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.

Two Area Contractors Charged with Fraud Involving Minority and Women Set-Asides for Government Construction Contracts

CHICAGO—Two owners of area construction businesses are facing federal charges for allegedly using companies they controlled to fraudulently obtain government contracts set aside for owners of minority, women, and disadvantaged business enterprises (M/W/DBEs). The charges in two separate cases made public today stem from an ongoing public corruption investigation by federal, state, and local authorities of alleged fraud by businesses falsely purporting to be minority- or women-owned, or by legitimate non-majority businesses being used as sham pass-through sub-contractors on public works projects.

In one case, the owner of two Lockport construction companies certified as woman-owned and/or disadvantaged businesses was charged with fraudulently using her companies as sham pass-through sub-contractors as part of a scheme to help prime contractors meet the City of Chicago and other local governments’ set-aside requirements for construction contracts. The defendant, Elizabeth Perino, owner of Perdel Contracting Company and Accurate Steel Installers, Inc., allegedly acted as a sham pass-through on contracts with Prime Contractor A, a construction firm with billions of dollars worth of government and private contracts, as well as with the owner of Prime Contractor B, who was cooperating with law enforcement.

As far back as 2006, Perdel Contracting, which specializes in concrete and carpentry, and Accurate Steel (ASI) allegedly acted as sham WBE sub-contractors for Prime Contractor A on Chicago’s North Avenue bridge reconstruction project. In addition, Perino’s companies allegedly acted as fraudulent pass-through WBE sub-contractors for Prime Contractor A on the Red Line and Brown Line projects for the Chicago Transit Authority, and Perdel Contracting is a DBE sub-contractor on Prime Contractor A’s Wacker Drive reconstruction project.

Perino, 57, of Willowbrook, was charged with mail fraud in a criminal complaint that was unsealed today. She was released on her own recognizance after appearing this morning before U.S. Magistrate Judge Maria Valdez in U.S. District Court. Both of her companies have been certified as a WBE and a DBE by government entities, including the City of Chicago and the Illinois Department of Transportation. Perino has served on IDOT’s Task Force for DBE Regulations.

In the second case, Anthony Cappello, 48, of Homer Glen, the owner of Diamond Coring, Inc., a Chicago concrete sawing and drilling company, was charged with one count of mail fraud in a criminal information filed today in Federal Court. Cappello allegedly obtained contracts worth more than $2.3 million by operating the Stealth Group, Inc., also known as SGI, as a fraudulently certified WBE and DBE. He will be arraigned at a later date in U.S. District Court. Cappello allegedly sought millions of dollars of sub-contracts, and fraudulently obtained more than $2.3 million, from the City of Chicago, Cook County, and the State of Illinois between 1999 and 2006.

“Illegally using companies to obtain work set aside for businesses owned by women or minorities cheats not only the governments that provide opportunities to bid on public contracts, but it also prevents legitimate minority- and women-owned businesses from competing to obtain work on such projects,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.

Mr. Fitzgerald announced the charges with Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; Michelle McVicker, Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General in Chicago; James Vanderberg, Special Agent in Charge of the U.S. Department of Labor Office of Inspector General in Chicago; Joseph Ferguson, Inspector General for the City of Chicago; and Illinois Attorney General Lisa Madigan. The City of Chicago’s Department of Procurement Services assisted the investigation, which is continuing, the officials said.

United States v. Perino

The complaint alleges various instances in which Perino allegedly falsely represented to government entities that her companies were performing legitimate services on public works projects when, in fact, they were often acting only in a pass-through capacity, enabling prime and sub-contractors to secure large government contracts and avoid requirements intended to benefit women- or minority-owned and disadvantaged business enterprises.

According to the complaint affidavit, Perino acted as a pass-through on contracts with Prime Contractor A by billing for work that her companies did not perform, manage or supervise. In fact, Prime Contractor A negotiated prices with Perdel Contracting and ASI sub-contractors, determined quantity and quality of material, ordered the material, and installed the material. Perino and Prime Contractor A certified to the various government entities that Perino had performed work and Prime Contractor A took credit for pass-through payments made to Perino so that Prime Contractor A could meet its DBE goals.

The complaint charges that Perino engaged in a fraudulent scheme with an individual identified as CW1, who owns a company identified as Prime Contractor B that performs work for the City of Chicago and other government entities. CW1, who was cooperating with law enforcement at the time, had Prime Contractor B bid on a June 2011 city contract that required five percent WBE participation. At the direction of law enforcement, CW1 met with Perino to determine whether Perino would agree to use Perdel Contracting as a pass-through WBE for CW1 and Prime Contractor B’s bid on the June 2011 contract, which was worth $9 million the last time the city awarded a similar contract.

Perino and Individual A, an employee of her companies, allegedly agreed to have Perdel Contracting act as a pass-through WBE by performing street sweeping work normally done by Prime Contractor B by placing Prime Contractor B’s employees on its payroll to do the work; using Prime Contractor B’s equipment to perform the work; entering into a sham contract to “purchase” the street sweeping equipment from Prime Contractor B; titling the equipment in Perdel Contracting’s name; and having a side agreement to give the equipment back to Prime Contractor B for $1 when the contract ended. CW1 told Perino that he listed Perdel Contracting in his bid as $225,000 WBE sub-contractor. CW1 later told Perino that CW1 was the only bidder on the city contract.

In a conversation on June 27, 2011, CW1 told Perino that the city was conducting a compliance audit on a previous contract and that CW1 had to provide the city with information about MBE and WBE participation, stating that he had not met his goals. Two days later, CW1 met with Perino and her employee and told them that he needed to make-up approximately $140,000 in past WBE participation on the previous contract, dating back to January 2010. After further discussion, Perino allegedly said that CW1 would have to issue her a purchase order so Perdel Contracting could bill CW1 for past work that Perdel Contracting had never performed on the previous contract. Specifically, the complaint alleges that they agreed that Perdel Contracting would bill CW1 for work renting equipment to Prime Contractor B, which had never happened. After Prime Contractor B paid the false bill, Perino would return some of that money, creating a paper trail that would falsely show that the returned money was for the purchase of two of CW1’s street sweepers, thereby setting up the sham purchase contract that was part of the agreement to use Perdel Contracting as a pass-through WBE for Prime Contractor B’s bid on the June 2011 contract. The mail fraud charge alleges that on July 6 Perino sent CW1 false documents including a backdated estimate, a backdated letter of intent, a false invoice for $95,648, and a false certification of work so that Prime Contractor B could use the documents to falsely inform Chicago authorities that Perdel Contracting had provided $95,648 in equipment rentals to Prime Contractor B as of June 30, 2011, even though Perdel Contracting had not provided any such equipment.

United States v. Cappello

According to the charges, Cappello obtained certification for SGI as a WBE by falsely representing that Individual A controlled and owned SGI when she allegedly devoted only a minimal amount of time to SGI. In reality, the information alleges, the company was operated by Cappello and another individual. By fraudulently obtaining the certification and holding SGI out as a legitimate WBE, Cappello allegedly obtained business required by law to be set-aside for WBE businesses. Among the contracts that Cappello and SGI allegedly fraudulently obtained was a $1.1 million prime contract with the City of Chicago.

The charges allege that individuals on SGI’s payroll actually reported to Cappello and Diamond Coring. In addition, Diamond Coring employees were dispatched to perform work in Diamond Coring trucks bearing SGI logos to conceal the fact that SGI was not a legitimate WBE or DBE. As part of the scheme, Cappello allegedly caused SGI to represent that it had a business address at a location from which it never operated in order to conceal the fact that it was using Diamond Coring’s office space.

In both cases, the government is represented by Assistant U.S. Attorneys Brandon D. Fox and Margaret J. Schneider.

The mail fraud count in each case carries a maximum penalty of 20 years in prison and a $250,000 fine. As an alternative, the court may impose a maximum fine equal to twice the loss to any victim or twice the gain to any defendant, whichever is greater and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The public is reminded that charging documents are not evidence of guilt. The defendants are presumed innocent and are entitled to fair trials at which the government has the burden of proving guilt beyond a reasonable doubt.

Former Public School Teacher Sentenced to More Than 19 Years in Prison for Collecting Child Pornography

ERIE, PA—A former teacher, coach, and referee has been sentenced in federal court to 235 months in prison and 30 years’ supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, U.S. Attorney David J. Hickton announced today.

U.S. District Judge Sean J. McLaughlin imposed the sentence on David A. Rinke II, 40, of Erie.

According to information presented to the court, over the last 15 years Rinke amassed a collection of more than 50,000 images and movies depicting the sexual assault and rape of children, some as young as infants. Rinke, a former chemistry teacher at Collegiate Academy in Erie, also possessed on his computer groin shots of youths at what appeared to be high school sporting events. Rinke was caught when he distributed child pornography to an undercover FBI agent in Phoenix.

Prior to imposing sentence, Judge McLaughlin stated that Rinke was a predatory pedophile who represented a clear and present danger to the community.

Assistant U.S. Attorney Christian A. Trabold prosecuted this case on behalf of the government.

The FBI and the Pennsylvania State Police conducted the investigation leading to the successful prosecution of Rinke.

Stamford Mason Sentenced to Federal Prison for Structuring Cash Transactions to Evade Paying Taxes

David B. Fein, United States Attorney for the District of Connecticut, today announced that JOSEPH ROMANELLO, 46, of Stamford, was sentenced on Friday, February 10, by Chief United States District Judge Alvin W. Thompson in Hartford to 18 months of imprisonment, followed by three years of supervised release, for illegally structuring cash withdrawals to evade reporting income on his federal tax returns for the years 2003 and 2004. ROMANELLO pleaded guilty to offense on February 10, 2011.

Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.

According to court documents and statements made in court, ROMANELLO earned income by providing masonry and landscaping services to Connecticut residents. Between approximately January 2003 and March 2005, ROMANELLO structured cash transactions of approximately $2 million by routinely withdrawing cash from various bank accounts he maintained in amounts at or slightly below $10,000 to prevent the financial institutions from filing CTRs. For the years 2003 and 2004, ROMANELLO did not file any federal income tax returns, and he failed to pay a total of more than $1 million in income taxes during those two years.

Today, Judge Thompson ordered ROMANELLO to file tax returns for the years 2003 and 2004, and to pay back taxes, penalties and interest in the amount of $2,736,885.69.

This matter was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Senior Litigation Counsel Richard J. Schechter.

New Haven Man Sentenced to More Than Three Years in Federal Prison for Distributing Cocaine

David B. Fein, United States Attorney for the District of Connecticut, announced that VIRGIL JEFFERIES, 22, also known as “Mook” and “Murder Mook,” of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 41 months of imprisonment, followed by one year of supervised release, for distributing cocaine.

This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area.

According to court documents and statements made in court, from June 2010 through October 2010, JEFFERIES was intercepted several times over a wiretap ordering distribution quantities of cocaine and crack cocaine from other members of the drug trafficking organization, which he then sold to his own customer base for profit.

On November 4, 2011, JEFFERIES pleaded guilty to one count of using a telephone to facilitate a narcotics trafficking felony.

Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation.

U.S. Attorney Fein noted that federal prisoners are required to serve at least 85 percent of their sentenced term of imprisonment and are not eligible for parole.

This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, Hamden and East Haven Police Departments, the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.

The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.

This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.