personal and financial information of elderly bank customers who held accounts that were valued at more than $25 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Andre Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Aloyan, 40, of Los Angeles, was convicted by a federal jury on Feb.11, 2014, of racketeering conspiracy, attempted bank fraud, access device fraud, four counts of aggravated identity theft, and possession of a firearm by a convicted felon. According to evidence at trial, Aloyan possessed personal and financial information of more than 75 mostly elderly customers of banks throughout the country. The combined value of the accounts for which Aloyan possessed account information exceeded $25 million.
Aloyan was among 90 individuals charged in two indictments, including a 140-count indictment in July 2011 charging 70 defendants with a variety of criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including Aloyan, of participating in the Armenian Power racketeering conspiracy that involved a host of illegal activities such as sophisticated fraudulent schemes of bank fraud, identity theft, debit-card skimming, manufacturing counterfeit checks and laundering criminal proceeds. In addition, defendants in the case were allegedly involved in a variety of violent crimes, such as kidnapping, extortion and firearms offenses, along with other crimes including drug trafficking and illegal gambling.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. Armenian Power has been designated under California state law as a criminal street gang and is believed to have more than 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions and witness intimidation to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
Aloyan was convicted after a five-day jury trial before U.S. District Judge Philip S. Gutierrez in the Central District of California. He is scheduled to be sentenced on June 2, 2014.
Five defendants remain pending trial in March 2014. Seventy-seven defendants have previously been convicted or pleaded guilty to the indictments.
The case is being investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the U.S. Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section.
Friday, February 21, 2014
NATIONAL GUARD SOLDIER PLEADS GUILTY IN BRIBERY SCHEME CASE
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, February 12, 2014
Army National Guard Soldier Pleads Guilty to Role in Scheme to Defraud U.S. Army National Guard Bureau
To Date, 20 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
A U.S. Army National Guard soldier pleaded guilty for her role in a bribery and fraud scheme that caused $30,000 in losses to the U.S. Army National Guard Bureau.
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 made the announcement.
Specialist Danielle Applin, 27, of Harker Heights, Texas, pleaded guilty to one count of conspiracy and one count of bribery. The case against Applin arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 27 individuals, 20 of whom have pleaded guilty.
According to court documents filed in the case, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Applin admitted that she paid an Army National Guard recruiter for the names and Social Security numbers of potential Army National Guard soldiers. Applin further admitted that she used the personal identifying information for these potential soldiers to claim that she was responsible for referring these potential soldiers to join the Army National Guard, when in fact she had not referred them. As a result of these fraudulent representations, Applin collected approximately $13,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Applin is scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on June 11, 2014.
This case is being investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Wednesday, February 12, 2014
Army National Guard Soldier Pleads Guilty to Role in Scheme to Defraud U.S. Army National Guard Bureau
To Date, 20 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
A U.S. Army National Guard soldier pleaded guilty for her role in a bribery and fraud scheme that caused $30,000 in losses to the U.S. Army National Guard Bureau.
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 made the announcement.
Specialist Danielle Applin, 27, of Harker Heights, Texas, pleaded guilty to one count of conspiracy and one count of bribery. The case against Applin arises from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 27 individuals, 20 of whom have pleaded guilty.
According to court documents filed in the case, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join the Army National Guard. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Applin admitted that she paid an Army National Guard recruiter for the names and Social Security numbers of potential Army National Guard soldiers. Applin further admitted that she used the personal identifying information for these potential soldiers to claim that she was responsible for referring these potential soldiers to join the Army National Guard, when in fact she had not referred them. As a result of these fraudulent representations, Applin collected approximately $13,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
Applin is scheduled to be sentenced before U.S. District Judge Lee H. Rosenthal in Houston on June 11, 2014.
This case is being investigated by the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.
Wednesday, February 19, 2014
U.S. NAVY SEAL IMPOSTER ARRESTED
FROM: U.S. MARSHALS SERVICE
U.S. Marshals Arrest Navy SEAL Imposter
February 14, 2014
Garfield, AR - The U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms and the Benton County Sheriff’s Office arrested Arthur James (AJ) Dicken of Garfield, Arkansas early Friday morning on charges stemming from firearm violations. Dicken was wanted by the Carson City, Nevada Sheriff's Office for Possession of a Firearm by a Person Convicted of a Felony.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
U.S. Marshals Arrest Navy SEAL Imposter
February 14, 2014
Garfield, AR - The U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms and the Benton County Sheriff’s Office arrested Arthur James (AJ) Dicken of Garfield, Arkansas early Friday morning on charges stemming from firearm violations. Dicken was wanted by the Carson City, Nevada Sheriff's Office for Possession of a Firearm by a Person Convicted of a Felony.
Dicken is alleged to have passed himself off as a highly decorated Navy SEAL, who had served in dozens of covert combat missions from the jungles of Vietnam to the caves of Afghanistan. Dicken, as it was later confirmed, had never served in the military. Dicken often wore the Navy SEAL trident insignia and loved to show off his numerous awards to include two Congressional Medal of Honor awards.
The charges stemmed from when Dicken operated a military style self-defense school in Carson City, Nevada. The training he provided included firearms and self-defense tactics. Dicken was exposed after he was profiled on both 20/20 and Inside Edition as the result of alleged criminal acts. Additional allegations include embezzlement and fraud where Dicken bilked investors out of more than $850,000 for a proposed new international security firm.
U.S. Marshals in Reno, Nevada, working closely with the Carson City, Nevada Sheriff’s Office, adopted the case and determined Dicken was likely in the Northwest Arkansas area. Deputy U.S. Marshals in Western Arkansas began working the case and determined Dicken was residing on Slate Gap Road in Garfield, Arkansas. After careful coordination with the Benton County Sheriff’s Office, Dicken was arrested without incident in the early morning hours of February 14, 2014, where he was found residing in small recreational vehicle. Dicken was transported to the Benton County Sheriff’s Office, where he awaits extradition to Nevada to face his pending charges.
Tuesday, February 18, 2014
FTC VOTES 4-0 TO APPROVE KIDSAFE SAFE HARBOR PROGRAM
FROM: FEDERAL TRADE COMMISSION
FTC Approves kidSAFE Safe Harbor Program
Following a public comment period, the Federal Trade Commission has approved the kidSAFE Seal Program as a safe harbor program under the Children’s Online Privacy Protection Act (COPPA) and the agency’s COPPA Rule.
The Commission’s COPPA Rule requires operators of online sites and services directed at children under the age of 13 to provide notice and obtain permission from a child’s parents before collecting personal information from that child. The COPPA safe harbor provision provides flexibility and promotes efficiency in complying with the Act by encouraging industry members or groups to develop their own COPPA oversight programs.
The COPPA law also directs the Commission to review and approve self-regulatory program guidelines that would serve as safe harbors. Website operators that participate in a COPPA safe harbor program will, in most circumstances, be subject to the review and disciplinary procedures provided in the safe harbor's guidelines in lieu of formal FTC investigation and law enforcement.
The Commission determined that the kidSAFE safe harbor program provides “the same or greater protections for children” as those contained in the COPPA Rule; effective mechanisms used to assess operators’ compliance; effective incentives for operators’ compliance with the guidelines; and an adequate means for resolving consumer complaints.
The Commission vote to approve the kidSAFE safe harbor application was 4-0.
FTC Approves kidSAFE Safe Harbor Program
Following a public comment period, the Federal Trade Commission has approved the kidSAFE Seal Program as a safe harbor program under the Children’s Online Privacy Protection Act (COPPA) and the agency’s COPPA Rule.
The Commission’s COPPA Rule requires operators of online sites and services directed at children under the age of 13 to provide notice and obtain permission from a child’s parents before collecting personal information from that child. The COPPA safe harbor provision provides flexibility and promotes efficiency in complying with the Act by encouraging industry members or groups to develop their own COPPA oversight programs.
The COPPA law also directs the Commission to review and approve self-regulatory program guidelines that would serve as safe harbors. Website operators that participate in a COPPA safe harbor program will, in most circumstances, be subject to the review and disciplinary procedures provided in the safe harbor's guidelines in lieu of formal FTC investigation and law enforcement.
The Commission determined that the kidSAFE safe harbor program provides “the same or greater protections for children” as those contained in the COPPA Rule; effective mechanisms used to assess operators’ compliance; effective incentives for operators’ compliance with the guidelines; and an adequate means for resolving consumer complaints.
The Commission vote to approve the kidSAFE safe harbor application was 4-0.
Monday, February 17, 2014
ACTING ASSISTANT AG WEST'S STATEMENTS ON COMBATING WILDLIFE TRAFFICKING
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, February 11, 2014
Statements of Associate Attorney General Tony West and Acting Assistant Attorney General of Enrd on the National Strategy for Combating Wildlife Trafficking
Today, the White House released the National Strategy for Combating Wildlife Trafficking. The Department of Justice, along with the Departments of State and the Interior, are co-chairs of the U.S. Task Force established by President Obama to lead the implementation of this strategy. On Thursday, Associate Attorney General Tony West will lead the U.S. Delegation’s participation at the London Conference on the Illegal Wildlife Trade.
"The Department is pleased to be a part of this interagency approach to combating illegal wildlife trafficking,” said Associate Attorney General West. “Record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions, has resulted in an explosion of illicit trade in wildlife in recent years, with the increasing involvement of organized transnational criminal syndicates. This trade undermines security, fuels corruption and contributes to the spread of disease, and it is decimating iconic animal populations. The National Strategy identifies priority areas for interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. government resources. Combating this problem will also require the shared understanding, commitment, and efforts of the world’s governments, intergovernmental organizations, NGOs, corporations, civil society and individuals. At this week’s London Conference on the Illegal Wildlife Trade, we hope other countries will join us in taking ambitious action to combat wildlife trafficking.”
The Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and Endangered Species Act, as well as related criminal statutes.
“The president has called upon DOJ and more than a dozen other federal agencies to combine forces to more effectively battle this pernicious trade, which is growing at an alarming rate and threatens the survival of protected species both at home and abroad,” said Acting Assistant Attorney General Robert Dreher for the Environment and Natural Resources Division. “The release of today’s National Strategy to Combat Wildlife Trafficking is a welcome next step in our longstanding efforts to protect threatened and endangered wildlife species. Strong enforcement is critical to stopping those who kill and traffic in these animals, whether on land or in the oceans. At the same time, the Strategy recognizes that enforcement alone is not enough to stop traffickers. We must also work to reduce demand for illegal wildlife products. This is not a fight that the United States can win alone; under the Strategy, we will build relationships with local and global partners who share our commitment to ending wildlife trafficking.”
The Environmental Crimes Section of the Environment and Natural Resources Division and U.S. Attorneys’ Offices around the country bring criminal prosecutions under these laws against, for example, people who are found smuggling wildlife and plants into the United States. There is a major worldwide black market for some endangered species or products made from them. The main federal agencies that the Division represents in this area are the Fish and Wildlife Service and the National Marine Fisheries Service.
Tuesday, February 11, 2014
Statements of Associate Attorney General Tony West and Acting Assistant Attorney General of Enrd on the National Strategy for Combating Wildlife Trafficking
Today, the White House released the National Strategy for Combating Wildlife Trafficking. The Department of Justice, along with the Departments of State and the Interior, are co-chairs of the U.S. Task Force established by President Obama to lead the implementation of this strategy. On Thursday, Associate Attorney General Tony West will lead the U.S. Delegation’s participation at the London Conference on the Illegal Wildlife Trade.
"The Department is pleased to be a part of this interagency approach to combating illegal wildlife trafficking,” said Associate Attorney General West. “Record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions, has resulted in an explosion of illicit trade in wildlife in recent years, with the increasing involvement of organized transnational criminal syndicates. This trade undermines security, fuels corruption and contributes to the spread of disease, and it is decimating iconic animal populations. The National Strategy identifies priority areas for interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. government resources. Combating this problem will also require the shared understanding, commitment, and efforts of the world’s governments, intergovernmental organizations, NGOs, corporations, civil society and individuals. At this week’s London Conference on the Illegal Wildlife Trade, we hope other countries will join us in taking ambitious action to combat wildlife trafficking.”
The Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and Endangered Species Act, as well as related criminal statutes.
“The president has called upon DOJ and more than a dozen other federal agencies to combine forces to more effectively battle this pernicious trade, which is growing at an alarming rate and threatens the survival of protected species both at home and abroad,” said Acting Assistant Attorney General Robert Dreher for the Environment and Natural Resources Division. “The release of today’s National Strategy to Combat Wildlife Trafficking is a welcome next step in our longstanding efforts to protect threatened and endangered wildlife species. Strong enforcement is critical to stopping those who kill and traffic in these animals, whether on land or in the oceans. At the same time, the Strategy recognizes that enforcement alone is not enough to stop traffickers. We must also work to reduce demand for illegal wildlife products. This is not a fight that the United States can win alone; under the Strategy, we will build relationships with local and global partners who share our commitment to ending wildlife trafficking.”
The Environmental Crimes Section of the Environment and Natural Resources Division and U.S. Attorneys’ Offices around the country bring criminal prosecutions under these laws against, for example, people who are found smuggling wildlife and plants into the United States. There is a major worldwide black market for some endangered species or products made from them. The main federal agencies that the Division represents in this area are the Fish and Wildlife Service and the National Marine Fisheries Service.
CASE INVOLVING ALLEGED BILLING FOR MEDICALLY UNNECESSARY TESTS SETTLED FOR $15.75 MILLION
FROM: U.S. JUSTICE DEPARTMENT
Monday, February 10, 2014
Government Settles False Claims Act Allegations Against Kentucky Addiction Clinic, Clinical Lab and Two Doctors for $15.75 Million
SelfRefind, a chain of addiction treatment clinics, PremierTox LLC, a clinical laboratory that performs urine testing and Drs. Bryan Wood and Robin Peavler, the owners of SelfRefind and PremierTox, have agreed to pay $15.75 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Kentucky’s Medicaid program for tests that were medically unnecessary, more expensive than those performed or billed in violation of the Stark Law, the Department of Justice announced today. SelfRefind provides addiction services to Medicare and Medicaid beneficiaries in 12 locations across Kentucky.
