Germantown man who impersonated a federal immigration agent pleads guilty to fraud scheme

GREENBELT, Md. - Robert Fred Mejia, 29, of Germantown, Md., pleaded guilty to conspiring to transport money obtained by fraud across state lines, impersonating an Immigration and Customs Enforcement (ICE) officer, transporting money obtained by fraud in connection with a scheme to purportedly provide immigration services and being a felon in possession of ammunition after an investigation led by ICE.

The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge of ICE's Office of Homeland Security Investigations (HSI) William Winter; Special Agent in Charge Department of Homeland Security's Office of Inspector General Peter P. Paradis, Sr.; Montgomery County Police Chief J. Thomas Manger; and Montgomery County State's Attorney John McCarthy.

According to the plea agreement, from December 2007 to June 2009, Mejia and a conspirator charged over 50 individuals for immigration services which they did not provide. On numerous occasions, Mejia and his co-conspirator caused such individuals in Washington D.C., and Virginia to bring $5,000 or more to their office in Gaithersburg, Md., to pay for the purported immigration services. Mejia and the co-conspirator completed immigration documents and had fingerprints taken for the individuals. However, no paperwork was ever filed on behalf of those clients.

As part of the fraud scheme, during meetings with the individuals seeking immigration assistance, Mejia dressed as an ICE employee, wearing: a shirt bearing the letters "ICE;" what appeared to be a gun in a holster and pepper spray; a bullet proof vest; and a hat bearing the letters "ICE." Mejia also displayed what appeared to be an ICE identification badge and drove a vehicle that resembled a police vehicle. At no time was Mejia employed by ICE or any other agency of the United States.

As a result of the fraud, between 50 and 250 victims from the District of Columbia and Virginia lost between $400,000 and $1 million.

In addition, Mejia admitted that he illegally possessed 50 rounds of 9 mm ammunition and 49 rounds of .44-40 ammunition, which were seized by law enforcement during a search of his home on June 26, 2009. Mejia was prohibited from possessing the ammunition due to a previous 2nd degree assault conviction in Montgomery County.

Mejia faces a maximum sentence of five years in prison for the conspiracy; and 10 years in prison for interstate transportation of money obtained by fraud and for being a felon in possession of ammunition. Chief U.S. District Judge Deborah K. Chasanow has scheduled sentencing for January 20, 2010 at 10:00 a.m. Mejia remains detained.

Mejia was previously convicted of related state charges and is scheduled to be sentenced on those charges in November.

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-- ICE --

Repeat Sex Offender Convicted in Delaware of Child Exploitation Offenses

WASHINGTON – Paul Edward Pavulak, 66, of New Castle, Del., was convicted today by a federal jury in Wilmington of child exploitation offenses, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the District of Delaware David C. Weiss.

Pavulak was convicted of one count of attempted production of child pornography, one count of attempted enticement and coercion of a minor to engage in sexual activity, one count of possession of child pornography, one count of failure to register and update a registration as a sex offender, and one count of committing a felony offense involving a minor while being required to register as a sex offender. Pavulak was originally indicted on these five counts on April 16, 2009.

According to evidence presented at trial, from September 2008 to January 2009, Pavulak developed an online relationship with a young woman in the Philippines who had a two-year-old daughter. In December 2008, Pavulak traveled to the Philippines and met the woman and her daughter. Using his digital camera, Pavulak produced a sexually explicit movie of himself and the woman, and described the movie as the two-year-old girl’s "training video." Following his return to the United States in January 2009, Pavulak attempted to produce child pornography of the two-year-old girl via a web camera during an online instant chat message exchange with the woman.

On Jan. 19, 2009, the Delaware State Police executed a search warrant at a concrete company’s office in New Castle, where Pavulak had been living and working. During the search, Delaware State Police seized digital media evidence, including computers, a camera and a mobile phone. Upon review of the seized materials, investigators discovered thousands of images depicting the sexual abuse of minors on the computers. These images included depictions of children ranging in age from infancy to mid-teens engaging in sexual acts with adult males. On a mobile phone and a computer, the investigators also found sexually explicit communications between Pavulak and the woman regarding her daughter, in which they discussed having the woman prepare the child to engage in sexual activity with Pavulak when he returned to the Philippines.

Evidence at trial established that Pavulak was convicted in 1998 and 2005 of second degree unlawful sexual contact with minors. As a result of these convictions, federal and state law required Pavulak to register as a sex offender and to provide the registry with the address of his employer and his residence. Between July 2008 and January 2009, Pavulak consistently reported to the Delaware State Police that he was unemployed and that he lived in a motel. Evidence at trial showed that Pavulak worked for a concrete company owned by his children and also resided in a room at the company’s office.

Due to his prior convictions and his commission of these offenses while being required to register as a sex offender, Pavulak faces a mandatory minimum sentence of 45 years in prison and a fine up to $250,000.

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

The case is being prosecuted by Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware, and Trial Attorneys Bonnie L. Kane and Andrew McCormack of CEOS. The case was investigated by the Delaware State Police’s Child Predator Task Force and High Technology Crimes Unit, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.

Home Health Agency Manager Pleads Guilty in Connection with Detroit Fraud Scheme

WASHINGTON – Detroit-area resident Hassan Akhtar pleaded guilty today for his role in managing a home health care fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced .    

Akhtar, 26, pleaded guilty before U.S. District Judge Denise Page Hood of the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, scheduled for Jan. 27, 2011, Akhtar faces a maximum penalty of 10 years in prison and a $250,000 fine.

According to plea documents, Akhtar began working for co-conspirator Muhammad Shahab in April 2008.   In June 2008, Shahab asked Akhtar if he wanted to assist Shahab in setting up and operating a new home health agency.   Akhtar agreed to the arrangement.   Shahab helped finance and establish All American Home Care Inc. located in Oak Park, Mich., which also purported to provide home health services.   Akhtar was the office administrator and ran the day-to-day operations at All American.

Akhtar admitted that he and his co-conspirators at All American billed Medicare for home health visits that were medically unnecessary and/or never provided.   To deceive the Medicare program, Akhtar and his associates created fictitious therapy files that appeared to document physical therapy services provided to Medicare beneficiaries, when in fact no such services had taken place.   Akhtar admitted that he knew the fictitious services reflected in the files were billed to Medicare by All American.

