David B. Fein, United States Attorney for the District of Connecticut, today announced that Ernest Harold, also known as “Nesto,” 21, of New Haven, was sentenced yesterday by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.

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

According to court documents and statements made in court, from August through September 2010, Harold was repeatedly intercepted over a wiretap ordering distribution quantities of crack cocaine from other members of the drug trafficking organization. He then sold the crack to his own customers for profit.

On January 18, 2012, Harold pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).

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

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

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

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

New Haven Man Sentenced to 30 Months in Federal Prison for Distributing Crack | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

ALEXANDRIA, VA—Hamada Makarita, 50, of Oakton, Virginia, has been charged in a 15-count indictment of using his position as a dentist to illegally distribute prescription pills to patients, employees, and women he dated. He was also charged with allegedly using the identity of another dentist to fraudulently bill an insurance company of more than $160,000 in claims.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.

Makarita was charged with conspiracy, health care fraud, aggravated identity theft, and 12 counts of dispensing controlled substances. If convicted, he faces a maximum penalty of 10 years in prison on the health care fraud charge, 20 years in prison for conspiracy on each dispensing controlled substances charge, and a consecutive two-year sentence for the aggravated identity theft charge.

According to the indictment, Makarita owns and operates a dental practice in Oakton, Virginia and advertised online at www.fixasmile.com. The indictment alleges that from about 2007 to 2012, Makarita distributed and dispensed thousands of dosages of prescription medicine to patients, employees, and girlfriends, all without a legitimate dental purpose and beyond the bounds of a dental practice. Makarita allegedly asked those who received the prescriptions he issued to return to him some or all the prescribed medicine. On numerous occasions, Makarita would distribute prescription pills to patients and girlfriends in social settings and for prurient purposes, including for consensual and non-consensual sex.

In addition, the indictment alleges that Makarita provided more than $160,000 in services to his family members and billed them to an insurance provider in violation of the provider’s contract. He allegedly billed the services under the name of another dentist who did not practice in Makarita’s office at that time. Makarita received more than $91,000 in reimbursement from the provider for these fraudulent claims.

The investigation was conducted by the FBI’s Washington Field Office. Special Assistant United States Attorney Mazen Basrawi is prosecuting the case on behalf of the United States.

This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation (Operation Cotton Candy), which has been focusing on the illegal distribution by numerous doctors, pharmacists, nurses, and patients of pain medication. This OCDETF matter has secured more than 200 drug-trafficking convictions and guilty pleas.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.

Oakton Dentist Indicted for Alleged Illegal Distribution of Prescription Medicine, Health Care Fraud, and ID Theft | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

The FBI announces the arrest of Ryan Snider, 24, of Canada, in connection with an incident on American Airlines flight 320 inbound to Miami International Airport (MIA) today in which Snider allegedly rushed toward the front of the plane after it had landed.

There were no injuries or damage to the plane. There appears to be no nexus to terrorism and Snider was not on the “No-Fly” list.

Snider is in federal custody and is expected to face federal charges, which may include interference with a flight crew. It is anticipated that his initial appearance will be Tuesday in federal court in Miami, Florida.

The FBI, ICE, ATF, FAMS, U.S. Border Patrol, and Miami Dade PD continue their investigation. No further information will be released at this time.

Suspect Arrested Following Incident at Miami National Airport | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

By Jayette Bolinski | Illinois Statehouse News

SPRINGFIELD — Illinois and federal authorities are seeking millions of dollars from a Chicago-area company that allegedly filed nearly 60,000 false Medicaid claims since late 2004.

Authorities say Universal Transportation II LLC, which does business as Med Star Medicar, is liable for $6.7 million, which includes the loss from the false claims, as well as damages and penalties.

Representatives of Universal Transportation could not be reached Friday. A phone number listed on the Internet is out of order, and no website could be found for the company, which has an Evanston address, according to court documents. It has not responded to the lawsuit, so it is unclear if it has an attorney.

The complaint originally was filed in August in U.S. District Court in Springfield. On May 9, U.S. Magistrate Judge Byron Cudmore entered a default order against Universal after it failed to respond to the lawsuit.

Universal provides non-emergency transportation of indigent Medicaid patients to doctors’ visits, medical treatments and other needs covered under Medicaid.

According to the complaint, Universal Transportation, starting in late November 2004, filed duplicate claims for the same services, filed claims for services they did not provide and submitted claims for excessive mileage. Some specific examples of fraudulent claims include:

• In July 2008, Universal allegedly submitted a claim for transporting a patient in November 2007. The Illinois Department of Healthcare and Family Services reimbursed Universal through Medicaid for $22.20, and Universal submitted a duplicate claim July 29, which also was paid.
• In August 2008, Universal allegedly took four patients on the same date in the same vehicle to the same location and billed mileage for each patient individually, even though guidelines state Medicaid will reimburse only for the first patient in such a scenario. Universal was overpaid $73.14 for that trip.
• In October 2006, Universal allegedly claimed it took a patient to a location and billed for the transportation costs. However, investigators determined the patient was in the hospital at the time and could not have been transported by Universal.

Universal submitted 6,294 claims for services it already was reimbursed for, was paid $11,420 for excessive mileage, and filed 52,763 claims for transporting people to medical treatment that never occurred, according to the complaint.

In all, the company allegedly submitted 58,956 false claims, resulting in a loss of $1.65 million.

Authorities say Medicaid is entitled to three times that, totaling $4.96 million, and they are seeking an additional $1.72 million in penalties.

The Illinois Attorney General’s Office, which brought the lawsuit in conjunction with the federal government, was unable to comment Friday.

State Sen. Sam McCann, R-Carlinville, a proponent of Medicaid reform, said he was unaware of the complaint involving Universal Transportation, but he said the case suggests the Legislature should rely more on internal government watchdogs to monitor for fraud and abuse.

With government health-care spending on the rise nationally, preventing fraud and misspending should be a priority, he said.

“I think there are a lot of safeguards we could put in place if we really try,” he said. “I think the government not being a good steward of taxpayer dollars has been a problem for a long time.”

Staff writer Anthony Brino contributed to this report.

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

IL Medicaid provider on hook for $6.7M for alleged fraud | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

By Anthony Brino | Illinois Statehouse News

SPRINGFIELD — The sponsor of a bill allowing people to record police officers in public is trying to stall the measure, First Amendment advocates say.

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

Illinois eavesdropping reform bill in political limbo | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the filing of a three-count indictment charging defendant Wesley Todd McCracken, 41, of Myrtle Beach, South Carolina, with bank robbery, in violation of Title 18, United States Code, Section 2113(a).

The indictment charges that McCracken, nicknamed the “Nike Hat Bandit,” robbed a Wells Fargo Bank in Palm Beach Garden, Florida on November 21, 2012; attempted to rob another Wells Fargo Bank in Dania Beach, Florida on November 30, 2012; and on that same day, robbed a BB&T Bank in Pompano Beach, Florida. McCracken was arrested on December 29, 2011 in Georgetown, South Carolina, after committing a robbery at the South Carolina Bank and Trust. The South Carolina United States Attorney’s Office indicted McCracken in March 2012, charging him with four counts of bank robbery.

McCracken wore a Nike baseball hat when he allegedly robbed banks in South Carolina, Tennessee, Georgia, Florida, Kentucky, West Virginia, and Pennsylvania, usually approaching bank tellers with threatening notes indicating he had a gun and demanding a particular amount of cash.

Mr. Ferrer commended the investigative efforts of the FBI’s South Florida Violent Crime/Fugitive Task Force, the Broward County Sheriff’s Office, and the Palm Beach Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney Corey Steinberg.

An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls.

South Carolina Man Dubbed the Nike Hat Bandit Indicted on Charges of Bank Robbery in South Florida | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

MINNEAPOLIS—Earlier this week in federal court, a 59-year-old man from the northern Minnesota community of Grygla was charged in a superseding indictment for sexually abusing two additional girls while on the Red Lake Indian Reservation. On May 21, 2012, Dean Earl Wilkens was charged with one count of aggravated sexual abuse of a child under the age of 12 and one count of abusive sexual conduct, in addition to the existing three counts of aggravated sexual abuse of a child under the age of 12. Wilkens remains in custody.

The indictment alleges that between December 12, 2008 and December 12, 2011, Wilkens, an Indian, engaged in sexual acts with each of the three girls. According to a law enforcement affidavit filed in the case, on December 12, 2011, the Federal Bureau of Investigation was informed of one of the assaults. One of the victims had disclosed the abuse to a school official, who contacted law enforcement.

If convicted, Wilkens faces a potential maximum penalty of life in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Clifford B. Wardlaw.

Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.

An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Grygla Man Indicted for Sexually Abusing Three Girls | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

United States Attorney Brendan V. Johnson announced that Jason James DeSersa, age 19, of Mission, South Dakota, appeared before United States District Judge Roberto A. Lange on May 22, 2012 and pled guilty to voluntary manslaughter. The maximum penalty upon conviction is 15 years’ imprisonment, a $250,000 fine, or both.

The conviction stems from an incident that took place on October 12, 2011, when DeSersa hit the victim with a closed fist, knocking him to the ground. While the victim was on the ground, DeSersa and others struck the victim several times, including with a baseball bat. The victim died as a result of his injuries.

The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant United States Attorney Tim Maher.

A presentence investigation was ordered, and a sentencing date was set for August 13, 2012. The defendant was remanded to the custody of the United States Marshals Service pending sentencing.

Mission Man Pleads Guilty to Voluntary Manslaughter | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

May 22, 2012

For decades, scientists believed that a spine with multiple segments was an exclusive feature of land-dwelling animals. But the discovery of the same anatomical feature in a 345-million-year-old eel suggests that this complex anatomy arose separately from — and perhaps before — the first species to walk on land.

Tarrasius problematicus was an eel-like fish that lived in shallow bodies of water in what is now Scotland, in the Carboniferous period between 359 million and 318 million years ago. Like many fish, Tarrasius was thought to have a vertebral column divided simply into body and tail segments. But in a new description of Tarrasius published in Proceedings of the Royal Society B, Lauren Sallan describes a five-segment column much more similar to the spinal anatomy of land-dwelling animals called tetrapods, including humans.

The surprising find argues against a common assumption paleontologists use to determine from fossils whether an ancient species lived on land or in water.

“It’s the last trait to fall,” said Sallan, a graduate student in the Program in Integrative Biology at the University of Chicago Biological Sciences. “First, limbs were thought to show that a species was on land and walking, and now the vertebral morphology doesn’t mean that they’re on land either. So a lot of the things we associate with tetrapods actually arose first in fishes, and this is another example of that.”

Tetrapods, which include the first species to walk on land as well as all modern mammals, reptiles, birds and humans, possess vertebrae organized into five distinct segments. From head to tail, the spinal vertebrae can be categorized into cervical, thoracic, lumbar, sacral and caudal sections, each with its own characteristic anatomy.

By contrast, fish vertebrae are typically categorized anatomically into two segments: caudal and pre-caudal. But the spinal column of Tarrasius shows a complexity more like that seen in tetrapods, with five segments separated by abrupt transitions.

“The morphology is just completely different in each series of vertebrae,” Sallan said. “Like a tetrapod, you can tell which segment you’re looking at from the basic morphology.”

When Sallan began her research on Tarrasius, she wasn’t looking for an unusual spine, but rather how the species fit evolutionarily among other early ray-finned fishes. While examining undescribed fossils at the National Museums Scotland in Edinburgh, Sallan found some unexpected features. Instead of the flexible notochord characteristic of most ancient fish species, Tarrasius possessed heavy vertebral bones organized into five anatomically distinct sections.

Armed with this new anatomical information, Sallan re-examined many other fossils of the species and detected evidence for spinal complexity that researchers previously had missed.

“This was in a different museum from where most of the specimens are, and previous workers had just been looking at the same fossils over and over,” Sallan said. “It’s basically an issue of finding what you expect to be there instead of what’s actually there.”

The appearance of tetrapod-like spinal organization in a ray-finned fish shatters the presumed relationship between complex vertebral anatomy and both walking and terrestriality. The eel-like Tarrasius possessed no hind fins and a long dorsal fin, indicating it used its surprisingly intricate spinal column for swimming, not walking. And while Tarrasius lived several million years after the first tetrapods with hands and feet, the discovery of these spinal features in a fish species confirms that this anatomy can evolve separate from the evolution of walking behavior.

“You can’t use this trait to say that something was definitely on land or to identify a tetrapod, which is the way it is used in the field now,” Sallan said.

Instead, the commonalities suggest that similar environments or other selective pressures may produce convergent evolution of this complex spinal organization. It also questions whether tetrapod-like expression of a family of factors responsible for body patterning — the Hox genes — is ancestral for both vertebrates and fishes, or truly essential for the development of these spinal segments. Since most knowledge about the relationship between Hox genes and body pattern development is based on genetic studies of modern tetrapods, the new finding emphasizes the need for more testing in fish species.

“Part of the problem is that the Hox expression data is available only for a few model organisms,” Sallan said. “What’s really needed is some expression data from other ray-finned fishes and tetrapods, things that are not mouse and chick and zebrafish. We need to try to get the full diversity of Hox expression.”

It’s also unclear how Tarrasius used its unexpectedly intricate spinal column in its daily life. Sallan speculates that the bony vertebrae may have been useful in propelling the fish’s body during fast swimming, similar to the stiff vertebrae of modern marlins.

“I think it must help with stiffening the body, because the tail is so flexible,” Sallan said. “If you look at the general shape, it’s more like a tadpole or an early tetrapod, so it might just function to hold the body steady because the tail is flapping.”

The paper, “Tetrapod-like axial regionalization in an early ray-finned fish,” will be published May 23 by Proceedings of the Royal Society B. Sallan is the sole author on the article. Funding for the research was provided by the National Science Foundation, the Palaeontological Association, the Paleontological Society, the American Society of Icthyologists and Herpetologists, and the Evolving Earth Foundation.

UCH_030743 (2)

Human-like spine morphology found in aquatic eel fossil | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

By Jayette Bolinski | Illinois Statehouse News

SPRINGFIELD — U.S. Attorney Patrick Fitzgerald, who oversaw corruption investigations that put two Illinois governors in prison, is stepping down for undisclosed reasons, he announced Wednesday.

Fitzgerald, 51, has scheduled a news conference for Thursday morning in Chicago. His last day on the job is June 30. It was unclear who will succeed him or if an interim U.S. attorney would be named.

Fitzgerald has been U.S. attorney for the Northern District of Illinois for more than 10 years — the longest-serving U.S. attorney in Chicago’s history — and oversaw numerous high-profile investigations, including successful corruption convictions against former governors George Ryan and Rod Blagojevich.

He did not say why he is stepping down or what his plans are. A news release says he “has no future employment plans and will take time off this summer before considering career options.”

“When I was selected for this position in 2001, I said that it was one of the greatest opportunities that one could ever hope for, and I believe that even more now after having the privilege of working alongside hundreds of dedicated prosecutors and agents. I have tried not to get in their way,” Fitzgerald said in a statement.

“I extend my deepest appreciation to the attorneys and staff for their determined commitment to public service. This was a great office when I arrived, and I have no doubt that it will continue to be a great office.”

U.S. Sen. Dick Durbin said Fitzgerald, while being interviewed by Durbin for the U.S. attorney position in Chicago, indicated he would show no political favoritism in his professional duties.

“He kept his word,” Durbin said. “His aggressive prosecution of wrongdoing, including politicians in both parties, has given fair warning that no one is above the law.”

Illinois Gov. Pat Quinn thanked Fitzgerald for rooting out corruption in Illinois.

“He has made Illinois a more ethical state by bringing justice to those who betrayed the public’s trust,” Quinn said.

Jayette Bolinski can be reached at jayette.bolinski@franklincenterhq.org.

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

U.S. attorney Patrick Fitzgerald stepping down | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

GREENBELT, MD—Chief U.S. District Judge Deborah K. Chasanow sentenced Nestor Gualteros, age 39, of Silver Spring, Maryland, today to five years in prison, followed by 10 years of supervised release, for transporting child pornography. Judge Chasanow ordered that upon his release from prison, Gualteros must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).

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 Maggie A. DeBoard of the Herndon, Virginia Police Department.

According to his plea agreement, from at least April 2009, Gualteros belonged to groups on a social networking site that was under investigation by law enforcement for the trafficking of child pornography. On August 3, 2010, Gualteros was interviewed by law enforcement and confessed to distributing and receiving child pornography, including images of prepubescent children, from his desktop computer at his place of employment in Herndon, Virginia. Gualteros also advised that he downloaded child pornography onto two flash drives that he kept hidden underneath his desk drawer at his place of employment. In December of 2009, Gualteros transported his work computer from his place of employment in Virginia to his residence in Silver Spring, Maryland, where he continued to view child pornography. The evidence showed that Gualteros distributed over 900 images to 15 different groups on the social networking site.

A forensic examination of Gualteros’ home computer revealed over 1,400 thumbnails, or previewed images, of child pornography. A search warrant was obtained to seize and search the digital media belonging to Gualteros. One flash drive contained over 11,000 images and seven videos of child pornography. One other flash drive contained over 12,000 images of child pornography. Gualteros’ place of employment in Virginia consented to a forensic review of his work computer which revealed over 800 images and three videos of child pornography.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the “Resources” tab on the left of the page.

United States Attorney Rod J. Rosenstein commended the FBI and Herndon Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas, who prosecuted the case.

Silver Spring Man Sentenced to Five Years in Prison for Transporting Child Pornography from His Office in Virginia to His Home | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

By Anthony Brino | Illinois Statehouse News

Midwest sand has become increasingly vital to America’s booming oil and gas industry, used in the drilling process known as hydraulic fracturing. The proposed 80-acre sand mine could be worth around $600 million over 10 years, said Tony Giordano, president of the Missouri-based Mississippi Sand LLC.

But environmental groups say the project would bring air and noise pollution and truck traffic and could disrupt the stream systems that flow through the park. The sandstone that the company would mine is part of the same rock formation that outcrops along the Illinois River, forming dramatic waterfalls and drawing millions of visitors each year.

Giordano said the company will build a natural border around the site, near Route 71, before mining starts. As the company excavates the soil and rock above the sand, it will build hills around the site and plant native shrubs and trees.

“You will not see any other industrial users doing that,” said Giordano.

Jack Darin, director of the Sierra Club Illinois chapter, said his group is open to seeing what kinds of safeguards Mississippi Sands proposes in its permits.

But “I think there are places where it’s appropriate to mine sand,” he said. “Next to Starved Rock isn’t one of them.”

Giordano admitted to the anticipated truck traffic and the erosion and stormwater runoff that would occur when the sand is washed with water. But in a decade or more, the area will naturally fill with water and become a lake.

Giordano said the project will bring about 60 jobs and tax revenue for the local government.

Starved Rock State Park is about 80 miles southwest of Chicago in LaSalle County, where the county board approved the mine in January. 

The company is seeking permits from the Illinois Department of Natural Resources and Illinois Environmental Protection Agency.

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

Debating the risks and benefits of Starved Rock sand mine | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

LAREDO, TX—Pedro Palacios, 36, of San Antonio, Texas, has been arrested on charges of wire fraud arising from his alleged theft of blank checks from the Border Patrol Union Council (BPUC) Local 2455, United States Attorney Kenneth Magidson announced today.

The indictment, returned under seal Thursday, May 8, 2012, was unsealed after he was taken into custody late last week. He made his initial appearance before U.S. Magistrate Scott Hacker on Friday, at which time he was ordered into custody pending his detention hearing, set for tomorrow at 10:00 a.m.

The indictment alleges Palacios stole checks from the BPUC treasurer, his father-in-law, and fraudulently forged that person’s signature. Palacios allegedly deposited 63 checks totaling $225,385 into his personal account between July 23, 2011 and November 29, 2011.

This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney D.J. Young.

An indictment is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

San Antonio Man Arrested for Wire Fraud Related to Theft from Border Patrol Union | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

CAMDEN—William Graulich, IV, purported managing partner of iVest International Holdings Inc., was sentenced today to 70 months in prison for conspiring to solicit victims to invest millions of dollars based on his false promises, U.S. Attorney Paul J. Fishman announced.

Graulich, 55, of Henryville, Pennsylvaia, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with wire fraud conspiracy for scheming to perpetrate a multi-million-dollar investment fraud using interstate wires. Judge Kugler imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

Graulich and his co-conspirators represented that they had an “exclusive” investment platform available by invitation only that had previously been open only to those able to invest at least $100 million. Graulich and his co-conspirators pitched the investment platform to a victim identified in the information as D.G. and to others, stating that any investment would be held in a non-depletion attorney account and would not be at risk. Investors were told the money in this account would be used as collateral to obtain a line of credit, which would be used to trade financial instruments, including medium-term notes and standby letters of credit. Graulich and his co-conspirators promised weekly returns of 22 percent.

Based on Graulich’s false representations and willingness to waive the purported $100 million minimum investment requirement, D.G. invested $4.4 million, wiring $2.8 million in August 2008 and $1.6 million in November 2008 to a JPMorgan Chase Bank account maintained by Graulich in Morristown, New Jersey. D.G. wired the money pursuant to an executed joint venture agreement D.G. had with Graulich, which contained numerous false representations.

From December 2008 through January 2009, Graulich paid D.G. approximately $1 million in “returns,” which actually consisted of money from D.G.’s own investment, before discontinuing payments altogether. In addition to paying phony returns back to D.G., Graulich used some of the investor’s money to pay for his personal expenses, including $57,244 for the purchase of a Jaguar automobile, $100,000 for tax payments, $10,000 for mortgage payments, $25,000 for legal expenses, and $100,000 for tickets to professional baseball games.

In addition to the prison term, Judge Kugler sentenced Graulich to three years of supervised release and ordered him to pay restitution of $3.6 million.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Michael B. Ward in Newark; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Philip R. Bartlett, for their work in the investigation leading to today’s sentence. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the leadership of Regional Director Daniel Hawke.

The government is represented by Assistant U.S. Attorney Jenny R. Kramer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Pennsylvania Man Sentenced to 70 Months in Prison for Multi-Million-Dollar Investment Fraud | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

PORTLAND, OR—Dwayne Jamal Hubbard, 23, of Clackamas County, made his initial appearance on May 15, 2012 in federal court on an indictment charging him with one count of sex trafficking of a child and one count of coercion and enticement of a minor to engage in sexual activity. According to prosecutors, Hubbard is facing a 10-year statutory mandatory minimum on each count. U.S. Magistrate Dennis Hubel detained Wilmer as both a danger to the community and a risk of flight.

The investigation leading to the charges was conducted by the Tigard Police Department and the FBI. The indictment alleges the sex trafficking took place recently between January and March 2012. “These arrests are the result of the excellent police work by the local law enforcement officers in Tigard who worked in conjunction with FBI agents,” said U.S. Attorney Amanda Marshall. “This teamwork is essential to protecting the children in this community from this dangerous trade.”

Upon conviction for sex trafficking of a child, rgw defendant faces a maximum sentence of life imprisonment. An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.

This case is being prosecuted by Assistant U.S. Attorney Leah K. Bolstad.

Federal Indictment Charges Defendant with Sex Trafficking of a Child | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—Kerry F. Khan, 54, a former program manager for the U.S. Army Corps of Engineers, pled guilty today to federal charges of bribery and conspiracy to commit money laundering in a scheme that allegedly involved more than $30 million in bribes and kickback payments and the planned steering of a government contract potentially worth $1 billion.

The plea was announced by U.S. Attorney Ronald C. Machen Jr.; Ronald T. Hosko, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division; Eric Hylton, Acting Special Agent in Charge of the Washington Field Office of the Internal Revenue Service- Criminal Investigation (IRS-CI); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA); Robert E. Craig, Special Agent in Charge of the Mid-Atlantic Field Office of the Defense Criminal Investigative Service (DCIS); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU).

Khan’s son, Lee A. Khan, 31, formerly of Fairfax, Virginia, also pled guilty today to charges in the case.

Khan and his son were among four men arrested on October 4, 2011 following an investigation into one of the most brazen corruption schemes in the history of federal contracting. The others arrested that day—Michael A. Alexander, a former program manager for the U.S. Army Corps of Engineers, and businessman Harold F. Babb—earlier pled guilty to charges in the case. Khan, Lee Khan, Babb, and Alexander have been in custody since their arrests in October. All told, eight defendants have now pled guilty in the ongoing investigation.

Kerry Khan, formerly of Alexandria, Virginia, pled guilty before the Honorable Emmet G. Sullivan in the U.S. District Court for the District of Columbia. A sentencing date has not been set. The bribery charge carries a statutory maximum of 15 years in prison, and the conspiracy charge carries up to 20 years of incarceration.

The charges also carry potential fines, an order of restitution, and forfeiture of a money judgment for $11,082,687 and specific property, including more than $1.4 million in bank account funds; 13 properties in Virginia, Florida, and West Virginia; and a 2011 GMC Yukon Denali truck. Kerry Khan has previously forfeited about $600,000 in bank account funds and four luxury automobiles.

Also before Judge Sullivan today, Lee Khan pled guilty to a charge of conspiracy to commit money laundering. No sentencing date was set. As part of his plea agreement, Lee Khan agreed to forfeit his interest in more than $1 million in bank account funds; 13 properties in Virginia, Florida, and West Virginia;and a Rolex watch.

In the overall investigation, to date, the United States has seized for forfeiture or recovered approximately $7.5 million in bank account funds, cash, and repayments; 19 real properties; six luxury cars; and multiple pieces of fine jewelry.

***

“Today, the ringleader of the largest bribery and bid-steering scheme in the history of federal contracting accepted responsibility for his crimes,” said U.S. Attorney Machen. “For his shocking abuse of his position of power, Kerry Khan faces more than two decades in prison. The homes, cars, and jewelry he financed with bribes and kickbacks have now been returned to their rightful owner—the American taxpayer. He and his son are now the seventh and eighth members of this far-reaching scheme to plead guilty since the fall of 2011, and our investigation is still ongoing. Corrupt public officials and the businessmen who bribe them should take notice: we will do everything in our power to disrupt your dirty deals and hold you accountable.”

“Mr. Khan saw large government contracts as a golden ticket for personal gain as he funneled millions of dollars to himself and others through bribes and kickbacks,” said Special Agent in Charge Hosko. “Together with our law enforcement partners, we will combat such deceit and corruption within our government as we tirelessly work to protect the money of the American taxpayer.”

“Today’s plea hearing is a reminder that individuals who scheme to defraud the U.S. government and violate the public’s trust will be brought to justice,” said Acting IRS Special Agent in Charge Hylton. “Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their own pockets. The use of bribes and kickbacks to secure government contracts will not be tolerated. IRS Criminal Investigation will continue to work with the U.S. Attorney’s Office and other law enforcement agencies to punish corrupt behavior wherever we find it.”

“Today’s guilty pleas effectively highlight the brazen corruption scheme sown by Kerry Khan and his co-conspirators,” said Inspector General Gustafson of the Small Business Administration. “This investigation demonstrates that there is no tolerance for criminal activity by federal employees who hold positions of trust in the federal contracting process. The SBA OIG appreciates the leadership of the U.S. Attorney’s Office and the support of the FBI and our interagency partners in bringing forth these plea agreements.”

“Today is a day of reckoning for Kerry Khan. His plea today is a chilling example of a corrupt government employee coming to the realization that engaging in criminal activity within the federal procurement process will be discovered, and there is a severe price to be paid for selfishly violating the public’s trust,” said Special Agent in Charge Craig of the Defense Criminal Investigative Service (DCIS). “DCIS and our law enforcement partners are working to ensure that this realization becomes a stark reality for any and all others who are willing to engage in this kind of dishonest, deceitful, and deplorable behavior. Let’s hope that today’s plea serves as a clear reminder that stealing money from the American taxpayer is not worth the day of reckoning that will inevitably follow.”

“Today’s pleas are another example of the great investigative work our agents and our federal law enforcement partners do every day,” said Director Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU). “It is a clear message that we will relentlessly pursue those attempting to defraud the U.S. Army.”

***

Kerry Khan worked for the Army Corps of Engineers from 1994 until the time of his arrest in October 2011. He was a program manager and contracting officer’s technical representative with the Directorate of Contingency Operations. In that position, Kerry Khan had authority, among other things, to place orders for products and services through federal government contracts. He also had authority to certify that the work on orders had been completed.

The scheme involved the Army Corps of Engineers and two contracts: the Technology for Infrastructure, Geospatial, and Environmental Requirements (TIGER) contract and the Contingency Operations Readiness Engineering and Support (CORES) contract.

The TIGER contract was used by authorized federal government agencies and departments to purchase products and services. It is what is known as an Indefinite Delivery/Indefinite Quantity contract. Authorized agencies and departments are not required to obtain three separate bids or to compare the TIGER contract to another contract before submitting an invoice for products and services through the TIGER contract.

The CORES contract was a planned contract, envisioned as an alternative or potential replacement to the TIGER contract. As planned, the CORES contract would be a five-year contract with an award potential for all contracts placed under it of nearly $1 billion. The CORES contract has not been issued for solicitation to potential prime contractors.

In his guilty plea, Kerry Khan admitted to carrying out a bribery scheme with others.

They included Alexander, a colleague, who was then a program manager with the Army Corps of Engineers; Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business; Alex N. Cho, the former chief technology officer of Nova Datacom LLC, a provider of information assurance and security services to federal agencies and commercial companies; Robert L. McKinney, the president of Alpha Technology Group Inc., a provider of program management services; James Edward Miller, formerly of Virginia Beach, Virginia, the owner of Big Surf Construction Management LLC; and an unindicted co-conspirator, referred to in court documents as Co-Conspirator 3, who was another contractor.

Another company, Ananke LLC, also was involved in the scheme. Ananke LLC was a shell company that was controlled by Kerry Khan.

According to a statement of offense signed by Kerry Khan, in or around 2006, he and Alexander agreed to work together to obtain government contracts for corrupt contractors who would reward them with bribes. Among others, Kerry Khan and Alexander worked with Babb on a scheme to use EyakTek as a vehicle for channeling contracts awarded by the Army Corps of Engineers. EyakTek, in turn, hired sub-contractors that submitted fraudulently inflated or fictitious quotes for equipment and services. As directed by Kerry Khan and Alexander, the sub-contractors kicked back a significant portion of the payments to them, as bribes for keeping the money flowing their way from the Army Corps of Engineers.

Kerry Khan and the others attempted to obtain more than $30 million through the bribery scheme primarily through the submission of fraudulently inflated invoices to the government, according to the statement of offense. The fraudulently inflated amounts were referred to by the perpetrators as “overhead.” Kerry Khan, Alexander, and the contractors agreed to split the “overhead.”

As part of his plea, Kerry Khan admitted obtaining and attempting to obtain these payments:

• Nova Datacom: Kerry Khan, Alexander, Cho, and Nova Datacom attempted to obtain more than $20 million in “overhead” on a total of $45 million in contracts.
• Alpha Technology: Kerry Khan, McKinney, and Alpha Technology Group obtained approximately $856,395 in “overhead” on a total of $1.8 million in contracts.
• Big Surf Construction: Kerry Khan, Babb, Miller, and Big Surf Construction Management LLC attempted to obtain $9,979,705 in “overhead” on a total of $9.9 million in contracts and intended contracts.
• Co-Conspirator 3: Kerry Khan obtained approximately $640,000 in bribe payments from Co-Conspirator 3.
• Ananke LLC: Kerry Khan and Babb obtained $147,544 in “overhead,” through contracts in that amount that were directed to Ananke, LLC.

From those amounts, Kerry Khan admitted actually receiving, directly and indirectly, over $12 million from the contractors. He also admitted that, at the time of his arrest, he was owed more than $14 million in additional “overhead” payments from the contractors.

In addition to these activities involving the TIGER contract, according to the statement of offense, Kerry Khan, Alexander, Babb, and Cho agreed to steer the award of the CORES contract to Nova Datacom. This scheme was thwarted by the arrests of Kerry Khan, Alexander, and others last fall.

In an attempt to surreptitiously receive and hide the receipts of proceeds of the bribery scheme, Kerry Khan and Lee Khan admitted today that they established and used multiple corporate entities, including shell companies that had no legitimate business purpose, as well as multiple bank and financial accounts. Kerry Khan and Lee Khan also purchased or paid off the mortgage for at least a portion of at least 13 pieces of real property, including several houses and condominiums, using proceeds of the scheme. Additionally, Kerry Khan and members of his immediate family owned in full 10 automobiles, most of them luxury vehicles that were purchased with proceeds of the criminal activities.

With instruction and supervision from his father, Lee Khan managed the portfolio of real property and automobiles, selling real property after its value had appreciated, managing the lease of certain real properties to tenants, and selling automobiles.

***

Alexander, 56, formerly of Woodbridge, Virginia, pled guilty in February 2012 to federal charges of bribery and conspiracy to commit money laundering. Babb, 60, formerly of Sterling, Virginia, pled guilty in March 2012 to federal charges of bribery and unlawful kickbacks.

Cho, 40, formerly of Great Falls, Virginia, pled guilty in September 2011 to one count of conspiracy to commit bribery, money laundering, wire fraud, to defraud the United States, and to one count of bribery. Another former Nova Datacom employee, Theodoros Hallas, 40, of Potomac, Maryland, the company’s former executive vice president, pled guilty in October 2011 to one count of conspiracy to commit wire fraud.

McKinney, 52, of Waldorf, Maryland, the president of Alpha Technology Group, pled guilty in February 2012 to bribery. James Edward Miller, 64, formerly of Virginia Beach, Virginia, the owner of Big Surf Construction Management LLC, pled guilty on April 17, 2012 to a federal charge of conspiracy to commit money laundering

All of the defendants are awaiting sentencing.

***

In announcing the pleas, U.S. Attorney Machen, Special Agent in Charge Hosko, Inspector General Gustafson, Special Agent in Charge Craig, Acting Special Agent in Charge Hylton, and Director Robey thanked those who investigated the case from the FBI’s Washington Field Office; the Office of the Inspector General for the Small Business Administration; the Department of Defense’s Defense Criminal Investigative Service; the Defense Contract Audit Agency; the Washington Field Office of the Internal Revenue Service-Criminal Investigation; and the Army Criminal Investigation Command. They also expressed thanks to the U.S. Marshals Service for its assistance on the forfeiture matter.

They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael K. Atkinson and Bryan Seeley of the Fraud and Public Corruption Section and Assistant U.S. Attorney Anthony Saler of the Asset Forfeiture and Money Laundering Section. Finally, they expressed thanks for assistance provided by former Special Assistant U.S. Attorney Christopher Dana; Forensic Accountant Maria Boodoo; Paralegal Specialists Tasha Harris, Lenisse Edloe, Shanna Hays, Taryn McLaughlin, Sarah Reis, Christopher Samson, and Nicole Wattelet; former Paralegal Specialist Jared Forney; and Legal Assistants Krishawn Graham and Jessica McCormick.

Second Former U.S. Army Corps of Engineers Manager Pleads Guilty in Alleged $30 Million Bribery and Kickback Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

PROVIDENCE, RI—A former Rhode Island and Massachusetts mortgage attorney pleaded guilty in U.S. District Court in Providence today to defrauding mortgage holders and lending institutions of more than $600,000. David L. Spector, 52, of Needham, Massachusetts, admitted that he used the funds to operate a Ponzi scheme. Spector’s guilty plea was announced United States Attorney Peter F. Neronha.

Spector pleaded guilty to three counts of wire fraud and one count of money laundering. He faces up to 70 years in federal prison, followed by up to three years of supervised release, and a fine of up to $1,000,000 when he sentenced by U.S. District Court Judge John J. McConnell, Jr. on August 8, 2012.

Spector admitted to the court that between April and October 2007, he conducted real estate mortgage refinance closings for properties in Plymouth and Lawrence, Massachusetts and Westerly, Rhode Isladn. As part of the closing process, Spector had the proceeds of the mortgages obtained by his clients transferred to his attorney escrow account for the purpose of redistributing the funds to pay off existing mortgages and other costs associated with the closings.

Spector admitted that rather than properly distribute the funds, he used $601,962 to run a Ponzi scheme to pay his personal expenses and to pay off previous mortgages the he had failed to pay off. Spector admitted that in order to keep his victims from learning of his scheme, he filed change of address forms with the mortgage companies that had not been paid off so that the bills would go to a post office box that he controlled.

The case is being prosecuted by Assistant U.S. Attorney Luis M. Matos.

The matter was investigated by Rhode Island State Police, Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigation.

Former Attorney Pleads Guilty to Fraud and Money Laundering | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

WASHINGTON—Istvan Laszlo Csurgo, 31, of Budapest, Hungary, pled guilty today to federal charges stemming from an international Internet-based fraud scheme that obtained more than $1 million from people who thought they were buying cars, trucks, and boats.

The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr.; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; John W. Schilling, Special Agent in Charge of the Washington Field Office of the U.S. State Department’s Diplomatic Security Service; and David Beach, Special Agent in Charge of the Washington Field Office of the United States Secret Service.

Csurgo was arrested at the Charlotte, North Carolina International Airport on February 10, 2012 and has been in custody ever since. He pled guilty this morning to one count of conspiracy to commit bank fraud and one count of use of a false passport. The Honorable Richard W. Roberts scheduled sentencing for August 17, 2012. The charges carry a maximum statutory penalty of 40 years. The charges also carry potential fines and an order of restitution. Csurgo also has agreed to forfeit $756,511, representing proceeds he obtained through the scheme.

According to a statement of offense signed by the defendant, Csurgo and others conspired to carry out the scheme from on or about June 1, 2011 through on or about August, 31, 2011. Csurgo and his co-conspirators falsely advertised and purported to sell motor vehicles and boats on websites, targeting buyers located mainly in the United States.

With assistance from his co-conspirators, Csurgo used false passports and false driver’s licenses to open about 45 bank accounts at financial institutions in the District of Columbia, Maryland, New Jersey, New York, Pennsylvania, and Virginia. During the course of the scheme, Csurgo came to understand that buyers were being induced to wire money and funds into these accounts for the intended purpose of purchasing the vehicles and boats. He and others fraudulently withdrew funds from the accounts before the buyers, financial institutions, and law enforcement detected the scheme.

As part of his plea agreement, Csurgo admitted that he obtained and attempted to obtain approximately $756,511 from various financial institutions during the scheme. As charged in the original indictment, the co-conspirators allegedly received, collectively, over $1 million from the scheme. Also as part of his plea agreement, Csurgo has agreed to cooperate in the government’s ongoing criminal investigation.

In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge McJunkin, Special Agent in Charge Schilling, and Special Agent in Charge Beach praised those who investigated the case from the FBI’s Washington Field Office, the Department of State’s Bureau of Diplomatic Security, and the United States Secret Service’s Washington Field Office. They also commended the efforts of Paralegal Specialists Lenisse Edloe, Tasha Harris, and C. Rosalind Pressley of the U.S. Attorney’s Office. Finally, they acknowledged the work of Assistant U.S. Attorneys Michael K. Atkinson and Diane Lucas, who prosecuted the case.

Hungarian Man Pleads Guilty to Bank Fraud for His Role in International Internet-Based Scheme | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

HOUSTON—An illegal alien from Vietnam has been sentenced to 140 months in federal prison for his role in a criminal enterprise involving the growth and marketing of hydroponic marijuana, United States Attorney Kenneth Magidson announced today.

Bich Xuan Dang, 39, pleaded guilty to possession with intent to distribute more than 100 marijuana plants on February 22, 2012. Today, U.S. District Judge Keith P. Ellison handed him the federal sentence, which was enhanced due to his classification as a career offender after multiple prior convictions for crimes of violence.

A joint state-federal task force arrested Dang inside a residence in Katy, Texas that had been converted into a sophisticated hydroponic marijuana growth facility. In addition to arresting Dang, officers seized nearly 300 marijuana plants together with the array of grow lamps, ballasts, blower fans, water and air filtration systems, and growth media that Dang and his organization used to produce the marijuana. When arrested, Dang was armed with a semi-automatic pistol and a 30-round extended magazine.

Dang has been in custody since his arrest, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

This case was investigated by the FBI and the Harris County Sheriff’s Office and prosecuted by Assistant United States Attorney Michael Kusin.

Katy Grow House Leads to Nearly 12-Year Prison Sentence | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.

The Houston FBI Bank Robbery Task Force is seeking the public’s assistance in identifying the two men man who robbed the Woodforest Bank branch inside the Walmart at 2740 Gessner Road in Houston, Texas on May 15, 2012. Bank surveillance video captured photos of one of the men during the robbery; the photos are below.

At approximately 2:30 p.m., the men entered the bank and approached the teller counter. The robber pictured in the surveillance photos handed a threatening demand note to the teller. The teller gave him some cash. The second robber remained at the teller counter with the robber pictured in the photos. Both exited the bank. No getaway vehicle was observed. No one was physically hurt during the robbery.

The robber pictured in the photographs is described a black male, 25-30 years old, 5’10”-6’0” tall, with a thin build and a medium complexion. He wore a blue sweatshirt, red baseball-style hat, and sunglasses. According to witnesses, he had large lips. He also had a tattoo of the word “tootie” or “tootsie” on the left side of his neck, along with other tattoos on his neck. The second robber is described as a black male, 25-30 years old, 5’10” tall, with a medium build and a dark complexion. He wore a sweatshirt, baseball-style hat, and sunglasses.

Crime Stoppers is offering up to $5,000 for information leading to the charging and arrest of these robbers. If you have information about this case, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the Houston Office of the FBI at 713-693-5000.

Woodforest Bank Branch in Houston Robbed | Chicago Press Release Services - Chicago's leading press release newswire service; professional press release services, press release distribution and newswire services.