“Billing Medicare and Medicaid for lab tests that are not necessary contributes to the soaring costs of health care,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Providers will be investigated aggressively and held accountable for falsely billing federal health care programs.”
In December 2010, Wood and Peavler each purchased a 20 percent ownership stake in PremierTox, a new, independent clinical laboratory created to perform urine drug testing. The government alleged that, after Wood and Peavler became owners of PremierTox, SelfRefind began referring comprehensive urine drug screening tests to PremierTox that were unnecessary and many times more expensive than other suitable alternative tests. The government also alleged that PremierTox submitted to Medicare and Medicaid inflated claims that misidentified the class of drug being tested and billed for tests that were referred by SelfRefind in violation of the Stark law. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory.
“Federal health care programs are essential to many of our citizens,” said U.S. Attorney for the Eastern District of Kentucky Kerry B. Harvey. “We will not tolerate efforts by misguided providers to unfairly enrich themselves at the expense of these programs and the taxpaying public. This settlement underscores the continuing commitment of our office to use every available tool to protect these vital programs from false claims.”
This settlement is the result of a coordinated effort among the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Kentucky, the Kentucky Attorney General’s Office and the U.S. Department of Health and Human Services Office of Inspector General. Of the total $15.75 million settlement amount, the federal share is $13.01 million, and the remaining $2.74 million will be paid to the Commonwealth of Kentucky.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. 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 this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17.3 billion through False Claims Act cases, with more than $12.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Monday, February 10, 2014
Government Settles False Claims Act Allegations Against Kentucky Addiction Clinic, Clinical Lab and Two Doctors for $15.75 Million
SelfRefind, a chain of addiction treatment clinics, PremierTox LLC, a clinical laboratory that performs urine testing and Drs. Bryan Wood and Robin Peavler, the owners of SelfRefind and PremierTox, have agreed to pay $15.75 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare and Kentucky’s Medicaid program for tests that were medically unnecessary, more expensive than those performed or billed in violation of the Stark Law, the Department of Justice announced today. SelfRefind provides addiction services to Medicare and Medicaid beneficiaries in 12 locations across Kentucky.
“Billing Medicare and Medicaid for lab tests that are not necessary contributes to the soaring costs of health care,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Providers will be investigated aggressively and held accountable for falsely billing federal health care programs.”
In December 2010, Wood and Peavler each purchased a 20 percent ownership stake in PremierTox, a new, independent clinical laboratory created to perform urine drug testing. The government alleged that, after Wood and Peavler became owners of PremierTox, SelfRefind began referring comprehensive urine drug screening tests to PremierTox that were unnecessary and many times more expensive than other suitable alternative tests. The government also alleged that PremierTox submitted to Medicare and Medicaid inflated claims that misidentified the class of drug being tested and billed for tests that were referred by SelfRefind in violation of the Stark law. The Stark Law forbids a laboratory from billing Medicare and Medicaid for certain services referred by physicians that have a financial relationship with the laboratory.
“Federal health care programs are essential to many of our citizens,” said U.S. Attorney for the Eastern District of Kentucky Kerry B. Harvey. “We will not tolerate efforts by misguided providers to unfairly enrich themselves at the expense of these programs and the taxpaying public. This settlement underscores the continuing commitment of our office to use every available tool to protect these vital programs from false claims.”
This settlement is the result of a coordinated effort among the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Kentucky, the Kentucky Attorney General’s Office and the U.S. Department of Health and Human Services Office of Inspector General. Of the total $15.75 million settlement amount, the federal share is $13.01 million, and the remaining $2.74 million will be paid to the Commonwealth of Kentucky.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. 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 this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17.3 billion through False Claims Act cases, with more than $12.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims settled by this agreement are allegations only; there has been no determination of liability.
Saturday, February 15, 2014
MURDER GETAWAY DRIVER SENTENCED TO 40 YEARS IN PRISON
FROM: JUSTICE DEPARTMENT
Friday, February 14, 2014
Getaway Driver in Murder of Rhode Island Gas Station Manager Sentenced to 40 Years in Prison
Jose A. Santiago, 36, of Springfield, Mass., was sentenced yesterday in Providence, R.I., to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, R.I., gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on Dec. 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on Feb. 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
Friday, February 14, 2014
Getaway Driver in Murder of Rhode Island Gas Station Manager Sentenced to 40 Years in Prison
Jose A. Santiago, 36, of Springfield, Mass., was sentenced yesterday in Providence, R.I., to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, R.I., gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on Dec. 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on Feb. 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.
TWO MINNESOTANS SENTENCED FOR ROLES IN SEX TRAFFICKING CONSPIRACY
FROM: JUSTICE DEPARTMENT
Tuesday, February 11, 2014
Minnesota Man and Woman Sentenced for Participating in a Sex Trafficking Conspiracy
Today, the Justice Department announced that Andre James Hertzog, 29, was sentenced to serve 10 years in prison and eight years of supervised release for participating in a sex trafficking conspiracy. Hertzog’s co-defendant, Nicole Bramer, 29, was sentenced to serve 21 months in prison, to be followed by five years of supervised release. In addition, the defendants were each ordered to pay $6100 in restitution to the victims of the offense. Hertzog and Bramer are both from St. Paul, Minn.
“The defendants preyed upon vulnerable young women by a variety of deplorable means,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice is committed to prosecuting those who sexually exploit vulnerable women for financial benefit.”
“Working with victims of sex trafficking to attain a measure of justice is a serious responsibility,” said Special Agent in Charge Christopher Warrener for the FBI’s Minneapolis Field Office. “These sentences are the culmination of investigators and prosecutors effectively communicating with victims.”
Bramer pleaded guilty to participating in the sex trafficking conspiracy on May 29, 2013, and Hertzog pleaded guilty on July 2, 2013. During his plea hearing, Hertzog admitted that, from April 2011 to August 2012, he and Bramer engaged in a scheme to target and recruit young, vulnerable women, one of whom was a minor, and to compel them into performing commercial sex acts for their own financial gain. Hertzog and Bramer used coercive tactics, including physical violence and psychological coercion, to isolate the young women, control them and cause them to perform acts of prostitution. As part of the trafficking scheme, the defendants transported the victims across state lines for the purpose of having them engage in prostitution, and the defendants routinely advertised the sexual services of the young women on the internet website Backpage.com.
The case was investigated by the FBI and prosecuted jointly by Special Assistant U.S. Attorney Mark Kappelhoff for the District of Minnesota, Trial Attorney Christine M. Siscaretti, and former Trial Attorney Amanda Gregory for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Tuesday, February 11, 2014
Minnesota Man and Woman Sentenced for Participating in a Sex Trafficking Conspiracy
Today, the Justice Department announced that Andre James Hertzog, 29, was sentenced to serve 10 years in prison and eight years of supervised release for participating in a sex trafficking conspiracy. Hertzog’s co-defendant, Nicole Bramer, 29, was sentenced to serve 21 months in prison, to be followed by five years of supervised release. In addition, the defendants were each ordered to pay $6100 in restitution to the victims of the offense. Hertzog and Bramer are both from St. Paul, Minn.
