FROM: U.S. DEPARTMENT OF JUSTICE
Attorney General Eric Holder Speaks at the White House Gun Safety Event
Washington, D.C. ~ Tuesday, April 9, 2013
Thank you, Sheriff High – and thank you all for being here. It’s a pleasure to join Vice President Biden in welcoming this distinguished group to the White House. And it’s a privilege to stand with so many dedicated law enforcement leaders as we advance our national conversation about how we can – and why we must – take action to combat the gun violence that devastates too many lives and communities every day.
I’m grateful for your willingness to lend your voices – and your diverse perspectives – to this critical discussion. I appreciate the work you’re leading – through organizations like the National Law Enforcement Partnership to Prevent Gun Violence – in big cities and small towns across America. And I thank you not only for your advocacy, but for your service – every day – on the front lines of our struggle against gun-, gang-, and drug-fueled violence.
Last year’s horrific events in Aurora, Colorado; in Oak Creek, Wisconsin; and in Newtown, Connecticut – were shocking reminders of the gun violence that afflicts communities throughout the nation. On a daily basis, these unspeakable tragedies are compounded by countless individual tragedies that take place on our cities’ streets; that pass too often unnoticed; and that too frequently take the lives of our most vulnerable citizens: our children.
For me – and for my colleagues across the Justice Department – responding to this senseless violence, and preventing future tragedies, constitutes a top priority. That’s why, earlier this year, I was honored to join with Vice President Biden and a number of my fellow Cabinet members to assemble a comprehensive plan for reducing gun violence and making our neighborhoods and schools more secure. Contrary to what a few have said, this plan – which President Obama announced in January – is consistent with the Second Amendment, and would not infringe – in any way – on the rights of responsible, law-abiding gun owners. This plan includes a range of legislative proposals that we’ve called upon Congress to pass without delay – along with a series of 23 executive actions, many of which the Justice Department has made significant progress in implementing.
For instance, the Department recently announced that it will invest more than $20 million this fiscal year to strengthen the firearm background check system that Sheriff High just mentioned – by improving states’ abilities to share information with the NICS. This grant funding is intended to enhance reporting of prohibiting mental health information, felony convictions, misdemeanor convictions of domestic violence, and active felony and misdemeanor warrants. In addition, just last month, I issued guidance to all federal agencies that will require federal law enforcement to trace all guns recovered in investigations. And the Justice Department is continuing to review gun safety technology innovations – and is in the process of undertaking a review of all prohibitors.
Beyond this work, I’m pleased that the Senate will soon consider a number of gun violence reduction proposals. This afternoon, I’m proud to join the Vice President in urging both houses of Congress to give each and every one of these measures the timely, individual consideration they deserve. Let me say it more clearly than that: each of these measures deserves a vote. The American people deserve these votes in spite of the pressure that the special interests and lobbyists are exerting in back rooms on our elected representatives. I’m confident that, with the support of countless ordinary citizens – and the expertise and assistance of the leaders in this room – we can take the common-sense steps we need to prevent gun violence and keep deadly weapons from falling into the wrong hands. I recognize, as you do, that there’s no single prescription for addressing these challenges and confronting their underlying causes. But I also know that those whose lives have been impacted by gun violence – the victims and the survivors – are depending on us.
In December, just days after the tragedy at Sandy Hook Elementary School, I traveled to Newtown. In what were without question the worst moments of my career, I walked the halls where these unspeakable acts took place. I saw the dried blood. I saw the horrific crime scene photos. I met with the first responders and crime scene search officers who arrived at the school just after the first calls came in. And when these brave men and women asked me, with broken hearts and tear-streamed faces, to do whatever I could to prevent such a thing from happening again – I told them I would not rest until we have secured the common-sense changes our nation needs.
I promised them, as I have promised survivors from Oak Creek, to Aurora, to Tucson, that I would never forget. I know you all will not forget. And this afternoon, I ask you to help us keep our promise to these communities and to the American people – and pursue reforms to improve our nation’s security, protect the men and women who bravely serve in law enforcement, and make safe our children’s futures.
At this time, it is my privilege to introduce a remarkable leader who has been at the forefront of this Administration’s efforts to do just that; a public servant of extraordinary passion: the Vice President of the United States, Joe Biden.
Showing posts with label U.S. DEPARTMENT OF JUSTICE. Show all posts
Showing posts with label U.S. DEPARTMENT OF JUSTICE. Show all posts
Sunday, April 14, 2013
Saturday, March 2, 2013
PRESIDENTIAL PARDONS
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, March 1, 2013
President Barack Obama Grants Pardons
Today President Barack Obama granted pardons to the following seventeen individuals:
Robert Leroy Bebee – Rockville, Md.
Offense: Misprision of a felony, 18 U.S.C. § 4.
Sentence: Two years probation.
James Anthony Bordinaro – Gloucester, Mass.
Offenses: Conspiracy to restrain, suppress, and eliminate competition in violation of the Sherman Act, 15 U.S.C. § 1; conspiracy to submit false statements, 18 U.S.C. § 371.
Sentence: 12 months imprisonment, three years supervised release and a $55,000 fine.
Kelli Elisabeth Collins – Harrison, Ark.
Offense: Aiding and abetting a wire fraud, 18 U.S.C. §§ 1343, 2.
Sentence: Five years probation.
Edwin Hardy Futch Jr. – Pembroke, Ga.
Offense: Theft from an interstate shipment, 18 U.S.C. §§ 659, 2.
Sentence: Five years probation, $2,399.72 restitution.
Cindy Marie Griffith – Moyock, N.C.
Offense: Distribution of satellite cable television decryption devices, 47 U.S.C.
§ 605(e)(4), 18 U.S.C. § 2.
Sentence: Two years probation with 100 hours of community service.
Roy Eugene Grimes Sr. – Athens, Tenn.
Offenses: Falsely altering a United States postal money order, 18 U.S.C. § 500; passing,
uttering, and publishing a forged and altered money order with intent to defraud,
18 U.S.C. § 500.
Sentence: 18 months probation.
Jon Christopher Kozeliski – Decatur, Ill.
Offense: Conspiracy to traffic counterfeit goods, 18 U.S.C. §§ 371, 2320.
Sentence: One year of probation with six months of home confinement, $10,000 fine.
· Jimmy Ray Mattison – Anderson, S.C.
Offenses: Conspiracy to transport and cause the transportation of altered securities in
interstate commerce, 18 U.S.C. §§ 371, 2314; transporting and causing the transportation
of altered securities in interstate commerce, 18 U.S.C. §§ 2314, 2.
Sentence: Three years probation.
An Na Peng – Honolulu
Offense: Conspiracy to defraud the Immigration and Naturalization Service,
18 U.S.C. § 371.
Sentence: Two years probation, $2,000 fine.
Michael John Petri – Montrose, S.D.
Offense: Conspiracy to possess with intent to distribute and distribution of a controlled
substance (cocaine), 21 U.S.C. §§ 841(a), 846.
Sentence: Five years imprisonment, three years supervised release.
Karen Alicia Ragee – Decatur, Ill.
Offense: Conspiracy to traffic counterfeit goods, 18 U.S.C. §§ 371, 2320.
Sentence: One year of probation with six months of home confinement, $2,500 fine.
Jamari Salleh – Alexandria, Va.
Offense: False claims upon and against the United States, 18 U.S.C. §§ 287, 2.
Sentence: Four years probation, $5,000 fine, $5,900 restitution.
Alfor Sharkey – Omaha, Neb.
Offense: Unauthorized acquisition of food stamps, 7 U.S.C. § 2024(b)(1).
Sentence: Three years probation with 100 hours of community service, $2,750 restitution.
Donald Barrie Simon Jr. – Chattanooga, Tenn.
Offense: Aiding and abetting in the theft of an interstate shipment, 18 U.S.C. §§ 659, 2.
Sentence: Two years imprisonment, three years probation.
Lynn Marie Stanek – Tualatin, Ore.
Offense: Unlawful use of a communication facility to distribute cocaine,
21 U.S.C. § 843(b).
Sentence: Six months in jail, five years probation conditioned on residence in a
community treatment center for a period not to exceed one year.
Larry Wayne Thornton – Forsyth, Ga.
Offense: Possession of an unregistered firearm, 26 U.S.C. §§ 5861(d), 5871; possession
of a firearm without a serial number, 26 U.S.C. §§ 5861(i), 5871.
Sentence: Four years probation.
Donna Kaye Wright – Friendship, Tenn.
Offense: Embezzlement and misapplication of bank funds, 18 U.S.C. § 656.
Sentence: 54 days imprisonment, three years probation conditioned on performance of six hours of community service per week.
Friday, March 1, 2013
President Barack Obama Grants Pardons
Today President Barack Obama granted pardons to the following seventeen individuals:
Offense: Misprision of a felony, 18 U.S.C. § 4.
Sentence: Two years probation.
Offenses: Conspiracy to restrain, suppress, and eliminate competition in violation of the Sherman Act, 15 U.S.C. § 1; conspiracy to submit false statements, 18 U.S.C. § 371.
Sentence: 12 months imprisonment, three years supervised release and a $55,000 fine.
Offense: Aiding and abetting a wire fraud, 18 U.S.C. §§ 1343, 2.
Sentence: Five years probation.
Offense: Theft from an interstate shipment, 18 U.S.C. §§ 659, 2.
Sentence: Five years probation, $2,399.72 restitution.
Offense: Distribution of satellite cable television decryption devices, 47 U.S.C.
§ 605(e)(4), 18 U.S.C. § 2.
Sentence: Two years probation with 100 hours of community service.
Offenses: Falsely altering a United States postal money order, 18 U.S.C. § 500; passing,
uttering, and publishing a forged and altered money order with intent to defraud,
18 U.S.C. § 500.
Sentence: 18 months probation.
Offense: Conspiracy to traffic counterfeit goods, 18 U.S.C. §§ 371, 2320.
Sentence: One year of probation with six months of home confinement, $10,000 fine.
· Jimmy Ray Mattison – Anderson, S.C.
Offenses: Conspiracy to transport and cause the transportation of altered securities in
interstate commerce, 18 U.S.C. §§ 371, 2314; transporting and causing the transportation
of altered securities in interstate commerce, 18 U.S.C. §§ 2314, 2.
Sentence: Three years probation.
Offense: Conspiracy to defraud the Immigration and Naturalization Service,
18 U.S.C. § 371.
Sentence: Two years probation, $2,000 fine.
Offense: Conspiracy to possess with intent to distribute and distribution of a controlled
substance (cocaine), 21 U.S.C. §§ 841(a), 846.
Sentence: Five years imprisonment, three years supervised release.
Offense: Conspiracy to traffic counterfeit goods, 18 U.S.C. §§ 371, 2320.
Sentence: One year of probation with six months of home confinement, $2,500 fine.
Offense: False claims upon and against the United States, 18 U.S.C. §§ 287, 2.
Sentence: Four years probation, $5,000 fine, $5,900 restitution.
Offense: Unauthorized acquisition of food stamps, 7 U.S.C. § 2024(b)(1).
Sentence: Three years probation with 100 hours of community service, $2,750 restitution.
Offense: Aiding and abetting in the theft of an interstate shipment, 18 U.S.C. §§ 659, 2.
Sentence: Two years imprisonment, three years probation.
Offense: Unlawful use of a communication facility to distribute cocaine,
21 U.S.C. § 843(b).
Sentence: Six months in jail, five years probation conditioned on residence in a
community treatment center for a period not to exceed one year.
Offense: Possession of an unregistered firearm, 26 U.S.C. §§ 5861(d), 5871; possession
of a firearm without a serial number, 26 U.S.C. §§ 5861(i), 5871.
Sentence: Four years probation.
Offense: Embezzlement and misapplication of bank funds, 18 U.S.C. § 656.
Sentence: 54 days imprisonment, three years probation conditioned on performance of six hours of community service per week.
Wednesday, January 16, 2013
SUIT SETTLED AGAINST INDIVIDUAL FOR INTERFERENCE WITH REPRODUCTIVE HEALTH CARE RIGHTS
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, January 14, 2013
Justice Department Settles Lawsuit Alleging Interference with Persons Exercising
Right to Seek or Provide Reproductive Health Care
WASHINGTON – The Department of Justice today settled a civil complaint against Richard A. Retta, of Rockville, Md, in the U.S. District Court for the District of Columbia, for violations of the Freedom of Access to Clinic Entrances (FACE) Act. The settlement permanently enjoins Retta from going inside the gated area in front of the entrance to the Planned Parenthood of Metropolitan Washington facility (PPMW) in Washington, D.C., and, during certain hours, from going within an additional 18.5 feet by six feet "buffer zone" directly outside the PPMW gate. Retta is further enjoined from violating, or directing or instructing others to violate, the FACE Act.
The complaint filed by the United States alleged that, on Jan. 8, 2011, inside the gated area in front of PPMW, Retta physically obstructed a patient attempting to enter PPMW and interfered with the rights of two volunteer escorts who were assisting the patient. The FACE Act prohibits the physical obstruction of any person providing or obtaining reproductive health services with the intent to intimidate or interfere with that person.
Early in the case, the court rejected the defendant’s motion to dismiss the lawsuit and held that, under FACE, the complaint need only allege that the defendant believed the individuals to be obtaining or providing reproductive health services, not that they were actually seeking or providing such services. This important ruling protects patient privacy, patients’ companions and volunteer escorts.
"While people have a First Amendment right to communicate their views and offer information, they do not have the right to prevent access to health care facilities," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Individuals who seek to obtain or provide reproductive health services should be able to do so without physical interference by those who disagree with them."
This civil action was filed by the Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorneys Aaron Zisser and Michelle Leung.
Monday, January 14, 2013
Justice Department Settles Lawsuit Alleging Interference with Persons Exercising
Right to Seek or Provide Reproductive Health Care
WASHINGTON – The Department of Justice today settled a civil complaint against Richard A. Retta, of Rockville, Md, in the U.S. District Court for the District of Columbia, for violations of the Freedom of Access to Clinic Entrances (FACE) Act. The settlement permanently enjoins Retta from going inside the gated area in front of the entrance to the Planned Parenthood of Metropolitan Washington facility (PPMW) in Washington, D.C., and, during certain hours, from going within an additional 18.5 feet by six feet "buffer zone" directly outside the PPMW gate. Retta is further enjoined from violating, or directing or instructing others to violate, the FACE Act.
The complaint filed by the United States alleged that, on Jan. 8, 2011, inside the gated area in front of PPMW, Retta physically obstructed a patient attempting to enter PPMW and interfered with the rights of two volunteer escorts who were assisting the patient. The FACE Act prohibits the physical obstruction of any person providing or obtaining reproductive health services with the intent to intimidate or interfere with that person.
Early in the case, the court rejected the defendant’s motion to dismiss the lawsuit and held that, under FACE, the complaint need only allege that the defendant believed the individuals to be obtaining or providing reproductive health services, not that they were actually seeking or providing such services. This important ruling protects patient privacy, patients’ companions and volunteer escorts.
"While people have a First Amendment right to communicate their views and offer information, they do not have the right to prevent access to health care facilities," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Individuals who seek to obtain or provide reproductive health services should be able to do so without physical interference by those who disagree with them."
This civil action was filed by the Civil Rights Division Special Litigation Section Deputy Chief Julie Abbate and Trial Attorneys Aaron Zisser and Michelle Leung.
Tuesday, January 15, 2013
THREE MEN CONVICTED FOR PROVIDING SECURITY FOR DRUG TRANSACTIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, January 10, 2013
Three Men Convicted in Puerto Rico in Final Operation Guard Shack Prosecution
131 Defendants in This Case Have Pleaded Guilty or Been Convicted After Trial
WASHINGTON – Three men, including two former officers with the Police of Puerto Rico, were convicted today by a federal jury in San Juan, Puerto Rico, for their roles in providing security for drug transactions, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Former Police of Puerto Rico Officers Daviel Salinas Acevedo, 29, of Bayamon, Puerto Rico, and Miguel Santiago Cordero, 30, of Lares, Puerto Rico, were each convicted of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine and one count of possession of a firearm in furtherance of a drug transaction.
Wendell Rivera Ruperto, 38, of Las Marias, Puerto Rico, was convicted of one count each of conspiracy to possess with intent to distribute more than five kilograms of cocaine, attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. Rivera Ruperto had been convicted previously of 15 other counts arising from his participation in other, related drug transactions.
Salinas Acevedo, Santiago Cordero and Rivera Ruperto were charged in a superseding indictment returned in the District of Puerto Rico on Sept. 30, 2010, in addition to 87 other law enforcement officers and 43 other individuals, as part of the FBI undercover operation known as "Operation Guard Shack." To date, 131defendants have pleaded guilty or been convicted, and 119 defendants have been sentenced. Today’s convictions were the last of the Guard Shack defendants to stand trial.
According to the evidence presented in court, Salinas Acevedo, Rivera Ruperto and Santiago Cordero each provided security for what they believed were illegal cocaine deals that occurred on March 24, April 9 and July 8, 2010, respectively. In fact, each purported drug transaction was one of dozens of simulated transactions conducted as part of the undercover FBI operation. The three men performed armed security for the multi-kilogram cocaine deals by frisking the buyer (a confidential informant working for the FBI), standing guard as the kilos were counted, and inspecting and escorting the buyer in and out of the transaction. In return for the security they provided, Salinas Acevedo, Santiago Cordero and Rivera Ruperto each received a cash payment of $2,000.
In return for the security they provided, Salinas Acevedo, Santiago Cordero and Rivera Ruperto each received a cash payment of $2,000. The money was never returned by any of the defendants, and none of the defendants ever reported the transactions.
Sentencing in the case will be scheduled by U.S. District Judge Carmen Consuelo Cerezo for later this year. At sentencing, Salinas Acevedo and Santiago Cordero face mandatory minimum sentences of 15 years in prison and a maximum sentence of life in prison. Rivera Ruperto is presently serving a sentence of 126 years and 10 months in prison for his prior convictions and faces a mandatory minimum sentence of 35 years in prison and a maximum penalty of life in prison for his convictions today.
The case was prosecuted by Trial Attorneys Anthony J. Phillips and Edward J. Loya Jr., of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Puerto Rico Department of Justice also provided assistance in this case. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Thursday, January 10, 2013
Three Men Convicted in Puerto Rico in Final Operation Guard Shack Prosecution
131 Defendants in This Case Have Pleaded Guilty or Been Convicted After Trial
WASHINGTON – Three men, including two former officers with the Police of Puerto Rico, were convicted today by a federal jury in San Juan, Puerto Rico, for their roles in providing security for drug transactions, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Former Police of Puerto Rico Officers Daviel Salinas Acevedo, 29, of Bayamon, Puerto Rico, and Miguel Santiago Cordero, 30, of Lares, Puerto Rico, were each convicted of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine and one count of possession of a firearm in furtherance of a drug transaction.
Wendell Rivera Ruperto, 38, of Las Marias, Puerto Rico, was convicted of one count each of conspiracy to possess with intent to distribute more than five kilograms of cocaine, attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. Rivera Ruperto had been convicted previously of 15 other counts arising from his participation in other, related drug transactions.
Salinas Acevedo, Santiago Cordero and Rivera Ruperto were charged in a superseding indictment returned in the District of Puerto Rico on Sept. 30, 2010, in addition to 87 other law enforcement officers and 43 other individuals, as part of the FBI undercover operation known as "Operation Guard Shack." To date, 131defendants have pleaded guilty or been convicted, and 119 defendants have been sentenced. Today’s convictions were the last of the Guard Shack defendants to stand trial.
According to the evidence presented in court, Salinas Acevedo, Rivera Ruperto and Santiago Cordero each provided security for what they believed were illegal cocaine deals that occurred on March 24, April 9 and July 8, 2010, respectively. In fact, each purported drug transaction was one of dozens of simulated transactions conducted as part of the undercover FBI operation. The three men performed armed security for the multi-kilogram cocaine deals by frisking the buyer (a confidential informant working for the FBI), standing guard as the kilos were counted, and inspecting and escorting the buyer in and out of the transaction. In return for the security they provided, Salinas Acevedo, Santiago Cordero and Rivera Ruperto each received a cash payment of $2,000.
In return for the security they provided, Salinas Acevedo, Santiago Cordero and Rivera Ruperto each received a cash payment of $2,000. The money was never returned by any of the defendants, and none of the defendants ever reported the transactions.
Sentencing in the case will be scheduled by U.S. District Judge Carmen Consuelo Cerezo for later this year. At sentencing, Salinas Acevedo and Santiago Cordero face mandatory minimum sentences of 15 years in prison and a maximum sentence of life in prison. Rivera Ruperto is presently serving a sentence of 126 years and 10 months in prison for his prior convictions and faces a mandatory minimum sentence of 35 years in prison and a maximum penalty of life in prison for his convictions today.
The case was prosecuted by Trial Attorneys Anthony J. Phillips and Edward J. Loya Jr., of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Puerto Rico Department of Justice also provided assistance in this case. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Monday, January 14, 2013
BRIBING OFFICIALS LEADS TO GUILTY PLEA FOR TWO GEROGIA MEN
FROM: U.S. DEPARTMENT OF JUSTICE
Thursday, January 10, 2013 Georgia Men Plead Guilty to Bribing Official to Secure Government Contracts
Defendants Admit to Overcharging Defense Department More Than $900,000
WASHINGTON – Two men employed by a machine products vendor in Albany, Ga., have pleaded guilty to bribing a public official working for a military organization at the Marine Corps Logistics Base Albany (MCLB-Albany) to secure contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Thomas J. Cole Jr., 43, and Fredrick W. Simon, 55, both of Albany, each pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During their guilty pleas, Cole, the general manager of an Albany-based machine products vendor, and Simon, an employee responsible for processing sales orders, admitted to participating in a scheme to secure sales order contracts from the Maintenance Center Albany (MCA) at MCLB-Albany by subverting a competitive bid process. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Cole and Simon bribed a MCA purchase tech responsible for placing machine product orders. Cole and Simon admitted to participating in the scheme at the purchase tech’s suggestion, after Simon had spoken with the purchase tech about how his company could obtain business from the MCA. Cole and Simon admitted that, at the purchase tech’s request, they paid the purchase tech a bribe of at least $75 for each of the more than 1,000 sales orders MCA placed with their company. According to court documents, the purchase tech would transmit sales bids to Simon and then communicate privately to him exactly how much money the company should bid for each particular order. Cole and Simon admitted that these orders were extremely profitable, often times exceeding the fair market value of the machine products, sometimes by as much as 1,000 percent.
Cole and Simon further admitted that, at the purchase tech’s urging, in 2011 they began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. They also admitted that the purchase tech increased the bribe required for orders as the scheme progressed. Cole and Simon admitted to paying the purchase tech approximately $161,000 in bribes during the nearly two-year scheme. Cole admitted to personally receiving approximately $209,000 in proceeds from the scheme; Simon admitted to personally receiving approximately $74,500. Both admitted that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Cole and Simon each face a maximum penalty of 15 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of their plea agreements with the United States, Cole and Simon both agreed to forfeit the proceeds they received from the scheme, as well as to pay full restitution to the Department of Defense. Sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service.
Thursday, January 10, 2013 Georgia Men Plead Guilty to Bribing Official to Secure Government Contracts
Defendants Admit to Overcharging Defense Department More Than $900,000
WASHINGTON – Two men employed by a machine products vendor in Albany, Ga., have pleaded guilty to bribing a public official working for a military organization at the Marine Corps Logistics Base Albany (MCLB-Albany) to secure contracts for machine products, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
Thomas J. Cole Jr., 43, and Fredrick W. Simon, 55, both of Albany, each pleaded guilty before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During their guilty pleas, Cole, the general manager of an Albany-based machine products vendor, and Simon, an employee responsible for processing sales orders, admitted to participating in a scheme to secure sales order contracts from the Maintenance Center Albany (MCA) at MCLB-Albany by subverting a competitive bid process. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Cole and Simon bribed a MCA purchase tech responsible for placing machine product orders. Cole and Simon admitted to participating in the scheme at the purchase tech’s suggestion, after Simon had spoken with the purchase tech about how his company could obtain business from the MCA. Cole and Simon admitted that, at the purchase tech’s request, they paid the purchase tech a bribe of at least $75 for each of the more than 1,000 sales orders MCA placed with their company. According to court documents, the purchase tech would transmit sales bids to Simon and then communicate privately to him exactly how much money the company should bid for each particular order. Cole and Simon admitted that these orders were extremely profitable, often times exceeding the fair market value of the machine products, sometimes by as much as 1,000 percent.
Cole and Simon further admitted that, at the purchase tech’s urging, in 2011 they began routing some orders through a second company, owned by Cole, because the volume of orders MCA placed with the first company was so high. They also admitted that the purchase tech increased the bribe required for orders as the scheme progressed. Cole and Simon admitted to paying the purchase tech approximately $161,000 in bribes during the nearly two-year scheme. Cole admitted to personally receiving approximately $209,000 in proceeds from the scheme; Simon admitted to personally receiving approximately $74,500. Both admitted that the total loss to the Department of Defense from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
At sentencing, Cole and Simon each face a maximum penalty of 15 years in prison and a fine of not more than twice the pecuniary loss to the government. As part of their plea agreements with the United States, Cole and Simon both agreed to forfeit the proceeds they received from the scheme, as well as to pay full restitution to the Department of Defense. Sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service.
MAN PLEADS GUILTY FOR ROLE IN HUMAN SMUGGLING
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, January 4, 2013
Foreign National Pleads Guilty in Houston to Human Smuggling Charges
WASHINGTON – A foreign national pleaded guilty today to federal human smuggling charges for his role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Kenneth Magidson for the Southern District of Texas; and Special Agent in Charge Brian M. Moskowitz of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Houston
Fabiano Augusto Amorim, 28, a Brazilian national, pleaded guilty today at a hearing before U.S. District Judge Ewing Werlein Jr. in Houston, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
On June 6, 2012, Amorim was charged by indictment, along with four other individuals, with one count of conspiracy to smuggle undocumented migrants into the United States and six human smuggling counts related to five incidents in which Amorim helped smuggle undocumented migrants into the United States. Based on Amorim’s guilty plea, the government will dismiss the remaining human smuggling counts against him at sentencing.
At the plea hearing and in related court documents, Amorim admitted that between January 2011 and April 2012, he conspired with his co-defendants to bring undocumented migrants to the United States, and to encourage and induce undocumented migrants to come to the United States unlawfully. According to court documents, Amorim and his co-conspirators devised the scheme to profit financially.
In support of the conspiracy, Amorim and other conspirators recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Amorim and his co-conspirators used a network of alleged conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Amorim and his co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events, including five of the incidents described in the indictment, involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
At sentencing, which is scheduled for April 5, 2013, Amorim faces a maximum sentence of 15 years in prison and a fine of up to $500,000. Amorim currently is serving a 36-month sentence in federal prison for participating in a separate conspiracy to smuggle undocumented migrants from Brazil and Peru into the United States via a maritime route from the Bahamas into southern Florida.
Amorim’s co-conspirator Maria Adela De Luna pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. Co-conspirator Kaushik Jayantibhai Thakkar pleaded guilty on Dec. 3, 2012, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
The investigation was conducted by agents with ICE-HSI in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Friday, January 4, 2013
Foreign National Pleads Guilty in Houston to Human Smuggling Charges
WASHINGTON – A foreign national pleaded guilty today to federal human smuggling charges for his role in a scheme to smuggle undocumented migrants from India into the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Kenneth Magidson for the Southern District of Texas; and Special Agent in Charge Brian M. Moskowitz of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Houston
Fabiano Augusto Amorim, 28, a Brazilian national, pleaded guilty today at a hearing before U.S. District Judge Ewing Werlein Jr. in Houston, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
On June 6, 2012, Amorim was charged by indictment, along with four other individuals, with one count of conspiracy to smuggle undocumented migrants into the United States and six human smuggling counts related to five incidents in which Amorim helped smuggle undocumented migrants into the United States. Based on Amorim’s guilty plea, the government will dismiss the remaining human smuggling counts against him at sentencing.
At the plea hearing and in related court documents, Amorim admitted that between January 2011 and April 2012, he conspired with his co-defendants to bring undocumented migrants to the United States, and to encourage and induce undocumented migrants to come to the United States unlawfully. According to court documents, Amorim and his co-conspirators devised the scheme to profit financially.
In support of the conspiracy, Amorim and other conspirators recruited individuals in India who were willing to pay up to $60,000 to be smuggled into the United States. For their smuggling operations, Amorim and his co-conspirators used a network of alleged conspirators in South America, Central America, the Caribbean and the United States, including the state of Texas. Using this network, Amorim and his co-conspirators transported groups of undocumented migrants from locations within India through South America, Central America and the Caribbean and then into the United States by various means, including by air travel, automobiles, water craft and foot. Many of these smuggling events, including five of the incidents described in the indictment, involved illegal entry into the United States via the border between the United States and Mexico near McAllen and Laredo, Texas.
At sentencing, which is scheduled for April 5, 2013, Amorim faces a maximum sentence of 15 years in prison and a fine of up to $500,000. Amorim currently is serving a 36-month sentence in federal prison for participating in a separate conspiracy to smuggle undocumented migrants from Brazil and Peru into the United States via a maritime route from the Bahamas into southern Florida.
Amorim’s co-conspirator Maria Adela De Luna pleaded guilty on Nov. 9, 2012, to one count of conspiracy to harbor undocumented migrants in the United States. Co-conspirator Kaushik Jayantibhai Thakkar pleaded guilty on Dec. 3, 2012, to one count of conspiracy to bring undocumented migrants into the United States for profit and to one count of unlawfully bringing two undocumented migrants into the United States for profit.
The investigation was conducted by agents with ICE-HSI in McAllen and Houston, with the assistance of U.S. Customs and Border Protection’s Alien Smuggling Interdiction Unit. This case is being prosecuted jointly by Trial Attorney Stephen Curran of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Leo J. Leo III and Casey MacDonald of the Southern District of Texas.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Saturday, December 8, 2012
JURY HAS GUILTY VERDICT FOR INVESTMENT ADVISER AND HIS FIRM
FROM: U.S. DEPARTMENT OF JUSTICE
Jury Returns Verdict of Liability Against Massachusetts Investment Adviser and his Advisory Firm
The Securities and Exchange Commission announced that, on November 26, 2012, a federal court jury in Boston, Massachusetts returned a verdict of securities fraud liability against registered investment adviser EagleEye Asset Management, LLC, and its sole principal, Jeffrey A. Liskov, both of Plymouth, MA, in connection their fraudulent conduct toward advisory clients. The trial was presided over by U.S. District Court Judge William G. Young.
In its complaint, the Commission alleged that, between at least November 2008 and August 2010, Liskov made material misrepresentations to at least six advisory clients to induce them to liquidate investments in securities and instead invest the proceeds in foreign currency exchange ("forex") trading. The forex investments, which were not suitable for older clients with conservative investment goals, resulted in steep losses for clients, totaling nearly $4 million, but EagleEye and Liskov came away with over $300,000 in performance fees, in addition to other management fees they collected from clients. Liskov’s strategy was to generate temporary profits on client forex investments to enable him to collect performance fees, after which client investments invariably would sharply decline in value. According to the Commission’s complaint, Liskov made material misrepresentations or failed to disclose material information to clients concerning the nature of forex investments, the risks involved, and his poor track record in forex trading for himself and other clients. The Commission’s complaint further alleged that, in the case of two clients, without their knowledge or consent, Liskov liquidated securities in their brokerage accounts and transferred the proceeds to their forex trading accounts where he lost nearly all client funds, but not before first collecting performance fees for EagleEye (and ultimately himself) on short-lived profits in the clients’ forex accounts. The complaint alleged that Liskov accomplished the unauthorized transfers by doctoring asset transfer forms. On several occasions, Liskov took old forms signed by the clients and used "white out" correction fluid to change dates, asset transfer amounts, and other data. Liskov also used similar tactics to open multiple forex trading accounts in the name of one client, thereby maximizing his ability to earn performance fees for EagleEye (and ultimately himself) on the client’s investments, all without disclosing this to the client or obtaining the client’s consent. The Commission alleged that, as a result of this conduct, EagleEye and Liskov violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Commission also alleged that EagleEye failed to maintain certain books and records required of investment advisers in violation of Section 204 of the Advisers Act and Rule 204-2 thereunder, and that Liskov aided and abetted EagleEye’s violations of these provisions.
After an eight day trial, the jury deliberated for approximately four hours before rendering its verdict of liability against Liskov and EagleEye under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder as to four clients and under Section 206(1) of the Advisers Act as to five clients. The Court will decide the Commission’s claims under Section 204 of the Advisers Act and Rule 204-2 thereunder and will hold a hearing on the Commission’s request for injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest thereon, and the imposition of a monetary penalty against both EagleEye and Liskov, based on the jury’s verdict. The case was tried by Deena Bernstein and Naomi Sevilla of the Commission’s Boston Regional Office.
Jury Returns Verdict of Liability Against Massachusetts Investment Adviser and his Advisory Firm
The Securities and Exchange Commission announced that, on November 26, 2012, a federal court jury in Boston, Massachusetts returned a verdict of securities fraud liability against registered investment adviser EagleEye Asset Management, LLC, and its sole principal, Jeffrey A. Liskov, both of Plymouth, MA, in connection their fraudulent conduct toward advisory clients. The trial was presided over by U.S. District Court Judge William G. Young.
In its complaint, the Commission alleged that, between at least November 2008 and August 2010, Liskov made material misrepresentations to at least six advisory clients to induce them to liquidate investments in securities and instead invest the proceeds in foreign currency exchange ("forex") trading. The forex investments, which were not suitable for older clients with conservative investment goals, resulted in steep losses for clients, totaling nearly $4 million, but EagleEye and Liskov came away with over $300,000 in performance fees, in addition to other management fees they collected from clients. Liskov’s strategy was to generate temporary profits on client forex investments to enable him to collect performance fees, after which client investments invariably would sharply decline in value. According to the Commission’s complaint, Liskov made material misrepresentations or failed to disclose material information to clients concerning the nature of forex investments, the risks involved, and his poor track record in forex trading for himself and other clients. The Commission’s complaint further alleged that, in the case of two clients, without their knowledge or consent, Liskov liquidated securities in their brokerage accounts and transferred the proceeds to their forex trading accounts where he lost nearly all client funds, but not before first collecting performance fees for EagleEye (and ultimately himself) on short-lived profits in the clients’ forex accounts. The complaint alleged that Liskov accomplished the unauthorized transfers by doctoring asset transfer forms. On several occasions, Liskov took old forms signed by the clients and used "white out" correction fluid to change dates, asset transfer amounts, and other data. Liskov also used similar tactics to open multiple forex trading accounts in the name of one client, thereby maximizing his ability to earn performance fees for EagleEye (and ultimately himself) on the client’s investments, all without disclosing this to the client or obtaining the client’s consent. The Commission alleged that, as a result of this conduct, EagleEye and Liskov violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The Commission also alleged that EagleEye failed to maintain certain books and records required of investment advisers in violation of Section 204 of the Advisers Act and Rule 204-2 thereunder, and that Liskov aided and abetted EagleEye’s violations of these provisions.
After an eight day trial, the jury deliberated for approximately four hours before rendering its verdict of liability against Liskov and EagleEye under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder as to four clients and under Section 206(1) of the Advisers Act as to five clients. The Court will decide the Commission’s claims under Section 204 of the Advisers Act and Rule 204-2 thereunder and will hold a hearing on the Commission’s request for injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest thereon, and the imposition of a monetary penalty against both EagleEye and Liskov, based on the jury’s verdict. The case was tried by Deena Bernstein and Naomi Sevilla of the Commission’s Boston Regional Office.
Wednesday, December 5, 2012
CIVIL RIGHTS AND NATIVE AMERICANS
FROM: U.S. DEPARTMENT OF JUSTICE
Honoring the Civil Rights of Native Americans
December 3rd, 2012 Posted by Tracy Russo
The following post appears courtesy of the Civil Rights Division.
Last week the Department of Justice formally recognized Native American Heritage Month with a program based on this year’s theme "Serving Our People, Serving Our Nation: Native Visions for Future Generations." As this month of special recognition of American Indian and Alaska Native peoples comes to a close, it is important to remember that the best way we can honor the contributions of tribal communities is through ongoing collaboration and effective enforcement of the civil rights of Native Americans throughout the country. The department’s work in this area is a year-round effort, with the active engagement of the Civil Rights Division’s Indian Working Group.
For too long, Native Americans have experienced discrimination and injustice, and the federal government can and must stop such discrimination. The Indian Working Group, with representatives from every section of the division, is a critical tool in that work. This collaborative effort elevates enforcement, outreach, and educational opportunities concerning Native American issues within the division, within the department, and throughout the country.
The Indian Working Group is just one tool within the Civil Rights Division when it comes to reducing crime and advancing public safety in Native American communities and the Division continues to increase the number of cases affecting Native Americans.
The department confronts daily challenges to the civil rights of Native Americans, including vicious assaults born of hatred, and threats used to drive Native Americans out of their homes. In parts of Indian country, rates of violent crime are two times, four times, even ten times what they are in other communities. One in three Indian women reports having been raped. This is profoundly disturbing, and completely unacceptable.
A core part of safe communities is an effective, accountable police department that reduces crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. This summer, the department reached a comprehensive agreement with the City of Seattle regarding the Seattle Police Department’s use of excessive force and concerns about discriminatory policing. Seattle must create a Community Police Commission and invite Native American community input on the Seattle Police Department’s training requirements and policies.
The Civil Rights Division’s first case under the 2009 Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act was in New Mexico, where the department successfully prosecuted a group of men who assaulted a 22-year-old Navajo man with a developmental disability and defaced his body with white supremacist and anti-Native American symbols.
The division enforces laws that protect the freedom to practice one’s religion, free from discrimination or persecution while incarcerated. In September, the District Court in South Dakota agreed with us that Native American inmates must be permitted to use tobacco in religious ceremonies in prison, without second-guessing whether tobacco is traditional to Native American religious practices.
In 2010, when minorities were hit particularly hard by the housing crisis, we created a Fair Lending Unit to address credit discrimination. Particularly in communities where unemployment rates were already high, as with many Native American communities, it is critical that we remain vigilant in enforcing fair housing and fair lending laws to ensure they do not suffer even further.
Using our authority under Title VI of the Civil Rights Act of 1964, we work to ensure state courts and other federally funded programs are free of discrimination and accessible to everyone, regardless of language – including Native Americans.
Finally, the division continues to enforce and defend the laws that enable access to the paramount expression of our democracy – the equal right to vote. The division enforces federal voting laws that protect Native Americans from discrimination based on race or membership in a language minority group. We have been active in enforcing and defending voting laws in Arizona, Montana, New Mexico, South Dakota, Utah, and Alaska.
We do this work, not only because it is our legal responsibility as a government, but because it is our moral responsibility as members of a broader community. We have the rule of law and the will of the federal government behind us and we will continue to protect the civil rights of American Indians and Alaska Natives.
Honoring the Civil Rights of Native Americans
December 3rd, 2012 Posted by Tracy Russo
The following post appears courtesy of the Civil Rights Division.
Last week the Department of Justice formally recognized Native American Heritage Month with a program based on this year’s theme "Serving Our People, Serving Our Nation: Native Visions for Future Generations." As this month of special recognition of American Indian and Alaska Native peoples comes to a close, it is important to remember that the best way we can honor the contributions of tribal communities is through ongoing collaboration and effective enforcement of the civil rights of Native Americans throughout the country. The department’s work in this area is a year-round effort, with the active engagement of the Civil Rights Division’s Indian Working Group.
For too long, Native Americans have experienced discrimination and injustice, and the federal government can and must stop such discrimination. The Indian Working Group, with representatives from every section of the division, is a critical tool in that work. This collaborative effort elevates enforcement, outreach, and educational opportunities concerning Native American issues within the division, within the department, and throughout the country.
The Indian Working Group is just one tool within the Civil Rights Division when it comes to reducing crime and advancing public safety in Native American communities and the Division continues to increase the number of cases affecting Native Americans.
The department confronts daily challenges to the civil rights of Native Americans, including vicious assaults born of hatred, and threats used to drive Native Americans out of their homes. In parts of Indian country, rates of violent crime are two times, four times, even ten times what they are in other communities. One in three Indian women reports having been raped. This is profoundly disturbing, and completely unacceptable.
A core part of safe communities is an effective, accountable police department that reduces crime, ensures respect for the Constitution, and earns the trust of the public it is charged with protecting. This summer, the department reached a comprehensive agreement with the City of Seattle regarding the Seattle Police Department’s use of excessive force and concerns about discriminatory policing. Seattle must create a Community Police Commission and invite Native American community input on the Seattle Police Department’s training requirements and policies.
The Civil Rights Division’s first case under the 2009 Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act was in New Mexico, where the department successfully prosecuted a group of men who assaulted a 22-year-old Navajo man with a developmental disability and defaced his body with white supremacist and anti-Native American symbols.
The division enforces laws that protect the freedom to practice one’s religion, free from discrimination or persecution while incarcerated. In September, the District Court in South Dakota agreed with us that Native American inmates must be permitted to use tobacco in religious ceremonies in prison, without second-guessing whether tobacco is traditional to Native American religious practices.
In 2010, when minorities were hit particularly hard by the housing crisis, we created a Fair Lending Unit to address credit discrimination. Particularly in communities where unemployment rates were already high, as with many Native American communities, it is critical that we remain vigilant in enforcing fair housing and fair lending laws to ensure they do not suffer even further.
Using our authority under Title VI of the Civil Rights Act of 1964, we work to ensure state courts and other federally funded programs are free of discrimination and accessible to everyone, regardless of language – including Native Americans.
Finally, the division continues to enforce and defend the laws that enable access to the paramount expression of our democracy – the equal right to vote. The division enforces federal voting laws that protect Native Americans from discrimination based on race or membership in a language minority group. We have been active in enforcing and defending voting laws in Arizona, Montana, New Mexico, South Dakota, Utah, and Alaska.
We do this work, not only because it is our legal responsibility as a government, but because it is our moral responsibility as members of a broader community. We have the rule of law and the will of the federal government behind us and we will continue to protect the civil rights of American Indians and Alaska Natives.
Tuesday, December 4, 2012
HUNGARIAN WOMAN PLEADS GUILTY IN INTERNATIONAL ONLINE MARKET SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, November 21, 2012
Hungarian Woman Pleads Guilty in Tennessee for Role in International Fraud Scheme Involving Online Marketplace Websites
WASHINGTON – A Hungarian woman pleaded guilty in Nashville, Tenn., for her role in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Beatrix Boka, 34, of Hungary, pleaded guilty today before U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee to one count of conspiracy to commit bank and wire fraud. Boka and co-conspirator Aleksandar Kunkin, also of Hungary, were charged in a one-count indictment by a federal grand jury in August 2012. Kunkin pleaded guilty on Nov. 15, 2012.
Boka admitted in her plea hearing today that members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid.
Boka further admitted that, from May to June 2012, she and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. Boka pleaded guilty to opening 17 such accounts, each under a different name. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka admitted that she and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
According to the criminal complaint affidavit, in June 2012, Boka and Kunkin traveled together to Madison, Tenn., where Kunkin was apprehended as he attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias. Boka was subsequently apprehended in Kennesaw, Ga., when she attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias.
Boka faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2013.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Cobb County, Ga., Sheriff’s Department.
Wednesday, November 21, 2012
Hungarian Woman Pleads Guilty in Tennessee for Role in International Fraud Scheme Involving Online Marketplace Websites
WASHINGTON – A Hungarian woman pleaded guilty in Nashville, Tenn., for her role in moving approximately $550,000 in illicit proceeds derived from an international online marketplace fraud scheme, announced Assistant Attorney General Lanny Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Beatrix Boka, 34, of Hungary, pleaded guilty today before U.S. District Judge Aleta A. Trauger in the Middle District of Tennessee to one count of conspiracy to commit bank and wire fraud. Boka and co-conspirator Aleksandar Kunkin, also of Hungary, were charged in a one-count indictment by a federal grand jury in August 2012. Kunkin pleaded guilty on Nov. 15, 2012.
Boka admitted in her plea hearing today that members of the conspiracy fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, co-conspirators sent emails that directed victims to wire payments to certain bank accounts, and victims never received the vehicles for which they paid.
Boka further admitted that, from May to June 2012, she and Kunkin visited Bank of America branches in North Carolina and South Carolina and opened bank accounts under false identities, which were supported by fraudulent identity documents including counterfeit Hungarian passports. Boka pleaded guilty to opening 17 such accounts, each under a different name. In total, 36 victims sent approximately $550,102 to accounts opened by Boka and Kunkin. Boka admitted that she and Kunkin subsequently sent the bulk of the money to co-conspirators located abroad.
According to the criminal complaint affidavit, in June 2012, Boka and Kunkin traveled together to Madison, Tenn., where Kunkin was apprehended as he attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias. Boka was subsequently apprehended in Kennesaw, Ga., when she attempted to open an account at a Bank of America branch using a Hungarian passport bearing an alias.
Boka faces a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2013.
The case is being prosecuted by Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Trial Attorney Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Cobb County, Ga., Sheriff’s Department.
Saturday, December 1, 2012
REMARKS BY AG HOLDER ON VIOLENCE AGAINST WOMEN RECOMMENDATIONS
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 30, 2012
Statement by Attorney General Eric Holder on the Release of the National Advisory Committee on Violence Against Women Recommendations
Attorney General Eric Holder issued the following statement today on the release of the recommendations by the National Advisory Committee on Violence Against Women:
"For the past two years, the National Advisory Committee on Violence Against Women has displayed remarkable leadership and dedication to the cause of ending violence against women. I appreciate the thoughtful recommendations they have submitted in their final report.
"My intention when I re-chartered the advisory committee in March 2010 was to convene leaders in the field to solicit recommendations about how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness or are victimized by domestic violence, dating violence and sexual assault.
"Prevention and successful interventions with children and teens will help break the cycle of violence that afflicts our nation. There is an unmistakable relationship between young people who witness or are victims of violence and the overall public safety of communities across the country.
"Together, I hope we can end this destructive violence and offer safety, security and hope to our children."
Information on the National Advisory Committee can be found at: www.ovw.usdoj.gov/nac.html.
Friday, November 30, 2012
Statement by Attorney General Eric Holder on the Release of the National Advisory Committee on Violence Against Women Recommendations
Attorney General Eric Holder issued the following statement today on the release of the recommendations by the National Advisory Committee on Violence Against Women:
"For the past two years, the National Advisory Committee on Violence Against Women has displayed remarkable leadership and dedication to the cause of ending violence against women. I appreciate the thoughtful recommendations they have submitted in their final report.
"My intention when I re-chartered the advisory committee in March 2010 was to convene leaders in the field to solicit recommendations about how to improve the nation’s response to violence against women, with a specific focus on successful interventions with children and teens who witness or are victimized by domestic violence, dating violence and sexual assault.
"Prevention and successful interventions with children and teens will help break the cycle of violence that afflicts our nation. There is an unmistakable relationship between young people who witness or are victims of violence and the overall public safety of communities across the country.
"Together, I hope we can end this destructive violence and offer safety, security and hope to our children."
Information on the National Advisory Committee can be found at: www.ovw.usdoj.gov/nac.html.
Tuesday, November 27, 2012
FORMER POLICE OFFICER SENTENCED FOR PROVIDING PROTECTION DURING A COCAINE SALE
FROM: U.S. DEPARTMENT OF JUSTICE
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Friday, November 16, 2012
Former Police of Puerto Rico Officer Sentenced to 181 Months in Prison for Providing Armed Security for Drug Transaction
WASHINGTON – A former Police of Puerto Rico officer was sentenced today to 181 months in prison for her role in providing armed security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico, and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was sentenced today by U.S. District Judge Juan M. Perez-Gimenez in the District of Puerto Rico.
In May 2012, a federal jury in San Juan found Navedo Ramirez guilty of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and possession of a firearm in furtherance of a drug transaction. The jury acquitted her of one count of conspiracy to possess with the intent to distribute more than five kilograms of cocaine.
According to the evidence presented in court, Navedo Ramirez provided security on April 14, 2010, for what she believed was an illegal cocaine deal. In fact, the purported drug transaction was part of an undercover FBI operation. On that day, Navedo Ramirez provided armed protection for the deal and escorted the buyer in and out of the transaction.
Navedo Ramirez was charged in a superseding indictment unsealed on Oct. 28, 2010, along with 89 law enforcement officers in Puerto Rico and 44 other individuals charged as part of the FBI undercover operation known as Guard Shack.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000. Judge Perez Gimenez ordered the defendant to forfeit the $2,000 she received in exchange for providing security for the drug transaction.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
Monday, November 26, 2012
U.S. JUSTICE DEPARTMENT FILES LAWSUIT AGAINST EBAY INC.
FROM: U.S. DEPARTMENT OF JUSTICE
WASHINGTON — The Department of Justice filed a civil antitrust lawsuit today against eBay Inc., alleging that it violated antitrust laws when it entered into an agreement not to recruit or hire Intuit Inc.’s employees. The department said that the agreement eliminated a significant form of competition to the detriment of affected employees who were likely deprived of access to better job opportunities and salaries.
The department’s Antitrust Division worked closely with the Office of the Attorney General of the State of California, which conducted its own investigation and filed a similar lawsuit today.
The department filed its lawsuit in U.S. District Court in the Northern District of California, in San Jose. The lawsuit seeks to prevent eBay from adhering to or enforcing the agreement and from entering into any similar agreements with any other companies. Intuit is already subject to a settlement prohibiting it from entering into such agreements as part of an earlier case with the department.
The department alleges the agreement, which was enforced at the highest levels of each company, barred either firm from soliciting each other’s employees, and for over a year barred at least eBay from hiring any employees from Intuit at all. In court papers, the department alleges that Meg Whitman, then eBay’s CEO, and Scott Cook, Intuit’s founder and executive committee chair, were intimately involved in forming, monitoring and enforcing the anticompetitive agreement. Cook was serving as a member of eBay’s board of directors at the same time he was making complaints about eBay’s recruiting of Intuit employees.
"eBay’s agreement with Intuit hurt employees by lowering the salaries and benefits they might have received and deprived them of better job opportunities at the other company," said Joseph Wayland, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. "The Antitrust Division has consistently taken the position that these kinds of agreements are per se unlawful under the antitrust laws."
According to the complaint, beginning no later than 2006, and lasting at least until 2009, eBay and Intuit entered an illegal agreement that restricted their ability to actively recruit employees from the other company, and for some period of time even restricted at least eBay from hiring any employees at Intuit. In 2007, the pact evolved into an agreement that eBay would not recruit Intuit’s employees. eBay’s recruiting personnel were instructed to not pursue potential applications that came from Intuit and to throw away such resumes, the department said.
As stated in the department’s complaint, eBay and Intuit are direct competitors for employees, including specialized computer engineers and scientists covered by the agreements at issue in the case.
The department said it was not necessary to name Intuit in today’s complaint because the company had previously been named in the division’s September 2010 lawsuit and settlement, and the relief the department obtained in the previous settlement is sufficient to prevent Intuit from entering into these types of agreements. In September 2010, the Antitrust Division filed a lawsuit against six high technology companies–Adobe Systems Inc., Apple Inc., Google Inc., Intel Corp., Intuit Inc. and Pixar–over a series of bilateral agreements not to solicit each other’s employees. All six companies entered into a settlement which prohibited them from entering agreements to refrain from, or pressure others to refrain from, soliciting, recruiting, or otherwise competing for another firm’s employees. The Antitrust Division also filed a lawsuit against Lucasfilm in December 2010 for entering into a similar agreement with Pixar, and Lucasfilm entered into a similar settlement. The eBay case grew out of the same investigation.
eBay is a Delaware corporation with its principal place of business in San Jose. In 2011, eBay had revenues of $11.7 billion.
Intuit is a Delaware corporation with its principal place of business in Mountain View, Calif. In 2011, Intuit had revenues of $3.85 billion.
PUTTING AN END TO HUMAN TRAFFICKING
FROM: U.S. DEPARTMENT OF JUSTICE
The Fight to End Human Trafficking Contineus
November 21st, 2012
Posted by Tracy Russo
Deputy Attorney General James Cole met with Jada Pinkett Smith last week to discuss the department’s extensive efforts to end human trafficking. Ms. Pinkett Smith founded the organization,
Don’t Sell Bodies, to raise awareness about this global epidemic and advocate for victims of trafficking. Ms. Pinkett Smith was joined by former trafficking victims who now work to raise awareness and eliminate human trafficking, including Minh Dang and Withelma "T" Ortiz-Macey, Glamour magazine’s 2011 Woman of the Year.
During the meeting the group discussed remarks made by Deputy Cole before the INTERPOL General Assembly in Italy earlier this month, which largely focused on the department’s myriad of efforts to combat trafficking, including the links between transnational organized crime and human trafficking and the department’s prosecution and training efforts in this area.
Human trafficking cases are prosecuted by several Department of Justice components, including the Civil Rights Division and its specialized Human Trafficking Prosecution Unit, the Criminal Division through the Child Exploitation and Obscenity Section, and individual U.S. Attorney’s Offices. These cases are investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement/Homeland Security Investigations, and partners at the Departments of Labor and State.
In recent years we have demonstrated unprecedented success in fighting both labor and sex trafficking. We are bringing a record number of federal cases, while at the same time, more states than ever before have passed their own anti-trafficking laws. The department has increased the number of human trafficking prosecutions by more than 30 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent.
Working with federal, state, local, and international law enforcement agencies, we recently secured the longest sentence ever imposed in a forced labor case. In United States v. Botsvynyuk, the lead defendant was sentenced to life in prison plus twenty years, and his co-conspirator was sentenced to twenty years, for their respective roles in an organized human trafficking scheme that held its victims in forced labor on cleaning crews in and around Philadelphia, Pennsylvania.
Just over a year ago, we initiated a pilot project of multi-agency Anti-Trafficking Coordination Teams (ACTeams) in six judicial districts in the United States. These task forces will prove the value of interagency coordination to address the scourge of human trafficking. In addition to the ACTeams, each U.S. Attorney now participates in some form of anti-trafficking task force.
In addition to our own federal prosecutions, the department’s grant making components are funding state and local law enforcement agencies and victim services organizations to support multidisciplinary, victim-centered task forces dedicated to investigating trafficking crimes and providing culturally-competent assistance to victims.
By taking a multi-disciplinary approach to combating human trafficking and working with our federal, state local and nonprofit partners we can ensure that victims obtain the services that they need and that offenders are prosecuted and sentenced to lengthy jail sentences.
The Fight to End Human Trafficking Contineus
November 21st, 2012
Posted by Tracy Russo
Deputy Attorney General James Cole met with Jada Pinkett Smith last week to discuss the department’s extensive efforts to end human trafficking. Ms. Pinkett Smith founded the organization,
Don’t Sell Bodies, to raise awareness about this global epidemic and advocate for victims of trafficking. Ms. Pinkett Smith was joined by former trafficking victims who now work to raise awareness and eliminate human trafficking, including Minh Dang and Withelma "T" Ortiz-Macey, Glamour magazine’s 2011 Woman of the Year.
During the meeting the group discussed remarks made by Deputy Cole before the INTERPOL General Assembly in Italy earlier this month, which largely focused on the department’s myriad of efforts to combat trafficking, including the links between transnational organized crime and human trafficking and the department’s prosecution and training efforts in this area.
Human trafficking cases are prosecuted by several Department of Justice components, including the Civil Rights Division and its specialized Human Trafficking Prosecution Unit, the Criminal Division through the Child Exploitation and Obscenity Section, and individual U.S. Attorney’s Offices. These cases are investigated by the Federal Bureau of Investigation, the Department of Homeland Security’s Immigration and Customs Enforcement/Homeland Security Investigations, and partners at the Departments of Labor and State.
In recent years we have demonstrated unprecedented success in fighting both labor and sex trafficking. We are bringing a record number of federal cases, while at the same time, more states than ever before have passed their own anti-trafficking laws. The department has increased the number of human trafficking prosecutions by more than 30 percent in forced labor and adult sex trafficking cases, while also increasing the number of convictions in Innocence Lost National Initiative cases by 30 percent.
Working with federal, state, local, and international law enforcement agencies, we recently secured the longest sentence ever imposed in a forced labor case. In United States v. Botsvynyuk, the lead defendant was sentenced to life in prison plus twenty years, and his co-conspirator was sentenced to twenty years, for their respective roles in an organized human trafficking scheme that held its victims in forced labor on cleaning crews in and around Philadelphia, Pennsylvania.
Just over a year ago, we initiated a pilot project of multi-agency Anti-Trafficking Coordination Teams (ACTeams) in six judicial districts in the United States. These task forces will prove the value of interagency coordination to address the scourge of human trafficking. In addition to the ACTeams, each U.S. Attorney now participates in some form of anti-trafficking task force.
In addition to our own federal prosecutions, the department’s grant making components are funding state and local law enforcement agencies and victim services organizations to support multidisciplinary, victim-centered task forces dedicated to investigating trafficking crimes and providing culturally-competent assistance to victims.
By taking a multi-disciplinary approach to combating human trafficking and working with our federal, state local and nonprofit partners we can ensure that victims obtain the services that they need and that offenders are prosecuted and sentenced to lengthy jail sentences.
Saturday, November 24, 2012
TAX PREPARER SENTENCED FOR FILING FALSE CLAIMS AND IDENTITY THEFT
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
CO. TO PAY $4.1 MILLION PENALTY TO SETTLE CLEAN WATER ACT VIOLATIONS AT WASTE WATER TREATMENT PLANT
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html
Friday, November 23, 2012
THE QUANTA RESOURCES SUPERFUND SITE MOVES FORWARD ON CLEANUP
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
Agreement Furthers Cleanup of the Quanta Resources Superfund Site in Edgewater, New Jersey
Another important step toward cleaning up the Quanta Resources Superfund site in Edgewater, N.J., was announced today by the Department of Justice and the U.S. Environmental Protection Agency (EPA). The agreement with Honeywell International Inc. and 23 other parties, embodied in a consent decree lodged today in federal court, requires the performance of pre-construction project design work and requires Honeywell to carry out the actual cleanup work under the EPA’s oversight. The cleanup of the Quanta Site is expected to result in its redevelopment.
After the design is completed and approved by EPA, the cleanup will proceed at the Quanta Site, which is located adjacent to the Hudson River. The work is expected to take approximately two to three years and cost $78 million.
Currently, soil and ground water at the site are contaminated with arsenic, lead, polycyclic aromatic hydrocarbons and volatile organic compounds resulting from over 100 years of industrial activities in the area. Exposure to these pollutants can have serious health effects, and in some cases, increase the risk of cancer.
"This agreement marks a major milestone toward finally cleaning up the industrial pollution legacy at the Quanta Site," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The settlement holds those responsible for the pollution accountable for the cleanup, and brings us closer to the future redevelopment of this site for the benefit of the people of New Jersey."
"The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers," said EPA Regional Administrator Judith A. Enck. "The EPA searches for parties responsible for the contamination and holds them accountable. This agreement is an important part of that process and a step in the right direction."
The Quanta site, located on River Road at the intersection of Gorge Road in Edgewater, was built as a coal tar facility beginning in the 1880s. In the 1970s, the site’s "tank farm" was used to store waste oil prior to reprocessing. The state of New Jersey closed the facility in 1981 when some storage tanks were found to contain waste oil contaminated with polychlorinated biphenyls. The EPA supervised a series of emergency actions at the site that included safely removing and disposing of millions of gallons of waste oil, sludge and contaminated water from the tanks, and cleaning and dismantling the emptied tanks and piping.
Because of the nature and complexity of the contamination, the EPA divided the investigation and cleanup into two phases – one addressing the contaminated soil and ground water, and the other focused on contamination in the river and sediment. The plan to address the contaminated soil and ground water was finalized in July 2010. The EPA took public comment for 60 days and considered public input before selecting a cleanup plan. This phase of the cleanup is addressed in the consent decree lodged today. A separate study of the Hudson River and sediment contamination will lead to a subsequent cleanup plan for the next phase.
The site contains an estimated 150,000 cubic yards of contaminated soil requiring treatment to protect people that may come into contact with it. Among other steps, the EPA will solidify and stabilize areas of soil contaminated with oily liquid and arsenic by turning them into leak-proof blocks underground. Throughout the cleanup, monitoring, testing and further studies will be conducted to ensure the effectiveness of the remedy.
Aside from Honeywell International Inc., the other parties that have agreed to the consent decree are, for the most part, waste oil generators whose wastes were disposed of at the Quanta site. They include: BASF Corporation; Beazer East Inc.; BFI Waste Systems of New Jersey Inc.; BorgWarner Inc.; Buckeye Pipe Line Co. LP; Chemical Leaman Tank Lines Inc. (now Quality Carriers); Colonial Pipeline Co.; Consolidated Rail Corp.; Exxon Mobil Corp; Ford Motor Company; General Dynamics Land Systems Inc.; Hess Corp.; Miller Brewing Co.; NEAPCO Inc.; Northrup Grumman Systems Corp.; Petroleum Tank Cleaners Inc.; Rome Strip Steel Co. Inc.; Quanta Resources Corp.; Stanley Black & Decker Inc.; Textron Inc.; and United Technologies Corp.
Monday, November 19, 2012
Agreement Furthers Cleanup of the Quanta Resources Superfund Site in Edgewater, New Jersey
Another important step toward cleaning up the Quanta Resources Superfund site in Edgewater, N.J., was announced today by the Department of Justice and the U.S. Environmental Protection Agency (EPA). The agreement with Honeywell International Inc. and 23 other parties, embodied in a consent decree lodged today in federal court, requires the performance of pre-construction project design work and requires Honeywell to carry out the actual cleanup work under the EPA’s oversight. The cleanup of the Quanta Site is expected to result in its redevelopment.
After the design is completed and approved by EPA, the cleanup will proceed at the Quanta Site, which is located adjacent to the Hudson River. The work is expected to take approximately two to three years and cost $78 million.
Currently, soil and ground water at the site are contaminated with arsenic, lead, polycyclic aromatic hydrocarbons and volatile organic compounds resulting from over 100 years of industrial activities in the area. Exposure to these pollutants can have serious health effects, and in some cases, increase the risk of cancer.
"This agreement marks a major milestone toward finally cleaning up the industrial pollution legacy at the Quanta Site," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The settlement holds those responsible for the pollution accountable for the cleanup, and brings us closer to the future redevelopment of this site for the benefit of the people of New Jersey."
"The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers," said EPA Regional Administrator Judith A. Enck. "The EPA searches for parties responsible for the contamination and holds them accountable. This agreement is an important part of that process and a step in the right direction."
The Quanta site, located on River Road at the intersection of Gorge Road in Edgewater, was built as a coal tar facility beginning in the 1880s. In the 1970s, the site’s "tank farm" was used to store waste oil prior to reprocessing. The state of New Jersey closed the facility in 1981 when some storage tanks were found to contain waste oil contaminated with polychlorinated biphenyls. The EPA supervised a series of emergency actions at the site that included safely removing and disposing of millions of gallons of waste oil, sludge and contaminated water from the tanks, and cleaning and dismantling the emptied tanks and piping.
Because of the nature and complexity of the contamination, the EPA divided the investigation and cleanup into two phases – one addressing the contaminated soil and ground water, and the other focused on contamination in the river and sediment. The plan to address the contaminated soil and ground water was finalized in July 2010. The EPA took public comment for 60 days and considered public input before selecting a cleanup plan. This phase of the cleanup is addressed in the consent decree lodged today. A separate study of the Hudson River and sediment contamination will lead to a subsequent cleanup plan for the next phase.
The site contains an estimated 150,000 cubic yards of contaminated soil requiring treatment to protect people that may come into contact with it. Among other steps, the EPA will solidify and stabilize areas of soil contaminated with oily liquid and arsenic by turning them into leak-proof blocks underground. Throughout the cleanup, monitoring, testing and further studies will be conducted to ensure the effectiveness of the remedy.
Aside from Honeywell International Inc., the other parties that have agreed to the consent decree are, for the most part, waste oil generators whose wastes were disposed of at the Quanta site. They include: BASF Corporation; Beazer East Inc.; BFI Waste Systems of New Jersey Inc.; BorgWarner Inc.; Buckeye Pipe Line Co. LP; Chemical Leaman Tank Lines Inc. (now Quality Carriers); Colonial Pipeline Co.; Consolidated Rail Corp.; Exxon Mobil Corp; Ford Motor Company; General Dynamics Land Systems Inc.; Hess Corp.; Miller Brewing Co.; NEAPCO Inc.; Northrup Grumman Systems Corp.; Petroleum Tank Cleaners Inc.; Rome Strip Steel Co. Inc.; Quanta Resources Corp.; Stanley Black & Decker Inc.; Textron Inc.; and United Technologies Corp.
Thursday, November 22, 2012
MAN SENTENCED FOR STOLEN IDENTITY REFUND FRAUD
FROM: U.S. DEPARTMENT OF JUSTICE
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Monday, November 19, 2012
New Mexico Man Sentenced to Prison for Stolen Identity Refund Fraud
Douglas Kuester, 43, a tax preparer from Silver City, N.M., was sentenced today to 48 months in prison for filing false claims and aggravated identity theft, the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was also ordered to pay $911,000 in restitution and will be on supervised release for three years after completing his prison sentence.
Kuester had pleaded guilty to the charges in May. He was originally indicted by a federal grand jury on Jan. 18, 2012, and has been in custody since his arrest on January 24.
According to court documents, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself. Kuester also admitted to using an anonymizer to help conceal his filing of the false returns.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, and U.S. Attorney Kenneth J. Gonzales commended special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Gregory P. Bailey, who prosecuted the case with assistance from the New Mexico U.S. Attorney’s Office.
Sunday, November 18, 2012
NAVY ADM. MCRAVEN SAYS NO EVIDENCE PAKISTAN KNEW WHERE BIN LADEN WAS LOCATED
FROM: U.S. DEPARTMENT OF JUSTICE
McRaven: No Evidence Pakistan Knew bin Laden's Location
By Claudette Roulo
American Forces Press Service
WASHINGTON, Nov. 15, 2012 - The commander of U.S. Special Operations Command said yesterday that a post-raid assessment concluded there is no evidence that the Pakistani government knew the whereabouts of Osama bin Laden.
Navy Adm. William H. McRaven told attendees at the Hero Summit that Pakistan wasn't informed of the raid that led to the death of bin Laden because the initial assumption was "How could they not know he was there?"
Senior leaders, he said, believed informing Pakistan about the raid in advance would have put the mission at risk. McRaven said he doesn't believe the Pakistani government knew bin Laden's whereabouts. "We have no intelligence that indicates the Pakistanis knew he was there," he added.
McRaven, interviewed on stage by PBS' Charlie Rose, said there was never a moment he doubted the raid would succeed. "We hand-picked the guys," he said. "They were the best of the best, all across the board. They had extensive combat experience, and consequently ... I was very confident."
Though bin Laden is dead, nonstate actors still present a threat, the admiral said.
"We've done a terrific job of taking care of the core of al- Qaida," McRaven said. But, he added, "there's no such thing as a local problem anymore. ... Everything in the world is connected." This interconnectedness means the future of special operations lies in partnerships with other nations, he added.
"We understand ... to minimize the rise of violent extremism, you have to create the conditions on the ground where people have good jobs, where there is the rule of law, where there is stability [and] where there is good governance," he said. "We think, from a military standpoint, we can certainly help with the security that will be required to help begin to build some of that stability.
"The raids get all the media attention," he continued, "but the reality of the matter is the bulk of what we do is building partner capacity and working with host nations. I think that's the future of special operations."
The admiral said he recently returned from Afghanistan, where partnership building is ongoing, and he feels the relationship is the best he's ever seen it. The relationship between Afghans and their local, regional and national governments is taking serious root, he said.
Afghanistan will be a better version of itself in 2014, McRaven said, noting that the Afghan army is one of the most respected institutions in the country.
"It's an entirely different paradigm for the people of Afghanistan, but I'm convinced we're on the right path," he said.
Saturday, November 17, 2012
CO. TO PAY $4.1 MILLION TO SETTLE VIOLATIONS OF CLEAN WATER ACT
FROM: U.S. DEPARTMENT OF JUSTICE
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court
Tuesday, November 13, 2012
Roquette America Inc., to Pay $4.1 Million Penalty to Settle Violations of Clean Water Act at Its Keokuk, Iowa, Facility
Roquette America, Inc., has agreed to pay a $4.1 million civil penalty to settle alleged violations of the Clean Water Act and its National Pollutant Discharge Elimination System (NPDES) permit at its grain processing facility in Keokuk, Iowa, the Department of Justice and the Environmental Protection Agency (EPA) announced today.
As early as 2008, Roquette was aware that its waste water treatment plant was marginally adequate and that it could not handle spills or surges in loading. Instead of constructing additional containment structures for waste water surges, or routing spills to the waste water treatment plant, Roquette allowed the industrial waste to be discharged directly into the Mississippi River and Soap Creek.
"Roquette’s actions resulted in over a thousand permit violations and allowed the discharge of untreated industrial waste into the Mississippi River and another Iowa waterway even after it was informed on numerous occasions it was violating its state permit and federal law," said Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. "This settlement holds Roquette accountable for its multiple violations of the nation’s Clean Water Act and requires sewer improvements, wastewater treatment upgrades, enhanced monitoring and independent compliance audits that will benefit public health and the environment for the people of Iowa for years to come."
"The magnitude of these violations warrants the magnitude of the penalty," said EPA Region 7 Administrator Karl Brooks. "The Mississippi River is a vital waterway, used by millions of Americans for commerce, recreation and drinking water. It is imperative that industrial facilities abide by their discharge permits to protect our valuable water resources."
The Iowa Department of Natural Resources has issued three administrative orders and eight notices of violation to Roquette since 2000. Despite these orders and notices, Roquette continued to overload its waste water treatment plant and failed to address the deficiencies at other portions of its facility, resulting in permit violations and illegal discharges of untreated industrial waste.
The Keokuk facility violated its NPDES permit at least 1,174 times, and on at least 30 occasions illegally discharged via storm drains resulting in at least 250,000 gallons of industrial waste being released into the Mississippi River and Soap Creek. In addition to these permit violations and illegal discharges, Roquette discharged partially treated industrial waste from its waste water treatment plant, and discharged steam condensate into Soap Creek through an unpermitted outfall.
In addition to paying the penalty, Roquette will complete other requirements valued at more than $17 million to further protect the Mississippi River and Soap Creek. Among these requirements are the completion of a sewer survey to identify possible discharge locations, the implementation of sewer modifications, the construction of upgrades to the wastewater treatment plant, and the performance of enhanced effluent monitoring. In addition, Roquette will obtain annual third party audits of its compliance with the operations and maintenance program, the Storm Water Pollution Prevention Program, the company’s NPDES permits, and the compliance requirements set out in the consent decree.
The consent decree is subject to a 30-day public comment period and approval by the federal court
Friday, November 16, 2012
TWO FORMER U.S. MILITARY MEMBERS SENTENCED FOR ROLES IN RECRUITING REFERRAL BONUS SCHEME
FROM: U.S. DEPARTMENT OF JUSTICE
WASHINGTON – Two former members of the U.S. military were sentenced today for their participation in a conspiracy to obtain approximately $244,000 in fraudulent recruiting referral bonuses from various U.S. military components and their contractor, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Grant E. Bibb, 41, of Eagle Pass, Texas, and Paul Escobar, 32, of San Antonio, were sentenced today by Chief U.S. District Judge Fred Biery in the Western District of Texas. Judge Biery sentenced Bibb to serve one year and one day in prison and three years of supervised release. Escobar was sentenced to six months in prison, six months of community confinement and three years of supervised release. Judge Biery also held Bibb and Escobar jointly and severally liable for $244,000 in restitution.
Bibb pleaded guilty to conspiracy to commit wire fraud on Jan. 30, 2012. Escobar pleaded guilty to conspiracy to commit wire fraud on July 19, 2012.
According to court documents, Bibb served in the Texas National Guard between January 2003 and July 2007 and in the U.S. Army Reserves from October 2007 until November 2010. In addition, from December 2007 until April 2009, Bibb worked as a contract military recruiter in Katy, Texas.
Escobar served in the U.S. Army Reserves from November 2005 until February 2007. Escobar then served in the U.S. Army from November 2007 to January 2010.
According to court documents, between 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc. (Docupak) to administer recruiting bonus programs designed to offer monetary incentives to soldiers who referred others to join the U.S. military. In addition, the Army managed its own recruiting bonus programs, which offered bonuses to soldiers who referred other individuals to join the Army or the Army Reserves after registering online as recruiting assistants (RA) or sponsors. Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to serve in the U.S. military.
Bibb and Escobar admitted that they participated in a fraud scheme whereby active duty and civilian contract recruiters provided RAs and sponsors with the names and Social Security numbers of "walk-in" soldiers, which are individuals who decided to join the military without being referred by anyone. Using this information, the RAs and sponsors claimed credit for referring these potential soldiers to join the military, when in fact they did not refer them. As part of the fraud scheme, the RAs and sponsors split the bonus payments with the recruiters and others who provided the potential soldiers’ personal identifying information.
According to court documents, Bibb, Escobar and their co-conspirators received at least $244,000 in fraudulent recruiting referral bonuses in total. Bibb personally received $35,000 in fraudulent recruiting referral bonuses using RA accounts in his name and an RA account in a relative’s name. Bibb also worked with other soldiers and active duty recruiters to set up RA accounts in those soldiers’ names for the purpose of claiming fraudulent recruiting referral bonuses. Bibb, the recruiters and at least four soldiers split a total of at least $4,000 in fraudulent bonuses. Escobar permitted a co-conspirator to receive $6,000 in fraudulent recruiting referral bonuses using Escobar’s RA account and made fraudulent representations to Docupak to carry out the scheme.
This case arose from an investigation concerning allegations that former and current soldiers and military and civilian contract recruiters in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting referral bonuses. To date, 9 individuals have been charged, all of whom have pleaded guilty. The investigation is ongoing.
The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Division.
WASHINGTON – Two former members of the U.S. military were sentenced today for their participation in a conspiracy to obtain approximately $244,000 in fraudulent recruiting referral bonuses from various U.S. military components and their contractor, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Grant E. Bibb, 41, of Eagle Pass, Texas, and Paul Escobar, 32, of San Antonio, were sentenced today by Chief U.S. District Judge Fred Biery in the Western District of Texas. Judge Biery sentenced Bibb to serve one year and one day in prison and three years of supervised release. Escobar was sentenced to six months in prison, six months of community confinement and three years of supervised release. Judge Biery also held Bibb and Escobar jointly and severally liable for $244,000 in restitution.
Bibb pleaded guilty to conspiracy to commit wire fraud on Jan. 30, 2012. Escobar pleaded guilty to conspiracy to commit wire fraud on July 19, 2012.
According to court documents, Bibb served in the Texas National Guard between January 2003 and July 2007 and in the U.S. Army Reserves from October 2007 until November 2010. In addition, from December 2007 until April 2009, Bibb worked as a contract military recruiter in Katy, Texas.
Escobar served in the U.S. Army Reserves from November 2005 until February 2007. Escobar then served in the U.S. Army from November 2007 to January 2010.
According to court documents, between 2005 and 2008, the U.S. Army, the U.S. Army Reserves and the National Guard Bureau entered into contracts with Document and Packaging Broker Inc. (Docupak) to administer recruiting bonus programs designed to offer monetary incentives to soldiers who referred others to join the U.S. military. In addition, the Army managed its own recruiting bonus programs, which offered bonuses to soldiers who referred other individuals to join the Army or the Army Reserves after registering online as recruiting assistants (RA) or sponsors. Through these recruiting programs, a participating soldier could receive up to $2,000 in bonus payments for every person he referred to serve in the U.S. military.
Bibb and Escobar admitted that they participated in a fraud scheme whereby active duty and civilian contract recruiters provided RAs and sponsors with the names and Social Security numbers of "walk-in" soldiers, which are individuals who decided to join the military without being referred by anyone. Using this information, the RAs and sponsors claimed credit for referring these potential soldiers to join the military, when in fact they did not refer them. As part of the fraud scheme, the RAs and sponsors split the bonus payments with the recruiters and others who provided the potential soldiers’ personal identifying information.
According to court documents, Bibb, Escobar and their co-conspirators received at least $244,000 in fraudulent recruiting referral bonuses in total. Bibb personally received $35,000 in fraudulent recruiting referral bonuses using RA accounts in his name and an RA account in a relative’s name. Bibb also worked with other soldiers and active duty recruiters to set up RA accounts in those soldiers’ names for the purpose of claiming fraudulent recruiting referral bonuses. Bibb, the recruiters and at least four soldiers split a total of at least $4,000 in fraudulent bonuses. Escobar permitted a co-conspirator to receive $6,000 in fraudulent recruiting referral bonuses using Escobar’s RA account and made fraudulent representations to Docupak to carry out the scheme.
This case arose from an investigation concerning allegations that former and current soldiers and military and civilian contract recruiters in the San Antonio area engaged in a wide-ranging scheme to obtain fraudulent recruiting referral bonuses. To date, 9 individuals have been charged, all of whom have pleaded guilty. The investigation is ongoing.
The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter and Sean F. Mulryne of the Criminal Division’s Public Integrity Section. The case is being investigated by agents from the San Antonio Fraud Resident Agency of the Major Procurement Fraud Unit, U.S. Army Criminal Investigation Division.
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