FROM: U.S. DEPARTMENT OF JUSTICE
Friday, March 1, 2013
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering Charges
A member of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his 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.
Christopher James Morris, aka, "Rockstar," 37, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
On Feb. 22, 2013, Morris’s co-conspirator Chad Ray Folmsbee, aka, "Polar Bear," 30, of Houston, pleaded guilty to one count of conspiracy to participate in racketeering activity.
According to court documents, Morris, Folmsbee 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. Morris, Folmsbee and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Morris and Folmsbee have admitted to being members of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as "direct orders."
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, Morris and Folmsbee each face a maximum penalty of life in prison. Morris and Folmsbee are both scheduled for sentencing on Sept. 26, 2013.
Morris and Folmsbee are two of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, of Houston and James Marshall Meldrum, 40, of Dallas each pleaded guilty to racketeering conspiracy on Jan. 31, 2013.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; 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.
Sunday, March 3, 2013
ATTORNEY GENERAL HOLDER SPEAKS AT UNIVERSITY OF MASSACHUSETTS LAW SCHOOL
FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the University of Massachusetts School of Law
North Dartmouth, Mass. ~ Friday, March 1, 2013
Thank you, Dean Bilek, for those kind words, and for welcoming me to your beautiful campus this afternoon. It’s a pleasure to be with you – and Chancellor Grossman – here in North Dartmouth. And it’s a privilege to stand with so many educators; administrators; leading members of the bench and bar; distinguished guests, including Congressman Keating, United States Attorney Ortiz, United States Marshal Gibbons – and, especially, the students who make the University of Massachusetts such a remarkable place.
I always appreciate the chance to speak with future leaders of our nation’s legal community – and I’m particularly happy to join you today at the only public law school in Massachusetts. Although this institution is still young, I know it’s hard at work educating a new generation of lawyers, leaders, advocates, and public servants. I’m pleased to hear that it’s becoming a forum for robust debate – where issues of consequence are discussed and addressed. I’m grateful to be among the first to add my voice to this dialogue. And I’m proud to note that, with your clinical programs and recent provisional accreditation, UMass School of Law is well on its way to becoming an essential training ground for students from across the region – whose contributions will undoubtedly help to shape our nation’s course, and determine its path, for years to come.
As aspiring stewards of the law – and servants of those whom it protects and empowers – each of the young men and women before me has already made an important commitment. And you’ve taken on serious responsibilities: not just to focus on your coursework, but to consider how you can put your skills and talents to work once you leave this campus. Before you know it, some of you will join the ranks of the very first graduates of this new program. Others will follow close behind. And all of you will fan out across Massachusetts and around the country – seeking to make a living; striving to make your mark; and trying to answer the difficult questions that every legal professional must confront:
How will you use the knowledge you’ve gained on this campus to give back to your communities? What can you do to enrich the lives of your fellow citizens and make your country a better place? What will you imagine that your parents’ generation could not? And how will you make history – and make a difference – in a world too often afflicted by crime and violence?
The way forward will not always be easy or obvious – but the answers will soon be yours to discover, since these and many other questions represent the inheritance, and the solemn obligation, that’s entrusted to every great lawyer and leader. No matter how you choose to spend your career – whether you envision a future ruling from the bench, fighting for private clients, running for public office, bringing peace to war-torn countries, prosecuting dangerous criminals, or forging another path altogether your own – each of you will soon be among the most qualified in this country to lead, to serve, and to give. And, in all that you do, you’ll be called upon to fulfill the singular ideal that stands at the center of your legal education – and at the heart of your chosen profession: not merely to serve clients or win cases, but to do justice.
I realize this may sound like a tremendous obligation. But I also believe that the fact that you are here today proves you’re up to the task. I’m confident that you have what it takes to meet the challenges ahead. And I know that you’re driven – and well-equipped – to help us address some of the most complex and intractable problems we face.
For my colleagues at every level of the Department of Justice – as for each of the judges, policymakers, and elected leaders in this crowd – this important work constitutes a top priority. And that’s why – this afternoon – I’d like to spend a few moments discussing one of the defining issues of our time, and a critical responsibility that everyone in this room shares: the need to ensure the safety of our fellow citizens – and especially our children – by addressing the epidemic of gun violence that devastates too many lives, and steals too many promising futures, each and every year.
Particularly since last December’s horrific events in Newtown, Connecticut, the urgency of this problem has come into stark focus. Since that terrible day, this tragedy has been compounded by countless individual tragedies that take place on our streets; that pass too often unnoticed; and that too frequently decimate the lives of the most vulnerable among us.
In response, countless concerned citizens, outraged parents, elected leaders, advocacy groups, and private organizations across the country have come together to call – with one voice – for the common-sense protections that our young people deserve. And – at every level of the Obama Administration – my colleagues and I have made a steadfast commitment to doing everything in our power to reduce gun violence, keep deadly weapons out of the hands of those not allowed to possess them, and make our neighborhoods and schools more secure.
Earlier this year, I was honored to join Vice President Biden and a number of my fellow Cabinet members – along with representatives from more than 200 groups – in assembling a series of recommendations for accomplishing these goals. In January, President Obama announced this comprehensive plan, which includes 23 executive actions and a range of legislative proposals – all founded on a consensus that emerged from our meetings with policymakers, anti-violence advocates, gun owners and retailers, private organizations, police chiefs, and victims of gun violence: that, as President Obama said, "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."
Of course, this obligation is hardly exclusive to criminal justice professionals and political leaders. We’ll need the ideas, the energy, and the determination of every American to bring about the results we seek. We’re depending on ordinary citizens, and aspiring leaders like you, to join the robust, national discussion about these issues – and to guide and inform the efforts of elected and appointed leaders at every level. And we’re relying on you to speak out – and stand up – for the kinds of meaningful changes that will help to keep our communities safe.
Among the Administration’s proposals are a number of legislative reforms that we’ve called upon Congress to pass without delay – including measures requiring universal background checks, so that a full background check is required every time someone attempts to buy a gun; laws imposing tough new penalties against those who help funnel deadly weapons to dangerous criminals; and legislation banning high-capacity magazines and military-style assault weapons, updated and stronger than the bill enacted in 1994.
Beyond these proposals, the Justice Department and other agencies are currently working to implement the 23 executive actions that President Obama announced to reduce gun violence. For instance, the President has taken steps to reinforce the Department’s efforts to provide law enforcement with the tools, training, and resources they need to respond to active shooter situations. He has asked relevant agencies to make clear that federal law does not prohibit doctors from reporting threats of violence to law enforcement. And he has directed Administration leaders to finalize regulations under the Affordable Care Act that will help expand access to mental health care services.
The President has also announced a series of actions to strengthen the national background check system – by addressing gaps, bringing accountability to the sources of information the system relies upon, and examining our laws to make certain they’re effective in identifying those who should not have access to firearms. In addition, the Administration has encouraged licensed gun dealers to process transactions for private sellers using the NICS background system.
But all of this is only the beginning. The President has also put an end to what’s effectively become a "freeze" on rigorous, non-partisan research into gun violence by the Centers for Disease Control – and has directed the CDC to resume examining the causes of this violence and evaluating strategies for its prevention. He has called upon Congress to eliminate misguided restrictions that require the Bureau of Alcohol, Tobacco, Firearms, and Explosives – or ATF – to authorize the importation of dangerous weapons simply because of their age. He has urged Senate leaders to move swiftly to confirm his nominee, Todd Jones, as Director of the ATF – a critical agency that’s been without a Senate-confirmed leader for six years. And he has directed officials throughout the Administration to work with individual school districts and community leaders to develop plans for making our schools, houses of worship – and institutions of higher learning like this one – safer.
Of course, our ability to complete this work – and fulfill all of the Department’s diverse missions – will be contingent on Congress adopting a balanced deficit reduction plan and ending the untenable cuts that are slated to go into effect today, reducing the Justice Department’s budget by over $1.6 billion in just seven months’ time. If this so-called "sequester" is allowed to persist, it will have a negative impact on the safety of Americans across the country. Our capacity – to respond to crimes and threats, 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 entire justice system, and on the American people – may be profound.
At the same time, I recognize that – even if sequestration is brought to a timely end – none of our individual anti-violence proposals, on their own, will be enough to decisively end the epidemic that touches every city and town in this country. After all, as you’re learning here at UMass, few serious questions – of law or policy – can be met with straightforward, one-size-fits-all solutions.
But, as I’m sure you’re also learning, this simply means that it’s incumbent upon each of us to join in important discussions like this one. And it’s our responsibility – as Americans, and as stewards of the justice system – to help move this country toward the brighter future we seek – and that, together, we must build.
From reducing gun violence and confronting a range of public safety challenges, to expanding access to legal services, addressing disparities and divisions, and reaching for the ideals – of equality, opportunity, and justice – that have always defined the best in our profession, each of you will soon step into a future that is far from certain, in a world riven by uncommon challenges and evolving threats. You’ll be called upon – as public servants, private practice attorneys, community activists, or businessmen and -women – to use the law as a powerful tool to improve the lives of those around you.
Along the way, you may encounter obstacles, setbacks, and disagreements. You may find that making the progress you desire is not as easy as you might like. But if you hold true to the vision of optimism that inspired this institution’s founding – just a few short years ago; if you continue to believe in yourselves; and if you keep faith with one another, and with previous generations who once walked the paths you’re about to begin – then I’m confident that, just as your future will surely be filled with fascinating challenges, it will also be defined by limitless opportunities.
I can hardly imagine a more exciting time to be preparing to join the legal profession. I am honored to count each of you as partners – and colleagues – in the work that will soon become your responsibility, and must always remain our common cause. I want you to know that I’m proud of each and every one of you. And I am counting on you all.
Thank you.
Attorney General Eric Holder Speaks at the University of Massachusetts School of Law
North Dartmouth, Mass. ~ Friday, March 1, 2013
Thank you, Dean Bilek, for those kind words, and for welcoming me to your beautiful campus this afternoon. It’s a pleasure to be with you – and Chancellor Grossman – here in North Dartmouth. And it’s a privilege to stand with so many educators; administrators; leading members of the bench and bar; distinguished guests, including Congressman Keating, United States Attorney Ortiz, United States Marshal Gibbons – and, especially, the students who make the University of Massachusetts such a remarkable place.
I always appreciate the chance to speak with future leaders of our nation’s legal community – and I’m particularly happy to join you today at the only public law school in Massachusetts. Although this institution is still young, I know it’s hard at work educating a new generation of lawyers, leaders, advocates, and public servants. I’m pleased to hear that it’s becoming a forum for robust debate – where issues of consequence are discussed and addressed. I’m grateful to be among the first to add my voice to this dialogue. And I’m proud to note that, with your clinical programs and recent provisional accreditation, UMass School of Law is well on its way to becoming an essential training ground for students from across the region – whose contributions will undoubtedly help to shape our nation’s course, and determine its path, for years to come.
As aspiring stewards of the law – and servants of those whom it protects and empowers – each of the young men and women before me has already made an important commitment. And you’ve taken on serious responsibilities: not just to focus on your coursework, but to consider how you can put your skills and talents to work once you leave this campus. Before you know it, some of you will join the ranks of the very first graduates of this new program. Others will follow close behind. And all of you will fan out across Massachusetts and around the country – seeking to make a living; striving to make your mark; and trying to answer the difficult questions that every legal professional must confront:
How will you use the knowledge you’ve gained on this campus to give back to your communities? What can you do to enrich the lives of your fellow citizens and make your country a better place? What will you imagine that your parents’ generation could not? And how will you make history – and make a difference – in a world too often afflicted by crime and violence?
