FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, July 16, 2013
Florida Health Care Medical Director and Six Therapists Arrested for Alleged Roles in $63 Million Fraud Scheme
The former medical director at defunct health provider Health Care Solutions Network (HCSN) and six therapists were arrested today, accused of conspiring to fraudulently bill Medicare and Florida Medicaid more than $63 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer; Special Agent in Charge Michael B. Steinbach of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after the indictment was unsealed following the arrests.
The former HCSN medical director, Roger Rousseau, 71, of Miami, was indicted on July 11, 2013, and charged with conspiracy to commit health care fraud and two counts of health care fraud. In addition, six therapists from Miami – Doris Crabtree, 61; Angela Salafia, 65; Liliana Marks, 46; Ruben Busquets, 49; Alina Fonts, 47; and Blanca Ruiz, 59 – were also charged in the same indictment with conspiracy to commit health care fraud. Fonts was also charged with two counts of health care fraud, and Crabtree, Salafia, Marks and Busquets were each charged with two counts of making false statements related to health care matters. The indictment also seeks forfeiture of proceeds from the alleged healthcare fraud offenses.
According to the indictment, HCSN purported to provide intensive mental health treatment to Medicare and Medicaid beneficiaries in Miami and Hendersonville, N.C., from approximately 2004 through 2011 for purported mental health services that were not medically necessary and often never provided. The indictment also alleges that in Miami, HCSN paid kickbacks to assisted living facility owners and operators who, in exchange, referred beneficiaries to HCSN. In total, HCSN is alleged to have fraudulently billed Medicare and Medicaid approximately $63.7 million, from which HCSN allegedly received payments totaling approximately $28 million.
Rousseau served as the medical director for HCSN in Florida, and the indictment alleges that he routinely signed what he knew to be fabricated and altered medical records without ever reviewing the materials, and, in most instances, without ever meeting with the patient. The indictment also alleges that Crabtree, Salafia, Marks, Busquets, Fonts and Ruiz fabricated HCSN medical records to support false and fraudulent claims for partial hospitalization program services that were not medically necessary and were not provided.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. The case is being prosecuted by Fraud Section Trial Attorney Allan J. Medina.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Showing posts with label U.S. DEPARTMENT OF JUSTICE. Show all posts
Showing posts with label U.S. DEPARTMENT OF JUSTICE. Show all posts
Friday, July 26, 2013
Saturday, July 20, 2013
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.
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.
Saturday, April 20, 2013
FRENCH CITIZEN ACCUSED OF ATTEMPTING TO OBSTRUCT JUSTICE IN FCPA INVESTIGATION
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, April 15, 2013
Obstruction Charges Filed in Ongoing FCPA Investigation into Alleged Guinean Mining Rights Bribe Scheme
Frederic Cilins, 50, a French citizen, has been arrested and accused of attempting to obstruct an ongoing investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
"Mr. Cilins is charged with scheming to destroy documents and induce a witness to give false testimony to a grand jury investigating potential violations of the Foreign Corrupt Practices Act," said Acting Assistant Attorney General Raman. "The Justice Department is committed to rooting out foreign bribery, and we will not tolerate criminal attempts to thwart our efforts."
"A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies," said U.S. Attorney Bharara. "As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, he now begins his own path to justice for his alleged conduct."
"As alleged, Cilins attempted to buy evidence he sought to destroy," said FBI Assistant Director in Charge Venizelos. "The destruction of evidence was in furtherance of Cilins’s alleged effort to obstruct an investigation into a bribery scheme. In effect, he was allegedly willing to commit bribery in an effort to cover up a bribery."
Cilins was arrested in Jacksonville, Fla., on April 14, 2013, and a criminal complaint was filed in the Southern District of New York today charging Cilins with tampering with a witness, victim or informant; obstructing a criminal investigation; and destroying, altering or falsifying records in a federal investigation. The obstruction charge carries a maximum penalty of five years in prison, and the tampering and record-destruction charges each carry a maximum penalty of 20 years in prison. Cilins made an initial appearance in the Middle District of Florida and was detained pending a detention hearing scheduled for April 18, 2013.
According to the complaint, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. The complaint states the federal grand jury is investigating whether a particular mining company and its affiliates – on whose behalf Cilins has been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. The complaint also alleges that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
The complaint alleges that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to the complaint, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be "distributed among persons of good will who may have contributed to facilitating the granting of" the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also "commit[ted] to giving 5% of the shares of stock" in particular mining areas in Guinea to the official’s wife.
A complaint is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elisha J. Kobre of the Southern District of New York. The case is being investigated by the FBI. The Justice Department’s Office of International Affairs and Office of Enforcement Operations have also assisted in the investigation.
Monday, April 15, 2013
Obstruction Charges Filed in Ongoing FCPA Investigation into Alleged Guinean Mining Rights Bribe Scheme
Frederic Cilins, 50, a French citizen, has been arrested and accused of attempting to obstruct an ongoing investigation into whether a mining company paid bribes to win lucrative mining rights in the Republic of Guinea.
Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Preet Bharara, the U.S. Attorney for the Southern District of New York; and George Venizelos, the Assistant Director in Charge of the FBI’s New York Field Office, made the announcement.
"Mr. Cilins is charged with scheming to destroy documents and induce a witness to give false testimony to a grand jury investigating potential violations of the Foreign Corrupt Practices Act," said Acting Assistant Attorney General Raman. "The Justice Department is committed to rooting out foreign bribery, and we will not tolerate criminal attempts to thwart our efforts."
"A grand jury can never learn the truth, and justice cannot prevail, where documents are intentionally destroyed and testimony is tainted by lies," said U.S. Attorney Bharara. "As alleged, Frederic Cilins attempted to obstruct a significant investigation by corrupting evidence and testimony in precisely those ways. With today’s arrest, he now begins his own path to justice for his alleged conduct."
"As alleged, Cilins attempted to buy evidence he sought to destroy," said FBI Assistant Director in Charge Venizelos. "The destruction of evidence was in furtherance of Cilins’s alleged effort to obstruct an investigation into a bribery scheme. In effect, he was allegedly willing to commit bribery in an effort to cover up a bribery."
Cilins was arrested in Jacksonville, Fla., on April 14, 2013, and a criminal complaint was filed in the Southern District of New York today charging Cilins with tampering with a witness, victim or informant; obstructing a criminal investigation; and destroying, altering or falsifying records in a federal investigation. The obstruction charge carries a maximum penalty of five years in prison, and the tampering and record-destruction charges each carry a maximum penalty of 20 years in prison. Cilins made an initial appearance in the Middle District of Florida and was detained pending a detention hearing scheduled for April 18, 2013.
According to the complaint, Cilins allegedly attempted to obstruct an ongoing federal grand jury investigation concerning potential violations of the Foreign Corrupt Practices Act and laws proscribing money laundering. The complaint states the federal grand jury is investigating whether a particular mining company and its affiliates – on whose behalf Cilins has been working – transferred into the United States funds in furtherance of a scheme to obtain and retain valuable mining concessions in the Republic of Guinea’s Simandou region. During monitored and recorded phone calls and face-to-face meetings, Cilins allegedly agreed to pay substantial sums of money to induce a witness to the bribery scheme to turn over documents to Cilins for destruction, which Cilins knew had been requested by the FBI and needed to be produced before a federal grand jury. The complaint also alleges that Cilins sought to induce the witness to sign an affidavit containing numerous false statements regarding matters under investigation by the grand jury.
The complaint alleges that the documents Cilins sought to destroy included original copies of contracts between the mining company and its affiliates and the former wife of a now-deceased Guinean government official, who at the relevant time held an office in Guinea that allowed him to influence the award of mining concessions. The contracts allegedly related to a scheme by which the mining company and its affiliates offered the wife of the Guinean official millions of dollars, which were to be distributed to the official’s wife as well as ministers or senior officials of Guinea’s government whose authority might be needed to secure the mining rights.
According to the complaint, the official’s wife incorporated a company in 2008 that agreed to take all necessary steps to secure the valuable mining rights for the mining company’s subsidiary. That same contract stipulated that $2 million was to be transferred to the official’s wife’s company and an additional sum was to be "distributed among persons of good will who may have contributed to facilitating the granting of" the valuable mining rights. According to the complaint, in 2008, the mining company and its affiliates also "commit[ted] to giving 5% of the shares of stock" in particular mining areas in Guinea to the official’s wife.
A complaint is merely an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elisha J. Kobre of the Southern District of New York. The case is being investigated by the FBI. The Justice Department’s Office of International Affairs and Office of Enforcement Operations have also assisted in the investigation.
Tuesday, April 16, 2013
ATTORNEY GENERAL HOLDER SPEAKS REGARDING EXPLOSIONS IN BOSTON
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, April 16, 2013
Statement of Attorney General Eric Holder on the Ongoing Investigation into Explosions in Boston
The Attorney General released the following statement today on the ongoing investigation into the explosions in Boston:
"I want to express my deepest sympathies to the victims of yesterday’s heinous attack in Boston, to those who suffered injuries, and to those who lost friends and loved ones. All of you will be in my thoughts and prayers.
"As our nation struggles to make sense of this attack, I want to assure the citizens of Boston – and all Americans – that the U.S. Department of Justice, the FBI, and all of our federal, state, and local partners are working tirelessly to determine who was responsible for these unspeakable acts, and to make certain they are held accountable to the fullest extent of the law and by any means available to us. To this end, I have directed that the full resources of the Department be deployed to ensure that this matter is fully investigated. We will continue working closely with the Boston Police Department and the Massachusetts State Police – who have performed superbly – to respond to this tragedy, to maintain a heightened state of security, and to prevent any future attacks from occurring.
"As President Obama stated earlier today, we are treating this event as an act of terror. This morning, I met with the President and my fellow members of his national security team to discuss our continuing response. Although it is not yet clear who executed this attack, whether it was an individual or group, or whether it was carried out with support or involvement from a terrorist organization – either foreign or domestic – we will not rest until the perpetrators are brought to justice. The FBI is spearheading a multi-agency investigation through the Boston Joint Terrorism Task Force. They are devoting extensive personnel and assets to this effort – and have already begun conducting exhaustive interviews, analyzing evidence recovered from the scene, and examining video footage for possible leads. In addition, the ATF is providing bomb technicians, explosives assets, and other substantial investigative support. The DEA and U.S. Marshals Service are providing further assistance. And the Office of Justice Programs will coordinate victim support that the City of Boston and the Commonwealth of Massachusetts may request under the Anti-terrorism Emergency Assistance Program.
"As our active and comprehensive investigation unfolds, these federal assets are coordinating with prosecutors from the U.S. Attorney’s Office for the District of Massachusetts, the Justice Department’s National Security Division, and federal agencies across the government – including members of the Intelligence Community. This matter is still in the early stages, and it’s important that we let the investigation run its full course. I urge members of the public to remain calm, cooperate with law enforcement, and be vigilant. The FBI has set up a tip line – at 1-800-CALL-FBI – for anyone who has information, images, or details relating to yesterday’s explosions along the Boston Marathon route. We are particularly interested in reviewing video footage captured by bystanders with cell phones or personal cameras near either of the blasts. In an investigation of this nature, no detail is too small.
"Finally, I want to recognize and thank all of the brave law enforcement officials, firefighters, National Guardsmen, medical staff, bystanders, and other first responders in Boston yesterday afternoon who heard the explosions, or received reports of casualties, or saw the shattered glass and rising smoke, and rushed to provide assistance to those in need.
