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Sunday, June 30, 2013

NYC Rebuild Housing Forum Staten Island (ID: 66897)

Staten Island, N.Y., June 26, 2013 -- FEMA is on hand to provide flood plain management information to Staten Island residents during NYC Rebuild's "Build it Back" Staten Island South Shore Open House Forum. FEMA mitigation teams are collaborating with the NYC Recovery group's efforts to inform and assist homeowners seeking to repair and rebuild their homes in a more resilient way in the wake of Hurricane Sandy. Andre R. Aragon/FEMA

CDP Opens Doors to Junior Law Enforcement Academy (ID: 66900)

Anniston, Ala., June 26, 2013 --Thirteen students from the Junior Law Enforcement Academy surveyed a street scene at the CDP recently. The CDP hosted the teenagers from the 2013 Junior Law Enforcement Academy. The teens trained in one of the CDP training venues that resembles real-life living and work facilities, including a simulated subway system where Human Patient Simulators served as victims and a warehouse that has been converted into a street scene complete with a paved road, shops and a subway entrance.

CDP Opens Doors to Junior Law Enforcement Academy (ID: 66901)

Anniston, Ala., June 26, 2013 --Thirteen students from the Junior Law Enforcement Academy pose for a photo at the CDP’s streetscape recently. CDP staff members provided instruction regarding active shooter scenarios in their schools, how to preserve and collect evidence, and triage survivors in a mass casualty event.

Saturday, June 29, 2013

Registered Sex Offender Sentenced to 264 Months’ Imprisonment and Lifetime Supervised Release for Transporting Child Pornography

FBI New York Field Office Press Release:

Registered Sex Offender Sentenced to 264 Months’ Imprisonment and Lifetime Supervised Release for Transporting Child Pornography
Defendant was Previously Convicted of Sexually Abusing Two Children Under Age 11

U.S. Attorney’s OfficeJune 28, 2013
  • Eastern District of New York(718) 254-7000
Earlier today, Edmund Ansbro, a registered sex offender, was sentenced to a term of imprisonment of 264 months and lifetime supervised release following his conviction for transporting child pornography in interstate commerce. The proceeding was held before Senior United States District Judge Denis R. Hurley at the United States Courthouse in Central Islip, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Edward Webber, Commissioner of the Suffolk County Police Department (SCPD).
Ansbro was arrested in Brooklyn on June 10, 2010, as a result of an undercover investigation by a detective with the SCPD Computer Crimes Unit and a special agent with the FBI Sexual Exploitation of Children Unit. According to a complaint filed in federal court, Ansbro admitted at the time of his arrest that he had been trading child pornography for the past six years and had collected approximately 250 gigabytes of child pornography.
New York State records show that Ansbro was convicted on April 4, 2000, in Kings County Supreme Court of two counts of sexual abuse in the first degree: sexual conduct with an individual less than 11 years old. Ansbro was sentenced to six months jail and five years’ probation. Following the conviction, Ansbro was required to register as a sex offender with New York State authorities.
“This sentence stands as a strong warning to prior sex offenders that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “We will not accept the continuing victimization of our children.” Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and Suffolk County Police Department for their assistance in this case.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
Defendant:
Edmund Ansbro
Brooklyn, New York
Age: 43

MS-13 Street Gang Leader Sentenced to 365 Months’ Imprisonment for 2009 Murder and Attempted Murder

FBI New York Field Office Press Release:

MS-13 Street Gang Leader Sentenced to 365 Months’ Imprisonment for 2009 Murder and Attempted Murder
Defendant was the Leader of the Coronados Locos Salvatruchas Clique of the MS-13

U.S. Attorney’s OfficeJune 28, 2013
  • Eastern District of New York(718) 254-7000
Earlier today, United States District Judge Joseph F. Bianco sentenced Jose Gustavo Orellana-Torres, also known as “Diablito,” the former leader of the Coronados clique of La Mara Salvatrucha, also known as the MS-13 street gang, to 365 months’ imprisonment following his September 25, 2012 guilty plea to racketeering, including predicate acts relating to the May 26, 2009 murder of Dexter Acheampong in Central Islip, New York, and the July 5, 2009 attempted murder of a suspected rival gang member in Roosevelt, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
According to his plea allocution and documents previously filed in the case, on May 26, 2009, Orellana-Torres attended a Coronados clique meeting in Brentwood, New York, and the MS-13 members agreed to “put in work” for the gang by killing rival gang members. Orellana-Torres and several other MS-13 members drove around Brentwood and Central Islip looking for rival gang members, and Orellana-Torres was armed with a .38 caliber revolver. While in the vicinity of East Maple Street in Central Islip, the MS-13 members observed Dexter Acheampong, whom they did not know but believed, based on the color of his skin and the neighborhood he was walking in, to be a member of the Bloods street gang. In fact, Mr. Acheampong did not belong to any street gang. Orellana-Torres stepped out of the car and fired four shots at Mr. Acheampong with the .38 caliber revolver, striking the victim twice in the back as he tried to escape. Mr. Acheampong was found dead in the driveway of a home on East Maple Street the next morning.
Just over a month later, on July 4-5, 2009, Orellana-Torres attended another MS-13 meeting, this time in Roosevelt, New York. The MS-13 members again discussed killing rival gang members. Orellana-Torres, who possessed the same .38 caliber revolver that night, and other MS-13 members drove around Roosevelt, New York, looking for rival gang members. The MS-13 members observed a man, whose identity is known to the government but is not being disclosed in order to protect his safety, whom they believed to be a rival gang member. One of the other MS-13 members fired several shots at the man, striking him once in the hand.
“The MS-13 street gang has become infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional depravity. Orellana-Torres and his co-conspirators targeted Dexter Acheampong and another young man, whom they did not even know, because they believed them to be rival gang members,” stated United States Attorney Lynch. “This sentence should make clear that gang members will pay a heavy price for such cold, calculated acts of violence.”
FBI Assistant Director in Charge Venizelos stated, “We cannot overstate our commitment to investigating MS-13 and other gangs on Long Island. As the case of Orellana-Torres shows, MS-13 is not about ethnic pride, it is a violent, murderous horde. It is hard to imagine a more wanton disregard for human life than shooting a person in the back because the color of his skin makes you think he may be a rival gang member.”
Orellana-Torres’s conviction is the latest in a series of federal prosecutions by this office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, and the Rockville Centre Police Department.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
Defendant:
Jose Gustavo Orellana-Torres, aka Diablito
Age: 28

Woodmere Man Pleads Guilty to Defrauding Investors of $62 Million in a Real Estate Ponzi Scheme

FBI New York Field Office Press Release:

Woodmere Man Pleads Guilty to Defrauding Investors of $62 Million in a Real Estate Ponzi Scheme

U.S. Attorney’s OfficeJune 26, 2013
  • Eastern District of New York(718) 254-7000
Earlier today, Gershon Barkany pleaded guilty at the federal courthouse in Central Islip, New York, to wire fraud. The proceeding took place before United States Magistrate Judge Arlene R. Lindsay. When sentenced, Barkany faces up to 20 years in prison. As part of his plea agreement with the government, Barkany agreed to a $62 million money judgment payable to the United States.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office.
According to court filings and facts presented during the plea proceeding, between December 2009 and March 2013, Barkany induced seven investors to give him approximately $62 million by promising to use their money in “risk-free” deals to purchase and then immediately re-sell at a profit commercial real estate properties located in New York City and New Jersey. However, no such deals existed and the investors lost their entire investments.
In one instance, Barkany approached an investor he knew from the community and who placed his trust in the defendant. Barkany preyed on that trust to convince the investor to invest $46.5 million that was supposed to be used as a down payment to purchase an office building in Manhattan, a hotel in Atlantic City, and properties in the Bronx and Queens. Barkany explained that he would find a buyer for those properties who would pay a higher price before the actual closing, resulting in a profit for Barkany and the investor. Barkany assured the investor that the real estate deals were risk free because if Barkany was unable to find a buyer before the closing, the owner of the properties would refund their money. In fact, those real estate deals did not exist and the investment was not refunded.
On March 28, 2013, FBI special agents arrested Barkany. Shortly thereafter, two additional victims contacted the FBI and advised that they too had been defrauded by Barkany. As he had done with the other victims, Barkany induced those investors to give him approximately $7.5 million by promising to use their money in a “risk-free” deal to purchase and then immediately re-sell at a profit an office building located on 53rd Street in Manhattan. That deal also did not exist. In furtherance of that scheme, Barkany created fictitious documents, including a purchase agreement purportedly signed by the seller of the office building and an escrow agreement allegedly signed by a third-party escrow agent. Neither the seller of the property nor the third-party escrow agent signed or entered into those agreements. Barkany created those documents to deceive the victims.
As part of his Ponzi scheme, Barkany diverted some of the funds he received to pay investors whom he had defrauded earlier. The defendant also lost some of the funds in gambling and otherwise used the money for his own benefit.
“The defendant bilked investors out of funds that he led them to believe were to be invested in safe real estate deals. Instead, he was paying investors to keep his Ponzi scheme afloat and to gamble,” stated United States Attorney Lynch. “Barkany rolled the dice that his brazen greed and dishonesty would go unnoticed. That gamble did not pay off. Today’s conviction sends a clear message that this office is committed to vigorously investigating and prosecuting individuals who are responsible for committing financial crimes.”
FBI Assistant Director in Charge Venizelos stated, “Barkany has admitted to a multi-million-dollar real estate swindle where he convinced wealthy investors they were buying no-risk properties. Unbeknownst to his victims, what they were really buying were not brick-and-mortar buildings, but the smoke-and-mirror fantasy of Barkany’s fraudulent sales pitch.”
The government’s case is being prosecuted by Assistant United States Attorneys Christopher Caffarone and Diane Beckmann.
Defendant:
Gershon Barkany
Age: 29
Residence: Woodmere, New York

Long Island Resident Pleads Guilty to Attempting to Provide Material Support to al Qaeda Affiliate

FBI New York Field Office Press Release:

Long Island Resident Pleads Guilty to Attempting to Provide Material Support to al Qaeda Affiliate

U.S. Attorney’s OfficeJune 26, 2013
  • Eastern District of New York(718) 254-7000
A complaint and information were unsealed in federal court yesterday afternoon charging Justin Kaliebe, an American citizen and resident of Babylon and Bay Shore, New York, with attempting to travel to Yemen in order to join the foreign terrorist organization al Qaeda in the Arabian Peninsula (AQAP), also known as Ansar al Sharia (AAS). On February 8, 2013, Kaliebe pled guilty before United States Magistrate Judge A. Kathleen Tomlinson to both counts of the information charging him with attempting to provide material support to terrorists, in violation of 18 U.S.C. § 2339A(a), and attempting to provide material support to a designated foreign terrorist organization, AQAP/AAS, in violation of 18 U.S.C. § 2339B(a)(1). Thereafter, on March 5, 2013, United States District Judge Arthur D. Spatt reviewed and accepted Kaliebe’s guilty plea. A status conference is scheduled for June 26, 2013, at 3:00 p.m. at the United States Courthouse in Central Islip, New York, when Judge Spatt is expected to set a sentencing date. Kaliebe faces a maximum sentence of 30 years in prison when he is sentenced by Judge Spatt.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
According to the court filings, Kaliebe attempted to travel from the United States to Yemen for the purpose of joining AQAP/AAS and waging violent jihad. During numerous meetings and recorded conversations and e-mail correspondence with undercover law enforcement officers, Kaliebe explained that he had been searching for an opportunity to travel abroad and fight jihad for two years—long before Kaliebe first approached the undercover officers about his plans to join a terrorist group. Kaliebe repeatedly expressed his desire to travel to Yemen in order to join AQAP/AAS and to help carry out its violent extremist agenda. Kaliebe also demonstrated extensive knowledge of terrorist organizations, including AQAP/AAS and al Qaeda, and current and former leaders of those terrorist organizations. For example, Kaliebe referenced, and at times quoted, Anwar al-Awlaki, a member and leader of AQAP, as well as Omar Abdel Rahman (the “Blind Sheik”), Ayman al-Zawahiri (the current leader of al Qaeda), and Osama Bin Laden. Further, Kaliebe demonstrated detailed knowledge of various terrorist attacks that were carried out by AQAP/AAS in Yemen, as well as other attacks carried out by al Qaeda around the world.
According to the court filings, during a recorded conversation that took place on June 4, 2012, Kaliebe observed that “the crime that they would charge people like us with” was conspiracy “to kill, maim, and kidnap in foreign countries,” a reference to a federal criminal statute that has previously been used to charge other individuals who departed or attempted to depart the United States in order to fight jihad abroad. Later during that same conversation, Kaliebe stated that, once he arrived in Yemen, he expected to fight the “Yemeni army” and “those who are fighting against the Sharia of Allah...whether it’s the U.S. drones or the, their puppets, in the Yemeni army...or, who knows, if American agents or whatever, U.S. Special Forces...who they got over there.” When asked if he was afraid to die, Kaliebe responded “I wanna....It’s what anyone would want, any believer would want.” During another recorded conversation, which took place on July 9, 2012, Kaliebe stated that he had been inspired by several sheiks, including “Sheik Osama,” “who showed how he could bring an entire nation to its knees.”
