Crime Victims Fund Award
Winners for 1997
The Attorney General recognized one individual and two teams of Federal
personnel from Boston, New York City, and Kansas City, Kansas, for their efforts
to collect criminal fines from Federal criminal offenders. The awardees
Litigation Team in United States v. The Daiwa Bank, Limited, U.S. Attorney's
Office, Southern District of New York. Reid M. Figel, Assistant United States
Attorney; Andrea M. Likwornik, Assistant United States Attorney; Michael A.
Simons, Assistant United States Attorney; Richard Owens, Assistant United
As a result of the diligence and extraordinary efforts of this dedicated
group of prosecutors, Daiwa Bank, Limited, pled guilty to 16 felony
counts and paid a criminal fine of $340 millionthe largest criminal
fine in history. This prosecution arose out of a report of an unauthorized,
off-the-books trading scheme that resulted in a $1.1 billion loss to Daiwa.
Although the law required Daiwa to disclose those losses immediately to
the Board of Governors of the Federal Reserve System, Daiwa's management
and the trader responsible for those losses unlawfully conspired to conceal
them from regulators for more than 2 months.
Judicial Enforcement Team from the U.S. Attorney's Office, District of
Massachusetts. Christopher Alberto, Assistant United States Attorney; Cathy
L. Kibbey, Supervisory Paralegal; Joanne Albano, Paralegal; Anita R. Kiley,
Paralegal; Brendan Murphy, Deputy U.S. Marshal; Pamela J. Lombardini, U.S.
Probation Officer; John C. Siracusa Jr., Special Agent, FBI.
In 1995, the District of Massachusetts was facing a criminal debt inventory of
million. In February 1996, Assistant U.S. Attorney Christopher Alberto began
to aggressively pursue the collection of that debt by forming a Judicial
Enforcement TeamJET. Through JET, which is an innovative approach to collecting
debt owed to the Federal Government, the U.S. Marshals Service provides
financial investigative services and judgement enforcement to the U.S.
Attorney's Financial Litigation Units. The District of Massachusetts expanded
the concept to include the U.S. Probation Office, Federal Bureau of
Investigation, and various Inspector General offices.
The JET team has successfully uncovered concealed assets through surveillance
and computer searches; seized and auctioned real property; and seized bank
and investment accounts. New operating procedures implemented within the
District's Financial Litigation Unit have further enhanced JET's impact. First,
a computer search for assets is done for all offenders who owe criminal
penalties. Second, all offenders not paying their criminal penalties are
required to submit to a financial examination under oath. Third, the
Financial Litigation Unit shares all information uncovered with the offender's
Probation Officer, and finally, all new criminal penalties are given
immediate attention for recovery. These aggressive actions have generated
millions of dollars for victims and the Crime Victims Fund. If the statistics
tell the story, then what a great story JET is. In 1996, the District's
total debt recoveries were more than $37.6 million, a clear increase in
Carol Holinka, Assistant Correctional Programs Manager, North Central Region,
Federal Bureau of Prisons.
When the Bureau of Prisons implemented its new SENTRY computer program, Ms.
Holinka worked diligently to train Correctional Programs, Financial Management,
and Victim/Witness Program staff in the 16 institutions of the North Central
Region. She traveled extensively throughout the year, providing highly
effective training to approximately 200 NCR personnel. One measure of her
effectiveness came to light when a review of contract rosters showed a
significant decrease in contract errors following her training. Had these
problems not been identified and corrected, collections could not have been
made for those inmates with inactive accounts and input errors.
Beyond her demonstrated ability to provide effective training and technical
assistance, Ms. Holinka has continued to emphasize the importance of holding
inmates accountable for their financial obligations and ensuring they make
payments commensurate with their ability to pay. She routinely lends her
considerable technical expertise when staff call her office regarding their
computer systems, and provides ready interpretations of court documents
for achieving compliance with the spirit of the Inmate Financial
Crime Victims Fund Award Winners for 1998
The Attorney General recognized three individuals and seven teams of
Federal personnel from seven States for their efforts to collect criminal
fines from Federal criminal offenders. The awardees were:
Antitrust Division, DOJ. James Griffin, Gary Spratling, Phil Warren, Wendy
Bostwick-Norman, Andrew Hays-Gorey, and Jane Phillips.
An aggressive initiative aimed at international cartels has led to unprecedented
success, bringing to justice conspirators in industries ranging from food and
feed additives to marine construction and transportation to graphite electrodes.
Utilizing an alternative fine provision, the Antitrust Division has been able to
secure routine imposition of criminal fines in excess of the $10 million
Sherman Act maximum. As a result, the average corporate fine for an antitrust
offense has increased 15-fold since 1996 to $12 million. The Division's
effective use of the provision has sent the message to the international
business community that antitrust fines can no longer be considered a mere
cost of doing business.
Financial Litigation Unit, United States Attorney's Office, Northern District
of NY. Beverly J. Parody, William Pease, Helen Atkinson, Paul Condon, and
By concentrating staff on criminal fine and restitution enforcement and
exercising vigorous investigative strategies, the Financial Litigation Unit
in the U.S. Attorney's office for the Northern District of New York secured
millions of dollars in deposits into the Crime Victims Fund last year.
Diligent research of defendants' assets and steady pursuit of their holdings
allowed the FLU to obtain collection of fines from both companies and
individuals. With three of its five Financial Litigation Agents assigned
to fine and restitution investigation and collection, the FLU was able to
uncover fines in cases involving lien notices, promissory notes, pension
and Individual Retirement accounts, government property, and Thrift Savings
Team from the United States Attorney's Office, Southern District of IL. W.
Charles Grace, Gregory Holston, Janet Burris, Clinton Bigham, Gary Holst,
Patrick Holtgrave, and Dana Kimbrough.
A 4-year investigation led by the U.S. Attorney's office for the Southern
District of Illinois and a team of six Federal investigators uncovered fraudulent
Medicare practices that resulted in $4 million in criminal fines and $140
million in civil damages and penalties, the largest settlement against a
Medicare carrier in the country. Through diligent claims tracking, scrupulous
examination of financial resources, thorough inspection of payments and
bonuses, and close scrutiny of processing practices, investigators revealed
an intricate scheme on the part of key personnel at Health Care Service
Corporation to defraud Medicare and conceal illegal activities.
Team Nominated by the United States Attorney's Office, Northern District of
IA. James Mitzelfeld, William Cleary, and Kevin Oetinger.
As a result of close collaboration, meticulous planning, and extraordinary
tenacity, this team made sure one defendant was held fully accountable for his
crime. On June 1996, a Canadian citizen was committed to the custody of
the Bureau of Prisons and ordered to pay a $100,000 fine. At the time of
sentencing, Jim Mitzelfeld, anticipating an attempt to default on payment
of the fine, obtained the court's agreement to consider a motion to
resentence should Mr. Doidge fail to pay the full amount. On December 31,
Mr. Mitzelfeld discovered that the defendant had been released from
incarceration and was being transported by the INS to the Canadian border
for deportation. Despite the fact that Mr. Doidge had paid only half of his
fine, Mr. Mitzelfeld immediately filed an emergency motion for resentencing
and contacted Messrs. Cleary and Oetinger of the INS-Buffalo to ask their
help in delaying the defendant's deportation. The defendant's family
produced the funds and the balance of the fine was paid.
Team from the United States District Court, Middle District of GA. Gregory
Leonard, Wanda Misinco, and Artis Carner.
This team of three developed a unique system to institutionalize criminal
restitution payments on all cases in the district's inventory. By streamlining
and facilitating communication between the courts, the U.S. Probation Office,
and the U.S. Attorney's office, the system now employed by the Middle District
of Georgia allows staff to be advised of any discrepancies or problems in
the processing of criminal payments. The team also created a computer program
that tracks balances and imposes interests and penalties on applicable criminal
fines and restitution. The members of this team have taken their 46 years of
dedicated experience and used it to ensure that all criminal payments are
processed in a prompt and efficient manner.
Financial Litigation Unit, United States Attorney's Office, Southern District of
FL. Elizabeth Ruf Stein, Mary Dooley, Karen Thompson, Ann Woodruff, Cathy Joseph,
Gerald Thompson, Rolando Leon, Colleen Perez, Sandra Williams, and Catrina
The extraordinary commitment of this team to holding offenders accountable is
responsible for tripling the collections of the U.S. Attorney's office last year.
A renewed focus on collectability provided by a restructuring of the Financial
Litigation Unit and a pilot project of shared computer access among the U.S.
Attorney's Office, the U.S. Probation Office, and the Clerk of the Court were
largely responsible for a dramatic $12 million increase in their deposits
into the Crime Victims Fund over the past year.
Financial Litigation Unit, United States Attorney's Office, Western District
of TX. Johnnie L. Ross, Jr., Hal Atkinson, Patsy Ybarra, Diane Webb, Cindy
Merrill, Martha Fowler, Mildred Alexander, and Michael McVay.
This Financial Litigation Unit has created a system that ensures financial
accountability to individual victims of crime in multiple-victim cases. Through
a special database developed to track victims and handle disbursements, the FLU
has found a way to deliver restitution in large-scale white-collar crime cases,
which often involve hundreds or even thousands of victims. In a recent case, a
judgment was entered against 13 defendants who were ordered to pay various
amounts in restitution to 4,000 elderly victims in a telemarketing scam. To
date, the FLU has seen to the collection of over $100,000 in restitution and
the disbursement of $80,000.
Peter R. Galenda, Criminal Debt Collection Paralegal, U.S. Attorney's Office,
Western District of NY.
Peter Galenda has devoted his time and energy to devising pioneering innovations
in meeting his office's obligation to victims. A combination of resourcefulness
garnered from his 25 years of experience and inventiveness derived from his dedication
to seeing justice served is responsible for the success of his office in recovering
criminal debts. Due to his efforts, the Western District of New York collected over
$1.8 million in fiscal year 98, almost $800,000 of which went for deposit into
the Crime Victims Fund.
Eric J. Klumb, Assistant United States Attorney, Eastern
District of WI.
In 1996, Eric Klumb was successful in obtaining convictions against Vitek
Supply Corp., a Dutch manufacturer of animal feed, for conspiring to defraud,
smuggling, and distributing adulterated animal drugs with the intent to
mislead, resulting in Vitek being placed on probation and ordered to pay both
a $350,000 fine and restitution totaling over $730,000. Through 1997,
however, the company made no payments, claiming to be essentially out of
business without any appreciable assets. Mr. Klumb investigated Vitek's claim
and established that it had shifted its assets and operations to other related
corporations for the purpose of avoiding payment. He then filed a separate
civil suit alleging fraudulent conveyance. The judge accepted Mr. Klumb's
evidentiary and legal theories, ordering Vitek and four related corporations
to pay the fine and restitution within 90 days.
Gerald M. Rhodes, Correctional Counselor, United States Bureau of Prisons.
Through diligent and responsible commitment, Mr. Rhodes has exemplified the
important role corrections agencies can play in serving crime victims. His work
with inmates in the Bureau of Prison's Inmate Financial Responsibility Program
has resulted in extraordinary cooperation in meeting victims' needs. While
serving in a temporary assignment as a Correctional Counselor, Mr. Rhodes was
instrumental in collecting almost half of a $10 million restitution ordered from
one defendant. Mr. Rhodes was responsible for first winning the inmate's agreement
to participate in the Inmate Financial Responsibility Program and then for
using monies collected from the sale of seized assets to satisfy a significant
portion of his restitution obligation.