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Monday 18 December 2023
Convicted Felon Sentenced to 63 Months in Prison for Illegally Possessing AmmunitionRead the Press Release
BIRMINGHAM, Ala. – A convicted felon was sentenced today for illegally possessing ammunition, announced U.S. Attorney Prim F. Escalona and Bureau Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
Chief U.S. District Court Judge L. Scott Coogler sentenced Deandrea Darnelle Young to 63 months in prison for being a felon in possession of ammunition. Young was convicted of this charge at trial in July.
“We will continue to use every resource available to remove ammunition and firearms from prohibited persons.” U.S. Attorney Escalona said. “Partnerships with our federal, state, and local law enforcement are an integral part of our efforts to fight violent crime and keep our communities safe.”
“Thanks to the hard work and dedication of the men and women of ATF and the Tuscaloosa Police Department for their efforts to confront violent crime,” Assistant Special Agent in Charge Ash Lightner said. “We will continue to work together tirelessly to keep our communities safe from people who endanger our neighborhoods.”
According to evidence presented at trial, on February 27, 2022, a Tuscaloosa Police Department officer conducted a traffic stop on Young. Upon making contact with Young, the officer asked for his driver’s license and insurance. Young ignored the officer’s repeated requests for information and fled from the scene in the vehicle. The officer chased Young and found the vehicle abandoned in an apartment complex. During the search of the vehicle the officer found 10 rounds of Igman 9mm ammunition underneath clothing belonging to Young. The officer did not find a firearm.
Young is prohibited from having ammunition because of multiple prior felony convictions. Young was convicted on January 10, 2013, in the U.S. District Court for the Northern District of Alabama, of Felon in Possession of a Firearm. On August 15, 2012, he was convicted in the Circuit Court of Tuscaloosa County, Alabama, of Unlawful Possession of a Controlled Substance and of two counts of Unlawful Possession of Marijuana, First Degree. On November 9, 2011, Young was convicted in the Circuit Court of Tuscaloosa County, Alabama, of Burglary, First Degree and of Unlawful Possession of Marijuana First Degree.
The ATF investigated the case along with the Tuscaloosa Police Department. Assistant U.S. Attorneys Brittney L. Plyler and Catherine Crosby prosecuted the case.
Community Health Network Agrees to Pay $345 Million to Settle Alleged False Claims Act ViolationsRead the Press Release
INDIANAPOLIS – Community Health Network, Inc. (Community), a healthcare network headquartered in Indianapolis, Indiana, 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. 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,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The United States alleged that Community Health Network overpaid its doctors, and that it 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 Justice Department’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 the U.S. Department of Health and Human Services Office of Inspector General (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 the Office of Inspector General for the Department of Health and Human Services.
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. Mr. 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 the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
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, from the Southern District of Indiana. The litigation team received investigative support from the Federal Bureau of Investigation and the Department of Health and Human Services, Office of the Inspector General.
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.Charleston Man Sentenced to 11 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathon Dewayne Eads, 37, of Charleston, was sentenced today to 11 years in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, on October 7, 2022, Eads sold approximately 227 grams of methamphetamine for $1,500 to a confidential informant at a Garrison Avenue residence in Charleston. Eads and his co-defendant sold quantities of methamphetamine totaling approximately 392 grams to a confidential informant in Charleston on June 14, 2022, August 21, 2022, and October 7, 2022.
Eads has a long criminal history that includes multiple prior convictions. In Kanawha County Magistrate Court, Eads was convicted of conspiracy and operating a clandestine drug lab on January 24, 2007, possession of a controlled substance on March 31, 2011, and possession of a controlled substance on April 4, 2013. In Kanawha County Circuit Court, Eads was convicted of fleeing on April 22, 2015, and of two counts of possession with intent to deliver methamphetamine and one count of person prohibited from possessing firearms on June 3, 2019.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Federal Bureau of Investigation (FBI). MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney J.C. MacCallum prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-115.
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Castroville Felon Sentenced to Federal Prison for Possession of FirearmsRead the Press Release
SAN ANTONIO – A Castroville man was sentenced in a federal court in San Antonio to 60 months in prison for one count of felon in possession of a firearm.
According to court documents, Buel DeWayne Smiley, 63, was reported to the FBI for sharing posts that expressed anti-government and pro-white sentiment and encouraged others to blow up infrastructure. In his posts, Smiley displayed books on making improvised munitions and chemicals that could be used as precursors to make explosives. The FBI determined that Smiley, a convicted felon, also was depicted brandishing firearms in his social media posts and agents observed him on his property with a gun that appeared to be one visible in the posts.
FBI agents arrested Smiley on March 9. A search of his residence revealed loaded firearms, boxes of ammunition, several books or instruction manuals about making improvised explosives, lab equipment, handwritten notes that appeared to discuss experiments with homemade explosives, and chemical precursors for explosives. Smiley pleaded guilty to the charge of felon in possession of a firearm on Aug. 15.
“This is a great example of ‘If you see something, say something,’” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thanks to a concerned member of the community who was alarmed by the defendant's social media broadcasts calling for political violence, the FBI was able to investigate and arrest the defendant for illegally possessing firearms before he could do further harm to the community. I thank our partners at the FBI for their hard work.”
“Buel Smiley not only made threats to attack critical infrastructure, he had the materials and instructions to follow through,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “This sentence ensures that he won’t have the opportunity to follow through with his threats to endanger our communities. I want to thank the Medina County Sheriff’s Office for their assistance in this case.”
The FBI investigated the case.
Assistant U.S. Attorney Eric Yuen prosecuted the case.
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Cambridge Man Sentenced for Child Pornography OffenseRead the Press Release
BOSTON – A Cambridge man was sentenced today for purchasing child sexual abuse material (CSAM) with digital currency from the dark web.
David H. Chang, 29, was sentenced by U.S. District Court Judge Leo T. Sorokin to five years in prison and five years of supervised release. Restitution to victims will be determined at a later date. On Sept. 15, 2023, Chang pleaded guilty to one count of receipt of child pornography.
In April 2021, Chang was identified as the owner of a cryptocurrency account being used to purchased CSAM from a site on the dark web. During a search of Chang’s apartment in January 2022, approximately 1,700 images and 360 videos depicting CSAM were found of Chang’s electronic devices. The files showed the abuse of minors ranging from approximately two years old to approximately 10 to 12 years old, with some videos up to 50 minutes in length.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Homeland Security Investigations in New Haven (Conn.) provided valuable assistance. Assistant U.S. Attorneys Jessica L. Soto and Benjamin Tolkoff of the Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Bureau of Motor Vehicle Chief and PRC Citizen Sentenced to Federal Prison for CNMI Driver’s License Fraud SchemeRead the Press Release
Saipan – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants, Juana Cabrera Leon Guerrero, a U.S. citizen and resident of the Commonwealth of the Northern Mariana Islands (CNMI), and Yongde Li, a citizen from the People’s Republic of China (PRC), were sentenced in the United States District Court for the Northern Mariana Islands for their roles in a driver licensing fraud scheme at the CNMI Bureau of Motor Vehicles (BMV).
Juana Cabrera Leon Guerrero (age 58) – convicted of Conspiracy to Produce an Identification Document, in violation of 18 U.S.C. § 1028(a)(1), was sentenced to 60 months incarceration, ordered to pay a $15,000 fine and $100 special assessment fee, and serve three years of supervised release following imprisonment.
Yongde Li aka “Ivan” (age 50) – convicted of Conspiracy to Produce an Identification Document, in violation of 18 U.S.C. § 1028(a)(1), and Conspiracy to Commit Bank Fraud, in violation of 18 U.S.C. §§ 1349 & 1344, was sentenced to 10 months incarceration, ordered to pay $200 in special assessment fees, complete 50 hours of community service in lieu of a fine, and serve five years of supervised release following imprisonment.
In December 2022, the Federal Bureau of Investigation (FBI) executed a search warrant at the headquarters of the CNMI Department of Public Safety (DPS) and the BMV while investigating a scheme to unlawfully produce driver licenses. The criminal conduct involved foreign nationals, who lacked lawful immigration status, paying a “street broker” up to $1,700 for a new license and $300 for a renewal.
CNMI law requires proof of U.S. citizenship or valid immigration status before the issuance of a driver license. Street brokers used fraudulently manufactured immigration documents, submitted to the BMV, to enable foreign nationals without immigration status to acquire licenses. As Chief of the BMV, Leon Guerrero knowingly permitted Ivan to submit these applications, with fraudulent immigration documents, on at least 50 occasions between January 2020 and December 2022. No other documentation or testing was included. Leon Guerrero also directed at least five BMV employees to unlawfully assist Ivan in acquiring these licenses.