According to the court filings, beginning in approximately July 2012, Kaliebe saved money to finance his travel to Yemen, which he then used to apply for and purchase a United States passport and to purchase an airline ticket to Oman, from where he intended to travel by land to Yemen. During a recorded meeting on July 30, 2012, Kaliebe stated explicitly that he was saving money “as a means to go to Yemen to fight jihad.”
On December 26, 2012, Kaliebe sent an e-mail in which he swore his loyalty to the leaders of AQAP and al Qaeda, respectively, writing, “I pledge my loyalty, allegiance and fidelity to the Mujahedeen of Al-Qaa’idah in the Arabian Peninsula and its leaders, Shaykh Abu Baseer Nasir Al-Wuhayshi and Shaykh Ayman Al-Zawahiri, hafidhahum Allah. May Allah accept this from me and may he allow me to fight in his cause til the day that I leave this dunya.”
According to court filings, on January 18, 2013, Kaliebe reaffirmed his commitment to jihad, telling an NYPD Intelligence Division undercover officer in a recorded conversation that he understood “there’s a way out, but for me, the only way out is [martyrdom].” Additionally, Kaliebe paid homage to several terrorist leaders, telling the undercover law enforcement officer:
“[My] standard is Abu Dujana. [M]y standard is Abu Mus’ab Al-Zarqawi. My standard is Sheik Anwar Al-Awlaki and Sheik Osama, both who bore witness to the truth for their blood.”
Finally, Kaliebe stated, “Oh Allah, please allow me, please allow me and my brother...to fight jihad in your cause, oh, Allah. Oh, Allah, please give us one of the two victories, victory on the ground or victory through [martyrdom.]”
On January 21, 2013, Kaliebe’s efforts culminated in an attempt to board a flight to Muscat, Oman at John F. Kennedy Airport in Queens, New York. He was arrested at the airport by members of the FBI’s Joint Terrorism Task Force and the NYPD Intelligence Division. Thereafter, on February 8, 2013, Kaliebe waived indictment and pled guilty to attempting to provide material support to AQAP/AAS and attempting to provide material support to terrorists.
The government’s investigation is ongoing.
“Kaliebe attempted to turn his back on his country and align with radical terrorists. His goal was to travel overseas to wage violent jihad against Yemeni and U.S. forces opposed to al Qaeda. Firmly committed to this plan, he found both inspiration and guidance in the online teachings of al Qaeda leaders, including Osama Bin Laden. While the Internet has made worlds of knowledge available to all, unfortunately it is also used as a platform for al Qaeda and other terrorist groups to spread their poisonous propaganda. Terrorists continue to exploit this free and open medium to persuade United States citizens and others to carry out attacks, both here and abroad. We must and will use every tool to identify and disrupt potential attackers before they strike,” stated United States Attorney Lynch. United States Attorney Lynch thanked the Port Authority of New York and New Jersey Police for their assistance in this investigation.
FBI Assistant Director in Charge Venizelos stated, “Kaliebe was equipped to travel overseas and fight jihad abroad. He set the wheels in motion—convinced of his well-thought- out plan—but didn’t get very far. The FBI, along with our law enforcement partners, will seek out those who pledge allegiance to terrorists and terrorist organizations throughout the world, and we will continue to work together to disrupt their evil plans.”
NYPD Commissioner Kelly stated, “The NYPD is concerned about the continuing interest of some young Americans in violent jihad and their identification with terrorist organizations like AQAP. That is why the NYPD Intelligence Division continues to track individuals allegedly evincing support for terrorism, and that is why we worked in close cooperation with the JTTF to apprehend this suspect.”
The government’s case is being prosecuted by Assistant United States Attorney John J. Durham, Seth D. DuCharme, and Sean C. Flynn, with assistance provided by Trial Attorney Kelli Andrews of the Counterterrorism Section of the Department of Justice.
Defendant:Justin Kaliebe, age 18

