February 23, 2010 - Jeffrey H. Sloman, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (“FBI”), Miami Field Office, announced the filing of an Information against defendant Lewis B. Freeman, 61, of Miami, charging him with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349. Defendant Freeman is scheduled to make his initial appearance in federal court today before U.S. Magistrate Judge Robert Dubé at 1:30 p.m.
For the past 10 years, Freeman has been appointed as a fiduciary in federal and state courts in numerous matters, including receiverships, liquidating trusteeships, and assignments for the benefit of creditors. In all of these matters, Freeman was entrusted with safeguarding and protecting the assets of others he obtained by virtue of his appointment. However, according to the Information, Freeman engaged in a long-term scheme to misappropriate funds from the matters he was appointed to oversee.
U.S. Attorney Jeffrey H. Sloman stated, “Mr. Freeman was a respected member of the South Florida business and legal community for decades. It is a sad day when one who held our trust for so many years is shown to have engaged in rampant fraud and betrayed the trust of so many. Although our trust in individuals may be shaken, our commitment to investigating and prosecuting financial fraud is resolute.”
“At the heart of these charges is the egregious breach of fiduciary responsibility by Lewis Freeman. The courts routinely relied on him as an expert to assist in liquidating assets of companies,” said John V. Gillies, FBI Special Agent in Charge. “Instead, he was motivated by greed and stole from the assets he was responsible for protecting. It doesn’t matter whether a person is a con artist from the beginning or becomes one over time, the FBI remains committed to routing out fraud.”
According to the Information, after receiving these fiduciary appointments, Freeman would establish bank accounts into which he would deposit the funds belonging to the related entity. In handling these fiduciary matters, Freeman retained his forensic accounting firm, Lewis B. Freeman and Partners, Inc. (“LBFP”), with offices in Miami and Plantation, to assist him in performing his duties. Freeman was president and sole shareholder of LBFP, and was the only person with an ownership interest in the company. According to the Information, from at least June 2000 through August 2009, Freeman misappropriated funds from fiduciary accounts by writing unauthorized checks to himself or to his company, LBFP. The unauthorized checks were deposited into LBFP’S operating account, and the funds were subsequently withdrawn by Freeman and used to support a lavish lifestyle.
The Information also alleges that Freeman used some of the money from unrelated fiduciary accounts under his control to repay shortfalls in the depleted fiduciary accounts by moving funds, in a Ponzi-like fashion, into the depleted accounts. Freeman also instructed other employees at LBFP to falsify financial reports by omitting the unauthorized checks that were issued, thus falsely inflating account balances for the respective fiduciary accounts. Many of these false financial reports were mailed as part of official reports that were submitted by Freeman to the courts overseeing Freeman’s fiduciary appointments.
In this manner, Freeman issued approximately 162 unauthorized checks, misappropriating at least $6 million from numerous matters to which he had been appointed fiduciary, resulting in at least $2.6 million in losses to affected fiduciary matters.
An Information is only an accusation and a defendant is presumed innocent until and unless proven guilty.
Mr. Sloman commended the investigative efforts of the FBI. The matter is being handled by Assistant U.S. Attorney Andrew K. Levi.
Tuesday, February 23, 2010
Officers Down - Oakland
On March 25, 2010, Conversations with American Heroes at the Watering Hole will feature a conversation between Assistant Chief Howard Jordan, Oakland Police Department and Detective Jamie Duigan, Chicago Police Department, about the murder of four Oakland Police Officers on March 21, 2009.
Program Date: March 25, 2009
Program Time: 1700 Hours Pacific
Topic: Officers Down - Oakland
Listen Live: www.americanheroesradio.com/officers_down_oakland.html
About the Murders
On Saturday, March 21, 2009, the suspect, who was recently released from prison, murdered four Oakland Police Department (OPD) veteran personnel. This was the deadliest occurrence in the history of OPD and one of the most significant law enforcement losses in the State of California and the nation. Acting Chief of Police Howard Jordan ordered that an independent review be conducted to understand how this happened and what can be done to prevent a future recurrence.
About Assistant Chief Howard A Jordan
Assistant Chief Howard A. Jordan is a veteran of the Oakland Police Department, having served for more than 20 years in a range of assignments including patrol, investigations, internal affairs and administration.
Managing a staff of more than 800 police officers and 370 non-sworn personnel, Chief Jordan is a consensus builder who motivates others towards better performance. He considers all possible solutions while making decisions and stays calm in crisis. Chief Jordan saw the Department through the difficult hours of March 21, 2009, when four officers were gunned down in less than 3 hours. His goal is to forge a stronger Department and healthier community under his watch.
In 2007, Chief Jordan was promoted to the newly created position of Assistant Chief, managing daily operations under then-Chief Wayne Tucker. When Chief Tucker resigned in February 2009, Chief Jordan stepped in to lead the Department as Acting Chief. He continues the crime reduction policies put in place by Chief Tucker, including geographic and community policing, and supports the changes prescribed by the NSA. In October 2009, the Mayor hired Chief Anthony Batts to replace Chief Tucker. Assistant Chief Jordan remained on as the Assistant Chief and is currently in-charge of the day to day operations of the department.
Born in the West Indies and raised in Brooklyn, NY, by a single mother with a powerful work ethic, Chief Jordan savors Oakland’s mélange of peoples and cultures, and is proud of the fact that the Oakland Police Department is the most diverse in the Bay Area. Chief Jordan has a Master’s in Public Administration from Cal State Hayward. He is a graduate of the 219th FBI National Academy and the Police Executive Research Forum’s Senior Management Institute in Policing. Chief Jordan serves as the president of the SF Bay Area Chapter of the National Organization of Black Law Enforcement and is a member of the California Police Chiefs Association (which appointed him to the Attorney General’s Task Force to Address Human Trafficking in California) and the Commission on Peace Officer Standards and Training (POST).
Now “an average dad on the sidelines,” Chief Jordan has managed and coached youth soccer and baseball teams in Contra Costa County for many years. He volunteers for community outreach programs with Valley Bible Church in Hercules. Chief Jordan is married and has two daughters.
About the Guest Interviewer
Jamie Duignan is a detective with the Chicago Police Department, and is proud to be approaching her tenth anniversary as a law enforcement officer. Detective Duignan volunteers her time, as a member of the Chicago Police Department’s Peer Support Program, to support and counsel fellow officers in the wake of traumatic incidents. Prior to beginning her career in law enforcement, Jamie was an active civilian in Chicago’s community policing initiative. She holds a Bachelor’s in Sociology from the University of Chicago, and a Master of Science in Communication from Northwestern University. Her current interests are education, leadership, morale, decision-making and supervisory communications within law enforcement. As such, she is currently administering an on-line group, “Law Enforcement Leadership and Morale,” through Linkedin. Detective Duignan is honored to be a guest on the show, along with Chief Howard Jordan and Lieutenant Raymond Foster.
About the Host
Lieutenant Raymond E. Foster was a sworn member of the Los Angeles Police Department for 24 years. He retired in 2003 at the rank of Lieutenant. He holds a bachelor’s from the Union Institute and University in Criminal Justice Management and a Master’s Degree in Public Financial Management from California State University, Fullerton; and, has completed his doctoral course work. Raymond E. Foster has been a part-time lecturer at California State University, Fullerton and Fresno; and is currently a Criminal Justice Department chair, faculty advisor and lecturer with the Union Institute and University. He has experience teaching upper division courses in Law Enforcement, public policy, Public Safety Technology and leadership. Raymond is an experienced author who has published numerous articles in a wide range of venues including magazines such as Government Technology, Mobile Government, Airborne Law Enforcement Magazine, and Police One. He has appeared on the History Channel and radio programs in the United States and Europe as subject matter expert in technological applications in Law Enforcement.
Listen, call, join us at the Watering Hole:
www.americanheroesradio.com/officers_down_oakland.html
Program Contact Information
Lieutenant Raymond E. Foster, LAPD (ret.), MPA
editor@police-writers.com
909.599.7530
Program Date: March 25, 2009
Program Time: 1700 Hours Pacific
Topic: Officers Down - Oakland
Listen Live: www.americanheroesradio.com/officers_down_oakland.html
About the Murders
On Saturday, March 21, 2009, the suspect, who was recently released from prison, murdered four Oakland Police Department (OPD) veteran personnel. This was the deadliest occurrence in the history of OPD and one of the most significant law enforcement losses in the State of California and the nation. Acting Chief of Police Howard Jordan ordered that an independent review be conducted to understand how this happened and what can be done to prevent a future recurrence.
About Assistant Chief Howard A Jordan
Assistant Chief Howard A. Jordan is a veteran of the Oakland Police Department, having served for more than 20 years in a range of assignments including patrol, investigations, internal affairs and administration.
Managing a staff of more than 800 police officers and 370 non-sworn personnel, Chief Jordan is a consensus builder who motivates others towards better performance. He considers all possible solutions while making decisions and stays calm in crisis. Chief Jordan saw the Department through the difficult hours of March 21, 2009, when four officers were gunned down in less than 3 hours. His goal is to forge a stronger Department and healthier community under his watch.
In 2007, Chief Jordan was promoted to the newly created position of Assistant Chief, managing daily operations under then-Chief Wayne Tucker. When Chief Tucker resigned in February 2009, Chief Jordan stepped in to lead the Department as Acting Chief. He continues the crime reduction policies put in place by Chief Tucker, including geographic and community policing, and supports the changes prescribed by the NSA. In October 2009, the Mayor hired Chief Anthony Batts to replace Chief Tucker. Assistant Chief Jordan remained on as the Assistant Chief and is currently in-charge of the day to day operations of the department.
Born in the West Indies and raised in Brooklyn, NY, by a single mother with a powerful work ethic, Chief Jordan savors Oakland’s mélange of peoples and cultures, and is proud of the fact that the Oakland Police Department is the most diverse in the Bay Area. Chief Jordan has a Master’s in Public Administration from Cal State Hayward. He is a graduate of the 219th FBI National Academy and the Police Executive Research Forum’s Senior Management Institute in Policing. Chief Jordan serves as the president of the SF Bay Area Chapter of the National Organization of Black Law Enforcement and is a member of the California Police Chiefs Association (which appointed him to the Attorney General’s Task Force to Address Human Trafficking in California) and the Commission on Peace Officer Standards and Training (POST).
Now “an average dad on the sidelines,” Chief Jordan has managed and coached youth soccer and baseball teams in Contra Costa County for many years. He volunteers for community outreach programs with Valley Bible Church in Hercules. Chief Jordan is married and has two daughters.