The way forward will not always be easy or obvious – but the answers will soon be yours to discover, since these and many other questions represent the inheritance, and the solemn obligation, that’s entrusted to every great lawyer and leader. No matter how you choose to spend your career – whether you envision a future ruling from the bench, fighting for private clients, running for public office, bringing peace to war-torn countries, prosecuting dangerous criminals, or forging another path altogether your own – each of you will soon be among the most qualified in this country to lead, to serve, and to give. And, in all that you do, you’ll be called upon to fulfill the singular ideal that stands at the center of your legal education – and at the heart of your chosen profession: not merely to serve clients or win cases, but to do justice.
I realize this may sound like a tremendous obligation. But I also believe that the fact that you are here today proves you’re up to the task. I’m confident that you have what it takes to meet the challenges ahead. And I know that you’re driven – and well-equipped – to help us address some of the most complex and intractable problems we face.
For my colleagues at every level of the Department of Justice – as for each of the judges, policymakers, and elected leaders in this crowd – this important work constitutes a top priority. And that’s why – this afternoon – I’d like to spend a few moments discussing one of the defining issues of our time, and a critical responsibility that everyone in this room shares: the need to ensure the safety of our fellow citizens – and especially our children – by addressing the epidemic of gun violence that devastates too many lives, and steals too many promising futures, each and every year.
Particularly since last December’s horrific events in Newtown, Connecticut, the urgency of this problem has come into stark focus. Since that terrible day, this tragedy has been compounded by countless individual tragedies that take place on our streets; that pass too often unnoticed; and that too frequently decimate the lives of the most vulnerable among us.
In response, countless concerned citizens, outraged parents, elected leaders, advocacy groups, and private organizations across the country have come together to call – with one voice – for the common-sense protections that our young people deserve. And – at every level of the Obama Administration – my colleagues and I have made a steadfast commitment to doing everything in our power to reduce gun violence, keep deadly weapons out of the hands of those not allowed to possess them, and make our neighborhoods and schools more secure.
Earlier this year, I was honored to join Vice President Biden and a number of my fellow Cabinet members – along with representatives from more than 200 groups – in assembling a series of recommendations for accomplishing these goals. In January, President Obama announced this comprehensive plan, which includes 23 executive actions and a range of legislative proposals – all founded on a consensus that emerged from our meetings with policymakers, anti-violence advocates, gun owners and retailers, private organizations, police chiefs, and victims of gun violence: that, as President Obama said, "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."
Of course, this obligation is hardly exclusive to criminal justice professionals and political leaders. We’ll need the ideas, the energy, and the determination of every American to bring about the results we seek. We’re depending on ordinary citizens, and aspiring leaders like you, to join the robust, national discussion about these issues – and to guide and inform the efforts of elected and appointed leaders at every level. And we’re relying on you to speak out – and stand up – for the kinds of meaningful changes that will help to keep our communities safe.
Among the Administration’s proposals are a number of legislative reforms that we’ve called upon Congress to pass without delay – including measures requiring universal background checks, so that a full background check is required every time someone attempts to buy a gun; laws imposing tough new penalties against those who help funnel deadly weapons to dangerous criminals; and legislation banning high-capacity magazines and military-style assault weapons, updated and stronger than the bill enacted in 1994.
Beyond these proposals, the Justice Department and other agencies are currently working to implement the 23 executive actions that President Obama announced to reduce gun violence. For instance, the President has taken steps to reinforce the Department’s efforts to provide law enforcement with the tools, training, and resources they need to respond to active shooter situations. He has asked relevant agencies to make clear that federal law does not prohibit doctors from reporting threats of violence to law enforcement. And he has directed Administration leaders to finalize regulations under the Affordable Care Act that will help expand access to mental health care services.
The President has also announced a series of actions to strengthen the national background check system – by addressing gaps, bringing accountability to the sources of information the system relies upon, and examining our laws to make certain they’re effective in identifying those who should not have access to firearms. In addition, the Administration has encouraged licensed gun dealers to process transactions for private sellers using the NICS background system.
But all of this is only the beginning. The President has also put an end to what’s effectively become a "freeze" on rigorous, non-partisan research into gun violence by the Centers for Disease Control – and has directed the CDC to resume examining the causes of this violence and evaluating strategies for its prevention. He has called upon Congress to eliminate misguided restrictions that require the Bureau of Alcohol, Tobacco, Firearms, and Explosives – or ATF – to authorize the importation of dangerous weapons simply because of their age. He has urged Senate leaders to move swiftly to confirm his nominee, Todd Jones, as Director of the ATF – a critical agency that’s been without a Senate-confirmed leader for six years. And he has directed officials throughout the Administration to work with individual school districts and community leaders to develop plans for making our schools, houses of worship – and institutions of higher learning like this one – safer.
Of course, our ability to complete this work – and fulfill all of the Department’s diverse missions – will be contingent on Congress adopting a balanced deficit reduction plan and ending the untenable cuts that are slated to go into effect today, reducing the Justice Department’s budget by over $1.6 billion in just seven months’ time. If this so-called "sequester" is allowed to persist, it will have a negative impact on the safety of Americans across the country. Our capacity – to respond to crimes and threats, 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 entire justice system, and on the American people – may be profound.
At the same time, I recognize that – even if sequestration is brought to a timely end – none of our individual anti-violence proposals, on their own, will be enough to decisively end the epidemic that touches every city and town in this country. After all, as you’re learning here at UMass, few serious questions – of law or policy – can be met with straightforward, one-size-fits-all solutions.
But, as I’m sure you’re also learning, this simply means that it’s incumbent upon each of us to join in important discussions like this one. And it’s our responsibility – as Americans, and as stewards of the justice system – to help move this country toward the brighter future we seek – and that, together, we must build.
From reducing gun violence and confronting a range of public safety challenges, to expanding access to legal services, addressing disparities and divisions, and reaching for the ideals – of equality, opportunity, and justice – that have always defined the best in our profession, each of you will soon step into a future that is far from certain, in a world riven by uncommon challenges and evolving threats. You’ll be called upon – as public servants, private practice attorneys, community activists, or businessmen and -women – to use the law as a powerful tool to improve the lives of those around you.
