LAS VEGAS GANG MEMBER PLEADS GUILTY TO RACKETEERING, DRUG CHARGES

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, July 29, 2014

Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug Charges

On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty today to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.

“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden.   “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”

Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014.   Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million.   The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify.   Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.

According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence.   The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area.   The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.”   On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets.   The guard approached Tillman and several other Playboy Bloods and told them to leave the property.   An argument ensued, and the guard rode away on his bicycle to get help.   One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him.   Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life.   Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf.   Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine.   Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.

The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.

SEC, U.S. ATTORNEY, FBI ANNOUNCE CHARGES AGAINST 5 IN ALLEGED STOCK MANIPULATION CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission, the U.S. Attorney for the District of Massachusetts, and the Federal Bureau of Investigation today announced charges against five individuals whose attempt to manipulate shares of Boston-based Amogear Inc. was caught by an FBI undercover operation.

According to the SEC and criminal cases filed in federal court in Boston, the defendants knew that Amogear was a shell company without any real operations, but schemed to boost its price and profit by selling their own shares.  What the parties didn’t know was that the FBI controlled Amogear and used it to obtain evidence of attempted stock manipulation.  To protect investors, the SEC suspended trading in Amogear’s securities on February 10, as the attempted stock manipulation was underway.

The charges follow a series of cases since December 2011 in which the SEC suspended trading in seven companies and criminal authorities charged 22 individuals with using kickbacks and other schemes to trigger investments in microcap stocks, convicting 18 to date.  Small “microcap” companies often trade for pennies per share and many do not file financial reports with the SEC.  The fact that investors often cannot find accurate information about microcap companies can make the microcap stock market a fertile ground for fraud and abuse.

Andrew Ceresney, director of the SEC’s Enforcement Division, said: “This case is an outstanding example of law enforcement creativity and cooperation trumping microcap fraudsters.  By obtaining control of a shell company, using it to collect evidence of a manipulation scheme, and suspending trading before the scheme succeeded, we have protected investors from harm.”

“These defendants brazenly attempted to manipulate Amogear’s stock,” said Paul G. Levenson, director of the SEC’s Boston Regional Office.  “It didn’t occur to them that the FBI and SEC were a step ahead of them.”

“As is clear from the combined efforts of the U.S. Attorney’s Office, the FBI, and the SEC, market manipulation will not be tolerated,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “The prosecution of corporate and securities fraud is a top priority of the Department of Justice and a top priority for this Office.  As is demonstrated by the recent charges, we will continue to develop new techniques to detect and prosecute those engaged in market abuse.”

“Fund representatives, CEOs, traders, fund managers, equities analysts, lawyers and publicists should take note that Boston FBI agents purposefully designed multiple undercover operations aimed directly at rooting out market manipulation and insider trading.  As the scope and design of our undercover operations become well-known, no one should think that future undercover operations will be the same as prior ones because in this instance the FBI took control of a publicly traded company making it nearly impossible to discover,” said Vince Lisi, Special Agent in Charge of the FBI’s Boston Division.

SEC Boston Regional Office Director Paul G. Levenson, U.S. Attorney Carmen M. Ortiz, and FBI Special Agent in Charge Vincent B. Lisi  announced the charges.  The criminal case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of the Economic Crimes Unit and SEC attorneys Eric Forni and Andrew Palid, who were appointed Special Assistant U.S. Attorneys.  The SEC’s investigation was led by Michele T. Perillo, and Martin F. Healey will handle the SEC’s litigation.

POLICE OFFICIALS, DEPUTY INDICTED ON CHARGES OF EXCESSIVE FORCE AND OBSTRUCTION OF JUSTICE

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

Georgia Police Officials and Former Deputy Indicted by Federal Grand Jury on Charges of Excessive Force and Obstruction of Justice

The Department of Justice announced today that a federal grand jury in the U.S. District Court for the Middle District of Georgia returned indictments charging four law enforcement officers with civil rights violations and obstruction of justice in connection with an incident that occurred at Bainbridge BikeFest in 2012.  A seven count indictment was returned charging former Grady County Sheriff’s Deputy Wiley Griffin IV and Decatur County Sheriff’s Office Captain Elizabeth Croley with violating an individual’s civil rights.  Additionally, Croley, Decatur County Sheriff’s Deputy Christopher Kines and former Decatur County Sheriff’s Deputy Robert Wade Umbach were charged with obstructive conduct relating to the investigation into the civil rights violation.  

The indictment charges that Griffin used excessive force during the arrest of a civilian, A.P., at the Bainbridge BikeFest motorcycle event in Bainbridge, Georgia, on Sept. 15 to 16, 2012, thereby violating A.P.’s civil rights.  As a result of the assault, A.P. sustained injuries to his face, including cuts, bleeding, swelling and bruising.

The indictment also charges Croley, Kines and Umbach with writing false reports to cover up the assault.  In addition, Kines and Umbach were charged with making misleading statements to the FBI to obstruct the agency’s investigation into the use of force against A.P.

In addition, the indictment charges Croley with violating A.P.’s constitutional right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s office, and, in turn, from A.P.’s criminal defense attorney, during prosecution of A.P. arising from the arrest at BikeFest.

The civil rights charge against Griffin carries a statutory maximum sentence of 10 years in prison.  The civil rights charge against Croley carries a statutory maximum sentence of one year in prison.  Additionally, Croley, Kines and Umbach face a statutory maximum sentence of 20 years in prison for their falsification of reports, and Umbach and Kines face a statutory maximum sentence of 20 years in prison for making misleading statements to obstruct justice.
 
This case is being investigated by the FBI and is being prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.

An indictment is a formal accusation of criminal conduct, not evidence of guilt.  The defendants are presumed innocent unless and until proven guilty.

MEMBERS OF ARYAN BROTHERHOOD OF TEXAS PLEAD GUILTY TO RACKETEERING

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, July 18, 2014

Aryan Brotherhood Members Plead Guilty to Federal Racketeering Charges

Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Kenneth Michael Hancock of Dallas, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.   James Erik Sharron, aka “Flounder,” of Houston, Texas, pleaded guilty to the same charge on July 14, 2014.

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

By pleading guilty to racketeering charges, Hancock and Sharron admitted to being members of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system.   The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.   According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism.   Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise.   Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member.   Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Hancock and Sharron are both scheduled to be sentenced on Oct. 8, 2014.   Each faces a maximum penalty of life in prison.

Hancock and Sharron are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.   To date, 34 defendants have pleaded guilty.

This Organized Crime Drug Enforcement Task Force   case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

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

FORMER UNIVERSITY DEAN SENTENCED FOR POSSESSION AND DISTRIBUTION OF CHILD PORNOGRAPHY

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, July 14, 2014

Former University of Virginia Dean Sentenced on Child Pornography Charges

Michael G. Morris Will Spend 106 Months in Prison

A Crozet, Virginia man who previously pleaded guilty to child pornography charges was sentenced today in the U.S. District Court for the Western District of Virginia in Charlottesville for distribution and possession of child pornography.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Heaphy for the Western District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement.

Michael G. Morris, who used the screen name “funshooter2006,” age 50, of Crozet, Virginia was indicted in 2013 and pleaded guilty on April 21, 2014 to two counts of distributing or receiving images of child pornography and one count of possessing child pornography.   During the offenses charged, Morris was employed as an associate dean at the University of Virginia’s McIntyre School of Commerce.   Morris was sentenced today before U.S. District Judge Norman K. Moon to 106 months in prison followed by 20 years of supervised release.

“Michael Morris was an associate dean at one of our country’s top universities, but instead of inspiring young minds academically, he was sharing and viewing pornographic images of young children,” said Assistant Attorney General Caldwell.   “Today’s sentence demonstrates that those who trade and possess child pornography, no matter what positions of authority they may hold, will face the consequences for fueling an industry that causes immense damage to children.”

“Each and every time defendants like Mr. Morris download and share images depicting child pornography the children in those images suffer re-victimization,” U.S. Attorney Timothy J. Heaphy said today.  “The Department will continue to use all available resources to seek out those who trade in this lurid material and bring them to justice.”

“The Richmond-based Child Exploitation Task Force will pursue and bring to justice anyone who produces, distributes, or possesses child pornography,” said Special Agent Lee.  “The Morris case is an example of the FBI’s commitment to Virginia’s communities to keep our kids safe.  I would like to thank the United States Attorney’s Office for achieving a positive conclusion to this case, the Charlottesville Police Department for their commitment to the Task Force, and the Task Force officer and FBI agent who led the case for their outstanding investigative work.”

According to evidence presented during the plea hearing and in court documents, a law enforcement officer, acting in an undercover capacity, successfully downloaded videos depicting minors engaged in sexually explicit conduct that Morris had made available to him on a publicly available file-sharing site on Jan. 6, 2012 and March 19, 2013.   Morris also admitted that on Nov. 6, 2013, he possessed images or videos depicting prepubescent minors who the defendant knew had not attained 12 years of age.   Investigators recovered computers and other items that contained child pornography during a search of Morris’s home.

The case was investigated by the FBI, with the assistance of the Charlottesville Police Department and the Department of Justice’s High Technology Investigative Unit.   The case was prosecuted by Trial Attorney Herbrina Sanders of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Nancy Healey of the Western District of Virginia.

MAN PLEADS GUILTY TO DAMAGING PROPERTY AND EQUIPMENT AT A PLANNED PARENTHOOD FACILITY

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, July 1, 2014

Indiana Man Sentenced for Damaging Property and Equipment at Planned Parenthood

Benjamin David Curell, 28, of Ellettsville, Indiana, pleaded guilty in federal court to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.  The plea stems from an incident that occurred during the early morning hours on April 11, 2013, when Curell broke into the Bloomington, Indiana, Planned Parenthood Clinic and caused extensive damage to the clinic building and its equipment.

Curell was sentenced by Magistrate Judge Mark Dinsmore to three years probation.  Curell was also ordered to pay more than $22,000 in restitution.  Curell’s federal sentence is to run concurrently with a sentence he received in state court on a felony burglary charge stemming from the same incident.

At the time of his arrest, Curell admitted to police that he broke into the clinic and damaged equipment with a hatchet because the clinic performed abortion services, and because Curell wanted to shut down the clinic.

“The Justice Department will not tolerate violent interference with the lawful work of reproductive health clinics,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Department of Justice remains committed to protecting our communities from such violent acts and will continue to aggressively prosecute these acts.”

The case was investigated by the Bloomington Resident Agency of the FBI and the Bloomington Police Department.  The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Sharon Jackson for the Southern District of Indiana.

DEPUTY AG COLE TOURS TEXAS BORDER

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

Readout of Deputy Attorney General’s Tour of Border Station in McAllen, Texas
Deputy Attorney General James Cole made a return trip today to the U.S. Customs and Border Protection’s McAllen Station and processing facility to discuss steps the Department of Justice is taking to help address the influx of migrants crossing the southwest border.

Chief Patrol Agent Kevin Oaks and Deputy Chief Patrol Agent Raul Ortiz gave the Deputy Attorney General a tour of the facility and a briefing on the operations at McAllen.  McAllen staff discussed the numbers of migrants that are arriving each day, including the numbers of unaccompanied children, families and adults; and the reasons, including violence in Central American countries, that many are giving for making the dangerous trek to the U.S. border.  Cole also viewed the station’s processing facility, where migrants who have arrived in the past few days are housed.

During his talk with McAllen staff, Cole took the opportunity to highlight the Justice Department’s commitment to prioritizing adjudication of cases that fall into the following four groups: unaccompanied children who recently crossed the border; families who recently crossed the border and are held in detention; families who recently crossed the border but are on “alternatives to detention;” and other detained cases, including border crossers and significant public safety threats.  He also emphasized that the department’s intention to reassign immigration judges in immigration courts around the country from their current dockets to hear the cases of individuals falling in these four groups.

Cole noted that the department is also seeking new funding for as many as 40 more immigration judges and to provide technical assistance to Central American countries in identifying and dismantling smuggling operations that take advantage of migrants seeking to enter the U.S.  He also noted that the department has requested funding to provide technical assistance in combating transnational crime and the threat posed by criminal gangs.  Cole reiterated that the department continues to focus on investigating and prosecuting smugglers who exploit and victimize vulnerable migrants, including children, in partnership with DHS and foreign governments. The discussion with McAllen staff also included a productive exchange of ideas on strategic ways to combat smuggling.

The Deputy Attorney General was impressed by the professionalism and dedication of the McAllen staff and thanked them for their service.  Cole last visited the facility in November 2013.

Remarks at Combating Wildlife Trafficking Event

http://www.state.gov/secretary/remarks/2014/07/228933.htm

4 CONVICTED IN MIAMI FOR ROLES IN $20 MILLION HEALTH CARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, July 10, 2014

Four Patient Recruiters Plead Guilty in Miami for Roles in $20 Million Health Care Fraud Scheme

Four patient recruiters pleaded guilty in connection with a $20 million health care fraud scheme involving Trust Care Health Services Inc. (Trust Care), a defunct home health care company.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.

At a hearing today before U.S. District Judge Darrin P. Gayles of the Southern District of Florida, Estrella Perez, 57, and Solchys Perez, 34, both pleaded guilty to conspiracy to commit health care fraud, and Abigail Aguila, 40, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks.   Sentencing for all three defendants is set for Sept. 18, 2014 in front of Judge Gayles.   On June 17, 2014, another co-defendant, Monica Macias, 52, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida.  Sentencing for Macias is set for Sept. 10, 2014 before Judge Gayles.

According to court documents, the defendants worked as patient recruiters for the owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries.   Trust Care was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.

The defendants recruited patients for Trust Care and solicited and received kickbacks and bribes from the owners and operators of Trust Care in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients.   These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.

Estrella Perez and Solchys Perez also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for providing home health and therapy prescriptions, plans of care, and medical certifications for their recruited patients.   Co-conspirators at Trust Care then used these prescriptions, plans of care and medical certifications to fraudulently bill the Medicare program for home health care services.

From approximately March 2007 through at least January 2010, Trust Care submitted more than $20 million in claims for home health services.   Medicare paid Trust Care more than $15 million for these fraudulent claims.

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.   This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

2 MEMBERS OF ARYAN BROTHERHOOD OF TEXAS PLEAD GUILTY TO RACKETEERING CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, July 9, 2014

Aryan Brotherhood Members Plead Guilty to Federal Racketeering Charges

Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Steven Worthey, of San Antonio, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.  James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.

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

By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.

According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system.   The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.   According to the superseding indictment, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism.   Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise.   Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member.   Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014.   Each faces a maximum penalty of life in prison.

Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.   To date, 32 defendants have pleaded guilty.

This Organized Crime Drug Enforcement Task Force   case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

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

ASSOCIATE ORGANIZED CRIME FAMILY CONVICTED IN ILLEGAL TAKEOVER/LOOTING OF PUBLIC COMPANY

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, July 3, 2014

Member and Associate of Lucchese Organized Crime Family Convicted of Racketeering and Other Crimes

Attorney and CEO Also Convicted in Illegal Takeover and Looting of Publicly Traded Company

A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted today of racketeering and other charges after a six-month trial.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman for the District of New Jersey made the announcement.

Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice.  Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.

“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly-traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” said Assistant Attorney General Caldwell.   “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”

“Today, four people stand convicted  for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney
Fishman said.  “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”

The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court.   The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden.  It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.

Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.

According to documents filed in this case and the evidence at trial:

Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family.    In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Ga., Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr.  As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.

In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas.  Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.

Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel approximately $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements.  The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.

In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive.  This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG.  At the time of his death, he was employed by FPFG as a member of its “compliance team.” During the conversation, Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.”  Scarfo replied: “Oh boy.  Yeah, Sal, you wanna know something though?  That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing.  You know what I mean?  That is so like Enron-ish.  You know what I mean?   Kenneth Lay, he bailed out and took a heart attack."

Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife.  As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.

Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014, and for both Maxwell brothers, Oct. 23, 2014.

This case was investigated by the FBI, Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives.   The case was prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey’s Organized Crime/Gangs Unit.

MAN SENTENCED FOR DAMAGING PROPERTY AT PLANNED PARENTHOOD

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, July 1, 2014

Indiana Man Sentenced for Damaging Property and Equipment at Planned Parenthood

Benjamin David Curell, 28, of Ellettsville, Indiana, pleaded guilty in federal court today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.  The plea stems from an incident that occurred during the early morning hours on April 11, 2013, when Curell broke into the Bloomington, Indiana, Planned Parenthood Clinic and caused extensive damage to the clinic building and its equipment.

Curell was sentenced by Magistrate Judge Mark Dinsmore to three years probation.  Curell was also ordered to pay more than $22,000 in restitution.  Curell’s federal sentence is to run concurrently with a sentence he received in state court on a felony burglary charge stemming from the same incident.

At the time of his arrest, Curell admitted to police that he broke into the clinic and damaged equipment with a hatchet because the clinic performed abortion services, and because Curell wanted to shut down the clinic.

“The Justice Department will not tolerate violent interference with the lawful work of reproductive health clinics,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Department of Justice remains committed to protecting our communities from such violent acts and will continue to aggressively prosecute these acts.”

The case was investigated by the Bloomington Resident Agency of the FBI and the Bloomington Police Department.  The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Sharon Jackson for the Southern District of Indiana.

MAN SENTENCED TO 33 MONTHS IN PRISON FOR THREAT TO BOMB SYNAGOGUE

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, June 30, 2014

Houston Man Sentenced for Threatening to Bomb Synagogue

Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston.  The announcement is being made jointly by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas.  Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.

On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat.  As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device.  Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.  
As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.

The FBI investigated the case with the assistance of the Houston Police Department.  Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo are prosecuting in cooperation with the Harris County District Attorney’s Office.

MAN CONVICTED OF ASSAULTING AND TORTURING 5 YEAR OLD SENTENCED TO LIFE IN PRISON FOR MURDER

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, June 27, 2014

Former Army Soldier Sentenced to Life in Prison for Murder of His Five Year Old Daughter

Army Soldier Naeem Williams, 34, will receive a life sentence for murdering his five-year-old daughter, Talia Williams, after a federal jury in Honolulu, Hawaii, reported today it was unable to reach a unanimous decision on whether to impose the death penalty.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Florence T. Nakakuni of the District of Hawaii made the announcement.

The jury previously found Williams guilty of killing his daughter on July 16, 2005, by engaging in child abuse that included beating and punching her at the family’s residence on Wheeler Army Airfield in Honolulu.  Williams was also convicted of participating, along with his wife, Delilah Williams, in a pattern and practice of assault and torture from December, 2004, until July 16, 2005, that resulted in Talia’s death.  In addition, Williams was convicted of conspiring to engage in a pattern and practice of assault and torture leading to death, obstructing justice, and making false statements to Army Criminal Investigation Division agents on the night of his arrest in July 2005.

The evidence presented at trial demonstrated that Naeem Williams and his wife Delilah Williams beat Talia Williams almost daily.  Naeem Williams testified that the abuse was aimed at disciplining his daughter as a result of bathroom accidents and was exacerbated due to frustrations he was experiencing in his marriage.  The evidence indicated the defendant’s physical abuse included punching Talia repeatedly, commanding her to eat her own feces, and using duct tape to bind her from head to toe to a bed post where she was whipped with a belt.  In the hours preceding Talia’s death, Williams struck a frontal blow to Talia and her head slammed backwards against the floor.  Talia then appeared to have a seizure.

This case was investigated by the FBI and the Army Criminal Investigation Division.  The case was prosecuted by Trial Attorney Steve Mellin from the Capital Case Section of the Justice Department’s Criminal Division and Assistant U.S. Attorney Darren Ching.

FORMER BAIL BONDSMAN ALLEGEDLY STOLE IDENTIES FOR TAX REFUND FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, June 27, 2014

Former Bail Bondsman Indicted in Stolen Identity Tax Refund Fraud Scheme
Roderick Neal, of Dothan, Alabama, was indicted for stolen identity refund fraud crimes, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.  Neal was charged with conspiracy, wire fraud and aggravated identity theft.  

According to the indictment, Neal worked as a bail bondsman in Dothan, and stole personal identifying information.  Neal provided this information to another individual who, in turn, provided the stolen identities to Ivory Bolen, and she used those identities to file fraudulent tax returns with the Internal Revenue Service (IRS) claiming refunds.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, Neal faces a statutory maximum sentence of 10 years in prison for conspiracy, a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory sentence of two years in prison for the aggravated identity theft counts.

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