Holmes County Supervisor Pleads Guilty to Stealing County Funds

JACKSON, MS—Norman Cobbins, 61, of Lexington, Mississippi, a Holmes County supervisor, pled guilty in U.S. District Court today to theft concerning programs receiving federal funds, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen, and Mississippi State Auditor Stacey Pickering.

Cobbins admitted that from March 15, 2007 through December 31, 2007, he carried out a scheme to defraud Holmes County by submitting false invoices and requisitions to the county and converting the money to his own personal use.

“Mr. Cobbins admitted today that instead of lawfully carrying out his duty to serve with integrity, he chose to abuse the public trust,” said United States Attorney Gregory K. Davis. “The Department of Justice will continue to prosecute those officials who choose to act in their own interest rather than the public’s interest.”

FBI Special Agent in Charge Daniel McMullen added, “Investigating allegations of public corruption is a top priority for the FBI. The FBI remains committed to working with our law enforcement partners continue to identify, investigate and hold accountable those who abuse their positions of trust for personal gain.”

“The taxpayers of Mississippi will not tolerate public officials betraying the public trust, and I am pleased that Norman Cobbins took responsibility for his actions today as he pled guilty in federal court,” said State Auditor Stacey Pickering. “Our agents have worked diligently with the FBI and the Southern District United States Attorney’s Office to bring this case to a conclusion, and I appreciate their effort to ensure justice is served.”

Cobbins will be sentenced on October 26, 2012 at 9:00 a.m. and faces a maximum penalty of 10 years in prison and a $250,000 fine.

This case was investigated by the Federal Bureau of Investigation and the Mississippi State Auditor’s Office and prosecuted by Assistant U.S. Attorney Jerry Rushing.

Former U.S. Immigration and Customs Enforcement Official Sentenced to 20 Months in Prison for Taking Part in Fraud

Defendant Obtained More Than $180,000 in Scheme; Overall Losses Amounted to More Than $500,000

WASHINGTON—James M. Woosley, 48, the former Acting Director of Intelligence for the U.S. Department of Homeland Security (DHS) Immigration and Customs Enforcement (ICE), was sentenced today to 20 months in prison for defrauding the government of more than $180,000 in a scheme involving fraudulent travel vouchers and time and attendance claims.

The sentence was announced by U.S. Attorney Ronald C. Machen, Jr.; Charles K. Edwards, Acting Inspector General of the Department of Homeland Security; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Timothy Moynihan, Assistant Director of the ICE Office of Professional Responsibility.

Woosley, formerly of Tucson, Arizona, pled guilty in May 2012 in the U.S. District Court for the District of Columbia to a charge of conversion of government money. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Woosley will be placed on three years of supervised release. In addition, as part of his plea agreement, he agreed to forfeiture and restitution of the money that he wrongfully obtained.

Four others have pled guilty in the case. Ahmed Adil Abdallat, 64, a former ICE supervisory intelligence research specialist, pled guilty in October 2011; William J. Korn, 53, a former ICE intelligence research specialist, pled guilty in December 2011; Stephen E. Henderson, 62, a former contractor who did work for ICE, pled guilty in January 2012, and Lateisha M. Rollerson, 38, a former assistant to Woosley, pled guilty in March 2012. Abdallat pled guilty in the Western District of Texas, and the others pled guilty in the District of Columbia.

Abdallat was sentenced to a year and a day in prison and ordered to pay $116,392 in restitution. Henderson has been sentenced to three months in prison and must forfeit $54,387,representing his share of the proceeds of the crime. Rollerson was sentenced to 10 months in prison and ordered to pay $295,866 in restitution. Korn is awaiting sentencing.

All told, the actions of the various defendants cost ICE more than $500,000.

“James Woosley took advantage of the trust he was given by the United States government to carry out a scheme that cost American taxpayers more than a half-million dollars,” said U.S. Attorney Machen. “He personally obtained more than $188,000 while also bringing others into the fraud. Now he and four others have been convicted of their crimes, and he will be spending time in prison for this betrayal of his office.”

“For years, Mr. Woosley participated in a scheme to defraud the government for his own personal gain,” said Assistant Director in Charge McJunkin. “Today, he is being held accountable for his actions. This sentencing demonstrates that those who engage in government corruption, as well as those who allow it to happen, will be brought to justice.”

