Federal Prosecutors Target White-Collar Criminals in Middle Tennessee

Nineteen people are facing federal charges as a result of an intense focus by the U.S. Attorney’s Office to address white-collar crime in Middle Tennessee, announced U.S. Attorney Jerry E. Martin. In recent weeks, federal prosecutors have charged 19 people in 10 separate cases involving fraudulent schemes, which collectively have scammed more than $40 million from numerous victims and corporations.

“If you defraud investors or otherwise engage in fraudulent schemes, then you will eventually get caught—and when you get caught, you should expect to be prosecuted by the federal government and face a long sentence with no parole,” said U.S. Attorney Jerry Martin. “As demonstrated by these cases, the U.S. Attorneys Office and our law enforcement partners are aggressively pursuing those who seek personal gain from fraudulent activity, with no regard for the victims left in their wake. Fraudulent schemes always catch up to the fraudsters and the consequences of running one are severe.”

Recent cases indicted or otherwise charged with federal crimes where significant financial losses resulted from fraudulent schemes include:

Aaron Vallett, 34, of Nashville, Tenn., was charged in a criminal information on February 13, 2012,with mail fraud, wire fraud, and theft from an Employee Retirement Income Security Act (ERISA) plan.

Vallett was a financial advisor who owned his own firm in Brentwood, Tennessee and offered various financial services, including investment advice and 401(k) management. It was through those services that Vallett defrauded numerous clients of approximately $5 million dollars. Much of the loss came from investor-clients who placed money in one of Vallett’s investment “Funds.” Instead of investing that money as promised, Vallett kept it in his company’s operating account and spent it on various personal and business expenses. Vallett’s 401(k) advisory clients suffered a similar fate. Because Vallett was the plan administrator for several clients’ 401(k) plans, he had access to their retirement accounts and transferred funds from those retirement accounts to his operating account and again, spent the money on personal and business expenses. He later attempted to conceal his fraud by lying to securities regulators and falsifying certain documents.

David Mark Lineberry, 41, of Kissimmee, Fla., formerly of Mt. Juliet, Tenn.; and Delaina Thompson, 40, of Mt. Juliet, Tenn., were indicted by a federal grand jury in Nashville on February 8, 2012, on charges of conspiracy to commit bank fraud and wire fraud, six counts of bank fraud, one count of mail fraud, two counts of wire fraud, and three counts of money laundering.

The indictment alleges that between in or about January of 2008 and September 29, 2011, Lineberry and Thompson conspired to commit bank fraud and wire fraud in connection with a loan obtained from Branch Banking and Trust Company for the purpose of constructing Hotel Indigo in downtown Nashville. According to the indictment, Branch Banking and Trust Company suffered a loss totaling approximately $5,046,659.31 and Fidelity National Title Insurance Company suffered a loss totaling approximately $4,158,777.69 as a result of the alleged scheme to defraud.

James Shaub II, 54, of Nashville, was indicted by a federal grand jury on February 8, 2012 and charged with bank fraud and money laundering.

Shaub was the president and chief executive officer of Southeast Waffles, Inc., a franchise of Waffle House Restaurants. Over a period of approximately eight months, Shaub, with the assistance of his chief financial officer, executed a check kiting scheme between First Bank and SunTrust Bank with a resulting loss to SunTrust Bank of approximately $3.7 million.

William Weaver, III, 35, of Brentwood, Tennessee, was charged in a criminal information on February 3, 2012, with wire fraud and money laundering.

Weaver is a former Nashville attorney who committed three related frauds that caused a total loss of over $2.5 million. The frauds fall into two schemes. The first scheme occurred while Weaver worked as a manager in R.R. Donnelly’s tax group. In that position, he stole over $1 million by directing payments to a fake “consulting” company which he had created. The second scheme occurred while Weaver worked as a lawyer in his own title company, W.G. Weaver Title Co. That scheme had two components: (1) Weaver misdirected to his own account approximately $400,000 of a client’s funds intended to pay off a mortgage; and (2) Weaver converted to his own use over $1 million of a corporate client’s funds that were to be held in escrow pending a property transaction. In both cases, Weaver used and lost, all of the fraudulent proceeds by day-trading.

Roy Daniel Webb, 42, of Nashville, was charged in a criminal information on January 4, 2012 and charged with wire fraud.

From 2007 to 2010, Webb, a licensed insurance producer, doing business as Security Risk Managers, located in Brentwood, Tennessee, negotiated multi-tiered policies underwritten by multiple insurers for numerous large businesses. As part of the scheme, Webb misrepresented and over billed the amount of premiums to his customers, receiving approximately $319,000 in proceeds from his scheme to defraud.

In addition, Webb kept his customer’s premium payments and told them that they had coverage, when in fact they did not. The case was referred to the FBI from the Tennessee Department of Commerce and Insurance (TDCI) after TDCI received multiple complaints from unrelated insurers that Webb had counterfeited renewal and billing notices and provided the notices to policyholders in order to misappropriate premiums from them. The victims included, among others, Litchfield Land Holding, LLC; Hirschfeld Holdings, L.P.; and Stanlou Tobacco Company, Inc.

Bernard Stanton, 22, Troice Leslie Stanton, 30, Connie Rena Stanton, 50, Shawanna Nichole Bolden, 29, and Canisha Denise Alred, 28, all of Nashville, were indicted by a federal grand jury on January 25, 2012, and charged with conspiracy, bank fraud and wire fraud, after devising and participating in a scheme to defraud Wal-Mart Stores of approximately $700,000.00.

The scheme consisted of utilizing the personal checks and identification of various individuals to fraudulently purchase Green Dot gift cards which the defendants would then use to obtain cash through ATM debit transactions or electronic transfers. The scheme was conducted at multiple Wal-Mart Stores in more than a dozen states.

Ricky R. Ingram, Sr., 53, of Rembert, South Carolina, Tommy L. Walton, Sr., 74, of Greenville, South Carolina, and Tommy L. Walton, Jr., 32, of Huntersville, North Carolina, were indicted by a federal grand jury on January 19, 2012 , on mail and wire fraud charges, based upon kickbacks paid by the Waltons to Ingram, while he served as the president of the Clarksville, Tennessee Department of Electricity, in exchange for consulting work that he awarded to them.

During the 10 months that he served as president of the Clarksville Department of Electricity, Ingram approved no-bid consulting work for various projects purportedly performed by Tommy L. Walton, Sr. and his son, Tommy L. Walton, Jr. The younger Walton submitted 14 invoices to the Clarksville Department of Electricity totaling $156,139.39 during a period of six months. During that same time, Walton, Jr. wired funds totaling $51,500 to Ingram’s bank account and to a debt recovery firm collecting debts owed by Ingram. Walton, Sr. submitted eight invoices to the Clarksville Department of Electricity totaling $32,150 during a period of seven months. During that time, Walton, Sr. issued checks to Ingram totaling $16,015 and deposited those checks into Ingram’s bank account.

Edward Shannon Polen, 41, of Greenbrier, Tennessee, was charged in a criminal information on January 9, 2012, with mail fraud, wire fraud, bank fraud and money laundering, after operating an investment Ponzi scheme that defrauded approximately 68 investors of more than $15.3 million.

Polen’s overall scheme to defraud involved three separate, but connected, investment programs in which victims were promised a return of their invested principal along with a substantial profit. All three investment programs were bogus, and Polen never invested any of the money he solicited from victims. Instead, he used investor funds to place bets with local bookies, pay gambling debts, and repay other investor-victims.

The bogus investment opportunities created by Polen were identified as the “John Deere Investment,” a fictional opportunity to purchase repossessed tractor and farm equipment, which were then resold within 30 days for a profit; the “Greenway Investment,” fictional construction of “greenways” by various governmental agencies, with Polen supposedly participating as a supplier of materials; and the “Tennessee Valley Authority (TVA) Coal Ash Cleanup Investment,” related to the coal ash spill at TVA’s Kingston Fossil Plant, with Polen offering investors the opportunity to participate in the clean-up process and be reimbursed by the government at a profit. Polen’s use of the three investment opportunities was all part of the same Ponzi scheme because he routinely “rolled-over” funds from one investment to the next, and used incoming funds designated for one investment to pay-off investors in another.

Polen was successful in soliciting investors for the schemes, in large part, because of his reputation in Robertson County, Tennessee for being a savvy and trustworthy businessman with “insider” political connections. Polen had been active in local and state politics, having served in a variety of elected or appointed public positions, including County Commissioner for Robertson County, Chairman of the Democratic Party of Robertson County and had been appointed during the administration of former Tennessee Governor Phil Bredesen to serve as a member of the Tennessee Collection Services Board, an appointment that Polen still held at the time he was arrested in March, 2011. Polen’s victims were unaware that he had a serious gambling problem, and needed a continuous flow of cash to support his gambling activities.

Francisco Arias, 43, of Nashville, was indicted by a federal grand jury on October 5, 2011, and charged with wire fraud, securities fraud and money laundering.

Arias was a former resident of Florida who claimed to be a successful day trader and a disgruntled member of an elite, special-operations military unit. He used that unusual combination of claims to defraud several investors, including his father-in-law, who was his principal business partner.

Arias’s scheme centered around alleged currency trading on the foreign exchange (Forex) market and two related investment-consulting businesses, Adeius Corporation (Adeius) and Adeius Capital Management (ACM), which were formed by Arias and his father in law. Arias deceived his father in law into forming the companies and doing nearly all the front work for the businesses, while Arias allegedly performed the investing. In reality, Arias took money from clients but invested very little of it, stealing most instead. Ultimately, Arias parted ways with his father-in-law, was sued civilly by several victims and declared bankruptcy. He is now in federal prison in Miami on unrelated charges.

Roger Farley, 53, of Centerville, Tennessee was sentenced on January 31, 2012, to 46 months in prison and ordered to pay more than $1.2 million in restitution for his part in a conspiracy involving fraudulent loans and bribery of a local bank’s loan officer.

Farley was indicted by a federal grand jury in August, 2010 and subsequently pleaded guilty to one count of criminal conspiracy and one count of bank bribery. The fraud subjected the First Federal Bank in Centerville, Tenn. to more than $1.8 million of loss when the loans defaulted. Two co-defendants, Jarrod Jordan,32, of Paragould, Ark., formerly of Hohenwald, Tenn. and Charles Mikan Harris, 34, of Clarksville, Tenn., still await sentencing.

Each defendant in these cases, if convicted, faces a maximum of at least 20 years in prison and a $250,000 fine.

Charges brought in the cases outlined above are representative of the high priority given to fraud cases by the U.S. Attorney’s Office and are the result of the coordinated efforts of the U.S. Attorney’s Office-White Collar Crime Unit and the following agencies:

The FBI; the U.S. Secret Service; the IRS-Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Department of Labor-Employee Benefit Security Administration; the U.S. Securities and Exchange Commission; The Financial Industry Regulatory Authority; the FDIC-OIG; the TVA-OIG; the Special Inspector General-Troubled Asset Relief Program (SIGTARP); the Tennessee Department of Commerce and Insurance-Securities Division; the Tennessee Attorney General’s Office; The Tennessee Bureau of Investigation; and the Hendersonville, Tennessee Police Department.

These cases are being prosecuted by Assistant United States Attorneys assigned to the White Collar Crime Unit, including; John K. Webb; Sandra G. Moses; Ty Howard and Byron Jones.

Charges brought by an indictment or criminal information are merely accusations and are not evidence of guilt. Each defendant has the right to a trial, at which, the government must bear the burden of proof beyond a reasonable doubt.

FBI Warns of Telephone Scam

Daniel McMullen, Special Agent in Charge (SAC) of the FBI in Mississippi, is notifying the public about a telephone scam that is targeting Mississippi residents.  The scam begins with a call during which the recipient is advised that they are eligible for a grant from the Grants Department of the Federal Government.  The grant is to be used for home/residential purposes and amounts vary from $5,000 to $10,000.  A claim code containing two letters and three numbers is provided, along with a telephone number beginning with “202,” which is a Washington, D.C. area code.  The recipient is then asked to provide either credit card or banking account information in order to pay a processing fee for the grant, or they are told to send funds via Western Union.

The Jackson Office of the FBI has received multiple complaints from residents who have received one of these phone calls and who describe the caller as having a foreign accent.

As with most scams, the best protection against fraud is public awareness.  SAC McMullen has the following advice to help you avoid becoming a victim of a scam:

1.Scammers count on your lack of knowledge, so take the time to educate yourself about any offer you receive.

2.Don’t be pushed into a hasty decision.

3.Don’t provide financial information over the phone to unfamiliar companies or agencies.

4.Fraudulent telemarketers understand human nature – we all want to believe that it’s our lucky day, that we can get a great deal, or that we can solve our financial problems.

5.It’s illegal for telemarketers to ask for a fee up front if they promise or claim it’s likely they’ll get you a credit card or loan, or to “repair” your credit.

 “Telephone scammers cannot take money from you – you have to give it to them,” said SAC McMullen.  “Be skeptical.  Be smart.”

If you receive one of these calls, please remember that when you send money to people you do not know personally or give personal or financial information to unknown callers, you increase your chances of becoming a victim of telemarketing fraud.

 If you have information about a fraud, report it to a state, local, or federal law enforcement agency.  You may call the Jackson Field Office of the FBI at 601/948-5000.

Additional tips for avoiding telemarketing fraud can be found at FBI.gov/scams-safety/fraud.

Four Convicted in Multi-Million-Dollar Hemophilia Medication Kickback Scheme

United States Attorney Kenyen R. Brown announces today that a federal jury has convicted Lori Brill, Butch Brill, Jeff Vernon, and Chris Vernon of various charges arising out of their participation in a scheme to bill Alabama Medicaid for unnecessary hemophilia medication and to supply inducements, in the form of illicit commission payments, for Medicaid referrals.

In announcing the convictions, Mr. Brown stated, “Health care fraud in the United States costs consumers billions of dollars, whether the victim is a private medical insurer or a public program such as Medicaid. Individuals exhibiting sheer greed through extensive fraudulent billing and awarding improper inducements for Medicaid business are driving up health care costs and are depriving those who really need medical assistance as provided by these government funded programs. Our office, in conjunction with our law enforcement partners, will aggressively continue to safeguard precious taxpayer dollars, protect our nation’s most essential health care programs, and dismantle criminal networks that bilk the system.”

Mobile Division Special Agent in Charge, Lewis M. Chapman, stated: “This conviction sends a strong message to those who abuse our tax dollars to enrich themselves that they will be identified, caught, and punished.” Chapman further stated: “This conviction was also the direct result of a strong interagency effort which allowed the leveraging of resources and strengths to achieve this outcome.” Anyone with information regarding such fraudulent activity is encouraged to contact the FBI.

The evidence at trial demonstrated that Lori Brill (“Brill”), mother of a hemophiliac son, ran a hemophilia care company known as Hemophilia Management Specialties, Inc. (“H.M.S.”), which provided cost free services to clients who suffered from hemophilia, including, among other things, ordering their extremely expensive medication called “Factor” through MedfusionRx, L.L.C., a speciality pharmacy owned and operated by brothers Jeff and Chris Vernon. The Factor costs of hemophilia sufferers can, on average, be in the hundreds of thousands of dollars each year. In fact, in 2009 alone, Alabama Medicaid reimbursed specialty pharmacies over $21 million for the Factor claims of just 87 hemophilia sufferers, most of whom were children. In an effort to increase commissions received from Medfusion, Brill worked with her estranged husband Butch Brill and H.M.S. employees Ashley Sprinkle and Sherry Demouey, both of whom previously pleaded guilty to health care fraud charges stemming from their roles in this scheme, to falsify the Factor tracking logs of H.M.S. clients. Together, and at the direction of Lori Brill, they manipulated logs to indicate that H.M.S. clients took the maximum amount of Factor at the greatest frequency allowed under their prescriptions without verifying the clients’ actual usage. These logs were then forwarded to Medfusion to order more Factor medication. In turn, the unnecessary medication was billed to Medicaid. One hemophilia client whose logs were manipulated was Travis Goodwin, who pleaded guilty just before trial to aiding and abetting healthcare fraud. Based on this scheme, the jury convicted Lori and Butch Brill of conspiracy to commit healthcare fraud, pursuant to 18 U.S.C. § 1349.

The trial evidence further demonstrated that Jeff Vernon and Chris Vernon paid illicit kickbacks to Brill and another patient manager, Leroy Waters, himself a hemophilia sufferer, in order to induce them to fill their Medicaid clients’ Factor prescriptions at Medfusion. Brill had an unlawful commission agreement with the Vernons whereby she received commissions equal to 45 percent of the profits the pharmacy generated by filling the Factor prescriptions of H.M.S. clients who were Medicaid recipients. Likewise, the Vernons and Waters had an illegal commission agreement which mirrored Brill’s, with Waters receiving commissions totaling 50 percent of the profits Medfusion brought in from filling his Medicaid clients’ Factor prescriptions. Waters pleaded guilty just before trial to a substantive anti-kickback charge due to his receipt of these illicit commissions. Based on this scheme, the jury convicted Lori Brill and Chris Vernon of three substantive charges of violating the anti-kickback statute, pursuant to 42 U.S.C. § 1320a-7b(b). The jury convicted Jeff Vernon of one count of conspiracy to violate the anti-kickback statute, pursuant to 18 U.S.C. § 371, and six substantive counts of violating the statute.

Sentencings for Lori Brill, Butch Brill, Jeff Vernon, and Chris Vernon are set for June 11, 2012.

In the interim, the United States will be seeking money judgments against all defendants totaling approximately $5 million dollars.

The case was jointly investigated by the Federal Bureau of Investigation and the Department of Health and Human Services-Office of Inspector General. Assistant United States Attorneys Gregory A. Bordenkircker, Adam W. Overstreet, and Christopher J. Bodnar, prosecuted the case for the United States.

Georgetown Man Pleads Guilty to Bankruptcy Fraud Scheme

BOSTON—A Georgetown man was convicted today in federal court of committing a bankruptcy fraud scheme.

John Pregent, “aka” Jack Pregent, 61, pleaded guilty before United States District Judge George A. O’Toole to one count of bankruptcy fraud involving a scheme to defraud. Sentencing is scheduled for May 15, 2012 at 2:30 p.m. He faces up to five years in prison to be followed by three years of supervised release and a $250,000 fine.

Pregent owned the precision machine part manufacturing business Technical Fabrications, Inc. (“TechFab”) which operated in Newburyport until it filed for bankruptcy in July 2010. Pregent engaged in a scheme to defraud TechFab’s creditors, bankruptcy trustee and the bankruptcy court by transferring certain TechFab assets, including equipment and ongoing business, to a newly formed company. Pregent arranged for that new company to pay compensation for TechFab’s assets directly to himself, then filed a Chapter 7 bankruptcy for TechFab to discharge its debts all while concealing the pre-bankruptcy transfer of assets and the agreement to pay compensation for those assets to Pregent. Furthermore, Pregent failed to disclose the transfers and compensation agreement in TechFab’s bankruptcy pleadings and during his testimony before a meeting of creditors.

U.S. Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation-Boston Field Office made the announcement today.

The case was referred for investigation by the U.S. Trustee’s Office in Boston and was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.

CBP Officers Seize More Than $220k In Coke

San Luis, Ariz. — Customs and Border Protection officers assigned to the Tucson field office seized more than 24 pounds of cocaine, valued in excess of $220,000, at the Port of San Luis Monday.

A 45-year-old Yuma man attempting to enter the United States was selected for a secondary inspection of his Chevrolet sedan. After a detection canine alerted to the presence of drugs and the vehicle was run through a routine x-ray, officers located 10 packages of cocaine in a non-factory compartment alongside the vehicle frame. The drugs and vehicle were processed for seizure. The man was arrested and turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

During January, more than 251 pounds of cocaine valued nearly at $2.3 million were seized at Arizona’s ports. That brings the year-to-date seizures for fiscal year 2012, which began Oct. 1, 2011, to almost 992 pounds valued at more than $9 million. The total seizure for fiscal year 2011 was more than 5,067 valued at more the $46.1 million.

Individuals arrested may be charged by complaint, the method by which a person is charged with criminal activity, which raises no inference of guilt. An individual is presumed innocent unless and/or until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP's Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation's food supply and agriculture industry from pests and diseases.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Delaware County Man Sentenced to 78 Months in Child Pornography Case

PHILADELPHIA—David Devine, 35, of Chester Heights, Pennsylvania, was sentenced today to 78 months in prison for distribution and possession of child pornography. Devine pleaded guilty November 14, 2012, admitting that on August 17, 2009, he distributed, over the Internet, videos that depicted children being sexually abused, and, on August 4, 2010, he possessed in excess of 600 images of child pornography. Prior to his arrest, Devine had been a first grade teacher.

In addition to the prison term, U.S. District Court Judge Gene E.K. Pratter ordered seven years’ supervised release, and ordered Devine to surrender to authorities to begin serving his sentence on February 16, 2012.

The case was investigated by the Delaware County District Attorney’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Michelle Rotella and Michael Levy.

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, 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 Projectsafechildhood.gov.

Former NCDMV Official Sentenced for Fraud Scheme

NEW BERN—United States Attorney Thomas G. Walker announced that in federal court on February 13, 2012, WILLIAM C. TOMAN, JR., 53, of Fayetteville, North Carolina, was sentenced to 18 months’ imprisonment followed by three years’ supervised release. The court also imposed restitution of $15,000 to be paid to the victims in the case. The court enhanced TOMAN’s sentence due to his attempt to obstruct the investigation.

A criminal information was filed on September 14, 2011, charging three counts of mail fraud, in violation of Title 18, United States Code, Section 1341. On November 14, 2011, TOMAN pled guilty to the charges.

According to the information, in January, 2006, TOMAN was appointed to the position of District Supervisor of the Division of License & Theft Bureau for the North Carolina Department of Motor Vehicles (NCDMV), and stationed in the Fayetteville office. His official duties included choosing how to best utilize NCDMV funds allocated for undercover operations, including control purchases of stolen equipment and motor vehicles, and communicating with insurance company representatives regarding reimbursement. In 2009, TOMAN used his official position to obtain three $5,000 contributions from insurance companies to be used in funding further NCDMV undercover operations, but instead converted the funds to his personal use.

Mr. Walker commented: “At every level of government, officials are invested with authority, with responsibility and with the trust of the citizens of this state. Here, for his own personal gain, the defendant forgot his duty to the citizens. The sentence imposed will serve as a stark reminder to all of us who serve in government that we have a trust to keep with the public.”

Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney Dennis Duffy is serving as prosecution for the government.

U.S. Attorneys Announce Successful State-Wide Prescription Drug Abuse Summit

The following post appears courtesy of the United States Attorney for the Eastern District of Kentucky  

Kentucky’s U.S. Attorneys Kerry B. Harvey and David J. Hale, in conjunction with the University of Kentucky (UK), hosted Kentucky’s first Prescription Drug Abuse Summit earlier this month.  The one-day event was attended by more than 300 health care providers, educators, law enforcement officers, public officials and high school students.  The summit focused on increasing collaboration across disciplines to combat prescription drug abuse, one of the Kentucky’s most urgent, destructive and widespread challenges.

During the day-long conference, the audience heard from approximately 30 speakers including the U.S. Attorney for the Southern District of Florida Wifredo Ferrer. Because south Florida pain clinics have historically been a primary source of illegal prescription narcotics in Kentucky, U.S. Attorney Ferrer was invited to address the conference.  U.S. Attorney Ferrer highlighted the recent successes Florida authorities to investigate, prosecute and close rogue pill mills.

A number of faculty members from UK’s Colleges of Medicine, Pharmacy and Dentistry spoke along with Kentucky’s Governor and Attorney General.   The event incorporated panel discussions led by experts in law enforcement, health care, mental health and education who shared their experiences with the pernicious effects of prescription narcotic abuse.  The three U.S. Attorneys held a private meeting with the approximately 50 high school students from across the state who attended the Summit. These students are involved in their schools’ mass media programs and covered the Summit for their respective school newspapers, yearbooks and television outlets.     In addition to warning them of the dangers of prescription drug abuse, U.S. Attorneys Harvey, Hale and Ferrer fielded questions from the students.

Summit attendees heard a first-hand account from a U.S. Military Veteran who battled a severe addiction with prescription drugs.   Dustin Gross was a Marine Lance Corporal in the Iraqi War and suffered serious injuries after being hit by a roadside bomb.  Thanks to the treatment and counseling he received at the Louisville veterans hospital, Dustin now lives without narcotics, and is an inspiring example to others.

Law enforcement in Kentucky has made prescription pill abuse one of its highest priorities.  In 2010 and 2011, the U.S. Attorney’s Office in the Eastern District of Kentucky prosecuted approximately 120 cases related to prescription pills, more than double the prosecutions involving any other type of drug.  In the Western District of Kentucky, the number of defendants charged with prescription narcotics trafficking more than doubled in 2011 over the previous year.

Columbia County Man Indicted on Federal Child Pornography Charges

JACKSONVILLE, FL—United States Attorney Robert E. O’Neill announced today that Robert Allen Brammer (24, High Springs) has been indicted by a federal grand jury on child pornography charges. Brammer is charged with two counts of receiving child pornography and one count of possession of child pornography. On each of the receipt counts, he faces a mandatory minimum of not less than five years and up to 20 years in federal prison. On the possession count, Brammer faces up to 10 years in federal prison. Brammer was arrested at his residence in High Springs on February 11, 2012.

This case was investigated by the Federal Bureau of Investigation, the Alachua County Sheriff’s Office, and the Columbia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about Internet safety education, please visit www.projectsafechildhood.gov and click on the tab “other resources.”

Nogales CBP Officers Nab Currency Smuggler at Port

Nogales, AZ. — Customs and Border Protection officers assigned to the Tucson Field Office seized nearly $169,000 in unreported U.S. currency Sunday from a man headed for Mexico through the Dennis DeConcini Port. 

Officers conducting outbound inspections selected a 35-year-old Mexican man, traveling with his minor nephew, for additional questioning and a closer examination of his Toyota truck. When officers noticed the truck’s speakers had been tampered with, they decided to remove them for further inspection and found 19 packages containing $168,998.

The unreported funds and vehicle were processed for seizure. The man was arrested and turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The boy was released to his mother without further incident.

Individuals arrested are charged with a criminal complaint, which raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP's Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation's food supply and agriculture industry from pests and diseases.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

U.S. Customs and Border Protection Officers Seize Over $1.6 Million in Cocaine at Hidalgo Port of Entry

Hidalgo, Texas – U.S. Customs and Border Protection (CBP) officers at the Hidalgo Port of Entry intercepted a load of alleged cocaine. CBP officers discovered the alleged narcotics valued at approximately $1,640,944 hidden within a Honda Civic.

CBP officers at the Hidalgo Port of Entry intercepted a load of alleged cocaine. CBP officers discovered the alleged narcotics valued at approximately $1,640,944 hidden within a Honda Civic. 

On Tuesday, February 14, 2012 CBP officers working at the Hidalgo International Bridge encountered a 2006 Honda Civic driven by a woman. The CBP officer’s primary examination resulted in the vehicle and its driver, identified as a 29-year-old Mexico citizen who resides in Reynosa, Tamaulipas, Mexico being referred to CBP secondary for further examination. While in CBP secondary, officers discovered 20 packages concealed within the Honda Civic. CBP officers removed the packages from the vehicle with a combined total weight of 23.26 kilograms (51.2795 pounds) of alleged cocaine.

The alleged cocaine from this seizure has an estimated street value of approximately $1,640,944. CBP officers seized the narcotics and the vehicle and turned the woman over to U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) special agents for further investigation.

 “This is a large load of alleged cocaine. Our CBP officers’ vigilance and hard work has prevented these dangerous narcotics from being introduced into our communities. I applaud our CBP officers on this seizure and arrest of this alleged smuggler,” said Efrain Solis, Port Director, Hidalgo/Pharr/Anzalduas Port of Entry.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Raleigh Realtor Pleads Guilty to Bankruptcy Fraud

NEW BERN—United States Attorney Thomas G. Walker announced that in federal court yesterday GARY KEVIN COATS, pled guilty before United States Magistrate Judge David W. Daniel to bankruptcy fraud, in violation of Title 18, United States Code, Section 157(3).

According to the criminal information filed on December 20, 2011, COATS filed a voluntary petition for a Chapter 7 bankruptcy on February 10, 2009. A Chapter 7 Trustee was appointed and COATS, then a licensed realtor and operator of Featured Properties, LLC, was notified by an Order and Notice to Debtor that all property belonged to the Chapter 7 estate. This property included a Raleigh condominium to which COATS had declared he intended to surrender.

In March, 2009, COATS was contacted by a realtor who represented clients wishing to purchase the condo. In April, 2009, COATS, using the buyers’ assumed name and forged signatures and initials, submitted an offer to the Trustee to purchase the condo. Over the next couple of weeks, COATS, using the assumed name, through e-mails, encouraged the Trustee to take the buyers’ offer. In May, 2009, the Trustee filed a motion to approve the private sale with the United States Bankruptcy Court. Unbeknownst to the Trustee, the buyers’ realtor and COATS had negotiated a side agreement that the buyers would pay additional funds to COATS outside of closing that would not go to the Trustee. On June 5, 2009, the Trustee contacted the closing attorney and learned of the side agreement. On June 10, 2009, COATS, posing as an attorney, e-mailed the realtor regarding a cease and desist letter sent to COATS under his assumed name concerning the side agreement. Later that month, the attorney whose name had been used by COATS, contacted the Trustee notifying the Trustee that he did not e-mail the realtor nor did he know COATS.

COATS will be sentenced in 90 days.

Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette is prosecuting the case.

Pennsylvania Dairy Farmer Operator Found in Violation of Food, Drug and Cosmetic Act

The U.S. District Court for the Eastern District of Pennsylvania awarded summary judgment to the government on a finding that Daniel Allgyer, dba Rainbow Acres Farm and Rainbow Valley Farms, violated the Food, Drug and Cosmetic Act and the Public Health Services Act, the Justice Department announced today.   The court made the ruling on Feb. 3, 2012.   

Allgyer is the owner and operator of a dairy farm located in Kinzers, Pa.   An investigation conducted by the Food and Drug Administration (FDA) showed that Allgyer was packaging unpasteurized milk (also known as “raw milk”) in unlabeled containers, and was then distributing the milk for human consumption in interstate commerce.    

The FDA warned Mr. Allgyer that his conduct violated federal law.   Instead of ceasing his illegal operations, Mr. Allgyer attempted to evade federal regulations that prohibit the interstate sale of raw milk by creating a private membership organization that he used to enter into cow-sharing agreements with his customers.   In the order granting summary judgment in the government’s favor, the court found that the cow-sharing agreements were “merely a subterfuge” and issued an order enjoining Mr. Allgyer and his associates from distributing unlabeled or unpasteurized milk for human consumption in interstate commerce.    

While some states, including Pennsylvania, permit the sale of unpasteurized milk, it is illegal to transport unpasteurized milk across state lines.   Unpasteurized milk can contain a wide variety of harmful bacteria, including Listeria, E.coli, Salmonella, Campylobacter, Yersinia and Brucella.  

 “The FDA has determined that drinking raw milk can cause significant harm,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division.   “Working with our federal partners, we will bring enforcement actions like this one to ensure that the American food supply is safe and consumers are not exposed to such risks.   We are pleased that the court has ordered Mr. Allgyer to stop distributing unpasteurized milk across state lines.”  

This matter was handled by Department of Justice Trial Attorney Jessica R. Gunder of the Civil Division’s Consumer Protection Branch and Associate Chief Counsel Karen C. Corallo of the FDA’s Office of the General Counsel.

Tullahoma Resident Denver C. Cole Pleads Guilty to Receipt of Child Pornography

CHATTANOOGA, TN—Denver C. Cole, 40, of Tullahoma, Tennessee, pleaded guilty today in U.S. District Court for the Eastern District of Tennessee at Chattanooga, to receipt of child pornography in interstate commerce by means of a computer. Sentencing was set for 9:00 a.m., May 21, 2012, in U.S. District Court in Chattanooga.

Denver Cole faces a minimum term of five years and up to 20 years in prison, a fine of up to $250,000 and supervised release of at least five years and up to life.

As set out in the plea agreement, in August 2010, an undercover online investigation by the Winchester Police Department discovered that a computer traced to Cole was using file-sharing software to make child pornography available on the Internet. Identified child pornography images were in Cole’s shared folders. All of the child pornographic images were of real children. Two videos containing child pornography were downloaded by investigators, and a search warrant was obtained for the Cole’s residence as a result. The search warrant was executed and Cole’s computers and associated digital media were seized and subjected to forensic analysis by the Tennessee Bureau of Investigation (TBI). Numerous videos and images downloaded from the Internet and containing child pornography, including known victims, were found on Cole’s computers and digital media.

On July 26, 2011 a 24-count indictment was returned against Cole by a federal grand jury in Chattanooga. This indictment was the result of an ongoing investigation by the Winchester Police Department, Tullahoma Police Department, TBI, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Terra Bay and Ann-Marie Svolto represented 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 Projectsafechildhood.gov.

Record $4.1 Billion Recovered Through Health Care Fraud Prevention and Enforcement

Today, Attorney General Eric Holder and Department of Health and Human Services Secretary Kathleen Sebelius, along with several other government officials—including FBI Assistant Director Kevin Perkins—released a new report showing the government’s health care fraud prevention and enforcement efforts recovered a record-breaking nearly $4.1 billion in taxpayer dollars from individual and companies during fiscal year (FY) 2011.

According to this latest Health Care Fraud and Abuse Control Program annual report, the Department of Justice convicted 743 defendants for health care fraud-related crimes during FY 2011, the highest number of health care fraud defendants charged in a single year. FBI-led investigations were responsible for 736 convictions. Our investigations also resulted in the operational disruption of 238 criminal fraud organizations and the dismantlement of the criminal hierarchy of more than 67 health care fraud criminal enterprises.

The report also contains information on the success of the joint DOJ-HHS Health Care Fraud Prevention and Enforcement Action Team, examples of civil and criminal health care fraud cases, and government outreach activities to help deter health care fraud.

CBP Officers Seize More Than $258k In Meth

Nogales, AZ. — U.S. Customs and Border Protection (CBP) officers assigned to the Tucson Field Office seized nearly 17 pounds of methamphetamines Saturday valued at more than $258,000.

Officers working at the Mariposa Port referred a 22-year-old Nogales resident for a secondary inspection of his Toyota sedan when he attempted to enter the United States. After a CBP narcotics detection canine alerted to the presence of drugs, officers located 15 packages of methamphetamines inside the vehicle’s engine compartment. The drugs and vehicle were processed for seizure. The subject was arrested and turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.

Individuals arrested are charged with a criminal complaint, which raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

CBP's Office of Field Operations is the primary organization within Homeland Security tasked with an anti-terrorism mission at our nation’s ports. CBP officers screen all people, vehicles and goods entering the United States while facilitating the flow of legitimate trade and travel. Their mission also includes carrying out border-related duties, including narcotics interdiction, enforcing immigration and trade laws, and protecting the nation's food supply and agriculture industry from pests and diseases.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Madison Couple Indicted on Federal Wire Fraud and Money Laundering Charges

JACKSON, MS—Demetrius Mathis, 49, and Jacqueline Mathis, 45, husband and wife from Madison, Mississippi, have been arraigned on a federal indictment charging Demetrius Mathis with two counts of federal wire fraud, and charging both Demetrius and Jacqueline Mathis with one count of money laundering, U.S. Attorney John Dowdy and FBI Special Agent in Charge Daniel McMullen announced.

The indictment alleges that, from May 2009 through August 2009, Demetrius Mathis carried out a scheme to defraud two individuals from Norway relating to a real estate investment purchase from a company owned and operated by Demetrius and Jacqueline Mathis named Cash Flow Investments Services, LLC. The Norwegians wired Demetrius Mathis approximately $25,000.00 based upon Mathis’ representation that this money would be applied toward the purchase of an apartment complex in Arkansas. However, according to the indictment, Demetrius and Jacqueline Mathis instead spent the money for their own use to the detriment of the Norwegian real estate investors, while offering false assurances to the investors about the status of their investment.

The case has been set for trial on April 2, 2012 before U.S. District Judge Henry T. Wingate. If convicted on all counts of the indictment, Demetrius Mathis faces a maximum penalty of 70 years in federal prison. If convicted on count three of the indictment, Jacqueline Mathis faces a maximum penalty of 10 years in federal prison.

The Federal Bureau of Investigation conducted the criminal investigation and the prosecution is being handled by Assistant United States Attorney Carla J. Clark.

The public is reminded that, as in any criminal case, a person is presumed innocent until and unless proven guilty. The charges filed merely contain allegations of criminal conduct.

San Fernando Valley Man Sentenced to 18 Months in Prison for His Role in Investment Scheme

LOS ANGELES—A man who participated in an investment scheme and then became a fugitive for several years was sentenced to 18 months in federal prison, announced United States Attorney in Los Angeles, André Birotte Jr., FBI Assistant Director in Charge, Steven Martinez and Inspector in Charge, B. Bernard Ferguson, for the United States Postal Inspection Service in Los Angeles.

United States District Court Judge George Wu sentenced Jason Corry, 38, of the San Fernando Valley, to the 18 month sentence and six months home detention during today’s sentencing hearing. Wu also ordered Corry to pay $4.8 million restitution to his victims.

According to information filed in U.S. District Court in Los Angeles in October 2011, Corry and others solicited investments from hundreds of victims in excess of $3 million during 1997 and 1998. Corry and a co-defendant were originally charged in a criminal complaint in U.S. District Court in Los Angeles in 1999; however Corry became a fugitive for several years.

According to the information, Corry was the nominal president of a company known as United States Telegraph and Telephone (UST&T), which Corry and others purported was involved in the telecommunications and utilities industries. UST&T had a mailing address in Calabasas, California, according to the information. Corry and others solicited victims to invest in UST&T and that large profits were predicted since the company was planning on merging with an energy and telecommunications company. Victims were told that UST&T had been planning on an initial public offering within a few months and gained victims’ trust by telling investors that UST&T employees’ own relatives had invested in the stock. Victims were also told that a minimum investment of between approximately $10,000 and $20,000 would be required to invest and that there was a limited amount of time in which investors could take advantage of the offer.

Victims were told they would receive a dividend of approximately 9 percent and would receive anywhere between four to 25 times their investment during the first year the company went public.

Investigators determined that the representations made to victims were false and that investor money was used to pay the commissions of telemarketers at UST&T, including Corry’s.

After Corry was charged in connection with the investment scheme, he assumed a false identity and became a fugitive for several years. He was arrested by the United States Marshals Service in June of 2011 in the San Fernando Valley to face prosecution for the 1999 case. Corry pleaded to guilty to mail fraud in 2011.

This investigation was conducted by the Federal Bureau of Investigation and the United States Postal Inspection Service. Corry was prosecuted by the United States Attorney’s Office in Los Angeles.

Limas Corruption Case Lands Another in Prison

BROWNSVILLE, TX—Francisco “Pancho” Cisneros, a local bail bondsman charged for his role in former State District Judge Abel Limas’ scheme to solicit and accept bribes in exchange for official action, has been sentenced to federal prison, United States Attorney Kenneth Magidson announced today.

Cisneros, 47, of Brownsville, Texas, entered a guilty plea in August 2011 to aiding and abetting extortion. Today, U.S. District Judge Andrew Hanen sentenced him to 16 months in federal prison.

The charge against Cisneros arose from investigation by the FBI, Drug Enforcement Administration and the Brownsville Police Department into former Judge Abel Limas’ use of his position as the judge of that court to solicit and accept money from persons with cases pending in his court for favorable rulings or orders. Cisneros was charged by an indictment returned on June 21, 2011, with aiding and abetting Limas’ extortion by paying a bribe to Limas in exchange for official action pursuant to the Hobbs Act.

At the time of his plea, Cisneros admitted paying $2,000 to Jose Manuel “Meme” Longoria to bribe Limas in exchange for an order changing the terms of a previously set $25,000 cash/surety bond to a “personal recognizance bond” for Rodolfo Gracia, a defendant in a criminal drug case pending in Limas’ court. Cisneros aided and abetted in the violation by agreeing with Longoria to have the money paid to Limas. After receiving the money from Gracia’s family members on Jan. 31, 2008, Cisneros paid the money to Longoria at the parking lot of a day-care center owned by Limas. FBI agents observed as Limas arrived within minutes to then meet with Longoria in the parking lot. While agents watched, Limas placed a call to his court and ordered the cash/surety bond be changed to “personal recognizance.” Setting such a bond would then have allowed the release of Gracia. Longoria later admitted to FBI agents he handed the money over to Limas for that judicial order and Limas admitted to receiving at least $700 from Longoria to issue the order for a personal recognizance bond for Gracia.

Limas and Longoria have each entered guilty pleas to related violations as a result of the FBI’s investigation into public corruption. Limas and Longoria are scheduled for sentencing on March 13, 2012. To date, a total of eight defendants have entered guilty pleas in the FBI’s four-year public corruption investigation. Included in those are Jose Santiago “Jim” Solis, a former state representative and local attorney; Jose “Joe” Valle, a local attorney; Jaime Munivez, former District Attorney’s Office investigator; along with Armando Pena and his wife, Karina.

In addition to the federal sentence, Judge Hanen further ordered Cisneros to pay a $2,500 fine and serve a three-year-term of supervised release upon completing his prison term. Cisneros, who had been released on bond, was ordered into federal custody and will remain in custody to serve his sentence.

Assistant United States Attorneys Michael Wynne and Oscar Ponce prosecuted this case.

Looking for Love? Beware of Online Dating Scams

Millions of Americans visit online dating websites every year, hoping to find a companion or even a soul mate.

But this Valentine’s Day, we want to warn you that criminals use these sites, too, looking to turn the lonely and vulnerable into fast money through a variety of scams.

These criminals—who also troll social media sites and chat rooms in search of romantic victims—usually claim to be Americans traveling or working abroad. In reality, they often live overseas. Their most common targets are women over 40 who are divorced, widowed, and/or disabled, but every age group and demographic is at risk.

Here’s how the scam usually works. You’re contacted online by someone who appears interested in you. He or she may have a profile you can read or a picture that is e-mailed to you. For weeks, even months, you may chat back and forth with one another, forming a connection. You may even be sent flowers or other gifts. But ultimately, it’s going to happen—your new-found “friend” is going to ask you for money.

So you send money…but rest assured the requests won’t stop there. There will be more hardships that only you can help alleviate with your financial gifts. He may also send you checks to cash since he’s out of the country and can’t cash them himself, or he may ask you to forward him a package.

So what really happened? You were targeted by criminals, probably based on personal information you uploaded on dating or social media sites. The pictures you were sent were most likely phony, lifted from other websites. The profiles were fake as well, carefully crafted to match your interests.

In addition to losing your money to someone who had no intention of ever visiting you, you may also have unknowingly taken part in a money laundering scheme by cashing phony checks and sending the money overseas and by shipping stolen merchandise (the forwarded package).

While the FBI and other federal partners work some of these cases—in particular those with a large number of victims or large dollar losses and/or those involving organized criminal groups—many are investigated by local and state authorities.

We strongly recommend, however, that if you think you’ve been victimized by a dating scam or any other online scam, file a complaint with our Internet Crime Complaint Center. Before forwarding the complaints to the appropriate agencies, IC3 collates and analyzes the data—looking for common threads that could link complaints together and help identify the culprits. Which helps keep everyone safer on the Internet.

For specific tips on how to keep from being lured into an online dating scam, see the sidebar above. Awareness is the best tool for preventing crime…and in this case, even from preventing a broken heart.

Recognizing an Online Dating Scam Artist

Your online “date” may only be interested in your money if he or she:

- Presses you to leave the dating website you met through and to communicate using personal e-mail or instant messaging;

- Professes instant feelings of love;
- Sends you a photograph of himself or herself that looks like something from a glamour magazine;
- Claims to be from the U.S. and is traveling or working overseas;
- Makes plans to visit you but is then unable to do so because of a tragic event; or
- Asks for money for a variety of reasons (travel, medical emergencies, hotel bills, hospitals bills for child or other relative, visas or other official documents, losses from a financial setback or crime victimization).

One way to steer clear of these criminals all together is to stick to online dating websites with nationally known reputations.

Love is Respect: February is Teen Dating Violence Awareness and Prevention Month

The following post appears courtesy of Susan B. Carbon, Director of the Office on Violence Against Women (OVW)

Regardless of the day or month, many teens – including college students – often find themselves in unhealthy, sometimes abusive relationships that affect their quality of life, cause pain and concern among their families and friends, and interfere with school and community activities.  Now is the time to learn about ways to recognize and prevent this violence.

During February, designated as Teen Dating Violence Awareness and Prevention Month, we join President Obama to call for a focused effort to break the cycle of violence by providing support and services to the victims, their families and their communities. As President Obama stated:

“The consequences of dating violence — spanning impaired development to physical harm — pose a threat to the health and well-being of teens across our Nation, and it is essential we come together to break the cycle of violence that burdens too many of our sons and daughters.  This month, we recommit to providing critical support and services for victims of dating violence and empowering teens with the tools to cultivate healthy, respectful relationships.”

Research indicates that teens and young women are especially vulnerable to experiencing violence in their relationships.   In one year, nearly one in ten high school students has been hit, slapped or physically hurt on purpose by a boyfriend or girlfriend.   And young people ages 18 and 19 experience the highest rates of stalking, which most often is committed by a current or former intimate partner for both male and female victims.  The prevalence of violence in the dating relationships of teens is simply unacceptable.

We know that to reach young people, we need to speak their language.  With that idea in mind, OVW is supporting outreach and education efforts by educators, advocates, and non-profits, including the That’s Not Cool.com, a national public education campaign that uses digital examples of controlling, pressuring, and threatening behavior to raise awareness about and prevent teen dating abuse.  OVW also funds the National Dating Abuse Helpline at 1-866-331-9474.  Teens can also text “loveis” to 77054 to reach an advocate or chat on line by clicking on the icon found on loveisrespect.org.

We must continue to advocate for the young people in our lives by providing safe spaces to have conversations about dating abuse and provide examples of healthy, violence-free relationships that include support, love and respect.  Only by continuing to engage in discussions on these challenging and difficult issues can we call attention to teen dating violence.  This is the first step towards preventing and ending the cycle of abuse. The resources listed in the President’s proclamation and in this blog are important resources that should be used, shared and discussed during February and throughout the year.  

For more information about the Office on Violence Against Women, visit www.ovw.usdoj.gov. We remind all those in need of assistance, or other concerned friends and individuals, to call the National Domestic Violence Hotline at 1-800-799-SAFE or the National Sexual Assault Hotline at 1-800-656-HOPE.

Shiprock Man Arraigned on Child Sex Abuse Charge

ALBUQUERQUE—On February 13, 2012, in federal court in Albuquerque, Samuel Jackson, 55, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was arraigned on an indictment charging him with aggravated sexual abuse of a minor under 16 years of age. If convicted of this offense, Jackson faces a maximum penalty of not less than 30 years and up to life imprisonment.

Jackson entered a not guilty plea during the proceedings. Jackson has been in federal custody since his arrest on January 24, 2012, and remains detained pending trial.

U.S. Attorney Kenneth J. Gonzales said that Jackson is charged with sexually assaulting a 14-year-old Navajo girl in a residence in Shiprock on August 5, 2011. At the time of the offense alleged in the indictment and until his arrest in January 2012, Jackson was employed as a back-up bus driver at Shiprock division of the Central Consolidated School District No. 22.

The case was investigated by the FBI and the Navajo Nation Department of Public Safety, Shiprock Division, and is being prosecuted by Assistant U.S. Attorney Presliano Torrez.

Liberty County Man Indicted for Beaumont Bank Robbery

BEAUMONT, TX—A 46-year-old Daisetta, Texas man has been indicted by a federal grand jury for robbing a bank in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

John Steven Stark was arrested on Feb. 8, 2012 in Beaumont and charged with bank robbery today.

According to prosecutors, on Jan. 30, 2012, a man entered the Bank of America at 2625 Calder in Beaumont and handed a teller a note stating, “This is a bank robbery.” The teller complied with the demands of the note and provided the man with the cash from her teller drawer totaling $3,338.00. Surveillance video captured several images of the man during the robbery and then circulated by broadcast news. The man was identified as Stark.

If convicted, Stark faces up to 20 years in federal prison.

This case is being investigated by the FBI, the Beaumont Police Department and the Daisetta Police Department and prosecuted by Assistant U.S. Attorney John Craft.

A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.