Hawaii Resident Charged with Making False Statements in a Matter Involving International Terrorism

A criminal complaint was unsealed yesterday in the Eastern District of New York charging Abdel Hameed Shehadeh, age 21 and a U.S. citizen and resident of Hawaii, with making false statements in a matter involving international terrorism. Shehadeh was arrested on Friday, October 22, in Honolulu, Hawaii. At his initial appearance yesterday at the United States Courthouse in Honolulu, Shehadeh was ordered detained and consented to being removed to the Eastern District of New York for further proceedings.

The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Florence T. Nakakuni, United States Attorney for the District of Hawaii; Janice K. Fedarcyk, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Raymond W. Kelly, Commissioner, New York City Police Department; and Charlene B. Thornton, Special Agent-in-Charge, Federal Bureau of Investigation, Honolulu Division.

According to the complaint, in early 2008, Shehadeh, at the time a resident of Staten Island, New York, devised a plan to travel to Pakistan in order to join the Taliban or a similar fighting group. In furtherance of his plan, on June 13, 2008, Shehadeh flew on a one-way airline ticket from John F. Kennedy International Airport in Queens, New York, to Islamabad, Pakistan. Upon landing in Pakistan, Shehadeh was denied entry into the country by Pakistani officials, and he returned to the United States. He was questioned by FBI agents and NYPD detectives on multiple occasions about the purpose of his trip to Pakistan, and he told them that he had traveled to Pakistan in order to visit an Islamic university and to attend a friend’s wedding. The complaint alleges that Shehadeh subsequently admitted to FBI agents in Hawaii that the true purpose of his trip to Pakistan was to join a fighting group such as the Taliban. The complaint also alleges that Shehadeh attempted to recruit another individual to join him for this purpose immediately after the two discussed a sermon by the cleric Anwar al-Awlaki.

According to the complaint, several weeks after Shehadeh was denied entry to Pakistan, he attempted to enlist in the United States Army at the Times Square recruiting station in New York City. Shehadeh’s application was denied when it was discovered that he had concealed his prior trip to Pakistan. Although Shehadeh claimed that he attempted to enlist for career opportunities and benefits, the complaint alleges that his true motive was to deploy to Iraq, where he intended to desert and fight against the United States military alongside Iraqi insurgent forces.

In addition, the complaint alleges that Shehadeh created and administered multiple websites dedicated to spreading violent jihadist ideology. The content of these websites included, among other things, speeches from known al Qaeda leaders such as Abu Yahya al-Libi and Ayman al-Zawahiri.

“As this case demonstrates, we and our partners in law enforcement are committed to preventing terrorist acts before the plots can be set in motion,” stated United States Attorney Lynch. “We will spare no effort, and will deploy all available resources, to accomplish this mission.” Ms. Lynch extended her grateful appreciation to the FBI and NYPD, the agencies responsible for leading the government’s investigation.

United States Attorney Nakakuni stated, “We must remain vigilant to address activities in our own community which have connections to investigations and prosecutions in other areas. This case is an example of the necessary and successful cooperation among authorities separated by a six-hour time difference and over 5,000 miles.”

FBI Assistant Director-in-Charge Fedarcyk stated, “As charged in the complaint, Shehadeh lied about the purpose of his travel to Pakistan, then he lied in his attempt to join the U.S. military, and lied about why he sought to enlist. The real purpose, it is alleged, was not to join U.S. forces, but to wage war against them. Stopping one prospective terrorist can prevent untold numbers of casualties.”

NYPD Commissioner Kelly stated, “In sharing information developed by the NYPD’s Intelligence Division with our federal partners, the Police Department worked hand-in-glove with the FBI to curtail an alleged terrorist threat in the making.”

FBI Special Agent-in-Charge Thornton stated, “The Honolulu FBI’s Joint Terrorism Task Force worked closely with our New York counterparts throughout this investigation. It is important to note that at no time was there any evidence of a terrorist plot targeting the Hawaiian Islands in this case.”

If convicted of making false statements in a matter involving international terrorism, Shehadeh faces a maximum sentence of eight years’ imprisonment.

The government’s case is being prosecuted in the Eastern District of New York by Assistant United States Attorneys James P. Loonam and Ali Kazemi, with assistance provided by the United States Attorney’s Office for the District of Hawaii and the Counterterrorism Section of the Department of Justice.

The public is reminded that a complaint contains mere allegations, and a defendant is presumed innocent until proven guilty.

The Defendant:

ABDEL HAMEED SHEHADEH

Age: 21

Man Gets 29-Year Sentence in Attack on Off-Duty Police Officer

Attack Took Place in Attempted Robbery at Gas Station

WASHINGTON—Eddie L. Mathis, Jr., 38, was sentenced today to 29 years of incarceration for attempting to rob an off-duty Metropolitan Police Department (MPD) officer and then shooting the officer in a December 2003 attack at a Washington, D.C. gas station, U.S. Attorney Ronald C. Machen Jr. announced.

Mathis, of Fredericksburg, Va., was convicted in July 2010 following a week-long trial in the Superior Court of the District of Columbia. The jury found him guilty of assault with intent to commit robbery while armed, assault with a dangerous weapon, possession of a firearm during a crime of violence, carrying a dangerous weapon, and unlawful possession of a firearm by a previously convicted felon. Mathis was sentenced by the Honorable Judge Lynn Leibovitz.

Evidence presented at trial established that off-duty MPD Officer Devinci Wooden was driving home in the late evening of December 18, 2003 when he stopped to fill his gas tank at an Exxon station at the intersection of Alabama and Pennsylvania Avenues SE. Several people were nearby. Wooden, who was in plain clothes, was standing at the pump when he was approached by Mathis, who had a loaded .45-caliber pistol in his hand, and an accomplice who has never been identified. The assailants demanded that Wooden empty his pockets. Mathis pointed a gun at Wooden and said something to the effect of "Don't move or I'll bust you."

Concerned that they would find his badge hanging around his neck under his jacket and kill him, Wooden ran to the other side of his vehicle and announced he was a police officer. Instead of surrendering or fleeing the scene like his accomplice, Mathis chose to escalate the situation.

Mathis began shooting at the officer, while surrounded by highly flammable gas tanks and fumes, with other innocent patrons and employees in the immediate area. The officer fired back in self-defense. During the shootout that ensued, Mathis shot Wooden through the foot, and Wooden shot Mathis in his right waist. Though Mathis escaped from the gas station that night, several citizens came forward and helped law enforcement authorities find a nearby apartment where Mathis was staying at the time. There, he had discarded his bullet-riddled and bloody clothing.