"Each of these remarkable women and men placed the safety of others above their own. Their heroic actions undoubtedly saved lives. And their stories of courage and selflessness remind us that – even in our darkest moments – the American people have always displayed an extraordinary capacity for resilience. We will always be strongest when we stand united. And although today our hearts are broken, my colleagues and I are resolved to bring those responsible for this cowardly act to justice. We will be relentless in our pursuit of the individual or group that carried out this attack, while staying true to our most sacred values. And – as our investigation continues, I am confident that our nation will recover, and that we will emerge from this terrible tragedy not only safer, but stronger, than ever before."
Tuesday, April 16, 2013
Statement of Attorney General Eric Holder on the Ongoing Investigation into Explosions in Boston
The Attorney General released the following statement today on the ongoing investigation into the explosions in Boston:
"I want to express my deepest sympathies to the victims of yesterday’s heinous attack in Boston, to those who suffered injuries, and to those who lost friends and loved ones. All of you will be in my thoughts and prayers.
"As our nation struggles to make sense of this attack, I want to assure the citizens of Boston – and all Americans – that the U.S. Department of Justice, the FBI, and all of our federal, state, and local partners are working tirelessly to determine who was responsible for these unspeakable acts, and to make certain they are held accountable to the fullest extent of the law and by any means available to us. To this end, I have directed that the full resources of the Department be deployed to ensure that this matter is fully investigated. We will continue working closely with the Boston Police Department and the Massachusetts State Police – who have performed superbly – to respond to this tragedy, to maintain a heightened state of security, and to prevent any future attacks from occurring.
"As President Obama stated earlier today, we are treating this event as an act of terror. This morning, I met with the President and my fellow members of his national security team to discuss our continuing response. Although it is not yet clear who executed this attack, whether it was an individual or group, or whether it was carried out with support or involvement from a terrorist organization – either foreign or domestic – we will not rest until the perpetrators are brought to justice. The FBI is spearheading a multi-agency investigation through the Boston Joint Terrorism Task Force. They are devoting extensive personnel and assets to this effort – and have already begun conducting exhaustive interviews, analyzing evidence recovered from the scene, and examining video footage for possible leads. In addition, the ATF is providing bomb technicians, explosives assets, and other substantial investigative support. The DEA and U.S. Marshals Service are providing further assistance. And the Office of Justice Programs will coordinate victim support that the City of Boston and the Commonwealth of Massachusetts may request under the Anti-terrorism Emergency Assistance Program.
"As our active and comprehensive investigation unfolds, these federal assets are coordinating with prosecutors from the U.S. Attorney’s Office for the District of Massachusetts, the Justice Department’s National Security Division, and federal agencies across the government – including members of the Intelligence Community. This matter is still in the early stages, and it’s important that we let the investigation run its full course. I urge members of the public to remain calm, cooperate with law enforcement, and be vigilant. The FBI has set up a tip line – at 1-800-CALL-FBI – for anyone who has information, images, or details relating to yesterday’s explosions along the Boston Marathon route. We are particularly interested in reviewing video footage captured by bystanders with cell phones or personal cameras near either of the blasts. In an investigation of this nature, no detail is too small.
"Finally, I want to recognize and thank all of the brave law enforcement officials, firefighters, National Guardsmen, medical staff, bystanders, and other first responders in Boston yesterday afternoon who heard the explosions, or received reports of casualties, or saw the shattered glass and rising smoke, and rushed to provide assistance to those in need.
"Each of these remarkable women and men placed the safety of others above their own. Their heroic actions undoubtedly saved lives. And their stories of courage and selflessness remind us that – even in our darkest moments – the American people have always displayed an extraordinary capacity for resilience. We will always be strongest when we stand united. And although today our hearts are broken, my colleagues and I are resolved to bring those responsible for this cowardly act to justice. We will be relentless in our pursuit of the individual or group that carried out this attack, while staying true to our most sacred values. And – as our investigation continues, I am confident that our nation will recover, and that we will emerge from this terrible tragedy not only safer, but stronger, than ever before."
Thursday, April 11, 2013
MAN PLEADS GUILTY FOR PART IN NATIONWIDE FORECLOSURE SCAM
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, April 8, 2013
Former Federal Fugitive Pleads Guilty in California to Massive Fraud and Identity Theft Scheme in Connection with Nationwide Foreclosure Scam Defendant Collected More Than $1.2 Million from More Than 800 Distressed Homeowners
A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California André Birotte Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Glen Alan Ward, 48, pleaded guilty in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
"Glen Alan Ward spent years preying on distressed homeowners and stealing the identities of bankruptcy debtors, all to pad his own pockets," said Acting Assistant Attorney General Raman. "Now he faces years in prison for his crimes. This successful prosecution illustrates our commitment to tirelessly pursuing fraudsters and ensuring that sophisticated schemes that prey on vulnerable homeowners will not go unpunished."
"Mr. Ward fled the United States years ago in an attempt to keep his fraudulent foreclosure scheme running," said United States Attorney André Birotte Jr. "Today's conviction should serve as a reminder that criminals can run, but they can't hide. The reach of the federal law is long and scammers like Ward, who try to take advantage of distressed homeowners, will be tracked down and prosecuted regardless of their efforts to do otherwise."
According to the plea agreement filed today before U.S. District Judge Dale S. Fischer in the Central District of California, Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services, all of which he has agreed to forfeit.
"Today's announcement is the result of a collaborative international effort and the FBI is grateful to our partners with the Royal Canadian Mounted Police and the Waterloo Regional Police for their assistance in the fugitive investigation and apprehension," said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Mr. Ward's long-term scheme is an extreme example of calculated fraud based on greed, and I'm proud of the persistence shown by our federal partners at SIGTARP, the Office of United States Trustees, and the United States Attorney's Office, in pursuing this case to its successful end."
"We are committed to pursuing those who defraud the most vulnerable victims of the real estate market," said FBI San Francisco Special Agent in Charge David J. Johnson. "This is an excellent example of how closely we work with our law enforcement partners here and abroad to ensure that criminals are brought to justice."
"With today’s plea, justice is served for the victims of Ward’s long-running bankruptcy fraud scheme," said Christy Romero, Special Inspector General for TARP (SIGTARP). "While on the run for 12 years and having fled to Canada to avoid answering for earlier charges of bankruptcy fraud, Ward continued to victimize hundreds of struggling homeowners, steal the identities of unsuspecting U.S. taxpayers involved in bankruptcy proceedings, and exploit civil protections under bankruptcy law to defraud lenders, including numerous TARP recipients. SIGTARP and our law enforcement partners will continue to ensure that those responsible for fraud related to TARP are brought to justice and answer for their crimes."
Each count of bankruptcy fraud carries a maximum sentence of five years in prison. Aggravated identity theft carries a two-year mandatory sentence, to run consecutive to any other sentence. Ward will be sentenced on July 29, 2013 before United States District Judge Dale S. Fischer, and will continue to be held without bond.
This case is being prosecuted by Trial Attorney Paul Rosen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. The investigation was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Monday, April 8, 2013
Former Federal Fugitive Pleads Guilty in California to Massive Fraud and Identity Theft Scheme in Connection with Nationwide Foreclosure Scam Defendant Collected More Than $1.2 Million from More Than 800 Distressed Homeowners
A former Los Angeles resident, who fled to Canada and was a federal fugitive for 12 years, pleaded guilty today to aggravated identity theft and bankruptcy fraud in connection with leading a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Central District of California André Birotte Jr., U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
Glen Alan Ward, 48, pleaded guilty in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
"Glen Alan Ward spent years preying on distressed homeowners and stealing the identities of bankruptcy debtors, all to pad his own pockets," said Acting Assistant Attorney General Raman. "Now he faces years in prison for his crimes. This successful prosecution illustrates our commitment to tirelessly pursuing fraudsters and ensuring that sophisticated schemes that prey on vulnerable homeowners will not go unpunished."
"Mr. Ward fled the United States years ago in an attempt to keep his fraudulent foreclosure scheme running," said United States Attorney André Birotte Jr. "Today's conviction should serve as a reminder that criminals can run, but they can't hide. The reach of the federal law is long and scammers like Ward, who try to take advantage of distressed homeowners, will be tracked down and prosecuted regardless of their efforts to do otherwise."
According to the plea agreement filed today before U.S. District Judge Dale S. Fischer in the Central District of California, Ward admitted to engaging in a fraud scheme that took place from 1997 to April 5, 2012, the day he was arrested by Canadian authorities. According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services, all of which he has agreed to forfeit.
"Today's announcement is the result of a collaborative international effort and the FBI is grateful to our partners with the Royal Canadian Mounted Police and the Waterloo Regional Police for their assistance in the fugitive investigation and apprehension," said Bill Lewis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "Mr. Ward's long-term scheme is an extreme example of calculated fraud based on greed, and I'm proud of the persistence shown by our federal partners at SIGTARP, the Office of United States Trustees, and the United States Attorney's Office, in pursuing this case to its successful end."
"We are committed to pursuing those who defraud the most vulnerable victims of the real estate market," said FBI San Francisco Special Agent in Charge David J. Johnson. "This is an excellent example of how closely we work with our law enforcement partners here and abroad to ensure that criminals are brought to justice."
"With today’s plea, justice is served for the victims of Ward’s long-running bankruptcy fraud scheme," said Christy Romero, Special Inspector General for TARP (SIGTARP). "While on the run for 12 years and having fled to Canada to avoid answering for earlier charges of bankruptcy fraud, Ward continued to victimize hundreds of struggling homeowners, steal the identities of unsuspecting U.S. taxpayers involved in bankruptcy proceedings, and exploit civil protections under bankruptcy law to defraud lenders, including numerous TARP recipients. SIGTARP and our law enforcement partners will continue to ensure that those responsible for fraud related to TARP are brought to justice and answer for their crimes."
Each count of bankruptcy fraud carries a maximum sentence of five years in prison. Aggravated identity theft carries a two-year mandatory sentence, to run consecutive to any other sentence. Ward will be sentenced on July 29, 2013 before United States District Judge Dale S. Fischer, and will continue to be held without bond.
This case is being prosecuted by Trial Attorney Paul Rosen of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. The investigation was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Sunday, March 10, 2013
CORRECTIONS OFFICER INDICTED FOR STOLEN IDENTITY TAX REFUND FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, March 8, 2013
Alabama Corrections Officer and Former Corrections Officer Indicted for Stolen Identity Tax Refund Fraud
A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.
According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.
An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.
If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division.
Friday, March 8, 2013
Alabama Corrections Officer and Former Corrections Officer Indicted for Stolen Identity Tax Refund Fraud
A 29-count indictment was unsealed today in Montgomery, Ala., charging Bryant Thompson, an Alabama corrections officer, and Quincy Walton, a former Alabama corrections officer, with federal tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced. Thompson and Walton are both charged with one count of conspiracy to defraud the United States; Thompson is additionally charged with 10 counts of wire fraud and 10 counts of aggravated identity theft, and Walton is additionally charged with four counts of theft of government money and four counts of aggravated identity theft.
According to the indictment, Thompson, a corrections officer at the Alabama Department of Corrections, unlawfully obtained the names and Social Security numbers of inmates in the custody of the state of Alabama and caused to be filed false tax returns in the names of those inmates. The IRS issued tax refund checks in the names of inmates whose identities Thompson unlawfully obtained and Walton cashed those checks.
