Washington, DC--(ENEWSPF)--April 2, 2015.  A former trader at ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this morning in federal court in New Jersey for his role in a scheme to falsify the books and records of a registered U.S. broker-dealer. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett of the U.S. Postal Inspection Service (USPIS) made the announcement.

Michael Craig Marshall, 47, of Bermuda, pleaded guilty before U.S. District Judge Jose L. Linares of the District of New Jersey, to one count of conspiracy to falsify the books and records of a broker-dealer.

According to court documents, CGM Limited and G-Trade Services, LLC (G-Trade) were both wholly owned subsidiaries of ConvergEx Group LLC (ConvergEx Group).  G-Trade was a registered U.S. broker-dealer.  As part of his plea today, Marshall admitted that clients placed orders to buy or sell securities with G-Trade, and G-Trade then routed the orders to CGM Limited.  Marshall further admitted that traders at CGM Limited regularly added a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders.  Employees of CGM Limited, G-Trade and other ConvergEx Group entities referred to mark-ups and mark-downs as “spread,” “trading profits” or “TP.” 

At his plea hearing today, Marshall admitted that he and the other coconspirators falsified G-Trade’s books and records.  In particular, Marshall admitted that he reviewed falsified transaction reports for two trades executed in August 2009 to verify that the falsified data regarding the quantities, prices and times of the purchases reflected on the report matched actual trades that had been executed on the market on Aug. 7, 2009, by both G-Trade’s client and other market participants.  The reports hid the fact that spread had been taken on the brokerage orders, Marshall admitted.  These reports were later provided to G-Trade’s client.

On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited each pleaded guilty to conspiracy to commit securities and wire fraud.  On the same day, ConvergEx Group entered into a deferred prosecution agreement.  Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

The case is being investigated by the FBI’s Washington Field Office and the USPIS offices in Washington, D.C. and New York.  The case is being prosecuted by Senior Trial Attorneys Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Leslie Schwartz of the District of New Jersey.  Fraud Section Assistant Chief Robert Zink and Trial Attorney Justin Goodyear also assisted with the investigation.  The Department appreciates the substantial assistance of the Securities and Exchange Commission.

Source: justice.gov

Defendant Allegedly Supported a Conspiracy to Kill Americans and Carry Out Attacks Against U.S. Military

Washington, DC--(ENEWSPF)--April 2, 2015  U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that a complaint and arrest warrant were unsealed today in federal court in the Eastern District of New York charging Muhanad Mahmoud Al Farekh, an American citizen, with conspiracy to provide material support to terrorists.  Farekh’s initial appearance is scheduled today before U.S. Magistrate Judge Viktor V. Pohorelsky of the Eastern District of New York.  Farekh was deported from Pakistan to the United States and arrested pursuant to the pending warrant.

As alleged in the complaint, Farekh conspired with others to provide material support to terrorists and specifically to provide personnel to be used in support of efforts to kill American citizens and members of the U.S. military abroad.  In approximately 2007, Farekh, an individual named Ferid Imam and a third co-conspirator departed Canada for Pakistan with the intention of fighting against American forces.  They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs.  According to public testimony in previous criminal trials in the Eastern District of New York, in approximately September 2008, Ferid Imam provided weapons and other military-type training at an al-Qaeda training camp in Pakistan to three individuals – Najibullah Zazi, Zarein Ahmedzay and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system.  Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life imprisonment.  Ferid Imam has also been indicted for his role in the plot. 

“Today’s arrest demonstrates that there is no escape from the long reach of our law for American citizens who seek to do harm to our country on behalf of violent terrorist,” said U.S. Attorney Lynch.  “We will continue to use every tool at our disposal to bring such individuals to justice.”

“Muhanad Mahmoud Al Farekh is alleged to have conspired with others to provide material support to terrorists,” said Assistant Attorney General Carlin.  “Counterterrorism is the highest priority of the National Security Division, and we will continue to be tireless in our pursuit of those who wish to harm the United States or its people.  I would like to thank the many agents, analysts and prosecutors who are responsible for the charges in this case.”           

“Al Farekh allegedly provided material support to terrorists with every intention of becoming a martyr,” said Assistant Director in Charge Rodriguez.  “Today members of our military are safer because of the relentless investigative work by the FBI’s Manhattan-based Joint Terrorism Task Force.”

“The NYPD will continue to work with our law enforcement partners to investigate and arrest individuals who choose to work alongside terrorist organizations and threaten the lives of Americans,” said Commissioner Bratton.  “We applaud the investigators and prosecutors whose efforts led to this arrest.”       

If convicted, the defendant faces a maximum sentence of 15 years’ imprisonment.                

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

The government’s case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad and Richard M. Tucker of the Eastern District of New York, with assistance provided by Trial Attorney Bridget Behling of the Justice Department’s National Security Division.

Related Material:

Farekh Complaint

Source: justice.gov

Washington, DC--(ENEWSPF)--April 2, 2015. The Justice Department announced today that Medtronic plc and affiliated Medtronic companies, Medtronic Inc., Medtronic USA Inc., and Medtronic Sofamor Danek USA Inc., have agreed to pay $4.41 million to the United States to resolve allegations that they violated the False Claims Act by making false statements to the U.S. Department of Veterans Affairs (VA) and the U.S. Department of Defense (DoD) regarding the country of origin of certain Medtronic products sold to the United States. 

