21 citizens of the Dominican Republic have been charged with conspiring to impersonate United States law enforcement officers, extortion, and wire fraud. Beginning two weeks ago, authorities in the Dominican Republic, acting on requests from the United States, located and arrested 17 of the defendants in the Dominican Republic, who are now awaiting extradition proceedings in that country. Four defendants remain at-large.
The defendants are alleged to have engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government. The defendants targeted individuals who they believed had illicitly purchased prescription pharmaceuticals through call centers located in the Dominican Republic. As part of the defendants’ scheme, a member of the conspiracy would call a victim located in the United States and identify himself or herself as a DEA agent or representative of another United States agency. The victim would then be told that he or she was under investigation for illegally purchasing prescription drugs, and that the only way to avoid arrest and jail would be to pay a “fine” or some other fee to the DEA. In total, the defendants and others who participated in this scheme and copy-cat schemes demanded at least $3.5 million, and received at least $880,000, in extortionate payments from victims in the United States.
“These alleged criminals not only bilked thousands of dollars from unsuspecting Americans but they also called into question the integrity and honor of the DEA and all law enforcement,” Administrator Leonhart said. The DEA, with the assistance of our Dominican Republic counterparts, have worked diligently to identify, target and, ultimately, dismantle this group of alleged scam artists. We urge anyone who receives a similar threatening phone call to hang up and contact local or federal law enforcement immediately.”
United States Attorney Bharara said: “These defendants generated untold millions of dollars in illicit profits by posing as DEA Agents or other U.S. law enforcement officers. They carried out the internet or telephone equivalent of displaying phony badges to rip off their victims. In the process, the defendants assaulted the good name of the DEA. We commend the DEA for putting a stop to this criminal charade.”
According to the Indictment, which was unsealed in Manhattan federal court:
From at least 2008, up to and including March 2013, JULIO SANTANA JOSEPH, FRANCISCO RUBIO MONTALVO, ANGEL PEREZ AVILES, a/k/a “Mike,” DEIVY BURGOS FELIX, CHENGY PADILLA GARO, GEURY GUZMAN ROSA, DANTE CAMINERO VASQUEZ, SAUL HERNANDEZ BATISTA, MOISES DE LA CRUZ DECENA, CELSO MIGUEL SARITA, EDWARD CUEVAS ESCANO, SANTIAGO GUZMAN GONZALEZ, JOSE ARISMENDY CUESTA ABREU, CARLOS PERDOMO ROSARIO, a/k/a “El Depo,” ELINSON REYES ALMONTE, YEURY AMARANTE ROSARIO, MARIO ANTONIO PLACIDO, YGNACIO ESTEVEZ MESSON, BORIS GIL GUERRERO, VICTOR VELASQUEZ ROCHTTIS, a/k/a “Vitico,” and RAFAELA MEDINA, a/k/a “Carolina,” the defendants, and others known and unknown, engaged in a scheme to extort money from individuals located in the United States by posing as DEA Agents or other representatives of the United States Government (the “Impersonation and Extortion Scheme”). Each of the defendants made extortionate calls and/or received money from victims who had been extorted. The Impersonation and Extortion Scheme targeted individuals who the defendants believed had purchased prescription drugs unlawfully over the internet or through call centers. The illicit websites and call centers at issue sold pills to customers that would typically require a doctor’s prescription to purchase. The illicit websites and call centers did not require consumers to obtain the required prescriptions before purchase (hereinafter, the pills sold in this manner are referred to as the “Prescription Drugs”).
The DEA Impersonation and Extortion Scheme typically operated as follows: First, certain of the defendants and other individuals not named as defendants who engaged in the Impersonation and Extortion Scheme (the “Extorters”) purchased, or otherwise obtained, lists of individuals who the Extorters believed had previously purchased Prescription Drugs over the internet on illicit websites or through illicit call centers located in the Dominican Republic (“Customer Lists”). The Customer Lists generally contained the names, addresses, credit card numbers and other information for individuals located in the United States.
