American Samoa Department of Education Official Sentenced to 35 Months in Prison for Witness Tampering and Obstruction of Justice

WASHINGTON – Paul Solofa, the former chief financial officer for the Department of Education for the government of the U.S. Territory of American Samoa was sentenced today to 35 months in prison following his conviction earlier this year for his efforts to obstruct a federal grand jury and law enforcement investigation into a bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

 The sentence was imposed by U.S. District Court Judge Reggie B. Walton in the District of Columbia.  After a four-day trial in January 2012, a federal jury in the District of Columbia found Solofa, 50, guilty of one count of witness tampering and one count of obstruction of justice.

 According to evidence presented at trial, in approximately early 2008, federal authorities began conducting an investigation into allegations of cash bribes and kickbacks paid by vendors to officials of the American Samoa Government in connection with the government’s purchase of school bus parts and services.

 According to the trial evidence, Solofa met on April 3, 2009, with a school bus parts vendor who told Solofa that the FBI was interested in interviewing the vendor regarding the bus parts investigation.  Solofa, in a recorded meeting, allegedly told the vendor that, “They cannot do anything with cash.  Nothing.  They cannot do anything with cash.  They cannot track down you on cash.  Because even if you say you gave me cash I'll tell them ‘no.’  They cannot take your word on cash.  Because that’s hearsay.  So you know, but the best thing for you to do is ‘nope, I never give them any cash, I never’ – because that will open up the whole operation . . . You get what I am saying.  All you do is just tell them ‘no, yes, no, yes,’ period.”

 In addition, according to the evidence presented at trial, Solofa met on April 14, 2009, with the same bus parts vendor, who told Solofa that a grand jury subpoena requiring production of specific documents and records, some of which related to Solofa and to the bus parts kickback scheme, would be issued shortly.  After discussing how to respond, Solofa told the vendor that, as for documents he did not want to produce, “[t]he only way to do it with those copies is burn it.  That way, they won’t see it, and you won’t worry that they might see it, you know. . . .  Just burn it, and nobody has a copy.”

 The head of the School Bus Division for the American Samoa Department of Education, Gustav Nauer, 47, was also convicted for his role in the bribery scheme.  On June 4, 2012, Nauer was sentenced to 25 months in prison.

 This case was prosecuted by Principal Deputy Chief Raymond N. Hulser and Trial Attorney Tim Kelly of the Public Integrity Section in the Justice Department’s Criminal Division.  The case was investigated by the FBI; the Office of the Inspector General for the U.S. Department of Education; and the Office of the Inspector General for the U.S. Department of the Interior.

Former Mayor of Walnut Grove Sentenced for Federal Witness Tampering

JACKSON—William Grady Sims, 61, former mayor of Walnut Grove, Mississippi, was sentenced today in U.S. District Court to serve seven months in prison followed by six months of home confinement and two years of supervised release for federal witness tampering, U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen announced. Sims pled guilty to the charge on February 14, 2012.

Sims was the mayor of the town of Walnut Grove, Mississippi, having been elected to this position since 1981. In this role, he was one of the longest continually serving mayors in Mississippi, having served over 30 years. In October 2009, Sims became the administrator or warden of the Walnut Grove Transition Center in Walnut Grove. At the time, the Transition Center was a privately-owned and operated facility which had contracted with the Mississippi Department of Corrections to house state inmates. In November 2009, the Sims rented a motel room in Carthage, Mississippi; drove a female inmate in his custody from the Walnut Grove Transition Center to the motel room; and proceeded to have sex with her. During a federal grand jury investigation of the sexual encounter, Sims was recorded during several telephone calls with the female inmate instructing the inmate to lie to investigators by saying they had never had sex and had never been together in that motel room. Sims was subsequently interviewed by the FBI, and he admitted to having sex with the female inmate and instructing her to lie to investigators about their sexual encounter. Sims resigned as administrator or warden of the Walnut Grove Transition Facility in January 2010.

As a part of his plea agreement, Sims was required to immediately resign his position as mayor of the town of Walnut Grove, Mississippi and to neither run for public office nor apply for or be employed by any governmental entity in the future.

“Those who hold public office have a duty to serve with integrity. The Department of Justice will continue to prosecute those who choose to violate the public trust by putting their personal interests ahead of the public’s interest,” said U.S. Attorney Gregory K. Davis.

The case was investigated by the FBI, the Mississippi State Auditor’s Office, and the Leake County Sheriff’s Department. Assistant United States Attorney Mike Hurst prosecuted the case.

Houston Man Facing Additional Charges for Witness Tampering

Man Currently Under Indictment on Charges of Sex Trafficking

HOUSTON—A Houston man already facing charges of sex trafficking in the Southern District of Texas has been indicted on additional charges of witness tampering, United States Attorney Kenneth Magidson announced today. A federal grand jury returned the nine-count indictment today against Andre McDaniels, 42, accusing him of tampering with witnesses in a pending criminal proceeding.

McDaniels is one of six defendants named in a superceding 18-count indictment returned in 2011 alleging conspiracy and sex trafficking of children and forcing and coercing adults to engage in commercial sex acts. According to allegations in that case, McDaniels and others operated commercialized sex businesses often disguised as modeling studios, health spas, and massage parlors in Houston and employed sexually oriented publications and websites to advertise their illicit business. The criminal enterprise allegedly transported women and minors to and from the Houston area and had ties to Kansas, Nevada, Arizona, and Florida. Women and minors as young as 16 were enticed and coerced into prostitution and were routinely beaten and threatened, according to that indictment. The defendants allegedly collected any proceeds the women and minors received as a result of “dates,” rendering them dependent upon the defendants for basic necessities.

According to the allegations in the indictment returned just a short time ago, on January 6, 2012, McDaniels attempted to contact witnesses and other law enforcement officials in his pending criminal case and to intimidate, threaten, or corruptly persuade them in an effort to influence or prevent their testimony.

If convicted of the witness tampering charges, McDaniels faces up to a possible term of life in prison in addition to a $250,000 fine. McDaniels has been and will remain in custody pending further criminal proceedings.

The tampering was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Craig M. Feazel and John D. Jocher.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

American Samoa Department of Education Official Convicted by Federal Jury in District of Columbia of Witness Tampering and Obstruction of Justice

WASHINGTON—Paul Solofa, the director of the school lunch program for the government of the U.S. Territory of American Samoa, was convicted today in relation to his efforts to obstruct a federal grand jury and law enforcement investigation into a bribery scheme, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.

After a four-day trial, a federal jury in the District of Columbia found Solofa, 50, guilty of one count of witness tampering and one count of obstruction of justice.

According to evidence presented at trial, in approximately early 2008, federal authorities began conducting an investigation into allegations of cash bribes and kickbacks paid by vendors to officials of the American Samoa Government in connection with the government’s purchase of school bus parts and services.

According to the trial evidence, Solofa met on April 3, 2009, with a school bus parts vendor who told Solofa that the FBI was interested in interviewing the vendor regarding the bus parts investigation. Solofa, in a recorded meeting, allegedly told the vendor, “They cannot do anything with cash. Nothing. They cannot do anything with cash. They cannot track down you on cash. Because even if you say you gave me cash I’ll tell them ‘no.’ They cannot take your word on cash. Because that’s hearsay. So you know, but the best thing for you to do is ‘nope, I never give them any cash, I never’—because that will open up the whole operation . . . You get what I am saying. All you do is just tell them ‘no, yes, no, yes,’ period.”

In addition, according to the evidence presented at trial, Solofa met on April 14, 2009, with the same bus parts vendor, who told Solofa that a grand jury subpoena requiring production of specific documents and records, some of which related to Solofa and to the bus parts kickback scheme, would be issued shortly. After discussing how to respond, Solofa told the vendor that, as for documents he did not want to produce, “ [t]he only way to do it with those copies is burn it. That way, they won’t see it, and you won’t worry that they might see it, you know. . . . Just burn it, and nobody has a copy.”

Solofa faces a maximum penatly of 20 years in prison and a $250,000 fine on the witness tampering charge and 10 years in prison and a $250,000 fine on the obstruction of justice charge. Sentencing is scheduled for April 27, 2012.

This case is being prosecuted by Principal Deputy Chief Raymond N. Hulser and Trial Attorney Daniel A. Petalas of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI in Hawaii; the Office of the Inspector General for the U.S. Department of Education; and the Office of the Inspector General for the U.S. Department of the Interior.

Prominent Newark Attorney Clifford Minor Sentenced to 24 Months in Prison for Role in Witness Bribery Conspiracy and Cover-Up

NEWARK, NJ—Clifford Minor, 68, of Newark, was sentenced today to 24 months in prison for his role in conspiring to commit bribery in connection with witness testimony and for committing perjury, obstructing justice, and falsifying records in furtherance of the scheme, U.S. Attorney Paul J. Fishman announced.

Minor was sentenced by U.S. District Judge Dickinson R. Debevoise in Newark federal court. He had previously pleaded guilty to charges contained in a second superseding indictment unsealed September 23, 2010: conspiracy to use a facility in interstate commerce to commit witness bribery, use of an interstate facility to facilitate bribery, obstruction of justice, falsification of records, lying under oath, and lying to federal agents.

According to documents filed in this case and statements made in court:

Minor admitted he conspired with Abdul Williams, 34, of East Orange, N.J., and Jamal Muhammad, 33, of Newark, to knowingly facilitate Muhammad’s confession to a crime he did not commit. While Williams was in an Essex County jail following his June 2007 arrest for possession of a firearm, Minor escorted Muhammad to the Newark Police Department to confess to possessing the firearm for which Williams had been arrested. Muhammad was arrested following his false confession, and Minor was captured in recorded telephone calls instructing Williams how to post Muhammad’s bail. Minor also admitted he was paid $3,500 by Williams for his participation in the conspiracy.

Minor also pleaded guilty to a variety of offenses relating to his attempts to cover up the conspiracy once federal authorities began investigating. On Dec. 21, 2009, Minor was served with a grand jury subpoena for production of documents concerning his purported representation of Muhammad. Minor agreed voluntarily to meet with FBI agents and Assistant U.S. Attorneys on January 29, 2010. Represented by counsel, Minor made several false statements under oath, including that he had no communications with Williams concerning his representation of Muhammad; he had been retained by Muhammad; he had been paid $500 by Muhammad for the representation; he met with Muhammad prior to July 5, 2007; he had no indication that Muhammad’s false statement was made in return for a bribe, and he had never been involved in any case involving Williams.

In addition, Minor manufactured and produced to the U.S. Attorney’s Office a false “Agreement to Provide Legal Services,” dated July 5, 2007, that stated Minor had received a $500 fee to represent Muhammad.

As a condition of his guilty plea, Minor was required to file a notice with the N.J. State Bar permanently surrendering his license to practice law, with prejudice, and to comply with all procedures to surrender his license as required by the state bars in all states in which he is licensed to practice. Finally, Minor forfeited $8,500 he was paid in connection with his representation of Muhammad, which constituted or was derived from proceeds traceable to the commission of the offenses.

In addition to his prison sentence, Judge Debevoise sentenced Minor to three years’ supervised release, fined him $6,000 and ordered him to pay $8,500 in restitution.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Anthony J. Mahajan, of the U.S. Attorney’s Office Narcotics/Organized Crime Drug Enforcement Task Force Unit, and Robert Frazer, of the Office’s Organized Crime/Gangs Unit in Newark.

Defense counsel: Thomas R. Ashley Esq., Newark, N.J.; Stephen Turano Esq., New York, N.Y.

Federal Grand Jury Indicts Three Collin County Residents in Bank Fraud Conspiracy Involving Nearly $3.2 Million in Loan Proceeds to Purchase Laundromat and Town Homes in Irving, Texas

One Defendant Also Charged with Witness Tampering

DALLAS—A federal grand jury in Dallas has returned a four-count indictment this week charging three individuals, Vathany Teng, Lina Ma and Jerry Goh each with one count of conspiracy to commit bank fraud and two substantive counts of bank fraud in relation to a loan fraud scheme they allegedly ran in the Dallas area from August 2007 to April 2008. In addition, defendant Jerry Goh, a lawyer, is also charged with one count of witness tampering. All three defendants are expected to surrender to federal authorities and appear tomorrow, July 22, 2011, at 2:00 p.m., before U.S. Magistrate Judge Irma C. Ramirez. Today’s announcement was made by U.S. Attorney James T. Jacks of the Northern District of Texas.

The indictment alleges that the defendants conspired together to deceive Prosper Bank, located in Prosper, Texas, and United Central Bank (UCB), located in Garland, Texas, by fraudulently inducing them to make a U.S. Small Business Administration (SBA) guaranteed loan and two commercial loans to Lina Ma, 52, of Plano, Texas. The conspiracy involved one fraudulent loan from Prosper Bank for $1.835 million to purchase a laundromat in Garland and two UCB loans, totaling $1.3 million, for Ma to purchase improved land in Garland and 31 lots in a town home subdivision in Irving, Texas.

Part of the conspiracy involved the defendants deceiving Prosper Bank and UCB by fraudulently inducing them to make large SBA guaranteed and commercial loans to Ma knowing that these financial institutions would not likely approve the loans if the defendants fully disclosed all material and relevant information. For instance, for the Prosper Bank loan, seller Vathany Teng, 40, of Plano, and Ma discussed the loan with Goh, an escrow officer, telling him that Ma didn’t have the necessary funds for the down payment. Goh, 49, of Allen, Texas, assured Teng that he had done this sort of thing before and knew what to do to get Ma’s loan approved. Goh told Teng that she must pay Goh $30,000 in return for his help in getting Ma approved for all of these fraudulent loans. In both the Prosper Bank and UCB loans, the defendants concealed from the lender bank that buyer Lina Ma was not the actual source of the lender required borrower down payment funds. In the Prosper Bank loan, escrowr officer Goh concealed from Prosper Bank that he fraudulently disbursed funds to Teng knowing that these seller proceeds would then be used by Teng to fund Ma’s down payment on the Prosper Bank loan.

Goh was also involved in fraudulently generating funds for Ma to use for her UCB loan down payments, thus enabling her to falsely represent to UCB that she had sufficient down payment funds. Goh assisted Teng and Ma in soliciting more than $449,000 of investor funds, later used by Ma for the down payment funds. Goh, Teng and Ma defrauded and deceived UCB by concealing that Ma had to borrow the funds needed for the down payments and that these investor funds were actually short term loans by the investors to Ma.

Regarding the witness tampering count, in October 2010, Goh made several statements to Teng to persuade her to lie and withhold information if she was later interviewed by the FBI. Part of that conversation involved Goh asking Teng what she would say if interviewed, Teng replying that she would answer whatever they asked and Goh telling her not to “be so dumb.”

This case was 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. For more information about the task force visit: www.stopfraud.gov

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy to commit bank fraud and each of the substantive bank fraud counts carry a maximum statutory sentence of 30 years in prison and a $1 million fine. The witness tampering count, upon conviction, carries a maximum statutory sentence of 20 years in prison and a $250,000 fine. Restitution could also be ordered.

The case is being investigated by the U.S. SBA - Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.

Former Richmond Police Officers Charged with Conspiracy to Tamper with Witnesses

One Officer Also Charged with Making False Statements in Order to Purchase Firearms for Other Individuals, Including Two Minors

SAN FRANCISCO—A federal grand jury in San Francisco indicted Danny Harris Jr., of Pinole, Calif., on July 21, 2011, with making false statements in order to purchase three semiautomatic pistols from a San Jose, Calif., firearms dealer. Both Harris and Raymond Thomas Jr. of Fairfield, Calif., were charged with conspiring to tamper with witnesses and obstruct a federal investigation and court proceedings, United States Attorney Melinda Haag announced.

According to the indictment, both defendants were police officers with the Richmond Police Department when the offenses took place. Harris is alleged to have made false statements to a federal firearms dealer in San Jose in connection with the purchase of three semiautomatic handguns. According to the indictment, Harris falsely stated that he was the true buyer of the guns, when he knew that the true buyers were other individuals. In the case of two of the weapons, the true purchasers were individuals under 21 years of age. Under federal law, it would have been illegal for the dealer to knowingly sell the handguns to someone under 21.

The indictment also charges that after Harris made the false statements in connection with the gun purchases, he and defendant Thomas conspired to knowingly use intimidation, threats and corrupt persuasion in order to prevent or hinder witnesses from reporting information to federal law enforcement officers. The defendants are charged with conspiring to obstruct, influence and impede a federal grand jury investigation and proceedings in federal court.

The indictment describes a series of acts undertaken by Harris and Thomas to intimidate the two minors for whom Harris purchased the firearms in order to prevent them from reporting possible federal crimes to federal law enforcement and to influence and obstruct a federal investigation. The acts included pressuring one of the minors to change the registration of one of the guns so that it no longer showed up in Harris’ name; using intimidation tactics, including threats of legal action and the filing of a civil suit, in order to get possession of one of the guns from the minor; and hiring a private investigator in Concord, Calif., to conduct a sting operation targeting the two minors for whom Harris purchased firearms. The alleged goal of the sting operation was to have the minors arrested for drunk driving and illegal possession of the guns. The indictment alleges that Thomas paid more than $1,800 to the private investigator in order to conduct the sting operation. The indictment alleges that Harris and Thomas approved of the plan whereby a female employee of the private investigator would meet one of the minors and make overtures in order to engage in future social engagements. The plan was for the woman to encourage the minor to bring his gun to one of those meetings. According to the indictment, the woman did meet the minor and they exchanged cell phone numbers. Through text messages, they set up a social engagement and the woman asked the minor to bring his gun to the engagement.

The defendants are scheduled to make their initial appearances in federal court in Oakland on Aug. 9, 2011, at 9:30 a.m. before United States Magistrate Judge Laurel Beeler.

The maximum statutory penalty for each count of making a false statement in the acquisition of a firearm, in violation of 18 U.S.C. §922(a)(6), as alleged in counts one through three of the indictment, is 10 years’ imprisonment, a $250,000 fine, three years’ supervised release, and a $100 special assessment. The maximum statutory penalty for making a false statement in the record of a licensed firearms dealer, in violation of 18 U.S.C. §924(a)(1)(A), as alleged in count four of the indictment, is five years’ imprisonment, a $250,000 fine, three years’ supervised release, and a $100 special assessment. The maximum statutory penalty for conspiracy to prevent communication to a law enforcement officer, in violation of 18 U.S.C. §1512(k), as alleged in count five, and for conspiracy to impede an official proceeding, also in violation of 18 U.S.C. §1512(k), as alleged in count six, is 20 years’ imprisonment, a $250,000 fine, three years’ supervised release, and a $100 special assessment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. §3553.

Susan Badger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rania Ghawi and Cristhian Escobar. The prosecution is the result of an eleven-month investigation by the Federal Bureau of Investigation, Richmond Police Department, and the Contra Costa County District Attorney’s Office.

Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Harris and Mr. Thomas must be presumed innocent unless and until proven guilty.

Devils Lake Man Pleads Guilty to Tampering with a Witness

BISMARCK—United States Attorney Timothy Q. Purdon announced that on July 13, 2011, Dakota Jore, 21, of Devils Lake, North Dakota, pleaded guilty to a charge of tampering with a witness in United States District Court.

Jore was an inmate at the Lake Region Community Corrections Center in Devils Lake, North Dakota, in November and December 2010. After Jore’s release in December 2010, Jore was contacted by an inmate with whom he had shared a cell while incarcerated. The inmate asked Jore to contact a witness in a federal investigation, and Jore was to convince the witness to recant previous statements given to federal authorities and to testify falsely at trial. Jore contacted the witness by telephone and text messaging. During those contacts, Jore communicated the messages from the inmate to the witness.

The charge of tampering carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.

The case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs—Fort Berthold Agency, and Three Affiliated Tribes Police Department.

Sentencing for Jore has been scheduled for September 19, 2011, in United States District Court in Bismarck, North Dakota, at 2:30 p.m.

Assistant United States Attorney Rick Volk is prosecuting the case.

Federal Grand Jury Issues Superseding Indictment Against Kinloch Mayor Keith Conway for Witness Tampering

ST. LOUIS—The United States Attorney’s Office announced today that the federal grand jury issued a superseding indictment late Thursday charging Kinloch Mayor Keith Conway with witness tampering in addition to the original two charges.

According to the superseding indictment filed today, on or about May 24, 2011, Conway caused false information to be provided to one or more Kinloch, Missouri city officials, including, but not limited to, several members of the board of aldermen, relative to the criminal charges pending against him and urged those officials and aldermen to provide false information relative to the criminal charges pending against him in the original indictment.

KEITH CONWAY, of Kinloch, Missouri, was originally indicted by a federal grand jury on May 23, 2011, on one felony count of wire fraud and one felony count of federal program theft.

The new charge of witness tampering carries a maximum penalty of 10 years' imprisonment and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the Federal Bureau of Investigation, St. Louis County Police Department Intelligence Unit, U.S. Department of Labor-Office of Inspector General, and the Department of Justice Office of Inspector General. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.