Former Hartford Resident Pleads Guilty to Sex Trafficking of a Minor

FBI New Haven Division Press Release:

Former Hartford Resident Pleads Guilty to Sex Trafficking of a Minor

U.S. Attorney’s OfficeJune 27, 2013
  • District of Connecticut(203) 821-3700
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Kamar James, also known as “Sean Steppa,” “Sean Lawson,” and “Akamar Lawson,” 30, a citizen of Jamaica last residing in Hartford, pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of sex trafficking of a minor.
According to court documents and statements made in court, in 2011, James recruited a minor victim whom James knew to be under the age of 18 to engage in prostitution. On multiple occasions, James transported the minor victim from Connecticut to streets in New York City where the victim would meet men who would pay her for sexual encounters. James also posted pictures of the minor victim on the Internet to advertise the victim’s prostitution services. He then transported the victim to hotels in the New York City area when the victim engaged in pre-arranged prostitution encounters. The victim turned over all of the proceeds from the prostitution encounters to James.
James is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 19, 2013, at which time he faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life.
James has been detained since his arrest on February 3, 2012.
This matter has been investigated by the Federal Bureau of Investigation and the Hartford Police Department, with the assistance of U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant United States Attorney David E. Novick.

Shelton Man Sentenced to 30 Months in Federal Prison for Trading Child Pornography on the Internet

FBI New Haven Division Press Release:

Shelton Man Sentenced to 30 Months in Federal Prison for Trading Child Pornography on the Internet

U.S. Attorney’s OfficeJune 27, 2013
  • District of Connecticut(203) 821-3700
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Arthur Galloway, 38, of Shelton, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by 10 years of supervised release, for trading child pornography on the Internet.
According to court documents and statement made in court, on March 14, 2012, the Connecticut State Police Computer Crimes Unit, Shelton Police Department, and Federal Bureau of Investigation conducted a court-authorized search of Galloway’s residence and seized a laptop computer, an external hard drive, and other items. Investigators determined that Galloway used the Internet to trade numerous images and video of child pornography, and he was arrested at that time.
Subsequent forensic analysis of the seized items revealed that Galloway possessed 11 printed photographs, 913 images, and 45 videos of children engaging in sexually explicit conduct. Some of the videos exceeded 20 minutes in length.
On January 11, 2013, Galloway pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Shelton Police Department, the Federal Bureau of Investigation, and the Connecticut Child Exploitation Task Force, which includes federal, state, and local law enforcement agencies. The case was prosecuted by Assistant United States Attorneys Felice M. Duffy and Neeraj N. Patel.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI field office in New Haven, investigates crimes against children occurring over the Internet and provides computer forensic review services for participating agencies. For more information about the task force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.

Guilford Podiatrist Pleads Guilty to Medicare Fraud

FBI New Haven Division Press Release:

Guilford Podiatrist Pleads Guilty to Medicare Fraud

U.S. Attorney’s OfficeJune 26, 2013
  • District of Connecticut(203) 821-3700
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Richard Sokoloff, 70, of Guilford, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of health care fraud.
According to court documents and statements made in court, Sokoloff was a podiatrist with a practice at 652 Boston Post Road in Guilford. Between July 2008 and February 2012, Sokoloff engaged in a health care fraud scheme by submitting claims to Medicare for avulsion of nail plate services that were not rendered. An avulsion of nail plate service, or “nail avulsion,” is a surgical procedure to treat ingrown toenails. The procedure involves the surgical separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail. Pursuant to relevant Medicare policies, the procedure is required to be performed using injectable anesthesia unless the patient is devoid of sensation or there are other extenuating circumstances. Injectable anesthesia is necessary to perform a partial or full nail avulsion to avoid causing extreme pain to the patient.
The investigation revealed that Sokoloff commonly provided only “routine foot care” services to his Medicare patients, such as simply trimming or clipping their toenails, but he regularly submitted claims to Medicare as if he had performed nail avulsion surgical procedures. Routine foot care is typically not a payable service under relevant Medicare regulations except in limited circumstances for patients with certain systemic conditions or other significant medical issues. Sokoloff also did not use an injectable anesthetic while supposedly providing nail avulsion services.
When Medicare requested that Sokoloff provide documentation to substantiate his nail avulsion services, Sokoloff created and back-dated patient progress notes to make it appear that the avulsion of nail plate services had been performed when, in fact, they had not been performed.
Sokoloff was paid more than $200,000 by Medicare for nail avulsion services that had not been performed.
Judge Arterton has scheduled sentencing for October 3, 2013, at which time Sokoloff faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
As part of the resolution of this matter, Sokoloff has agreed to a 10-year exclusion from all federal health care programs.
This investigation was conducted by special agents from the Office of Inspector General for the Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Richard M. Molot and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encourages individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at (203) 777-6311 or 1-800-HHS-TIPS.