About the Guest Interviewer
Jamie Duignan is a detective with the Chicago Police Department, and is proud to be approaching her tenth anniversary as a law enforcement officer. Detective Duignan volunteers her time, as a member of the Chicago Police Department’s Peer Support Program, to support and counsel fellow officers in the wake of traumatic incidents. Prior to beginning her career in law enforcement, Jamie was an active civilian in Chicago’s community policing initiative. She holds a Bachelor’s in Sociology from the University of Chicago, and a Master of Science in Communication from Northwestern University. Her current interests are education, leadership, morale, decision-making and supervisory communications within law enforcement. As such, she is currently administering an on-line group, “Law Enforcement Leadership and Morale,” through Linkedin. Detective Duignan is honored to be a guest on the show, along with Chief Howard Jordan and Lieutenant Raymond Foster.
About the Host
Lieutenant Raymond E. Foster was a sworn member of the Los Angeles Police Department for 24 years. He retired in 2003 at the rank of Lieutenant. He holds a bachelor’s from the Union Institute and University in Criminal Justice Management and a Master’s Degree in Public Financial Management from California State University, Fullerton; and, has completed his doctoral course work. Raymond E. Foster has been a part-time lecturer at California State University, Fullerton and Fresno; and is currently a Criminal Justice Department chair, faculty advisor and lecturer with the Union Institute and University. He has experience teaching upper division courses in Law Enforcement, public policy, Public Safety Technology and leadership. Raymond is an experienced author who has published numerous articles in a wide range of venues including magazines such as Government Technology, Mobile Government, Airborne Law Enforcement Magazine, and Police One. He has appeared on the History Channel and radio programs in the United States and Europe as subject matter expert in technological applications in Law Enforcement.
Listen, call, join us at the Watering Hole:
www.americanheroesradio.com/officers_down_oakland.html
Program Contact Information
Lieutenant Raymond E. Foster, LAPD (ret.), MPA
editor@police-writers.com
909.599.7530
Hubbard Man Charged with Making a False Statement in Connection with Congressional Campaign
February 23, 2010 - William J. Edwards, First Assistant United States Attorney for the Northern District of Ohio, and C. Frank Figliuzzi, Special Agent in Charge of the Cleveland Division of the FBI, announced today that an Information has been filed charging John J. Cafaro, age 58, of Hubbard, Ohio, with one count of Making a Materially False Statement in a Matter within the Jurisdiction of the Government.
According to the Information, John J. Cafaro was subject to the campaign contribution limits in the Federal Election Campaign Act (FECA). The Information alleges that John J. Cafaro caused a false report to be submitted to the Federal Election Commission (FEC) in connection with the Capri Cafaro for Congress Committee in 2004. Specifically, the Information alleges that between May 5, 2004, and July 15, 2004, John J. Cafaro caused the responsible official of the Capri Cafaro for Congress Committee to file with the FEC a quarterly report that falsely stated that he had contributed only $2,000 to the general election campaign, when in fact, as Cafaro then well knew, he actually contributed an additional $10,000 in the form of a loan to a campaign staffer for the benefit of the general election campaign.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts, following an investigation by the Youngstown office of the Federal Bureau of Investigation.
An Information is only a charge and is not evidence of guilt.
According to the Information, John J. Cafaro was subject to the campaign contribution limits in the Federal Election Campaign Act (FECA). The Information alleges that John J. Cafaro caused a false report to be submitted to the Federal Election Commission (FEC) in connection with the Capri Cafaro for Congress Committee in 2004. Specifically, the Information alleges that between May 5, 2004, and July 15, 2004, John J. Cafaro caused the responsible official of the Capri Cafaro for Congress Committee to file with the FEC a quarterly report that falsely stated that he had contributed only $2,000 to the general election campaign, when in fact, as Cafaro then well knew, he actually contributed an additional $10,000 in the form of a loan to a campaign staffer for the benefit of the general election campaign.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Justin J. Roberts, following an investigation by the Youngstown office of the Federal Bureau of Investigation.
An Information is only a charge and is not evidence of guilt.
Former Representative of Backfill Subcontractor Sentenced to 33 Months in Jail for Kickback and Fraud Scheme
February 23, 2010 - WASHINGTON — A former subcontractor representative was sentenced today to serve 33 months in jail and to pay a $30,000 criminal fine for his role in a kickback and fraud conspiracy at a U.S. Environmental Protection Agency (EPA) Superfund site in New Jersey, the Department of Justice announced.
James E. Haas Jr., a former representative of a New Jersey subcontractor that provides common backfill, a type of soil material used to refill an excavation, was also ordered to pay $53,049 in restitution to the EPA. Haas pleaded guilty on Oct. 28, 2009, in the U.S. District Court of New Jersey, to an indictment filed on Aug. 31, 2009, charging that he engaged in a kickback and fraud conspiracy at the Federal Creosote Superfund site, located in Manville, N.J. Haas admitted to paying kickbacks to former employees of a prime contractor at Federal Creosote in exchange for the award of a subcontract to the company he represented. He also admitted to inflating bid prices for the subcontract to include the amount of the kickbacks paid to his co-conspirators. Haas also pleaded guilty to committing fraud against the United States.
The clean-up at the Federal Creosote site is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil, as well as other operations at the Federal Creosote site.
The charges are the result of an ongoing investigation being conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation. To date, a total of three companies and eight individuals have pleaded guilty as part of the investigation. Bennett Environmental Inc. was sentenced on Dec. 15, 2008, to pay criminal fines and restitution totaling more than $2.66 million. On July 13, 2009, Christopher Tranchina was sentenced to serve 20 months in jail and to pay restitution totaling $154,597. Frederick Landgraber was sentenced on Oct. 28, 2009, to five months in jail and five months in home confinement, and to pay restitution of $35,000. The other individuals and companies are awaiting sentencing.
Today’s sentencing reflects the department’s commitment to protecting U.S. taxpayers from procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, prosecution and prevention of procurement fraud associated with the increase in contracting activity for national security and other government programs.
James E. Haas Jr., a former representative of a New Jersey subcontractor that provides common backfill, a type of soil material used to refill an excavation, was also ordered to pay $53,049 in restitution to the EPA. Haas pleaded guilty on Oct. 28, 2009, in the U.S. District Court of New Jersey, to an indictment filed on Aug. 31, 2009, charging that he engaged in a kickback and fraud conspiracy at the Federal Creosote Superfund site, located in Manville, N.J. Haas admitted to paying kickbacks to former employees of a prime contractor at Federal Creosote in exchange for the award of a subcontract to the company he represented. He also admitted to inflating bid prices for the subcontract to include the amount of the kickbacks paid to his co-conspirators. Haas also pleaded guilty to committing fraud against the United States.
The clean-up at the Federal Creosote site is partly funded by the EPA. Under an interagency agreement between the EPA and the Army Corps of Engineers, prime contractors oversaw the removal, treatment and disposal of contaminated soil, as well as other operations at the Federal Creosote site.
The charges are the result of an ongoing investigation being conducted by the Antitrust Division’s New York Field Office, the EPA Office of Inspector General and the Internal Revenue Service Criminal Investigation. To date, a total of three companies and eight individuals have pleaded guilty as part of the investigation. Bennett Environmental Inc. was sentenced on Dec. 15, 2008, to pay criminal fines and restitution totaling more than $2.66 million. On July 13, 2009, Christopher Tranchina was sentenced to serve 20 months in jail and to pay restitution totaling $154,597. Frederick Landgraber was sentenced on Oct. 28, 2009, to five months in jail and five months in home confinement, and to pay restitution of $35,000. The other individuals and companies are awaiting sentencing.
Today’s sentencing reflects the department’s commitment to protecting U.S. taxpayers from procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, prosecution and prevention of procurement fraud associated with the increase in contracting activity for national security and other government programs.
Charlottesville Man Sentenced in Child Pornography Case
Ian Zearley to Serve 76 Months in Prison
February 23, 2010 - CHARLOTTESVILLE, VA—A local man who undercover police officers caught attempting to download images containing child pornography on a popular file sharing website was sentenced today in United States District Court for the Western District of Virginia to more than six years in prison.
In November, Ian Andrew Zearley, 28, waived his right to indictment and pled guilty to a two-count information charging him with one count of receiving child pornography and one count of possessing child pornography. Today he was sentenced to 76 months in federal prison.
“This case is just one small step forward in the ongoing battle between law enforcement and the individuals who victimize our children through the online downloading of child pornography,” United States Attorney Timothy J. Heaphy said today. “This case should serve as a warning to others out there participating in this deplorable activity, we are watching you and we will find you and bring you to justice.”
This investigation into Zearley began as a proactive enforcement case by the Charlottesville Police Department. Working in an undercover capacity, a detective with that department logged onto a popular file-sharing program and began looking for shared images that could contain child pornography. After identifying one or more items in the defendant’s shared folder that appeared to be child pornography, detectives traced the IP address to Zearley’s home, and subsequently executed a search warrant at his home. As a result of the search, a laptop computer, and a thumb drive belonging to the defendant were recovered. Both devices were found to contain child pornography.
The investigations of cases involving child pornography are conducted by a number of agencies, including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, U.S. Immigration and Customs Enforcement, the Charlottesville Police Department, the Staunton Police Department, the Southern Virginia Internet Crimes Against Children Task Force and the Louisa County Sheriff’s Office. Assistant United States Attorney Nancy S. Healey is prosecuting these cases for the United States.
This cases 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 http://www.projectsafechildhood.gov/.
February 23, 2010 - CHARLOTTESVILLE, VA—A local man who undercover police officers caught attempting to download images containing child pornography on a popular file sharing website was sentenced today in United States District Court for the Western District of Virginia to more than six years in prison.
In November, Ian Andrew Zearley, 28, waived his right to indictment and pled guilty to a two-count information charging him with one count of receiving child pornography and one count of possessing child pornography. Today he was sentenced to 76 months in federal prison.
“This case is just one small step forward in the ongoing battle between law enforcement and the individuals who victimize our children through the online downloading of child pornography,” United States Attorney Timothy J. Heaphy said today. “This case should serve as a warning to others out there participating in this deplorable activity, we are watching you and we will find you and bring you to justice.”
This investigation into Zearley began as a proactive enforcement case by the Charlottesville Police Department. Working in an undercover capacity, a detective with that department logged onto a popular file-sharing program and began looking for shared images that could contain child pornography. After identifying one or more items in the defendant’s shared folder that appeared to be child pornography, detectives traced the IP address to Zearley’s home, and subsequently executed a search warrant at his home. As a result of the search, a laptop computer, and a thumb drive belonging to the defendant were recovered. Both devices were found to contain child pornography.
The investigations of cases involving child pornography are conducted by a number of agencies, including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, U.S. Immigration and Customs Enforcement, the Charlottesville Police Department, the Staunton Police Department, the Southern Virginia Internet Crimes Against Children Task Force and the Louisa County Sheriff’s Office. Assistant United States Attorney Nancy S. Healey is prosecuting these cases for the United States.