“Today’s sentence reflects the outstanding law enforcement cooperation in a case that unmasked the illicit acts of a senior ICE official,” said Director Moynihan. “Bottom line: James Woosley violated the public trust in pursuit of his own greed. While his actions are atypical of the dedication and integrity demonstrated by the vast majority of ICE employees, this sentence should serve as a stark reminder about the serious consequences facing those who would exploit their positions for personal financial gain. The ICE Office of Professional Responsibility will continue to investigate those individuals aggressively and seek their prosecution to the fullest extent of the law.”

According to the government’s evidence, with which Woosley agreed, from in or about May 2008 until in or about January 2011, Woosley participated in the fraudulent activity involving travel vouchers and time and attendance claims. In addition, from June 2008 until in or about February 2011, Woosley was aware of or willfully overlooked fraudulent activity of ICE employees under his supervision or contract employees.

The other employees included Rollerson, who, he met in or about 2007, while he was Deputy Director for ICE’s Office of Intelligence. Woosley and Rollerson developed a close, personal relationship. In or about May of 2008, Rollerson was hired as an Intelligence Reports Writer for a company that did contract work for ICE. Later that year, she was hired by ICE as an Intelligence Research Specialist. This placed her first in the chain of command under Woosley, and she later became Woosley’s personal assistant. Rollerson’s official duty station was in Washington, D.C., and she lived in Virginia, often with Woosley. Rollerson helped Woosley and the other participants with the paperwork to support the fraudulent payments they later received.

Woosley admitted obtaining money in various ways:

■Between in or about May 2008 and January 2011, Woosley submitted or caused to be submitted approximately 13 fraudulent travel vouchers to ICE, at a cost of $50,637. As Woosley’s assistant, Rollerson, created all but one of the travel vouchers, as well as fraudulent documents to support the claimed expenses. She often accompanied him on the trips.

■Between in or about November 2009 and January 2011, Woosley submitted or caused to be submitted time and attendance claims for his pay for work he was supposed to be doing while he was on travel. Because he was not actually on travel, or working, he was not entitled to the payments of approximately $27,230.

■Starting in 2008, Woosley took a share of the fraudulent proceeds obtained by others in a scheme involving travel vouchers. For example, Henderson, an ICE contractor who was detailed on temporary duty to Washington, D.C., kicked back $5,000 to Woosley that was used to purchase a boat. Henderson also lived with Woosley and used some fraudulent proceeds to pay rent. Abdallat wrote checks to Rollerson and others, for the benefit of Woosley and Rollerson, totaling about $58,550. Korn kicked back about $30,648 to the benefit of Woosley and Rollerson. Finally, an unnamed contract employee gave $15,940 in fraudulent travel voucher funds to Woosley, which Woosley used for a real estate investment.

This case was investigated by the Office of Inspector General for the Department of Homeland Security, the FBI’s Washington Field Office, and the Immigration and Customs Enforcement Office of Professional Responsibility, Special Investigation Unit.

In announcing today’s sentence, U.S. Attorney Machen, Acting Inspector General Edwards, Assistant Director McJunkin, and Assistant Director Moynihan praised the investigative agents from the respective agencies for their hard work in this matter. They also acknowledged the efforts of Assistant U.S. Attorneys Daniel Butler and Allison Barlotta, who handled this prosecution, and Assistant U.S. Attorney Emily Scruggs, who handled the asset forfeiture.

Payroll Agent Charged with Embezzling $1.1 Million from Land O’ Lakes

MINNEAPOLIS—Yesterday in federal court, a former payroll agent for Land O’ Lakes was charged with embezzling more than $1 million from the company. Cynthia Carol Jacobsen, age 58, of Brooklyn Park, was charged via an information with one count of mail fraud.

Allegedly, from 2008 through May 15, 2012, Jacobsen fraudulently entered her daughter’s name into the company’s payment system as a vendor and then authorized payments to her. During that time, Jacobsen worked as an accounts payable supervisor and authorized payments to vendors for services rendered. The illegal payments were sent by mail to Jacobsen’s residence. In addition, Jacobsen allegedly concealed her actions and made misrepresentations to the company concerning its financial condition.

If convicted, Jacobsen faces a potential maximum penalty of 20 years in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Inspection Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.

A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.

Former U.S. Immigration and Customs Enforcement Employee Sentenced for Taking Part in Fraud Against Government

Defendant Obtained More Than $295,000 Through Travel Vouchers and Fraudulent Time and Attendance Claims

WASHINGTON—Lateisha M. Rollerson, 38, a former assistant to an acting intelligence chief for the U.S. Department of Homeland Security (DHS) Immigration and Customs Enforcement (ICE), was sentenced today to 10 months in prison for taking part in a fraud scheme involving more than $500,000 in government money.

The sentence was announced by U.S. Attorney Ronald C. Machen, Jr., Charles K. Edwards, Acting Inspector General of the Department of Homeland Security; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Timothy Moynihan, Assistant Director of the ICE Office of Professional Responsibility.

Rollerson, of Bowie, Maryland, pled guilty in March 2012 in the U.S. District Court for the District of Columbia to a charge of conversion of government money. She was sentenced by the Honorable Amy Berman Jackson. The judge also ordered Rollerson to pay restitution and forfeiture in the amount of $295,866. Upon completion of her prison term, Rollerson will be placed on three years of supervised release. In addition, she must perform 100 hours of community service.

Four others have pled guilty in the case. James M. Woosley, 48, the former Acting Director of Intelligence for ICE, pled guilty in May 2012; Ahmed Adil Abdallat, 64, a former ICE supervisory intelligence research specialist, pled guilty in October 2011; William J. Korn, 53, a former ICE intelligence research specialist, pled guilty in December 2011; and Stephen E. Henderson, 61, a former contractor who did work for ICE, pled guilty in January 2012. Abdallat pled guilty in the Western District of Texas, and the others pled guilty in the District of Columbia. Henderson has been sentenced to three months in prison and must forfeit $54,387, representing his share of the proceeds of the crime. Abdallat was sentenced to a year and a day in prison and ordered to pay $116,392 in restitution. Woosley and Korn are awaiting sentencing.

All told, the actions of the various defendants cost ICE more than $500,000.

According to the government’s evidence, with which Rollerson agreed, in or about January 2007, Rollerson met and became involved with Woosley, who was then the Deputy Director for the ICE Office of Intelligence. In 2008, Woosley helped Rollerson to obtain employment as an Intelligence Reports Writer for a company that did contract work for ICE. Later that year, she was hired directly by ICE as an Intelligence Research Specialist, and by early 2009, she was directly reporting to Woosley as his assistant.

In or about the spring of 2008, Woosley, Henderson, Rollerson, and others began using the ICE travel voucher system as a means to steal money from the government. For example, Woosley, Rollerson, and Henderson decided to buy a boat, using money Henderson would obtain from a travel advance. Rollerson, Henderson, and another contract employee all were involved in the selection of the boat, and when it was time to make the purchase, Henderson transferred $5,000 that he had received from travel advances into Woosley’s bank account. Henderson justified the advances by submitting fraudulent travel vouchers for expenses that ultimately were paid by ICE.

In or about October 2008, Rollerson helped Henderson to submit a fraudulent voucher using his company’s travel reimbursement system, which was newly updated to require supporting documentation. From that point on, Rollerson facilitated Henderson’s submission of false travel vouchers by creating fraudulent receipts for fictitious travel expenses.

Additionally, when Woosley brought other ICE employees such as Korn and Abdallat to Washington, D.C. on temporary duty, Rollerson helped them to submit fraudulent travel vouchers by creating fictitious receipts, and she submitted fraudulent receipts to support vouchers for herself and Woosley as well.

Rollerson also made kickback demands and collected a portion of the kickback money that the other participants paid in the form of “rent,” “loans,” and other payments for the benefit of Woosley and Rollerson. For example, in or about October 2009, Rollerson directed Henderson to apply for a travel advance for a fictional trip and to give the money he received to her for the benefit of herself and Woosley. Henderson complied with the request, and when he received the advance, he paid Rollerson approximately $4,000 in cash. The kickback arrangements continued even after Henderson and Korn left Washington, D.C.

Finally, Rollerson obtained travel authorizations for herself and Woosley for trips they did not take and during which neither worked. Rollerson then created fictitious receipts for expenses allegedly incurred during those fictitious trips. Rollerson’s conduct resulted in ICE paying the fraudulent vouchers, as well as paying for work time and scheduled overtime for which neither Rollerson nor the ICE supervisor actually worked.

Through her involvement in the fraudulent scheme, Rollerson personally stole approximately $295,866 from the government. Of that amount, approximately $92,700 was derived from fraudulent travel vouchers that Rollerson submitted on her own behalf, approximately $85,791 represents regular and overtime wages that Rollerson was paid for time that she did not work, and approximately $117,374 represents kickbacks Rollerson received from other participants in the travel voucher fraud scheme.

This case was investigated by the Office of Inspector General for the Department of Homeland Security; the FBI’s Washington Field Office; and the Immigration and Customs Enforcement Office of Professional Responsibility, Special Investigation Unit.

In announcing today’s sentence, U.S. Attorney Machen, Acting Inspector General Edwards, Assistant Director McJunkin, and Assistant Director Moynihan praised the investigative agents from the respective agencies for their hard work in this matter. They also acknowledged the efforts of Paralegal Sarah Reis and former Legal Assistant Jared Forney, as well as Assistant U.S. Attorneys Daniel Butler and Allison Barlotta, who are handling this prosecution, and Assistant U.S. Attorneys Scott Sroka and Emily Scruggs, who are handling the asset forfeiture.

Marshals Capture Elusive "Bobby Thompson"

Fraudulent Founder of Navy Veterans Association was one of America's Most Wanted Fugitives

Cleveland, OH – Late last night, the United States Marshals Service captured one of America's Most Wanted and elusive fugitives who is accused of stealing millions of dollars that had been donated for the sole purpose of aiding U.S. veterans. “Bobby Thompson”, which was an alias, was on the run for over the last two years where he assumed numerous fictitious names and was known to alter his appearance. He was charged with Unlawful Flight to Avoid Prosecution, Identity Theft, Fraud, and Money Laundering.

In the early 2000s, the subject, using the alias “Bobby Thompson”, founded the U.S. Navy Veterans Association (USNVA), a charitable organization whose stated mission was to provide assistance to veterans and members of the U.S. Armed Forces. The USNVA claimed to have a national headquarters in Washington D.C., but its base of operations was the Tampa, FL, area. From its inception to the summer of 2010, it is estimated the USNVA received close to $100 million dollars in nationwide donations. Officials in several states are investigating the USNVA and it is believed little, if any, of the money actually benefited veterans or current service members. In August 2010, “Thompson” was charged in Ohio with various offenses relating to this fraudulent activity. A co-conspirator is currently serving a five year prison sentence in Ohio for her role in this scam after pleading guilty in June 2011.

“Thompson”, the alleged mastermind of this plot, fled in June 2010, when he learned of the criminal investigation. “Thompson” was featured on America’s Most Wanted on two separate occasions, with the most recent being March 2011.

In November 2011, the United States Marshals in the Northern District of Ohio were called on to spearhead the apprehension of “Thompson” who was indicted out of Cuyahoga County.

In November 2011, United States Marshal Pete Elliott for the Northern District of Ohio was contacted by former Ohio Attorney General Richard Cordray and asked for his assistance in locating “Thompson”. Marshal Elliott immediately formed a task force in Cleveland, Ohio that has diligently pursued “Thompson” for over the last six months. Numerous leads were followed up while Ohio investigators tracked “Thompson” through several states to include Massachusetts, Arizona, New Mexico Rhode Island, West Virginia, Indiana, Florida and Washington.

“Thompson’s” fictitious and fraudulent life on the run came to an abrupt end last night in Portland, Oregon. After conducting an intense and thorough investigation, a team of Deputy U.S. Marshals and Task Force Officers from the Northern District of Ohio traveled to Portland, Oregon and coordinated efforts with the U.S. Marshals in the District of Oregon.

At approximately 10:30 pm (PST), the team apprehended “Thompson” outside a residence on 72nd St., NE in Portland where he has been living under one of his new fictitious names. Upon arrest, “Thompson” refused to make any statements. He appeared to be in poor physical condition and was walking with a cane. He was in possession of several false identification cards from Canada along with a backpack containing an undisclosed amount of cash. All of his possessions were taken as evidence and search warrants are being obtained for his residence. The Ohio Bureau of Criminal Investigation is traveling to Portland to conduct further investigation. Investigators are still unsure of the true identity of “Thompson” and will be working on that as well as identifying his ongoing criminal activity. “Thompson” was transported to the Multnomah County Jail where he will await extradition to Northern Ohio.

U.S. Marshal Pete Elliott stated, “This was one of our most challenging fugitive investigations to date. Our investigators followed up leads all over the nation. Their diligence and dedication directly led to the arrest in Portland. I am proud of everyone that worked on this investigation and their efforts have brought this scam artist to justice.”

Ohio Attorney General Mike DeWine stated, “We are relieved Bobby Thompson is now in federal custody after a nationwide manhunt and years of work within the Attorney General’s Office to track him down. We believe he stole between $1.5 million and $2 million which came from generous people in our state who thought they were helping U.S. Navy veterans.”

Anyone with information regarding the identity or whereabouts of this fugitive is encouraged to contact the U.S. Marshals Service at: 1-866-4-WANTED or text keyword WANTED and the tip to 847411 (tip411). Tipsters may remain anonymous and a cash reward may be available.

Additional information about the U.S. Marshals Service can be found at USmarshals.gov.