3 ABT GANG MEMBERS PLEAD GUILTY TO RACKETEERING

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, November 21, 2013
Three Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering Charges

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

 Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.

William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013, and Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013.   Each defendant pleaded guilty to one count of conspiracy to participate in racketeering activity.  

According to court documents, Shipman, Maynard, Harris 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.   The defendants and numerous other 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, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and to committing multiple acts of violence and/or narcotics trafficking on behalf of the ABT.

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 enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise.   Members, and oftentimes associates, are 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.

At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.

Shipman, Maynard and Harris are three of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise.   To date, 17 defendants have pleaded guilty.

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

ALABAMA MAN USED COMPUTER, THREE CELL PHONES IN IDENTITY THEFT AND TAX REFUND FRAUD SCHEME

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, November 14, 2013
Alabama Man Sentenced to Federal Prison for Role in Identity Theft and Tax Refund Scheme

Kevin Jackson of Montgomery, Ala., was sentenced to serve 102 months in federal prison and three years of supervised release, along with an order to pay $150,840.49 in restitution, for his role in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.  Jackson had previously pled guilty to access device fraud and to aggravated identity theft.

According to court documents, Jackson possessed a storage locker in which law enforcement authorities found a computer, three cellular telephones, at least 500 names and Social Security numbers of identity theft victims and at least 70 prepaid debit cards, all tied to a scheme to obtain fraudulent federal tax refunds by causing federal tax returns to be filed in the names of stolen identities.

The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Secret Service, along with assistance from the Montgomery Police Department.  Trial Attorneys Justin Gelfand and Jason Poole of the department’s Tax Division prosecuted the case.

DOJ FILES SEXUAL HARASSMENT LAWSUIT AGAINST OWNERS AND MANAGER OF APARTMENTS

FROM:  U.S. JUSTICE DEPARTMENT
Monday, September 30, 2013
Justice Department Files Sexual Harassment Lawsuit in Michigan Against Owners and Property Manager of Alger Meadow Apartments

The Justice Department announced it has filed a lawsuit today in the federal district court for the Western District of Michigan against the owners and manager of Alger Meadow Apartments in Grand Rapids, Mich., alleging that the manager has sexually harassed tenants in violation of the Fair Housing Act.

The lawsuit alleges that Dale VanderVennen, manager at Alger Meadow Apartments, has sexually harassed female residents at the complex.   The complaint alleges that such harassment has included unwelcome sexual advances, touching female residents without their consent, entering the apartments of female residents without permission and notice, granting and denying tangible housing benefits based on sex; and taking adverse actions against female tenants when they refused his sexual advances.

"No person should be subject to sexual harassment in their own home, especially when that harassment comes from someone who holds the key to the front door," said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.

“This office is committed to addressing civil rights violations and enforcing federal civil rights law” said Patrick A. Miles, Jr. U.S. Attorney for the Western District of Michigan.  “Women should not face this type of discrimination and harassment when making housing choices.”


The suit also names as defendants the owners and/or managers of Alger Meadow Apartments:  Jack VanderVennen, Linda VanderVennen, DDJ Rental Real Estate LLC, Calcutta Associates LLC, and LLJ LLC .

The suit seeks monetary damages to compensate the victims, a civil penalty and a court order barring future discrimination.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.

THREE MEMBERS AND ASSOCIATE OF ALMIGHTY LATIN KING/QUEEN NATION SENTENCED TO PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, August 15, 2013

Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to Prison

Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.

The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.

U.S. District Court Judge James A. Beaty Jr. sentenced the following defendants:

• Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
• Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
• Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
• Ernesto Wilson, 55, of New York City, aka “Yayo,” was sentenced on Aug. 13, 2013, to serve 204 months in prison and three years of supervised release.

Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.

Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.

ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.

According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002.  From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking.  The proceeds of this criminal activity helped to finance the gang’s illegal activities.  ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.

Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings.  Cornell also provided firearms to members of ALKQN to commit several of these crimes.

ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013.  Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.

The investigation was a joint operation conducted by the FBI’s Greensboro Field Office, Greensboro Police Department and the Guilford County Sheriff’s Office.

The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.

ALABAMA STATE EMPLOYEE SENTENCED FOR STOLEN IDENTITY REFUND FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, August 14, 2013

Alabama State Employee Sentenced to Prison for Stolen Identity Refund Fraud
Chequlia Motley of Montgomery, Ala., was sentenced yesterday to serve 36 months in prison for conspiracy and aggravated identity theft,  announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr.  Motley pleaded guilty to those charges in May 2013.
 
According to Motley’s plea agreement, she was a former state employee who stole identities from state databases and sold them to co-conspirators.  As evidence presented at the sentencing hearing showed, Motley had previously worked for the Alabama State Employees’ Insurance Board and stole the personal information of over 100 state workers and their family members from the databases maintained by the board.  She provided this information to Veronica Temple, Yolanda Moses and Barbara Murry, who used the stolen identities to file false tax returns that fraudulently requested tax refunds from the IRS.  Temple, Moses and Murry were previously convicted and each sentenced in February to 57 months in prison.  
 