This cases 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 http://www.projectsafechildhood.gov/.
Granite City Man Charged with Production and Possession of Child Pornography
A. Courtney Cox, United States Attorney for the Southern District of Illinois, announced today that on February 17, 2010, JOSEPH EMIL KLUG, age 29 of Granite City, Illinois, was indicted by a federal grand jury in a two-count indictment charging him with production and possession of child pornography. Production of child pornography is punishable by a term of imprisonment of 15 years to 30 years. Possession of child pornography is punishable by a term of imprisonment of up to 10 years. Both charges carry a fine of up to $250,000 and a supervised release term of five years to life.
On February 22, 2010, KLUG appeared in open court for arraignment and was ordered to remain in custody until trial, which is currently scheduled for April 26, 2010.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Information for the indictment was obtained in an investigation conducted by the Federal Bureau of Investigation’s Metro East Cybercrime Task Force.
The case is being prosecuted by Assistant United States Attorney Suzanne M. Garrison.
On February 22, 2010, KLUG appeared in open court for arraignment and was ordered to remain in custody until trial, which is currently scheduled for April 26, 2010.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Information for the indictment was obtained in an investigation conducted by the Federal Bureau of Investigation’s Metro East Cybercrime Task Force.
The case is being prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Former Tyler Bank Employees Sentenced in Separate Federal Cases
February 23, 2010 - TYLER, TX—U.S. Attorney John M. Bales announced today that two former bank employees have been sentenced to federal prison for separate federal criminal violations in the Eastern District of Texas.
LLOYD WAYNE ROCK, 47, of Jacksonville, Texas, pleaded guilty on July 28, 2009, to a charge of embezzlement by a bank employee and was sentenced to 15 months in federal prison today by U.S. District Judge Leonard E. Davis. Rock was also ordered to pay restitution in the amount of $145,000.
According to information presented in court, from 1995 to December 2007, Rock was employed as a bank teller for Bank of America in Tyler. During this time, he embezzled approximately $145,000 from the bank.
In an unrelated case, AMBER PENNER, 27, of Tyler, pleaded guilty on June 24, 2009, to making false bank entries and was sentenced to five months in federal prison today by Judge Davis. Penner was also ordered to pay restitution in the amount of $80,500.
According to information presented in court, from 2005 to January 2008, Penner was employed as a bank teller for Southside Bank in Tyler. During this time, she embezzled funds from the bank and made fraudulent entries in the bank accounting system to conceal the scheme.
These cases were investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
LLOYD WAYNE ROCK, 47, of Jacksonville, Texas, pleaded guilty on July 28, 2009, to a charge of embezzlement by a bank employee and was sentenced to 15 months in federal prison today by U.S. District Judge Leonard E. Davis. Rock was also ordered to pay restitution in the amount of $145,000.
According to information presented in court, from 1995 to December 2007, Rock was employed as a bank teller for Bank of America in Tyler. During this time, he embezzled approximately $145,000 from the bank.
In an unrelated case, AMBER PENNER, 27, of Tyler, pleaded guilty on June 24, 2009, to making false bank entries and was sentenced to five months in federal prison today by Judge Davis. Penner was also ordered to pay restitution in the amount of $80,500.
According to information presented in court, from 2005 to January 2008, Penner was employed as a bank teller for Southside Bank in Tyler. During this time, she embezzled funds from the bank and made fraudulent entries in the bank accounting system to conceal the scheme.
These cases were investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Frank Coan.
Employee at National Penn Bank Accused of Misappropriating Over Four Million Dollars
February 23, 2010 - Robert Stutzman was charged today by information with bank fraud and bank embezzlement, announced United States Attorney Michael L. Levy. The information alleges that Stutzman, while an employee at National Penn Bank in Boyertown, Pennsylvania, misappropriated over four million dollars, that is approximately $4,414,538, of the bank’s money. Stutzman spent much of the embezzled funds on expensive vehicles, a vacation home, real estate, costly jewelry, paid vacations, and gifts, as well as transferred hundreds of thousands of dollars to third parties.
Information Regarding the Defendant:
Name: Robert Stutzman
Address: Pennsylvania
Year of Birth: 1947
If convicted of all charges, Stutzman faces a maximum possible sentence of 63 years' imprisonment, five years of supervised release, a $2,100,000 fine, a $300 special assessment, and restitution.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
Attorney General Eric Holder Speaks at the Fourth Annual National Fusion Center Conference
February 23, 2010 - Thank you, Jim [Letten]. I appreciate your kind words, and I want to thank you for your leadership here in New Orleans. I’m glad to be here in your hometown, and I continue to be inspired by the resilience of this great city. But I also realize that time, alone, has not brought the healing and rebuilding we’ve seen in New Orleans. This progress has been the result of hard work, steadfast resolve and unwavering optimism -- the very principles that guide the critical work being done each day within our national network of fusion centers.
This morning, we’ve gathered to discuss the future of this work and to identify ways to build on the extraordinary progress we’ve seen in recent years. It’s my pleasure to welcome each of you here and to join you in launching what I know will be a productive and worthwhile discussion about the importance and potential of our fusion centers. I’d also like to thank the organizers of this conference for developing an excellent program and bringing us all together.
Many of you have traveled from across the country to participate in this conference, and you represent many different disciplines. I’m grateful for your engagement, for your commitment to sharing information, and for your outstanding service to your communities. The contributions that you make every day, often in the face of great challenges, allow our federal, state, county and municipal governments to meet their most important responsibility -- protecting the safety of the American people.
I’m proud of what’s been accomplished, in a very short time, by our fusion centers. And I’m encouraged by the efforts of my Justice Department colleagues, especially the FBI agents, analysts and investigators who’ve been instrumental in strengthening these centers. I’m also grateful to count the Department of Homeland Security as our partner in this work. Together, our two agencies, and our 72 fusion center staff teams, are providing a more accurate picture of threats to our citizens, our economic infrastructure and our communities. We’re also improving our ability to respond to, and often prevent, disaster.
I’ve seen this for myself. In October, I traveled to Las Vegas, where Lieutenant Tom Monahan of the Las Vegas Police Department led me on a tour of the Southern Nevada Counter-Terrorism Center that he runs. During the brief time I was on site, a potential crisis was identified and averted. That day, the actions of the fusion center staff – and their community partners – in all likelihood prevented a gang-related shooting. Because the fusion center team members had established a relationship with the local school security community, they were able to communicate clearly and act quickly. Most importantly, they were able to protect, and likely save, lives.
Similar outreach efforts are being employed each day, all across the country. In light of the results we’ve seen and the partnerships that have been established with the private sector and across government agencies, I’m confident that we’re on the right path. That said, we cannot yet be satisfied. We cannot become complacent. And we cannot ignore the unfortunate fact that threats to our people, to our communities and to our national security remain a significant problem.
Recent history proves this.
• Last fall, after one of the most serious terrorist plots since September 11th was uncovered, Najibullah Zazi was arrested and charged with conspiring to detonate bombs on New York City commuter trains. Yesterday afternoon, Zazi pleaded guilty to conspiring to use weapons of mass destruction, conspiring to commit murder, and providing material support to Al Qaeda. This attempted attack on our homeland was real, it was in motion, and – were it not for the combined efforts of our law enforcement and intelligence communities – it would have been deadly.
• On Christmas Day, Umar Farouk Abdulmutallab was charged with attempting to murder nearly 300 passengers and crewmembers aboard Northwest Airlines Flight 253, as it landed in Detroit.
• Earlier this month in New York City, a U.S.-trained Pakistani physicist was convicted of attempted murder and armed assault. This woman had shown a clear intent to kill Americans and, at the time of her arrest, possessed documents that referred to “a mass casualty attack” and listed locations, including the Empire State Building, the Statue of Liberty and the Brooklyn Bridge.
• Three months ago in Minnesota, charging documents were unsealed against 8 individuals who are believed to have provided material support to a Somali-based terror organization. These cases are part of an ongoing FBI investigation that to date has resulted in 14 arrests and 4 guilty pleas.
• Last April, five men from New Jersey and Pennsylvania were imprisoned for plotting to kill U.S. soldiers in an armed attack on the military base in Fort Dix, New Jersey.
These cases are just a few of the dozens of terror plots our government has prosecuted or dismantled in recent months. As chilling as these cases are, they represent just a snapshot of what confronts us. We are at war. This is the reality in which we live. And our fusion centers are on the frontlines of America’s best, and most effective, efforts to fight back. I’m proud that this administration is committed to using every weapon in our arsenal to win this war. At the Justice Department, we’ve reinvigorated our commitment to sharing intelligence and providing law enforcement officers at every level with the tools and training they need to avert and combat disaster.
Instead of pursuing a narrow, ideological approach to fighting terrorism, combating crime, and protecting the safety of our people, today’s Justice Department is committed to being flexible, pragmatic and aggressive. This approach is working. By focusing on improving communication and collaboration, we’ve helped to prevent hundreds of crimes and to protect even more lives.
The backbone of this effort is the combined work of thousands of FBI and other federal agents, state and local police officers, Department of Homeland Security officials, and intelligence experts around the world. Every day, they work to prevent terrorist attacks and combat crime. This work – your work in our fusion centers– helps keep us safe. While I realize that you’re happy to labor in the shadows, content in knowing that your efforts help save lives, I’m committed to making sure that the facts about your work – as well as your record of success – are well known and better understood. Yes, you’ve proven that you don’t need to be patted on the back and thanked publicly for the work you do. But I assure each of you that I will continue to highlight and defend your outstanding work.
From my vantage point as Attorney General, and from what I’ve witnessed in the field, I’ve seen why our fusion centers must be at the center of state, local and federal intelligence. I’ve also learned a few important things:
First, when it comes to keeping our people safe, a one-size-fits-all approach is not the best answer. Our fusion centers reflect this. That’s why they’re set up around the specific needs, and threats, facing local areas. Although these centers aren’t, and shouldn’t be, run by the federal government, I know that you need our support. That’s exactly what you can expect from your Justice Department, and, later today, you’ll hear more about the investments we intend to provide in the months ahead.
Second, although our fusion centers were initially established to combat terrorism, they’ve been designed and equipped to expand beyond that goal. This is critical. Our research shows that, when asked to prioritize the most pressing security issues they face, our local, state and tribal law enforcement partners – quite a diverse group – all cite the same things: gangs, guns and drugs. In the work of protecting our people, fusion centers can, and must, tackle every type of threat and all forms of crimes.
Finally, there’s one key point I want to mention: I do, and always will, oppose the argument that we must sacrifice our Constitution’s safeguards to protect our national security. That’s simply, and dangerously, false. Discarding the values that have made us the world’s greatest nation, and its brightest beacon for justice, will not make us stronger. And it will not make us safer. Our fusion centers were established with this essential truth in mind, and they’ve been carefully designed to protect the privacy rights of our citizens. Those who’ve raised questions should know that, yes, these centers have given law enforcement new tools and capacities for connecting agencies, personnel and information. Yes, they’ve improved our ability to prevent attacks and combat crime. But, no, they do not and never will jeopardize every American’s guaranteed right to privacy. The protection of our civil liberties is of critical importance – to me, to the Justice Department, and to this administration. It’s an issue we take very seriously and, later in this conference, you’ll hear more about some of the specific steps we’re taking to ensure and enhance privacy rights.
Last year, when I became Attorney General, I took an oath to support and defend our Constitution. I also pledged that protecting our people would be the Justice Department’s top priority. Let me assure you that supporting the work you do is not a passing issue for the Department. It is at the very top of our agenda. Today, when threats to our safety can come from halfway around the world or from just down the block, the work of our fusion centers makes it possible for me to fulfill my responsibilities and keep my word.
Again, I want to thank you for your excellent work and for the effort each one of you has made to be here today. I understand that we have nearly 1,000 participants, and your strong presence gives me great hope about the days ahead. I’m particularly heartened by the fact that, in this “sold out” crowd, some of you are here on your own dime and on your own time. Despite the budget challenges and increasing demands you face, many of you have made enormous personal sacrifices to be here. Thank you all.
It’s been a pleasure to join you and a privilege to salute your work. I wish you a most productive conference, and I look forward to working with you all to make even greater progress in strengthening our fusion centers and protecting the American people. I am proud to call you my colleagues.
This morning, we’ve gathered to discuss the future of this work and to identify ways to build on the extraordinary progress we’ve seen in recent years. It’s my pleasure to welcome each of you here and to join you in launching what I know will be a productive and worthwhile discussion about the importance and potential of our fusion centers. I’d also like to thank the organizers of this conference for developing an excellent program and bringing us all together.
Many of you have traveled from across the country to participate in this conference, and you represent many different disciplines. I’m grateful for your engagement, for your commitment to sharing information, and for your outstanding service to your communities. The contributions that you make every day, often in the face of great challenges, allow our federal, state, county and municipal governments to meet their most important responsibility -- protecting the safety of the American people.
I’m proud of what’s been accomplished, in a very short time, by our fusion centers. And I’m encouraged by the efforts of my Justice Department colleagues, especially the FBI agents, analysts and investigators who’ve been instrumental in strengthening these centers. I’m also grateful to count the Department of Homeland Security as our partner in this work. Together, our two agencies, and our 72 fusion center staff teams, are providing a more accurate picture of threats to our citizens, our economic infrastructure and our communities. We’re also improving our ability to respond to, and often prevent, disaster.
I’ve seen this for myself. In October, I traveled to Las Vegas, where Lieutenant Tom Monahan of the Las Vegas Police Department led me on a tour of the Southern Nevada Counter-Terrorism Center that he runs. During the brief time I was on site, a potential crisis was identified and averted. That day, the actions of the fusion center staff – and their community partners – in all likelihood prevented a gang-related shooting. Because the fusion center team members had established a relationship with the local school security community, they were able to communicate clearly and act quickly. Most importantly, they were able to protect, and likely save, lives.
Similar outreach efforts are being employed each day, all across the country. In light of the results we’ve seen and the partnerships that have been established with the private sector and across government agencies, I’m confident that we’re on the right path. That said, we cannot yet be satisfied. We cannot become complacent. And we cannot ignore the unfortunate fact that threats to our people, to our communities and to our national security remain a significant problem.
Recent history proves this.
• Last fall, after one of the most serious terrorist plots since September 11th was uncovered, Najibullah Zazi was arrested and charged with conspiring to detonate bombs on New York City commuter trains. Yesterday afternoon, Zazi pleaded guilty to conspiring to use weapons of mass destruction, conspiring to commit murder, and providing material support to Al Qaeda. This attempted attack on our homeland was real, it was in motion, and – were it not for the combined efforts of our law enforcement and intelligence communities – it would have been deadly.
• On Christmas Day, Umar Farouk Abdulmutallab was charged with attempting to murder nearly 300 passengers and crewmembers aboard Northwest Airlines Flight 253, as it landed in Detroit.
• Earlier this month in New York City, a U.S.-trained Pakistani physicist was convicted of attempted murder and armed assault. This woman had shown a clear intent to kill Americans and, at the time of her arrest, possessed documents that referred to “a mass casualty attack” and listed locations, including the Empire State Building, the Statue of Liberty and the Brooklyn Bridge.
• Three months ago in Minnesota, charging documents were unsealed against 8 individuals who are believed to have provided material support to a Somali-based terror organization. These cases are part of an ongoing FBI investigation that to date has resulted in 14 arrests and 4 guilty pleas.
• Last April, five men from New Jersey and Pennsylvania were imprisoned for plotting to kill U.S. soldiers in an armed attack on the military base in Fort Dix, New Jersey.
These cases are just a few of the dozens of terror plots our government has prosecuted or dismantled in recent months. As chilling as these cases are, they represent just a snapshot of what confronts us. We are at war. This is the reality in which we live. And our fusion centers are on the frontlines of America’s best, and most effective, efforts to fight back. I’m proud that this administration is committed to using every weapon in our arsenal to win this war. At the Justice Department, we’ve reinvigorated our commitment to sharing intelligence and providing law enforcement officers at every level with the tools and training they need to avert and combat disaster.
Instead of pursuing a narrow, ideological approach to fighting terrorism, combating crime, and protecting the safety of our people, today’s Justice Department is committed to being flexible, pragmatic and aggressive. This approach is working. By focusing on improving communication and collaboration, we’ve helped to prevent hundreds of crimes and to protect even more lives.
The backbone of this effort is the combined work of thousands of FBI and other federal agents, state and local police officers, Department of Homeland Security officials, and intelligence experts around the world. Every day, they work to prevent terrorist attacks and combat crime. This work – your work in our fusion centers– helps keep us safe. While I realize that you’re happy to labor in the shadows, content in knowing that your efforts help save lives, I’m committed to making sure that the facts about your work – as well as your record of success – are well known and better understood. Yes, you’ve proven that you don’t need to be patted on the back and thanked publicly for the work you do. But I assure each of you that I will continue to highlight and defend your outstanding work.
From my vantage point as Attorney General, and from what I’ve witnessed in the field, I’ve seen why our fusion centers must be at the center of state, local and federal intelligence. I’ve also learned a few important things:
First, when it comes to keeping our people safe, a one-size-fits-all approach is not the best answer. Our fusion centers reflect this. That’s why they’re set up around the specific needs, and threats, facing local areas. Although these centers aren’t, and shouldn’t be, run by the federal government, I know that you need our support. That’s exactly what you can expect from your Justice Department, and, later today, you’ll hear more about the investments we intend to provide in the months ahead.
Second, although our fusion centers were initially established to combat terrorism, they’ve been designed and equipped to expand beyond that goal. This is critical. Our research shows that, when asked to prioritize the most pressing security issues they face, our local, state and tribal law enforcement partners – quite a diverse group – all cite the same things: gangs, guns and drugs. In the work of protecting our people, fusion centers can, and must, tackle every type of threat and all forms of crimes.
Finally, there’s one key point I want to mention: I do, and always will, oppose the argument that we must sacrifice our Constitution’s safeguards to protect our national security. That’s simply, and dangerously, false. Discarding the values that have made us the world’s greatest nation, and its brightest beacon for justice, will not make us stronger. And it will not make us safer. Our fusion centers were established with this essential truth in mind, and they’ve been carefully designed to protect the privacy rights of our citizens. Those who’ve raised questions should know that, yes, these centers have given law enforcement new tools and capacities for connecting agencies, personnel and information. Yes, they’ve improved our ability to prevent attacks and combat crime. But, no, they do not and never will jeopardize every American’s guaranteed right to privacy. The protection of our civil liberties is of critical importance – to me, to the Justice Department, and to this administration. It’s an issue we take very seriously and, later in this conference, you’ll hear more about some of the specific steps we’re taking to ensure and enhance privacy rights.
Last year, when I became Attorney General, I took an oath to support and defend our Constitution. I also pledged that protecting our people would be the Justice Department’s top priority. Let me assure you that supporting the work you do is not a passing issue for the Department. It is at the very top of our agenda. Today, when threats to our safety can come from halfway around the world or from just down the block, the work of our fusion centers makes it possible for me to fulfill my responsibilities and keep my word.
Again, I want to thank you for your excellent work and for the effort each one of you has made to be here today. I understand that we have nearly 1,000 participants, and your strong presence gives me great hope about the days ahead. I’m particularly heartened by the fact that, in this “sold out” crowd, some of you are here on your own dime and on your own time. Despite the budget challenges and increasing demands you face, many of you have made enormous personal sacrifices to be here. Thank you all.
It’s been a pleasure to join you and a privilege to salute your work. I wish you a most productive conference, and I look forward to working with you all to make even greater progress in strengthening our fusion centers and protecting the American people. I am proud to call you my colleagues.
Justice Department Requires KeySpan to Disgorge $12 Million in Profits from Anticompetitive Agreement
Derivative Contract Led to Higher Prices for Electricity Generating Capacity in New York City
February 23, 2010 - WASHINGTON — The Department of Justice today announced a settlement with KeySpan Corporation that requires KeySpan to pay $12 million for violating the antitrust laws by entering into an agreement restraining competition in the New York City electricity capacity market. The department said the financial derivative agreement likely resulted in a price increase for retail electricity suppliers and, in turn, an increase in electricity prices for consumers.
The department’s Antitrust Division today filed a civil antitrust complaint in U.S. District Court for the Southern District of New York, along with the proposed settlement that, if approved by the court, would resolve the lawsuit. The settlement provides for disgorgement of profits for a violation of the antitrust laws and requires KeySpan to pay $12 million to the United States.
According to the complaint, KeySpan and a financial services company entered into an agreement in January 2006 that gave KeySpan a financial interest in the electricity capacity sales of its largest competitor, Astoria. At the time of the agreement, KeySpan was the largest seller of electricity capacity in the New York City market. By providing KeySpan revenues from its competitor’s capacity sales, as well as its own, the agreement with the financial services company had the anticompetitive effect of eliminating KeySpan’s incentive to sell its electricity capacity at lower prices. As a result, retail electricity prices in New York City were likely higher than they would have been without this anticompetitive agreement. The anticompetitive effects of the agreement lasted until March 2008, when regulatory conditions eliminated KeySpan’s ability to affect the market price of electricity capacity.
New York City’s electricity generating capacity market was created to ensure that sufficient generation capacity exists to meet expected electricity needs. Electricity retailers serving consumers in the city are required to purchase capacity from generators in amounts related to their expected peak energy demand. Electricity generators offer to sell their capacity to electricity retailers in regularly held auctions.
KeySpan is a New York corporation and has its headquarters in New York City. Until 2008, KeySpan owned approximately 2400 megawatts of electric generating capacity at its Ravenswood electrical generation facility located in New York City. KeySpan was purchased by National Grid in August 2007.
The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Donna N. Kooperstein, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th St. NW, Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the Final Judgment upon a finding that it serves the public interest.
February 23, 2010 - WASHINGTON — The Department of Justice today announced a settlement with KeySpan Corporation that requires KeySpan to pay $12 million for violating the antitrust laws by entering into an agreement restraining competition in the New York City electricity capacity market. The department said the financial derivative agreement likely resulted in a price increase for retail electricity suppliers and, in turn, an increase in electricity prices for consumers.
The department’s Antitrust Division today filed a civil antitrust complaint in U.S. District Court for the Southern District of New York, along with the proposed settlement that, if approved by the court, would resolve the lawsuit. The settlement provides for disgorgement of profits for a violation of the antitrust laws and requires KeySpan to pay $12 million to the United States.
According to the complaint, KeySpan and a financial services company entered into an agreement in January 2006 that gave KeySpan a financial interest in the electricity capacity sales of its largest competitor, Astoria. At the time of the agreement, KeySpan was the largest seller of electricity capacity in the New York City market. By providing KeySpan revenues from its competitor’s capacity sales, as well as its own, the agreement with the financial services company had the anticompetitive effect of eliminating KeySpan’s incentive to sell its electricity capacity at lower prices. As a result, retail electricity prices in New York City were likely higher than they would have been without this anticompetitive agreement. The anticompetitive effects of the agreement lasted until March 2008, when regulatory conditions eliminated KeySpan’s ability to affect the market price of electricity capacity.
New York City’s electricity generating capacity market was created to ensure that sufficient generation capacity exists to meet expected electricity needs. Electricity retailers serving consumers in the city are required to purchase capacity from generators in amounts related to their expected peak energy demand. Electricity generators offer to sell their capacity to electricity retailers in regularly held auctions.
KeySpan is a New York corporation and has its headquarters in New York City. Until 2008, KeySpan owned approximately 2400 megawatts of electric generating capacity at its Ravenswood electrical generation facility located in New York City. KeySpan was purchased by National Grid in August 2007.
The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Donna N. Kooperstein, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th St. NW, Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the Final Judgment upon a finding that it serves the public interest.
Monday, February 22, 2010
East Texas Jury Deliberates for an Hour Before Finding Men Guilty of Money Laundering Following Three-Day Trial
February 22, 2010 - TYLER, TX—U.S. Attorney John M. Bales announced that two East Texas men have been found guilty by a jury of money laundering in the Eastern District of Texas.
TONY HARRIS, 32, of Longview, Texas, and LAKENDRICK MILLER, 26, of Marshall, Texas, were convicted on Feb. 19, of money laundering following a three-day jury trial before U.S. District Judge Leonard Davis. The jury returned the verdict around 3:00 p.m. after deliberating for about an hour.
According to information presented in court, from April 2007 to June 2009, Harris and Miller were involved in a drug trafficking scheme which involved money being sent to California where it was used to buy illegal prescription drugs, such as codeine and hydrocodone. The prescription drugs were then smuggled from California to East Texas for distribution. After the illegal prescription drugs were sold in East Texas, the money was sent back to California to purchase more drugs, luxury cars, and other property. During trial, prosecutors presented evidence showing that more than $2 million was laundered through this scheme. A 14-count federal indictment was returned by a grand jury on June 3, 2009, charging Harris, Miller, and five other individuals with conspiracy to commit money laundering.
Harris faces up to 140 years in federal prison and Miller faces up to 60 years in federal prison at sentencing. They also face a forfeiture judgment of $1.5 million each and the forfeiture of luxury vehicles. Sentencing dates have not been set.
The case was investigated by the Federal Bureau of Investigation, the Longview Police Department and the Longview CODE Unit. This case was prosecuted by Assistant U.S. Attorneys Richard L. Moore and Arnold A. Spencer.
TONY HARRIS, 32, of Longview, Texas, and LAKENDRICK MILLER, 26, of Marshall, Texas, were convicted on Feb. 19, of money laundering following a three-day jury trial before U.S. District Judge Leonard Davis. The jury returned the verdict around 3:00 p.m. after deliberating for about an hour.
According to information presented in court, from April 2007 to June 2009, Harris and Miller were involved in a drug trafficking scheme which involved money being sent to California where it was used to buy illegal prescription drugs, such as codeine and hydrocodone. The prescription drugs were then smuggled from California to East Texas for distribution. After the illegal prescription drugs were sold in East Texas, the money was sent back to California to purchase more drugs, luxury cars, and other property. During trial, prosecutors presented evidence showing that more than $2 million was laundered through this scheme. A 14-count federal indictment was returned by a grand jury on June 3, 2009, charging Harris, Miller, and five other individuals with conspiracy to commit money laundering.
Harris faces up to 140 years in federal prison and Miller faces up to 60 years in federal prison at sentencing. They also face a forfeiture judgment of $1.5 million each and the forfeiture of luxury vehicles. Sentencing dates have not been set.
The case was investigated by the Federal Bureau of Investigation, the Longview Police Department and the Longview CODE Unit. This case was prosecuted by Assistant U.S. Attorneys Richard L. Moore and Arnold A. Spencer.
“Scarecrow Bandit” Sentenced to 330 Years in Federal Prison
February 22, 2010 - DALLAS—Today, U.S. District Judge Jane J. Boyle sentenced another “Scarecrow Bandit,” announced U.S. Attorney James T. Jacks of the Northern District of Texas. Jarvis Dupree Ross, a.k.a. “Dookie,” a.k.a.“Dapree Dollars,” a.k.a. “Fifty,” 30; was sentenced to 3960 months (330 years) in federal prison following his conviction for his role in numerous armed robberies in the Dallas/Fort Worth, Texas area. The “Scarecrow Bandits” were a group of seven individuals who committed a series of violent “takeover-style" bank robberies in the Dallas area between January and June 2008.
Ross, along with Corey Deyon Duffey, a.k.a. “Kenyo,” a.k.a. “Calvin Brown,” 29; Antonyo Reece, a.k.a. “Seven,” 32; Tony R. Hewitt, a.k.a. “PricelessT,” 43; and Charles Runnels, a.k.a. “Junior,” 43; were convicted at trial in August 2009. All were convicted on all but two counts of a superseding indictment charging multiple counts of conspiracy to commit bank robbery; bank robbery; attempted bank robbery; and using firearms in relation to crimes of violence. Ross was also convicted on one count of kidnaping. Duffey, Hewitt, and Runnels were each convicted on one count of being a felon in possession of a firearm, while Ross was convicted on two counts of being a felon in possession of a firearm.
Duffey was sentenced in January to 4253 months (354 years and five months) in prison and ordered to pay $355,976 in restitution. Reece was sentenced on February 4, 2010, to 1680 months (140 years) in prison. Hewitt, is scheduled to be sentenced on March 18, 2010, and Runnels is scheduled to be sentenced on April 15, 2010. Both face multiple life sentences.
Two defendants pleaded guilty prior to trial. Yolanda McDow, a.k.a. “Yo,” 34 pleaded guilty to three counts of bank robbery, two counts of conspiracy to commit bank robbery, and one count of using and carrying a firearm during and in relation to conspiracy to commit bank robbery. She pleaded guilty to the five robberies in which she participated as a “lookout” for the group. In addition, following her arrest, she cooperated in the investigation and testified for the prosecution at the trial. She was sentenced in December 2009 to 190 months in prison and ordered to pay $336,976 in restitution. Darobie Kentay Stenline, a.k.a. “Fish,” a.k.a. “Dude White,” 31, pleaded guilty the week prior to trial to various conspiracy to commit bank robbery, bank robbery and firearms charges. He is scheduled to be sentenced on March 4, 2010; he faces a maximum statutory sentence of life in prison.
The defendants were known as the Scarecrow Bandits by the FBI because they wore loose, sometimes plaid, shirts and floppy hats during the first several of the 21 robberies they are believed to have committed. During later robberies, however, their outfits changed to mostly black gear and they wore masks, gloves and body armor. At trial, the government presented evidence that the defendants conspired together to commit, committed, or attempted to commit, several armed bank robberies, as listed below:
June 2, 2008 Regions Bank
2245 West Campbell Road, Garland, Texas
May 2008 Bank of America
1431 Spring Valley Road, Richardson, Texas
May 2008 Bank of America
534 Centennial Road, Richardson, Texas
May 16, 2008 Bank of America
4751 South Hulen Road, Fort Worth, Texas
April 24, 2008 Bank of America
7300 North MacArthur Blvd., Irving, Texas
March 28, 2008 State Bank of Texas
517 West Interstate 30, Garland, Texas
March 28, 2008 Century Bank
3015 Frankford Road, Dallas, Texas
February 1, 2008 Comerica Bank
1483 North Hampton Road, Desoto, Texas
January 28, 2008 Citibank
2720 Beltline Road, Garland, Texas
According to evidence presented at trial, each robbery was well-organized and researched, executed with precision and discipline, and involved aggressive use of firearms (including assault rifles) and tasers by the defendants. The defendants routinely terrorized bank employees by pointing handguns within inches of their faces and threatening violence if their orders were not obeyed. In fact, in one robbery, a taser was discharged on a bank employee. They communicated using cell phones and walkie-talkies and generally spent less than two to three minutes inside each bank. Additionally, they always used stolen cars for their getaways.
The defendants were arrested in June 2008, after a foiled bank robbery in Garland, Texas. When law enforcement attempted to arrest Hewitt, who along with Duffey were the group’s leaders, he used his vehicle to lead them on a high-speed pursuit, attempting to avoid apprehension by entering a Costco store in Plano, Texas, where he was arrested after law enforcement was compelled to evacuate the store.
The same day, when law enforcement attempted to arrest Ross, who was in the same vehicle as Duffey, Duffey dropped Ross off at an apartment complex where he broke into an apartment and kidnapped an innocent victim at gunpoint, in hopes of thwarting apprehension. When law enforcement attempted to arrest Runnels and Reece, not only did they attempt to flee from law enforcement, but Runnels used his vehicle to ram the vehicles of the pursuing law enforcement officers.
U.S. Attorney Jacks praised the excellent investigative efforts of the Dallas, Richardson, Garland, DeSoto, Irving and Plano Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorneys Gary Tromblay, John Kull and Jay DeWald.
Ross, along with Corey Deyon Duffey, a.k.a. “Kenyo,” a.k.a. “Calvin Brown,” 29; Antonyo Reece, a.k.a. “Seven,” 32; Tony R. Hewitt, a.k.a. “PricelessT,” 43; and Charles Runnels, a.k.a. “Junior,” 43; were convicted at trial in August 2009. All were convicted on all but two counts of a superseding indictment charging multiple counts of conspiracy to commit bank robbery; bank robbery; attempted bank robbery; and using firearms in relation to crimes of violence. Ross was also convicted on one count of kidnaping. Duffey, Hewitt, and Runnels were each convicted on one count of being a felon in possession of a firearm, while Ross was convicted on two counts of being a felon in possession of a firearm.
Duffey was sentenced in January to 4253 months (354 years and five months) in prison and ordered to pay $355,976 in restitution. Reece was sentenced on February 4, 2010, to 1680 months (140 years) in prison. Hewitt, is scheduled to be sentenced on March 18, 2010, and Runnels is scheduled to be sentenced on April 15, 2010. Both face multiple life sentences.
Two defendants pleaded guilty prior to trial. Yolanda McDow, a.k.a. “Yo,” 34 pleaded guilty to three counts of bank robbery, two counts of conspiracy to commit bank robbery, and one count of using and carrying a firearm during and in relation to conspiracy to commit bank robbery. She pleaded guilty to the five robberies in which she participated as a “lookout” for the group. In addition, following her arrest, she cooperated in the investigation and testified for the prosecution at the trial. She was sentenced in December 2009 to 190 months in prison and ordered to pay $336,976 in restitution. Darobie Kentay Stenline, a.k.a. “Fish,” a.k.a. “Dude White,” 31, pleaded guilty the week prior to trial to various conspiracy to commit bank robbery, bank robbery and firearms charges. He is scheduled to be sentenced on March 4, 2010; he faces a maximum statutory sentence of life in prison.
The defendants were known as the Scarecrow Bandits by the FBI because they wore loose, sometimes plaid, shirts and floppy hats during the first several of the 21 robberies they are believed to have committed. During later robberies, however, their outfits changed to mostly black gear and they wore masks, gloves and body armor. At trial, the government presented evidence that the defendants conspired together to commit, committed, or attempted to commit, several armed bank robberies, as listed below:
June 2, 2008 Regions Bank
2245 West Campbell Road, Garland, Texas
May 2008 Bank of America
1431 Spring Valley Road, Richardson, Texas
May 2008 Bank of America
534 Centennial Road, Richardson, Texas
May 16, 2008 Bank of America
4751 South Hulen Road, Fort Worth, Texas
April 24, 2008 Bank of America
7300 North MacArthur Blvd., Irving, Texas
March 28, 2008 State Bank of Texas
517 West Interstate 30, Garland, Texas
March 28, 2008 Century Bank
3015 Frankford Road, Dallas, Texas
February 1, 2008 Comerica Bank
1483 North Hampton Road, Desoto, Texas
January 28, 2008 Citibank
2720 Beltline Road, Garland, Texas
According to evidence presented at trial, each robbery was well-organized and researched, executed with precision and discipline, and involved aggressive use of firearms (including assault rifles) and tasers by the defendants. The defendants routinely terrorized bank employees by pointing handguns within inches of their faces and threatening violence if their orders were not obeyed. In fact, in one robbery, a taser was discharged on a bank employee. They communicated using cell phones and walkie-talkies and generally spent less than two to three minutes inside each bank. Additionally, they always used stolen cars for their getaways.
The defendants were arrested in June 2008, after a foiled bank robbery in Garland, Texas. When law enforcement attempted to arrest Hewitt, who along with Duffey were the group’s leaders, he used his vehicle to lead them on a high-speed pursuit, attempting to avoid apprehension by entering a Costco store in Plano, Texas, where he was arrested after law enforcement was compelled to evacuate the store.
The same day, when law enforcement attempted to arrest Ross, who was in the same vehicle as Duffey, Duffey dropped Ross off at an apartment complex where he broke into an apartment and kidnapped an innocent victim at gunpoint, in hopes of thwarting apprehension. When law enforcement attempted to arrest Runnels and Reece, not only did they attempt to flee from law enforcement, but Runnels used his vehicle to ram the vehicles of the pursuing law enforcement officers.
U.S. Attorney Jacks praised the excellent investigative efforts of the Dallas, Richardson, Garland, DeSoto, Irving and Plano Police Department and the FBI. The case was prosecuted by Assistant U.S. Attorneys Gary Tromblay, John Kull and Jay DeWald.
Justice Department Obtains More Than $2 Million to Settle Claims of Housing Discrimination Against Former Owners and Managers of Kansas City Apartment Complex
February 22, 2010 - The Justice Department today announced the settlement of a case alleging housing discrimination in the rental of apartments in Kansas City, Kan. The combined $2.13 million settlement represents the second largest monetary payment ever obtained by the department in a fair housing case alleging housing discrimination in the rental of apartments.
The department brought a lawsuit in federal district court in Kansas alleging that Stacy Sturdevant, the community manager of the Central Park Towers Apartments (CPT), her employer, NHP Management Co., as well as the Apartment Investment and Management Company (AIMCO) and the former owners of CPT, engaged in a pattern or practice of discrimination on the basis of race in violation of the Fair Housing Act. The lawsuit also alleged that the defendants retaliated against an employee, Melissa Kothe, for cooperating with Department of Housing and Urban Development (HUD) investigators.
In its amended complaint, filed on Sept. 18, 2008, the department alleged that for two-and-a-half years between 2003-2005, Sturdevant engaged in discriminatory rental practices on the basis of race. The United States presented evidence in litigation that Sturdevant openly displayed racially hostile materials at CPT, such as hangman’s nooses, frequently referred to African Americans with racial epithets and generally treated white residents more favorably than African American residents. The government also alleged that the defendants improperly retaliated against Kothe, a resident services coordinator at CPT, by firing her when she cooperated with HUD investigators and advised a resident to contact HUD.
"The right to live peacefully in one’s own home without being victimized, harassed and treated unfairly because of race is a fundamental right in our nation," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This settlement is designed to send a message to housing providers across the country that we have a zero-tolerance policy for this type of egregious behavior."
"Individuals who step forward to assist victims of housing discrimination should know that HUD and the Justice Department will protect them from retaliation," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "This settlement vindicates that interest."
Sturdevant was an employee of NHP Management Company, a subsidiary of AIMCO, one of the nation’s largest owners and operators of multifamily dwellings. Central Park Towers II L.P. owned the building where Sturdevant was employed — a Section 8 property with 195 units designated for persons with disabilities and/or elderly. This settlement will resolve the United States’ claims on behalf of over 40 current and former tenants of Central Park Towers, as well as the claim on behalf of Melissa Kothe.
The department settled its claim against the former owners, Central Park Towers II L.P. last summer, for $145,000. That settlement, together with the agreement announced today, amount to a total settlement of $2.13 million. The settlements are in the form of consent orders that the parties have submitted to the court for approval. Last summer’s settlement with the former owners has already been approved by the court. Today’s agreement must still be approved by U.S. District Court Judge Kathryn Vratil.
The agreement filed today would require the defendants to pay $95,500 in civil penalties to the United States, and a total of approximately $1.89 million into a fund that would be used to compensate persons who were harmed by the defendants’ discriminatory practices. The terms of the distribution of the monetary damages will be determined in a separate disbursement order to be submitted by the United States for approval by the court.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov. Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 to report discrimination.
The department brought a lawsuit in federal district court in Kansas alleging that Stacy Sturdevant, the community manager of the Central Park Towers Apartments (CPT), her employer, NHP Management Co., as well as the Apartment Investment and Management Company (AIMCO) and the former owners of CPT, engaged in a pattern or practice of discrimination on the basis of race in violation of the Fair Housing Act. The lawsuit also alleged that the defendants retaliated against an employee, Melissa Kothe, for cooperating with Department of Housing and Urban Development (HUD) investigators.
In its amended complaint, filed on Sept. 18, 2008, the department alleged that for two-and-a-half years between 2003-2005, Sturdevant engaged in discriminatory rental practices on the basis of race. The United States presented evidence in litigation that Sturdevant openly displayed racially hostile materials at CPT, such as hangman’s nooses, frequently referred to African Americans with racial epithets and generally treated white residents more favorably than African American residents. The government also alleged that the defendants improperly retaliated against Kothe, a resident services coordinator at CPT, by firing her when she cooperated with HUD investigators and advised a resident to contact HUD.
"The right to live peacefully in one’s own home without being victimized, harassed and treated unfairly because of race is a fundamental right in our nation," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This settlement is designed to send a message to housing providers across the country that we have a zero-tolerance policy for this type of egregious behavior."
"Individuals who step forward to assist victims of housing discrimination should know that HUD and the Justice Department will protect them from retaliation," said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity. "This settlement vindicates that interest."
Sturdevant was an employee of NHP Management Company, a subsidiary of AIMCO, one of the nation’s largest owners and operators of multifamily dwellings. Central Park Towers II L.P. owned the building where Sturdevant was employed — a Section 8 property with 195 units designated for persons with disabilities and/or elderly. This settlement will resolve the United States’ claims on behalf of over 40 current and former tenants of Central Park Towers, as well as the claim on behalf of Melissa Kothe.
The department settled its claim against the former owners, Central Park Towers II L.P. last summer, for $145,000. That settlement, together with the agreement announced today, amount to a total settlement of $2.13 million. The settlements are in the form of consent orders that the parties have submitted to the court for approval. Last summer’s settlement with the former owners has already been approved by the court. Today’s agreement must still be approved by U.S. District Court Judge Kathryn Vratil.
The agreement filed today would require the defendants to pay $95,500 in civil penalties to the United States, and a total of approximately $1.89 million into a fund that would be used to compensate persons who were harmed by the defendants’ discriminatory practices. The terms of the distribution of the monetary damages will be determined in a separate disbursement order to be submitted by the United States for approval by the court.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or email the Justice Department at fairhousing@usdoj.gov. Such persons may also contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 to report discrimination.
Indictment Charging Four Individuals Unsealed in Condominium Asbestos Case
February 22, 2010 - WASHINGTON—An 11-count indictment was unsealed today charging four individuals with conspiracy, violations of the Clean Air Act, and making false statements for their roles in a scheme to improperly remove and dispose of asbestos from multiple condominiums in Florida, the Justice Department announced.
John Loder, 43, of Redington Beach, Fla.; Stephen J. Spencer, 48, of Clearwater, Fla.; Guy Gannaway, 53, of Safety Harbor, Fla.; and Keith McConnell, a/k/a "Animal," 54, of Largo, Fla., were charged in the indictment.
According to the indictment, John Loder and Stephen J. Spencer were members of an entity called Sun Vista Development Group LLC, which was created to carry out the day-to-day operations and administrative work associated with the purchase, renovation and resale of large-scale condominium developments. Two of these developments were Barefoot Beach Resort, formerly known as Indian Pass Apartments, in Indian Shores, Fla., and Shore Club Pasadena, formerly known as Pasadena Apartments, in Pasadena, Fla. Guy Gannaway was the owner of Gannaway Builders Inc., a construction company hired as the general contractor for both Barefoot Beach Resort and Shore Club Pasadena. Keith McConnell was a supervisory employee of Gannaway Builders Inc. Units at these developments had ceilings coated with a "popcorn"-texture that contained greater than 1 percent asbestos.
According to the indictment, from November 2004 to Dec. 10, 2004, the defendants directed renovation work to begin at Barefoot Beach Resort without first conducting an asbestos survey for the building. From Dec. 10, 2004 until April 2005, the defendants discussed the asbestos at Barefoot Beach Resort and rejected at least one bid for complete removal of the asbestos-containing ceiling material from Barefoot Beach Resort. They decided, instead, to cover the existing ceilings with a new layer of drywall using Gannaway Builders employees and subcontractors to install the new drywall. The indictment alleges that the work practice standards for asbestos, developed as part of the National Emission Standards for Hazardous Air Pollutants, were not followed while the renovation was performed at Barefoot Beach Resort between Nov. 15, 2004, and Sept. 15, 2005. In some units, the asbestos-containing popcorn ceiling material was completely removed following a roof leak on or about June 24, 2005, also without following the asbestos work practice standards. Additionally, the indictment alleges that the defendants made and caused others to make false statements to the Pinellas County Air Quality Division in response to a notice of violation issued to Sun Vista Development Group and Gannaway Builders on Nov. 18, 2005.
Further, according to the indictment, from May 25, 2005 to Nov. 30, 2006, the defendants directed renovation work at Shore Club Pasadena without removing the asbestos-containing ceiling material prior to activity that disturbed the material. The renovation work that caused improper disturbances to the asbestos-containing material occurred without the presence of a properly trained on-site representative.
All four defendants are charged with conspiracy to violate the Clean Air Act and to make false statements. The indictment additionally charges Loder and Spencer with five counts of violating the Clean Air Act and one count of making a false statement. The indictment charges Guy Gannaway with eight counts of violating the Clean Air Act and two counts of making a false statement. The indictment further charges Keith McConnell with eight counts of violating the Clean Air Act and one count of making a false statement.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
The maximum penalty for each count of the indictment includes five years in prison and a $250,000 fine.
This case was investigated by the Environmental Protection Agency Criminal Investigation Division with assistance from the Florida Department of Law Enforcement. It is being prosecuted by the U.S. Attorney’s Office for the Middle District of Florida and the Justice Department’s Environmental Crimes Section.
John Loder, 43, of Redington Beach, Fla.; Stephen J. Spencer, 48, of Clearwater, Fla.; Guy Gannaway, 53, of Safety Harbor, Fla.; and Keith McConnell, a/k/a "Animal," 54, of Largo, Fla., were charged in the indictment.
According to the indictment, John Loder and Stephen J. Spencer were members of an entity called Sun Vista Development Group LLC, which was created to carry out the day-to-day operations and administrative work associated with the purchase, renovation and resale of large-scale condominium developments. Two of these developments were Barefoot Beach Resort, formerly known as Indian Pass Apartments, in Indian Shores, Fla., and Shore Club Pasadena, formerly known as Pasadena Apartments, in Pasadena, Fla. Guy Gannaway was the owner of Gannaway Builders Inc., a construction company hired as the general contractor for both Barefoot Beach Resort and Shore Club Pasadena. Keith McConnell was a supervisory employee of Gannaway Builders Inc. Units at these developments had ceilings coated with a "popcorn"-texture that contained greater than 1 percent asbestos.
According to the indictment, from November 2004 to Dec. 10, 2004, the defendants directed renovation work to begin at Barefoot Beach Resort without first conducting an asbestos survey for the building. From Dec. 10, 2004 until April 2005, the defendants discussed the asbestos at Barefoot Beach Resort and rejected at least one bid for complete removal of the asbestos-containing ceiling material from Barefoot Beach Resort. They decided, instead, to cover the existing ceilings with a new layer of drywall using Gannaway Builders employees and subcontractors to install the new drywall. The indictment alleges that the work practice standards for asbestos, developed as part of the National Emission Standards for Hazardous Air Pollutants, were not followed while the renovation was performed at Barefoot Beach Resort between Nov. 15, 2004, and Sept. 15, 2005. In some units, the asbestos-containing popcorn ceiling material was completely removed following a roof leak on or about June 24, 2005, also without following the asbestos work practice standards. Additionally, the indictment alleges that the defendants made and caused others to make false statements to the Pinellas County Air Quality Division in response to a notice of violation issued to Sun Vista Development Group and Gannaway Builders on Nov. 18, 2005.
Further, according to the indictment, from May 25, 2005 to Nov. 30, 2006, the defendants directed renovation work at Shore Club Pasadena without removing the asbestos-containing ceiling material prior to activity that disturbed the material. The renovation work that caused improper disturbances to the asbestos-containing material occurred without the presence of a properly trained on-site representative.
All four defendants are charged with conspiracy to violate the Clean Air Act and to make false statements. The indictment additionally charges Loder and Spencer with five counts of violating the Clean Air Act and one count of making a false statement. The indictment charges Guy Gannaway with eight counts of violating the Clean Air Act and two counts of making a false statement. The indictment further charges Keith McConnell with eight counts of violating the Clean Air Act and one count of making a false statement.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
The maximum penalty for each count of the indictment includes five years in prison and a $250,000 fine.
This case was investigated by the Environmental Protection Agency Criminal Investigation Division with assistance from the Florida Department of Law Enforcement. It is being prosecuted by the U.S. Attorney’s Office for the Middle District of Florida and the Justice Department’s Environmental Crimes Section.
Washington County Cocaine Dealer Sentenced to 10 Years in Prison
February 22, 2010 - Acting United States Attorney Robert S. Cessar announced today, February 19, 2010, that Jerome Barnes a/k/a Bubba, a resident of Washington, Pennsylvania, has been sentenced in federal court in Pittsburgh to 10 years in prison followed by five years supervised release on his conviction of violating federal narcotics laws.
United States District Judge Nora Barry Fischer imposed the sentence on Barnes, age 25.
According to information presented to the court by Assistant United States Attorney Charles A. Eberle, from in or around 2003 and continuing thereafter to in or around August 2008, Barnes conspired with others to distribute and possess with the intent to distribute 10 kilograms of cocaine, and 50 grams or more of crack cocaine.
Eberle explained to the Court that the investigation involved controlled drug purchases, the execution of federal search warrants, money seizures, and cocaine/crack cocaine seizures. The investigation established that Barnes obtained kilogram quantities of cocaine on a regular basis from out‑of‑state sources of supply, and then distributed the cocaine (some of which Barnes and his coconspirators subsequently cooked into crack cocaine) in the Washington, Pennsylvania, area. The investigation resulted in the seizure of more than $71,000 in cash, quantities of cocaine and crack cocaine, two firearms, and a bullet‑proof vest.
Additionally, Eberle advised the Court that on or about April 19, 2007, through on or about April 21, 2007, Barnes distributed and possessed with the intent to distribute 83 grams or more of crack cocaine.
Mr. Cessar commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Barnes.
United States District Judge Nora Barry Fischer imposed the sentence on Barnes, age 25.
According to information presented to the court by Assistant United States Attorney Charles A. Eberle, from in or around 2003 and continuing thereafter to in or around August 2008, Barnes conspired with others to distribute and possess with the intent to distribute 10 kilograms of cocaine, and 50 grams or more of crack cocaine.
Eberle explained to the Court that the investigation involved controlled drug purchases, the execution of federal search warrants, money seizures, and cocaine/crack cocaine seizures. The investigation established that Barnes obtained kilogram quantities of cocaine on a regular basis from out‑of‑state sources of supply, and then distributed the cocaine (some of which Barnes and his coconspirators subsequently cooked into crack cocaine) in the Washington, Pennsylvania, area. The investigation resulted in the seizure of more than $71,000 in cash, quantities of cocaine and crack cocaine, two firearms, and a bullet‑proof vest.
Additionally, Eberle advised the Court that on or about April 19, 2007, through on or about April 21, 2007, Barnes distributed and possessed with the intent to distribute 83 grams or more of crack cocaine.
Mr. Cessar commended the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Barnes.
Pittsburgh Man Pleads Guilty to Conspiring to Distribute Cocaine
February 22, 2010 - Acting United States Attorney Robert S. Cessar announced today, February 19, 2010, that Richard Bruno Desimone, a resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court in Pittsburgh to a violation of the federal drug laws.
Desimone, age 36, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, Assistant United States Attorney Troy Rivetti advised the court that from in or around October 2007, and continuing until in or around September 2008, in the Western District of Pennsylvania and elsewhere, Desimone conspired with others to distribute and possess with the intent to distribute more than 100 grams but less than 200 grams of cocaine, a Schedule II controlled substance.
Judge McVerry scheduled sentencing for June 11, 2010, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Richard Desimone. Other agencies participating in the investigation include the Pennsylvania State Police, the District Attorney's Office ‑ Violent Crimes/Firearms Task Force, the Allegheny County Sheriff's Department, the Allegheny County Police Department, the Allegheny County Adult Probation Office, the Internal Revenue Service Criminal Investigation, the United States Marshals Service, the West Mifflin Police Department, the Coraopolis Police Department, the Jefferson Hills Police Department, the Mount Lebanon Police Department, and the Pennsylvania State Parole Office.
Desimone, age 36, pleaded guilty to one count before United States District Judge Terrence F. McVerry.
In connection with the guilty plea, Assistant United States Attorney Troy Rivetti advised the court that from in or around October 2007, and continuing until in or around September 2008, in the Western District of Pennsylvania and elsewhere, Desimone conspired with others to distribute and possess with the intent to distribute more than 100 grams but less than 200 grams of cocaine, a Schedule II controlled substance.
Judge McVerry scheduled sentencing for June 11, 2010, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
The Drug Enforcement Administration, the Federal Bureau of Investigation, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Richard Desimone. Other agencies participating in the investigation include the Pennsylvania State Police, the District Attorney's Office ‑ Violent Crimes/Firearms Task Force, the Allegheny County Sheriff's Department, the Allegheny County Police Department, the Allegheny County Adult Probation Office, the Internal Revenue Service Criminal Investigation, the United States Marshals Service, the West Mifflin Police Department, the Coraopolis Police Department, the Jefferson Hills Police Department, the Mount Lebanon Police Department, and the Pennsylvania State Parole Office.
Former Vice President of Boeing Helicopters Credit Union Sentenced for Loan Fraud Scheme
February 22, 2010 - PHILADELPHIA—Anthony Forte, 43, of Glen Mills, PA, was sentenced today to 28 months in prison and ordered to pay $1,259,032.14 in restitution for conspiracy, loan fraud, and bank bribery. Forte’s brother, David, 39, of Prospect Park, PA, was sentenced to one day in prison for the same charges and was ordered to pay restitution in the amount of $178,445.70. Both men pleaded guilty in November 2009. In reaching a sentence below the guidelines, U.S. District Court Judge Berle M. Schiller took into account David Forte’s medical condition, specifically the fact that he has been diagnosed with a malignant brain tumor.
Anthony Forte was an Executive Vice President and Director of Marketing at the Boeing Helicopters Credit Union (“BHCU”), in Ridley Park, Pennsylvania. Anthony Forte pleaded guilty to using his position at BHCU to obtain cash kickbacks from unqualified loan applicants in exchange for approving $20,000 loans from BHCU. Forte received a kickback of at least five percent of the loan amount for each loan. Forte also admitted to instructing loan processors at BHCU to approve the loans despite fraudulent documentation submitted to support the loan. Many of the loan applications contained false statements that made it appear that the applicant was qualified for the loan when the applicant was either not qualified or was not even eligible to be a member of the credit union.
To perpetuate the kickback scheme, Forte recruited his brother, David, and several others, to find applicants to apply for loans and pay kickbacks to Anthony Forte. David Forte, who did not work for BHCU, also received hundreds of dollars in kickbacks. The scheme netted more than $100,000 in kickbacks for the Forte brothers and the middlemen. The unqualified loan applicants obtained more than $2.2 million in fraudulent loans from the credit union as part of the scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Sarah Grieb and Michelle Rotella.
Anthony Forte was an Executive Vice President and Director of Marketing at the Boeing Helicopters Credit Union (“BHCU”), in Ridley Park, Pennsylvania. Anthony Forte pleaded guilty to using his position at BHCU to obtain cash kickbacks from unqualified loan applicants in exchange for approving $20,000 loans from BHCU. Forte received a kickback of at least five percent of the loan amount for each loan. Forte also admitted to instructing loan processors at BHCU to approve the loans despite fraudulent documentation submitted to support the loan. Many of the loan applications contained false statements that made it appear that the applicant was qualified for the loan when the applicant was either not qualified or was not even eligible to be a member of the credit union.
To perpetuate the kickback scheme, Forte recruited his brother, David, and several others, to find applicants to apply for loans and pay kickbacks to Anthony Forte. David Forte, who did not work for BHCU, also received hundreds of dollars in kickbacks. The scheme netted more than $100,000 in kickbacks for the Forte brothers and the middlemen. The unqualified loan applicants obtained more than $2.2 million in fraudulent loans from the credit union as part of the scheme.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Sarah Grieb and Michelle Rotella.
Former Accounts Supervisor of Area Chemical Company Sentenced to Prison for Embezzling Millions of Dollars
February 22, 2010 - HOUSTON—A former accounting supervisor for a Houston area chemicals company has been sentenced to prison for embezzling more than $3.6 million from her employer, United States Attorney José Angel Moreno announced today.
Diana Simon, 50, of Sugar Land, Texas, was sentenced this morning to 60 months in federal prison without parole and ordered to pay her former employer, Kaneka Texas, $3,621,220 in restitution. United States District Judge Kenneth M. Hoyt handed down the sentence at a hearing held this morning. Simon was convicted of wire fraud in September 2009 after pleading guilty to the offense.
In September 2009, Simon admitted that while employed as an accounting supervisor for Kaneka Texas, a Houston area chemicals company located in Pasadena, Texas, she was responsible for processing invoices submitted by Kaneka’s vendors for payment. She used her position and the process to create and implement a false and fraudulent scheme to cause $3,621,220 from Kaneka’s bank account to be wired to her own bank account at a Houston area bank from June 2006 through February 2008. Simon used the embezzled money to buy a luxury home, luxury vehicles and jewelry in addition to financing multiple gambling trips to Louisiana and Las Vegas.
Following the completion of her prison term, the court has further ordered Simon to serve a three-year-term of supervised release. During those three years, Simon will be prohibited from using any gambling devices or traveling to any casinos and from using any credit card without the express permission of the U.S. Probation Department. She must also submit to drug testing, attend a mental health treatment program, and will be prohibited from being employed in a supervisory position.
The investigation leading to charges was conducted by the FBI and initiated in 2008 following Kaneka’s discovery of the embezzlement.
Simon has been permitted to remain on bond pending the issuance of an order to surrender to a Bureau of Prisons facility to be designated in the near future where she will serve her prison term.
Assistant U.S. Attorney Vernon Lewis is prosecuting the case.
Former Bank Vice President Pleads Guilty to Hiding Facts in Bank Audit
Bank of Clark County Closed in January 2009 After FDIC Examination
February 22, 2010 - DAVID S. KENNELLY, 49, of Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to Scheme to Conceal Material Facts in connection with an audit of the former Bank of Clark County in the fall of 2008. The bank was shut down by the Federal Deposit Insurance Corporation in January 2009. Under the terms of his plea agreement, KENNELLY is prohibited from working for a financial institution regulated by the FDIC or the Federal Credit Union Act, without written approval of the agency. When sentenced on May 14, 2010, by U.S. District Judge Robert J. Bryan KENNELLY faces up to five years in prison, three years of supervised release, and a $250,000 fine.
According to the plea agreement filed today, KENNELLY attempted to hide property appraisal records that called into question the solvency of the Bank of Clark County. In 2004, KENNELLY was hired as the Vice President and Chief Lending Officer for the bank. During the course of 2008, KENNELLY and bank leaders became concerned that the bank had made loans to various development projects that now had a much lower appraised value. As a federal examination to check the soundness and safety of the bank approached, KENNELLY identified various appraisals that he did not want bank examiners to see. KENNELLY instructed staff to exclude the appraisals from both the bank’s loan files and its computerized record system. After receiving these instructions, one of the bank employees hid recently received appraisals under his desk. The appraisals revealed that the collateral the bank had taken for the loans had depreciated in value by millions of dollars.
During the examination in November 2008, KENNELLY falsely represented that all available appraisals were in the computerized system. Based on the appraisals the examiners were able to review, the bank was instructed to increase it’s loan loss reserved by more than $3 million. Just prior to the termination of the examination, investigators learned of the hidden appraisals on some 15 different projects. In response, KENNELLY first tried to advance the false claim that the appraisals had been overlooked because of a heavy work load. He unsuccessfully attempted to get a bank employee to promote this story. After the examiners saw the additional appraisals, they determined the bank needed an additional $16.7 million of capital for loan reserves. On January 16, 2009, the Washington State Department of Financial Institutions declared the Bank of Clark County insolvent and appointed the FDIC as Receiver.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and the FBI.
The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Arlen Storm.
February 22, 2010 - DAVID S. KENNELLY, 49, of Vancouver, Washington, pleaded guilty today in U.S. District Court in Tacoma to Scheme to Conceal Material Facts in connection with an audit of the former Bank of Clark County in the fall of 2008. The bank was shut down by the Federal Deposit Insurance Corporation in January 2009. Under the terms of his plea agreement, KENNELLY is prohibited from working for a financial institution regulated by the FDIC or the Federal Credit Union Act, without written approval of the agency. When sentenced on May 14, 2010, by U.S. District Judge Robert J. Bryan KENNELLY faces up to five years in prison, three years of supervised release, and a $250,000 fine.
According to the plea agreement filed today, KENNELLY attempted to hide property appraisal records that called into question the solvency of the Bank of Clark County. In 2004, KENNELLY was hired as the Vice President and Chief Lending Officer for the bank. During the course of 2008, KENNELLY and bank leaders became concerned that the bank had made loans to various development projects that now had a much lower appraised value. As a federal examination to check the soundness and safety of the bank approached, KENNELLY identified various appraisals that he did not want bank examiners to see. KENNELLY instructed staff to exclude the appraisals from both the bank’s loan files and its computerized record system. After receiving these instructions, one of the bank employees hid recently received appraisals under his desk. The appraisals revealed that the collateral the bank had taken for the loans had depreciated in value by millions of dollars.
During the examination in November 2008, KENNELLY falsely represented that all available appraisals were in the computerized system. Based on the appraisals the examiners were able to review, the bank was instructed to increase it’s loan loss reserved by more than $3 million. Just prior to the termination of the examination, investigators learned of the hidden appraisals on some 15 different projects. In response, KENNELLY first tried to advance the false claim that the appraisals had been overlooked because of a heavy work load. He unsuccessfully attempted to get a bank employee to promote this story. After the examiners saw the additional appraisals, they determined the bank needed an additional $16.7 million of capital for loan reserves. On January 16, 2009, the Washington State Department of Financial Institutions declared the Bank of Clark County insolvent and appointed the FDIC as Receiver.
The case was investigated by the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) and the FBI.
The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Arlen Storm.
DNA Backog
Defining Backlogs
The definition of a “backlog” varies. There is no industrywide agreement on what a backlogged forensic case is.
NIJ defines a backlogged case as one that has not been tested for 30 days after it was submitted to the laboratory. Many crime laboratories, however, refer to any cases in the laboratory for which the final report has not been issued as a backlogged case. For counting purposes, they consider any current case as backlogged.
Counting the Backlog
The number of backlogged cases in crime laboratories changes daily. New DNA evidence is submitted, and older DNA cases are closed every day. Because the number is constantly changing, estimates of the number of backlogged cases nationwide is always fluid. The most current nationwide assessment of the DNA casework sample backlog was provided to NIJ by state and local units of government who applied for funding under the FY 2009 Forensic DNA Backlog Reduction Program. The data they provided points to a national backlog of 70,693 DNA cases as of January 1, 2008. By contrast, a study by the Bureau of Justice Statistics pointed to a nationwide backlog of 24,030 DNA cases on January 1, 2005.
Reducing the Backlog
Federal funding has made significant progress toward clearing old cases from crime laboratories. Today, backlogs are of relatively new cases, but they continue to be a problem in many laboratories because demand for DNA testing services is increasing faster than the capacity of laboratories to process cases.
Investigating officers are more aware than ever of the power of DNA technology, and they are making more requests for testing. In addition, there are more requests for DNA testing in older “cold cases,” in older post-conviction cases (cases closed before DNA technology was available),and in property crime cases.
Read On
http://www.ojp.usdoj.gov/nij/topics/forensics/lab-operations/evidence-backlogs/welcome.htm
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