Akhtar also admitted that he knew his co-conspirators paid cash kickbacks and other inducements to Medicare beneficiaries, in exchange for the beneficiaries’ Medicare numbers and signatures on documents falsely indicating that they had received home health services from All American.   In addition, Akhtar’s co-conspirators secured physician referrals for home health services through the payment of kickbacks to physicians or individuals associated with physicians.   Akhtar and his co-conspirators also employed several physical therapists and physical therapy assistants to sign medical documentation necessary to commence Medicare home health billing processes, including initial payments and payments for each visit to a Medicare beneficiary.   Akhtar admitted that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients.

Between approximately June 2008 and October 2009, Akhtar and/or his co-conspirators at All American submitted claims to the Medicare program resulting in approximately $4.65 million for physical and occupational therapy services that were never rendered or were medically unnecessary.

Shahab pleaded guilty in February 2010 to one count of conspiracy to commit health care fraud, and is awaiting sentencing.

Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer; U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.

This case was prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section.  The case was investigated by the FBI and HHS-OIG.  The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.

Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Seeking Information on Bank Robbery in Oklahoma City

OKLAHOMA CITY—James E. Finch, Special Agent in Charge of the Federal Bureau of Investigation in Oklahoma, announced the robbery of the Bank of Oklahoma, 3701 N. MacArthur, Oklahoma City, Oklahoma. This bank is located inside the Buy for Less Store.

At approximately 10:45 this morning, a white male entered the bank and showed the teller a note stating, “This is a robbery. Give me all the money or I will kill you.” No weapon was seen during the robbery. The robber gathered the money and exited the bank/grocery store on foot.  No one was injured in today’s robbery.

The robber was described as a white male, 5’10” to 5’11” tall, wearing a dark colored baseball cap, a yellow T-shirt, sunglasses and blue jeans.

The robbery is being investigated by the FBI and the Oklahoma City Police Department.

Anyone with information regarding either robbery should contact the FBI at (405) 290-7770 (24 hour number). You may remain anonymous. 

The Oklahoma Banker’s Association offers up to $2,000.00 for information leading to the identification, arrest and/or conviction of anyone robbing a member bank.

Norristown Man Sentenced for Multi-Million-Dollar Fraud

PHILADELPHIA—Michael G. Spada, 50, of Norristown, PA, was sentenced today to 72 months in prison, in connection with a fraud scheme in which he embezzled more than $6 million from his employer, announced United States Attorney Zane David Memeger. Spada pled guilty to wire fraud, bank fraud, filing a false tax return, and making a false statement to the federal government on March 18, 2010. He hid the embezzlement from both a bank, that extended him a $3.2 million line of credit, and from the Internal Revenue Service. He embezzled the funds by diverting company checks to his own account and taking more than $400,000 in unauthorized salary between 2000 and 2009. He then failed to report most of the embezzled money on his tax returns and lied to IRS agents about his embezzlement during a meeting on June 22, 2009.

In addition to the prison term, U.S. District Court Judge Legrome D. Davis ordered Spada to pay restitution in the amount of $3,990,208 to his employer and the IRS.

The case was investigated by the FBI and the IRS and is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.

Former Store Employee Pleads Guilty to Stealing and Reselling More Than $900,000 Worth of Goods

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that Richard Earl Norton Jr., 48, of Fresno, pleaded guilty today before United States District Judge Lawrence J. O'Neill to interstate transportation of stolen property relating to his sales over the Internet of more than $900,000 worth of goods and merchandise that he stole from a Macy's department store.

In his guilty plea, Norton admitted that from October 2005 to September 2009, he stole goods and merchandise including designer purses, wallets, satchels, and other items, valued at more than $900,000, from the Macy's store in Fresno where he worked. Norton admitted that he sold many of these stolen goods to buyers in other states through Internet sales using his eBay account and other Internet sales sites. Norton directed buyers to make payments for these online sales to his PayPal account, and after receiving the buyers' payments, caused the stolen goods and merchandise to be shipped from California across state borders to the buyers in other states. He admitted that he knew the goods he was shipping interstate were stolen, that he had himself stolen the items, and that he obtained more than $900,000 from this scheme.

Norton also agreed in his guilty plea to forfeit to the United States the following assets: (i) over a half million dollars in cash, consisting of approximately $346,610 seized from Norton's PayPal account, approximately $5,362 seized from Norton's bank accounts, and approximately $157,989 seized from Norton's residence; (ii) Norton's residence, which is a house located in Fresno; and (iii) vehicles consisting of two 2005 BMW Z4 cars, a 2002 Ford truck, a 2005 Chrysler Crossfire, and a 2007 Pontiac Solstice.

This case is the product of a joint investigation by the FBI Cyber Crimes Task Force, the Fresno Police Department, and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Kirk Sherriff and Deanna Martinez.

Norton is scheduled to be sentenced on December 17, 2010 at 8:30 a.m. The maximum statutory penalty for interstate transportation of stolen property is 10 years in prison, a $250,000 fine, and up to three years’ supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Firefighter Fatality

The United States Fire Administration (USFA) has received notice of the following firefighter fatality:

Name: Ronald W. Stephan

Rank: Firefighter

Age: 61

Gender: Male

Status: Volunteer

Years of Service: 20

Date of Incident: 09/24/2010

Time of Incident: 1436hrs

Date of Death: 09/25/2010

Fire Department: Lynn Volunteer Fire Department

Address:

P.O. Box 65

,

101 E Church ST, Lynn, IN 47355

Fire Department Chief: Charles Nicholson

Incident Description: Firefighter Stephan suffered an apparent fatal heart attack the morning following his participation in a mutual-aid response to a large brush fire in Ohio.

Incident Location:

9849 Fourman Road, Laura, OH

Funeral Arrangements: Arrangements are pending at Thomas Memorial Chapel of Lynn, IN.