In addition to the prison sentence, Motley was ordered to pay $179,946 in restitution to the Internal Revenue Service (IRS).

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

TWO MEN INDICTED FOR THREATENING TO RETALIATE AGAINST A WITNESS

FROM:  U.S. DEPARTMENT OF JUSTICE 

Friday, July 26, 2013
Two Louisiana Men Indicted for Threatening to Retaliate Against a Witness in a Federal Tax Trial

The Justice Department announced today that a federal grand jury in Baton Rouge, La., returned an indictment yesterday charging Anthony Williams and Bobby Riley with conspiring to threaten to retaliate against a witness in a federal trial, threatening to retaliate against a witness in a federal trial and making false statements to federal agents.

According to the indictment, Williams and Riley, both residents of Baton Rouge, threatened to cause bodily injury to a witness who testified in the federal trial of United States v. Angela Myers.  The indictment alleges that Williams and Riley made a threat via Instagram with the intent to retaliate against the witness for his testimony in the Myers trial.  In March 2013, Myers was convicted by a jury of twenty-one federal felonies in a stolen identity tax refund fraud prosecution.  The indictment also alleges that Williams and Riley made false statements to federal agents in March 2013.

An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent of all crimes until proven guilty beyond a reasonable doubt.  If convicted, Riley and Williams each face a potential maximum sentence of 30 years in federal prison.

This case was investigated by Special Agents of the IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration.  Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.

MAN IN PENNSYLVANIA SENTENCED TO 102 MONTHS IN PRISON FOR TERRORIST SOLICITING

FROM:  U.S. DEPARTMENT OF JUSTICE 
Tuesday, July 16, 2013

Pennsylvania Man Sentenced for Terrorist Solicitation and Firearms Offense
Emerson Winfield Begolly, 24, of New Bethlehem, Penn., was sentenced today in Pittsburgh to 102 months in prison for soliciting others to engage in acts of terrorism within the United States and for using a firearm during and in relation to an assault on FBI agents.

 In addition, he was sentenced to serve five years supervised release.  Begolly pleaded guilty on Aug. 9, 2011, to charges filed in the Eastern District of Virginia and the Western District of Pennsylvania.

 The sentence was announced by David J. Hickton, U.S. Attorney for the Western District of Pennsylvania; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary Perdue, Special Agent in Charge of the FBI’s Pittsburgh Division.

“Emerson Begolly used the Internet to solicit likeminded radical jihadists to commit atrocities and murder,” stated U.S. Attorney Hickton. “Through effective use of court-sanctioned investigative tools, mass tragedy was averted.”

“We now find ourselves in an era where one of the greatest innovations of the modern era – the Internet—is being utilized by radical jihadists who seek to use that medium to endanger American lives,” said U.S. Attorney MacBride.  “Those, like Mr. Begolly, who solicit others to engage in acts of terrorism will be brought to justice and prosecuted to the fullest extent of law.”

“This case highlights the need for continued vigilance against homegrown extremism and use of the Internet to incite violence,” said Acting Assistant Attorney General Carlin.  “I want to thank the agents, analysts and prosecutors whose work resulted in today’s sentence.”

“Today’s sentence is the result of the effective coordination and enduring resolve of law enforcement to protect our citizens,” said Assistant Director Parlave.  “Together with our partners, we will continue to work to combat the threat of violent homegrown extremism and keep our country safe.”

“The case against Mr. Begolly is an important reminder that online-inspired terrorism can occur anywhere, including Western Pennsylvania. Our efforts to detect and disrupt this threat are enduring,” said Special Agent in Charge Perdue.  “The FBI, along with our law enforcement partners in the FBI Joint Terrorism Task Force, will continue to proactively employ all necessary resources in order to predict and prevent terrorist attacks from occurring and to ensure the ongoing safety of our communities.”

 According to information presented by the government in court, Begolly was an active administrator on the Ansar al-Mujahideen English Forum (AMEF), which is an internationally used Islamic extremist Internet forum.  Using the pseudonym of Abu Nancy, Begolly systematically solicited jihadists to use firearms, explosives and propane tanks against targets such as police stations, post offices, Jewish schools and daycare centers, military facilities, train lines, bridges, cell phone towers and water plants.

 In the summer of 2010, Begolly urged jihadists on the AMEF to “write their legacy in blood.” Begolly promised a special place in the afterlife for violent action in the name of Allah. Following the reported shootings in Northern Virginia at the Pentagon and the Marine Corps Museum in October 2010, Begolly posted a comment online that praised the shootings and hoped the shooter had followed his previous postings encouraging similar acts of violence.  On Dec. 28, 2010, Begolly further solicited his AMEF audience to violence by posting a manual on how to manufacture a bomb.

 Days later, on Jan. 4, 2011, FBI agents were assaulted by Begolly as they attempted to prevent him from reaching a loaded 9 mm semi-automatic handgun, which he had concealed on his body. While violently struggling with the agents, Begolly bit the agents on their fingers in an attempt to free himself to reach his firearm. His actions are consistent with a posting in which he urged his audience not to be taken alive by law enforcement, to always carry a loaded firearm, and to aggressively resist any law enforcement encounter including biting fingers if necessary.

 These cases were investigated by the FBI Washington Field Office and the FBI Pittsburgh Field Office.  Assistant U.S. Attorney Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia’s National Security and International Crime Unit, Assistant U.S. Attorney James Kitchen of the U.S. Attorney’s Office for the Western District of Pennsylvania’s National Security and Cybercrime Section, and Trial Attorney Stephen Ponticiello of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the cases.

JUSTICE ANNOUNCES FORMER CUSTOMS AND BORDER PATROL OFFICER SENTENCED IN ALIEN SMUGGLING CASE

FROM:  U.S. DEPARTMENT OF JUSTICE 
Thursday, July 18, 2013

Former U.S. Customs and Border Protection Officer and Four Associates Sentenced for Carrying out Bribery and Alien Smuggling Activities Along Mexican Border
A former U.S. Customs and Border Protection (CBP) officer, his girlfriend, his nephew and two of their associates were sentenced today in federal court for their participation in bribery and alien smuggling activities along the U.S./Mexico border spanning approximately two years, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.

Former CBP Officer Juan Carlos Guerrero, 39, of Mission, Texas, was sentenced to 108 months in prison and ordered to pay a $30,000 fine by U.S. District Judge Andrew S. Hanen in the Southern District of Texas after pleading guilty last year to one count of substantive bribery, one count of conspiracy to commit bribery and one count of alien smuggling conspiracy.  Guerrero’s girlfriend, Claudia Flores, 34, of Mission, was sentenced to 60 months in prison and also ordered to pay a $30,000 fine; Maribel Rivera, 43, also of Mission, was sentenced to 30 months in prison; and Rodolfo Caballero Rojas, 40, of Oklahoma City, was sentenced to 24 months in prison and ordered to pay a $6,000 fine. Each pleaded guilty last year to separate informations charging each of them with one count of conspiracy to commit bribery and alien smuggling.  Guerrero’s nephew, Jose P. Cantu, 20, of Mission, was sentenced to 52 months in prison after having pleaded guilty to conspiracy to commit bribery and alien smuggling and a separate charge of conspiracy to import marijuana and cocaine.

According to court documents, between approximately October 2008 and approximately May 2011, Guerrero worked the midnight shift at the Hidalgo, Pharr and Anzaldvas Ports of Entry, where he was responsible for, among other things, vehicle inspections of northbound traffic traveling from Mexico to the United States.

According to court documents, between approximately January 2009 and approximately May 2011, Guerrero and Flores organized a bribery and alien smuggling operation, whereby Guerrero, Flores, Rivera, Rojas, Cantu and other co-conspirators arranged for aliens from Mexico to be smuggled into the United States through Guerrero’s inspection lanes in exchange for bribe payments ranging from $500 to $3,000 per alien.  Guerrero admitted that he organized and directed a total of approximately 80 to 150 different smuggling events and that he knowingly permitted approximately 80 to 165 aliens to gain illegal entry into the United States.

According to court documents, Flores admitted that she helped Guerrero organize and direct a total of approximately 50 to 75 of the illegal crossings, in which approximately 50 to 100 aliens from Mexico gained illegal entry into the United States.  Rivera admitted that she assisted Guerrero and Flores by identifying and soliciting aliens, communicating smuggling prices and details of the illegal crossings to the aliens and collecting bribe payments from the aliens on the behalf of Guerrero and Flores.  Rojas admitted, among other things, that he assisted Guerrero by personally driving aliens through Guerrero’s inspection lane at the Anzalduas Point of Entry and that he paid Guerrero a bribe of approximately $1,500 as payment for Guerrero’s decision to permit an alien to pass illegally through his inspection lane.

Court documents further indicate that Cantu admitted to helping Guerrero separately organize and carry out approximately 40 illegal crossings, in which approximately 45 to 60 aliens from Mexico gained illegal entry into the United States.  Additionally, Cantu independently smuggled 168.8 kilograms of marijuana and 3.9 kilograms of cocaine through Guerrero’s inspection lane in exchange for approximately $5,000 from another associate.

Guerrero, who was placed on administrative leave upon his arrest in October of last year, formally resigned his CBP post on Dec. 13, 2012, as part of his plea agreement.

DOJ ANNOUNCES MAN CHARGED IN COUNTERFEIT SEMICONDUCTOR CASE

FROM:   U.S. DEPARTMENT OF JUSTICE

Monday, July 15, 2013
Massachusetts Man Charged with Selling Counterfeit Semiconductors Intended for Use on Nuclear Submarines

Peter Picone, 40, of Methuen, Mass., has been charged with importing counterfeit semiconductors from China for sale in the United States.

The charges were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Connecticut Deirdre M. Daly; Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Boston; Acting Special Agent in Charge of Defense Criminal Investigative Service (DCIS) Northeast Field Office Craig W. Rupert; and Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Northeast Field Office Cheryl A. DiPrizio.  

The eight-count indictment charges Picone with conspiring to traffic in counterfeit goods, conspiring to traffic in counterfeit military goods, trafficking in counterfeit goods, conspiring to commit wire fraud, wire fraud and conspiring to commit money laundering.  The indictment was returned by a federal grand jury in New Haven on June 25, 2013, and was unsealed today.

The indictment charges that from February 2007 through April 2012, Picone, through two companies he owned and operated, Tytronix Inc. and Epic International Electronics, purchased counterfeit semiconductors from sources in Hong Kong and China.  According to the indictment, Picone made false representations about the semiconductors and sold them to customers throughout the United States, including companies believed by Picone to be defense contractors in Connecticut and Florida.  Certain semiconductors sold by Picone were intended for use on nuclear submarines.
“By allegedly purchasing and reselling counterfeit semiconductors for military applications, Peter Picone put personal gain above the safety and well-being of dedicated U.S. servicemen and women,” said Acting Assistant Attorney General Raman.  “As charged in the indictment, Picone went to great lengths to conceal the true origin of counterfeit semiconductors in order to sell the devices as seemingly legitimate and reliable components for use in nuclear submarines and other complex machinery.  The charges unsealed today demonstrate our steadfast commitment to working with our law enforcement partners to prosecute counterfeiters and others who risk the security of the men and women of the U.S. military.”

“Counterfeit semiconductors pose a serious health and safety risk to consumers and end-users, and an even greater threat to the safety of the men and women of our armed services when they are sold for use in the military,” said Acting U.S. Attorney Daly.  “We will prosecute these types of cases to the fullest extent of the law.”

“Today’s charges demonstrate the continued commitment of the Defense Criminal Investigative Service and our peer agencies to protect the Department of Defense’s supply chain from being infiltrated and compromised with inferior components,” said DCIS Northeast Field Office Acting Special Agent in Charge Rupert.  “Safeguarding our warfighters and ensuring their equipment functions at the absolute highest levels is vital to our nation’s defense and readiness.  Detecting and dismantling the operations of suppliers who choose to make a profit by supplying counterfeit or inferior products is a DCIS priority.  I applaud the agents and prosecutors who worked tirelessly to bring about this result.”

“Trafficking in counterfeit sensitive technologies is an extremely dangerous practice on several fronts. Not only are there significant risks associated with the transportation of this faulty equipment, but our own American servicemembers are also put in harm’s way when they encounter substandard equipment,” said ICE-HSI Special Agent in Charge Foucart.  “One of HSI's top enforcement priorities is protecting the integrity of U.S. military products and other sensitive technology.”

“Counterfeit semiconductors represent a serious threat to the safety of our military service members and raise national security concerns,” said NCIS Special Agent in Charge DiPrizio.  “The introduction of defective equipment into the military supply chain can result in product failure, property damage and even serious bodily injury, including death.  Some of these counterfeit devices can also be preprogrammed with malicious code and enable computer network intrusion.  NCIS has worked closely with our law enforcement partners at DCIS and ICE-HSI in identifying unscrupulous suppliers and bringing them to justice.”

Picone was arraigned before U.S. Magistrate Judge Donna F. Martinez of the District of Connecticut in Hartford, Conn., and was released on bond.  Trial is scheduled for Sept. 9, 2013, before U.S. District Judge Alvin W. Thompson in Hartford.

If convicted of conspiracy to traffic in counterfeit goods, Picone faces a maximum penalty of five years in prison.  If convicted of conspiracy to traffic in counterfeit military goods, Picone faces a maximum term of 20 years in prison.  If convicted of trafficking in counterfeit goods, Picone faces a maximum term of 10 years in prison.  If convicted of conspiracy to commit wire fraud, or wire fraud, Picone faces a maximum penalty of 20 years in prison.  If convicted of conspiracy to commit money laundering, Picone faces a maximum term of 20 years in prison.

The indictment also seeks forfeiture of proceeds from illicit trafficking in counterfeit goods and wire fraud as well as the seizure of the goods and any property involved in the money laundering conspiracy.

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

The case was jointly investigated by HSI, DCIS and NCIS.  The case is being prosecuted by Assistant U.S. Attorney Edward Chang of the District of Connecticut and Trial Attorneys Kendra Ervin and Carol Sipperly of the Criminal Division’s Computer Crime and Intellectual Property Section.  Trial Attorney Kristen M. Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section is assisting with the forfeiture aspects of the case.

The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

TWO ARYAN BROTHERHOOD GANG MEMBERS PLEAD GUILTY TO RACKETEERING

FROM:  U.S. DEPARTMENT OF JUSTICE

Two Aryan Brotherhood of Texas Gang Members Plead

Guilty to Federal Racketeering Charges

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


Glen Ray Millican, aka "Fly," 39, and Justin Christopher Northrup, aka "Ruthless," 28, both of Houston, each pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.

According to court documents, Millican, Northrup 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. Millican, Northrup 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, Millican and Northrup admitted to being members of the ABT criminal enterprise and agreeing to commit multiple acts of violence and/or narcotics trafficking on behalf of the ABT.

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

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

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

At sentencing, scheduled for Sept. 26, 2013, Millican and Northrup each face a maximum penalty of life in prison.

Millican and Northrup are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. They are the seventh and eighth defendants, respectively, to plead guilty.

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

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

FORMER CONGRESSMAN RENZI FOUND GUILTY OF 17 FELONY OFFENCES

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

NEW JERSEY INVESTOR PLEADS GUILTY FOR ROLE IN BID-RIGGING

FROM: U.S. DEPARTMENT OF JUSTICE

Investigation Has Yielded 12 Guilty Pleas

WASHINGTON — A financial investor who purchased municipal tax liens pleaded guilty today for his role in a conspiracy to rig bids for the sale of tax liens auctioned by municipalities in New Jersey, the Department of Justice announced.

A felony charge was filed today in U.S. District Court for the District of New Jersey in Newark, against Norman T. Remick, of Barnegat, N.J. According to the charge, from in or about the beginning of 2007 until approximately February 2009, Remick participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. The department said that Remick proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.

"The conspirators illegally met and engaged in anticompetitive discussions to allocate bids amongst themselves at tax lien auctions in New Jersey, depriving distressed homeowners of competitive interest rates at a time when they most needed them," said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division's criminal enforcement program. "Prosecuting these types of bid-rigging schemes remains a top priority for the division."

The department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.

According to the court documents, Remick was involved in a conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens that earned a higher interest rate. Property owners were, therefore, made to pay higher interest on their tax debts than they would have paid had their liens been purchased through open and honest competition, the department said.

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 violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.

Today's plea is the 12th guilty plea resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Eight individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby and David Butler – and three companies – DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation.

Today's charge was 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's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants.

MILWAUKEE POLICE OFFICER FOUND GUILTY OF SEXUAL ASSAULT

The following excerpt is from the Department of Justice website:

Wednesday, January 11, 2012
“WASHINGTON – A federal jury today convicted Ladmarald Cates, 44, a former Milwaukee Police Officer, of a civil rights charge stemming from his July 16, 2010, sexual assault of a Milwaukee woman, the Justice Department announced.

The evidence at trial established that on July 16, 2010, the defendant, while acting as a Milwaukee police officer, responded to a 911call for police assistance at the victim’s home. The defendant then used a combination of coercion and intimidation to force the victim to commit sexual acts before forcibly raping her, while they were alone together in the residence. Law enforcement and civilian witnesses testified that the victim cried out that she had been raped minutes after the sexual assault occurred.

“Officers are charged with protecting and serving our community,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “When officers use their power to take advantage of some of the most vulnerable individuals in our society, the Department of Justice will aggressively prosecute.”

“The federal conviction of a former Milwaukee police officer for violating an individual’s civil rights demonstrates the Department of Justice’s commitment to the investigation and prosecution of those who would use their authority and influence to prey on the very citizens they have sworn to protect,” said James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin. “By pursuing allegations of injustice, including those against law enforcement officers, the Department of Justice can improve public trust and confidence in the law enforcement community.”

Following an internal investigation, the Milwaukee Police Department fired Mr. Cates.

The defendant faces a maximum penalty of life in prison. The sentencing is scheduled for April 11, 2012, before the Honorable J.P. Stadtmueller, U.S. District Judge for the Eastern District of Wisconsin.

The prosecution of this case was based upon the cooperation and support of the Milwaukee Police Department, which worked closely with the FBI in the investigation of it. The case was prosecuted by Assistant U.S. Attorney Mel. S. Johnson and Trial Attorney Saeed Mody of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice.”

LAS VEGAS SECRETARY PLEADS GUILTY IN MORTGAGE FRAUD CASE

The following excerpt is from the Department of Justice website:

Thursday, January 5, 2012
“WASHINGTON – The secretary of Las Vegas-based CPT Real Estate Investments pleaded guilty yesterday for his role in a $3.4 million mortgage fraud scheme involving victims in the Las Vegas area, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bodgen for the District of Nevada.

Hugo Patrick Coutelin, 62, a resident of Santa Fe, N.M., pleaded guilty before U.S. District Judge Kent J. Dawson in the District of Nevada to conspiring to commit wire fraud, mail fraud and bank fraud. The conspiracy charge carries a maximum penalty of 30 years in prison. Coutelin is scheduled to be sentenced on April 18, 2012.

Coutelin was charged in an indictment on June 16, 2010, along with Michael Perry, 59, director of CPT; Jeff Thomas, 32, president of CPT; and Linda Marie Kot, 58, a real estate agent.