“The defendants preyed upon vulnerable young women by a variety of deplorable means,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice is committed to prosecuting those who sexually exploit vulnerable women for financial benefit.”
“Working with victims of sex trafficking to attain a measure of justice is a serious responsibility,” said Special Agent in Charge Christopher Warrener for the FBI’s Minneapolis Field Office. “These sentences are the culmination of investigators and prosecutors effectively communicating with victims.”
Bramer pleaded guilty to participating in the sex trafficking conspiracy on May 29, 2013, and Hertzog pleaded guilty on July 2, 2013. During his plea hearing, Hertzog admitted that, from April 2011 to August 2012, he and Bramer engaged in a scheme to target and recruit young, vulnerable women, one of whom was a minor, and to compel them into performing commercial sex acts for their own financial gain. Hertzog and Bramer used coercive tactics, including physical violence and psychological coercion, to isolate the young women, control them and cause them to perform acts of prostitution. As part of the trafficking scheme, the defendants transported the victims across state lines for the purpose of having them engage in prostitution, and the defendants routinely advertised the sexual services of the young women on the internet website Backpage.com.
The case was investigated by the FBI and prosecuted jointly by Special Assistant U.S. Attorney Mark Kappelhoff for the District of Minnesota, Trial Attorney Christine M. Siscaretti, and former Trial Attorney Amanda Gregory for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Thursday, February 13, 2014
DOD PROCUREMENT OFFICIAL SENTENCED FOR ROLE IN BRIBERY, FRAUD SCHEME
FROM: JUSTICE DEPARTMENT
Wednesday, January 29, 2014
Department of Defense Procurement Official Sentenced for His Role in Contract Bribery Scheme
A Utah man was sentenced to serve 24 months in prison for his role in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Oct. 24, 2011, Jose Mendez, 50, of Farr West, Utah, pleaded guilty to conspiracy to commit bribery and procurement fraud, bribery, and procurement fraud. Mendez was charged in an October 2011 indictment, along with Sylvester Zugrav, 71, and Maria Zugrav, 67, owners of Atlas International Trading Company in Sarasota, Fla. The Zugravs were sentenced on Jan. 8, 2014.
According to court documents, while Mendez worked as a procurement program manager for the U.S. Air Force at Hill Air Force Base in Ogden, Utah, he conspired to enrich himself and others by exchanging money and other things of value for non-public information and favorable treatment in the procurement process. Court records state that Mendez was offered approximately $1,240,500 in payments and other things of value throughout the course of the conspiracy. Mendez admitted that from approximately 2008 to August 2011, he received more than $185,000 in payments and other things of value, with promises of additional bribe payments if Atlas were to receive future contracts from the U.S. government.
In return for the bribes offered and paid, Mendez admitted he gave Atlas and the Zugravs favorable treatment during the procurement process, including disclosing government budget and competitor bid information, which helped Atlas and the Zugravs in winning contracts.
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case was prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah.
Wednesday, January 29, 2014
Department of Defense Procurement Official Sentenced for His Role in Contract Bribery Scheme
A Utah man was sentenced to serve 24 months in prison for his role in a bribery and fraud scheme involving federal procurement contracts, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David B. Barlow of the District of Utah.
On Oct. 24, 2011, Jose Mendez, 50, of Farr West, Utah, pleaded guilty to conspiracy to commit bribery and procurement fraud, bribery, and procurement fraud. Mendez was charged in an October 2011 indictment, along with Sylvester Zugrav, 71, and Maria Zugrav, 67, owners of Atlas International Trading Company in Sarasota, Fla. The Zugravs were sentenced on Jan. 8, 2014.
According to court documents, while Mendez worked as a procurement program manager for the U.S. Air Force at Hill Air Force Base in Ogden, Utah, he conspired to enrich himself and others by exchanging money and other things of value for non-public information and favorable treatment in the procurement process. Court records state that Mendez was offered approximately $1,240,500 in payments and other things of value throughout the course of the conspiracy. Mendez admitted that from approximately 2008 to August 2011, he received more than $185,000 in payments and other things of value, with promises of additional bribe payments if Atlas were to receive future contracts from the U.S. government.
In return for the bribes offered and paid, Mendez admitted he gave Atlas and the Zugravs favorable treatment during the procurement process, including disclosing government budget and competitor bid information, which helped Atlas and the Zugravs in winning contracts.
The case was investigated by the FBI and the Air Force Office of Special Investigations. The case was prosecuted by Trial Attorneys Marquest J. Meeks and Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Carlos A. Esqueda of the District of Utah.
Wednesday, February 12, 2014
4 ADOPTION SERVICES EMPLOYEES CHARGED WITH CONSPIRACY TO DEFRAUD U.S. GOVERNMENT
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, February 11, 2014
Four Employees of Adoption Services Provider Charged with Conspiracy to Defraud the United States in Connection with Ethiopia Operations
Four current and former employees of International Adoption Guides Inc. (IAG), an adoption services provider, have been indicted by a grand jury in South Carolina for allegedly conspiring to defraud the United States in connection with IAG’s adoption services in Ethiopia. IAG is a South Carolina company that identified children in Ethiopia for adoption and arranged for their adoption by U.S.-based parents.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney William N. Nettles of the District of South Carolina and Assistant Secretary Gregory B. Starr of the Department of State’s Bureau of Diplomatic Security made the announcement.
“The defendants are accused of obtaining adoption decrees and U.S. visas by submitting fraudulent adoption contracts signed by orphanages that never cared for or housed the children, thus undermining the very laws that are designed to protect the children and families involved,” said Acting Assistant Attorney General Raman. “As today’s indictments show, the Justice Department, alongside its partners both here and abroad, will respond vigorously to these criminal schemes and will act to protect the many families and children who rely on the integrity of the adoption process.”
“The Bureau of Diplomatic Security uses its global presence to vigorously investigate any fraud related to the acquisition of U.S. visas,” said Assistant Secretary Starr. “The Department of State’s Bureaus of Consular Affairs and Diplomatic Security are firmly committed to working with the U.S. Department of Justice to investigate and bring to justice people who victimize children and families by abusing inter-country adoption system and bribe officials to facilitate their actions.”
The international program director and coordinator for IAG, James Harding, 53, of Lawrenceville, Ga., was arrested today in Georgia. Alisa Bivens, 42, of Gastonia, N.C., who oversaw the Ethiopian operations from the United States, is scheduled to make an appearance at a later date in U.S. District Court in Charleston, S.C. The company’s executive director, Mary Mooney, 53, of Belmont, N.C., was apprehended in Belize by Belizean authorities and transported to the United States. Haile Mekonnen, age unknown, an Ethiopian national who ran IAG’s operations on the ground in Ethiopia, was also charged in the indictment.