Along the way, you may encounter obstacles, setbacks, and disagreements. You may find that making the progress you desire is not as easy as you might like. But if you hold true to the vision of optimism that inspired this institution’s founding – just a few short years ago; if you continue to believe in yourselves; and if you keep faith with one another, and with previous generations who once walked the paths you’re about to begin – then I’m confident that, just as your future will surely be filled with fascinating challenges, it will also be defined by limitless opportunities.
I can hardly imagine a more exciting time to be preparing to join the legal profession. I am honored to count each of you as partners – and colleagues – in the work that will soon become your responsibility, and must always remain our common cause. I want you to know that I’m proud of each and every one of you. And I am counting on you all.
Thank you.
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.
Thursday, February 28, 2013
FORMER STARMEDIA EXECUTIVE AGREES TO SETTLEMENT WITH SEC
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The U.S. Securities and Exchange Commission today announced that on February 6, 2013, the U.S. District Court for the Southern District of New York entered a settled final judgment as to Peter R. Morales, the former Controller and Vice President, Finance, for StarMedia Network, Inc., a now-defunct Internet portal, in Securities and Exchange Commission v. Fernando J. Espuelas et al., Civil Action No. 06 CV 2435 (PAE) (S.D.N.Y. filed Mar. 29, 2006). The Commission's amended complaint charged violations of the federal securities laws by eight former StarMedia executives, alleging, in relevant part, that for fiscal year 2000 and the first two quarters of fiscal year 2001, StarMedia's books and records misstated the company's revenue.
Without admitting or denying the allegations in the amended complaint, Morales consented to the entry of the Final Judgment permanently enjoining him from future violations of Rules 13b2-1 and 13b2-2 promulgated under the Securities Exchange Act of 1934 (Exchange Act), and from aiding and abetting violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, and 13a-13, and ordering him to pay a civil penalty of $10,000.
The Commission had previously settled with six other defendants. In addition, on October 26, 2012, the court granted defendant Betsy D. Scolnik's motion for summary judgment and ordered that the clerk terminate her as a defendant from the case. Accordingly, the Commission's litigation is concluded.
The U.S. Securities and Exchange Commission today announced that on February 6, 2013, the U.S. District Court for the Southern District of New York entered a settled final judgment as to Peter R. Morales, the former Controller and Vice President, Finance, for StarMedia Network, Inc., a now-defunct Internet portal, in Securities and Exchange Commission v. Fernando J. Espuelas et al., Civil Action No. 06 CV 2435 (PAE) (S.D.N.Y. filed Mar. 29, 2006). The Commission's amended complaint charged violations of the federal securities laws by eight former StarMedia executives, alleging, in relevant part, that for fiscal year 2000 and the first two quarters of fiscal year 2001, StarMedia's books and records misstated the company's revenue.
Without admitting or denying the allegations in the amended complaint, Morales consented to the entry of the Final Judgment permanently enjoining him from future violations of Rules 13b2-1 and 13b2-2 promulgated under the Securities Exchange Act of 1934 (Exchange Act), and from aiding and abetting violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1, and 13a-13, and ordering him to pay a civil penalty of $10,000.
The Commission had previously settled with six other defendants. In addition, on October 26, 2012, the court granted defendant Betsy D. Scolnik's motion for summary judgment and ordered that the clerk terminate her as a defendant from the case. Accordingly, the Commission's litigation is concluded.
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.
Monday, February 18, 2013
MAN AND HIS COMPANY TO PAY $1.3 MILLION TO SETTLE COMMODITY POOL FRAUD CASE
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
February 12, 2013
Federal Court in Texas Orders Jonathan Hansen and His Company, J. Hansen Investments, LLC, to Pay over $1.3 Million to Settle Commodity Pool Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against Defendants Jonathan Hansen (Hansen) and his firm, J. Hansen Investments, LLC (JHI), requiring them to jointly pay approximately $878,000 in restitution to defrauded investors and a civil monetary penalty of approximately $483,900. The Order also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The Consent Order of permanent injunction, entered by Judge Nancy F. Atlas of the U.S. District Court for the Southern District of Texas, stems from a CFTC Complaint filed on August 24, 2012, against Hansen and JHI, charging them with fraud and misappropriation in the operation of a commodity pool scheme. Hansen was the owner and sole employee of JHI, and neither defendant has ever been registered with the CFTC.
The Order finds that Hansen fraudulently solicited and accepted over $1.1 million from investors to trade E-Mini S&P 500 futures contracts in a commodity pool Hansen operated. Hansen used only a small portion of pool participants’ funds to trade futures contracts, transferring such funds to his personal or JHI’s futures trading accounts, both of which sustained consistent losses, according to the Order. The Order also finds that Hansen misappropriated funds for his personal use and commingled pool funds with his own funds. Additionally, Hansen issued monthly account statements to pool participants falsely reporting profits earned in pool participants’ trading accounts and monthly trading memoranda falsely reporting monthly and annual trading returns, according to the Order.
The CFTC appreciates the assistance of the National Futures Association.
CFTC Division of Enforcement staff members responsible for this case are Danielle E. Karst, George Malas, Christine Ryall, Paul G. Hayeck, and Joan Manley.
February 12, 2013
Federal Court in Texas Orders Jonathan Hansen and His Company, J. Hansen Investments, LLC, to Pay over $1.3 Million to Settle Commodity Pool Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against Defendants Jonathan Hansen (Hansen) and his firm, J. Hansen Investments, LLC (JHI), requiring them to jointly pay approximately $878,000 in restitution to defrauded investors and a civil monetary penalty of approximately $483,900. The Order also imposes permanent trading and registration bans against the Defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The Consent Order of permanent injunction, entered by Judge Nancy F. Atlas of the U.S. District Court for the Southern District of Texas, stems from a CFTC Complaint filed on August 24, 2012, against Hansen and JHI, charging them with fraud and misappropriation in the operation of a commodity pool scheme. Hansen was the owner and sole employee of JHI, and neither defendant has ever been registered with the CFTC.
The Order finds that Hansen fraudulently solicited and accepted over $1.1 million from investors to trade E-Mini S&P 500 futures contracts in a commodity pool Hansen operated. Hansen used only a small portion of pool participants’ funds to trade futures contracts, transferring such funds to his personal or JHI’s futures trading accounts, both of which sustained consistent losses, according to the Order. The Order also finds that Hansen misappropriated funds for his personal use and commingled pool funds with his own funds. Additionally, Hansen issued monthly account statements to pool participants falsely reporting profits earned in pool participants’ trading accounts and monthly trading memoranda falsely reporting monthly and annual trading returns, according to the Order.
The CFTC appreciates the assistance of the National Futures Association.
CFTC Division of Enforcement staff members responsible for this case are Danielle E. Karst, George Malas, Christine Ryall, Paul G. Hayeck, and Joan Manley.
Sunday, February 17, 2013
ATTORNEY GENERAL HOLDER'S COMMENTS ON SENATE PASSAGE OF VIOLENCE AGAINST WOMEN ACT
FROM: U.S. DEPATMENT OF DEFENSE
Tuesday, February 12, 2013
Statement by Attorney General Eric Holder on the Senate Passage of the Violence Against Women Act
Attorney General Eric Holder issued the following statement today on the Senate passage of the Violence Against Women Act:
"I am extremely pleased the Senate has passed the reauthorization of the Violence Against Women Act, which contains important new provisions to expand access to justice for all victims of violence and strengthen law enforcement and prosecutorial tools to hold accountable those who commit these crimes. Notably, the tribal provisions included in the VAWA reauthorization and originally proposed by the Department of Justice, will close a significant jurisdictional gap that has left too many Native American women, precisely because they are Native American, exposed to violence for far too long. The status quo is simply unacceptable and the Senate has today acted courageously on behalf of our society’s most vulnerable, who deserve not only equal justice but also our unquestionable resolve to protect them. As the House of Representatives now moves to consider reauthorizing this critical law, I urge lawmakers to come together, as they have historically, to pass an improved and strengthened VAWA that continues its 18 years of progress towards ending the scourge of violence against all victims in our society
."
Tuesday, February 12, 2013
Statement by Attorney General Eric Holder on the Senate Passage of the Violence Against Women Act
Attorney General Eric Holder issued the following statement today on the Senate passage of the Violence Against Women Act:
"I am extremely pleased the Senate has passed the reauthorization of the Violence Against Women Act, which contains important new provisions to expand access to justice for all victims of violence and strengthen law enforcement and prosecutorial tools to hold accountable those who commit these crimes. Notably, the tribal provisions included in the VAWA reauthorization and originally proposed by the Department of Justice, will close a significant jurisdictional gap that has left too many Native American women, precisely because they are Native American, exposed to violence for far too long. The status quo is simply unacceptable and the Senate has today acted courageously on behalf of our society’s most vulnerable, who deserve not only equal justice but also our unquestionable resolve to protect them. As the House of Representatives now moves to consider reauthorizing this critical law, I urge lawmakers to come together, as they have historically, to pass an improved and strengthened VAWA that continues its 18 years of progress towards ending the scourge of violence against all victims in our society
."
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.
Wednesday, February 13, 2013
FOUR STEEL COMPANY EXECUTIVES AND TIPPEES SETTLE INSIDER TRADING CHARGES
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
February 5, 2013 — The Securities and Exchange Commission today announced that four steel company executives and two of their tippees have agreed to pay $639,260 to settle insider trading charges against them.
The SEC filed a civil action on March 17, 2011, against eight individuals, alleging that they traded on the basis of material, nonpublic information about the forthcoming acquisition of Steel Technologies, Inc. by Mitsui & Co. (USA). Specifically, the SEC alleged that four executives traded based on inside information and that three of them tipped others who also traded in advance of the upcoming acquisition. The six settling defendants collectively earned $268,805 from their trades.
Without admitting or denying the SEC’s allegations, each of the settling defendants consented to final judgments that have been entered by the court. The final judgments order: (i) Patrick M. Carroll to disgorge $34,279 plus pay prejudgment interest of $10,412 and a penalty of $34,279; (ii) James P. Carroll to disgorge $3,020 plus pay prejudgment interest of $917 and a penalty of $3,020; (iii) William T. Carroll to disgorge $54,163 plus pay prejudgment interest of $16,452 and a penalty of $54,163; (iv) David Mark Calcutt to disgorge $150,297 plus pay prejudgment interest of $45,652 and a penalty of $150,297; (v) Christopher T. Calcutt to disgorge $4,250 plus pay prejudgment interest of $1,291 and a penalty of $4,250; and (vi) David Stitt to disgorge $22,796 plus pay prejudgment interest of $6,924 and a penalty of $42,796. They are also permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
The SEC’s charges against the other traders, John Monroe and Stephen Somers, remain pending.
February 5, 2013 — The Securities and Exchange Commission today announced that four steel company executives and two of their tippees have agreed to pay $639,260 to settle insider trading charges against them.
The SEC filed a civil action on March 17, 2011, against eight individuals, alleging that they traded on the basis of material, nonpublic information about the forthcoming acquisition of Steel Technologies, Inc. by Mitsui & Co. (USA). Specifically, the SEC alleged that four executives traded based on inside information and that three of them tipped others who also traded in advance of the upcoming acquisition. The six settling defendants collectively earned $268,805 from their trades.
Without admitting or denying the SEC’s allegations, each of the settling defendants consented to final judgments that have been entered by the court. The final judgments order: (i) Patrick M. Carroll to disgorge $34,279 plus pay prejudgment interest of $10,412 and a penalty of $34,279; (ii) James P. Carroll to disgorge $3,020 plus pay prejudgment interest of $917 and a penalty of $3,020; (iii) William T. Carroll to disgorge $54,163 plus pay prejudgment interest of $16,452 and a penalty of $54,163; (iv) David Mark Calcutt to disgorge $150,297 plus pay prejudgment interest of $45,652 and a penalty of $150,297; (v) Christopher T. Calcutt to disgorge $4,250 plus pay prejudgment interest of $1,291 and a penalty of $4,250; and (vi) David Stitt to disgorge $22,796 plus pay prejudgment interest of $6,924 and a penalty of $42,796. They are also permanently enjoined from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
The SEC’s charges against the other traders, John Monroe and Stephen Somers, remain pending.
Monday, February 11, 2013
COURT ORDERS $2.4 MILLION PAYMENT IN FOREIGN CURRENCY PONZI SCHEME
FROM: COMMODITY FUTURES TRADING COMMISSION
Federal Court in Texas Orders Rodney Wagner and Roger Wagner, and their company GID Group, Inc., to Pay Over $2.4 Million for Fraud in Foreign Currency (Forex) Ponzi Scheme
Court finds that defendants fraudulently solicited and accepted funds from 99 Retail Customers in connection with a Forex Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against defendants Rodney Wagner and Roger Wagner (Wagner brothers) and GID Group, Inc. (GID), all of Grand Prairie, Texas, requiring the Wagner brothers and GID to jointly pay approximately $1.37 million in restitution to defrauded customers and a civil monetary penalty of approximately $1.05 million. The consent Order of permanent injunction also imposes permanent trading and registration bans against the defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged. The Wagner brothers were the owners and only employees of GID, and none of the defendants has ever been registered with the CFTC.
The Order, entered by Judge David C. Godbey of the U.S. District Court for the Northern District of Texas, stems from a CFTC enforcement action filed on November 8, 2011, against the Wagner brothers and GID, charging them with solicitation fraud and misappropriation in the operation of multi-million dollar foreign currency (forex) Ponzi scheme (see CFTC Press Release 6137-11, November 9, 2011).
The Order finds that the Wagner brothers fraudulently solicited and accepted at least $5.5 million from approximately 99 customers to trade off-exchange forex contracts on a leveraged or margined basis. In soliciting customers, the Wagner brothers represented that they were experienced and successful forex traders who generated six percent returns per day through their forex trading and could return principal plus 200 percent of customer deposits, the Order finds.
The Order finds that these representations were false. Specifically, the Wagner brothers transferred only a total of $590,000 of GID customer funds into two personal trading accounts and sustained consistent net trading losses each month, the Order finds. In fact, the Wagner brothers misappropriated the majority of customer funds, using some of the stolen funds to pay for their personal expenses and other pool participants’ purported returns. To conceal their fraud the Wagner brothers distributed false account statements to customers that reported returns supposedly earned as a result of the brothers’ forex futures trading, according to the Order.
CFTC Division of Enforcement staff responsible for this case are Eugene Smith, Patricia Gomersall, Melanie Devoe, Christine Ryall, Paul Hayeck, and Joan Manley.
Federal Court in Texas Orders Rodney Wagner and Roger Wagner, and their company GID Group, Inc., to Pay Over $2.4 Million for Fraud in Foreign Currency (Forex) Ponzi Scheme
Court finds that defendants fraudulently solicited and accepted funds from 99 Retail Customers in connection with a Forex Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court Order against defendants Rodney Wagner and Roger Wagner (Wagner brothers) and GID Group, Inc. (GID), all of Grand Prairie, Texas, requiring the Wagner brothers and GID to jointly pay approximately $1.37 million in restitution to defrauded customers and a civil monetary penalty of approximately $1.05 million. The consent Order of permanent injunction also imposes permanent trading and registration bans against the defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged. The Wagner brothers were the owners and only employees of GID, and none of the defendants has ever been registered with the CFTC.
The Order, entered by Judge David C. Godbey of the U.S. District Court for the Northern District of Texas, stems from a CFTC enforcement action filed on November 8, 2011, against the Wagner brothers and GID, charging them with solicitation fraud and misappropriation in the operation of multi-million dollar foreign currency (forex) Ponzi scheme (see CFTC Press Release 6137-11, November 9, 2011).
The Order finds that the Wagner brothers fraudulently solicited and accepted at least $5.5 million from approximately 99 customers to trade off-exchange forex contracts on a leveraged or margined basis. In soliciting customers, the Wagner brothers represented that they were experienced and successful forex traders who generated six percent returns per day through their forex trading and could return principal plus 200 percent of customer deposits, the Order finds.
The Order finds that these representations were false. Specifically, the Wagner brothers transferred only a total of $590,000 of GID customer funds into two personal trading accounts and sustained consistent net trading losses each month, the Order finds. In fact, the Wagner brothers misappropriated the majority of customer funds, using some of the stolen funds to pay for their personal expenses and other pool participants’ purported returns. To conceal their fraud the Wagner brothers distributed false account statements to customers that reported returns supposedly earned as a result of the brothers’ forex futures trading, according to the Order.
CFTC Division of Enforcement staff responsible for this case are Eugene Smith, Patricia Gomersall, Melanie Devoe, Christine Ryall, Paul Hayeck, and Joan Manley.
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
Friday, February 8, 2013
CORPORATIONS AND INDIVIDUALS CHARGED WITH DISTRIBUTING COUNTERFEIT AND HAZARDOUS TOYS
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Wednesday, February 6, 2013
Five Individuals and Five Corporations Charged in New York for Importing and Selling Hazardous and Counterfeit Toys
Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn, N.Y., for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).
The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.
"The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft," said Assistant Attorney General Breuer. "They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children’s characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods."
"For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children," said U.S. Attorney Lynch. "Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct."
The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants’ properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. in the Eastern District of New York.
The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.
According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys – toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the "Cars," "Toy Story" and "High School Musical."
The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.
Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.
"The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger," said HSI Special Agent in Charge Hayes. "They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods."
"Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products," said CBP New York Field Operations Director Perez. "We are proud to have done our part preventing these dangerous toys from getting in the hands of our children."
"Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe," said CPSC Chairman Tenenbaum. "The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace."
"When it comes to trademark infringement, don’t mess with Mickey or other American icons," said NYPD Commissioner Kelly.
In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.
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 prosecuted by Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.
Wednesday, February 6, 2013
Five Individuals and Five Corporations Charged in New York for Importing and Selling Hazardous and Counterfeit Toys
Five individuals and five corporations have been charged in an indictment unsealed today in Brooklyn, N.Y., for allegedly importing hazardous and counterfeit toys from China for sale in the United States, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Special Agent in Charge of Homeland Security Investigations (HSI) in New York James T. Hayes Jr.; Robert E. Perez, New York Field Operations Director of Customs and Border Protection (CBP); Chairman Inez Tenenbaum of the Consumer Product Safety Commission (CPSC); and Commissioner Raymond W. Kelly of the New York City Police Department (NYPD).
The 24-count indictment charges Chenglan Hu, 51, Hua Fei Zhang, 52, and Xiu Lan Zhang, 60, all Chinese nationals and residents of Queens, N.Y., and Guan Jun Zhang, 29, and Jun Wu Zhang, 28, both naturalized citizens and Queens residents, along with their closely held companies Family Product USA Inc., H.M. Import USA Corp., ZCY Trading Corp., Zone Import Corp. and ZY Wholesale Inc., with importing and trafficking hazardous toys in violation of the Consumer Product Safety Act (CPSA) and toys bearing copyright-infringing images and counterfeit trademarks, smuggling, money laundering and structuring.
"The defendants are accused of importing and selling toys that posed significant health hazards to children or were the product of blatant intellectual property theft," said Assistant Attorney General Breuer. "They allegedly retooled their operations many times in order to avoid detection, and despite repeated citations by the authorities, they continued to peddle counterfeit toys featuring Dora the Explorer, SpongeBob SquarePants and other popular children’s characters. Today’s actions reflect a Justice Department focused on ensuring that consumers receive safe and legitimate goods."
"For years, the defendants sought to enrich themselves by importing and selling dangerous and counterfeit children’s toys without regard for the law or the health of our children," said U.S. Attorney Lynch. "Profits from the counterfeit items, as well as toys riddled with lead and choking hazards, went to provide the defendants with luxury cars. We stand committed to protecting the residents of our communities from those who would engage in such conduct."
The five individual defendants were arrested this morning, and a federal task force comprising HSI agents, other federal agents and NYPD officers, aided by CBP officers and CPSC investigators, executed four search warrants and nine seizure warrants. The agents, officers and investigators searched the defendants’ warehouse, two residences and an email account. In addition, three luxury vehicles, including a Porsche and Lexus, three personal bank accounts and three corporate accounts were seized. The agents also filed lis pendens on two of the defendants’ properties in Queens, N.Y. The defendants’ initial appearances are scheduled this afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. in the Eastern District of New York.
The indictment charges that from July 2005 through January 2013 the individual defendants used their companies, the corporate defendants, to import toys from China that they sold, both wholesale and retail, from a storefront and warehouse in Ridgewood, N.Y., and other locations in Brooklyn and Queens.
According to the indictment, the defendants’ companies had children’s toys seized by CBP from shipping containers entering the United States from China on 33 separate occasions. Seventeen of the 33 seizures were of violative toys – toys prohibited from import into and distribution in the United States, under laws and regulations enforced by the CPSC, because of excessive lead content, excessive phthalate levels, small parts that presented choking, aspiration or ingestion hazards, and easily accessible battery compartments. Sixteen of the 33 seizures were of toys bearing copyright-infringing images and counterfeit trademarks, including knockoff versions of toys featuring a wide variety of popular children’s characters, such as Winnie the Pooh, Dora the Explorer, SpongeBob SquarePants, Betty Boop, Teenage Mutant Ninja Turtles, Power Rangers, Spiderman, Tweety, Mickey Mouse, Pokémon, as well as those from movies, such as the "Cars," "Toy Story" and "High School Musical."
The indictment charges that following each of the 33 seizures, the violator toy company was served written notice by CBP detailing the reason for the seizure, and a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods. Additionally, the violator company and its principal were served written notice by CPSC of the specific safety violations of the toys, and each time a representative of the company signed a release form acknowledging the seizure and abandoning the seized goods.
Due to the number and volume of the seizures, the individual defendants allegedly shifted their use of the companies and alternated formal roles, in order to continue importing and distributing violative and infringing toys. Each time the number of seizures accumulated for one company, the individual defendants allegedly formed a new toy company to continue importing the violative and infringing toys.
"The people and companies involved in this illegal trade not only allegedly infringed on intellectual property rights, they placed the lives of innocent children in danger," said HSI Special Agent in Charge Hayes. "They allegedly sold toys with high lead content and cheap knock offs with substandard parts that break easily and pose a choking hazard. HSI is firm on using its unique customs expertise and law enforcement partnerships to put an end to the importation and sale of dangerous goods."
"Customs and Border Protection is on the forefront of intercepting unsafe, counterfeit products," said CBP New York Field Operations Director Perez. "We are proud to have done our part preventing these dangerous toys from getting in the hands of our children."
"Today’s action highlights the unprecedented level of cooperation and coordination among federal regulatory and law enforcement partners to keep U.S. consumers safe," said CPSC Chairman Tenenbaum. "The United States has some of the strongest toy standards and lowest lead limits in the world, and CPSC is committed to enforcing these child safety requirements at the ports and in the marketplace."
"When it comes to trademark infringement, don’t mess with Mickey or other American icons," said NYPD Commissioner Kelly.
In the indictment, the government is seeking forfeiture of the seized vehicles and bank accounts and the restrained properties, in addition to a money judgment to be determined at trial.
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 prosecuted by Trial Attorney Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Claire Kedeshian and William Campos of the Eastern District of New York. This case was jointly investigated by the HSI Intellectual Property Rights Group and the NYPD, through its participation in the New York Border Enforcement Security Taskforce, with the assistance of CPSC and CBP.
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.
Monday, February 4, 2013
AKA "MAMITO" PLEADS GUILTY IN MULTI-TON DRUG IMPORT CONSPIRACY
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, January 31, 2013
High-Ranking Member of Mexican "Los Zetas" Cartel Pleads Guilty to Drug Conspiracy Charges
Jesus Enrique Rejon Aguilar, aka "Mamito" and "Caballero," a high ranking member of the "Los Zetas" drug cartel, pleaded guilty today to conspiracy to import multi-ton quantities of cocaine and marijuana into the United States, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Rejon Aguilar, 36, pleaded guilty before U.S. District Judge Barbara J. Rothstein in the District of Columbia. Rejon Aguilar was extradited to the United States in September 2012 and was ordered detained in federal custody pending trial.
On Nov. 4, 2010, Rejon Aguilar and 19 co-defendants were charged in a superseding indictment with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. The indictment charges that between 2000 and 2010, members of Los Zetas, including Rejon Aguilar, engaged in a conspiracy with members of the Gulf Cartel in an arrangement referred to as the "Company" to import drugs into the United States. Rejon Aguilar was an original member of Los Zetas and held a high ranking position with the Company.
"As a leader of the Company’s drug trafficking operation, Rejon Aguilar ensured that mass quantities of cocaine and marijuana were brought into the United States for distribution," said Assistant Attorney General Breuer. "The Justice Department is committed to working with its law enforcement partners to bring cartel members and associates to justice for their crimes."
"As an original and high-ranking member of the Los Zetas cartel, Jesus Enrique Rejon Aguilar was responsible for funneling massive amounts of marijuana and cocaine into the United States while using violence to intimidate anyone that stood in his way," said DEA Administrator Leonhart. "Rejon Aguilar’s plea today was possible only with the strength and power of international law enforcement cooperation. DEA, along with our Mexican counterparts, are committed to bringing violent criminals like Rejon Aguilar, to justice."
According to the indictment, the Company transported shipments of cocaine and marijuana by motor vehicles from Mexico to cities in Texas for distribution to other cities within the United States. The indictment alleges that Rejon Aguilar, his co-defendants and others organized, directed and carried out various acts of violence to retaliate against and to intimidate anyone who interfered with, or who were perceived to potentially interfere with, the cocaine and marijuana trafficking activities of the Company.
On April 15, 2009, under the Foreign Narcotics Kingpin Designation Act, the President identified Los Zetas as a Significant Foreign Narcotics Trafficker. On March 24, 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) named Rejon Aguilar as a Significant Foreign Narcotics Trafficker. On July 25, 2011, an executive order was issued that blocks the transfer, payment or export of property belonging to certain transnational criminal organizations, including Los Zetas.
The department expressed its gratitude and appreciation to the government of Mexico for its assistance in this matter.
At sentencing, Rejon Aguilar faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The case is being prosecuted by trial attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The investigation in this case was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit.
Thursday, January 31, 2013
High-Ranking Member of Mexican "Los Zetas" Cartel Pleads Guilty to Drug Conspiracy Charges
Jesus Enrique Rejon Aguilar, aka "Mamito" and "Caballero," a high ranking member of the "Los Zetas" drug cartel, pleaded guilty today to conspiracy to import multi-ton quantities of cocaine and marijuana into the United States, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Rejon Aguilar, 36, pleaded guilty before U.S. District Judge Barbara J. Rothstein in the District of Columbia. Rejon Aguilar was extradited to the United States in September 2012 and was ordered detained in federal custody pending trial.
On Nov. 4, 2010, Rejon Aguilar and 19 co-defendants were charged in a superseding indictment with conspiracy to manufacture and distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation into the United States. The indictment charges that between 2000 and 2010, members of Los Zetas, including Rejon Aguilar, engaged in a conspiracy with members of the Gulf Cartel in an arrangement referred to as the "Company" to import drugs into the United States. Rejon Aguilar was an original member of Los Zetas and held a high ranking position with the Company.
"As a leader of the Company’s drug trafficking operation, Rejon Aguilar ensured that mass quantities of cocaine and marijuana were brought into the United States for distribution," said Assistant Attorney General Breuer. "The Justice Department is committed to working with its law enforcement partners to bring cartel members and associates to justice for their crimes."
"As an original and high-ranking member of the Los Zetas cartel, Jesus Enrique Rejon Aguilar was responsible for funneling massive amounts of marijuana and cocaine into the United States while using violence to intimidate anyone that stood in his way," said DEA Administrator Leonhart. "Rejon Aguilar’s plea today was possible only with the strength and power of international law enforcement cooperation. DEA, along with our Mexican counterparts, are committed to bringing violent criminals like Rejon Aguilar, to justice."
According to the indictment, the Company transported shipments of cocaine and marijuana by motor vehicles from Mexico to cities in Texas for distribution to other cities within the United States. The indictment alleges that Rejon Aguilar, his co-defendants and others organized, directed and carried out various acts of violence to retaliate against and to intimidate anyone who interfered with, or who were perceived to potentially interfere with, the cocaine and marijuana trafficking activities of the Company.
On April 15, 2009, under the Foreign Narcotics Kingpin Designation Act, the President identified Los Zetas as a Significant Foreign Narcotics Trafficker. On March 24, 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) named Rejon Aguilar as a Significant Foreign Narcotics Trafficker. On July 25, 2011, an executive order was issued that blocks the transfer, payment or export of property belonging to certain transnational criminal organizations, including Los Zetas.
The department expressed its gratitude and appreciation to the government of Mexico for its assistance in this matter.
At sentencing, Rejon Aguilar faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The case is being prosecuted by trial attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The investigation in this case was led by the DEA’s Houston Field Division and the DEA Bilateral Investigation Unit.
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