Memorial Fund Contact and Address: In honor of Firefighter Ronald W. Stephan, c/o Lynn Volunteer Fire Department,

P.O. Box 65, Lynn, IN 47355

Tribute is being paid to Firefighter Ronald W. Stephan at http://www.usfa.dhs.gov/fireservice/fatalities/

To date, 63 firefighter fatalities have been reported to USFA in 2010; 61 from incidents that occurred in 2010 and 2 from previous year incidents.  Year-to-date monthly and annual USFA firefighter fatality reports are posted online @ http://www.usfa.dhs.gov/fireservice/fatalities/statistics/ff_stats.shtm

Jury Convicts Laredo Police Department Officer of Conspiracy to Traffic Cocaine

Jury Acquits on Wire and Mail Fraud Charges Arising from Alleged Insurance Fraud Scheme

LAREDO, TX—A federal jury has convicted Laredo Police Department (LPD) officer Orlando Jesus Hale, aka Chacho, of conspiracy to possess with intent to distribute cocaine and using a firearm in furtherance of that drug offense, United States Attorney José Angel Moreno announced today. The trial of Hale, 27, of Laredo, began on Sept. 20. Jury deliberations began on Sept. 24 and, after a weekend recess, resumed today and concluded with the return of the verdicts late this morning.

The jury convicted Hale of conspiracy to possess with intent to distribute cocaine between Oct. 15, 2008, and Nov. 30, 2008, and using and carrying a firearm during and in relation to a drug trafficking crime and possessing the firearm in furtherance of the drug trafficking crime between Nov. 7 and Nov. 25, 2008.

During the trial, evidence was presented showing that Hale and a fellow LPD officer, Pedro Martinez III, met with an FBI undercover agent posing as a drug dealer in a hotel room in Laredo on Nov. 7, 2008. During the recorded meet, Hale and Martinez discussed how the two officers could escort loads of 20 kilograms each of cocaine from south to north Laredo using their personal vehicles and police-issued radios to monitor dispatch traffic.

On Nov. 13, 2008, first Martinez, then Hale, each escorted a load vehicle during afternoon rush-hour traffic. Each vehicle contained 20 kilograms of sham cocaine. On Nov. 25, Hale and Martinez arranged to meet the payoff person in San Antonio, Texas, to receive payment for the protective escort services they had provided. Hale and Martinez each received $1,000 from another undercover agent posing as the organization’s moneyman. Martinez, who pleaded guilty prior to trial, testified against Hale.

Additional testimony heard during the trial in support of the fraud charges alleged in a superseding indictment detailed a scheme in which Hale allegedly asked Martinez whether he knew of any persons who might want their vehicles “stolen” (taken with their knowledge). The vehicle could be driven into and sold in Mexico, while the owner made a fraudulent claim of theft profiting from the theft through receipt of insurance proceeds and no longer having a loan payment. Martinez and Hale were also to profit from the scam, according to testimony. Two such “thefts” allegedly occurred on Oct. 24, 2008, then again on Dec. 13-14, 2008. The jury, however, acquitted Hale of the three mail fraud charges and one wire fraud charge alleged in the indictment arising from the alleged scheme.

The drug conspiracy conviction carries a mandatory minimum sentence of 10 years’ imprisonment and a maximum of life imprisonment along with a $4 million fine. The firearms conviction charge carries a mandatory minimum sentence of five years’ imprisonment upon conviction, which must be served consecutive or upon completion of any term of imprisonment imposed for the underlying drug offense as well as a $250,000 fine. Sentencing has been set for Jan. 10, 2011. Hale has been permitted to remain on bond pending sentencing.

The investigation leading to the charges was conducted by the FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration Customs Enforcement - Homeland Security Investigations and Customs Border Protection with the assistance and cooperation of the LPD. Assistant United States Attorney Roberto F. Ramirez prosecuted the case.

Firefighter Fatality

The United States Fire Administration (USFA) has received notice of the following firefighter fatality:

Name: Ryan Neil Seitz

Rank: Firefighter

Age: 26

Gender: Male

Status: Volunteer

Years of Service: <1

Date of Incident: 09/24/2010

Time of Incident: 1800hrs

Date of Death: 09/24/2010

Fire Department: McArthur Fire Department

Address:

303 West High Street, McArthur, OH 45651

Fire Department Chief: Charles Fri

Fire Department Website: http://www.mcarthurfd.org/

Incident Description: While working with other firefighters to bring an outdoor fire under control, Firefighter Seitz was struck and killed by a part of a pressurized water tank that exploded. Although the investigation continues, initial reports from local authorities indicate that a pressure valve or pressure plate on the water tank had malfunctioned.  The explosion injured a second McArthur firefighter who was treated at a hospital and released.

Incident Location: Liberty Township, Ross County, OH.

Funeral Arrangements: Funeral services will be held 10 A.M., Wednesday, September 29, 2010 at the Calvary Assembly of God Church, 63849 US Highway 50, McArthur, with Rev. Gary Sollars and Rev. Donald Shoemaker officiating. Interment will be in Elk Cemetery, McArthur. Friends may call at the Calvary Assembly of God Church on Tuesday, from 2-8 P.M. with a Memorial Service for the Fallen Firefighter being held at 7 P.M. Arrangements are by Garrett-Cardaras Funeral Home, 201 W. High St., McArthur.

Memorial Fund Contact and Address: The family suggests contributions be made in memory of Ryan Neil Seitz to the Herbert Wescoat Memorial Library, 120 N. Market St., McArthur, Ohio 45651 or the McArthur Fire Department, 303 W. High St., McArthur, Ohio, 45651.

Tribute is being paid to Firefighter Ryan Neil Seitz at http://www.usfa.dhs.gov/fireservice/fatalities/

To date, 61 firefighter fatalities have been reported to USFA in 2010; 59 from incidents that occurred in 2010 and 2 from previous year incidents.  Year-to-date monthly and annual USFA firefighter fatality reports are posted online @ http://www.usfa.dhs.gov/fireservice/fatalities/statistics/ff_stats.shtm

Attorney General Holder Unveils Defending Childhood Initiative

$5.5 Million in Grants Awarded for First Phase of Initiative

WASHINGTON – Attorney General Eric Holder today officially unveiled Defending Childhood, a new Department of Justice initiative focused on addressing children’s exposure to violence.   The goals of the initiative are to prevent children’s exposure to violence as victims and witnesses, mitigate the negative effects experienced by children exposed to violence, and develop knowledge about and increase awareness of this issue.