According to the indictment, the defendants allegedly engaged in a five-year conspiracy to violate laws relating to the adoption of Ethiopian children by U.S. parents. The scheme involved, among other things, paying orphanages to “sign off” on contracts of adoption with the adopting parents as if the children had been raised by those orphanages — even though the children had never resided in those orphanages and had not been cared for or raised there. These orphanages could not, therefore, properly offer these children up for adoption. In some instances, the children resided with a parent or relative.
As part of the charged conspiracy, the defendants then allegedly submitted or caused to be submitted these fraudulent contracts of adoption to Ethiopian courts in order to secure adoption decrees, and submitted or caused to be submitted the fraudulent contracts of adoption and the fraudulently procured adoption decrees to the U.S. Embassy in Ethiopia in order to obtain U.S. visas for the children to travel to the United States to be with their new families. The indictment also charges that the defendants’ scheme involved paying bribes to an Ethiopian government official and agreeing to create counterfeit U.S. Customs and Immigration Service forms that were to be submitted to the Ethiopian government.
The charge of conspiring to defraud the United States carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The prosecution is being conducted by Assistant United States Attorney Jamie Schoen of the District of South Carolina and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.
Tuesday, February 11, 2014
Four Employees of Adoption Services Provider Charged with Conspiracy to Defraud the United States in Connection with Ethiopia Operations
Four current and former employees of International Adoption Guides Inc. (IAG), an adoption services provider, have been indicted by a grand jury in South Carolina for allegedly conspiring to defraud the United States in connection with IAG’s adoption services in Ethiopia. IAG is a South Carolina company that identified children in Ethiopia for adoption and arranged for their adoption by U.S.-based parents.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney William N. Nettles of the District of South Carolina and Assistant Secretary Gregory B. Starr of the Department of State’s Bureau of Diplomatic Security made the announcement.
“The defendants are accused of obtaining adoption decrees and U.S. visas by submitting fraudulent adoption contracts signed by orphanages that never cared for or housed the children, thus undermining the very laws that are designed to protect the children and families involved,” said Acting Assistant Attorney General Raman. “As today’s indictments show, the Justice Department, alongside its partners both here and abroad, will respond vigorously to these criminal schemes and will act to protect the many families and children who rely on the integrity of the adoption process.”
“The Bureau of Diplomatic Security uses its global presence to vigorously investigate any fraud related to the acquisition of U.S. visas,” said Assistant Secretary Starr. “The Department of State’s Bureaus of Consular Affairs and Diplomatic Security are firmly committed to working with the U.S. Department of Justice to investigate and bring to justice people who victimize children and families by abusing inter-country adoption system and bribe officials to facilitate their actions.”
The international program director and coordinator for IAG, James Harding, 53, of Lawrenceville, Ga., was arrested today in Georgia. Alisa Bivens, 42, of Gastonia, N.C., who oversaw the Ethiopian operations from the United States, is scheduled to make an appearance at a later date in U.S. District Court in Charleston, S.C. The company’s executive director, Mary Mooney, 53, of Belmont, N.C., was apprehended in Belize by Belizean authorities and transported to the United States. Haile Mekonnen, age unknown, an Ethiopian national who ran IAG’s operations on the ground in Ethiopia, was also charged in the indictment.
According to the indictment, the defendants allegedly engaged in a five-year conspiracy to violate laws relating to the adoption of Ethiopian children by U.S. parents. The scheme involved, among other things, paying orphanages to “sign off” on contracts of adoption with the adopting parents as if the children had been raised by those orphanages — even though the children had never resided in those orphanages and had not been cared for or raised there. These orphanages could not, therefore, properly offer these children up for adoption. In some instances, the children resided with a parent or relative.
As part of the charged conspiracy, the defendants then allegedly submitted or caused to be submitted these fraudulent contracts of adoption to Ethiopian courts in order to secure adoption decrees, and submitted or caused to be submitted the fraudulent contracts of adoption and the fraudulently procured adoption decrees to the U.S. Embassy in Ethiopia in order to obtain U.S. visas for the children to travel to the United States to be with their new families. The indictment also charges that the defendants’ scheme involved paying bribes to an Ethiopian government official and agreeing to create counterfeit U.S. Customs and Immigration Service forms that were to be submitted to the Ethiopian government.
The charge of conspiring to defraud the United States carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The prosecution is being conducted by Assistant United States Attorney Jamie Schoen of the District of South Carolina and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.
Sunday, February 9, 2014
FTC SUPPORTS DATA SECURITY LEGISLATION
Testifying Before the Senate Judiciary Committee, FTC Reiterates its Support for Data Security Legislation
The Federal Trade Commission testified before Congress today on the agency’s ongoing efforts to promote data security, and reiterated its support for enactment of a strong federal data security and breach notification law.
Testifying on behalf of the Commission before the Senate Judiciary Committee, FTC Chairwoman Edith Ramirez outlined the agency’s efforts to promote data security through civil law enforcement, education, and policy initiatives. The testimony notes that businesses are collecting more personal information about consumers than ever before, and that rising reports of data breaches show that these systems are susceptible to being compromised.
“Never has the need for legislation been greater. With reports of data breaches on the rise, and with a significant number of Americans suffering from identity theft, Congress needs to act,” the testimony states.
The testimony points out that, according to estimates by the Bureau of Justice Statistics, 16.6 million persons – or 7 percent of all U.S. residents ages 16 and older – were victims of identity theft in 2012.
The testimony explains that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
The testimony stresses the Commission’s bipartisan support for data security legislation that would enhance existing laws and strengthen the agency’s existing authority. The Commission supports legislation, for example, that would give the FTC the ability to seek civil penalties to help ensure FTC enforcement actions have an appropriate deterrent effect. Under current laws, the FTC only has the authority to seek civil penalties for data security violations involving companies that fail to protect children’s information provided online in violation of the COPPA Rule or credit report information in violation of the FCRA. The Commission also recommends data security legislation that would provide the agency with jurisdiction over non-profits, which have been the source of a substantial number of breaches
The Commission also recommends that Congress enact a federal law that would require companies, in appropriate circumstances, to notify consumers when there is a security breach, the testimony states. This would help consumers mitigate likely harm from the misuse of their data. Although most states have breach notification laws, a strong and consistent, national requirement would ensure that all consumers are protected.
In addition, the Commission promotes better data security practices through consumer education and business guidance, the testimony notes. On the consumer education front, the Commission recently posted information for consumers who may have been affected by the recent Target and other breaches, providing steps they should take to protect themselves. It also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses – and especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
The Federal Trade Commission testified before Congress today on the agency’s ongoing efforts to promote data security, and reiterated its support for enactment of a strong federal data security and breach notification law.
Testifying on behalf of the Commission before the Senate Judiciary Committee, FTC Chairwoman Edith Ramirez outlined the agency’s efforts to promote data security through civil law enforcement, education, and policy initiatives. The testimony notes that businesses are collecting more personal information about consumers than ever before, and that rising reports of data breaches show that these systems are susceptible to being compromised.
“Never has the need for legislation been greater. With reports of data breaches on the rise, and with a significant number of Americans suffering from identity theft, Congress needs to act,” the testimony states.
The testimony points out that, according to estimates by the Bureau of Justice Statistics, 16.6 million persons – or 7 percent of all U.S. residents ages 16 and older – were victims of identity theft in 2012.
The testimony explains that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
The testimony stresses the Commission’s bipartisan support for data security legislation that would enhance existing laws and strengthen the agency’s existing authority. The Commission supports legislation, for example, that would give the FTC the ability to seek civil penalties to help ensure FTC enforcement actions have an appropriate deterrent effect. Under current laws, the FTC only has the authority to seek civil penalties for data security violations involving companies that fail to protect children’s information provided online in violation of the COPPA Rule or credit report information in violation of the FCRA. The Commission also recommends data security legislation that would provide the agency with jurisdiction over non-profits, which have been the source of a substantial number of breaches
The Commission also recommends that Congress enact a federal law that would require companies, in appropriate circumstances, to notify consumers when there is a security breach, the testimony states. This would help consumers mitigate likely harm from the misuse of their data. Although most states have breach notification laws, a strong and consistent, national requirement would ensure that all consumers are protected.
In addition, the Commission promotes better data security practices through consumer education and business guidance, the testimony notes. On the consumer education front, the Commission recently posted information for consumers who may have been affected by the recent Target and other breaches, providing steps they should take to protect themselves. It also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses – and especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
Saturday, February 8, 2014
CORRECTIONS OFFICER MOONLIGHTED AS ARMED SECURITY FOR DRUG DEALS
FROM: JUSTICE DEPARTMENT
Tuesday, January 28, 2014
Former Corrections Officer Sentenced for His Role in Providing Armed Security for Drug Transactions
A former Puerto Rico Department of Corrections officer was sentenced today to serve 811 months in prison for his role in providing armed security for three drug transactions.
Acting Assistant Attorney General Mythili Raman 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 Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Bernis Gonzalez Miranda, 27, was sentenced by U.S. District Judge Juan Perez Gimenez of the District of Puerto Rico. He was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
In April 2012, a federal jury in San Juan found Gonzalez Miranda guilty of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, three counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and three counts of possessing a firearm in furtherance of a drug transaction. According to the evidence presented in court, Gonzalez Miranda provided security for what he believed were illegal cocaine deals on June 15, July 2, and July 7, 2010. In fact, the purported drug transactions were part of an undercover FBI operation. On those days, the defendant’s actions included providing armed protection for the deals and escorting the buyer into and out of the transaction.
In return for the security he provided, Gonzalez Miranda received a cash payment of $2,000 for each transaction, and at sentencing he was ordered to forfeit the $6,000 he received.
The case was investigated by the FBI. The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Tuesday, January 28, 2014
Former Corrections Officer Sentenced for His Role in Providing Armed Security for Drug Transactions
A former Puerto Rico Department of Corrections officer was sentenced today to serve 811 months in prison for his role in providing armed security for three drug transactions.
Acting Assistant Attorney General Mythili Raman 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 Carlos Cases of the FBI’s San Juan Field Office made the announcement.
Bernis Gonzalez Miranda, 27, was sentenced by U.S. District Judge Juan Perez Gimenez of the District of Puerto Rico. He was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals, as part of the FBI undercover operation known as Guard Shack.
In April 2012, a federal jury in San Juan found Gonzalez Miranda guilty of three counts of conspiracy to possess with intent to distribute more than five kilograms of cocaine, three counts of attempting to possess with the intent to distribute more than five kilograms of cocaine and three counts of possessing a firearm in furtherance of a drug transaction. According to the evidence presented in court, Gonzalez Miranda provided security for what he believed were illegal cocaine deals on June 15, July 2, and July 7, 2010. In fact, the purported drug transactions were part of an undercover FBI operation. On those days, the defendant’s actions included providing armed protection for the deals and escorting the buyer into and out of the transaction.
In return for the security he provided, Gonzalez Miranda received a cash payment of $2,000 for each transaction, and at sentencing he was ordered to forfeit the $6,000 he received.
The case was investigated by the FBI. The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Friday, February 7, 2014
FTC TESTIFIES ON IDENTITY THEFT
FROM: FEDERAL TRADE COMMISSION
Testifying Before the House Energy and Commerce Committee, Subcommittee on Commerce, Manufacturing and Trade, FTC Reiterates its Support for Data Security Legislation
The Federal Trade Commission testified before Congress for the third time in as many days today, emphasizing the agency’s ongoing efforts to promote data security, and reiterating its unanimous support for enactment of a strong federal data security and breach notification law.
Testifying on behalf of the Commission before the House Energy and Commerce Committee’s Subcommittee on Commerce, Manufacturing and Trade, FTC Chairwoman Edith Ramirez outlined the agency’s efforts to promote data security through civil law enforcement, education, and policy initiatives. The testimony notes that businesses are collecting more personal information about consumers than ever before, and that rising reports of data breaches show that these systems are susceptible to being compromised.
“Never has the need for legislation been greater. With reports of data breaches on the rise, and with a significant number of Americans suffering from identity theft, Congress needs to act,” the testimony states.
The testimony points out that, according to estimates by the Bureau of Justice Statistics, 16.6 million persons – or 7 percent of all U.S. residents ages 16 and older – were victims of identity theft in 2012.
The testimony explains that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
The testimony stresses the Commission’s bipartisan support for data security legislation that would enhance existing laws and strengthen the agency’s existing authority. The Commission supports legislation, for example, that would give the FTC the ability to seek civil penalties to help ensure FTC enforcement actions have an appropriate deterrent effect. Under current laws, the FTC only has the authority to seek civil penalties for data security violations involving companies that fail to protect children’s information provided online in violation of the COPPA Rule or credit report information in violation of the FCRA. The Commission also recommends data security legislation that would provide the agency with jurisdiction over non-profits, which have been the source of a substantial number of breaches
The Commission also recommends that Congress enact a federal law that would require companies, in appropriate circumstances, to notify consumers when there is a security breach, the testimony states. This would help consumers mitigate likely harm from the misuse of their data. Although most states have breach notification laws, a strong and consistent, national requirement would ensure that all consumers are protected.
In addition, the Commission promotes better data security practices through consumer education and business guidance, the testimony notes. On the consumer education front, the Commission recently posted information for consumers who may have been affected by the recent Target and other breaches, providing steps they should take to protect themselves. It also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses – and especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Testifying Before the House Energy and Commerce Committee, Subcommittee on Commerce, Manufacturing and Trade, FTC Reiterates its Support for Data Security Legislation
The Federal Trade Commission testified before Congress for the third time in as many days today, emphasizing the agency’s ongoing efforts to promote data security, and reiterating its unanimous support for enactment of a strong federal data security and breach notification law.
Testifying on behalf of the Commission before the House Energy and Commerce Committee’s Subcommittee on Commerce, Manufacturing and Trade, FTC Chairwoman Edith Ramirez outlined the agency’s efforts to promote data security through civil law enforcement, education, and policy initiatives. The testimony notes that businesses are collecting more personal information about consumers than ever before, and that rising reports of data breaches show that these systems are susceptible to being compromised.
“Never has the need for legislation been greater. With reports of data breaches on the rise, and with a significant number of Americans suffering from identity theft, Congress needs to act,” the testimony states.
The testimony points out that, according to estimates by the Bureau of Justice Statistics, 16.6 million persons – or 7 percent of all U.S. residents ages 16 and older – were victims of identity theft in 2012.
The testimony explains that, to promote data security, the FTC enforces several statutes and rules that impose obligations upon businesses that collect and maintain consumer data. These include the proscription against unfair or deceptive acts or practices in Section 5 of the FTC Act; the Gramm-Leach-Bliley Act; the Fair Credit Reporting Act; and the Children’s Online Privacy Protection Act.
The testimony stresses the Commission’s bipartisan support for data security legislation that would enhance existing laws and strengthen the agency’s existing authority. The Commission supports legislation, for example, that would give the FTC the ability to seek civil penalties to help ensure FTC enforcement actions have an appropriate deterrent effect. Under current laws, the FTC only has the authority to seek civil penalties for data security violations involving companies that fail to protect children’s information provided online in violation of the COPPA Rule or credit report information in violation of the FCRA. The Commission also recommends data security legislation that would provide the agency with jurisdiction over non-profits, which have been the source of a substantial number of breaches
The Commission also recommends that Congress enact a federal law that would require companies, in appropriate circumstances, to notify consumers when there is a security breach, the testimony states. This would help consumers mitigate likely harm from the misuse of their data. Although most states have breach notification laws, a strong and consistent, national requirement would ensure that all consumers are protected.
In addition, the Commission promotes better data security practices through consumer education and business guidance, the testimony notes. On the consumer education front, the Commission recently posted information for consumers who may have been affected by the recent Target and other breaches, providing steps they should take to protect themselves. It also widely disseminates a business guide on data security, along with an online tutorial, that are designed to provide diverse businesses – and especially small businesses – with practical, concrete advice as they develop data security programs and plans for their companies.
The Commission vote approving the testimony and its inclusion in the formal record was 4-0.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Wednesday, February 5, 2014
ALMIGHTY IMPERIAL GANGSTER MEMBER CONVICTED OF MURDER
FROM: JUSTICE DEPARTMENT
Monday, January 27, 2014
Almighty Imperial Gangster Member Convicted of Murder and Violent Crime Offenses
Six Additional Gang Members Have Recently Pleaded Guilty for Their Roles in Murders and Attempted Murders
Richard Reyes, a member of the Almighty Imperial Gangsters, has been convicted at trial for his role in violent acts as a member of a criminal street gang that operated in Northwest Indiana and is accused of engaging in drug trafficking and acts of violence, including murder, attempted murder and robbery.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
Reyes, 41, of Hammond, Ind., was convicted by a federal jury on Jan. 24, 2014, for his role in the murder of rival Latin King gang member Rene Alonzo on Sept. 16, 2007. According to evidence at trial, Reyes fatally shot Alonzo outside of the U.S. Bar in East Chicago. Reyes was convicted of conspiracy to participate in racketeering activity, conspiracy to distribute cocaine and marijuana, and murder in aid of racketeering activity, which each carry a maximum penalty of life in prison; and murder resulting from the use and carrying of a firearm during a crime of violence, which carries a minimum mandatory penalty of 10 years in prison consecutive to any other sentence and a maximum of life in prison.
Reyes was among 24 individuals charged in this investigation, and 22 have pleaded guilty, including six men who pleaded guilty in January 2014. Those charged are accused of having participated collectively in 14 murders and eight attempted murders from 2002 to 2012 as part of their criminal enterprise. Defendants are presumed innocent unless and until proven guilty at trial.
On Jan. 13, 2014, Salvador Chavez, 34, pleaded guilty before U.S. District Chief Judge Philip P. Simon in the Northern District of Indiana to conspiracy to participate in racketeering activity.
On Jan. 10, 2014, Jason Medina, aka Burns, 30; Edward Raye Serna, 34; and Armando Jose Velasquez, aka Money, age 26, all of East Chicago, Ind., pleaded guilty before Chief Judge Simon. Medina pleaded guilty to conspiracy to participate in racketeering activity; murder resulting from the use and carrying of a firearm during a crime of violence; and attempted murder in aid of racketeering activity, which carries a maximum penalty of 10 years in prison. Medina admitted that he used a firearm to murder Guadalupe Trevino on July 24, 2005, and attempted to murder a victim on June 6, 2011. Sentencing for Medina is scheduled for June 19, 2014. Edward Serna pleaded guilty to conspiracy to participate in racketeering activity and attempted murder in aid of racketeering activity and admitted to his participation in the same attempted murder on June 6, 2011. Sentencing for Edward Serna is also set for June 19, 2014. Velasquez pleaded guilty to conspiracy to participate in racketeering activity, murder resulting from the use and carrying of a firearm during a crime of violence, and attempted murder in aid of racketeering activity. Velasquez admitted he used a firearm on Dec. 3, 2011, when he attempted to murder a victim in aid of racketeering activity. Sentencing for Velasquez is scheduled for June 6, 2014.
On Jan. 3, 2014, Julian Guillermo Serna, aka Big Ju, 24, and Vincent Garza, aka Chente, 22, pleaded guilty before Chief Judge Simon. Julian Serna pleaded guilty to conspiracy to participate in racketeering activity and to murder resulting from the use and carrying of a firearm during a crime of violence. Julian Serna admitted that he used a firearm to murder Mario Soriano on March 25, 2008. Sentencing for Julian Serna is scheduled for July 25, 2014. Garza pleaded guilty to conspiracy to participate in racketeering activity and two counts of homicide in aid of racketeering activity, which each carry a maximum penalty of life in prison. Garza admitted that he participated in the murder of Michael Sessum and Miguel Mejias on June 3, 2008. Sentencing for Garza is scheduled for July 24, 2104.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area. The case is being prosecuted by Assistant United States Attorney David J. Nozick of the United States Attorney’s Office for the Northern District of Indiana and Trial Attorney Bruce Hegyi of the Criminal Division’s Capital Case Section.
Monday, January 27, 2014
Almighty Imperial Gangster Member Convicted of Murder and Violent Crime Offenses
Six Additional Gang Members Have Recently Pleaded Guilty for Their Roles in Murders and Attempted Murders
Richard Reyes, a member of the Almighty Imperial Gangsters, has been convicted at trial for his role in violent acts as a member of a criminal street gang that operated in Northwest Indiana and is accused of engaging in drug trafficking and acts of violence, including murder, attempted murder and robbery.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana made the announcement.
Reyes, 41, of Hammond, Ind., was convicted by a federal jury on Jan. 24, 2014, for his role in the murder of rival Latin King gang member Rene Alonzo on Sept. 16, 2007. According to evidence at trial, Reyes fatally shot Alonzo outside of the U.S. Bar in East Chicago. Reyes was convicted of conspiracy to participate in racketeering activity, conspiracy to distribute cocaine and marijuana, and murder in aid of racketeering activity, which each carry a maximum penalty of life in prison; and murder resulting from the use and carrying of a firearm during a crime of violence, which carries a minimum mandatory penalty of 10 years in prison consecutive to any other sentence and a maximum of life in prison.
Reyes was among 24 individuals charged in this investigation, and 22 have pleaded guilty, including six men who pleaded guilty in January 2014. Those charged are accused of having participated collectively in 14 murders and eight attempted murders from 2002 to 2012 as part of their criminal enterprise. Defendants are presumed innocent unless and until proven guilty at trial.
On Jan. 13, 2014, Salvador Chavez, 34, pleaded guilty before U.S. District Chief Judge Philip P. Simon in the Northern District of Indiana to conspiracy to participate in racketeering activity.
On Jan. 10, 2014, Jason Medina, aka Burns, 30; Edward Raye Serna, 34; and Armando Jose Velasquez, aka Money, age 26, all of East Chicago, Ind., pleaded guilty before Chief Judge Simon. Medina pleaded guilty to conspiracy to participate in racketeering activity; murder resulting from the use and carrying of a firearm during a crime of violence; and attempted murder in aid of racketeering activity, which carries a maximum penalty of 10 years in prison. Medina admitted that he used a firearm to murder Guadalupe Trevino on July 24, 2005, and attempted to murder a victim on June 6, 2011. Sentencing for Medina is scheduled for June 19, 2014. Edward Serna pleaded guilty to conspiracy to participate in racketeering activity and attempted murder in aid of racketeering activity and admitted to his participation in the same attempted murder on June 6, 2011. Sentencing for Edward Serna is also set for June 19, 2014. Velasquez pleaded guilty to conspiracy to participate in racketeering activity, murder resulting from the use and carrying of a firearm during a crime of violence, and attempted murder in aid of racketeering activity. Velasquez admitted he used a firearm on Dec. 3, 2011, when he attempted to murder a victim in aid of racketeering activity. Sentencing for Velasquez is scheduled for June 6, 2014.
On Jan. 3, 2014, Julian Guillermo Serna, aka Big Ju, 24, and Vincent Garza, aka Chente, 22, pleaded guilty before Chief Judge Simon. Julian Serna pleaded guilty to conspiracy to participate in racketeering activity and to murder resulting from the use and carrying of a firearm during a crime of violence. Julian Serna admitted that he used a firearm to murder Mario Soriano on March 25, 2008. Sentencing for Julian Serna is scheduled for July 25, 2014. Garza pleaded guilty to conspiracy to participate in racketeering activity and two counts of homicide in aid of racketeering activity, which each carry a maximum penalty of life in prison. Garza admitted that he participated in the murder of Michael Sessum and Miguel Mejias on June 3, 2008. Sentencing for Garza is scheduled for July 24, 2104.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County High Intensity Drug Trafficking Area. The case is being prosecuted by Assistant United States Attorney David J. Nozick of the United States Attorney’s Office for the Northern District of Indiana and Trial Attorney Bruce Hegyi of the Criminal Division’s Capital Case Section.
Sunday, February 2, 2014
U.S. MARSHALS APPREHEND FOREIGN HOMICIDE SUSPECT
FROM: U.S. MARSHALS SERVICE
Foreign Fugitive Apprehended in Small Town Georgia
Atlanta, GA – The U.S. Marshals from Northern District of Georgia, Gainesville office, with the assistance of Gainesville Police Department, arrested a foreign fugitive yesterday who is charged with aggravated homicide in San Luis Potosi, Mexico.
Marcos Trejo Villeda, aka Marco Antonio Trejo Villeda, 33, has been a fugitive since 2011 when he was indicted for the murder of two individuals in the town of Xilitla. On July 3, 2008, Trejo Villeda attended a party where he began arguing with Tito Herrera Trejo. As he was leaving the party Herrera Trejo threw a beer can at him. Trejo Villeda did not respond but continued to leave the party. Shortly thereafter, Trejo Villeda returned and without a word, fired a gun at Herrera Trejo and Meregildo Rojo Martinez, shooting them in the head, killing both victims. Trejo Villeda then fled from the party.
On October 22, 2013, a provisional arrest warrant was received by the U.S. Marshals in Houston, Texas. Marshals in Houston located Trejo Villeda in Gainesville through a 2011 arrest by Hall County Sheriff’s Office for DUI. He was sentenced and released. Trejo Villeda believed he was in the clear because in September 2013 he renewed his driver’s license and vehicle registration under his legal name.
The Marshals in Houston sent the lead to the Gainesville sub-office. The deputies quickly started working the case. After conducting surveillance at the two addresses in Gainesville, they soon realized that this case would be more than just a discrete locate. The Assistant United States Attorney in Atlanta obtained an arrest warrant on January 15, 2014.
On Tuesday, deputies conducted surveillance at the home address and located two vehicles registered to Trejo Villeda with an apartment address. Yesterday morning, while conducting surveillance at the apartment, deputies observed the truck registered to Trejo Villeda leave and drive to the home. Trejo Villeda parked the truck, entered a van and left to a nearby Racetrak gas station, where he was arrested by the Marshals Service with the assistance of Gainesville Police Department.
Trejo Villeda is currently awaiting extradition to Mexico to answer the allegations in the indictment.
Foreign Fugitive Apprehended in Small Town Georgia
Atlanta, GA – The U.S. Marshals from Northern District of Georgia, Gainesville office, with the assistance of Gainesville Police Department, arrested a foreign fugitive yesterday who is charged with aggravated homicide in San Luis Potosi, Mexico.
Marcos Trejo Villeda, aka Marco Antonio Trejo Villeda, 33, has been a fugitive since 2011 when he was indicted for the murder of two individuals in the town of Xilitla. On July 3, 2008, Trejo Villeda attended a party where he began arguing with Tito Herrera Trejo. As he was leaving the party Herrera Trejo threw a beer can at him. Trejo Villeda did not respond but continued to leave the party. Shortly thereafter, Trejo Villeda returned and without a word, fired a gun at Herrera Trejo and Meregildo Rojo Martinez, shooting them in the head, killing both victims. Trejo Villeda then fled from the party.
On October 22, 2013, a provisional arrest warrant was received by the U.S. Marshals in Houston, Texas. Marshals in Houston located Trejo Villeda in Gainesville through a 2011 arrest by Hall County Sheriff’s Office for DUI. He was sentenced and released. Trejo Villeda believed he was in the clear because in September 2013 he renewed his driver’s license and vehicle registration under his legal name.
The Marshals in Houston sent the lead to the Gainesville sub-office. The deputies quickly started working the case. After conducting surveillance at the two addresses in Gainesville, they soon realized that this case would be more than just a discrete locate. The Assistant United States Attorney in Atlanta obtained an arrest warrant on January 15, 2014.
On Tuesday, deputies conducted surveillance at the home address and located two vehicles registered to Trejo Villeda with an apartment address. Yesterday morning, while conducting surveillance at the apartment, deputies observed the truck registered to Trejo Villeda leave and drive to the home. Trejo Villeda parked the truck, entered a van and left to a nearby Racetrak gas station, where he was arrested by the Marshals Service with the assistance of Gainesville Police Department.
Trejo Villeda is currently awaiting extradition to Mexico to answer the allegations in the indictment.
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