Second, an Extorter contacted a customer from the Customer Lists (the “victim”) and identified him- or herself as a DEA agent or representative of another United States agency. Often, the Extorter provided the name of an actual DEA supervisor from a DEA office located in the United States. The Extorters attempted to extort money from victims throughout the United States, including victims in Manhattan and the Bronx, New York.
During a call with a victim, an Extorter falsely informed the victim that authorities in the Dominican Republic or elsewhere were investigating or criminally charging the victim as a result of his or her illegal purchase of Prescription Drugs that were sent to the victim from the Dominican Republic. In a single call or series of calls and emails, the Extorter detailed the purported criminal charges and potential penalties facing the victim, including imprisonment, and the likelihood that the victim would be arrested and extradited to a foreign country for prosecution.
During a call with the victim, an Extorter also generally informed the victim that he or she could dispose of, or avoid, the criminal charges by making a cash payment. In order to do so, the Extorter had the victim transfer between several hundred and several thousand dollars either (i) through a money remitting service to a particular individual in the Dominican Republic, or (ii) via wire transfer to a particular bank account located in the Dominican Republic.
Following receipt of a payment from a victim, an Extorter typically contacted the victim again. During the follow-up conversations, the Extorter demanded additional payments and threatened to have criminal charges re-filed against the victim. If the victim refused to make, or to continue to make, extortion payments to the Extorter, the Extorter threatened the victim with his or her imminent arrest, with searches of the victim’s home in the United States by federal law enforcement officers, or with public disclosure of the victim’s prior purchases of Prescription Drugs.
The Extorters typically made extortion calls from illicit call centers located in the Dominican Republic (the “Call Centers”). In these Call Centers, the Extorters gathered together and used multiple computers equipped with Voice Over Internet Protocol (“VOIP”) technology to make extortion calls to victims listed on a Customer List. VOIP is a means of transmitting digital voice communications over the internet via a high-speed internet connection. The VOIP technology allowed the Extorters to contact their victims by using VOIP lines that made it appear as though the Extorters were calling from telephone numbers with area codes from within the United States. For example, the Extorters used VOIP lines that made it appear as though the Extorters were calling from, among other places, Washington, D.C., and New York, New York, when, in truth, the Extorters were located in the Dominican Republic. The Extorters often made hundreds of extortion calls a day from these Call Centers to victims in the United States.
Once a particular victim made an extortion payment to one of the Extorters, the Extorter who received that payment often shared that victim’s contact information with other Extorters, who then besieged the victim with additional, repeated extortion attempts via telephone. While using these lines to further the Impersonation and Extortion Scheme, the Extorters often traded tips with other Extorters in the same Call Center on the best techniques to use to extort victims.
Beginning in June 2010, the DEA established a telephone hotline (the “Hotline”), to allow victims to report extortion attempts and other contacts with the defendants and other individuals who engaged in the Impersonation and Extortion Scheme and who posed as DEA and other federal agents. Since the Hotline was established in June 2010, through January 2013, the DEA received approximately 6,500 reports from victims of extortion attempts, nearly all of which followed substantially the same pattern described above. In sum, through the Hotline, the DEA has learned of the Extorters’ efforts to obtain over $3.5 million in extortion payments from victims, and of actual extortion payments from victims to the Extorters of over $880,000. These attempted Extortions and actual extortion payment amounts reflect only what was reported to the DEA through the Hotline, and thus represent only a portion of the extortion payments that the Extorters have attempted to obtain, or actually obtained, from their victims.
Each of the defendants has been charged with one count of conspiracy to commit wire fraud, and one count of conspiracy to commit extortion, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Each of the defendants has also been charged with one count of conspiracy to impersonate a United States law enforcement officer, which carries a maximum potential penalty of 5 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Sunday, June 01, 2014
Saturday, May 31, 2014
Elementary School Construction Project Subcontractor Has Reputed Chicago Syndicate Ties
A company with alleged ties to Chicago organized crime has been brought on as a subcontractor for a Park Ridge elementary school construction project.
A green dumpster belonging to D&P Construction recently appeared outside Field School, 707 Wisner St., ahead of an air conditioning, heating and ventilation project slated to occur this summer.
Scott Mackall, Director of Facility Management for Park Ridge-Niles School District 64, said he was told D&P is providing only the dumpster for the project and was subcontracted by Palatine-based Bergen Construction Corporation, which is the company performing the bulk of the work. “We’re writing [Bergen] the checks,” Mackall said.
The Better Government Association reported in 2012 that the FBI believes D&P Construction is run by two brothers with Chicago mob connections: Peter DiFronzo and John “No Nose” DiFronzo. During the 2007 “Family Secrets” mob trial in Chicago, the BGA said John DiFronzo was implicated in the murders of two mob brothers, but was not charged with a crime.
According to a 2008 report by the BGA and the Chicago Sun-Times, D&P “was the focus of a Gaming Board disciplinary case that stopped Emerald Casino Inc. from building a floating gambling barge in Rosemont in 2001.” The report also stated that the Gaming Board “linked D&P to individuals who have been identified as known members of organized crime.”
D&P Construction has been used on projects for a number of Chicago Public Schools, according to a 2011 investigation by the BGA and Fox 32.
Mackall said he was unaware of the allegations of mob ties and D&P Construction. “I’ve never heard that at all,” he said.
A representative from Bergen Construction could not be immediately reached for comment.
The Field School construction project, slated to be complete by Aug. 8, will install air conditioning in the school, in addition to heating and ventilation upgrades and asbestos abatement. Field is the last of the District 64 schools to receive air conditioning.
The project, said Mackall, came in under budget at $4.5 million. The contract awarded in February identified the total cost at $5.33 million.
“The bids came in very competitive. They were quite a bit lower than we anticipated,” Mackall said.
Other building projects slated to occur around the district this summer include security upgrades at each school building costing a total of $337,425. The upgrades consist of security cameras on school property, changes in door access and a system that will run the driver’s licenses or state IDs of building visitors through a registered sex offender database.
Thanks to Jennifer Johnson.
A green dumpster belonging to D&P Construction recently appeared outside Field School, 707 Wisner St., ahead of an air conditioning, heating and ventilation project slated to occur this summer.
Scott Mackall, Director of Facility Management for Park Ridge-Niles School District 64, said he was told D&P is providing only the dumpster for the project and was subcontracted by Palatine-based Bergen Construction Corporation, which is the company performing the bulk of the work. “We’re writing [Bergen] the checks,” Mackall said.
The Better Government Association reported in 2012 that the FBI believes D&P Construction is run by two brothers with Chicago mob connections: Peter DiFronzo and John “No Nose” DiFronzo. During the 2007 “Family Secrets” mob trial in Chicago, the BGA said John DiFronzo was implicated in the murders of two mob brothers, but was not charged with a crime.
According to a 2008 report by the BGA and the Chicago Sun-Times, D&P “was the focus of a Gaming Board disciplinary case that stopped Emerald Casino Inc. from building a floating gambling barge in Rosemont in 2001.” The report also stated that the Gaming Board “linked D&P to individuals who have been identified as known members of organized crime.”
D&P Construction has been used on projects for a number of Chicago Public Schools, according to a 2011 investigation by the BGA and Fox 32.
Mackall said he was unaware of the allegations of mob ties and D&P Construction. “I’ve never heard that at all,” he said.
A representative from Bergen Construction could not be immediately reached for comment.
The Field School construction project, slated to be complete by Aug. 8, will install air conditioning in the school, in addition to heating and ventilation upgrades and asbestos abatement. Field is the last of the District 64 schools to receive air conditioning.
The project, said Mackall, came in under budget at $4.5 million. The contract awarded in February identified the total cost at $5.33 million.
“The bids came in very competitive. They were quite a bit lower than we anticipated,” Mackall said.
Other building projects slated to occur around the district this summer include security upgrades at each school building costing a total of $337,425. The upgrades consist of security cameras on school property, changes in door access and a system that will run the driver’s licenses or state IDs of building visitors through a registered sex offender database.
Thanks to Jennifer Johnson.
Friday, May 30, 2014
State Audit Director, Delrice J Augustus, Convicted of Theft
Delrice J. Augustus, age 34, of Baton Rouge, Louisiana, pled guilty before U.S. District Judge Shelly Dick to a superseding bill of information charging him with theft from a federally funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A), and forfeiture. Augustus faces up to 10 years’ imprisonment, a fine up to $250,000, forfeiture of the proceeds of the offense, and up to three years of supervised release following imprisonment. A sentencing date has not yet been set.
As required by the plea agreement, Augustus has resigned his position as the director of the Bureau of Auditing and Compliance Services for DCFS, a state agency that receives over a billion dollars in federal funding annually. As director, Augustus reported directly to the secretary of DCFS and led the office responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
Augustus admitted to using his official position to defraud DCFS out of between $120,000 and $200,000 through the following three schemes.
U.S. Attorney Green stated, “This case is a great illustration of federal and state agencies successfully working together to root out public corruption. Federal funding is often distributed through state and local entities and the integrity of that distribution network and those entrusted to protect it is vitally important. Our office, together with our federal, state, and local partners, will continue to aggressively battle public corruption wherever found.”
Louisiana Inspector General Stephen Street commented, “The most disappointing thing about this case is the position of high trust held by Mr. Augustus within DCFS. He took full advantage of that trust to steal money from the taxpayers. Today’s guilty plea should send a clear message that the law enforcement community has zero tolerance for this sort of corruption, and will continue working together relentlessly to bring about criminal consequences for it. I want to again acknowledge and thank LSP Colonel Mike Edmonson, U.S. Attorney Walt Green, and FBI Special Agent in Charge Michael Anderson for the outstanding work done by their respective staffs on this case.”
Colonel Mike Edmonson, Louisiana State Police Superintendent, stated, “There are no boundaries when it comes to federal, state, and local law enforcement working together to fight corruption at any level. The public demands that people in trusted positions are kept to and held to a higher standard of integrity. Violations of the public trust must be dealt with swiftly and directly.”
As required by the plea agreement, Augustus has resigned his position as the director of the Bureau of Auditing and Compliance Services for DCFS, a state agency that receives over a billion dollars in federal funding annually. As director, Augustus reported directly to the secretary of DCFS and led the office responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
Augustus admitted to using his official position to defraud DCFS out of between $120,000 and $200,000 through the following three schemes.
- Augustus admitted to fraudulently misusing government purchasing cards to obtain items for personal use for himself and others, including an installed dishwasher, televisions, movies, cameras, wireless audio systems (such as Sonos and Jawbone), gaming devices (such as Xboxes, Wiis, and Leapsters), mobile devices (such as iPads, Kindle Fires, and an iPhone 5), Dyson vacuums, rental vehicles, hotel rooms, and fuel.
- Augustus admitted to misusing and causing others to misuse state travel and gas cards to pay for personal travel and entertainment expenses for himself and others, including gas, rental vehicles, and hotel stays. One such occasion involved purchasing hotel suites in New Orleans for Mardi Gras and the NBA All-Star Game.
- Augustus admitted to engaging in a scheme to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Augustus would sign and submit reimbursement claims for expenses he falsely claimed to have incurred as part of his official duties. Augustus would cause the signature of the secretary of the Louisiana Department of Children and Family Services to appear on his fraudulent reimbursement claims as approving such claims, when, in fact, the secretary had neither approved the claims nor authorized her signature to be used in such a manner. Augustus would also create fraudulent documents reflecting that C.P. and K.G., who were employees in the Auditor’s Office, had incurred certain expenses related to official travel. C.P. and K.G. would sign the fraudulent reimbursement requests as the requesting employees, and Augustus would sign as the approving supervisor. The state would pay the requested amount to C.P. and K.G., who would split the proceeds with Augustus.
U.S. Attorney Green stated, “This case is a great illustration of federal and state agencies successfully working together to root out public corruption. Federal funding is often distributed through state and local entities and the integrity of that distribution network and those entrusted to protect it is vitally important. Our office, together with our federal, state, and local partners, will continue to aggressively battle public corruption wherever found.”
Louisiana Inspector General Stephen Street commented, “The most disappointing thing about this case is the position of high trust held by Mr. Augustus within DCFS. He took full advantage of that trust to steal money from the taxpayers. Today’s guilty plea should send a clear message that the law enforcement community has zero tolerance for this sort of corruption, and will continue working together relentlessly to bring about criminal consequences for it. I want to again acknowledge and thank LSP Colonel Mike Edmonson, U.S. Attorney Walt Green, and FBI Special Agent in Charge Michael Anderson for the outstanding work done by their respective staffs on this case.”
Colonel Mike Edmonson, Louisiana State Police Superintendent, stated, “There are no boundaries when it comes to federal, state, and local law enforcement working together to fight corruption at any level. The public demands that people in trusted positions are kept to and held to a higher standard of integrity. Violations of the public trust must be dealt with swiftly and directly.”
Ronald Joseph Olah, Jr. Sentenced in Connection with Fraudulent Scheme to Develop Fitness Facility
Ronald Joseph Olah, Jr., age 35, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge James J. Brady to serve eight months’ incarceration in a halfway house and two years of probation for his role in a fraudulent scheme to secure financing for a new fitness facility in Baton Rouge.
The sentence arises from an investigation into fraud in connection with an effort by Olah and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, Olah and a co-defendant, Matthew Scott Bernard, were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, Olah and Bernard made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that Olah was operating at the time. The indictment alleged that the defendants obtained loans from two different banks and an out-of-state investor, based on their false statements. Bernard pled guilty to bank fraud on August 14, 2013, and Olah pled guilty to wire fraud on November 5, 2013.
Olah appeared before Judge Brady for sentencing, and was sentenced to serve eight months’ incarceration in a halfway house, two years of probation, to pay restitution in the amount of $575,242.82, and to pay a special assessment of $100. Finally, as part of his sentence, Olah has been ordered to forfeit an additional $325,343 in proceeds from the fraudulent scheme.
Olah’s co-defendant, Bernard, was previously sentenced to serve 41 months in federal prison for his role in the scheme.
The sentence arises from an investigation into fraud in connection with an effort by Olah and others to develop a new gym in Baton Rouge, to be called Powerhouse Gym of Baton Rouge. On May 30, 2013, Olah and a co-defendant, Matthew Scott Bernard, were charged by a federal grand jury with bank fraud, making false statements to a bank, and wire fraud. The indictment alleged that in 2011, while attempting to secure financing for a new gym that they sought to develop, Olah and Bernard made numerous false representations to two local banks regarding their personal financial resources, their incomes, and the financial condition of an existing gym that Olah was operating at the time. The indictment alleged that the defendants obtained loans from two different banks and an out-of-state investor, based on their false statements. Bernard pled guilty to bank fraud on August 14, 2013, and Olah pled guilty to wire fraud on November 5, 2013.
Olah appeared before Judge Brady for sentencing, and was sentenced to serve eight months’ incarceration in a halfway house, two years of probation, to pay restitution in the amount of $575,242.82, and to pay a special assessment of $100. Finally, as part of his sentence, Olah has been ordered to forfeit an additional $325,343 in proceeds from the fraudulent scheme.
Olah’s co-defendant, Bernard, was previously sentenced to serve 41 months in federal prison for his role in the scheme.
The Legendary Voices Collection for Anyone who Loves the All-time Classics
Behind every great song, there's a great singer.
This May,
StarVista Entertainment/Time Life debuts a singular CD set for anyone who loves the all-time classics of the 50s, 60s and 70s performed by the greatest talents of their time: THE LEGENDARY VOICES COLLECTION.
Never before has one CD collection gathered together the greatest singers of our lifetime singing their biggest hits, but in this timeless set, fans of the era will hear everything from Elvis crooning "Love Me Tender" and Bobby Darin singing "Mack the Knife" to Ray Charles' "Georgia on My Mind" among many, many others. THE LEGENDARY VOICES COLLECTION, features 9 CDs, a bonus CD of instrumental favorites, and liner notes, and will be available exclusively.
Featuring 150 unforgettable songs spread over 10 CDs, THE LEGENDARY VOICES COLLECTION includes artists such as Johnny Mathis, Nat King Cole, Tony Bennett, Bobby Darin, Patsy Cline, Perry Como, Andy Williams, as well as selected vocal groups such as The Mills Brothers, The McGuire Sisters, The Righteous Brothers, The Everly Brothers and The Lettermen.
THE
LEGENDARY VOICES COLLECTION features vocalists and songs including:
This May,
StarVista Entertainment/Time Life debuts a singular CD set for anyone who loves the all-time classics of the 50s, 60s and 70s performed by the greatest talents of their time: THE LEGENDARY VOICES COLLECTION.
Never before has one CD collection gathered together the greatest singers of our lifetime singing their biggest hits, but in this timeless set, fans of the era will hear everything from Elvis crooning "Love Me Tender" and Bobby Darin singing "Mack the Knife" to Ray Charles' "Georgia on My Mind" among many, many others. THE LEGENDARY VOICES COLLECTION, features 9 CDs, a bonus CD of instrumental favorites, and liner notes, and will be available exclusively.
Featuring 150 unforgettable songs spread over 10 CDs, THE LEGENDARY VOICES COLLECTION includes artists such as Johnny Mathis, Nat King Cole, Tony Bennett, Bobby Darin, Patsy Cline, Perry Como, Andy Williams, as well as selected vocal groups such as The Mills Brothers, The McGuire Sisters, The Righteous Brothers, The Everly Brothers and The Lettermen.
THE
LEGENDARY VOICES COLLECTION features vocalists and songs including:- Andy Williams/ "Moon River"
- Ben E. King/ "Stand by Me"
- Bobby Darin/ "Beyond the Sea"
- Bobby Vinton/ "Blue Velvet"
- Dean Martin/ "Volare (Nel Blu Di Pinto Di Blu)"
- Dinah Shore with Henri René and His Orchestra/ "Love and Marriage"
- Dionne Warwick/ " I'll Never Fall in Love Again"
- Elvis Presley/ "Love Me Tender"
- Engelbert Humperdinck/ "After the Lovin'"
- Etta James/ "At Last"
- Frank Sinatra/ "Night and Day"
- Frankie Valli/ "Can't Take My Eyes off You"
- Judy Garland/ "Over the Rainbow"
- Lena Horne with Orchestra conducted by Lennie Hayton/ "Stormy Weather"
- Patsy Cline/ "Crazy"
- Peggy Lee/ "Fever"
- Perry Como with Mitchell Ayres and His Orchestra and the Ray Charles Singers/ "Papa Loves Mambo"
- Ray Charles/ "Georgia on My Mind"
- Roger Williams/ "Born Free"
- The Everly Brothers/ "Bye Bye Love"
- The Five Satins/ "In the Still of the Nite"
- The Four Aces Featuring Al Alberts/ "Love Is a Many-Splendored Thing"
- The Four Coins/ "Shangri-La"
- The Lettermen/ "The Way You Look Tonight"
- The Platters/ "Only You (And You Alone)"
- The Righteous Brothers/ "You've Lost That Lovin' Feelin'"
- This Ole House/ "Rosemary Clooney"
- Tom Jones/ "It's Not Unusual"
- Tony Bennett with Percy Faith & His Orchestra/"Rags to Riches"
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