District of Colorado
Press releases recorded for this federal judicial district.
Two Colorado Men Sentenced to Federal Prison for Fentanyl Related DeathRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Paul Barris, Jr., 40, of Telluride, and Michael Anthony Manners, 40, of Montrose, were each sentenced to federal prison after pleading guilty to distribution of a controlled substance containing fentanyl resulting in death. Barris Jr. was sentenced to 141 months in federal prison. Manners was sentenced to 160 months in federal prison.
According to the plea agreement, in September of 2021, Baris purchased fentanyl with the help of Manners in the Montrose, Colorado area. Baris then provided the fentanyl to a woman who later died of an overdose.
“Stopping illicit fentanyl distribution is a priority for the Administration, the Department of Justice, and the U.S. Attorney’s Office,” said Acting United States Attorney for the District of Colorado J. Bishop Grewell. “Our office will relentlessly pursue drug dealers to get this scourge off our streets.”
United States District Court Judge Gordon P. Gallagher presided over the sentencing.
The Drug Enforcement Administration handled the investigation. Assistant United States Attorney R. Josh Player handled the prosecution.
Case Number: 22-cr-00336-GPG-JMC
Former Colorado Springs Man Sentenced for Defrauding Taxpayer Funded COVID-19 Relief ProgramRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces that Charles Lacona, Jr., 67, formerly of Colorado Springs, was sentenced to 24 months in federal prison and ordered to pay $549,274.14 in restitution after being found guilty by a federal jury on two counts of wire fraud and one count of money laundering related to fraudulent COVID-19 related funds he received through the Paycheck Protection Program (PPP).
According to the facts established at trial, between April 2020 and April 2021, Lacona devised and participated in a scheme to defraud a lender of $513,732.50 in PPP loans. Lacona inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports. During that same period, Lacona unsuccessfully applied for additional emergency government assistance through the Economic Injury Disaster Loan (EIDL) program. Lacona used some of the fraudulently obtained funds to purchase a Cadillac CT6 for $67,704.13.
“Theft of taxpayer dollars will not be tolerated,” said Acting United States Attorney J. Bishop Grewell. “This sentence sends a message that people who defrauded the United States Government will be held accountable for their actions.”
“IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs,” said Amanda Prestegard, Special Agent In Charge, Denver Field Office. “Investigating those who defrauded programs meant for hard working Americans will remain a top priority for our agency.”
United States District Court Judge Daniel D. Domenico presided over the trial. IRS Criminal Investigation handled the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy handled the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Colorado Springs Man Sentenced to 13 Years for Being A Felon in Possession of a FirearmRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Lemich Riddle, 27, Colorado Springs, was sentenced to 156 months in federal prison after being found guilty of being a felon in possession of a firearm.
According to the facts established at trial, on November 1, 2022, officers in Colorado Springs located Riddle, who had an outstanding warrant for his arrest. Colorado Springs Police Department SWAT team officers took him into custody as he was driving back to his apartment. In his car, officers found six firearms. Riddle has a prior felony conviction that prohibits him from possessing firearms.
“We will always prosecute dangerous felons who possess weapons,” said United States Attorney Matt Kirsch. “This sentence reflects the seriousness of this defendant’s continued violation of the law.
"CSPD strives for excellence in every investigation, and those around the illegal possession of firearms are no different,” said Colorado Springs Police Chief Adrian Vasquez. “This case highlights how the quality work of our investigators can be amplified by our partnership with federal authorities, resulting in significant sentencing that holds individuals accountable in meaningful ways that also make our community safer.”
United States District Court Judge Regina M. Rodriguez presided over the sentencing. The Bureau of Alcohol, Tobacco, and Firearms, and the Colorado Springs Police Department handled the investigation. The Violent Crime and Immigration Section of the United States Attorney’s Office handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-cr-00051-RMR
Denver Man Convicted on Five Counts Related to Denver Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Flozell Beasley, 72, of Denver, was convicted by a federal jury on four counts of bank robbery and one count of robbery affecting interstate commerce.
According to the facts established at trial, Beasley robbed two banks, two credit unions, and a taco shop in Denver, between May and July 2023. In each robbery, the defendant dressed like a construction worker and threatened employees with a high-quality replica gun before taking their money and fleeing. On July 11, 2023, the defendant robbed the Vectra Bank at 1001 E 17th Street and left with a GPS tracker inside the money stolen from the bank. He then boarded a nearby RTD bus and was arrested twelve minutes later sitting on the bus with the tracker, stolen money, replica gun, construction vest, and construction helmet in a bag at his feet.
“Our office remains focused on stopping brazen, serial bank robbers who victimize bank employees,” said United States Attorney Matt Kirsch. “
“This individual is a previously convicted felon who was released from prison and returned to robbing banks -- and a restaurant when his chosen bank was closed,” said FBI Denver Special Agent in Charge Mark Michalek. “This is the kind of defendant that gets the attention of the FBI Denver Rocky Mountain Safe Streets Task Force, and with help from partners like the Denver Police Department and the Regional Transportation District, we tracked him down and ended his criminal activity in the community. “
United States District Court Judge Regina M. Rodriguez presided over the trial.
The FBI Denver Field Office handled the investigation. Assistant United States Attorneys Brian Dunn and Garreth Winstead handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-cr-342-RMR
Minnesota Man Sentenced After Self-Reporting COVID-19 FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Jacob Schneider, 42, of Saint Paul, Minnesota, was sentenced to one year and one day in prison and $555,292.88 in restitution after pleading guilty to one count of wire fraud after self-reporting his own COVID-19 related fraud to authorities.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which provided emergency assistance to small business owners suffering adverse economic effects caused by the Coronavirus (“COVID-19”) pandemic. The CARES Act created Paycheck Protection Program (“PPP”), a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
According to the plea agreement, in February 2021, Schneider prepared and submitted a fraudulent Paycheck Protection Program (PPP) application for “Piddonkadonk, LLC,” in which he fabricated the entity’s payroll and falsely represented that the PPP funds would be used to pay eligible business expenses, when, in fact, the bulk of the proceeds were used for his personal benefit. Schneider obtained $530,567 in fraudulent PPP funds.
“This case is another example of someone who stole benefits intended for struggling taxpayers and used them for personal gain,” said United States Attorney Matt Kirsch. “The difference in this case is that the defendant voluntarily took responsibility, and that action is reflected in his sentence. I encourage others to self-report COVID-19 related fraud.”
“We will take all means to safeguard financial relief programs from exploitation,” said Special Agent in Charge Marc DellaSala, U.S. Secret Service, Denver Field Office. Through a whole-of-government approach, we continue working with task force partners to pursue the arrest of those who undermine our nation’s financial security. This sentencing demonstrates yet another example of the unwavering support we receive from prosecutors and the federal court system in this endeavor.”
United States District Court Judge Nina Y. Wang presided over the sentencing. The United States Secret Service handled the investigation. Assistant United States Attorney Nicole Cassidy handled the prosecution.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Boulder Man Sentenced for Transportation of A MinorRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that James Wendell Dean, 54, Boulder, was sentenced to 188 months in federal prison after pleading guilty to one count of transportation of a minor across state lines with the intention of engaging in sexually explicit conduct with the minor.
“Crimes against children are the most despicable in our society,” said United States Attorney Matt Kirsch. “Our office will aggressively prosecute anyone who harms a minor.”
“This sentence serves as a reminder that protecting children from predators is a top priority for the FBI,” said FBI Denver Special Agent in Charge Mark Michalek. “We will continue to support victims of child sexual exploitation and work with our law enforcement partners to hold accountable those who prey upon children.”
United States District Court Judge Daniel D. Domenico presided over the sentencing.
The Federal Bureau of Investigation Denver Field Office handled the investigation. Assistant United States Attorney Alison Connaughty handled the prosecution.
Case Number: 2023-cr-00440-DDD
Felon Sentenced to 30 Months for Unlawfully Dealing Firearms on Social MediaRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Leonel Castillo, 34, of Denver, was sentenced to 30 months in prison after pleading guilty to one count of Engaging in a Business of Dealing Firearms without a Federal Firearms License.
According to the plea agreement, between September 2022 and May 2023, Castillo operated a business utilizing Facebook to raffle items including firearms. Castillo purchased firearms from federal firearms licensees or third-party private sellers. He then held interactive raffles on Facebook in which participants paid for the chance to win the firearms. Castillo would then have federal firearms licensees transfer the firearms to the winners of the raffles, sometimes through straw transfers. Castillo was a felon and prohibited from possessing firearms throughout the time he ran this business.
“Criminals who deal firearms illegally can’t escape consequences by using social media as their marketplace,” said United States Attorney Matt Kirsch. “I am grateful that our partners at the ATF were able to investigate this unusual scheme and that our office was able to bring this person to justice.”
United States District Court Judge Nina Y Wang presided over the sentencing. The Bureau of Alcohol, Tobacco, and Firearms conducted the investigation. Assistant United States Attorney Albert Buchman handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-cr-00326-NYW
Florida Man Sentenced to 41 Months for Stealing COVID-19 Relief FundsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Fredrick Mendez, 45, of Boca Raton, Florida, was sentenced to 41 months in prison and three years of supervised release and ordered to pay restitution in the amount of $1,589,565.75 after pleading guilty to wire fraud.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which provided emergency assistance to small business owners suffering adverse economic effects caused by the Coronavirus (“COVID-19”) pandemic. The CARES Act created Paycheck Protection Program (“PPP”), a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules. The CARES Act also expanded the Economic Injury Disaster Loan Program (“EIDL”) to provide funding to help small businesses recover from the economic impacts of the COVID-19 pandemic.
According to the plea agreement, from approximately March 2020 through November 2021, Mendez prepared and submitted fraudulent EIDL and PPP applications on behalf of the following business entities: SkyWorth Technical Solutions Inc., Northern Technology Inc., Acumen Energy Group Inc., and Acumen Holding Group, LLC. These applications contained materially false statements, including false representations about the entities’ number of employees, gross revenues, and cost of goods sold; Mendez further falsely certified that the information provided in the EIDL applications was true and accurate and that the funds would be used for working capital and other normal operating business expenses when, in fact, he used the bulk of the proceeds for his personal benefit.
“This defendant lied and stole government funds meant to help people struggling in the COVID-19 pandemic,” said United States Attorney Matt Kirsch. “Our office continues to identify and prosecute people who stole taxpayer dollars during a time of crisis.”
“This prison sentence and forfeiture order should serve as another strong deterrent against pandemic-related fraud,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “Our pursuit of criminals stealing from government aid programs intended for struggling small businesses and families will not tire. I want to thank the U.S. Attorney’s Office and our Pandemic Fraud Task Force partners for their continued dedication to protecting America’s financial infrastructure.”
The defendant was sentenced by United States District Court Judge S. Kato Crews. The United States Secret Service handled the investigation. Assistant United States Attorney Nicole Cassidy handled the prosecution.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Ute Man Charged with Murder of Child on Ute Mountain Ute Indian ReservationRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Jeremiah Hight, 23, of Towaoc, Colorado, was indicted by a federal grand jury on one count of second-degree murder of a child in Indian Country, and one count of discharging a firearm during a crime of violence.
Hight was previously charged by a criminal complaint authorized by Magistrate Judge James Candelaria on December 19, 2024. Hight was arrested on the Navajo Reservation on December 24, 2024, and made an initial appearance in the District of Arizona on December 26, 2024. Hight is currently being transported to the District of Colorado.
According to the complaint and indictment, in the early hours of December 11, 2024, Hight fired a rifle twenty-four times into a residence, killing a seven-year-old member of the Ute Mountain Ute Tribe in Towaoc, Colorado, on the Ute Mountain Ute Reservation. The investigation is ongoing.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigations and the Bureau of Indian Affairs. The prosecution is being handled by Assistant United States Attorneys Jeffrey K. Graves, R. Josh Player, and Lisa Franceware.
Case Number: 25-cr-0003-GPG
Aurora Man Indicted for Defrauding Surveying Company and $2.3 Million from COVID-19 Relief ProgramsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Mathew Barr, age 50, of Aurora, Colorado, was indicted by a federal grand jury on six counts of wire fraud and two counts of money laundering in connection with schemes to defraud a Colorado surveying company and programs intended to provide emergency relief funds during the COVID-19 pandemic.
According to the indictment, from June 2019 until around November 2022, Barr allegedly defrauded SurvWest, LLC, the surveying company in which he was majority shareholder of, to obtain over $843,452 for his own benefit, including to purchase an Aston Martin convertible, a Land Rover Range Rover Sport, and a Mercedes Benz G63.
The indictment further alleges that Barr participated in a scheme to defraud the Small Business Administration and others to obtain emergency COVID-19 relief funds totaling over $2.3 million during the pandemic.
On January 7, 2025, the defendant made his initial appearance in front of U.S. Magistrate Judge Kathryn A. Starnella.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being investigated by the Internal Revenue Service Criminal Investigation’s Denver Field Office. The prosecution is being handled by Assistant United States Attorneys Taylor Glogiewicz and Craig Fansler.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Case Number: 1:24-cr-00372-DDD
Leadership Transition at U.S. Attorney’s Office for the District of ColoradoRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that United States Attorney Matthew T. Kirsch and Deputy United States Attorney Andrea Wang are resigning their positions effective no later than midnight on January 25, 2025.
“I’ve been incredibly honored to serve the United States and the people of Colorado through over twenty-five years of work at the Department of Justice. I will be forever grateful for the opportunity to work with my colleagues here and to lead this office,” said United States Attorney Matt Kirsch. “The office will continue to be led by highly accomplished and experienced attorneys, and I am confident they will carry on the office’s long-standing commitment to justice in the District of Colorado.”
Mr. Kirsch has accepted the position of First Assistant District Attorney with the Denver District Attorney’s Office.
First Assistant U.S. Attorney J. Bishop Grewell will serve as Acting United States Attorney upon the effective date of Mr. Kirsch’s resignation. Mr. Grewell joined the Department of Justice in 2010 and has been with the District of Colorado since 2013. He currently serves as Chief of the Appellate Division.
President-Elect Donald Trump is expected to nominate a new United States Attorney for the District of Colorado in the coming months.
Colorado Man Sentenced to 60 Months in Prison for Assaulting Federal OfficerRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Daniel Lehi, 44, of Towaoc, Colorado, was sentenced to 60 months in prison and three years of supervised release after pleading guilty to one count of assaulting a federal officer.
On April 5, 2024, a Bureau of Indian Affairs Officer responded to the Ute Mountain Ute Casino in Towaoc, Colorado, within the exterior boundaries of the Ute Mountain Ute Reservation, on a report of an intoxicated person, later identified as Lehi. Lehi lunged at the officer and struck him in the face. When additional security personnel responded to the incident, Lehi continued to fight until officers were able to subdue him.
United States District Court Judge Gordon P. Gallagher sentenced Lehi after considering numerous sentencing factors, including the defendant’s history of assaults on law enforcement officers.
“Assault on a law enforcement officer is a serious offense, and this defendant received a serious sentence for his actions,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I want to acknowledge the BIA officer for deftly handling a challenging situation.”
“This attack on a federal officer simply doing his job is unacceptable. We fully support the officer who is a victim in this case and are steadfast in our commitment to pursuing justice in cases involving assaults on law enforcement officers,” said FBI Denver Special Agent in Charge Mark Michalek. “Such acts will not go unanswered, and we will work tirelessly to ensure accountability.”
The Federal Bureau of Investigation Durango Field Office and the Bureau of Indian Affairs handled the investigation. Assistant United States Attorney Lisa Franceware handled the prosecution.
Case Number: 1:24-cr-00182-GPG
Attempted Robber Who Shot Elderly Man on the Ute Mountain Ute Reservation Sentenced to More Than 13 Years in PrisonRead the Press Release
DURANGO – The U.S. Attorney’s Office for the District of Colorado announces that Lovell Cassius Benallie, age 27, of Kirtland, New Mexico, was sentenced to a total of 166 months in prison for assault with a dangerous weapon and discharging a firearm during a crime of violence on the Ute Mountain Ute Indian Reservation. The prison sentence will be followed by three years of supervised release.
According to the plea agreement and information presented at sentencing, on August 24, 2023, Benallie and an associate traveled from New Mexico to the Ute Mountain Ute Casino. After gambling, Benallie went to the nearby Ute Mountain Ute Travel Center and approached an elderly Navajo man preparing to use the laundry facility. In an interaction that lasted about eighteen seconds, Benallie said, “give me all your money” and pointed a 9mm gun at the man. When the man replied, “what money” Benallie aimed and fired the gun at the man’s leg. Benallie fled the scene. The victim was airlifted to Grand Junction for medical treatment and suffered serious and enduring injuries.
Benallie had several prior felony convictions, including a conviction for aggravated assault with a dangerous weapon in Farmington, New Mexico.
“The defendant acted callously and purposelessly,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Gun violence will not be tolerated on the Ute Mountain Ute Reservation and our office reaffirms our intention to vigorously violent crimes on our reservations.”
"This defendant coldly and callously shot a total stranger during an attempted robbery. Any such act of violence on the Ute Mountain Ute Reservation gets the full attention of FBI Denver," said Special Agent in Charge Mark Michalek. "In this case we were assisted by the Farmington, New Mexico, Police Department. We will continue to support the Bureau of Indian Affairs and those who live on the reservation by investigating criminal acts and removing the perpetrators from the community."
United States District Court Judge Gordon P. Gallagher sentenced the defendant on December 16, 2024.
The Federal Bureau of Investigation office in Durango conducted the investigation in conjunction with the Bureau of Indian Affairs. Assistant United States Attorney Jeffrey K. Graves handled the prosecution.
Case Number: 1:23-cr-00383-GPG-JMC-1
Denver Man Sentenced for Operating Illegal Gambling ParlorRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Jonathan Arvay, 38, of Denver, was sentenced to one year and one day in prison after being found guilty by a federal jury on one count of conducting an illegal gambling business and one count of conspiracy to conduct an illegal gambling business.
According to the facts established at trial, Arvay operated Player One Arcade in Denver, part of a network of gambling parlors extending from Greeley to Pueblo. These parlors offered several electronic forms of gambling through games made to resemble arcade games, as well as virtual slot machines in which customers attempted to earn credits. Upon completing their game of choice, customers would exchange any credits won for a purported cryptocurrency, Obsidian Digital Asset Coin (ODAC), whose only function was to be exchanged for cash at an ATM-like “cryptocurrency teller machine” next door to or within the gambling parlor. Customers were required to pay a transaction fee to exchange the ODAC for U.S. currency.
“This was a modern version of old-fashioned illegal gambling,” said Acting United States Attorney Matt Kirsch. “I am grateful for our local and federal partners who helped put this criminal in prison.”
“This sentence reflects an appropriate resolution to a complicated case: When you launder money and commit fraud against the government, the FBI and our partners will track you down across jurisdictions,” said FBI Denver Special Agent in Charge Mark Michalek.
“IRS-CI remains on the cutting edge of cybercrime investigations as financial crimes continue to become more sophisticated,” said Tom Demeo Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “We are committed to staying one step ahead of criminals and leveraging our partnerships with federal and local law enforcement agencies to protect the U.S. tax system.”
United States District Judge Gordon P. Gallagher presided over the trial. The FBI Denver Field Division, the IRS Criminal Investigation Denver Field Office, and the Pueblo Police Department conducted the investigation. Assistant United States Attorneys Cyrus Y. Chung, Alison Connaughty, and Jena Neuscheler handled the prosecution.
Case Number: 23-cr-00222-GPG
Two Denver Men Sentenced for String of Area Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Mitchell Leland Baca, 33, of Denver, and Jaki Ravion Joseph Martin-Birch, 28, of Denver, were sentenced to 224 months and 170 months in prison respectively for their roles in a series of bank robberies in the Denver area.
Baca pled guilty to two counts of possession of a firearm in furtherance of a crime of violence, one count of possession of a firearm by a felon, and four counts of bank robbery. Martin-Birch pled guilty to two counts of possession of a firearm during and in relation to a crime of violence and four counts of bank robbery.
The plea agreements show that between June 14, 2023, and July 24, 2023, Baca and Martin-Birch robbed five banks in Denver and Aurora in which they used weapons to threaten employees for cash. Baca and Martin-Birch left each bank robbery with thousands of dollars.
“Bank robberies are violent, brazen crimes that we will not tolerate,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “These sentences should send a message to other potential bank robbers that they will be caught and prosecuted.”
"Together, the defendants are responsible for at least five bank robberies involving handguns across the metro area,” said FBI Denver Special Agent in Charge Mark Michalek. “The FBI Rocky Mountain Safe Streets Task Force is uniquely positioned to investigate these types of cross-jurisdictional crimes and leverage federal prosecution to ensure violent offenders are kept off our streets, preventing further harm to the public."
The defendants were sentenced by United States District Court Judge Nina Y. Wang. The FBI Rocky Mountain Safe Streets Task Force and the Denver Police Department handled the investigation. Special United States Attorney Leah Perczak handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-cr-00370-NYW
Florida Man Sentenced to 55 Months for Skimming Credit Cards, Identity Theft, and Transporting Stolen Goods in Colorado Springs AreaRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Yamany Guerra-Pena, 36, a Cuban national and Miami, Florida resident, was sentenced to 55 months in prison, followed by three years of supervised release, and ordered to pay restitution to multiple victims in the amount of $76,980 after pleading guilty to one count of bank fraud, one count of identity theft, and one count of conspiracy to transport stolen goods and altering motor vehicle identification numbers (VINs).
According to the plea agreement, from 2021 through early 2023, Guerra-Pena and others installed numerous skimmers on gas pumps in the Colorado Springs area, which were used to steal customers’ bank account numbers. Guerra-Pena used that data to manufacture fraudulent clone-cards. Those clone-cards were used to purchase thousands of dollars’ worth of diesel fuel, which was resold on the black market. Guerra-Pena also stole personal vehicles and heavy construction equipment, removed the VINs, and sold the vehicles to unwitting buyers in the Miami area.
“Stopping criminals like Guerra-Pena who prey on innocent Coloradans is a critical priority of our office,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “This case is an excellent example of how local and federal law enforcement work together to protect our communities.”
“This sentencing demonstrates our collective resolve to deter crimes threatening our financial infrastructure,” said Special Agent in Charge Marc DellaSala, U.S. Secret Service, Denver Field Office. “We are dedicated to disrupting all schemes which undermine our nation’s financial security and negatively impact law-abiding Americans. I want to thank the U.S. Attorney’s Office and our partners at the Colorado Springs Police Department for their dedication to this effort.”
“The Colorado Springs Police Department’s Financial Crimes Unit takes these types of crimes seriously because of the significant impact they have on individual community members and local businesses who are the ones truly victimized by these ‘skimming’ crimes,” said Colorado Springs Police Chief Adrian Vasquez. “We are thankful for the impact that we can have on these types of criminal operations with the help of our federal partners.”
United States District Court Judge William J. Martinez presided over the sentencing. The United States Secret Service Denver Field Office, and the Colorado Springs Police Department handled the investigation. Assistant United States Attorney Tim Neff handled the prosecution.
Case Number: 23-cr-00037-WJM
Colorado Springs Nurse Practitioner Agrees to Pay $90K to Resolve Allegations of Improper Prescribing of Controlled SubstancesRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced that Monica Preston, N.P., has agreed to pay $90,000 to resolve allegations that she unlawfully prescribed controlled substances, including dangerous opioids and drug combinations, in violation of the Controlled Substances Act and False Claims Act.
The United States alleges that Ms. Preston, while working as a Nurse Practitioner at the now-defunct Colorado Institute for Pain Management in Colorado Springs, wrote prescriptions for controlled substances that were in dosages, at frequencies, and in combinations with other controlled substances that were outside the course of her professional practice, were not reasonable and necessary, and were not for a legitimate medical purpose. The United States alleges that Ms. Preston’s conduct departed from well-established prescribing guidelines and that she also fraudulently represented to the Center for Medicare Services that improper prescriptions were reasonable and necessary. The United States alleges that this conduct violated the Controlled Substances Act and the False Claims Act.
As part of the settlement, Ms. Preston agreed to pay $90,000 in damages and civil penalties. Ms. Preston also agreed to permanently forgo holding a Drug Enforcement Administration (DEA) registration, which will prevent her from prescribing any controlled substances in the future.
“Nurse practitioners entrusted with prescribing authority must be careful not to ignore red flags that suggest that the opioids they prescribe are being misused or abused,” said Acting U.S. Attorney Matt Kirsch. “When nurse practitioners do not adhere to well-established prescribing guidelines or falsely represent that improper prescriptions were reasonable and necessary, we will hold them accountable.”
“The DEA is proud to relentlessly pursue practitioners not acting in their patients’ best interests,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen. “Our investigators – along with other federal partners – worked diligently on this case, and as a result, Ms. Preston will never again be allowed to legally prescribe opioids or other controlled substances.”
“Medical providers who write prescriptions for controlled substances, including powerful opioids and dangerous drug combinations, that are outside the course of professional practice endanger the safety and wellbeing of patients and communities,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “This settlement highlights HHS-OIG’s commitment to work closely with our state and federal partners to protect federal health care programs and the people served by those programs.”
The claims against Ms. Preston are allegations, and in agreeing to settle this matter, she did not admit to any liability.
This matter was investigated by the DEA’s Rocky Mountain Division and the U.S. Department of Health and Human Services’ Office of Inspector General and was handled by Assistant United States Attorney Katherine Ross.
Windsor, Colorado Business Owner and Company Sentenced for Conspiring to Delete Emissions Controls on Hundreds of Heavy Duty Diesel Trucks in Violation of the Clean Air ActRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Elite Diesel Service Inc., formerly located in Windsor Colorado, and its owner, Troy Lake Sr., were sentenced after pleading guilty to conspiring to violate the Clean Air Act by disabling the monitoring components of the emissions control systems on hundreds of heavy-duty commercial trucks throughout the country. Eight co-conspirators located in seven different states had previously been sentenced for their role in the conspiracy.
According to the plea agreements, between approximately January 2017 through December 2020, Elite and Lake instructed Elite employees to disable the computerized on-board diagnostic (OBD) systems on at least 344 heavy-duty commercial trucks. OBDs are required under the Clean Air Act to monitor emissions control hardware on vehicles to ensure that they are functioning properly. Elite’s co-conspirators, companies that operated diesel truck garages or diesel truck fleets, had disabled the emissions control hardware on these trucks and hired Elite and Lake to manipulate the OBDs so that the OBDs would not detect the malfunctions. This violated the Clean Air Act’s prohibition against tampering with monitoring devices, 42 U.S.C. § 7413(c)(2)(C).
Emissions controls on vehicles are critical to maintaining air quality, and when these controls are disabled, the increase in excess tailpipe pollution is significant. A study of the effects of tampering with these 344 trucks showed that the conspirators in this case collectively caused an illegal increase in pollutants of at least 1,300 tons of excess nitrogen oxides, 30 tons of excess non-methane hydrocarbons, 600 tons of excess carbon monoxide, and 30 tons of excess particulate matter. The World Health Organization has found that diesel exhaust is a carcinogen and causes lung cancer. Diesel exhaust is also associated with asthma and an increased risk of mortality from cardiovascular and respiratory disease. These impacts disproportionately affect low-income communities that tend to be located near highways and other high-traffic areas.
Lake was sentenced to 12 months and 1 day in custody and a fine of $2,500. Elite was sentenced to a five-year term of probation and ordered to pay a fine of $37,500. Elite was also ordered to make a payment of $12,500 to a program operated by the Colorado Department of Public Health and the Environment to repair the emissions control systems on vehicles owned by low-income drivers who cannot afford to bring their vehicles into compliance. The total assessment was based upon Elite’s demonstration that it was unable to pay a higher amount. Elite also agreed to enter into a corporate compliance and reporting program.
The convictions of Elite and Lake are the culmination of an investigation into a widespread conspiracy to tamper with emission controls on diesel trucks across the country. The co-conspirators, who cooperated with the government during its investigation, were previously sentenced to pay fines and make payments for community service projects designed to offset some of the environmental harm caused by the violations, as follows:
- Endrizzi Diesel LLC of Bolivar, MO, was assessed a penalty of $220,000 including a fine and a community service payment to the Walnut Grove, MO School District to help replace old school buses with newer and cleaner school buses.
- Pro Diesel Inc. of Des Moines, IA, was assessed a penalty of $155,000 including a fine and a community service payment to the Des Moines Area Community College to fund development of curricula to train diesel mechanics on servicing emissions controls.
- McDermid Sales & Service Inc. of Oconto Falls, WI, was assessed a penalty of $112,500 including a fine and a community service payment to the Oconto Falls School District to help replace old school buses with newer and cleaner school buses.
- Hammes Repair Inc. of Seneca, KS, was assessed a penalty of $117,500 including a fine and a community service payment to the Kansas Department of Health & Environment for the purchase of electric groundskeeping equipment to replace old gas-fired equipment.
- Crossroads Repair Inc. of Jamestown, ND, was assessed a penalty of $97,500 including a fine and a community service payment to the Jamestown Rural Fire Department to help replace an old firefighting truck with a newer and cleaner truck.
- ATP Oilfield Services LLC of Fort Lupton, CO, was assessed a penalty of $107,500 including a fine and a community service payment to the CDPHE program to repair emissions controls on vehicles owned by low-income drivers.
- Beatty Bodyworks Inc. of Oklahoma City, OK, was assessed a fine of $15,000 based on defendant’s inability to pay a higher fine.
- Perkins Diesel LLC of Strafford, MO, was assessed a penalty of $95,500 including a fine and a community service payment to the Walnut Grove, MO School District to help replace old school buses with newer and cleaner school buses.
The above eight defendants were also sentenced to probation and were required to enter into corporate compliance and reporting programs.
“These violations of the Clean Air Act affected the health of people in Colorado and across the nation,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “These sentences reflect the seriousness of these crimes.”
“For years, the defendants led a large-scale conspiracy designed to violate the Clean Air Act by defeating emissions control equipment on hundreds of heavy-duty commercial trucks,” said Special Agent in Charge Lance Ehrig of the Environmental Protection Agency’s Criminal Investigation Division in Colorado. “The actions by the defendants and their co-conspirators directly resulted in a significant increase in excess pollution, which diminished air quality and further placed vulnerable populations at risk of developing adverse health conditions. Today’s sentencing demonstrates that individuals and companies who violate our nation’s environmental laws and threaten our nation’s air quality will be held criminally responsible for their actions.”
The defendant was sentenced by Judge Regina Rodriguez on December 5, 2024.
The Environmental Protection Agency handled the investigation. Assistant United States Attorney Rebecca Weber and Special Assistant United States Attorney Linda Kato handled the prosecution.
Case Number: 24-cr-00118-RMR
Denver Man Indicted on 18 Counts for Defrauding Investment ClientsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Ian Gregory Bell, age 35, of Denver, Colorado was indicted by a federal grand jury on eight counts of wire fraud, five counts of mail fraud, and five counts of money laundering in connection with an investment scheme to defraud his clients.
According to the indictment, beginning in early 2020 and continuing through around March of 2023, Bell devised, intended to devise, and participated in a scheme and artifice to defraud investors and to obtain money and property by means of materially false and fraudulent pretenses, representations, and promises. It is alleged that as a part of the scheme Bell obtained more than $1 million from more than twenty investor clients by telling them he would deliver significant returns with low risk. In nearly all cases, he spent or lost the investors’ money within days or weeks of receiving it. The indictment further alleges that Bell sent investors screenshots showing fabricated gains, and routinely solicited additional investments through false promises about how much earlier investments had grown.
The defendant made his initial appearance in front of U.S. Magistrate Judge Michael E. Hegarty.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being investigated by the United States Postal Inspection Service and the Internal Revenue Service. These charges follow a parallel investigation by the U.S. Securities and Exchange Commission, Denver Regional Office. The prosecution is being handled by Assistant United States Attorney Rebecca Weber.
Case Number: 1:24-cr-00345-PAB-1
$2 Million Resolves Kickback Allegations Relating to Denver Neuromonitoring CompanyRead the Press Release
DENVER — The U.S. Attorney’s Office for the District of Colorado announced today that Denver-based Assure Holdings Corp. and its subsidiary Assure Neuromonitoring LLC (together “Assure”), Assure’s founder Preston Parsons, Denver-based neurosurgeon Dr. Brent Kimball, and California businessman James Mathew McAlpin have entered into settlements totaling more than $2 million to resolve allegations that they violated the False Claims Act by arranging kickbacks for neuromonitoring services.
The Anti-Kickback Statute prohibits knowingly offering, paying, soliciting, or receiving remuneration to induce referrals or orders for items or services covered by Medicare, Medicaid, TRICARE and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Claims to federally funded healthcare programs that include items or services resulting from a violation of the Anti-Kickback Statute also violate the False Claims Act, which prohibits submitting false or fraudulent claims for payment to the federal government.
The civil settlements announced today resolve allegations relating to intraoperative neuromonitoring services. Intraoperative neuromonitoring uses electrodes to monitor a patient’s nervous system during surgery. Typically, a technician present in the surgical suite places the electrodes before surgery, and then an oversight physician located elsewhere remotely monitors the data output while the surgeon is operating on the patient.
The United States alleges that Assure paid illegal remuneration to surgeons through joint venture companies to induce those surgeons to order intraoperative neuromonitoring services from Assure. In Dr. Kimball’s case, the alleged kickbacks were routed to Dr. Kimball through a complex web of transfers. At Dr. Kimball’s request, Mr. McAlpin, a friend of Dr. Kimball, formed a company that entered into a joint venture with Assure’s founder, Mr. Parsons. That joint venture was known as Englewood Professional Reading LLC. Through a series of transactions, a portion of the payments received by Englewood Professional Reading for oversight physician claims were routed to Dr. Kimball.
The United States alleges that these kickbacks resulted in claims paid for by federally funded healthcare programs. When Dr. Kimball ordered interoperative neuromonitoring services through Assure, Assure caused claims to be submitted by a third-party billing company on Englewood Professional Reading’s behalf to the patient’s insurer for payment of the oversight physician’s monitoring services. Sometimes, these claims for payment were submitted to Medicare Advantage Organizations responsible for providing coverage for Medicare beneficiaries. Other times, oversight physicians arranged by Assure submitted their own claims directly to Medicare or Colorado Medicaid for services provided to Medicare and Medicaid beneficiaries.
As part of the civil settlements, Assure has agreed to pay $1.008 million; Dr. Kimball has agreed to pay $650,000; Mr. Parsons has agreed to pay $225,000; and Mr. McAlpin has paid $125,000. Mr. Parsons’ settlement amount is based on his financial condition and limited ability to pay.
“Doctors’ decisions about which services to use when providing care to patients should never be tainted by how much money the doctor can make from kickbacks,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will continue to use the False Claims Act and other enforcement tools to maintain integrity in healthcare.”
“Ensuring that health care professionals and entities are held accountable for kickback violations is essential for preserving public trust and safeguarding the integrity of federal health care programs,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our federal and state law enforcement partners to identify and investigate alleged kickback schemes.”
The settlements also resolve claims brought under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. The qui tam case is captioned United States ex rel. Mathis v. Kimball, et al., No. 21-cv-01352-STV (D. Colo.). Mr. Mathis will receive 18% of the proceeds from the settlements.
The resolutions obtained in this matter were a result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado and the Medicaid Fraud Control Unit of the Colorado Attorney General’s Office, with assistance from HHS-OIG. Assistant United States Attorney Jasand Mock investigated the matter.
The claims resolved by the settlements are allegations only. There has been no determination of liability.
U.S. Department of Justice Brings Lawsuit to Stop Unlawful Fencing on Forest Service Land in ColoradoRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced today that it has filed a lawsuit alleging that Patrick Pipkin, Brian Hammon, and a group of unidentified persons unlawfully placed fencing, without permission, on federal public lands near Mancos, Colorado. The lawsuit, which was filed in the federal district court in the District of Colorado, seeks to clarify that such activity is not permitted and to prevent future unlawful fencing of the area.
In its complaint, the United States alleges that in October 2024, Mr. Pipkin, Mr. Hammon, and other unidentified individuals erected miles of fencing on public land in the San Juan National Forest that is owned by the United States and managed through the U.S. Department of Agriculture, Forest Service. The public uses this land for many purposes, including recreation and grazing. The defendants used fenceposts and barbed wire to erect the fencing, which obstructed free passage across a large area of this land. While much of the fencing materials were later removed by members of the public, some of those materials, including barbed wire, remain on the land. The lawsuit also alleges that since that time, Mr. Pipkin has regularly posted notices in the town of Mancos, signed by him as a representative of a group called the “Free Land Holder Committee,” which purport to exercise authority over the public’s use of this land and set deadlines for members of the public to act to protect their rights.
The complaint asserts claims under the Unlawful Inclosures Act of 1885 and for civil trespass. The lawsuit seeks a court order to prevent further obstruction or intimidation of lawful users of this popular area and further harm to the land and the public, and to ensure continuing free and lawful access to public land.
“Public lands belong to all of us, not to any individual person or group. It is unlawful to construct fences on Forest Service lands without the Forest Service’s permission,” stated Matt Kirsch, Acting United States Attorney for the District of Colorado. “We have filed this lawsuit to make clear that these federal lands remain open to the public for all lawfully permitted uses, and to prevent anyone from obstructing that public access.”
The claims made in the complaint are allegations that, if the case were to proceed to trial, the United States would need to prove by a preponderance of the evidence.
This case is being handled by Assistant U.S. Attorneys Jennifer Lake and Bill Scarpato.
Attachments:
civil_complaint_0_0.pdf exhibit_1_-_overview_map_0_0.pdf exhibit_2_-_detail_map_0_0.pdfPueblo Man Convicted on Drug, Felon in Possession ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Dominick Jesus Salazar, 51, of Pueblo, Colorado was convicted by a federal jury on one count of possession with intent to distribute 50 grams and more of methamphetamine, and one count of being a felon of possession of a firearm and ammunition.
According to the facts established at trial, on May 23, 2023, Salazar was arrested outside of a Pueblo area hotel room he was staying in after being observed by Pueblo Police Officers interacting with multiple people in a manner consistent with hand-to-hand drug sales. When agents arrested Salazar, he had a loaded pistol in his pocket along with drug proceeds. Inside his hotel room, agents found 184 grams of 98% pure meth.
“We will do our best to send convicted felons who continue to repeat their criminal behavior back to prison,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our communities are safer with one more repeat offender off the streets.”
United States District Court Judge Charlotte N. Sweeney presided over the trial. The FBI Denver Field Office handled the investigation. The Violent Crime and Immigration Enforcement Section of the United States Attorney’s Office for the District of Colorado handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-CR-00310
Former Trading Firm Executive Sentenced to 23 Years for Defrauding Victims in Colorado and WorldwideRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Bryant Edwin Sewall, 57, formerly of Little Elm, Texas, was sentenced to 23 years in prison after being found guilty by a federal jury in May of 2024 on 14 counts of wire fraud and one count of conspiracy to commit wire fraud. Michael Shawn Stewart, 61, of Scottsdale, Arizona, who was also found guilty on the same counts, will be sentenced at a later date.
Evidence presented at the three-week trial showed that Stewart and Sewall were owners and executives of companies operating on various Caribbean islands under the names Mediatrix Capital and Blue Isle Markets. As part of the scheme Stewart and Sewall provided false and fraudulent information about an algorithm-based foreign currency exchange (“ForEx”) trading program to potential investors and to salespeople they were using to solicit investors. For example, Stewart and Sewall falsely represented that Mediatrix had a history of successful ForEx trading going back to 2013 with no months of losses when, instead, Mediatrix did not exist until 2014 and its trading history included many months of net losses. Mediatrix promised its investors “100% Transparency,” “100% Liquidity” and “World Class Returns.”
Additional evidence at trial showed that after luring investors into the scheme Stewart and Sewall fraudulently induced them to stay by manipulating account statements to show only positive trades while intentionally hiding massive losses that substantially reduced those investors’ accounts. By the end of the scheme, Stewart and Sewall had promised investors over $179 million but had only $9.8 million in their accounts, a gap that they internally referred to as “the hole.” Even as they lost approximately $32 million in trades, Stewart and Sewall rewarded themselves with approximately $28 million in performance fees. They also used their brokerage, Blue Isle, to fraudulently convert investor money into over $45 million in markup fees. They spent the money on real estate, boats, cars, jewelry, and other luxuries. Sewall was ordered to pay approximately $93 million in restitution.
“This is a serious sentence for a serious crime,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Justice was done for the many people who were victimized Sewall’s outrageous crimes.”
"Mr. Sewall and his co-defendants orchestrated an elaborate foreign currency investment fraud scheme that caused extensive financial harm to unsuspecting victims. He convinced investors by deceiving them with calculated lies about the profit potential and then created an illusion while he used their money for his own personal gain,” said FBI Denver Special Agent In Charge Mark Michalek. “The FBI will continue to investigate and seek justice for individuals who fall victim to financial criminals who cheat and lie.”
A third partner involved with Mediatrix and Blue Isle — Michael Young — previously pleaded guilty to making a false statement to the Securities and Exchange Commission and was sentenced to one year and one day in prison earlier this year.
United States District Court Judge William J. Martinez presided over the sentencing. The Federal Bureau of Investigation’s Denver Field Office conducted the investigation. Assistant United States Attorneys Anna Edgar, Bryan Fields, and former AUSA Pegeen Rhyne handled the prosecution.
Case number: 21-cr-00034-WJM
Two Men Indicted on Charges Connected to Violent Robbery of Mail CarrierRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Marquis Taylor, 28, and Elijah Woods, 21, were indicted by a federal grand jury on one count each of conspiracy, assault with intent to rob a U.S. Postal Carrier, and mail theft.
According to the indictment and connected court filings, in September of 2023, Taylor, Woods, and a third man, Dravell Emon Ross, 28, committed a strong-arm robbery of a postal carrier while she was on duty in her mail truck taking her lunch break. The robbery occurred near Utah Park in Aurora in the middle of the day. The three men attempted to obtain a universal mailbox key from the postal carrier in order to access community mailboxes. The men were unable to steal the universal key, but did steal various pieces of mail, packages, and a postal scanner. The postal carrier suffered minor injuries as a result of the robbery.
On July 17, 2024, Ross was sentenced to federal prison for four years in connection with his role in the robbery. On November 13, 2024, Taylor was arrested and is detained pending trial. Woods was released on bond while the charges remain outstanding. The trial for Taylor and Woods is currently scheduled in federal district court for March 31, 2025.
The case is being investigated by the United States Postal Inspection Service. The prosecution is being handled by Assistant United States Attorney Tim Neff.
Pueblo Man Convicted on Multiple Drug and Firearms ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that David Wayne Watkins, 45, of Pueblo, Colorado, was convicted by a federal jury on five counts including possession of fentanyl with intent to distribute, possession of methamphetamine with intent to distribute, being a felon in possession of a weapon and ammunition, possession of a weapon in furtherance of a drug trafficking crime, and possession of an unregistered short-barreled rifle.
According to the facts established at trial, Watkins was stopped by Pueblo Police in December of 2023 for a forged temporary license plate tag. During the stop, Watkins briefly ran from officers before his arrest. During his arrest, police recovered a loaded handgun from his waistband and a bag and wallet together containing $52,000 in cash, 378 fentanyl pills, and 25 grams of pure methamphetamine. When officers searched his car, they found one additional handgun, numerous firearm magazines and ammunition, clear baggies, and a bag with an additional 375 fentanyl pills. A search of his hotel room resulted in the recovery of a short-barreled rifle and additional ammunition.
“Violent drug dealers have no place in our communities, and we are proud of the team effort that was involved in getting this repeat offender off the street,” said Acting United States Attorney for the District of Colorado Matt Kirsch.
“This felon was responsible for bringing weapons and drugs into the Pueblo community, and neighborhoods are safer with him behind bars,” said FBI Denver Special Agent in Charge Mark Michalek. “FBI Denver leans on successful partnerships with Pueblo Police Department, Denver Police Department, ATF, DEA and USAO to support our common goals. We will continue our steadfast support and commitment to the Pueblo Community.”
“This conviction is testament to the hard work and perseverance of the Pueblo Police Department’s Investigations Division, and more specifically the gang and narcotics unit,” said Pueblo Police Department Chief of Police Chris Noeller. “I want to commend the US Attorney’s Office and the jury for helping to ensure Mr. Watkins is held accountable for his actions and for working to keep this dangerous criminal off the streets of our community.”
United States District Court Judge S. Kato Crews presided over the trial. The Pueblo Police Department and the FBI Denver Field Office handled the investigation. The Violent Crime and Immigration Enforcement Section of the United States Attorney’s Office for the District of Colorado handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.Case Number: 1:24-cr-00058-SKC
Grand Junction Man Sentenced to 71 Months in Federal Prison and 48 Months in State Prison in Connection with Fentanyl Overdose Death of A MinorRead the Press Release
GRAND JUNCTION – The United States Attorney’s Office for the District of Colorado and the 21st Judicial District of Colorado announce that Nathanial Matheny, 23, of Grand Junction, was sentenced to 71 months in federal prison after pleading guilty to one count of possession with the intent to distribute a substance containing a detectable amount of fentanyl and to 48 months in state prison after pleading guilty to one count of removing human remains. The sentences will be served concurrently.
According to the federal plea agreement, on May 20, 2021, Grand Junction Police responded to a call about a young woman who was not breathing in an area home. When they arrived, police found an unresponsive minor victim. Toxicology reports attributed the minor’s death to an overdose of fentanyl. The investigation led to Matheny, who admitted to doing drugs with the minor and taking her body back to her home after she overdosed.
“This is a tragic story of a young person whose life was cut short because of fentanyl,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Coloradans need to know that this is a serious problem in our communities and that our office is working hard to prosecute people who are distributing fentanyl in our state.”
“Justice was delivered for the victim of this terrible tragedy,” said Dan Rubinstein, District Attorney for the 21st Judicial District of Colorado. “I hope these sentences send a message that fentanyl crimes have extremely serious consequences.”
“The Drug Enforcement Administration (DEA) helped bring justice to a young woman and her family. I am extremely proud of the investigative team who meticulously pieced this investigation together from the smallest of details and delivered a comprehensive account of the victim’s final hours which helped hold the defendant accountable for his actions,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen.
“The sentencing of Nathanial Matheny underscores the commitment and dedication of law enforcement to protecting our communities, especially its youngest and most vulnerable members, from dangerous drugs,” said Grand Junction Police Department Chief Matt Smith. “Our department is grateful for the collaboration between local, state, and federal law enforcement agencies in this ongoing fight against the devastating impact of dangerous drugs on our communities.”
United States District Court Judge Gordon P. Gallagher presided over the federal sentencing. Mesa County District Court Chief Judge Brian Flynn presided over the state sentencing. The case was investigated by the Drug Enforcement Agency and the Grand Junction Police Department. The case was prosecuted by Assistant United States Attorney Peter Hautzinger.
Case Number: 1:23-cr-00257-GPG
Colorado Recidivist Sex Offender Sentenced to 35 Years in Prison for Crimes Against ChildrenRead the Press Release
A Colorado man was sentenced yesterday to 35 years in prison and a lifetime term of supervised release for his distribution of child sexual abuse material (CSAM) and involvement with a dark-web website dedicated to CSAM.
According to court documents, while still on parole for a 2013 Colorado conviction for sexual exploitation of a child, registered sex offender Christopher Carl Meier, 41, of Denver, became a member of a dark-web website dedicated to CSAM depicting boys and the discussion of the sexual abuse of minor boys. On July 9, Meier pleaded guilty to conspiracy to distribute CSAM and five counts of distribution of CSAM. Meier was a member of the website for more than 18 months and made more than 600 posts on the website. On this website, Meier advertised and distributed images and videos depicting minor boys engaged in sexual conduct. He made statements on the website admitting that he produced this material by tricking the boys into thinking that they were interacting online with a girl their own age and enticing them to disrobe and engage in sex acts on webcam. The FBI is aware of at least 65 victims of Meier’s conduct.
Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew Kirsch for the District of Colorado; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.
The FBI Child Exploitation Operational Unit and Denver Field Office investigated the case.
Acting Deputy Chief Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado prosecuted the case.
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 Justice Department. Led by U.S. Attorneys’ Offices and 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, visit www.justice.gov/psc.
Colorado Recidivist Sex Offender Sentenced to 35 Years in Prison for Crimes Against ChildrenRead the Press Release
DENVER – A Colorado man was sentenced yesterday to 35 years in prison and a lifetime term of supervised release for his distribution of child sexual abuse material (CSAM) and involvement with a dark-web website dedicated to CSAM.
According to court documents, while still on parole for a 2013 Colorado conviction for sexual exploitation of a child, registered sex offender Christopher Carl Meier, 41, of Denver, became a member of a dark-web website dedicated to CSAM depicting boys and the discussion of the sexual abuse of minor boys. On July 9, Meier pleaded guilty to conspiracy to distribute CSAM and five counts of distribution of CSAM. Meier was a member of the website for more than 18 months and made more than 600 posts on the website. On this website, Meier advertised and distributed images and videos depicting minor boys engaged in sexual conduct. He made statements on the website admitting that he produced this material by tricking the boys into thinking that they were interacting online with a girl their own age, and by enticing them to disrobe and engage in sex acts on webcam. The FBI is aware of at least 65 victims of Meier’s conduct.
Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew Kirsch for the District of Colorado; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.
The FBI Child Exploitation Operational Unit and Denver Field Office investigated the case.
Acting Deputy Chief Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado prosecuted the case.
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 Justice Department. Led by U.S. Attorneys’ Offices and 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, visit www.justice.gov/psc.
Denver Couple Sentenced for Scheme That Defrauded Department of Defense ContractorRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Kimberly Ann Tew, 43, Denver, Colorado was sentenced to 48 months in prison, and Michael Tew, 45, Denver, Colorado was sentenced to 42 months for their roles in a wire fraud scheme that defrauded National Air Cargo, a logistics company and contractor for the Department of Defense. A federal jury in Denver returned guilty verdicts against both defendants on February 15, 2024. Ms. Tew was ordered to pay a forfeiture money judgment of over $5 million, restitution in the same amount, and a $35,000 fine. Mr. Tew shares in the money judgement, restitution, and a $100,000 fine.
According to the facts established at trial, beginning in 2018, Michael Tew and Kimberly Tew conspired to defraud National Air Cargo through the submission of dozens of false invoices for services and items that were never provided. Over the course of two years, with the help of a co-conspirator, the Tews defrauded the business of five million dollars. Testimony at trial demonstrated the Tews gambled away much of the money and spent $2.4 million buying cryptocurrencies at cryptocurrency ATMs across the Denver area. Michael Tew also failed to file federal income tax returns for tax years 2016 through 2019, on both his earned income and funds obtained from the fraud scheme.
“The Tews enriched themselves by exploiting the trust of an employer, and they deserve every day of these sentences," said Acting United States Attorney for the District of Colorado Matt Kirsch. “We are grateful to our partners at IRS-CI and the FBI for their help in bringing them to justice.”
“Michael and Kimberly Tew’s greed and desire for a lavish lifestyle led to the judgement handed down today,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “These two sentences are an example of the impressive work of our special agents and law enforcement partners and reinforces the fact that financial crimes carry with them significant penalties.”
“This audacious and greedy scheme defrauded a defense contractor of $5 million over several years. These criminal acts fully warrant the penalties imposed,” said FBI Denver Special Agent in Charge Mark Michalek. “The FBI remains committed to working with IRS-CI to target and bring to justice individuals engaged in such unlawful behavior.”
Kimberly Tew was sentenced by United States District Court Judge Daniel D. Domenico on August 8, 2024. Michael Tew was sentenced by Judge Domenico on November 12, 2024.
IRS Criminal Investigation, and the FBI Denver Field Office conducted the investigation. Assistant United States Attorneys Bryan Fields and Sarah Weiss and former Assistant United States Attorney Hetal Doshi handled the prosecution.
Case Number: 20-cr-00305-DDD
UCHealth Agrees to Pay $23M to Resolve Allegations of Fraudulent Billing for Emergency Department VisitsRead the Press Release
DENVER – University of Colorado Health, known as UCHealth and headquartered in Aurora, Colorado, has agreed to pay $23 million to resolve allegations that it violated the False Claims Act in seeking and receiving payment from federal health care programs for visits to its emergency departments, by falsely coding certainEvaluation & Management (E&M) claims submitted to the Medicare and TRICARE programs.
“Improperly billing federal health care programs drains valuable government resources needed to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated or unsupported claims.”
E&M claims relate to medical visits that involve evaluating and managing a patient’s health and medical conditions, including qualifying visits to a hospital’s emergency department. In submitting an E&M claim to Medicare or TRICARE, a hospital may use one of five Current Procedural Terminology (CPT) codes (CPT 99281 through CPT 99285), depending on the hospital resources associated with the visit. An E&M facility claim coded with CPT 99285 represents the highest hospital resource usage.
The United States alleged that, from Nov. 1, 2017, through March 31, 2021, UCHealth hospitals automatically coded certain claims for emergency room visits using CPT 99285. UCHealth used this code whenever its health care providers had checked a patient’s set of vital signs more times than the total number of hours that the patient was present in the emergency department, excepting patients who were in the emergency department for fewer than 60 minutes, despite the severity of the patient’s medical condition or the hospital resources used to manage the patient’s health and treatment. The United States alleged that UCHealth knew that its automatic coding rule associated with monitoring of vital signs did not satisfy the requirements for billing to Medicare and TRICARE because it did not reasonably reflect the facility resources used by the UCHealth hospitals.
“Fraudulent billing by health care companies undermines Medicare and other federal health care programs that are vital to many Coloradans,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will hold accountable health care companies who adopt automatic coding practices that lead to unnecessary and improper billing.”
“Health care providers that participate in federal health care programs such as Medicare are required to obey laws meant to preserve the integrity of program funds, including requiring that providers submit only appropriate and accurate claims for reimbursement,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this settlement demonstrates, HHS-OIG and our law enforcement partners will continue working together to protect both public safety and the integrity of our federal health care system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a private individual, Timothy Sanders. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States, et al. ex rel. Sanders v. University of Colorado Health et al., No. 21-cv-1164 (D. Colo.). As part of today’s resolution, Mr. Sanders will receive $3.91 million of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Colorado, with assistance from HHS-OIG and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney David G. Miller of the Civil Division and Assistant U.S. Attorney Lila Bateman for the District of Colorado handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement Agreement
UCHealth Agrees to Pay $23M to Resolve Allegations of Fraudulent Billing for Emergency Department VisitsRead the Press Release
University of Colorado Health, known as UCHealth and headquartered in Aurora, Colorado, has agreed to pay $23 million to resolve allegations that it violated the False Claims Act in seeking and receiving payment from federal health care programs for visits to its emergency departments, by falsely coding certain Evaluation & Management (E&M) claims submitted to the Medicare and TRICARE programs.
“Improperly billing federal health care programs drains valuable government resources needed to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated or unsupported claims.”
E&M claims relate to medical visits that involve evaluating and managing a patient’s health and medical conditions, including qualifying visits to a hospital’s emergency department. In submitting an E&M claim to Medicare or TRICARE, a hospital may use one of five Current Procedural Terminology (CPT) codes (CPT 99281 through CPT 99285), depending on the hospital resources associated with the visit. An E&M facility claim coded with CPT 99285 represents the highest hospital resource usage.
The United States alleged that, from November 1, 2017, through March 31, 2021, UCHealth hospitals automatically coded certain claims for emergency room visits using CPT 99285. UCHealth used this code whenever its health care providers had checked a patient’s set of vital signs more times than the total number of hours that the patient was present in the emergency department, excepting patients who were in the emergency department for fewer than 60 minutes, despite the severity of the patient’s medical condition or the hospital resources used to manage the patient’s health and treatment. The United States alleged that UCHealth knew that its automatic coding rule associated with monitoring of vital signs did not satisfy the requirements for billing to Medicare and TRICARE because it did not reasonably reflect the facility resources used by the UCHealth hospitals.
“Fraudulent billing by healthcare companies undermines Medicare and other federal healthcare programs that are vital to many Coloradans,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will hold accountable health care companies who adopt automatic coding practices that lead to unnecessary and improper billing.”
“Health care providers that participate in federal health care programs such as Medicare are required to obey laws meant to preserve the integrity of program funds, including requiring that providers submit only appropriate and accurate claims for reimbursement,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this settlement demonstrates, HHS-OIG and our law enforcement partners will continue working together to protect both public safety and the integrity of our federal health care system.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a private individual, Timothy Sanders. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States, et al. ex rel. Sanders v. University of Colorado Health et al., No. 21-cv-1164 (D. Colo.). As part of today’s resolution, Mr. Sanders will receive $3.91 million of the proceeds from the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Colorado, with assistance from HHS-OIG and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney David G. Miller of the Civil Division and Assistant U.S. Attorney Lila Bateman for the District of Colorado handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Three People Indicted on Charges Related to Hate Crime HoaxRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Derrick Bernard Jr., 35, Ashely Blackcloud, 40, and Deanna West, 38, were indicted by a federal grand jury for maliciously conveying false information about a threat made by means of fire: a burning cross in front of a campaign sign defaced with a racial slur.
According to the indictment, the three defendants were charged for their alleged roles in a conspiracy to spread disinformation about the threat. The 2023 Colorado Springs mayoral run-off election involved Candidate 1, who was Black, and Candidate 2, who was white. After the initial election but before the run-off, Bernard sent a message in which he explained he was “mobilizing my squad in defense. Black ops style big brother.” He also sent messages referencing a desire to prevent “the klan” from gaining political control of the city. Bernard then worked with Blackcloud and West to stage, at an intersection in the City of Colorado Springs in the early hours of April 23, 2023, a cross burning in front of a campaign sign for Candidate 1 defaced with a racial slur. The three then allegedly spread false information about the event through an email from an anonymous source to various news and civic organizations.
All three defendants made their initial appearances in front of Magistrate Judge Timothy P. O’Hara.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation was conducted by the Federal Bureau of Investigation, with substantial assistance from the Colorado Springs Police Department. The case is being prosecuted by Assistant United States Attorneys Bryan Fields and Rebecca Weber.
Case Number: 24-cr-00320-RMR
Phoenix Man Sentenced to More Than 19.5 Years in Prison for Selling Fentanyl That Killed Mesa County InmateRead the Press Release
GRAND JUNCTION – The United States Attorney’s Office for the District of Colorado announces that Jeremiah Robinson, 44, of Phoenix, Arizona, was sentenced to 235 months (more than 19.5 years) in prison, to be followed by four years of supervision, after pleading guilty to one count of conspiracy to distribute more than 40 grams of fentanyl.
According to the plea agreement and information presented at sentencing, Robinson was a longtime drug dealer and six-time convicted felon operating in Phoenix. Prior to May 2022, Robinson had repeatedly sold drugs to Efrain Velez, a drug dealer who traveled from Mesa County, Colorado, to buy from Robinson. On May 7, 2022, Robinson sold bulk fentanyl and methamphetamine to Velez and two associates, Vanessa Vasquez and Anna Munday, in Phoenix. As the trio made their way back towards Mesa County, law enforcement intercepted their vehicle and discovered the drugs. During the traffic stop, Velez and Vasquez hid drugs on their persons and smuggled them into the Mesa County Detention Facility. Once inside the jail, Munday and Vasquez further distributed the drugs to inmates. On May 20, 2022, Karlie Locke gave one of the pills sold by Robinson to another inmate, who died of fentanyl intoxication.
According to the Drug Enforcement Administration (DEA), two milligrams of fentanyl can kill the average American; seven out of ten DEA-tested pills contain at least that amount.
The four other conspirators in this case have been separately charged for fentanyl distribution resulting in death under the case number 22-cr-00232-GPG. Vannessa Vasquez has been sentenced to nine years’ imprisonment and Karlie Locke has been sentenced to ten years’ imprisonment. Anna Munday and Efrain Velez are pending sentencing.
“Jeremiah Robinson valued the profit from his drug trade over the lives of his customers,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Wherever you operate, if you sell drugs that make their way into Colorado, our office will find you and hold you accountable.”
United States District Court Judge Gordon P. Gallagher presided over the sentencing. The Drug Enforcement Administration (DEA) Rocky Mountain Division and the Mesa County Sheriff's Office investigated the case. Assistant United States Attorneys Jeffrey K. Graves, Jennifer Springer, and former Assistant United States Attorney Jeremey Chaffin prosecuted the case.
Justice Department Secures Settlement Agreement with Colorado to Ensure Opportunities for People with Physical Disabilities to Live at HomeRead the Press Release
The Justice Department announced today that it secured a settlement agreement to resolve its lawsuit alleging that Colorado violates Title II of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C. by unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities.
The ADA and the Olmstead decision require state and local governments to administer their services to people with disabilities in the most integrated setting appropriate to their needs. Today’s agreement gives thousands of Coloradans with physical disabilities the opportunity to move out of nursing facilities into the community — or avoid unnecessary nursing facility admission altogether — and receive the services they need at home. Community-based services that can help people live at home include assistance with bathing, dressing, managing medications and preparing meals.
“People with disabilities should not have to give up their lives in the community and be isolated in nursing facilities to get the services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement agreement sends the message that people with disabilities deserve the same kinds of lives as others, and makes clear that our family members, friends, and neighbors with disabilities add value to our lives and strengthen our communities when they can receive the services they need right inside their own home.”
“Today’s resolution will give thousands of Coloradans with physical disabilities the information, resources, and opportunity to live in communities rather than being needlessly isolated. The agreement will also save taxpayer money by reducing state-funded institutionalization,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We commend our Civil Rights Division colleagues for their dedication and focus on this important issue, and we acknowledge the commitments made by the State of Colorado in this agreement.”
The department sued Colorado in September 2023, following a multi-year investigation. The lawsuit alleged that the state failed to provide adults with physical disabilities with the services they need to live at home or avoid moving into a nursing facility. In Colorado, most nursing facility residents and their families are unaware that they can receive services like nursing, personal care and housing assistance in the community. As a result, many move into, or remain in, nursing facilities even though they would prefer to live at home.
To increase community integration for adults with physical disabilities, the state has made significant commitments in this agreement to:
- Help thousands of nursing facility residents move back to the community;
- Identify people at risk of unnecessary nursing facility admission to help them stay in their homes with the services they need;
- Provide people with the information they need to make an informed choice about whether to live in a nursing facility or receive the services they need at home;
- Connect people more quickly to Medicaid long-term care services in the community;
- Increase opportunities for people with disabilities to hire and supervise their own caregivers;
- Support family caregivers;
- Facilitate prompt transitions to the community for interested nursing facility residents, by reducing administrative bottlenecks and problem-solving common transition barriers; and
- Expand and improve services that help people find and keep affordable, accessible housing in the community.
The parties have agreed that the federal district court will retain jurisdiction to enforce the agreement and that an independent monitor will evaluate the state’s compliance.
Additional information about the Civil Rights Division is available at www.justice.gov/crt.
Members of the public can report possible civil right violations at www.civilrights.justice.gov.
Justice Department Secures Settlement Agreement with Colorado to Ensure Opportunities for People with Physical Disabilities to Live at HomeRead the Press Release
The Justice Department announced today that it secured a settlement agreement to resolve its lawsuit alleging that Colorado violates Title II of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C. by unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities.
The ADA and the Olmstead decision require state and local governments to administer their services to people with disabilities in the most integrated setting appropriate to their needs. Today’s agreement gives thousands of Coloradans with physical disabilities the opportunity to move out of nursing facilities into the community — or avoid unnecessary nursing facility admission altogether — and receive the services they need at home. Community-based services that can help people live at home include assistance with bathing, dressing, managing medications and preparing meals.
“People with disabilities should not have to give up their lives in the community and be isolated in nursing facilities to get the services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement agreement sends the message that people with disabilities deserve the same kinds of lives as others, and makes clear that our family members, friends, and neighbors with disabilities add value to our lives and strengthen our communities when they can receive the services they need right inside their own home.”
“Today’s resolution will give thousands of Coloradans with physical disabilities the information, resources, and opportunity to live in communities rather than being needlessly isolated. The agreement will also save taxpayer money by reducing state-funded institutionalization,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We commend our Civil Rights Division colleagues for their dedication and focus on this important issue, and we acknowledge the commitments made by the State of Colorado in this agreement.”
The department sued Colorado in September 2023, following a multi-year investigation. The lawsuit alleged that the state failed to provide adults with physical disabilities with the services they need to live at home or avoid moving into a nursing facility. In Colorado, most nursing facility residents and their families are unaware that they can receive services like nursing, personal care and housing assistance in the community. As a result, many move into, or remain in, nursing facilities even though they would prefer to live at home.
To increase community integration for adults with physical disabilities, the state has made significant commitments in this agreement to:
- Help thousands of nursing facility residents move back to the community;
- Identify people at risk of unnecessary nursing facility admission to help them stay in their homes with the services they need;
- Provide people with the information they need to make an informed choice about whether to live in a nursing facility or receive the services they need at home;
- Connect people more quickly to Medicaid long-term care services in the community;
- Increase opportunities for people with disabilities to hire and supervise their own caregivers;
- Support family caregivers;
- Facilitate prompt transitions to the community for interested nursing facility residents, by reducing administrative bottlenecks and problem-solving common transition barriers; and
- Expand and improve services that help people find and keep affordable, accessible housing in the community.
The parties have agreed that the federal district court will retain jurisdiction to enforce the agreement and that an independent monitor will evaluate the state’s compliance.
Additional information about the Civil Rights Division is available at www.justice.gov/crt.
Members of the public can report possible civil right violations at www.civilrights.justice.gov.
Justice Department Releases Information on Efforts to Protect the Right to Vote, Prosecute Election Fraud, and Secure ElectionsRead the Press Release
WASHINGTON — Consistent with longstanding Justice Department practices and procedures, the department today is providing information about its efforts, through the Civil Rights Division, Criminal Division, National Security Division (NSD), and U.S. Attorneys’ Offices throughout the country, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or criminal activity in the election process, and to ensure that our elections are secure and free from foreign malign influence and interference.
Civil Rights Division
The department’s Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right. This work is often performed in partnership with U.S. Attorneys’ Offices.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; National Voter Registration Act; Uniformed and Overseas Citizens Absentee Voting Act; Help America Vote Act; and Civil Rights Acts. Among other things, collectively, these laws:
• Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color, or language minority status;
• Prohibit intimidation of voters;
• Allow voters who need assistance in voting because of disability or inability to read or write to receive assistance from a person of their choice (other than agents of their employer or union);
• Require minority language election materials and assistance in certain jurisdictions;
• Require accessible voting systems for voters with disabilities;
• Require that provisional ballots be offered to voters who assert they are registered and eligible to vote in the jurisdiction, but whose names do not appear on poll books;
• Require states to provide for absentee voting for uniformed service members serving away from home, their family members also away from home due to that service, and U.S. citizens living abroad; and
• Require covered states to offer the opportunity to register to vote through offices that provide driver licenses, public assistance, and disability services, as well as through the mail, and to take steps regarding maintaining voter registration lists.
The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA), which prohibits discrimination in voting based on disability. The ADA applies to all aspects of voting, including voter registration, selection and accessibility of voting facilities, and the casting of ballots on Election Day or during early voting, whether in-person or absentee.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter interference based on race, color, national origin, or religion.
• Throughout the election cycle, Civil Rights Division attorneys in the Voting, Disability Rights, and Criminal Sections in Washington, D.C., will be ready to receive complaints of potential violations of any of the statutes the Civil Rights Division enforces. The Civil Rights Division will work closely with counterparts at U.S. Attorneys’ Offices and other department components to review and take appropriate action concerning these complaints.
• Individuals with complaints related to possible violations of the federal voting rights laws can call the Justice Department’s toll-free telephone line at 800-253-3931, and can also submit complaints at www.civilrights.justice.gov.
• Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.
Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorneys’ Offices
The department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election crimes, such as destruction of ballots, vote-buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes, and malfeasance by postal or election officials and employees. See Justice Manual 9-85.210 (discussing requirements regarding election crime matters); 9-85.300 (discussing approach to ballot fraud); 9-85.400 (discussing application of 18 U.S.C. § 592); 9-85.500 (discussing timing of actions).
The Criminal Division and the U.S. Attorneys’ Offices are also responsible for enforcing federal criminal law prohibiting unlawful threats of violence against election workers, and prohibiting voter intimidation and voter suppression for reasons other than race, color, national origin, or religion (as noted above, voter intimidation and voter suppression that has a basis in race, color, national origin, or religion is addressed by the Civil Rights Division often in partnership with the U.S. Attorneys’ Offices).
U.S. Attorneys’ Offices around the country designate Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in their respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts, and for coordinating with the department’s election-crime experts in Washington, D.C.
The U.S. Attorneys’ Offices work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible election crimes are handled appropriately. Specifically:
• In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorneys’ Offices, FBI officials at headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
• Election-crime complaints should be directed to the local U.S. Attorney’s Office or the local FBI field office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/districts. A list of FBI field offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
• Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.
All complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911. After alerting local law enforcement to such emergencies by calling 911, the public should contact the Justice Department.
National Security Division
The department’s National Security Division (NSD) supervises the investigation and prosecution of cases affecting or relating to national security, including any cases involving foreign malign influence and interference in elections or violent extremist threats to elections. In this context:
• NSD oversees matters involving a range of malign influence activities that foreign governments may attempt.
• NSD’s Counterintelligence and Export Control Section oversees matters involving covert information operations (e.g., to promulgate disinformation through social media); covert efforts to support or denigrate political candidates or organizations; and other covert influence operations that might violate various criminal statutes.
• NSD’s National Security Cyber Section oversees such matters when they are cyber-enabled (i.e., when online platforms, such as social media and other online services, are central to the commission of the offense), as well as those involving computer hacking of election or campaign infrastructure.
• NSD’s Counterterrorism Section oversees matters involving international and domestic terrorism and supports law enforcement in preventing any acts of terrorism that impact Americans, including any violent extremism that might threaten election security.
As in past elections, the National Security Division will work closely with counterparts at the FBI and our U.S. Attorneys’ Offices to protect our nation’s elections from any national security threats. Attorneys from National Security Division sections will be partnered with FBI Headquarters components to provide support to U.S. Attorneys’ Offices and FBI field offices to counter any such threats. The Department of Homeland Security also plays its own important role in safeguarding critical election infrastructure from cyber and other threats.
Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911 and, after local authorities are contacted, then should be reported also to the department.
Protecting the right to vote, prosecuting election crimes, and securing our elections are all essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information regarding concerns in these subject areas to contact the appropriate authorities.
For more information about the department’s work to ensure compliance with federal civil and criminal laws related to voting, please visit www.justice.gov/voting and www.justice.gov/criminal/criminal-pin/election-crimes-branch.
Thornton Man Sentenced to 52 Months for Falsely Filing Client Tax ReturnsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Lance McCuistion, 56, of Thornton, was sentenced to 52 months in prison after pleading guilty to preparing false tax returns on behalf of clients.
According to the plea agreement, in July 2014, McCuistion plead guilty to preparing false tax returns in a prior investigation and was sentenced to probation. As a result of that offense, McCuistion was unable to obtain a Preparer Tax Identification Number (PTIN). However, from approximately April 2018 through April 2022, McCuistion used PTINs in the names of three individuals associated with McCuistion to prepare tax returns on behalf of clients. These tax returns claimed items for which McCuistion knew the taxpayers were not eligible in order to increase refunds or reduce taxes due.
“Tax preparers are trusted by their clients to do the right thing,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “We will continue to prosecute tax preparers who abuse that trust for personal gain.”
“This case is an example of the commitment IRS-CI brings to financial investigations involving tax preparers who abuse the system and line their pockets rather than doing what is best for their clients.” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “The dishonesty and disregard exhibited by individuals like McCuistion violates the trust clients place in their tax preparers who have a duty to handle clients’ returns accurately and in compliance with the law.”
United States District Court Judge Charlotte N. Sweeney presided over the sentencing. The case was investigated by the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant United States Attorney Sarah Weiss.
Case Number: 24-cr-00116-CNS
Return to Nature Funeral Home Owners Plead Guilty in Federal CourtRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Jon Hallford, 44, and Carie Hallford, 47, pleaded guilty today to one count each of conspiracy to commit wire fraud.
According to the plea agreements for each, the Hallfords were the co-owners of Return to Nature Funeral Home, which operated both in the Colorado Springs area and in Penrose, Colorado. In October 2023, residents in the Penrose area reported a foul odor emanating from the Return to Nature facility. After obtaining a search warrant, FBI, CBI, and local law enforcement investigators found the remains of approximately 190 deceased persons inside the building in various states of decomposition. Some of the remains discovered had dates of death as far back as 2019. As part of their fraud scheme, the Hallfords misled customers of the funeral home into believing that the remains of their loved ones would be buried or cremated per their wishes and the terms of the parties’ contracts.
As part of their plea agreements, the Hallfords also admitted that they conspired together to defraud the U.S. Small Business Administration of over $800,000 in COVID-19 pandemic relief funds, which they obtained under the government’s Economic Injury Disaster Loan program.
Sentencing will be held at a later date. Each defendant faces up to twenty years in federal prison.
United States District Court Judge Nina Y. Wang presided over the hearing. The FBI Denver Field Office and The United States Small Business Administration Office of Inspector General investigated the case. Several other state and local law enforcement agencies including the Colorado Bureau of Investigation, the Colorado Springs Police Department, the El Paso County Coroner’s Office, the Fremont County Sheriff’s Office, and the Fremont County Coroner’s Office have made significant contributions to this case. The prosecution was handled by Assistant United States Attorneys Tim Neff and Craig Fansler.
Justice Department Announces Four Cases Brought by Election Threats Task ForceRead the Press Release
WASHINGTON — The Justice Department’s Election Threats Task Force (ETTF) announced developments this week in four cases involving interstate transmissions of threats to election personnel and other victims.
Teak Brockbank, 45, of Cortez, Colorado, pleaded guilty today to threatening a Colorado election official, and admitted to making other threats to an Arizona election official, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024.
Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced on Monday to 30 months in prison for sending messages threatening violence to election workers with Maricopa County Elections in Phoenix on Aug. 2-4, 2022, during and immediately following the Arizona primary elections.
Richard Glenn Kantwill, 61, of Tampa, Florida, was charged on Monday for allegedly sending a threat on Feb. 9 to an election official in addition to already pending charges for threats made to three other victims based on their political commentary in 2019 and 2020.
John Pollard, 62, of Philadelphia, was charged on Monday for allegedly threatening on Sept. 6 to kill a representative of a Pennsylvania state political party who was recruiting official poll watchers.
“As we approach Election Day, the Justice Department’s warning remains clear: anyone who illegally threatens an election worker, official, or volunteer will face the consequences,” said Attorney General Merrick B. Garland. “Over the past three and a half years, the Justice Department has been aggressively investigating and prosecuting those who threaten the public servants who administer our elections, and we will continue to do so in the weeks ahead. For our democracy to function, Americans who serve the public must be able to do their jobs without fearing for their lives.”
“Threats to election workers are threats to our democratic process,” said Deputy Attorney General Lisa Monaco. “No one should face violence or threats of violence simply for doing their job. The actions announced today make clear that we will not tolerate those who use or threaten violence in an effort to undermine our democratic institutions. To carry out their essential work, election officials must be free from improper influence, physical threats, and others forms of intimidation.”
“Our elections are made by possible by the hard work and patriotism of election workers in communities across the country who are also our neighbors, relatives and friends, and they deserve to do this important work without being subjected to threats,” said FBI Director Christopher Wray. “The fact that election workers need to be worried about their security is incomprehensible and unacceptable. While these four cases are examples of the kinds of threats election workers are unfortunately facing, these cases also represent the FBI’s dedication in holding accountable those who undermine our democracy with this conduct. The FBI and our partners on the ETTF will work tirelessly to charge and arrest those callous enough to make these threats and make sure they are held accountable. Free, fair, and safe elections are critical to our country and our democratic ideals.”
“These defendants made serious threats of violence against members of the election community. Threats like these strike at the very heart of our democracy,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases announced today underscore the Criminal Division’s commitment to defending our democracy, safeguarding our elections, and protecting all election workers. Through the ETTF, the Department will vigorously investigate and prosecute all criminal threats against members of the election community.”
The four cases were all brought by the ETTF. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.
Under the leadership of the Attorney General and the Deputy Attorney General, the task force is led by the Criminal Division’s Public Integrity Section (PIN) and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
United States v. Brockbank (District of Colorado)
According to court documents, Brockbank admitted to using three social media accounts to post messages threatening Colorado and Arizona election officials between September 2021 and July 2024.
On Sept. 22, 2021, Brockbank posted the following message on social media:
“[Election Official-1] . . . needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”
As part of his plea, Brockbank also admitted to posting a message on Aug. 4, 2022 referring to election officials in Arizona and Colorado, stating: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”
In addition, Brockbank admitted to posting a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”
Brockbank further admitted to threatening federal law enforcement on July 13, 2024, posting: ““I believe every single FBI agent deserves to go explain themselves to our creator right away!!!! I am more than willing to send any/All of you there.”
Finally, Brockbank admitted to illegally possessing multiple firearms and ammunition.
“The security and sanctity of the American election system is core to the foundation of our Democracy,” said Acting United States Attorney Matt Kirsch for the District of Colorado. “We will prosecute people who threaten elections, election officials, or election workers to the fullest extent of the law.”
Brockbank pleaded guilty today to interstate transmission of a threat. He is scheduled to be sentenced on Feb. 3, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Denver Field Office is investigating the case.
Acting Deputy Director Jonathan E. Jacobson of PIN’s Election Crimes Branch and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.
United States v. Ogstad (District of Arizona)
According to court documents, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad sent multiple threatening direct messages to a social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated: (1) “You did it! Now you are f*****.. Dead. You will all be executed for your crimes”; (2) F*** you! You are caught! They have it all. You f****** are dead”; (3) “You are lying, cheating m****** f******* . . . you better not come in my church, my business or send your kids to my school. You are f****** stupid if you think your lives are safe”; and (4) “You f****** are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking stupid. Everyone knows you are lots, cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang f******!” ” In the course of his messages to the recipient, Ogstad transmitted an image of the character “Woody,” from the Toy Story film franchise, lying face down with an unidentified projectile in its back.
“In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said U.S. Attorney Gary Restaino for the District of Arizona. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”
Ogstad was sentenced on Monday to 30 months in prison, followed by three years of supervised release and a $1,000 fine, after pleading guilty on July 25 to one count of interstate transmission of a threat.
The FBI Phoenix Field Office investigated the case, with substantial assistance from the FBI Birmingham Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona prosecuted the case.
United States v. Kantwill (Middle District of Florida)
According to court documents, from September 2019 to July 2020, Kantwill, a dentist, sent over 100 threats to various public figures via Facebook and Instagram messages, email, and text. As charged in the superseding information filed on Monday, those threats included a threat sent via email to an author, a threat sent via text to a religious leader, and a threat sent via Instagram to a television personality. From April 2022 to April 2024, Kantwill also sent at least seven additional threats to four public figures via Facebook, including a threat to an election official in another state on Feb. 9, when Kantwill wrote: “You are a degenerate c***. and you are now the target of our own investigation. Take note because liberal t***s like you get raped in alleys, by really big black guys that serve our cause. So, you t*** are going to get raped by at least 5 n*****s, and do nothing. You are the number 1 target, you degenerate t***.”
“If you threaten someone with violence, we will take you at your word,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Law enforcement officers and members of my office will work together to hold accountable and federally prosecute individuals who threaten to injure or kill others.”
Kantwill is charged with four counts of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
Trial Attorney Aaron L. Jennen of PIN and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado.
An information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Pollard (Western District of Pennsylvania)
According to the indictment, on Sept. 6, Pollard sent threatening text messages to Victim 1, a resident of the Western District of Pennsylvania. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1: (1) “I will KILL YOU IF YOU DON’T ANSWER ME!”; (2) “Your days are numbered, B****!”; and (3) “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”
“Threats of violence have no place in our society,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This is no less true when those threats of violence are directed at individuals associated with our electoral process — in this case, someone seeking to organize poll watchers. This conduct will not be tolerated in our district, and we will continue to work with our partners at the FBI to prosecute these offenses with the full weight of the law.”
Pollard was arrested on Monday and appeared in federal court in Philadelphia. He is charged with one count of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Pittsburgh Field Office is investigating the case.
Trial Attorney Jacob R. Steiner of PIN and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
*****
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Denver Man Convicted of Being A Felon in Possession of Ammunition by Federal JuryRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Tyrell Braxton, 25, of Denver, was found guilty by a federal grand jury of being a felon in possession of ammunition.
According to the facts established at trial, in the early morning hours on August 19, 2023, a large group of people gathered on the southwest corner of 28th and Welton in Denver. Shortly before 4 am, multiple gunshots were heard, and Denver Police officers were dispatched to a shooting. Surveillance video from a nearby home showed Braxton repeatedly displaying a firearm for hours prior to the shooting. The video also showed Braxton getting into a man’s face before firing six shots at the man and the people standing near him. This man was shot and killed. Two women were shot and injured. After Braxton started shooting, other individuals on scene also began to fire, and a second man was shot and killed. Ultimately, law enforcement recovered 71 spent shell casings that were identified as being fired from eight different firearms. Braxton fled the scene with his firearm and was a fugitive before being captured. Braxton was on federal supervised release at the time for a prior unlawful possession of a firearm and had been released from prison in April 2023.
“Violent criminals have no place on our streets,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office works hard to hold repeat offenders accountable for their actions, and I am grateful for the dedicated support of our local law enforcement partners.”
Sentencing will be held on January 29, 2025.
United States District Court Judge R. Brooke Jackson presided over the trial. The Denver Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives handled the investigation. Assistant United States Attorney Celeste Rangel and Special Assistant United States Attorney Leah Perczak handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 24-cr-00029-RBJ-1
Cortez Man Pleads Guilty to Making Threats Against Election OfficialRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Teak Ty Brockbank, 45, of Cortez, pleaded guilty today to one count of transmitting interstate threats.
According to the plea agreement, Brockbank made a series of online threats toward elections officials in Colorado and Arizona, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024. On September 22, 2021, for example, Brockbank posted on a social media account: “I live in Communist Colorado and this Crazed liberal [referring to Election Official-1] and many others in Communist Colorado needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”
In the plea agreement, Brockbank also admitted that, during that time, he used that account, as well as another social media account to post messages threatening Colorado and Arizona election officials. Brockbank admitted to other threats as well. On August 4, 2022, for example, Brockbank posted a message referring to separate election officials in Arizona and Colorado and then stated: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”
Brockbank also posted a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”
Finally, Brockbank allegedly threatened federal law enforcement on July 20, 2022, posting: “ATF CIA FBI show up to my house I am shooting them peace’s of shit first No Warning!! Then I will call the sheriff!!! With everything that these piece of shit agencies have done I am completely justified to just start dropping them as soon as they step on my property! justified.”
United States District Judge S. Kato Crews presided over the change of plea hearing. The FBI Denver Field Office investigated the case. Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Cyrus Y. Chung for the District of Colorado handled the prosecution.
Sentencing will be held on February 3, 2025.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Case Number: 24-cr-00291-SKC
Justice Department Sues Rocket Mortgage, Appraisal Management Company and Appraiser for Race Discrimination in Mortgage Refinance ApplicationRead the Press Release
DENVER – The Justice Department announced today that it has filed a lawsuit alleging that Rocket Mortgage LLC; Solidifi US Inc.; Maverick Appraisal Group Inc.; and Maksym Mykhailyna discriminated against a Black homeowner by undervaluing her home based on her race in an appraisal required as part of a home mortgage refinance application. The United States also alleges that Rocket Mortgage retaliated against the homeowner and interfered with her rights by cancelling her mortgage refinance application when she reported this discrimination.
“This lawsuit is part of our ongoing efforts to bring an end to appraisal bias which prevent Black communities and other consumers of color from accessing credit and benefitting from homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Appraisal bias exacerbates the racial wealth gap, and runs contrary to the principles of fairness, transparency and equity that we need in our housing market today. The Justice Department will continue to hold appraisers, lenders and others who discriminate against loan applicants accountable for their actions. No one should have to suffer the indignity and financial harm associated with appraisal bias.”
“The complaint alleges racially discriminatory practices by a lender and an appraiser that harmed a homeowner. These discriminatory practices have gone on for too long in Denver,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “The U.S. Attorney’s Office is committed to addressing persistent inequities in housing through vigorous enforcement of federal laws prohibiting discrimination in housing and lending.”
The Justice Department’s complaint alleges that a homeowner applied for a mortgage refinance loan from Rocket Mortgage in January 2021, and Rocket Mortgage contracted with an appraisal management company, Solidifi US Inc., to complete the required home appraisal. Solidifi retained Mykhailyna and his company, Maverick Appraisal Group, to appraise the home, which is located in a neighborhood in Denver that is predominantly white. The complaint alleges that Mykhailyna used sales from properties in further-away neighborhoods with larger Black populations instead of closer neighborhoods that were predominantly white. In fact, the complaint alleges Mykhailyna failed to consider data from sales of homes less than a mile from the complainant’s property in an adjoining neighborhood, even though a few months earlier he had used sales of homes in that same neighborhood to support an appraisal of a home with a white owner in the complainant’s neighborhood. The complaint alleges that these and other errors demonstrate Mykhailyna undervalued the property because of race and color.
Mykhailyna appraised the property to be over $200,000 lower than an appraisal on the same property that had been completed less than a year before, a more than 25% decrease at a time of rising home values in the Denver.
As alleged in the complaint, Mykhailyna sent his appraisal to Solidifi, which reviewed it and then forwarded it to Rocket Mortgage and the homeowner. When the homeowner received the appraisal, she contacted Rocket Mortgage and explained why she believed it was discriminatory. In response, Rocket Mortgage cancelled her refinance application. She filed a complaint with the Department of Housing and Urban Development (HUD), which later conducted an investigation, determined that there was reasonable cause to conclude the defendants had violated the Fair Housing Act, and referred the matter to the Justice Department.
“HUD applauds today’s action and remains committed to working with DOJ to ensure appraisal companies and mortgage providers are held accountable when they violate our nation’s fair housing laws.” said Principal Deputy Assistant Secretary Diane M. Shelley of HUD’s Office of Fair Housing and Equal Opportunity. “It has been over 56 years since the passage of the Fair Housing Act, and it is unconscionable that Black and Brown families still face discrimination during housing transactions.”
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Along with several federal agencies, the Justice Department issued a letter to The Appraisal Foundation underscoring the importance of incorporating federal nondiscrimination standards into appraisal standards. More information about the Interagency Task Force on Property Appraisal and Valuation Equity is available at pave.hud.gov.
Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing [email protected] or submitting a report online. Individuals also may report housing discrimination to HUD by calling 1-800-669-9777 or filing a complaint online.
rocket_complaint.pdf fourth_exposure_joint_letter.pdf
Denver Man Sentenced in Connection with Five Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Samuel Richard Ruthstrom, age 42, has been sentenced to 160 months in prison after pleading guilty to five counts of bank robbery.
According to the plea agreement, Ruthstrom robbed four banks and attempted to rob a fifth in Denver. In several of the robberies, Ruthstrom used notes threatening tellers with physical harm if they failed to comply with his demands. Ruthstrom, who was on state parole and living at an inpatient facility at the time of the robberies, stole a box truck to commit three of the crimes.
“Repeat offenders are a menace to our communities, and I strongly support sentences like this one that keep these criminals off our streets,” said Acting United States Attorney for the District of Colorado Matt Kirsch.
“Robbing banks is not a career – it’s a series of crimes that will net you serious federal prison time. That is what this defendant learned once the FBI Rocky Mountain Safe Streets Task Force tracked him down,” said FBI Denver Special Agent in Charge Mark Michalek. "The FBI will continue to work with partners like the Denver Police Department and Metro Denver CrimeStoppers to identify and apprehend violent criminals.”
“The Denver Police Department is proud to see justice served in the case of this repeat offender,” said Denver Police Chief Ron Thomas. “Partnerships between federal and local agencies are critical to stopping bank robberies and other violent crimes.”
The defendant was sentenced by Judge Nina Y. Wang. The case was investigated by the FBI Rocky Mountain Safe Streets Task Force, and the Denver Police Department. Assistant United States Attorney Brian Dunn handled the prosecution.
Case Number: 1:24-mj-00025-KAS
Denver Woman Sentenced to One Year and One Day for Stealing Nearly $500k from Her EmployerRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Tiffany Vo, age 37, of Denver, was sentenced to 12 months and one day in prison, three years of supervised release, and restitution in the amount of $483,393.58 after pleading guilty to one count of wire fraud for a scheme to defraud her employer, Amazon.
According to the plea agreement, between approximately the summer of 2020 through at least June of 2022, Vo worked for Amazon in a role in which she administered virtual employee programs during the COVID-19 Pandemic. Vo devised and participated in a scheme to fabricate invoices and expense reports to claim reimbursement for approximately $483,393.58 in purported corporate event expenditures that did not occur. Vo spent the stolen funds on a variety of personal expenses including designer handbags and sunglasses, payments toward her condo, two vehicles, exercise equipment, and thousands of dollars of beauty products.
“White collar crimes like this one cause financial impact to not just corporate entities, but to consumers and taxpayers,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “This office will continue to prosecute criminals who exploit access for personal gain.”
“Instead of working for her employer, this defendant was furtively working against her employer. Over the course of her deception, she stole nearly $500,000 and used the money to live exorbitantly beyond her means,” said FBI Denver Special Agent in Charge Mark Michalek. “Members of the FBI Denver complex financial crimes squad were able to unravel the defendant’s embezzlement scheme, and now she faces the justice she earned.”
Judge S. Kato Crews presided over the sentencing. The FBI Denver Field Office conducted the investigation. Assistant United States Attorney Rebecca Weber handled the prosecution.
Case Number: 1:24-cr-00102-SKC
Brighton Man Sentenced to 90 Months in Connection with Gun Incident That Injured Bystander at Gaylord HotelRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Sonny Perez, age 33, of Brighton, was sentenced to 90 months in prison, and four years of supervised release after pleading guilty to one count of possession with intent to distribute 40 grams and more of a mixture and substance containing fentanyl and one count of possession of ammunition by a convicted felon.
According to the plea agreement, on May 29, 2023, Perez was at the Gaylord Hotel in Aurora to sell methamphetamine. According to security footage, when Perez exited the hotel, he had his right hand in his pants pocket. Individuals outside the hotel reported hearing a loud sound and seeing a bystander with blood dripping down his leg. That person received medical treatment for a gunshot wound to the leg. Investigators traced Perez to his home, where they found narcotics, evidence of drug distribution, and ammunition. Perez has a prior felony conviction and is prohibited from possessing ammunition.
“Felons should be on notice—they will face long sentences if they continue to arm themselves,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I thank our partners for joining us in the fight to keep guns and ammunition out of the hands of felons and drugs off our streets.”
"Violent, illegally-armed, drug-trafficking felons present a persistent and serious danger to innocent citizens everywhere,” said ATF Special Agent in Charge Brent Beavers. "ATF, in close partnership with the Aurora Police Department and the RAVEN Task Force, relentlessly pursue these violent criminals every day with the full force of local, state, and federal law enforcement resources.”
"I am grateful for the swift actions of our officers and detectives that led to the arrest of the suspect just two days after the initial shooting," said Aurora Police Investigations Divisions Chief Mark Hildebrand. “This outcome reflects our agency’s commitment to public safety and our determination to hold those who endanger our community accountable."
"This case exemplifies the commitment of the RAVEN Task Force, it's member agencies, and the U.S. Attorney's Office to hold those who commit gun violence accountable. RAVEN is at work every day to protect our communities,” said Lieutenant DJ Tisdale, RAVEN Task Force Commander.
Judge Regina M. Rodriguez presided over the sentencing. The ATF, the RAVEN Task Force, and the Aurora Police Department handled the investigation. Assistant United States Attorneys Celeste Rangel and Brian Dunn handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 1:23-cr-00334-RMR-1
Acting U.S. Attorney Alerts Public to Charity Scams in Wake of Hurricanes Helene and MiltonRead the Press Release
DENVER – Acting United States Attorney for the District of Colorado Matt Kirsch issued a public safety alert advising the public to be vigilant to hurricane relief fraud in the wake of Hurricanes Helene and Milton.
“These serious weather events are tragic, and I appreciate the public’s interest in helping others during these difficult times,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I do, however, want people to be vigilant when donating and to be aware that criminals often try to exploit tragedy for personal gain.”
On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. On October 9, Hurricane Milton made landfall in Florida. In the wake of previous national disasters, fraudsters have targeted victims of the storm along with citizens across the country who want to do what they can to help people affected by the storm. These criminals send fraudulent communications through email or social media and create deceptive websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before donating to benefit victims of Hurricane Helene, people should adhere to certain guidelines, including:
• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions, as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., emails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of emails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
Durango Teacher Charged with Coercion and Enticement of A Minor, Possession of Child PornographyRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Benjamin Vincent Smith, 28, of Durango, Colorado, was charged by complaint with one count of attempted coercion and enticement of a minor, and one count of possession of child pornography.
According to the complaint, Smith was a former music teacher at Escalante Middle School in Durango. In July 2024, Smith allegedly posed as a 16-year-old female on the social media service SnapChat under username “MTNCHICK69.” Via SnapChat, Smith contacted Minor #1 under the ruse that Smith was a 16-year-old female, and enticed Minor #1 to meet him in a parking lot for a sexual encounter. After meeting Smith, Minor #1 reported the incident to law enforcement, who were able to identify Smith as the suspect. During the investigation, law enforcement seized Smith’s phone and searched it pursuant to a warrant. Smith allegedly possessed numerous photographs of minor children engaged in sexually explicit conduct, apparently belonging to over two dozen school-age minors living in the Durango area.
The charges contained in the complaint are allegations and the defendant is presumed innocent of the charges unless and until proven guilty.
The United States Attorney’s Office encourages anyone with information related to this investigation or who had any contact with “MTNCHCK69” to contact the Homeland Security Investigation tip line at: 1-877-4-HSI-TIP.
The case is being investigated by HSI with assistance from the Federal Bureau of Investigation and the Durango Police Department. The case is being prosecuted by Assistant United States Attorney Jeffrey K. Graves.
Case Number: 24-mj-00185-JMC
U.S. Department of Justice Awards University of Colorado Nearly $2 Million Grant to Combat Hate CrimesRead the Press Release
DENVER – Acting United States Attorney for the District of Colorado Matt Kirsch is pleased to announce that the United States Department of Justice has awarded the University of Colorado the Matthew Shepard and James Byrd, Jr. Hate Crimes Program Grant.
The grant, totaling $1,999,939, will go to support the work of The University of Colorado Boulder’s Police Department (CUPD) and Prevention Science Program to build and deliver a comprehensive approach to hate crimes prevention, intervention, and investigation for CU locations including CU Boulder, CU Colorado Springs, and CU Denver. Funds will be used to educate audiences within the CU System and train campus officials on coordinated strategies for preventing, investigating, and addressing hate-based incidents and hate crimes in higher education. Grant funding will reach approximately 60,000 students, 23,000 faculty and staff, and 60 law enforcement officers while serving as a model for other colleges and universities around the country.
“The United States Attorney’s Office for the District of Colorado has a long-standing commitment both to investigating and prosecuting hate crimes and to engaging with the community on this topic,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Public education on the tools available to prevent and address hate crimes is fundamental to these efforts, and we are proud to work with University of Colorado.”
“The University of Colorado and the CU Boulder Police Department is honored to receive the Matthew Shepard and Edward Byrne Hate Crimes Grant, which will help us continue the important work of building a comprehensive approach to preventing hate crimes across the CU System,” said Doreen Jokerst, Assistant Vice Chancellor for Public Safety and Chief of Police of the CU Boulder Police Department at the University of Colorado Boulder. “CUPD will continue to work collaboratively with violence prevention researchers and other experts to create an effective, broad-reaching campaign to combat targeted violence.”
This grant is part of the Office of Justice Program (OJP) and its wide-ranging efforts to improve community safety, serve victims of crime, support America’s youth, advance science, and promote equal justice. OJP is the largest grantmaking component of the Department of Justice and houses its criminal and juvenile justice related science and statistical units.
The Department of Justice (DOJ) offers funding opportunities to support law enforcement and public safety activities in state, local, and tribal jurisdictions; to assist victims of crime; to provide training and technical assistance; to conduct research; and to implement programs that improve the criminal, civil, and juvenile justice systems. DOJ grant-making components regularly engage with United States Attorneys’ offices (USAOs) to promote outreach and communication about DOJ-funded grant programs, training, and technical assistance. Such communication helps the Department increase public awareness, access, and utilization of these resources.
Precision Toxicology Agrees to Pay $27M to Resolve Allegations of Unnecessary Drug Testing and Illegal Remuneration to PhysiciansRead the Press Release
WASHINGTON – Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.
“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”
In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from Jan. 1, 2013, through Dec. 31, 2022. In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs. This practice violated federal health care program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.
The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians — expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing — violated the Anti-Kickback Statute. The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.
“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients. Taxpayers deserve nothing less, “ said U.S. Attorney Erek L. Barron for the District of Maryland.
“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney Matthew Kirsch for the District of Colorado.
In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Special Agent in Charge Maureen R. Dixon of HHS-OIG. “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”
Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the impacted states, including Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado, for the states’ share of Medicaid.
The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology LLC, ELH-18-1510 (DMD) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics LLC et al., ELH-21-3231 (DMD). The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.
Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part. Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Civil Division’s Commercial Litigation Branch, Fraud Section, along with the U.S. Attorneys’ Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.
Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement Agreement
Precision Toxicology Agrees to Pay $27M to Resolve Allegations of Unnecessary Drug Testing and Illegal Remuneration to PhysiciansRead the Press Release
Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision. Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.
“The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient’s medical needs and not just to increase laboratory profits,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds.”
In the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from Jan. 1, 2013, through Dec. 31, 2022. In particular, the United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs. This practice violated federal health care program rules limiting payment to services that are reasonable and medically necessary for the treatment and diagnosis of an individual patient’s illness or injury.
The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians — expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing — violated the Anti-Kickback Statute. The Anti-Kickback Statute generally prohibits laboratories from giving physicians anything of value in exchange for referrals of tests.
“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients. Taxpayers deserve nothing less, “ said U.S. Attorney Erek L. Barron for the District of Maryland.
“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney Matthew Kirsch for the District of Colorado.
In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).
“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Special Agent in Charge Maureen R. Dixon of HHS-OIG. “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”
Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the impacted states, including Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado, for the states’ share of Medicaid.
The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. Two of the cases are captioned United States and Maryland ex rel. Hudak v. Precision Toxicology LLC, ELH-18-1510 (DMD) and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics LLC et al., ELH-21-3231 (DMD). The third qui tam case against Precision, brought in the District of Colorado, remains partially sealed.
Under the Act, the United States can elect to intervene in an action filed by a whistleblower, as it did here in part. Bryce Hudak will receive $2,743,002 from the federal False Claims Act recovery.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The resolution obtained in this matter was the result of a coordinated effort between federal and state partners lead by the Civil Division’s Commercial Litigation Branch, Fraud Section, along with the U.S. Attorneys’ Offices for the Districts of Maryland, Colorado and Connecticut; the Department of Health and Human Services Office of Inspector General and Office of the General Counsel; the Office of Personnel Management Office of Inspector General; the Department of Veteran’s Affairs Office of Inspector General; the Defense Criminal Investigative Service; the Maryland Office of Attorney General; and the National Association of Medicaid Fraud Control Units.
Attorneys Vanessa Reed and Vince Vaccarella of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Roann Nichols for the District of Maryland, David Moskowitz for the District of Colorado and Rick Molot for the District of Connecticut handled the matter, with assistance from Assistant Attorneys General Raja Mishra of the State of Maryland, and Ian Garland of the State of Florida.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement