Department of Justice

Office of Public Affairs

FOR IMMEDIATE RELEASE

Wednesday, August 15, 2012

Delaware Company Fined for Unlawful Discharges of Oil in Jefferson Parish, Louisiana

Cedyco Corporation Ordered to Cease All Operations in Louisiana and Divest Itself of Its Hydrocarbon Business Interests in the State

WASHINGTON – A Delaware company was fined $557,000 for negligently discharging oil into the bayous of Jefferson Parish, La., the Department of Justice announced.  
 
Cedyco Corporation, headquartered in Houston, was sentenced today in federal court in the Eastern District of Louisiana.
On May 23, 2012, Cedyco pleaded guilty to three counts of violating the Federal Water Pollution Control Act (Clean Water Act).   The Clean Water Act makes it a misdemeanor to negligently discharge harmful quantities of oil into navigable waters of the United States.

All of the fine money will be directed to the Oil Spill Liability Trust Fund to aid the U.S. Coast Guard in responding to future oil spills.   Additionally, Cedyco also agreed to cease operations and divest itself of all hydrocarbon business interests in the state of Louisiana.
“We owe a debt of gratitude to the men and women of the U.S. Coast Guard along with EPA-CID and Louisiana DEQ for their continued vigilance in protecting our precious environment and water resources from companies and individuals who discharge oily waste into our waters,” said Jim Letten, U.S. Attorney for the Eastern District of Louisiana.  “We will remain committed to the apprehension and punishment of these violators in defense of our environment. The protection of our precious environment is a critical mission which we take very seriously.  Simply stated, we will not tolerate the negligent contamination of our waterways.”
“It’s important that we hold polluters accountable for their actions, and today's sentence does this,” said Captain Peter Gautier, Commander of Coast Guard Sector New Orleans.  “I applaud the efforts of our partner agencies and internal investigators for their tireless efforts in prosecuting this case.   The Coast Guard, EPA, LDEQ and Department of Justice will continue to hold polluters responsible for their actions.”
“Our nation’s environmental laws are designed to protect oceans and inland waterways from illegal and harmful pollutant discharges,” said Ivan Vikin, Special Agent in Charge of EPA’s criminal enforcement program in Louisiana.  “Today’s sentence sends a clear message that companies that refuse to operate lawfully and pollute our waters, threatening people's health and the environment, will be vigorously prosecuted.”

Cedyco owned and operated several hydrocarbon facilities, including fixed barges, platforms and wells, in the brackish bayous of South Louisiana.   As a general matter, Cedyco’s facilities were poorly maintained and operated without plans and permits required by regulations issued by the Louisiana Department of Environmental Quality (LDEQ) as administrator of the federal Clean Water Act.   Cedyco’s negligent operation and poor maintenance of three of its facilities in Jefferson Parish led to harmful discharges of oil into the navigable waters of the United States.   The three facilities are the tank battery known as the “Bayou St. Denis facility,” the production and storage facility known as the “Bayou Dupont facility,” and the production well adjacent to the Bayou Dupont facility known as “Well #10.”   Each facility will be addressed in turn.
“DEQ and its partners are dedicated to policing and enforcing environmental laws.  Today’s sentence further illustrates that commitment,” said LDEQ Secretary Peggy Hatch.

Cedyco’s Bayou St. Denis facility was a tank battery located south of the Barataria Waterway.   A May 29, 2008, joint inspection by the U.S. Coast Guard (USCG) and LDEQ revealed that the facility was storing oil without the required Facility Response Plan, Spill Prevention and Control Plan, and LDEQ permit as required under Clean Water Act regulations.   The condition of the facility was extremely poor with corroded pipes and spilled oil on the deck.  On June 15, 2008, enough oil was leaking from the facility that a sheen was visible on the surface of the water.   A fisherman reported this sheen to the USCG, and a subsequent site visit by LDEQ on June 20, 2008, confirmed that oil was leaking into the adjacent waterway from the facility’s outfalls.

Cedyco’s Bayou Dupont facility is an oil storage and production platform located to the northeast of Bayou St. Denis, close to the Plaquemines Parish line.   From Feb. 18, 2008, to May 19, 2008, Cedyco operated this facility without a Facility Response Plan, Spill Prevention and Control Plan and LDEQ permit.   A joint USCG and LDEQ inspection on Feb. 19, 2008, revealed that the facility was in extremely poor condition with pools of oily water and emulsified oil on the deck, as well as ample evidence of extensive corrosion and leaks.   The required spill response equipment was either missing or defective.   For example, an absorbent boom meant to soak up oil spills had a plant growing out of it.   During rain events that took place from Feb. 19, 2008, through May 18, 2008, the deck oil made its way unimpeded into the bayou through unfiltered outfalls and cracks in the deck and containment structures.   The sources of this oil were not only chronic leaks and occasional spills, but at times resulted from acute events such as the leak from the slop oil tank that occurred on May 18, 2008.   The May 18 slop oil tank spill was observed by an LDEQ inspector who took photographs at the scene.   During the charged period, the quantity of oil that was present on the deck of Bayou Dupont facility was sufficient to cause a sheen when rain caused the oil to wash into the adjacent waterway.  

Cedyco’s Well #10 is located in an area of bayou adjacent to the Bayou Dupont facility.   Cedyco did not properly maintain Well #10, and as a result of that negligence, the well began to leak on or about May 17, 2008.    The leak continued for at least two days.   Before it was contained with boom, the leak resulted in an oily sheen that was detected as far as two miles downstream from the well.   The leaking oil also resulted in an emulsion being deposited on the adjacent shoreline.
 
The case was investigated by agents of CGIS and Environmental Protection Agency-Criminal Investigation Division (EPA-CID) and by USCG and LDEQ inspectors.   The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section and Dorothy “Dee” Taylor of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Filed photo exhibits are available at the U.S Coast Guard website:http://cgvi.uscg.mil/media/main.php?g2_itemId=1627304.

Coeur d’Alene Man Pleads to Wire Fraud
Scheme Cost Victim $108,610

U.S. Attorney’s OfficeAugust 14, 2012

District of Idaho(208) 334-1211

COEUR D’ALENE—James Andrew Harris, 44, of Coeur d’Alene, Idaho, pleaded guilty yesterday in United States District Court to wire fraud, U.S. Attorney Wendy J. Olson announced.

According to the indictment and the factual basis read in court today, Harris contacted a Florida resident by telephone about an investment opportunity. Harris told the individual that he had a “connection” in the beef industry who helped restaurants, supermarkets, and other purchasers of beef finance their purchases. Harris represented that there was a great deal of money to be made in financing the purchases and encouraged the individual to participate. To help facilitate the illusion of a partner, Harris utilized an e-mail account, ibuybeef@yahoo.com, and represented “Cody E” as the partner transmitting e-mail messages. The individual agreed to participate and sent numerous wire transfers totaling $108,610.27. The government is seeking restitution for the victim.

The charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.

Sentencing is set for November 5, 2012, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.

The case was investigated by the Federal Bureau of Investigation.

Florida Man Convicted of Selling Stolen Art, Evading Taxes on More Than $1.4 Million in Income, and Structuring Financial Transactions

U.S. Attorney’s OfficeAugust 14, 2012

Central District of California(213) 894-2434

LOS ANGELES—A Florida man was convicted today on federal charges of selling and possessing paintings stolen from a Los Angeles art gallery, tax evasion on more than $1.4 million in income, and structuring financial transactions of $226,000 to avoid federal reporting requirements while released on bond.

Matthew Taylor, 44, of Vero Beach, Florida, was found guilty by a federal jury after a trial lasting two weeks and one day. The jury convicted Taylor of wire fraud, possession of stolen property that had been transported across state lines, tax evasion, and structuring financial transactions while on pretrial release.

The jury determined that Taylor sold a stolen Granville Redmond painting from a gallery in Los Angeles to a different gallery for $85,000, falsely claiming that his mother had owned it since the 1990s. The jury also found that Taylor knowingly possessed a Lucien Frank painting stolen from the same gallery in Los Angeles, after that painting had been taken across state lines. The evidence at trial showed that Taylor tried to pass the Lucien Frank painting off as by another artist, and sell it, by erasing or obliterating Lucien Frank’s signature.

Taylor was also convicted of evading federal income taxes that he owed on more than $1.4 million earned in income in 2005 and 2006. The evidence at trial showed that Taylor had not filed income tax returns for those two years and had taken elaborate steps to evade paying the taxes that he owed, including by creating or having others create corporations with names such as Microsoft Holdings, AIG Investments, and ING Investments.

Taylor was also convicted of structuring cash transactions totaling $226,000 in December 2011 in order to avoid federal reporting requirements, while he was released on bond in this case. Taylor was remanded into custody before trial.

Taylor is scheduled to be sentenced on November 8, 2012, by United States District Judge John Kronstradt.

The wire fraud and possession of stolen property charges each carry a statutory maximum sentence of 20 years in federal prison, the tax evasion charges each carry a statutory maximum of five years in federal prison, and the structuring charge carries a statutory maximum of 10 years in federal prison because the crime was committed while Taylor was released on bond. Therefore, Taylor faces a maximum possible sentence of 55 years in federal prison.

The investigation into Taylor was conducted by the FBI’s Art Crime Team, the Los Angeles Police Department’s Art Theft Detail, and IRS-Criminal Investigation.

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Encinitas Woman Arrested on Charges of Practicing Medicine without a License

FBI San DiegoAugust 14, 2012

Darrell Foxworth(858) 499-7810

The FBI and the Medical Board of California are announcing the arrest of Kathleen Ann Helms, also known as Catherine Bright-Helms, age 57, of Encinitas, California, on Monday, August 13, 2012.

Helms was arrested at approximately 4:45 p.m., Monday, August 13, 2012, near the 5600 block of El Camino Real in Carlsbad, California. Helms was taken into custody without incident by investigators from the California Medical Board and FBI agents.

Helms was arrested on state charges of practicing medicine without a license, which resulted in the infliction of great bodily injury and grand theft. Following her arrest, Helms was booked into the Las Colinas Jail and is expected to be arraigned on Wednesday, August 15, 2012, at 1:30 p.m. in Department 12, State Superior Court.

Investigation into this matter was initiated based upon complaints made to the Medical Board of California. The complaints alleged that Helms had been practicing as a doctor without a license in California and representing herself as a doctor of naturopathy with offices located in Encinitas, California, and Oak Park, Illinois. Helms operated a business called BrightHouse Wellness, located at 317 North El Camino Real, Suite 112 in Encinitas, California. Helms allegedly had been diagnosing patients with Lyme disease and advising them to undergo a treatment plan that involved the infusion of dimethyl sulfoxide (DMSO), injections of animal cells, and taking vitamins.

According to the affidavit filed in this matter, in April 2012, Helms diagnosed a patient with Lyme disease after examining a sample of blood under a microscope. Helms prescribed a treatment plan that consisted of injections of bovine stem cells from Germany and DMSO in a solvent through IV. Helms directed the patient to have a peripherally inserted central (PICC) line installed in the patient’s arm so Helms could give the DMSO treatments through IV.

Helms directed the patient to go to a hospital in Tijuana and meet with a man to have the PICC line installed. The patient agreed to pay $300 for the insertion of the PICC line and pay Helms an additional $30,000 for the treatment Helms recommended. The patient suffered multiple complications with the insertion of the PICC line and had to return to Tijuana three times to make the line functional.

The patient subsequently returned to Helms’ office, where the patient was hooked to an IV and infused with four bags of DMSO and two stem cell injections with a syringe in the stomach. This treatment session took approximately seven hours. The patient returned to Helms’ office three more times and underwent a similar regime of care that included infusions and injections. The evening of the last treatment the patient became seriously ill at home and was taken to a local emergency room and immediately placed in the Intensive Care Unit (ICU) of the medical facility. The patient was told she only had hours to live because her organs were shutting down. The patient was hospitalized a total of six weeks and then placed into a skill nursing facility and later in an assisted living facility.

Investigators believe there are other victims in this case and are asking the public to come forward with any information they may have concerning this case. Anyone who believes they may be a victim in this matter is encouraged to contact the FBI at telephone number (858) 565-1255 or submit a tip online at https://tips.fbi.gov.

You may also contact the Medical Board at www.mbc.ca.gov or call the Consumer Information Line at (916) 263-2382 or file a complaint by calling (800) 633-2322.

This case is being prosecuted by the San Diego County District Attorney’s Office.

http://www.fbi.gov/washingtondc/press-releases/2012/authorities-offer-50-000-reward-in-manassas-cold-case?utm_campaign=email-Immediate&utm_medium=email&utm_source=fbi-in-the-news&utm_content=131117

Authorities Offer $50,000 Reward in Manassas Cold Case
Law Enforcement Seeks Assistance in Unsolved Murder of Virginia State Trooper Johnny Bowman

FBI WashingtonAugust 15, 2012

Public Information Office(202) 278-3519

The Federal Bureau of Investigation, Virginia State Police, and Manassas City Police Department announced a $50,000 reward today for information leading to the arrest and conviction of the individual or individuals responsible for the murder of Virginia State Trooper Johnny Rush Bowman in August 1984.

In the early morning of August 19, 1984, Trooper Bowman answered the front door of his residence in the Bristoe Station development of Manassas, Virginia, and was repeatedly stabbed by an unknown assailant(s). Trooper Bowman’s wife was home during the attack and placed the 911 call for assistance. The attacker(s) fled on foot from Bowman’s home, leaving behind eyeglasses, a wig, and a construction hard hat. Trooper Bowman died shortly thereafter at a local hospital. In addition to his wife, Trooper Bowman left behind a 2-year-old daughter.

Twenty-eight years after Trooper Bowman’s murder, advancements in forensic testing have identified new information regarding DNA found at the scene. Forensic evidence was originally submitted to the FBI Laboratory for testing in 1984. Additional tests were conducted in the late 1990s and again in 2010.

“While this brutal attack occurred more than 25 years ago, we believe that someone can still provide a piece of the puzzle that will help solve this case,” said James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office. “It is important for the public to know that no piece of information is too small to share. With the assistance of advanced forensic science, we are able to actively pursue new leads to identify whoever is responsible for this murder.”

“Solving this homicide has been a priority for the Virginia State Police since it occurred that fateful morning of August 19, 1984,” said Capt. David A. Russillo, Bureau of Criminal Investigation, Fairfax Field Office. “Over the past 28 years, this case has taken investigators to as far away as California, Ohio, and other states in their pursuit of the necessary evidence to bring the murderer or murderers to justice.”

“I am confident that we are moving in the right direction with this investigation,” said Chief Douglas W. Keen, Manassas City Police Department. “It’s important for the public to understand that even after 28 years, we are committed to solving this murder and bringing the perpetrators to justice.”

Investigators from Virginia State Police, Manassas City Police Department, and the FBI have been involved in this case since 1984 and continue to diligently follow every lead. In 2005, Virginia State Police conducted a media campaign asking for the public’s assistance in recalling any details that could help to solve this case. The FBI has provided law enforcement assistance to Virginia State Police and Manassas City Police Department to include the processing of evidence at the FBI Laboratory.

Law enforcement agencies are asking anyone with information to contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or the Virginia State Police tip line at 703-803-2637.

Additional Contacts:

Virginia State Police
Public Affairs Office: 804-263-5547
www.vsp.state.va.us

Manassas City Police
Public Affairs Office: 703-257-8038

www.manassascity.org

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Cable: Bout extradition was almost stopped - UPI.com

Cable: Bout extradition was almost stopped - UPI.com

BANGKOK, Dec. 2 (UPI) -- U.S. diplomats feared allies of alleged arms dealer Viktor Bout would stop his U.S. extradition from Thailand, a cable released by WikiLeaks indicated Thursday.

U.S. Ambassador Eric John told Thai Prime Minister Abhisit Vejjajiva that Bout's "Russian supporters have been using money and influence" to persuade Thai courts to rule Bout should not be extradited to the United States, a Feb. 13, 2009, cable obtained by WikiLeaks and published on its Web site said.

John also told Abhisit witnesses had falsely testified that Bout was in Thailand on legitimate business at the time of his arrest, the cable said.

The cable, sent to Washington from the U.S. Embassy in Thailand, also said U.S. officials had learned of "a scheme to arrest and thereby embarrass two U.S. diplomats -- i.e. DEA (U.S. Drug Enforcement Administration) agents assigned to the Bout investigation -- on meritless charges of participating in illegal recordings of Bout on the day of his arrest," the cable on the WikiLeaks Web site said.

A second cable John sent to Abhisit Aug. 13, 2009 -- two days after Thailand's Criminal Court rejected a U.S. request to extradite Bout -- encouraged "the Thai government to issue a public statement expressing disappointment in the judges' decision, its intention to win on appeal and a reiteration of Thailand's commitment to both the struggle against international terrorism and to its extensive law enforcement relationship with the United States."

Abhisit said Thursday his government was not pressured by Washington to extradite Bout, the Bangkok Post reported.

Bout, 43, reputed to have been the world's largest arms trafficker before his 2008 arrest in Thailand, was extradited to the United States last month to face federal charges of agreeing in a sting operation to sell millions of dollars worth of weapons to agents posing as Colombian rebels intending to kill American pilots patrolling in the drug war.

Bout denied any links to arms trafficking. He faces possible life in prison if convicted.

Bout -- dubbed the "Merchant of Death" for allegedly selling guns, ammunition, tanks and helicopters to armed groups that U.S Treasury officials said inflamed conflicts in Afghanistan, Angola, Congo, Liberia, Rwanda, Sierra Leone and Sudan -- is said to have inspired the 2005 thriller film, "Lord of War," starring Nicolas Cage.