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22 February 2024
Orange County Man Sentenced to More Than 15 Years in Federal Prison for Fentanyl DistributionRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Yadier Torres-Rivera (35, Orlando) to 15 years and 8 months in federal prison for distributing 40 grams or more of a mixture and substance containing a detectable amount of fentanyl. Torres-Rivera entered a guilty plea on November 12, 2023.
According to court documents, from August through December 2022, Torres-Rivera distributed fentanyl four times to a confidential source working for the Volusia Bureau of Investigation (VBI) before the VBI confidential source introduced a Drug Enforcement Administration (DEA) undercover agent to Torres-Rivera. Between December 2022 and February 2023, the DEA undercover agent conducted four additional purchases of fentanyl from Torres-Rivera in the following amounts: 30.2 grams, 92.5 grams, 100.9 grams, and 104 grams. In total, Torres-Rivera was responsible for distributing nearly 500 grams of fentanyl to the VBI confidential source and DEA undercover agent.
Additionally, at the time of his arrest in September 2023, Torres-Rivera’s had on his person a loaded Glock 27 handgun with an attached auto-sear, an extended magazine loaded in the magazine well, and a round of ammunition in the firing chamber. He also had in his possession a regular-sized Glock magazine containing rounds of ammunition. As part of the plea agreement, Torres-Rivera has agreed to abandon all rights to the handgun and associated magazines and ammunition that were seized from him.
This case was investigated by the Drug Enforcement Administration, the Volusia Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Megan Testerman.
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.
Operation Smoke and Mirrors Update: Charleston Woman Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Alexandria Jasmine Estep, 22, of Charleston, was sentenced today to four years and two months in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. Estep admitted to her role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, Estep was responsible for the distribution of nearly 20 pounds of methamphetamine while she participated in the drug trafficking conspiracy between October 2022 and January 2023. Initially, Estep regularly obtained multiple pounds of methamphetamine from a Charleston supplier. She would then re-distribute the methamphetamine to others in the Charleston area.
In November 2022, Estep stopped dealing with the Charleston supplier and arranged to buy multiple pounds of methamphetamine from a co-conspirator. On November 29, 2022, the co-conspirator delivered the methamphetamine by vehicle to Estep’s Charleston residence. Estep conducted the transaction with an additional co-conspirator who was in the vehicle during the delivery.
Estep is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Estep is among 27 defendants who have pleaded guilty. Indictments against the remaining defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-33.
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Oklahoma City Man Sentenced to Serve 36 Months in Prison for Lying about Prior Felony Convictions during Attempted Firearm PurchaseRead the Press Release
OKLAHOMA CITY – Earlier this week, OLAJUWON MARKEEZES HOPGOOD, 29, of Oklahoma City, was sentenced to serve 36 months in federal prison for making a false statement during the attempted purchase of a firearm, announced U.S. Attorney Robert J. Troester.
On April 3, 2023, Hopgood was charged by Information with making a false statement during the attempted purchase of a firearm. According to an affidavit in a previously filed criminal complaint, on December 28, 2022, the Bethany Police Department received a call from the owner of a local sporting goods store regarding suspicious individuals at his business. When Bethany police officers arrived, Hopgood was in the process of filling out paperwork for the National Instant Criminal Background Check System (ATF Form 4473) in order to purchase a firearm, but he fled the business when he noticed the officers. As presented in open court, an investigation into Hopgood and his associates – including several juveniles – indicates that the group was preparing to rob the sporting goods store.
The complaint further alleges that when Hopgood left the business, he left behind the completed ATF Form 4473, on which he indicated he had never been convicted of a felony or a crime for which he could be imprisoned for more than one year.
Public record reflects that Hopgood has sustained multiple felony convictions, including burglaries in the first and second degree in Oklahoma County District Court case number CF-2011-4195, as well as pointing a firearm at another person and possession of a firearm after a former conviction of a felony in Oklahoma County District Court case number CF-2015-2826.
On May 19, 2023, Hopgood pleaded guilty and admitted that he made a false statement on the form despite his prior felony convictions.
At the sentencing hearing on Tuesday of this week, U.S. District Judge Charles Goodwin sentenced Hopgood to serve 36 months in federal prison, followed by an additional three years of supervised release. In announcing the sentence, the court noted the nature and circumstances of the offense and Hopgood’s violent background.
Federal law prohibits knowingly making any false statement in connection with purchasing, or attempting to purchase, a firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) requires prospective firearm buyers to complete ATF Form 4473. This Form requires buyers to answer several questions, including those about the buyer’s competency, criminal history, drug use, immigration status, and history with domestic violence. Applicants who knowingly make false statements may also face criminal prosecution for a felony and up to 10 years in federal prison. Federal Firearms Licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to may also face criminal prosecution. Before attempting to purchase a firearm, prospective buyers who have eligibility concerns should visit www.atf.gov or contact their local ATF field office.
This case is the result of an investigation by the ATF and the Bethany Police Department. Assistant U.S. Attorney Danielle M. Connolly prosecuted the case.
This case is also part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
North Carolina Man Found Guilty of Felony and Misdemeanor Charges Related to Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A North Carolina man was found guilty in the District of Columbia on Wednesday, Feb. 21, 2024, of felony and misdemeanor charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Christopher Raphael Spencer, 43, of Pilot Mountain, North Carolina, was convicted of obstruction of an official proceeding, a felony, and misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building, and parading, demonstrating, or picketing in a Capitol building.
Spencer was convicted following a stipulated bench trial in front of U.S. District Court Judge Colleen Kollar-Kotelly. Spencer will be sentenced at a later date.
According to the government’s stipulated evidence, Spencer and his wife, Virginia Marie “Jenny” Spencer, traveled from Pilot Mountain, North Carolina, to Washington, D.C., to see the former President on Jan. 6, 2021. At some time during the day, the couple walked to the U.S. Capitol building and into the restricted permitter of the Capitol grounds, bypassing bike rack barricades.
The couple made their way into a crowd of rioters gathered near the Inauguration stage on the west side of the Capitol building. The two watched as rioters attacked police and climbed the walls of the Capitol and the Inauguration stage scaffolding. The couple then ascended the stairs underneath the scaffolding to the Northwest Terrace near the Senate Wing of the Capitol.
At approximately 2:19 p.m., the Spencers entered the Capitol building via the Senate Wing Door. The couple then made their way into the Crypt and observed as rioters clashed with police. During this time, Christopher filmed a Facebook Live Video and urged rioters to “Don’t stop!” in relation to an ensuing struggle with police. The two then made their way to the second floor and went briefly into the hallway offices of former Speaker of the House, Nancy Pelosi. Christopher Spencer again recorded a Facebook live video in which he stated, “Where’s Nancy’s office?”
The couple then made their way to the House Chamber and Christopher recorded a video, in which he stated, “Kick that m— open!” in reference to the House Chamber Door. In another video, Christopher yelled, “Smile, m—, smile b—, f— traitor!” at United States Capitol Police officers as they were involved in an altercation with a rioter.
The couple spent approximately 30 minutes inside the Capitol. The FBI arrested the couple on Feb. 8, 2021, in North Carolina.
Virginia Marie “Jenny” Spencer was previously sentenced to 90 days incarceration for her role in the matter.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of North Carolina.
The case was investigated by the FBI’s Charlotte and Washington Field Offices. The U.S. Capitol Police and the Metropolitan Police Department provided valuable assistance.
In the 37 months since Jan. 6, 2021, more than 1,313 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 469 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Nigerian Man Sentenced to Prison for Covid-19 Unemployment Insurance Benefits ScamRead the Press Release
KNOXVILLE, Tenn. – On February 21, 2024, Valentine O. Odije, 35 years old, a Nigerian citizen currently residing in Georgia, was sentenced to 21 months in prison by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville.
Odije pleaded guilty to conspiracy to use an unauthorized access device related to his and his coconspirators’ unlawful use of debit cards funded with Covid-19 unemployment insurance (“UI”) benefits in violation of 18 U.S.C. § 1029(b)(2). Following his incarceration, he will be on supervised release for a period of three years. In addition, he was ordered to pay restitution in the amount of $661,082.19 and to forfeit $86,651.68 in cash.
As set forth in the written plea agreement filed with the court, Odije was recruited into an ongoing scheme by individuals who were filing fraudulent UI benefits claims during the pandemic. The fraudulent claims resulted in UI benefits being loaded onto debit cards that Odije possessed. Odije’s role in the scheme was to use those debit cards to withdraw cash and purchase money orders. Odije knew the debit cards were funded with unlawfully obtained UI benefits. Odije recruited others to help him access the UI benefits on the cards, selecting the cards for them to use and instructing them how to withdraw cash and purchase money orders.
On July 17, 2020, Odije and his coconspirators used four debit cards at a retail store in the Eastern District of Tennessee to collectively withdraw $23,527.99 in UI benefits. When Odije and his coconspirators were arrested that day, Odije possessed 315 debit cards, 204 of which were funded with a total of $661,082.19 in unlawfully obtained UI benefits.
Two of Odije’s coconspirators, Dianne M. Coffie and Ayeesha Shah, previously pleaded guilty in the Eastern District of Tennessee to conducting unlawful transactions with an access device. Coffie was sentenced to three years’ probation and ordered to pay $90,000 in restitution. Shah was sentenced to two years’ probation and ordered to pay $40,000 in restitution.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Resident Agent in Charge, Jason Brown, of the United States Secret Service; and Special Agent in Charge, Matthew Broadhurst, of the United States Department of Labor, Office of Inspector General, made the announcement.
This case is the result of an investigation conducted by the United States Secret Service and the U.S. Department of Labor, Office of Inspector General.
William A. Roach, Jr., an Assistant United States Attorney who serves as the Eastern District of Tennessee’s Coronavirus Fraud Coordinator, prosecuted the case.
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.
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.
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New Orleans Man Pleads Guilty to Being a Felon in Possession of AmmunitionRead the Press Release
NEW ORLEANS, LOUISIANA –TEDDY NATHAN, age 25, a resident of New Orleans, pleaded guilty on February 20, 2024, before United States District Judge Susie Morgan to violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, NATHAN, armed with an AR-15 rifle loaded with over 25 rounds, entered a daycare in Central City where several small children were sleeping. The staff got him out of the building and called the police. NATHAN fled as the police approached but was quickly apprehended. The police found the AR-15 on the front seat of a vehicle located where NATHAN stood before he ran. Records checks revealed that NATHAN’s criminal history includes felony convictions for aggravated assault with a firearm, purse snatching, unauthorized entry of an inhabited dwelling, robbery, conspiracy to commit armed robbery, being a felon in possession of a firearm, and possession of a stolen firearm.
Judge Morgan set sentencing for June 4, 2024. If the Court determines that NATHAN is an Armed Career Offender, he will face a mandatory minimum of 15 years up to life imprisonment, up to a $250,000 fine, and up to 5 years of supervised release. If he is not an Armed Career Offender, he will face up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. Under either scenario, NATHAN must pay a mandatory special assessment fee of $100.
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.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the Louisiana State Police. It is being prosecuted by Senior Litigation Counsel, David Haller.
Nevada Woman Gets 42 Months in Federal Prison for Iowa Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on February 21, 2024, in federal court in Sioux City, to 42 months’ imprisonment.
Sabrina Bradley, age 50, from Pahrump, Nevada, pled guilty on September 13, 2023, to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that Bradley was involved in a conspiracy that distributed at least 1.5 kilograms of methamphetamine from November 2021 through December 2021. Bradley admitted her involvement in assisting other co-conspirators to transport at least four pounds of methamphetamine from sources in Nevada to Iowa for further distribution, including in the Council Bluffs and Cherokee, Iowa areas.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Bradley was sentenced to 42 months’ imprisonment and must serve a three-year term of supervised release following the imprisonment. There is no parole in the federal system. Bradley remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Iowa Division of Narcotics Enforcement, United States Postal Inspectors, Homeland Security Investigations, Iowa DCI Laboratory, and Cherokee Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4002. Follow us on Twitter @USAO_NDIA.
Nelson County Man Sentenced to over 9 Years in Federal Prison for Bank Fraud and Money LaunderingRead the Press Release
Louisville, KY – A Nelson County, Kentucky, man was sentenced yesterday to 9 years and 2 months in prison for charges related to bank fraud and money laundering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Karen Wingerd of the Internal Revenue Service, Criminal Investigation, Cincinnati Field Office, Special Agent in Charge Vince Zehme of the Federal Deposit Insurance Corporation Office of Inspector General, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Sheriff John Aubrey of the Jefferson County Sheriff’s Office made the announcement.
According to court documents, Wavy Curtis Shain, 42, was sentenced yesterday to 9 years and 2 months in prison, followed by five years of supervised release, and ordered to pay $4,455,755 in restitution, for one count of bank fraud and one count of money laundering.
There is no parole in the federal system.
From July 2019 to August 11, 2020, Shain engaged in a scheme to defraud two federally insured financial institutions by attempting to fraudulently refinance real property without the knowledge and approval of the true property owner, conducted sham real estate sales where the buyer and seller were unaware of the real estate transactions, and purchased real estate in the names of other individuals without their knowledge and permission. Shain also knowingly engaged in a monetary transaction in criminally derived property, specifically the fraudulent loan proceeds, by wiring the funds to a nominee company he controlled.
This case was investigated by the IRS CI, the FDIC OIG, the USPS, the FBI, and the Jefferson County Sheriff’s Office.
Assistant U.S. Attorneys Joshua Judd, Erin Bravo, and Amy Sullivan prosecuted the case.
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Multi-Convicted Felon Sentenced to Four Years in Federal Prison After Shooting Down Law Enforcement DroneRead the Press Release
Ocala, Florida – Senior United States United States District Judge Gregory A. Presnell has sentenced Wendell Doyle Goney (52, Mount Dora) to four years in federal prison for possessing a firearm as a convicted felon. Goney entered a guilty plea on October 5, 2023.
According to the plea agreement, on July 11, 2021, deputies from the Lake County Sheriff’s Office responded to a burglary at a 10-acre business property in Mount Dora. The deputies used a law enforcement drone to assist with the outdoor search, only to have the drone destroyed by gunfire from a neighboring property. When deputies responded to that location, they confronted Goney, who admitted that he had just shot down the drone with a .22 caliber rifle. Goney claimed the drone had been “harassing” him. Goney then admitted to the deputies that he could not lawfully possess a firearm because he was a convicted felon. A record check confirmed multiple prior state felony convictions, which included aggravated assault on a law enforcement officer, resisting arrest with violence, illegal drug possession, burglary, and possession of a firearm by a convicted felon. As a convicted felon, Goney is prohibited from possessing firearms and ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Transportation – Office of Inspector General, and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Mobile Man Sentenced to 27 Months for Illegally Possessing Stolen Firearms Equipped with Machine Gun Conversion DevicesRead the Press Release
MOBILE, AL – A Mobile, Alabama man was sentenced today to 27 months in prison for being unlawfully in possession of firearms.
According to court documents, Charvez Green, 19, was convicted of being in possession of a Glock 45 and a Glock 19X. Each firearm was equipped with an illegal machinegun-conversion device, commonly referred to as a “Glock switch,” and both firearms had been stolen. At the time Green unlawfully possessed the firearms he was on bond for murder in Mobile County.
Firearms experts examined and test fired Green’s illegally modified firearms, which operated as a fully automatic weapons and expelled multiple rounds of ammunition with a single pull of the trigger. Green admitted that he had never registered the machineguns in the National Firearms Registration and Transfer Record, as required by federal law.
Today United States District Judge Callie V. S. Granade sentenced Green to 27 months in the custody of the Bureau of Prisons. The term of imprisonment will be followed by a 3 year term of supervised release. The federal sentence was imposed consecutively to any sentence to be later imposed in the state murder case.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mobile Police Department investigated the case.
Assistant U.S. Attorney Beth Stepan prosecuted the case on behalf of the United States.
Mississippi Delta Grain Elevator Owner Pleads Guilty to FraudRead the Press Release
OXFORD, MS – John R. Coleman, age 47, of Greenwood, Mississippi, appeared today before U.S. District Judge Michael P. Mills in Oxford and pled guilty to wire fraud.
According to court documents, Coleman, an owner and operator of Express Grain, altered the company’s audited financial statements in order to receive a State warehouse license, lied about the amount of debt he owed on grain held at the Express Grain facility, and claimed to farmers that Express Grain was financially healthy when the company was actually on the brink of bankruptcy. Express Grain eventually filed bankruptcy in 2021 causing widespread financial hardship for farmers all over the Mississippi Delta.
Coleman faces a maximum penalty of 30 years in prison. Judge Mills set Coleman’s sentencing hearing for June 13, 2024, at 1:30 p.m. and will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The fraud committed by the defendant in this case has directly and adversely impacted a large number of farmers and it is important that he be held accountable for his actions,” remarked U.S. Attorney Clay Joyner. “I am extremely grateful for the state and federal law enforcement partnership that has made this prosecution possible.”
“This case is an example of the impact that we can make when we work together,” said Mississippi Attorney General Lynn Fitch. “I am grateful to the U.S. Attorney’s Office for securing this federal conviction. My office will continue to fight on behalf of the taxpayers and the hardworking farmers defrauded here until justice is fully served.”
The Federal Bureau of Investigation, Mississippi Attorney General’s Office, United States Department of Agriculture Office of Inspector General, and Internal Revenue Service Criminal Investigations are investigating the case.
Assistant U.S. Attorney Clayton A. Dabbs is prosecuting the case.
Michigan City Man Sentenced to 18 Months in PrisonRead the Press Release
SOUTH BEND – Jonnathan Tyler Lee, 25 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to making a false statement to a licensed firearms dealer during the purchase of a firearm, announced United States Attorney Clifford D. Johnson.
Lee was sentenced to 18 months in prison followed by 2 years of supervised release.
According to documents in the case, from June 2020 to July 2021, Lee purchased at least 19 guns from gun stores throughout the Northern District of Indiana. When making the firearm purchases, Lee provided false information on the ATF form 4473. Several firearms recovered from crime scenes in Chicago were found to have been purchased by Lee. Some of the firearms Lee purchased were also recovered from felons, and at least one was used to shoot at a moving car.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
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.
The U.S. Attorney’s Office for the Northern District of Indiana is pursuing this prosecution as a part of the U.S. Department of Justice’s Chicago Gun Trafficking Strike Force. On July 22, 2021, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. These gun trafficking strike forces are designed to ensure coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C
Miami man arrested in multimillion-dollar bank fraud scheme targeting dozens of victims nationwideRead the Press Release
MIAMI – On Feb. 21, a man was arrested after a federal grand jury returned an indictment charging him with multiple counts of bank fraud and aggravated identity theft.
According to allegations in the indictment and statements made in court, from April 2022 through March 2023, Latron Earl Williams, 24, of Miami, Florida, fraudulently obtained personable identifiable information (PII) of various bank account holders, as well as addresses, debit card numbers, and bank account numbers. Williams used the fraudulently obtained information to pose as the account holders, fraudulently accessed their bank accounts, and caused more than $2 million in wire transfers from the bank accounts of approximately 50 victims nationwide into bank accounts he controlled. Then, Williams arranged for accomplices to withdraw the fraudulently obtained funds to conceal his involvement in the fraud.
If convicted, Williams faces up to 30 years in prison on each count of bank fraud, and a mandatory minimum penalty of two years in prison for aggravated identity theft consecutive to any bank fraud sentence. U.S. District Judge Roy K. Altman will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jason Scalzo of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Electronic Crimes Unit, and Special Agent in Charge Rafael Barros of the United States Secret Service (USSS), Miami Field Office made the announcement.
FDIC-OIG, Electronic Crimes Unit and USSS, Miami Field Office investigated the case. Assistant U.S. Attorney Michael B. Homer is prosecuting it.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20009.
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Mexican man imprisoned for organizing multiple cocaine shipmentsRead the Press Release
McALLEN, Texas – A 36-year-old resident of Tamaulipas, Mexico, has been sentenced following his conviction for trafficking cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Manuel Alejandro Soto-Bazan pleaded guilty Dec. 19, 2022.
Chief U.S. District Judge Randy Crane has now ordered Soto-Bazan to serve 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that detailed how Soto-Bazan organized multiple cocaine shipments to be smuggled into the United States. In handing down the sentence, the court noted that Soto-Bazan played a key role in the trafficking scheme.
At the time of his plea, Soto-Bazan admitted he facilitated multiple cocaine shipments into the United States through the Hidalgo port of entry.
Between April and June 2022, Soto-Bazan coordinated at least four separate shipments of cocaine totaling approximately 20 kilograms. Soto-Bazan would direct others who were smuggling drugs into the United States in vehicles to specific locations. He would then coordinate the transfer of the drugs to other vehicles for further distribution.
The drugs Soto-Bazan was responsible for transporting had an estimated street value of $200,000.
Soto-Bazan admitted he was paid to traffic drugs and assisted in removing drugs from concealed compartments hidden in vehicles after their entry into the United States.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorney Theodore Parran III prosecuted the case.
Medical Doctor Charged for $20.7M Health Care Fraud and Illegal Kickback SchemesRead the Press Release
A federal grand jury in New Jersey returned a superseding indictment yesterday charging a medical doctor with allegedly engaging in a health care fraud and illegal kickback scheme that involved the submission of over $20.7 million in false and fraudulent claims to Medicare for laboratory tests, including cancer genetic tests.
According to court documents, Alexander Baldonado, 68, of Queens, New York, allegedly received cash kickbacks from a laboratory representative and others in exchange for approving orders for laboratory tests billed to Medicare. As part of the scheme, Baldonado also allegedly participated in COVID-19 testing events at which he authorized COVID-19 tests as well as expensive and medically unnecessary cancer genetic tests that patients did not request, that were not used in the patient’s treatment, and for which the patients rarely received the results. Baldonado also allegedly billed Medicare for lengthy office visits that he never provided to these patients.
In addition, Baldonado allegedly engaged in a scheme to defraud Medicare and Medicaid by soliciting and receiving cash kickbacks and bribes from an owner of a durable medical equipment supply company in exchange for ordering orthotic braces that were medically unnecessary and ineligible for reimbursement.
Baldonado is charged with one count of conspiracy to commit health care fraud, six counts of health care fraud, two counts of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of soliciting health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and soliciting health care kickbacks, and a maximum penalty of five years in prison on each count of conspiracy to defraud the United States and pay and receive health care kickbacks. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement.
HHS-OIG and FBI are investigating the case.
Assistant Chief Rebecca Yuan and Trial Attorney Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Superseding IndictmentMaryland Correctional Officer Pleads Guilty to Conspiracy to Obstruct Justice and Destruction of Records Related to Cover-Up of Excessive Force IncidentRead the Press Release
Baltimore, Maryland – David Quillen, 37, of Ocean View, Delaware, a correctional officer at the Eastern Correctional Institution (“ECI”) in Westover, Maryland, pleaded guilty today to conspiring to obstruct justice and to destruction of records, related to covering up evidence that a fellow officer at ECI had unlawfully assaulted an inmate.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office.
According to his guilty plea, on July 12, 2021, while working at ECI, Quillen learned that another officer had used force against an inmate. Upon learning of the incident, Quillen responded to the scene with a video camera and began recording the inmate. While Quillen filmed him, the inmate asserted that he had been assaulted by a correctional officer—Officer Samuel Warren—for no reason. The inmate also cried, and was visibly injured, with blood on his face.
After Quillen stopped filming, he and other officers watched the video Quillen had filmed. While watching the video, a supervisory officer commented that the video did not look good for Warren and indicated that the video should be deleted. Warren agreed, and Quillen and other officers agreed to lie about the deletion. Understanding that the video contained evidence that Warren’s use of force against the inmate had been unlawful, Quillen deleted the video.
Following the deletion, Quillen lied about what happened to the video, including to supervisors at ECI, and to state and federal investigators.
Warren has since admitted that he unlawfully assaulted the inmate and has pleaded guilty to federal offenses related to that assault.
Quillen faces a maximum sentence of five years in federal prison for the conspiracy to obstruct justice and a maximum of 20 years in federal prison for destruction of records. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 22, 2024.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI and the Maryland Department of Public Safety and Correctional Services for their work in the investigation and thanked the Maryland Department of Public Safety and Correctional Services for its assistance. Mr. Barron also thanked Assistant U.S. Attorney Sarah Marquardt and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section who are prosecuting the case, with assistance from Special Legal Counsel Mark Blumberg of the Civil Rights Division’s Criminal Section.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Maryland Correctional Officer Pleads Guilty to Conspiracy and Destruction of Records Offenses Related to Cover-Up of Excessive Force IncidentRead the Press Release
A correctional officer at the Eastern Correctional Institution (ECI) in Westover, Maryland, pleaded guilty today to an information charging him with one count of conspiring to obstruct justice and one count of destruction of records, with the purpose of covering up evidence that a fellow officer at ECI had unlawfully assaulted an inmate.
According to court documents, on July 12, 2021, while working at the ECI, David Quillen, 37, learned that another officer had used force against an inmate. Upon learning of the incident, Quillen responded to the scene with a video camera and began recording the inmate. While Quillen filmed him, the inmate asserted that he had been assaulted by a correctional officer — Samuel Warren — for no reason. The inmate also cried and was visibly injured with blood on his face.
After Quillen stopped filming, he and other officers watched the video Quillen had filmed. While watching the video, a supervisory officer commented that the video did not look good for Warren and indicated that the video should be deleted. Warren agreed and Quillen and other officers agreed to lie about the deletion. Understanding that the video contained evidence that Warren’s use of force against the inmate had been unlawful, Quillen deleted the video.
Following the deletion, Quillen lied about what happened to the video, including to supervisors at ECI and to state and federal investigators.
Warren has since admitted that he unlawfully assaulted the inmate and has entered guilty pleas to both federal offenses related to that assault.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Acting Special Agent in Charge Joseph Rothrock of the FBI Baltimore Field Office made the announcement.
The FBI Baltimore Field Office is investigating the case, with assistance from the Maryland Department of Public Safety and Correctional Services.
Assistant U.S. Attorney Sarah Marquardt for the District of Maryland and Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section are prosecuting the case, with assistance from Special Legal Counsel Mark Blumberg of the Civil Rights Division’s Criminal Section.
Man Arrested for Making Threat to Arizona Election OfficialRead the Press Release
A California man was arrested today in San Diego for allegedly leaving a voicemail containing a violent threat on the personal cell phone of an election official with the Maricopa County Recorder’s Office in Phoenix, Arizona.
William Hyde, 52, of San Diego, is scheduled to make his initial appearance tomorrow at the federal courthouse in San Diego.
“As alleged in the indictment, the defendant left threatening messages on a Maricopa County election official’s personal cell phone the day after county officials certified the 2022 election results. The indictment alleges that the defendant accused the official of cheating the election and told the official to ‘run’ and ‘hide,’” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Criminal Division is committed to aggressively investigating and prosecuting individuals who threaten election officials. We will not tolerate criminal intimidation of those who administer and safeguard our elections.”
According to an indictment unsealed today, on or about Nov. 28, 2022, a victim election official attended a meeting of the Maricopa County Board of Supervisors, where the Board of Supervisors certified the 2022 general election results in Maricopa County. The following day, Hyde allegedly left the following voicemail message on the personal cell phone of the election official: “Run, [expletive].” Approximately one minute later, Hyde allegedly left the following voicemail message on the personal cell phone of the election official: “You wanna cheat our elections? You wanna screw Americans out of true votes? We’re coming, [expletive]. You’d better [expletive] hide.”
“Intimidation of election officials strikes at the very heart of our democracy,” said U.S. Attorney Tara McGrath for the Southern District of California. “Even just one case can have a ripple effect. This office will aggressively prosecute any attempt to intimidate, threaten, or frighten election officials as they engage in these critical duties.”
“Election integrity starts with protecting those we entrust to administer elections,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “We appreciate the admirable efforts of the Recorder’s Office and Elections Department in Maricopa County to efficiently register Arizonans as eligible voters, and to accurately and transparently tabulate their votes.”
“Individuals who work to ensure the integrity of our elections should not have to worry about their safety while working for the American people,” said Acting Special Agent in Charge TJ Holland of the FBI San Diego Field Office. “We will continue to collaborate with our local, state, and federal law enforcement partners to protect election officials and prosecute anyone who threatens to harm them.”
Hyde is charged with one count of communicating an interstate threat. If convicted, he faces a maximum penalty of five years in prison.
The FBI San Diego Field Office is investigating the case, with substantial assistance from the FBI Phoenix Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Seth Askins for the Southern District of California are prosecuting the case, with substantial assistance from Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona.
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 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.
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 at 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentMan Arrested for Making Threat to Arizona Election OfficialRead the Press Release
NEWS RELEASE SUMMARY – February 22, 2024
SAN DIEGO – William Hyde of San Diego was arrested in San Diego today for allegedly leaving a voicemail containing a violent threat on the personal cell phone of an election official in the Maricopa County Recorder’s Office in Phoenix, Arizona.
Hyde, 52, is scheduled to make his initial appearance tomorrow at the federal courthouse in San Diego.
According to an indictment unsealed today, on or about November 29, 2022, Hyde allegedly left the following voicemail message on the personal cell phone of the victim election official: “Run, [expletive].” Approximately one minute later, Hyde allegedly left a second voicemail message for the same election official: “You wanna cheat our elections? You wanna screw Americans out of true votes? We’re coming, [expletive]. You’d better [expletive] hide.” This followed a Special Meeting held by the Maricopa County Board of Supervisors a day earlier to certify the election results in Maricopa County for the November 8, 2022, general elections for federal and state officeholders. The election official was present at this Special Meeting, which received nationwide media coverage.
“Intimidation of election officials strikes at the very heart of our democracy,” said United States Attorney for the Southern District of California Tara McGrath. “Even just one case can have a ripple effect. This Office will aggressively prosecute any attempt to intimidate, threaten, or frighten election officials as they engage in these critical duties.”
“As alleged in the indictment, the defendant left threatening messages on a Maricopa County election official’s personal cell phone the day after county officials certified the 2022 election results. The indictment alleges that the defendant accused the official of cheating the election and told the official to ‘run’ and ‘hide,’” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Criminal Division is committed to aggressively investigating and prosecuting individuals who threaten election officials. We will not tolerate criminal intimidation of those who administer and safeguard our elections.”
“Election integrity starts with protecting those we entrust to administer elections,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “We appreciate the admirable efforts of the Recorder’s Office and Elections Department in Maricopa County to efficiently register Arizonans as eligible voters, and to accurately and transparently tabulate their votes.”
“Individuals who work to ensure the integrity of our elections should not have to worry about their safety while working for the American people,” said Acting Special Agent in Charge TJ Holland of the FBI San Diego Field Office. “We will continue to collaborate with our local, state, and federal law enforcement partners to protect election officials and prosecute anyone who threatens to harm them.”
Hyde is charged with one count of communicating an interstate threat. If convicted, he faces a maximum penalty of five years in prison. The FBI San Diego Field Office investigated the case, with substantial assistance from the FBI Phoenix Field Office.
Assistant U.S. Attorney Seth Askins for the Southern District of California and Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section are prosecuting the case, with substantial assistance from Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona.
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 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.
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 at 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DEFENDANT Case Number 22cr0276-BAS
William Michael Hyde 52 San Diego
SUMMARY OF CHARGES
Interstate Threatening Communication – Title 18, U.S.C., Section 875(c)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Makah tribal member indicted for drunken crash on beach that killed friendRead the Press Release
Seattle – A 21-year-old member of the Makah Tribe was indicted February 21, 2024, for involuntary manslaughter for the death of a friend in a car accident on a Pacific Ocean beach within the Makah Reservation, announced U.S. Attorney Tessa M. Gorman. Meric Soeneke is scheduled for arraignment in U.S. District Court in Tacoma on March 4, 2024.
According to records filed in the case, on December 21, 2023, Soeneke was driving at a high rate of speed on the ocean beach with three others in the vehicle. Soeneke had been drinking and was impaired. He was driving on the unlit beach in the dark when he hit a large tree that had fallen across the beach. Another Makah Tribal member, a 26-year-old woman, was killed in the crash.
Soeneke was originally charged in Tribal Court and released on bail. At his first federal court appearance a Magistrate Judge will determine whether there are conditions under which he can be released from federal custody.
Involuntary manslaughter is punishable by up to eight years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Neah Bay Public Safety Department.
The case is being prosecuted by Assistant United States Attorney Jocelyn Cooney. Ms. Cooney serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
soeneke_indictment.pdfLutcher Man Sentenced for Machine Gun PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – TYKI CLAYTON, age 21 of Lutcher, La. was sentenced on February 21, 2024 by U.S. District Judge Jane Triche Milazzo to 36 months incarceration after he previously pled guilty to possession of a machine gun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2), announced U.S. Attorney Duane A. Evans. Judge Milazzo also ordered that CLAYTON be placed on supervised release for three (3) years following his release from prison. CLAYTON was also ordered to pay a mandatory $100 special assessment fee.
According to court records, on March 28, 2022, CLAYTON was the passenger in a vehicle that did not come to a full stop at a stop sign. A St. James Parish deputy stopped the vehicle and saw CLAYTON in the front passenger seat reaching between his legs into a backpack.
The deputy learned that CLAYTON had an outstanding arrest warrant and detained him inside a police unit. Law enforcement discovered a Glock firearm equipped with an auto-sear, making it function as a machine gun, as well as a loaded gun magazine during a search of CLAYTON’s vehicle.
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 track 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. James Parish Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
Lincoln Man Convicted for Child Pornography ChargesRead the Press Release
United States Attorney Susan Lehr announced that Amikhet En Maati, formerly known as Warren Coker, 52, of Lincoln, Nebraska, was found guilty by a bench trial on February 22, 2024, in federal court in Lincoln, Nebraska for two counts of production of child pornography concerning two separate victims, two counts of committing the production of child pornography offenses while on the Sex Offender Registry, and one count of possession of child pornography. Senior United States District Judge John M. Gerrard presided over the bench trial and set sentencing for May 20, 2024.
On September 9, 2022, Lincoln Police Department (“LPD”) received a report regarding the sexual abuse of a minor female where Maati was the subject. A search of the residence was conducted and a cellphone belonging to Maati was seized. Around that same time, LPD determined that Maati was also the subject of a recent tip made to the FBI. A forensic examination was completed on Maati’s cellphone. Law enforcement discovered multiple child exploitation videos of minor Victim 1 and one video of minor Victim 2. Maati uploaded and distributed these videos to a cloud-storage website where his friend, who was another registered sex offender, had access to them. Further review of Maati’s cloud-storage account revealed additional child exploitation videos of each of the victims.
Maati was previously convicted on or about January 2, 1997, for Attempted Sex Assault of a Child in Douglas County District Court, Nebraska, and on or about July 1, 1999, for one count of Second-Degree Sexual Assault and one count of Sexual Assault of a Child in Sarpy County District Court, Nebraska. Due to these prior convictions, Maati now faces a mandatory sentence of at least 45 years imprisonment based on today’s guilty verdict.
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 Department of Justice. 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, please visit www.justice.gov/psc.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation.
Leader of Real Estate Telemarketing Fraud Scheme That Defrauded Investors of over $19 Million Sentenced to 4 Years PrisonRead the Press Release
DETROIT - A leader of an extensive real estate fraud scheme was sentenced to four years in federal prison today after having pleaded guilty to conspiring to commit mail and wire fraud, U.S Attorney Dawn N. Ison announced. This marks the 20th and final defendant to be convicted and sentenced in this case.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
According to court documents, Izhak Halbani, 39, admitted to leading a telemarketing fraud scheme based in Florida that lured victims into purchasing residential real estate in Detroit and elsewhere through a variety of lies.
Halbani and his co-conspirators, using a number of aliases, told victims they were buying bank-owned properties at a fraction of the remaining mortgage balance. These properties were then purportedly “flipped” to hedge funds and foreign investors—generating supposed returns for the victims and inducing them to invest more into the scheme. The victims were also told that the telemarketers did not make any money on the victims’ initial purchase but only received a commission from the subsequent resale of the properties—supposedly aligning their incentives with those of the victims.
In reality, the properties the victims purchased were not bank-owned. Instead, the properties were owned by other entities controlled by Halbani and his co-conspirators, who had routinely purchased the properties for a fraction of what the victims paid. And the telemarketers did, in fact, make money from the victims’ initial purchase. Furthermore, rather than being re-sold to third-party hedge funds or foreign investors, the properties bought by the victims were sold to shell entities that were also controlled by the co-conspirators—all part of an effort to portray a ready market for flipping homes. As part of the scheme, the victims were also provided with fraudulent documentation showing the purported profits earned on the resale of their properties. Believing that there was a ready market for flipping homes to third parties, many victims sent substantial additional sums to the co-conspirators. They were, however, eventually left owning properties with little actual value or resale potential.
Halbani admitted that the scheme victimized over 290 individuals, involved more than 2000 properties, and caused losses totaling at least $19 million.
“Not only did the perpetrators of this scheme financially devastate countless victims, but they also used homes in our community like Monopoly pieces in a game of fraud—callous to the real impact residential vacancies and blight have on our neighborhoods,” stated United States Attorney Dawn N. Ison.
The following defendants were previously convicted and sentenced for their roles in the fraud scheme:
• Joseph Arsenault: 121 months’ imprisonment
• Scott Amster: 102 months’ imprisonment
• Erez Arsoni: 84 months’ imprisonment
• Gregory Swarn: 82 months’ imprisonment
• Antwan Reid: 63 months’ imprisonment
• John Trumble: 60 months’ imprisonment
• Richard Silverstein: 57 months’ imprisonment
• Wayne Scott Simpson: 57 months’ imprisonment
• Joseph Haden: 52 months’ imprisonment
• Scott Lipman: 30 months’ imprisonment
• Steven Goldstein: 27 months’ imprisonment
• Joel Munoz: 27 months’ imprisonment
• Theodore Jacobs: 24 months’ imprisonment
• Matthew Golden: 15 months’ imprisonment
• Richard Pierce: 12 months and 1 day of imprisonment
• Edward Keeler: 1 day of imprisonment and 30 months’ supervised release
• Amanda Balcer: 1 day of imprisonment and 24 months’ supervised release
• Michelle Pintado: 1 day of imprisonment and 24 months’ supervised release
• Robert Gallik: 1 day of imprisonment and 24 months’ supervised release
The case was investigated by the FBI.
The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind, and Assistant U.S. Attorney Jessica A. Nathan is handling forfeiture matters.
LeFlore County Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christopher Joe Knight, age 42, of Spiro, Oklahoma, pleaded guilty to Felon in Possession of a Firearm.
The Indictment alleged that on December 26, 2022, Knight, having been convicted of a crime punishable by a term of imprisonment exceeding one year, and knowing of that conviction, possessed a 9mm semi-automatic pistol which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Highway Patrol, and the Sequoyah County Sherriff’s Office.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Knight will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Jonathan E. Soverly represented the United States.
Kemper County Men Sentenced to over 20 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Mississippi – Two Kemper County men were each sentenced to over 20 years in prison for conspiracy to possess with intent to distribute 50 grams of more of methamphetamine.
Donovan Sherill Bourrage, 45, was sentenced to 324 months in federal prison and Orlando Bourrage, 48, was sentenced to 280 months in federal prison.
According to court documents, Donovan Sherill Bourrage and Orlando Bourrage, both of DeKalb, Mississippi, conspired with others to distribute methamphetamine in and around the Kemper County area. On May 22, 2023, after a five-day trial, a jury found the defendants guilty of conspiracy to possess with intent to distribute methamphetamine.
The case is the result of an extensive investigation targeting illegal drug trafficking in the Neshoba and Kemper County areas. The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Todd W. Gee and Special Agent in Charge Eric DeLaune of Homeland Security Investigations in New Orleans made the announcement.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department, Mississippi Department of Wildlife, Fisheries and Parks, Mississippi National Guard Counterdrug Task Force, and the Madison Police Department.
The case was prosecuted by Assistant United States Attorneys Keesha Middleton and Carla Clark.
Justice Department Seeks Forfeiture of Two Bal Harbour Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
MIAMI – From the outset of Russia’s unprovoked, full-scale invasion of Ukraine on Feb. 24, 2022, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. The Department continues that work through significant enforcement actions. Today, the Department announced an array of new charges, arrests, and forfeiture proceedings, to include a civil forfeiture complaint that was filed in the Southern District of Florida.
“The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it,” said Attorney General Merrick B. Garland. “That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”
“It has been two years since Russia’s unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war,” said FBI Director Christopher Wray. “To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.”
Today, the United States filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida, alleging that two Bal Harbour condominiums are subject to forfeiture based on violations of the International Emergency Economic Powers Act (“IEEPA”), Office of Foreign Assets Control (“OFAC”) sanctions, and federal money laundering statutes.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office made the announcement.
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On January 26, 2018, pursuant to Executive Order 13685, OFAC sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea (the “Sanctions”). OFAC added Perevalov, Abramov, and VAD, AO to the specially designated nationals and blocked persons (“SDN”) List. Once OFAC imposed the Sanctions, all property or interest in property belonging to Perevalov, Abramov, and/or VAD, AO in the United States, “[was] blocked and [could] not be transferred, paid, exported, withdrawn, or otherwise dealt in[.]” E.O. 13685 § 2(a). OFAC never issued a license which was required for anyone to transact with, or on behalf of, Perevalov and Abramov.
Soon after the Sanctions, R.S., a Miami real estate agent retained to manage the properties, worked to transfer the two condominiums owned by Perevalov, Units 1616 and 1617 located at 10295 Collins Avenue, Bal Harbour, Florida 33154 (the “Defendant Properties”) to an LLC in violation of the Sanctions. The Defendant Properties have a combined value of approximately $2.5 million. On April 10, 2018, R.S. and others, including a law firm, formed 1616 Collins LLC, and named R.P., a Perevalov family member who was a minor at the time, the entity’s purported sole beneficial owner. On June 14, 2018, the title of the Defendant Properties was transferred to 1616 Collins LLC in violation of the Sanctions. R.S. served as Perevalov’s power of attorney for the transfer. After the transfer, R.S. continued to lease the Defendant Properties, collected proceeds derived from the Defendant Properties, and used those proceeds to maintain the Defendant Properties including by making property tax payments.
FBI Miami is investigating the case with assistance from the Sunny Isles Beach Police Department. Assistant U.S. Attorneys Marx P. Calderón and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the Counterintelligence and Export Control Section of the National Security Division are prosecuting this civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
A video statement from Attorney General Garland is available here https://www.youtube.com/watch?v=zOsemz-Gj-c.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards a judgment in favor of the United States.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cv-20687.
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Justice Department Files Statement of Interest in Lawsuit Concerning Unnecessary Law Enforcement Responses to Mental Health EmergenciesRead the Press Release
The Justice Department today filed a statement of interest in Bread for the City v. District of Columbia, a lawsuit in the U.S. District Court for the District of Columbia alleging that the District’s reliance on police officers as the default responders to mental health emergencies violates the Americans with Disabilities Act (ADA).
The statement explains that the ADA requires public entities to afford people with mental health disabilities an equal opportunity to benefit from emergency response systems. This may require dispatching a different type of response to mental health emergencies when appropriate, such as mobile crisis teams staffed with behavioral health professionals, to avoid discrimination on the basis of disability.
“Sending mobile crisis response teams to mental health emergencies when appropriate is akin to sending EMTs to a reported heart attack,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Relying on a less effective, potentially harmful response to people experiencing mental health emergencies may deprive people with mental health disabilities of an equal opportunity to benefit from a critical public service. People with mental health disabilities must have an equal opportunity to benefit from a city’s emergency response system. We are committed to fully enforcing the Americans with Disabilities Act and ensuring that people with mental health disabilities are not subjected to discrimination.”
The department’s statement of interest clarifies that Title II of the ADA applies to all services, programs and activities provided or made available by public entities, including emergency response systems. Public entities must make reasonable modifications to afford people with disabilities an equal opportunity to benefit from their programs, services and activities, including dispatching a different type of response to an emergency call when necessary to avoid discrimination based on disability. The statement also addresses other arguments made by the District of Columbia concerning the claims in this case.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. In May 2023, the Justice Department and Department of Health & Human Services issued guidance for Emergency Responses to People with Behavioral Health or Other Disabilities. In addition, the department recently concluded investigations in Minneapolis and Louisville, Kentucky, in which it found, in part, that the emergency response systems discriminate against people with behavioral health disabilities when responding to calls for assistance. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov/.
Additional information about the Civil Rights Division is available at www.justice.gov/crt. Assistance with this statement of interest provided by the Affirmative Civil Rights and Environmental Justice Unit in the Civil Division of the U.S. Attorney’s Office for the District of Columbia.
Joint Investigation Results in Federal Indictment for Methamphetamine and Fentanyl Trafficking ConspiracyRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky returned an indictment on February 13, 2024, charging a Hopkinsville, Kentucky man with conspiring to possess with the intent to distribute methamphetamine and fentanyl.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Erek G. Davodowich of the DEA Louisville Field Division, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to the indictment, Jason Stewart, 35, was charged with conspiring to possess with the intent to distribute methamphetamine and fentanyl.
Stewart made his initial court appearance before a U.S. Magistrate Judge in the Western District of Kentucky on February 21, 2024. If convicted, Stewart faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. The defendant remains in federal custody pending further proceedings. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the DEA Paducah Post of Duty and the Hopkinsville Police Department Special Investigations Unit, with assistance from the ATF Bowling Green and Paducah Field Offices, Homeland Security Investigations, the United States Postal Investigations Service, the Kentucky State Police, the Calloway County Sheriff’s Office, and the Madisonville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Insider trading – Husband illegally profits $1.7M after using wife’s private company informationRead the Press Release
HOUSTON – A 42-year-old Houston man has pleaded guilty to securities fraud, announced U.S. Attorney Alamdar S. Hamdani.
Tyler Loudon made $1.7 million in illegal profits from the purchase and sale of stock market shares.
Loudon’s wife was an associate manager in mergers and acquisitions at an internationally-based oil and gas company. Loudon learned that her company was planning to purchase a travel center operator business.
Unbeknownst to his spouse, Loudon used the non-public information about the expected acquisition to purchase 46,450 shares ahead of the public notice.
After the announcement, the travel center operator’s stock price increased. Loudon then sold his shares for a substantial profit.
As part of his plea agreement, Loudon agreed to forfeit the $1.7 million in illegal proceeds.
U.S. District Judge Sim Lake accepted the plea and has set sentencing for May 17. At that time, Loudon faces up to five years in federal prison and a possible $250,000 maximum fine.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and the Financial Industry Regulatory Authority. Assistant U.S. Attorney Karen M. Lansden is prosecuting the case.
Indian River County resident pleads guilty to distributing fentanyl resulting in deathRead the Press Release
MIAMI – On Feb. 20, an Indian River County resident pleaded guilty in federal court in Fort Pierce to distribution of fentanyl, the use of which resulted in the death of another person.
As part of the plea documents filed with the court, Keyon Lewis, 27, admitted that on Nov. 5, 2021, he sold fentanyl to a man in a parking lot in Vero Beach, Florida. The next day, the man’s wife found him dead on the kitchen floor of their residence. After law enforcement officers discovered the victim’s body, they used the victim’s cellphone to order more fentanyl from Lewis. On Nov. 7, 2021, Indian River County officers arrested Lewis at the victim’s residence.
Lewis’s sentencing is scheduled for May 21 before U.S. District Judge Aileen M. Cannon in Fort Pierce. Lewis faces a mandatory minimum penalty of 20 years and a maximum penalty of up to life in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO) made the announcement.
DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14030.
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Holland Woman Sentenced to Prison for Wire Fraud, Aggravated Identity Theft and Money LaunderingRead the Press Release
TOLEDO – Teresia M. Jones, 34, of Holland, Ohio, was sentenced to 7 years in prison by District Judge Jack Zouhary after earlier pleading guilty to wire fraud, aggravated identity theft and money laundering. Jones received 5 years for wire fraud and money laundering and an additional 2 years for aggravated identity theft which must be served consecutively. Jones was also ordered to pay restitution in the amount of $2,929,519, a $300 special assessment and serve 2 years of supervised release.
According to the court records and testimony beginning in January 2020, Jones defrauded the IRS through a wide-ranging tax refund scheme by submitting false and fraudulent tax filings using stolen identities and claiming millions of dollars in improper tax refunds. Jones then used these funds for personal spending. This tax refund scheme used stolen identity information from real people and businesses. Jones would then prepare and file these fraudulent tax return electronically.
In addition, Jones laundered the stolen tax funds by purchasing a 2022 Cadillac Escalade for over $150,000, real property among other transactions. The Cadillac Escalade was forfeited by government along with a 2022 Dodge Ram truck, two parcels of real property and approximately $328,000 seized from bank accounts.
This investigation was conducted by the IRS Criminal Investigations (CI) and the United States Secret Service (USSS). This case is being prosecuted by Assistant U.S. Attorney Gene Crawford.
Highland Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND – Nurldon Green, III, 30 years old, of Highland, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to theft of mail, announced United States Attorney Clifford D. Johnson.
Green was sentenced to 27 months in prison followed by 2 years of supervised release.
According to documents in the case, from February 2022, through June 5, 2022, Green, while impersonating a United States Postal carrier, stole mail from various receptacles, which included checks made out to victims within the Northern District of Indiana. At the time of his apprehension, Green was dressed as a United States Postal Employee and was in possession of approximately 60 pieces of stolen United States mail.
This case was investigated by the United States Postal Inspection Service with assistance of the DeMotte Police Department, and the Rensselaer Police Department. The case was prosecuted by Assistant United States Attorneys Jennifer Chang and Emily Morgan.
Harlan County Man Sentenced to 178 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Cawood, Ky., man, Bethel Stewart, 61, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 178 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine.
According to his plea agreement, following community complaints of drug trafficking at Stewart’s residence, and a tip that he was in possession of a large quantity of methamphetamine, law enforcement began surveillance and observed traffic at the residence that was consistent with drug trafficking. Then, on January 19, 2022, law enforcement searched Stewart’s home, discovering approximately 300 grams of methamphetamine, which Stewart intended to distribute.
Under federal law, Stewart must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence.
The investigation was conducted by the DEA. Assistant U.S. Attorney Jason Parman is prosecuting the case on behalf of the United States.
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Garden City Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Vincent Porter, 32, of Garden City, Idaho, was sentenced to 360 months in federal prison for sexual exploitation of a child, U.S. Attorney Josh Hurwit announced today.
According to court records, the investigation began when a citizen reported to the Garden City Police Department (GCPD) that she had located concerning videos on a cellphone Porter had been accessing. The witness reported that the videos showed Porter setting up a camera and surreptitiously recording the 10-year-old victim.
GCPD obtained a search warrant for Porter’s cloud storage. Within the account, GCPD located two videos that Porter had recorded of the victim. The videos showed Porter setting up a camera in the bathroom to record the victim undressing and showering. GCPD also examined Porter’s cellphone pursuant to a search warrant. On the cellphone, GCPD located an additional explicit video Porter had recorded of the victim. Porter was previously convicted in Ada County of sexual battery of a minor 16 or 17 years of age.
“The defendant in this case is a sex offender who was paroled from a state sentence only to begin victimizing a 10-year-old girl within a couple years,” said U.S. Attorney Hurwit. “This case shows the effectiveness of federal prosecution as this defendant will now serve decades behind bars with no possibility of parole. I am grateful for the prosecutors in my office and our law enforcement colleagues who dedicate their careers to keeping Idaho’s children safe by removing child predators from our communities.”
“The Garden City Police Department is happy to partner with the U.S. Attorney’s Office to take predators like this off the street,” said Garden City Police Chief Cory Stambaugh. “We appreciate the partnership in keeping our community safer. I applaud the hard work of the investigators and prosecutors on this case.”
“It is through cooperation like this among area law enforcement and our federal partners that makes the Treasure Valley such a safe place to raise a family,” said Meridian Police Chief Tracy Basterrechea.
U.S. District Judge Amanda K. Brailsford also sentenced Porter to a lifetime of supervised release. Porter will be required to register as a sex offender as a result of the conviction.
U.S. Attorney Hurwit commended the cooperative efforts of the Garden City Police Department, the Idaho Internet Crimes Against Children Task Force, and the Meridian Police Department, which led to the charge. Assistant U.S. Attorney Kassandra McGrady prosecuted this 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 Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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, please visit www.justice.gov/psc.
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Fourteen Indicted in Pharmaceutical Kickback CaseRead the Press Release
Ten doctors, two pharmaceutical executives, and two business entities have been charged in a scheme to bribe doctors for prescriptions, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
The fourteen defendants were charged in a two-count indictment filed Wednesday. Medical doctors Robert Leisten, Amy Haase, Arnold Farbstein, Barry Weinstein, Eric Berkman, Jorge Cuz, Katherine McCarty, James Ellis, and David Wolf; executives Amir Mortazavi and Arvin Zeinali; and Management Service Organizations (MSOs) Trinity Champion Healthcare Partners, LLC and Hexamed Business Solutions, LLC were charged with conspiracy to violate the Travel Act by violating the Texas Commercial Bribery Statute and conspiracy to deny patients their right to honest services; and with conspiracy to commit money laundering. Medical doctor Walter Strash was charged with conspiracy to violate the Travel Act by violating the Texas Commercial Bribery Statute and conspiracy to deny patients their right to honest services.
“Our community trusts doctors to write prescriptions that serve their patients’ best interest. Kickbacks and bribes cloud physicians’ judgment,” said U.S. Attorney Leigha Simonton. “The U.S. Attorney’s Office is proud to hold accountable those who abandon the Hippocratic oath in the name of personal enrichment. We will not permit greed to taint the practice of medicine.”
“The alleged scheme in this indictment included doctors who used their positions of trust to profit personally at the expense of their patients. Health care fraud affects all sectors of the economy and costs U.S. taxpayers billions of dollars each year,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to investigating and exposing all forms of health care fraud. We will work with our law enforcement partners to hold anyone accountable that uses the health care system for their own personal benefit.”
According to the indictment, several pharmacies allegedly identified profitable prescriptions and recruited doctors to write those prescriptions. The doctors allegedly referred the prescriptions, including highly lucrative pain creams, to those pharmacies in return for a share of the profits on the prescriptions. The pharmacies allegedly tracked each prescription by doctor and illegally funneled a share of the profits back to the doctors through various marketing firms and management service organizations (MSOs), including Trinity Champion and Hexamed.
The indictment alleges that profits were generally handled as follows: Roughly 45 to 55% of net profits were retained by the pharmacy, which would pay roughly 50 to 55% of profits to a marketer called Med Left. Med Left would take a significant percentage of the payment, sometimes as much as half, and pay the rest to MSOs including Trinity Champion, Hexamed, and Eagle Ridge. Trinity Champion would funnel a small percentage to its managing partner and then pay the remaining proceeds to an entity controlled by Dr. Leisten, who would then pay Drs. Haase, Farbstein, Weinstein, Berkman, and Cuza; Hexamed and Eagle Ridge would pay a small percentage to its managing partner and then pay the remaining proceeds to Drs. McCarty, Wolf, and Ellis.
The conspirators concealed these bribes as returns on investments from physician ownership in the pharmacies. In reality, physician ownership required referrals and ownership was offered for a nominal fee – in some cases, as little as $1,000 or $1,250. Virtually 100% of pharmacy revenues were created by prescriptions written by physician owners, and profits generated from those prescriptions were shared with prescribing doctors.
According to the indictment, in May 2018, a confidential human source met with Mortazavi and Zeinali, saying he represented a group of doctors who wanted to get paid on their prescriptions. Mortazavi and Zeinali allegedly said they would only agree to pay doctors through an MSO model. The following week, the confidential source met with an MSO operator who allegedly explained how the doctors would get paid for prescriptions they sent to pharmacies.
Later that same month, Mortazavi and three of the doctors met for dinner to discuss changing their MSO model. They agreed that the MSO would receive a weekly report of scripts submitted the previous week. A report subsequently sent to an MSO tracked each doctor by the patient, number of prescriptions filled, sum of monies due from insurance companies, sum of cost to fill each prescription, and sum of net. Three weeks later, a person affiliated with one of the MSOs asked Zeinali about which new drugs doctors “can get a good reimbursement on?”
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, each defendant faces up to five years on the Travel Act conspiracy, 20 years on the Deprivation of Honest Services Wire Fraud conspiracy, and 20 years on the money laundering conspiracy charge.
Two businessmen, Andrew Hillman and Semyon Narosov, owners of Next Health, pleaded guilty to charges stemming from this scheme in October 2018. They were sentenced to 66 months (Hillman) and 76 months (Narosov) in prison for conspiracy to launder monetary instruments. The two men, in their capacities as co-owners of a surgical brokerage called Hospital Business Concepts, were also charged in the Forest Park healthcare fraud scheme; they pleaded guilty in October 2018 to conspiracy to pay and receive healthcare bribes and were later sentenced to 60 months (Hillman) and 51 months (Narosov). The owner of marketing firm Med Left, Vinson Woodlee, pleaded guilty in a separate case to conspiracy to solicit and receive kickbacks for referrals to federal health care programs.
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General, HHS’s Medicaid Fraud Control Unit, the U.S. Department of Veterans Affairs Office of Inspector General, the U.S. Department of Labor Office of Inspector General, U.S. Food & Drug Administration Office of Criminal Investigations, the U.S. Office of Personnel Management Office of Inspector General, the U.S. Postal Inspection Service, the Drug Enforcement Administration’s Dallas Field Office, IRS Criminal Investigations, and the Defense Criminal Investigative Service (DCIS) conducted the investigation. Assistant U.S. Attorneys Chad Meacham, Donna Max, and Marty Basu are prosecuting the case.
Fourteen Charged with Federal Dog Fighting Offenses in Three-State Arrest OperationRead the Press Release
Fourteen men – residents of Georgia, Florida and Alabama – were charged for participating in a major dog fighting event that occurred in April 2022 in Donalsonville, Georgia. The U.S. District Court for the Middle District of Georgia unsealed the indictment in conjunction with arrests that occurred this week. The defendants are:
- Tamichael Elijah, 47, of Donalsonville, Georgia;
- Marvin Pulley III, 52, of Donalsonville and Jakin, Georgia;
- Brandon Baker, 41, of Panama City, Florida;
- Christopher Travis Beaumont, 37, of Panama City, Florida;
- Herman Buggs Jr., 56, of Donalsonville, Georgia;
- Terrance Davis, 45, of Pansey, Alabama;
- Timothy Freeman, 26, of Bainbridge, Georgia;
- Terelle Ganzy, 34, of Panama City, Florida;
- Gary Hopkins, 66, of Donalsonville, Georgia;
- Cornelious Johnson, 39, of Panama City, Florida;
- Rodrecus Kimble, 43, of Donalsonville, Georgia;
- Donnametric Miller, 41, of Donalsonville, Georgia;
- Willie Russell, 43, of Blakely, Georgia; and
- Fredricus White, 36, of Panama City, Florida.
According to court documents filed in this case, the defendants all converged on a property in Donalsonville, Georgia, on April 24, 2022, where they held a large-scale dog fighting event. The defendants and others brought a total of 24 dogs to fight that weekend in a series of matches. Law enforcement personnel who disrupted the event found numerous dogs inside crates in cars on the property. The participants used their cars to store dogs who had already fought, as well as those whose turns had not yet come.
As alleged in the indictment, Elijah resided on the property and acted as the host, having taken money from Pulley for hosting the dog fights. Pulley was the primary organizer. He and Russell acted as referees for matches that occurred before law enforcement arrived. Beaumont, Davis and Miller were witnessed fighting dogs at the event. Baker, Beaumont, Ganzy, Johnson and White brought three dogs from Florida to fight. Buggs, Davis, Freeman, Hopkins, Pulley and Kimble also brought dogs to the fight. Under federal law, it is illegal not only to fight dogs in a venture that affects interstate commerce, but also to possess, train, transport, deliver, sell, purchase or receive dogs for fighting purposes. Miller is also charged with the unlawful possession of a firearm subsequent to a prior felony conviction.
Authorities rescued 27 dogs from the April 2022 dog fighting event, and another 51 in conjunction with the arrests that occurred this week.
If convicted, the defendants each face a maximum penalty of five years in prison and a $250,000 fine per count of animal fighting charges. Miller also faces a maximum penalty of 10 years in prison and a $250,000 fine on the firearm charge.
Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement.
The U.S. Department of Agriculture, Office of the Inspector General and detectives with the Seminole County, Georgia Sheriff’s Office are investigating the case, which remains ongoing. Detectives with the Bay County, Florda Sheriff’s Office also provided invaluable assistance.
Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section is prosecuting the case, with assistance from Criminal Chief Leah McEwen of the U.S. Attorney’s Office for the Middle District of Georgia. The U.S. Attorney’s Offices in the Northern District of Florida and Middle District of Alabama also assisted with the operation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Indicted for Narcotics and Firearms Offenses Following the Seizure of over 30 Firearms in Monticello, New YorkRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today the unsealing of a Superseding Indictment charging multiple defendants with narcotics and firearm offenses in and around Monticello, New York, following the recovery of body armor, ammunition, and approximately 30 firearms from the residence of DWAYNE JOHNSON. JOHNSON, who was previously arrested on May 24, 2023, is charged with conspiracy to engage in narcotics trafficking, possession of short-barreled rifles in furtherance of the narcotics conspiracy, unlawful possession of firearms and ammunition, unlawful possession of body armor, aiding and abetting the unlawful interstate transfer of firearms, and aiding and abetting firearms trafficking. JESSICA FRANCIS, who was previously arrested on September 14, 2023, is charged with engaging in the narcotics conspiracy with JOHNSON. LORI COONEY was arrested earlier today in Scranton, Pennsylvania, and is charged with the unlawful interstate transfer of firearms to JOHNSON. TERESA SANTINI was arrested earlier today in Milford, Pennsylvania, and is charged with trafficking firearms to JOHNSON and the unlawful interstate transfer of firearms to JOHNSON.
SANTINI and COONEY were presented in federal court earlier today before U.S. Magistrate Judge Judith C. McCarthy. JOHNSON and FRANCIS will be arraigned before U.S. District Court Judge Vincent Briccetti on March 13, 2024.
U.S. Attorney Damian Williams said: “As alleged, the sheer number of firearms recovered from Johnson’s residence — which include assault weapons, short-barreled rifles, and an untraceable “ghost gun” — underscores the harsh reality of violence that accompanies drug trafficking and the danger its poses to communities. Today’s Superseding Indictment sends a clear message that those who engage in violent and illegal enterprises and those who offer their support will face federal criminal charges.”
As alleged in the Complaint previously filed in this case and the Superseding Indictment unsealed today:[1]
Between at least October 2016 through May 2023, JOHNSON, FRANCIS, and others known and unknown conspired to possess with the intent to distribute over 1,000 kilograms of marijuana. In 2023, law enforcement secured a warrant to search JOHNSON’s known Gmail Account, which contained multiple photos and videos associated with JOHNSON’s marijuana trafficking business, including videos of JOHNSON counting large quantities of cash in a particular room within his residence, photographs of marijuana in its retail packaging, and pounds of marijuana stored on tables and in a safe within the house. In one video, JOHNSON can be seen holding stacks of United States currency, counting a stack of bills, and saying, in sum and substance, that it’s “hard work” to accrue that amount of currency. JOHNSON then pans to the walls of guns and states, “you have to protect it, though.” JOHNSON also can be heard in a video saying, “Just in case you think you can fuck with my money, you come and I’ll spread you with a 12-gauge, you run and I’ll catch you with the 30 aught 6 or the 308.”
Screenshots taken from videos and photos taken from the Gmail Account are depicted below:
During the pendency of the conspiracy, COONEY and SANTINI separately and unlawfully transferred, sold, traded, gave, transported, or otherwise delivered to JOHNSON multiple firearms from Pennsylvania, including five pistols, the lower receiver of a short-barreled rifle, and the upper receiver of a second short-barreled rifle.
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JOHNSON, 44, of Monticello, New York, is charged with conspiracy to distribute and possess with intent to distribute over 1,000 kilograms of marijuana, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; possession of a short-barreled rifle in furtherance of the narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison to be served consecutively to any sentence for the underlying conspiracy and a maximum sentence of life in prison; unlawful possession of firearms, which carries a maximum sentence of 15 years in prison; unlawful possession of ammunition, which carries a maximum sentence of 15 years in prison; firearms trafficking, which carries a maximum sentence of 15 years in prison; unlawful interstate transfer of firearms, which carries a maximum sentence of five years in prison; and unlawful possession of body armor, which carries a maximum sentence of three years in prison.
FRANCIS, 35, of Monticello, New York, is charged with conspiracy to distribute and possess with intent to distribute over 1,000 kilograms of marijuana, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
COONEY, 57, of Scranton, Pennsylvania, is charged with unlawful interstate transfer of firearms, which carries a maximum sentence of five years in prison.
SANTINI, 45, of Milford, Pennsylvania, is charged with firearms trafficking, which carries a maximum sentence of 15 years in prison, and unlawful interstate transfer of firearms, which carries a maximum sentence of five years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI Hudson Valley Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sullivan County District Attorney’s Office, the New York State Police, and the Hudson Valley White Collar Crime Task Force.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kaiya Arroyo is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Superseding Indictment and the description of the Complaint and the Superseding Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Fort Wayne Man Sentenced to 60 Months in PrisonRead the Press Release
FORT WAYNE –Seth Bireley, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to theft of a firearm, announced United States Attorney Clifford D. Johnson.
Bireley was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, on or about February 24, 2023, and March 2, 2023, Bireley, who had multiple felony convictions, entered a residence and removed firearms and ammunition from the property of a deceased person without authority to do so.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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.
Former Walgreen’s Managers and Alleged Accomplices Indicted on Charges in Connection with a Series of Inside-Job Store RobberiesRead the Press Release
WASHINGTON – Two former store managers and two accomplices were charged today in a 15-count indictment in connection with a series of inside-job robberies at the Walgreen’s in Chinatown, announced U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division.
Michael Robinson, 33, of Maryland, Kamanye Williams, 24, London Teeter, 20, and Gianni Robinson, 26, all of Washington D.C., are charged with conspiracy to interfere with interstate commerce by robbery and interference with interstate commerce by robbery (Hobbs Act robbery). Other charges include brandishing a firearm during the commission of an act of violence, unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year, and aiding and abetting.
Michael Robinson and Teeter were employed as store managers at the Walgreens, located at 801 7th Street Northwest. Michael Robinson has consented to pretrial detention. Teeter was arrested this morning. Gianni Robinson is scheduled for a detention hearing on February 23, 2024. Williams had his initial appearance on February 21, 2024 and is scheduled for a detention hearing on February 28, 2024
According to court documents, the Robinsons, Teeter, and Williams devised a plan to carry out armed robberies of the Walgreens store in Chinatown nearly once a month, beginning in July 2023, when either Michael Robinson or London Teeter were working. As store managers, Michael Robinson and Teeter knew the timing of cash transfers within the business. In each robbery, a masked gunman entered the store, forced an employee into the manager’s office or accessed the manager’s office using a code provided by Michael Robinson and Teeter. The gunman then robbed the employees and fled through a rear exit. Michael Robinson and Teeter took turns pretending to be the “victim” manager on duty, knowing that the robberies would be captured on internal surveillance. During the September 2, 2023 robbery, Michael Robinson asked Williams to hit him with a firearm in order to make the robbery seem more believable.
It is further alleged that other robberies of the store were planned but not carried out. Messages between Gianni Robinson, Michael Robinson, and Kamanye Williams show the co-conspirators constantly surveilled the Walgreens to see the amount of cash in the manager’s office and the location of armed security guards, in order to determine the best times to rob the store.
This case is being investigated by the FBI’s Violent Crimes Task Force. Assistance is being provided by the Metropolitan Police Department (MPD). It is being prosecuted by Assistant U.S. Attorney Justin Song with the Federal Major Crimes section of the U.S. Attorney’s Office for the District of Columbia.
Former Primis Bank Manager Pleads Guilty to $2.4 Million Embezzlement SchemeRead the Press Release
RICHMOND, Va. – A Weems man pleaded guilty yesterday to designing and executing a scheme to defraud his employer, a local financial institution, by issuing fraudulent loans to other individuals, and thereafter using the loan proceeds for his own purposes.
According to court documents, James Stevens, 46, was employed at Primis Bank (formerly known as Sonabank, Eastern VA Bank, and Southside Bank) from 2000 to June 2023 as a Commercial Lender, Branch Manager, and Assistant Branch Manager. In his capacity as a Commercial Lender for Primis, Stevens had the authority to issue loans to borrowers on behalf of the bank, and he also had the ability to access customer accounts, open customer accounts, and transfer funds in and out of bank customers’ accounts.
Beginning in 2008, and continuing through June 2023, Stevens exploited his position of trust at Primis Bank to issue numerous fraudulent loans—on behalf of his unwitting bank employer—in the names and using the identities of numerous other individuals. Stevens would often create fraudulent documentation to support these loan applications, using the personal identifying information of multiple Primis Bank customers in the process. Stevens would then use proceeds of these fraudulently issued loans to make payments on other (previously issued) fraudulent loans, to pay himself, or to pay others he associated with. Through this loan scheme, Stevens caused a loss to Primis Bank of more than $2.3 million.
Stevens also exploited his personal relationship with one Primis Bank customer to access the customer’s personal savings and checking accounts and to withdraw funds from the customer’s accounts. Stevens used his access to the customer’s accounts to change the mailing address on the accounts so that the bank customer remained unaware of the thefts, which eventually totaled more than $97,000. Altogether, the frauds and thefts perpetrated by Stevens resulted in a total loss to Primis Bank of $2,477,643.
Stevens is scheduled to be sentenced on May 30, 2024. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Robert Day are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-10.
Former DEA Task Force Officer Sentenced to Prison for Unlawfully Assaulting Individual During ArrestRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DUSTIN GENCO, a former investigator with the Nassau County District Attorney’s Office and Task Force Officer with the U.S. Drug Enforcement Administration (“DEA”), was sentenced by U.S. Magistrate Judge James L. Cott to three months in prison for depriving an individual (the “Victim”) of his constitutional right to be free from excessive force. On October 20, 2022, GENCO assaulted the Victim while the Victim was restrained in handcuffs. GENCO pled guilty on August 2, 2023, before Judge Cott to deprivation of rights under color of law.
U.S. Attorney Damian Williams said: “Today, former DEA Task Force Officer Dustin Genco was sentenced to prison for depriving a restrained individual of his constitutional right to be free from excessive force. Genco abused his authority as a law enforcement officer two-fold: First, he broke a bright-line rule when he kicked in the chest a handcuffed and restrained man. Then, he lied repeatedly to his supervisor about his conduct and falsified an official report about the arrest. When an officer acts outside the law, he must be held to account in order to protect the rule of law and the public trust in the countless law-abiding officers and agents who put their own safety on the line every day. I commend the hard work of the career prosecutors of my Office and our law enforcement partners at the DOJ Office of the Inspector General for their commitment to upholding the rule of law and ensuring justice in this case.”
According to public documents and statements made in court:
On or about October 20, 2022, GENCO was employed as a Task Force Officer with the DEA. GENCO was assigned to assist with the arrest of the Victim. During the arrest, GENCO assaulted the Victim by forcefully kicking the Victim in the chest and stomach area while the Victim was restrained in handcuffs, resulting in injury to the Victim. After the assault, GENCO intentionally misled a federal law enforcement agent about the assault, claiming that the Victim had continued to resist arrest after he was handcuffed. GENCO also failed to truthfully disclose in an official report that he had kicked the Victim in the chest and stomach area while the Victim was restrained in handcuffs.
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In addition to the prison term, DUSTIN GENCO, 51, of Seaford, New York, was sentenced to one year of supervised release and a $10,000 fine. The judgment also included GENCO’s agreement to permanently cease and refrain from seeking or obtaining law enforcement employment on behalf of any federal, state, or local entity.
Mr. Williams praised the outstanding investigative work of the Department of Justice, Office of the Inspector General.
The prosecution is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Mitzi Steiner is in charge of the prosecution.
Former CFO of Claddagh Irish Pubs Parent Company Sentenced to Imprisonment for Defrauding States Out of More Than $1 Million in Sales Tax RevenueRead the Press Release
CLEVELAND – Ciaran Dillon, 57, of Orlando, Florida, was sentenced to 18 months imprisonment and ordered to pay a $25,000 fine by U.S District Judge Christopher A. Boyko after pleading guilty to defrauding multiple states of sales tax revenue where the restaurant chain operated. Dillon, was the former Chief Financial Officer (CFO) of CDG Acquisition, LLC (CDG), a company registered in the State of Ohio, which owned “The Claddagh Irish Pubs” chain of restaurants.
According to court documents, from January 2010 through May 2018, the defendant, acting in his official capacity as CFO of CDG, directed a company accountant to pay certain states less sales tax than the true amount owed. Based on the defendant’s instruction, the accountant would edit the company's sales and sales tax figures, file false tax returns and pay states the amount instructed by the defendant. In total, the defendant defrauded the States of Indiana, Kentucky, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Wisconsin out of more than $1 million in sales tax revenue collected from CDG customers across fifteen restaurants.
The Court determined the defendant’s sentence after a review of factors unique to the case and the defendant, including the defendant’s role in the offenses and the nature of the crimes.
This investigation was conducted by the Federal Bureau of Investigation, Cleveland Division. The case was prosecuted by Assistant United States Attorney Alejandro A. Abreu.
Federal judge convicts Wyoming man for role in commercial sex activity in Billings, making false statements to law enforcementRead the Press Release
BILLINGS — A U.S. District Court judge on Feb. 20 convicted a Wyoming man for his role in arranging for commercial sex in Billings and then making false statements to federal investigators, U.S. Attorney Jesse Laslovich said today.
After a one-day bench trial on Feb. 20, U.S. District Judge Susan P. Watters found the defendant, Mark Jay Albrecht, 66, of Gillette, Wyoming, guilty of use of facility in interstate commerce in aid of racketeering and making a false statement as charged in a fourth superseding indictment. Albrecht faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on each crime.
The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for March 20 and continued Albrecht’s release pending further proceedings.
“Spinning a web of lies to federal agents about his efforts to engage in commercial sex activity has now made Albrecht a federal felon. His desire and actions to have commercial sex contributed to the sex trafficking of a minor, for which the trafficker was previously held accountable by this office. I applaud and thank our federal prosecutors, as well as the FBI, IRS, and Billings Police Department for their tenacity in holding Albrecht accountable for his deceit,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that on April 21, 2021, law enforcement responded to a report of possible commercial sex activity at the Quality Inn in Billings. Billings police officers knocked on the door of the suspect room and announced themselves. A woman, identified as Ashley Stella, of Reno, Nevada, Jane Doe 1, who was a minor at the time, and Albrecht emerged. Albrecht was seen buttoning up his shirt as he exited the room. Albrecht initially denied to police and FBI officers, who had responded to assist, that he was in the room for a sexual encounter and offered various stories about why he was there. Ultimately, Albrecht acknowledged going to the room to engage in commercial sex. Albrecht explained how he used a social media website to arrange for commercial sex and how he responded on Tryst using his cellphone. He showed law enforcement the cellphone messages setting up the meeting. Stella acknowledged in interviews that Albrecht was in the room for commercial sex, and that Jane Doe 1 traveled with her for the purpose of commercial sex. Following the events of April 21, 2021, law enforcement began a federal sex trafficking investigation.
As part of the sex trafficking investigation, Albrecht was issued a federal grand jury subpoena to testify about the events surrounding April 21, 2021. In anticipation of the grand jury appearance, Albrecht was invited to the U.S. Attorney’s Office for an interview in May 2021 to explain the grand jury process to him. FBI and IRS agents were present for that interview. Albrecht was informed several times that he was not a target of the investigation and that the only way he could get into trouble was to make false statements. Albrecht also was informed that making false statements to a federal agent was a crime. Despite these assurances, Albrecht repeatedly stated that he did not go to the Quality Inn for commercial sex but rather offered another story about why he was communicating with Stella. Albrecht never admitted he was soliciting commercial sex during his May 2021 interview, contrary to facts known by law enforcement. Stella was sentenced to eight years in federal prison for conviction of transportation of a minor to engage in prostitution.
The U.S. Attorney’s Office prosecuted the case. The FBI, IRS and Billings Police Department conducted the investigation.
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Federal Grand Jury Indicts Bowling Green Felon for Illegally Possessing a FirearmRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned an indictment on February 14, 2024, charging a Bowling Green man with possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Mike Delaney of the Bowling Green Police Department made the announcement.
According to the indictment, Christopher B. Cornell, 40, possessed a Taurus PT111 Millennium G2, nine-millimeter semiautomatic pistol, and ammunition. Cornell was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On February 18, 2019, in Warren Circuit Court, Cornell was convicted of third-degree burglary.
On October 19, 2015, in Warren Circuit Court, Cornell was convicted of third-degree assault and third-degree burglary.
The defendant appeared for his arraignment yesterday before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. The defendant remains in federal custody pending trial. If convicted, Cornell faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF Bowling Green Field Office and the Bowling Green Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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False Claims Act Settlements and Judgments Exceed $2.68 Billion in Fiscal Year 2023Read the Press Release
Settlements and judgments under the False Claims Act exceeded $2.68 billion in the fiscal year ending Sept. 30, 2023, Acting Associate Attorney General Benjamin C. Mizer and Civil Division Principal Deputy Assistant Attorney General Brian M. Boynton announced today. The government and whistleblowers were party to 543 settlements and judgments, the highest number of settlements and judgments in a single year. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $75 billion.
“Protecting taxpayer dollars from fraud and abuse is of paramount importance to the Department of Justice – and these enforcement figures prove it,” said Acting Associate Attorney General Mizer. “The False Claims Act remains one of our most important tools for rooting out fraud, ensuring that public funds are spent properly, and safeguarding critical government programs.”
The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus serves to safeguard government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits.
“As the record-breaking number of recoveries reflects, those who seek to defraud the government will pay a high price,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department's Civil Division. “The American taxpayers deserve to know that their hard-earned dollars will be used to support the important government programs and operations for which they were intended.”
Of the more than $2.68 billion in False Claims Act settlements and judgments reported by the Department of Justice this past fiscal year, over $1.8 billion related to matters that involved the health care industry, including managed care providers, hospitals, pharmacies, laboratories, long-term acute care facilities, and physicians. The amounts included in the $1.8 billion reflect recoveries arising only from federal losses, but in many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs. The recoveries in fiscal year 2023 also reflect the department’s focus on key enforcement priorities, including fraud in pandemic relief programs and alleged violations of cybersecurity requirements in government contracts and grants.
In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. Whistleblowers filed 712 qui tam suits in fiscal year 2023, and this past year the Justice Department reported settlements and judgments exceeding $2.3 billion in these and earlier-filed suits.
Representative examples of False Claims Act matters pursued by the government and whistleblowers are discussed below.
HEALTH CARE FRAUD
In fiscal year 2023, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, enforcement of the False Claims Act deters others who might try to cheat the system for their own gain, and in many cases, also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services.
Medicare Advantage Matters
The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program, including allegations that organizations participating in the program knowingly submitted or caused the submission of inaccurate information or knowingly failed to correct inaccurate information about the health status of beneficiaries enrolled in their plans to increase reimbursement. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries, the work of the Justice Department in this area is of critical importance.
The Cigna Group agreed to pay $172 million to resolve allegations that it knowingly submitted and failed to withdraw inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan enrollees to increase its payments from Medicare. The United States alleged that while Cigna engaged in a “chart review” program to submit additional diagnosis codes to Medicare for reimbursement, it failed to withdraw inaccurate or untruthful diagnosis codes previously submitted. The United States further alleged that Cigna paid vendors to conduct in-home assessments of enrollees, and then improperly reported diagnosis codes based solely on forms completed by those vendors without performing or ordering the diagnostic testing or imaging necessary to reliably diagnose the serious conditions reported.
Martin’s Point Health Care Inc. agreed to pay $22.5 million to resolve allegations that it knowingly submitted inaccurate diagnosis codes for its Medicare Advantage Plan enrollees that were not supported by the patients’ medical records to increase reimbursements from Medicare.
In addition to securing these settlements, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group, Independent Health Corporation, Elevance Health (formerly Anthem), and the Kaiser Permanente consortium.
Unnecessary Services and Substandard Care
The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care. The provision of such medical services not only wastes taxpayer funds but also can expose patients to harmful procedures and treatments or cause them to forego other potentially more effective treatments.
Cornerstone Hospital Medical Center and related entities agreed to pay $21.6 million to resolve allegations that the former long-term acute care facility knowingly submitted claims for services performed by unlicensed and unauthorized students, and services that were not provided or effectively worthless.
Smart Pharmacy Inc., SP2 LLC, and Gregory Balotin agreed to pay at least $7.4 million to resolve allegations that they unnecessarily added the antipsychotic drug aripiprazole to topical compounded pain creams to boost federal reimbursement for the compounded creams and waived patient copayments. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so.
Saratoga Center for Rehabilitation and Skilled Nursing Care, related entities, and operators and owners Leon Melohn, Alan “Ari” Schwartz, Jeffrey Vegh, and Jack Jaffa agreed to pay $7.1 million to resolve allegations that Saratoga Center delivered worthless services to residents, resulting in medication errors, unnecessary falls, and the development of pressure ulcers, and that the facility’s physical conditions deteriorated to such a degree that the facility did not consistently maintain hot water, have an adequate linen inventory, or dispose of solid waste.
Opioid Epidemic
The Justice Department has continued its pursuit of health care providers, pharmaceutical companies, pharmacies, and other entities that have played a role in contributing to and exacerbating the opioid crisis.
This year, the Justice Department filed a complaint in intervention in a whistleblower lawsuit against Rite Aid Corporation and various subsidiaries alleging that Rite Aid filled unlawful prescriptions for controlled substances in violation of the False Claims Act and the Controlled Substances Act. The United States alleges that from May 2014 through June 2019, Rite Aid knowingly filled unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone, fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions.
The Justice Department filed a proof of claim in the Chapter 11 bankruptcy action commenced by Endo Health Solutions Inc. and related corporate entities, alleging that Endo violated the FCA and caused hundreds of millions of dollars of losses to federal health care programs by causing the submission of false and fraudulent claims for prescriptions of Opana ER, a Schedule II opioid. The Department alleged that Endo used an aggressive marketing scheme that marketed Opana ER to high volume prescribers of opioids, including many prescribers who Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications.
Unlawful Kickbacks
Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program.
The Justice Department filed claims against multiple Modern Vascular office-based labs, affiliated companies, and its owner Yury Gampel, alleging that Gampel and the Modern Vascular defendants offered referring physicians various forms of remuneration, including the opportunity to invest in Modern Vascular office-based labs with the prospect of large monetary distributions, to induce them to refer their patients to Modern Vascular for the treatment of peripheral arterial disease. The complaint also alleged that Gampel pressured vascular surgeons and interventional radiologists employed at the Modern Vascular office-based labs to increase the number of invasive surgical procedures performed.
Cardiac Imaging Inc. and its founder, owner, and CEO Sam Kancherlapalli, agreed to pay $85.5 million to resolve allegations that, with Kancherlapalli’s oversight and approval, Cardiac Imaging paid kickbacks to cardiologists in the form of above-fair market value supervision fees, to induce those doctors to refer their patients to Cardiac Imaging for PET scans. The United States alleged that these fees substantially exceeded fair market value for the doctors’ services and included time the doctors were away from the Cardiac Imaging mobile scanning units or were not even on site.
Carter Healthcare LLC and its President Stanley Carter and Chief Operations Officer Bradley Carter agreed to pay $22.9 million to resolve allegations that Carter Healthcare improperly paid renumeration to physicians under the guise of medical directorships to induce referrals of home health patients.
The Justice Department announced two resolutions involving kickbacks relating to electronic health records (EHR). Modernizing Medicine Inc. (ModMed) agreed to pay $45.4 million to resolve allegations that it improperly solicited and received kickbacks from a lab company in exchange for recommending and arranging for ModMed’s users to utilize the lab company’s pathology lab services, conspired with the lab company to improperly donate ModMed’s EHR technology to health care providers, and paid kickbacks to its customers and other influential sources to recommend ModMed’s technology and refer potential customers to ModMed. The government further alleged that ModMed knew that its EHR technology did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under the Department of Health and Human Services’ EHR Incentive Programs. NextGen Healthcare Inc. agreed to pay $31.2 million to resolve allegations that it misrepresented the capabilities of certain versions of its EHR software by using an auxiliary product that was designed only to meet government certification criteria and otherwise was lacking in critical functionality. The government further alleged that NextGen provided unlawful remuneration in the form of credits, often worth as much as $10,000, along with tickets to sporting events and entertainment, that it gave to current customers whose recommendation of NextGen’s software led to a new sale.
The Justice Department also resolved numerous matters involving laboratories and their recruiters allegedly paying doctors kickbacks disguised as legitimate payments. Five corporate entities and ten individuals paid over $2.6 million to settle allegations of kickbacks for laboratory referrals, including sham investment distributions from management service organizations (MSOs). For example, executive Peggy Borgfeld agreed to pay $325,000 and be excluded from federal healthcare programs for five years to resolve allegations that she falsely certified to Medicare that certain laboratory testing claims complied with the Anti-Kickback Statute, and Dr. Chad Shelton, Dr. Michael Boedefeld, and their medical practice agreed to pay $396,360 to settle allegations of receiving MSO kickbacks in return for their laboratory referrals. These settlements are part of an ongoing investigation that to date has resulted in settlements with 43 physicians and recoveries of over $46 million.
Other Health Care Fraud
The Justice Department continued to pursue claims arising from alleged fraud in California’s Medicaid program in connection with coverage of the previously uninsured “Adult Expansion” population under the Patient Protection and Affordable Care Act. Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health, a county-organized health system, and seven providers in the system, Cottage Health System, Sansum Clinic, Community Health Centers of the Central Coast, Lompoc Valley Medical Center, Dignity Health, as well as Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, agreed to pay a combined total of $95.5 million to resolve allegations that they made or received payments that were not for “allowed medical expenses” under CenCal’s contract with the state, were pre-determined amounts that did not reflect fair market value, were duplicative of services already required to be rendered, and were unlawful gifts of public funds in violation of the state constitution.
BioTelemetry Inc. and its subsidiary CardioNet LLC, agreed to pay nearly $45 million to resolve allegations that they submitted claims for heart monitoring tests that were evaluated, in part, outside the United States, in violation of federal law. The United States further alleged that most of the offshore technicians tasked with reviewing heart test data did not have the basic qualifications to evaluate the tests in question.
Lincare Holdings Inc. agreed to pay $29.0 million to resolve allegations that it fraudulently billed Medicare Advantage plans and Medicare Part B for oxygen equipment rental payments. While many Medicare Advantage plans and Medicare Part B “capped” oxygen equipment rental payments at 36 months, Lincare admitted that it improperly billed government health care plans for oxygen equipment rental payments and co-payments after it had already received three years of payments. Lincare not only admitted to improperly billing Medicare for oxygen equipment rentals, but also admitted to improperly collecting co-pays from beneficiaries and, as part of the settlement, agreed to timely identify and refund all beneficiary co-pays that it had improperly collected, and to implement additional corrective actions in order to ensure appropriate billing going forward.
Advanced Bionics LLC, agreed to pay more than $11.0 million to resolve allegations that it misled federal health care programs regarding the radio-frequency (RF) emissions generated by some of its cochlear implant processors, which can potentially interfere with other devices that use the same RF spectrum, such as telephones, alarm and security systems, televisions, and radios. The settlement resolved allegations that the company, in submitting pre-market approval applications to the Food and Drug Administration for the company’s Neptune and Naida cochlear implant processors, made false claims regarding the methods it used in its RF emissions tests.
PROCUREMENT FRAUD
The government continued its pursuit of fraud matters involving the purchase of goods and services in connection with military and similar programs. Fraud in these programs not only squanders government funds, but also potentially puts servicemembers at risk.
In one of the largest procurement settlements ever, Booz Allen Hamilton Holding Corporation paid $377 million to resolve allegations that it improperly billed its government contracts for costs incurred in its non-governmental commercial and international contracts. The government alleged that Booz Allen improperly allocated to government contracts indirect costs associated with its non-government contracts that either had no relationship to the government contracts or were allocated to those contracts in disproportionate amounts. Further, the United States alleged that Booz Allen failed to disclose to the government the method by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen was alleged to have obtained reimbursement from the United States for the costs of non-governmental activities that provided no benefit to the United States.
L3 Technologies Inc. agreed to pay $21.8 million to resolve allegations that in contract proposals for equipment provided to the military, L3 included the cost of certain items, such as nuts and bolts, twice.
The Boeing Company agreed to pay $8.1 million to resolve allegations that it submitted false claims and made false statements in connection with U.S. Navy contracts to manufacture the V-22 Osprey, a military aircraft. The United States alleged that Boeing failed to comply with certain contractual manufacturing specifications in fabricating composite components for the V-22, including failing to perform monthly testing on autoclaves used in the composite cure process.
PANDEMIC FRAUD
In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), which was enacted to provide loans guaranteed by the U.S. Small Business Administration (SBA) to eligible small businesses for payroll, rent, utility payments, and other business-related costs. Over the last year, the department has resolved approximately 270 False Claims Act matters, recovering over $48.3 million in connection with improper PPP loans. The department has also pursued other pandemic related fraud, including schemes by health care providers to profit from the pandemic by billing for unnecessary tests and services.
Victory Automotive Group Inc. agreed to pay more than $9 million to resolve allegations that it provided false information in support of a PPP loan forgiveness application. Although the company’s application certified it was a small business with fewer than 500 employees, Victory shared common operational control with dozens of automobile dealerships across the country, totaling more than 3,000 employees. For that reason, it was not eligible for the PPP loan it received, which was later forgiven in full.
Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan even though it was ineligible for the loan because it was a required registrant under the Foreign Agent Registration Act.
John Seasholtz and four agricultural companies he owns agreed to pay more than $600,000 to resolve allegations that they violated the False Claims Act by improperly inflating the employee headcount on the companies’ PPP loan applications by impermissibly including non-employee contract workers who were, in fact, employed by other, unrelated entities. The companies also agreed to repay loan funds relating to the ineligible contractors, thereby relieving the SBA of liability for approximately $1.8 million in loan guarantees.
In April 2023, the Department filed two proofs of claim in the Chapter 11 bankruptcy action commenced by Kabbage Inc., doing business as KServicing, alleging violations of the FCA in connection with thousands of federally guaranteed PPP loans that were approved or processed by Kabbage. In the first proof of claim, the United States alleged that Kabbage systemically miscalculated tens of thousands of PPP loans, causing the SBA to guarantee loans in inflated amounts that exceeded what borrowers were eligible to receive under program rules. In its second proof of claim, the United States alleged Kabbage knowingly failed to implement appropriate fraud controls to comply with applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements, resulting in fraudulent claims for PPP processing fees, in addition to false claims for loan forgiveness and guarantees on fraudulent loans. The United States alleged that as a result of these schemes the government suffered losses in excess of $60 million.
The Justice Department filed claims against Patrick Britton-Harr, Provista Health LLC, and multiple laboratory companies owned by him for submitting claims for laboratory tests that were not ordered by health care providers, not medically necessary, or not performed. In its complaint, the United States alleged Britton-Harr owned and operated multiple corporate entities that allegedly sought to profit from the COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wider array of medically unnecessary respiratory pathogen panel tests, many of which were never ordered by treating physicians.
CYBER-FRAUD INITIATIVE
The Department’s effort to combat cybersecurity threats includes the Civil Cyber-Fraud Initiative, which was announced in October 2021. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.
Jelly Bean Communications Design LLC and its manager paid $293,771 to resolve allegations that they failed to secure personal information on a federally funded Florida children’s health insurance website, which Jelly Bean created, hosted, and maintained. The settlement resolved allegations that, contrary to its representations and commitments, Jelly Bean did not provide secure hosting of applicants’ personal information and instead knowingly failed to properly maintain, patch, and update the software systems. The site was attacked, potentially exposing the information of 500,000 applicants.
The Justice Department also settled for over $4 million with Verizon Business Network Services LLC, which disclosed and remediated cybersecurity failures on contracts to provide trusted internet connections to the General Services Administration. In connection with the settlement, the company took a number of significant steps entitling it to credit for cooperating with the government, including providing the government with a written self-disclosure, initiating an independent investigation and compliance review of the issues, and providing the government with multiple detailed supplemental written disclosures.
OTHER FRAUD RECOVERIES
The judgments, settlements, and lawsuits announced during fiscal year 2023 involved a variety of other programs and schemes that reflect the diversity of the government’s False Claims Act enforcement efforts.
GCI Communications Corp. agreed to pay $40 million to resolve allegations that it inflated its prices and violated Federal Communications Commission competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program. The program provides funding each year to assist rural health care providers with their telecommunications needs. The United States alleged that GCI failed to comply with FCC regulations that governed how telecommunications companies must competitively bid for these contracts and how prices must be calculated to receive subsidies, and as a result GCI received inflated subsidy payments.
International Vitamins Corporation agreed to pay $22.8 million for defrauding the United States by misclassifying more than 30 of its vitamin and nutritional supplements under the Harmonized Tariff Schedule in order to avoid paying customs duties. IVC admitted that even after it retained a consultant who informed IVC of its wrongful conduct, IVC did not implement the correct classifications for over nine months and never remitted duties that it had underpaid to the United States because of its misclassification.
Yale University and Dr. John Krystal agreed to pay $1.5 million to resolve allegations that they failed to disclose certain patents and failed to share patent royalties with the Department of Veteran Affairs (VA) for inventions made by Dr. Krystal when he worked for both institutions. Dr. Krystal was employed part time both at Yale and the VA, and those institutions agreed to promptly disclose to each other all joint inventions.
HOLDING INDIVIDUALS ACCOUNTABLE
The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporations. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system. In addition to some of the recoveries identified above, the following are further examples of recoveries involving individuals.
Dr. Joel Aronowitz, Daniel Aronowitz, and Joel A. Aronowitz, M.D., a medical corporation, and other parties paid $23.9 million to resolve allegations that, among other things, they falsified the place of service for skin grafts to fraudulently maximize reimbursements and failed to properly dispose of unused portions of single-use skin graft materials and, instead, used and billed them in later procedures involving other Medicare and Medicaid beneficiaries.
Margarita Howard and her company HX5 LLC, along with affiliated joint venture HX5 Sierra LLC, paid the United States approximately $7.8 million to resolve allegations that they knowingly provided false information to the SBA relating to HX5’s and HX5 Sierra’s eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals.
Dr. John Y. Chung and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. agreed to pay $6.6 million to resolve allegations that they submitted false claims for Mohs dermatological procedures that were billed as if both the surgery and pathology portions of the procedures were performed by the doctor, when in fact at least one portion was often performed by other individuals.
RECOVERIES IN WHISTLEBLOWER SUITS
Of the more than $2.68 billion in settlements and judgments reported by the government in fiscal year 2023, over $2.3 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the government paid out over $349 million to the individuals who exposed fraud and false claims by filing qui tam actions.
The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with 712 qui tams filed this past year — an average of more than 13 new cases every week.
“We are grateful for the hard work and courage of whistleblowers who play a critical role in identifying fraud, often at substantial risk to themselves,” said Principal Deputy Assistant Attorney General Boynton. “Our efforts to ensure that public funds are spent properly continues to benefit greatly from their actions.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.
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Principal Deputy Assistant Attorney General Boynton also expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. He said, “The accomplishments announced today are a testament to the extraordinary dedication and skill of individuals across the nation who work tirelessly to protect taxpayer dollars from fraud and abuse. These individuals serve in the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that support this important work.”
Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
FY2023 StatisticsEssex County Member of Newark Drug Trafficking Organization Responsible for Distribution of over 1 Kilogram of Heroin Sentenced to 210 Months in PrisonRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 210 months in prison for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced today.
Furad Loyal, 42, of Newark, was convicted at trial on May 9, 2023, before U.S. District Judge Susan D. Wigenton on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Wigenton imposed the sentence on Feb. 21, 2024, in Newark federal court.
According to documents filed in this case and the evidence at trial:
Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash.
From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO.
In addition to the prison term, Judge Wigenton sentenced Loyal to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to the sentencing. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.
This case is part of the original Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the DEA’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.
Effingham Man Sentenced to Federal Prison for Attempted Sex Crimes Against a MinorRead the Press Release
BENTON, Ill. – A district judge sentenced an Effingham man to spend 10 years in federal prison after he admitted to soliciting sex online from a purported minor in exchange for money.
John S. Harmon, 65, pleaded guilty to attempted commercial sex trafficking of a minor and solicitation of child pornography.
“Thanks to the FBI’s proactive efforts in an undercover online investigation, another child predator was sentenced to spend a decade behind bars,” said U.S. Attorney Rachelle Aud Crowe. “We will continue to work together to apprehend these manipulative and dangerous offenders.”
The charges stemmed from an undercover investigation by an FBI agent who claimed to be a 15-year-old minor in an online discussion forum. According to court documents, Harmon began speaking to the undercover agent posing as a purported minor from May through June 2021. During conversations, he solicited the 15-year-old purported minor and an 11-year-old purported minor for sex in exchange for money. In addition, Harmon solicited nude images of both the purported minors.
“Our proactive efforts to protect children resulted in another offender being stripped of his ability to harm a member of our most vulnerable population,” said FBI Springfield Special Agent in Charge David Nanz. “This sentence underscores the FBI’s unwavering dedication to investigate and arrest those who seek to harm our children.”
FBI Springfield Field Office led the investigation, and Assistant U.S. Attorneys Casey Bloodworth and David Sanders prosecuted the case on behalf of the Government.
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 Department of Justice. 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.
Doctor to Pay Nearly $700,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A doctor in Ramsey, New Jersey, has agreed to pay nearly $700,000 to resolve allegations that he and his practice violated the False Claims Act, U.S. Attorney Philip R. Sellinger announced today.
Arun Sehgal and his medical practice, Preventive & Diagnostic Medical Center P.A., have agreed to pay $693,490 plus interest to resolve allegations that they violated the False Claims Act by upcoding physician services, billing for more services than they could possibly provide in one day, and billing for services that Sehgal never provided. Sehgal is the former medical director at the New Jersey Veterans Memorial Home in Paramus, New Jersey.
The settlement announced today resolves three sets of allegations from Jan. 1, 2017, to June 1, 2022:
- The defendants regularly upcoded certain Current Procedural Terminology (CPT) codes typically used to report more complex services, or services longer in duration, relating to the evaluation and management of patients. Upcoding is alleged fraudulent medical billing in which a claim is submitted for payment regarding a service that is more expensive than the service that was performed.
- The defendants knowingly submitted claims to Medicare for services that Sehgal did not provide to patients by regularly billing for impossible days. An impossible day occurs when a physician purports to provide such a high volume of services or procedures in one day that there is no way the physician reasonably could have performed them all. For example, on March 2, 2018, the time associated with CPT codes billed by the defendants for services that Sehgal provided exceeded 43 hours.
- Sehgal allegedly purported to provide services to Medicaid beneficiaries in New Jersey on days when Sehgal was not physically in the United States.
The government is represented by Assistant U.S. Attorney Robert L. Toll of the U.S. Attorney’s Office, District of New Jersey’s Opioid Abuse Prevention and Enforcement Unit, and Trial Attorney Daniel Meyler of the Department of Justice’s Civil Division Fraud Section, with assistance from HHS-OIG.
The government’s pursuit of this matter illustrates its efforts to combat healthcare fraud. One of the strongest 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 the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
sehgal.settlement.pdfDistrict Man Sentenced to 29 Years in Prison for April 2020 KillingRead the Press Release
WASHINGTON – Ravel Mills, 29, of Washington D.C., was sentenced today to 29 years in prison for the murder of Toussaunt Strong on April 18, 2020, in the 3400 block of 24th Street SE. The sentence was announced by U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On October 3, 2023, a jury convicted Mills of second-degree murder while armed, possession of a firearm during the commission of a crime of violence, and carrying a pistol without a license.
According to the evidence presented at trial, Toussaunt Strong, 28, of Clinton, Maryland, was outside of his father’s home in the Shipley Terrace neighborhood shortly before 7:00 pm on April 18, 2020. The defendant encountered Mr. Strong after he exited a nearby home and then pointed a weapon at him. In response, Mr. Strong ran away. The defendant then began to chase Mr. Strong up the 3400 block of 24th Street SE. As Mills got closer to Mr. Strong, he pulled his jacket hood over his head before shooting Mr. Strong. Video cameras captured the chase however, the shooting was not captured on camera. There were no eyewitnesses to the murder. The government presented video surveillance, circumstantial, and motive evidence in securing the conviction.
Under the Voluntary Sentencing Guidelines, Mills faced a sentencing range of 144 to 288 months for second-degree murder while armed, 36 to 84 months for the possession of a firearm during the commission of a crime of violence, and six to 24 months for the carrying a pistol without a license. The Honorable Michael K. O’Keefe sentenced Mills to 288 months for second degree murder while armed, 60 months for possession of a firearm during the commission of a crime of violence, and 24 months for the carrying a pistol without a license. He further ordered that the time for the possession of a firearm during the commission of a crime of violence run consecutive to the murder.
In announcing the sentencing, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Laura Bach and Sharon Donovan, Deputy Chiefs of the Homicide Section; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Jennifer Clark and former Victim/Witness Advocate Marcey Rinker; Supervisory Victim/Witness Service Coordinator Katina Adams-Washington; Paralegal Specialists Mabry Johnson, Meridith McGarrity, Grazy Rivera and Stephanie Gilbert; and Supervisory Litigation Technology Specialists Leif Hickling, Maisha Treadwell, and Charlie Bruce.
Finally, they commended the work of Assistant U.S. Attorney Jack Korba who investigated and indicted the case and Assistant U.S. Attorneys Miles Janssen and Andrea Antonelli who prosecuted the case.
Cranston Man Sentenced for Role in Conspiracy to Ship Cocaine into Rhode IslandRead the Press Release
PROVIDENCE, RI – A Cranston man has been sentenced to two years in federal prison for his role in a drug trafficking conspiracy that shipped upwards of 100 kilograms of cocaine into Rhode Island from Puerto Rico, announced United States Attorney Zachary A. Cunha.
Hector G. Rios pleaded guilty on May 9, 2023, to a charge of conspiracy to possess with the intent to distribute cocaine. He was sentenced today by U.S. District Court Judge William E. Smith to 24 months of incarceration to be followed by three years of federal supervised release.
At the time of his guilty plea, Rios admitted to a federal judge that, on behalf of leaders of a drug trafficking organization, he accepted multiple packages containing kilos of cocaine shipped to his residence from Puerto Rico, which in turn he delivered to leaders of the organization.
According to court documents, between December 2019 and July 2020, Rios received packages shipped through the U.S. Postal Service containing a total of at least five kilos of cocaine.
The United States Postal Inspection Service determined that, at the direction of members of the drug trafficking operation, over sixty Priority Mail packages containing one or more kilograms of cocaine were shipped from different post offices in Puerto Rico to various addresses in Woonsocket, RI.
The matter was investigated by the United States Postal Inspection Service and the Rhode Island High Intensity Drug Trafficking Area Task Force.
The case was prosecuted by Assistant U.S. Attorneys Christine D. Lowell, Denise M. Barton and Stacey A. Erickson.
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