In exchange for her cooperation with Ivan, Leon Guerrero accepted $500 cash payments from Ivan and others for these illegal transactions. Ivan also treated Leon Guerrero and other complicit BMV staff members to meals and free taxi services.
“This scheme created a substantial risk to public safety,” stated United States Attorney Shawn N. Anderson. “Licensing requirements help reduce the risk of harm to other drivers and pedestrians on our roadways. We expect a higher standard of conduct from public officials. This case sends a strong message of accountability.”
"The FBI will not condone government workers who use their position of trust for their own ill-gotten gains," said FBI Special Agent in Charge Steven Merrill. "This sentence should serve as a warning to others that the FBI will investigate these types of cases to the fullest extent of the law."
The case was investigated by the Federal Bureau of Investigation and prosecuted by Albert S. Flores, Jr., Assistant United States Attorney in the District of the Northern Mariana Islands.
Bowling Green Woman Sentenced to 10 Years in Federal Prison for Methamphetamine Trafficking and Firearms OffensesRead the Press Release
Bowling Green, KY – A Bowling Green woman was sentenced last week to 10 years in prison for possession with the intent to distribute 5 grams or more of methamphetamine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of drug trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Task Force made the announcement.
According to court documents, Adrienne Cauzzort, 40, was sentenced to 10 years in prison, followed by a 4-year term of supervised release, for possession with the intent to distribute 5 grams or more of methamphetamine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime.
There is no parole in the federal system.
On June 6, 2022, Cauzzort possessed, with the intent to distribute, 30.27 grams of methamphetamine. Cauzzort also possessed two handguns after having been previously convicted of the following felony offenses. On July 20, 2015, in Warren Circuit Court, Cauzzort was convicted of wanton endangerment in the first degree and robbery in the second degree. Cauzzort was also convicted of possessing the two handguns in furtherance of her drug trafficking crime.
This case was investigated by the ATF and the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Boston Man Pleads Guilty to Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – A Boston man pleaded guilty today to illegally selling a dozen machinegun conversion devices.
Elijah Navarro, 24, pleaded guilty to one count of engaging in the business as a manufacturer or dealer in firearms and two counts of transferring or possessing a machinegun. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 13, 2024. Navarro was initially arrested and charged along with co-defendant Michael Wilkerson in February 2023. The defendants were subsequently indicted by a federal grand jury in March 2023.
In January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. Following a series of communications, Navarro met the individual twice at a pre-arranged location. On Jan. 19, 2023, Navarro sold the first two machinegun conversion devices to the individual for $400 and later, on Jan. 25, 2023, sold the remaining 10 devices for an additional $1,300.
Navarro does not possess a license to import, manufacture, deal or possess firearms.
The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $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.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael A. Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Pleads Guilty to Role in Nationwide Drug ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty on Dec. 15, 2023 in federal court in Worcester to his role in a nationwide large-scale cocaine trafficking conspiracy and for distribution of large quantities of fentanyl.
Francis Jose Perez-Baez, 41, pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine, distribution and possession with intent to distribute 400 grams or more of fentanyl and distribution and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Margaret R. Guzman scheduled sentencing hearing for April 25, 2024. Perez-Baez was charged in November 2021 along with Javier Robledo Perez, Vicente Castro and Carlos Longoria.
Perez-Baez was a Boston-based drug distributor who distributed large quantities of cocaine and fentanyl. Perez-Baez received multiple kilograms of cocaine from a Mexico-based drug trafficking organization that utilized commercial semi-trucks to transport dozens of kilograms of cocaine throughout the United States, including to Massachusetts.
Over the course of the investigation, Perez-Baez paid the drug trafficking organization nearly $280,000 in drug proceeds for multiple kilograms of cocaine that the organization had previously supplied to him on credit. Additionally, Perez-Baez sold fentanyl to a cooperating witness on multiple occasions – over 500 grams of fentanyl in August 2020 and 200 grams of fentanyl in April 2021.
On March 31, 2023, Longoria was sentenced by U.S. District Court Judge Mark G. Mastroianni to 34 months in prison and two years of supervised release after previously pleading guilty.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and the charge of distribution and possession with intent to distribute 400 grams or more of fentanyl both carry a minimum mandatory sentence of 10 years and up to life in prison, at least five years of supervised release, and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl carries a mandatory minimum sentence of five years in prison and up to life, at least four years of supervised release and a fine of up to $5 million. 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.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. The Drug Enforcement Administration’s Laredo and Dallas Divisions provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.
This case 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 https://www.justice.gov/OCDETF.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Biotelemetry and Lifewatch to Pay More Than $14.7 Million to Resolve False Claims Act Allegations Relating to Remote Cardiac Monitoring ServicesRead the Press Release
NEWARK, N.J. – BioTelemetry Inc. and its subsidiary, LifeWatch Services Inc., headquartered in Malvern, Pennsylvania, and Rosemont, Illinois, respectively (collectively LifeWatch), have agreed to pay more than $14.7 million to resolve allegations that they violated the False Claims Act by knowingly submitting claims to federal health care programs for a higher level of remote cardiac monitoring than physicians had intended to order or that was medically necessary, thus inflating the level of reimbursement paid to LifeWatch.
The United States alleged that, from July 1, 2014, through Dec. 31, 2020, LifeWatch marketed its ACT-3L device (also known as the LifeStar ACT-3L and the MCT-3L) to doctors as being capable of performing three different types of heart monitoring services: Holter monitoring, event monitoring, and telemetry. Of these, telemetry provided the highest rate of reimbursement. The United States contended that LifeWatch knew the design of their online enrollment portal for the ACT-3L device caused unwitting clinical staff to select options that would enroll the patient in the most expensive service, telemetry, even when the doctor intended to order a less expensive service. The United States also contended that LifeWatch’s sales personnel instructed clinical staff to select the options that resulted in patients being enrolled for telemetry services, even when the sales personnel knew the clinic’s physicians intended to order less costly services. LifeWatch also allegedly disregarded written notes that clinic personnel included in patient enrollments that specifically reflected the treating physicians’ intent to order a service other than telemetry.
U.S. Attorney Philip R. Sellinger“Our health care system is based on doctors choosing the level of care appropriate for their patients. It undermines this system and costs taxpayers if companies design systems that make it harder for physicians to order only necessary services and also use their sales force to mislead health care practitioners, as we allege happened here. Our office is committed to holding accountable companies who try to take advantage of the system in these ways.”
“Diagnostic companies, like other providers, are expected to bill federal healthcare programs only for medically necessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer-funded programs for their own enrichment.”
“Companies that bill Medicare and other federal healthcare programs must ensure that they are billing for the services actually ordered by medical providers, rather than the most expensive service,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “This office will continue to pursue cases that will reduce costs for the government while ensuring that patients receive consistent and quality care, as prescribed by their physicians.”
“Proper billing of federal insurers is essential and underpins the reliability of our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, along with our law enforcement partners, will continue to steadfastly pursue entities which fraudulently charge federal health care programs for financial gain and ensure they are held accountable.”
“Today's announcement demonstrates our ongoing commitment to work with the U.S. Department of Justice and our law enforcement partners to investigate allegations of fraud against TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty for the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When healthcare providers submit claims to TRICARE for services that are excessive and medically unnecessary, they place financial pressure on the TRICARE system and undermine its integrity.”
“The VA Office of Inspector General is committed to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “We thank the DOJ Civil Fraud Section, the United States Attorney’s Offices, and our law enforcement partners for their efforts leading to today’s meaningful settlement.”
“The OPM OIG takes fraud against the Federal health care programs very seriously,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles, OPM OIG. “Our office stands ready to work with our law enforcement partners on holding unscrupulous health care providers accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michael Pelletier, an individual employed by one of LifeWatch’s customers, and SFP I LLC, whose members are Paul Davis, Charles Richardson MD MBA, and Chris Riedel. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Pelletier et al. v. LifeWatch Services, Inc., et al., No. 2:18-cv-11391 (D.N.J.), and United States ex rel. SFP I, LLC v. LifeWatch Corp., et al., No. 2:19-cv-2169 (E.D. Pa.). As part of today’s resolution, Pelletier will receive approximately $2.3 million, and SFP I LLC will receive approximately $270,000.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the District of New Jersey and the Eastern District of Pennsylvania, with assistance from HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of Veterans Affairs Office of Inspector General and the Office of Personnel Management’s Office of Inspector General.
The investigation and resolution of 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Paul Kaufman of the District of New Jersey, Assistant U.S. Attorney Erin Lindgren of the Eastern District of Pennsylvania, and Fraud Section attorneys Amy Kossak and Jessica Sievert,
The claims resolved by the settlement are allegations only and there has been no determination of liability.
lifewatch.settlement.pdfBioTelemetry and LifeWatch to Pay More than $14.7 Million to Resolve False Claims Act Allegations that LifeWatch Billed More Expensive Services than Physicians Intended to OrderRead the Press Release
PHILADELPHIA – BioTelemetry, Inc. and its subsidiary, LifeWatch Services, Inc., headquartered in Malvern, Pennsylvania and Rosemont, Illinois, respectively, have agreed to pay $14,734,628 to resolve allegations that they violated the False Claims Act when LifeWatch, through its marketing and enrollment process for remote cardiac monitoring services, knowingly submitted false claims to federal health care programs for a higher level of remote cardiac monitoring service than physicians had intended to order or which was medically necessary, thus resulting in a higher level of reimbursement to LifeWatch.
Specifically, the United States contends that, during the period July 1, 2014 through December 31, 2020, Defendants marketed LifeWatch’s ACT-3L device (also known as the LifeStar ACT-3L and the MCT-3L) to doctors as being capable of performing three different types of heart monitoring services: Holter, event monitoring, and telemetry. Of these, Holter provided the lowest rate of reimbursement from federal healthcare programs, and telemetry provided the highest rate of reimbursement.
The United States contends that Defendants knew the design of LifeWatch Connect (the online enrollment portal for this device) caused unwitting clinical staff to select options that would enroll the patient in telemetry, even when the doctor intended to order a less expensive service. The United States also contends that Defendants’ sales personnel instructed clinical staff to select these options—even when Defendants knew the clinic’s physicians intended to order event monitoring for many or all patients—and then provided and billed for telemetry services. Defendants also allegedly disregarded notes clinics included in their enrollments that specifically requested event monitoring and did not consistently comply with clinics’ instructions about the appropriate handling of their enrollments, even after such issues were brought to Defendants’ attention.
Companies that bill Medicare and other federal healthcare programs must ensure that they are billing for the services actually ordered by medical providers, rather than the most expensive service,” said Jacqueline C. Romero, United States Attorney for the Eastern District of Pennsylvania. “This office will continue to pursue cases that will reduce costs for the government while ensuring that patients receive consistent and quality care, as prescribed by their physicians.”
“Companies are required to submit accurate claims based on patient needs,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Department of Health and Human Services, Office of the Inspector General. “HHS-OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners, to investigate allegations of the False Claims Act.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michael Pelletier, an individual employed by one of Defendants’ customers, and SFP I, LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. SFP I, LLC v. LifeWatch Corp., et al., No. 2:19-cv-2169 (E.D. Pa.) and United States ex rel. Pelletier et al. v. LifeWatch Services, Inc., et al., No. 2:18-cv-11391 (D.N.J.). The EDPA qui tam resolved for $1.78 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey, with assistance from HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of Veterans Affairs Office of Inspector General and the Office of Personnel Management’s Office of Inspector General.
The investigation and resolution of 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The EDPA matter was handled by Assistant U.S. Attorney Erin Lindgren and Auditor Dawn Wiggins.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
BioTelemetry and LifeWatch to Pay More than $14.7 Million to Resolve False Claims Act Allegations Relating to Remote Cardiac Monitoring ServicesRead the Press Release
BioTelemetry Inc. and its subsidiary, LifeWatch Services Inc., headquartered in Malvern, Pennsylvania, and Rosemont, Illinois, respectively, (collectively LifeWatch), have agreed to pay more than $14.7 million to resolve allegations that they violated the False Claims Act by knowingly submitting claims to federal health care programs for a higher level of remote cardiac monitoring than physicians had intended to order or that was medically necessary, thus inflating the level of reimbursement paid to LifeWatch.
The United States alleged that, during the period July 1, 2014, through Dec. 31, 2020, LifeWatch marketed its ACT-3L device (also known as the LifeStar ACT-3L and the MCT-3L) to doctors as being capable of performing three different types of heart monitoring services: holter monitoring, event monitoring and telemetry. Of these, telemetry provided the highest rate of reimbursement. The United States contended that LifeWatch knew the design of their online enrollment portal for the ACT-3L device caused unwitting clinical staff to select options that would enroll the patient in the most expensive service, telemetry, even when the doctor intended to order a less expensive service. The United States also contended that LifeWatch’s sales personnel instructed clinical staff to select the options that resulted in patients being enrolled for telemetry services, even when the sales personnel knew the clinic’s physicians intended to order less costly services. LifeWatch also allegedly disregarded written notes that clinic personnel included in patient enrollments that specifically reflected the treating physicians’ intent to order a service other than telemetry.
“Diagnostic companies, like other providers, are expected to bill federal healthcare programs only for medically necessary services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable those who misuse taxpayer-funded programs for their own enrichment.”
“Our health care system is based on doctors choosing the level of care appropriate for their patients,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “It undermines this system and costs taxpayers if companies design systems that make it harder for physicians to order only necessary services and also use their sales force to mislead health care practitioners, as we allege happened here. Our office is committed to holding accountable companies who try to take advantage of the system in these ways.”
“Companies that bill Medicare and other federal healthcare programs must ensure that they are billing for the services actually ordered by medical providers, rather than the most expensive service,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “This office will continue to pursue cases that will reduce costs for the government while ensuring that patients receive consistent and quality care, as prescribed by their physicians.”
“Proper billing of federal insurers is essential and underpins the reliability of our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, along with our law enforcement partners, will continue to steadfastly pursue entities which fraudulently charge federal health care programs for financial gain and ensure they are held accountable.”
“Today's announcement demonstrates our ongoing commitment to work with the U.S. Department of Justice and our law enforcement partners to investigate allegations of fraud against TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty for the Northeast Field Office of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When healthcare providers submit claims to TRICARE for services that are excessive and medically unnecessary, they place financial pressure on the TRICARE system and undermine its integrity.”
“The VA Office of Inspector General is committed to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs (VA) Office of Inspector General’s Northeast Field Office. “We thank the DOJ Civil Fraud Section, the United States Attorneys’ Offices and our law enforcement partners for their efforts leading to today’s meaningful settlement.”
“The OPM OIG takes fraud against the Federal health care programs very seriously,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel’s Office of Inspector General (OPM OIG). “Our office stands ready to work with our law enforcement partners on holding unscrupulous health care providers accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michael Pelletier, an individual employed by one of LifeWatch’s customers, and SFP I LLC, whose members are Paul Davis, Charles Richardson, MD, MBA and Chris Riedel. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Pelletier et al. v. LifeWatch Services, Inc., et al., No. 2:18-cv-11391 (D.N.J.), and United States ex rel. SFP I, LLC v. LifeWatch Corp., et al., No. 2:19-cv-2169 (E.D. Pa.). As part of today’s resolution, Pelletier will receive approximately $2.3 million, and SFP I, LLC will receive approximately $270,000.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of New Jersey and the Eastern District of Pennsylvania, with assistance from HHS-OIG, the Department of Defense’s Defense Criminal Investigative Service, the Department of VA Office of Inspector General and the OPM-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section attorneys Amy Kossak and Jessica Sievert, Assistant U.S. Attorney Paul Kaufman for the District of New Jersey and Assistant U.S. Attorney Erin Lindgren for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement AgreementArizona Man Arrested for Making Online Threats Against Federal Agents and EmployeesRead the Press Release
PHOENIX, Ariz. – Michael Lee Tomasi, 37, of Rio Verde, Arizona, was arrested on Friday after a grand jury indicted him on three counts of Threat Against a Federal Official and three counts of making Interstate Threats.
From May 2021 through November 2023, while living in Colorado and Arizona, Tomasi used a social media platform to express a desire to incite violence and threaten a variety of individuals and groups, including elected officials, a judge, and federal officials and law enforcement officers. The charges against Tomasi relate to threats he made in Arizona to federal law enforcement agents and employees.
“The threats of violence against public officials alleged in this indictment are abhorrent,” said Attorney General Merrick B. Garland. “The defendant is specifically charged with threatening to kill FBI agents and other FBI employees just for doing their jobs. I am deeply proud of the work the FBI does every day; its personnel should not have to deal with threats against themselves as they work to protect the American people. The Justice Department will not stand for such heinous behavior and will prosecute threats against its employees to the fullest extent of the law.”
“Threats against law enforcement personnel like those alleged in this indictment are not just polemics, they are illegal under federal law and corrosive to civic life and dialogue," said United States Attorney Gary Restaino.
Each count alleging Threat Against a Federal Official carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. Counts alleging Interstate Threat carry a maximum sentence of five years in prison, a fine of up to $250,000, and up to three years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, is handling the prosecution.
CASE NUMBER: CR-23-01751-PHX-DWL
RELEASE NUMBER: 2023-202_Tomasi# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Arizona Man Arrested for Making Online Threats Against Federal Agents and EmployeesRead the Press Release
Michael Lee Tomasi, 37, of Rio Verde, Arizona, was arrested on Friday after a grand jury indicted him on three counts of threats against a federal official and three counts of making interstate threats.
According to court documents, from May 2021 through November 2023, while living in Colorado and Arizona, Tomasi used a social media platform to express a desire to incite violence and threaten a variety of individuals and groups, including elected officials, a judge, and federal officials and law enforcement officers. The charges against Tomasi relate to threats he made in Arizona to federal law enforcement agents and employees.
“The threats of violence against public officials alleged in this indictment are abhorrent,” said Attorney General Merrick B. Garland. “The defendant is specifically charged with threatening to kill FBI agents and other FBI employees just for doing their jobs. I am deeply proud of the work the FBI does every day; its personnel should not have to deal with threats against themselves as they work to protect the American people. The Justice Department will not stand for such heinous behavior and will prosecute threats against its employees to the fullest extent of the law.”
“In this country, there’s a right way and a wrong way to express your views under the Constitution, and violence or threats of violence is not it,” said FBI Director Christopher Wray. “The men and women of the FBI work tirelessly and selflessly to protect others every day, and we will continue to work with our partners to hold accountable those who make violent threats against them or any of our colleagues in law enforcement.”
“Threats against law enforcement personnel like those alleged in this indictment are not just polemics, they are illegal under federal law and corrosive to civic life and dialogue,” said U.S. Attorney Gary Restaino for the District of Arizona.
If convicted, Tomasi faces a maximum penalty of 10 years in prison and a $250,000 fine for each count of making threats against a federal official, and a maximum penalty of five years in prison and a $250,000 fine for each count of making interstate threats.
The FBI is investigating the case. The U.S. Attorney’s Office for the District of Arizona is handling the prosecution.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Architect of Stamford Jewelry Store Robbery that Resulted in Owner’s Murder Sentenced to 32 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that THOMAS LIBERATORE, 66, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 384 months of imprisonment, followed by five years of supervised release, for offenses stemming from the robbery of Marco Jewelers in Stamford in March 2020. During the robbery, the owner of Marco Jewelers was shot and killed.
According to court documents and statements made in court, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
Investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, 2020, Paul Prosano drove Robert Rallo and Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the more than three-minute struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
Between $360,000 and $430,000 worth of jewelry was stolen during the robbery.
Following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 31, 2020, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. These items were stolen from Marco Jewelers.
Liberatore has been detained since his arrest on April 1, 2020. On December 19, 2022, a jury found Liberatore and Prosano guilty of interference with commerce by robbery (Hobbs Act robbery) and interstate transportation of stolen property. Liberatore was also found guilty of aiding and abetting the use of a firearm to cause a death during a robbery. The trial evidence established that Liberatore, who formerly resided in Stamford, orchestrated the robbery of Marco Jewelers.
Liberatore has a lengthy criminal history, and he served a total of approximately 30 years in prison prior to the Marco Jewelers and the murder of Mark Vuono. He met Rallo and Prosano while incarcerated within the New York State Department of Corrections.
On April 5, 2022, Rallo pleaded guilty to Hobbs Act robbery, interstate transportation of stolen property, and using a firearm to cause a death during a robbery. On March 1, 2023, he was sentenced to 40 years of imprisonment.
On July 5, 2023, Prosano was sentenced to 30 years of imprisonment.
This investigation was conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis, Rahul Kale and Margaret Donovan.
Antitrust AAG Kanter Statement After Adobe and Figma Abandon MergerRead the Press Release
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division issued the following statement after Adobe Inc. abandoned its proposed acquisition of Figma Inc.:
“The Antitrust Division remains committed to protecting competition in technology markets. The decision to abandon this acquisition ensures that designers, creators, and consumers continue to get the benefit of the rivalry between the two companies going forward. I am grateful for the tireless efforts of our talented staff of lawyers, economists, paralegals, and others at the Antitrust Division who conducted a thorough investigation of this proposed merger and do such a tremendous job safeguarding competition.”
Anti-Doping Charges Filed Against Two Defendants in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging DEWAYNE BARRETT and O’NEIL WRIGHT under the Rodchenkov Anti-Doping Act (“RADA”), which proscribes doping schemes at international sports competitions including the Olympic Games. The Indictment alleges that BARRETT and WRIGHT obtained various performance enhancing drugs (“PEDs”) and distributed those PEDs to certain athletes in advance of, and for the purpose of cheating at, the 2020 Olympic Games held in Tokyo in the summer of 2021. In addition to the charge under the Rodchenkov Act, BARRETT and WRIGHT are alleged to have conspired to violate the drug misbranding and adulteration laws of the U.S., and BARRETT is separately charged for his involvement in a scheme to fraudulently obtain loans through the Small Business Administration’s Paycheck Protection Program (“PPP”).
BARRETT was taken into federal custody last Thursday and presented in federal court in Manhattan before U.S. Magistrate Judge Ona T. Wang. WRIGHT was taken into federal custody last Wednesday and was presented on Thursday in the Northern District of Georgia before U.S. Magistrate Judge Justin S. Anand.
U.S. Attorney Damian Williams said: “As alleged, Barret and Wright’s supposed ‘coaching’ services included providing Olympic-level athletes with prohibited, performance-enhancing drugs. Supplying illegal drugs to athletes is dangerous and illegal. This Office is committed to rooting out corruption in international sporting events. We will continue to prosecute those who engage in illicit doping schemes to the full extent of the law under the Rodchenkov Anti-Doping Act.”
FBI Assistant Director in Charge James Smith said: “Performance enhancing substances deprive competitors of a level playing field. At a moment when the games offered thousands of athletes validation after years of training, Dewayne Barrett and O’Neil Wright allegedly schemed to ruin that moment by peddling illegal drugs. Let me be clear, the FBI and our law enforcement partners will not yield in our efforts to disrupt criminal enterprises that seek to corrupt international competition.”
As alleged in the Indictment:[1]
The charges in this Indictment arise from an investigation of a scheme to provide Olympic athletes with PEDs, including drugs widely banned throughout competitive sports such as human growth hormone, clenbuterol, and the “blood building” drug erythropoietin, in advance of and for the purpose of corrupting the 2020 Olympic Games that convened in Tokyo in the summer of 2021.
BARRETT and WRIGHT purported to coach athletes, including Olympic-level athletes competing on behalf of Nigeria (“Athlete-1”), Switzerland (“Athlete-2”), and the United Kingdom (“Athlete-3”), but instead, in order to obtain an unfair and unlawful advantage, BARRETT and WRIGHT provided those athletes with prohibited, performance-enhancing drugs that were obtained and administered without valid prescriptions.
BARRETT was a track and field coach and personal trainer based in the New York City area who operated a fitness facility located in Manhattan. WRIGHT, a former Olympic-level sprinter, was a track and field coach based in Atlanta, Georgia. Neither BARRETT nor WRIGHT are doctors. CC-1, an individual who held himself out as a naturopathic doctor, but was not a licensed doctor, supplied banned drugs to athletes at BARRETT and WRIGHT’s behest.
The Rodchenkov Act, which was signed into law in December 2020, prohibits any person, other than an athlete, to knowingly carry into effect, attempt to carry into effect, or conspire with any other person to carry into effect a scheme in commerce to influence by use of a prohibited substance or prohibited method any major international sports competition. 21 U.S.C. § 2402.
BARRETT is also charged with his involvement in a scheme to fraudulently obtain loans through PPP. As alleged in the Indictment, between 2020 and 2021, BARRETT submitted online applications seeking over $2.5 million on behalf of individuals whom he represented to be independent contractors on the loan applications. BARRETT provided a falsified Internal Revenue Service Form 1040 in support of each application, showing an inaccurate annual income for the applicant in the prior tax year. In many cases, BARRETT was directly paid by the applicant for having submitted the fraudulent paperwork.
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DEWAYNE BARRETT, 41, of Elmont, New York, and O’NEIL WRIGHT, 43, of Snellville, Georgia, are each charged with one count of conspiracy to violate the Rodchenkov Act, which carries a maximum sentence of 10 years, and one count of conspiracy to violate the misbranding laws, which carries a maximum sentence of five years. BARRETT is further charged with one count of wire fraud conspiracy, which carries a maximum sentence of 20 years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and the FBI’s Integrity in Sports and Gaming Initiative. Mr. Williams also thanked the U.S. Customs and Border Protection, the New York City Police Department, and the U.S. Anti-Doping Agency for their assistance in the investigation.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Sarah Mortazavi, Benjamin Gianforti and T. Josiah Pertz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Allen County Man Sentenced to 12 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Bowling Green, KY – An Allen County, Kentucky, man was sentenced today to 12 years in federal prison for possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Chief Darren Tabor of the Scottsville Police Department made the announcement.
According to court documents, Timothy E. Austin, 50, of Scottsville, Kentucky, was sentenced to 12 years in prison, followed by 5 of supervised release, for possession with the intent to distribute 154.747 grams of methamphetamine on August 15, 2022. Austin was sentenced for possessing a total of 263.876 grams of methamphetamine intended for distribution. The increased drug amount was based on other relevant conduct of the defendant that the Court considered when imposing the sentence.
There is no parole in the federal system.
This case was investigated by the DEA and the Scottsville Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Albany Man Sentenced to 27 Months for Pandemic Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Kahleke Taylor, a/k/a “Flex,” age 23, of Albany, was sentenced today to 27 months in prison for a mail and wire fraud scheme that obtained more than $200,000 in COVID-19 pandemic-related unemployment insurance benefits using the personal information of other people.
The announcement was made by United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); and New York State Inspector General Lucy Lang.
As part of his previously entered guilty plea, Taylor admitted to soliciting personal information from other people on social media. He used the information to make false online unemployment insurance applications to the New York State Department of Labor (NYSDOL). On one application he filed in August 2020, for example, Taylor certified that a person had lost work at a hotel in Latham, New York, in March 2020 due to “Lack of Work – COVID,” all of which was false. From September 2020 through June 2021, the applications Taylor admitted to filing as part of the fraud scheme resulted in benefits payments of $207,004.
United States District Judge Mae A. D’Agostino also imposed a 2-year term of supervised release, to begin after Taylor is released from prison. Judge D’Agostino ordered Taylor to pay $207,004 in restitution to the State of New York and to forfeit a $192,731 money judgment to the United States.
Taylor’s co-defendants, Taquan Parker, age 27, of Rensselaer, New York, and Olajuwon Sutherland, a/k/a “Suave,” age 28, of Troy, New York, previously pled guilty to charges stemming from their roles in the scheme with Taylor. Parker was sentenced to 13 months in prison to be followed by a 3-year term of supervised release while Sutherland was sentenced to 3 years of probation.
This case was investigated by HSI, USDOL-OIG, USPIS, and the New York State Inspector General’s Office, with assistance from the NYSDOL Office of Special Investigations and the Schenectady County Department of Social Services. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Albany Man Sentenced to 20 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHNNY ROMAN was sentenced today to 20 years in prison for sexual exploitation of children and conspiring to sexually exploit children, including while incarcerated at the Metropolitan Detention Center in Brooklyn. On May 23, 2023, ROMAN pled guilty to one count of sexual exploitation of children and two counts of conspiracy to commit sexual exploitation of a child before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Johnny Roman used multiple fake online personas to convince and, in some cases, threaten young women to create and send him heinous videos in which the women performed oral sex on minors, many of them infants and toddlers. Once he was arrested and detained for that conduct, he continued his disturbing scheme from jail using contraband cellphones. This lengthy prison sentence holds Roman accountable for his horrific crimes and the extraordinary harm and trauma he caused to many minor victims and their families.”
According to the Indictment, court documents, and based on statements made in open court:
Since at least 2020, ROMAN used multiple fake online personas to contact young women about the prospect of a “job” sexting with an older man on encrypted messaging applications and to manipulate the women into creating disturbing pornographic videos in which they performed oral sex on minors, many of them infants or toddlers. ROMAN communicated with at least 3,000 different women on one user account alone. Through that broad outreach, at least eight individuals performed oral sex on minor victims based on ROMAN’s requests or threats. At least 11 minor victims — ranging from 16 years old to four months old — were victims of ROMAN’s criminal conduct, which resulted in the creation of over 50 videos in which women performed oral sex on minors.
On December 22, 2020, ROMAN was arrested on the instant charges. While detained, ROMAN continued to induce women to film themselves performing oral sex on minors using at least three contraband cellphones.
* * *
In addition to his prison term, ROMAN, 37, of Albany, New York, was sentenced to a lifetime of supervised release.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the New York City Police Department.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Rebecca T. Dell is in charge of the prosecution.
3 Cincinnati men sentenced to prison for stealing USPS keysRead the Press Release
CINCINNATI – Three Cincinnati men were sentenced in federal court today for conspiring to commit mail theft.
Lawrence Sherman, 23, was sentenced to 40 months in prison. Brandon McCollum, 21, was sentenced to 24 months in prison. Jeffrey Wiley, 23, was sentenced to 27 months in prison.
According to court documents, between July 2022 and June 2023, the defendants conspired to steal postal arrow keys to then steal mail from blue collection boxes. The conspiracy caused a loss amount of between $250,000 and $550,000 and involved 10 or more victims.
Conspirators would steal any cash contained in the mail from the receptacles. They would also steal checks and “wash” or erase the original information in an attempt to fraudulently convert the checks. The defendants would then deposit the altered checks in borrowed accounts and withdrawal cash from ATMs.
There were multiple police chases connected to this particular scheme and at least one stolen vehicle driven by Sherman. During one such traffic stop in Springfield Township in January 2023, McCollum was in possession of a stolen postal arrow key.
Sherman, McCollum and Wiley are three of at least a dozen defendants charged in the Southern District of Ohio in 2022 and 2023 with crimes related to postal robberies.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announced the sentences imposed today by Senior U.S. District Court Judge Susan J. Dlott and acknowledged the assistance of the Wyoming, Springdale and Green Hills police departments. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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Saturday 16 December 2023
United Kingdom Citizen Extradited to Face Charges in $99 Million Wine FraudRead the Press Release
Stephen Burton, a citizen of the United Kingdom, will be arraigned in federal court in Brooklyn this morning before United States Magistrate Judge Taryn A. Merkl on an indictment charging him with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with a scheme perpetrated through Bordeaux Cellars, a company that he operated. Burton was extradited yesterday to the Eastern District of New York from Morocco where he was arrested in 2022 after entering the country using a false Zimbabwean passport. Burton’s co-defendant, James Wellesley, remains in extradition proceedings in the United Kingdom.
Breon Peace, United States Attorney for the Eastern District of New York, and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the extradition and arraignment.
“With the successful extradition of Burton to the Eastern District of New York, he will now taste justice for the fine wines scheme alleged in the indictment,” stated United States Attorney Peace. “This prosecution sends a message to all perpetrators of global fraud that you can run from law enforcement, but not forever.”
Mr. Peace thanked Moroccan authorities for their assistance. The Justice Department’s Office of International Affairs also provided significant assistance in securing the arrest and extradition from Morocco of the defendant.
The indictment alleges that from at least June 2017 and continuing through February 2019, the investors posed as executives at a company called Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at, among other places, investor conferences held in the United States and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine. The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine securing the loans while the loans were outstanding. As alleged, these representations were lies, the “high-net-worth wine collectors” did not actually exist and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Lauren Elbert and Benjamin Weintraub are in charge of the prosecution.
The Defendants:
STEPHEN BURTON
Age: 58
United KingdomJAMES WELLESLEY
Age: 56
United Kingdom
E.D.N.Y. Docket No. 22-CR-79 (PKC)
Friday 15 December 2023
Williamsport Man Sentenced to 18 Months’ Imprisonment for Violating the Conditions of His Supervised ReleaseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael William Wright, age 30, of Williamsport, Pennsylvania, was sentenced on December 13, 2023, to 18 months’ imprisonment by United States District Court Judge Malachy E. Mannion, for violating the terms of his federal supervision for his commission of the crime of using or carrying a firearm during the commission of a drug trafficking felony.
According to United States Attorney Gerard M. Karam, Wright was found to be in violation of his supervision based on both possession and use of controlled substances, and activity that occurred in Williamsport on October 7, 2023, resulting in his arrest for a domestic violence assault.
The defendant was being supervised by the United States Probation Office. Assistant United States Attorneys Geoffrey MacArthur and Luisa Honora Berti prosecuted the case.
The maximum penalty under federal law for this supervised release violation is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Warm Springs Man Sentenced to Federal Prison for Attempted MurderRead the Press Release
PORTLAND, Ore.—A Warm Springs, Oregon man was sentenced to federal prison today for using a motor vehicle to intentionally strike and severely injure a person known to them on the Warm Springs Indian Reservation.
Quinten Xavier Greene, 25, was sentenced to 78 months in federal prison and three years’ supervised release. Greene was also ordered to pay $20,000 in restitution.
According to court documents, on March 18, 2023, an adult victim was found lying, severely injured, in a ditch on the Warm Springs Indian Reservation. The individual reported that someone, later identified as Greene, had intentionally swerved their vehicle and hit him. The victim, who sustained a traumatic brain injury and fractures to his legs and multiple ribs, was taken to a hospital in Madras, Oregon, for treatment and, later, because of the severity of their injuries, transferred to a hospital in Bend, Oregon.
Warm Springs Tribal Police officers spoke with a witness who recounted driving with Greene to meet the victim, and observing Greene swerve his vehicle to hit the victim.
On May 9, 2023, a federal grand jury in Portland returned a four-count indictment charging Greene with attempted murder, assault with a dangerous weapon, assault resulting in serious bodily injury, and possession of a firearm in furtherance of a crime of violence. On September 22, 2023, Greene pleaded guilty to a one-count superseding criminal information charging him with attempted murder.
This case was investigated by the Warm Springs Tribal Police Department with assistance from the FBI. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Waldorf Man Sentenced to over Four Years in Federal Prison for COVID-19 CARES Act Unemployment Insurance Fraud Scheme Involving More Than $1.5 Million in LossesRead the Press Release
Baltimore, Maryland – U.S. District Judge Brendan A. Hurson sentenced Dementrous Von Smith, a/k/a “Meecho” and “El Meecho,” age 36, of Waldorf, Maryland, to 53 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy, wire fraud and aggravated identity theft, in relation to the submission of fraudulent CARES Act unemployment insurance claims in Maryland, California and Arizona totaling at least $1.5 million.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Chief Amal E. Awad of the Anne Arundel County Police Department; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Roland L. Butler, Jr., Superintendent of the Maryland State Police (MSP); and Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. Financial assistance offered through the CARES Act also included expanded eligibility for Unemployment Insurance (“UI”) benefits and increased UI benefits through the Pandemic Unemployment Assistance Program (“PUA”), Federal Pandemic Unemployment Compensation (“FPUC”), and the Lost Wages Assistance Program (“LWAP”).
According to his plea agreement, from March 2020 to October 2021, Smith and his co-conspirators impersonated victims to submit fraudulent claims for unemployment insurance (UI) benefits in Maryland and California. As part of the scheme, Smith and his co-conspirators used electronic messages, phone calls, electronic mail and other means to aggregate and exchange the personally identifiable information (“PII”) of identity theft victims with each other, created false email address and phone numbers for the victims, and used the fake emails and phone numbers in the fraudulent UI applications.
Once Smith and his co-conspirators received the fraudulently obtained benefits on debit cards, they used the cards for cash withdrawals and other transactions for their own financial benefit. For example, in July 2021, Smith was seen on bank surveillance using ATMs in Laurel, Maryland to withdraw $4,000 over four transactions, using the UI profile in the name of one of the identity theft victims. Bank records also reveal that Smith called the bank regarding at least 12 UI profiles of actual victims whose identities were used to open accounts and obtain benefits without their permission. These victims are tied to texts and calls between Smith and his co-conspirators over several months. Smith and his co-conspirators personally conducted or attempted to conduct transactions involving at least $1.5 million in UI benefits.
On July 7, 2022, law enforcement executed search warrants for Smith’s residence and vehicle, recovered, among other items, a 7.62 caliber firearm, a loaded 1911 style pistol, several magazines loaded with multiple rounds of various caliber ammunition, more than 176 rounds of various caliber ammunition, and $9,100 in cash.
Co-defendant Michael Akame Ngwese Ay Makoge, a/k/a “Hype” and “2Hype,” age 28, of Laurel, Maryland pleaded guilty to his role in the fraud scheme and faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy and a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Judge Hurson has scheduled sentencing for Makoge on February 1, 2024, at 11:00 a.m.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the USPIS, DOL-OIG, the Anne Arundel County Police Department, HSI, MSP, and ATF, for their work in the investigation. Mr. Barron thanked the United States Marshals Service, the Prince George’s County Police Department, the Montgomery County Police Department, the Washington, D.C. Metropolitan Police Department and the Charles County Sheriff’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Violent Domestic Abuser Sentenced to over Three Years in Federal Prison for Illegally Possessing Firearms While Fleeing from PoliceRead the Press Release
INDIANAPOLIS- Zachariah Brownie, 33, of Indianapolis, has been sentenced to 46 months in federal prison after pleading guilty to possessing a firearm as a convicted felon.
According to court documents, in November of 2022, Brownie was on probation for two separate felony convictions, including a domestic violence crime committed on August 21, 2021. Warrants were issued for his arrest after he violated the terms of his supervision.
On the morning of November 21, 2022, officers located Brownie driving a Chevy Trax and activated emergency lights in an attempt to pull him over. Instead of stopping, Brownie fled in the car. Officers pursued Brownie and attempted a pursuit intervention technique (PIT) maneuver. The PIT maneuver caused Brownie’s vehicle to spin around, but Brownie continued to drive away from police. As the pursuit continued, officers observed Brownie throw a handgun out the window of his car. The gun landed in the middle of the street and was later recovered by law enforcement officers.
After a second PIT maneuver, Brownie’s car came to a stop and he was arrested. Investigators searched the car and recovered eight grams of crack cocaine, a working digital scale, a loaded Glock 9 mm magazine, two boxes of 9 mm ammunition, and a box of .223 rifle ammunition. According to a civilian eyewitness, Brownie also threw a second gun out the window during the chase. That firearm was later recovered by investigators near a residential driveway, along the path of Brownie’s flight.
Brownie is prohibited under federal law from possessing a firearm due to his multiple felony convictions, including criminal confinement, residential entry, unlawful possession of a firearm by a convicted felon, resisting law enforcement, domestic battery committed in the presence of a child less than 16 years old, and possession of cocaine. Most of Brownie’s prior convictions involve domestic violence.
“Abusers with guns use them to exert power and control over their victims. This defendant’s lengthy and troubling history of extremely violent domestic abuse makes him an extreme danger to his partners, family, and the entire community,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “Domestic disturbance calls can be incredibly dangerous for law enforcement as well as victims, especially when abusers are armed. That is why our office is committed to working alongside FBI and IMPD to hold these high-risk offenders accountable in federal court and ensure they are unable to cause more trauma to our families, friends, and neighbors.”
The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Judge Matthew P. Brookman. Judge Brookman also ordered that Brownie be supervised by the U.S Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey L. Massa, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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U.S. Attorney’s Office Obtains Temporary Restraining Order to Halt Ongoing Fraud on Consumers and BanksRead the Press Release
SACRAMENTO, Calif. — The United States has successfully obtained a temporary restraining order against an alleged fraud network that steals money from consumers and uses deceptive tactics to conceal illicit activity from financial institutions, thereby allowing that illicit activity to continue, U.S. Attorney Phillip A. Talbert announced today.
The civil complaint filed by the United States, which was unsealed on Dec. 12, 2023, sought a temporary restraining order, preliminary and permanent injunctions, and other equitable relief to order five individuals and 10 associated companies from continuing to engage in bank fraud, wire fraud, and conspiracy to commit these offenses.
“This case marks a significant step in halting fraud schemes that reap financial gain by scamming consumers and making misrepresentations to financial institutions,” said U.S. Attorney Talbert. “It also sends a clear signal that we have used, and will continue to use, all means at our disposal to protect citizens from such schemes to defraud.”
Invoking the Anti-Fraud Injunction Statute, the United States’ complaint alleges that defendants Thomas Eide of South Lake Tahoe, California; Travis Smith of Dallas, Texas; Aric Gastwirth of Las Vegas, Nevada; Stephen Christopher of Poway, California; and Bryan Bass, a resident of India, through various business entities that they owned and operated, processed payments for clients that made unauthorized charges to consumers’ accounts and engaged in a variety of other illegal activities, including technical support scams. The defendants are alleged to have helped their clients gain access to the banking system by creating sham entities, recruiting straw owners for these sham entities, and outfitting these sham entities with fake addresses, websites, and phone numbers. The sham entities then applied for merchant accounts to process payments for the fraud scheme’s clients, ultimately disguising the clients’ true activities. To further conceal the fraud, the defendants used sham microtransactions to reduce the number of chargebacks (transactions that are refused or reversed by the account holder’s bank) and evade detection from banks.
After the government filed its case, the U.S. District Court for the Eastern District of California entered a temporary restraining order enjoining defendants from continuing to operate the scheme and freezing assets. The District Court also granted the United States’ request for the appointment of a receiver to stop defendants from dissipating assets obtained through the alleged fraud scheme.
The claims in the United States’ civil complaint are only allegations. The preliminary injunction hearing is scheduled for Jan. 11, 2024 before U.S. District Judge Troy Nunley. The case is United States v. CB Surety, LLC, et al., No. 2:23-cv-2812 TLN DB.
This case is the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of California and the Civil Division’s Consumer Protection Branch, working with the U.S. Postal Inspection Service. Assistant U.S. Attorney Tara Amin is handling the matter.
cb_surety_complaint.pdfU.S. Attorney’s Office Announces Forfeiture Process to Begin for Firearms Seized from Dave’s Gunshop in Lafayette, LARead the Press Release
LAFAYETTE, La. - The United States Attorney’s Office for the Western District of Louisiana will be handling a forfeiture proceeding in connection with the seizure of numerous firearms in the case involving Dave’s Gunshop in Lafayette, Louisiana.
During the investigation of this case, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives seized numerous firearms from Dave’s Gunshop and also from the residence of Jeremiah Micah Deare and Sarah Elaine Fogle. The defendants in this case, Deare and Fogle, were charged and found guilty of conspiracy to engage in the business of dealing in firearms without a license.
If you, your family member, or anyone that you know may have an interest in claiming ownership of any of the firearm(s) seized in this case, please contact the Forfeiture Unit of our office at 318-676-3600 for information on how to file a claim with the court for any firearm(s).
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U.S. Attorney Announces Return of Collection of Antiquities from the Metropolitan Museum of Art to CambodiaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Erin Keegan, the Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the return of 13 Khmer antiquities to the Kingdom of Cambodia, pursuant to an agreement between the U.S. Attorney’s Office for the Southern District of New York and the Metropolitan Museum of Art (the “Met”). The Met has voluntarily agreed to return the antiquities, and they are in the process of being turned over.
U.S. Attorney Damian Williams said: “All of the pieces being returned today were tied directly to illicit trafficking, and specifically to a man named Douglas Latchford – a collector and dealer that my Office charged in 2019 for running a vast antiquities trafficking network out of Southeast Asia. I want to thank the Metropolitan Museum of Art, where these pieces were previously housed, for their decision to cooperate and work with my Office to facilitate the return of these pieces to the Kingdom of Cambodia. We look forward to our continued dialogue with the Met on these important issues. My Office will continue to vigorously investigate the illegal trade in stolen antiquities. We urge those in this space, including cultural institutions, to be vigilant. And if you work at one of these institutions or for a private collection and have concerns that certain pieces may be tied to illicit trafficking, do the right thing: come forward and work with us on a voluntary basis to facilitate the return to the rightful owners. That is a far better outcome for you and your institution than if our investigation leads to a knock on your door. In other words, come see us before we come see you.”
HSI Acting Special Agent in Charge Erin Keegan said: “As demonstrated with today's announcement, pieces linked to the investigation of Douglas Latchford continue to reveal themselves. The Metropolitan Museum of Art has not only recognized the significance of these 13 Khmer artifacts, which were shamelessly stolen, but has also volunteered to return them, as part of their ongoing cooperation, to their rightful owners: the People of Cambodia. I want to thank HSI New York’s Cultural Property, Art, and Antiquities unit and the Southern District of New York for their unwavering commitment to reuniting nations with these unforgettable pieces of history.”
All of the antiquities being returned to the Kingdom of Cambodia are linked to the art dealer and collector Douglas Latchford, who was previously indicted in the Southern District of New York in 2019 for orchestrating a multi-year scheme to sell looted Cambodian antiquities on the international art market. The Indictment was later dismissed due to Latchford’s death. Since 2012, the U.S. Attorney’s Office for the Southern District of New York, in partnership with HSI, has successfully investigated, identified, and repatriated dozens of stolen and illegally imported Cambodian antiquities in the possession of individuals and institutions in the United States.
Among the statutes being returned to the Kingdom of Cambodia are statutes from the Koh Ker archaeological site, including a 10th century goddess sandstone statute, as depicted below. The history of Koh Ker and the illicit trafficking in Cambodian cultural patrimony is described in prior forfeiture actions filed in the Southern District of New York, including United States v. A Late 12th Century Khmer Sandstone Sculpture Depicting Standing Prajnaparamita, et al., 21 Civ. 9217; United States v. A Late 12th Century Bayon-Style Sandstone Sculpture Depicting Eight-Armed Avalokiteshvara, 22 Civ. 229; United States v. A 10th Century Cambodian Sandstone Sculpture, 12 Civ. 2600; and United States v. A 10th Century Cambodian Sandstone Sculpture Depicting Skanda on a Peacock, 21 Civ. 6065. In September 2023, Koh Ker — the 10th Century former royal capital of the Angkorian empire — was officially added to the United Nations Education, Scientific, and Cultural Organization’s World Heritage List. Other statutes being returned date from as far back as the 7th Century, including an over-life-size head of Buddha.
10th century goddess sandstone statue from Koh Ker
7th century Head of Buddha
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Mr. Williams thanked HSI for its outstanding work to facilitate the repatriation and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its partnership and assistance.
This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U. S. Attorney Shiva Logarajah is in charge of the case.
Two Men Sentenced for Fraudulent Rural Hospital Billing SchemeRead the Press Release
Two Florida men were sentenced today for their roles in a multi-state scheme to defraud insurance companies by using rural hospitals to bill for urine drug testing that was not reimbursable and not medically necessary.
Jorge Perez, 63, of Miami, was sentenced to eight years and four months in prison. Ricardo Perez, 60, also of Miami, was sentenced to six years and three months in prison.
According to court documents and evidence presented at trial, Jorge Perez, an owner and manager of hospitals and the owner of a billing company, and Ricardo Perez, the manager of a billing company, conspired with each other and other individuals to unlawfully bill for laboratory testing services, primarily urine drug tests, that were medically unnecessary and that were fraudulently billed through rural hospitals in Florida and Missouri rather than the independent laboratories where much of the testing took place. Jorge Perez and Ricardo Perez targeted and obtained control over financially distressed rural hospitals, and then used them for billing in order to take advantage of private insurance contracts that provided higher reimbursement rates for these hospitals than for out-of-network laboratories. The claims were submitted to falsely appear that the hospitals themselves did the laboratory testing when, in most cases, it was done by testing laboratories controlled by others, including a co-conspirator.
The evidence further showed that much of the testing was for vulnerable addiction treatment patients and patients of pain clinics, with samples often obtained through kickbacks paid to recruiters and substance abuse treatment facilities. The tests billed by Jorge Perez and Ricardo Perez were often not medically necessary — testing was performed at a frequency that far exceeded what would be needed for patient care, including performing repeated screening and definitive testing before results from prior tests could have been reviewed or used by the ordering providers.
The rural hospitals involved in this case were Campbellton-Graceville Hospital (CGH), a 25-bed rural hospital located in Graceville, Florida, that declared bankruptcy in 2017; Regional General Hospital Williston (RGH), a 40-bed facility located in Williston, Florida, that has closed; and Putnam County Memorial Hospital (Putnam), a 15-bed rural hospital located in Unionville, Missouri, that has struggled since Jorge Perez and Ricardo Perez’s misuse of it as a vehicle for laboratory billing.
On June 27, 2022, a federal jury in the Middle District of Florida convicted Jorge Perez and Ricardo Perez of conspiracy to commit health care fraud and wire fraud, five counts of health care fraud, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel Management Office of the Inspector General (OPM-OIG), Special Agent in Charge Mathew Broadhurst of the Department of Labor Office of Inspector General (DOL-OIG) Southeast Region, and Special Agent in Charge Basil Demczak of Amtrak Office of Inspector General's (Amtrak OIG) Central Field Office made the announcement.
The FBI Jacksonville Field Office, OPM-OIG, DOL-OIG, and Amtrak OIG investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tysen Duva for the Middle District of Florida prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Two Men Sentenced for Conspiracy to Distribute Fentanyl Resulting in Serious Bodily InjuryRead the Press Release
COUNCIL BLUFFS, Iowa – Two men were sentenced yesterday for their involvement in a conspiracy to distribute fentanyl which resulted in serious bodily injury to two victims.
According to public court documents, Curclund Jackson VanAernam, 23, of Atlantic, and Luis Alberto Hernandez, 31, of Omaha, distributed fentanyl pills in Omaha and the surrounding areas, including Atlantic, Iowa. At least two victims overdosed after ingesting pills containing fentanyl that VanAernam and Hernandez distributed. Both victims survived after receiving doses of Narcan.
VanAernam was sentenced to 16 years in federal prison and will be required to serve a five-year term of supervised release following his prison term. Hernandez was sentenced to 22 years in prison, to be followed by a four-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Department of Public Safety Division of Narcotics Enforcement, the Southwest Iowa Narcotics Enforcement (SWINE) Task Force, Atlantic Police Department, Cass County Sheriff’s Office, Drug Enforcement Administration, and Omaha Police Department investigated the case.
Fentanyl has become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. Visit the Drug Enforcement Administration’s website to learn more about One Pill Can Kill.
Two Inmates Sentenced for Possessing Weapons at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Lawrence Anderson, 27, and Denardo Graham, 33, were each sentenced yesterday to one year and one day in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison, the Federal Correctional Institution (FCI) Beckley, in separate incidents.
According to court documents and statements made in court, each admitted to possessing a handcrafted weapon commonly known as a “shank” at FCI Beckley, in separate incidents on the following dates: Anderson on December 10, 2022, and Graham on February 12, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentences. Assistant United States Attorney Timothy D. Boggess prosecuted the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:23-cr-106 (Anderson) and 5:23-cr-107 (Graham).
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Two Individuals with Ties to an International Fentanyl Trafficking Organization Sentenced to Federal PrisonRead the Press Release
WILMINGTON, N.C. – Two individuals, Hector Luciano Perez Valenzuela and John Steven Ellingson, from Oregon, were sentenced for their roles in an international drug trafficking organization (DTO) moving kilogram quantities of fentanyl and operating in multiple cities across the country, including Fayetteville. A third defendant, Kittisack Sam Vorana, age 30, was sentenced to 48 months earlier this year for his role in the conspiracy. The DTO has ties to the Sinaloa cartel operating in Mexico.
“Valenzuela and Vorana were caught transporting a quantity of fentanyl that, by conservative estimates, could have killed more than 700,000 people,” said U.S. Attorney Michael Easley. “And Ellingson was responsible for distributing many times that amount of fentanyl. We are continuing our efforts to stem the tide of illegal and dangerous drugs that are devastating communities across Eastern North Carolina.”
"These drug dealers boldly believed they could use Fayetteville as a hub to stash and ship fentanyl across the country. The FBI and our law enforcement partners worked tirelessly to ensure the members of this drug trafficking organization were punished for the pipeline of poison they operated in our community," said Robert M. DeWitt, the Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
Valenzuela, age 35, was sentenced to 151 months and 3 years of supervised release. Valenzuela was convicted by a federal jury of two counts of conspiracy and fentanyl trafficking earlier this year. Ellingson, age 34 , was sentenced to 78 months followed by 5 years of supervised release, after pleading guilty to one count of conspiracy and fentanyl trafficking.
According to court records and other information presented in court, in 2019, the Federal Bureau of Investigation and the Fayetteville Police Department began investigating a large-scale fentanyl trafficking ring. Through the investigation, law enforcement learned that the leaders of the DTO were based on the west coast, but they set up apartments in the Fayetteville area for use as hubs for the distribution of dozens of kilograms of fentanyl across the United States.
Through the use of surveillance and controlled purchases, investigators identified Ellingson as a member of the drug trafficking organization, which was primarily based in California. Ellingson operated a Fayetteville stash house for the organization and then transported kilograms of fentanyl to cities around the country, including, but not limited, to Chicago, New York, and Baltimore. Ellingson also assembled firearms for the DTO members.
In early November 2019, Ellingson and two of his co-conspirators—Vorana and Valenzuela – decided to steal large quantities of drugs from the DTO, sell the drugs, and divide the profits.
Vorana and Valenzuela traveled from the west coast and stole 7 kilograms of fentanyl and approximately 3,000 fentanyl pills from the Fayetteville stash house. Each kilogram of fentanyl was valued at $38,000. On their way back to the west coast during the early morning hours of November 8, 2019, they were stopped for speeding in St. Charles County, Missouri and consented to a search of the vehicle they were driving. During the search, law enforcement discovered a toolbox that contained seven brick-like packages. The packages had been wrapped in electrical tape and covered in grease to help evade detection by drug canines. A key to the toolbox was found in Valenzuela’s pocket.
These cases are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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 cases were investigated in coordination with the U.S. Attorney’s Office for the Southern District of California, which prosecuted members of the drug trafficking organization based on the west coast.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation, the Drug Enforcement Administration (DEA), the Fayetteville Police Department, and the St. Charles County Police Department investigated the case and Assistant U.S. Attorney Scott Lemmon and Special Assistant U.S. Attorney Scott Gainer prosecuted the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:20-cr-00397-M and 5:20-CR-00012-M.
Twenty-Six-Year-Old California Man to Serve 42 Months for Supplying Fentanyl that Caused Wise County Teen OverdosesRead the Press Release
ABINGDON, Va. – A California man, who conspired with others to supply fentanyl linked to teenage overdoses that occurred in Wise County, Virginia, was sentenced this week to 42 months in federal prison.
Jorge Efrain Perez, 25, of Anaheim, California, pled guilty in January 2023 to one count of conspiring to distribute and possession with the intent to distribute 400 grams or more of fentanyl.
According to court documents, between November 2020 and June 2022, Perez, along with Alexander Ortiz and Destiny Raeann Perez, supplied thousands of pressed pills containing fentanyl to Paul Mason Perkins, Aaron Stidham, Austin Jeremiah Lane, Cheyenne Cassie Carico, and others, all drug dealers in Southwest Virginia.
Every few weeks, Perkins and Stidham used Snapchat and Instagram to buy thousands of fentanyl-laced pills from Ortiz. Both Jorge Perez and Destiny Perez assisted Ortiz by mailing the illicit packages from California to Big Stone Gap and Appalachia, Virginia. The pair then re-sold the deadly pills to other individuals throughout Wise County, including multiple sales to co-conspirators Lane and Carico. According to the evidence, Jorge Perez’s debit card was used over 150 times to mail illicit packages to Virginia.
On November 24, 2021, Lane and Carico sold pills to a 17-year-old female they knew from school who subsequently overdosed and was hospitalized later that night after ingesting those pills. On the same night, an 18-year-old male was also hospitalized due to a drug overdose. Further investigation revealed that pills from both overdoses were linked to Ortiz and had been shipped to Virginia by Jorge Perez.
Last week, Ortiz was sentenced to 17 years in prison for his role in the conspiracy. Destiny Perez was previously sentenced to 9 years in prison.
United States Attorney Christopher R. Kavanaugh, Craig B. Kailimai, Special Agent in Charge of the ATF’s Washington Field Division, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service - Atlanta Division, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case, with assistance from the Orange County (CA) Sheriff’s Department, Stanislaus County (CA) Sheriff’s Department, and Anaheim (CA) Police Department.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Syracuse Man Receives 78 Months in Prison for Drug and Firearm CrimesRead the Press Release
SYRACUSE, NEW YORK – James Bolds, age 36, of Syracuse, was sentenced yesterday to 78 months in prison for possession with intent to distribute a controlled substance, unlawful possession of a firearm and ammunition, and possession of body armor by a person convicted of a crime of violence.
United States Attorney Carla B. Freedman; Special Agent in Charge Craig L. