Jackie McConnell Sentenced to Serve Three Years’ Probation for Violations of the Federal Horse Protection Act

CHATTANOOGA, TN—Jackie L. McConnell, 60, of Collierville, Tennessee, was sentenced today, September 18, 2012, by the Honorable Harry S. Mattice, U.S. District Judge, to serve three years on probation, during which time he is required to report any ownership or interaction with horses; pay a fine in the amount of $75,000; and perform 300 hours of public service to the U.S. Department of Agriculture. Additionally, he was ordered by the court to write and publish an article on horse soring practices, including the effects on the horses, the different methods of soring, and how widespread it is in the industry.

McConnell pleaded guilty in May 2012 to charges contained in a federal indictment relating to conspiracy to violate the Horse Protection Act. In addition to his term of probation, the trailer McConnell owned and used to transport the sored horses was forfeited to the United States as part of the plea agreement.

“The U.S. Attorney’s Office prosecutes cases and enforces the law as it is written. As presently constituted, the defendant’s acts of soring the horses are not themselves federal crimes. They are misdemeanors under state animal cruelty laws. The defendant committed federal misdemeanor offenses when he conspired to transport the sored horses and enter them into nationwide competitions. He committed federal felony offenses when he instructed others to falsify horses’ entry paperwork at the shows to indicate that someone other than the defendant was the actual trainer of a horse. He did this to shield himself from scrutiny as a result of having been disqualified from training and entering horses into competition by administrative sanctions of the USDA. This five-year administrative disqualification stemmed from the defendant’s numerous previous violations of the Horse Protection Act,” said U.S. Attorney William C. Killian.

In his plea agreement on file with the U.S. District Court in Chattanooga, McConnell admitted to conspiring with others to violate the Horse Protection Act in various ways. At all times relevant to the charges in the indictment, he was on suspension from entering horses into shows. Nevertheless, he continued to train horses by soring, transporting, entering, and showing them at horse shows while on suspension. He trained horses using illegal soring methods such as the application of banned chemicals to the horses’ pasterns, which caused painful burning to their legs. McConnell then arranged for them to be taken to the shows, where he stayed on the grounds outside the warm-up areas, as required due to his disqualified status, and directed others how to show the horse. At the shows, he submitted entry paperwork which falsely stated that someone else was the trainer of the sored horses. He took steps to camouflage the damage to the horses by instructing others to apply magic markers and other masking devices to the horses’ legs prior to inspection. Additional information regarding this case is contained in the United States’ Sentencing Memorandum on file with the U.S. District Court.

The case arose from an undercover investigation conducted by the Humane Society of the United States, which resulted in the creation of evidence instrumental to the case. The USDA Office of Inspector General and Federal Bureau of Investigation conducted the follow-up investigation, including the execution of search warrants at McConnell’s temporary stables in Shelbyville and his barn in Collierville during the 2011 Tennessee Walking Horse National Celebration. Assistant U.S. Attorneys Steven S. Neff and M. Kent Anderson represented the United States.

U.S. Attorney Killian commended Special Agent Julie McMillan, U.S. Department of Agriculture, for her initiative, persistence, and diligence in investigating and highlighting this problem to the U.S. Attorney’s Office. Her performance and the excellent work of Assistant U.S. Attorneys Steve Neff and Kent Anderson, he said, resulted in this conviction, sentence, and forfeiture. “We will continue to investigate and prosecute cases involving violations of the Horse Protection Act as we do in other areas of federal law. The impact in these cases has been far beyond any level that we might have imagined,” added U.S. Attorney Killian.

Knoxville Woman Pleads Guilty to Defrauding U.S. Department of Veterans Affairs and Social Security Administration

KNOXVILLE—Martha Ann Kaczmarczyk, 62, of Knoxville, Tennessee, pleaded guilty today in U.S. District Court to charges stemming from a scheme to fraudulently obtain disability payments from the U.S. Department of Veterans Affairs and the Social Security Administration. Sentencing has been set for January 16, 2013, before U.S. District Court Judge Thomas W. Phillips.

As part of the scheme, Kaczmarczyk assisted her husband in obtaining disability payments based on a false claim of combat-related posttraumatic stress fisorder. Additionally, Kaczmarczyk defrauded the Social Security Administration by falsely claiming that she was disabled due to a back injury. Kaczmarczyk faces a maximum term of 10 years in prison, along with forfeiture and restitution. Her husband, Charles Kaczmarczyk, previously pleaded guilty and will be sentenced on December 12, 2012.

The investigation was a joint effort between the Federal Bureau of Investigation, Department of Veterans Affairs-Office of Inspector General, Social Security Administration-Office of Inspector General, and the U.S. Air Force.

Assistant U.S. Attorney Zachary Bolitho represented the United States.

Knoxville Man Pleads Guilty to Defrauding U.S. Department of Veterans Affairs and Social Security Administration Based on False Claim of Posttraumatic Stress Disorder

KNOXVILLE—Charles Kaczmarczyk, 58, of Knoxville, Tennessee, pleaded guilty today in U.S. District Court to four charges resulting from a scheme to defraud the U.S. Department of Veterans Affairs (VA) and the Social Security Administration of approximately $457,986 in disability payments based on a false claim of posttraumatic stress disorder. Sentencing has been set for December 12, 2012, before U.S. District Court Judge Thomas W. Phillips. Kaczmarczyk faces a maximum term of 10 years in prison, along with forfeiture and restitution. He was ordered to remain in custody pending his sentencing hearing.

As set forth in the plea agreement, Kaczmarczyk received disability payments from the VA and Social Security Administration based on a claim of posttraumatic stress disorder originating from his participation in special operations combat missions both during and after the Vietnam War. According to the plea agreement, Kaczmarczyk did not actually participate in those special operations combat missions. He fabricated the information so that he could receive disability payments from the VA and Social Security Administration. The plea agreement states that Kaczmarczyk supported his fraudulent activity by manufacturing counterfeit U.S. Air Force records showing that he had earned numerous combat medals, including two Purple Hearts and two Silver Stars.

The investigation was a joint effort between the Federal Bureau of Investigation, Department of Veterans Affairs-Office of Inspector General, Social Security Administration-Office of Inspector General, and the U.S. Air Force.

Assistant U.S. Attorney Zachary Bolitho represented the United States.

Week in Review—Hammond

HAMMOND, IN—The United States Attorney’s Office announced the following activity in federal court:

Pleas:

■Osvaldo Herrera, 23, of Calumet City, Illinois, pled guilty before Senior Judge James Moody to the felony offense of distribution of 50 grams or more of crack cocaine. These charges were filed as the result of an investigation by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Joshua Kolar.

■Cesar Diaz, 39, of Calumet City, Illinois, a defendant in the case U.S. v Herrera et al., pled guilty before Senior Judge James Moody to the felony offense of distribution of 50 grams or more or crack cocaine. These charges were filed as the result of an investigation by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Joshua Kolar.

If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

Dispositions:

■Ronald Zastro, 42, of Chicago, Illinois, a defendant in the case U.S. v DeLeon et al., was sentenced by Chief Judge Philip Simon to 112 months’ imprisonment and five years of supervised release after pleading guilty to the felony offense of conspiracy to possess and distribute five kilograms or more of cocaine. This case was the result of an investigation by the Drug Enforcement Administration HIDTA Task Force. This case was prosecuted by Assistant United States Attorney Joshua Kolar.

■Otiniel Nava-Barragan, 46, of Chicago, Illinois, a defendant in the case U.S. v Martinez et al., was sentenced by Judge Joseph Van Bokkelen to 46 months’ imprisonment and two years of supervised release after pleading guilty to the felony offense of conspiracy to distribute heroin. This case was the result of an investigation by the Drug Enforcement Administration, the Indiana State Police, and the Chicago Police Department. This case was prosecuted by Assistant United States Attorney Joshua Kolar.

■Victor Wiggins, 29, of Gary, Indiana, was sentenced by Judge Joseph Van Bokkelen to 78 months’ imprisonment and two years of supervised release after pleading guilty to the felony offense of possession of a firearm as a convicted felon. According to the Plea Agreement filed in this case, Wiggins has two previous convictions for battery. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.

Collierville Man Pleads Guilty to Conspiracy

MEMPHIS—Ernest Draper, 42, of Collierville, Tennessee, pled guilty today to one count of conspiracy to defraud the United States before United States District Judge Jon P. McCalla, announced Edward L. Stanton, III, United States Attorney for the Western District of Tennessee. Draper faces a maximum penalty of five years in prison and fine of $250,000 when he is sentenced on September 26, 2012.

According to the information filed during the plea hearing, Draper conspired with another individual to obtain funds under false pretenses and then conducted financial transactions with the proceeds of the scheme. Draper admitted that the scheme was to defraud American General Finance Company by obtaining a $40,000 loan and Wells Fargo Bank by obtaining a $41,132.50 loan. Draper told both companies the loans were to purchase a Mercedes CLS500 vehicle. The information charges that Draper submitted with his loan application to Wells Fargo a fraudulent 2006 tax return claiming he had gross income of $220,815 and that he had made a $20,000 cash down payment on the vehicle.

Draper admitted that he gave the funds to another individual to deposit into a bank account. The funds were then used to purchase a 2004 Bentley at the Memphis Auto Auction that had been previously repossessed from Draper by Kemba Federal Credit Union.

This investigation was conducted by Federal Bureau of Investigation, United States Secret Service, and IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorney John D. Fabian on behalf of the government.