BALTIMORE—Keith Eugene Daughtry, age 50, of Washington, D.C., pleaded guilty today to conspiring to commit bank fraud in connection with a scheme to fraudulently obtain over $1.399 million from a Baltimore Housing Authority (BHA) bank account in just a few months.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.

According to his guilty plea, Daughtry agreed to provide his identity in a scheme to steal money from the BHA. In May of 2010, a co-conspirator used Daughtry’s identity to obtain a fraudulent driver’s license in Daughtry’s name, but bearing the co-conspirator’s photograph. The conspirators had this fraudulent driver’s license made with the co-conspirator’s photograph so that if law enforcement were to track down Daughtry through the fraudulent license’s use, Daughtry could claim that his identity had been stolen.

On May 25, 2010, the co-conspirator used the fraudulent driver’s license to open a bank account for an entity called Keith Daughtry Contracting LLC. Shortly thereafter, substantial amounts of funds illegally diverted by Daughtry’s conspirators from a BHA bank account were electronically transferred into the Daughtry LLC bank account. These transfers were unlawful because Daughtry LLC had never provided any services to the BHA requiring compensation. Investigators have determined that the conspirators were responsible for transferring at least $1,399,700 stolen from BHA’s account into Daughtry LLC’s account between July and September 2010.

The conspirators then drained these stolen funds from Daughtry LLC’s account by initiating electronic transfers from that account onto debit cards in other individuals’ names, at least one of whose identity had been stolen; through electronic transfers into accounts at other banks; and through in-person cash withdrawals from Daughtry LLC bank accounts and from automated teller machines in the Washington, D.C. area. Daughtry himself withdrew $38,550 from the fraudulent Daughtry LLC account from August 17 to September 9, 2010. Daughtry admits that he is responsible for over $1 million in losses as a result of his participation in the conspiracy.

As part of his plea agreement, Daughtry has agreed to the entry of an order to pay restitution of, and to forfeit, at least $1,399,700.

Daughtry faces a maximum sentence of 30 years in prison and a fine of $1 million or twice the gross gain or loss. U.S. District Judge William D. Quarles, Jr. scheduled his sentencing for May 22, 2012 at 1:00 p.m.

This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

United States Attorney Rod J. Rosenstein thanked the FBI for its work in the investigation and praised Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.

Conspirator Pleads Guilty in Scheme to Fraudulently Obtain Over $1.399 Million from Baltimore Housing Authority Account | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

February 8, 2012

Originally reported by Illinois Statehouse News. Read the original article here.

IL college chiefs back Quinn call for more MAP money | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHICAGO—A former software engineer for Motorola, Inc., now Motorola Solutions, Inc., a telecommunications company based in Schaumburg, was found guilty today of stealing Motorola trade secrets. The defendant, Hanjuan Jin, a naturalized U.S. citizen born in China, possessed more than 1,000 electronic and paper Motorola proprietary documents when she was stopped by U.S. customs officials as she attempted to travel on a one-way ticket to China in February 2007. The documents were later seized by U.S. customs officials at O’Hare International Airport.

Jin, 41, of Aurora and formerly of Schaumburg, was found guilty by U.S. District Judge Ruben Castillo following a five-day bench trial from Nov. 7 to 15, 2011. Jin “criminally betrayed Motorola by stealing its trade secrets,” Judge Castillo said in finding her guilty of three counts of theft of trade secrets. In a 77-page opinion, Judge Castillo found her not guilty of three counts of economic espionage for the benefit of the People’s Republic of China and its military. She faces a maximum penalty of 10 years in prison on each count of stealing trade secrets.

Jin was ordered to remain in home confinement with electronic monitoring pending sentencing, which was scheduled for April 18 in federal court. The government is seeking forfeiture of assorted computer hardware and equipment that Jin possessed in February 2007, which contained a variety of Motorola’s proprietary information.

“The verdict establishes that Jin stole valuable trade secrets from an American company, and we will do everything we can to guard our economic and national security from the theft of American trade secrets. This case is a successful example of how we can work with victim corporations to prosecute these cases while protecting the trade secrets involved,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, who announced the verdict with Robert D. Grant, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation.

According to the evidence at trial, Jin began working for Motorola in 1998, and she took a medical leave of absence in February 2006. Between June and November 2006, while still on sick leave, Jin pursued employment in China with Sun Kaisens, a Chinese telecommunications company that developed products for the Chinese military. Between November 2006 and February 2007, Jin returned to China and did work for Sun Kaisens on projects for the Chinese military. During this same period of time, Jin was given classified Chinese military documents by a Sun Kaisens employee to review in order to better assist with the Chinese military projects. After receiving these documents, Jin agreed to review the documents and provide assistance.

On Feb. 15, 2007, Jin returned to the United States from China. On Feb. 22, 2007, Jin reserved a one-way ticket to China for a flight scheduled to depart on Feb. 28, 2007. The following day, on Feb. 23, 2007, Jin advised Motorola that she was ready to end her medical leave and return to work at Motorola, without advising that she planned to return to China to work for Sun Kaisens.

On Feb. 26, 2007, Jin returned to Motorola, purportedly to resume full-time work, and was given no assignments by her supervisor. Between 9 a.m. and 2 p.m., Jin accessed more than 200 technical documents belonging to Motorola on its secure internal computer network. At about 9 p.m. that night, Jin returned to Motorola and downloaded additional documents. At approximately 12:15 a.m. on Feb. 27, 2007, Jin was recorded twice leaving a Motorola building with hard copy documents and other materials.

During the day on Feb. 27, 2007, Jin sent an e-mail to her manager in which she appeared to volunteer for a layoff at Motorola. At about 10 p.m. that night, she returned to Motorola’s offices and downloaded numerous additional technical documents. Jin was later recorded leaving a Motorola building with what appeared to be a laptop computer bag.

As she attempted to depart on Feb. 28, 2007, from O’Hare bound for China, authorities seized numerous materials, some of which were marked confidential and proprietary belonging to Motorola. Some of the documents provided a detailed description of how Motorola provides a specific communication feature that Motorola incorporates into its telecommunications products sold throughout the world. At the same time, authorities recovered multiple classified Chinese military documents written in the Chinese language that described certain telecommunication projects for the Chinese military. Many of these documents were marked “secret” by the Chinese military. Authorities also recovered approximately $30,000 in U.S. currency that was in six different envelopes, each containing $5,000, all in hundred dollar bills.

The government is being represented by Assistant U.S. Attorneys Steven Dollear, Sharon Fairley, and Christopher Stetler.

Suburban Chicago Woman Convicted of Stealing Trade Secrets from Motorola Before Attempting to Travel to China | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Earlier today, defendant Ramanan Mylvaganam pleaded guilty before United States District Judge Raymond J. Dearie to conspiring to provide material support to a foreign terrorist organization, the Liberation Tigers of Tamil Eelam (“LTTE”), in connection with his attempt to procure sophisticated technology, including submarine design software and night vision equipment, for the LTTE. Mylvaganam faces a maximum term of 15 years’ imprisonment. Five of Mylvaganam’s co-defendants previously pleaded guilty to terrorism-related offenses in connection with their support for the LTTE.

Mylvaganam’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; and Janice K. Fedarcyk, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.

As detailed in previously filed court documents and the defendant’s plea allocution, in March 2006, Mylvaganam conspired to purchase approximately $22,000 worth of submarine design software for the LTTE from a United Kingdom company. Mylvaganam also attempted to purchase night vision equipment for the LTTE from a company in British Columbia, Canada. To deceive this company, Mylvaganam falsely told its representative that the night vision equipment was for “a fourth year design project we are doing at our university.” Mylvaganam also assisted a co-conspirator in purchasing computer equipment, electronics components and communications equipment for the LTTE. Mylvaganam, a Canadian citizen who previously lived in the United States, was extradited from Canada in 2009, following his indictment in the Eastern District of New York.

The LTTE was founded in 1976 and uses illegal methods to raise money, acquire weapons and technology, and publicize its cause of establishing an independent Tamil state in northern Sri Lanka. The LTTE began its armed conflict against the Sri Lankan government in 1983, and utilizes a guerrilla strategy that often includes acts of terrorism. At its height, the LTTE controlled most of the northern and eastern coastal areas of Sri Lanka. Over the past 19 years, the LTTE has conducted approximately 200 suicide bombings, resulting in the deaths of hundreds of victims, and carried out numerous political assassinations, including the May 1991 assassination of former Indian Prime Minister Rajiv Gandhi, the 1993 assassination of the President of Sri Lanka, Ranasinghe Premadasa, the July 1999 assassination of Neelan Thiruchelvam, a member of the Sri Lankan parliament, the June 2000 assassination of C.V. Goonaratne, the Sri Lankan Industry Minister, the August 2006 assassination of the Sri Lankan government’s peace secretariat, Ketheshwaran Loganathan, the January 2008 assassination of Sri Lankan Minister for Nation Building, D.M. Dassanayake, and the April 2008 assassination of Sri Lankan Highways Minister, Jeyaraj Fernandopulle.

In 1997, the LTTE was designated by the U.S. State Department as a Foreign Terrorist Organization, and the LTTE therefore may not legally raise money or procure equipment or materials in the United States. In May 2009, the LTTE’s forces in Sri Lanka were defeated by the Sri Lankan government.

“The defendant conspired to provide sophisticated technological equipment to the LTTE, a foreign terrorist organization that has carried out brutal acts of violence against numerous civilians and elected officials,” stated United States Attorney Lynch. “We will use all resources at our disposal to bring terrorist organizations and their supporters to justice.”

“Material support here for foreign terrorist organizations can have lethal consequences. That is why the FBI takes seriously the responsibility to prevent it and do all we can to protect the safety of people around the globe,” stated FBI Assistant Director in Charge Fedarcyk.

The government’s case is being prosecuted by Assistant U.S. Attorney Ali Kazemi. The United States Attorney’s Office for the Western District of Washington also provided assistance in this case.

The Defendant:

RAMANAN MYLVAGANAM Age: 35

Canadian Man Pleads Guilty to Conspiring to Provide Material Support to the Liberation Tigers of Tamil Eelam | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

NEWARK, NJ—A former bank employee was arrested this morning and charged with stealing $1.8 million from her employer and concealing the thefts while acting as the victim’s executive assistant, U.S. Attorney Paul J. Fishman announced.

Karen R. Febles, 47, of Palisades Park, N.J., was arrested at her home by agents of the IRS and FBI and charged by complaint with one count each of bank fraud and money laundering. She was scheduled to make her initial appearance later in the day before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.

According to the criminal complaint:

From at least 2000 through September 2011, Febles worked as an executive assistant for a bank in New York City. Her duties included assisting the victim, a retired employee of the bank, with his personal and professional finances. As part of her employment, Febles routinely prepared and negotiated checks on behalf of the victim. Febles was terminated by the bank in September 2011.

A review of the victim’s bank records show that between 2007 and September 2011 at least $1.8 million of the victim’s funds was debited from his bank accounts without the victim’s authorization. A review of checks written by Febles revealed the checks had been altered—after they had been signed by the victim—to add additional sums of money. Once issued, Febles negotiated many of the checks, in cash, for the altered amount. During that time, Febles had more than $1 million in unexplained deposits and expenditures in bank accounts she controlled. More than $400,000 in cash was deposited into bank accounts held by Febles during this time. Checks drawn directly off of the victim’s accounts, totaling at least $470,000, were deposited directly into bank accounts held by Febles during this time.

Febles also purchased a Range Rover with $52,720 in cash, a Mercedes-Benz with $34,650 in cash (both of which were seized at the time of her arrest), and spent approximately $45,000 on vacation cruises, more than $100,000 on real estate-related expenses, more than $20,000 on other automobile payments and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never made more than $93,000 in legitimate income.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn Zuniga in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorneys Aaron Mendelson of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.

The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Anyone who has information which may be relevant to this case is encouraged to contact the Newark Division of the FBI at 973-792-3000.

Defense counsel:
Chester Keller Esq., First Assistant Federal Public Defender, Newark

Former Bank Worker Charged with Stealing and Concealing More Than $1.8 Million from Employer | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Originally reported by Illinois Statehouse News. Read the original article here.

Prepaid tuition to stay afloat, even if that means bailout, director says | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—The Department of Justice announced today that three men were sentenced for a federal hate crime stemming from an incident that took place at Beekman Junior High School in Beekman, Morehouse Parish, Louisiana. U.S. Magistrate Judge Karen Hayes sentenced James Lee Wallis Jr. to eight months in prison, Tony L. Johnson to six months in prison, and Brian Wallis to five months in prison. All three defendants will also receive one year of supervised release and must attend a cultural diversity and sensitivity program.

On Aug. 12, 2011, defendant Johnson pleaded guilty to intentionally attempting to intimidate and interfere with African-American students who were attending Beekman Junior High School. Brothers Brian Wallis, 21, and James Lee Wallis Jr., 25, pleaded guilty to the same offense on Sept. 2, 2011. During their respective plea hearings, all three defendants admitted that they hung a dead raccoon in a noose from a flagpole located in front of Beekman Junior High School. They each further admitted that they were angered by the school’s new busing policy, which had increased the number of African-American children attending the school, and that they wanted to scare the African-American children into leaving the school.

“Every child, regardless of race, is entitled to an education free from intimidation or discrimination,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Unfortunately, acts of hate such as this one are all too common in this country in 2012. The Justice Department will continue to enforce our nation’s civil rights laws in order to protect the most vulnerable in our society.”

“There is no place in our schools for this kind of intimidation,” said Stephanie A. Finley, U.S. Attorney for the Western District of Louisiana. “Every child has the right to an education and to feel safe in school. I hope this case sends a message that this type of activity will not be taken lightly.”

This case was investigated by the FBI and prosecuted by Senior Litigation Counsel Mark Blumberg and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Mary J. Mudrick for the Western District of Louisiana.

Three Men Sentenced for Attempting to Intimidate African-American Students at a Louisiana Middle School | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CHARLOTTE, NC—A Charlotte woman was sentenced yesterday in U.S. District Court to serve 34 months in prison to be followed by three years of supervised release for committing health care fraud, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney also ordered Darlene Hughes, 53, of Charlotte, to pay total restitution in the amount of $194,436.61.

U.S. Attorney Tompkins is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region, and Chris Briese, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.

In August 2010, Hughes entered a plea of guilty to one count of health care fraud. According to a federal criminal bill of information and plea documents, Hughes stole the name and license of a speech therapist and falsely and fraudulently held herself out to be a licensed speech therapist. Hughes then obtained employment as a speech therapist at two local nursing homes and assisted living facilities who relied upon her misrepresentations. According to filed court documents and statements made in court, Hughes’ fraud caused those facilities to submit hundreds of claims to Medicare for services which Hughes was not qualified to provide, defrauding the facilities and Medicare of more than $142,000.

In issuing the sentence in this case, Judge Whitney noted that the scheme to defraud involved a “level of sophistication and skill of deceit that is pretty overwhelming.”

Hughes has been on release since entering her guilty plea in August 2010 and was permitted to self-report to the Federal Bureau of Prisons upon designation of a facility. Federal sentences are served without the possibility of parole.

The investigation was led by HHS-OIG with the assistance of the FBI. The prosecution for the government was handled by Assistant U.S. Attorneys Melissa Rikard and Kelli Ferry of the U.S. Attorney’s Office in Charlotte.

If you suspect Medicare or Medicaid fraud, please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or e-mail at HHSTips@oig.hhs.gov.

Charlotte Woman Sentenced to 34 Months in Prison for Health Care Fraud | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

NEWARK, NJ—Ronald J. O’Malley, former chairman and commissioner of the Bergen County Improvement Authority (“BCIA”) and principal in a Ridgewood, N.J., mortgage brokerage firm, was sentenced today to 24 months in prison in connection with a mortgage fraud scheme that falsely claimed BCIA employment for numerous mortgage borrowers, U.S. Attorney Paul J. Fishman announced.

O’Malley, 48, of Upper Saddle River, N.J., was a founder and co-owner of Diversified Financial Group, d/b/a Residential Mortgage Corporation (“Residential Mortgage”). Former Residential Mortgage employee Laura-Jean Arvelo, 52, of River Vale, N.J., also was sentenced today, to a two-year term of probation.

Both defendants previously pleaded guilty to a count of conspiracy to commit wire fraud. The defendants admitted that they conspired with each other; Residential Mortgage co-owner Edward Olimpio, 48, of Boonton, N.J.; two other Residential Mortgage employees, Daniel Gilmore, 31, of Hackensack, N.J., and Rachell Fischbein, 30, of River Edge, N.J.; and others to commit wire fraud in connection with fraudulent mortgage and home equity loans brokered by Residential Mortgage between 2006 and 2009. Both entered guilty pleas before U.S. District Judge Dennis M. Cavanaugh, who also imposed the sentences today in Newark federal court.

According to the indictment, other documents filed in this case, and statements made in court:

The participants in the mortgage fraud scheme falsely represented on mortgage loan applications and other documents that certain borrowers were employed by the BCIA when they were not. In support of the false representations, O’Malley and his coconspirators arranged for the BCIA staff to falsely confirm the borrowers’ employment to banks and other mortgage lenders calling to verify the information. O’Malley and his co-conspirators also created and arranged for the creation of false and fraudulent BCIA paystubs and W-2 forms, which were also submitted to lenders.

O’Malley and his coconspirators also made false representations regarding borrowers’ employment at places other than the BCIA, and created similar false documentation in support of such claims. The coconspirators also created false asset information for borrowers, including by taking O’Malley’s own bank and brokerage account statements and “cut-and-pasting” a borrower’s name and address over his own. They also prepared phony leases showing fake rental income for borrowers.

In addition to the prison term, Judge Cavanaugh sentenced O’Malley to three years of supervised release and ordered him to pay a $25,000 fine.

Olimpio, Fischbein, and Gilmore previously entered guilty pleas before U.S. District Judge Susan D. Wigenton, admitting to conspiring with O’Malley, Arvelo, each other, and others to commit wire fraud in connection with the scheme. They await sentencing.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael Ward, and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn S. Zuniga, with the investigation.

The government is represented by Assistant U.S. Attorney Rachael A. Honig, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Christine I. Magdo in Newark.

Defense counsel:
O’Malley: Justin P. Walder Esq., Roseland, N.J.
Arvelo: Joseph Rem, Esq. Hackensack, N.J.

Former BCIA Chairman and Principal in New Jersey Mortgage Brokerage Firm Sentenced to Prison in Mortgage Fraud Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Federal Reserve Bank of Chicago Announces 2012 Money Smart Kid Essay Contest | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

TAMPA, FL—United States Attorney Robert E. O’Neill announces the indictment and arrest of Belinda Brooks (46, Tampa) for tax fraud related activities. Brooks has been charged in a 17-count indictment. The charges include one count of filing a false tax return, six counts of theft of government property in the form of tax refunds, six counts of aggravated identity theft, three counts of making false claims in the form of fraudulent tax returns, and three counts of identity theft. The maximum federal prison sentence for each of the counts is as follows: 10 years for theft of government property, two years consecutive to any other sentence for aggravated identity theft, five years for making a false claim, and 15 years for identity theft. The indictment also notifies Brooks that the United States intends to forfeit any assets, including money, which are alleged to be traceable to proceeds of the offenses.

The indictment alleges that in addition to filing her own false tax return, Brooks stole the names and Social Security numbers of other individuals in order to file fraudulent tax returns in their names and obtain tax refunds for the tax years 2008 and 2009.

An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.

This case is part of Operation Rainmaker, a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida and various federal and local law enforcement agencies, including the U.S. Secret Service, IRS, United States Postal Inspection Service, the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff’s Department to combat the filing of false tax returns in the Tampa Bay region.

Tampa Woman Arrested for Tax Fraud and Identity Theft | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Tips from the public have helped investigators identify and charge the so called “Tall, Dark, and Handsome Bandit.” Now the FBI needs your help in locating fugitive John “Steven” Stark.

Stark is charged federally with bank robbery in the United States District Court, Eastern District of Texas. He’s charged with robbing the Bank of America, located at 2625 Calder in Beaumont, Texas, on January 30, 2012. He is also wanted for questioning in the robbery of the Comerica Bank, address 3135 Southwest Freeway in Houston, Texas, on Thursday, February 2, 2012.

During the Beaumont bank robbery, Stark is alleged to have passed a threatening note to tellers, and never spoke. In the more recent Houston robbery, the bank robber also handed a teller a threatening note which demanded money. No one was physically hurt during either robbery.

Stark, goes by Steven Stark. He is a white male, 46 years old, 6’ tall, and weighs approximately 230 pounds. He was last known to be driving a silver 2006 Toyota Corolla four-door sedan bearing Texas license plate 699XPW. His last known address was located in Liberty County, Texas. He is also known to have friends and associates in the Beaumont and Houston, Texas areas.

Crime Stoppers of Houston is offering up to $5,000 for information leading to the location and arrest of Stark. If you have information about Stark, please call the Crime Stoppers Tip Line at 713-222-TIPS (8477), or the Houston office of the FBI at 713-693-5000.

Stark is currently being featured as a wanted fugitive on Clear Channel Outdoor digital billboards in the Houston area.

Wanted by the FBI: John “Steven” Stark, aka “Tall, Dark, and Handsome Bandit” | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—A Baton Rouge area-resident pleaded guilty today for his role in a Medicare fraud scheme involving false claims for unnecessary durable medical equipment (DME), announced the Department of Justice, the FBI, the Department of Health and Human Services (HHS) and the Louisiana State Attorney General’s Office.

Rodney D. Taylor, 45, pleaded guilty before U.S. District Judge James J. Brady of the Middle District of Louisiana to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and to pay and receive health care kickbacks.

According to court documents, Taylor worked as a recruiter for Healthcare 1 LLC, Medical 1 Patient Services LLC and Lifeline Healthcare Services Inc., Louisiana-based companies that fraudulently billed DME to the Medicare program from 2004 to 2009. He and other recruiters were hired to obtain prescriptions for DME such as leg braces, arm braces, power wheel chairs and wheel chair accessories. Taylor obtained information from Medicare beneficiaries as well as prescriptions for medical equipment from the beneficiaries’ physicians. Taylor then sold these prescriptions so they could be used by Healthcare 1, Medical 1 Patient Services and Lifeline Healthcare Services to submit fraudulent claims to the Medicare program.

The indictment alleges that from 2004 to 2009 Medicare was billed more than $21 million as part of this conspiracy.

Taylor faces a maximum penalty of 15 years in prison and a $500,000 fine. A sentencing date has not yet been set.

Today’s plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Donald J. Cazayoux Jr. of the Middle District of Louisiana; Mike Fields, Special Agent in Charge of the Dallas Region for the HHS Office of the Inspector General (HHS-OIG); David Welker, Special Agent in Charge of the FBI’s New Orleans Division; and Louisiana State Attorney General James Buddy Caldwell.

The case is being prosecuted by Trial Attorneys David Maria and Abigail Taylor and Assistant Chief William Pericak of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana.

Since its inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,160 defendants that collectively have billed the Medicare program for more than $2.9 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.

Louisiana Patient Recruiter Pleads Guilty in Health Care Fraud Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Timothy Bek, 25, of West Seneca, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison up to a maximum of life, a $250,000 fine, or both.

Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that the defendant, a former teacher at a number of area schools, posed as a female teenager on a social networking website. Bek used the fictitious identity to make contact with underage victims, some of whom were students in the schools where Bek taught. Once contact was made, the defendant persuaded the victims to take explicit photos and videos of themselves. The defendant further convinced the victims to send these images over the Internet and via text messaging. The images of these underage victims were subsequently found on computers owned by the defendant.

The images were discovered by law enforcement during the execution of a search warrant in connection with the arrest of the defendant’s brother, Jason Bek. In December 2011, Jason Bek pleaded guilty to coercion and enticement of a minor and receipt of child pornography and is awaiting sentencing in April 2012.

“This case is a good example of why it is so important for parents to discuss online safety with their children,” said U.S. Attorney Hochul. “All students at both the elementary and high school levels need to know of the potential dangers lurking online. While our office will continue to work with our federal, state, and local law enforcement partners to prosecute these crimes, both parents and students should know that their best defense is simply not to send explicit pictures over the Internet.”

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

The plea is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, Cyber Crime Task Force, under the direction of Special Agent in Charge Christopher M. Piehota; the West Seneca Police Department, under the direction of Chief Edward Gehen; the Cheektowaga Police Department, under the direction of Chief David Zack; and the Niagara County Sheriff’s Department, under the direction of Sheriff James Votour. CEOS Attorney Keith Becker assisted in the prosecution of the case.

Sentencing is scheduled for May 23, 2012, at 12:30 p.m. EST, in Buffalo, N.Y., before Judge Arcara.

Former Teacher Pleads Guilty to Production and Possession of Child Pornography | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

BALTIMORE—U.S. District Judge Catherine C. Blake sentenced Ralph Edward Thomas, Jr., age 53, of Reisterstown, Maryland, today to four years in prison followed by three years of supervised release for mail fraud in connection with defrauding his clients. Judge Blake also ordered Thomas to pay $838,350.34 in restitution, the amount of loss suffered by his clients, and to forfeit property in order to pay such amount, including funds held in investment accounts owned by Thomas, his home in Reisterstown and luxury automobiles.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.

According to Thomas’ plea agreement, a trust account was established in 1994 to benefit a child suffering from cerebral palsy. The child’s mother was appointed as the trustee. The trust account was funded by the proceeds of a $3 million medical malpractice settlement, which were used to buy an annuity. The annuity was supposed to pay the child a minimum of $3,990 a month.

Thomas was a vice president of Harbor Financial Services, a subsidiary of Harbor Bank. After meeting the child’s mother at Harbor Bank in December 2001, Thomas established complete control over the child’s trust account, which was moved to the Harbor Bank. From December 17, 2001 through June 30, 2010, the annuity payments were deposited directly into the trust account. Although the annuity payments averaged $6,287.53 per month, Thomas disbursed only $1,000 to $1,500 a month from the trust account to the mother for the care of the child. He withdrew the remaining monthly balance by obtaining the mother’s signature on blank withdrawal slips, and deposited the funds into his personal bank accounts. Thomas withdrew a total of $756,963.98 from the trust account which he used for his personal benefit. Thomas purchased a home in Reisterstown, Maryland on July 30, 2009 using $100,000 of the stolen funds.

Furthermore, from June 2006 to May 2009, Thomas obtained three mortgages totaling $205,000 on the mother’s home in her name without her permission. As a result, the mother incurred $26,886.36 in closing costs and losses. Thomas also stole $12,500 from the mother’s personal account held at Harbor Bank.

Finally, from February 2004 through July 2010, Thomas was employed as a financial adviser by Wells Fargo Advisors, LLC. Thomas admits that $75,000 was fraudulently withdrawn from an account held by an elderly Wells Fargo customer. Of the $75,000 withdrawn, $42,000 was used to pay Thomas’ personal credit card accounts or other personal benefits.

United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who prosecuted the case.

Baltimore Financial Adviser Sentenced in Scheme to Defraud Vulnerable Clients of $838,350 | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging members of an alleged drug trafficking conspiracy with supplying large amounts of cocaine and marijuana from Arizona to the Buffalo area. Two of the defendants are also charged with money laundering. The narcotics charge carries a mandatory minimum penalty of 10 years in prison, and a maximum of life, a $10,000,000 fine, or both, while the money laundering offense is punishable up to 20 years in prison, a $250,000 fine, or both.

The charged defendants are identified as Jordan Ali, formerly of Alden, N.Y, but now residing in Tempe, Arizona; Shane Grafman, of Prescott, Arizona; Jason Nati, of Buffalo, N.Y.; Elijah Chaffino, of Tempe Arizona; and Jacquelyn Witman, formerly of Buffalo, N.Y., but now residing in the Atlanta, Georgia area.

According to Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, the Indictment alleges that between 2004 and February 2011, the defendants conspired to possess with intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana. The defendants are alleged to have obtained the narcotics in the State of Arizona, and to have thereafter utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates, and United States Postal Service parcels.

During the course of the conspiracy, law enforcement seized approximately $1 million in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Shane Grafman; $21,150 seized from Jacquelyn Witman at the Buffalo Niagara International Airport; and $299,950 from a vehicle located in Apache County, Arizona.

The investigation culminated in Jordan Ali’s arrest, on January 31, 2012, in Buffalo, when he arrived to collect money for marijuana the group had recently shipped to Buffalo in United States Postal Service parcels. Law enforcement agents had intercepted and seized these parcels prior to the marijuana being distributed in the Buffalo area. Elijah Chaffino was arrested this week in Arizona. The remaining defendants have not been arrested as of yet and are at large.

Defendants Jordan Ali and Shane Grafman are also charged with money laundering conspiracy.

“This case is yet another example of the exceptional skill and team work of this area’s law enforcement community,” said U.S. Attorney Hochul. “In this case, substantial quantities of narcotics were recovered before they could reach our streets. The fact that authorities also seized almost one million dollars in suspected illicit proceeds means that the possible profit from these crimes has also now been removed from those who engaged in the offenses.”

The Indictment is culmination of investigation by the Drug Enforcement Administration, under the direction of Wilbert L. Plummer, Acting Special Agent in Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; Internal Revenue Service, under the direction of under the direction Special Agent in Charge Charles R. Pine; United States Postal Service Inspection Service, under the direction of Inspector in Charge Robert Bethel; Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff’s Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff’s Department; and Oklahoma State Police.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

Members of Arizona to Buffalo Drug Trafficking Organization Indicted | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

LAREDO, TX—Eduardo Garcia, a former Webb County deputy constable, has been sentenced to five years in federal prison for interference with commerce under color of official right, a violation of the Hobbs Act, United States Attorney Kenneth Magidson announced today.

On Sept. 28, 2011, Garcia pleaded guilty to one count of interference with commerce under color of official right, admitting he escorted a vehicle he believed to have been loaded with one kilogram of cocaine. On Oct. 22, 2011, Garcia, driving a Webb County Prisoner transport van, met and followed the “load vehicle” driven by a confidential source from the “Los Presidentes” area on Loop 20 to the Doctor’s Hospital parking lot in Laredo. At the conclusion of the escort, Garcia was paid $500 in cash. At the time, Garcia was wearing his law enforcement badge on his belt.

Garcia also escorted another vehicle he believed had been loaded with one kilogram of cocaine on Nov. 21, 2008. Driving his personal vehicle, Garcia escorted a vehicle which he believed to be carrying approximately one kilogram of cocaine starting from the Conoco gas station near the intersection of Loop 20 and Highway 359 in Laredo. During the escort, Garcia called the confidential source to warn him that there was a suspicious vehicle in the area and to advise to exit Loop 20. However, the confidential source continued to drive the pre-planned route and, at the conclusion of the escort, once again paid Garcia $500 in cash.

In actuality, the vehicle had been loaded with a “brick” of sham cocaine on both occasions. Garcia’s job during the escorts was to keep an eye out for legitimate law enforcement which would be identified as “uglies” or “bad guys,” and to alert the driver of the load vehicle.

Today, U.S. District Judge George P. Kazen sentenced him to 60 months’ imprisonment to be followed by a three-year-term of supervised release in addition to a $3,000 fine. Garcia was allowed to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

The case was investigated by the FBI and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorneys Roberto F. Ramirez and Elizabeth R. Rabe.

Former Webb County Deputy Constable Sentenced to Five Years | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—Teresa Witthar, 43, of Independence, Mo., pleaded guilty today in U.S. District Court in Kansas City to federal hate crime charges in connection with the vandalism and arson of a bi-racial man’s mobile home in 2006.

Witthar was indicted by a federal grand jury in August 2011 on one count of conspiracy, one count of violating the Fair Housing Act, one count of using fire to commit a felony, two counts of obstruction of justice, and two counts of making false statements for her role in the vandalism and fire of Nathaniel Reed’s mobile home. Witthar entered a guilty plea to one count of conspiracy, one count of violating the Fair Housing Act and one count of obstruction of justice.

According to the indictment, in the summer of 2006, Witthar, Charles Wilhelm, and David Martin conspired to intimidate and scare Nathaniel Reed, a bi-racial man, into moving out of the Highland Manor Mobile Home Park in Independence, Mo., in part because of his race. On or about June 6, 2006, Witthar, along with Wilhelm and Martin, entered Reed’s mobile home without his permission and vandalized it by writing at least 15 racially derogatory slurs on the walls of his trailer. Two days later, Witthar drove Martin and Wilhelm to a neighbourhood behind Reed’s mobile home so that they could set fire to Reed’s trailer without being detected. Witthar waited in her vehicle while they set the fire and then provided them a ride back to the Highland Manor Mobile Home Park.

In the spring of 2011, Witthar unsuccessfully attempted to persuade another individual to testify falsely in front of a grand jury about her role in the vandalism and fire.

“Every American has the right to enjoy their home free from racially motivated violence, threats and intimidation,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division of the United States Department of Justice. “The Civil Rights Division will aggressively prosecute those who violate this right.”

“When threats and vandalism failed to drive their victim out of the neighborhood, these conspirators escalated their racially motivated campaign by burning down his home,” said Beth Phillips, U.S. Attorney for the Western District of Missouri. “The Constitution protects each of us from racially motivated intimidation, and this defendant will be held accountable for violating Mr. Reed’s civil rights.”

“Today’s guilty plea exemplifies the FBI’s continued long term commitment to aggressively pursue justice for those who are victims of racially motivated crimes,” said Brian A. Truchon, Special Agent in Charge of the Kansas City Division of the FBI.

The guilty plea was the result of a cooperative effort between the U.S. Attorney’s Office for the Western District of Missouri, the Civil Rights Division of the Department of Justice, and the Kansas City Division of the FBI. The case is being prosecuted by First Assistant U.S. Attorney David Ketchmark for the Western District of Missouri and Trial Attorney Sheldon L. Beer of the Civil Rights Division’s Criminal Section.

Missouri Woman Pleads Guilty to Role in the Vandalism and Arson of a Mobile Home | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Lori J. Macakanja, 35, of Dunkirk, New York, who was convicted of mail fraud and theft of government money, was sentenced to 72 months in prison and three years’ supervised release by U.S. District Court Judge Richard J. Arcara. Judge Arcara also ordered the defendant to pay $298,639.00 in restitution to the victims.

Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that Macakanja, in her capacity as a housing counselor employed by HomeFront, Inc., inappropriately requested money from clients. The defendant told HomeFront clients that the money would be used toward loan modifications to prevent foreclosure on their homes. However, after receiving the funds, Macakanja used the money for her own personal use, including gambling, and failed to obtain the loan modifications for the victims. A total of 136 HomeFront clients were defrauded with losses totaling approximately $300,000. In addition, Macakanja also obtained federal grant monies from the Buffalo Urban Renewal Agency (BURA) for HomeFront clients. On two occasions, she diverted $2,000 worth of BURA money to pay her own personal mortgage.

“Many Americans are struggling to hold on to the American dream, ownership of a home,” said U.S. Attorney Hochul. “The victims turned to the defendant for help in keeping their home. Instead, the defendant abused their trust and stole their money. Unfortunately, because of the defendant’s actions, some of the victims lost their homes. Our office, along with our federal law enforcement partners, will work vigorously to protect federal funding targeted to help those who are struggling. We will also continue to prosecute those, like this defendant, who attempt to take advantage of those who are most vulnerable.”

“Lori Macakanja abused her position and violated the trust of distressed homeowners in the interest of personal gain,” said Cortez Richardson, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General New York Region. “Her actions further jeopardized the assets of the Federal Housing Administration and unnecessarily complicated the lives and financial security of individuals already feeling the adverse impact of a volatile housing crisis. Today’s judicial action signals HUD’s Office of Inspector General’s firm commitment to working with our law enforcement partners to investigate and prosecute any individuals seeking to profit illegally from the nation’s mortgage crisis.”

“Macakanja preyed on the most vulnerable homeowners,” said Christy Romero, Deputy Special Inspector General for SIGTARP. “While an employee of a federally approved housing counselor, she illegally solicited and received payments from 136 homeowners facing foreclosure with the promise that the funds would be used to secure mortgage modifications. Little did the homeowners know, the payments were being used by Macakanja to support her gambling habit and to pay her own mortgage. SIGTARP will aggressively investigate and pursue those who exploit the federal government’s aid to homeowners under TARP and, with the help of its partners in law enforcement, ensure that they are brought to justice.”

SIGTARP investigates fraud, waste, and abuse related to HAMP and all other TARP-funded programs. HAMP encourages loan servicers and investors to modify mortgages to reduce the monthly payments of homeowners who are risk of default. There is no fee to homeowners to apply for a modification under HAMP.

The plea is the result of an investigation by the Mortgage Fraud Task Force of WNY, which includes agents and personnel from the U.S. Postal Inspection Service under the direction of Inspector in Charge Robert Bethel; the Housing and Urban Development Office of Inspector General, under the direction of Cortez Richardson, Special Agent in Charge, New York Region; SIGTARP, under the direction of Special Agent in Charge John Feiter; the United States Secret Service under the direction of Special Agent in Charge Tracy Gast; the Federal Bureau of Investigation under the direction of Special Agent in Charge Christopher M. Piehota; and the Internal Revenue Service under the direction of Special Agent in Charge Charles R. Pine. The Mortgage Fraud Task Force of WNY is led by the U.S. Attorney’s Office and also includes Veterans Affairs Office of Inspector General and the U.S. Bankruptcy Trustee.

Defendant Sentenced for Stealing from 136 Housing Clients | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Michael Howard, age 43, former chief of police in Talbotton, Georgia entered a plea of guilty to a one-count indictment charging him with false statements, in violation of Title 18 United States Code, Section 1001.

During his guilty plea, Howard admitted that on or about June 22, 2011, he did knowingly and willfully make a false, fraudulent, and fictitious material statement and representation to a federal agent by denying that he was aware that a known drug dealer had transported narcotics through Talbot County, Georgia. The informant told Howard he had $15,000.00 and would be traveling through Talbot County for a drug transaction, asking if Howard would be interested in helping him by providing cover. Howard expressed interest in the transaction, but declined due to the fact that he was off duty and not wearing his uniform, and therefore would not be of any assistance. Howard, however, told the FBI that he had not been shown the money, which was false and he knew the statement to be false.

The defendant faces a maximum penalty of a five years’ imprisonment, a fine of up to $250,000.00, or both, and up to three years’ supervised release, and a mandatory assessment fee of $100.00. Sentencing is scheduled for April 25, 2012.

U.S. Attorney Michael Moore stated, “No one is above the law. The public trust that those who wear the badge uphold is sacred, and violations of that trust are inexcusable and will be prosecuted.”

Brian D. Lamkin, Special Agent in Charge, FBI Atlanta Field Office, stated: “Former Chief Howard chose to lie to federal investigators during a broad investigation wherein four other area law enforcement officials have already been indicted. This conduct cannot be condoned and the FBI will continue to aggressively pursue such matters to ensure that the public trust of its law enforcement officers is not compromised”.

Harry S. Sommers, Special Agent in Charge of the Drug Enforcement Administration Atlanta Field Division stated, “The vast majority of law enforcement officers serve the public with honor and distinction. This type of activity tarnishes the badge of the committed men and women of law enforcement.”

The investigation was conducted by agents of the Federal Bureau of Investigation, Drug Enforcement Administration, and the Georgia Bureau of Investigation

Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.

Former Talbotton Police Chief Admits Making False Statements to Federal Agent | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.