 “For me, the issue of children’s exposure to violence has been both a personal and professional concern for decades. As our nation’s Attorney General and as a parent, it remains a top priority,” said Attorney General Holder. “Through renewing and refocusing our efforts to serve our nation’s most vulnerable and most distressed children we can transform the country we love for the better – one child at a time.”

A key component of the initiative is a multi-year demonstration program. Phase I includes planning grants for eight demonstration sites announced today. In Phase II, up to four communities will be selected from the initial eight to receive funding for further implementation of their plans, based on the availability of funding. This program supports the development of comprehensive community-based strategies to prevent and reduce the impact of children’s exposure to violence in their homes, schools, and communities.

The eight demonstration sites are:

•City of Boston ($160,000)

•City of Portland, Maine ($160,000)

•Chippewa Cree Tribe, Mont. ($153,210)

•City of Grand Forks, N.D. ($159,967)

•Cuyahoga County Board of Commissioners, Ohio ($157,873)

•Multnomah County Department of Human Services, Ore. ($159,349)

•Rosebud Sioux Tribe, S.D. ($159,534)

•Shelby County, Tenn. ($159,099).

Some examples of the efforts these grants will support are:  

•improving the identification, screening, assessment, and referral of children and their families to appropriate programs and services;

•increasing access to and utilization of quality programs and services; and

•developing new programs and services where gaps exist.

The grantees will work in collaboration with other local organizations, including victim service providers, tribal non-profit organizations, and community based organizations with a documented history of effectiveness concerning children exposed to domestic violence, dating violence, sexual assault, or stalking.  

In addition to the demonstration program grants, the Department of Justice is committing additional funding for research, evaluation, public awareness and partnerships related to the initiative.   The other awards announced today are:

•  Action Partnerships for Professional Membership and Professional Organizations Responding to Children Exposed to and Victimized by Violence ($1,498,932) - Office for Victims of Crime

•  Evaluation of the Attorney General’s Children Exposed to Violence Demonstration Program: Phase I ($500,000) – National Institute of Justice

•  Public Awareness and Outreach for Victims in Underserved Communities ($995,089) – Office for Victims of Crime

•Research and Evaluation on Children Exposed to Family Violence ($1,244,869) – National Institute of Justice

Detailed information about grants awarded in each of the above categories is available at www.justice.gov/defendingchildhood .

Members of Prince William County Cocaine Trafficking Ring Indicted

ALEXANDRIA, Va. — Seven men were charged in a 34-count indictment yesterday for trafficking cocaine and firearms in Prince William County.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; Shawn Henry, Assistant Director in Charge of the FBI’s Washington Field Office; Edgar A. Domenech, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Charlie T. Deane, Prince William County Chief of Police, made the announcement after the indictment was unsealed.

According to court records, Yasin Oriza Arreola, a/k/a Tony or El Diablo, 30, of Catlett, Va., is accused of being a significant source for distributing cocaine in Prince William County and is allegedly supplied by a Mexican drug trafficking organization. Court records indicate that he has posed as a construction worker — including driving a white work van and wearing a reflective construction vest — to conduct drug transactions at various spots throughout the county. He and others in the conspiracy are alleged to have possessed firearms during drug negotiations and also agreed to sell firearms — including a machine gun — to drug customers.

In addition, the following six men were also charged in the indictment as conspiring with Arreola in running this cocaine trafficking ring:

•Jose Salgado Lovo, 40, of Manassas, Va.

•Isitro Liberato, a/k/a Joker, 20, of Manassas, Va.

•Kelvin Martinez, a/k/a Solo, 25, of Manassas, Va.

•Manuel Perez Castillo, a/k/a New York, 42, of Manassas, Va.

•Jorge Isiais Fernandez, a/k/a Esquivel Madrazo Aquiles, Chesperito, or Picapiedra, 35, of Manassas, Va.

•Angel Enrique Flores, a/k/a Don Angel, 44, of Manassas, Va.

The defendants were previously charged by criminal complaint and arrested on Aug. 25, 2010. They face mandatory minimum penalties ranging from 10 years in prison to 40 years in prison and a maximum penalty of life in prison.

The indictment is a result of a joint investigation led by the FBI, ATF, Prince William County Police Department, and the Northern Virginia Regional Gang Task Force into cocaine and firearms trafficking in Prince William County. The investigations — dubbed Operation Treasure Chest by the FBI and Operation Bull Run by the ATF — were facilitated, in part, by Organized Crime and Drug Enforcement Task Force funding, which is specially designated to identify, target, investigate, prosecute and dismantle those drug trafficking organizations that have the greatest adverse impact on Virginia’s communities.

This case is being prosecuted by Assistant United States Attorney Lisa Owings on behalf of the United States.

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.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.

ICE delegation travels to Asia to build on international investigative enforcement cooperation

ICE Director Morton signs critical agreements with China, South Korea officials, furthering international cooperation on intellectual property theft enforcement and other matters

On Sept. 10, 2010, U.S. Immigration and Customs Enforcement (ICE) Director John Morton began the first leg of an historic trip to Asia. The trip was the first for any ICE director to South Korea and China. Director Morton visited Seoul, Beijing, Shanghai and Guangzhou over six days. The focus of the trip was to build international investigative cooperation, especially with regard to intellectual property rights (IPR) enforcement between ICE, the principal investigative arm within the Department of Homeland Security, and law enforcement authorities in China and South Korea.

The first stop was Seoul, where Morton and South Korean Prosecutor General Joon Gyu Kim signed a memorandum of understanding on Sept. 13 to increase cooperation and collaboration on some of the most pressing investigative issues under ICE's jurisdiction. These include intellectual property rights enforcement, counter-proliferation, cyber crime, money laundering and human trafficking and smuggling.

Director Morton also visited the Korea Immigration Service and the Korean National Police headquarters where he met with top law enforcement officials from each of these agencies.

In Beijing, China, Morton signed a letter of intent (LOI) on Sept.14 with China's Economic Crimes Investigation Department Director General Meng Qing-feng. Under the LOI, ICE and China agree to cooperatively fight IPR crimes and work together on other matters. IP theft is a serious crime of a predatory nature that undermines innovation and costs jobs throughout the world. IP theft threatens our economic stability and national security, restricts the competitiveness of U.S. industry in world markets and places the public's health and safety at risk.

The conduit for cooperation on IP theft enforcement with the Chinese Government is to be the ICE-led National Intellectual Property Rights Coordination Center (IPR Center) in Arlington, Va. The IPR Center is a true task-force, consisting of 13 domestic and foreign investigative agencies dedicated to IP theft enforcement.

At another major event in Beijing on Sept. 15-the Quality Brands Protection Committee (QBPC) meeting-Morton emphasized the need for U.S. law enforcement and Chinese companies to partner together to thwart IPR crimes. The QBPC includes representatives of more than 180 multinational companies, representing more than $700 billion in investment and thousands of employment opportunities in China. Morton said that IPR crimes cross international borders and pose problems for both China and the United States. He also said private industries have a strong incentive to protect IPR.

"You've made significant investments - but counterfeiters and pirates attempt to hijack that investment for their own gain. Even worse, shoddy or unsafe knock-offs can damage your company's reputation for quality and customer service," said Morton.

Morton also addressed the American Chamber of Commerce of South China, where he was able to meet with representatives of dozens of American companies with interests in China. Morton's message was that the IPR Center and ICE are working tirelessly to address IP theft enforcement so that American companies can focus on innovation and productivity as opposed to spending capital protecting their products.

The China trip also included a visit to the Ministry of Foreign Affairs and the Ministry of Justice in Beijing, meetings with the Public Security Bureaus of Shanghai and Guangzhou and a tour of a U.S. company's manufacturing plant in Guangzhou.

Morton visited the customs agencies in each place they visited, including the Korea Customs Service, China Customs in Beijing and Shanghai Customs.

"It has been a tremendous privilege to visit both South Korea and China on behalf of ICE," said Morton. "Meeting with our counterparts in law enforcement in Asia proved that we share common goals and often face a common enemy in organized criminal enterprises, especially those engaged in IP theft. The agreements we reached truly made this trip highly productive and served as another step toward conducting investigations with the coordinated global enforcement necessary to combat transnational crime."

-- ICE --

Former Controller at Manhattan Investment Firm Sentenced in Manhattan Federal Court to 30 Months in Prison for Embezzlement Scheme

PREET BHARARA, the United States Attorney for the Southern District of New York, announced today that RICHARD TEDESCHI, the former Controller of Cain Brothers, a Manhattan-based investment firm, was sentenced today by U.S. District Judge LEWIS A. KAPLAN to 30 months in prison for embezzling more than $734,000 from the firm over a seven-year period.

According to the criminal Information to which TEDESCHI pled guilty, documents previously filed in this case in Manhattan federal court, and statements made in court:

While he was Controller of Cain Brothers, TEDESCHI forged the signatures of officers who had check-signing authority on company checks, and used the company checks to make payments on his personal expenses or to himself directly. TEDESCHI also obtained authorized representatives' signatures on Cain Brothers' checks to make payments on what TEDESCHI represented to be company expenses, but which were actually for his personal expenses. Additionally, TEDESCHI caused unauthorized charges to be made on the firm's American Express account.

In all, TEDESCHI stole over $734,000 from Cain Brothers, more than $633,000 of which was used to pay his personal American Express bills. TEDESCHI directed $7,500 to payment on a home equity loan; $2,500 to the payment of telephone bills; and $12,000 to personal expenses charged on Cain Brothers' credit card account. He also caused Cain Brothers to pay him directly approximately $79,000.

On March 18, 2010, TEDESCHI, 51, of Morris Plains, New Jersey, pled guilty to one count of mail fraud and one count of aggravated identity theft.

In addition to the term of imprisonment, Judge KAPLAN also sentenced TEDESCHI to three years of supervised release and ordered that he pay $521,000 in restitution. During the sentencing proceeding, Judge KAPLAN said that TEDESCHI committed a "brazen crime," and called his conduct an "abuse of trust." The Judge added that "the world has to know you can't do this...there's a price [for this conduct], it's not worth the risk."

Manhattan U.S. Attorney PREET BHARARA stated: "With this sentence, Richard Tedeschi's seven-year career of theft from his employer has come to an end. We will continue to partner with the Federal Bureau of Investigation to pursue those who abuse positions of trust to enrich themselves."

Mr. BHARARA praised the work of the Federal Bureau of Investigation in the investigation of this case.

This case is being handled by the Office's Complex Frauds Unit. Assistant U.S. Attorney DAVID I. MILLER is in charge of the prosecution.

Violent Pimp Sentenced to 20 Years in Prison for Sex Trafficking, Witness Tampering, and Interstate Transportation of a Minor for Prostitution

Pierce County Man Used Threats and Violence to Force 17-Year-Old Into Prostitution

JUAN ALEXANDER VIANEZ, a/k/a Nauj, 26 years old, of Lakewood, Washington, and Las Vegas, Nevada, was sentenced today to 20 years in prison, five years of supervised release and was ordered to pay over $1.3 million in restitution for sex trafficking, interstate transportation of a minor in furtherance of prostitution, interstate transportation in furtherance of prostitution, and witness tampering. VIANEZ was convicted by a jury on September 23, 2009, following a six-day trial in front of U.S. District Judge Robert J. Bryan.

At sentencing, Judge Bryan concluded that the defendant engaged in “the slavery of others” and the evidence “takes the case outside of the heartland of the [sentencing] guidelines” in imposing a sentence that was nearly double the term of imprisonment suggested by the United States Sentencing Guidelines. On the witness tampering conviction, Judge Bryan sentenced the defendant to the maximum imprisonment term of 10 years, to run concurrent with the 20-year sentences imposed for the other crimes. Judge Bryan stressed the egregious nature of the crimes, stating, “this marked a multi-year, terribly abusive situation...[we are] not here on a murder charge by luck of the [victim’s] strength and medical intervention, we could easily be here on a murder case.” Along with the lengthy sentence, Judge Bryan imposed a five year term of supervised release which include conditions that VIANEZ register as a sex offender and have no contact with minors, and any witnesses in the case. “[Mr. VIANEZ] is a danger to be at large and extremely likely to reoffend these types of offenses and other similar offenses, and to return to the lifestyle that he adopted...”

According to records in the case and testimony at trial, VIANEZ met the victim in this case when she was just a week past her 17th birthday. VIANEZ convinced the girl to become sexually involved with him. He then pressured her into prostitution to earn money for him. With threats and beatings he kept her isolated in the world of prostitution forcing her to work in Portland, Las Vegas, and Arizona, and returning all money earned to him. As prosecutors wrote in their sentencing memo, “On a nearly weekly basis over the course of four years, the defendant threatened (the victim) with harm, and assaulted her, including punching her in the face, the stomach and ribs. The beatings did not excuse (the victim) from prostituting; she just had to put on more make-up to cover up the bruises.” One of the most severe beatings occurred in 2007, over several days and at two locations in Pierce County. When the victim was taken to the hospital, law enforcement charged VIANEZ with assault. VIANEZ was able to bail out of jail, find the victim in Oregon and manipulated her to hide from police so that the assault charges were dropped. The victim was ultimately located and taken into custody on a federal material witness warrant in October 2008. VIANEZ was arrested at the same time and has been incarcerated ever since.

Based on the value of the victim’s labor and the amount of money VIANEZ made during the time he exploited her, VIANEZ was ordered to pay restitution to the victim of over $1.3 million dollars. VIANEZ isolated the victim from her friends and family, prohibited her from being employed in any legitimate capacity, and forced her to engage in prostitution to earn money for VIANEZ. He used these funds to support a wealthy lifestyle, which included luxury vehicles, condominium and high-end hotel rentals, and vacations in Hawaii and Nevada.

“The FBI is committed to supporting the Innocence Lost Task Force and those cases where the most innocent and vulnerable among us have been targeted and victimized. The task force, which was created for the State of Washington as the result of this case, remained persistent during this lengthy investigation to ensure neither the victim nor other children like her would succumb to VIANEZ’ wiles.” said Laura Laughlin, Special Agent in Charge of the FBI.

The case was investigated by the FBI, the Lakewood Police Department, Tacoma Police Department and the Internal Revenue Service-Criminal Investigations Division.

The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Matthew Thomas.

For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110 or Emily.Langlie@USDOJ.Gov.

Frank Colacurcio Jr. Sentenced to Prison in Strip Club Case

Colacurcio Jr. Forfeits Millions in Cash and Property

FRANK COLACURCIO JR, 48, and corporate defendant MM MR RM CORPORATION were sentenced today in U.S. District Court in Seattle for conspiracy to commit RICO—Racketeer Influenced and Corrupt Organizations. COLACURCIO, JR. agreed to forfeit $1.3 million in cash, all interest in the strip clubs and related property worth more than $6 million, and a $1.7 million property at

8600 Lake City Way

which houses the Colacurcio company “Talents West.” COLACUCIO, JR. was sentenced to one year and a day in prison as called for in the plea agreement signed in June 2010.

Frank Colacurcio, Sr. died in June 2010, still under indictment for the RICO conspiracy. The charges were dismissed against Colacurcio Sr. after his death. During the sentencing hearing U.S. District Judge Richard A. Jones told COLACURCIO, JR. “It appears you followed in the footsteps of your father your entire life.... You are at a crossroads right now in what you do in your life. It is up to you, depending on your conduct, to ensure there is no sequel.” Judge Jones observed that COLACURCIO, JR. was “on the radar screen of the government,” and the judge noted that prosecutors would not hesitate to ask that COLACURCIO, JR. be sent back to prison if he violated the terms of his supervised release.

“With the permanent closure of these strip clubs, divesting the defendants of millions of dollars, and the transfer of the club properties to the government, Seattle is now a safer and cleaner place to live,” said Marcus Williams, the IRS Special Agent in Charge of the Pacific Northwest. “In the end, crime never pays, and the results of this investigation prove that.”

In April 2010, the first group of defendants, all Colacurcio associates, entered guilty pleas and the strip club properties were closed. The strip clubs run by this organization include Rick’s in Seattle, Fox’s in Parkland, Pierce County, Honey’s in Everett and Sugar’s in Shoreline. With this final sentencing, the government will move to take control of the Rick’s, Sugar’s and Talents West properties and put them up for sale. The proceeds of the sales will go to the U.S. Treasury. The government will receive payment equal to the appraised value of Honey’s, and the building has been bulldozed. The corporations and three of the individual defendants—Leroy Richard Christiansen, 68, of Seattle, Washington, David Carl Ebert, 62, of Monroe, Washington and Steven Michael Fueston, 62, of Tacoma, Washington—are barred from operating any adult entertainment business in Washington State for the next five years.

As part of his plea agreement, FRANK COLACURCIO, JR. is also barred from participating in any adult entertainment enterprise in the state of Washington for the three-year term of supervised release which will follow his prison sentence.

The assets of the Colacurcio organization were frozen by the government in June 2008 following a two-year investigation. Members of the conspiracy were indicted in June 2009. The indictment lays out the actions members of the conspiracy took to promote prostitution at the clubs and their failure to stop prostitution when it was reported to them. In various recorded conversations, the Colacurcios and their associates dissuaded dancers and managers from reporting acts of prostitution and repeatedly returned dancers who were arrested for and caught in acts of prostitution back to the clubs. The indictment further details how credit card machines and ATMs were used to facilitate the prostitution and how the proceeds of prostitution were laundered through various bank accounts.

Writing to the court, prosecutors noted that this sentencing is a final chapter in a long running criminal enterprise. “The court’s sentences will ensure that the notorious strip clubs stay closed and that the men who operated the strip clubs be severed completely from the businesses and properties they used to run their illegal operations. And in a final blow that truly strikes at the heart of the defendants’ motivations—namely money—the court’s sentences will ban the defendants from the industry and force them to transfer millions of dollars in real property and assets to the government.... The doors of Rick’s, Sugar’s, Honey’s, and Fox’s will finally be closed for good,” prosecutors wrote in their sentencing memo.

The case was investigated by the FBI, IRS Criminal Investigation (IRS-CI), and Seattle Police Department with assistance from the King County Sheriff’s Department, Everett Police Department, Snohomish County Sheriff’s Office, and the Pierce County Sheriff’s Office.

The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tessa Gorman.

For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110.

Los Angeles human trafficking investigation featured in Reader's Digest

Alone and scared. That's the reality for many victims of human trafficking. Each year, nearly 20,000 people are trafficked to the U.S. - many of them women and children. These individuals endure traumatic journeys to enter the country, and once here, face lives of brutality, slavery and sex.

Journalist Mary A. Fischer details a recent Los Angeles human trafficking investigation led by Immigration and Customs Enforcement (ICE) agent Tracy Cormier in her recent Reader's Digest article, "Freedom Fighter."

Young girls from Guatemala, some as young as 13, were lured to America under the premise of finding "good jobs as nannies and waitresses," according to Fischer. However, she goes on to say, they are forced to live "under appalling conditions, often trapped in an insidious practice known as debt bondage-forced to repay neverending loans to their captors for travel, food, and shelter."

Fischer's article exposes the vile industry of human trafficking and how ICE agents, along with a network of law enforcement agencies, combat it. Those interested in reading the full version of "Freedom Fighter" can find it in the October 2010 Reader's Digest magazine or through a paid subscription to readersdigest.com.

-- ICE --

U.S. Marshals Task Force Ends Female Bank Robber's Crime Spree

Cleveland, Ohio – Wanted fugitive Lateeshia Scott, age 31, was arrested by the U.S. Marshals Northern Ohio Violent Fugitive Task Force at approximately 7:15 pm yesterday at an apartment building on the 2200 block of

E. 83rd Street

in Cleveland. Scott was wanted by the Cleveland Police Department for a bank robbery which occurred on September 4, 2010 at the U.S. Bank at

1958 W. 25th Street

in Cleveland. During the robbery, Scott slipped the teller a note stating she had a firearm and demanded the money. Scott is also a suspect on several other bank robberies in the Cleveland area with the most recent occurring earlier this week.

The fugitive investigation was referred to the Task Force who immediately began searching the city for Scott. Scott was profiled in the local media to include being added as a “Fugitive of the Week” and was also added to the Task Force’s most wanted “Dangerous Dozen” list. Although several tips came in, none were able to identify Scott’s location. The Task Force worked jointly with the Cleveland Police and the Federal Bureau of Investigation (FBI) in an effort to locate Scott quickly before she targeted another bank.

During the investigation, the Task Force identified the residence on

E.83rd Street

as a location that Scott could be hiding. After conducting surveillance, the Task Force was able to confirm that Scott was in the building. During the search of the building, the Task Force was able to locate Scott hiding behind a washer and dryer in the common laundry area of the building. Scott was transported to the Cleveland City Jail to be questioned by Cleveland Police Detectives and the FBI regarding the bank robberies.

Cleveland Police Deputy Chief Ed Tomba stated, “Our partnerships with all the law enforcement agencies benefit both the Cleveland Division of Police and the citizens of the city. This arrest was a great accomplishment and could potentially clear up other crimes in the city.”

Anyone with information regarding the whereabouts of a known fugitive is encouraged to contact the U.S. Marshals Northern Ohio Violent Fugitive Task Force at: 1-866-4-WANTED. Callers may remain anonymous. The Task Force’s “Dangerous Dozen” fugitives can be viewed at http://www.usmarshals.gov/district/oh-n/fugitives/pdf/dangerous_dozen.pdf, which is updated monthly.

The Northern Ohio Violent Fugitive Task Force – Cleveland Division is composed of the following federal, state and local agencies: Bratenahl Police Department, Bureau of Immigration and Customs Enforcement, Chagrin Falls Police Department, Cleveland Police Department, Cuyahoga County Sheriff’s Office, Cuyahoga Metropolitan Housing Authority Police Department, Department of Housing and Urban Development – Office of Inspector General, Euclid Police Department, Lakewood Police Department, Linndale Village Police Department, Ohio Adult Parole Authority, Ohio State Highway Patrol, Social Security Administration - Office of Inspector General, U.S. Coast Guard Investigative Service, U.S. Marshals Service, U.S. Secret Service and the Westlake Police Department.

Federal jury convicts Texas bar owner for sex trafficking and harboring aliens

McALLEN, Texas - A local woman was found guilty on Thursday on three counts of sex trafficking, conspiracy to harbor aliens, and six counts of harboring aliens. The charges stem from an investigation conducted by U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigation (HSI).

Beleal Garcia-Gonzalez, 34, of Mission, Tex., was convicted Sept. 23 after a 3-day jury trial. During the trial, ICE HSI agents testified they learned in January 2010 that underage undocumented aliens were being forced to work at a bar and were being prostituted by the bar's owner, Garcia-Gonzalez. Subsequent investigation revealed that three minors, ages 17, 15, and 14, were working at the bar and being prostituted by Garcia-Gonzalez.

Each of the minors testified during trial that while in Honduras they were promised jobs in the United States working at a restaurant making $700 a week. However, once they arrived in the United States, they learned they would be working at the bar that Garcia-Gonzalez owned, earning $120 a week, much of which was taken to pay the smuggling fees of $4,500 each owed to Garcia-Gonzalez. The minor victims testified that Garcia-Gonzalez told them they could make $3.00 for every beer that a customer bought them. She also told them they would make even more money if they had sex with customers because they would be able to keep whatever money they decided to charge the customer for sex, minus a $50 fee.

After the minors began working at the bar, they realized they were not making any money because Garcia-Gonzalez never paid them. Needing money, they turned to the other option that Garcia-Gonzalez had offered - prostitution. One minor testified she had been with men on six different occasions for which she was paid for having sex.

A co-defendant, Cesar Enrique Sarmiento-Mendoza, who  pleaded guilty prior to trial to sex trafficking, testified that on one occasion, while Garcia-Gonzalez was in Mexico, Garcia-Gonzalez called him to tell him to pick up and transport two of the girls to his house so that two customers could take the girls out. Sarmiento-Mendoza testified he picked up the minors and received the money from the customers for these girls to engage in sex. Another minor testified that on one occasion a customer paid $300 to have sex with her, however, she did not leave with him. Garcia-Gonzalez was upset by her refusal. The minor further testified that although she never left with customers, customers would grope her while she drank beer with them at the bar.

The jury deliberated only briefly before returning the guilty verdicts. Sentencing has been set for Dec. 9, 2010. Garcia-Gonzalez faces a mandatory minimum of 15 years imprisonment on each of the sex trafficking counts, and up to 10 years imprisonment on the other counts, as well as substantial fines.

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-- ICE --

Lobbyist Pleads Guilty to Role in Illegal Campaign Contribution Scheme

WASHINGTON—Paul Magliocchetti, the founder and president of PMA Group Inc., a lobbying firm, pled guilty today in federal court in Arlington, Virginia, to making hundreds of thousands of dollars in illegal campaign contributions and making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.

Magliocchetti was charged in an indictment unsealed on Aug. 5, 2010. According to the indictment, Magliocchetti orchestrated a scheme to make illegal conduit and corporate federal campaign contributions in an effort to enrich himself and PMA by increasing the firm’s influence, power, and prestige among the firm’s current and potential clients as well as among the elected public officials to whom PMA and its lobbyists sought access. The federal campaigns that received these funds were unaware of Magliocchetti’s scheme.

Magliocchetti admitted that, from 2005 through 2008, he used members of his family, friends and PMA lobbyists to make unlawful campaign contributions. Aware of the strict limits on individual federal campaign contributions—and the outright ban on corporate contributions—Magliocchetti admitted that he instructed the conduits to write checks out of their personal checking accounts to specific candidates for federal office and that, for the purpose of making these contributions, Magliocchetti advanced funds to or reimbursed these individuals using personal and corporate monies. Magliocchetti also admitted that, through this scheme, he caused various federal campaign committees to unknowingly create and file false reports with the Federal Election Commission (FEC) regarding the contributions they had received. These reports, which the FEC made available to the public, falsely stated that the conduits had made contributions, when in fact the contributions were made by Magliocchetti or PMA.

“For years, Mr. Magliocchetti, by using conduit contributors, hid the fact that he and his company were donating significant funds to campaigns in violation of the federal election laws. Mr. Magliocchetti, in an effort to cover his tracks, used family, friends and business associates to secretly funnel hundreds of thousands of dollars to political campaigns, all in an effort to enrich himself and increase his power and prestige,” said Assistant Attorney General Lanny A. Breuer. “This case is an important reminder to all who seek to evade the federal campaign finance laws that they will be prosecuted to the full extent of the law.”

“Mr. Magliocchetti is answering for his brazen disregard for the law to achieve political influence and enrich himself,” said U.S. Attorney MacBride. “Campaign finance laws give transparency to political contributions, and protect the public’s ability to see who’s really funding a campaign.”

“Americans should be confident that elections are not being influenced by illegal campaign contributions. Those who undermine this process and use it to gain power and influence should be punished” said Shawn Henry, Assistant Director in Charge of the FBI’s Washington Field Office. “I’m proud of the diligent efforts put forth by special agents from the Defense Criminal Investigative Service and FBI who investigated this matter.”

Magliocchetti pleaded guilty to one count each of making false statements, making illegal conduit contributions, and making illegal corporate contributions. The maximum penalty for making false statements to a federal agency and making illegal campaign contributions from a corporation is five years in prison and a $250,000 fine, to be followed by a term of up to three years of supervised release. The maximum penalty for making illegal campaign contributions in the name of another is five years in prison, a fine of not less than 300 percent of the amount involved in the violation and not more than the greater of $50,000 or 1,000 percent of the amount involved in the violation, and a three-year term of supervised release. Magliocchetti is scheduled to be sentenced on Dec. 17, 2010.

This case is being prosecuted by Deputy Chief Justin V. Shur and Trial Attorneys M. Kendall Day and Kevin O. Driscoll of the Criminal Division’s Public Integrity Section, and by Assistant U.S. Attorney Mark D. Lytle of the U.S. Attorney’s Office for the Eastern District of Virginia. The case is being investigated by the FBI and the Defense Criminal Investigative Service.

Two Men Sentenced to Life in Prison on Murder-for-Hire Charges

ST. LOUIS, MO—The United States Attorney’s Office announced today that James K. Kornhardt and Steven A. Mueller were sentenced to life in prison. Both men were convicted June 14 of conspiracy to commit murder for hire and murder for hire in connection with the October 22,1992, murder of Danny Harold Coleman. James K. Kornhardt was also found guilty of obstructing justice stemming from actions taken by him to destroy a firearm, silencer and ammunition directly related to the October 22, 1992 murder.

According to evidence presented at trial, Karen Coleman recruited a prison inmate, Larry Nolan, beginning in 1990 to arrange the murder of her husband, Danny H. Coleman. Nolan recruited James Kornhardt, a firefighter with the Mehlville Fire Protection District, to commit the murder. Kornhardt recruited Mueller to assist in the murder. On October 22, 1992, Danny Coleman left work at approximately 4:00 p.m. and was later murdered by Kornhardt and Mueller in the City of Saint Louis. Danny Coleman’s body and truck were removed from the murder scene and later found burnt in an isolated field located in Franklin County, Missouri. Following Danny Harold Coleman’s death, Karen Coleman began collecting on certain insurance policies. Kornhardt and Mueller were ultimately paid for their respective roles in the murder from portions of those insurance proceeds.

Danny Coleman’s wife, Karen Coleman, pleaded guilty on June 3, 2010, to the same charges, and was sentenced to 20 years in prison on August 31, 2010.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Franklin County Prosecuting Attorney’s Office, the Federal Bureau of Investigation, the Franklin County Sheriff’s Department, the Missouri State Highway Patrol and the St. Louis County Police Department. Assistant United States Attorneys Thomas Dittmeier and Thomas Rea handled the case for the U.S. Attorney’s Office.