In announcing the sentence, U.S. Attorney Machen commended the work of MPD Detectives Mitchell Credle, Konstantinos Giannakoulias, Carlos Hilliard, Stephen McDonald, and Darryl Richmond, Sixth District MPD Officers Michael Tucker (Retired) and David White, and MPD Crime Scene Technicians Grant Greenwalt, Richard Griffin, and Tony Nwani. He also acknowledged the work of FBI special agents as well as Criminal Investigators Christopher Brophy and Melissa Matthews and Intelligence Research Specialist Lawrence Grasso, all of the U.S. Attorney's Office. He also praised U.S. Attorney's Office Paralegal Mariam Russell and Litigation Technology Specialists Joe Calvarese, Leif Hickling, and Thomas Royal. Finally, he thanked U.S. Attorneys Ann M. Carroll and Sean P. Tonolli for investigating and indicting the case, and Assistant U.S. Attorneys Tonolli and Steven Swaney for trying the case.

Member of the Krazy Locos Criminal Street Gang Sentenced to Life Imprisonment Following Convictions for Two Homicides, Robbery, and Firearms Charges

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office; Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives; Anthony V. Mangione, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations, Miami Field Office; and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announced today the sentencing of Manuel DeJesus Medina, a member of the Krazy Locos criminal street gang of Lake Worth, Florida. Medina, 19, was sentenced to life imprisonment, followed by a consecutive term of 420 months’ imprisonment, on charges related to two homicides committed in Palm Beach County during January and February 2009. The charges against Medina and other gang members arose from a joint federal-state investigation into the Krazy Locos gang, which was operating throughout Palm Beach County.

As set forth in the charging documents and documents filed with the court, Medina was a member of the “Krazy Locos,” also known as the “KL” gang, operating primarily in Palm Beach County. The Krazy Locos has been affiliated at times with another gang, the “Making Life Krazy” or “MLK” gang, which also operates in Palm Beach County. From 2007 through 2009, there were approximately forty Krazy Locos gang members and associates.

According to documents filed with the court, the Krazy Locos organization made money through the sale of controlled substances, primarily oxycodone, Xanax, methadone, cocaine, crack, and marijuana. With respect to the prescription medications (oxycodone, Xanax, and methadone), a Krazy Locos member would “sponsor” a patient, that is, pay for the patient’s medical visit and prescription, in exchange for a portion of the prescription medication. The gang would then re-sell the prescription medication. Members of the gang also were required to pay “taxes” to the gang on a weekly basis and often resorted to criminal activity to secure the money to pay their “taxes.”

Medina was also charged for his involvement in two homicides. Counts 1 through 4 of the Second Superseding Information charged Medina with a number of offenses related to his involvement in the homicide of a person known as “R.F.” on January 9, 2009. The Second Superseding Information charged that the Krazy Locos is a criminal organization whose members and associates engaged in acts of violence, including attempted murder, obstruction of justice, extortion and distribution of controlled substances, and which operated principally in Palm Beach County. Counts 5 through 10 of the Second Superseding Information relate to an attempted Hobbs Act robbery in Palm Beach County that resulted in the death of a Palm Beach County man, “D.R.,” and the serious injury of another, “A.R,” on February 22, 2009.

On August 6, 2010, Medina pled guilty to all charges contained in the Second Superseding Information. Medina admitted that he was the person who shot and killed both R.F. and D.R. Medina agreed to be sentenced to the statutory maximum sentence of life imprisonment without the possibility of parole, to be followed by thirty-five years’ imprisonment. Medina also agreed to cooperate against the leaders of the gang and provided information regarding their involvement in the two homicides.

On Friday, October 22, 2010, United States District Judge Kenneth A. Marra sentenced Medina to life imprisonment with no possibility of parole, followed by a consecutive term of 420 months’ imprisonment. Medina was further ordered to pay $34,396.27 in restitution.

Mr. Ferrer commended the investigative efforts of the FBI, ATF, ICE’s Homeland Security Investigations in West Palm Beach, the Palm Beach County Sheriff’s Office, and the Palm Beach County State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Marie Villafaña and Mark Dispoto.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or http://pacer.flsd.uscourts.gov/.

Audit of Office on Violence Against Women Grants Awarded to the Montana Coalition Against Domestic and Sexual Violence, Helena, Montana

The purpose of these awards is to provide recipients with the opportunity to develop and strengthen effective responses to violence against women.

OVW provides national leadership in developing the nation's capacity to reduce violence against women through the implementation of the Violence Against Women Act. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. By forging state, local, and tribal partnerships among police, prosecutors, victim advocates, health care providers, faith leaders, and others, OVW grant programs help provide victims with the protection and services they need to pursue safe and healthy lives, while simultaneously enabling communities to hold offenders accountable for their violence.

OVW provides funding under two formula grant programs and 17 discretionary grant programs to aid communities across the country that are developing programs aimed at ending domestic violence and sexual assault.

The full report can be read at http://www.justice.gov/oig/grants/g6011001.pdf.

Firefighter Fatality

The United States Fire Administration (USFA) has received notice of the following firefighter fatality:

Name: Randall Scott Davenport

Rank: Firefighter

Age: 37

Gender: Male

Status: Career

Years of Service: 4

Date of Incident: 10/24/2010

Time of Incident: Pending

Date of Death: 10/24/2010

Fire Department: Marshall Fire Department

Address:

471 W Arrow ST, Marshall, MO  65340-1904

Fire Department Chief: John Rieves

Fire Department Website: http://www.marshallfire.com

Incident Description: Firefighter Davenport was found deceased on Sunday morning at the Marshall Firehouse within hours of fighting two structure fires. The cause of Firefighter Davenport death is still to be determined.

Incident Location:

471 W Arrow ST, Marshall, MO  65340-1904

Funeral Arrangements: Pending, updates will be posted @ http://www.mofirefuneral.org/.

Memorial Fund Contact and Address: Pending

Tribute is being paid to Firefighter Randall Scott Davenport at http://www.usfa.dhs.gov/fireservice/fatalities/

To date, 68 firefighter fatalities have been reported to USFA in 2010; 66 from incidents that occurred in 2010 and 2 from previous year incidents.  Year-to-date monthly and annual USFA firefighter fatality reports are posted online @ http://www.usfa.dhs.gov/fireservice/fatalities/statistics/ff_stats.shtm.

Project Safe Childhood Again Improves the Safety of Indiana’s Children

INDIANAPOLIS—Joseph H. Hogsett, United States Attorney, Southern District of Indiana, and A. Brant Cook, Assistant U.S. Attorney, announced that Philip R. Collins, 47, Hillsboro, Ind., was sentenced to 90 months in prison yesterday by U.S. District Judge Sarah Evans Barker following his guilty plea to distribution and possession of child pornography. This case was the result of an investigation by the Federal Bureau of Investigation and the Indiana State Police.

The prosecution of Collins is part of the ongoing fight to protect children under Project Safe Childhood. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006. Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims of child exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

According to U. S. Attorney Hogsett, the investigation of Collins began in August 2009, when Collins engaged in internet chat with an FBI task force officer working undercover online. The internet chats between Collins and the task force officer continued sporadically over the course of the following several months. Though Collins made several comments during the chats indicating a sexual interest in children, he gave no indication of any specific plans to act out his interests, and did not otherwise engage in any criminal activity. On March 3, 2010, however, Collins claimed during one of the internet chat conversations that he planned to engage in sexual activity with a minor he would be supervising the following evening. FBI worked quickly to identify Collins, and, along with the Indiana State Police, sought him out at his workplace in Crawfordsville, Ind., early the next evening, March 4, 2010. Earlier in the day, prior to agents’ arrival, Collins distributed several images of child pornography to the task force officer with whom he had been chatting online. Law enforcement did not find any evidence that Collins had acted on his stated plan to engage in sexual activity with a child that evening, but did find that Collins had a collection of child pornography. He was arrested and subsequently prosecuted.

Judge Barker also imposed lifetime supervised release following Collins’s release from prison. During the period of supervised release, Collins must participate in sex offender treatment, may not have unsupervised contact with any minor child, and must register as a sex offender, in addition to other conditions.

Hogsett praised the work of Assistant U.S. Attorney A. Brant Cook, who prosecuted the case for the government. “The penalties for distributing child pornography are quite serious,” noted Cook. “Trafficking in such images is a devastating re-victimization of the children depicted, and those who seek out and view these images are fueling a dangerous sexual interest in children. It is extremely important that these individuals be held accountable in order to bring some justice to the children depicted in these images, as well as to protect Indiana’s children who are within reach of these offenders.”

Judge Barker authorized Collins’ continued release with supervision pending his assignment to a Bureau of Prisons facility.

1100 Police Officers

With the addition of Anne Lowery, a former Cortland Police Department (Ohio) law enforcement official, Police-Writers.com now lists 1100 state and local police officers from 469 departments who have written 2408 books. Additionally, the website maintains separate listings of civilian police employees, corrections officials, federal law enforcement agents and police officers from other countries such as England, India, Canada and Australia.

In addition to being categorized alphabetically, the books can be viewed by department, by state, by police officer and by category such as True Crime, Biography, Tactical, etc.

Browse the listings at
http://www.police-writers.com/

Anchorage Man Indicted by Federal Grand Jury for Sex Crimes Against Other Prisoners in Anchorage Jail

ANCHORAGE, AK—United States Attorney Karen L. Loeffler announced that a prisoner in the Anchorage Correctional Complex was indicted by a federal grand jury in Anchorage, for aggravated sexual abuse, sexual abuse, and abusive sexual contact perpetrated on three unnamed prisoners.

The twelve-count indictment names Sabil Mujahid, 39, of Anchorage, Alaska as the sole defendant. Mujahid was arraigned on October 20, 2010 on the charges.

According to the indictment and information presented to the court at arraignment, Mujahid was a federal prisoner when he committed the alleged crimes against the three unnamed prisoners, referred to as John Doe 1, John Doe 2, and John Doe 3, all Alaskan Native men. The Anchorage Correctional Complex is a facility in which federal prisoners are held in custody pursuant to a contract with the United States Marshals Service. Mujahid is currently incarcerated on pending federal sex trafficking charges with three other defendants, awaiting trial in February 2011.

The charges found by the grand jury, carry a maximum sentence of life imprisonment, total fines of $3 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, of the defendant. Mujahid’s trial date on these indicted charges is scheduled for December 13, 2010.

The FBI, United States Marshals Service, and the Anchorage Police Department jointly conducted the investigation leading to the indictment in this case.

An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

FBI and San Diego Police Seek Public’s Assistance to Identify Bank Robber Carrying Gym Bag

The FBI and San Diego Police Department are seeking the public’s assistance to identify the unknown male responsible for robbing the Bank of America branch located at 655 West Broadway, San Diego, California, on Thursday, October 21, 2010.

On Thursday, October 21, 2010, at approximately 10:55 a.m., the Bank of America branch located at 655 West Broadway, San Diego, California was robbed by a man carrying a blue and silver colored gym bag. At the time of the robbery, the robber entered the bank and went to the customer service island where it is believed he wrote a demand note. The robber then approached the victim teller and presented the demand note for cash. The teller complied with the robber’s demands and provided him with a sum of money. The robber placed the money into a blue and silver colored gym bag he was carrying. The robber exited the bank and was last seen headed east on

Broadway street

. It is believed that after exiting the bank, the robber donned a baseball cap and discarded the gym bag which was recovered by police.

Witnesses describe the robber as follows:

Sex: Male

Race: White

Age: Approximately 40 to 50 years old

Height: Approximately 5’6” to 5’7”

Weight: Approximately 180 – 190 lbs.

Hair/Coloring: Balding with brown and gray hair

Clothing: Maroon colored short tee shirt, blue jeans and glasses

U.S. Marshals Recover Missing Child, Two Arrests Made In Pennsylvania Parental Abduction

Eureka, CA – U. S. Marshal Don O’Keefe of the Northern District of California announces the arrests of Jesse Hartman and Rose Stonesifer.

On Monday, Hartman, 23, and Stonesifer, 22, were arrested for custodial interference at a cabin on Swayback Ridge off

Buck Mountain Road

in southeastern Humbolt County.

During the arrest, Deputy U.S. Marshals and a FBI agent located the couple’s infant daughter, who has been an endangered missing person from Cumberland county, PA since March.

Allegedly Hartman, Stonessifer, and the missing child resided in the cabin used to trim and process marijuana with six other adult males.

The child was given to the custody of the Humboldt County Child Welfare Services and both fugitives were booked into the Humboldt County Correctional Facility.

The U.S. Marshals became involved with this case at the request of the National Center for Missing and Exploited Children.

This arrest was a result of the combined efforts of the residents of Humboldt County, National Center for Missing and Exploited Children, U.S. Marshals Eastern District of California and Northern District of California Fugitive Task Force, and the FBI.

The U.S. Marshals Service have developed close working relationships with other law enforcement agencies on fugitive matters, and it has a history of providing assistance, expertise and training to agencies on the federal, state, local and international levels. 

Virginia Man Sentenced to 18 Months in Prison for Defrauding the U.S. Department of Defense of More Than $450,000

WASHINGTON - A Virginia man was sentenced today to 18 months in prison in connection with a scheme to defraud the U.S. Department of Defense of more than $450,000, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

Jonathan Feeney Sr., 28, of Woodbridge, Va., was also ordered by U.S. District Court Judge Leonie M. Brinkema to pay restitution of $464,819 to the Department of Defense and $11,604 to BAE Systems Training Services Inc. (BAE). In addition, Judge Brinkema ordered Feeney to serve three years of supervised release following his prison term. Feeney pleaded guilty on July 28, 2010, to a one-count criminal information charging him with using the U.S. mails to execute a scheme involving fraudulent invoices submitted to the Department of Defense through BAE, Feeney’s former employer.

According to court documents, BAE maintained a procurement contract with the Department of Defense during 2005 and 2006. Under the terms of the contract, BAE would purchase surveillance equipment and subsequently bill the U.S. government for those purchases. Feeney worked as a logistics engineer at BAE and was responsible for purchasing the items needed under the contract.

In his plea, Feeney admitted that he started making secret purchases in BAE’s name beginning in August 2005. He admitted that he used his position to authorize the purchase of camera lenses and video equipment, intending all the while to resell the equipment for personal gain despite billing BAE for the purchases. Feeney’s actions would cause BAE, in turn, to use the mail to bill those purchases to the United States. Between Aug. 6, 2005, and June 30, 2006, Feeney admitted that he made 15 illicit purchases totaling $476,424 in fraudulent charges, of which $464,819 was billed to the U.S. government. Feeney also admitted that he subsequently sold many of the purchases on an Internet auction site for profit.

The case was prosecuted by Trial Attorneys Liam Brennan and Ryan S. Faulconer of the Criminal Division’s Fraud Section. The investigation was conducted by the Defense Criminal Investigative Service and members of the National Procurement Fraud Task Force (NPFTF).

Another “Project Exile Minneapolis”

Indictment is Unsealed in Federal Court

Another federal indictment credited to Project Exile Minneapolis has been unsealed. It charges Kevin Devon Wallace, age 29, of Minneapolis, with being a career criminal in possession of a firearm as well as possession of a stolen firearm. The indictment, filed on

October 13, 2010, was unsealed following Wallace’s arrest and initial appearance in federal court.

Project Exile Minneapolis is a law enforcement initiative, launched on July 22, 2010, as part of a City-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted–State or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors.

Because Wallace is a convicted felon, he is prohibited from possessing a firearm at any time. His past convictions include possession of a controlled substance with intent to deliver in Cook County, Illinois, in both 1999 and 2000; possession of a stolen motor vehicle in Cook County, Illinois, in 1999; terroristic threats in Ramsey County, Minnesota, in 2004; second degree burglary of a dwelling in Ramsey County in 2006; and possession of a controlled substance in Ramsey County in 2006. Nonetheless, on June 7, 2010, he was allegedly found in possession of a stolen nine-millimeter Glock semi-automatic handgun.

Since at least three of Wallace’s felony convictions are for crimes of violence or serious drug offenses, he is now being prosecuted as a federal armed career criminal.  Accordingly, if he is convicted of possessing a firearm on June 7, he will face a mandatory minimum sentence of 15 years in federal prison. He also faces a mandatory minimum sentence of ten years if convicted of the stolen firearm charge. All sentences will be determined by a federal district court judge.

Presently, several other Project Exile Minneapolis cases are being prepared for federal charges. Moreover, County and federal prosecutors continue to review all Minneapolis gun cases on a regular basis.  The Wallace case is the result of an investigation by the Minneapolis Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Man indicted in federal court under “Project Exile Minneapolis”

A man has been federally indicted under the Project Exile Minneapolis initiative. It charges Samnane Phabsomphou, age 32, unknown address, with being a career criminal in possession of a firearm as well as possession of ammunition. The indictment was filed earlier today in Minneapolis. Project Exile Minneapolis is a law enforcement initiative, launched on July 22, 2010, as part of a City-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted–State or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors.

Because Phabsomphou is a convicted felon, he is prohibited from possessing a firearm at any time. His past convictions include second-degree assault in Hennepin County in 1998; first degree controlled substance crime in Dakota County in 2003; and terroristic threats in Wright County in 2009. Nonetheless, on February 12, 2010, he was allegedly found in possession of a nine-millimeter handgun and ammunition.

Since at least three of Phabsomphou’s felony convictions are for crimes of violence or serious drug offenses, he is now being prosecuted as a federal armed career criminal.

Accordingly, if he is convicted of possessing a firearm on February 12, he will face a mandatory minimum sentence of 15 years in federal prison. He also faces a mandatory minimum sentence of 15 years if convicted of the possession of ammunition charge. All sentences will be determined by a federal district court judge.

Presently, several other Project Exile Minneapolis cases are being prepared for federal charges. Moreover, County and federal prosecutors continue to review all Minneapolis gun cases on a regular basis.

The Phabsomphou case is the result of an investigation by the Minneapolis Police Department, the Hennepin County Probation Office and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Steven S. Schleicher.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been  committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Georgia Man Sentenced to 20 Years for Distributing Child Pornography

RICHMOND,VA—Galen E. Vanord, 53, of Millen, Ga., was sentenced today to 20 years in prison, followed by a lifetime of supervised release, for distributing child pornography.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Michael F. A. Morehart, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by United States District Judge Henry E. Hudson. Vanord pled guilty on June 1, 2010.

According to court documents, Vanord was identified by law enforcement officers during an undercover investigation of individuals trading images of child pornography over the Internet. Vanord, a truck driver, traveled around the country and used his computer at truck stops. Law enforcement in Richmond downloaded 600 images of child pornography and one video from Vanord. In the course of their investigation, agents seized Vanord’s computer and hard drive, on which they found more than 14,000 images of child pornography. Most of these images were images of babies and toddlers. After hearing evidence at today’s sentencing, the court applied an additional sentencing enhancement for a pattern of sexual exploitation of a minor, based on images of a minor that were found on Vanord’s computer.

This case was investigated by the FBI’s Richmond Field Office. Assistant United States Attorney Jessica Aber Brumberg prosecuted the case on behalf of the United States.

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

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov/.

Atlanta Attorney Admits to Stealing Over a Half Million Dollars From His Law Firm

ATLANTA, GA—MICHAEL SHAW, 37, of Mableton, Georgia, pleaded guilty today to federal charges related to a scheme to steal over $500,000 from an Atlanta law firm.

United States Attorney Sally Quillian Yates said, “As a lawyer, Shaw had a duty to act with his clients’ best interests in mind. Instead, he used his position at the law firm to enrich himself at their expense. In the end, he lost his license to practice law and now faces federal prison.”

According to United States Attorney Yates, the charges and other information presented in court: SHAW was employed as an associate attorney at a large Atlanta law firm, specializing in bankruptcy and commercial-foreclosure litigation. From 2003 to 2009, SHAW regularly performed investigative services for clients himself, but submitted invoices in the name of an investigator who also worked for the firm. These invoices totaled approximately $90,000. At the same time, SHAW performed title-examination services for clients himself, but submitted invoices to the firm in the name of a fictitious vendor. He obtained the vendor’s social security number from federal bankruptcy filings and submitted fraudulent W-9 forms in the vendor’s name. These invoices totaled approximately $425,000. For almost six years, SHAW regularly performed work for clients, submitted fraudulent invoices to the firm’s accounting department, received checks, endorsed the checks over to himself, and deposited the funds into his personal checking account. During this period, he also continued to receive his regular law firm salary as well.

In June 2009, a client’s billing review caused the law firm to discover SHAW’s misconduct, and he was terminated. SHAW, a member of the Georgia Bar from 1999 to 2010, was also disbarred by the Georgia State Bar.

SHAW could receive a maximum sentence of 30 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.

Sentencing is scheduled for January 5, 2011, at 10 a.m. before United States District Judge Willis B. Hunt.

This case is being investigated by Special Agents of the Federal Bureau of Investigation.

Assistant United States Attorney Kurt R. Erskine is prosecuting the case.

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

GSA Awards Lease for New FBI Building in Kapolei

Penrose/Walsh to Construct New Modern Energy Efficient Facility

HONOLULU, HI—The U.S. General Services Administration (GSA) announced the award of a new lease for the U.S. Federal Bureau of Investigation (FBI). The build to suit lease was awarded to Penrose/Walsh of La Jolla, California. The award was based on competitive best value lease procurement. It will provide FBI with approximately 150,000 square feet, which allows for some expansion and desired consolidation. The site for the 20-year lease is at

Roosevelt Avenue

and

Enterprise Street

(on the former Barbers Point Naval Air Station) in Kapolei, Hawaii.

GSA established this as a Design Excellence project, which ensures excellence in public architecture, engineering and construction. The Design Excellence Program ensures an efficient working environment that can accommodate ongoing technological innovation and allow for a technologically state-of-the-art work place throughout the project's useful life. The new building will be designed and constructed to achieve a minimum of LEED Silver rating in the “New Construction” (LEED NC) category.

Penrose/Walsh will build a building that represents a contemporary design and yet is highly compatible with the surroundings of the Hawaiian culture. The building will feature innovative lighting and HVAC system. Additionally they will provide one full-time Chief Engineer/Property Manager and one full time assistant Chief Engineer/Property Manager housed in the main office building.

The FBI's primary mission is criminal investigation and intelligence. The priorities of the FBI have shifted to reshaping intelligence operations, enhancing the workforce, and building stronger partnerships. An important component of the refocused priorities of the federal agency is the availability of efficient and cost effective facilities, with up-to-date infrastructure in support of the FBI's mission. FBI also requires a facility that meets the Level 4 Interagency Security Committee (ISC) criteria, with sufficient space for the current and projected workforce.

The FBI is currently located in one federal building and one leased facility in Honolulu. The existing facilities are incapable of providing FBI the increased square footage necessary to support new functions and cannot meet enhanced IT infrastructure sufficient space to meet its current requirements and allow for full compliance with the ISC guidelines. This new build to suit lease project will meet the FBI's long-term housing needs in Honolulu.

For more information, please contact Ms. Gene Gibson at 415-264-9401.

Man Pleads Guilty to Silver City Attempted Carjacking

Earlier today, Kevin Maurice Brooks, 48, of Detroit, Michigan, pled guilty to a three-count second superseding indictment in federal court in Las Cruces. The indictment alleged that Brooks committed an attempted carjacking and related firearms charges on September 27, 2009, in Silver City, New Mexico.

According to a criminal complaint filed in May 2009, Brooks and his co-defendant Stephanie Landon, 35, of Silver City, were living in a camper trailer next to a mobile home occupied by the victims, David Vega, his wife Christy, and Christy’s minor daughter, when Brooks and Landon attempted to carjack the victims’ 1998 Ford Taurus. During an argument between Brooks and the victims, Brooks pointed a .40 caliber handgun at Mr. Vega and ordered him to retrieve the keys to the Ford Taurus. As Mr. Vega went to get the keys, Brooks fired a shot that missed Mr. Vega by a few feet. According to the complaint, Mr. Vega retrieved the keys and gave them to Brooks, who went outside and handed them to Landon. Brooks then went back inside the mobile home and told the victims that he was going to kill them. The complaint alleged that Christy’s daughter was present during this exchange and that she begged Brooks not to kill her parents. Brooks then fired two more shots in the direction of the victims, missing them by less than a foot.

Landon returned to the mobile home after loading the car and told Brooks that it was time to leave. Brooks asked Landon what he should do, and Landon told him: “You do what you think is best.” According to the complaint, Landon looked at Mr. and Mr. Vega and said: “You know what, just shoot them,” and walked back outside. Brooks again told the victims he was going to kill them and pulled a bandana over his face. Before Brooks could pull the trigger, however, Grant County Sheriff’s deputies arrived on the scene in response to a neighbor’s report of “shots fired.” The deputies ordered everyone outside and arrested Brooks and Landon.

United States Attorney Kenneth J. Gonzales stated:

“Because of the quick response by the Grant County Sheriff’s Office, innocent lives were saved in this case. Everyone in New Mexico should be able to feel secure in their homes, and I commend the dedicated efforts of the prosecutors in my office and of federal and local law enforcement who, working together, make our communities safer by arresting and prosecuting violent offenders.”

Brooks, who has been in custody since his arrest, pled guilty to attempted carjacking, in violation of 18 U.S.C. § 2119; using a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c); and being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g). Brooks faces a sentence of not more than 15 years for the attempted carjacking, a mandatory 10-year sentence for use of a firearm, which must be served consecutively to any other sentence imposed in case, and up to 10 years for being a felon in possession of a firearm. Brooks also faces up to three years of supervised release and a $250,000 fine on each charge.

This case was investigated by the Federal Bureau of Investigation in Las Cruces, the Grant County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Silver City Police Department. This case is being prosecuted by Assistant United States Attorneys Mark Saltman and Michael Nammar.

Four Charged in White Plains Federal Court in $2.8 Million Mortgage Fraud Scheme

PREET BHARARA, the United States Attorney for the Southern District of New York, JANICE K. FEDARCYK, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation ("FBI"), and PETER ZEGARAC, the Inspector-in- Charge of the New York Division of the United States Postal Inspection Service ("USPIS"), announced that PAULETTE GABBIDON, a/k/a "Paulette Hibbert," a/k/a "Paulette Webb," a/k/a "Alliyah Adstroy," a/k/a "Alliyah Hibbert," JASON LEWIS, and JOYCE LEWIS were arraigned last Friday in White Plains federal court on a Superseding Indictment charging them in 27 counts with conspiring to commit bank fraud and to make false statements to financial institutions, bank fraud, and making false statements to financial institutions. They had previously been charged in a five-count Indictment unsealed in June that was part of a nationwide mortgage fraud sweep. That Indictment charged them with one count of conspiring to commit bank fraud and four counts of bank fraud. A fourth defendant named in the Superseding Indictment, JAMON LEWIS, voluntarily surrendered last Tuesday. He was arraigned and released on bail conditions.

According to the Superseding Indictment:

GABBIDON was associated with businesses known as Mortgage Opt Corporation, Alliyah Advisory Group, Alliyah I Property Management Group, Alliyah I Advisory Group and Alliyah Hibbert Incorporation. For two years, from August 2003 through August 2005, GABBIDON, JASON LEWIS, JOYCE LEWIS, and JAMON LEWIS engaged in a scheme to defraud three financial institutions, National City Bank/National City Home Equity (hereafter, “NCB”), Wells Fargo Bank, and IndyMac Bank, by obtaining equity lines of credit and a mortgage through these financial institutions by submitting false and fraudulent information to the financial institutions.

In four instances, they obtained equity lines of credit from NCB on residential properties that did not actually exist but were represented to be located in Rockland County, New York, and New Jersey (hereafter, the “Fake Properties”). In other instances, they obtained equity lines of credit and mortgages on properties using the names and purported employment and financial information of other people, as well as other false information (hereafter, the “False Information Properties”). These properties were also located in Rockland County, New York, and New Jersey.

In order to obtain the loans, GABBIDON, JASON LEWIS, JOYCE LEWIS, and JAMON LEWIS submitted and caused to be submitted to NCB, Wells Fargo, and IndyMac certain documents, including, among other things, forms entitled “Loan or Line Registration/Submission Form,” loan applications, earnings statements, IRS Forms W-2, and appraisals that contained materially false and misleading information. For example, the loan applications for the Fake Properties misrepresented that the properties actually existed at the locations. Appraisals submitted in support of loan applications for the Fake Properties and certain False Information Properties were not appraisals for those properties, but were appraisals for other properties that had been altered and made to appear as if they were appraisals for the Fake Properties and False Information Properties. IRS Forms W-2 and earnings statements submitted and represented to be documents evidencing the employment and income history of the purported borrowers on the loans for the Fake Properties and certain False Information Properties were not genuine documents relating to the purported borrowers but had been altered and made to appear as if they were genuine. In furtherance of the scheme to defraud, and in connection with six of the loans, GABBIDON also acted as the settlement agent by falsely representing to NCB that she was an attorney.

After the loans were obtained, monthly payments were made for a short period of time and then stopped altogether. Thereafter, the loans went into default, leading the lenders to charge off the loans as losses or foreclose on the property. As a result of the scheme, GABBIDON, JASON LEWIS, JOYCE LEWIS and JAMON LEWIS obtained more than $2,800,000.

Following their arraignment before U.S. Magistrate Judge GEORGE A. YANTHIS, GABBIDON, JASON LEWIS, and JOYCE LEWIS were released on bail conditions. If convicted, they face a maximum term of five years in prison for the conspiracy count. They also face fines of up to $250,000 or twice the gross gain or loss resulting from that offense. GABBIDON, 40, of Quincy, Massachusetts, who was named in every count, also faces a maximum term of 30 years’ imprisonment on each of the bank fraud and false statements counts and fines of up $1 million or twice the gross gain or loss resulting from the crimes on each count. In addition to the conspiracy count, JASON LEWIS, 35, was named in four bank fraud and four false statement counts, for which he faces a maximum penalty of 30 years’ imprisonment and fines of up to $1 million or twice the gross gain or loss resulting from the crimes on each count. In addition to the conspiracy count, JOYCE LEWIS, 56, of Elmsford, New York, was named in three bank fraud and three false statement counts, for which she faces a maximum penalty of 30’ imprisonment and fines of up to $1 million or twice the gross gain or loss resulting from the crimes on each count. In addition to the conspiracy count, JAMON LEWIS, 35, of Elmsford, New York, was named in one bank fraud and one false statement count, for which he faces a maximum penalty of 30 years’ imprisonment and fines of up to $1 million or twice the gross gain or loss resulting from the crimes on each count. All four defendants also face orders of restitution in the amount of $2,852,400 and forfeiture of ill-gotten gains.

Mr. BHARARA praised the work of the FBI and the USPIS. He added that the investigation is continuing.

Assistant U.S. Attorney MARGERY B. FEINZIG of the Office’s White Plains Division is in charge of the criminal prosecution.

The charges contained in the Indictment are merely accusations, and the defendants ARE presumed innocent unless and until proven guilty.

Kansas City Woman Indicted for Identity Theft, Assaulting Federal Officers

KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced that a Kansas City, Missouri, woman was indicted by a federal grand jury today for aggravated identity theft and for assaulting federal officers with a vehicle while fleeing during pursuit.

Christine Lane

, 22, of Kansas City, was charged in a two-count indictment returned by a federal grand jury in Kansas City. Today’s indictment replaces a federal criminal complaint that was filed against Lane on Aug. 10, 2010. Lane remains in federal custody without bond.

Today’s indictment alleges that Lane stole the identity of another person on July 30, 2010. According to an affidavit filed in support of the original criminal complaint, Lane used another person’s identity information to purchase a vehicle. When U.S. Secret Service agents learned that Lane planned to return to the car dealership a few days later, the affidavit says, they were waiting for her.

On Aug. 3, 2010, Lane and an unknown male returned to the dealership. When they saw the federal agents, the affidavit says, they sprinted back to their vehicle with the agents in pursuit. The unknown male jumped into the driver’s seat and Lane jumped into the back seat behind the driver. Two U.S. Secret Service agents attempted to apprehend Lane and the driver; when he began to drive away at a high rate of speed, the affidavit says, both agents were dragged by the vehicle.

Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Federal Bureau of Investigation, the U.S. Secret Service, and the Kansas City, Mo., Police Department.

Attorney General Holder and Agriculture Secretary Vilsack Announce Settlement Agreement with Native American Farmers Claiming Discrimination by USDA

Settlement Addresses Discrimination Claims Made Over Farm Loan Programs

WASHINGTON –Attorney General Eric Holder and Department of Agriculture (USDA) Secretary Tom Vilsack today announced the settlement of a class action lawsuit filed against USDA by Native American farmers alleging discrimination by USDA. The settlement ends litigation concerning discrimination complaints from Native Americans generally covering the period 1981-1999.

"The settlement announced today will allow USDA and the Native American farmers involved in the lawsuit to move forward and focus on the future," said Attorney General Holder.  "Under the process established in this agreement, Native American farmers who believe they suffered discrimination will have their claims heard.  The Department of Justice is proud to partner with USDA in the agency’s effort to ensure fair and equitable treatment of its clients."

"Today’s settlement can never undo wrongs that Native Americans may have experienced in past decades, but combined with the actions we at USDA are taking to address such wrongs, the settlement will provide some measure of relief to those alleging discrimination," Secretary Vilsack said. "The Obama Administration is committed to closing the chapter on an unfortunate civil rights history at USDA and working to ensure our customers and employees are treated justly and equally."

Under the settlement agreement, $680 million will be made available to eligible class members to compensate them for their discrimination claims. Two payment "tracks" are available. Under the first track, persons who meet the class definition and provide substantial evidence of discrimination to an impartial adjudicator will receive a uniform settlement of up to $50,000. The second track is for those persons who meet the class definition and believe they have stronger evidence of economic losses caused by discrimination. This track requires a higher evidentiary standard and damage awards are capped at a maximum of up to $250,000 per individual. Actual monetary awards are subject to reduction based on the amount of available funding and the number of meritorious claims.

The judgment fund maintained by the Departments of Justice and Treasury will fund any monetary awards provided under the settlement. USDA will provide up to $20 million to administer the settlement.

In addition to the monetary award, the agreement provides up to $80 million in debt forgiveness to successful claimants with outstanding USDA Farm Loan program debt. Also, a moratorium on foreclosures of most claimants’ farms and a moratorium on accelerations and administrative offsets of class members’ farm loan accounts will be put into place until after claimants have gone through the claims process or the Secretary of Agriculture has been notified that a claim has been denied.

The settlement also provides a broad range of programmatic relief for Native American farmers, including creation of a new Federal Advisory Council for Native American farmers and ranchers that will include Native American representation from around the country as well as senior USDA officials. Meanwhile, a new ombudsman position will be created to address farm program issues relating to Native American farmers and ranchers as well as all other socially disadvantaged farmers and ranchers. The department will also offer Native American farmers enhanced technical assistance services through the establishment of a network that provides intensive instruction to recipients concerning financial, business and market planning skills and supports the deployment of tribal agriculture advocates and third party outreach and education providers.

This lawsuit, Marilyn Keepseagle et al., v. Vilsack (Civil Action No. 99-3119 (D.D.C.)), was filed on Nov. 24, 1999. The settlement will not become final until it is formally approved by the U.S. District Court for the District of Columbia.

DOJ and Department of Education Work Together to Improve Campus Safety

By Tracy Russo

The following post appears courtesy of Laurie O. Robinson, Assistant Attorney General, Office of Justice Programs.

Today, I had the opportunity to speak at the National Meeting on Alcohol and Other Drug Abuse and Violence Prevention in Higher Education sponsored by the Department of Education.  Together, the Departments of Justice and Education are addressing the important issue of campus security and ensuring that the latest crime prevention strategies are in place on our campuses.  In the words of Secretary of Education Arne Duncan, “No school can be a great school until it is a safe school first.”

Even though the crime rate on most college campuses is well below the rate in the general population, the recent shooting at University of Texas in Austin reminds us that when crime does occur, it has the potential to be catastrophic.

Attorney General Eric Holder and I are committed to enhancing student welfare as we focus on ways to develop effective crime prevention and intervention strategies.  Our campus safety efforts are helped by the Clery Act signed into law 20 years ago.  This law requires colleges to disclose information about crime on campus and to provide basic rights and services to victims of sexual assault.

The Clery Act is one positive step in the right direction and has advanced the debate on how to address campus violence.  A recent project funded by the Office of Justice Programs’ (OJP) Bureau of Justice Assistance (BJA), in partnership with the Major Cities Chiefs Association, surveyed 56 urban police departments and 177 campus public safety departments.  This survey found a great disparity in the level of communication and coordination between local police and campus policies. 

To improve this important partnership, BJA has published a set of campus security guidelines (PDF) written by the Major Cities Chiefs Association. These guidelines address issues ranging from risk assessment and emergency response plans to interoperable communications and media relations.  In addition, the Department’s Community Oriented Policing Services (COPS) office has trained more than 700 campus officials to help them identify individuals that may pose a threat to public safety and give them the help they need to avoid violence.

I mentioned earlier that the rates of most campus crimes are well below crime levels in the general population.  There is one exception – sexual assault.  OJP’s National Institute of Justice (NIJ) reported that a campus with 10,000 women could see as many as 350 rapes a year.  The underreporting of this crime makes it difficult to measure  –   we know 90 percent of sexual assaults are perpetrated by an acquaintance of the victim and alcohol is often involved.  I believe the key to addressing this issue is to implement NIJ’s recommendations on how campuses can respond to sexual assault, including ensuring adequate services are available, developing written response protocols, and educating students about how to prevent assaults.

Since 1999, the Department’s Office on Violence Against Women (OVW) has actively worked to address campus sexual violence through the $98 million in assistance it has provided to 300 institutions of higher education.  In March 2010, I joined several of my  Justice Department  colleagues in a tour of campuses across the country to raise awareness about these crimes on college campuses.

 We will continue these efforts—because a campus is a community and, like any community, the ability of its members to grow and thrive begins with a sense of security.

Federal Jury Convicts Former Chief Operations Officer for the National Center for the Employment of the Disabled

United States Attorney John E. Murphy announced that in El Paso this afternoon, a federal jury found former National Center for the Employment of the Disabled (NCED) Chief Operations Officer ERNESTO ALONZO LOPEZ, a.k.a. Ernie Lopez, guilty on federal charges related to embezzling millions of dollars in government program funds.

Jurors convicted Lopez on one count of conspiracy to make false statements and defraud the United States and one count of making false statements. The jury acquitted Lopez of the remaining fifteen charges including conspiracy to commit mail and wire fraud, mail fraud and wire fraud. Lopez, who faces up to five years in federal prison per count, is also subject to a $51,215,526.50 criminal forfeiture. Sentencing is scheduled for 9:00 a.m. on February 17, 2011, before U.S. District Judge Frank Montalvo.

Evidence presented during trial revealed that between November 2002 until March 2006, Lopez and former NCED CEO and President Robert Edward Jones conspired to lie to the Committee for Purchase from the Blind and Severely Disabled, falsely claiming NCED was in compliance with the Javits-Wagner-O’Day Act (JWOD). Being in compliance with JWOD entitled NCED to receive no-bid contracts from government agencies. These no-bid contracts are generally set aside for not-for-profit organizations who employ blind or other severely handicapped individuals for not less than 75 percent of the man-hours of direct labor required for the production or provision of the goods or commodities required on the government contract. Based on the evidence presented at trial jurors found that NCED was not in compliance with the requirements and thus not qualified to obtain JWOD contracts.

Bob Jones and Patrick Woods have pled guilty to charges stemming from this investigation. Both are awaiting sentencing.

This ongoing investigation is being conducted by agents of the Federal Bureau of Investigation (FBI); the U.S. Army Criminal Investigation Division-Major Fraud Unit; the General Services Administration-Office of the Inspector General (GSA-OIG); and, the United States Postal Service-Office of the Inspector General (USPS-OIG). The case is being prosecuted for the government by Assistant United States Attorneys William Lewis, Jr., and Steve Spitzer.

Former Employee Sentenced in Scheme Against Home Depot

Defendant Took Over $1.4 Million in Bribes

ATLANTA, GA—RONALD DOUGLASS MATHENY, II, 43, of Chattanooga, Tennessee, was sentenced today to federal prison by United States District Judge Richard W. Story for MATHENY’s role in a scheme to defraud his former employer, Home Depot.

United States Attorney Sally Quillian Yates said, “This defendant abused the trust and authority given to him by his employer and lined his own pockets at the company's expense. For this fraud against his employer, he now goes to federal prison.”

IRS Special Agent In Charge Reginael D. McDaniel said: “It is vital for the strength of our economy for our large corporations to be free of individuals who succumb to greed and corruption. IRS Criminal Investigation is committed to actively pursuing corporate fraud at any level.”

MATHENY was sentenced to serve 2 years, 3 months in federal prison to be followed by 3 years of supervised release on charges of conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering. MATHENY was also ordered to pay restitution in the amount of $502,000, pay a fine of $7,500, and ordered to perform 200 hours of community service. MATHENY pleaded guilty to the charges on May 19, 2009.

According to United States Attorney Yates and information presented in court: MATHENY was employed by Home Depot from May 1987 until July 2007. From May 2002 through April 2005, MATHENY held the position of Product Merchant in Home Depot's Flooring Department and was responsible for overseeing the location of flooring merchandise in all of Home Depot's retail stores and for locating outside firms to facilitate the display of flooring products within those stores. MATHENY and several unnamed co-conspirators arranged for Home Depot to purchase items for resale in Home Depot's retail stores on less than the most advantageous terms to Home Depot, and to have the co-conspirators supply services on less than the most advantageous terms to Home Depot. In return, MATHENY'S co-conspirators paid him approximately $1,471,467.64. MATHENY is no longer employed by Home Depot.

This case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation.

John R. Fitzpatrick and Barbara W. Cash, Trial Attorneys for the United States Department of Justice Antitrust Division, Atlanta Field Office, and Assistant United States Attorneys Russell Phillips, Michael J. Brown, Gerald S. Sachs, and Sally Molloy prosecuted the case.

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

East St. Louis Man Pleads Guilty to Assault and Firearm Offenses

Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 15, 2010, ANDRE P. INGRAM, age 47, of East St. Louis, Illinois, pled guilty in United States District Court in East St. Louis, Illinois, to assault of a federal officer and possession of a firearm by a previously convicted felon. INGRAM also agreed to forfeiture of the firearm used in the offenses and any and all ammunition.

INGRAM is currently scheduled to be sentenced on January 14, 2011. On the assault charge, INGRAM faces a possible maximum sentence of up to 20 years’ imprisonment, a fine of up to $250,000, not more than three years of supervised release upon release from imprisonment, and a $100 special assessment. On the felon in possession charge, INGRAM faces a possible maximum sentence of not more than 10 years’ imprisonment, a fine of up to $250,000, not more than three years of supervised release upon release from imprisonment, and a $100 special assessment.

According to court documents, the violations occurred on or about February 2, 2010, when agents of the FBI and Illinois State Police went to a residence in East St. Louis in an attempt to find individuals who had just fled from the police. INGRAM answered the door but initially refused to come out in the open. When he did exit the residence, he had a fully loaded firearm in his hand which he raised and started to point it at the police officers. INGRAM was shot by law enforcement officers during the attempt to disarm him.

Stu McArthur, Special Agent in Charge of the FBI Springfield Division, stated “law enforcement officers put their lives on the line every day and they are sworn to protect and serve their communities. The two agents involved confronted this dangerous felon, and we are all thankful that there were no fatalities as a result of this situation. The community can be proud that these agents continue to accomplish their mission to combat crime in the East St. Louis area.”

Commander Scott Abbott, Illinois State Police, stated, “as police officers, we are charged with the responsibility of protecting lives, including our own. It is rare that an officer has to use a firearm to carry out this responsibility but sometimes we must. This incident was an example of our responsibility and it was an unpleasant reality for all involved. All the officers involved in operation WAVE have displayed the utmost professionalism and have continued their efforts to reduce crime and protect the public in the metro-east.”

The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. WAVE was formed in November, 2009, and is a collaboration of law enforcement officers from the Illinois State Police, the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI), the St. Clair County Sheriff’s Department, the East St. Louis Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshals Service. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gunrelated violence. The case is assigned to Assistant United States Attorney Deirdre A. Durborow for prosecution.

U.S. Marshals End the “joy ride” for Sex Offender at the state fair

U.S. Marshals apprehended Shawn Downer at the South Carolina State Fairgrounds on Wednesday October 13th, 2010.  The Yarmouth Police Department in West Yarmouth, Massachusetts requested assistance from the U.S. Marshals in Boston, Massachusetts in locating and arresting Downer.  Downer was originally charged with Possession of Child Pornography on July 11th, 2005, Sex Offense Against a Child on February 15th, 2006 and Failure to Register as a Sex Offender on or about November 17th, 2009 in the state of Massachusetts.  Downer works for a traveling New York vendor providing food at local and state fairs across the country. 

U.S. Marshals led task force Operation Intercept received the request for assistance in locating Downer at the state fairgrounds in Columbia, South Carolina.  Deputy U.S. Marshals and task force officers developed information on the location of Downer inside the fairgrounds and arrested him without incident.  Downer was transported to the Matthew J. Perry Federal Courthouse in Columbia, South Carolina where he was arraigned and denied bond.  Downer waived extradition and is now waiting to be transported to Massachusetts.  Downer is being housed at the Lexington County Detention Center.

U.S. Marshal Kelvin Washington  stated “The U.S. Marshals have a responsibility in apprehending wanted sex offenders.  The Adam Walsh Act of 2006 directs the U.S. Marshals to assist state, local, tribal, and territorial authorities in locating and apprehending these individuals. The hard work and dedication of all law enforcement involved has proved once again that fugitives can attempt to hide in our great state, however the tireless efforts of our trained investigators will bring them to justice.”

Established in 1789, the United States Marshals Service is the nation’s oldest federal law enforcement agency. In fiscal 2009, the Marshals arrested more than 36,400 federal fugitives, clearing 39,400 felony warrants.  Marshal’s Service-led task forces like South Carolina’s Operation Intercept arrested 90,800 state and local fugitives, clearing 117,000 felony warrants. Locally, Operation Intercept arrested over 2,500 South Carolina fugitives during that same period. More information about the Marshals and other South Carolina fugitives can be found on the web at http://www.usmarshals.gov/.