Time to Clean House, America!

America, it is time to clean house and get things in order. With the Presidential election coming up this year, it is time that we take back our government.

I call on all patriots of this great nation to vote out all of the incumbents who have failed their promises of being good stewards of our money and smaller, less-intrusive government.

Each year, I hear the same thing over and over. Why can't our elected officials do this or why can't they do that. I will tell you why, fellow patriot. Because they do not care about anything except for one thing, their re-election.

Think about it. Once they have been elected, most turn it into a career and they enjoy the power that they have. They no longer act as our servants. They expect us to be theirs.

It is time we do something about it. Each election cycle, we do the same thing. We just simply vote them back into office and we expect things to change. If you honestly believe that we get a different outcome by doing the same thing over and over, then be my guest. Continue to re-elect these people back and stop whining. Remember, they are counting on you to act mindlessly and vote them back into office so they can enjoy the fruits of OUR labor. More taxes. More government. Less accountability.

Look for candidates who will not be swayed by lobbyists. Look for candidates who will listen to the people. Look for the candidates who want a smaller, less-intrusive government. Look for the candidates who will act as stewards of our tax money. If that candidate is elected, he or she is our servant and is to do what is needed to keep our nation strong.

TIME TO CLEAN HOUSE, AMERICA!

Four of Six Arrested on New Indictment in Sutter County Benefits Fraud Case

Arrests were made on new charges in a continuing investigation into a fraudulent unemployment and disability benefits scheme based out of Sutter County, United States Attorney Benjamin B. Wagner announced.

“Whether it’s against the employer-funded unemployment insurance program or the employee-funded disability insurance program, fraud is costly to all of us,” said EDD Director Pam Harris. “Our department and its dedicated investigators are committed to detecting and deterring fraud and ensuring justice is served in this case and any other where individuals are cheating a system meant to benefit hard-working Californians and businesses.”

In a 24-count indictment that was unsealed today, a federal grand jury charged Ryan Herbert Smith, 46, of Turlock; Chindo Gharu, 49, of Yuba City; Seema Rajput, 45, of Modesto; Rajinder Kaur Dhillon, 70, of Sacramento; Rajinder Kaur Dhillon 47, of Yuba City; and Balwinder Singh Khangura, 64, of Yuba City and Sacramento, with participating in a scheme to defraud the state of California of unemployment and disability benefits. Smith, Gharu, Rajinder Kaur Dhillon, and Khangura were arrested. The remaining two defendants are expected to self-surrender.

According to the previous indictment, Mohammad Nawaz Khan, 56; Mohammad Adnan Khan, 31; Iqila Begum Khan, 31, all of Live Oak; and Mohammad Shahbaz Khan 56, of Yuba City, controlled a series of companies that were reported to the Employment Development Department as farm labor contractors. The Khans sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. The Khans at times instructed the purchasers how the fake paystubs could be used to fraudulently claim unemployment and disability benefits. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is over $5 million.

According to the new indictment, Smith, Charu, Rajput, Dhillon, Dhillon, and Khangura purchased paystubs that falsely showed they had been paid wages by companies controlled by the Khans. The defendants would then use that paystub to file for unemployment benefits, disability benefits, or both.

The investigation in this case is ongoing to determine the full extent of the fraud.

This case is the product of a joint investigation by the Federal Bureau of Investigation, the Department of Labor-Office of Inspector General, and the Employment Development Department-Investigations Division. Assistant United States Attorney Jared Dolan is prosecuting the case.

The maximum statutory penalty for mail fraud is 20 years in prison and a $250,000 for each count. The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Contractor Indicted on Fraud Charges

A military contractor with offices in Danville, Virginia, and Ontario, Canada, was indicted by a federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Roanoke on charges that it falsely represented the level of protection provided by armored vehicles used by convoys in Iraq.

A grand jury has charged Armet Armored Vehicles and its president, William R. Whyte, 67, of Ontario, with three counts of major fraud against the United States, seven counts of wire fraud, and three counts of false, fictitious, and fraudulent claims.

“The Department of Justice has no higher priority than protecting our national security,” U.S. Attorney for the Western District of Virginia Timothy J. Heaphy said today. “We will work to ensure that the goods provided by contractors to the brave men and women of our military meet safety standards and contract specifications.”

According to the indictment, Armet entered a $4 million contract in April 2006 to provide the Department of Defense with 24 armored vehicles for use in Iraq. In June 2006, Armet entered a second contract to deliver an additional eight armored vehicles. These trucks were to be used as security vehicles to Iraqi “VIPs” who regularly traveled by motorcade through a “hostile and dangerous environment.”

Both contracts included specific requirements for the armoring of the vehicles, including that each vehicle be reinforced to a standard at which an armor-piercing bullet could not penetrate the passenger compartment and ceiling. In addition, the contracts required the undercarriage of each armored truck have mine plating protection that could withstand explosions underneath the vehicles. Finally, the contracts required the armored vehicles to have run-flat tires, plus one spare, so they could continue to operate should their tires be shot out or otherwise flattened.

Despite the requirement in the contract that the first 24 armored gun trucks be delivered by July 31, 2006, Whyte and Armet failed to ship a single vehicle by that deadline. Armet ultimately supplied seven armored vehicles after the contract deadline and was paid $ 2,019,454. Each of these vehicles was delivered with a “Material Inspection and Receiving Report” certifying it met the contract standards.

The indictment alleges that none of the armored gun trucks delivered by Armet and Whyte met the ballistic and blast protection requirements of the contracts, despite the defendant’s claims that the vehicles met the standards. Armet and Whyte knew that each of the six armored gun trucks failed to meet the required standards, that they were defective, and that they would not protect the officials they were intended to protect.

The investigation of the case was conducted by the Defense Criminal Investigative Service, the Special Inspector General for Iraq Reconstruction, the Department of Justice’s Fraud Section, and the FBI. Criminal Chief for the Western District of Virginia Stephen Pfleger, Trial Attorney for the Department of Justice’s Fraud Section Catherine Votaw, and Special Assistant U.S. Attorney Ramin Fatehi will prosecute the case for the United States.

A grand jury indictment is only a charge and not evidence of guilt. These defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

Hamilton Township Mayor Indicted for Alleged Extortion, Bribery, and Money Laundering Offenses

A federal grand jury returned an Indictment today charging the mayor of Hamilton Township, New Jersey in connection with $12,400 in bribes he allegedly solicited and accepted in exchange for his official influence to assist a cooperating witness in maintaining the position of health insurance broker with the township’s school district, U.S. Attorney Paul J. Fishman announced.

John Bencivengo, 58, of Hamilton, was originally charged by complaint in April 2012 with one count of attempted obstruction of commerce by extortion under the color of official right related to the alleged bribes. The indictment adds a count of obstruction of commerce by extortion under the color of official right; two counts of violating the federal Travel Act, for allegedly causing the interstate travel of a cooperating witness (the “CW”) and using a facility in interstate commerce in aid of the bribery scheme; and one count of money laundering.

According to the indictment and other documents filed in this case:

While serving as mayor between May 2011 and July 2011, Bencivengo accepted payments totaling $12,400 from the CW. In exchange, Bencivengo agreed to use his official assistance, action, and influence to assist the CW and the CW’s employer—identified in the indictment as the “Insurance Broker”—to retain the position as health insurance broker for the Hamilton Township School District. Bencivengo agreed to speak to a member of the School District’s Board of Education—identified in the indictment as “School Board Member No. 1”—about retaining the CW as the school district’s health insurance broker instead of putting that position out for public bid; and agreed to let the CW choose the individual to replace another member of the school board—identified in the indictment as “School Board Member No. 2”—if that member left the board to run for the New Jersey Assembly.

Bencivengo received the $12,400 in multiple payments. The CW passed a $5,000 check to an intermediary who accepted it on Bencivengo’s behalf. Bencivengo, the intermediary, and the CW later agreed to make the check payable to the intermediary’s spouse to further conceal the payment. In addition, Bencivengo, the intermediary, and the CW agreed to put the notation “cherry bedroom set” on the check, agreeing that if anyone asked about the payment, they would say that the CW bought a bedroom set from the intermediary’s spouse. After receiving the check, the intermediary deposited the check and distributed the proceeds to Bencivengo in cash increments over several weeks.

In one of the meetings recorded during the course of the investigation, Bencivengo told the CW that he needed $7,400 to pay his outstanding taxes. The CW responded, “7,400 is definitely doable, as long as you got my back with [School Board Member No. 1].” To which Bencivengo responded, “When have I ever not had your back?” When the CW said, “Come January, [School Board Member No. 1 is] gonna want to go out to bid. You got to definitely get to [School Board Member No. 1],” Bencivengo responded, “I’m gonna.” The CW also reminded Bencivengo that if School Board Member No. 2 was elected to the Assembly, the CW needed to pick the person to replace School Board Member No. 2 on the board.

Bencivengo subsequently received $7,400 in cash from the CW in July 2011, broken into two payments.

The extortion and attempted extortion counts charged in counts one and two each carry 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. The violations of the Travel Act contained in counts three and four each carry a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Count five, which charges money laundering, carries a maximum potential penalty of 20 years and a fine of $500,000, or twice the value of the property involved in the transaction. The indictment also seeks forfeiture of the $12,400 in alleged bribe payments.

U.S. Attorney Fishman credited special agents of the FBI’s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Michael B. Ward, for the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Harvey Bartle of the U.S. Attorney’s Office Special Prosecutions Division in Trenton.

The charges and allegations made in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

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

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 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.

The Supplemental Nutrition Assistance Program

The Supplemental Nutrition Assistance Program (SNAP) provides benefits to help people in low-income households purchase food. In fiscal year 2010, households receiving SNAP benefits had annual income (other than those benefits) that averaged about $8,800; SNAP benefits averaged about $4.30 per person per day.

SNAP spending and participation reached record levels in 2011

Nearly 45 million recipients, one out of every seven U.S. residents, received SNAP benefits in an average month in fiscal year 2011. Total federal spending for the program was $78 billion.

Spending on SNAP benefits grew by about 135 percent between 2007 and 2011

Spending growth was driven by increases in the number of people receiving benefits and by increases in benefit amounts per person.

• About 65 percent of growth came from an increase in the number of people receiving benefits. That increase was driven primarily by the weak economy.
• About 20 percent of growth can be attributed to temporarily higher benefit amounts. That increase was legislated in the American Recovery and Reinvestment Act of 2009.
• The final 15 percent of growth stems from other factors, such as higher food prices and lower income among beneficiaries, both of which boosted benefits.