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Tuesday 19 December 2023
New Yorker Guilty of Defrauding 50+ Investors in Pre-IPO Scam SentencedRead the Press Release
COLUMBUS, Ga. – The CEO of a New York-based venture capital firm who conspired to defraud more than 50 investors of millions of dollars in a pre-IPO scam was sentenced to prison today for his crime.
George Iakovou, 30, of New York, New York, was sentenced to serve 97 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land today. Iakovou pleaded guilty to one count of conspiracy to commit wire fraud on Aug. 8. Iakovou is not eligible for parole.
“George Iakovou’s financial scheme and lies harmed people, causing irreparable damage to his victims,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level in the Middle District of Georgia will continue to do everything in our power to hold con artists accountable for their crimes.”
“George Iakovou’s greed will have an everlasting effect on the victims he defrauded,” said Resident Agent in Charge Clint Bush of the U.S. Secret Service’s Albany, Georgia, Resident Office. “The United States Secret Service will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.”
According to court documents, in July 2021, the U.S. Secret Service (USSS) began investigating a pre-IPO (initial public offering) scheme orchestrated by Iakovou, the CEO of Vika Ventures LLC, a boutique venture capital firm headquartered in New York which purported to specialize in pre-IPO investments in various early and late-stage private companies.
Iakovou advertised that Vika had access to buy pre-IPO shares in private companies such as Palantir, Airbnb, SpaceX and Stripe. He claimed that once these private companies went public and the mandatory six-month lockout period expired, Vika would distribute the purchased shares to the investors. In fact, Iakovou had neither access to pre-IPO shares in the advertised companies nor owned the shares at the time of the solicitations. While Iakovou did take the victim-investors’ money, he did not purchase or acquire any of the promised shares. Iakovou established fake email domains, posed as representatives from private equity brokerage firms and created fake bank statements among other tricks to carry out his fraud scheme.
USSS identified more than 50 victim-investors from across the country who provided capital to Vika between Jan. 2020 and Dec. 2021, including two victims in the Middle District of Georgia. A review of bank records for Vika’s investor account showed that identified victim-investors paid Vika approximately $5,958,505 for the purchase of pre-IPO shares of select private companies, but none received their promised shares. Iakovou rerouted the money to several accounts, including personal bank accounts, and used the money for private jet charters, cars, home furnishings, artwork, luxury clothing and accessories. For example, Iakovou spent $135,528 on a 2021 Corvette Stingray and more than $500,000 on luxury watches, including $231,799 on a single Patek Philippe timepiece.
This case was investigated by the U.S. Secret Service.
Assistant U.S. Attorney Christopher Williams prosecuted the case.
New Jersey Man Sentenced to 168 Months for Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Richard “Richie” Sinde, age 59, of Fort Lee, New Jersey, was sentenced today to 168 months in prison, to be followed by 5 years of supervised release, for conspiring to traffic about 15 kilograms of cocaine in March and April 2021.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Sinde, and Jeffrey Civitello Sr. and Jeffrey C. Civitello Jr., both of Schenectady, New York, were convicted on all counts following an 8-day trial in April 2023. Sinde has prior federal convictions for heroin trafficking and unauthorized use of stolen credit cards, and prior state convictions for arson, enterprise corruption, conspiracy, and criminal tax fraud.
The trial evidence demonstrated a conspiracy between five men: the three defendants on trial, as well as Christopher J. Kelly, of Brooklyn, New York, and Robert J. Ingrao, of Lodi, New Jersey.
As part of the conspiracy, Kelly and Sinde delivered 3 kilograms of cocaine to Civitello Sr. in Schenectady on March 29, and Kelly and Sinde an additional 3 kilograms to Civitello Sr. on March 31. Also on March 31, the Civitellos ordered more cocaine and suggested that Kelly use a 2018 Jeep Grand Cherokee owned by Civitello Jr., which contained, in its trunk, a sophisticated, hidden compartment, also known as a “trap.” Unbeknownst to the conspirators, the DEA had placed a court-authorized tracker on the Jeep several months prior, as part of an investigation of Civitello Jr.
Sinde then drove the Jeep from Schenectady to Fort Lee, and the following evening met Kelly in Breezy Point, New York, on the Rockaway Peninsula, where Kelly and Sinde loaded up the Jeep’s hidden compartment with 9 kilograms of cocaine to be delivered the following day to the Civitellos in Schenectady.
The following day, on April 2, 2021, Ingrao went to Sinde’s house and got into the blue Jeep, driving it north on Interstate 87. A New York State Police Trooper, at the DEA’s request, conducted a stop on Ingrao in Greene County. The Trooper then located 9 kilograms of cocaine in the Jeep’s hidden compartment.
As part of the conspiracy, the Civitellos were arranging for a “trap” to be installed in another Jeep used by Sinde, so that Sinde could continue to traffic drugs to the Civitellos after Kelly went to state prison for a prior cocaine case; they abandoned that plan following the seizure of 9 kilograms of cocaine from Civitello Jr.’s Jeep on April 2.
United States District Judge Mae A. D’Agostino previously imposed the following sentences in this case:
- Civitello Sr. was sentenced to 120 months in prison, to be followed by a 4-year term of supervised release.
- Kelly was sentenced to 41 months in prison, to be followed by a 4-year term of supervised release, and to pay a $25,000 fine.
- Ingrao was sentenced to 37 months in prison, to be followed by a 3-year term of supervised release.
Civitello Jr. is scheduled to be sentenced on March 5, 2024.
This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police.
Assistant U.S. Attorneys Michael Barnett and Dustin C. Segovia are prosecuting this case.
New Hampshire Man Sentenced to over Six Years for Role in Methamphetamine ConspiracyRead the Press Release
BOSTON – A Manchester, N.H. man was sentenced today in federal court in Boston to his role in a multi-state methamphetamine trafficking conspiracy.
Anthony Elwell, 49, was sentenced by U.S. District Judge Denise J. Casper to 78 months in prison and five years of supervised release. In July 2023, Elwell pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of distribution and possession with intent to distribute methamphetamine.
Elwell was indicted in May 2021 along with three other individuals, Andrew Lunn, Mark Daileanes and William Velez. On four occasions between June and September 2020, Lunn sold pure methamphetamine to a cooperating witness in amounts ranging from 100 to almost 280 grams. Velez supplied Lunn with the methamphetamine for each of those deals. For one of the deals, in July 2020, Elwell provided Daileanes with money to purchase 280 grams of methamphetamine from Lunn. All of Elwell’s co-defendants have pleaded guilty. The final defendant is scheduled to be sentenced on Dec. 20, 2023.
Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration in New England made the announcement today. The New Hampshire State Police and the Everett, Nashua (N.H), Merrimack (N.H.), Litchfield (N.H), and Manchester (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.
New Castle Resident Pleads Guilty to Drug Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – A resident of New Castle, Pennsylvania, pleaded guilty in federal court to federal drug trafficking and firearms charges, United States Attorney Eric G. Olshan announced today.
Maurice Collier, age 33, pleaded guilty before Senior United States District Judge David Stewart Cercone.
In connection with the guilty plea, the court was advised on September 17, 2020, Collier distributed cocaine base. In addition, on November 4, 2020, Collier possessed with the intent to distribute quantities of fentanyl, heroin, methamphetamine, cocaine, and cocaine base, and he possessed a firearm in furtherance of that drug trafficking crime.
Judge Cercone scheduled sentencing to occur on April 30, 2024, at 1:00 p.m.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Lawrence County Drug Task Force, the New Castle Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in 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 of Justice 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.
Monroe County man sentenced to 235 months in Federal prisonRead the Press Release
MOBILE, AL – A Monroe County man was sentenced on December 1, 2023 to 235 months in prison for two counts of possession of methamphetamine with intent to distribute.
According to court records, Charles Brian Stabler, 47, of Monroeville, was convicted in a jury trial in July of 2023 with possessing methamphetamine for distribution on two separate occasions, one in 2019 and the other in 2021. On January 29, 2019, Stabler was stopped by police driving in Monroeville and four individual packages of methamphetamine were discovered in the vehicle. Stabler was also convicted of possessing nearly 9 ounces of methamphetamine discovered during a search warrant executed in Frisco City on August 4, 2021. Evidence showed that Stabler was distributing methamphetamine in the days leading up to the search. At the time of the August 4, 2021 arrest, Stabler was on supervised release for a prior federal conviction for being a felon in possession of a firearm. Stabler has an extensive criminal history, dating back to the 1990’s.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Monroe County Sheriff’s Office investigated the case, assisted by members of the Alabama Drug Enforcement Task Force, the Alabama Law Enforcement Agency and ATF.
Assistant U.S. Attorneys Tandice Blackwood and George May prosecuted the case on behalf of the United States.
Member of Violent Gang Pleads Guilty to Racketeering and Robbery OffensesRead the Press Release
BOSTON – A Quincy man pleaded guilty yesterday in connection with his role in Cameron Street, a violent Boston gang.
Michael Nguyen, a/k/a “Asian,” 23, pleaded guilty to one count of conspiracy to interfere with commerce by threats or violence and one count of conspiracy to participate in a racketeering enterprise, more commonly referred to as RICO or racketeering conspiracy. U.S. Senior District Court Judge William G. Young scheduled sentencing for March 20, 2024.
According to court documents, Cameron Street is a violent gang based largely in the Dorchester section of Boston that used violence and threats of violence to preserve, protect, and expand its territory, promote a climate of fear and enhance its reputation. Cameron Street members possess, carry and use firearms to murder and assault gang rivals as well as protect narcotics and drug proceeds.
Cooperating witnesses identified Nguyen as a valued a member of Cameron Street who, among other duties, often infiltrated rival gang territory to conduct surveillance for other members. In July 2018, Nguyen and two alleged co-defendants broke into the home of two victims – entering through the back door while wearing masks and dark hoodies and carrying firearms. One victim ran out of the front door of the house and called 911. A second victim was brought into the living room, punched in the head, had a gun put to their head and a pillow put in front of their face as Nguyen and others ransacked the house, demanding, “where’s the stuff, where’s the money, where’s your boyfriend?” Nguyen and his two alleged co-conspirators later fled the house in a silver pickup trick after stealing $2,000 in cash and a safe.
Nguyen and others were later observed driving away from the house. Officers pursued the truck until it abruptly stopped in Stoughton – colliding with the police cruiser. Nguyen and an alleged co-conspirator then exited the truck and fled the area. The alleged co-conspirator was quickly apprehended and a firearm was recovered from the scene.
The charges of RICO conspiracy and conspiracy to interference with commerce by threats or violence each provide for sentences of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher J. Pohl and Charles Dell’Anno of the Criminal Division are prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Maryland Marketing Company Owner and Texas Tax Return Preparer Charged with Tax Fraud SchemeRead the Press Release
A federal grand jury in Greenbelt, Maryland, returned a superseding indictment, unsealed last week, charging a Maryland man and a Texas man with conspiracy to defraud the United States, filing false income tax returns, aiding and assisting in the preparation of false tax returns and theft of government funds. The Maryland man is also separately charged with tax evasion, willful failure to file income tax returns and bank fraud.
According to the indictment, Orin Wayne Solomon, of Glenn Dale, Maryland, and Marquis Al Bey, also known as Al Bey or Alvin Hewett, of Forney, Texas, conspired with each other to prepare and file false tax returns on behalf of Solomon and another Maryland-based client of Bey’s tax preparation business, Creative Associates Inc. The indictment alleges that Solomon filed at least 15 false income tax returns between 2017 and 2022 on behalf of himself, his marketing business and two purported trusts he controlled. On these returns, Solomon allegedly sought nearly $65 million in refunds that he and his entities were not entitled to receive. After receiving one of the trust tax returns, the IRS allegedly issued a tax refund check for more than $10 million. Solomon allegedly used those funds to pay for cars, a house, silver coins, insurance policies and to pay off the mortgage on his personal residence. Solomon also allegedly transferred approximately $1 million of the fraudulent refund proceeds to Bey, who purchased a house in Texas.
The indictment further alleges that Solomon attempted to evade his income tax liabilities for numerous years between 2009 and 2021 by, among other means, using funds from a business bank account to pay personal expenses for himself, his wife and his children, registering a vehicle in the name of a purported trust and transferring his personal residence to another purported trust. The personal expenses that Solomon allegedly paid for from his business account included tuition for his children, personal training sessions, medical and dental expenses and expenses relating to his personal residence and a property that his wife owned. From 2017 through 2021, Solomon also allegedly did not file personal tax returns or pay taxes on income generated by his business, Anjacor Marketing Inc. (Anjacor).
The indictment further charges that in 2020, Solomon applied for a loan on behalf of Anjacor under the Small Business Administration’s Paycheck Protection Program (PPP), an initiative authorized by Congress to provide financial assistance to businesses impacted by the COVID-19 pandemic. As part of that application, Solomon allegedly provided a bank with false information about his company’s payroll, fraudulently causing the bank to extend a $229,012 PPP loan.
If convicted, Solomon and Bey each face a maximum penalty of five years in prison for conspiracy to defraud the United States, three years in prison for each false tax return count and 10 years in prison for theft of government funds. Solomon also faces a maximum penalty of 30 years in prison for bank fraud, five years in prison for each count of tax evasion and one year in prison for each of the failure to file charges.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maryland Financial Advisor Pleads Guilty to Stealing an Elderly Client’s Life SavingsRead the Press Release
Baltimore, Maryland – Eddy Blizzard, age 45, of Perry Hall, Maryland, pleaded guilty today to bank fraud, in connection with a fraud scheme in which he embezzled approximately $1 million from an elderly client’s retirement account.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office; and Southeast Region Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency, Office of Inspector General.
“This defendant perpetrated a heartless scheme that preyed on a vulnerable elderly victim, stealing more than a million dollars,” said United States Attorney Erek L. Barron. “We will continue to work with our law enforcement partners to bring to justice those who engage in these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to his plea agreement, Blizzard held several licenses that allowed him to operate as a registered broker and a registered investment adviser per the Financial Industry Regulatory Authority (“FINRA”). From 2003 to 2014, Blizzard was employed by a bank securities company (Bank 1) and from 2014 to 2017 he was employed by a bank investment services company (Bank 2), both in Maryland.
As detailed in the statement of facts, victim R.M. was a resident of Maryland and had attended school through the ninth grade. R.M. was 75 years old in January 2020. Beginning in 1963, R.M. went to work for a Baltimore based commercial air-conditioning company, where he enjoyed a successful career installing commercial grade air conditioning units around the country. R.M.’s employer offered him supervisory positions at the company, but R.M. declined because he was not able to read or write. R.M. was able to continue as an air conditioning technician by memorizing facts and figures and conceptualizing things visually. R.M. routinely worked approximately 15 to 30 hours of overtime per week during his career to make extra money. In 2003, after approximately 40 years of service with the air conditioning company, R.M. took a buyout and retired. Six months later, R.M. decided to invest his retirement funds to provide an inheritance for his grandchildren. R.M. sought investment advice from Bank 1, where he had his depository accounts.
Blizzard began working at Bank 1 shortly after R.M. began investing there and became R.M.’s financial adviser. Blizzard admitted that in about 2005, he told R.M. that he “went out on his own” meaning that Blizzard began working as an independent financial advisor and asked R.M. if R.M. wanted to leave Bank 1 and use Blizzard as a full-time financial advisor. Blizzard told R.M. that it would be a while before he had his own office, but he would continue to work out of the Bank 1 branch in Catonsville, Maryland. However, Blizzard never went to work as an independent financial advisor.
According to the plea agreement, approximately once a month, R.M. would drive from his new home in Chester, Maryland on the Eastern Shore to meet with Blizzard at Bank 1 in Catonsville, approximately one hour away; however, R.M. and Blizzard would meet in Blizzard’s car, not the office. R.M. continued to meet with Blizzard in this way over several years. These meetings lasted 30 to 45 minutes and R.M. was never told why they were meeting in Blizzard’s car.
Blizzard admitted that after he became R.M.’s financial advisor, he began asking R.M. for signed blank checks. R.M. recalled giving Blizzard 15-20 signed blank checks. Blizzard filled in the remaining information to include the payee, the amount, the date, and detailed memo section, but R.M. did not know what the checks were for. When R.M. received the cancelled checks in the mail, he knew Blizzard had written them out because R.M. recognized Blizzard’s handwriting. Blizzard used these checks for personal purposes, and not for any benefit of R.M. On approximately 12 different instances, R.M. went to his local bank to withdraw cash and was told there was not enough money in the account. R.M. would then call Blizzard to let him know about the deficiency. Blizzard then told R.M. to wait a day or two and there would be funds in the account to withdraw. R.M. did not ask Blizzard why there were no funds in the account or how those funds were replenished.
During his years of investment with Blizzard, R.M. believed that his retirement funds were protected, meaning they would not lose value – a fact that Blizzard reiterated to R.M. many times. R.M. also believed that Blizzard was handling payment of R.M.’s mortgage.
As detailed in the plea, in August 2019, R.M. realized there was a problem. R.M. was preparing to go on a family vacation and attempted to withdraw $1,000 to $1,500 in cash from the local Bank 1 branch and was told there were not sufficient funds in the account. R.M. attempted to contact Blizzard on his cell phone for a week with no response. R.M. then went to Blizzard’s Perry Hall, Maryland residence to talk to Blizzard in person, knocking on the front and back doors of Blizzard’s residence. No one came to the door, but R.M. received a voicemail from Blizzard, while he was still at Blizzard’s home. In the voicemail, Blizzard stated that the neighbors had called him and were complaining about the banging on the door. Blizzard further explained that all of R.M.’s money was gone, and that Blizzard had attempted suicide at his parent’s Myrtle Beach, South Carolina home, and was being hospitalized.
On September 19, 2019, Blizzard sent an email to R.M.’s son in response to a message R.M.’s son had sent via social media to Blizzard’s wife inquiring about what happened to R.M.’s money. Blizzard told R.M.’s son that he had made some bad investments and felt terrible about failing R.M. and that is why Blizzard tried to end his life. As explained in the plea, Blizzard admitted that, in fact, he was never hospitalized and did not attempt suicide in South Carolina and that the reason R.M.’s account lost value was almost entirely because Blizzard withdrew R.M.’s funds, and deposited those funds into his own bank account, to use for his own purposes.
A review of R.M.’s depository and investment accounts showed that between January 2013 and August 2019 there were a total of 242 distributions totaling approximately $1.4 million from R.M.’s retirement accounts. Of those, 129 distributions totaling $1.2 million were specifically requested from R.M.’s retirement accounts instead of being regular systematic annuity payments. After taxes and fees were deducted from those requested payments, approximately $1 million was deposited into R.M.’s Bank 1 account. This review also revealed that from April 2016 to April 2019 Blizzard deposited approximately 112 checks drawn on R.M.’s account into various bank accounts at Bank 1 and elsewhere that were held by Blizzard jointly with his wife or individually. These checks totaled approximately $848,000 and were written to Blizzard or Blizzard’s wife. A review of these checks showed that almost all had comments written on the memo section indicating various purposes such as payment of property taxes, construction, boat payments, and down payments for a new house.
In addition, on at least three occasions Blizzard stole R.M.’s Social Security income, which was directly deposited into R.M.’s checking account. On each occasion, once the payment was deposited into R.M.’s account, a check in the amount of $1,200 or more, signed by R.M. and made payable to Eddy Blizzard, was deposited in Blizzard’s personal account. Also, in the fall of 2019, R.M.’s home was put into foreclosure because Blizzard failed to make the mortgage payments on R.M.’s home as he had promised. R.M. died on March 20, 2020.
Blizzard faces a maximum sentence of 30 years in federal prison for bank fraud. As outlined in the plea agreement, Blizzard will also be required to pay restitution in the full amount of the victims’ losses, which is at least $1,030,000 and to forfeit $848,000 in the form of a money judgment. U.S. District Judge Stephanie A. Gallagher scheduled sentencing for Blizzard on April 30, 2024, at 11:30 a.m.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
United States Attorney Erek L. Barron commended the FBI and the FHFA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Aaron S.J. Zelinsky, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help seniors, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Man Charged for $2M COVID-19 Relief Fraud SchemeRead the Press Release
A criminal complaint was unsealed today charging a New Jersey man for his alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $2 million in COVID-19 relief money guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and to launder the money through a series of financial transactions.
According to court documents, Nikenson Jean Mathurin, also known as Nik Mathurin and Jean Mathurin, 44, of Sparta, allegedly submitted false and fraudulent loan PPP and EIDL Program applications on behalf of five purported business — Innovation Partners Plus Inc., Opulence Motor Group LLC, OMG Collision Corp. (doing business as Corsa Volante), Tricon Systems LTC, and America Home Care LLC — to four lenders. In support of these applications, Mathurin allegedly provided false and fraudulent documents and information to the lenders, including fabricated tax documents, payroll documents, and number of employees.
Mathurin also used the allegedly fraudulent proceeds to, among other things, send money between his various bank accounts, buy restaurant equipment unrelated to any of his purported businesses, pay for travel expenses, and transfer money to an account at an online vehicle auction company, which was used to buy luxury cars, motorcycles, and motorcycle parts.
Mathurin is charged with one count of wire fraud and one count of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on the wire fraud count and 10 years in prison on the money laundering count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) Northeast Region, and Special Agent in Charge Tammy Tomlins of the IRS Criminal Investigation’s (IRS:CI) Newark Office made the announcement.
FHFA-OIG and IRS:CI are investigating the case.
Trial Attorney David D. Hamstra of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime M. Cano for the District of New Jersey are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Man Pleads Guilty to Unlawful Shipping of Firearms to New YorkRead the Press Release
ALBANY, NEW YORK – Rodell Patterson, age 51, of Baton Rouge, Louisiana, pled guilty today to engaging in the firearms business without a license.
United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Patterson admitted to mailing eight packages containing a total of 10 firearms from Baton Rouge to the Capital Region in 2021 and 2022. Two of those firearms were recovered in June 2022 in the Troy, New York, apartment of a man on parole. Patterson acknowledged that he knew these transfers were unlawful, and he admitted to engaging in extensive conversations with the recipient of the packages about the types of firearms and the amount of payment.
At sentencing, Patterson faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Patterson still faces a charge in the United States District Court for the Middle District of Louisiana for possessing a firearm as a previously convicted felon. That charge is merely an accusation of which Patterson is presumed innocent unless and until proven guilty. If convicted of that charge, Patterson faces up to 15 years in prison.
ATF’s Albany Field Office investigated the case with assistance from the U.S. Attorney’s Office for the Middle District of Louisiana and ATF’s Baton Rouge Field Office. Assistant U.S. Attorney Jonathan S. Reiner is prosecuting the case.
Lodge Grass felon sentenced to two and one-half years in prison for illegally possessing firearmRead the Press Release
BILLINGS —A Lodge Grass man who admitted to illegally possessing a firearm because of prior felony convictions was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Paul Nomee III, 61, pleaded guilty in August to felon in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that on Jan. 11, the Bureau of Indian Affairs responded to a report of a car that had crashed outside of Crow Agency, on the Crow Indian Reservation. While en route, the officer passed a vehicle with significant damage and matching the description in the report. Nomee was driver and only occupant. The officer believed Nomee had active tribal arrest warrants and took him into custody. Nomee told the officer he had a pistol in a shoulder holster he was wearing. The officer found a loaded pistol in the holster. Nomee had two prior felony convictions and was prohibited from possessing firearms.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case. The BIA and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
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Local man heads to prison for sex trafficking teenagerRead the Press Release
HOUSTON – A 32-year-old man who resided in Houston has been sentenced to federal prison for trafficking a 15-year-old girl for commercial sex using force, fraud or coercion, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Giovanny Xavier Limon aka Ace or Ace One July 31 following a four-day trial.
U.S. District Judge David Hittner has now ordered Limon to serve 40 years in federal prison to be immediately followed by 10 years of supervised release. At the hearing, the court heard from the victim who recounted her ordeal, noting how she was young and desperate, how she showed her weakness and Limon took advantage of that and how she let him rob her of her happiness and a real smile. “Boy I’ve been waiting for this day,” she said. “To spit on you how you spit on me. My past does not and will not define me or my future, and after today I will not let you be in my shadow no longer. You took my life but I'm still breathing to live another day.”
“Sex traffickers have a PhD in manipulation using their skills to exploit our children and steal their innocence,” said Hamdani. “Although Limon stole that from this victim, he could not take her courage. She faced her oppressor at trial, recounting how Limon used her body, selling it to men as a commodity and raping it for his sick pleasure. Thanks to her, the next generation of children will be free—free from a predator’s grasp.”
“This case is a sad and angering example of innocence lost at the hands of sex traffickers like Limon who don’t care about anything other than exploiting our children,” said Acting Special Agent in Charge David Martinez of the FBI Houston Field Office. “Fortunately, the young victim in this case was rescued by law enforcement but not before being put through a month of hell by her trafficker. May his sentence serve as a promise to other sex traffickers and their victims that justice will be done.”
Limon trafficked a 15-year-old minor female for commercial sex during May and June 2022. After meeting her, he soon realized how he could isolate her from her companions and exploit her. She had no phone, little access to the internet and, most importantly, no money to support herself.
At trial, the jury heard evidence detailing how Limon forced the minor victim to engage in commercial sex with strangers on numerous occasions. Limon provided her with lingerie, photographed her and forced her to turn over all proceeds to him.
Limon caused the images to be posted, displaying his moniker “Ace One,” to commercial sex ads on the internet. The ads featured her posing in seductive lingerie on a bed. Limon and others created these ads portraying the minor as adult interested in engaging in commercial sex.
He controlled the victim and had them staying in several questionable motels. At one of these locations, he tattooed her entire inner forearm with the name of one of her relatives who she lost during the pandemic. The tattoo was so poorly done that after the trial, and with parental permission, she had it revised to represent something other than a memory of the Limon caused her.
Throughout the time she was with him, Limon provided her with illicit drugs, including meth, and fed her very little food. When he was not causing her to engage in commercial sex, Limon was having sex with her himself, knowing she was only 15 years of age.
The victim testified at trial describing her month-long ordeal in detail.
The jury also saw hotel records, internet sex ads and heard the testimony of the sexual assault treatment exam nurse.
Limon has been and will remain in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Bulger Leo prosecuted the case.
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Little Rock Man Sentenced to Prison for Being a Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK—On December 18, 2023, United States District Judge Lee P. Rudofsky sentenced Dontarious Marquette Henderson, 28, to 70 months in federal prison for being a felon in possession of a firearm. In addition to the prison sentence of nearly six years, Judge Rudofsky sentenced Henderson, of Little Rock, to three years supervised released.
Henderson was indicted on September 8, 2022, on one count of being a felon in possession of a firearm. He faced a maximum sentence of 10 years’ imprisonment. There is no parole in the federal system.
On November 11, 2021, the Arkansas State Police attempted to conduct a traffic stop when Henderson failed to stop, activated his hazard lights, and ran through a red light, nearly striking a vehicle. The pursuit continued at speeds up to 90 miles per hour through the streets of Little Rock, Arkansas, when Henderson struck another person’s vehicle. Henderson pulled a backpack out of the vehicle and began to flee on foot. He was taken into custody and during a search, Troopers located a Ruger handgun magazine containing 17 rounds in Henderson's front pocket. A Ruger P89 pistol with an extended magazine inserted on the front seat passenger floorboard was also discovered in Henderson’s vehicle.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Arkansas State Police.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@EDARNEWS
Leader of large cartel-connected drug trafficking organization sentenced to 11 years in prisonRead the Press Release
Seattle – A citizen of Mexico, twice federally convicted of drug trafficking in Washington State, was sentenced today in U.S. District Court in Seattle to 11 years in prison for conspiracy to distribute controlled substances and conspiracy to commit money laundering, announced Acting U.S. Attorney Tessa M. Gorman. Alan Gomez-Marentes, 38, of Los Angeles and Tukwila, Washington was arrested in July 2020 following an 18-month investigation of an extensive drug trafficking organization. Gomez-Marentes ordered drug shipments and directed underlings to process drugs for distribution. He and his sister were involved in laundering the proceeds from the drug trafficking.
At today’s sentencing hearing, U.S. District Judge John C. Coughenour said, the sentence he imposed was driven by the size of the drug trafficking ring, the amount of incredibly dangerous fentanyl it brought into the community and that this was Mr. Gomez-Marentes “second federal drug trafficking conviction.”
In total, the investigation into the conspiracy resulted in the seizure of 45 pounds of methamphetamine; 12 pounds of heroin; 3,200 fentanyl pills; 22 firearms; and $566,391.
On the wiretapped phone calls, agents heard Gomez-Marentes directing members of the organization to get new phones or pack up drug trafficking materials to avoid police scrutiny. He was heard asking members to obtain firearms and urging the beating of a drug trafficker who owed him money.
In 2005, Gomez-Marentes was convicted in Eastern Washington of distributing cocaine at Washington State University. He was sentenced to five years in prison and was deported. He was convicted in Mexico for another drug trafficking crime. While serving five years in a Mexican jail he began assisting drug dealers by translating drug deals with buyers in the U.S. He was released in Mexico in 2018 and illegally returned to Washington State in 2019.
Describing Gomez-Marentes role in the drug organization, prosecutors wrote to the court, “Alan Gomez-Marentes played a central leadership role in this highly successful organization for at least 10 months. He oversaw all aspects of drug trafficking: he orchestrated loads of drugs from Mexico; he managed the conversion of liquid methamphetamine to crystal methamphetamine; he directed numerous redistributors, providing them drugs for delivery and collecting cash drug proceeds; and he laundered tens of thousands of dollars.”
This is the final sentencing in this drug trafficking ring. The sentences for leaders and violent actors in the organization range from 17 years for Luis Magana-Ramirez, who was tied to violence and threats of violence, to ten and twelve years in prison for lower-level distributors who were caught with drugs and guns.
“The Jalisco Cartel is a significant threat to our community and the sentences today show the seriousness of the crimes of their affiliates here in the South Sound,” said DEA Seattle Special Agent in Charge David F. Reames. “DEA appreciates the partnership of the U.S. Attorney’s Office and our Federal, state, and local law enforcement partners as we close this investigation with a win for our community.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service (IRS). In addition, to the agencies listed above, these law enforcement agencies assisted in the investigation and/or with arrests and search warrants: DEA Seattle Special Response Team, Valley Narcotics Enforcement Team, Valley SWAT, Pierce County SWAT, Pierce County Sheriff’s Office, Joint Narcotics Enforcement Team, Bremerton Special Operations Group, King County SWAT, King County Sheriff’s Office Metro, Burien Police Department, Auburn Special Investigations Unit, FBI Seattle, FBI SWAT, FBI Portland Tactical and TNET, which is comprised of Tacoma, Lakewood, Auburn, Kent, Bonney Lake and Puyallup Police Departments, the Pierce County Sheriff’s Office and the Washington State Department of Corrections. The investigation was supported by the Northwest High Intensity Drug Trafficking Area (HIDTA).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and Andy Colasurdo.
Leader of Colombian Criminal Organization Pleads Guilty to Sending over 19,000 Kilograms of Cocaine via Semi-Submersible Vessels to the Sinaloa CartelRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Nestor Hugo Gomez-Garcia (38, Colombia), a/k/a “Simon,” “Guava,” and “Guavita,” has pleaded guilty to conspiring to distribute cocaine on vessels subject to the jurisdiction of the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Gomez-Garcia was the leader of a transnational criminal organization that dispatched self-propelled semi-submersible (SPSS) vessels from Colombia into the Pacific Ocean destined for Sinaloa Cartel members in Oaxaca, Mexico. Members of his organization served various roles and responsibilities, such as overseeing security at the SPSS construction sites, building the fiberglass hulls for these vessels, recruiting crewmembers, and organizing the logistics of the smuggling trips. Gomez-Garcia contracted the construction of the SPSS vessels, paid the workers directly or through intermediaries, and invested in the cocaine shipments.
In July and August 2015, and March 2016, the United States interdicted three SPSS vessels in international waters that had departed from Colombia while en route to Mexico. The first SPSS carried approximately 6,900 kilograms of cocaine, the August 2015 SPSS carried approximately 6,845 kilograms of cocaine, and the March 2016 SPSS contained approximately 5,824 kilograms of cocaine.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The Department of Justice’s Office of International Affairs substantially assisted in the extradition of the defendants to the United States. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Lead Defendant in OCDETF Operation Sentenced to 15 Years in PrisonRead the Press Release
MIAMI – A Palm Beach County resident was sentenced to prison after having been convicted by a federal jury of participating in a fentanyl trafficking conspiracy.
Belas Shelson Rosier, of Greenacres, Florida, was sentenced today to 15 years in federal prison, to be followed by 5 years of supervised release, by U.S. District Judge Aileen M. Cannon. Rosier was convicted at trial of conspiracy to possess with intent to distribute over 400 grams of fentanyl, and possession with intent to distribute over 400 grams of fentanyl, in addition to fentanyl analogs and cocaine.
According to court documents, the investigation into Rosier was initiated, by federal and local investigators, based on evidence recovered during the successful prosecution of one of Rosier’s long-term street level fentanyl and cocaine distributors. The evidence presented at trial established that Rosier was responsible for the distribution of at least six kilograms of fentanyl during the time period of October 4, 2021 through March 9, 2022, alone. During the investigation, federal agents seized and administratively forfeited over $50,000 in cash and $50,000 in jewelry that had been recovered from Rosier’s possession.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, Christopher A. Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Frank Adderly, Chief of Police, West Palm Beach Police Department (WPBPD), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
HSI Miami and ATF Miami Field Office investigated this case jointly with their local partners from WPBPD and PBSO. AUSA John McMillan prosecuted this case. Assistant U.S. Attorney William Zloch handled asset forfeiture.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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 No. 23-CR-80045.
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Laguna Man Sentenced to 15 Months in Prison for AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Andres Nathaniel Harjo was sentenced to 15 months and 11 days in prison. Harjo, 25, of Laguna and an enrolled member of Laguna Pueblo, pleaded guilty to assault with intent to commit a felony on September 11, 2023.
According to court documents, on February 15, 2020, Harjo assaulted the victim, Jane Doe, at their shared residence and only stopped when his actions were interrupted by a third individual.
Upon his release from prison, Harjo will be subject to 3 years of supervised release. During the first six months of his release, he will be required to reside at a residential reentry center. He will also be required to complete literacy education, vocational rehabilitation programming, and sex offense treatment and counseling.
The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Laguna Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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KC Man Indicted for Illegal Firearm Following Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm following a high-speed pursuit from police officers.
Shane C. Hyde, 36, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint that was filed against Hyde on Dec. 6, 2023.
The federal indictment alleges that Hyde was in possession of a Ruger AR-style pistol with a collapsible rifle stock on Dec. 6, 2023.
According to an affidavit filed in support of the original federal criminal complaint, Independence police officers found a black Ford Fusion parked in front of an Independence residence in the early morning hours of Dec. 6, 2023. Hyde was the only occupant of the vehicle, which was idling without its lights on.
When officers attempted to contact Hyde, the affidavit says, he fled in the vehicle. Hyde traveled at a high rate of speed without the vehicle’s headlights illuminated. He also failed to yield and drove into opposing lanes of traffic, the affidavit says, driving in the wrong lane of traffic around a dangerous curve. At least two vehicles had to take evasive action to avoid a collision. Officers deployed “stop sticks” to end the pursuit.
Hyde’s vehicle struck a curb and he got out of the car, holding a firearm in his left hand. As Hyde fled from officers on foot, they saw something fall from his waistband. Officers deployed their taser to take Hyde into custody after a brief struggle.
Officers found the Ruger AR-style pistol with a collapsible rifle stock on the ground. When they searched the Ford Fusion, officers found several rounds of various makes and calibers of ammunition, a firearm magazine, a Halloween mask, a pair of handcuffs, a ballistic panel from a bullet-proof vest, two glass pipes with methamphetamine residue, and a plastic bag with approximately .33 grams of methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hyde has two prior felony convictions for possession of a controlled substance and prior felony convictions for tampering with a motor vehicle, resisting a lawful stop, property damage, and theft.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Independence, Mo., Police Department.
Project Safe Neighborhoods
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.
Justice Department Disrupts Prolific ALPHV/Blackcat Ransomware VariantRead the Press Release
MIAMI – The Justice Department announced today a disruption campaign against the Blackcat ransomware group — also known as ALPHV or Noberus — that has targeted the computer networks of more than 1,000 victims and caused harm around the world since its inception, including networks that support U.S. critical infrastructure.
Over the past 18 months, ALPHV/Blackcat has emerged as the second most prolific ransomware-as-a-service variant in the world based on the hundreds of millions of dollars in ransoms paid by victims around the world. Due to the global scale of these crimes, multiple foreign law enforcement agencies are conducting parallel investigations.
The FBI developed a decryption tool that allowed FBI field offices across the country and law enforcement partners around the world to offer over 500 affected victims the capability to restore their systems. To date, the FBI has worked with dozens of victims in the United States and internationally to implement this solution, saving multiple victims from ransom demands totaling approximately $68 million. As detailed in a search warrant unsealed today in the Southern District of Florida, the FBI has also gained visibility into the Blackcat ransomware group’s computer network as part of the investigation and has seized several websites that the group operated.
“In disrupting the BlackCat ransomware group, the Justice Department has once again hacked the hackers,” said Deputy Attorney General Lisa O. Monaco. “With a decryption tool provided by the FBI to hundreds of ransomware victims worldwide, businesses and schools were able to reopen, and health care and emergency services were able to come back online. We will continue to prioritize disruptions and place victims at the center of our strategy to dismantle the ecosystem fueling cybercrime.”
“Today’s announcement highlights the Justice Department’s ability to take on even the most sophisticated and prolific cybercriminals,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As a result of our office’s tireless efforts, alongside FBI Miami, U.S. Secret Service, and our foreign law enforcement partners, we have provided Blackcat’s victims, in the Southern District of Florida and around the world, the opportunity to get back on their feet and to fortify their digital defenses. We will continue to focus on holding the people behind the Blackcat ransomware group accountable for their crimes.”
“The FBI continues to be unrelenting in bringing cybercriminals to justice and determined in its efforts to defeat and disrupt ransomware campaigns targeting critical infrastructure, the private sector, and beyond,” said FBI Deputy Director Paul Abbate. “Helping victims of crime is the FBI’s highest priority and is reflected here in the provision of tools to assist those victimized in decrypting compromised networks and systems. The FBI will continue to aggressively pursue these criminal actors wherever they attempt to hide and ensure they are brought to justice and held accountable under the law.”
“At the Justice Department, we prioritize victim safety and security,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In this case, agents and prosecutors worked tirelessly to restore victim networks, but these actions are not the culmination of our efforts, they are just the beginning. Criminal actors should be aware that the announcement today is just one part of this ongoing effort. Going forward, we will continue our investigation and pursue those behind Blackcat until they are brought to justice.”
According to the unsealed warrant, Blackcat actors have compromised computer networks in the United States and worldwide. The disruptions caused by the ransomware variant have affected U.S. critical infrastructure – including government facilities, emergency services, defense industrial base companies, critical manufacturing, and healthcare and public health facilities – as well as other corporations, government entities, and schools. The loss amount globally is in the hundreds of millions and includes ransom payments, destruction and theft of proprietary data, and costs associated with incident response.
Blackcat uses a ransomware-as-a-service model in which developers are responsible for creating and updating ransomware and for maintaining the illicit internet infrastructure. Affiliates are responsible for identifying and attacking high-value victim institutions with the ransomware. After a victim pays, developers and affiliates share the ransom.
Blackcat actors employ a multiple extortion model of attack. Before encrypting the victim system, the affiliate will exfiltrate or steal sensitive data. The affiliate then seeks a ransom in exchange for decrypting the victim’s system and not publishing the stolen data. Blackcat actors attempt to target the most sensitive data in a victim’s system to increase the pressure to pay. Blackcat actors rely on a leak site available on the dark web to publicize their attacks. When a victim refuses to pay a ransom, these actors commonly retaliate by publishing stolen data to a leak website where it becomes publicly available.
The FBI Miami Field Office is leading the investigation.
Trial Attorneys Christen Gallagher and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kiran Bhat and Brooke Watson for the Southern District of Florida are handling the case.
The Justice Department also recognizes the critical cooperation of Germany’s Bundeskriminalamt and Zentrale Kriminalinspektion Göttingen, Denmark’s Special Crime Unit, and Europol. Significant assistance was provided by the U.S. Secret Service and the U.S. Attorney’s Office for the Eastern District of Virginia. The Justice Department’s Office of International Affairs and the Cyber Operations International Liaison also provided significant assistance. Additionally, the following foreign law enforcement authorities provided substantial assistance and support: the Australian Federal Police, the United Kingdom’s National Crime Agency and Eastern Region Special Operations Unit, Spain’s Policia Nacional, Switzerland’s Kantonspolizei Thurgau, and Austria’s Directorate State Protection and Intelligence Service.
Victims of Blackcat ransomware are strongly encouraged to contact their local FBI field office at www.fbi.gov/contact-us/field-offices for further information and to determine what assistance may be available.
Blackcat affiliates have gained initial access to victim networks through a number of methods, including leveraging compromised user credentials to gain initial access to the victim system. More information about the malware, including technical information about indicators of compromise and recommendations to mitigate its effects, is available from the FBI at www.ic3.gov/Media/News/2022/220420.pdf.
Additional information regarding law enforcement’s ongoing investigation into Blackcat is available at www.justice.gov/media/1329536/dl?inline.
If you have information about Blackcat, their affiliates, or activities, you may be eligible for a reward through the Department of State’s Rewards for Justice program. Information can be submitted through the following Tor-based tip line (Tor browser required): he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion.
For more information about rewards for information on foreign malicious cyber activity against U.S. critical infrastructure, visit https://rfj.tips/SDT55f.
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Justice Department Disrupts Prolific ALPHV/Blackcat Ransomware VariantRead the Press Release
The Justice Department announced today a disruption campaign against the Blackcat ransomware group — also known as ALPHV or Noberus — that has targeted the computer networks of more than 1,000 victims and caused harm around the world since its inception, including networks that support U.S. critical infrastructure.
Over the past 18 months, ALPHV/Blackcat has emerged as the second most prolific ransomware-as-a-service variant in the world based on the hundreds of millions of dollars in ransoms paid by victims around the world. Due to the global scale of these crimes, multiple foreign law enforcement agencies are conducting parallel investigations.
The FBI developed a decryption tool that allowed FBI field offices across the country and law enforcement partners around the world to offer over 500 affected victims the capability to restore their systems. To date, the FBI has worked with dozens of victims in the United States and internationally to implement this solution, saving multiple victims from ransom demands totaling approximately $68 million. As detailed in a search warrant unsealed today in the Southern District of Florida, the FBI has also gained visibility into the Blackcat ransomware group’s computer network as part of the investigation and has seized several websites that the group operated.
“In disrupting the BlackCat ransomware group, the Justice Department has once again hacked the hackers,” said Deputy Attorney General Lisa O. Monaco. “With a decryption tool provided by the FBI to hundreds of ransomware victims worldwide, businesses and schools were able to reopen, and health care and emergency services were able to come back online. We will continue to prioritize disruptions and place victims at the center of our strategy to dismantle the ecosystem fueling cybercrime.”
“The FBI continues to be unrelenting in bringing cybercriminals to justice and determined in its efforts to defeat and disrupt ransomware campaigns targeting critical infrastructure, the private sector, and beyond,” said FBI Deputy Director Paul Abbate. “Helping victims of crime is the FBI’s highest priority and is reflected here in the provision of tools to assist those victimized in decrypting compromised networks and systems. The FBI will continue to aggressively pursue these criminal actors wherever they attempt to hide and ensure they are brought to justice and held accountable under the law.”
“At the Justice Department, we prioritize victim safety and security,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “In this case, agents and prosecutors worked tirelessly to restore victim networks, but these actions are not the culmination of our efforts, they are just the beginning. Criminal actors should be aware that the announcement today is just one part of this ongoing effort. Going forward, we will continue our investigation and pursue those behind Blackcat until they are brought to justice.”
“Today’s announcement highlights the Justice Department’s ability to take on even the most sophisticated and prolific cybercriminals,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “As a result of our office’s tireless efforts, alongside FBI Miami, U.S. Secret Service, and our foreign law enforcement partners, we have provided Blackcat’s victims, in the Southern District of Florida and around the world, the opportunity to get back on their feet and to fortify their digital defenses. We will continue to focus on holding the people behind the Blackcat ransomware group accountable for their crimes.”
According to the unsealed warrant, Blackcat actors have compromised computer networks in the United States and worldwide. The disruptions caused by the ransomware variant have affected U.S. critical infrastructure – including government facilities, emergency services, defense industrial base companies, critical manufacturing, and healthcare and public health facilities – as well as other corporations, government entities, and schools. The loss amount globally is in the hundreds of millions and includes ransom payments, destruction and theft of proprietary data, and costs associated with incident response.
Blackcat uses a ransomware-as-a-service model in which developers are responsible for creating and updating ransomware and for maintaining the illicit internet infrastructure. Affiliates are responsible for identifying and attacking high-value victim institutions with the ransomware. After a victim pays, developers and affiliates share the ransom.
Blackcat actors employ a multiple extortion model of attack. Before encrypting the victim system, the affiliate will exfiltrate or steal sensitive data. The affiliate then seeks a ransom in exchange for decrypting the victim’s system and not publishing the stolen data. Blackcat actors attempt to target the most sensitive data in a victim’s system to increase the pressure to pay. Blackcat actors rely on a leak site available on the dark web to publicize their attacks. When a victim refuses to pay a ransom, these actors commonly retaliate by publishing stolen data to a leak website where it becomes publicly available.
The FBI Miami Field Office is leading the investigation.
Trial Attorneys Christen Gallagher and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Kiran Bhat and Brooke Watson for the Southern District of Florida are handling the case.
The Justice Department also recognizes the critical cooperation of Germany’s Bundeskriminalamt and Zentrale Kriminalinspektion Göttingen, Denmark’s Special Crime Unit, and Europol. Significant assistance was provided by the U.S. Secret Service and the U.S. Attorney’s Office for the Eastern District of Virginia. The Justice Department’s Office of International Affairs and the Cyber Operations International Liaison also provided significant assistance. Additionally, the following foreign law enforcement authorities provided substantial assistance and support: the Australian Federal Police, the United Kingdom’s National Crime Agency and Eastern Region Special Operations Unit, Spain’s Policia Nacional, Switzerland’s Kantonspolizei Thurgau, and Austria’s Directorate State Protection and Intelligence Service.
Victims of Blackcat ransomware are strongly encouraged to contact their local FBI field office at www.fbi.gov/contact-us/field-offices for further information and to determine what assistance may be available.
Blackcat affiliates have gained initial access to victim networks through a number of methods, including leveraging compromised user credentials to gain initial access to the victim system. More information about the malware, including technical information about indicators of compromise and recommendations to mitigate its effects, is available from the FBI at www.ic3.gov/Media/News/2022/220420.pdf.
Additional information regarding law enforcement’s ongoing investigation into Blackcat is available at www.justice.gov/media/1329536/dl?inline.
If you have information about Blackcat, their affiliates, or activities, you may be eligible for a reward through the Department of State’s Rewards for Justice program. Information can be submitted through the following Tor-based tip line (Tor browser required): he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion.
For more information about rewards for information on foreign malicious cyber activity against U.S. critical infrastructure, visit https://rfj.tips/SDT55f.
Justice Department Announces WarCAT Leadership TransitionRead the Press Release
Today, Attorney General Merrick B. Garland announced a transition in the leadership of the Justice Department’s War Crimes Accountability Team (WarCAT).
Last year, while in Ukraine, Attorney General Garland announced the launch of WarCAT to centralize and strengthen the Justice Department’s ongoing work to hold accountable those who have committed war crimes and other atrocities during Russia’s invasion of Ukraine. At that time, he selected Eli Rosenbaum to serve as Counselor for War Crimes Accountability. Effective January 2024, Rosenbaum, the longest-serving American prosecutor of Nazi war criminals and other human rights violators in history, will retire after a 38-year career at the Justice Department. Attorney General Garland has selected WarCAT Lead Prosecutor Christian Levesque to serve as the Director of WarCAT. Today’s announcement also follows the Justice Department’s unsealing of war crimes charges in connection with Russia’s unlawful and unprovoked invasion of Ukraine.
“A year and a half ago, I asked Eli Rosenbaum to lead a team of Justice Department prosecutors working to identify and prosecute individuals involved in war crimes and atrocities committed during Russia’s invasion of Ukraine,” said Attorney General Garland. “I am deeply grateful to Eli for postponing his retirement to stand up and lead that team, and for his decades of service to our country and to the cause of justice. Recently, the Justice Department filed the first-ever charges under the U.S. war crimes statute against four Russia-affiliated military personnel for heinous crimes against an American citizen. I have full confidence that WarCAT’s new Director, Christian Levesque, will continue to build on that work. I look forward to her leadership of our efforts to pursue accountability for Russia’s war crimes in Ukraine.”
As WarCAT Director, Levesque will lead the Department’s efforts to coordinate with experts on investigations and prosecutions involving human rights abuses, war crimes, and other atrocities occurring in Ukraine to centralize and strengthen the Department’s ongoing accountability efforts, and to assist authorities in Ukraine and elsewhere investigating such crimes. The team will continue to be responsible for providing wide-ranging assistance, including operational assistance, victim-witness support, and relevant legal analysis including regarding environmental damage. As Lead Prosecutor, Levesque has been integral to WarCAT over the past year, and her experience and expertise will ensure the continued success of this initiative. Levesque joined the Human Rights and Special Prosecution Section in 2016, after a career as an international human rights attorney in private practice.
In the 16 months since Attorney General Garland launched WarCAT, the team has brought together the Department’s leading experts on investigations and prosecutions involving human rights abuses, war crimes, and other atrocities to centralize and strengthen the Department’s ongoing accountability efforts, and to assist authorities in Ukraine and elsewhere investigating such crimes.
Jamestown man going to prison for selling heroin, fentanyl, and methamphetamineRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Brendan Farver, 29, of Jamestown, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, heroin, fentanyl, and methamphetamine, was sentenced to serve 24 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that during the conspiracy, Farver bought and sold heroin, fentanyl, and methamphetamine for profit and his own use, and brokered deals for other drug dealers in and around the Jamestown area. Farver utilized social media to conduct his drug trafficking activities. In May 2020, the Conewango Township Police Department conducted undercover purchases of heroin from Farver on two different occasions. On July 31, 2020, Farver brought heroin/fentanyl to an associate identified as K.T. at the individual’s residence in Jamestown. The two then injected the heroin/fentanyl. The following morning, at approximately 11:27 a.m., the Jamestown Police Department responded to K.T.’s residence for a reported overdose, where officers discovered K.T., deceased.
The sentencing is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Jamestown man going to prison for cocaine possessionRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Eddie Ortiz-Ortiz, 29, of Jamestown, NY, who was convicted of possession with intent to distribute 500 grams or more of cocaine, was sentenced to serve 36 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Franz M. Wright, who handled the case, stated that on January 31, 2020, a Cattaraugus County Sherriff’s Deputy conducted a traffic stop of Ortiz’s vehicle. As the deputy spoke with Ortiz, he detected the odor of marijuana emanating from the vehicle. A Cattaraugus County K-9 unit was brought in and provided a positive alert to a wrapped white package located within the vehicle. The package contained approximately 1,000 grams of cocaine.
The sentencing is the result of an investigation by the Cattaraugus County Sherriff's Office, under the direction of Sheriff Timothy Whitcomb and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Iranian National Charged with Unlawfully Procuring Microelectronics Used in Unmanned Aerial Vehicles on Behalf of the Iranian GovernmentRead the Press Release
Today, the Justice Department unsealed an indictment charging Iranian national Hossein Hatefi Ardakani and co-defendant Gary Lam, who worked for a Chinese company, with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for the Islamic Revolutionary Guard Corps (IRGC) Aerospace Force Self Sufficiency Jihad Organization’s (ASF SSJO) one-way attack unmanned aerial vehicle (UAV) program.
Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Ardakani, as well as multiple other individuals and entities involved in the procurement network used by Ardakani in support of Iran’s production of UAVs. Ardakani’s codefendant, Lam, whom OFAC identified as Lin Jinghe, was designated by OFAC in October.
“Today’s coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“Today’s announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.”
“U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.”
“Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.”
According to the indictment, between at least in or around September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components are subject to U.S. export controls for anti-terrorism, national security and regional stability reasons.
The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions.
In addition to the indictment, separate, related seizure actions targeting Nava Hobbies SDN BHD (Nava Hobbies) and Arta Wave (Arta Wave) SBN BHD and their property were unsealed today. Nava Hobbies and Arta Wave are two of the entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling more than $800,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing.
Ardakani and Lam are charged with conspiracy to export U.S. goods to Iran and to defraud the United States, which carries a maximum penalty of five years in prison; unlawfully exporting and attempting to export goods to Iran, which carries a maximum penalty of 20 years in prison; and conspiracy to engage in international money laundering, which carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ardakani and Lam remain at large and are believed to reside abroad.
HSI, the Department of Commerce’s Bureau of Industry and Security, and the Defense Criminal Investigative Service are investigating the case.
Assistant U.S. Attorney Jolie Zimmerman for the District of Columbia is prosecuting the case, with valuable assistance from Assistant U.S. Attorney Sean Heiden for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Charges San Jose Man with Robbing U.S. Mail CarrierRead the Press Release
SAN JOSE – A federal grand jury has indicted James Luna, charging him with the robbery of a mail carrier in the Sunnyvale, Calif., area, announced U.S. Attorney Ismail J. Ramsey and U.S. Postal Inspector in Charge Rafael Nuñez. The indictment follows the announcement by U.S. Attorney Ramsey and Postal Inspector in Charge Nuñez regarding multiple arrests made throughout the Bay Area in cases involving the interference with delivery of the U.S. mail.
According to papers filed in connection with the Luna case, on December 30, 2022, a person fitting Luna’s description approached a United States Postal Service mail carrier just before 4:00 p.m. and demanded that the mail carrier hand over her postal keys. The mail carrier reported that she could see the handle of a firearm sticking out of the robber’s pocket. The mail carrier handed over the keys and the robber absconded with them. The robber was later identified as James Luna, 32, of San Jose. The keys are used to open United States Postal Service mailboxes in a designated area.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Luna is charged with robbery of a mail carrier, in violation of 18 U.S.C. § 2114. The maximum statutory penalty for robbery of a mail carrier is 10 years in prison. Further, in addition to the prison term, the court may order defendant to serve an additional term of supervised release to begin after a prison term, additional fines, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On October 10, 2023, U.S. Attorney Ramsey and Postal Inspector in Charge Nuñez held a press conference at which they discussed a recent increase in the theft of postal keys, break-ins of postal vehicles, assaults on letter carriers, and various other criminal acts involving interference with delivery of the mail. According to U.S. Attorney Ramsey, a surge in arrests throughout the Bay Area has resulted in several defendants now facing severe federal penalties. A press release discussing the press conference can be found here.
Assistant U.S. Attorney Neal Hong is prosecuting the Luna case. The prosecution of this case is the result of an investigation by the United States Postal Inspection Service and Sunnyvale Police Department.
Indictment Charges District Man with Fentanyl Trafficking and Firearms CountsRead the Press Release
WASHINGTON –Kahlil Felder, 39, of Southeast Washington D.C., was arraigned on a four-count indictment yesterday in U.S. District Court charging him with possession with intent to distribute more than 400 grams of fentanyl, and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense, among other charges. Felder was ordered detained pending trial.
The indictment was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations Washington Field Office, Inspector Damon Wood, with the U.S. Postal Inspection Service "Washington Division", and Chief Pamela Smith, of the Metropolitan Police Department.
According to the indictment, Felder, aka, Kahlil Gibron Hewitt, unlawfully, knowingly, and intentionally, distributed a mixture containing a detectable amount of fentanyl on October 22, 2022, and possessed with intent to distribute over 400 grams of fentanyl on December 13, 2023. The indictment further charges that, on December 13, 2023, Felder possessed two firearms in furtherance of a drug trafficking crime and possessed two firearms as a prohibited person—that is, a person convicted of a crime punishable by a term of imprisonment for a term exceeding one year.
During a search of Felder’s residence on December 13, law enforcement officers discovered two loaded semiautomatic pistols – a Glock 36, 45mm, and a Springfield Hellcat 9 mm– and more than five kilograms of suspected fentanyl. The fentanyl included thousands of pre-packaged baggies or “zips” filled with suspected fentanyl. Investigators also found tools and materials for packaging fentanyl, including a scale, test kits, gloves, a respirator, a sifter, and a money counter.
This operation 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.
The charges of possession with intent to distribute over 400 grams or more of fentanyl and possession of firearm in furtherance of drug trafficking carry a statutory maximum of life in prison. The possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year carries a statutory maximum of 15 years in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes.
This case is being investigated by the Homeland Security Investigations Washington Field Office, U.S. Postal Inspection Service’s Washington Office, and MPD’s Violent Crime Suppression Division.
It is being prosecuted by Assistant U.S. Attorney Will Hart and Special Assistant U.S. Attorneys Jordan Leiter and Javier Urbina of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Indiana Health Network Agrees to Pay $345 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
Community Health Network Inc. (Community), a health care network headquartered in Indianapolis, has agreed to pay the United States $345 million to resolve allegations that it violated the False Claims Act by knowingly submitting claims to Medicare for services that were referred in violation of the Stark Law.
The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. Under the Stark Law, when a hospital employs a physician, the hospital may not submit claims for certain services referred by that physician unless the physician’s compensation is consistent with fair market value and not based on the value or volume of their referrals to the hospital. In this lawsuit, the United States alleged that the compensation Community paid to its cardiologists, cardiothoracic surgeons, vascular surgeons, neurosurgeons and breast surgeons was well above fair market value, that Community awarded bonuses to physicians that were tied to the number of their referrals, and that Community submitted claims to Medicare for services that resulted from these unlawful referrals.
The United States’ complaint alleged that beginning in 2008 and 2009, senior management at Community embarked on an illegal scheme to recruit physicians for employment for the purpose of capturing their lucrative “downstream referrals.” Community successfully recruited hundreds of local physicians, including cardiovascular specialists, neurosurgeons and breast surgeons, by paying them salaries that were significantly higher — sometimes as much as double — what they were receiving in their own private practices. Community was well aware of the Stark Law requirements that the compensation of employed physicians had to be fair market value and could not take into account the volume of referrals. Community hired a valuation firm to analyze the compensation it proposed paying to its recruited specialists. The complaint alleged that Community knowingly provided the firm with false compensation figures so that the firm would render a favorable opinion. The complaint further alleged that Community ignored repeated warnings from the valuation firm regarding the legal perils of overcompensating its physicians. In addition to paying specialists excessive compensation, the complaint alleged that Community awarded incentive compensation to physicians, in the form of certain financial performance bonuses that were based on the physicians reaching a target of referrals to Community’s network, again in violation of the Stark Law.
“The Stark Law was enacted to ensure that the clinical judgment of physicians is not corrupted by improper financial incentives,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s recovery demonstrates the department’s resolve to protect the integrity of federal health care programs and to safeguard the taxpayer dollars used to support these important programs.”
“Hoosier Medicare patients deserve to know that their care is based on their medical needs, not their doctor’s financial gain,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “When doctors refer patients for CT scans, mammograms or any other medical service, those patients should know the doctor is putting their medical interests first and not their profit margins. Community Health Network overpaid its doctors. It also paid doctors bonuses based on the amount of extra money the hospital was able to bill Medicare through doctor referrals. Such compensation arrangements erode patient trust and incentivize unnecessary medical services that waste taxpayer dollars. The U.S. Attorney’s Office’s Civil Division, working alongside the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the DOJ’s Fraud Section are committed to holding companies accountable when they knowingly seek to profit off of Medicare patients through greedy compensation schemes.”
“HHS-OIG remains steadfast in our efforts to protect our health care programs and the people they serve, including holding those accountable who violate the Stark Law,” said Deputy Inspector General for Investigations Christian J. Schrank of HHS-OIG. “Our work will not cease here. Following the settlement, HHS-OIG will enter into a five-year corporate integrity agreement with the defendant, further demonstrating our unwavering commitment to protecting federal health care programs.”
Under the settlement, in addition to paying the United States $345 million, Community will enter into a five-year Corporate Integrity Agreement with HHS-OIG.
The settlement announced today stems from a whistleblower complaint filed in 2014 by CHN’s former Chief Financial and Chief Operating Officer Thomas Fischer pursuant to the False Claims Act’s qui tam provisions, which permit private persons to bring a lawsuit on behalf of the government and to share in any recovery. The Act also permits the government to intervene and take over the lawsuit, as it did in this case as to certain of Fischer’s allegations. Fischer’s share has not yet been determined in this matter.
The United States’ intervention and settlement in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).
The FBI and HHS-OIG investigated the case.
The matter was handled by Trial Attorneys Arthur Di Dio, Kelly McAuliffe, Claire Horrell and David Finkelstein of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Justin Olson and Shelese Woods for the Southern District of Indiana.
The case is captioned United States and the State of Indiana ex rel. Thomas Fischer v. Community Health Network, Inc., et al., No. 1:14-cv-1215 (S.D. Ind.).
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Settlement ComplaintHaymarket Brothers Get 18 Years Total in Fentanyl ConspiracyRead the Press Release
CHARLOTTESVILLE, Va. – A pair of brothers from Northern Virginia, who distributed or intended to distribute more than 10,000 pressed fentanyl pills in Culpeper, Virginia and surrounding counties, were sentenced yesterday to more than 18 years of total federal prison time.
Thomas Anthony Marshall, 25, and Jonathon Hayden Marshall, 20, both pled guilty in August 2023 to identical charges, that is, one count of conspiring to distribute and possess with the intent to distribute fentanyl and one count of distribution and possessing with the intent to distribute fentanyl. Yesterday, Thomas Marshall was sentenced to 10 years in federal prison and Jonathon Marshall was sentenced to 8 years in federal prison.
According to court documents, on several occasions in September 2022 both Thomas and Jonathon Marshall sold pressed fentanyl pills to confidential informants working with the Blue Ridge Narcotics and Gang Task Force. Specifically, on September 1, 2022, Thomas Marshall sold 1,020 fentanyl pills and on September 6, 2022, Thomas and Jonathon Marshall sold 1,987 fentanyl pills. On September 14, 2022, Thomas Marshall sold 1,812 fentanyl pills.
On September 27, 2022, the Blue Ridge Narcotics and Gang Task Force executed a search warrant at a residence shared by the Marshall brothers in Fauquier County, Virginia. During the course of the search, law enforcement recovered 6,549 pressed fentanyl pills, $32,642 in cash, and numerous firearms and ammunition.
United States Attorney Christopher R. Kavanaugh announced the sentence today.
The Drug Enforcement Administration and the Blue Ridge Narcotics and Gang Task Force investigated the case.
Assistant U.S. Attorney Ronald M. Huber prosecuted the case.
Hartford Man Sentenced to 57 Months in Federal Prison for Gun OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DEVIN TEXIRA, also known as “LV,” 27, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 57 months of imprisonment, followed by three years of supervised release, for a firearm possession offense.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, and also to individuals in New York and Maine. In October 2021, a member of Feliciano’s drug trafficking network, Jose Tirado, coordinated the sale of 9mm handgun, owned by Texira, to another individual for $800.
Texira’s criminal history includes felony convictions for firearm possession, robbery, assault, and threatening offenses, and he was on state probation in October 2021 during the firearm transaction. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Hartford Police arrested Texira on March 27, 2022, on state charges related to an alleged threatening incident involving a firearm.
On June 8, 2022, a federal grand jury returned an indictment charging Texira, Feliciano, Tirado, and 13 others with various narcotics distribution and firearm possession offenses.
On February 16, 2023, Texira pleaded guilty to unlawful possession of a firearm by a felon. He has been detained since his arrest, and he awaits sentencing on the unrelated state charges.
Feliciano and Tirado pleaded guilty. On August 11, 2023, Tirado, also known as “Joselito” and “Leet,” was sentenced to 84 months of imprisonment. Feliciano awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Hardin man sentenced to seven years in prison for role in large meth trafficking ring centered on Crow Indian ReservationRead the Press Release
BILLINGS — A Hardin man who admitted to trafficking methamphetamine as part of a large-scale drug trafficking ring centered on the Crow Indian Reservation was sentenced today to seven years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Darlon Richard Lefthand, 37, pleaded guilty in August to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, investigated a large-scale, multi-state narcotics trafficking operation centered on multiple properties on the Crow Indian Reservation. The properties, including one known as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian Reservations. Darlon Lefthand is one of the individuals affiliated with the investigation.
The government alleged that Lefthand was considered in the mid-level of the distribution ring and was involved with major players above him. Lefthand could go to the Spear Siding property to obtain drugs for himself and others. Lefthand also used Facebook to obtain meth from Spear Siding and to set up drug deals. In September 2022, law enforcement conducted a controlled purchase of approximately one ounce of meth from Lefthand.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
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.
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Guatemalan National Pleads Guilty to Conspiring to Smuggle over 6,000 Kilograms of Cocaine into the United StatesRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that Eliezer De Leon-Lopez (38, Guatemala), a/k/a “Wiro Loco” and “Daniel Martinez,” pleaded guilty today to conspiring to import cocaine into the United States. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Leon-Lopez was part of an organization that received cocaine in Guatemala that had been smuggled on maritime vessels from South America. The organization then brought the cocaine to shore, transported it to the northern border of Guatemala, and smuggled it into Mexico for subsequent importation into the United States. In 2017, Leon-Lopez retired from active smuggling by relinquishing his routes and South American contacts but continued to financially benefit from the smuggling operations.
On November 11, 2018, the El Salvadoran navy interdicted a self-propelled semi-submersible (SPSS) in international waters. There were five men – four Colombian nationals and one Guatemalan national – onboard. The SPSS was transporting approximately 6,380 kilograms of cocaine. Intercepted communications obtained in the United States revealed that Leon-Lopez was in communication with a coconspirator about the status of the SPSS and the crewmembers, and then received photos of the seized cocaine and an article on social media about the interdiction.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.
Greenwich Psychologist Sentenced to 27 Months in Federal Prison for $2.6 Million Health Care Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that MICHAEL LONSKI, 72, of Greenwich, was sentenced yesterday by U.S. District Judge Sarala V. Nagala in Hartford to 27 months of imprisonment, followed by three years of supervised release, for operating a $2.6 million health care fraud scheme.
According to court documents and statements made in court, Lonski was a licensed psychologist who, along with wife, Dr. Evelyn Llewellyn, maintained separate medical practices out of their home office in Old Greenwich. Lonski and Llewellyn were authorized providers for the Connecticut Medicaid program (“Medicaid”), Medicare, and other health care benefit programs. Lonski assumed responsibility for submitting claims for reimbursement for services allegedly provided by himself and Llewellyn, both at their home office and at various skilled nursing facilities within Connecticut.
For years, Lonski billed insurers for services that he knew were not rendered, including by billing for patients who were deceased, for dates of service when he was out of the country, for dates of service when Llewellyn was out of the country, and for dates of service when he was hospitalized. From 2014 through 2019, Lonski submitted more than 80,000 claims for service, and he claimed to have provided services every single day, including weekends and holidays, except for one day in 2017. On 60 of these dates, Lonski billed for more than 24 hours of service, and on 901 dates, Lonski billed for more than 12 hours of service. These fraudulent claims resulted in a loss of over $2,651,294, including a loss of $1,157,292 to the Connecticut Medicaid program and a loss of $119,092 Medicare.
In 2002, Lonski settled a federal civil lawsuit alleging health care fraud, which was brought by the government in the Southern District of New York. Lonski agreed to pay $4 million in restitution and was excluded from participating in all federal healthcare programs, including Medicare and Medicaid, for five years.
Judge Nagala ordered Lonski to pay restitution $2,651,294.
On December 12, 2022, Lonski pleaded guilty to health care fraud. Lonski is required to report to prison on March 25, 2024.
In May 2023, Llewellyn entered into a civil settlement agreement with the federal and state governments in which she agreed to pay $658,294 to settle allegations that she received payment for claims submitted by Lonski to the Medicare and Medicaid programs for psychology services allegedly provided by Llewellyn to Medicare and Medicaid beneficiaries that were, in fact, not provided.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Susan L. Wines, Richard M. Molot, and Christine Sciarrino
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Grants Pass Physician and Affiliated Medical Practice Agree to Pay $115,000 to Settle Health Care Fraud AllegationsRead the Press Release
PORTLAND, Ore.—A Grants Pass, Oregon medical doctor and his general medical practice have paid $115,000 to settle allegations by the United States regarding the physician, on behalf of himself and his practice, submitting medical reimbursement claims to Medicare, TRICARE, and the Veterans Health Administration (VHA), announced the U.S. Attorney’s Office for the District of Oregon.
Wendell Heidinger, 60, and Optimal Health of Southern Oregon, LLC (Optimal), paid $115,000 to the United States.
The United States contended that, between January 1, 2018, and December 31, 2020, Dr. Heidinger and Optimal submitted claims for reimbursement to Medicare, TRICARE, and VHA coded as “evaluation and management” when frequency specific microcurrent (FSM) treatments were primarily provided. Medicare considers FSM as an investigational treatment for which it does not provide coverage or payment.
Medicare is a public health insurance program administered by the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services (HHS). TRICARE is a civilian health care program administered by the Defense Health Agency (DHA), a joint, integrated combat support agency within the U.S. Department of Defense (DOD). VHA, an agency within the U.S. Department of Veterans Affairs, is the largest integrated health care system in the United States and provides primary care, specialized care, and related medical and social support services to American veterans.
This settlement was the result of a coordinated investigation by the U.S. Attorney’s Office for the District of Oregon; HHS Office of Inspector General (HHS-OIG); and DHA.
The United States was represented in this matter by Carla G. McClurg, Assistant U.S. Attorney for the District of Oregon, with assistance from Lisa M. Re, Assistant Inspector General for Legal Affairs for HHS-OIG and Salvatore M. Maida, General Counsel for DHA.
The claims resolved by this settlement are allegations only, and there has been no determination or admission of liability.
Grand Rapids Man Pleads Guilty to Sex Trafficking of A ChildRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Torey Franklin, 29, of Grand Rapids, pleaded guilty to sex trafficking of a child.
“Trafficking in any form is intolerable, but the sex trafficking of a minor is especially cruel,” remarked U.S. Attorney Totten. “My office is committed to holding traffickers legally accountable for the lasting harm they cause to children within our district.”
Franklin admitted that in the spring and summer of 2022, he used online advertisements to offer the sexual services of a minor to prospective customers. After posting the ads, Franklin would negotiate prices and sexual acts with prospective customers before transporting the minor to multiple locations for the “sex dates” he had arranged. Afterwards, he would receive payment, often through a popular money-sharing application. Franklin now faces a term of at least ten years and up to life in prison as a result of his guilty plea and conviction.
Franklin was captured due to Operation Cross Country, a coordinated operation among the FBI, other federal agencies, state and local police, and social services agencies across the country to find and assist victims of human trafficking, particularly child victims. The previous press release and indictment can be viewed here.
“Today’s plea is a testament to the progress made during Operation Cross Country (OCC), the FBI’s annual nationwide enforcement campaign focused on identifying and locating victims of sex trafficking and investigating and arresting individuals involved in child sex and human trafficking,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “We would like to extend our appreciation to our wide network of law enforcement partners for their critical support in investigating sexual predators who commit crimes against children. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice. If you believe you may have any information, please contact the National Center for Missing & Exploited Children at 1-800-THE-LOST or online at report.cybertip.org.”
The National Center for Missing & Exploited Children has more information about the reality of child sex trafficking on its website at https://www.missingkids.org/theissues/trafficking. If you suspect that someone you know may be a victim of human trafficking, information about how to make a report to law enforcement can be found at the website for the national human trafficking hotline: https://humantraffickinghotline.org/en/get-help.
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Georgia state prison inmate pleads guilty to impersonating a federal agent as part of a national telephone fraud schemeRead the Press Release
Seattle – A Georgia prison inmate who was indicted in Western Washington for a telephone fraud scheme pleaded guilty today in U.S. District Court in Seattle to conspiracy to impersonate a federal officer, announced Acting U.S. Attorney Tessa M. Gorman. Robert “Bo” Nnanwubas, 29, was incarcerated at Calhoun State Prison in Morgan, Georgia when he and others conspired to impersonate federal agents to defraud health care workers across the country. Prosecutors will ask that eight months in federal prison be added to Nnanwubas state sentence when he is sentenced by U.S. District Judge John C. Coughenour on March 12, 2024.
According to the plea agreement, Nnanwubas and others used contraband cell phones and Voice Over Internet Protocol (VOIP) technology to call victims and impersonate law enforcement personnel, including Deputy U.S. Marshals. The “Marshal” would tell the victim that a subpoena had been issued for the victim to appear and testify in court, and since the victim did not appear, a warrant had been issued for their arrest. The caller would say the warrant could be “quashed” if the victim sent money via Zelle or another digital payment system.
The conspirators targeted health care workers across the country. In March 2022, Nnanwubas’ Zelle account received approximately $15,000 in payments from eight different victims. An additional $5,300 was sent to Nnanwubas via Paypal and Venmo by three additional victims.
In a call to a Seattle area victim, Nnanwubas or his co-conspirators claimed to be “Deputy Marshal Gary Hartnett,” and demanded the victim return the call to what appeared to be a Seattle number. The scammers told the victim that two subpoenas had been sent to her place of work and that she needed to make payment, or she would be arrested. They also claimed there was a gag order in the case so that the victim could not consult a lawyer or other legal or law enforcement expert. The caller demanded the victim pay $2,000 or she would be arrested. The caller even told the victim she would have to turn herself in at the federal courthouse at 700 Stewart Street in Seattle. The schemers used as many correct details as possible to try to convince the victims to pay. The Seattle victim did not send money.
In the plea agreement Nnanwubas agrees to pay restitution to the victims of $15,300.
“This case should serve as a reminder that legitimate government workers will not call and demand payment via Zelle, Venmo or some other digital means,” said Acting U.S. Attorney Tessa M. Gorman. “The Courts and our federal partners do not demand money or any kind of payment in response to a subpoena. If you get a call like this, just hang up.”
The case was investigated by the FBI with assistance from the U.S. Marshals Service. The case is being prosecuted by Assistant United States Attorney Cindy Chang.
Georgia Man Admits Role in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Georgia man and operator of a marketing company today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.
Nicco Romanowski, 31, of Roswell, Georgia, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From June 2017 through May 2019, Romanowski participated in a scheme with durable medical equipment (DME) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Romanowski operated a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME. Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Romanowski and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Romanowski and his company paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient. Romanowski and his business partner, Eric Karlewicz, then steered the doctor’s orders to DME suppliers around the country, with which Romanowski and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Romanowski and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.
In total, Romanowski and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Karlewicz previously pleaded guilty to an information charging conspiracy to violate the anti-kickback statute and conspiracy to commit health care fraud.
The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 21, 2024.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; and special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.
romanowski.information.pdfFour Co-Conspirators Sentenced After Pleading Guilty to Wire FraudRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that JAMES THOMAS SINYARD, a/k/a Jay Sinyard (“J. SINYARD”), MARY GIGI SINYARD a/k/a Gigi Sinyard (“M. SINYARD”), JOHN SUTTON (“SUTTON”), and MARC QUIROZ (“QUIROZ”), were sentenced after each previously pled guilty to one count of wire fraud.
According to the bills of information, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ co-owned and operated companies called VetAttend of Jackson, LLC, and VetAttend Professional Services, LLC of Mandeville, Louisiana, where they purported to provide home aid and assistance services to veterans .
On December 5, 2023, J. SINYARD was sentenced to 6 months of imprisonment, followed by 3 years of supervised release. M. SINYARD was sentenced to one month of imprisonment, followed by 3 years of supervised release.
On December 11, 2023, SUTTON was sentenced to 24 months of imprisonment, followed by 3 years of supervised release.
On December 14, 2023, QUIROZ was sentenced to 17 months of imprisonment, followed by 3 years of supervised release. Additionally, J. SINYARD, M. SINYARD, SUTTON, and QUIROZ each was ordered to pay a $100.00 mandatory special assessment fee.
According to the bill of information that described the fraudulent scheme of J. SINYARD and M. SINYARD, the duo submitted more than one hundred fraudulent application affidavits for veterans and/or their surviving spouses, to the Department of Veterans Affairs (“VA”), falsely indicating that VetAttend of Jackson was already providing services to these veterans. As a result, from approximately August 2014 to approximately December 2020, the VA issued funds to over 70 veterans and/or their surviving spouses from whom VetAttend of Jackson fraudulently mis-appropriated approximately $2,136,329.68.
According to the bills of information for SUTTON and QUIROZ, they submitted fraudulent affidavits for home aid services allegedly provided, knowing that those services were not actually provided. More particularly, as part of their fraud scheme, from approximately April 2013 until at least July 2018, SUTTON and QUIROZ submitted fraudulent affidavits and applications to the VA on behalf of veterans and their spouses, falsely claiming that VetAttend had actually provided home services to the veterans. As a result,, the VA issued approximately $4,065,969.18 to over 300 veterans and/or their surviving spouses that SUTTON and QUIROZ mis-appropriated, all without the knowledge of the veterans .
“These sentencings send a clear message that those who would exploit veterans to commit fraud will be investigated and held accountable,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South-Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.”
The case was investigated by the Department of Veterans Affairs Office of Inspector General.
The prosecution of the case was handled by Assistant United States Attorney Kathryn McHugh of the Financial Crimes Unit.
Former owner of Everett and Lynnwood restaurants sentenced to 10 months in prison for multi-year tax fraudRead the Press Release
Seattle – The 45-year-old former owner of two Snohomish County restaurants was sentenced today in U.S. District Court in Seattle to 10 months in prison, a $10,000 fine and two years of supervised release for tax evasion announced Acting U.S. Attorney Tessa M. Gorman. Si Yong Kim failed to pay taxes on more than $1.7 million in income at two sushi restaurants: Oshima and Si Joy. At the sentencing hearing, U.S. District Judge James L. Robart was particularly incensed that Kim had taken government aid in the form of Paycheck Protection Program loans during the pandemic. “Here is a man who is withholding his taxes to the treasury but is perfectly willing to take taxes from the treasury to keep his businesses afloat…. It is highly troublesome that this went on for an extensive period of time,” Judge Robart said.
“Our tax system operates on an honor system where we expect our taxpayers to pay their fair share,” said Acting U.S. Attorney Gorman. “In this case Mr. Kim didn’t cheat to keep his restaurants afloat, rather he used the money that should have gone to taxes for expensive watches, designer shoes and accessories, and jewelry. He used the money for investments and to pay off the mortgage on his home in Mukilteo. That conduct is an affront to all who scrimp and struggle to pay their fair share.”
According to records filed in the case between 2016 and 2020, Kim underreported the income at his restaurants by more than $1.7 million. He did this by keeping cash proceeds and periodically depositing the cash to his personal bank account or keeping the cash at his home. He paid his employees in cash and failed to pay over various employment taxes. He also overestimated the costs associated with the two restaurants.
When law enforcement executed a search warrant at Kim’s Mukilteo home and at his businesses in June 2022, they discovered he kept handwritten books in which he documented the actual gross income and legitimate expenses for his restaurants and noted a separate figure—a “CPA number”—that provided to his accountant for tax purposes. The CPA number omitted the cash receipts for his restaurants and understated credit card charges as well. The search also revealed an extensive collection of designer goods, large amounts of cash, and records that indicated employees were paid under the table. Kim also used the proceeds from his scheme to invest in properties in Georgia and to pay off his home mortgage.
An analysis by the Internal Revenue Service Criminal Investigation revealed that in each calendar year from 2016 to 2020 Kim failed to report his actual income for each restaurant. In 2017 he failed to report more than $586,395 in income.
Kim has paid restitution of $511,750.
In asking for a one-year prison sentence, Assistant United States Attorney Lauren Watts Staniar noted that the public needs to see that there is punishment for illegally evading taxes. Kim’s “tax fraud was meticulous and deliberate: he kept thorough handwritten books for his restaurants in which he calculated income and expenses. At the end of each month, he wrote down a ‘CPA Number’ that omitted his restaurants’ cash receipts and understated credit card receipts by several thousands of dollars…. He ha(d) cash stashed throughout his home, drives luxury cars, and proudly displays Rolex watches in a locked case. This is not a circumstance in which a struggling business owner underreported income to keep the lights on. Kim had the means to pay his taxes, he just chose not to.”
In court today Kim’s lawyer said he had already sold the sushi restaurant in Everett.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
Former Uniontown Resident Sentenced to 25 Years in Prison for Child Sexual Exploitation OffensesRead the Press Release
PITTSBURGH, PA - A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to 300 months’ imprisonment (25 years) on his conviction for twelve counts of child sexual exploitation, including the production and attempted production of material depicting the sexual exploitation of a minor, and possession of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
United States District Judge W. Scott Hardy imposed the sentence on David Straitiff and ordered that following his release from incarceration, Straitiff be placed on supervised release for life.
According to information presented to the court, Straitiff sexually assaulted four minors under his care, including the minor identified in the Indictment as Minor A, for a period of ten years. The assaults began when the minors were as young as three years old. Among other acts, Straitiff recorded his sexual abuse of the minors and forced them to watch videos of the assaults to convince them to submit to additional abuse. Law enforcement recovered a thumb drive following a search of Straitiff’s residence containing child sexual abuse material produced on various dates between 2010 and 2012.
In sentencing the defendant, Judge Hardy described Straitiff’s crimes as “extremely disturbing,” and stated that the conduct indicates “true depravity” and “a disturbing betrayal of trust.” Judge Hardy also acknowledged the “profound trauma” Straitiff caused the victims of his crimes.
Assistant United States Attorney Karen Gal-Or prosecuted this case on behalf of the government.
United States Attorney Olshan commended Homeland Security Investigations – Pittsburgh and the Pennsylvania State Police for the investigation leading to the successful prosecution of Straitiff. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Paralegal for Chicago Law Firm Admits Embezzling Bankruptcy Estate FundsRead the Press Release
CHICAGO — A former paralegal for a Chicago law firm has pleaded guilty to a federal fraud charge for embezzling more than $600,000 from bankruptcy estate accounts.
BECKY LOUISE SUTTON fraudulently embezzled the funds from 2009 to 2018 while working on bankruptcy matters for the law firm. Sutton admitted in a plea agreement that she embezzled money from more than 40 bankruptcy estate accounts and several liquidating trust accounts in Chapter 7 and Chapter 11 matters on which she worked. Sutton orchestrated fraudulent transfers of bankruptcy funds from fiduciary bank accounts intended for creditors to accounts she controlled, including her personal bank account, credit card account, student loan account, and mortgage account. In one instance, Sutton used a company with a name similar to a true creditor to disguise her fraudulent diversion of the funds. Sutton admitted in the plea agreement that her conduct victimized not only the creditors, but also her law firm, a partner at the firm for whom she worked, and the U.S. Trustee Program, among others.
Sutton, 67, of Austin, Texas, and formerly of Park Forest, Ill., pleaded guilty on Dec. 14, 2023, to a charge of wire fraud. The conviction is punishable by up to 20 years in federal prison. U.S. District Judge Mary M. Rowland set sentencing for April 2, 2024, at 11:00 a.m.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Trustee Program. The government is represented by Assistant U.S. Attorney Kartik K. Raman.
Sutton plea agreementFormer Alabama Department of Corrections Lieutenant Sentenced for Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
BIRMINGHAM, Ala. – A former Alabama Department of Corrections (ADOC) lieutenant, Mohammad Shahid Jenkins, 52, was sentenced today to 87 months in prison followed by three years of supervised release for using excessive force on an inmate and lying afterwards in an official report in an attempt to cover up his abuse. He previously pleaded guilty to these offenses on Sept.12.
“Lieutenants and Shift Commanders set the tone for less experienced officers whom they supervise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Jenkins abused his position of power to commit an egregious assault on a restrained inmate, in an isolated location of the prison, over the course of five minutes. He is being held accountable for his actions, and the Justice Department will continue to hold accountable law enforcement officers who violate the civil rights of every American, including those who are incarcerated.”
“Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “The physical abuse of prisoners in violation of the Constitution threatens the safety of the entire institution, officers and inmates alike. We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”
“This sentence sends a strong message that the FBI remains committed to protecting the civil rights of all people, including those in prison custody,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “This individual's conduct is not reflective of the honor and professionalism with which the men and women of law enforcement exemplify. The FBI Birmingham Division is proud to work alongside the Civil Rights Division and ADOC to bring justice to these victims and remain steadfast in addressing all Color of Law allegations.”
According to court documents and evidence introduced at sentencing, Jenkins, former William E. Donaldson Correctional Facility Lieutenant and Shift Commander, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe, while V.R. was restrained inside of a holding cell and not posing a threat.
Over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R., and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report and later Jenkins lied to investigators by denying using any force on V.R.
As part of the plea agreement, Jenkins also admitted that he used unlawful force on another inmate on a separate occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while he was suffering from the effects of chemical spray.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Alabama Department of Corrections Lieutenant Sentenced for Civil Rights and Obstruction Offenses for Assaulting a Restrained Inmate and Lying to Cover It UpRead the Press Release
A former Alabama Department of Corrections (ADOC) lieutenant, Mohammad Shahid Jenkins, 52, was sentenced today to 87 months in prison followed by three years of supervised release for using excessive force on an inmate and lying afterwards in an official report in an attempt to cover up his abuse. He previously pled guilty to these offenses on Sept 12.
“This defendant was a lieutenant with more than 20 years of experience and a supervisor who was supposed to set an example of what proper law enforcement looks like for the less experienced officers he oversaw,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant abused his position of power to repeatedly and viciously assault a restrained inmate, returning to the inmate’s cell several times to renew the assault. We are committed to holding accountable law enforcement officers who violate the civil rights of any American, including those who are incarcerated in our jails and prisons.”
“Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “The physical abuse of prisoners in violation of the Constitution threatens the safety of the entire institution, officers and inmates alike. We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”
“This sentence sends a strong message that the FBI remains committed to protecting the civil rights of all people, including those in prison custody,” said Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Field Office. “This individual's conduct is not reflective of the honor and professionalism with which the men and women of law enforcement exemplify. The FBI Birmingham Division is proud to work alongside the Civil Rights Division and ADOC to bring justice to these victims and remain steadfast in addressing all Color of Law allegations.”
According to court documents and evidence introduced at sentencing, Jenkins, former William E. Donaldson correctional facility lieutenant and shift commander, who had more than 20 years of experience in law enforcement, used excessive force on inmate V.R. Specifically, on Feb. 16, 2022, Jenkins willfully deprived inmate V.R. of his right to be free from excessive force by kicking him, hitting him, spraying him with chemical spray, striking him with a can of chemical spray and striking him with a shoe while V.R. was restrained inside of a holding cell and not posing a threat.
Over the course of approximately five minutes and outside the presence of other officers and inmates, Jenkins repeatedly re-entered the holding cell that V.R. was in and re-assaulted him numerous times. Jenkins used a dangerous weapon — chemical spray and the can of chemical spray — on V.R., and his attacks on V.R. caused V.R. to suffer bodily injury. Following his assault on V.R., Jenkins authored a false incident report and later Jenkins lied to investigators by denying using any force on V.R.
As part of the plea agreement, Jenkins also admitted that he used unlawful force on another inmate on a separate occasion at Donaldson. Specifically, on Nov. 29, 2021, Jenkins willfully deprived inmate D.H. of his right to be free from excessive force by repeatedly spraying D.H. with chemical spray while D.H. was handcuffed behind his back and compliant, by hitting D.H. in the head with the can of chemical spray and by delivering an open-hand strike to D.H.’s head while he was suffering from the effects of chemical spray.
The FBI Birmingham Field Office investigated the case with the assistance of ADOC’s Law Enforcement Services Division.
Assistant U.S. Attorney George Martin for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida man sentenced to prison in India-based computer hacking scheme that stole $150,000 from elderly Kalispell womanRead the Press Release
MISSOULA — A Florida man who admitted his role in an India-based computer hacking scheme that stole $150,000 from an elderly Kalispell woman was sentenced today to two years and nine months in prison and ordered to pay $1,236,470 in restitution to seven victims, U.S. Attorney Jesse Laslovich said.
Eddly Joseph, 44, of Gainesville, Florida, pleaded guilty in August to wire fraud.
U.S. District Judge Donald W. Molloy presided. The court also imposed two years of supervised release following Joseph’s prison sentence.
“Far too often, these internationally-based fraud schemes result in no accountability for those who prey on Montanans. But not this time. Due to the diligent work of the FBI, Joseph was caught and is now going to federal prison for running a predatory scheme by tricking and stealing from elderly victims across the country, including a Kalispell woman. As this case showed, we will turn over every rock to pursue these fraudsters, but the best thing Montanans can do to protect themselves is to not send money to people who randomly call soliciting money due to some kind of fake emergency, such as an alleged virus existing on your computer,” U.S. Attorney Laslovich said.
The government alleged in court documents that in February, Glacier Bank notified the FBI that Jane Doe, a Montana woman in her 70s, was the victim of a scam. The international, India-based scam included fraudsters tricking Jane Doe into giving them $150,000 for “safe-keeping.” The fraudsters made it appear as if victims had a virus on their computers and that their bank accounts were accessible to hackers. To “safekeep” the victims’ money, Joseph and others directed victims to withdraw cash and give it to them so the hackers could not access and steal the victims’ money. After learning of the scam, the FBI set up a ruse, claiming Jane Doe had an additional $50,000 for the fraudsters. When Joseph and others arrived to collect the money, the FBI arrested them. As a result of Joseph’s and others’ conduct, victims across the United States were repeatedly scammed, with a total loss of $1,236,470.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case. The FBI and Flathead County Sheriff’s Office conducted the investigation.
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Florida Siblings Charged in Multimillion-Dollar Medicare Scheme Based on Fraudulent Billing for Durable Medical EquipmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services - Office of Inspector General (“HHS-OIG”), announced today the arrests of ERIN FOLEY and TED ALBIN on charges of health care fraud and conspiracy to violate the Anti-Kickback Statute. As alleged in a four-count Indictment unsealed today in federal court, FOLEY and ALBIN ran a Medicare billing company that they used to bill Medicare for more than $25 million in fraudulent claims for durable medical equipment (“DME”), and on which Medicare and related private insurers paid out more than $9 million. FOLEY and ALBIN are also charged with illegally buying such DME orders for use in their own DME supply companies and with introducing buyers to sellers in return for additional kickbacks.
FOLEY is expected to be presented later today before U.S. Magistrate Judge William Matthewman in West Palm Beach, Florida. ALBIN is expected to be presented this afternoon before U.S. Magistrate Judge Shaniek M. Maynard in Fort Pierce, Florida. The case was assigned to U.S. District Judge John G. Koeltl in Manhattan.
U.S. Attorney Damian Williams said: “Medicare is a valuable taxpayer-funded program designed to provide affordable health care to people over 65 or with disabilities, not to line the pockets of those who would enrich themselves through fraud. Here, the defendants are charged with illegally profiting from the purchase and sale of millions of dollars’ worth of bogus orders for medical equipment, bilking Medicare in the process. Such illicit conduct can affect the availability of medical services and drive up the cost of health care, but the career prosecutors of this office and our law enforcement partners will remain diligent in protecting these vital taxpayer-funded programs.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Violations of the Anti-Kickback Statute involving durable medical equipment can waste scarce federal health care program funds and corrupt the medical decision-making process. Individuals who participate in the federal health care system are required to obey laws meant to preserve both the integrity of program funds and the provision of appropriate, quality services to patients.”
According to statements made in court and publicly filed documents in this case:[1]
From at least 2018 through 2021, FOLEY and ALBIN owned and controlled Grapevine Professional Services, Inc. (“Grapevine”), a billing company that they used to bill Medicare for more than $25 million, and to collect more than $9 million, through claims based on orders for DME that had been unlawfully sold and bought. Such billing included both billing directly to Medicare through Medicare Part B and billing to private insurance companies that were reimbursed through Medicare Part C. Most of these unlawful purchases of DME orders were by Grapevine customers that were registered with Medicare as DME supply companies. Additional unlawful purchases were made directly by FOLEY and ALBIN through three DME supply companies that they themselves owned and controlled. Once these DME orders were unlawfully purchased, FOLEY and ALBIN used those orders as the basis for fraudulent claims to Medicare and to private insurers covered by Medicare Part C.
In addition, FOLEY and ALBIN acted essentially as brokers of DME orders, introducing Grapevine customers who wished illegally to buy DME orders to co-conspirators who illegally sold them orders. In return for such introductions of buyers to sellers, FOLEY and ALBIN received additional kickbacks, both in the form of cash and in the form of additional DME orders. FOLEY and ALBIN also profited through these introductions by gaining additional illegal billing business for Grapevine. Following these introductions, FOLEY and ALBIN continued to oversee the relations between buyers and sellers of DME orders, for example by tracking how many orders particular sellers owed to particular buyers.
* * *
FOLEY, 46, of Loxahatchee, Florida, and ALBIN, 46, of Stuart, Florida, are each charged with conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; health care fraud, which carries a maximum sentence of 10 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HHS-OIG.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Rushmi Bhaskaran are in charge of the prosecution.
The charges contained in the Indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Federal Jury Convicts U.S. Customs and Border Protection Officer of Depriving a U.S. Citizen of RightsRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Gilberto Carreon Jr., Special Agent in Charge of Customs and Border Protection, Office of Professional Responsibility in El Paso, Texas, announced today that a federal jury returned two guilty verdicts against Oscar Orrantia after five hours of deliberation. The jury convicted Orrantia on one count of deprivation of a right and one count of falsification of records. Judge Margaret I. Strickland presided.
A federal grand jury issued a Second Superseding Indictment accusing Orrantia of two felony offenses on Nov. 15, 2023. According to evidence presented at trial and other publicly available court records, on June 18, 2019, Orrantia, who was then an officer with Customs and Border Protection (CBP), was checking travelers who were coming into the United States via the Columbus Port of Entry. A 63-year-old male United States Citizen, who is identified as John Doe in the indictment, entered the primary inspection area. John Doe lived in Deming, New Mexico and often traveled to Mexico to run errands. When John Doe pulled up to primary, he complained in Spanish that it was hot outside. Orrantia responded that John Doe should not cross the border. John Doe then declared that he was bringing pills and handed a package to Orrantia. At some point, John Doe tried to look at Orrantia’s name tag. Orrantia testified when this happened, he thought John Doe was going to make a complaint against him. Switching to English, Orrantia repeatedly and in swift succession demanded to know if John Doe was threatening him.
At trial, experts testified that Orrantia’s conduct escalated the encounter. Two different experts testified that officers with CBP are trained in de-escalation techniques.
Instead of deescalating, Orrantia ordered John Doe to get out of the vehicle but gave him no time to comply. Instead, Orrantia reached into the vehicle to forcibly unbuckle John Doe’s seatbelt. Once out of the vehicle, Orrantia turned John Doe to face away from him and told John Doe that he was going to knock him down. Two seconds later, Orrantia made good on his threat, resulting in John Doe hitting his head against a nearby brick barrier. Orrantia proceeded to take John Doe all the way to the ground, although Orrantia himself admitted that he could have handcuffed John Doe while he was still standing. While John Doe was handcuffed and face down on the ground, Orrantia told another officer that that John Doe was “fucking being a dick,” and was resisting when told to get out of the vehicle.
An expert with CBP with the Less Lethal Training Branch opined that the take-down maneuver used by Orrantia was not a technique taught by CBP, and that there was not enough space to do a proper take-down in the first place. That same expert opined that Orrantia had acted contrary to his training during the encounter.
John Doe sustained bruising to his body and head as a result. A paramedic testified that John Doe had a hematoma, and an emergency room doctor who saw John Doe two days later testified that John Doe had bruising and discoloration of the skin which was consistent with a blunt force trauma injury. After John Doe was checked by paramedics, he was free to go. There was no indication he had committed any crime when he attempted to enter the United States.
Following the incident, Orrantia wrote a report that contained numerous false statements including allegations that John Doe had thrown the package he was declaring at Orrantia. At trial, video footage disproved this claim, depicting John Doe handing the package to Orrantia.
Orrantia also claimed that John Doe twice stated he was not going to get out of the vehicle. The same footage captured audio from the entire interaction and proved that John Doe in fact asked Orrantia to let him take off his seatbelt first. Orrantia’s own use of force expert admitted that the report contained false statements.
“Those that wear the badge are expected to treat members of the public they serve with the utmost dignity and respect,” said U.S. Attorney Uballez. “When an officer abuses their position, they erode the trust of the community we serve. We will scrupulously investigate, and vigorously prosecute, those who abuse the public trust and then try to cover up their misdeeds. The uniform will not protect you from justice.”
“The success of this investigation demonstrates the critical importance of fostering collaboration between law enforcement professionals,” said Special Agent in Charge Carreon. “The efforts rendered by all led to Officer Orrantia’s conviction and the continued accountability of those entrusted to serve the public.”
Orrantia will remain on conditions of release pending sentencing, which has not been scheduled. At sentencing, Orrantia faces up to 10 years in prison for deprivation of rights and up to 20 years in prison for falsifying records.
This case was investigated by Customs and Border Protection Office of Professional Responsibility (CBP OPR) with assistance from the Federal Bureau of Investigation, CBP Law Enforcement Safety & Compliance Less Lethal Training Branch, CBP Office of Assistant Chief Counsel, Department of Homeland Security, Office of Inspector General (DHS OIG) and the United States Marshals Service. Assistant U.S. Attorneys Marisa Ong and Eliot Neal are prosecuting this case.
View the Second Superseding Indictment# # #
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EDVA Collects over $25M for Crime Victims and Taxpayers in Fiscal Year 2023Read the Press Release
ALEXANDRIA, Va. – U.S. Attorney Jessica D. Aber announced today that the U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) collected over $25 million in criminal and civil actions in Fiscal Year (FY) 2023.
Of the $25 million amount collected, roughly $16.9 million was collected in criminal actions and $ 5.7 million was collected in civil actions pursued independently by EDVA.
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $3.1 million in cases pursued jointly by these offices. Of this amount, $513,031 was collected in criminal actions and over $2.5 million was collected in civil actions.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. In FY 2023, the U.S. Attorney’s Office in EDVA collected over $16,254,828.05 in restitution for crime victims. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets are either deposited into the Department of Justice Assets Forfeiture Fund or are used to restore funds to crime victims. Assets deposited into the Assets Forfeiture Fund are used for a variety of law enforcement purposes. EDVA cases that resulted in significant forfeiture this past year include USA vs. Gao et al— where defendants agreed to forfeit four vehicles, over $130,000 in U.S. currency, numerous items of jewelry, a gold bar, and three personal residences, with a combined value totaling over $1 million— and USA v. Xizhi Li, et al, where defendant Jianxing Chen was ordered to forfeit $6 million after laundering millions of dollars of drug proceeds on behalf of international drug trafficking organizations
U.S. Attorney Aber extends her gratitude to the attorneys and staff in EDVA’s Asset Recovery Unit, who are responsible for ensuring that these significant funds are recovered in full to victims and the public fisc.
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.
District Man Found Guilty on 10 Counts Related to Drug Trafficking and Firearms OffensesRead the Press Release
WASHINGTON – Antonio Christian Payne, 30, of Northeast Washington D.C. was found guilty by a federal jury today on 10 felony charges related to drug trafficking and firearms offenses in the District of Columbia.
The jury verdict, which followed a five-day trial in U.S. District Court, was announced by U.S. Attorney Matthew M. Graves, Special Agent-in-Charge Craig Kailimai of the Washington Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department.
Payne remains held pending his sentencing before the Honorable Tanya S. Chutkan scheduled for Apr. 17, 2024.
According to the government’s evidence, MPD launched an investigation into Payne’s activities on Apr. 18, 2022, following a daylight drive-by shooting near Payne’s stash house at 2430 Baldwin Cres, NE.
The shooter apparently had targeted Payne’s cousin, who had escaped without injury. Officers responded to the scene within minutes and were let into the home where Payne and his cousin were staying, where they attempted to investigate the shooting and determine if Payne’s cousin needed medical aid. At the same time, officers and detectives canvassed the area for witnesses and ultimately reviewed surveillance footage which revealed that minutes prior to the drive-by, Payne had brandished a firearm at the suspect who later did the shooting after that suspect had attempted to access Payne’s car and garage, both of which were later found to have narcotics and ammunition in them.
On discovering this information, officers seized the residence and applied for an emergency search warrant, which they obtained that evening. During their search, officers recovered six firearms (one ghost rifle, one .22 caliber rifle, and four semi-automatic 9mm pistols), sundry rounds of ammunition of various calibers, magazines, firearms-accessories (including a ballistic vest designed to withstand rifle-rounds), almost 750 grams of fentanyl, 240 grams of cocaine powder, 175 grams of cocaine base, 130 grams of methamphetamine, 12 kilograms of marijuana, and dozens upon dozens of oxycodone pills, along with nearly $30,000 in U.S. currency.
The jury today found Payne guilty of unlawful possession with intent to distribute 400 grams or more of fentanyl; unlawful possession with intent to distribute 50 grams or more of methamphetamine; unlawful possession with intent to distribute marijuana; unlawful possession with intent to distribute cocaine hydrochloride; unlawful possession with intent to distribute cocaine base; unlawful possession with intent to distribute Oxycodone; unlawful opening and maintenance of a premises to manufacture and distribute a controlled substance; using, carrying, and possession of a firearm in furtherance of a drug trafficking offense; using carrying, and possession of a firearm during and in relation to a drug trafficking offense; and carrying a pistol without a license.
In announcing the verdict, U.S. Attorney Graves, SAC Kailimai, and Chief Smith, applauded the work of MPD officers and detectives and commended the ATF Special Agents who subsequently investigated the case.
This case was prosecuted by Assistant U.S. Attorneys Will Hart and Solomon Eppel of the Violence Reduction and Trafficking Offenses Section. Valuable assistance was provided by paralegal Peter Gaboton, Assistant U.S. Attorney Josh Gold, and former Special Assistant U.S. Attorney Mike Engallena who assisted in the investigation and charging of this case. Graves, Kailimai, and Smith also praised Leif Hickling and Charlie Bruce of LitTech, and VRTO supervisory paralegal Mary Downing for their assistance on this case.
Dallas County individuals indicted in investment fraud and money laundering schemeRead the Press Release
PLANO, Texas – Three individuals have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Marina Brooks, 67; Charles “Chuck” Brooks, 71; and Crystal Brooks, 35, were named in the two-count indictment returned by a federal grand jury on Dec. 14, 2023, in the Eastern District of Texas. The indictment charges the defendants with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendants made their initial appearances today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
The defendants are alleged to have engaged in a large-scale investment fraud scheme targeting individuals in the Mexican-American community. According to the indictment, the defendants and their co-conspirators fraudulently solicited “investments” for a multitude of schemes, such as concert series and cryptocurrency-related projects. Through marketing seminars, radio advertisements, and in-person meetings, the defendants fraudulently represented that these investment opportunities would yield significant returns relative to market standards. However, the defendants are alleged to have transferred the victim investor funds to other business and personal accounts, took out commissions and cash withdrawals, and lost over 95% of the funds taken from victim investors. In all, the defendants fraudulently took at least $9.5 million from at least 100 victim investors.
If convicted, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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DOJ Unseals Charges Against Iranian and Chinese Nationals for Procurement Fraud Involving the Acquisition of Components for Drones on Behalf of the Iranian GovernmentRead the Press Release
WASHINGTON - Today, the Department of Justice unsealed an indictment charging two men - Iranian National Hossein Hatefi Ardakani (“Ardakani”) and Chinese National Gary Lam - with crimes related to the procurement of U.S.-manufactured dual-use microelectronics for Iran. Concurrent with this unsealing, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Ardakani and Lam, also identified by OFAC as Lin Jinghe, as well as two other individuals and 10 entities involved in the procurement network used by Ardakani in support of the Islamic Revolutionary Guard Corps Aerospace Force Self Sufficiency Jihad Organization’s one-way attack unmanned aerial vehicle (“UAV” or drone) program.
The indictment alleges that between at least September 2014 and September 2015, Ardakani and Lam, who was based in China and Hong Kong, as well as other associates, conspired to illegally purchase and export from the United States to Iran dual-use microelectronics that are commonly used in UAV production, including high electron mobility transistors (HEMTs), monolithic microwave integrated circuit (MMIC) power amplifiers, and analog-to-digital converters. Each of these components is subject to U.S. export controls for anti-terrorism, national security, and regional stability reasons.
“Today’s announcements show that we remain focused on disrupting the efforts of Iran and its agents to circumvent U.S. sanctions in support of Iran’s weapons programs, including its drone program, which have been used to support and supply terrorist organizations and other foreign adversaries – such as Russia – around the globe,” said U.S. Attorney Matthew M. Graves. “This whole-of-government approach is one more step in stopping the acquisition of drones for nefarious purposes such as attacks on innocent civilians and civilian infrastructure.”
“Today’s coordinated action with the Treasury Department demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”
“U.S. technology has zero place in Iranian UAVs,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod for the Department of Commerce. “As these allegations demonstrate, those who procure dual-use microelectronics for the Islamic Revolutionary Guard Corps will be held accountable.”
“Ardakani and his co-conspirators crafted a sophisticated web of front companies to obscure the illicit acquisition of U.S. and foreign technology to procure components for deadly UAVs,” said Special Agent in Charge Michael J. Krol, of Homeland Security Investigations’ New England Office. “These very components have been found in use by Iran’s allies in current conflicts, including in Ukraine. The disruption of these criminal networks by Homeland Security Investigations means that hundreds of thousands of critical UAV components will never again be used for malign purposes.”
The indictment further alleges that on four separate occasions Ardakani and his co-conspirators used a web of foreign companies to accomplish their obfuscation and evasion efforts. For example, between June and September 2015, Ardakani and Lam caused an unwitting French company to purchase from a U.S. company several pieces of analog-to-digital converters with applications in wireless and broadband communications, radar and satellite subsystems, multicarrier, multimodal cellular receivers, antenna array positioning, and infrared imaging. Lam then caused a division of the French company to ship the analog-to-digital converters to Hong Kong, where they were reexported to Iran. A variation of this tactic – involving witting and unwitting companies in Canada, Hong Kong, and China – was used on the other three occasions.
In addition to the indictment, a separate seizure action targeting Nava Hobbies SDN BHD (“Nava Hobbies”) and its property was unsealed today. Nava Hobbies is one of the 10 entities designated by OFAC in its action announced today. The funds are subject to seizure based on violations of U.S. law, including U.S. economic sanctions targeting Iran and money laundering violations. The seizures, totaling nearly $600,000, aim to further degrade this network’s ability to procure UAV components. Proceedings involving this property remain ongoing.
This case is being investigated by the FBI’s Detroit Field Division, led by Special Agent in Charge Cheyvoryea Gibson, Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS).Homeland Security Investigations (HSI), the Department of Commerce, Bureau of Industry and Security (BIS), and the Defense Criminal Investigative Service (DCIS).
The case is being prosecuted by Assistant U.S. Attorney Jolie Zimmerman of the U.S. Attorney’s Office for the District of Columbia, with valuable assistance from Assistant U.S. Attorney Sean Heiden of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Heather Schmidt and Brendan Geary of the Counterespionage and Export Control Section of the Justice Department’s National Security Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
D.C. Man Charged with Killing Two BrothersRead the Press Release
WASHINGTON – Ronzoni Allen Jackson Jr., 24, of the Washington, D.C. area, was arrested yesterday on charges of first degree murder while armed stemming from the shooting homicides of two brothers - 28-year-old Octavio and 35-year-old Osmine Quintano - just after midnight, on Tuesday, December 12, 2023, near The Pollo Company at 2314 4th Street NE,
U.S. Attorney Matthew M. Graves announced.
Defendant Jackson was arraigned on two counts of premeditated first degree murder while armed in D.C. Superior Court, Courtroom C-10, where he entered a plea of not guilty. The Honorable Magistrate Judge Judith Pipe found probable cause that the defendant committed the two murders and held him without bond pending his preliminary hearing on January 2, 2024 at 9:30 a.m., before Judge Epstein in Courtroom 233.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and Assistant United States Attorney Sarah Santiago for her efforts in prosecuting this case.