Former Alabama Corrections Officer Convicted of Federal Civil Rights Offenses and Obstruction of Justice for Beating Death of Inmate

FBI Mobile Press Release:

Former Alabama Corrections Officer Convicted of Federal Civil Rights Offenses and Obstruction of Justice for Beating Death of Inmate

U.S. Department of JusticeJune 26, 2013
  • Office of Public Affairs(202) 514-2007/TDD (202) 514-1888
WASHINGTON—The Justice Department announced that yesterday a federal jury convicted Michael Smith, 38, a former corrections officer of the Alabama Department of Corrections, of two civil rights violations and five obstruction of justice-related violations in connection with the beating death of former inmate Rocrast Mack.
The incident occurred at Ventress Correctional Facility in Clayton, Alabama, on August 4, 2010, and at the time of the incident, Smith was a lieutenant with supervisory authority over other officers on his shift. The jury convicted Smith of assaulting Mack with a baton in an office in the prison and of assaulting Mack again several minutes later in the medical unit by repeatedly stomping on Mack’s head. Mack died the following day in a Montgomery, Alabama hospital.
Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on November 18, 2011, in U.S. District Court for the Middle District of Alabama to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson, another former corrections officer, pleaded guilty on January 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.
Smith was remanded to the custody of the U.S. Marshals Service pending sentencing. The sentencing hearing is yet to be scheduled. Smith faces a maximum potential penalty of life in prison.
“The jury found that defendant Smith, a high-ranking official at Ventress Prison, violently caused the death of an inmate entrusted to his care,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin, Jr. “Through its verdict, the jury has vindicated the principle, enforced by the Department of Justice, that no person is above the law. We hope that today’s verdict brings some measure of solace to the family of Rocrast Mack.”
This case was investigated by the Mobile, Alabama Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.

Two Singapore Men Plead Guilty in Connection with Plot to Illegaly Export Military Antennas

FBI Minneapolis Division Press Release:

Two Singapore Men Plead Guilty in Connection with Plot to Illegaly Export Military Antennas

U.S. Attorney’s OfficeJune 26, 2013
  • District of Columbia(202) 514-7566
WASHINGTON—Hia Soo Gan Benson, also known as “Benson Hia,” and Lim Kow Seng, also known as “Eric Lim,” pleaded guilty today in federal court in the District of Columbia to conspiracy to violate the Arms Export Control Act in connection with the unlawful export of 55 military antennas from the United States to Singapore and Hong Kong.
The plea was announced by Ronald C. Machen, Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; James Dinkins, Associate Executive Director of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations; Stephanie Douglas, Executive Assistant Director of the FBI’s National Security Branch; and Eric L. Hirschhorn, Under Secretary for Industry and Security at the Commerce Department.
Hia, 45, and Seng, 44, both of Singapore, pleaded guilty this afternoon before the Judge John M. Facciola. Sentencing is scheduled for September 20, 2013, before Judge Emmet G. Sullivan. The defendants face a maximum potential sentence of five years in prison, a fine of $250,000, and a three-year term of supervised release.
According to court documents filed in this case, Hia and Seng conspired to defraud the United States by causing a total of 55 cavity-backed spiral antennas and biconical antennas to be illegally exported from a Massachusetts company to Singapore and Hong Kong without the required State Department license. These military antennas are controlled for export as U.S. munitions and are used in airborne and shipboard environments.
Hia and Seng, among other things, conspired to undervalue the antennas to circumvent U.S. regulations on the filing of shipper’s export declarations to the U.S. government. They also allegedly used false names and front companies to obtain the antennas illegally from the United States.
Corezing International, a company based in Singapore, was also charged in the District of Columbia in connection with the export of these particular military antennas to Singapore and Hong Kong. Corezing and its principals have also been charged in connection with the export of 6,000 radio frequency modules from the United States to Iran via Singapore, some of which were later found in improvised explosive devices in Iraq. Hia and Seng pled guilty to the sole charge on which they were extradited from Singapore.
This investigation was jointly conducted by ICE agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, and the State Department’s Directorate of Defense Trade Controls.
The prosecution is being handled by Assistant U.S. Attorney Anthony Asuncion of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division.

Arden Hills Man Pleads Guilty to Conspiring to Distribute 11 Pounds of Methamphetamine

FBI Minneapolis Division Press Release:

Arden Hills Man Pleads Guilty to Conspiring to Distribute 11 Pounds of Methamphetamine

U.S. Attorney’s OfficeJune 25, 2013
  • District of Minnesota(612) 664-5600
MINNEAPOLIS—Earlier today in federal court, a 35-year-old Arden Hills man pleaded guilty to distributing approximately 11 pounds of methamphetamine. Marcelino Garcia pleaded guilty to one count of conspiracy to distribute 500 or more grams of methamphetamine. Garcia, who was indicted on March 20, 2013, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Garcia, also known as Moreno Marcelino Garcia and Marcelino Garcia-Moreno, admitted that on March 15, 2013, he made arrangements to sell approximately 11 pounds of methamphetamine to an undercover federal agent at a Target parking lot in Shoreview. Garcia also admitted that during the subsequent execution of a search warrant at his residence, authorities seized a 9mm, semi-automatic pistol and five additional pounds of methamphetamine. According to a law enforcement affidavit filed in the case, authorities learned about Garcia during routine narcotics’ investigations in the Twin Cities.
For his crime, Garcia faces a potential maximum penalty of life in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Twin Cities Safe Streets Violent Gang Task Force, which is led by the Federal Bureau of Investigation and includes the Minneapolis Police Department. The task force’s mission is to investigate and target the most violent gangs operating in the Twin Cities or those gangs engaged in the large-scale trafficking of illegal drugs. The case is being prosecuted by Assistant United States Attorney Julie E. Allyn.

Sinovel Corporation and Three Individuals Charged in Wisconsin with Theft of AMSC Trade Secrets

FBI Milwaukee Division Press Release:

Sinovel Corporation and Three Individuals Charged in Wisconsin with Theft of AMSC Trade Secrets
Theft of Trade Secrets Allegedly Cheated AMSC of More Than $800 Million

U.S. Attorney’s OfficeJune 27, 2013
  • Office of Public Affairs(202) 514-2007/TDD (202)514-1888
WASHINGTON—A manufacturer and exporter of wind turbines based in the People’s Republic of China; two employees of that manufacturer; and a former employee of a subsidiary of AMSC, a United States-based company formerly known as American Superconductor Inc., were charged today with stealing trade secrets from AMSC and causing an alleged loss of more than $800 million to the company, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Wisconsin John W. Vaudreuil.
A federal grand jury in the Western District of Wisconsin returned an indictment charging Sinovel Wind Group Co. Ltd., dba Sinovel Wind Group (USA) Co. Ltd.; Su Liying, 36, the deputy director of Sinovel’s Research and Development Department; Zhao Haichun, 33, a technology manager for Sinovel; and Dejan Karabasevic, 40, a former employee of AMSC Windtec GmbH, a wholly-owned subsidiary of AMSC, with one count each of conspiracy to commit trade secret theft, theft of trade secrets, and wire fraud.
“Today, we announce charges against Sinovel and three individuals for stealing proprietary wind turbine technology from AMSC in order to produce their own turbines powered by stolen intellectual property,” said Acting Assistant Attorney General Raman. “This charged IP theft caused significant harm to a domestic company that develops cutting edge technology and employs Americans throughout the country. Stamping out intellectual property theft is a top priority for this administration, and we will continue to work with our IP Task Force partners to ensure that American ingenuity is protected.”
“The allegations in this indictment describe a well-planned attack on an American business by international defendants—nothing short of attempted corporate homicide,” said U.S. Attorney Vaudreuil. “The Department of Justice and this office are committed to protecting American commerce and aggressively prosecuting those who seek to steal and use our intellectual property. I commend the efforts of the FBI and their Austrian counterparts in this long-term international investigation and the assistance provided by the owners and operators of the Massachusetts turbines.”
“The Sinovel case is a classic example of the growing insider threat facing our nation’s corporations and their intellectual property,” said FBI Executive Assistant Director Richard McFeely. “The FBI will not stand by and watch the hemorrhage of U.S. intellectual property to foreign countries who seek to gain an unfair advantage for their military and their industries. We are actively working with our private sector and government partners to disrupt and impact those who have made it their mission to steal U.S. military and corporate secrets. Since 2008, our economic espionage arrests have doubled; indictments have increased five-fold; and convictions have risen eight-fold.”
Karabasevic headed the automation engineering department at AMSC Windtec in Klagenfurt, Austria. Su and Zhao are Chinese nationals living in China, and Karabasevic is a Serbian national who lived in Austria but now lives in Serbia.
According to the indictment, AMSC developed and sold software and equipment to regulate the flow of electricity from wind turbines to electrical grids, and it considered the software and equipment to be trade secrets and proprietary information. The software that runs the PM3000, a part of AMSC’s wind turbine electrical control system, was developed in Wisconsin and was stored on a computer in AMSC’s office in Middleton, Wisconsin. The PM3000 worked with other products, including AMSC’s Low Voltage Ride Through (LVRT) software. The LVRT system is designed to keep a wind turbine operational when there is a temporary sag or dip in flow of electricity in the electrical grid.
Sinovel purchased software and equipment from AMSC for the wind turbines that Sinovel manufactured, sold, and serviced. According to the indictment, in March 2011, Sinovel owed AMSC more than $100 million for products and services previously delivered and had entered into contracts to purchase more than $700 million in products and services from AMSC in the future.
The indictment alleges that the four defendants conspired to obtain AMSC’s copyrighted information and trade secrets in order to produce wind turbines and to retrofit existing wind turbines with LVRT technology, without having to pay AMSC for previously-delivered products and services, thereby cheating AMSC of more than $800 million.
The indictment alleges that Sinovel, through Su and Zhao, recruited Karabasevic to leave AMSC Windtec and join Sinovel and to secretly copy intellectual property from the AMSC computer system. The four defendants are charged with stealing the PM3000 source code from AMSC on March 7, 2011, and transmitting it by downloading it from an AMSC computer in Wisconsin to a computer in Klagenfurt.
The indictment alleges that following the theft of AMSC’s intellectual property, Sinovel commissioned several wind turbines in Massachusetts and copied into the turbines software compiled from the software stolen from AMSC. The U.S.-based builders and operators of these Massachusetts turbines have cooperated in this investigation.
If convicted, Sinovel faces a maximum penalty on each count of five years of probation and a fine of twice the gross gain or loss, meaning Sinovel would face a fine for each count charged of up to twice the alleged loss of more than $800 million.
If convicted, Su, Zhao, and Karabasevic each face a maximum penalty of five years in prison on the conspiracy charge, 10 years in prison for theft of a trade secret, and 20 years in prison for wire fraud.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the Madison Resident Agency-Milwaukee Field Office and Boston Field Office of the FBI; the FBI Legal Attaché Offices in Vienna, Austria, and Beijing; the FBI Criminal Investigative Division; the FBI Intellectual Property Rights Unit; the Bundeskriminalamt (Federal Criminal Intelligence Service) and the Bundesministerium Fuer Justiz (Federal Ministry of Justice) in Austria; the Landeskriminalamt-Klagenfurt and the Staatsanwaltschaft-Klagenfurt (Criminal Investigative Police and State Prosecutor’s Office-Klagenfurt, Austria); and with the assistance of the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorneys Timothy M. O’Shea and Munish Sharda and Trial Attorney Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force, which is led by the Deputy Attorney General, to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation, and hard work. To learn more about the IP Task Force, go to: www.justice.gov/dag/iptaskforce.