Source: state.gov

Washington, DC—(ENEWSPF)—April 3, 2015. The Justice Department has filed suit in the U.S. District Court for the District of Massachusetts against Michael P. Ferry Inc. and its owner, Michael P. Ferry (Ferry), to block them from violating the Federal Food, Drug and Cosmetic Act (FDCA) in connection with their alleged unlawful use of new animal drugs in cows slaughtered for food.  The Justice Department filed the suit on behalf of the U.S. Food and Drug Administration (FDA). 

The defendants have agreed to settle the litigation and be bound by a consent decree of permanent injunction that enjoins them from committing violations of the FDCA.  The proposed consent decree has been filed with the court and is awaiting judicial approval.

“Failing to maintain appropriate controls in food-producing animals bound for slaughter jeopardizes the public health,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The resolution of this matter ensures that, should it choose to re-enter business, this farm will have the necessary procedures in place to ensure that it delivers safe food to consumers.”

The defendants are primarily in the dairy business, but also sell cows for slaughter as food.  Government inspections as recently as June 2014 revealed that Ferry sold animals for slaughter containing excessive and illegal drug residues in their edible tissues.  The inspections also revealed that the defendants failed to maintain complete records concerning the medication of their animals.  The FDA issued a warning letter to the farm concerning its violations in 2011 and also held a regulatory meeting with the farm in 2013 to discuss unlawful residues found in its cattle.  The complaint states that consumers of edible animal tissues who are susceptible to antibiotics may experience severe allergic reactions as a result of ingesting food containing out-of-tolerance antibiotic levels.  Furthermore, food containing above-tolerance antibiotic levels contributes to the development of antibiotic-resistant strains of bacteria in those who eat or handle food containing residues of such drugs.

Under the consent decree, the defendants have agreed to shutter their business selling animals for slaughter.  To resume selling cows for slaughter, the consent decree requires the defendants to take certain actions and institute measures that must be confirmed by the FDA as compliant.

This matter was handled by Trial Attorney David Sullivan of the Civil Division’s Consumer Protection Branch and Scott Kaplan of the FDA’s Office of the Chief Counsel.

Related Material:

Complaint

Consent Decree

Source: justice.gov

Washington, DC—(ENEWSPF)—April 3, 2015. Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania announced that Keonna Thomas, also known as Fatayat Al Khilafah and YoungLioness, 30, of Philadelphia, was charged today by criminal complaint with knowingly attempting to provide material support and resources, including herself as personnel, to a designated foreign terrorist organization.  According to the complaint, Thomas attempted to travel overseas in order to join and fight with the Islamic State of Iraq and the Levant (ISIL).

As alleged in the complaint, Thomas posted on Twitter the following statement: “If we truly knew the realities . . . we all would be rushing to join our brothers in the front lines pray ALLAH accept us as shuhada [martyrs].”  The complaint further alleges that Thomas applied for a U.S. passport and advised an associate that she had deactivated her Twitter “till i leave for sham [greater Syria]. . . .  don’t want to draw attention of the kuffar [non-believers].”  Thomas then allegedly engaged in electronic communications with an ISIL fighter in Syria, who asked Thomas if she wanted to be a part of a martyrdom operation.  Thomas responded by stating, “that would be amazing….a girl can only wish.”  Thomas also allegedly conducted online research into various indirect travel routes to Turkey, and allegedly purchased an electronic visa to Turkey.  The complaint alleges that Turkey is known to be the most common and most direct transit point for individuals traveling from locations in Europe who are seeking to enter Syria and join ISIL.   On or about March 26, 2015, Thomas allegedly purchased airline tickets to fly overseas on March 29, 2015. 

If convicted, the defendant faces a maximum possible sentence of 15 years’ incarceration.

The case was investigated by the FBI’s Joint Terrorism Task Force and the Philadelphia Police Department.  It is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams of the Eastern District of Pennsylvania and Trial Attorney Paul Casey of the Justice Department’s National Security Division.

A criminal complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Related Material:

Thomas Complaint

Source: justice.gov

Detroit, MI –(ENEWSPF)—April 6, 2015. A Fenton, Michigan man pleaded guilty to one count of filing false tax returns, United States Attorney Barbara L. McQuade announced today.

United States Attorney McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service Criminal Investigation.

Entering the guilty plea before United States District Judge Judith E. Levy was Kleppe Houston, 50. According to court records, Houston owned Co-HR, LLC, a human resource management firm that was based in Pontiac, Michigan.   Co-HR, LLC provided payroll services to its clients. Houston prepared and filed five Employers’ Quarterly Federal Tax Returns for these employers, falsely reporting that more than $393,381 in payroll taxes had been remitted with the returns. Houston knew, but his clients did not, that the amount remitted with each return was substantially less than reported.

Under his plea agreement, Kleppe is being held responsible for failing to remit a total of $629,746 in payroll withholding taxes to the Internal Revenue Service.

“Our tax system depends on the honest cooperation and integrity of every citizen and business owner, said Koopman. “Employers that engage payroll service companies, and their employees whose wages have amounts withheld for payroll tax purposes, have every right to expect that those funds will be used for the payment of their taxes. The government has the same expectation.”

Filing false tax returns carries a maximum penalty of 3 years’ imprisonment, a fine of $250,000 and an order of restitution. Sentencing is scheduled for July 13, 2015, before Judge Levy.

The case was investigated by special agents of the IRS Criminal Investigation.

Source: www.irs.gov

Detroit, MI –(ENEWSPF)—April 6, 2015. On March 26, in the U.S. District Court for the Eastern District of Michigan, a federal jury convicted Irvin Flemming, formerly of Troy, Michigan, of structuring financial transactions, announced U.S. Attorney Barbara L. McQuade.

McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation.

At trial, witness testimony and exhibits established that Flemming supported convicted narcotics trafficker Carlos Powell’s large-scale drug operation by making financial transactions in a manner that was meant to conceal Powell’s illegal activities and the true source of the funds from law enforcement. In September and October 2010, Flemming structured, or caused to be structured, approximately $230,824 in cash that belonged to Powell into bank accounts that he controlled. By structuring the deposits of the cash into amounts of $10,000 or less, Flemming caused the financial institutions to fail to file the legal requirement to report transactions exceeding $10,000.

Of that $230,824, Flemming caused a wire transfer in the amount of $152,372.89 to be made on October 25, 2010, to purchase a condominium in Atlanta, Georgia. The purchase was made in the name of Grand Towers, Inc., a company whose president is Carlos Ellis Powell.  Flemming also used the funds to purchase high-end vehicles including a Hummer, a Mercedes Benz and a Bentley.

A sentencing hearing for Flemming was set by U.S. District Court Judge Stephen J. Murphy, III for July 24, 2015.   The maximum penalty for structuring transactions to evade reporting requirements is up to 5 years imprisonment.

The investigation of the Carlos Powell drug trafficking organization was a multi-year investigation and included agents from the Drug Enforcement Agency, Internal Revenue Service – Criminal Investigation, Immigration and Customs, Homeland Security and local officers in Northville, Plymouth, Warren, Redford, Detroit, Macomb County and the Michigan State Police. AUSA Julie Beck prosecuted this case.

Source: www.irs.gov

Washington, DC--(ENEWSPF)--April 6, 2015. A former executive of an e-commerce seller of posters, prints and framed art has agreed to plead guilty for conspiring to fix the prices of posters sold online, the Department of Justice announced.

A one-count felony charge was filed today in the U.S. District Court of the Northern District of California in San Francisco against David Topkins.  According to the charge, Topkins and his co-conspirators fixed the prices of certain posters sold online through Amazon Marketplace from as early as September 2013 until in or about January 2014.  Topkins also has agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation.  The plea agreement is subject to court approval.

“Today’s announcement represents the division’s first criminal prosecution against a conspiracy specifically targeting e-commerce,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division.  “We will not tolerate anticompetitive conduct, whether it occurs in a smoke-filled room or over the Internet using complex pricing algorithms.  American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses."

According to the charge, Topkins and his co-conspirators agreed to fix the prices of certain posters sold in the United States through Amazon Marketplace.  To implement their agreements, the defendant and his co-conspirators adopted specific pricing algorithms for the sale of certain posters with the goal of coordinating changes to their respective prices and wrote computer code that instructed algorithm-based software to set prices in conformity with this agreement.  

“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations seeking to victimize online consumers through illegal anticompetitive conduct,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office.  “The FBI is committed to investigating price fixing schemes and remains unwavering in our dedication to bring those responsible for theses illegal conspiracies to justice.”                   

Topkins is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years and a fine of $1 million for individuals.  The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

This prosecution arose from an ongoing federal antitrust investigation into price fixing in the online wall décor industry, which is being conducted by the Antitrust Division’s San Francisco Office with the assistance of the FBI’s San Francisco Field Office.  Anyone with information on price fixing or other anticompetitive conduct related to other products in the wall décor industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

Related Material:

Topkins Information

Source: justice.gov

Defendant Allegedly is Part of ISIL Foreign Fighter Local Support Network; Travelled to Kennedy Airport on Feb. 25 to Provide Cash to Co-Defendant Shortly Before Co-Defendant Was Arrested Attempting to Board Flight to Turkey to Join ISIL

Washington, DC--(ENEWSPF)--April 6, 2015.  U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department and Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York announced that earlier today, a federal grand jury in Brooklyn, New York, returned a superseding indictment charging Dilkhayot Kasimov, 26, a Brooklyn resident, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.  The defendant, who is charged along with three other Brooklyn residents whose arrests were first announced on Feb. 25, 2015, is scheduled to be arraigned on Wednesday, April 8, 2015, at 2 p.m., before U.S. District Judge William F. Kuntz II of the Eastern District of New York.

As alleged in the superseding indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Kasimov’s co-defendants, came to the attention of law enforcement after posting on an Uzbek-language website that propagates ISIL’s ideology.  The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL.  Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul.  Juraboev previously purchased a plane ticket to travel from New York to Istanbul and had been scheduled to leave the United States in March 2015.

Working closely with co-defendant Abror Habibov, Kasimov allegedly helped fund Saidakhmetov’s efforts to join ISIL.  Kasimov and Habibov collected over $1,600 from multiple individuals for Saidakhmetov to use in Syria.  Kasimov thereafter delivered the money to Saidakhmetov at Kennedy Airport shortly before Saidakhmetov was apprehended trying to board his flight in February.  Additional investigation uncovered electronic messages in which Kasimov encouraged others to participate in violent jihad and made clear his role in facilitating the travel of foreign fighters to Syria.

“This defendant is the fourth Brooklyn resident charged as part of the same network of individuals who are alleged to have conspired and attempted to provide material support to ISIL,” said U.S. Attorney Lynch.  “Terrorist support networks like the one this defendant was involved in offer critical funding, travel logistics, and encouragement to persons seeking to join ISIL and other foreign terrorist organizations.  We will remain vigilant in our efforts to stem the flow of foreign fighters to Syria and to disrupt and dismantle the networks, here and abroad, that support them.”  U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region.

“Dilkhayot Kasimov allegedly attempted and conspired with others to provide material support to ISIL,” said Assistant Attorney General Carlin.  “The National Security Division remains committed to holding accountable all who seek to provide material support to designated foreign terrorist organizations.  I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

“Kasimov served as a money man in support of a co-defendant’s efforts to join ISIL,” said Assistant Director in Charge Rodriguez.  “He provided encouragement and facilitated travel for foreign fighters.  As the recent series of cases indicate, we will pursue every lead and every person who succumbs to this radical agenda.  It is my hope that these cases deter others from sharing Kasimov’s fate: being under arrest and in trouble with the law.”

“Money is the oxygen that fuels terrorism,” said Commissioner Bratton.  “This investigation proves again that we will leave no stone unturned to disrupt the finance, support, or membership in terrorist organizations like ISIL.”

“These arrests are the culmination of an extensive joint law enforcement effort to disrupt the recruitment of alleged terrorist sympathizers,” said Special Agent in Charge Parmer.  “ICE-HSI will continue to use its unique immigration and customs authorities to assist our domestic and international law enforcement partners to stop jihadists from supporting terrorist organizations such as ISIL.”

If convicted, the defendant faces a maximum sentence of 30 years in prison.  The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s National Security Division.

Related Material:

Kasimov Superseding Indictment

Source: justice.gov

Washington, DC—(ENEWSPF)—April 7, 2015. On Apr. 7, 2015, a federal grand jury in Knoxville, Tennessee, indicted Marcus Washington, 37, of Farragut, Tenn., charging him with  two counts of sex trafficking by force, threats of force, fraud and coercion; conspiracy to possess with the intent to distribute a controlled substance; and possession with the intent to distribute a controlled substance.

The indictment, on file with the U.S. District Court, charges Washington with separate counts of sex trafficking by force, threats of force, fraud and coercion in relation to two victims.  He is also charged with conspiring with others to possess with the intent to distribute, and the distribution of, oxycodone, a Schedule II controlled substance, and a substance containing a detectable amount of cocaine, also a Schedule II controlled substance.  Lastly, Washington is charged with possessing with the intent to distribute oxycodone.

Washington faces a mandatory minimum of 15 years incarceration if convicted of either trafficking charge.  Both narcotics charges carry a statutory maximum of 20 years in prison.

This case was investigated by the FBI.  The Knox County Sheriff’s Office and the Knox County Attorney General’s Office provided significant support in this investigation.  The case is being prosecuted by Trial Attorney Nicholas Durham of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Brooklyn Sawyers of the U.S. Attorney’s Office for the Eastern District of Tennessee. 

Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.

Related Material:

Marcus Washington Indictment

Source: justice.gov

Washington, DC-(ENEWSPF)--April 9, 2015.  Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and Special Agent in Charge Robert J. Shields Jr. of the FBI’s Milwaukee Division announced that Joshua Ray Van Haften, 34, of Madison, Wisconsin, has been charged with attempting to provide material support and resources, namely himself as personnel, to a foreign terrorist organization.  As alleged in the complaint, Van Haften intended to travel into Iraq or Syria to join the Islamic State of Iraq and the Levant (ISIL). 

The complaint alleges that Van Haften left the United States on Aug. 26, 2014, and traveled to Istanbul.  As alleged in the complaint, Turkey shares a land border with Syria and is known to be an entry point into Syria for those who wish to join ISIL. 

“Van Haften traveled overseas for the alleged purpose of joining and attempting to provide material support to ISIL,” said Assistant Attorney General Carlin.  “Stemming the flow of foreign fighters to Iraq and Syria and holding accountable those who attempt to provide material support to designated foreign terrorist organizations remains a top priority for the National Security Division.  I would like to thank all the agents, analysts and prosecutors who are responsible for this case.”

“We will continue to work with our law enforcement partners to investigate, arrest, and vigorously prosecute all extremists who choose to aid ISIL, or any other terrorist organization, and to stop them before they harm the United States or our allies,” said U.S. Attorney Vaudreuil.  “We also remain committed to working with dedicated community members to bring this cycle to an end.”

“This arrest underscores the importance of our JTTF law enforcement partnerships to bring those to justice who provide support and resources to terrorist organizations such as ISIL,” said Special Agent in Charge Shields.  “We hope this arrest will serve as a deterrent for others who may be terrorist sympathizers here in Wisconsin, across the nation or abroad: they will be held accountable for support of terrorism against our citizens and our international partners.”

Van Haften was arrested at O’Hare Airport in Chicago yesterday evening after his arrival in custody on an international flight from Turkey. 

Van Haften will make an initial appearance in U.S. District Court at 9:45 a.m. CDT today before U.S. Magistrate Judge Stephen L. Crocker of the Western District of Wisconsin.   If convicted, the defendant faces a maximum penalty of 15 years in federal prison. 

This case was investigated by the Joint Terrorism Task Force, the members of which include the FBI, the Wisconsin Department of Justice’s Division of Criminal Investigation, the Dane County Sheriff’s Office and the University of Wisconsin Police Department.  Assistance was also provided by the Department of Homeland Security.  The case is being prosecuted by U.S. Attorney Vaudreuil and Assistant U.S. Attorney Jeffrey Anderson of the Western District of Wisconsin, and Trial Attorney Lolita Lukose of the Justice Department’s National Security Division.

The charges contained a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

Related Material:

Van Haften Complaint

Source: justice.gov

Washington, DC--(ENEWSPF)--April 9, 2015.  A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W.  Oswalt made the announcement.  U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.

Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking.  Lee served as an OSP Trooper from approximately January 2006 until October 2013.  As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends.  Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs.  Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.

This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP.  The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio.  Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.

Source: justice.gov

United States Sues Two Other Companies and Three Individuals for Similar Violations

Washington, DC--(ENEWSPF)--April 9, 2014.  Cardiovascular testing disease laboratories Health Diagnostics Laboratory Inc. (HDL), of Richmond, Virginia, and Singulex Inc., of Alameda, California, have agreed to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing, the Department of Justice announced today.  Under the settlements, which stem from three related whistleblower actions filed under the federal False Claims Act, HDL will pay $47 million and Singulex will pay $1.5 million.  The government also intervened in the lawsuits as to similar allegations against another laboratory, Berkeley HeartLab Inc.; a marketing company, BlueWave Healthcare Consultants Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former CEO Latonya Mallory of HDL.

“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer for the Justice Department’s Civil Division.  “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”

As alleged in the lawsuits, HDL, Singulex and Berkeley induced physicians to refer patients to them for blood tests by paying them processing and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles.  In addition, HDL and Singulex allegedly conspired with BlueWave to offer these inducements on behalf of HDL and Singulex.  As a result, physicians allegedly referred patients to HDL, Singulex and Berkeley for medically unnecessary tests, which were then billed to federal health care programs, including Medicare.

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs.  The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.  

“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud, including matters brought to our attention by whistleblowers,” said U.S. Attorney Bill Nettles of the District of South Carolina.  “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”

“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones,” said Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia.  “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests.  This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers.”

As part of the settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).  Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.

“Today’s announcement that DOJ has settled in part and intervened in part in these whistleblower actions reflects the commitment by DOJ, our agency and our other law enforcement partners to ferret out alleged improper Medicare billings by health care companies that are looking to increase their profits at the expense of taxpayers,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office.

The lawsuits were filed by Dr. Michael Mayes, Scarlett Lutz, Kayla Webster and Chris Reidel under the qui tam, or whistleblower, provisions of the False Claims Act.  Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The whistleblowers’ share of the settlements has yet to be determined.  The act also permits the United States to intervene in and take over a whistleblower suit, as it has done in part in the three actions.  The United States advised the court that it would be filing its own complaint against the corporate and individual defendants against whom it has intervened within 120 days.

Two of the lawsuits separately allege that the former CEO Phillipe Goix of Singulex and Quest Diagnostics Inc., parent of Berkeley, are liable for the scheme; the government declined to intervene in the allegations against Goix and Quest. 

The government’s actions illustrate its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $23.9 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

These matters were investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the District of South Carolina, the District of Columbia and the Middle District of North Carolina, HHS-OIG, the FBI, the U.S. Office of Personnel Management’s Office of Inspector General, and the Department of Defense’s Office of Inspector General Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.); and United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.).  The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 9, 2015.  A member of the identity theft and credit card fraud ring known as “Carder.su” was sentenced today to 150 months in federal prison for selling stolen and counterfeit credit cards over the Internet.  He was further ordered to pay $50.8 million in restitution.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Las Vegas Field Office made the announcement.  U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.

“Criminal cyber organizations like Carder.su threaten not just U.S. citizens but people in every corner of the globe,” said Assistant Attorney General Caldwell.  “Managers in Russia seamlessly ran their criminal enterprise online using, among others, a counterfeit card vendor from New Jersey, with whom they communicated through screen name aliases.  The success in this case was achieved through equally seamless cooperation with our foreign law enforcement partners and effective use of the RICO statute.  As more countries work with us to fight these organizations, we will continue to evolve to meet this growing threat.”

“Mr. Smith’s crimes were very serious and justify a lengthy prison sentence,” said U.S. Attorney Bogden.  “He admitted that he caused a loss of seven to $20 million involving over 250 victims, and that he obstructed justice when he fled to Jamaica while released on bond awaiting trial.  We are working closely with our international, federal, state and local law enforcement partners to make sure that the perpetrators of these sorts of crimes are prosecuted no matter where in the world they commit their crimes or attempt to flee.”

“As this sentence demonstrates, cyber-criminals who purposely harm innocent Americans and compromise our financial system and global commerce will be aggressively pursued, investigated and prosecuted,” said Assistant Special Agent in Charge Harris.  “These criminals may believe they can escape detection by fleeing the country and hiding behind their computer screens, but as this case shows, cyberspace is not a refuge from justice.”

Jermaine Smith, aka “SirCharlie57,” aka “Fairbusinessman,” 34, of East Orange, New Jersey, pleaded guilty in October 2014 to one count of participating in a racketeer influenced corrupt organization.   

During his guilty plea, Smith admitted that in May 2009 he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime.  Specifically, Smith admitted that he operated as a vendor on the organization’s websites, using the “SirCharlie57” and “Fairbusinessman” nicknames.  While acting as a vendor under those online monikers, Smith sold counterfeit credit cards to an undercover special agent.  Those counterfeit credit cards were successfully processed for fingerprints, identifying Smith as the true user of the online screennames.  In addition to the sale of the counterfeit credit cards, Smith admitted that he possessed over 2,150 stolen credit and debit card account numbers. 

While on pretrial release in this case, Smith removed an electronic monitoring device from his person and fled to Jamaica.  He was arrested four months later and returned to Nevada.

Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization.  To date, 26 individuals have been convicted and the rest are either fugitives or are pending trial.   

The cases were investigated by ICE-HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.

This prosecution is in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants.  For more information on the task force, please visit www.StopFraud.gov.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 9, 2015.  The Justice Department announced today that Shelbie Brooke Richards, 21, of Pearl, Mississippi, and Sarah Adelia Graves, 22, of Crystal Springs, Mississippi, were sentenced today in U.S. District Court in Jackson for their roles in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011.  Richards had previously pleaded guilty to one count of conspiracy and one count of misprision for her role in the conspiracy and the cover-up.  Graves previously pleaded guilty to one count of conspiracy for her role.  Richards was sentenced to 96 months in prison and Graves was sentenced to 60 months in prison.  A restitution hearing will be set for a later date.

Six other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi, and William Kyle Montgomery, 25, of Puckett, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, and 224 months, respectively, for their roles in the conspiracy.  Two other defendants involved in related cases—John Louis Blalack, 21, and Robert Henry Rice, 24, both of Brandon, Mississippi—are awaiting sentencing.

“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”

“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and others civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.

“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI in Mississippi.  “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin."

In prior court hearings, the defendants had admitted that beginning in the spring of 2011, they and others conspired with one another to harass and assault African Americans in and around Jackson.  On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans.  They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault.  The co-conspirators would often boast about these racially motivated assaults.

Richards and Graves admitted their involvement in two racially motivated assaults, including the beating and killing of James Craig Anderson.  Specifically, they admitted that in the early morning hours of June 26, 2011, they and five other co-conspirators agreed to carry out their plan to find, harass and assault African Americans.  At around 4:15 a.m., Montgomery, John Aaron Rice, Blalack, and Butlers drove to west Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.

At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue.  They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated.  Rice and Blalack got out of the Jeep to distract Anderson while they waited for the Richards, Graves, and Dedmon to arrive.  After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson.  After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep.  Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death.  Richards initially falsely told law enforcement officials that she did not know the reason for the assault and did not encourage Dedmon to hit the victim with the truck.  Richards later admitted that she knew that the assault was racially motivated and that she and Graves encouraged Dedmon to commit the fatal assault.  

This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office.  This case was investigated by the Jackson Division of the FBI and the Jackson Police Department.  It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.

Source: justice.gov

MICHIGAN—(ENEWSPF)—April 10, 2015. A Ypsilanti man was sentenced yesterday for his involvement in a scheme to defraud the Internal Revenue Service, announced United States Attorney Barbara L McQuade.

McQuade was joined in the announcement by Jarod J. Koopman, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.

Receiving the sentence from U.S. District Judge Gershwin A. Drain was Antonio R. Lundy, 43. Lundy pleaded guilty before Judge Drain in December 2014.   Judge Drain sentenced Lundy to 18 months in prison and three years’ supervised release and ordered him to pay restitution to the IRS in the amount of $251,900.

According to court records, Lundy participated in a scheme to defraud the Internal Revenue Service through the filing of numerous income tax returns in the names of individuals whose personal identification information (PII) had been either obtained with their consent or obtained illegally. From September 2011 through April 2012, Lundy provided the home addresses and PII of individuals to others members of the scheme. The information provided by Lundy was used to prepare and file fraudulent federal income tax returns, which requested refunds based on reported tax withholdings that were false. The refunds were loaded onto Turbo Tax Visa debit cards and mailed to the home addresses provided by Lundy. Lundy used the debit cards to withdraw cash at ATMs, and his cash withdrawals totaled $251,900. Overall, the scheme involved approximately 180 fraudulent returns that requested approximately $1.7 million in refunds.

“IRS-CI is committed to working with our law enforcement partners to combat identity theft. Investigating and prosecuting identity thieves who attempt to defraud the government by filing fraudulent income tax returns remains a top priority for the IRS,” said IRS Criminal Investigation Special Agent in Charge Koopman.

The case was investigated by special agents of the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.

Source: United States Attorney’s Office Eastern District of Michigan  

Washington, DC--(ENEWSPF)--April 10, 2015.  A Topeka, Kansas, man has been charged in federal court with attempting to detonate a vehicle bomb at Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Barry Grissom of the District of Kansas and Special Agent in Charge Eric K. Jackson of the FBI’s Kansas City Division.  The defendant was arrested as part of an FBI investigation, and the device used by the defendant was, in fact, inert.         

John T. Booker Jr., 20, of Topeka, Kansas, was charged in a criminal complaint unsealed today with one count of attempting to use a weapon of mass destruction (explosives), one count of attempting to damage property by means of an explosive and one count of attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Booker is expected to make an initial appearance this afternoon before U.S. District Judge Daniel Crabtree of the District of Kansas in federal court in Topeka.

Booker was arrested this morning near Manhattan, as he completed his final preparations to detonate a vehicle bomb targeting U.S. military personnel.

“As alleged in the complaint, John Booker attempted to attack U.S. military personnel on U.S. soil purportedly in the name of ISIL,” said Assistant Attorney General Carlin.  “Thanks to the efforts of the law enforcement community, we were able to safely disrupt this threat to the brave men and women who serve our country.  Protecting American lives by identifying and bringing to justice those who wish to harm U.S. citizens remains the National Security Division’s number one priority.”

“We face a continued threat from individuals within our own borders who may be motivated by a variety of causes,” said U.S. Attorney Grissom.  “Anyone who seeks to harm this nation and its people will be brought to justice.”

“I want to assure the public there was never any breach of Fort Riley Military Base, nor was the safety or the security of the base or its personnel ever at risk,” said FBI Special Agent in Charge Jackson.  “Recently the Command Staff at Fort Riley has been working hand in hand with law enforcement to ensure the utmost security and protection for the men and women who serve our country, and the surrounding community that supports the base."

Booker is alleged to have spent months discussing multiple plans before deciding on a plan that involved the execution of a suicide bombing mission.

The complaint alleges Booker told another person “that detonating a suicide bomb is his number one aspiration because he couldn’t be captured, all evidence would be destroyed, and he would be guaranteed to hit his target.”  Booker identified Fort Riley as a good target, “because the post is famous and there are a lot of soldiers stationed there,” the complaint alleges.

It is alleged that since March 2015, Booker plotted to construct an explosive device for an attack on American soil.  It is alleged he repeatedly stated that he desired to engage in violent jihad on behalf of ISIL.  Over a period of months, he took a series of actions to advance his plot.  As alleged in the complaint, Booker assisted in acquiring components for a vehicle bomb, produced a propaganda video, rented a storage locker to store components for the explosive device, identified Fort Riley as the target and talked about his commitment to trigger the device himself and become a martyr.

FBI Evidence Response Teams are executing search warrants related to the case.

If convicted, Booker would face a maximum penalty of life in prison. 

The investigation was conducted by the FBI Joint Terrorism Task Force, including members from the FBI’s Kansas City Division, the Topeka Police Department and the Kansas Highway Patrol.

The case is being prosecuted by Assistant U.S. Attorneys Tony Mattivi and David Smith of the District of Kansas, and Trial Attorneys Josh Parecki and Rebecca Magnone of the National Security Division’s Counterterrorism Section.

In all cases, defendants are presumed innocent until and unless proven guilty.  The charges merely contain allegations of criminal activity. 

Related Material:

Booker Complaint

Source: justice.gov

Washington, DC--(ENEWSPF)--April 10, 2015.  A Chino, California, businessman was sentenced to serve more than four years in prison yesterday in the U.S. District Court in Las Vegas for his role in a conspiracy to promote and sell fraudulent tax products, including a product called Tax Break 2000, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.

Daniel William Porter pleaded guilty to one count of conspiracy to defraud the United States.  U.S. District Judge Miranda Du sentenced Porter to serve 55 months in prison and three years of supervised release following his prison sentence.  As part of his plea agreement, Porter agreed to cooperate with the government and assist with its ongoing investigation into entities and individuals involved in the sale and promotion of Tax Break 2000. 

“Today’s sentence sends a clear and powerful message to those individuals who, like Mr. Porter, seek to evade and help others evade their federal tax obligations, that they will be prosecuted, convicted and sentenced to substantial terms of incarceration,” said Acting Assistant Attorney General Ciraolo.  “No individual is above the law, and the Tax Division, working with its partners at IRS-Criminal Investigation and the Offices of the U.S. Attorneys, will hold accountable those who engage in criminal conduct at the expense of honest taxpayers and the U.S. Treasury.”

According to court documents and court statements, Porter conceived and designed Tax Break 2000, which purported to be an online shopping website.  By at least November 2000 and continuing through at least July 2002, Porter conspired with others to promote and sell Tax Break 2000 to customers throughout the United States.  Customers were falsely and fraudulently told that purchasing Tax Break 2000 would allow them to claim legitimate income credits and deductions under the Americans with Disabilities Act (ADA) by modifying the website each customer was provided to make it accessible to the disabled.  The National Audit Defense Network (NADN) charged $10,475 for the product to maximize the fraudulent income tax credits and deductions that customers would claim on their federal income tax returns.  However, the customers only paid between $2,000 and $2,695 for the product.  The remainder of the cost was covered by a promissory note that customers were not expected to repay.

Porter sold Tax Break 2000 directly through Oryan Management and by contracting with other individuals and entities, including Donald Hicks, a tax return preparer in Gladstone, Missouri, and NADN in Las Vegas.  Through Hicks and NADN, Tax Break 2000 was sold to thousands of customers.  Alan Rodrigues, NADN’s former general manager and executive vice president, Weston Coolidge, the former president of NADN, and Joseph Prokop, the national director of marketing for Oryan Management and a former NFL punter, were convicted at trial in the District of Nevada for their roles in the sale and promotion of Tax Break 2000 in a separate criminal case. 

On March 10, at the sentencing of Rodrigues, Coolidge and Prokop, Judge Du found that the intended tax loss to the Internal Revenue Service (IRS) associated with NADN’s sale of Tax Break 2000 was more than $60 million and that the fraud loss to the customers who purchased Tax Break 2000 was more than $36 million.  Rodrigues was sentenced to serve 72 months in prison, Coolidge was sentenced to serve 70 months in prison, and Prokop was sentenced to serve 18 months in prison to be followed by 30 months home confinement.  All three defendants were ordered to pay restitution of more than $35 million to customers of NADN who purchased the fraudulent tax product.  Donald Hicks, who promoted the fraudulent tax products in Missouri, pleaded guilty in a separate criminal case in the Western District of Missouri.

Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and former Trial Attorneys Timothy J. Stockwell, Katherine L. Wong and Mark L. Williams, and Paralegal Larry Garland of the Tax Division, who prosecuted the case.  Ciraolo also thanked the U.S. Attorney’s Office in the District of Nevada in Las Vegas for their substantial assistance. 

Source: justice.gov

Washington, DC--(ENEWSPF)--April 10, 2015.  A Colorado man was convicted by a federal jury of kidnapping a toddler and producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Benjamin B. Wagner of the Eastern District of California.

Shawn McCormack, 31, of Colorado Springs, Colorado, was found guilty following a four-day trial of four counts of sexual exploitation of a child and two counts of kidnapping.  Senior U.S. District Judge Anthony W. Ishii of the Eastern District of California presided over the trial, and a sentencing hearing was scheduled for July 27, 2015.

According to evidence presented at trial, McCormack, feigning to be a friend, traveled to a couple’s residence in Bakersfield, California, and stayed as an overnight guest on multiple occasions.  During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddler out of the house and recorded his sexual abuse of the toddler in a nearby motel, outdoors and in his truck.  McCormack then returned the toddler to the house before the parents awoke.  The evidence demonstrated that McCormack distributed the images and videos of his abuse to others online, including an undercover officer with the Toronto Police Services. 

According to the evidence presented at trial, Homeland Security Investigations agents in Boston found images and recordings distributed by McCormack on a separate defendant’s computer in Massachusetts.  The agents were able to identify the date, time and hotel room where one of the videos had been produced.  When agents visited that hotel, they learned that McCormack had rented that hotel room on the night when the recording was created.  During the investigation, agents uncovered evidence that McCormack had recorded his abuse of both of the couple’s children.

The investigation is being conducted by U.S. Immigration and Customs Enforcement’s Field Offices in Bakersfield, California, Colorado Springs, Colorado, and Boston, Massachusetts, the Bakersfield Police Department, the Colorado Springs Police Department, Toronto Police Services, and the FBI.

The case is being prosecuted by Trial Attorney Maureen C. Cain of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Patrick R. Delahunty and Megan A.S. Richards of the Eastern District of California.  

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, 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.

Source: whitehouse.gov

Washington, DC--(ENEWSPF)--April 11, 2015.  A second Topeka, Kansas, man was charged Friday in connection with an alleged plot to detonate a vehicle bomb at the Fort Riley military base near Manhattan, Kansas, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Barry Grissom of the District of Kansas.

Alexander E. Blair, 28, is charged with one count of failing to report a felony.  A criminal complaint filed Friday in U.S. District Court in the District of Kansas alleges Blair knew of a plot by co-defendant John T. Booker Jr., 20, of Topeka, to detonate a bomb at Fort Riley.

The complaint alleges that in March 2014, the FBI began an investigation into Booker, who also called himself Mohammed Abdullah Hassan, concerning statements he made online indicating he wanted to wage jihad and to die in the process.  Booker was arrested April 10, 2015, and charged with attempting to use a weapon of mass destruction and two other counts.

During the investigation of Booker, law enforcement officers learned that Blair shared some of Booker’s extremist views and loaned Booker money for the purpose of renting a storage unit that Booker used to store components for a bomb.  The complaint alleges Blair knew of Booker’s intent to detonate a bomb at Fort Riley and to “kill as many soldiers as possible.”  Despite being convinced that Booker was serious about carrying out the plot, the complaint alleges, Blair chose not to report what he knew to the authorities.

If convicted, he faces a maximum penalty of three years in federal prison.  The case is being investigated by the FBI.  The case is being prosecuted by Assistant U.S. Attorney Jared Maag of the District of Kansas.

In all cases, defendants are presumed innocent until and unless proven guilty.  The charges merely contain allegations of criminal conduct.

Related Material:

Blair Complaint

Source:justice.gov