An indictment is merely a formal charge by the grand jury. The defendants are presumed innocent unless and until proven guilty.
If convicted, Thompson and Walton face a maximum sentence of five years in federal prison for the conspiracy count, a maximum of 20 years for each wire fraud count, a maximum of 10 years for each theft of government money count and a minimum of two years for aggravated identity theft. In addition to prison time, Thompson and Walton also face the possibility of fines and restitution to the IRS and other victims.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Trial Attorneys Alexander R. Effendi and Justin K. Gelfand of the Justice Department’s Tax Division.
Saturday, March 2, 2013
ATTORNEY GENERAL HOLDER SPEAKS AT NATIONAL ASSOCIATION OF ATTORNEYS MEETING
FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the National Association of Attorneys General Winter/Spring Meeting
Washington, D.C. ~ Tuesday, February 26, 2013
Thank you, Attorney General Gansler, for those kind words; for your leadership as President of the National Association of Attorneys General; for your service to the State of Maryland; and of course for your friendship over the years. As some of you know, Doug and I once worked together in the U.S. Attorney’s Office for the District of Columbia. So it’s a special privilege to stand with him today – and a pleasure to be included, once again, in this important annual meeting.
I’d particularly like to welcome this organization’s newest members – the 11 state attorneys general who are participating in this event for the first time. And I’d like to recognize – and thank – all of the good friends and colleagues who are here with us today. Thank you for lending your time, your diverse perspectives, and your immense talents to this Association’s critical work.
Over the past four years, I have been fortunate to work with many of the leaders in this room to confront a range of criminal justice, law enforcement, and national security challenges. Alongside my colleagues and counterparts throughout the Administration – including Vice President Biden, Director Cordray, Comptroller Curry, and Acting Associate Attorney General West, all of whom you’re hearing from this week – we’ve accomplished a great deal by working together across state boundaries and party lines. The Justice Department has benefitted – and, more importantly, the American people have benefitted – from your tireless work, your expert guidance, and your steadfast commitment to doing what’s best for those we’re privileged to serve. And the results of our collaboration speak for themselves.
By helping to strengthen our state and federal criminal justice systems, fighting to expand access to legal services, and advancing critical public safety initiatives and consumer protections, you’ve addressed persistent challenges and improved countless lives. You’ve made crime victims whole again. And you’ve brought assistance – and healing – to troubled areas.
In close partnership with the President’s Financial Fraud Enforcement Task Force, you’ve helped ensure that our approach in identifying and combating fraud targeting consumers, investors, and homeowners, has never been smarter, more systematic, or more effective. Last January, many of you joined with the Justice Department and other partners to bring about the largest joint federal-state residential mortgage settlement in our nation’s history. Since 2009, a number of you also have provided invaluable assistance to the federal investigation into alleged misconduct by Standard & Poor’s Financial Services – behavior that goes to the heart of the recent economic crisis. And no less than 13 of you are moving forward with parallel actions complementing the Department’s civil lawsuit, which I announced earlier this month.
From protecting our national security, to preventing domestic violence, eradicating human trafficking, cracking down on intellectual property crimes, and combating youth violence – my colleagues and I have been proud, and fortunate, to stand shoulder-to-shoulder with you all. Together, we’ve streamlined key investigative and enforcement activities across multiple agencies and offices – enabling leaders at every level of government to make the most of precious taxpayer resources. As a result, there can be no question that we’re making a meaningful, measurable difference in the lives of our fellow citizens each and every day.
Yet I recognize – as you do – that, for all we’ve accomplished, our work is far from over. When it comes to protecting the safety, and the sacred rights, of the American people, much remains to be done. In too many places, serious – and seemingly intractable – public safety challenges persist. And nowhere is this clearer than in our ongoing efforts to eradicate the gun violence that touches every jurisdiction represented here – and steals too many promising futures each year.
Last December’s horrific events in Newtown, Connecticut stand as shocking reminders of the epidemic that afflicts communities across the country – from inner cities, to rural areas, to tribal lands. But, on a daily basis, this unspeakable tragedy is compounded by countless individual tragedies that take place on our streets; that pass too often unnoticed; and that too frequently decimate the lives of our most vulnerable citizens: our children.
Every loss is shattering and inexplicable – and every one is an outrage. This is why – as concerned citizens, as heartbroken parents, and as public servants empowered to make a difference on behalf of those we’ve sworn to protect – it’s time for each of us to steel our resolve, and renew our commitment to respond to this senseless violence with renewed vigilance.
At every level of the Administration – and particularly at our nation’s Department of Justice – my colleagues and I are determined to work with organizations like this one to build bipartisan consensus for taking decisive action to end gun violence. And we will not rest until we’ve done everything in our power to prevent future tragedies like the one that took place at Sandy Hook Elementary School.
Of course, there will never be a simple, one-size-fits-all solution for addressing any challenge of this magnitude – and confronting all of its underlying causes. But we must not allow the size or complexity of this problem to deter us from taking action.
Earlier this year, under the leadership of Vice President Biden, I had the privilege of working with my fellow Cabinet members to assemble a series of common-sense recommendations for keeping guns from falling into the wrong hands, keeping our young people safe, and keeping our neighborhoods and schools more secure. This comprehensive plan – which President Obama announced last month – is founded on a consensus that emerged from the discussions we convened with representatives of more than 200 groups of policymakers, anti-violence advocates, gun owners and retailers, private organizations, police chiefs, and victims of gun crimes. And every step forward is predicated on the principle that President Obama laid out in the weeks after the Newtown tragedy: that "if there is even one thing we can do to reduce this violence – if there is even one life that can be saved – then we have an obligation to try."
This obligation has driven the Administration to call on Congress to adopt legislation to require "universal" background checks, so that a full background check is performed every time someone attempts to buy a gun; to impose tough new penalties on gun traffickers who help funnel deadly weapons to dangerous criminals; and to pass a ban on high-capacity magazines and military-style assault weapons, updated and stronger than the legislation enacted in 1994.
Beyond these proposals, agencies across the Administration are currently working to implement the 23 executive actions that President Obama announced in order to provide federal officials – and state leaders like you – with the tools and information we need to keep our citizens safe. For instance, we’ve begun encouraging private sellers to work with licensed gun dealers to run their transactions through the NICS background system – something that many already do on a regular basis, and that more can begin to do starting immediately. We’re moving to strengthen this critical tool by addressing gaps, making certain that the information included in the system is complete and accurate, and examining our laws to ensure they are effective when it comes to identifying those who should not have access to firearms.
We welcome your support for this important work. In ensuring that the NICS background check database is as complete as possible, state records are the lifeblood of the system. And I urge each of you to encourage law enforcement agencies in your state to make the most of the National Crime Information Center by both supplying – and then accessing – pertinent crime data. NCIC helps local law enforcement perform their work more safely – because it enables every officer on patrol to have at his or her fingertips a database of over 11 million records that can be tapped into 24 hours a day, 365 days a year.
In addition, the President has taken action to end what had essentially become a "freeze" on rigorous, non-partisan research into gun violence – and effective strategies for its prevention – by the Centers for Disease Control. He has instructed relevant agencies to issue guidance making clear that, under current law, doctors are not prohibited from reporting threats of violence to law enforcement. He’s directed agencies to finalize regulations, under the Affordable Care Act, that will increase access to mental health services for all who need them. And he has asked Administration leaders at every level to work alongside school districts and community officials to develop plans to make schools, institutions of higher learning, and houses of worship safer.
Contrary to what a few have said, all of these actions are consistent with the historical use of executive power. Not one will infringe upon the Constitutional rights of law-abiding citizens and gun owners. And all are essential parts of any serious, comprehensive effort to combat gun violence – and to prevent dangerous people from acquiring, and wreaking havoc with, deadly weapons.
Of course, just as important as translating these proposals into reality – and advancing our robust, national discussion about gun violence prevention – is the need to strengthen existing anti-violence initiatives and support the courageous men and women who routinely risk their lives to keep us safe. To this end, the Justice Department remains fully committed – and I remain determined – to do everything possible to reinforce the "thin blue line" that stands between our people and the criminal element that menaces our communities.
Since 2009, this commitment has led the Department to award more than $3.5 billion to our state and local partners under Byrne-JAG – a grant program that helps agencies and departments across the country close budgetary gaps and gain access to the resources they need. Additional funding streams have been made available through the COPS Hiring Program – which, over the last four years, has awarded more than $1.5 billion to create or protect over 8,000 jobs in local law enforcement. And as we look toward the future, we’re determined to continue making the investments our state and local partners need to build on the progress we’ve established in recent years – and stem the tide of violence against our brave men and women in uniform. That’s why the President’s plan to reduce gun violence calls for $4 billion in COPS Hiring Grants funding to support over 15,000 law enforcement officers.
Through the Department’s Officer Safety Working Group, we’re helping to develop key training and information-sharing platforms to allow officers in the field to better anticipate – and more effectively confront – specific threats in real-time. We’re exploring evidence-based strategies for preventing violent encounters – and helping to make such encounters survivable whenever they do occur. Through innovative programs like VALOR, we’ve disseminated more than 9,000 officer safety toolkits and provided over 5,000 law enforcement officers with tactical training and cutting-edge tools to respond to unpredictable threats – including ambush-style assaults. And thanks to initiatives like the Bulletproof Vest Partnership Program – which last year awarded almost $20 million to help more than 4,000 jurisdictions purchase protective equipment – we are, quite simply, helping to save lives – including the lives of at least 13 officers who were saved by vests purchased, in part, with federal funds.
There’s no question that we can all be encouraged by this work – and proud of the results we’ve obtained by working in close partnership with one another. But the reality is that our ability to continue building on this progress will be contingent on Congress adopting a balanced deficit reduction plan – and preventing the untenable reductions that will cut over $1.6 billion from the Justice Department’s budget starting on Friday.
If this so-called "sequester" goes into effect, it will not only curtail the Department’s ability to support our state and local partners, it will have a negative impact on the safety of Americans across the country. Our capacity – to respond to crimes, investigate wrongdoing, and hold criminals accountable – will be reduced. And, despite our best efforts to limit the impact of sequestration, there’s no question that the effects of these cuts – on our state and local partners, on our entire justice system, and on the American people – will be profound.
Today, I’d like to join many of the leaders in this room in urging Congressional leaders to act swiftly in ensuring that the Department will continue to have the funding we need to fulfill our critical missions, support essential allies like you, and keep our citizens safe. Despite the breadth and scope of this challenge – and the other obstacles and disagreements that we’ve faced in recent years – it’s clear that our resolve to stand together in reducing gun violence, preventing mass shootings, protecting the American people, and combating threats to law enforcement, is stronger than ever.
But recent achievements must not be stopping points. And this week – as you move through the ambitious agenda before you, and pledge yourselves once more to the difficult work that lies ahead – I want you to know that the National Association of Attorneys General has, and can always expect, my strongest support. It’s an honor to join you today in pledging my personal and professional commitment to continuing the work that must remain our shared purpose and common cause. I am fortunate to count you as partners and colleagues in fulfilling the sacred public trust that has been afforded to each of us. And I look forward to where our efforts can – and surely will – take us in the months and years ahead.
Thank you.
Attorney General Eric Holder Speaks at the National Association of Attorneys General Winter/Spring Meeting
Washington, D.C. ~ Tuesday, February 26, 2013
Thank you, Attorney General Gansler, for those kind words; for your leadership as President of the National Association of Attorneys General; for your service to the State of Maryland; and of course for your friendship over the years. As some of you know, Doug and I once worked together in the U.S. Attorney’s Office for the District of Columbia. So it’s a special privilege to stand with him today – and a pleasure to be included, once again, in this important annual meeting.
I’d particularly like to welcome this organization’s newest members – the 11 state attorneys general who are participating in this event for the first time. And I’d like to recognize – and thank – all of the good friends and colleagues who are here with us today. Thank you for lending your time, your diverse perspectives, and your immense talents to this Association’s critical work.
Over the past four years, I have been fortunate to work with many of the leaders in this room to confront a range of criminal justice, law enforcement, and national security challenges. Alongside my colleagues and counterparts throughout the Administration – including Vice President Biden, Director Cordray, Comptroller Curry, and Acting Associate Attorney General West, all of whom you’re hearing from this week – we’ve accomplished a great deal by working together across state boundaries and party lines. The Justice Department has benefitted – and, more importantly, the American people have benefitted – from your tireless work, your expert guidance, and your steadfast commitment to doing what’s best for those we’re privileged to serve. And the results of our collaboration speak for themselves.
By helping to strengthen our state and federal criminal justice systems, fighting to expand access to legal services, and advancing critical public safety initiatives and consumer protections, you’ve addressed persistent challenges and improved countless lives. You’ve made crime victims whole again. And you’ve brought assistance – and healing – to troubled areas.
In close partnership with the President’s Financial Fraud Enforcement Task Force, you’ve helped ensure that our approach in identifying and combating fraud targeting consumers, investors, and homeowners, has never been smarter, more systematic, or more effective. Last January, many of you joined with the Justice Department and other partners to bring about the largest joint federal-state residential mortgage settlement in our nation’s history. Since 2009, a number of you also have provided invaluable assistance to the federal investigation into alleged misconduct by Standard & Poor’s Financial Services – behavior that goes to the heart of the recent economic crisis. And no less than 13 of you are moving forward with parallel actions complementing the Department’s civil lawsuit, which I announced earlier this month.
From protecting our national security, to preventing domestic violence, eradicating human trafficking, cracking down on intellectual property crimes, and combating youth violence – my colleagues and I have been proud, and fortunate, to stand shoulder-to-shoulder with you all. Together, we’ve streamlined key investigative and enforcement activities across multiple agencies and offices – enabling leaders at every level of government to make the most of precious taxpayer resources. As a result, there can be no question that we’re making a meaningful, measurable difference in the lives of our fellow citizens each and every day.
Yet I recognize – as you do – that, for all we’ve accomplished, our work is far from over. When it comes to protecting the safety, and the sacred rights, of the American people, much remains to be done. In too many places, serious – and seemingly intractable – public safety challenges persist. And nowhere is this clearer than in our ongoing efforts to eradicate the gun violence that touches every jurisdiction represented here – and steals too many promising futures each year.
Last December’s horrific events in Newtown, Connecticut stand as shocking reminders of the epidemic that afflicts communities across the country – from inner cities, to rural areas, to tribal lands. But, on a daily basis, this unspeakable tragedy is compounded by countless individual tragedies that take place on our streets; that pass too often unnoticed; and that too frequently decimate the lives of our most vulnerable citizens: our children.
Every loss is shattering and inexplicable – and every one is an outrage. This is why – as concerned citizens, as heartbroken parents, and as public servants empowered to make a difference on behalf of those we’ve sworn to protect – it’s time for each of us to steel our resolve, and renew our commitment to respond to this senseless violence with renewed vigilance.
At every level of the Administration – and particularly at our nation’s Department of Justice – my colleagues and I are determined to work with organizations like this one to build bipartisan consensus for taking decisive action to end gun violence. And we will not rest until we’ve done everything in our power to prevent future tragedies like the one that took place at Sandy Hook Elementary School.
Of course, there will never be a simple, one-size-fits-all solution for addressing any challenge of this magnitude – and confronting all of its underlying causes. But we must not allow the size or complexity of this problem to deter us from taking action.
Earlier this year, under the leadership of Vice President Biden, I had the privilege of working with my fellow Cabinet members to assemble a series of common-sense recommendations for keeping guns from falling into the wrong hands, keeping our young people safe, and keeping our neighborhoods and schools more secure. This comprehensive plan – which President Obama announced last month – is founded on a consensus that emerged from the discussions we convened with representatives of more than 200 groups of policymakers, anti-violence advocates, gun owners and retailers, private organizations, police chiefs, and victims of gun crimes. And every step forward is predicated on the principle that President Obama laid out in the weeks after the Newtown tragedy: that "if there is even one thing we can do to reduce this violence – if there is even one life that can be saved – then we have an obligation to try."
This obligation has driven the Administration to call on Congress to adopt legislation to require "universal" background checks, so that a full background check is performed every time someone attempts to buy a gun; to impose tough new penalties on gun traffickers who help funnel deadly weapons to dangerous criminals; and to pass a ban on high-capacity magazines and military-style assault weapons, updated and stronger than the legislation enacted in 1994.
Beyond these proposals, agencies across the Administration are currently working to implement the 23 executive actions that President Obama announced in order to provide federal officials – and state leaders like you – with the tools and information we need to keep our citizens safe. For instance, we’ve begun encouraging private sellers to work with licensed gun dealers to run their transactions through the NICS background system – something that many already do on a regular basis, and that more can begin to do starting immediately. We’re moving to strengthen this critical tool by addressing gaps, making certain that the information included in the system is complete and accurate, and examining our laws to ensure they are effective when it comes to identifying those who should not have access to firearms.
We welcome your support for this important work. In ensuring that the NICS background check database is as complete as possible, state records are the lifeblood of the system. And I urge each of you to encourage law enforcement agencies in your state to make the most of the National Crime Information Center by both supplying – and then accessing – pertinent crime data. NCIC helps local law enforcement perform their work more safely – because it enables every officer on patrol to have at his or her fingertips a database of over 11 million records that can be tapped into 24 hours a day, 365 days a year.
In addition, the President has taken action to end what had essentially become a "freeze" on rigorous, non-partisan research into gun violence – and effective strategies for its prevention – by the Centers for Disease Control. He has instructed relevant agencies to issue guidance making clear that, under current law, doctors are not prohibited from reporting threats of violence to law enforcement. He’s directed agencies to finalize regulations, under the Affordable Care Act, that will increase access to mental health services for all who need them. And he has asked Administration leaders at every level to work alongside school districts and community officials to develop plans to make schools, institutions of higher learning, and houses of worship safer.
Contrary to what a few have said, all of these actions are consistent with the historical use of executive power. Not one will infringe upon the Constitutional rights of law-abiding citizens and gun owners. And all are essential parts of any serious, comprehensive effort to combat gun violence – and to prevent dangerous people from acquiring, and wreaking havoc with, deadly weapons.
Of course, just as important as translating these proposals into reality – and advancing our robust, national discussion about gun violence prevention – is the need to strengthen existing anti-violence initiatives and support the courageous men and women who routinely risk their lives to keep us safe. To this end, the Justice Department remains fully committed – and I remain determined – to do everything possible to reinforce the "thin blue line" that stands between our people and the criminal element that menaces our communities.
Since 2009, this commitment has led the Department to award more than $3.5 billion to our state and local partners under Byrne-JAG – a grant program that helps agencies and departments across the country close budgetary gaps and gain access to the resources they need. Additional funding streams have been made available through the COPS Hiring Program – which, over the last four years, has awarded more than $1.5 billion to create or protect over 8,000 jobs in local law enforcement. And as we look toward the future, we’re determined to continue making the investments our state and local partners need to build on the progress we’ve established in recent years – and stem the tide of violence against our brave men and women in uniform. That’s why the President’s plan to reduce gun violence calls for $4 billion in COPS Hiring Grants funding to support over 15,000 law enforcement officers.
Through the Department’s Officer Safety Working Group, we’re helping to develop key training and information-sharing platforms to allow officers in the field to better anticipate – and more effectively confront – specific threats in real-time. We’re exploring evidence-based strategies for preventing violent encounters – and helping to make such encounters survivable whenever they do occur. Through innovative programs like VALOR, we’ve disseminated more than 9,000 officer safety toolkits and provided over 5,000 law enforcement officers with tactical training and cutting-edge tools to respond to unpredictable threats – including ambush-style assaults. And thanks to initiatives like the Bulletproof Vest Partnership Program – which last year awarded almost $20 million to help more than 4,000 jurisdictions purchase protective equipment – we are, quite simply, helping to save lives – including the lives of at least 13 officers who were saved by vests purchased, in part, with federal funds.
There’s no question that we can all be encouraged by this work – and proud of the results we’ve obtained by working in close partnership with one another. But the reality is that our ability to continue building on this progress will be contingent on Congress adopting a balanced deficit reduction plan – and preventing the untenable reductions that will cut over $1.6 billion from the Justice Department’s budget starting on Friday.
If this so-called "sequester" goes into effect, it will not only curtail the Department’s ability to support our state and local partners, it will have a negative impact on the safety of Americans across the country. Our capacity – to respond to crimes, investigate wrongdoing, and hold criminals accountable – will be reduced. And, despite our best efforts to limit the impact of sequestration, there’s no question that the effects of these cuts – on our state and local partners, on our entire justice system, and on the American people – will be profound.
Today, I’d like to join many of the leaders in this room in urging Congressional leaders to act swiftly in ensuring that the Department will continue to have the funding we need to fulfill our critical missions, support essential allies like you, and keep our citizens safe. Despite the breadth and scope of this challenge – and the other obstacles and disagreements that we’ve faced in recent years – it’s clear that our resolve to stand together in reducing gun violence, preventing mass shootings, protecting the American people, and combating threats to law enforcement, is stronger than ever.
But recent achievements must not be stopping points. And this week – as you move through the ambitious agenda before you, and pledge yourselves once more to the difficult work that lies ahead – I want you to know that the National Association of Attorneys General has, and can always expect, my strongest support. It’s an honor to join you today in pledging my personal and professional commitment to continuing the work that must remain our shared purpose and common cause. I am fortunate to count you as partners and colleagues in fulfilling the sacred public trust that has been afforded to each of us. And I look forward to where our efforts can – and surely will – take us in the months and years ahead.
Thank you.
Friday, March 1, 2013
MICHIGAN MAN FOUND GUILTY FOR PART IN CHILD EXPLOITATION CASE
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 28, 2013
Michigan Man Found Guilty in Florida of Child Sex Tourism Charges
A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Miami office.
Matthew Andrew Carter, aka "William Charles Harcourt" and "Bill Carter," 67, formerly of Brighton, Mich., was found guilty in U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter was charged in a second superseding indictment returned on Jan. 12, 2012.
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt and Winter Haven, Fla.
At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts. Carter is scheduled for sentencing on May 20, 2013, in Miami before U.S. District Judge Joan A. Lenard.
The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami field office; the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the FBI’s Washington, Boston and Miami field offices; and the ICE-HSI Attaché’s Offices in London and Cairo.
Thursday, February 28, 2013
Michigan Man Found Guilty in Florida of Child Sex Tourism Charges
A former Michigan resident was found guilty by a federal jury today in Miami of child sex tourism charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer and Special Agent in Charge Alysa D. Erichs of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Miami office.
Matthew Andrew Carter, aka "William Charles Harcourt" and "Bill Carter," 67, formerly of Brighton, Mich., was found guilty in U.S. District Court for the Southern District of Florida of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. Carter was charged in a second superseding indictment returned on Jan. 12, 2012.
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed them, send them to school or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo, Egypt and Winter Haven, Fla.
At sentencing, Carter faces a maximum sentence of 15 years in prison on one count and a maximum sentence of 30 years in prison for each of the other five counts. Carter is scheduled for sentencing on May 20, 2013, in Miami before U.S. District Judge Joan A. Lenard.
The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Child Exploitation and Obscenity Section Trial Attorney Bonnie L. Kane of the Criminal Division. The case against Carter was investigated by ICE-HSI in Miami, the ICE-HSI Assistant Attaché’s Office in Santo Domingo, Dominican Republic and the ICE-HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami field office; the Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; the Ministry of the Interior for Haiti; the Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince, Haiti; the Consular Section of the U.S. Embassy in Port-au-Prince, Haiti; the London Metropolitan Police Service; the FBI’s Washington, Boston and Miami field offices; and the ICE-HSI Attaché’s Offices in London and Cairo.
Wednesday, February 27, 2013
MEMBER LA COSA NOSTRA SENTENCED TO 55 MONTHS IN PRISON
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, February 25, 2013
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months in Prison
Louis Fazzini was sentenced today to serve 55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and John Brosnan, Acting Special Agent in Charge of the FBI’s Philadelphia Division.
Fazzini, 46, of Caldwell, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Fazzini was sentenced to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a "made" member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a "no show" job controlled by the LCN in furtherance of the racketeering conspiracy. As a "no show" employee, Fazzini performed no work or productive services, while still receiving health benefits.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
Monday, February 25, 2013
Member of Philadelphia La Cosa Nostra Sentenced to 55 Months in Prison
Louis Fazzini was sentenced today to serve 55 months in prison for his participation in a racketeering conspiracy involving illegal gambling and theft from an employee benefit plan, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and John Brosnan, Acting Special Agent in Charge of the FBI’s Philadelphia Division.
Fazzini, 46, of Caldwell, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Fazzini was sentenced to serve three years of supervised release following his prison term.
On Oct. 5, 2012, Fazzini pleaded guilty to conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. At the time of the plea colloquy, he admitted that, as a "made" member of the North Jersey crew of the Philadelphia LCN Family, he operated a sports bookmaking business and devised a fraudulent scheme to obtain health benefits through a "no show" job controlled by the LCN in furtherance of the racketeering conspiracy. As a "no show" employee, Fazzini performed no work or productive services, while still receiving health benefits.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, and the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
Monday, February 25, 2013
JUSTICE SEEKS TO SHUT DOWN NJ TAX PREPARER
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 21, 2013
Justice Department Seeks to Shut Down New Jersey Tax Return Preparer
Garfield, N.J., Woman Prepared Tax Returns That Improperly Claimed Earned Income Tax Credit
The United States has asked a federal court in Camden, N.J., to bar Doris E. Baules, who operates D’Vazquez Tax Solutions, from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Baules continually and improperly claimed the Earned Income Tax Credit (EITC) on her clients’ returns to enable them to receive erroneous tax refunds. The suit alleges that the defendant improperly increases their EITC claims.
According to the complaint, the Internal Revenue Service previously conducted an investigation into the tax returns that Baules prepared for the 2009 tax year, and assessed $12,500 in return preparer penalties against her because she failed to exercise due diligence in determining whether her clients were entitled to the EITC. Baules continued to claim increased EITC on returns she prepared even after the IRS contacted her. According to the complaint, the total harm to the U.S. Treasury caused by Doris Baules’ misconduct is estimated to be as high as $6.2 million.
Thursday, February 21, 2013
Justice Department Seeks to Shut Down New Jersey Tax Return Preparer
Garfield, N.J., Woman Prepared Tax Returns That Improperly Claimed Earned Income Tax Credit
The United States has asked a federal court in Camden, N.J., to bar Doris E. Baules, who operates D’Vazquez Tax Solutions, from preparing tax returns for others, the Justice Department announced today. According to the government complaint, Baules continually and improperly claimed the Earned Income Tax Credit (EITC) on her clients’ returns to enable them to receive erroneous tax refunds. The suit alleges that the defendant improperly increases their EITC claims.
According to the complaint, the Internal Revenue Service previously conducted an investigation into the tax returns that Baules prepared for the 2009 tax year, and assessed $12,500 in return preparer penalties against her because she failed to exercise due diligence in determining whether her clients were entitled to the EITC. Baules continued to claim increased EITC on returns she prepared even after the IRS contacted her. According to the complaint, the total harm to the U.S. Treasury caused by Doris Baules’ misconduct is estimated to be as high as $6.2 million.
Sunday, February 24, 2013
ATTORNEY GENERAL HOLDER SPEAKS AT MEDAL OF VALOR CEREMONY
FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the Medal of Valor Awards Ceremony
Washington, D.C. ~ Wednesday, February 20, 2013
Thank you, Mary Lou , for those kind words; for your outstanding leadership of the Office of Justice Programs; and for your dedication to supporting public safety officers throughout the nation. It’s a pleasure to be with you today, and a privilege to join Vice President Biden and so many distinguished public servants – including Representative Cartwright; Director of the Bureau of Prisons Charles Samuels; Acting Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Todd Jones; and Director of the Bureau of Justice Assistance Denise O’Donnell – in paying tribute to this year’s recipients of the Medal of Valor.
This is an extraordinary occasion. I am grateful for the opportunity to acknowledge, and personally thank, each of our honorees – for their service to the American people; for their bravery in the face of grave dangers; and for all that they’ve sacrificed in the name of public and community safety.
I’d like to extend a special welcome to the colleagues, friends, invited guests, and proud family members who have traveled from across the country to salute these remarkable men and women. I’d like to thank you for all you’ve done to support those we’ve gathered to honor and to make their achievements possible. It’s a privilege to share this moment with you as we celebrate the work of these inspiring public servants, and present them with one of our nation’s most prestigious recognitions.
Today’s award recipients have distinguished themselves by going above and beyond the call of duty. And they now join the ranks of a select group of police officers and firefighters; sheriffs and EMTs; rescue squad members and highway patrolmen – who have earned this accolade, and who elevate America’s finest traditions of public service every day.
From our biggest cities to our smallest towns, the people we honor today stand on the front lines of the struggle against crime, terrorism, and threats to our most vulnerable communities.
These Medal of Valor recipients have fearlessly responded to desperate cries for help and have courageously risked their own lives to secure innocent victims, protect fellow officers, and end deadly assaults. Some entered a burning building – without hesitation and without the protection of a fire hose – to rescue an infant trapped inside. Another took quick and decisive action to subdue an armed and violent inmate plotting an escape from prison. And one of our awardees caught fire and braved temperatures over 1,000 degrees while carrying a victim to safety.
Through these selfless acts – and through the service you render to your communities and fellow citizens every day – each of you has earned the deepest thanks of a grateful nation. And all of you have incurred a debt of gratitude that this country can only hope to repay.
While no words can fully capture the courage that you have demonstrated, I believe you now join a cadre of heroes whose actions will always be remembered. And it is my sincere hope that your Medal of Valor will stand as a timeless tribute to your achievements – and a symbol of the tradition of excellence you each exemplify.
Of course, even as we celebrate the conduct – and the contributions – that define this remarkable group of public safety officers, we must be mindful of the fact that serious challenges – and urgent threats – remain before us. Just as this ceremony provides a chance to lift up the stories of our heroes, it also reminds us just how difficult and demanding your jobs can be. But that’s why, as I look around this crowd, I cannot help but feel confident about where your efforts will lead us from here.
Once again, on behalf of my colleagues across the Department of Justice: thank you for all that you do. I am proud to count you as partners in the work that remains our shared responsibility. And I congratulate you on this well-deserved honor.
Now, it is my privilege to introduce one of our country’s most principled leaders, a tireless advocate for public safety officers everywhere, and a very good friend whose lifelong service and commitment to our nation are an inspiration to us all.
Attorney General Eric Holder Speaks at the Medal of Valor Awards Ceremony
Washington, D.C. ~ Wednesday, February 20, 2013
Thank you, Mary Lou , for those kind words; for your outstanding leadership of the Office of Justice Programs; and for your dedication to supporting public safety officers throughout the nation. It’s a pleasure to be with you today, and a privilege to join Vice President Biden and so many distinguished public servants – including Representative Cartwright; Director of the Bureau of Prisons Charles Samuels; Acting Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Todd Jones; and Director of the Bureau of Justice Assistance Denise O’Donnell – in paying tribute to this year’s recipients of the Medal of Valor.
This is an extraordinary occasion. I am grateful for the opportunity to acknowledge, and personally thank, each of our honorees – for their service to the American people; for their bravery in the face of grave dangers; and for all that they’ve sacrificed in the name of public and community safety.
I’d like to extend a special welcome to the colleagues, friends, invited guests, and proud family members who have traveled from across the country to salute these remarkable men and women. I’d like to thank you for all you’ve done to support those we’ve gathered to honor and to make their achievements possible. It’s a privilege to share this moment with you as we celebrate the work of these inspiring public servants, and present them with one of our nation’s most prestigious recognitions.
Today’s award recipients have distinguished themselves by going above and beyond the call of duty. And they now join the ranks of a select group of police officers and firefighters; sheriffs and EMTs; rescue squad members and highway patrolmen – who have earned this accolade, and who elevate America’s finest traditions of public service every day.
From our biggest cities to our smallest towns, the people we honor today stand on the front lines of the struggle against crime, terrorism, and threats to our most vulnerable communities.
These Medal of Valor recipients have fearlessly responded to desperate cries for help and have courageously risked their own lives to secure innocent victims, protect fellow officers, and end deadly assaults. Some entered a burning building – without hesitation and without the protection of a fire hose – to rescue an infant trapped inside. Another took quick and decisive action to subdue an armed and violent inmate plotting an escape from prison. And one of our awardees caught fire and braved temperatures over 1,000 degrees while carrying a victim to safety.
Through these selfless acts – and through the service you render to your communities and fellow citizens every day – each of you has earned the deepest thanks of a grateful nation. And all of you have incurred a debt of gratitude that this country can only hope to repay.
While no words can fully capture the courage that you have demonstrated, I believe you now join a cadre of heroes whose actions will always be remembered. And it is my sincere hope that your Medal of Valor will stand as a timeless tribute to your achievements – and a symbol of the tradition of excellence you each exemplify.
Of course, even as we celebrate the conduct – and the contributions – that define this remarkable group of public safety officers, we must be mindful of the fact that serious challenges – and urgent threats – remain before us. Just as this ceremony provides a chance to lift up the stories of our heroes, it also reminds us just how difficult and demanding your jobs can be. But that’s why, as I look around this crowd, I cannot help but feel confident about where your efforts will lead us from here.
Once again, on behalf of my colleagues across the Department of Justice: thank you for all that you do. I am proud to count you as partners in the work that remains our shared responsibility. And I congratulate you on this well-deserved honor.
Now, it is my privilege to introduce one of our country’s most principled leaders, a tireless advocate for public safety officers everywhere, and a very good friend whose lifelong service and commitment to our nation are an inspiration to us all.
Saturday, February 23, 2013
HEALTH CARE WORKER ADMITS SELLING MEDICARE INFORMATION TO HOME HEALTH AGENCY OPERATORS
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, February 22, 2013
Illegal Marketer of Medicare Information Admits Role in Detroit-area Home Health Care Fraud Scheme
A health care worker who sold Medicare beneficiary information to Detroit-area home health agency operators as part of a $24.7 million home health care fraud conspiracy pleaded guilty today for his role in the scheme, which sought to profit by billing for home healthcare services that were medically unnecessary and not provided.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Clarence Cooper, 54, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Cooper and others conspired to defraud Medicare through purported home health care companies operating in the Detroit area, including now-defunct First Choice Home Health Care Services Inc. and Reliance Home Care, LLC. Cooper admitted that he sold Medicare information he obtained from Detroit-area Medicare beneficiaries to other conspirators at these and other health care companies, knowing that it was to be used to submit claims to Medicare for home health services that were not medically necessary and/or not provided. According to court documents, from 2008 through May 2012, Cooper sold co-conspirators the Medicare information of hundreds of Medicare beneficiaries, at $200 to $300 per beneficiary, and this Medicare information was used at these companies to bill Medicare for nearly $1 million in home health care services.
Court documents show that the larger scheme in which Cooper participated resulted in more than $24.7 million in claims to Medicare for the cost of home health services, psychotherapy and other medical services.
Cooper faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for July 23, 2013.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, February 22, 2013
Illegal Marketer of Medicare Information Admits Role in Detroit-area Home Health Care Fraud Scheme
A health care worker who sold Medicare beneficiary information to Detroit-area home health agency operators as part of a $24.7 million home health care fraud conspiracy pleaded guilty today for his role in the scheme, which sought to profit by billing for home healthcare services that were medically unnecessary and not provided.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Clarence Cooper, 54, of Detroit, pleaded guilty before U.S. District Judge Victoria A. Roberts in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Cooper and others conspired to defraud Medicare through purported home health care companies operating in the Detroit area, including now-defunct First Choice Home Health Care Services Inc. and Reliance Home Care, LLC. Cooper admitted that he sold Medicare information he obtained from Detroit-area Medicare beneficiaries to other conspirators at these and other health care companies, knowing that it was to be used to submit claims to Medicare for home health services that were not medically necessary and/or not provided. According to court documents, from 2008 through May 2012, Cooper sold co-conspirators the Medicare information of hundreds of Medicare beneficiaries, at $200 to $300 per beneficiary, and this Medicare information was used at these companies to bill Medicare for nearly $1 million in home health care services.
Court documents show that the larger scheme in which Cooper participated resulted in more than $24.7 million in claims to Medicare for the cost of home health services, psychotherapy and other medical services.
Cooper faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is currently scheduled for July 23, 2013.
This case is being prosecuted by Trial Attorney William G. Kanellis and Assistant Chief Gejaa Gobena of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
Friday, February 22, 2013
ALLEGED EXTORTION OF DETROIT RESTAURANT OWNER
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 21, 2013
Two Men Arrested for Alleged Extortion of Detroit-Area Restaurant Owner
Two men were arrested today on charges of allegedly extorting a Detroit-area restaurant owner, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan and Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Division.
Giuseppe D’Anna, aka "Joe," 60, and Girolamo D’Anna, aka "Mimmo," 48, were charged in an indictment unsealed today in U.S. District Court in the Eastern District of Michigan. Both defendants made their initial court appearances today in Detroit.
The defendants are charged in a three-count indictment with one count of Hobbs Act conspiracy and two counts of attempted Hobbs Act extortion, each of which carries a maximum penalty of 20 years in prison. According to the indictment, the defendants and other co-conspirators allegedly attempted to extort the owner of a Shelby Township, Mich., restaurant from approximately 2009 through approximately April 2011.
Indictments are only charges and not evidence of guilt. The defendants are presumed to be innocent until and unless proven guilty.
The investigation of this case was led by the FBI’s Detroit Field Division. Assistant U.S. Attorney Eric Straus of the Eastern District of Michigan and Principal Deputy Chief David Jaffe of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Thursday, February 21, 2013
Two Men Arrested for Alleged Extortion of Detroit-Area Restaurant Owner
Two men were arrested today on charges of allegedly extorting a Detroit-area restaurant owner, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan and Robert D. Foley III, Special Agent in Charge of the FBI Detroit Field Division.
Giuseppe D’Anna, aka "Joe," 60, and Girolamo D’Anna, aka "Mimmo," 48, were charged in an indictment unsealed today in U.S. District Court in the Eastern District of Michigan. Both defendants made their initial court appearances today in Detroit.
The defendants are charged in a three-count indictment with one count of Hobbs Act conspiracy and two counts of attempted Hobbs Act extortion, each of which carries a maximum penalty of 20 years in prison. According to the indictment, the defendants and other co-conspirators allegedly attempted to extort the owner of a Shelby Township, Mich., restaurant from approximately 2009 through approximately April 2011.
Indictments are only charges and not evidence of guilt. The defendants are presumed to be innocent until and unless proven guilty.
The investigation of this case was led by the FBI’s Detroit Field Division. Assistant U.S. Attorney Eric Straus of the Eastern District of Michigan and Principal Deputy Chief David Jaffe of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
Wednesday, February 20, 2013
FORMER GOVERNMENT EMPLOYEE PLEADS GUILTY TO TAKING BRIBES
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 14, 2013
Georgia Woman Admits to Taking Bribes for the Award of Government Contracts
A former employee at the Marine Corps Logistics Base Albany pleaded guilty today to receiving bribes related to the award of contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Michelle Rodriguez, 32, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During her guilty plea, Rodriguez, who worked as a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to companies operated by Thomas J. Cole and Frederick Simon, both of whom pleaded guilty to bribery charges in January 2013.
According to court documents, the MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been used in military missions in Afghanistan, Iraq and other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon by fax or email, usually following up with a text message specifying how much the company seeking the contract should bid. Simon, with Cole’s knowledge, would then bid the amount specified by Rodriguez on each order, which was normally higher than fair market value. Rodriguez was paid $75.00 cash per order. Rodriguez admitted during today’s hearing that she awarded Cole and Simon’s companies nearly 1,300 machine product orders, all in exchange for bribes.
Rodriguez also admitted that in 2011, she began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. Rodriguez admitted receiving approximately $161,000 in bribes during the nearly two-year scheme. Cole and Simon previously admitted to personally receiving approximately $209,000 and $74,500 in proceeds from the scheme, respectively. Rodriguez, Cole and Simon all conceded that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Rodriguez faces a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss from the offense. As part of her plea agreement with the United States, Rodriguez agreed to forfeit the bribe proceeds she received from the scheme, as well as to pay full restitution to the Department of Defense. The plea agreement also required her to resign her position at the MCA. Sentencing is scheduled for April 25, 2013.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Thursday, February 14, 2013
Georgia Woman Admits to Taking Bribes for the Award of Government Contracts
A former employee at the Marine Corps Logistics Base Albany pleaded guilty today to receiving bribes related to the award of contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Michelle Rodriguez, 32, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During her guilty plea, Rodriguez, who worked as a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to companies operated by Thomas J. Cole and Frederick Simon, both of whom pleaded guilty to bribery charges in January 2013.
According to court documents, the MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been used in military missions in Afghanistan, Iraq and other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon by fax or email, usually following up with a text message specifying how much the company seeking the contract should bid. Simon, with Cole’s knowledge, would then bid the amount specified by Rodriguez on each order, which was normally higher than fair market value. Rodriguez was paid $75.00 cash per order. Rodriguez admitted during today’s hearing that she awarded Cole and Simon’s companies nearly 1,300 machine product orders, all in exchange for bribes.
Rodriguez also admitted that in 2011, she began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. Rodriguez admitted receiving approximately $161,000 in bribes during the nearly two-year scheme. Cole and Simon previously admitted to personally receiving approximately $209,000 and $74,500 in proceeds from the scheme, respectively. Rodriguez, Cole and Simon all conceded that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Rodriguez faces a maximum potential penalty of 15 years in prison and a fine of twice the gross gain or loss from the offense. As part of her plea agreement with the United States, Rodriguez agreed to forfeit the bribe proceeds she received from the scheme, as well as to pay full restitution to the Department of Defense. The plea agreement also required her to resign her position at the MCA. Sentencing is scheduled for April 25, 2013.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Sunday, February 17, 2013
WOMAN SENTENCED FOR OBSTRUCTION OF JUSTICE IN HUSBAND'S DISAPPEARANCE
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, February 15, 2013
Florida Woman Sentenced to Prison for Obstruction of Justice in Relation to Her Husband’s Disappearance
A Gainesville, Fla., woman was sentenced today to serve one year and one day in prison for her role in the obstruction of a multinational investigation into the disappearance of her husband, then an employee in the U.S. Consulate in Curacao, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Pamela C. Marsh for the Northern District of Florida, Director of the U.S. State Department’s Diplomatic Security Service ( DSS) Gregory B. Starr and Special Agent in Charge of the FBI’s Miami Field Office Michael B. Steinbach.
Abby Beard Hogan, 50, was sentenced by U.S. District Judge M. Casey Rodgers in the Northern District of Florida. In addition to her prison term, Hogan was sentenced to two years of supervised release. On March 29, 2012, Hogan pleaded guilty before U.S. Magistrate Judge Gary R. Jones to one count of obstruction of justice.
According to court documents, on the night of Sept. 24, 2009, Abby Hogan’s husband, James Hogan, an employee at the U.S. Consulate in Curacao, a Caribbean island that was part of the Netherlands Antilles, left his home on foot and subsequently disappeared. In the early hours of Sept. 25, 2009, James Hogan called his wife and spoke for approximately three minutes. The next day, when James Hogan failed to report to work, the U.S. government and Dutch and Antillean law enforcement launched an island-wide search and opened an investigation into Hogan’s disappearance. On Sept. 25, 2009, a diver located James Hogan’s blood-stained clothing on a local beach.
According to evidence submitted in Abby Hogan’s sentencing hearing, she repeatedly provided false information to U.S. law enforcement about the time period before James Hogan’s disappearance and withheld relevant information. Abby Hogan initially told investigators that, before his disappearance, she and her husband had an argument. She subsequently modified that statement and claimed that there had been no argument, just a minor disagreement over her husband’s next assignment for the State Department. Abby Hogan further told U.S. law enforcement agents that James Hogan had been in a "good mood" prior to leaving for his walk on the evening of his disappearance. She repeatedly denied that there had been any marital problems or that her husband had been upset or depressed in any way. Abby Hogan further stated that she could not remember the full three-minute conversation before her husband disappeared because she was sound asleep when her husband called. She claimed she fell back asleep after the call, and did not awake until the following morning. In fact, all of these statements were false, as established by the deleted emails and other computer forensic evidence, which was submitted to the court.
According to court documents, after law enforcement interviews, between Sept. 30, 2009, and Jan. 15, 2010, Abby Hogan deleted more than 300 emails from her email account. These emails contained information that Abby Hogan knew was relevant to specific questions she had been asked by U.S. law enforcement. The emails also contained information that she had either previously misrepresented or knowingly omitted during her interviews with law enforcement, including that she was engaged in an extramarital affair; the night James Hogan disappeared, the couple had argued, and he left the house angry and upset; and that she did not want law enforcement to know what had happened that evening.
The case was prosecuted by Senior Trial Attorney Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frank Williams for the Northern District of Florida. The Criminal Division’s Office of International Affairs provided assistance. The case was investigated by DSS and the FBI’s Miami Field Office and Legal Attaché Office in Bridgetown, Barbados. Assistance was also provided by Curacao law enforcement authorities.
Friday, February 15, 2013
Florida Woman Sentenced to Prison for Obstruction of Justice in Relation to Her Husband’s Disappearance
A Gainesville, Fla., woman was sentenced today to serve one year and one day in prison for her role in the obstruction of a multinational investigation into the disappearance of her husband, then an employee in the U.S. Consulate in Curacao, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Pamela C. Marsh for the Northern District of Florida, Director of the U.S. State Department’s Diplomatic Security Service ( DSS) Gregory B. Starr and Special Agent in Charge of the FBI’s Miami Field Office Michael B. Steinbach.
Abby Beard Hogan, 50, was sentenced by U.S. District Judge M. Casey Rodgers in the Northern District of Florida. In addition to her prison term, Hogan was sentenced to two years of supervised release. On March 29, 2012, Hogan pleaded guilty before U.S. Magistrate Judge Gary R. Jones to one count of obstruction of justice.
According to court documents, on the night of Sept. 24, 2009, Abby Hogan’s husband, James Hogan, an employee at the U.S. Consulate in Curacao, a Caribbean island that was part of the Netherlands Antilles, left his home on foot and subsequently disappeared. In the early hours of Sept. 25, 2009, James Hogan called his wife and spoke for approximately three minutes. The next day, when James Hogan failed to report to work, the U.S. government and Dutch and Antillean law enforcement launched an island-wide search and opened an investigation into Hogan’s disappearance. On Sept. 25, 2009, a diver located James Hogan’s blood-stained clothing on a local beach.
According to evidence submitted in Abby Hogan’s sentencing hearing, she repeatedly provided false information to U.S. law enforcement about the time period before James Hogan’s disappearance and withheld relevant information. Abby Hogan initially told investigators that, before his disappearance, she and her husband had an argument. She subsequently modified that statement and claimed that there had been no argument, just a minor disagreement over her husband’s next assignment for the State Department. Abby Hogan further told U.S. law enforcement agents that James Hogan had been in a "good mood" prior to leaving for his walk on the evening of his disappearance. She repeatedly denied that there had been any marital problems or that her husband had been upset or depressed in any way. Abby Hogan further stated that she could not remember the full three-minute conversation before her husband disappeared because she was sound asleep when her husband called. She claimed she fell back asleep after the call, and did not awake until the following morning. In fact, all of these statements were false, as established by the deleted emails and other computer forensic evidence, which was submitted to the court.
According to court documents, after law enforcement interviews, between Sept. 30, 2009, and Jan. 15, 2010, Abby Hogan deleted more than 300 emails from her email account. These emails contained information that Abby Hogan knew was relevant to specific questions she had been asked by U.S. law enforcement. The emails also contained information that she had either previously misrepresented or knowingly omitted during her interviews with law enforcement, including that she was engaged in an extramarital affair; the night James Hogan disappeared, the couple had argued, and he left the house angry and upset; and that she did not want law enforcement to know what had happened that evening.
The case was prosecuted by Senior Trial Attorney Teresa Wallbaum of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frank Williams for the Northern District of Florida. The Criminal Division’s Office of International Affairs provided assistance. The case was investigated by DSS and the FBI’s Miami Field Office and Legal Attaché Office in Bridgetown, Barbados. Assistance was also provided by Curacao law enforcement authorities.
Friday, February 15, 2013
MAN ADMITS TO TAKING BRIBES TO ALLOW THEFT OF EQUIPMENT FROM MARINE BASE
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, February 13, 2013
Georgia Man Admits Taking Bribes to Allow $1 Million Theft of Government Equipment from Marine Base
A retired employee of the Marine Corps Logistics Base Albany (MCLB-Albany) pleaded guilty today to receiving bribes in exchange for allowing heavy equipment to be stolen from the base for resale, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Shelby C. Janes, 67, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Janes, the former civilian inventory control manager of the distribution management center at MCLB-Albany, admitted to participating in a scheme in which he assisted an individual, referred to in court documents as "Person A," in stealing heavy equipment – such as cranes, bulldozers and front-end loaders – from the base. Person A, the owner of a commercial trucking business that was routinely contracted by the MCLB’s Defense Logistics Agency, then arranged to sell the equipment to private purchasers.
According to court documents, while working at the distribution management center, Janes was responsible for supervising a number of employees in the inventorying of obsolete equipment returning from the Fleet Marine Corps. This equipment was sent to MCLB-Albany for one of two purposes: to be demilitarized and disposed of through eventual sale or destruction, or to be rehabilitated, repaired and redistributed to the Fleet Marine Corps. To accomplish the theft scheme, Janes and one of his employees, referred to in court documents as "Public Official A," facilitated the theft of the equipment, including by letting the equipment be driven off the base. Janes admitted that to facilitate the unlawful removal of the equipment, he typically prepared a false DD Form 1348 authorizing the Defense Logistics Agency to release the equipment to Person A, and that the equipment was then sold to private purchasers for tens of thousands of dollars.
Janes also admitted that he received payments from Person A after the sale of the stolen equipment, often delivered to him by Public Official A on behalf of Person A in the form of a check or cash, totaling approximately $98,500 during the approximately 15-month scheme. Janes admitted that the total loss to the Department of Defense from the theft of government equipment was approximately $1,075,000.
At sentencing, Janes faces a maximum potential penalty of 15 years in prison and a fine of twice the gain or loss from the offense. As part of his plea agreement with the United States, Janes agreed to forfeit the bribe proceeds he received from the scheme, as well as to pay full restitution to the Department of Defense. A sentencing date has not yet been set.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Wednesday, February 13, 2013
Georgia Man Admits Taking Bribes to Allow $1 Million Theft of Government Equipment from Marine Base
A retired employee of the Marine Corps Logistics Base Albany (MCLB-Albany) pleaded guilty today to receiving bribes in exchange for allowing heavy equipment to be stolen from the base for resale, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Shelby C. Janes, 67, of Albany, Ga., pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Janes, the former civilian inventory control manager of the distribution management center at MCLB-Albany, admitted to participating in a scheme in which he assisted an individual, referred to in court documents as "Person A," in stealing heavy equipment – such as cranes, bulldozers and front-end loaders – from the base. Person A, the owner of a commercial trucking business that was routinely contracted by the MCLB’s Defense Logistics Agency, then arranged to sell the equipment to private purchasers.
According to court documents, while working at the distribution management center, Janes was responsible for supervising a number of employees in the inventorying of obsolete equipment returning from the Fleet Marine Corps. This equipment was sent to MCLB-Albany for one of two purposes: to be demilitarized and disposed of through eventual sale or destruction, or to be rehabilitated, repaired and redistributed to the Fleet Marine Corps. To accomplish the theft scheme, Janes and one of his employees, referred to in court documents as "Public Official A," facilitated the theft of the equipment, including by letting the equipment be driven off the base. Janes admitted that to facilitate the unlawful removal of the equipment, he typically prepared a false DD Form 1348 authorizing the Defense Logistics Agency to release the equipment to Person A, and that the equipment was then sold to private purchasers for tens of thousands of dollars.
Janes also admitted that he received payments from Person A after the sale of the stolen equipment, often delivered to him by Public Official A on behalf of Person A in the form of a check or cash, totaling approximately $98,500 during the approximately 15-month scheme. Janes admitted that the total loss to the Department of Defense from the theft of government equipment was approximately $1,075,000.
At sentencing, Janes faces a maximum potential penalty of 15 years in prison and a fine of twice the gain or loss from the offense. As part of his plea agreement with the United States, Janes agreed to forfeit the bribe proceeds he received from the scheme, as well as to pay full restitution to the Department of Defense. A sentencing date has not yet been set.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Justice Department’s Criminal Division Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Department of Defense, Office of Inspector General Defense Criminal Investigative Service.
Thursday, February 14, 2013
MAN SENTENCED IN GAY HATE CRIME CASE
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, February 7, 2013
Detroit Man Sentenced for Anti-Gay Hate Crime
Everett Dwayne Avery, 26, of Detroit, was sentenced today by U.S. District Judge John Corbett O’Meara after pleading guilty to committing a hate crime by assaulting a man because the man was gay. Avery was sentenced to serve 18 months in prison to be followed by three years of supervised release.
The assault occurred on March, 7, 2011, while Avery and the victim were at a convenience store in Detroit. Avery used anti-gay slurs toward the victim as Avery and the victim waited in line in the convenience store. Shortly after the first slurs, while still in the store, Avery used another anti-gay slur and punched the victim in the face, fracturing the victim’s eye socket. Avery pled guilty to violating the federal Hate Crimes Protection Act on Aug. 29, 2012.
"Hate-fueled incidents like this one have no place in a civilized society," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate."
"Congress has made it clear that it is a crime to assault people solely on the basis of their sexual orientation. Prosecutions under this law are important to ensure that all people in our community know that they have the full protection of the law," said U.S. Attorney for the Eastern District of Michigan Barbara McQuade.
Special Agent in Charge Foley stated, "Hate Crimes have no place in a civilized society. We are a nation of laws and our laws embrace diversity and differences. The law does not tolerate the type of hate demonstrated in this matter and the FBI will investigate and put forth for prosecution a violation of that law."
The case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Pamela Thompson from the U.S. Attorney’s Office, and Trial Attorney Sanjay Patel from the Civil Rights Division of the U.S. Department of Justice.
Thursday, February 7, 2013
Detroit Man Sentenced for Anti-Gay Hate Crime
Everett Dwayne Avery, 26, of Detroit, was sentenced today by U.S. District Judge John Corbett O’Meara after pleading guilty to committing a hate crime by assaulting a man because the man was gay. Avery was sentenced to serve 18 months in prison to be followed by three years of supervised release.
The assault occurred on March, 7, 2011, while Avery and the victim were at a convenience store in Detroit. Avery used anti-gay slurs toward the victim as Avery and the victim waited in line in the convenience store. Shortly after the first slurs, while still in the store, Avery used another anti-gay slur and punched the victim in the face, fracturing the victim’s eye socket. Avery pled guilty to violating the federal Hate Crimes Protection Act on Aug. 29, 2012.
"Hate-fueled incidents like this one have no place in a civilized society," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to using all the tools in our law enforcement arsenal, including the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, to prosecute acts motivated by hate."
"Congress has made it clear that it is a crime to assault people solely on the basis of their sexual orientation. Prosecutions under this law are important to ensure that all people in our community know that they have the full protection of the law," said U.S. Attorney for the Eastern District of Michigan Barbara McQuade.
Special Agent in Charge Foley stated, "Hate Crimes have no place in a civilized society. We are a nation of laws and our laws embrace diversity and differences. The law does not tolerate the type of hate demonstrated in this matter and the FBI will investigate and put forth for prosecution a violation of that law."
The case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Pamela Thompson from the U.S. Attorney’s Office, and Trial Attorney Sanjay Patel from the Civil Rights Division of the U.S. Department of Justice.
Sunday, February 10, 2013
WOMAN GETS 12 YEAR SENTENCE FOR RUNNING IDENTITY THEFT TAX SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, February 8, 2013
Alabama Woman Sentenced to 12 Years in Prison for Running Sophisticated Million Dollar Identity Theft Tax Scheme
Also Sentenced for Separate Crimes Involving Filing False Returns for Clients
Antoinette Djonret was sentenced today to 144 months in prison for her involvement in two separate tax fraud schemes, the Justice Department and the Internal Revenue Service (IRS) announced. She was also ordered to pay $1,291,658 in restitution. In October 2012, Djonret had pleaded guilty to charges in the two cases. In the first case, Djonret pleaded guilty to charges of conspiracy and aggravated identity theft. She pleaded guilty to filing false tax returns in the second case.
According to court documents from the first case, between October 2009 and April 2012, Djonret and her co-conspirators used stolen identities to file more than 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret and her co-conspirators filed most of these tax returns from her residence in Montgomery, Ala.
According to court records, Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money by recruiting a number of individuals to purchase prepaid debit cards for use in the scheme. The individuals Djonret recruited to launder the refund proceeds recruited other individuals to purchase the debit cards. Djonret and her co-conspirators used the debit cards onto which the fraudulent tax refunds were placed. Three of the co-conspirators she recruited have also pleaded guilty and are currently awaiting sentencing.
Documents introduced as part of the sentencing established that Djonret was also involved in a separate tax fraud scheme. Prior to beginning her identity theft scheme, Djonret worked at a tax return preparation business called Premier Tax, where she prepared false tax returns for clients of the business.
"Sophisticated Stolen Identity Refund Fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "Sentences like the one handed down today are a warning to criminal enterprises that there are severe penalties for committing these types of tax crimes."
"These identity thieves are becoming more devious, creative, and conniving," said George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "They steal our identities, steal government money, and prey upon our citizens. However, my office is unrelenting. These criminals must be and will continue to be prosecuted in order to obtain justice for our victims from the Middle District of Alabama as well as justice for our nation."
"Today’s announcement exemplifies IRS Special Agents’ intense focus on the rigorous pursuit of identity theft and refund fraud," said Richard Weber, Chief IRS Criminal Investigation. "Djonret perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable."
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who prosecuted the two cases.
Friday, February 8, 2013
Alabama Woman Sentenced to 12 Years in Prison for Running Sophisticated Million Dollar Identity Theft Tax Scheme
Also Sentenced for Separate Crimes Involving Filing False Returns for Clients
Antoinette Djonret was sentenced today to 144 months in prison for her involvement in two separate tax fraud schemes, the Justice Department and the Internal Revenue Service (IRS) announced. She was also ordered to pay $1,291,658 in restitution. In October 2012, Djonret had pleaded guilty to charges in the two cases. In the first case, Djonret pleaded guilty to charges of conspiracy and aggravated identity theft. She pleaded guilty to filing false tax returns in the second case.
According to court documents from the first case, between October 2009 and April 2012, Djonret and her co-conspirators used stolen identities to file more than 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret and her co-conspirators filed most of these tax returns from her residence in Montgomery, Ala.
According to court records, Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money by recruiting a number of individuals to purchase prepaid debit cards for use in the scheme. The individuals Djonret recruited to launder the refund proceeds recruited other individuals to purchase the debit cards. Djonret and her co-conspirators used the debit cards onto which the fraudulent tax refunds were placed. Three of the co-conspirators she recruited have also pleaded guilty and are currently awaiting sentencing.
Documents introduced as part of the sentencing established that Djonret was also involved in a separate tax fraud scheme. Prior to beginning her identity theft scheme, Djonret worked at a tax return preparation business called Premier Tax, where she prepared false tax returns for clients of the business.
"Sophisticated Stolen Identity Refund Fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "Sentences like the one handed down today are a warning to criminal enterprises that there are severe penalties for committing these types of tax crimes."
"These identity thieves are becoming more devious, creative, and conniving," said George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "They steal our identities, steal government money, and prey upon our citizens. However, my office is unrelenting. These criminals must be and will continue to be prosecuted in order to obtain justice for our victims from the Middle District of Alabama as well as justice for our nation."
"Today’s announcement exemplifies IRS Special Agents’ intense focus on the rigorous pursuit of identity theft and refund fraud," said Richard Weber, Chief IRS Criminal Investigation. "Djonret perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable."
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who prosecuted the two cases.
Saturday, February 9, 2013
ALABAMA WOMAN SENTENCED TO PRISON FOR IDENTITY THEFT TAX SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, February 8, 2013
Alabama Woman Sentenced to 12 Years in Prison for Running Sophisticated Million Dollar Identity Theft Tax Scheme
Also Sentenced for Separate Crimes Involving Filing False Returns for Clients
Antoinette Djonret was sentenced today to 144 months in prison for her involvement in two separate tax fraud schemes, the Justice Department and the Internal Revenue Service (IRS) announced. She was also ordered to pay $1,291,658 in restitution. In October 2012, Djonret had pleaded guilty to charges in the two cases. In the first case, Djonret pleaded guilty to charges of conspiracy and aggravated identity theft. She pleaded guilty to filing false tax returns in the second case.
According to court documents from the first case, between October 2009 and April 2012, Djonret and her co-conspirators used stolen identities to file more than 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret and her co-conspirators filed most of these tax returns from her residence in Montgomery, Ala.
According to court records, Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money by recruiting a number of individuals to purchase prepaid debit cards for use in the scheme. The individuals Djonret recruited to launder the refund proceeds recruited other individuals to purchase the debit cards. Djonret and her co-conspirators used the debit cards onto which the fraudulent tax refunds were placed. Three of the co-conspirators she recruited have also pleaded guilty and are currently awaiting sentencing.
Documents introduced as part of the sentencing established that Djonret was also involved in a separate tax fraud scheme. Prior to beginning her identity theft scheme, Djonret worked at a tax return preparation business called Premier Tax, where she prepared false tax returns for clients of the business.
"Sophisticated Stolen Identity Refund Fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "Sentences like the one handed down today are a warning to criminal enterprises that there are severe penalties for committing these types of tax crimes."
"These identity thieves are becoming more devious, creative, and conniving," said George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "They steal our identities, steal government money, and prey upon our citizens. However, my office is unrelenting. These criminals must be and will continue to be prosecuted in order to obtain justice for our victims from the Middle District of Alabama as well as justice for our nation."
"Today’s announcement exemplifies IRS Special Agents’ intense focus on the rigorous pursuit of identity theft and refund fraud," said Richard Weber, Chief IRS Criminal Investigation. "Djonret perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable."
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who prosecuted the two cases
Friday, February 8, 2013
Alabama Woman Sentenced to 12 Years in Prison for Running Sophisticated Million Dollar Identity Theft Tax Scheme
Also Sentenced for Separate Crimes Involving Filing False Returns for Clients
Antoinette Djonret was sentenced today to 144 months in prison for her involvement in two separate tax fraud schemes, the Justice Department and the Internal Revenue Service (IRS) announced. She was also ordered to pay $1,291,658 in restitution. In October 2012, Djonret had pleaded guilty to charges in the two cases. In the first case, Djonret pleaded guilty to charges of conspiracy and aggravated identity theft. She pleaded guilty to filing false tax returns in the second case.
According to court documents from the first case, between October 2009 and April 2012, Djonret and her co-conspirators used stolen identities to file more than 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Djonret and her co-conspirators filed most of these tax returns from her residence in Montgomery, Ala.
According to court records, Djonret orchestrated this scheme. She obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money by recruiting a number of individuals to purchase prepaid debit cards for use in the scheme. The individuals Djonret recruited to launder the refund proceeds recruited other individuals to purchase the debit cards. Djonret and her co-conspirators used the debit cards onto which the fraudulent tax refunds were placed. Three of the co-conspirators she recruited have also pleaded guilty and are currently awaiting sentencing.
Documents introduced as part of the sentencing established that Djonret was also involved in a separate tax fraud scheme. Prior to beginning her identity theft scheme, Djonret worked at a tax return preparation business called Premier Tax, where she prepared false tax returns for clients of the business.
"Sophisticated Stolen Identity Refund Fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk," said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. "Sentences like the one handed down today are a warning to criminal enterprises that there are severe penalties for committing these types of tax crimes."
"These identity thieves are becoming more devious, creative, and conniving," said George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "They steal our identities, steal government money, and prey upon our citizens. However, my office is unrelenting. These criminals must be and will continue to be prosecuted in order to obtain justice for our victims from the Middle District of Alabama as well as justice for our nation."
"Today’s announcement exemplifies IRS Special Agents’ intense focus on the rigorous pursuit of identity theft and refund fraud," said Richard Weber, Chief IRS Criminal Investigation. "Djonret perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the tremendous damage inflicted on innocent victims. Be assured that IRS Criminal Investigation, together with our partners at the U.S. Attorney’s Office, will hold those who engage in similar behavior fully accountable."
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial attorneys Jason H. Poole, Justin Gelfand and Michael Boteler, and Assistant U.S. Attorney Jared Morris, who prosecuted the two cases
Wednesday, February 6, 2013
2 ABT GANG MEMBERS PLEAD GUILTY TO FEDERAL RACKETEERING CHARGES
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, January 31, 2013
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 to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ben Christian Dillon, aka "Tuff," 40, of Houston, and James Marshall Meldrum, aka "Dirty," 40, of Dallas, each 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.
According to court documents, Dillon, Meldrum and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Dillon, Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Dillon and Meldrum admitted to being ABT gang members and engaging in multiple acts in support of the criminal enterprise. Dillon admitted to trafficking in methamphetamine, acting as an enforcer to collect drug debts owed to the ABT enterprise, committing acts of arson for the gang and attempting to kill a fellow ABT gang member who had been marked for death by senior ABT officials. Meldrum admitted to trafficking in methamphetamine and severely beating a subordinate gang member.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, Dillon and Meldrum each face a maximum penalty of life in prison. Dillon’s sentencing hearing is scheduled for April 24, 2013, and Meldrum’s sentencing hearing is scheduled for Sept. 26, 2013.
Dillon and Meldrum are two of 34 defendants charged in October 2012 with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.
Thursday, January 31, 2013
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 to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Ben Christian Dillon, aka "Tuff," 40, of Houston, and James Marshall Meldrum, aka "Dirty," 40, of Dallas, each 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.
According to court documents, Dillon, Meldrum and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Dillon, Meldrum and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Dillon and Meldrum admitted to being ABT gang members and engaging in multiple acts in support of the criminal enterprise. Dillon admitted to trafficking in methamphetamine, acting as an enforcer to collect drug debts owed to the ABT enterprise, committing acts of arson for the gang and attempting to kill a fellow ABT gang member who had been marked for death by senior ABT officials. Meldrum admitted to trafficking in methamphetamine and severely beating a subordinate gang member.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, Dillon and Meldrum each face a maximum penalty of life in prison. Dillon’s sentencing hearing is scheduled for April 24, 2013, and Meldrum’s sentencing hearing is scheduled for Sept. 26, 2013.
Dillon and Meldrum are two of 34 defendants charged in October 2012 with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Fort Worth, Texas, Police Department; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Montgomery County District Attorney’s Office; Atascosa County District Attorney’s Office; and the Kaufman County, Texas, District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas.
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