Trans Loop Directory

Twenty-Four Arrested in Drug and Gun Sweep

2010-09-29T20:46:00.003-04:00

CONCORD, NH—Federal, state, and local law enforcement authorities, spearheaded by the Federal Bureau of Investigation’s Safe Streets Gang Task Force and the Manchester Police Department, today executed the coordinated arrests of twenty-four (24) individuals on federal drug and gun charges, announced United States Attorney John P. Kacavas. The large majority of arrests occurred in Manchester and were the product of a long-term, multi-jurisdictional investigation that resulted in the defendants’ indictment by a federal grand jury in the District of New Hampshire.

U.S. Attorney Kacavas praised the work of all the law enforcement agencies involved, observing, “Our communities are safer today because of the cooperative and coordinated efforts of federal, state, and local law enforcement in identifying, locating and arresting alleged drug and weapon offenders. This sweep constitutes a major disruption in the flow of illicit drugs on our streets and I am grateful to the FBI and the Manchester Police Department for their leadership of this effort and to the brave law enforcement agents and officers who executed these arrests.”

FBI Supervisory Special Agent Kieran Ramsey stated, “The New Hampshire Safe Streets Gang Task Force continues to aggressively investigate gang members and other criminals who pose the greatest threat of violence to the safety and security of our communities.”

A list of those arrested in the sweep is below. An indictment constitutes a charge of criminal conduct and it is not evidence of guilt. A criminal defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The investigation was led by the Federal Bureau of Investigation (FBI) Safe Streets Gang Task Force and the Manchester Police Department, Special Investigations Unit. Members of the arrest teams included: the FBI Safe Streets Gang Task Force; the New England High Intensity Drug Trafficking Area; the United States Marshals Service; the United States Secret Service; the Immigration and Customs Enforcement; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Department of State; the Drug Enforcement Administration; the New Hampshire Attorney General’s Drug Task Force; the New Hampshire State Police; the Massachusetts State Police; the Manchester Police Department; the Nashua Police Department; the Lowell (MA) Police Department; the Lawrence (MA) Police Department; the Andover (MA) Police Department; the New Hampshire Department of Probation and Parole; the Hillsborough County Sheriff’s Department; and the Strafford County Sheriff’s Department.

The Safe Streets Gang Task Force initiative, part of the FBI's Violent Crimes and Major Offenders Program, was created to encourage coordinated crime fighting efforts among FBI field offices and local law enforcement partners. The mission of the Safe Streets Gang Task Force is to effectively utilize partnerships to investigate, locate, arrest, and prosecute subjects for serious federal and state crimes, including drug and weapons violations, armed robbery, bank robbery, kidnapping, and gang and drug-related violence. There are presently over 140 Safe Streets Gang Task Forces nationally.

List of defendants and charges:

(1) Carlos Ramirez, 24, of Nashua, charged with engaging in a conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(2) Erick Ramirez, 28, of Nashua, charged with engaging in a conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(3) Jose Santos Rodriguez, 30, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(4) Gilberto Brown, 36, of Lowell, Massachusetts, charged with engaging in a conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846;

(5) Wiljado Cruz, Jr., 32, of Manchester, charged with engaging in a conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(6) David Gabriel, 34, of Manchester, charged with engaging in a conspiracy to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(7) Raymond Alleyne, 27, of Manchester, charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922;

(8) Roney White, 19, of Manchester, charged with distribution of cocaine base (“crack”), in violation of Title 21, United States Code, Section 841(a)(1);

(9) Miguel Rodriguez, 34, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(10) Antonio Clough, 27, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(11) Kathy Vazquez, 29, of Lawrence, Massachusetts, charged with engaging in a conspiracy to distribute cocaine base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1) and 846, and distribution of cocaine base (“crack”), in violation of Title 21, United States Code, Section 841(a)(1);

(12) Earrie Fenderson, 29, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(13) Phillip Yee, 38, of Andover, Massachusetts, charged with possession of cocaine with the intention to distribute, in violation of Title 21, United States Code, Section 841(a)(1);

(14) Edgar Feliciano, 36, of Manchester, charged with distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1);

(15) Nicholas Obando, age 38, of Manchester, charged with distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1);

(16) Luis Garcia, 26, of Manchester, charged with distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1);

(17) Geraldine Brown, 44, of Manchester, charged with distribution of oxycodone and hydrocodone, in violation of Title 21, United States Code, Section 841(a)(1), and aiding and abetting the distribution of cocaine base (“crack”), in violation of Title 18, United States Code, Section 2;

(18) Adalberto Miranda, 31, of Manchester, charged with distribution of cocaine base (“crack”), in violation of Title 21, United States Code, Section 841(a)(1);

(19) Frank Robitaille, 26, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(20) Natasha Robitaille, 22, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1);

(21) Matthew Denton, 30, of Manchester, charged with aiding and abetting the distribution of cocaine, in violation of Title 18, United States Code, Section 2;

(22) Xavier Morales, 22, of Manchester, charged with distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1).

(23) Raymond Marbury, 41, of Manchester, New Hampshire, who was arrested and indicted for the distribution of cocaine, in violation of Title 21, United States Code, Section 841(a)(1), and aiding and abetting the distribution of cocaine, in violation of Title 18, United States Code, Section 2; and

(24) Aaron Paley, 43, of Manchester, New Hampshire, who was arrested and indicted for engaging in a bank robbery, in violation of Title 18, United States Code, Section 2113.

Mayor and City Council of Ocean City Sued for Age Bias and Retaliation

2010-09-29T08:41:00.002-04:00

EEOC Says Older Candidate Denied Job Due to Age and Retaliation

BALTIMORE – The U.S. Equal Employment Opportunity Commission (EEOC) today announced a lawsuit against the mayor and city council of Ocean City, Md., for violating the Age Discrimination in Employment Act (ADEA) with regard to its hiring practices.

In its suit, the EEOC charges that the Atlantic Ocean resort town discriminated against Anthony Indge, age 62, when it failed to hire him into the position of full-time airport associate in May 2008. Indge had been employed as a temporary line technician and had filled in as an airport associate in 2007 and 2008. During his interview for the position of full-time airport associate, the airport manager, who was the hiring official, made several ageist comments to Indge, despite having previously informed him that his knowledge and performance made him a valued employee. In May 2008, a less qualified younger applicant, age 45, who had no prior experience as an airport associate was hired.

When Indge learned he was not selected for the full-time position, he complained of age discrimination to several Ocean City management officials and filed a charge with the EEOC. The EEOC further charged that Ocean City retaliated against Indge for complaining about age discrimination when it failed to hire him for vacancies as a temporary line technician for the 2009 season.

Such alleged conduct violates the Age Discrimination in Employment Act of 1967. The EEOC filed suit after first attempting to reach a voluntary settlement. The suit, (Civil Action No.1:10-cv-02690-JFM), filed in U.S. District Court for the District of Maryland, Northern Division, seeks monetary and injunctive relief, including back wages, liquidated damages, changes in employment policies to eliminate future age-based discrimination and instatement of Indge.

“Ageism is a way of stereotyping or marginalizing people,” said EEOC Regional Attorney Debra M. Lawrence. “Employers have a responsibility to provide everyone the freedom to compete in the workplace on a fair and level playing field, regardless of age, and to not retaliate against individuals who oppose unlawful practices.”

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the Commission is available on its web site (www.eeoc.gov).

Allstar Fitness Sued by EEOC for Sexual Harassment

2010-07-01T16:13:00.001-04:00

Supervisor Forced Sex on Latina Employee, Federal Agency Charges

SEATTLE — Allstar Fitness, which operates fitness clubs in Washington and Oregon, violated federal law when its manager sexually harassed a female employee on multiple occasions, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed today.

The EEOC’s suit charged that the sexual harassment occurred at two different Allstar Fitness facilities in Seattle. According to the federal agency’s investigation, the immediate supervisor of a Latina worker employed in housekeeping deliberately isolated her and forced her to have sex with him repeatedly. The supervisor warned the employee to stay quiet if she wanted to keep her job, the EEOC said. After months of abuse on a regular basis, when she told him “No more,” and threatened to report the attacks, she was fired.

“Keeping my job meant more than anything to me,” said the employee. “It meant being able to provide for my children and my mother. I didn’t want to risk losing my job, and my supervisor took advantage of this; he used it against me.”

Sexual harassment and termination as retaliation for speaking out about sexual harassment violate Title VII of Civil Rights Act of 1964. The EEOC filed suit in U.S. District Court for the Western District of Washington at Seattle ((EEOC V. Allstar Fitness, LLC., CV-10-1082) after first attempting to reach a pre-litigation settlement through its conciliation process. The EEOC seeks monetary damages on behalf of the worker, training on anti-discrimination laws, posting of notices at the work site, and other injunctive relief.

“No one should be forced to choose between personal dignity and the paycheck that feeds your family,” said EEOC Seattle Field Office Director Luis Lucero. “By law, employers must protect their workers and take responsibility for the actions of their supervisors, but Allstar had no employee training, no written workplace policies, and no complaint procedure.”

EEOC Regional Attorney William R. Tamayo said, “Here, the supervisor abused his power and assumed that this woman’s desperation and vulnerability would keep her silent. It is the EEOC’s duty to champion her right – and the rights of all workers – to speak out, and to a workplace free from sexual harassment.”

Noting that “the EEOC has seen an alarming rise in harassment cases involving egregious sexual assaults being committed against female workers, particularly those from immigrant communities,” Tamayo cited recent examples. Last year in October 2009, EEOC filed a lawsuit against La Pianta L.C.C., which does business as Frenchman Hills Vineyard in Othello, Wash., alleging that a supervisor sexually assaulted a Latina worker. Also in June 2009, EEOC filed a lawsuit against Willamette Tree Wholesale, Inc. located in Molalla, Ore., alleging that Latina workers there were sexually harassed, threatened, and in one case, repeatedly raped. In 2008, in another case involving the rape of a female worker by her supervisor, the U.S. Court of Appeals for the Ninth Circuit affirmed the judgment on a jury verdict of more than $1,000,000 in favor of the EEOC and farm worker Olivia Tamayo (no relation to William Tamayo) in a sexual harassment and retaliation lawsuit against Coalinga, Calif.-based Harris Farms.

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its web site at www.eeoc.gov.

Brown Cracks Down on the Sale of Jewelry Made of Highly Toxic Lead

2010-06-30T17:25:00.000-04:00

OAKLAND - Attorney General Edmund G. Brown Jr. today issued a consumer alert warning of a "serious health hazard" after he demanded that retail stores Rainbow and 5-7-9 remove from their shelves jewelry with parts containing as much as 97% lead, a potentially fatal health hazard, especially for young children.

"This jewelry represents a serious health hazard," Brown said, "and it is especially dangerous if a child gets a hold of it and puts it in his or her mouth. Some of these bangles are almost solid lead. The jewelry must be banished from retailers' shelves once and for all."

Some pieces of the lead-infested jewelry were labeled "KIDS" and one piece was marked "lead free" although its clasp contained more than 80% lead.

There is no safe level of lead exposure. In 2006, a four-year-old Minnesota boy died after he swallowed a pendant from jewelry that was more than 90% lead, and it became stuck in his intestinal tract.

In a letter to the stores' corporate parent, Rainbow Apparel, Brown said, "Some of the jewelry had components that would be highly toxic, and potentially lethal, if ingested, and all of it contains sufficient lead to contribute to long-term health risks."

California law bans the sale of jewelry that fails to comply with strict limits on the amount of lead it contains. The law was the result of a 2006 settlement of a lawsuit brought by the Attorney General and two environmental groups, Center of Environmental Health and As You Sow.

In that settlement, Rainbow and other retailers agreed to stop selling jewelry containing more than traces of lead. But four times in a little more than a year, the Attorney General has sent notices of violation to Rainbow for breaking the law and the terms of the settlement by selling jewelry made of lead.

Using a fund created in the 2006 settlement, the Center for Environmental Health monitors the stores. In May, it purchased 16 items containing lead from Rainbow stores in Northern California. Fifteen of the pieces contained more than 50% lead. One was 97% lead, and one labeled "KIDS" and "lead free" had a clasp that contained 81% lead. It's all inexpensive costume jewelry made in China.

Brown's letter to Rainbow Apparel follows:

June 24, 2010

RE: NOTICE OF VIOLATION to Rainbow Apparel of America, Inc.

This is a Notice of Violation to Rainbow Apparel of America, Inc., Rainbow Apparel Distribution Center Corp., A.I.J.J Enterprises, Inc., and The New 5-7-9 and Beyond, Inc. (collectively, "Rainbow Parties"). I am writing to you about jewelry purchased at Rainbow and 5-7-9 stores in northern California that exceeds the lead standards established in a consent judgment that applies to the Rainbow Parties, and that violates California Health and Safety Code section 25214.2(b)(3). This letter constitutes a Notice of Violation pursuant to Section 4.2 of the consent judgment. A copy of the consent judgment is available on our web site, at http://ag.ca.gov/prop65/pdfs/amendedConsent.pdf.

Using a grant from the Jewelry Testing Fund created under the consent judgment, the Center for Environmental Health purchased sixteen different pieces of jewelry with excess lead at your stores. Most of the pieces contained plated metal components with more than 80 percent lead, and two of the pieces had more than 95 percent lead. The consent judgment prohibits plated metal components with more than six percent lead. (§ 3.2.2.1.) One of the violations is for a plastic faux leather bracelet with 955 parts per million lead, which is nearly five times above the standard of 200 ppm. (§ 3.2.2.3.) Similarly troubling is the fact that one of the necklaces is labeled "lead free" even though its pendant contains 80 percent lead, and several of the pieces are marked "KIDS" below the bar code.

Enclosed with this letter is a table that lists the reference number for each piece of jewelry, a description of the jewelry, the date and location where the jewelry was purchased, the component with lead, and the lead level. Photographs of each piece of jewelry and the test results also are enclosed. We will provide additional documentation from the lab upon request.

This is the fourth notice of violation for illegal jewelry we have sent the Rainbow Parties in little over a year. Previously we sent notices of violation on May 22, 2009, October 5, 2009, and January 29, 2010. Each time the company has responded that it shares the Attorney General's concern regarding the sale of jewelry with excess lead, but each time more jewelry is discovered that violates the consent judgment and California's ban on lead-containing jewelry. We understand that the Rainbow Parties have instructed their vendors to provide compliant jewelry, and after each notice of violation it has addressed the violation with the vendors involved. But clearly that is not enough. Some of the jewelry at issue here has components that would be highly toxic, and potentially lethal, if ingested, and all of it contains sufficient lead to contribute to long-term health risks. Moreover, labeling jewelry as "lead free" when it contains a component with 80 percent lead raises additional concerns about false and misleading advertising. The company must do more to stop selling jewelry that is potentially dangerous and that violates the law.

We therefore request, in addition to responding to this notice under section 4.2.3 of the consent judgment, that you and your client meet with our office to discuss what steps the company will take to ensure that it stops selling jewelry with excess lead. Please contact me to schedule a meeting. Further, in your written response to the notice of violation, we ask that you provide specific data about the amount of the each kind of jewelry offered for sale, sold, and removed from shelves in California stores.

Sincerely,

EDMUND G. BROWN JR.
Attorney General

Developer Sentenced to 10 Years in Prison for Construction Fraud Scheme Robert B. Surles to Join Co-Defendants in Prison

2010-06-22T23:44:00.000-04:00

ATLANTA, GA—ROBERT B. SURLES, 64, of Chicago, Illinois, was sentenced today by United States District Judge Clarence Cooper to federal prison on charges of conspiracy and wire fraud for his part in a scheme to defraud the operator of a California corrections facility of almost $13 million.

United States Attorney Sally Quillian Yates said, “This defendant was part of an elaborate fraud scheme that ironically involved the construction of a prison. He will now experience how business is conducted inside a real prison.”

SURLES was sentenced to 10 years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $5,417,500. SURLES was found guilty of one count of conspiracy and 15 counts of wire fraud by a federal jury at the conclusion of a two-week trial on February 19, 2010.

SURLES’ co-defendants, EDGAR G. BEAUDREAULT, JR. and HOWARD A. SPERLING, were sentenced to federal prison terms on April 29, 2010, following their pleas of guilty. Both cooperated with the government and testified in SURLES’ trial. BEAUDREAULT is currently serving a prison sentence of three years, one month. SPERLING is currently serving a prison sentence of five years, 10 months.

According to United States Attorney Yates, the charges and other information presented in court: From August 2003 through January 2004, BEAUDREAULT, SPERLING and SURLES conspired to defraud Cornell Corrections of California, Inc., a private company that operates corrections facilities for various governmental units. In June 2003, Cornell Corrections contracted to have a corrections facility built in Canon City, Colorado for $13 million. The $13 million purchase price was to be held in an escrow account until the facility was completed.

In August 2003, the defendants induced Cornell Corrections to transfer its $13 million to an account in Atlanta, which they controlled, by falsely representing to Cornell that the account was an escrow account that was administered by a reputable bank. Upon receipt of Cornell Corrections’ $13 million, the defendants wire transferred the majority of Cornell’s $13 million to other accounts, to be used for their own purposes. Under the terms of their contract, the defendants were also to obtain a construction loan on behalf of “Western Comfort, Inc.” the general contractor who began construction of the facility. No loan was secured, making Western Comfort another victim of this scheme.

This case was investigated by special agents of the Federal Bureau of Investigation.

Assistant United States Attorneys Bernita B. Malloy and David E. McClernan prosecuted the case.

For further information please contact Sally Q. Yates, United States Attorney, or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Three in New Jersey Arrested and Charged in Foreclosure Rescue Scheme

2010-06-22T23:42:00.000-04:00

NEWARK, NJ—Three members of an alleged mortgage fraud scheme that falsely promised to help homeowners facing foreclosure keep their homes and repair their damaged credit were arrested this morning on wire fraud conspiracy charges, U.S. Attorney Paul J. Fishman announced.

Ronald Harris Jr. ,40, of West Orange, N.J.; Sterling Bruce, 36, of Old Bridge, N.J., and Sabir Muhammad, 46, of South Plainfield, N.J., were arrested this morning by postal inspectors of the U.S. Postal Inspection Service (USPIS) and special agents of the FBI. The defendants are charged by complaint with conspiring to commit wire fraud in a scheme which allegedly defrauded numerous mortgage lenders of over $10 million, making $1.5 million for themselves by causing dozens of fraudulently obtained loans to be made between 2005 and 2008.

According to the complaint filed in Newark federal court, Harris is the owner and operator of Harris Capital and Skyline Capital Group, both of which held themselves out as foreclosure rescue companies and operated out of offices in Newark and later, Maplewood, N.J. Harris and Bruce promised to help homeowners avoid foreclosure, keep their homes and repair their damaged credit by directing the homeowners to allow title to their homes to be put in the names of third party purchasers (the “straw buyers”) for approximately six month to a year, during which time the defendants would supposedly help the homeowners obtain more favorable mortgages and improve their credit ratings. The homeowners were told that the titles to their homes would be returned to them.

After the homeowners were signed up, Harris, Bruce, and Muhammad recruited individuals with good credit scores to act as straw buyers of the distressed properties. The straw buyers were told that they were helping someone save their home and that they would make money when they sold the property back to the current owner after approximately one year. The defendants then applied for mortgages in the name of the straw buyers to extract the equity from the homes.

To increase the credit-worthiness of the straw buyers and to ensure that they would be approved for the loans, the defendants submitted loan applications containing false personal and financial information about the straw buyers, such as misstating their employment, income and assets. For example, many of the straw buyers’ loan applications stated that they worked for one of Harris’ companies making a substantial salary—though the straw buyers had never been employed by Harris or one of his companies. Fraudulent supporting documents were regularly submitted with the loan applications to support the false statements, such as fake employment records and fake investment account statements.

Fraudulent settlement statements were also prepared that indicated the buyers had paid large sums of money to the sellers at the closings, though the straw buyers never paid any money in connection with the transactions. To further the scheme, fraudulent checks were regularly submitted with the closing documents to make it look as though the buyers had paid the required amount.

Prior to the closings of these fraudulent transactions, Harris and Bruce regularly filed fraudulent liens on the properties, usually for tens of thousands of dollars and in the name of one of Harris’ or Bruce’s shell companies. At the closing of the transactions, the liens would be paid off with the proceeds of the fraudulently obtained loans and Harris and Bruce would enrich themselves. With money derived from the scheme, Harris spent tens of thousands of dollars on golf and golf equipment, electronics and clothing.

In addition to recruiting straw buyers, Muhammad also sold a property to a straw buyer as part of the scheme and caused his wife to act as a straw buyer to purchase a property. For his role, Muhammad was paid thousands of dollars for each person he recruited, as well as over $14,000 in connection with his fraudulent sale.

Each of the defendants is charged with wire fraud conspiracy, which carries a maximum potential penalty of 30 years in prison and a $1 million fine.

U.S. Attorney Fishman credited postal inspectors of the USPIS, under the direction of Inspector in Charge David Collins, and special agents of the FBI, under the direction of Special Agent in charge Michael B. Ward, with the investigation leading to the criminal Complaint. Fishman added that the investigation is ongoing.

The government is represented by Assistant U.S. Attorney Matthew E. Beck of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

This case was prosecuted as part of the District of New Jersey’s Mortgage Fraud Task Force (MFTF), which was formally started in 2008 as among the first in the nation with FBI-funded task force agents. The agencies participating in the MFTF include the FBI; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Postal Inspection Service; Internal Revenue Service; and local law enforcement. The U.S. Attorney’s Office has played an active role in prioritizing and spearheading investigations and prosecutions of mortgage fraud and related financial crimes in this District.

This case was also brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

If you believe you have been a victim of or otherwise have information concerning mortgage fraud in New Jersey, you are encouraged to contact the FBI at 973-792-3000. If you believe you are a victim of this scheme, contact Postal Inspector Patricia Mathews at 973-792-3291.

Second Defendant in Springfield, Massachusetts, Church Arson Pleads Guilty

2010-06-22T23:38:00.000-04:00

WASHINGTON- The Justice Department today announced that Thomas Gleason, 22, of Springfield, Mass., pleaded guilty to a superseding information charging him with two crimes related to the burning of the Macedonia Church of God in Christ, a predominantly African-American church, in Springfield on the morning after President Barack Obama was elected as the first African-American President of the United States.

The superseding indictment charges that in the early morning hours of Nov. 5, 2008, within hours of Obama being elected President, Gleason and his co-conspirators agreed to burn and succeeded in burning the Macedonia Church of God in Christ’s newly-constructed building where religious services were to be held. The building was nearly completed at the time of the fire, which destroyed the entire structure, leaving only the metal superstructure and a small portion of the front corner intact. Investigators determined the fire to be incendiary in nature and caused by an unknown quantity of gasoline applied to the exterior and interior of the building.

Prior to the Nov. 4, 2008 presidential election, Gleason and his co-conspirators used racial slurs against African-Americans and expressed anger about the possible election of Obama as the first African-American President. On Nov. 4, 2008, Gleason and his co-conspirators agreed to retaliate against the election by burning the new church because the church members, congregation and Bishop were African-American.

Gleason damaged religious property and obstructed the free exercise of religion because of the race, color or ethnic characteristics of any individual associated with that religious property.
Gleason conspired to injure, oppress, threaten and intimidate the parishioners of the Macedonia Church of God in Christ in the free exercise or enjoyment of the right to hold and use real property, a right which is secured by the Constitution and laws of the United States.
"The freedom to practice the religion that we choose in a safe environment without being subjected to discrimination or hateful acts is a fundamental right to which every individual is entitled, " said Thomas E. Perez, Assistant Attorney General in charge of the Justice Department’s Civil Rights Division. " Anyone who violates that right will be prosecuted to the fullest extent of the law. "

"As the second defendant in this disturbing case pleads guilty, I hope it sends a strong message that hate crimes are taken very seriously in Massachusetts," said U.S. Attorney for the District of Massachusetts Carmen Ortiz.

Sentencing is scheduled for Oct. 1, 2010.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Massachusetts State Police; Hampden County District Attorney’s Office and the Springfield Police Department. It is being prosecuted by Assistant United States Attorneys Paul H. Smyth and Kevin O’Regan and Nicole Lee Ndumele, Trial Attorney in the Department of Justice’s Civil Rights Division.

Springfield, Massachusetts Man Pleads Guilty to Church Arson

2010-06-16T20:29:00.000-04:00

WASHINGTON—The Justice Department today announced that Benjamin Haskell, 23, of Springfield, Mass., pleaded guilty to a superseding information charging him with two crimes related to the burning of the Macedonia Church of God in Christ, a predominantly African-American church, in Springfield on the morning after President Barack Obama was elected as the first African-American president of the United States.

The superseding information charged that in the early morning hours of Nov. 5, 2008, within hours of President Obama being elected, Haskell and his co-conspirators agreed to burn, and succeeded in burning, the Macedonia Church of God in Christ’s newly constructed building where religious services were to be held for its predominantly African-American congregation. The building was 75 percent completed at the time of the fire, which destroyed the entire structure leaving only the metal superstructure and a small portion of the front corner intact. Investigators determined the fire to be incendiary in nature and caused by an unknown quantity of gasoline applied to the exterior and interior of the building.

Haskell damaged religious property and obstructed the free exercise of religious because of the race, color, or ethnic characteristics of any individual associated with that religious property. Haskell conspired to injure, oppress, threaten, and intimidate the parishioners of the Macedonia Church of God in Christ in the free exercise or enjoyment of the right to hold and use real property, a right which is secured in the Constitution and laws of the United States.

“The freedom to practice the religion that we choose in a safe environment without being subjected to discrimination or hateful acts is among our nation’s most cherished rights,” said Thomas E. Perez, Assistant Attorney General in charge of the Justice Department’s Civil Rights Division. “Anyone who violates that right will be prosecuted to the fullest extent of the law.”

U.S. Attorney Carmen Ortiz of the District of Massachusetts said, “Today's conviction should send a strong message that hate crimes will be vigorously investigated and prosecuted in Massachusetts. When I announced my civil rights initiative earlier this month, I made it clear that the U.S. Attorney’s Office will be reinvigorating it's efforts in this area, and making it one our top priorities.”

U.S. District Judge Michael A. Ponsor of Springfield scheduled sentencing for Sept. 29, 2010. By the terms of the plea agreement, Haskell faces mandatory sentence of 108 months in prison to be followed by three years of supervised release and a $7,500 fine.

The case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Massachusetts State Police; Hampden County District Attorney’s Office, and the Springfield Police Department. It is being prosecuted by Assistant U.S. Attorneys Paul H. Smyth and Kevin O’Regan of Ortiz’s Springfield Office and Nicole Lee Ndumele, Trial Attorney in the Civil Rights Division.

Twenty-Eight Charged in Coordinated Mortgage Fraud Takedown in Northern New Jersey Defendants from Eight New Jersey Counties Allegedly Attempted to Defraud Lenders out of $5.5 Million

2010-06-16T20:27:00.000-04:00

NEWARK, NJ—Nine criminal complaints unsealed today charged 28 individuals with participating in various mortgage fraud scams that collectively sought to defraud lenders out of more than $5.5 million and involved more than 17 New Jersey properties, U.S. Attorney for the District of New Jersey Paul J. Fishman and FBI Special Agent in Charge Michael B. Ward announced.

The charged defendants include 12 real estate agents, four investors, four mortgage consultants, three fraudulent document makers, two accountants, an appraiser, a bank employee, and a mortgage broker. Twenty-three of the defendants were arrested this morning as a result of a coordinated law enforcement investigation into mortgage fraud in northern New Jersey. Of the remaining defendants, one is in state custody on related charges, one is scheduled to self-surrender, and three remain at large.

The defendants, arrested this morning, appeared before U.S. Magistrate Judge Patty Shwartz at 2:00 p.m. in Newark federal court.

A 29th defendant, a fraudulent document maker involved in several of the charged scams, was previously charged by complaint with conspiracy to commit wire fraud and arrested on March 9, 2010. He has been in federal custody since his arrest.

According to the complaints filed in these cases, the defendants sought to obtain fraudulent mortgages for real estate transactions involving prospective purchasers who were not qualified to obtain the loans they were seeking To do so, the defendants made, obtained and presented to mortgage lenders documents that falsified the purported borrowers’ employment, inflated their income and assets, and provided other fraudulent information. In some cases, those documents included fraudulent W-2 forms; pay stubs; employment verification letters; bank account statements; tax returns; addresses and telephone numbers for borrowers and purported employers; and identification documents such as driver’s licenses and social security cards.

“These cases demonstrate just how pervasive the mortgage fraud problem is in New Jersey,” said U.S. Attorney Fishman. “Mortgage fraud is not limited to people who steal millions at a time. It is more insidious. It is more pernicious. And it is more prevalent. Mortgage fraud is often done at a retail level, and involves many different people playing many different roles. No matter what your role, if you participate in this kind of scheme, you will be held accountable.”

“For decades, home ownership has been the American Dream, a way to establish roots in a community, build personal wealth, and secure a peaceful retirement,” said Special Agent in Charge Ward of the FBI’s Newark field office. “Mortgage fraud places this dream at risk. Today’s arrests do not signify the culmination of a single investigation, but rather serve as notice that law enforcement is aggressively pursuing mortgage fraud schemes in New Jersey. If you have information concerning mortgage fraud in our state, please do not hesitate to contact the FBI at 973-792-3000.”

The 29 defendants, listed on the attached chart by complaint, range in age from 27 to 77 and live in eight of New Jersey’s 21 counties—Essex, Bergen, Union, Hudson, Burlington, Monmouth, Morris and Passaic. Some of the fraudulent schemes alleged in the complaints involve loans issued in connection with the Federal Housing Administration (FHA), which is a division of the U.S. Department of Housing and Urban Development (HUD). The FHA encourages designated lenders to make mortgage loans to qualified borrowers by protecting against loan defaults through a government-backed payment guarantee. Other loans involved in the scheme are what is known as “conventional” mortgage loans, which lenders underwrite and fund using their own funds and credit lines. After funding the conventional mortgage loans, the lenders can either service the loans themselves during the mortgage loan period or sell the loans to institutional investors in the secondary market.

Each of the 28 defendants is charged with one count of conspiring to commit wire fraud affecting a financial institution and one count of conspiring to commit bank fraud. Each count carries a maximum sentence of 30 years in prison and a maximum fine of $1 million. One defendant, Roberta Ferreira is charged in two complaints and faces an additional count each of wire fraud and bank fraud conspiracy.

United States v. Rodrigo Molina, et al., Mag. No. 10-3127 (PS)

This complaint charges four individuals: Rodrigo Molina, a licensed real estate agent; Domingo Fuentes, an investor who owned multiple companies he used to purchase real estate properties; Manuel Salgado, an accountant with a purported tax-filing service; and Vilma Dacruz, a bank employee. The defendants provided a loan officer with false W-2 Forms, tax returns, utilities statements, and bank statements, as well as a fraudulent driver’s license and social security card. Among other things, Molina and Fuentes provided fraudulent employment and wage documents, Salgado provided false tax returns, and Dacruz provided a false letter purportedly issued by her employer, a major bank, with false balance information on an account that did not exist.

United States v. Eugenio Mendes, Mag. No. 10-3128 (PS)

Eugenio Mendes, a licensed real estate agent, obtained fraudulent documents, including W-2s, pay stubs, bank statements, and copies of a driver’s license and social security card, all of which he used in an effort to obtain mortgages to which he was not entitled. Mendes procured these documents from co-conspirator Jairo Nunes, a document maker previously charged in a separate complaint (Mag. No. 10-8033), from whom Mendes had obtained fraudulent documents for approximately five years. One of the purported borrowers whose identity Mendes used to obtain a mortgage loan was an illegal alien. A search of Nunes’ home on March 9, 2010, revealed a thumb drive that contained a folder labeled “DOCUMENTOS EUGENIO,” which contained some of the fraudulent documents that Mendes had provided to obtain mortgage loans.

United States v. Lucilene Guido, Mag. No. 10-3124 (PS)

This complaint charges three individuals: Lucilene Guido, a real estate agent and former loan officer at a northern New Jersey mortgage company; Roberta Ferreira, a licensed real estate agent registered with a Riverside, N.J., realty company; and Genilza Nunes, a licensed real estate agent registered with the same realty company, but working out of a Newark, N.J. office. The defendants obtained false bank statements and identification documents from Jairo Nunes, who produced the documents at their request. Genilza Nunes produced additional fraudulent documents, including W-2s, tax returns, and false pay stubs purportedly from a New Jersey trucking company, and verified a prospective borrower’s employment via telephone. Defendants sent Jairo Nunes detailed instructions regarding changes to the fraudulent bank statements he had created so they could ensure the loan would proceed without a snag. During a search of Genilza Nunes’ office, law enforcement officers found a telephone labeled with the name of the fictitious trucking company, as well as other telephones labeled with the names of other non-existent companies.

United States v. Rogerio Silva, et al., Mag. No. 10-3130 (PS)

Rogerio Silva and Rui Talaia were licensed real estate agents and brokers of record at separate realty companies located in Riverside and Kearny, New Jersey, respectively. These individuals worked with Jairo Nunes to obtain documents that he created at their request, including false employment and income verification and bank account documents. The fraudulent documents, in the name of a purported buyer of real estate, included W-2s, pay stubs, a fraudulent bank verification letter, and bank statements. Relying on these documents, the victim bank transferred approximately $455,534 to New Jersey for the defendants’ benefit. Only one mortgage payment was made on a mortgage now in default. The defendants used additional false documents in an effort to obtain more loans. The search of Jairo Nunes’ home revealed a thumb drive that contained a folder labeled “ROGERIO” and included some of the fraudulent documents that Silva and Talaia had provided in an attempt to get the fraudulent loans.

United States v. Joelma Graca, Mag. No. 10-3129 (PS)

Joelma Graca, a real estate agent in Newark, and John Malheiro, a mortgage loan officer for two different New Jersey mortgage companies, sought mortgage loans via fraudulent bank statements, pay stubs, W-2s, and a loan application. For example, one buyer worked at a paint company, but was not earning enough to qualify for a mortgage loan so they instead claimed he worked at a consulting firm. Per their respective roles in the scheme, Graca identified the prospective borrowers and Malheiro located the properties to be purchased.

United States v. Viviane Bernardim, Mag. No. 10-3126 (PS)

This complaint charges eight individuals: Viviane Bernardim, a mortgage consultant; Theresa Dattalo, a mortgage loan officer, real estate agent and owner of a title company; Matthew DiBenedetto, a licensed appraiser and broker of record for a Newark real estate agency; Genady Macedo, a real estate agent; Sarah Santos, a mortgage consultant; Ioneides Sousa, a real estate investor; Iodete Pereira, who assisted in transactions; and Jorge Toledo, a real estate agent. The defendants obtained false documents from Jairo Nunes and used false W-2s, pay stubs and bank statements, as well as tax returns, to fraudulently obtain mortgage loans. A co-conspirator described one document maker involved in the scheme as a “broker of identities” for more than 30 years, who bought identities from people who were leaving the U.S. and sold them to others. The complaint also alleges that another co-conspirator described some of their current loan transactions as having been “put together with spit.”

United States v. Simone Fernandes, Mag. No. 10-3131 (PS)

Simone Fernandes obtained fraudulent documents created by Jairo Nunes—including pay stubs, W-2s, bank statements, tax returns, and copies of a driver’s license and social security card—and submitted these documents in support of a fraudulent loan application. When the loan officer expressed amazement at the quality and thoroughness of the documents Fernandes and Jairo Nunes had provided, they both told the loan officer that they once had spent an entire day at the computer thinking of all aspects of a real estate transaction for which they could create false documents. The search of Jairo Nunes’ home revealed a thumb drive that contained a folder labeled “SIMONE,” which contained numerous false documents that Jairo Nunes had created for Fernandes. Fraudulent documents were found in the “SIMONE” folder pertaining to at least 14 additional individuals.

United States v. Edivaldo dos Santos, Mag. No. 10-3125 (PS)

This complaint charges six defendants: Edivaldo Dos Santos, a former loan officer holding himself out as a mortgage consultant; Roberta Ferreira (also charged in the U.S. v. Lucilene Guido et al. complaint); Ricardo Muniz, employed in the construction industry; Faye Cargill-Flores, a certified public accountant in Morristown, N.J.; Maria Lourdes Sousa, who worked in the healthcare industry and lived in Paterson, N.J.; and Rosa Damasceno, the owner of a Newark company that provided tax services and driver education in Belleville. Muniz sought to obtain property and cash back at closing, and the co-conspirators provided falsely inflated income information regarding Muniz to help him get the loan. Sousa made false pay stubs and her sister, Damasceno, made falseW-2s and tax returns. The defendants provided the false documents to a loan officer in an effort to obtain a mortgage to which they were not entitled.

United States v. Raquel Berger, Mag. No. 10-3132 (PS)

Raquel Berger, a real estate agent and the broker of record and franchise owner of a realty company in Hillside, N.J., and Cesar DeSouza, who operated an accounting and tax preparation business in Newark, obtained fraudulent documents made by Damasceno (DeSouza’s wife) in support of unqualified borrowers in order to obtain mortgage loans to which they were not entitled. To increase their chance of getting a loan approved, they prepared amended, false tax returns that fraudulently inflated the borrower’s stated earnings.

This case was prosecuted as part of the District of New Jersey’s Mortgage Fraud Task Force (MFTF), which was formally started in 2008, and was among the first such FBI-funded task forces in the country. This case was also brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

U.S. Attorney Fishman praised agents of the FBI, under the direction of Special Agent in Charge Ward in Newark, and the Hudson County Prosecutors Office, under the direction of Prosecutor Edward J. De Fazio, for their work leading the investigation of this case. He also credited the other members of the MFTF, including the U.S. Department of Housing and Urban Development Office of Inspector General, the Internal Revenue Service, the U.S. Secret Service, and U.S. Postal Inspection Service for their important contributions to the investigation. Fishman also thanked the Department of Homeland Security’s Customs and Border Protection and U.S. Citizenship and Immigration Services; the U.S. Social Security Administration; and the New Jersey Attorney General’s Office for their assistance.

The cases are being prosecuted by Assistant U.S. Attorneys Mark Coyne, Christine Magdo and Robert Marasco of the U.S. Attorney’s Office Economic Crimes Unit.

The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT
(by complaint) AGE RESIDENCE ROLE
Mag. No. 10-3127
Rodrigo Molina 56 Belleville, NJ Real Estate Agent
Domingo Fuentes 77 Bloomfield, NJ Investor
Manuel Salgado 73 Newark, NJ Document Maker
Vilma Dacruz 45 North Arlington, NJ Bank Employee
Mag. No. 10-3128
Eugenio Mendes 49 Cranford, NJ Real Estate Agent
Mag. No. 10-3124
Lucilene Guido, a/k/a Lucilene Da Silva Rios, a/k/a Lucy Guido 31 Kearny, NJ Real Estate Agent
(and former loan officer)
Roberta Ferreira 27 Kearny, NJ Real Estate Agent
Genilza Nunes, a/k/a Geane Nunes 36 Kearny, NJ Real Estate Agent/Document Maker
Mag. No. 10-3130
Rogerio Silva 44 Riverside, NJ Real Estate Agent/Document Maker
Rui Talaia 46 Rutherford, NJ Real Estate Agent
Mag. No. 10-3129
Joelma Graca 43 Newark, NJ Real Estate Agent
John Malheiro 35 Little Ferry, NJ Mortgage Broker
Mag. No. 10-3126
Viviane Bernardim, a/k/a Viviane Bernardin, a/k/a Viviane Pereira 33 Aberdeen, NJ Mortgage Consultant
Theresa Dattalo 53 Randolph, NJ Real Estate Agent/Mortgage Broker/Title Agent
Matthew DiBenedetto 66 Freehold, NJ Appraiser
Genady Macedo 40 Newark, NJ Real Estate Agent
Iodete Pereira 51 Elizabeth, NJ Investor
Sarah Santos 29 Newark, NJ Mortgage Consultant
Ioneides Sousa 49 Newark, NJ Investor
Jorge Toledo, a/k/a Vinny Toledo 29 Aberdeen, NJ Real Estate Agent
Mag. No. 10-3131
Simone Fernandes 32 Hillside, NJ Mortgage Consultant
Mag. No. 10-3125
Edivaldo dos Santos, a/k/a Eddie Dos Santos 52 Harrison, NJ Mortgage Consultant
Roberta Ferreira 27 Kearny, NJ Real Estate Agent
Ricardo Muniz 39 Newark, NJ Investor
Faye B. Cargill-Flores, a/k/a Faye Flores 48 Morristown, NJ Certified Public Accountant/ Document Maker
Maria Lourdes Sousa, a/k/a Lourdes Sousa 57 Paterson, NJ Document Maker
Rosa Damasceno 59 Belleville, NJ Accountant/Document Maker
Mag. No. 10-3132
Raquel Berger 41 Union, NJ Real Estate Agent
Cesar DeSouza, a/k/a Geraldo DeSouza 55 Belleville, NJ Document Maker
Mag. No. 10-8033
Jairo Nunes
(arrested 3/9/10) 34 Newark, NJ Document Maker

USPTO Joint Labor-Management Task Force Proposes Changes to Patent Examiner Performance Standards

2010-06-16T17:03:00.000-04:00

Changes will mark the first updates to standards in nearly 25 years

Washington – Management at the United States Patent and Trademark Office has been working with representatives of the patent examiners union, the Patent Office Professional Association (POPA), to better align the performance standards for patent examiners with the USPTO’s goals for increasing quality in patent examination and reducing the backlog of pending patent applications, Under Secretary of Commerce for Intellectual Property and Director of the USPTO David Kappos announced today. If adopted, the joint task force’s changes would be the first major revision to the patent examiners’ performance appraisal plan (PAP) since 1986.

"The changes identified by the joint task force will better align examiner goals with those of the agency, better define expectations and measures for success, and encourage mentoring and training – all while ensuring transparency and clarity," Kappos said. "Along with recent changes to the examiner count system and the revised PAP for supervisory patent examiners, I believe this is an important step forward that will help create a foundation for future USPTO success."

"Where other efforts to revise the examiner PAP over the past quarter century have failed, this effort has been successful because management was willing to include POPA in the process," said POPA President Robert Budens. "This spirit of cooperation has helped to create a new PAP that we feel is beneficial to the examiner while also setting the agency on a more direct path to shorten pendency while maintaining high quality examination."

Some of the proposed changes to the Performance Appraisal Plan (PAP) include:

• Establishing a “Stakeholder Interaction” element that emphasizes routine use of interviews to facilitate compact prosecution and timely responsiveness to requests for personal interviews;

• Revising the performance standards to include a single quality element for all examiners—increasing the focus on examination quality and improve the transparency of how quality is measured; and

• Revamping the workflow element to provide examiners more opportunities to use their professional discretion to manage their own workflow.

POPA’s leadership is now sending the revised performance standards to its members for a vote, which is expected to be held in July. If approved, the new performance standards could be implemented as soon as the 2011 fiscal year.

More specifics on the proposed changes will be available in the coming weeks.

For non-press inquiries, contact Andrew Faile by e-mail, Andrew.Faile@uspto.gov.

Edward “Ted” M Kennedy

2010-06-14T17:20:00.000-04:00

Edward “Ted” Moore Kennedy served as U.S. senator for the state of Massachusetts from November 7, 1962 until his death. He was a long-time leader in the Democrat Party and candidate for that party’s presidential nomination. During his senate tenure, Kennedy served in several senior leadership positions, including stints as the chair of the Judiciary Committee, the Labor and Human Resource Committee, and the Health, Education, Labor, and Pensions Committee.

Kennedy was born in Dorchester—a subdivision of the city of Boston, Massachusetts—and was educated at Harvard College and the University of Virginia’s School of Law. The son of Joseph P. Kennedy, Ted Kennedy was the brother of President John F. Kennedy and Attorney General Robert Kennedy. He died on August 25, 2009 and is buried in Arlington National Cemetery.

This release consists of material from seven FBI files—three Headquarters files and four field division files, totaling more then 2,200 pages. It covers the FBI’s relationship with Senator Kennedy from 1961 to 1985. At no point do these files suggest that the FBI investigated Senator Kennedy for a criminal violation or as a security threat. The bulk of this material concerns FBI investigation of threats of violence and other extortion claims against Senator Kennedy and other public officials.

Limited public source information was collected by the FBI regarding Senator Kennedy’s vehicular accident at Chappaquiddick Island that resulted in the death of Mary Joe Kopechne. The FBI had no investigative role in this case, since there were no violations of federal criminal law involved. Although there was a mistaken contemporary report about FBI involvement in the case, the Bureau was not asked to provide support to the local police investigation.

Some of this material also reports on Senator Kennedy’s fact finding trip to Mexico, Central America, and South America in 1961. Given the Bureau’s long interest in the influence of Central American revolutionaries and communists on American radicals, the Bureau took an interest in Kennedy’s travels. It was also concerned with potential threats against the Senator and used its foreign liaison resources to keep an eye out for such threats.

In the course of that trip, the FBI recovered a notebook kept by Kennedy during his travels. The notebook was accidentally left on the airplane that he was traveling on, and the Bureau recovered it for him when airline personnel reported the matter to the FBI. The file also contains information about Senator Kennedy’s plane crash in 1964.

Finally, these files contain material concerning the Kennedys and American politics. Some of the early material in the file suggests that Joseph P. Kennedy was close enough to FBI Director J. Edgar Hoover that he had called the Bureau regarding a rumor that reporter Drew Pearson was to report the Ted Kennedy had been associated with communists. Hoover assured him that the FBI had not investigated the senator and had no information to even support such a claim. Hoover also provided the senator an essay on his reminiscences of Joseph Kennedy for a posthumous anthology of reflections on the senator’s then-late father.

The same file also includes material concerning the appointment by the Johnson administration of a Kennedy family friend and political supporter to a federal judgeship. Lastly, it contains report of a rumor from an informant suggesting that elements of the Mafia wanted attack the character of Edward and Robert Kennedy and their brother-in-law Peter Lawford by working through associates of Frank Sinatra to compromise them at a New York party. In the convoluted rumor, both Frank Sinatra and Marilyn Monroe were to be involved. The FBI did not consider the rumor solid, and no other mention of it appears in the file, suggesting that the informant did not supply any corroboration to the story.

9-HQ-51213, 1970 to 1974 – 499 pages

This file contains various investigations regarding threats directed toward Senator Kennedy. It consists of two sections and two EBFs (Enclosures Behind Files). Redactions were largely made to protect the privacy of people mentioned in the file.

Section 1: 6/1970 to 10/1972 – 288 pages

Section 2: 10/1972 to 8/1974 – 104 pages

EBF 2: 5/1970 – 76 pages

EBF 10: 10/1970 – 31 pages

62-BS-4994 – 10/1968 to 11/1968 – 5 pages

This file details an investigation in late 1968 regarding a series of threatening letters directed to Senator Kennedy. These letters were received by the Edmonton City, Alberta, Canada Police Department; the Edmonton Journal Newspaper; and the Seattle FBI Field Office. Senator Kennedy’s office in Boston was advised by the FBI of these threats, and prosecution was declined. Redactions were made to protect privacy.

62-BS-5078 – 7/1969 to 9/1975 – 77 pages

This file consists of public source information collected by the FBI regarding Senator Kennedy’s Chappaquiddick Island accident and the resulting court inquiry, as well as the teletype in which the FBI was originally advised of the accident by the Edgartown, Massachusetts Chief of Police. Redactions were made to protect privacy.

62-HQ-112941 – 1969 to 1985 – 908 pages

This file contains various investigations into threats directed toward Senator Kennedy and other public figures. These threats originated from multiple sources, including individuals, anonymous persons, and members of radical groups such as the Ku Klux Klan, “Minutemen” organizations, and the National Socialist White People’s Party. The file also contains threats from individuals angered by Kennedy’s stance on politics in Northern Ireland and allegations of an alleged Mafia plot to kill President Kennedy and Senators Robert and Edward Kennedy.

Redactions were made to protect privacy and the identity of confidential sources. In addition, some information had to be referred to another government agency for release.

Section 1: 6/1969 to 12/1969 – 172 pages

Section 2: 1/1970 to 9/1972 – 289 pages

Section 3: 9/1972 to 2/1982 – 294 pages

Section 4:12/1979 to 11/1985 – 153 pages

89-PX-250 – 11/1977 to 12/1977 – 5 pages

This file contains a brief investigation regarding an allegation by a federal prisoner that Sirhan Sirhan attempted to hire a federal prisoner to kill Senator Edward Kennedy. Redactions were made to protect privacy.

94-HQ-55752 – 1961 to 1991 – 697 pages

This file contains information gathered in the course of the FBI’s interactions with Senator Kennedy over many years. It includes extensive information about many aspects of the senator’s public life, including:

* FBI coverage of a fact-finding trip to Mexico and Central and South America that Kennedy undertook in 1961 before his first term as senator, including a copy of a diary of the trip recovered by the FBI after Kennedy left it on a plane;
* Information regarding his first campaign to become senator;
* Correspondence regarding Senator Kennedy’s 1964 plane crash;
* An appeal to Director Hoover by Senator Kennedy for a written submission regarding Joseph Kennedy for a proposed book being compiled by the senator;
* Correspondence regarding Senator Kennedy’s involvement in the civil rights movement and attempts to bring Vietnamese orphans to the United States;
* Various investigations regarding threats directed toward Senator Kennedy and other public figures;
* Appeals to the FBI to investigate Senator Kennedy’s accident on Chappaquiddick Island; and
* Information concerning Senator Kennedy’s involvement in the Freedom of Information Act legislation.

Redactions were made to protect privacy and the identities of confidential sources of information, because certain material remains classified and other material needed to be referred to another government agency for release.

Section 1: 7/1961 to 8/1968 – 198 pages

Section 2: 8/1968 to 5/1969 – 100 pages

Section 3: 5/1969 to 1/1971 – 199 pages

Section 4: 2/1971 to 5/1991 – 151 pages

EBF 25: 7/1961 – 237 pages

EBF 95: 7/1968 to 3/1969 – 12 pages

175A-WF-389 – 5/1985 to 2/1986 – 21 pages
This file details an investigation regarding a threatening letter sent to President Reagan and Senator Kennedy. The government ultimately declined prosecution in this case, as it was determined that the originator of the threatening letter as not competent to stand trial.

Justice Department Settles Lawsuit Alleging Racial Discrimination by the Township of Green Brook, New Jersey

2010-06-14T17:18:00.000-04:00

WASHINGTON- The Justice Department today announced that it has reached a consent decree with the township of Green Brook, N.J., that, if approved by the U.S. District Court for the District of New Jersey, will resolve the department’s lawsuit against Green Brook alleging racial discrimination in employment in violation of Title VII of the Civil Rights Act of 1964, as amended.

Title VII prohibits discrimination in employment on the basis of race, sex, national origin or religion, and prohibits retaliation against employees for opposing employment practices that they reasonably believe are discriminatory under Title VII, or for filing a complaint of employment discrimination.

The department’s complaint, filed today along with the consent decree, alleges that the township discriminated against Anthony Rivera, an African-American road worker in Green Brook’s Department of Public Works. According to the complaint, Rivera was regularly subjected to racial harassment in the workplace by his supervisor, including racially offensive slurs, jokes and remarks, from 2006 through 2009. The complaint further alleges the township unlawfully retaliated against Rivera after he complained to Green Brook management in October 2007 about his supervisor’s racial harassment.

Under the terms of the decree, the township must pay Rivera $35,000 in compensatory damages. The decree prohibits the township from discriminating against any employee or job applicant on the basis of race, and from engaging in unlawful retaliation. The decree also requires that Green Brook provide training on its anti-discrimination and anti-harassment policies to all of its employees and managers.

"Our nation’s laws ensure that every individual has the right to work in an environment free from discrimination, harassment and retaliation," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department commends Green Brook for working cooperatively with us to resolve this matter without the need for contested litigation."

The department’s lawsuit was based on a charge of discrimination filed by Rivera with the Equal Employment Opportunity Commission.

The enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/emp/.

Eric Dodd, the "Portfolio Bandit," Indicted for 11 Metro Denver Bank Robberies

2010-05-20T21:11:00.000-04:00

DENVER—Eric Dodd, age 38, of unincorporated Adams County, was indicted by a federal grand jury late Tuesday on 11 counts of bank robbery, U.S. Attorney David Gaouette and FBI Special Agent in Charge James Davis announced. Dodd, also known as the “Portfolio Bandit,” was arrested without incident by an FBI SWAT Team on May 13, 2010. Dodd first appeared in court on May 14, 2010, for an initial appearance, where he was advised of the charges pending against him. He then appeared in court yesterday, Wednesday, May 19, 2010, for a preliminary hearing and detention hearing. Dodd waived his right to a preliminary hearing. A U.S. Magistrate Judge then ordered Dodd detained without bond pending a resolution of his case. Dodd is scheduled to be in court next on May 27, 2010, for arraignment on the indictment.

Dodd was apprehended by the FBI’s Rocky Mountain Safe Streets Task Force thanks to media coverage of the bank robberies, which led to law enforcement receiving two tips about his whereabouts. FBI agents and SWAT members descended on Dodd’s apartment in unincorporated Adams County. He was arrested without incident.

According to the indictment, on eleven different occasions Dodd did knowingly, by force and violence, and by intimidation, take and attempt to take money from FDIC insured banks.

Specifically:

Count 1: August 27, 2009 robbery of U.S. Bank, located at 10520 North Melody Drive, Northglenn, Colorado

Count 2: October 2, 2009 robbery of U.S. Bank, located at 1100 South Broadway, Denver, Colorado

Count 3: November 5, 2009 attempted robbery of Wells Fargo Bank West, located at 5050 South Federal Boulevard, Englewood, Colorado

Count 4: November 5, 2009 robbery of Wachovia Bank, located at 2807 South Colorado Boulevard, Denver, Colorado

Count 5: November 24, 2009 robbery of U.S. Bank, located at 9376 South University Boulevard, Highlands Ranch, Colorado

Count 6: December 4, 2009 robbery of Bank of the West, located at 8184 South Kipling Parkway, Littleton, Colorado

Count 7: December 18, 2009 robbery of U.S. Bank, located at 7350 Park Meadows Drive, Lone Tree, Colorado

Count 8: December 30, 2009 robbery of U.S. Bank, located at 9303 South Broadway, Littleton, Colorado

Count 9: January 21, 2010 robbery of Bank of the West, located at 11451 South Twenty Mile Road, Parker, Colorado

Count 10: February 3, 2010 robbery of U.S. Bank, located at 7560 South Pierce Street, Littleton, Colorado

Count 11: May 8, 2010 robbery of U.S. Bank, located at 3454 West 72nd Avenue, Westminster, Colorado

“The arrest of Dodd as the “Portfolio Bandit” was the result of continued hard work on the part of the FBI Rocky Mountain Safe Streets Task Force and our local law enforcement partners,” said FBI Special Agent in Charge James H. Davis. “Key factors in this case were citizens of our community who saw photographs of Dodd in the news media and called the FBI and Crime Stoppers with information. The cooperation of citizens and law enforcement is truly the most effective tool in keeping our communities safe from violent crime.”

If convicted, Dodd faces not more than 20 years in federal prison, and up to a $250,000 fine, per count, plus restitution.

This case was investigated by the FBI Rocky Mountain Safe Street Task Force, including the FBI, the Lakewood Police Department, the Aurora Police Department, the Jefferson County Sheriff’s Office, the Federal Protective Service, the Denver Police Department, and the Colorado State Patrol.

Dodd is being prosecuted by Assistant U.S. Attorney David Conner.

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

Obele Ife Chidi, of Nigeria, was sentenced today on Health Care Fraud Conviction

2010-05-20T21:08:00.000-04:00

DALLAS—Obele Ife Chidi, of Nigeria, was sentenced today by U.S. District Judge Reed O’Connor to 30 months in federal prison following her guilty plea in February 2010 to one count of conspiracy to commit health care fraud and money laundering, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Chidi was also ordered to pay $744,576 restitution to the Medicare program.

According to documents filed in court, Chidi and her husband, Iheanyi David Nzekwe, owned a durable medical equipment supply business, Specialty Medical Supply & Health Management, Inc., formerly in Richardson, Texas. In 2003, Chidi and Nzekwe unlawfully used the identifying information of two physicians to submit more than $991,000 in false claims to Medicare, seeking reimbursement for power wheelchairs. The claims falsely reflected that these physicians had examined the patients and issued prescriptions for the wheelchairs when in fact, the patients and the physicians had never even met.

In total, more than 200 fraudulent claims were submitted to Medicare through Chidi’s scheme, resulting in Medicare payments of $744,576. Additionally, Chidi assumed multiple aliases and wrote checks for $11,000 and $63,000, among others, payable to her husband and herself under one alias and signed by her under another alias. These checks were issued from the Specialty Medical bank account into which fraudulently-obtained Medicare payments had been deposited.

Chidi and Nzekwe left the U.S. while under investigation in late 2003. Federal agents apprehended Chidi at a Houston airport in December 2009 as she attempted to re-enter the country. The case remains pending against Nzekwe.

“Any time false claims are submitted for payment, the nation’s health insurance programs suffer,” said Special Agent in Charge Mike Fields of the HHS Office of the Inspector General's (OIG) Dallas Regional Office. “Our HHS OIG investigators will continue to work closely with our law enforcement partners to identify providers who deliberately manipulate the system to obtain crucial Medicare or Medicaid dollars.”

U.S. Attorney Jacks praised the excellent investigative work of HHS OIG, the FBI, and IRS-Criminal Investigation. Assistant U.S. Attorneys Katherine Miller and Sean R. McKenna prosecuted.

Four Arrested, Five Wanted for Fleecing Hundreds of Homeowners Seeking Foreclosure Relief

2010-05-20T20:52:00.000-04:00

LOS ANGELES - Attorney General Edmund G. Brown Jr. today announced that nine men engaged in a Southern California boiler room, tricked out in high-roller style with a roulette wheel and other casino equipment, have been charged with 97 criminal counts for stealing at least $2.3 million from more than 1,500 desperate homeowners who were promised loan modifications but received no relief.

Arrested Tuesday and Wednesday night were Gregg Scott Quinn, 37, of Camarillo and Juan Pierre Washington, 40, of Winnetka, who worked as company sales managers and supervisors. They are being held at Los Angeles County Jail.

Gary Arnold Eisenberg, 71, of Westwood, a top telemarketer with the company, and Ira Itskowitz, 58, a sales manager, each spent more than five years in federal prison for previous fraud convictions and are already in federal custody for violating parole in connection with their participation in the scheme.

The four principal owners of the business, Niv Iskin, 30, of Reseda, Reviv Karpman, 38, of Tarzana, Tomer Kogman, 29, of Receda and Avraham Yechizkia, 34, of Encino; and a sales manager, Barel Iskin, 23, of Woodland Hills, are still being pursued by law enforcement.

"This company was just a boiler room, long on promises and upfront fees but short on foreclosure relief," Brown said. "Its operators cruelly defrauded citizens trying valiantly to hang on to their homes."

Brown's office initiated its investigation in March 2009 in response to numerous consumer complaints against the defendants' Canoga Park-based loan modification business, which operated as Mason Capital Group, LLC and Gretchen Fox and Associates.

When agents executed a search warrant at the office, they found a Las Vegas casino-themed sales floor complete with craps, poker and black jack tables fashioned as workstations, and a roulette wheel that top-selling telemarketers spun for cash bonuses (see photos attached).

Between January 2008 and June 2009, the four owners took in at least $2.3 million in up-front fees, which ranged from $1,000 to $5,000, from more than 1,500 homeowners throughout the country. In almost every case, no loan modifications were completed, as promised. Financial records indicate that the four owners spent hundreds of thousands on private school tuition, travel, entertainment, shopping and other personal expenses while running Mason Capital Group, LLC and Gretchen Fox and Associates.

To corral sales, the four owners used a telemarketing operation that targeted homeowners facing mortgage payment increases or foreclosure. During an initial call, the telemarketers touted the company's team of "attorneys, forensic accounting personnel, and loan negotiators" available to negotiate reductions in interest rates, monthly payments and principal balances; their supposed 90% to 100% loan modification success rate and refund guarantee. The telemarketers then collected financial information from homeowners to determine if they "qualified" for the company's services.

Soon after the initial call, homeowners received a follow-up call to inform them that their case had been "reviewed" and "approved." Telemarketers closed sales by insisting the approval would expire unless homeowners acted quickly, while reminding them about the refund guarantee if promised results were not achieved.

In fact, the company completed very few loan modifications, rarely contacted lenders, failed to honor the refund guarantee, employed unlicensed "loan processors" and had no legal staff negotiating with lenders.

While homeowners waited, they were told their loan modifications, or refunds, would be voided if they tried independently to contact their lender. Many lost their homes to foreclosure as a result.

To skirt the state's foreclosure laws, avoid paying refunds and conceal profits, the owners changed company names, claimed bankruptcy and shifted loan modification files to another business they created called, American Financial Group, LLC.

Investigators located victims in dozens of California cities, including: American Canyon, Anaheim, Antioch, Artesia, Atwater, Bakersfield, Ceres, Chico, Cotati, Cloverdale, Crestline, Delano, Elk Grove, Encino, Fountain Valley, Fremont, Fresno, Guerneville, Hanford, Hayward, Hercules, Hood, Indio, La Jolla, Lancaster, Laguna Hills, Lodi, Long Beach, Los Angeles, Manteca, Modesto, Montclair, N. Hollywood, Newhall, Newman, North Highlands, Oakdale, Oakland, Ontario, Palmdale, Pittsburg, Pleasanton, Poplar, Porterville, Redding, Richmond, Riverbank, Rodeo, Sacramento, San Jose, San Pablo, Santa Clara, Santa Rosa, Sebastopol, Stanton, Stockton, Tracy, Tulare, Turlock, Union City, Upland, Valley Village, Van Nuys, Visalia, W. Sacramento and Yuba City.

Brown's office will seek restitution for victims of this scam.

By law, all individuals and businesses offering mortgage foreclosure consulting or loan modification and foreclosure assistance services must register with Brown's office and post a $100,000 bond. It is also illegal for loan modification consultants to charge up-front fees for their services.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

If you are a homeowner who has been scammed, contact Brown's office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.

Brown has sought court orders to shut down more than 30 fraudulent foreclosure relief companies and has brought criminal charges and obtained lengthy prison sentences for dozens of other deceptive loan modification consultants. For more information on Brown's action against loan modification fraud visit: http://ag.ca.gov/loanmod.

The 97 criminal counts filed against the nine defendants, include 63 counts of grand theft, 26 counts of unlawful foreclosure consulting, 7 counts of tax evasion and 1 count of conspiracy.

The United States Postal Inspection Service assisted in the investigation.

Attorney General's Agents Arrest 31 People in Recycling Fraud Rings That Stole $3.5 Million Worth of Cans and Bottles

2010-05-05T21:23:00.000-04:00

SACRAMENTO - Attorney General Edmund G. Brown Jr. announced today that special agents with the Department of Justice, working closely with the Department of Resources Recycling and Recovery (CalRecycle), have shut down three beverage-container recycling fraud rings in which rogue entrepreneurs trucked millions of cans and bottles from Arizona and Nevada to illegally claim California Redemption Value (CRV) refunds.

In total, the fraud rings robbed the state of more than $3.5 million used to operate the state's recycling program as well as to promote recycling throughout California. Thirty-one individuals have been arrested in connection with these fraudulent activities.

"These bands of thieves have been caught red-handed running tons of cans and bottles from across the state's border and fraudulently collecting money through the California Redemption Value program," Attorney General Brown said. "Defrauding the state's recycling program is not a way to make easy money. We are looking for you and you will be caught."

Conviction of redemption fraud and the importation of recyclable materials is a felony if the redemption amount is over $400.

In one case originating in Nevada, a ring imported to California 1.6 million pounds of cans and bottles - enough, if not compacted, to fill 464 18-wheelers.

In another case, cans were not only hauled from the Phoenix area to Moreno Valley for the CRV deposit, they were filled with sand to add weight for an increased deposit return.

In a third case, agents looking for one recycling fraud suspect along Interstate 8 observed yet another truck carrying thousands of cans. That observation spurred a two-month investigation, resulting in the arrest of the owner of a recycling center and three other suspects.

California is one of 11 states with a bottle and can redemption program. Among its neighbors, Oregon has a program, but Nevada and Arizona do not. When a person purchases a bottle or can in California, the CRV is paid at the checkout stand. When the container is redeemed at one of the state's 2,000 recycling facilities, the CRV is returned to the consumer. For beverage containers weighing less than 24 ounces, the CRV is 5 cents; for containers 24 ounces and greater, the CRV is 10 cents. For aluminum, the CRV equals $1.57 per pound.

When an out-of-state can or bottle is fraudulently redeemed in California, the program loses money because money is paid out for a container for which the CRV was never paid. This robs the CRV program, which relies on unclaimed CRV to administer the program and support a variety of activities that promote recycling across the state.

"Recycling fraud is a crime against California consumers and we take it very seriously," said CalRecycle Director Margo Reid Brown. "Our inspectors work closely with state and local law enforcement to root out and prosecute criminals who steal the money used to repay Californians and support our state's recycling programs. These arrests are evidence that recycling fraud will not be tolerated."

California's program began in 1987, following legislation passed in 1986. Today, about 80 percent of bottles and 84 percent of aluminum cans purchased in the state are returned for recycling.

"Californians are doing a great job recycling their bottles and cans," added Attorney General Brown. "We don't want people intent on committing recycling fraud to harm a program that is working well."

To combat recycling fraud, CalRecycle staff visits major recycling processors to inspect loads of beverage containers delivered for CRV reimbursement. In 2009, the department removed 25 recycling centers from the state program for submitting fraudulent claims. CalRecycle refers recycling fraud cases to the Department of Justice for criminal investigation and prosecution.

Here's how the three recycling fraud rings were broken up in April by the Department of Justice:

1. Department of Justice special agents observed Mariano Dejesus-Solis collecting and storing recyclable materials at his Las Vegas residence, as well as at several storage facilities in North Las Vegas. Twice a week, Dejesus-Solis and his accomplices drove 16-foot and 24-foot rental trucks filled with approximately 5,000 pounds of aluminum cans and bottles to a storage facility in Montclair (San Bernardino County) where the loads were parceled out to accomplices who would take them to recycling centers. The group defrauded the CRV program an estimated $2.5 million by illegally importing more than 1.6 million pounds of cans and bottles. On April 8, 15 suspects were arrested in Riverside and San Bernardino counties, with assistance from local law enforcement.

2. In the Phoenix area, a group collected used beverage containers from consumers and purchased some from recycling centers at a reduced rate and then transported them to a residence in Moreno Valley (Riverside County). Daily, members of this group took multiple smaller loads to the Perris Valley Recycling Center (Riverside County) to redeem the CRV refund, defrauding the CRV fund an estimated $1 million. On April 20, a search warrant resulted in the seizure of 50,000 pounds of bottles and cans, with an estimated CRV value of $100,000. Many cans contained sand to add weight. Twelve people were arrested.

3. On Interstate 8 near Winterhaven, Calif. and Yuma, Ariz. agents with the Imperial County and San Diego Major Crimes Teams were looking for a CRV fraud suspect when they encountered another suspected CRV fraud ring -- two men transporting a large quantity of aluminum cans in a truck. This observation launched a two-month investigation, with assistance from CalRecycle, which resulted in the April 23 arrests of four people, including Michael Barshak, the owner and operator of ACE Recycler, a recycling center in San Diego. Agents have initially estimated that the ring's operation, which spanned four months, transported 40,000 pounds of cans with an approximate value of $135,000.

These investigations were conducted by the Attorney General's Division of Law Enforcement/Bureau of Investigation and Intelligence (DLE-BII) Major Crimes Team and CalRecycle, with assistance from many other law enforcement agencies including the offices of the San Bernardino and Riverside County Sheriffs, the Riverside County District Attorney's Office, the California Highway Patrol, Immigration and Customs Enforcement, the United States Marshals Service and other Dept. of Justice enforcement teams.

To learn more about CalRecycle and the California Beverage Container Recycling Program, visit http://www.calrecycle.ca.gov/. CalRecycle contact: Mark Oldfield (916) 319-9942 or mark.oldfield@CalRecycle.ca.gov.

Brown Announces Seizure of 200 Pounds Of Methamphetamine and Heroin

2010-04-29T21:03:00.000-04:00

LOS ANGELES - Attorney General Edmund G. Brown Jr. today announced that state narcotics agents seized 119 pounds of ice methamphetamine and 85 pounds of heroin in two separate operations in Southern California last night.

The two drug busts by Brown's Bureau of Narcotic Enforcement also netted two pounds of cocaine and more than $33,000 in cash. Three suspects are in custody: Marco Alejo, 44, of Moreno Valley, Jorge Gonzalez, 39, of Torrance, and Sarah Magdalena Altamirano, 40, of Torrance.

"We've been fighting to keep dangerous, addictive drugs like methamphetamine and heroin off our streets," said Brown. "Last night's drug busts send another unequivocal message that California will do everything it can to arrest and lock up these callous purveyors of death and addiction."

In last night's raids, agents served a search warrant at 1507 South Palmetto Street in Ontario. During the subsequent search, agents discovered 81 pounds of methamphetamine hidden in a closet in an upstairs bedroom. Marco Alejo was seen leaving the residence and was later detained by police and placed under arrest.

A few hours later, agents placed a home at 1018 West 223rd Street in Torrance under surveillance. When Jorge Gonzalez and his wife, Sarah Magdalena Altamirano, left the home in a pick-up truck, investigators followed. Officers stopped and searched their vehicle, discovering a suitcase containing 39 cellophane-wrapped one-pound packages of brown powder heroin. Both Gonzalez and his wife Altamirano were arrested.

Investigators then searched their residence and found approximately 46 pounds of black tar heroin, 38 pounds of ice methamphetamine, 2 pounds of cocaine and more than $33,000 in cash.

Alejo, Gonzalez and Altamirano are being held on $1 million bail.

State agents were joined in the raids by the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT), Ontario Police Department, Pomona Police Department and California Highway Patrol.

Minnesota Man Sentenced to 117 Months in Prison for Running Ponzi Scheme

2010-04-27T16:21:00.000-04:00

A Rosemount, Minn., man was sentenced today to 117 months in prison for his role in running a Ponzi scheme involving commodity pools, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney B. Todd Jones for the District of Minnesota.

U.S. District Court Judge Donovan W. Frank also ordered Charles "Chuck" E. Hays, 56, to pay $21,825,090 in restitution and $7,850 in victim attorney’s fees, as well as to serve three years of supervised release following his prison term. Hays pleaded guilty before Judge Frank on April 14, 2009, in St. Paul, Minn., to one count of mail fraud, one count of wire fraud and one count of structuring transactions to avoid financial reporting requirements. Hays was arrested Feb. 5, 2009, and charged in a criminal complaint with mail fraud and wire fraud. Hays has been detained without bond in federal custody since his arrest.

Shortly after Hays’ arrest, the government seized a $3 million yacht Hays purchased with investor funds, as well as two of Hays’ bank accounts, which contain approximately $1 million in funds obtained through the fraudulent scheme. The government estimates in court documents that investors lost more than $20 million in the scheme.

According to the plea agreement, Hays admitted to devising and participating in a scheme in which he solicited individuals to invest money with him and his company, Crossfire Trading LLC, from January 2001 through February 2009. Hays told potential investors he was a day trader in stock index futures and other futures contracts. Hays also admitted that he falsely represented to potential investors that his trading was consistently profitable and earned approximately three percent per month. According to court documents, many people chose to invest money with Hays and Crossfire based on these misrepresentations.

Hays also admitted that once an individual invested money, he provided the investor with a document that outlined the purported terms of the agreement with Crossfire. Hays admitted the investment agreements misrepresented the goal and activities of Crossfire and how investor profits and losses would be handled. According to the investor agreements, Crossfire was falsely presented as a day-trading company whose primary activity was short-term trading of futures. However, instead of using investor funds to trade in the equities listed in the investor agreement, Hays admitted he diverted and converted those funds for his personal use and other unauthorized purposes.

Hays also admitted that he instructed investors to mail him a check or to wire money to Crossfire’s bank account. Hays admitted he then created and sent investors fraudulent monthly summaries purportedly showing investments and any gains clients supposedly realized.

In addition, Hays admitted that when investors asked him for details regarding his trading or investment philosophy, he misrepresented to them that Crossfire traded through an account at a registered brokerage firm in Chicago, where he said investors’ funds were maintained. To support those misrepresentations, Hays admitted he showed several investors a fraudulent statement that reflected a $37 million balance in Crossfire’s account at the registered brokerage firm, when in reality Crossfire did not have an account with the firm. According to court documents, Hays used funds received from new investors to make payments to earlier investors in order to give legitimacy to the scheme.

In a related action, the U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action against Hays and Crossfire on Feb. 5, 2009.

The case was prosecuted by Assistant Chief Robertson Park and Trial Attorney Laura Perkins of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ann Anaya for the District of Minnesota. Significant assistance was also provided by Assistant U.S. Attorney Jim Alexander for the District of Minnesota. The case was investigated by the U.S. Postal Inspection Service. The Department acknowledges the substantial assistance provided by the CFTC in connection with this investigation.

Today’s sentencing is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

For more information on the task force, visit www.StopFraud.gov

Brown Obtains Multi-Million-Dollar Settlement From Maker of Antipsychotic Drugs

2010-04-27T16:13:00.001-04:00

OAKLAND - Attorney General Edmund G. Brown Jr. today announced that California, along with other jurisdictions, has reached a $520 million settlement with AstraZeneca Pharmaceuticals LP, to settle allegations it engaged in the "dangerous practice" of promoting drugs for unapproved uses in marketing Seroquel, its blockbuster antipsychotic drug.

London-based AstraZeneca will pay states and the federal government a total of $520 million in damages and penalties. California's share is $31 million for Medi-Cal, which provides health care to the state's poor, and other state programs.

"This company engaged in an illegal, off-label marketing campaign to boost sales of Seroquel, a powerful antipsychotic drug that should be prescribed with great caution," said Brown. "This practice of promoting drugs for unapproved uses is dangerous and can have serious and unforeseen consequences."

Seroquel is an antipsychotic medication used to treat psychological disorders. From 2001 through 2006, AstraZeneca was found to have promoted the drug not only to psychiatrists, but also to primary care physicians and other healthcare professionals for unapproved uses in the treatment of medical conditions such as aggression, Alzheimer's disorder, anger management, anxiety, attention deficit hyperactivity disorder, dementia and sleeplessness.

Doctors may prescribe medications for off-label uses, but drug makers are prohibited from promoting drugs for treatment of medical conditions not approved by the Food and Drug Administration (FDA.)

In its marketing campaign, AstraZeneca was also alleged to have made illegal payments to physicians, paying their way to travel to resort locations to "advise" AstraZeneca about marketing messages for unapproved uses, to serve as authors of articles written by AstraZeneca and its agents, and to conduct studies for unapproved uses of Seroquel.

The settlement resolves claims that, as a result of these promotional activities, AstraZeneca encouraged physicians to prescribe Seroquel for children, adolescents and dementia patients in long-term care facilities for uses not medically accepted or FDA-approved. Among other side effects, the drugs have been shown to cause significant weight gain in children. The company also failed to adequately disclose studies that show Seroquel increases the risk of diabetes.

As part of the settlement, AstraZeneca will enter into a Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of the Inspector General, which will closely monitor the company's marketing and sales practices.

This settlement is based on qui tam cases, or whistle-blower lawsuits, that were filed in the United States District Court for the Eastern District of Pennsylvania.

"DHCS works closely with the California Department of Justice and federal authorities to identify and recover improper payments caused by these unlawful practices. The funds recovered in this action will be put back into the Medi-Cal program to serve the medically needy citizens of this state," said DHCS Director David Maxwell-Jolly.

A National Association of Medicaid Fraud Control Units team, including members from California and other states, participated in the investigation and entered into the settlement negotiations with AstraZeneca on behalf of the states.

Indian National Sentenced to 81 Months in Prison for Role in International Online Brokerage “Hack, Pump and Dump” Scheme

2010-04-26T23:52:00.001-04:00

An Indian national was sentenced today to 81 months in prison on conspiracy and aggravated identity theft charges arising from an international fraud scheme to "hack" into online brokerage accounts in the United States and use those accounts to manipulate stock prices, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Deborah Gilg of the District of Nebraska.

Jaisankar Marimuthu, 36, a native of Chennai, India, was also ordered to pay $2.4 million in restitution. Marimuthu pleaded guilty on Feb. 5, 2010, to one count of conspiracy to commit wire fraud, securities fraud, computer fraud and aggravated identity theft, and to one count of aggravated identity theft before U.S. District Magistrate Judge F.A. Gossett III in Omaha, Neb. Marimuthu, who was extradited to the United States following his arrest in Hong Kong, was sentenced today before U.S. District Judge Laurie Smith Camp.

According to court documents, Marimuthu was part of a conspiracy that operated out of Thailand and India from February 2006 through December 2006 in which the prices of thinly-traded securities were fraudulently inflated by hacking into brokerage accounts in the United States and then illegally using the accounts to make large, unauthorized purchases of securities in the name of the unsuspecting customers. Marimuthu admitted that after the price of the securities had been artificially increased or "pumped up" through the bogus trading, the conspirators’ own holdings of the securities would be sold at a profit. More than 90 customers and seven brokerage firms in the United States have been identified as victims. Financial losses of close to $2.5 million were sustained by the victims in this case.

Co-defendant Thirugnanam Ramanathan, 37, pleaded guilty on June 2, 2008, to one count of conspiracy to commit wire fraud, securities fraud, computer fraud and aggravated identity theft. Following his arrest in Hong Kong, Ramanathan was extradited on May 25, 2007, to the United States. Ramanathan was sentenced to two years in prison by Judge Camp, and has since been returned to India following completion of his sentence. Co-defendant Chockalingham Ramanathan, 36, was charged with one count of conspiracy, eight counts of computer fraud, six counts of wire fraud, two counts of securities fraud and six counts of aggravated identity theft. Chockalingham Ramanathan remains at large.

This case was prosecuted by Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section; Trial Attorneys Jack Patrick and Ryan Faulconer of the Criminal Division’s Fraud Section; and Assistant U.S. Attorney Michael Norris of the District of Nebraska. This case was investigated by the FBI in Omaha.

Dr. Toe Myint Was Sentenced to 72 Months in Prison for Medicare Fraud Scheme

2010-04-26T23:48:00.001-04:00

Dr. Toe Myint was sentenced today in Detroit to 72 months in prison for participating in a conspiracy to defraud the Medicare program, announced the Departments of Justice and Health and Human Services (HHS). A patient recruiter was also sentenced today in Detroit to 40 months in prison for his role in the conspiracy.

U.S. District Court Chief Judge Gerald E. Rosen ordered Myint, of Bloomfield Hills, Mich., to pay more than $3.1 million in restitution, jointly with co-defendants, and to serve two years of supervised release following his prison term. Chief Judge Rosen also ordered Terrence Hicks, a Jackson, Mich., resident and patient recruiter, to pay more than $4.9 million in restitution, jointly with co-defendants, and to serve three years of supervised release following his prison term.

Myint, 56, was convicted by a Detroit jury on Jan. 22, 2010, of one count of conspiracy to commit health care fraud, following a week-long trial. In the last three months, three Michigan-area doctors have been convicted at trial of separate health care fraud offenses as part of the Medicare Fraud Strike Force operations in Detroit. Hicks, 43, pleaded guilty to one count of conspiracy to commit health care fraud on Dec. 18, 2009.

Between approximately October 2006 and March 2007, Myint, Hicks and their co-conspirators caused more than $4.2 million in false and fraudulent claims to be submitted to the Medicare program for services supposedly provided by Myint at Sacred Hope Center Inc., a purported infusion clinic. Medicare actually paid more than $3.1 million of those claims. Hicks also worked at a second, related infusion clinic, called Xpress Center, Inc., which billed an additional $2.3 million in false and fraudulent claims to Medicare.

Evidence presented during Myint’s trial established that beginning in approximately October 2006 and continuing until March 2007, Myint routinely prescribed medications for patients at Sacred Hope that they did not need, and that in many cases, were never provided to the patients at all. In fact, the clinic existed for the purpose of causing fictitious claims for injection and infusion therapy services to be billed to Medicare. Myint was the only doctor who worked at Sacred Hope, and the owners of the clinic asked him to prescribe particular drugs to patients because they believed that Medicare would reimburse the medications at a high rate. Evidence at trial showed that Myint agreed to prescribe the medications even though he knew the patients did not need them.

According to court documents and evidence presented at trial, Medicare beneficiaries were not referred to Sacred Hope or Xpress Center by their primary care physicians, or for any other legitimate medical purpose, but were recruited by Hicks to come to the clinics in exchange for the payment of cash kickbacks. Hicks recruited the beneficiaries in downtown Detroit and drove them to the suburbs of Southfield and Livonia, Mich., where the clinics were located. Trial evidence showed that in exchange for the cash kickbacks Hicks paid them, the Medicare beneficiaries visited the clinics and signed documents indicating that they had received the services billed to Medicare.

To date, eleven defendants have pleaded guilty or have been convicted at trial for their roles in the two fraudulent clinics. Daisy Martinez, an owner of Sacred Hope and Xpress Center, was sentenced in March 2010 to 96 months in prison.

Today’s sentencings were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.

These cases were prosecuted by Assistant Chief John Neal and Trial Attorney Benjamin D. Singer of the Criminal Division’s Fraud Section. The FBI and HHS Office of Inspector General (HHS-OIG) conducted the investigation. The case 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 the inception of Medicare Fraud Strike Force operations in March 2007, Strike Force operations in seven districts have obtained indictments of more than 560 individuals who collectively have falsely billed the Medicare program for approximately $1.2 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Brown Lends Hand In Mexico's Transformation of Its Legal System

2010-04-20T20:30:00.000-04:00

SAN DIEGO - Attorney General Edmund G. Brown Jr. announced today that members of his office are working with law enforcement officials from Baja California as part of sweeping changes the Mexican government is making to its legal system.

"We will help our southern neighbor become more transparent and open," Brown said.

Starting today, 80 prosecutors and agents from the Mexican state of Baja California will attend two days of classes at the Law Enforcement Coordination Center in El Centro (Imperial County). Agents with the California Attorney General's Office, joined by officials from the Imperial County District Attorney's Office, as well as from the Imperial County Sheriff's Department, will teach sessions on topics such as case preparation and the handling of evidence.

The centuries-old Mexican legal system, which stems from the Napoleonic era, involves closed hearings, written inquisitions and a presumption of guilt. In 2008, the Mexican government approved a constitutional amendment to replace much of its system to make it more like the legal system of the United States. The transformation, which will alter both how evidence is collected and how trials are conducted, is expected to be complete by 2016.

Rommel Moreno, the Attorney General of Baja California, asked Attorney General Brown for assistance as Baja California joins 30 other Mexican states to change its system. The U.S. federal government, along with law enforcement agencies around the country, is also assisting Mexico with the transition.

"After these changes are complete, Mexico's legal system will be more transparent and open, which will improve the strength of the country's democracy," said Brown. "We will help our southern neighbor in this transition."

This week's training of Baja California officials is being coordinated by the Attorney General's foreign prosecution and law enforcement unit, a part of the Division of Law Enforcement's Bureau of Investigation and Intelligence. The unit works with Mexican officials in apprehending suspects in the United States who are wanted for crimes in Mexico, as well as enlisting the help of Mexican officials in solving crimes in California.

In December 2009, the unit assisted Mexican officials in apprehending and extraditing Sandra Cruz Villa, who was living in Lake County and was suspected of a triple murder. She awaits trial in Mexico. For more information about the unit, please see http://ag.ca.gov/cbi/foreign.php.

Attorney General Seeks More Details About Student Loan Data Breach Involving 3.3 Million

2010-04-20T20:27:00.000-04:00

Attorney General Richard Blumenthal today announced that he is seeking more details about a data breach at Educational Credit Management Corporation (ECMC) that may have exposed personal information on 3.3 million federal student loan borrowers, including hundreds of thousands from Connecticut.

Minnesota law enforcement officials announced that they have recovered the stolen data and arrested a suspect in the data theft case, but Blumenthal said questions remain about the extent of the breach, how it happened and whether the personal data was illegally shared or distributed before it was recovered.

Blumenthal has sent ECMC a second letter this week seeking additional information by the end of this week, including a detailed explanation to support the company’s public claims that it does not believe the stolen information has been compromised.
“Millions of students -- including many in Connecticut -- are still in doubt that their identities and finances are secure,” Blumenthal said. “This data recovery and arrest are good news -- but personal financial information may have already been leaked or looted.

“My office wants to know what caused this massive breach, how information will be protected going forward -- and assurances that 3.3 million federal student loan borrowers will be fully protected from financial abuse.” Blumenthal’s questions include:

· How many DVDs were stored in each of the stolen safes

· Was the stolen information encrypted?

· Does ECMC have an encryption policy and -- if so -- what is it?

· If the files stolen were unencrypted, then why?

· How long does ECMC retain files containing personally identifiable information and for what purpose?

· Explain and provide support for ECMC’s representation on its website that “it does not appear that the personally identifiable information on ECMC’s 3.3 million federal student loan borrowers has been compromised.”

Former Hoboken Mayor Admits Extorting Cash Contributions in Return for Official Influence

2010-04-20T19:46:00.000-04:00

NEWARK—Peter J. Cammarano, III, former mayor of the City of Hoboken, New Jersey, pleaded guilty today and admitted accepting $25,000 in illicit cash contributions in exchange for exercising his future official influence and authority, U.S. Attorney Paul J. Fishman announced.

Cammarano, 32, of Hoboken, appeared before U.S. District Judge Jose L. Linares and pleaded guilty to a one-count criminal information charging him with conspiracy to commit extortion under color of official right. Judge Linares continued Cammarano’s release on a $100,000 bond pending sentencing, which is scheduled for Aug. 3, 2010.

At his plea hearing, Cammarano admitted that, while he was an at-large councilman for the City of Hoboken and candidate for the position of mayor, he accepted three illicit cash campaign contributions totaling $15,000 from a cooperating witness (CW), who purported to be a real estate developer. Cammarano further admitted that on July 16, 2009, after he had been elected and sworn in as mayor, he accepted an additional $10,000 illicit cash campaign contribution from the CW.

Cammarano admitted that all of the $25,000 in cash payments were in exchange for his future official assistance, action, and influence in Hoboken government matters pertaining to the CW’s anticipated real estate development projects. Cammarano further admitted that all of the illicit cash he accepted from the CW was paid through Michael Schaffer, Edward Cheatam, and an individual referred to in the information as the “Consultant.”

U.S. Attorney Fishman stated: “Today, Peter Cammarano admitted that he sold his influence as Hoboken’s mayor before and after he was elected and took office. Every time public officials make that choice, they betray not only their constituents, but all of their colleagues who serve selflessly.”

“This case serves as an unfortunate example of how pervasive public corruption can be considering the fact that someone so young in his political career can succumb to such enticements,” said Michael B. Ward, special agent in charge of the FBI’s Newark Division. “The public should expect its officials to be held to the highest levels of integrity and anything less will be vigorously pursued and investigated.”

Today’s guilty plea stems from a two-track undercover FBI investigation into public corruption and money laundering which resulted in the charging of 44 individuals via criminal complaints on July 23, 2009. The charge to which Cammarano pleaded guilty carries a maximum statutory penalty of 20 years in prison and a $250,000 fine. As part of Cammarano’s guilty plea, he agreed to forfeit the $25,000 in illicit cash contributions that he accepted.

Cheatam pleaded guilty before Judge Linares on Sept. 18, 2009, to conspiracy to commit extortion under color of official right, and awaits sentencing. The case against Schaffer is pending.

In determining an actual sentence, Judge Linares will consult the advisory U.S. Sentencing Guidelines, which recommend sentencing ranges that take into account the severity and characteristics of the offense, the defendant’s criminal history, if any, and other factors, including acceptance of responsibility. The judge, however, has discretion and is not bound by those guidelines in determining a sentence. Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all of that time.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, and special agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent in Charge William P. Offord, for the investigation leading to today’s guilty plea.

The case against Cammarano is being handled by Assistant U.S. Attorney Brian R. Howe, Deputy Chief, and Assistant U.S. Attorney Bradley A. Harsch, both of the U.S. Attorney’s Office’s Special Prosecutions Division.

The charges and allegations contained in the complaint against Schaffer are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Division on Civil Rights Announces Settlement in Discrimination Case Involving Bank of New York Mellon, Ex-Employee

2010-04-19T13:56:00.001-04:00

TRENTON – Division on Civil Rights Director Chinh Q. Le announced today that the Bank of New York Mellon has agreed to pay a former employee a total of $188,037 to resolve allegations the worker was harassed on the job at a bank office in Hudson County because of his race and sexual orientation, then discharged after he complained about a hostile work environment.

In addition to agreeing to pay former mail operations employee Paul Nathan to resolve his complaint, the Bank of New York Mellon also has agreed to pay the Division on Civil Rights $5,000. The Division earlier had joined in Nathan’s discrimination complaint. Under terms of the settlement, the Bank of New York Mellon makes no admission of wrongdoing.

“This is an important outcome for the Respondent and for employees throughout New Jersey. Hopefully, it will remind employers that every worker has a right to be treated with respect, and to do his or her job in a harassment-free environment,” said Director Le. “Our commitment is to ensure that employers keep harassment out of the work place, and that employees who come forward with allegations of discrimination are not subject to reprisal.”

Nathan, of Flushing Meadow, N.Y., was employed with a securities and asset management company owned by the Bank of New York in Hudson County when he filed his original discrimination complaint in late 2006. He subsequently amended the complaint to include retaliation after his employer fired him. (The Bank of New York later merged with Mellon Financial Corp. and became the Bank of New York Mellon.)

An employee of the company’s Enclosing Mail Operations department, Nathan charged in his original complaint that he and another African-American worker were routinely assigned to the largest, most difficult and burdensome equipment in the so-called “green room” without assistance in lifting heavy materials. The green room was where the company’s master mailer machines were located.

Nathan’s complaint charged that non-African-American workers were not regularly assigned to such green room duty and, if they were, received help in dealing with the heavy lifting. A Finding of Probable Cause issued by the Division on Civil Rights reported that a half-dozen other Bank of New York Mellon employees interviewed by State investigators corroborated Nathan’s account of disparate treatment. Two witnesses corroborated Nathan’s claim that the green room was also referred to as “the plantation.”

Nathan also told investigators he was targeted for acts of harassment by co-workers because of his acknowledged homosexuality. Among other things, Nathan charged that he’d been called names and subjected to derogatory comments about his sexual orientation, as well as at least one racially and sexually offensive photograph and caption, and a threat that he would be sodomized with a stick. Although the Bank of New York Mellon acknowledged placing Corrective Action Notices in the personnel files of two management employees implicated by Nathan, the employees denied Nathan’s allegations. The bank also denied firing Nathan as a retaliatory move.

The matter was resolved through the Division’s conciliation process. Under terms of the settlement, the Bank of New York Mellon has agreed to pay Nathan as follows: $38,224.19 for back pay; $7,550.48 that would have been contributed to Nathan’s medical, dental and other benefits; $7,912.32 that would have been contributed to his retirement plan; $31,550.48 for humiliation, mental pain and suffering; $70,000 for bodily injury claims and $25,000 for legal fees. The bank also has agreed to pay for therapy sessions for Nathan with a licensed psychologist, psychiatrist or psychotherapist up to a maximum amount of $150 per hourly session and a maximum frequency of once per week for a maximum period of 52 weeks.

In addition, the bank has agreed to expunge from all records any indication that Nathan was discharged, and to put in place effective anti-discrimination and anti-harassment policies and procedures. Those policies and procedures are to include clearly articulated information about what kind of conduct is prohibited, and a clearly defined complaint process for employees to use in reporting discrimination and harassment.

The Nathan/Bank of New York Mellon matter was investigated by Division on Civil Rights Investigator Elbia Concepcion and supervised by Atley Tyler of the Division’s Trenton office. The conciliation was conducted by Ana Limo-Magras.

Attorney General, Banking Sue Westport National Bank, Wilton Investment Manager Seeking $16.2 Million For Defrauded Madoff Investors

2010-04-19T13:51:00.001-04:00

Attorney General Richard Blumenthal today sued Westport National Bank, a Wilton money manager and his company seeking to recover $16.2 million for investors in Bernie Madoff’s Ponzi scheme.

The lawsuit, filed in cooperation with Department of Banking Commissioner Howard F. Pitkin, charges the bank, Robert L. Silverman and his company PSCC, Inc. with multiple violations of state banking laws. The action alleges that they:

· Ignored repeated and obvious indications of fraud;

· Failed to fulfill their duty to verify Madoff’s claimed investments;

· Miscalculated fees, resulting in millions of dollars in overcharges;

· Provided no written information on fund risks and strategies;

· Acted as investment advisors without the necessary state license.

In addition, Westport National Bank allegedly collected $2.4 million in fees between 2000 and 2007 for performing various duties as custodian of its clients’ funds, but actually did little, handing over most responsibilities to Silverman and his company. The bank even provided Silverman with its blank stationary for communications with clients. Silverman’s firm earned a separate $13.8 million in fees, so much that Madoff himself complained, causing them to be lowered.

Blumenthal is seeking all $16.2 million in fees paid to the defendants as restitution for investors wiped out when Madoff’s Ponzi scheme collapsed. “The bank and Mr. Silverman effectively aided and abetted Madoff’s massive fraud, ignoring clear and compelling signals that his investments were bogus,” Blumenthal said. “Screaming signs and sirens shouting fraud -- the same securities bought and sold on the same day, the same bonds with different maturity dates -- were repeatedly and reprehensibly disregarded. “These investors were betrayed twice, first by Madoff and then by their advisors who charged them millions and then hurled them into the abyss. Not only did they mislead investors, but miscalculated fees to enrich themselves.

Silverman’s fees were so high even Madoff complained. These defendants deceived their clients and shirked their duties, anything to keep the gravy train running -- until it ran down their clients. “The misdeeds in this case are staggering, revealing monumental moral rot and malfeasance. Westport National Bank charged consumers $2.4 million for turning over its supervisory duties to Mr. Silverman and his company. They even provided him with bank stationary, streamlining the lie that the bank was looking after its clients’ interests.

“I will fight to recover every penny -- $16.2 million -- for restitution to investors. They must make their former clients whole to the greatest extent possible, which is why we seek return of all $16.2 million in fees. In addition to restitution, my office will seek harsh penalties -- monetary fines, court orders and other actions -- to deter future fraud.”

Silverman and his company started doing business with Bernard L. Madoff Investment Securities in the late 1980s. In 1999, he hired a new custodian for his Madoff accounts, Westport National Bank in Westport. Silverman and the bank set up two investment funds to funnel money into Madoff’s scheme, one for general investing and the other for IRAs. Blumenthal said that as custodian, Westport National Bank was supposed to handle billing, do administrative work and take legal possession of securities and other investments, verifying their purchase on behalf of investors. The bank, however, conducted none of these activities, handing them over instead to Silverman and his company. Neither Silverman nor Westport National Bank ever properly verified that Madoff made investments he claimed. They also ignored discrepancies that indicated fraud. For example:

· Madoff would send the bank and Silverman notice of a stock purchase, but a statement issued about the same time would list the transaction as a sale, or vice versa;

· Madoff’s funds would provide notice of a U.S. Treasury Bill purchase listing a maturity date, but the same bond would have a different maturity date on the statement issued about the same time.

In addition to restitution, Blumenthal is seeking a $100,000 fine for each violation of state banking laws and the state’s legal costs. Blumenthal said that 240 consumers -- of whom 97 live in Connecticut -- invested in the two Westport National Bank Madoff funds. He estimated that consumers originally invested about $10 million. Because some investors withdrew money before the funds collapsed, possibly earning a profit, any restitution may be pro-rated, he said.

Blumenthal thanked Assistant Attorney General Patrick Ring and Assistant Attorney General Matthew Budzik, chief of the Attorney General's Finance Division, and for their hard work on the case.

Brown Announces Convictions of 31 Mexican Mafia Gang Members in Extortion and Drug Trafficking Cell

2010-03-25T23:06:00.001-04:00

El Centro, Calif.-In a "fatal blow" to one of the most extensive, organized and violent extortion and drug trafficking operations in Imperial County history, Attorney General Edmund G. Brown Jr. today announced the successful prosecution of all 31 members of a Mexican Mafia cell.

Early this week, the leader of the cell, Patrick Ralph Ponce, 44, of Imperial County, pleaded guilty to drug, weapon, kidnapping and extortion charges, making him the last of 31 gang members to plead guilty to charges brought by Brown's office. The final conviction concludes "Operation Gangland," which began in 2005 and ultimately shut down a major Mexican Mafia cell spread across Imperial and San Diego Counties.

"This Mexican Mafia cell was one of the most violent extortion and drug trafficking rings California's border region has ever seen," Brown said. "With the convictions of all 31 gang members, we've dealt a fatal blow to their criminal enterprise and they will spend a long, long time in prison."

Originally indicted in August 2007, the gang members have collectively been sentenced to more than 200 years in prison.

In 2005, officials from the California Attorney General's Office, California Department of Corrections and Rehabilitation, U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Imperial County District Attorney's Office formed the Organized Crime Drug Enforcement Task Force to investigate the Mexican Mafia's criminal activities.

The investigation uncovered a widespread drug smuggling and extortion operation directed by Mexican Mafia cell leader Patrick Ponce. The cell used "tax collectors" in El Centro, Calexico, Brawley, Heber, Holtville, Calipatria, and Niland to extort funds from anyone engaged in illegal activity, such as drug sales or immigrant smuggling. Those who refused or failed to pay were attacked by Ponce's enforcers. The "taxes" would be split between the gang member who collected them, Ponce and other gang leaders.

Additionally, Ponce ran a heroin and methamphetamine trafficking operation, distributing and selling narcotics throughout the region. Ponce ordered gang members with outstanding warrants to surrender themselves to officers so that illegal contraband hidden on these individuals could be smuggled into the Imperial County Jail. Gang members attacked anyone who failed to carry out orders.

Over the course of the investigation, agents captured Ponce on wiretaps ordering assaults, setting extortion rates and arranging drug sales.

Following the investigation, Brown's office assisted Imperial County District Attorney Gilbert G. Otero in preparing the case against the gang. In August 2007, the case was presented to the San Diego County criminal grand jury, which returned a 46-count indictment against 31 members of the cell. Over the past two and a half years, Brown's office has successfully prosecuted all 31 gang members, including:

- Patrick Ralph Ponce ("Pato"), 44, of Imperial County, who pleaded guilty to kidnapping; two counts of extortion; selling methamphetamine; and supplying a firearm to a felon and is expected to be sentenced to 22 years in state prison;
- Marc Anthony Villasenor ("Joker"), 31, of Imperial County, who pleaded guilty to assault likely to cause great bodily injury; selling heroin; and assault with a deadly weapon and was sentenced to 20 years, 8 months in state prison;
- Raul Antonio Cruz, Jr. ("Jr."), 33, of Imperial County, who pleaded guilty to assault with a firearm; three counts of extortion; and three counts of supplying a firearm to a felon and was sentenced to 16 years in state prison;
- Ezequiel Ernesto Rodriguez ("Neto"), 39, of Imperial County, who pleaded guilty to extortion and admitted carrying a firearm during a gang crime and was sentenced to 15 years in state prison;
- Victorianao Ortiz ("Cyco"), 30, of Imperial County, who pleaded guilty to assault with a deadly weapon and was sentenced to 14 years in state prison;
- Raul Vega Mejia ("Pollo"), 37, of Imperial County, who pleaded guilty to two counts of attempted extortion; two counts of extortion; carrying a concealed firearm in a vehicle; and being a felon in possession of a firearm and was sentenced to 13 years in state prison;
- Gabriel Anthony Valles ("Guero"), 47, of Imperial County, who pleaded guilty to assault with a deadly weapon and admitted carrying a firearm during a gang crime and was sentenced to 9 years in state prison;
- Marco Araujo, 54, of Imperial County, who pleaded guilty to conspiracy to sell heroin and three counts of selling heroin and was sentenced to 9 years in state prison;
- Juan Antonio Hornback ("Duke"), 31, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 9 years in state prison;
- Jose Manuel Zepeda, 31, of Imperial County, who pleaded guilty to conspiracy to commit extortion and extortion and was sentenced to 9 years in state prison;
- Victor Ruby ("Outlaw"), 38, of Imperial County, who pleaded guilty to assault likely to cause great bodily injury and was sentenced to 8 years in state prison;
- David Paez Martinez ("Deebo"), 32, of Imperial County, who pleaded guilty to extortion; two counts of attempted extortion; assault with a firearm; and felon in possession of a firearm and was sentenced to 7 years in state prison;
- Luis Hector Munoz ("Clepto"), 30, of Imperial County, who pleaded guilty to conspiracy to commit extortion and extortion and was sentenced to 7 years in state prison;
- Gerardo Robles ("Gerry"), 29, of Imperial County, who pleaded guilty to conspiracy to sell heroin and selling heroin and was sentenced to 7 years in state prison;
- Jose Espinoza ("Chuck"), 26, of Imperial County, who pleaded guilty to extortion; receiving stolen property and possession of an assault weapon and was sentenced to 6 years, 4 months in state prison;
- Jaime Alejandro Perez ("Beef"), 26, of Imperial County, who pleaded guilty to attempted extortion and is expected to be sentenced to 6 years in state prison;
- Jorge Cuevas Mendoza ("Twinx"), 25, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 5 years in state prison;
- Antonio Padilla ("Kasper"), 34, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 4 years in state prison;
- Refugio Castellanos Servin, 43, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 4 years in state prison;
- Manuel Estrada Solarez ("Chile"), 54, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 4 years in state prison;
- Juan Cordero ("Pollo"), 31, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
- Max Ponce, Jr. ("Mad Max"), 53, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
- Anthony Edward Favela ("Shadow"), 37, of San Diego County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
- Judy Ann Huerta, 29, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
- Brian Mark Smith ("Dusty"), 34, of San Diego County, who pleaded guilty to supplying a firearm to a felon and was sentenced to 2 years in state prison;
- Joe Alberto Tamayo ("Drak"), 36, of Imperial County, who pleaded guilty to extortion and was sentenced to 2 years in state prison;
- Rudy Raymond Ferrel, Jr., 36, of Imperial County, who pleaded guilty to perjury and was sentenced to 2 years in state prison;
- Armando Salvador Leon ("Fooskie"), 49, of Imperial County, who pleaded guilty to conspiracy to commit extortion and was sentenced to formal probation, 435 days jail;
- Eden Macias Portugal, 34, of Imperial County, who pleaded guilty to possession of heroin and was sentenced to summary probation, 355 days jail;
- Maricela Smith, 48, of San Diego County, who pleaded guilty to possession of methamphetamine and was sentenced to formal probation, 234 days jail; and
- Ruby Flores Mendez, 35, of San Diego County, who pleaded guilty to conspiracy to sell methamphetamine and is expected to be sentenced to formal probation.

Over the course of the investigation, agents also seized a large number of firearms, heroin and methamphetamine.

"I want to give special thanks to the members of Attorney General Brown's San Diego office for all the hard work and effort expended to bring this case to a successful conclusion," said Imperial County District Attorney Gilbert G. Otero. "This is just another example of what can be accomplished when federal, state and local law enforcement officers work together for the common good of the citizens of California."

"With these guilty pleas, all agencies involved in this investigation have dealt a significant blow to the leadership of this criminal organization," said DEA Assistant Special Agent in Charge at the Imperial County Office Timothy A. Jennings. "This should send a clear message to the drug traffickers that the DEA and our outstanding law enforcement partners will not tolerate drug trafficking and the related criminal activities in our community. I think that these arrests make the community a little bit safer for the citizens of Imperial County".

Other law enforcement agencies that assisted with the investigation included the El Centro Police Department, Imperial County Sheriff's Office, Calexico Police Department, Brawley Police Department, Holtville Police Department, U.S. Immigration and Customs Enforcement, U.S. Border Patrol, Imperial County Narcotic Task Force, and the Federal Bureau of Investigation.

Ohio Attorney Charged with Tax Fraud, Obstruction of Justice for Scheme to Hide Income and Assets Through Trusts and in Foreign Bank Account

2009-12-23T08:26:00.000-05:00

Second Ohio Attorney Agrees to Plead Guilty to Making False Statement

WASHINGTON - Aristotle R. Matsa, an attorney in Columbus, Ohio, was charged with tax offenses, obstruction of justice and additional charges in a 20-count indictment unsealed today, the Justice Department and Internal Revenue Service (IRS) announced. Additionally, George Z. Pappas, an attorney in Urbana, Ohio, was charged in a one-count information with making a false statement. According to a plea agreement filed in conjunction with the information, Pappas has agreed to plead guilty to the false statement charge.

The indictment, which was returned on Dec. 21, 2009, was unsealed upon Matsa’s arrest. Matsa was charged with fifteen counts of aiding and assisting in the preparation of false and fraudulent tax returns that related to five different trusts; one count of willfully failing to file a report of foreign bank and financial accounts; one count of conspiracy to commit obstruction of justice; one count of witness tampering; one count of submitting a false statement; and one count of obstruction of justice.

According to the indictment, Matsa, who is an attorney, real estate broker, architect and licensed minister in Ohio, created and operated several nominee entities in order to disguise his assets and income. Specifically, Matsa caused the preparation and filing of 15 fraudulent trust tax returns, Forms 1041, with the IRS. The trust returns represent filings for at least five separate trust entities during the tax years 2003 to 2005. Each of the trusts reported receiving significant amounts of interest income each year; however, no income tax was reported as due as a result of fraudulently claimed deductions for distributions purportedly paid to a foreign beneficiary each year. The indictment alleges that Matsa used funds from these trusts to purchase a 150-acre farm in Hocking County, Ohio, as well as a single-family residence in Worthington, Ohio, both of which he used as his personal residences.

According to the indictment, Matsa violated the foreign bank account reporting requirements by failing to disclose his ownership and control over a foreign bank account held in the Netherlands during calendar year 2003, where an account was maintained by Matsa with funds in excess of $10,000 from at least August 2003 to November 2003.

According to the indictment, after learning of the grand jury investigation into his business activities in May 2006, Matsa and others conspired to obstruct justice by misleading and concealing evidence from the grand jury, making false statements to the grand jury, creating false documents, tampering with a witness and lying to federal investigators.

According to his plea agreement, Pappas admitted that he made false statements to federal agents during his grand jury testimony and in a letter to the Justice Department about the ownership of a law firm doing business in the Short North area. According to the indictment from 1987 until 2004, the law firm was known as The Law Offices of Aristotle R. Matsa, when the name was changed to The Law Offices of George Z. Pappas.

An indictment is merely a formal charge by the grand jury. Each defendant is presumed innocent unless and until proven guilty in U.S. District Court. If convicted, Matsa faces a maximum sentence of 90 years in prison, a fine of $5 million, and 5 years of supervised release.

Judge Sargus has not yet scheduled a change of plea hearing for Pappas. Pappas faces a maximum sentence of 5 years in prison, a $250,000 fine, and 3 years of supervised release.

The case is being prosecuted by Justice Department Tax Division trial attorneys Richard M. Rolwing and Jorge Almonte. The case was investigated by the IRS, Criminal Investigation Division.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax/. Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation Web site at http://www.irs.gov/compliance/enforcement/index.html.

Medicare Fraud Strike Force Operations in Houston Lead to Charges Against Six Area Residents

2009-10-21T19:10:00.001-04:00

Medicare fraud charges have been filed against six individuals in the continuing operation of the Medicare Fraud Strike Force in Houston.

In an indictment unsealed today, Bassey Monday Idiong, 30, owner of B.I. Medical Supply LLC, Linda Eteimo Ere Kendabie, 27, an administrative assistant at B.I. Medical, and Modupe Babanumi, 42, a patient recruiter for B.I. Medical, all of whom reside in the Houston area, were each charged with participating in a scheme to submit claims to Medicare for medically unnecessary durable medical equipment (DME). In many instances , the DME was not given to the purported patients. This equipment included so-called "arthritis kits," which consist of sets of orthotic braces that are purportedly used for the treatment of arthritis-related conditions.

The indictment alleges that the defendants caused to be submitted to Medicare more than $840,000 in false and fraudulent claims for the kits at a billing cost of approximately $4,000 per kit. The indictment alleges that in one instance, B.I. Medical billed a kit to Medicare that included two knee braces for a Medicare beneficiary who had only one leg.

Charges were also unsealed yesterday against Ana Quinteros, 28, and Michelle Turner, 42, both of Houston, who were each charged in a superseding indictment with one count of conspiring to defraud Medicare for their participation in a scheme to submit false and fraudulent claims, also for arthritis kits. Four individuals charged in the original indictment of July 2009, Clifford Ubani, Princewill Njoku, Mary Ellis and Rolondae Mitchell-Straughter, were also charged with various healthcare frauds in the superseding indictment. The scheme resulted in approximately $1.1 million in billings to the Medicare program.

And, Charles L. Roberts, 57, of Houston, was arrested on Oct. 2, 2009, on a complaint in connection with his role as a recruiter for KO Medical, a DME company owned and operated by Kate and Oliver Nkuku. Charges against Kate and Oliver Nkuku were announced previously. The complaint charges Roberts, aka "Chucky Roberts," with conspiracy to commit health care fraud and alleges that he provided Medicare beneficiary information to KO Medical so false and fraudulent claims for power wheelchairs and other DME could be submitted to Medicare.

The complaint also alleges that KO Medical billed Medicare for power wheelchairs under special codes indicating that a new piece of DME was being provided as a replacement for a similar piece of DME that was lost, damaged or destroyed during a natural disaster, such as a hurricane. Use of this modifier when a bill is submitted to Medicare allows DME to be billed without a physician’s prescription, because it is merely intended to replace a destroyed item that Medicare presumes was initially obtained with a proper prescription. The complaint alleges that in fact none of the beneficiaries involved actually had a power wheelchair that was lost or damaged. The complaint alleges that Oliver Nkuku paid Roberts a kickback of $400 each time Medicare paid for a power wheelchair for a beneficiary referred by Roberts.

The cases are being prosecuted by attorneys from the Criminal Division’s Fraud Section, including Assistant Chief John S. (Jay) Darden, Trial Attorneys Charles Reed and Katherine Houston, and Special Trial Attorney Anthony Burba.

An indictment or a complaint is merely an allegation, and defendants are presumed innocent until and unless proven guilty.

The Strike Force in Houston is the fourth phase of a targeted criminal, civil and administrative effort against individuals and health care companies that fraudulently bill the Medicare program.

Since inception in March 2007, Strike Force operations in four districts have resulted in indictments of 331 individuals who collectively have falsely billed the Medicare program for more than $720 million. In addition, HHS’ Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud .gov

EEOC TO HOLD LISTENING SESSION OCT. 26 IN OAKLAND TO ADVANCE HIRING OF WORKERS WITH DISABILITIES

2009-10-20T17:26:00.000-04:00

SAN FRANCISCO – Top officials of the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Justice, Office of Civil Rights (DOJ), will jointly hold a town hall listening session to draw public input on new federal regulations and procedures to promote the hiring of people with disabilities. The forum, the first of four in major cities nationwide, will run from 9 a.m. to 4 p.m. on Monday, Oct. 26 at the Greater Bay Area Regional Office, 1111 Broadway, 7th floor, Oakland, Calif.

The EEOC-DOJ listening sessions are part of a series of national initiatives by the Obama Administration to ensure fair and equal access to employment for all Americans, particularly the 54 million people in this country living with disabilities. The sessions provide direct input from the business/employer communities as well as the disability and disability advocacy community on proposed regulations in the recently enacted Americans with Disabilities Amendments Act.

"The EEOC continues pressing to empower individuals with disabilities to participate to the fullest extent possible in the American workplace," said Acting EEOC Chairman Stuart J. Ishimaru. "We're pleased to hold listening sessions around the country in conjunction with the Department of Justice and to play a lead role in the Administration's initiative."

Acting EEOC Vice Chair Christine M. Griffin said, “For too long, Americans with disabilities have been pushed to the rear of the hiring line. The EEOC-DOJ town hall listening sessions, in concert with other Administration measures, should position workers with disabilities for a fair chance at a federal job.”

Commissioner Constance Barker said, "I strongly support the Town Hall concept and hope this will be the beginning of similar initiatives by the EEOC to increase transparency and opportunities for public input."

Acting Chairman Ishimaru, Acting Vice Chair Griffin and Commissioner Barker will preside at the Oakland forum, along with DOJ’s Deputy Assistant Attorney General for Civil Rights, Samuel Bagenstos, Counsel to the Assistant Attorney General for Civil Rights, Mazen Baswari, and Chief of the Disability Rights Section of the Civil Rights Division, John Wodatch.

Five-minute time slots to address the panel will be available from 9 a.m. to 4 p.m., some on an advance registration basis and some on first-come, first-served sign up basis at the event. Members of the public are also invited to attend and view the proceedings, with space available on a first-come, first-served basis. Those wishing to register as a speaker should contact Linda Li at 415-625-5618 (TTY 415-625-5610) or Linda.Li@eeoc.gov. Speakers are also invited to submit written statements, either at the event or on-line at www.regulations.gov. Sign Language Interpreters, CART, and assistive listening devices will be available. Persons requiring printed materials in an alternative format should email Elisa.gonzalez.ctr@tma.osd.mil, noting specific needs and the location (city) of the event they will attend.

The listening sessions follow EEOC action last month to approve a Notice of Proposed Rulemaking (NPRM) that implements the amendments to the ADA. On Sept. 16, the EEOC approved a revision to its regulations providing that an individual seeking protection under the ADA establish that he or she has a disability consistent with the original, expansive intent of Congress when it enacted the statute in 1990. The amendments provide increased opportunity for persons with disabilities by returning the ADA to the broad and strong civil rights statute that Congress originally intended. The NPRM carries a 60-day period for public comment.

The EEOC is responsible for enforcing Title I of the ADA, which prohibits employment discrimination against individuals with disabilities. The statute requires employers to make reasonable accommodations to employees and job applicants with disabilities – defined as people with mental or physical impairments that substantially limit a major life activity, persons with a record of a disability, or who, while not actually disabled, are regarded as disabled.

The ADA Amendments Act, which went into effect Jan. 1, 2009, states that Congress expects the EEOC to revise its regulations to conform to changes made by the Act, and expressly authorizes the EEOC to do so.

Consistent with the ADAAA, the NPRM emphasizes that the definition of disability -- an impairment that poses a substantial limitation in a major life activity -- must be construed in favor of broad coverage of individuals to the maximum extent permitted by the terms of the ADA, and should not require extensive analysis; that major life activities include “major bodily functions”; that mitigating measures, such as medications and devices that people use to reduce or eliminate the effects of an impairment, are not to be considered when determining whether someone has a disability; and that impairments that are episodic or in remission, such as epilepsy, cancer, and many kinds of psychiatric impairments, are disabilities if they would “substantially limit” major life activities when active. The regulation also provides a more straightforward way of demonstrating a substantial limitation in the major life activity of working, and implements the ADAAA’s new standard for determining whether someone is “regarded as” having a disability.

The EEOC is responsible for enforcing federal laws prohibiting employment discrimination. Further information about the listening sessions and the EEOC is available on the agency’s web site at www.eeoc.gov.

ICE seizes $1.4 million in counterfeit DVDs

2009-10-20T17:22:00.002-04:00

DETROIT - More than 300,000 suspected counterfeit DVDs were seized over the weekend in Chicago and Detroit, following a U.S. Immigration and Customs Enforcement (ICE) investigation that originated in Detroit.

The investigation began earlier this year and yielded intelligence regarding a major reseller and online vendor of suspected counterfeit DVDs.

The merchandise was shipped from China through Chicago and destined for Detroit. U.S. Customs and Border Protection (CBP) officers in Chicago intercepted the shipment earlier this month and discovered it contained suspected counterfeit merchandise.

CBP then informed the ICE Office of Investigations in Chicago. ICE's subsequent investigation revealed the shipment contained counterfeit DVDs with a suggested retail price of $1.4 million.

Based on this information, ICE agents in Detroit followed delivery of the items, and served a federal search warrant at a warehouse in Oxford, Mich., where they seized the merchandise this weekend.

"In recent years, with the advances in technology, the proliferation of counterfeit goods is increasing at an alarming rate," said Brian Moskowitz, special agent in charge of the ICE Office of Investigations in Michigan and Ohio. "ICE investigations into these intellectual property rights violations help protect the American consumer by keeping counterfeit merchandise off the shelves."

Counterfeiting, piracy and other IPR violations have grown in magnitude and complexity as technology facilitates this crime, costing U.S. businesses billions of dollars in lost revenue. Industry and trade associations estimate that counterfeiting and piracy cost the U.S. economy between $200 billion and $250 billion per year, and more than 750,000 American jobs.

The growth in IPR violations has been fueled in part by the spread of technology that enables simple and low-cost duplication of copyrighted products. This growth is also fueled by the rise in organized crime groups that smuggle and distribute counterfeit merchandise for profit. In many cases, international organized crime groups use the enormous profits derived from selling counterfeit goods to bankroll other criminal activities such as drug and weapons trafficking.

Anyone with information related to counterfeit merchandise is encouraged to contact law enforcement. The public may also call ICE's 24-hour toll-free hotline at: 1 (866) DHS-2ICE.

Although there were no arrests during the operation, ICE special agents interviewed vendors of the counterfeit merchandise and advised them that they were violating the law. The investigation continues. Individuals charged and convicted for IPR violations could face up to 10 years in prison.

Man who Posed as a Teen-Aged Girl Online Pleads Guilty to Transportation of Child Pornography

2009-10-20T17:21:00.001-04:00

GREENBELT, MD—Michael Speelman, age 52, of Adelphi, Maryland, pleaded guilty today to transportation and shipment of child pornography, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to Speelman’s plea agreement, in 2004, he assumed the online identity of a 16-year-old under the name of “Lisa Stauffer.” Posing as “Lisa,” Speelman established a romantic relationship with a 15-year-old female victim, who lived in Pennsylvania. During the course of this relationship, Speelman obtained nude and sexually explicit digital images of the victim and in return, Speelman sent images purported to be “Lisa.” On March 12, 2006, Speelman feigned the suicide death of “Lisa,” but continued to correspond with the victim pretending to be Lisa’s mother, “Sarah Stauffer.” On June 19, 2006, Speelman (posing as “Sarah”) sent the victim one of the sexually explicit photos that the victim had sent to “Lisa” and threatened to send the explicit photographs to the victim’s family. In December 2007, the victim told “Sarah” that she was moving on and had a boyfriend. Posing as “Sarah,” Speelman again threatened the victim with the distribution of the explicit photographs.

While online on January 12, 2008, the victim saw an account associated with “Lisa,” and initiated a chat. During their communication Speelman admitted that he had pretended to be “Lisa” and feigned her death to end the relationship with the victim. In addition, using his web camera, Speelman exposed himself to the victim.

On May 8, 2008, the FBI executed a search warrant at Speelman’s residence and among other things, recovered: a photo album and envelope containing printed photos of the victim, including nude photos in various poses; CDs containing 28 additional nude images of the victim, pornographic movie clips, including 22 clips which depict pre-pubescent minors engaged in sexually explicit conduct. In addition, agents recovered a CD containing pictures of another female victim between 12-15 years of age, 10 of which are pornographic and apparently self-produced. Agents also recovered 13 grams of marijuana contained in a sandwich baggie and a clear vial.

Speelman faces a minimum sentence of five years and a maximum sentence of 20 years in prison for transportation of child pornography, followed by supervised release up to life. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 8, 2010, at 9:30 a.m.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. Details about Maryland’s program are available at http://www.usdoj.gov/usao/md/Safe-Childhood/index.html.

United States Attorney Rod J. Rosenstein praised the Federal Bureau of Investigation for its investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Stacy Dawson Belf, who is prosecuting the case.

DEA Kicks-Off Red Ribbon Campaign Events to be held throughout the U.S. this month

2009-10-20T15:30:00.001-04:00

OCT 20 - (Washington, D.C.) – The Drug Enforcement Administration (DEA) will officially kick-off the National Red Ribbon Campaign on Wednesday, October 28th.

The National Red Ribbon Campaign, which is the nation’s largest drug prevention effort, began after drug traffickers in Mexico tortured and brutally murdered Special Agent Enrique “Kiki” Camarena in March 1985. Officially, Red Ribbon Week will be celebrated nationally from October 23-31; however, several communities and school districts hold events throughout the month.

The Red Ribbon Campaign is dedicated to helping to preserve Special Agent Camarena's memory and further the cause for which he gave his life, the fight against the violence of drug crime and the misery of addiction. By gathering together in special events and wearing a Red Ribbon during the last week in October, Americans from all walks of life demonstrate their opposition to drugs.

“Red Ribbon Week honors Kiki Camarena, who 25 years ago next March made the ultimate sacrifice fighting drugs. The news of his death touched the nation, and today, millions of young people born well after Kiki’s death wear red ribbons and sign pledges to remain drug-free,” said DEA Acting Administrator Michele M. Leonhart. “DEA will continue to take drug traffickers out of our communities as part of a comprehensive drug control strategy that includes effective enforcement, prevention and treatment. All those who put their lives on the line enforcing our nation’s drug laws pay tribute to the young Americans who stand with them by wearing a red ribbon during Red Ribbon Week.”

Red Ribbon week started as a local effort in Camarena’s hometown of Calexico, California when Congressman Duncan Hunter (R-CA) and Camarena’s high school friend, Henry Lozano, created Camarena Clubs to ensure fond memories of Kiki. The National Family Partnership (NFP) created a national campaign of observance, an eight-day event proclaimed by the U.S. Congress and chaired by then President and Mrs. Reagan. Approximately 80 million people participate in Red Ribbon events every year.

For news about events scheduled in your areas, please check the web at www.dea.gov or contact your local DEA Office.

For any further information, contact the DEA Office of Public Affairs in Washington, DC at 202-307-7977.

Child predator sentenced to 15 years in federal prison

2009-10-20T13:36:00.000-04:00

FORT PIERCE, Fla. - A 23-year-old Port Saint Lucie, Fla., resident, was sentenced Monday to 180 months in prison, followed by lifetime supervised release as a sex offender, following a U.S. Immigration and Customs Enforcement (ICE) led investigation.

Jason David Bingham was sentenced in federal court in Fort Pierce on Oct. 19 before U.S. District Judge Donald L. Graham after he pleaded guilty on July 27 to a federal indictment charging him with advertising child pornography and transportation of child pornography.

The investigation began on Feb. 15, when officers from the German Federal Police (BKA) downloaded approximately 37 image files that included 24 images depicting minor children engaged in sexually explicit conduct. One of these images is of a child who appears to be well under the age of eight.

The BKA, with assistance of ICE's Cyber Crimes Center (C3), learned that Bingham's computer utilized an Internet protocol address that was assigned to a residence located in Port Saint Lucie, Fla.

On April 23, ICE special agents in Fort Pierce, with the assistance of detectives from the Port Saint Lucie Police Department and Martin County Sheriff's Office, executed a federal search warrant at the defendant's home and seized computers, hard drives and media. Bingham admitted he downloaded and traded child pornography with others via the Internet and that he had images of children as young as infants engaged in sexually explicit conduct.

During a forensic preview by ICE's C3 of a backup hard drive, which Bingham admitted to encrypting, agents observed Bingham's child pornography collection, consisting of numerous images of minors engaged in sexually explicit conduct. The total count of files on the drive was 577,943. Additionally, the defendant had numerous video files, many over one-hour long that depicted children being sexually assaulted by adults and animals having sexual contact with children. The defendant also chatted online via the Internet with pedophiles, who described sexually assaulting children.

The ICE investigation and arrest was part of an initiative known as Operation Predator. Operation Predator protects children from sexual predators, including those who travel across continents to have sex with minors, Internet child pornographers, criminal alien sex offenders and child traffickers. Since the initiative was launched in July 2003, there have been almost 12,000 individuals arrested nationwide.

ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. This hotline is staffed around the clock by investigators.

Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.

Assistant U.S. Attorney Carmen Lineberger prosecuted the case.

ICE ANNOUNCES STANDARDIZED 287(g) AGREEMENTS WITH 67 STATE AND LOCAL LAW ENFORCEMENT PARTNERS

2009-10-16T00:27:00.000-04:00

WASHINGTON-Assistant Secretary for U.S. Immigration and Customs Enforcement (ICE) John Morton today announced standardized Memorandums of Agreement (MOAs) with 67 state and local law enforcement agencies to participate in 287(g) partnerships-improving public safety by prioritizing criminal aliens who are a threat to local communities, ensuring consistent and uniform policies and providing a force multiplier for ICE's immigration enforcement efforts across the country.

"Coordinating with our state and local partners is important to smart and effective enforcement of our immigration laws," said Department of Homeland Security Secretary Janet Napolitano. "These new agreements promote public safety by prioritizing the identification and removal of dangerous criminal aliens and ensure consistency and stronger federal oversight of state and local immigration law enforcement efforts across the nation. The rules set forth in these agreements will enhance our efforts to work together effectively with our local partners."

"These new partnerships are an essential tool for law enforcement to identify and remove dangerous criminal aliens from local communities," said Assistant Secretary Morton. "Standardizing these agreements allows us to better use the resources and capabilities of our law enforcement partners, facilitates accountability and ensures that all participating jurisdictions are following uniform standards throughout the country."

The state and local law enforcement partnerships announced today conform to the standardized 287(g) MOA announced by Secretary Janet Napolitano and Assistant Secretary Morton in July-strengthening ICE's overall immigration enforcement strategy by aligning local operations with ICE's major priorities, specifically the identification and removal of criminal aliens.

The 287(g) program acts as a force multiplier, training officers from local jurisdictions to carry out smart, effective immigration enforcement efforts aligned with ICE priorities. Throughout the country, 1,075 local officers have been trained through 287(g)-bolstering national immigration enforcement efforts and saving hundreds of millions of dollars.

From January 2009 to date, 287(g)-trained local officers are credited with the removal of approximately 24,000 aliens nationwide and have identified 48 percent more criminal aliens than during the same period in 2008.

The new partnerships include the Jail Model, in which local law enforcement agencies designate Jail Enforcement Officers to identify aliens already incarcerated within their detention facilities who are eligible for removal, as well as the Federal Task Force Model, in which agencies designate officers to work with Federal agents in locating, processing and removing criminal aliens from the United States.

* 55 agreements have been signed by ICE and the partnering agency;
* 12 agreements have been reached and await approval by the local jurisdiction's supervisory authority; and
* Six agreements have negotiations underway.
* Six jurisdictions did not re-sign the new 287(g) agreement or withdrew during negotiations for a variety of reasons, including implementation of the Secure Communities program, budgetary constraints and limited program utilization.

The new MOA clearly defines the objectives of the 287(g) program, outlines the immigration enforcement authorities granted by the agreement and provides guidelines for ICE's supervision of local agency officer operations-including information reporting and tracking, complaint procedures, and implementation measures.

To address concerns that individuals may be arrested for minor offenses as a guise to initiate removal proceedings, the new agreement requires participating local law enforcement agencies to pursue all criminal charges that originally caused the offender to be taken into custody.

The Illegal Immigration Reform and Immigrant Responsibility Act (IIRAIRA) of 1996 added Section 287(g) to the Immigration and Nationality Act, which authorizes the DHS Secretary to enter into agreements with state and local law enforcement agencies to perform immigration officer functions. Pursuant to these agreements, designated officers who receive appropriate training and function under the supervision of sworn ICE officers are permitted to perform immigration law enforcement duties.

Attorney General Alleges Charity Operator Diverted Money Intended For Victims Of Human Trafficking And Orphaned Aids Victims

2009-10-01T22:09:00.001-04:00

Attorney General Richard Blumenthal today announced a lawsuit against a man who allegedly misused thousands of dollars raised through Ahava Kids, Inc. -- a charity that claims to serve victims of human trafficking and orphaned children with AIDS.

Defendant Raymond Bechard -- the sole operator of Ahava Kids and several LLCs -- allegedly diverted as much as $100,000 in charitable and corporate funds for personal or inexplicable expenses at restaurants, department stores, grocery stores and sporting goods stores.

Blumenthal's investigation also revealed questionable expenses on gasoline, unexplained ATM cash withdrawals and money transferred from Ahava Kids to four Old Saybrook companies solely owned by Bechard.

The lawsuit was filed in coordination with Department of Consumer Protection Commissioner Jerry Farrell, Jr.

"We seek repayment and penalties for this alleged deceitful diversion that deprived the most vulnerable victims of vital help -- including victims of human trafficking, and children born with AIDS," Blumenthal said. "Almost half of the $250,000 raised through Ahava Kids over recent years in the name of human trafficking and orphaned AIDS children has been misspent and squandered.

"Claiming to help human trafficking victims and orphaned AIDS children, Raymond Bechard allegedly did more to help himself. Through Ahava Kids, he promises protection from human trafficking victims, opportunities for prostitutes seeking escape, and relief for orphans.

"Exploiting profoundly important causes, Ahava Kids received grants and donations -- much of it misspent at department and sports stores, and through untraceable cash transactions. My office will fight for restitution and penalties, as well as a court order prohibiting this alleged pilfering in the future."

Bechard's companies -- Disciple Makers Workshop, Son Celebration, Gift Catalog Online and Compel Communications -- are also named as defendants in the lawsuit, which Blumenthal filed in coordination with Department of Consumer Protection (DCP) Commissioner Jerry Farrell, Jr.

Blumenthal alleged that the companies merely functioned as instrumentalities of Bechard for his financial gain -- and that personal and corporate funds were intermingled.

Ahava Kids claims to help victims of human trafficking by operating hotline and safe houses (one in Connecticut and one in Georgia), and by reportedly working in the streets to reach out to prostitutes. Bechard also claims that donations to Ahava Kids have been used to distribute AIDS medication to orphaned children in third-world countries.

Through an investigation, Blumenthal's office concluded that a legitimate safe house does exist, though it is rarely used.

Former New Jersey, Firefighter Sentenced to Prison for Tax Evasion

2009-10-01T22:03:00.000-04:00

WASHINGTON - Matthew Fox, a former Atlantic City, N.J., firefighter, was sentenced today to 18 months in prison by U.S. District Court Judge Jerome B. Simandle in Newark, N.J., the Justice Department and Internal Revenue Service (IRS) announced. Fox was also sentenced to three years of supervised release and was ordered to pay the IRS tax due in the amount of $110,465 plus interest and penalties as a condition of his supervised release.

Following a jury trial in July 2007, Fox was convicted of five counts of tax evasion for failing to report more than $400,000 in income from 1998 through 2002. According to court documents and evidence presented at trial, Fox fraudulently avoided reporting cash income he earned as a bouncer and manager at an exotic dance club in Atlantic City. Initially, Fox received cash tips and hourly pay for the time he worked at the dance club as a bouncer. Then, in approximately August 1999, when he became a manager, Fox received wages from the club, and also continued to receive cash tips from the exotic dancers. Fox failed to report all or a substantial amount of income received from the exotic dance club for years 1998 through 2002.

Acting Associate Attorney General John A. DiCicco commended Special Agents with IRS Criminal Investigation for their work on the case, as well as Tax Division trial attorney Michael P. Ben’Ary who prosecuted the case.

Former U.S. Army Reserve Major Sentenced to 70 Months in Prison in Connection with Bribes Involving Department of Defense Contracts in Iraq

2009-09-30T20:12:00.001-04:00

WASHINGTON – A former U.S. Army Reserve Major was sentenced to serve 70 months in prison and to pay $825,000 in restitution to the United States after pleading guilty to conspiracy and bribery charges involving U.S. Department of Defense (DOD) contracts at Camp Victory, Iraq, the Department of Justice announced today.

Theresa Jeanne Baker pleaded guilty to the charges on Dec. 22, 2008. According to the charging document, Baker participated in two separate conspiracies. In the first conspiracy Baker received money and other items from Elie Samir Chidiac and Raman International Inc., which does business as Raman Corporation. In return, Baker conveyed sensitive information and fraudulently awarded military contracts to Raman. Upon performance of these contracts, Chidiac received payment from the DOD on Raman’s behalf and kicked back a portion of that profit to Baker. In the second conspiracy, Baker canceled military contracts for various telecommunications items that were awarded to third party contractors and fraudulently re-awarded them to Chidiac. Baker then authorized Chidiac to receive cash payments for those contracts, despite the fact that Chidiac neither delivered any goods nor performed any services. In return, Chidiac gave a portion of the money back to Baker.

Chidiac was charged with two counts of conspiracy to commit bribery in an indictment unsealed on Jan. 28, 2008, in U.S. District Court for the Western District of Oklahoma. Raman was charged in the same indictment with one count of conspiracy to commit bribery. Raman pleaded guilty to the charges on June 3, 2008, and was sentenced to pay a $500,000 criminal fine on Jan. 30, 2009. Charges remain pending against Chidiac, who is currently a fugitive.

Today’s proceedings are an example of the Department of Justice’s commitment to protect U.S. taxpayers from procurement fraud through the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs.

The ongoing investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section (NCES), along with Special Agents from the Defense Criminal Investigative Service (DCIS), Tulsa Resident Agency and the U.S. Army Criminal Investigation Division (Army CID), Dallas Resident Agency. The Criminal Division’s Office of International Affairs and agents from the U.S. Immigrations and Customs Enforcement and the U.S. Postal Inspection Service are providing additional assistance to the investigation. Anyone with information concerning bid rigging, bribery or other criminal conduct in the procurement of goods or services in Iraq is urged to contact the NCES at 202-307-6694; DCIS at 800-424-9098 or hotline@dodig.mil; or Army CID at www.cid.army.mil.

Somerset County Contractor Pleads Guilty to Submitting False Claims for Schools Contract

2009-09-29T13:08:00.000-04:00

TRENTON – Attorney General Anne Milgram announced that a Somerset County contractor has pleaded guilty to submitting false payment claims on behalf of his family’s company under a contract to replace doors in four schools in Clark Township.

According to Criminal Justice Director Deborah L. Gramiccioni, Rantik Parikh, 48, of Warren, and the family company he operated, Parikh Inc., pleaded guilty yesterday to a criminal charge of submitting false contract payment claims before Superior Court Judge Robert Billmeier in Mercer County. Under the plea agreement, the state will recommend that Parikh be sentenced to three years of probation. Parikh and Parikh Inc. will be debarred from public contracts in New Jersey for a period of five years.

Judge Billmeier scheduled sentencing for Dec. 17. Deputy Attorney General Pearl Minato took the guilty plea for the Division of Criminal Justice Corruption Bureau.

The defendants were indicted last year for making false representations in submissions to the New Jersey Schools Construction Corporation, now the Schools Development Authority, in connection with a 2004 contract to replace doors at the Johnson, Kumpf, Valley Road and Hehnly Schools in Clark. In pleading guilty, Parikh admitted that he submitted false certifications in connection with payment claims filed under the $295,500 contract.

The investigation by the Division of Criminal Justice Corruption Bureau revealed that the defendants falsely certified in a January 2005 payment application to the Schools Construction Corporation that a subcontractor, Rangam Consultants Inc., had been paid for work performed. They further certified that any additional money owed to any subcontractors would be paid within 10 days of receipt of the next contract payment. Based on the representations, the SCC authorized a $57,000 payment to Parikh Inc. in May 2005. However, the state’s investigation revealed that the first time any money was paid to Rangam was nearly 18 months after the certification. Another subcontractor was never paid.

The investigation was conducted by Sgt. David Salzmann and Sgt. Frederick Weidman of the Division of Criminal Justice Corruption Bureau.

Enforcement Officer for Hudson County Improvement Authority Pleads Guilty to Promoting Gambling

2009-09-29T13:04:00.000-04:00

TRENTON – Attorney General Anne Milgram announced that an enforcement officer for the Hudson County Improvement Authority pleaded guilty today to promoting gambling.

According to Criminal Justice Director Deborah L. Gramiccioni, Harry L. Aceti, 52, of Flemington, pleaded guilty to an accusation charging him with fourth-degree promoting gambling before Superior Court Judge Lourdes I. Santiago in Hudson County.

Under the plea agreement, the state will recommend that Aceti be ordered to serve a four-year term of probation. He must forfeit his job as an enforcement officer for the Hudson County Improvement Authority and will be permanently barred from public employment in New Jersey. He could also face a criminal fine of up to $25,000.

In pleading guilty, Aceti admitted that he was actively involved in promoting an illegal bookmaking operation in which he solicited individuals to place bets on sporting events by distributing telephone numbers which these individuals could call to place bets. Aceti admitted that he also was responsible for collecting money from these bettors to cover their losses and ensuring that money was delivered to the winners.

Members of the New Jersey State Police Official Corruption Bureau North Unit conducted the investigation. Deputy Attorney General David M. Fritch took the guilty plea for the Division of Criminal Justice Corruption Bureau.

Aceti was arrested on June 2, 2009 as a result of the investigation. He has been free on $50,000 bail.

Judge Santiago scheduled sentencing for Nov. 13.

Justice Department Announced Public Education Campaign Grants to Fight Immigration-Related Employment Discrimination

2009-09-28T13:11:00.001-04:00

WASHINGTON – The Justice Department today announced that it has awarded $723,000 in grants to twelve groups serving communities throughout the country, to conduct public education programs for workers and employers about federal protections against immigration-related job discrimination.

The grants, which range from $48,000 to $87,000, are being awarded by the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) of the department’s Civil Rights Division. Recipients will assist discrimination victims; conduct seminars for workers, employers and immigration service providers; distribute educational materials in various languages; and place advertisements in local communities through both mainstream and ethnic media to educate workers and employers about their rights.

OSC enforces the anti-discrimination provision of the Immigration and Nationality Act (INA), which protects U.S. and authorized immigrant workers against citizenship and national origin discrimination. As part of its mission, OSC also educates workers and their employers about the anti-discrimination provision.

“Awarding grants to professional and community-based organizations better enables us to educate workers and employers about their rights and responsibilities under federal immigration law,” said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. “Our grant recipients, who are well known and respected in their communities, will collaborate with us to prevent immigration-related discrimination in the workplace.”

The OSC grant recipients are:

Arizona Attorney General’s Office, Civil Rights Division

Asian Pacific American Legal Center of Southern California

Catholic Charities of Dallas

Catholic Charities, Diocese of St. Petersburg, Fla.

Colorado Legal Services

Legal Aid Foundation of Los Angeles (LAFLA)

National Farm Worker Service Center

National Immigration Law Center (NILC)

New York City Human Rights Commission

Texas RioGrande Legal Aid

University of Iowa

Washington Farm Labor Association

For more information about protections against job discrimination under federal immigration law, call 800-255-7688, 202-616-5594, email: osc.crt@usdoj.gov or visit http://www.usdoj.gov/crt/osc

Justice Department to Monitor Elections in Massachusetts and New York

2009-09-14T01:08:00.000-04:00

WASHINGTON - The Justice Department today announced that it will monitor the Sept. 15, 2009, municipal elections in Springfield, Mass., and Newburgh, N.Y., to ensure compliance with the Voting Rights Act of 1965.

Federal observers will be assigned to monitor polling place activities in Springfield and Newburgh. The observers will watch and record activities during voting hours at polling locations. Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. In 2008, for example, 1,060 federal observers and 344 Department personnel were sent to monitor 114 elections in 76 jurisdictions in 24 states.

To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931. More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice Web site at http://www.usdoj.gov/crt/voting/index.htm .

Arizona Man Sentenced for Selling Bald Eagle Feathers

2009-08-31T14:51:00.001-04:00

WASHINGTON – Cedric E. Salabye of Dilkon, Ariz., was sentenced Friday in federal court in Phoenix for selling 11 bald eagle tail feathers, the Justice Department announced today. Salabye pleaded guilty on April 23, 2009, to one count of a federal indictment charging him with selling eagle feathers in violation of the Bald and Golden Eagle Protection Act. Judge David G. Campbell of the U.S. District Court for the District of Arizona sentenced Salabye to five years of probation, six months of home confinement and 150 hours of community service.

At the time Salabye committed the violation in 2006, the bald eagle was listed as threatened under the Endangered Species Act. The bald eagle was removed from protection under the federal Endangered Species Act in 2007. However, two other federal laws still provide protection for the bald eagle—the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act.

Eagles and other protected migratory birds are viewed as sacred in many Native American cultures and the feathers of the birds are central to religious and spiritual Native American customs. By law, enrolled members of federally recognized Native American tribes are entitled to obtain permits to possess eagle parts for religious purposes, but federal law strictly prohibits the sale of bald and golden eagles or their feathers and parts under any circumstance. The U.S. Fish and Wildlife Service operates the National Eagle Repository, which collects eagles that die naturally, by accident or other means, to supply enrolled members of federally recognized tribes with eagle parts for religious use.

"The buying and selling of the feathers of bald eagles, our nation’s symbol, is illegal and those who choose to ignore those laws will be prosecuted," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.

The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement and the Navajo Nation Department of Fish and Wildlife. The case was prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

Vice President of Missouri Pesticide Company Pleads Guilty to Environmental Crimes

2009-08-31T14:50:00.001-04:00

Company Dumped Pesticide Waste Water into Public Sewers

WASHINGTON—The vice president of a Missouri pesticide company, HPI Products Inc., pleaded guilty today in federal court in Kansas City, Mo., for violating a federal pesticides law designed to provide proper regulatory oversight and prevent improper storage of pesticides, the Justice Department announced.

Hans Nielsen pleaded guilty before U.S. District Judge Sarah Hays for the Western District of Missouri to two criminal misdemeanor counts for violating sections of the Federal Insecticide, Fungicide and Rodenticide Act, also known as FIFRA. According to the charges, Nielsen did not notify the state or federal regulatory agencies of the illegal storage of pesticides and failed to maintain records of the storage. For more than twenty years, HPI Products stored pesticides and its wastes in various warehouses in St. Joseph, Mo., without notifying state and federal regulatory agencies.

"The failure to properly notify authorities of the pesticide storage prevented the oversight and safeguards needed to monitor stored pesticides," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "This failure could have led to a potentially dangerous situation for first responders, who, in the event of an emergency, need proper information to assesses the hazards and determine the proper actions to contain leaks or fires."

Nielsen faces up to 12 months in prison and a fine of up to the greater of $100,000 or twice the amount of either the gain realized by the defendant or the loss caused by the defendant.

Today’s plea is related to felony guilty pleas entered by HPI Products Inc., and its president, William Garvey. Garvey pleaded guilty to a felony violation of the Clean Water Act for disposing pesticide waste down the sewers of the city of St. Joseph. The company pleaded guilty to the same violation of the Clean Water Act as well as a felony violation of the hazardous waste storage laws. Garvey and the company are scheduled to be sentenced on Sept.1, 2009, by U.S. District Court Judge Howard F. Sachs.

The investigation was conducted by the Environmental Protection Agency Criminal Investigation Division. The case is being prosecuted by the Justice Department’s Environmental Crimes Section with assistance from the Western District of Missouri U.S. Attorney’s Office.

Three Men Charged in Human Trafficking Conspiracy for Exploiting Thai Farm Workers in Hawaii

2009-08-28T15:29:00.002-04:00

WASHINGTON – The Justice Department announced the indictment of Alec Souphone Sou and Mike Mankone Sou, owners of Aloun Farm in Hawaii, and Thai labor recruiter William Khoo late yesterday for engaging in a conspiracy to commit forced labor and visa fraud. The charges arise from the defendants’ alleged scheme to coerce the labor and services of Thai nationals brought by the defendants to Hawaii to work under the federal agricultural guest worker program. Both Sou defendants are also charged with conspiring to commit document servitude.

The charges set forth in an indictment are merely accusations and the defendant is presumed innocent until proven guilty. If convicted, Alec and Mike Sou each face maximum sentences of 15 years in prison and William Khoo faces a maximum of 10 years in prison.

Alec Sou, Mike Sou and William Khoo conspired and devised a scheme to obtain the labor of 44 Thai nationals by enticing them to come to Aloun Farms in Hawaii with false promises of lucrative jobs, and then maintaining their labor at the farm through threats of serious economic harm, according to the indictment. They arranged for the Thai workers to pay high recruitment fees, which were financed by debts secured with the workers’ family property and homes. Significant portions of these fees went to the defendants themselves, as alleged in the indictment. After arrival at Aloun Farms, the Sou defendants confiscated the Thai nationals’ passports and failed to honor the employment contracts. The Sou defendants maintained the Thai nationals’ labor by threatening to send them back to Thailand, where they would face serious economic harms created by the debts. The indictment also charges that the defendants engaged in a visa fraud conspiracy by making false representations in documents filed to obtain employment-based visas.

This case is being investigated by the FBI and the U.S. Department of Homeland Security Immigration and Customs Enforcement. This case is being prosecuted by trial attorneys Susan French and Kevonne Small of the Criminal Section of the Civil Rights Division.

Former New York State Supreme Court Justice Thomas J. Spargo Convicted of Attempted Extortion and Bribery

2009-08-27T21:55:00.002-04:00

Former New York State Supreme Court Justice Thomas J. Spargo was convicted today by a federal jury in Albany, N.Y., of attempted extortion and soliciting a bribe.

Spargo, 66, was convicted following a three-day jury trial. Evidenced introduced at trial showed that on Nov. 13, 2003, Spargo solicited a $10,000 payment from an attorney with cases pending before him in Ulster County, while Spargo was serving as a state supreme court justice. The trial evidence showed that when the attorney declined to pay the money, Spargo increased the pressure by a second solicitation communicated through an associate. According to evidence presented at trial, on Dec. 19, 2003, Spargo directly told the attorney in a telephone conversation that he and another judge close to him had been assigned to handle cases in Ulster County, including the attorney’s personal divorce case. According to the evidence at trial, the attorney felt that if he did not pay the money, both the cases handled by his law firm and his personal divorce proceeding would be in jeopardy.

"It is a sad day indeed when a judge breaks the laws that he is sworn to enforce," said Assistant Attorney General Lanny A. Breuer. "The Criminal Division’s Public Integrity Section will continue in its singular mission to hold accountable wayward public officials who violate the law and the trust that has been placed in them."

"Judges are supposed to serve the people who elected them, not their own self-interests. What Mr. Spargo did is nothing more than old fashioned extortion," said FBI Special Agent in Charge John F. Pikus.

The maximum statutory penalty for the charge of soliciting a bribe is 10 years in prison and the maximum penalty for the charge of attempted extortion is 20 years. Spargo also faces a maximum fine of $250,000 for each count on which he was convicted.

This case is being prosecuted by Senior Trial Attorney Richard C. Pilger and Trial Attorney M. Kendall Day of the Public Integrity Section, which is headed by Chief William M. Welch II. The case was investigated by the FBI’s Albany Division.

Former Department of Defense Contractor Sentenced for Participation in Scheme to Steal Fuel from U.S. Army in Iraq

2009-08-25T16:05:00.000-04:00

Lee William Dubois, a former Department of Defense (DoD) contractor, was sentenced today to three years in prison for his participation in a scheme to steal fuel worth approximately $39.6 million from the U.S. Army in Iraq.

Dubois, 32, of Lexington, S.C., was sentenced today by U.S. District Court Judge Gerald Bruce Lee in the Eastern District of Virginia. Dubois had pleaded guilty to a one-count information charging him with theft of government property on Oct. 7, 2008. In connection with his plea, Dubois testified at the trial of his co-conspirator, Robert Jeffery, who was convicted by a jury on Aug. 11, 2009. Dubois also repaid to the U.S. government $450,000 that represented the illicit proceeds of the scheme.

In his plea, Dubois admitted that between July 2007 and May 2008, he and his co-conspirators, purportedly representing DoD contractors in Iraq, used fraudulently-obtained documents to enter the Victory Bulk Fuel Point (VBFP) in Camp Liberty, Iraq, and presented false fuel authorization forms to steal aviation and diesel fuel from the VBFP for subsequent sale on the black market. According to plea documents, the United States owns and operates the VBFP in support of Operation Iraqi Freedom. The VBFP supplies aviation and diesel fuel to both military units and U.S. government contractors operating in and around the VBFP. To retrieve and transport the stolen fuel from the VBFP, Dubois admitted he and his co-conspirators employed approximately 10 individuals to serve as drivers and escorts of the trucks containing the stolen fuel. These individuals were able to enter the VBFP illegally by using government-issued common access cards.

Dubois admitted he obtained the cards by falsely representing to the U.S. Army that the drivers and escorts were employees of a DoD contractor, when, in fact, they were not employed by any government contractors. In addition, Dubois admitted he went to the VBFP and presented false documents authorizing his co-conspirators to draw fuel. Dubois also admitted that for two months during the scheme, he served as the lead escort for the stolen fuel. According to information contained in the plea documents, during the course of the scheme, Dubois and his co-conspirators stole approximately 10 million gallons of fuel worth approximately $39.6 million. Dubois received at least $450,000 in personal profits from the subsequent sale of the fuel on the black market.

In related cases, Robert Jeffery was convicted on Aug. 11, 2009, after a two-day jury trial, of one count of conspiracy and one count of theft of government property for his role in the fuel theft. Robert Young and Michel Jamil each pleaded guilty to participating in the same scheme. The evidence at trial showed that Jeffery served as an escort for the fuel trucks and retrieved hundreds of thousands of gallons of fuel from the VBFP. Sentencing for Jeffery is scheduled for December 11, 2009.

Young, 56, a former captain in the U.S. Army, pleaded guilty on July 24, 2009. In his guilty plea, Young admitted that between October 2007 and May 2008, he and his co-conspirators used fraudulently-obtained documents to enter the VBFP and presented false fuel authorization forms to steal aviation and diesel fuel from the VBFP for subsequent sale on the black market. As a result of the scheme, Young received approximately $1 million in personal profits. Sentencing for Young is scheduled for Oct. 30, 2009.

Jamil, 59, pleaded guilty on July 27, 2009, with his role in the scheme. Jamil admitted that in March 2007, he and two of his co-conspirators arranged for the creation of a false Memorandum for Record (MFR) authorizing individuals to draw fuel from VBFP, purportedly on behalf of a company serving as a contractor to the U.S. government. Jamil admitted that he and his co-conspirators used this false MFR and others to steal large quantities of fuel from the U.S. Army for subsequent sale on the Iraqi black market. As a result of the scheme, Jamil admitted he received between $75,000 and $87,500 in profits. Sentencing is scheduled for Nov. 13, 2009.

The case is being prosecuted by Special Assistant U.S. Attorney Steve Linick, Deputy Chief of the Criminal Division’s Fraud Section, and Fraud Section Trial Attorneys Andrew Gentin and Brigham Cannon. The investigation of this case was conducted by the U.S. Army Criminal Investigation Command, the Defense Criminal Investigative Service, the Washington Field Office of the FBI and members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations, including in Afghanistan, Iraq and Kuwait.

Former UBS Banker Sentenced to 40 Months for Aiding Billionaire American Evade Taxes

2009-08-21T15:18:00.000-04:00

MIAMI – Former UBS banker, Bradley Birkenfeld of Weymouth, Mass., has been sentenced to 40 months incarceration by Judge William J. Zloch in Fort Lauderdale, Fla. On June 19, 2008, Birkenfeld pleaded guilty to conspiring to defraud the United States, the Justice Department announced today.

According to court documents and statements made in court today, Birkenfeld worked as a private banker in Geneva, Switzerland, for UBS AG, one of the country’s largest banks. While at UBS, Birkenfeld assisted an American billionaire real estate developer evade paying $7.2 million in taxes by assisting the developer conceal $200 million of assets hidden offshore in Switzerland and Liechtenstein. While at UBS, Birkenfeld routinely traveled to and had contacts within the United States in an effort to assist wealthy Americans conceal their ownership in assets held offshore and therefore evade the payment of taxes on the income generated on the money hidden offshore.

In order to assist wealthy Americans who concealed assets at UBS in Switzerland, Birkenfeld admitted that he and others advised U.S. clients to place cash and valuables in Swiss safety deposit boxes; purchase jewels, artwork and luxury items using the funds in their Swiss bank account while overseas; misrepresent the receipt of funds from the Swiss bank account in the United States as loans from the Swiss bank; destroy all off-shore banking records existing in the United States; utilize Swiss bank credit cards that they claimed could not be discovered by United States authorities; and file false U.S. individual income tax returns that omitted income earned by their clients and fraudulently misrepresented that their clients did not have an interest in and signature authority over accounts held offshore.

In February 2009, UBS entered into a deferred prosecution agreement and the bank admitted to helping U.S. taxpayers hide accounts from the Internal Revenue Service (IRS). As part of their agreement, UBS provided the United States government with the identities of, and account information for, certain United States customers of UBS’s cross-border business. The deferred prosecution agreement paragraph 13 stated that the United States would be seeking enforcement of a civil "John Doe" summons seeking records for United States persons who maintained accounts with UBS in Switzerland. On Aug. 19, 2009, the civil matter was resolved and UBS agreed to produce the identities and account information of 4,450 additional UBS customers who are believed to have violated United States law.

"To those taxpayers who have illegally hidden their income in foreign bank accounts and to those who have illegally helped clients hide income and assets, today's sentencing serves as notice: come in and completely come clean," said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. "A failure or delay in doing so until after the Government has discovered the wrongdoing, even if there is then cooperation, has serious consequences."

"Those who have stashed money offshore should not take comfort in the fact that the UBS investigation seems to have reached criminal and civil resolutions," said Jeffrey H. Sloman, Acting U.S. Attorney for the Southern District of Florida. "New leads and additional evidence are being uncovered each day. We are committed to pursuing these new leads and to developing additional cases against those who assist Americans evade their income tax obligations."

Acting Assistant Attorney General John DiCicco and Acting U.S. Attorney Jeffrey H. Sloman commended the investigative efforts of the IRS agents involved in this case. The prosecution is being handled by Senior Litigation Counsel Kevin M. Downing and Trial Attorney Michael P. Ben’Ary of the Tax Division, and Assistant U.S. Attorney Jeffrey A. Neiman.

"Mr. Birkenfeld admitted his role in advising wealthy U.S. clients to take various actions to conceal their assets at UBS in Switzerland from the US Government," said Eileen Mayer, Chief, IRS Criminal Investigation. "Today, he is paying the price for that role. Clients as well as promoters of international tax fraud are under the watchful scrutiny of the IRS. For anyone with hidden offshore assets, the IRS wants to send a clear message. There is still time – although the clock is ticking - to come in and get right with the government."

United States citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III of their individual income tax return.

Additionally, American citizens must file a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury, disclosing any financial account in a foreign country with assets in excess of $10,000 for which they have a financial interest in or signature authority, or other authority over.

PETSMART WILL PAY $125,000 TO SETTLE EEOC SEXUAL HARASSMENT AND RETALIATION LAWSUIT

2009-08-20T22:28:00.000-04:00

Retailer Retaliated Against Woman Who Complained About Abuse, Federal Agency Charges

PHILADELPHIA — PetSmart, Inc., the nation’s leading retailer of services and products for pets, will pay $125,000 and furnish significant equitable relief to resolve a federal sexual harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced on 08/19/09.

The EEOC charged in its lawsuit that female employees were subjected to unwelcome sexual harassment by a store manager who worked first at the company’s Pottstown store and then at its Wyomissing store. The EEOC said that the store manager’s sexually offensive conduct and comments included repeatedly grabbing his genitals while talking to female employees and making explicit sexual comments and sexual innuendoes.

Further, the EEOC charged, PetSmart not only failed to take prompt and effective action to stop the harassment, as required by law, but engaged in unlawful retaliation against a female manager after she complained. The store manager allegedly yelled at the woman, belittled her in front of subordinates, followed her around the store and disciplined her despite her good job performance. As a result of the unrelenting harassment and unwarranted retaliation, the EEOC said, she was forced to quit her job.

“Sexual harassment is unacceptable and illegal at any workplace,” said EEOC Acting Chairman Stuart J. Ishimaru. “The EEOC is strongly committed to combating this kind of misconduct.”

Title VII of the Civil Rights Act of 1964makes it unlawful to sexually harass an employee and to retaliate against someone who complains about discrimination. The EEOC filed suit, Civil Action No. 08-cv-3527, in U.S. District Court for the Eastern District of Pennsylvania after first attempting to reach a voluntary settlement out of court.

The two-year consent decree settling the suit, which is pending court approval, provides important equitable relief, including mandatory EEO training of all managers, supervisors, and employees about employee rights and employer obligations under Title VII; distributing the company policy prohibiting discrimination, harassment and retaliation to all employees; and posting an EEO notice advising employees of its policies against workplace discrimination.

“We filed this lawsuit because all employees have the right to complain about sexual harassment without suffering unlawful reprisals,” said EEOC Acting Regional Attorney Debra Lawrence. “We are pleased that the parties were able to resolve this matter and that PetSmart agreed to a variety of corrective measures designed to prevent future problems in the workplace.”

According to its web site, PetSmart, Inc. is the largest specialty pet retailer of services and solutions for the lifetime needs of pets. It operates more than 1,107 stores in the United States and Canada.

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the Commission is available on its web site at www.eeoc.gov.

Justice Department Reaches Settlement with Microsemi Corp.

2009-08-20T22:12:00.000-04:00

WASHINGTON – The Department of Justice announced today that it has reached a proposed settlement with Microsemi Corporation that requires the company to divest all of the assets that it acquired from Semicoa Inc. on July 14, 2008. The Department said that without this divestiture, there would be little or no competition in the development, manufacture and sale of certain semiconductor devices used in military and space programs essential to the security of the United States.

The Department’s Antitrust Division has filed a proposed settlement in U.S. District Court for the Eastern District of California. If approved by the court, the settlement would resolve the lawsuit and address the Department’s competitive concerns.

These semiconductor devices, small signal transistors and ultrafast recovery rectifier diodes, are used to control the flow of electric current. Both small signal transistors and ultrafast recovery rectifier diodes are used in critical military and civil applications ranging from satellites to nuclear missile systems. Highly reliable performance under demanding conditions is essential in these military and space systems, where component failure could result in failure of the mission.

Prior to the acquisition, Microsemi and Semicoa were the only manufacturers of small signal transistors qualified for these applications. In addition, Semicoa and Microsemi were each poised to become qualified for their ultrafast recovery rectifier diodes, which are in critically short supply. The Department alleged in its complaint that Microsemi’s acquisition of Semicoa’s assets would result in increased prices and slower delivery of critical military components.

Microsemi is a Delaware corporation that manufactures a range of products, including QML semiconductors. In fiscal year 2008, Microsemi reported total sales of approximately $500 million. Semicoa was a Costa Mesa, Calif., corporation that, prior to the acquisition, manufactured a variety of QML semiconductors. Semicoa’s United States sales in 2007 were approximately $15 million.

The proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the Final Judgment upon a finding that it serves the public interest.

Former Taiwanese Executive Indicted in Color Display Tube Price-Fixing Conspiracy

2009-08-19T18:10:00.000-04:00

Global Price-Fixing Scheme Involves Tubes Used in Computer MonitorsWASHINGTON – A federal grand jury in San Francisco has returned an indictment against a former executive of a large Taiwanese color display tube (CDT) manufacturing company for participating in a global conspiracy to fix prices of CDTs, a type of cathode ray tube used in computer monitors and other specialized applications, the Department of Justice announced today.

The indictment, filed last night in the U.S. District Court in San Francisco, charges Wen Jun (Tony) Cheng, a former Assistant Vice President of Sales and Marketing, with conspiring with unnamed co-conspirators to suppress and eliminate competition by fixing prices, reducing output, and allocating market shares of CDTs. The Department alleges that Cheng participated in the conspiracy beginning at least as early as January 1999 until at least September 2004.

Cheng was previously indicted on Feb. 3, 2009, for his participation in a global conspiracy to fix prices of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) panels.

The indictment alleges, among other things, that Tony Cheng and co-conspirators carried out the CDT conspiracy by attending meetings and engaging in conversations and communications in Taiwan, Korea, Malaysia, China and elsewhere to discuss and agree on the prices, output and market shares of CDTs. Cheng and co-conspirators are also alleged to have implemented an auditing system to verify that production lines had been shut down as agreed, and to have taken steps to conceal the conspiracy.

Cheng is charged with violating the Sherman Act, which carries a maximum penalty of 10 years imprisonment and a fine of $1 million for individuals for violations occurring after June 22, 2004. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either or those amounts is greater than the Sherman Act maximum fines.

This case is part of an ongoing joint investigation by the San Francisco Office of the Antitrust Division of the U.S. Department of Justice and the Federal Bureau of Investigation in San Francisco. Anyone with information concerning illegal conduct in the cathode ray tube industry is urged to call the San Francisco Field Office of the Antitrust Division at 415-436-6660.

Fifth Campaign Worker Charged with Falsifying Absentee Ballots in 2007 Races in 29th District

2009-08-19T09:13:00.000-04:00

TRENTON – Attorney General Anne Milgram announced that another person was indicted today for election fraud in connection with absentee ballots she collected and submitted as a worker for the 2007 campaign of Teresa Ruiz for the New Jersey Senate in the 29th District. Four other campaign workers for Ruiz were charged in three prior indictments.

According to Criminal Justice Director Deborah L. Gramiccioni, Rocio Rivera, 49, of Lebanon Township, an employee of the Essex County Sheriff’s Office, was charged in a state grand jury indictment with election fraud (2nd degree), absentee ballot fraud (3rd degree), tampering with public records or information (3rd degree), and forgery (4th degree).

The indictment stems from an ongoing investigation by the Division of Criminal Justice Corruption Bureau and the Essex County Prosecutor’s Office.

Rivera is charged with tampering with documentation for messenger ballots, which are absentee ballots intended for use by homebound voters. She is charged with fraudulently submitting such ballots as votes in the Nov. 6, 2007 general election.

“We are continuing our investigation into allegations of fraud in the November 2007 general election in the 29th District,” said Attorney General Milgram. “We will prosecute anyone found to have tampered with the election and disenfranchised voters.”

“This alleged voter fraud was brought to our office’s attention by the Essex County Superintendent of Elections,” said Essex County Prosecutor Paula Dow. “Voting is a fundamental privilege that all American citizens have a right to exercise without any form of meddling. The Essex County Prosecutor’s Office will not tolerate any attempt to manipulate elections of any kind.”

Messenger ballots are for use only by those who are homebound due to illness, infirmity or disability. Such persons can complete an application designating a messenger or bearer who is a family member or a registered voter in the county. The bearer is thereby authorized to obtain an absentee ballot from the county board of elections, take it to the voter, and return a completed ballot to the county board.

Rivera allegedly solicited applications for messenger ballots from individuals not qualified to receive them and fraudulently designated herself as the authorized messenger or bearer. She allegedly obtained messenger ballots from the county board of elections, and submitted them to the board of elections as votes on behalf of voters who, in fact, never received or voted the ballots.

The investigation was led by Deputy Attorney General Vincent J. Militello, Sgt. James Scott and Sgt. Lisa Shea of the Division of Criminal Justice Corruption Bureau. It was conducted for the Essex County Prosecutor’s Office by Assistant Prosecutor Brandon Minde, Detective David Sanabria and Detective Elizabeth Bazan. Deputy Attorney General Militello and Assistant Prosecutor Minde presented the case to the state grand jury. Attorney General Milgram also thanked Deputy Attorney General Perry Primavera, Analyst Kathleen Ratliff, all of the detectives in the Division of Criminal Justice Corruption Bureau North, and the agents and detectives of the New Jersey Regional Computer Forensics Laboratory for their work on the case.

Essex County Superintendent of Elections Carmine Casciano and his staff cooperated fully in the investigation.

Second-degree crimes carry a maximum sentence of 10 years in prison and a $150,000 fine, while third-degree crimes carry a maximum sentence of five years in prison and a $15,000 fine. Fourth-degree crimes carry a maximum sentence of 18 months in prison and a $10,000 fine.

The indictment was handed up to Superior Court Judge Linda R. Feinberg in Mercer County, who assigned the case to Essex County, where the defendant will be ordered to appear at a later date to answer the charges. The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. The indictment is linked to this press release at www.njpublicsafety.com.

On Aug. 4, a state grand jury returned two indictments charging three other campaign workers for Ruiz with tampering with documentation for messenger ballots and fraudulently submitting such ballots as votes in the Nov. 6, 2007 general election.

One charged Gianine Narvaez, 36, of Belleville, a data processing technician for the Essex County Commissioner of Registration and Superintendent of Elections, with official misconduct, election fraud, absentee ballot fraud, tampering with public records or information, and forgery.

The second indictment returned on Aug. 4 charged Angel Colon, 46, of Newark, an employee of the City of Newark Office of Affirmative Action, and Colon’s fiancée, Sorinette Rosario, 31, of Belleville, an employee of the Newark Welfare Department, with election fraud, conspiracy to commit election fraud, absentee ballot fraud, conspiracy to commit absentee ballot fraud, tampering with public records or information, and forgery.

On March 23, another Ruiz campaign worker, Antonio Santana, 58, of Newark, was indicted on charges he fraudulently changed votes on absentee ballots during the election. That indictment alleges that Santana changed the votes on three absentee ballots that he collected from members of one family in October 2007.

The charges against Narvaez, Colon, Rosario and Santana are pending.

Attorney General Milgram noted that the Division of Criminal Justice has a toll-free Corruption Tipline 1-866-TIPS-4CJ for the public to confidentially report suspected criminal conduct.

Camden Man Pleads Guilty to Aggravated Assault for Shooting Man in the Leg

2009-08-03T16:33:00.000-04:00

TRENTON – Attorney General Anne Milgram announced that a Camden man pleaded guilty today to shooting an acquaintance in the leg following a verbal altercation.

According to Criminal Justice Director Deborah L. Gramiccioni, James A. Broadwater, 39, of Camden, pleaded guilty to second-degree aggravated assault before Superior Court Judge Lee A. Solomon in Camden County. The charge was contained in a May 28, 2008 Camden County grand jury indictment.

In pleading guilty, Broadwater admitted that on Nov. 13, 2007, he shot an acquaintance once in the leg. An investigation determined that Broadwater shot the 48-year-old male victim after they got into a verbal altercation at the corner of Pine and St. John streets in Camden.

Judge Solomon scheduled sentencing for Oct. 9. The state will recommend a sentence of ten years in state prison. Under the No Early Release Act, Broadwater must serve 85 percent of his sentence before becoming eligible for parole.

Investigator Michael Dougherty of the Camden County Prosecutor’s Office coordinated the investigation and Deputy Attorney General Kristen Harberg prosecuted the case for the Division of Criminal Justice. Attorney General Milgram also thanked Sgt. Rick Bumbera, Detective Christopher Provenzano and Detective Augustus Nyekan of the New Jersey State Police, and Officer Fernando Badillo of the Camden Police Department for their assistance in the investigation.

Under the CeaseFire program, the Shoot Team in Camden responds to all non-fatal shootings within the city limits of Camden, conducting an intensive investigation of each shooting as if it were a homicide. Cases are handled by the Camden County Prosecutor’s Office and the Division of Criminal Justice.

Leader & Co-Defendant of Multi-Million Dollar Illegal Prescription Painkiller Narcotics Ring Plead Guilty

2009-07-31T17:34:00.000-04:00

TRENTON - Attorney General Anne Milgram announced that the leader a Newark-based narcotics ring that distributed millions of dollars a year in illegal prescription painkillers such as Oxycontin and one of his co-defendants have pleaded guilty today. The defendants had been on trial in Essex County.

The guilty pleas mark the conclusion of a nearly three-year investigation that resulted in 18 defendants being convicted and facing a total of 210 years in state prison. In addition, approximately $2.3 million in assets were seized as a result of the investigation and will be forfeited at the time of sentencing.

“The sheer magnitude of this ring was astounding,” Attorney General Milgram said. “In disbanding the ring, the New Jersey State Police and the Division of Criminal Justice have taken millions of dollars worth of illegal prescription drug pills off of the streets and out of the hands of criminals.”

According to Director Gramiccioni, Mohamed Hassanain, 43, of West Orange, pleaded guilty before Superior Court Judge Joseph Cassini in Essex County to racketeering and money laundering, both in the second-degree. Hassanain’s co-defendant, Terry A. Brooks, 33, of Newark, pleaded guilty before Judge Cassini to second-degree racketeering. The charges were contained in an Aug. 2, 2007 state grand jury indictment.

The charges stem from an investigation by the New Jersey State Police and Division of Criminal Justice, assisted by the U.S. Drug Enforcement Administration. The case is being prosecuted by Supervising Deputy Attorney General Mark Eliades, chief of the Division of Criminal Justice Gangs & Organized Crime Bureau, and Deputy Attorneys General Mark Ondris and Paul Salvatoriello.

In pleading guilty, Hassanain admitted that between July 2005 and January 2007, he orchestrated the narcotics ring that sold approximately 40,000 OxyContin and Percocet pills per week. Most of the pills went to a distribution ring based in Bronx, N.Y. The Bronx ring in turn sold some of the drugs to a ring in the Boston area.

The investigation, dubbed “Operation Pandora,” determined that Hassanain and his deputies within the ring provided several hundred names a week to Dr. Mario Comensanas, 53, of Livingston, who was paid up to $100 per name to write a “set” of prescriptions, including 60 OxyContin pills, 90 Percocet pills and vitamins for patients that did not exist or whom he never saw. Comensanas pleaded guilty on March 19, 2007 to first-degree racketeering and second-degree distribution of narcotics for writing thousands of fraudulent prescriptions for the ring. He is currently awaiting sentencing.

After receiving the fraudulent prescriptions, “runners,” including Brooks, within the ring would proceed to various pharmacies to fill the prescriptions. In exchange for cash, pharmacist Ahmed “Felix” Aly, 35, of Union, would knowingly fill multiple fraudulent prescriptions and return the narcotics to the runners. Aly’s case was severed from Hassanain’s trial and is currently pending trial.

Hassanain, who ran the ring from his home in West Orange and his business on Clinton Avenue in Newark, admitted that he maintained various “stash” houses around the Essex County area where he would accumulate tens of thousands of pills per week for wholesale distribution. At the “stash” houses, pills were packaged in bulk and individuals from the Bronx would come weekly to transport the narcotics and provide Hassanain with tens of thousands of dollars.

On Jan. 25, 2007, the Division of Criminal Justice executed arrest warrants at 10 locations and upon five vehicles utilized by the enterprise. Consequently, more than 40,000 narcotics pills, approximately $650,000 in cash, approximately nine weapons, and thousands or prescriptions, both blank and executed, were recovered. The state placed liens against 14 parcels of real property allegedly acquired with the proceeds of the illegal enterprise.

Attorney General Milgram credited Detectives Thomas McEnroe and others within the State Police Major Crime Unit and detectives in the Division of Criminal Justice Gangs & Organized Crime Bureau - North Squad. She also credited the U.S. Drug Enforcement Administration New Jersey Division, under the direction of Special Agent in Charge Gerard P. McAleer, the Essex County Prosecutor’s Office, members of the NY/NJ High-Intensity Drug Trafficking Areas program, and the New York State Police for assisting in the investigation.

British Citizen Arrested in Connection with Costa Rica-based Business Opportunity Fraud Ventures

2009-07-31T17:30:00.000-04:00

WASHINGTON – A British citizen charged in connection with the operation of a series of fraudulent business opportunities was arrested Thursday evening in Miami following his indictment by a Miami federal grand jury on June 9, 2009, the Justice Department and the U.S. Postal Inspection Service announced today.

Dilraj Mathauda was arrested based on charges that he and his co-conspirators purported to sell beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses. The charges form part of the government’s continued nationwide crackdown on business opportunity fraud.

According to the indictment, beginning in May 2005, Mathauda fraudulently induced victims to buy business opportunities in USA Beverages Inc. and Omega Business Systems Inc. for, in many cases, at least $10,000 each. Mathauda, using an alias, and his co-conspirators employed Voice Over Internet Protocol (VoIP) phone service and virtual offices in the U.S. to make it appear to potential purchasers that the companies’ operations were fully within the United States. Mathauda is alleged to have operated out of Costa Rica as he was fraudulently inducing potential purchasers to buy the purported business opportunities.

Mathauda and his co-conspirators allegedly made numerous false statements to potential purchasers of the business opportunities. According to the indictment, they falsely told their victims that the companies were established years earlier, had a significant number of distributors across the country, and had a track record of success. Potential purchasers were referred to references who, according to the indictment, told false tales of their success as business opportunity owners. Through these and other misrepresentations, purchasers of the business opportunities were led to believe that they would earn substantial profits.

"The federal government is committed to uncovering and vigorously prosecuting business opportunity fraud," said Tony West, Assistant Attorney General for the Department of Justice’s Civil Division. "In fact, we have charged over 100 individuals with business opportunity-related felonies in the past five years."

Mathauda is charged with conspiracy and with committing his offense via telemarketing. He is also charged with ten counts of mail fraud and two counts of wire fraud. If convicted on the conspiracy count, Mathauda faces a maximum sentence of 25 years imprisonment, a possible fine, and mandatory restitution. He also faces a maximum statutory term of 25 years imprisonment on each of the mail and wire fraud counts, a possible fine, and mandatory restitution.

"We will not allow individuals living in other countries to use modern communication techniques to commit fraud on the American public. This international and domestic investigation illustrates our resolve to protect the American people from business scams, wherever they occur," said U.S. Postal Inspector in Charge, Henry Gutierrez, based in Miami.

"The Postal Inspection Service remains vigilant in investigating and rooting out fraudulent schemes. Consumers must be aware that false references and empty promises of assistance locating display racks and merchandise are extremely common in this type of scam," said U.S. Postal Inspector in Charge Pete Zegarac, based in Phoenix. "These companies took over the corporate identities of businesses established long ago – so even claims of being in business for many years must be viewed with caution."

Assistant Attorney General West commended the investigative efforts of the Postal Inspection Service, as well as the Federal Trade Commission, which previously brought a related civil suit and made a criminal referral. This matter is being prosecuted by trial attorneys in the Justice Department’s Office of Consumer Litigation.

Fourteen Motorcycle Gang Leaders and Members Plead Guilty in Detroit to Violent Crime, Drug and Firearms Charges

2009-07-30T16:39:00.000-04:00

Fourteen members of the Outlaws Motorcycle Club have pleaded guilty in Detroit to charges including violent crimes in aid of racketeering, illegal drug distribution and firearms violations.

The guilty pleas included leaders, members and gang associates of Outlaws’ chapters in Fort Wayne, Ind., Indianapolis, and areas of Detroit including Eastside, Detroit Westside, Downriver and Bay City. The defendants were charged with various crimes including violent crimes in aid of racketeering; conspiracy to commit violent crimes in aid of racketeering; distribution and possession with intent to distribute cocaine, methamphetamine, marijuana and hashish; possessing a firearm after conviction for a felony; and sale of a firearm to a known felon.

"Unfortunately, far too many Americans live in fear of gang-related violence," said Assistant Attorney General Lanny A. Breuer. "By working with our federal, state and local partners to target these gangs, we take violent individuals off the street and weaken the chokehold that gangs like the Outlaws have on our communities."

"The guilty pleas by a large number of leaders and members of this illegal motorcycle gang are a good example of the success that comes from effective federal, state and local law enforcement cooperation," said U.S. Attorney Terrence Berg. "This case has managed to put a damper on the heightened dangers of violence and other criminal acts posed by organized gangs such as the Outlaws. The ATF, FBI and their state and local law enforcement partners did an excellent job in bringing the down the illegal activities of the Outlaws in the Eastern District of Michigan."

"One of ATF’s primary missions is to make our communities safer from the criminal activity of violent gangs, such as the Outlaws. The magnitude of the pain, suffering and fear that violent gangs bring to our communities is immeasurable," said Thomas Brandon, Special Agent-in-Charge of the ATF Detroit Field Division. "ATF, along with our local, state and federal partners, remains committed to stemming the hold that violent gangs like the outlaws have on our neighborhoods."

The guilty pleas were the result of "Operation Broken Spoke," "Operation Detroit Mugger," and "Operation End Game," a five-year investigation by the ATF; the FBI; the National Drug Intelligence Center; Michigan State Police; the Detroit Police Department; the South Bend, Ind., Police Department; and the Fort Wayne Police Department.

The following Michigan and Indiana Outlaws members and associates pleaded guilty:

NAME

DATE OF PLEA

CHARGE

Leroy Frasier, aka "Leroy"

July 30, 2009

Conspiracy to commit assault with a dangerous weapon

David Dorris, aka "Hoggs"

July 27, 2009

Conspiracy to commit assault with a dangerous weapon

Ramon Rios, aka "Ramon"

July 23, 2009

Conspiracy to commit assault with a dangerous weapon

Norman Box Jr., aka "Stormin Norman"

June 23, 2009

Assault with a dangerous weapon

Michael Radke, aka "Mike"

June 23, 2009

Distribution of cocaine

Edward Gallagher, aka "Eddie"

June 23, 2009

Distribution of methamphetamine

Danny Neace, aka "Milky"

June 12, 2009

Assault with a dangerous weapon

Bruce Wendel, aka "Big Bruce"

June 12, 2009

Assault with a dangerous weapon

Kim Galaviz, aka "Moe"

June 12, 2009

Distribution of cocaine

William Thomas McCowan, aka "Tom the Bomb"

June 10, 2009

Possession of hashish

William Merfert, aka "Billy"

June 10, 2009

Felon in possession of firearms

William Elston, aka "Jason"

June 9, 2009

Assault with a deadly weapon resulting in serious bodily injury

Mark Guerra, aka "Skid Mark"

April 1, 2009

Distribution of marijuana

William Guinn, aka "Slick"

Aug. 25, 2008

Distribution of marijuana

Robert Castillo, aka "Big Rob" and "Mexican Rob," is currently awaiting trial on charges of distributing cocaine. Kenneth Creslaw, aka "KC," is charged with distributing marijuana and remains a fugitive.

The original 18-count indictment alleged that the Outlaws Motorcycle Club is an enterprise whose members allegedly committed, attempted to, and threatened to commit acts of violence to protect and expand the gang’s criminal operations. Several of the defendants were charged with allegedly assaulting various members of the rival Hells Angels Motorcycle Club, in some cases with dangerous weapons including a hammer, motorcycle parts and a cane. Several defendants allegedly trafficked in the sale of narcotics, including methamphetamine, marijuana, hashish and cocaine, while others were charged with various firearms offenses.

The Outlaws Motorcycle Club has been identified as an international criminal organization whose members and associates engage in acts of violence including murder, attempted murder, assault, robbery, kidnapping, narcotics sales and distribution, illegal firearms trafficking and gambling offenses. The Outlaws are a structured and hierarchical gang, divided into multiple regions in the United States. The Outlaws also have members worldwide, including Europe, Asia and Canada. The Outlaws have a long-standing violent history with the Hells Angels Motorcycle Club, including assaults/batteries, shootings and fatalities.

The Detroit Outlaws case was prosecuted by Assistant U.S. Attorneys Diane L. Marion and Julie Beck of the Eastern District of Michigan, as well as Trial Attorney Sam Nazzaro of the Criminal Division’s Gang Unit.

The law enforcement actions in Detroit are the result of the Justice Department’s ongoing anti-gang initiative and the joint strategic and priority targeting of violent street gangs by the ATF, FBI, the National Gang Targeting, Enforcement and Coordination Center (GangTECC), the National Gang Intelligence Center and state and local law enforcement. The Criminal Division’s Gang Unit, a specialized group of federal prosecutors charged with attacking the most significant regional, national and international gangs in the United States, works with fellow prosecutors around the country to disrupt and dismantle gang activity in communities. In addition, the Gang Unit works with domestic and foreign law enforcement agencies to construct effective and coordinated prevention and enforcement strategies.

10th Arrest Made as Consumer Affairs Cracks Down on Phony “Dentists”

2009-07-30T10:14:00.001-04:00

NEWARK – The Newark Police Department, working with investigators from the Division of Consumer Affairs’ Enforcement Bureau, on July 20 arrested two men for unlicensed practice of dentistry, the ninth and tenth such arrests in northern New Jersey within the past year.

Unlicensed individuals operating out of apartments, basements, and dental laboratories have performed dental procedures and also administered prescription medications through injections or by dispensing prescription drugs. Patients have sustained injuries that included broken teeth that were not fully extracted, unconsciousness following injection of anesthesia and infections.

“Our Enforcement Bureau investigators are teaming up with local police departments to shut these so-called ‘dentists’ down. The public’s health, safety and welfare is clearly being put at risk when unlicensed individuals attempt to practice dentistry,” Attorney General Anne Milgram said.

Unlicensed practice of dentistry is a third-degree crime under the state’s criminal code. The Board of Dentistry within the Division can assess civil penalties.

“The licensing requirements established by the Board of Dentistry ensure that those treating patients have the education and skills to do so,” said David Szuchman, Consumer Affairs Director. “Patients must understand the needless risk they take when they go to an unlicensed person for dental work.”

Newark Police arrested Carlos Bello and Aristoteles Berenzon and charged both with unlicensed practice of dentistry.

The previous undercover investigations conducted by Enforcement Bureau investigators and local police departments that resulted in arrests for unlicensed practice of dentistry are as follows:

* Marly Vasquez was arrested by the Jersey City Police Department on July 8, 2009. A second person, Francisco R. Macias, was charged with conspiracy to practice unlicensed dentistry and possession of a prescription legend drug;
* Ramon Quevedo was arrested by the Union City Police Department on March 26, 2009;
* Libia Marcos was arrested by the Garfield Police Department on March 18, 2009 and also charged with obtaining prescription drugs without a prescription and possession of hypodermic syringes;
* Carlos L. Ferreira was arrested by the Elizabeth Police Department on February 4, 2009;
* Luis Ponce was arrested by the West New York Police Department on November 7, 2008 and also charged with possession of prescription legend drugs;
* Alvaro Velez-Naranjo was arrested by the North Bergen Police Department on November 6, 2008 and was also charged with three counts of possession of a Controlled Dangerous Substance (prescription drug) and possession of hypodermic syringes;
* Luis Eduardo Gallo was arrested by the Union City Police Department on July 17, 2008. He was indicted on September 23, 2008 by a Grand Jury.

(Gallo was working in the office of a licensed dentist, Vinod S. Brahmbhatt. Dr. Brahmbhatt faces disciplinary action by the Board of Dentistry.)

Consumers who suspect an unlicensed person is offering service that only a licensed dentist can legally perform can contact the state Board of Dentistry at 973-504-6405. Complaints can be filed online at www.njconsumeraffairs.gov/complaint/dentcom.pdf .

Consumers on limited budgets who are in need of dental services have options for treatment, including becoming a patient at the New Jersey Dental School in Newark or going to a community health clinic that offers dental services.

The New Jersey Dental School is part of the University of Dentistry and Medicine of New Jersey and services are performed by predoctoral or postgraduate students who work under the direction of faculty members who are licensed dentists. For more information, call 973-972-7370.

Arizona Man Pleads Guilty to Mailing Child Pornography

2009-07-29T14:48:00.000-04:00

WASHINGTON – Robert Restuch, 69, of Bullhead City, Ariz., pleaded guilty yesterday to one count of mailing child pornography, Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the District of Arizona Diane J. Humetewa announced.

As part of his plea agreement, Restuch admitted that he entered a U.S. Post Office in Bullhead City and mailed a package that contained more than 600 images of child pornography, including images depicting children less than 12 years old.

Sentencing has been set for Oct. 19, 2009. At sentencing, Restuch will face a mandatory minimum sentence of five years in prison and up to 20 years in prison, as well as the possibility of lifetime supervised release. He will also face a fine of up to $250,000.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The case was prosecuted by Trial Attorney James Silver of CEOS, with assistance from Assistant U.S. Attorneys Vincent Q. Kirby, Sharon K. Sexton and Heather Nelson of the District of Arizona. The U.S. Postal Inspection Service conducted the investigation.

Division on Civil Rights Finds Probable Cause in Case of Restaurant that Balked at Seating Patron with Service Dog

2009-07-29T14:45:00.000-04:00

TRENTON -- The Division on Civil Rights announced today it has issued a Finding of Probable Cause against an Essex County restaurant over the way it treated a visually-impaired man who sought to eat at a table in the main dining area while accompanied by his family and a certified guide dog.

Instead of seating the man in the main serving area, the restaurant seated him and his party in a less central dining area next to the kitchen, ostensibly for fear that customers in the main dining area would be bothered by the presence of a dog.

Named as Respondents in the Finding of Probable Cause are the 88 Café, a Chinese restaurant located in Livingston, and its owner, Johnny Wong.

“The conduct alleged in this case is troubling,” said Division on Civil Rights Acting Director C. Carlos Bellido. “Restaurant owners must recognize they have a duty under the law to treat persons accompanied by a certified guide dog as they would any other patron, and that they do not have the discretion to attempt to isolate such customers or seat them ‘out of the way.’ We are committed to ensuring that restaurants – and any other places of public accommodation -- meet their responsibility under the law.”

On February 5, 2009, visually-impaired patron Clifford B. Aaron, of Livingston, entered the 88 Café along with his wife, daughter and Aaron’s golden retriever Alto, a trained and certified guide dog. Initially, Aaron was informed the restaurant had a no-pets-allowed policy. Then, after Aaron presented identification to confirm he is disabled, and that Alto is a certified guide dog, he was offered a table near the kitchen. Wong told State investigators he sought to place Aaron and his party there because he was not sure if other 88 Café patrons would object to the dog.

Aaron, however, found the offering unacceptable. He asked be served in the main dining area near a window, where there was seating available.

When Wong did not seat Aaron as requested, Aaron contacted local police. After police arrived and explained state and federal laws protecting persons in need of guide dogs, Wong agreed that Aaron could sit at any open table.

However, the owner also began polling other diners to determine if they objected to having a dog seated near them. At that point Aaron and his party left the restaurant, and Aaron subsequently filed a complaint with the Division on Civil Rights.

A Finding of Probable Cause does not resolve a civil rights complaint. Rather, it means the State has concluded its preliminary investigation and determined there is sufficient evidence to support a reasonable suspicion the New Jersey Law Against Discrimination (LAD) has been violated.

The Law Against Discrimination (LAD) provides that each Respondent found to have committed a violation is subject to a penalty of up to $10,000, provided he or she has not been convicted of a previous violation within the past five years.

Respondents who have violated the LAD within the past five years are subject to a penalty of up to $25,000, while those who have been convicted of two or more violations within the past seven years are subject to a penalty of up to $50,000.

According to Acting Director Bellido, now that the Division has issued a Finding of Probable Cause, the case will be referred for a process known as Conciliation. If Conciliation is not successful, the matter will be referred to an Administrative Law Judge for a hearing on the merits, which is a non-jury trial. The Administrative Law Judge will then issue a written Initial Decision.

Contracting Officer’s Niece Pleads Guilty to Obstructing Money Laundering Investigation Related to Bribe Payments

2009-07-28T18:08:00.001-04:00

WASHINGTON - The niece of a U.S. Army major pleaded guilty today for her role in a conspiracy to cover up her uncle’s role in accepting more than $9 million in bribes as a contracting officer in Kuwait, Assistant Attorney General Lanny A. Breuer of the Criminal Division and Assistant Attorney General Christine A. Varney of the Antitrust Division announced.

Nyree Pettaway, 37, of Houston, pleaded guilty in U.S. District Court for the Western District of Texas to one count of conspiring with her uncle, John C. Cockerham, Carolyn Blake (her aunt and Cockerham’s sister) and others, to obstruct the investigation of money laundering related to Cockerham’s receipt of bribes. Pettaway admitted that, as Cockerham learned that he was under investigation in late 2006, he solicited her assistance to create cover stories for the millions of dollars he had received and to return $3 million in cash to co-conspirators for safekeeping. Pettaway admitted she traveled to Kuwait, received the cash from Blake, and gave it to others to hold for Cockerham. Pettaway also admitted that she delivered fraudulent documents to contractors in Kuwait, attempting to make the bribe payments look to investigators like legitimate loans.

Pettaway faces up to five years in prison and a fine of $250,000. In addition, she agreed to pay $5 million in restitution to the United States.

Cockerham pleaded guilty in January 2008 to participating in the complex bribery and money-laundering scheme. According to court documents, he was responsible for awarding contracts for services to be delivered to troops in Iraq, including bottled water. In return for awarding illegal contracts, Cockerham admitted to receiving more than $9 million in bribe proceeds. Once Cockerham agreed to take money in exchange for awarding contracts, he admitted he directed the contractors to pay Blake, his wife Melissa Cockerham, and others in order to conceal the receipt of bribe payments.

Melissa Cockerham pleaded guilty in January 2008 to accepting more than $1 million on John Cockerham’s behalf, and admitted that she had stored the cash in safe deposit boxes at banks in Kuwait and Dubai.

Blake pleaded guilty in March 2009 to one count of money laundering conspiracy after accepting more than $3 million in bribe proceeds on behalf of John Cockerham. Blake admitted she had expected to keep 10 percent of the money she collected.

This case is being prosecuted by Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section, which is headed by Chief William M. Welch, II and Trial Attorneys Mark W. Pletcher and Emily W. Allen of the Antitrust Division’s National Criminal Enforcement Section, which is headed by Chief Lisa Phelan. The case is being investigated by the Army Criminal Investigations Division, the Defense Criminal Investigative Service, the FBI, the Internal Revenue Service, the Special Inspector General for Iraq Reconstruction, and the U.S. Immigration and Customs Enforcement at the Department of Homeland Security.

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs.

Virginia Resident Pleads Guilty to Participating in Scheme to Steal Fuel from U.S. Army in Iraq

2009-07-27T08:29:00.001-04:00

A Virginia man pleaded guilty today to participating in a scheme to steal fuel worth approximately $39.6 million from the U.S. Army in Iraq.

Michel Jamil, 59, of Annandale, Va., pleaded guilty today in U.S. District Court in Alexandria, Va., before Judge Claude Hilton. Jamil pleaded guilty to a one-count information charging him with conspiracy to steal government property.

In his guilty plea, Jamil admitted that in March 2007, he and two of his co-conspirators arranged for the creation of a false Memorandum for Record (MFR) authorizing individuals to draw fuel from the Victory Bulk Fuel Point (VBFP), Camp Liberty, Iraq, purportedly on behalf of a company serving as a contractor to the U.S. government. The VBFP, owned and operated by the United States, supplies aviation and diesel fuel to military units and U.S. government contractors operating in and around the Victory Base Complex. Jamil admitted that he and his co-conspirators used this false MFR and others to steal large quantities of fuel from the U.S. Army for subsequent sale on the Iraqi black market. Jamil admitted that he escorted the trucks to retrieve fuel from the VBFP using a false MFR on approximately 10 to 15 occasions. During Jamil’s participation in the scheme, he and his co-conspirators stole from the U.S. Army fuel worth approximately $39.6 million. As a result of the scheme, Jamil admitted he received between $75,000 and $87,500 in profits.

At sentencing, Jamil faces a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Sentencing is scheduled for Nov. 13, 2009.

In related cases, Lee William Dubois and Robert Young pleaded guilty to participating in the same scheme. In his guilty plea on Oct. 7, 2008, Dubois admitted that he obtained government-issued common access cards for the drivers and escorts of the trucks and also presented false documents to the VBFP authorizing his co-conspirators to draw fuel. Dubois admitted that he and his co-conspirators stole approximately 10 million gallons of fuel, and that he received at least $450,000 in personal profits from the subsequent sale of the fuel on the black market. Sentencing for Dubois is scheduled for Sept. 4, 2009.

Young, 56, a former captain in the U.S. Army, pleaded guilty on July 24, 2009. In his guilty plea, Young admitted that between October 2007 and May 2008, he and his co-conspirators used fraudulently-obtained documents to enter the VBFP and presented false fuel authorization forms to steal aviation and diesel fuel from the VBFP for subsequent sale on the black market. As a result of the scheme, Young received approximately $1 million in personal profits. Sentencing for Young is scheduled for Oct. 30, 2009.

In another related case, a federal grand jury returned a superseding indictment on May 21, 2009, charging Robert Jeffery, 55, with conspiracy and theft of government property in connection with the same fuel theft scheme. The indictment alleges that Jeffery served as the lead escort for the fuel trucks for several months and illegally retrieved thousands of gallons of fuel from the VBFP. Young and Jeffery are both U.S. citizens who, until their arrests in connection with this case, resided in the Philippines. Jeffery’s trial is scheduled to begin on Aug. 10, 2009.

The case is being prosecuted by Special Assistant U.S. Attorney Steve Linick, Deputy Chief of the Criminal Division’s Fraud Section, and Fraud Section Trial Attorneys Andrew Gentin and Brigham Cannon. The investigation of this case was conducted by the U.S. Army Criminal Investigation Command, the Defense Criminal Investigative Service, the FBI and members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).

The National Procurement Fraud Task Force, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations, including in Afghanistan, Iraq and Kuwait.

Appellate Division Increases Prison Sentence to Five Years for Former Carneys Point Mayor

2009-07-27T07:54:00.000-04:00

TRENTON - Attorney General Anne Milgram and Criminal Justice Director Deborah L. Gramiccioni announced that a state appeals court today issued a decision increasing the sentence imposed on former Carneys Point mayor John “Mack” Lake from three years in prison to five years. Lake attempted to bribe an opponent to drop out of the 2006 township committee race.

“We are gratified by the court’s decision,” said Attorney General Milgram. “Lake offered a taxpayer-funded job as a bribe to his political opponent in an effort to secure his own re-election. He attempted to subvert the election process and use the power of his office for personal gain.”

On Dec. 7, 2007, Lake, 53, was convicted in a bench trial before Superior Court Judge William L. Forester in Salem County of second-degree official misconduct and two counts of second-degree bribery. The state asked Judge Forester to impose a seven-year prison sentence, which represents the middle of the five- to 10-year sentencing range for second-degree offenses. However, Forester sentenced Lake in April 2008 to three years in state prison, which is the bottom of the sentencing range for third-degree offenses. The state appealed the sentence.

In a published opinion issued today, a three-judge Appellate Division panel ruled that the trial judge did not have a proper basis for downgrading the sentence to the third-degree range. The appeals court also rejected Lake’s contention on appeal that the evidence was not sufficient to sustain the second-degree charges.

Because Judge Forester is no longer on the bench, the Appellate Division panel did not remand the case for sentencing. Instead, it exercised jurisdiction to sentence Lake to five years in state prison on the official misconduct charge and a concurrent term of five years for the two bribery counts. The original sentence had been stayed, but the appeals court lifted the stay today.

Deputy Attorney General Jeanne Screen argued the appeal for the Division of Criminal Justice Appellate Bureau. Deputy Attorney General Susan Kase prosecuted the case for the Division of Criminal Justice Corruption Bureau. The case was investigated by the State Police Official Corruption Unit.

Lake approached his opponent, Anthony Rullo, on at least two occasions with offers to secure him a paid municipal job if he would drop out of the race for township committee at a point that was too late for the opposition party to substitute another candidate.

Lake approached Rullo first in July 2006 and offered to use his position as mayor - appointed by the committee - to get Rullo a paid part-time position with the Carneys Point Sewer Authority if Rullo withdrew as a candidate for township committee. Rullo brought the offer to the attention of Salem County Prosecutor John T. Lenahan, who conducted an initial review and then referred the matter to the State Police Official Corruption Unit and the Division of Criminal Justice.

In August, Lake made a new offer to secure Rullo a paid position as assistant to the township housing inspector if he dropped out of the race. Rullo stayed in the race and defeated Lake on Nov. 7, 2006.

Connecticut Investor Found Guilty in Massive Scheme to Bribe Senior Government Officials in the Republic of Azerbaijan

2009-07-10T11:18:00.000-04:00

Frederic A. Bourke Jr., 63, was found guilty today by a federal jury in Manhattan of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the Travel Act, and making false statements to the FBI. Bourke, of Greenwich, Conn., was convicted following a six-week jury trial before U.S. District Judge Shira A. Scheindlin.

Evidence presented at trial established that Bourke

was a knowing participant in a scheme to bribe senior government officials in Azerbaijan with several hundred million dollars in shares of stock, cash, and other gifts. According to evidence presented at court, the bribes were meant to ensure that those officials would privatize the State Oil Company of the Azerbaijan Republic (SOCAR) in a rigged auction that only Bourke, fugitive Czech investor Viktor Kozeny and members of their investment consortium could win, to their massive profit. According to evidence presented at trial, the scheme involved the purchase of vouchers and options that could be used to bid for shares in SOCAR. The vouchers and options were largely purchased with millions of dollars of cash flown into Azerbaijan on private planes. The vouchers and options were intended to be exercised by Oily Rock Ltd., a company Kozeny allegedly controlled, according to evidence presented at trial. Bourke, a friend and neighbor of Kozeny’s in Aspen, Colo., invested approximately $8 million in Oily Rock, on behalf of himself and family members and friends. Evidence also showed that Bourke obtained directorships, salary and stock options with related companies that Kozeny allegedly set up and funded.

Beginning in August 1997 through fall 1998, evidence presented at trial showed that Bourke and others conspired to pay or cause to be paid millions of dollars worth of bribes to Azeri government officials to ensure that their investment consortium would gain, in secret partnership with the Azeri officials, a controlling interest in SOCAR and its substantial oil reserves. For example, evidence presented at trial showed that in August 1997, Kozeny allegedly agreed to transfer to corrupt Azeri officials two-thirds of the vouchers and options Oily Rock purchased, and to give them two-thirds of all of the profits arising from his investment consortium’s participation in SOCAR’s privatization. In addition, evidence presented at trial showed that in June 1998, Bourke knew that Kozeny arranged for Oily Rock to increase its authorized share capital from $150 million to $450 million so that the additional $300 million worth of Oily Rock shares could be transferred to one or more of the Azeri officials as a further bribe payment. Bourke also arranged for two of the corrupt officials to travel to New York City on different occasions in 1998 to receive medical treatment, for which Oily Rock paid. Thereafter, in interviews with the FBI in April and May of 2002, Bourke falsely stated that he was not aware that Kozeny had made the alleged payments to the Azeri Officials.

Bourke and Kozeny were indicted in October 2005. At sentencing, scheduled for Oct. 13, 2009, Bourke faces a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the alleged violations on each of the two counts on which he was convicted. Bourke was acquitted of one count of money laundering.

The prosecution and the related case against Kozeny are being handled jointly by the U.S. Attorney’s Office for the Southern District of New York and the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Harry A. Chernoff and Iris Lan, as well as Fraud Section Deputy Chief Mark F. Mendelsohn and Assistant Chief Robertson Park are prosecuting the case.

The charges contained in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty

Justice Department Files Lawsuit Against Nevada to Enforce Employment Rights of U.S. Army Reservist

2009-06-15T03:53:00.000-04:00

The Department today filed a lawsuit against the state of Nevada and its Office of the State Controller alleging it violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by refusing to promptly reemploy Arthur Ingram when he returned from active military duty and then by firing him after he filed a USERRA complaint. The suit was filed in U.S. District Court in Reno, Nev.

Enacted by Congress in 1994, USERRA requires employers to promptly reemploy returning service members in the position they would have held had their employment not been interrupted by military service or in a position of like status, seniority and pay. USERRA also prohibits employers from retaliating against service members for exercising their USERRA rights.

Ingram, a colonel in the U.S. Army Reserve, was Nevada’s chief deputy controller when he was called to active duty in June 2003. After he was honorably discharged in April 2008, Ingram sought reemployment with the state of Nevada. The Justice Department’s complaint alleges that the state initially offered Ingram a job but at considerably less pay and status and then withdrew that offer and backdated Ingram’s termination after he filed a USERRA complaint.

"The Civil Rights Division is strongly committed to protecting the employment rights of the men and women who serve our country in uniform," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. "The law is clear – unnecessary delays and reprisal will not be tolerated."

The Labor Department’s Veterans’ Employment and Training Service investigated and attempted to resolve Ingram’s USERRA complaint before referring it to the Justice Department for litigation.

USDOJ

United States Files Clean Air Lawsuit Against Engine Importer

2009-05-28T18:46:00.000-04:00

The United States has filed a civil complaint against PowerTrain Inc., Wood Sales Co. Inc., and Tool Mart Inc., all based in Golden, Miss., alleging that they imported and sold more than 78,000 Chinese-made engines that do not meet federal air pollution standards, the Justice Department and Environmental Protection Agency (EPA) announced.

The lawsuit filed in U.S. District Court in Washington, D.C., is part of an ongoing effort to ensure that imported non-road engines and equipment comply with the Clean Air Act’s emissions standards. The filing marks the first federal court action enforcing the Clean Air Act’s emissions standards for portable generators, water pumps and other "non-handheld equipment."

The complaint alleges that the non-road engines imported and sold by Powertrain, Wood Sales and Tool Mart from September 2002 through at least May 2007 were not certified to meet applicable emission standards. The Clean Air Act prohibits any non-road engine from being imported and sold in the U.S. unless covered by a "certificate of conformity" indicating that the engine meets applicable emission standards. The complaint also alleges that the companies failed to provide buyers with the full emission-system warranty required by the Clean Air Act for all of the non-road engines that were sold, to install proper emission-compliance labels on many of the engines and to fully respond to EPA’s administrative information requests issued under the Clean Air Act.

The complaint, filed by the Department of Justice on behalf of the EPA, seeks civil penalties up to the maximum amount authorized by law, as well as actions by the companies to remedy the violations and to mitigate any excess pollutant emissions caused by the violations.

EPA estimates the engines have contributed to excess emissions of more than 150 tons of hydrocarbons and nitrogen oxides, and more than 5,000 tons of carbon monoxide.

Non-road engines emit carbon monoxide, as well as volatile organic compounds and nitrogen oxides that contribute to the formation of ground-level ozone or smog. Exposure to even low levels of ozone can cause respiratory problems, and repeated exposure can aggravate pre-existing respiratory diseases.

In 1995, EPA established regulations to reduce emissions of hydrocarbons from small gasoline-powered non-road engines. To obtain a certificate of conformity for non-road engines from EPA, a manufacturer must submit an application that describes the non-road engine and its emission control system, and that demonstrates that the non-road engines will meet applicable federal emissions standards. After obtaining a certificate of conformity, applicants must also comply with specific labeling, warranty and other requirements to ensure that the non-road engines will meet emissions standards in use.

Crime Stopper’s Tip Nabs Wanted Man

2009-05-25T18:04:00.000-04:00

The U.S. Marshal’s Florida Regional Fugitive Task Force, along with patrol and K-9 units from the Tallahassee Police Department, responded to an urgent Crime Stoppers tip early this morning which resulted in the arrest of one of Tallahassee’s most wanted men. Ion Cloud, nineteen years of age, had been the target of a multi-agency manhunt since the Leon County Sheriff’s Office identified Cloud as a subject of interest in the Circle K / McDonalds shooting that occurred at 811 Lake Bradford Road in the early morning hours of March 29, 2009. Task Force members and Tallahassee Police Department patrol units responded to a residence in the 1300 block of Alabama Street in Tallahassee where Cloud was found asleep in a bed with a female. He was immediately arrested without incident. The Florida Regional Fugitive Task Force had been looking for Cloud since April 8 on outstanding warrants for the offense of Aggravated Assault with a Deadly Weapon (3 counts) from a separate incident involving Cloud which occurred in December 2008.

Cloud’s arrest came mere hours after the new release of a collaborative effort between the Tallahassee Democrat and the U.S. Marshals in which violent wanted felons are profiled in a special section of the online version of the Tallahassee Democrat. Cloud was one of the fugitives featured this morning on this website. The website provides photographs and information on some of the most violent offenders being sought by the U.S. Marshals Florida Regional Fugitive Task Force which have been submitted by the participating local law enforcement agencies. The Florida Regional Fugitive Task Force is spearheaded by the U.S. Marshals and is comprised of the Tallahassee Police Department, the Leon County Sheriff’s Office, Florida Department of Law Enforcement, Wakulla County Sheriff’s Office, Gadsden County Sheriff’s Office, and the State Attorney’s Office.

Justice Department Files Lawsuit Against Synapse Data and Telecom Inc to Enforce the Employment Rights of Utah National Guard Member

2009-05-07T09:26:00.000-04:00

The Justice Department today announced the filing of a lawsuit in U.S. District Court in Salt Lake City on behalf of Jose A. Ortega, a Utah National Guard member, against Synapse Data and Telecom Inc., and Matthew Mossbarger, Synapse’s owner and operator, alleging violations of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).

Under USERRA, an employer is prohibited from terminating an employee if the employee’s service or obligation for service in the uniformed services is a motivating factor in the employer’s action, unless the employer can prove that the action would have been taken in the absence of such service or obligation for service.

The complaint alleges that Ortega, then a network administrator for Synapse, enlisted in the Utah National Guard in April 2008 and was given orders to report for basic training the following month. According to the complaint, Ortega informed Mossbarger of his military enlistment and attempted to provide Mossbarger with a copy of his orders to report for basic training. Mossbarger tried to convince Ortega to rescind his military obligation, offering him benefits, a raise and management opportunities. Mossbarger then terminated Ortega when Ortega declined to withdraw from the Utah National Guard. Ortega filed a complaint with the Labor Department’s Employment and Training Service (VETS). VETS investigated the matter, determined that Ortega’s claim had merit, and upon completion of conciliation efforts, referred the matter to the Justice Department.

"The Department of Justice is committed to vigorously enforcing federal laws that protect the employment rights of our servicemembers," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. "That commitment is evidenced by cases such as this where a servicemember’s employment was terminated simply because he had committed to military service and would be reporting for training."

West Virginia Man Pleads Guilty on Federal Civil Rights Charges

2009-04-20T17:32:00.000-04:00

Daryl Lee Fierce, 69, of Charleston, W.Va., pleaded guilty today to a civil rights charge in federal court in the Southern District of West Virginia for using fire to intimidate and interfere with a person’s housing rights. Fierce set fire to the victim’s home because African-American and biracial individuals visited the victim in her home. Pursuant to the plea agreement, Fierce faces up to 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 30, 2009.

According to documents filed in court, on or about July 16, 2007, Fierce admitted that he set fire to a home located on Noyes Avenue in Charleston because the tenant occupying the home, a white woman, associated with persons of another race and color. Fierce set fire to the outside wall of the victim’s bedroom at night as she slept. Fierce further admitted that before the incident he had used racial epithets against guests, including young children, who visited the victim’s home.

"Living in one’s home and associating with friends of one’s choosing, without violent interference because of race, is a core right of all persons in this country," said Loretta King, Acting Assistant Attorney General for Civil Rights. "The defendant used violence against an innocent victim because of his racial prejudice. This is illegal, and despicable, and we will prosecute such crimes whenever and wherever they occur."

The FBI, the Charleston Police Department and the Charleston Fire Department investigated this case. The case was prosecuted by James Walsh with the Justice Department’s Civil Rights Division and Lisa G. Johnson, Assistant U.S. Attorney for the Southern District of West Virginia.

Former Bristol-Myers Squibb Senior Executive Pleads Guilty

2009-04-06T10:09:00.000-04:00

A former senior executive of Bristol-Myers Squibb Company (BMS), Andrew Bodnar, pleaded guilty for his role in BMS’s dishonest dealings with the federal government relating to a patent deal involving the popular blood-thinning drug Plavix, the Department of Justice announced today. This plea agreement follows BMS’s June 11, 2007, agreement to plead guilty and pay a $1 million criminal fine – the maximum fine permitted by statute – for misleading the government about the Plavix patent deal. The Department said that the illegal actions of BMS and its executive threatened to reduce competition that could have lowered the cost of blood-thinning drugs sold to heart attack, stroke and other patients.

According to the court papers filed today in the U.S. District Court for the District of Columbia, in 2006, BMS and another company, Apotex, were engaged in litigation over the validity of the patent for Plavix and were negotiating a settlement of that litigation. At the time, BMS was subject to a separate consent decree – for unrelated conduct – with the Federal Trade Commission (FTC) requiring BMS to submit any proposed patent settlements for review and approval by the FTC. The FTC warned BMS that it would not approve a settlement of the Plavix litigation if BMS agreed not to launch its own generic version of Plavix that would compete against Apotex for generic sales. Notwithstanding these warnings, Bodnar, BMS’s negotiator, made representations to Apotex to reassure it that BMS would not launch a generic version of Plavix if Apotex agreed to a settlement that would prevent Apotex from launching its Plavix generic until 2011. Bodnar pleaded guilty today for later falsely certifying to the FTC that he had not made these representations to Apotex.

Pittsburgh-Area Man Served as Nazi Concentration Camp Guard

2009-04-04T12:02:00.000-04:00

Pittsburgh-Area Man Served as Nazi Concentration Camp Guard

2009-04-04T12:01:00.000-04:00

The Department of Justice has initiated removal proceedings against a Sharon, Penn., resident who served as an armed SS guard at two Nazi concentration camps in Germany during World War II.

The charging document, filed April 1, 2009, in U.S. Immigration Court in Philadelphia by the Criminal Division’s Office of Special Investigations (OSI) and U.S. Immigration and Customs Enforcement (ICE) alleges that during most of 1943 Anton Geiser served as an armed SS Death’s Head guard at the Sachsenhausen Concentration Camp near Berlin, Germany; that Geiser’s duties included escorting prisoners to slave labor sites and standing guard from the camp’s watch towers; and that he was under orders to shoot any prisoner attempting escape. The court document also alleges that Geiser served as a guard at the Buchenwald Concentration Camp and the Arolsen subcamp. In addition, the court document charges that Geiser guarded prisoners as they were transported from Buchenwald to Arolsen and as they were evacuated from Arolsen as Allied forces approached.

U.S. courts have described how prisoners held at Sachsenhausen and Buchenwald were forced to engage in grueling physical labor under extraordinarily inhumane conditions. Many prisoners died from exhaustion or disease or were shot or hanged. During the period when Geiser served at Sachsenhausen, more than 3,000 prisoners were murdered or died from the brutal treatment.

“Through his service as a Nazi concentration camp guard, Anton Geiser helped subject thousands of innocent civilians to inhumane and frequently lethal treatment,” said Acting Assistant Attorney General Rita M. Glavin of the Criminal Division. “The United States will not provide a safe haven for such individuals.”

Geiser, 84, immigrated to the United States from Austria in October 1956, and he was naturalized as a U.S. citizen in March 1962. A federal judge in Pittsburgh revoked his citizenship in 2006 because his service to Nazi Germany made him ineligible to enter the United States. The court concluded that Geiser “clearly assisted in the persecution of people because of race, religion and national origin,” and that he therefore was legally barred from receiving a visa to come to the United States.

UBS Client Charged with Filing False Tax Return

2009-04-02T15:01:00.000-04:00

UBS Client Charged with Filing False Tax Return

2009-04-02T14:59:00.000-04:00

Steven Michael Rubinstein, of Boca Raton, Fla., has been charged, via criminal complaint, with filing a false income tax return, the Justice Department and Internal Revenue Service (IRS) announced today. Rubinstein made his initial appearance this morning before Magistrate Judge Barry S. Seltzer in Ft. Lauderdale, Fla. The defendant was temporarily detained, pending a bond hearing scheduled for Tuesday, April 7, 2009, at 10:00 a.m. before Magistrate Judge Seltzer.

According to court records, Rubinstein is a chartered accountant who works for an international company that assists clients to build, buy and sell yachts. On or about April 9, 2008, Rubinstein filed a U.S. Individual Income Tax Return Form 1040 for tax year 2007 which he signed under the penalties of perjury. The tax return failed to report that Rubinstein had an interest in, or signature authority over, a financial account at UBS in Switzerland. Additionally, Rubinstein failed to report the income he earned on any UBS Swiss bank accounts.

According to court records, Rubinstein was the beneficial owner of UBS accounts in the name of Hybridge International Ltd., a nominee British Virgin Island corporation. From 2001 through 2008, it is alleged that Rubinstein communicated with bankers at UBS via e-mail, telephone and in person about the purchase and sale of securities worth more than 4.5 million Swiss Francs, the conversion of investments from U.S. dollars to British Pounds, the deposit and transfer of funds into and out of the UBS Swiss accounts and the repatriation of approximately $3 million into the United States to purchase property and build Rubinstein’s personal residence in Boca Raton. Additionally, it is alleged that Rubinstein deposited and sold more than $2 million in South African Krugerrands through his UBS Swiss bank accounts.

In Feburary 2009, UBS entered into a deferred prosecution agreement in which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS agreed to provide the U.S. government with the identities of, and account information for, certain U.S. customers of UBS’s cross-border business.

"Six weeks ago, through the efforts of the Department of Justice and the Internal Revenue Service, UBS, the largest bank in Switzerland, admitted to illegally helping United States citizens evade their income taxes, and disclosed names of individual taxpayers. We expect that this prosecution is just the first of the prosecutions that will be brought, as we continue to review the information we have received from all sources," said Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division. "The Tax Division is committed to helping the IRS to ferret out and hold accountable taxpayers who are hiding assets in undisclosed foreign accounts."

"On February 19, 2009, we reached an agreement with UBS that included, for the first time, the disclosure of the identities of taxpayers that were illegally using Swiss bank accounts to evade U.S. taxes. Today is the first of the prosecutions resulting from that disclosure, but it will not be the last," said R. Alexander Acosta, U.S. Attorney for the Southern District of Florida. "It is our duty to those who pay their legal share of taxes to ensure that others do not use offshore schemes to evade payment of their taxes."

"Combating offshore tax evasion has been and will continue to be one of the IRS's top priorities," said IRS Commissioner Doug Shulman. "Today’s actions show the IRS is committed to pursuing people hiding income offshore. Anyone in this situation needs to immediately come in through our voluntary disclosure process before it’s too late. It's better to come clean now instead of waiting and facing a heavier price later."

Acting Assistant Attorney General DiCicco and U.S. Attorney Acosta commended the investigative efforts of the IRS agents involved in this case. The prosecution is being handled by Senior Litigation Counsel Kevin M. Downing and Trial Attorney Michael P. Ben’Ary of the Tax Division, and Assistant U.S. Attorney Jeffrey A. Neiman.

U.S. citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III of their individual income tax return.

Hitachi Executive Indicted

2009-03-31T19:16:00.000-04:00

A federal grand jury in San Francisco returned an indictment today charging an executive at Hitachi Displays Ltd. with participating in a global conspiracy to fix the prices of Thin Film Transistor-Liquid Crystal Display (TFT-LCD) panels sold to Dell Inc., the U.S. Department of Justice announced today.

The indictment, filed in U.S. District Court in San Francisco, charges Sakae Someya with conspiring with unnamed co-conspirators to suppress and eliminate competition by fixing the price of TFT-LCD panels sold to Dell for use in notebook computers. Someya participated in the conspiracy from on or about Jan. 1, 2001, to on or about Dec. 31, 2004. In 2006, the worldwide market for TFT-LCD panels was approximately $70 billion.

Including today’s indictment, four companies and eight individuals have been charged in the Department’s ongoing antitrust investigation into the TFT-LCD industry. To date, more than $585 million in fines have been imposed as a result of the TFT-LCD investigation.

"Practically every American consumer has been impacted by the TFT-LCD conspiracies," said Scott D. Hammond, Acting Assistant Attorney General in charge of the Department’s Antitrust Division. "Today the Department is holding a high-level executive accountable for his conduct."

Someya was charged with participating with co-conspirators in a conspiracy accomplished by the following means:

Attending bilateral meetings and engaging in conversations and communications in Japan, Korea and the United States to discuss the prices of TFT-LCD panels sold to Dell;

Agreeing during those meetings, conversations and communications to charge prices of TFT-LCD panels sold to Dell at certain levels;

Exchanging information on sales of TFT-LCD panels sold to Dell, for the purpose of monitoring and enforcing adherence to the agreed-upon prices;

Authorizing, ordering and consenting to the participation of subordinate employees in the conspiracy;

Issuing price quotations in accordance with the agreements reached;
Accepting payment for the supply of TFT-LCD panels sold at collusive, noncompetitive prices to Dell;

and Taking steps to conceal the conspiracy and conspiratorial contacts through various means.

Someya is charged with violating the Sherman Act, which carries a maximum fine of $1 million and 10 years imprisonment for individuals. The fine may be increased to twice the gain derived from the crime, or twice the loss suffered by the victims, if either of those amounts is greater than the statutory maximum.

On Dec. 15, 2008, LG Display Co. (LG) pleaded guilty to participating in a worldwide conspiracy to fix the price for TFT-LCD panels and was sentenced to pay a $400 million criminal fine – the second-largest fine in Antitrust Division history. On Dec. 16, 2008, Sharp Corp. pleaded guilty to participating in three separate conspiracies to fix the prices of TFT-LCD panels sold to Dell, Apple Computer Inc. and Motorola Inc. and was sentenced to pay a $120 million criminal fine. On Jan. 14, 2009, Chunghwa Picture Tubes Ltd. (Chunghwa) pleaded guilty to participating in the same worldwide conspiracy as LG, and was sentenced to pay a $65 million criminal fine.

In February 2009, former Chunghwa CEO Chieng-Hon "Frank" Lin and two Chunghwa executives, Chih-Chun "C.C." Liu and Hsueh-Lung "Brian" Lee, pleaded guilty to and were sentenced for participating in the same conspiracy as LG and Chunghwa. Lin was sentenced to serve nine months in prison and pay a $50,000 criminal fine. Liu was sentenced to serve seven months in prison and pay a $30,000 criminal fine. Lee was sentenced to serve six months in prison and pay a $20,000 criminal fine. Also in February 2009, LG executive Chang Suk "C.S." Chung pleaded guilty for his role in the same conspiracy as LG and Chunghwa. Chung was sentenced to serve seven months in prison and pay a $25,000 criminal fine.

On Feb. 3, 2009, a federal grand jury in San Francisco returned an indictment charging two former Chunghwa executives, Cheng Yuan Lin, aka C.Y. Lin, and Wen Jun Cheng, aka Tony Cheng, and one former executive from LG, Duk Mo Koo, for their participation in the same conspiracy as LG and Chunghwa. Warrants have been issued for the arrest of all three individuals.

On March 10, 2009, Hitachi Displays Ltd. agreed to plead guilty and pay a $31 million fine for its participation in a conspiracy to fix the prices of TFT-LCD panels sold to Dell for use in notebook computers from April 1, 2001, to March 31, 2004.

Someya’s indictment is the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the Federal Bureau of Investigation in San Francisco. Anyone with information concerning illegal conduct in the TFT-LCD industry is urged to call the San Francisco Field Office of the Antitrust Division at 415-436-6660.

Sweeping Reform Ends Harsh Sentences for Non-violent Addicts

2009-03-27T15:10:00.000-04:00

Sweeping Reform Ends Harsh Sentences for Non-violent Addicts

2009-03-27T15:08:00.000-04:00

Governor David A. Paterson, Senate Majority Leader Malcolm A. Smith and Assembly Speaker Sheldon Silver today announced a three-way agreement calling for sweeping reform of the State’s Rockefeller Drug Laws. The agreement eliminates the harsh sentences that the Rockefeller Drug Laws mandated by giving judges total authority to divert non-violent addicts to treatment and greatly expanding drug treatment programs. The agreement strikes a careful and appropriate balance to ensure that non-violent addicted offenders get the treatment they need while predatory kingpins get the punishment they deserve.

“I have been fighting to overhaul the drug laws and restore judicial discretion in narcotics cases since I began my career in public service as a State Senator nearly a quarter-century ago,” Governor Paterson said. “As a resident and representative of Harlem, I saw first-hand the devastating effect that drugs have on our communities, and the devastating effect that ill-considered drug laws and drug policies have had on individuals, families and neighborhoods.”

The Governor added: “I have seen too many lives destroyed by outrageously harsh and ineffective mandatory sentencing laws, and I have also seen too many lives ruined by despicable dealers who prey on the vulnerabilities and addictions of others. I believe this agreement strikes the right balance, and I urge the Legislature to enact it immediately, before more lives and communities are needlessly destroyed.”

Senate Majority Leader Smith said: “Today marks the beginning of a new era for New York’s sentencing laws. Rockefeller Drug Law reform will reverse years of ineffective criminal laws, protect communities and save taxpayers millions of dollars that were wasted on the current policy. With more money going toward treatment instead of costly imprisonment, our State will finally have a smarter policy, giving families a fighting chance in the war on drugs.”

Assembly Speaker Silver said: “Long before we had partners in either the Executive or in the Senate, the Assembly Majority was fighting for real reform of the Rockefeller Drug Laws. With this legislation, we have taken, at long last, a giant leap in establishing a more just, a more humane and a more effective drug policy in the State of New York. No longer will drug use and addiction be considered solely a criminal matter in this State, but a public health matter as well. This legislation recognizes that drug addiction is a disease which calls out for treatment rather than incarceration. I commend the tenacity and the dedication of my colleagues and the leadership of Assemblymembers Aubry, Lentol and Weinstein for their unyielding commitment to this issue.”

Senator Ruth Hassell-Thompson said: “Today, the Governor and the Legislature have agreed on a major change in public policy. We have created a balanced approach to drug addiction and crime. Our ability to reduce the flow of drugs in our communities is dependent on our ability to reduce the demand. We are now shifting resources to treat drug addiction as a medical problem. By diverting addicts to drug treatment courts, we believe we can get people off drugs and thereby reduce the demand for them. Study after study shows that our policies will make our communities safer and save the taxpayers millions of dollars. Today, we begin anew, offering offenders an opportunity to receive treatment, while maintaining that the safety and security of our neighborhoods, cities, and State remains paramount.”

Senator John L. Sampson said: “This is a promise made, and a promise kept. The Rockefeller Drug Laws have decimated communities and destroyed lives. Our Democratic conference said that once in the Majority we would be instrumental in making changes that positively impact all people across our State. Taking on this issue in our first year as the Majority shows the people that the Senate is serious and will not back down from the big issues. Reforms we made in 2004 were just a down payment, we’ve now paid off the mortgage. So I congratulate the Governor and members of the Assembly. I also congratulate my colleagues, Senators Schneiderman and Hassell-Thompson, who along with myself, were at the table and the forefront of the push to reform the Rockefeller Drug Laws.”

Senator Eric T. Schneiderman said: “This legislation delivers a big dose of sanity to our State’s sentencing practices. It will make our communities safer, save money and, most importantly, save lives. Thousands of people from every corner of this State will benefit from these reforms. Today NewYork chooses treatment over incarceration—30 years is enough.”

Assemblyman Jeffrion L. Aubry said: “My Assembly colleagues and I continue in our pledge not to give up our fight for greater reform of New York State’s ineffective and imprudent drug laws. While today’s agreement brings us closer to our goal, we recognize the need to do more. We will continue to work with our partners to completely reform the Rockefeller Drug Laws.”

Assemblyman Joseph R. Lentol said: “Thirty-six years ago I voted against the enactment of the Rockefeller Drug Laws. It was clear to me that simply locking drug offenders away without treatment would not be effective. I am pleased that we are finally towards turning this travesty around and judges will once again have more of the discretion they need.”

Assemblywoman Helene E. Weinstein said: “Judicial discretion has always been one of the core principles for which the Assembly has fought. With the expansion of drug courts and other options to treat addicts, we are moving toward dealing with the underlying problems of drug offenders – giving them the opportunity to get treatment and reduce recidivism in New York.”

The agreement will give judges the discretion to divert non-violent drug addicted individuals to treatment alternatives that are shown to be far more successful than prison in ending the cycle of addiction. Crucially, it also commits tens of millions of dollars to existing and new treatment programs.

“It makes no sense to give judges the authority to place non-violent addicted offenders into treatment if there is nowhere to treat them,” Governor Paterson said. “We must not only overhaul the drug laws, but also provide an infrastructure to ensure that we successfully rehabilitate those who are addicted.”

There are three significant pieces of the agreement. First, it creates a drug treatment program to be administered by drug court judges.

Under this program, judges will have discretion to place addicted first and second-time drug offenders into judicially-approved alcohol and substance abuse treatment – over the objectionsof prosecutors.
This agreement also recognizes that drug-addicted persons often commit other crimes, such as property and theft offenses. This agreement will make treatment available to these non-violent addicted offenders who commit these offenses.
The agreement maximizes an addicted offender’s chance of success in overcoming addiction, by relying on New York’s highly successful drug courts to administer the new treatment model. Drug courts use specially-trained judges who build relationships with offenders, closely monitor their progress and reward their successes. They are also staffed with case managers and vocational and employment specialists to assist offenders in obtaining education and jobs.
For the first time, the agreement gives judges the authority to dismiss all charges or seal the arrest and conviction records of offenders who successfully complete a judicially-sanctioned treatment program. It also gives judges complete discretion to determine an appropriate penalty for those offenders who are unable to succeed in the treatment program.
The agreement recognizes that relapses are often part of recovery from long-term drug addiction. It would require judges to consider whether a non-incarceratory remedy, such as heightened supervision or more frequent testing and treatment, could effectively be used if an offender under court supervision suffers a relapse.
The agreement vastly expands the availability of drug treatment programs and commits tens of millions of dollars to inpatient treatment programs, outpatient treatment programs and community residential facilities.
Recognizing that some offenders may require more supervision than can be provided through community-based drug treatment programs, the agreement expands the use of programs such as the “shock” incarceration program and the Willard drug treatment program, to give judges additional sentencing options for these offenders.
The agreement also permits the State Division of Parole to discharge early from continued parole supervision those drug offenders who have demonstrated success and rehabilitation while serving a term of post-release supervision.

Second, the agreement relieves new offenders from some of the old Rockefeller Drug Law’s mandatory sentencing provisions and provides additional relief to offenders who remain incarcerated under the old laws.

The agreement eliminates mandatory State prison sentences for first-time class B felony drug offenders and second-time non-violent class C, D and E drug offenders, making them eligible for a term of probation that could also include drug treatment, or a local jail sentence.
The agreement permits class B drug felons who meet eligibility criteria and who are currently serving Rockefeller Drug Law sentences to enter the six-month shock incarceration program when they are within three years of release. If successful, they would be entitled to early release from prison.
The agreement also requires the Board of Parole to consider current, lower sentencing ranges when deciding whether to release a class B drug offender to parole supervision.
Third, the agreement ensures that offenders who are not addicted, but who profit from the addictions of others, are appropriately sentenced to State prison.

The Governor believes that law enforcement should target drug kingpins instead of low-level drug users and his agreement creates a new drug “kingpin” offense that targets organized drug traffickers who profit from and prey on drug users.
The agreement also creates new crimes to ensure that adults who sell drugs to children are appropriately required to serve time in State prison.
Finally, the agreement retains mandatory prison sentences for class B predicate drug offenders, but allows judges to impose lower prison terms that are similar to those in other states.

Money Laundering Scheme Involving Bribes for Contracts at Kuwait Army Base

2009-03-21T13:39:00.000-04:00

Money Laundering Scheme Involving Bribes for Contracts at Kuwait Army Base

2009-03-21T13:35:00.000-04:00

The sister of a U.S. Army officer has pleaded guilty for her participation in a money-laundering scheme related to bribes paid for contracts awarded in support of the Iraq war, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and Acting Assistant Attorney General Scott D. Hammond of the Antitrust Division announced (March 19, 2009) today.

Carolyn Blake, of Sunnyvale, Texas, pleaded guilty to one count of money laundering conspiracy after accepting more than $3 million in bribe proceeds on behalf of her brother, Major John Cockerham. Blake admitted she expected to keep 10 percent of the money she collected. Blake pleaded guilty on March 18, 2009, before U.S. Magistrate Judge John W. Primomo in the Western District of Texas, San Antonio Division. At sentencing, Blake faces up to 20 years in prison and a fine of up to $500,000 or two times the value of the laundered funds. A sentencing date has not yet been set by the court.

John Cockerham pleaded guilty in January 2008 to participating in a complex bribery and money laundering scheme while working as an Army contracting officer in Kuwait. According to court documents, he was responsible for awarding contracts for services to be delivered to troops in Iraq, including bottled water. In return for awarding illegal contracts, Cockerham admitted to receiving more than $9 million in bribe proceeds. Once Cockerham agreed to take money in exchange for awarding contracts, he admitted he directed the contractors to pay Blake, his wife Melissa Cockerham, and others in order to conceal the receipt of bribe payments. Melissa Cockerham pleaded guilty in January 2008 to accepting more than $1 million on John Cockerham’s behalf, and admitted that she stored the cash in safe deposit boxes at banks in Kuwait and Dubai.

"By accepting bribe proceeds, Carolyn Blake aided a scheme that steered contracts to those willing to make illegal payments for contracts," said Acting Assistant Attorney General Rita M. Glavin. "The Department of Justice is committed to protecting the integrity of contracts involving U.S. funds and supplies for men and women in uniform"

Attorney Indicted for Conspiracy and Wire Fraud

2009-03-14T18:31:00.000-04:00

Attorney Indicted for Conspiracy and Wire Fraud

2009-03-14T18:29:00.000-04:00

A securities attorney was charged in an indictment unsealed today with participating in a stock registration evasion scheme involving nine different publicly traded companies and with defrauding investors in a manipulation scheme related to three of the companies, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced.

Phillip Windom Offill, Jr., of Dallas, was indicted on Thursday, March 12, 2009, in U.S. District Court in the Eastern District of Virginia. The defendant is charged with one count of conspiracy to commit registration violations, securities fraud and nine counts of wire fraud. The indictment also seeks approximately $15 million in forfeiture from the defendant.

In related actions, the U.S. Securities and Exchange Commission (SEC) has enforcement actions against Offill pending in federal district courts in Michigan and Texas.

Offill was taken into custody in Dallas this morning. He is scheduled for arraignment on Friday, March 27, 2009, at the federal courthouse in Alexandria, Va.

According to the indictment, Offill, an attorney in Dallas, was retained by David Stocker, a Phoenix attorney who pleaded guilty earlier this week to conspiracy to commit securities fraud in the Eastern District of Virginia. The indictment charges that Offill and Stocker employed a method to evade federal securities registration requirements in order to provide co-conspirators with millions of unregistered and "free-trading" shares of nine companies’ common stock that the co-conspirators could not have otherwise legally obtained. The indictment alleges many of the shares were subsequently sold by co-conspirators to the general investing public. By evading the registration requirements, the co-conspirators were able to hide from the investing public the actual financial condition and business operations of the companies. The companies included Emerging Holdings Inc.; MassClick Inc.; China Score Inc.; Auction Mills Inc.; Custom-Designed Compressor Systems Inc.; Ecogate Inc.; Media International Concepts Inc.; Vanquish Productions Inc.; and AVL Global Inc.

The indictment also alleges that, in connection with Emerging Holdings, MassClick, and China Score, Offill knowingly participated in a conspiracy known as a "pump-and-dump" scheme to manipulate the price of these companies’ securities. The indictment alleges that co-conspirators falsely manipulated the price and volume of some of the companies’ stock by making materially false and misleading statements in press releases and in spam emails distributed by co-conspirator Justin Medlin and other spammers to tens of millions of email addresses throughout the United States in an effort to create artificial demand for the three companies’ stock. After fraudulently "pumping" the market price and demand for the companies’ stock, co-conspirators allegedly "dumped" shares by selling them for large profits to the general investing public in the over-the-counter market through listings on Pink Sheets, an inter-dealer electronic quotation and trading system. These shares were purchased by unsuspecting investors, including investors in the Eastern District of Virginia, and were often rendered virtually worthless.

If convicted on all charges, Offill would face a maximum prison sentence of 185 years.

An indictment is merely a charge and a defendant is presumed innocent until proven guilty.

Nine other defendants have pleaded guilty and eight of them have been sentenced in federal court in Alexandria, Va., for their roles in related stock manipulation schemes. David B. Stocker pleaded guilty on Wednesday, March 11, 2009, and will be sentenced on November 6, 2009. Michael R. Saquella was sentenced to 10 years in prison; Justin Medlin was sentenced to six years in prison; Steven P. Luscko and Gregory A. Neu were each sentenced to five years in prison; Lawrence Kaplan was sentenced to three years in prison; Brian G. Brunette was sentenced to a one year in prison; Anthony Tarantola was sentenced to six months in prison; and Henry "Hank" Zemla was sentenced to three months in prison.

Mayor Bloomberg On The City's Child Care Tax Credit

2009-03-09T22:24:00.000-04:00

Mayor Bloomberg today announced that in its inaugural year, more than 50,000 New Yorkers claimed the City's Child Care Tax Credit, one of the first municipal child care tax credits in the nation. The Child Care Tax Credit which is designed to help more families afford child care and help more parents work full-time, is just one of many successful innovations under the Center for Economic Opportunity which oversees the City's ambitious anti-poverty strategy.

Former Memphis Police Officer Found Guilty on 44 Counts of Civil Rights, Narcotics, Robbery and Firearms Charges

2009-02-05T22:04:00.000-05:00

A federal jury in Memphis, Tenn., today found Arthur Sease IV, a former Memphis Police Department officer, guilty on forty-four counts of civil rights, narcotics, robbery and firearms offenses, Acting Assistant Attorney General Loretta King of the Civil Rights Division and U.S. Attorney Lawrence J. Laurenzi for the Western District of Tennessee announced.

The evidence at trial showed that from November 2003 through April 2006, Sease conspired with other Memphis police officers to use their authority as law enforcement officers, including their service weapons, to rob suspected drug dealers of cash, cocaine and marijuana. Sease and his co-conspirators would then resell the stolen drugs for their own profit. The government introduced proof of 16 separate robberies, as well as one attempted robbery. In each robbery, Sease or another uniformed Memphis police officer, would pull over a car containing suspected drug dealers and steal whatever drugs and cash that they found.

According to evidence presented at trial, Sease conspired with other Memphis drug dealers to arrange drug deals so that he could rob the other dealers when they arrived. On one occasion, evidence showed that Sease had a co-conspirator resell cocaine that Sease had stolen from one drug dealer to another drug dealer. Sease then pulled the buyer’s car over, stole the cocaine again and resold it. Sease and his co-conspirators kidnapped several drug dealers in an effort to get them to set up additional drug deals for Sease to rob.

Sease was a Memphis police officer from 2001 through 2005. He was discharged in 2005 for misconduct relating to one of the robberies. After he was fired, one of Sease’s co-conspirators, Andrew Hunt, became a Memphis reserve police officer and the two continued to rob drug dealers while pretending to be police officers, according to evidence presented at trial.

Five other individuals have already pleaded guilty in this case. Hunt pleaded guilty in September 2006 to a federal civil rights conspiracy, robbery affecting interstate commerce and drug distribution, and was sentenced in December 2006 to 19 years in prison. Former Memphis police officers Antoine Owens, Harold McCall and Alexander Johnson pleaded guilty to civil rights conspiracy charges and are currently awaiting sentencing. Laterrica Woods, a civilian who helped Sease and Hunt with one of their robberies, also pleaded guilty to a civil rights conspiracy and is scheduled to be sentenced in March 2009.

Arrests Made in Springfield, Mass., Church Arson

2009-01-19T08:18:00.000-05:00

(USDOJ) January 16, 2009 - Benjamin Haskell, 22, Michael Jacques, 24, and Thomas Gleason, 21, all of Springfield, Mass., were arrested early this morning on a civil rights violation, announced Acting Assistant Attorney General Grace Chung Becker; U.S. Attorney Michael J. Sullivan; Glenn N. Anderson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Boston Field Division; Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office; Colonel Mark Delaney, Superintendent of the Massachusetts State Police; William Bennett, Hampden County District Attorney; and Commissioner William J. Fitchet of the Springfield Police Department.

Victoria Ring

2009-01-14T11:00:00.001-05:00

Victoria Ring is a freelance Certified Paralegal, Certified Bankruptcy Assistant, and the CEO of two successful businesses. Victoria Ring is the reason why law firms should not outsource their legal work to other countries. Ms. Ring has over 20 years of small business marketing experience, which she has used to build a successful freelance business working from home. Moreover, Victoria Ring is credited with being the first paralegal to develop a virtual bankruptcy assistant service that provided online paralegal services to bankruptcy attorneys nationwide.

After building a successful business of her own (The Lawyer Assistant), Victoria Ring discovered that there was a lack of qualified individuals who could draft a well-detailed bankruptcy petition. So in 2003, Victoria Ring began training attorneys, paralegals, and other professionals on how to draft a well-detailed, professional looking bankruptcy petition. Additionally, Ms. Ring has assisted thousands of people in starting their own successful virtual bankruptcy home business. Victoria Rings site: http://www.713attorney.com/

Rite Aid Corporation and Subsidiaries Agree to Pay $5 Million in Civil Penalties

2009-01-13T10:02:00.000-05:00

WASHINGTON- Rite Aid Corporation (Rite Aid) and nine of its subsidiaries in eight states have agreed to pay $5 million in civil penalties to settle allegations of violations of the Controlled Substances Act (CSA).

In addition to the $5 million penalty, Rite Aid and all of its subsidiaries agreed to a compliance plan with the U.S. Drug Enforcement Administration (DEA) to ensure compliance with all requirements of the CSA and applicable DEA regulations and to prevent diversion of controlled substances. The compliance plan also requires Rite Aid to implement a pseudoephedrine and ephedrine tracking system in each of its 4,915 stores that is designed to prevent the abuse of pseudoephedrine and ephedrine products, which are used to make methamphetamine.

More Legal Blogs Coming Soon

2009-01-07T17:06:00.000-05:00

More legal Blogs will be added to the Trans Loop Directory. If you are interested in having your legal Blog listed in my directory, please, leave me a comment.