According to court documents, from April 2006 through November 2006, Coutelin and his co-defendants conspired to execute a fraudulent scheme in which they recruited and caused to be recruited straw buyers and bailout buyers, acted as straw buyers themselves and falsified mortgage loan applications with federally insured financial institutions. Coutelin caused false information to be included on straw buyers’ loan applications regarding the borrowers’ place of employment, income, assets and intent to occupy the properties so that straw buyers would qualify for loans for which they would not otherwise qualify. Coutelin knew that false information was included on straw buyers’ loan applications and also knew that material facts were concealed from the lender.
                                                         
According to the indictment, Coutelin caused material misstatements to be made on loan applications for seven properties, leading to the disbursement of loans in the amount of approximately $3.4 million.

Coutelin was arrested on June 17, 2010, in New Mexico and was released pending trial.

On Dec. 28, 2011, Perry pleaded guilty to one count of conspiracy to commit wire fraud, mail fraud and bank fraud, and is scheduled to be sentenced on March 28, 2012. On Feb. 1, 2011, Thomas pleaded guilty to one count of bank fraud, and is scheduled to be sentenced on Feb. 22, 2012. Kot is scheduled to begin her trial on Feb. 6, 2012.  

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.”

DOJ INVESTIGATES ALLEGED EXCESSIVE FORCE USE BY MIAMI POLIICE DEPARTMENT

The following is an excerpt from the Department of Justice website:

The following excerpt is from the Department of Justice website:

Thursday, November 17, 2011
“Justice Department Opens Investigation into the Miami Police Department
MIAMI– The Justice Department announced today that it has opened a civil investigation into allegations of excessive use of deadly force by members of the city of Miami Police Department (MPD), in accordance with the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994.
The department’s investigation will seek to determine whether there are systemic violations of the Constitution or federal law by officers of MPD. During the course of the investigation, the Justice Department will consider all relevant information, particularly the efforts that MPD has undertaken to ensure compliance with federal law and the experiences and views of the community. The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions such as Newark, N.J.; Seattle; Puerto Rico; New Orleans; and the District of Columbia.
This matter is being investigated by attorneys and staff from the Special Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Florida. They will be assisted by experienced law enforcement experts.”

INDIANA MAN SENTENCED TO 315 YEARS IN PRISION

The following excerpt is from the Department of Justice website:

Tuesday, November 22, 2011
"Indiana Man Sentenced to 315 Years in Prison for Producing and Trafficking Child Pornography
WASHINGTON – A Bloomington, Ind., man was sentenced today in the Southern District of Indiana to 315 years in prison for multiple charges relating to his production and trafficking of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Joseph H. Hogsett of the Southern District of Indiana.

David R. Bostic, 25, was sentenced by U.S. District Judge Jane E. Magnus-Stinson. In addition to Bostic’s prison term, Judge Magnus-Stinson also sentenced Bostic to lifetime supervised release.

“Mr. Bostic committed heinous acts of sexual abuse against the most vulnerable in our society,” said Assistant Attorney General Breuer. “He memorialized these unspeakable crimes by producing photographs of his abuse and distributing them to an international network of child predators. No prison term can undo the pain and suffering Mr. Bostic has caused. But today’s sentence sends a strong message that child sexual exploitation will be punished severely.”

“This defendant is among the most dangerous offenders ever prosecuted by this office,” said U.S. Attorney Hogsett. “My heart goes out to the many victims in this case, but we can say today that thanks to the efforts of prosecutors and our law enforcement partners, this man will never again be able to prey on the most innocent among us.”

“This case is considered one of the most significant child pornography matters ever investigated by the FBI,” said Deputy Assistant Director Michael S. Welch of the FBI’s Cyber Division. “This case resulted in the identification and rescue of approximately two dozen children from inside and outside the United States.”

Bostic pleaded guilty on June 6, 2011, to producing child pornography images of five children, all four years of age and younger, including one child who was only two months old. Bostic distributed some of these images to several individuals around the world in exchange for other child pornography, some of which was material produced by those trading partners.

Bostic also pleaded guilty for his role in an international conspiracy to traffic in child pornography primarily involving images of minors under five years of age. Bostic initially gained the trust of the principal administrator of that group by providing the child pornography images he produced.

This case was the result of the significant efforts of the FBI, with assistance from the Indiana State Police; the Kokomo, Ind., Police Department; and the Brownsburg, Ind., Police Department.

The case was prosecuted by Assistant U.S. Attorney A. Brant Cook of the Southern District of Indiana and Trial Attorney Michael Grant of the Child Exploitation and Obscenity Section in the Justice Department’s Criminal Division.

BUSINESSMAN GETS 5 YEARS IN PRISON FOR FRAUD AND TAX EVASION

The following excerpt is from the Department of Justice website:

“Wednesday, November 16, 2011
Former Pittsfield, Mass., Entrepreneur Sentenced to More Than Five Years in Prison for Financial Crimes
WASHINGTON - A former Pittsfield man was sentenced late yesterday in federal court for his role in a series of frauds and attempts to avoid paying taxes, as well as lying to federal authorities and financial institutions about his illegal activities, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) - Boston Field Office; and Theodore L. Doherty III, Special Agent in Charge of the New England Regional Office of the U.S. Department of Transportation, Office of Inspector General (DOT-OIG).
Michael J. Armitage , 56, was sentenced by U.S. District Judge Michael A. Ponsor to 66 months in federal prison to be followed by five years of supervised release. Armitage was ordered to forfeit $24,010, and pay restitution of $1.5 million to the IRS; $191,819 to the Massachusetts Department of Revenue; $4.2 million to the Federal Transit Administration; and $215,138 to the Pioneer Valley Transit Authority. Armitage pleaded guilty in October 2010 to three counts of false statements to a federally insured financial institution; three counts of tax evasion; one count of false statements to a federal official; one count of conspiracy, one count of false claims; and one count of endeavoring to obstruct a federal audit.
According to court documents, Armitage did not file a single personal federal income tax return between 1993 and 2006 in spite of receiving millions of dollars in income from sources such as Power Development Co. LLC (PDC), an energy company that he founded and controlled. In addition, in 1999, Armitage was required to repay more than $1 million to PDC for money that he had misappropriated, including approximately $340,000 in checks that he had written to himself but fraudulently mislabeled in PDC’s check register as payable to others.
From February 2001 to April 24, 2006, Armitage executed a scheme to defraud United Bank, located in West Springfield, Mass., in connection with three separate loans. According to court documents, Armitage used or submitted various false or fraudulent documents to perpetrate these fraud schemes, including a 2001 personal financial statement that omitted any debts owed to the IRS or to PDC and on which he claimed that his taxes were settled through 1999, and a 2001 personal federal income tax return that he signed and dated but never filed with the IRS.
In addition, between Aug. 20, 2001, and Oct. 18, 2006, Armitage attempted to avoid paying taxes that had been previously assessed for three separate years: 1995, 1996 and 1998. Armitage engaged in several efforts to avoid paying taxes for these years. He withheld material information from his tax representative. He directed his tax representative to contact an IRS Revenue Officer and claim that delinquent returns would be filed, when he did not intend to provide the tax representative with the information to prepare the returns. He made materially false statements to an IRS Revenue Officer. He purposely withdrew funds recently deposited in his bank account to maintain a low account balance. He diverted payments due to himself to other accounts, including his wife’s bank account, the bank account of another company that he controlled, and an escrow account belonging to another person. Finally, he used funds from an account that he controlled to pay credit cards issued in his name, all to conceal income and avoid collection.
In another scheme, from Nov. 30, 2004, through at least July 5, 2006, Armitage conspired with co-defendants EV Worldwide LLC (EVW), a company that he controlled, and Christopher Willson, another executive of EVW, to defraud the Federal Transit Administration. According to court documents, Armitage and his co-defendants submitted false, fraudulent and fictitious invoices for payment through the Pioneer Valley Transit Authority as part of a federal research grant into an electric bus and battery project. On these invoices, Armitage falsely claimed that the Federal Transit Administration’s share of the project costs did not exceed the maximum 50 percent. He also sought reimbursement for fictitious, inflated or ineligible expenses, and/or falsely claimed that certain milestone achievements warranted payment of EVW Worldwide’s claimed expenses. Through the fraudulent invoices, Armitage, Willson and EVW received $703,097 to which they were not entitled, and used this money for their own benefit as well as the benefit of another company that Armitage and Willson founded in Canada. After the Department of Transportation, Office of Inspector General commenced an audit in 2006, Armitage repeatedly lied to and attempted to obstruct the auditors.
Willson, who was convicted at trial in June 2011 on one count of conspiracy to defraud the United States and to commit wire fraud, six counts of wire fraud and four counts of false claims, is scheduled to be sentenced on Nov. 29, 2011, at 2:30 p.m.
The case investigated by IRS-CI and the DOT-OIG. The Defense Contract Audit Agency also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow for the District of Massachusetts; Senior Litigation Counsel William M. Welch II of the Justice Department’s Criminal Division; and Trial Attorneys Kevin Driscoll and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section.”

DOJ CLAIMS DETROIT TAX PREPARER CLAIMED OVER $13 MILLION IN FRAUDULENT TAX REFUNDS

The following is an excerpt from the Department of Justice website:

Tuesday, November 1, 2011

“WASHINGTON – The United States has asked a federal court in Detroit to bar Carlos Brown from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit alleges that Brown and his business, Express Finance and Processing Services, prepare fraudulent tax returns for customers seeking large refunds based on a frivolous theory called “redemption” or “commercial redemption,” which has been rejected by numerous courts.
The complaint alleges that Brown, a resident of Detroit, prepares returns claiming huge fraudulent refunds based on fabricated income tax withholding reported on false Internal Revenue Service (IRS) Forms 1099-OID. According to the complaint, Brown has allegedly sought more than $13 million in fraudulent refunds on at least 45 tax returns, including a bogus claim on one customer’s return for a refund in excess of $1.75 million.
In the complaint, the government also requests that the court order Brown to provide the government with a list of all persons for whom he has prepared federal tax returns since 2008.”

WOMAN INVOLVED IN STAGED KIDNAPPING SCHEME IN GUATEMALA GETS 24 MONTHS IN PRISON

The following is an excerpt from the Department of Justice website:

Friday, October 21, 2011
“WASHINGTON – A Virginia woman was sentenced today to 24 months in prison for her role in an extortion scheme involving a staged kidnapping in Guatemala, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and John V. Gillies, Special Agent in Charge of the FBI’s Miami Division.
Sheena Flores, 34, of Manassas, Va., was sentenced by U.S. District Judge Gerald Bruce Lee in the Eastern District of Virginia. Flores pleaded guilty in August 2011 to one count of transmitting in foreign commerce, with intent to extort money, a communication containing a threat to injure another person. Judge Lee also sentenced Flores to three years of supervised release to follow her prison term and ordered her to pay $3,000 in restitution.
According to court documents, in July 2010, Flores was living in Guatemala with a child under the age of two who was born in Guatemala. Although Flores had no legal custody rights over the child, Flores had been taking care of the child in Guatemala while her husband was making arrangements to legally bring the child to the United States to live with him and Flores.
On July 6, 2010, from Guatemala, Flores contacted a family member in Manassas by telephone and reported that she and the child had been kidnapped by three men and that the men wanted $5,000 in two hours or they were going to kill Flores and the child. At the time that Flores reported the kidnapping and the ransom demands, Flores was attempting to extort money from her family with a hoax kidnapping and false threats, as she and the child had not been kidnapped.
Upon learning of the kidnapping and believing it to be true, the Flores’ family member called law enforcement authorities in Virginia. Shortly thereafter, FBI agents began investigating the kidnapping and members of the FBI’s Crisis Incident Response Group were dispatched to the family member’s house to monitor the situation and assist the family in negotiating with the kidnappers.
Also on July 6, 2010, Flores’ husband, who was in Manassas, received numerous text messages from Flores’ cellular phone in Guatemala, which repeatedly threatened that Flores and the child would be killed if he did not pay $10,000 in ransom by the next day. Believing that his wife and the child had in fact been kidnapped, Flores’ husband wired a partial ransom payment to Guatemala.
According to court documents, Flores enlisted the help of two men whom she believed were members of the violent gang MS-13 to help carry out the fake kidnapping. Flores and the child were found on July 13, 2010, with the assistance of Guatemalan police.
The case is being prosecuted by Assistant U.S. Attorney Rebeca H. Bellows for the Eastern District of Virginia and Trial Attorney James S. Yoon of the Criminal Division’s Human Rights and Special Prosecutions Section. The Criminal Division’s Office of International Affairs provided assistance.
The case was investigated by the FBI’s Miami Division Extraterritorial Squad, with support from the FBI Legal Attaché Office in San Salvador, El Salvador, and the FBI Transnational Anti-Gang Task Force in Guatemala.”

U.S. DEPARTMENT OF JUSTICE VS PUERTO RICO DEPARTMENT OF JUSTICE

The following excerpt is from the Department of Justice website:

Monday, August 29, 2011
“WASHINGTON – The Justice Department today settled a lawsuit with the Puerto Rico Department of Justice (PRDOJ) to protect the rights of employees with disabilities under the Americans with Disabilities Act (ADA). The settlement resolves a complaint that the PRDOJ discriminated against an employee with a disability by failing to provide her with a reasonable accommodation, as required by the ADA.
The complaint alleged that the PRDOJ relocated an employee who uses a wheelchair to an office building that the PRDOJ knew did not provide the employee with accessible bathrooms or accessible parking. As a result, the employee was forced to seek help from others to park and enter her place of work, and she resorted to intentionally dehydrating herself at work because she could not access the office bathrooms, according to the complaint.
“The Americans with Disabilities Act protects the right of every American to work without facing these types of indignities and hurdles,” said Thomas Perez, Assistant Attorney General for the Civil Rights Division. “This settlement reinforces the Civil Rights Division’s commitment to ensuring the promise of equal employment opportunity for all individuals with disabilities.”
The settlement agreement, which must be approved by the district court in San Juan, requires the PRDOJ to pay $45,000 to the aggrieved employee; to provide training to employees on the requirements of the ADA; and to adopt policies to ensure that the PRDOJ does not require employees with disabilities to attend meetings at, or to be relocated to, an inaccessible office location.
Title I of the ADA prohibits employers, such as the PRDOJ, from discriminating against a qualified individual on the basis of disability in regard to job application procedures; hiring, advancement, or discharge; employee compensation; job training; and other terms, conditions, and privileges of employment. In addition, a n employer is required to make a reasonable accommodation to the known disability of an employee if it would not impose an “undue hardship” on the operation of the employer’s business. Reasonable accommodations are adjustments or modifications provided by an employer to enable people with disabilities to enjoy equal employment opportunities.”

The above case shows that even governments such as states, municipalities, territories etc. of the United States must follow federal laws such as the Americans with Disabilities Act.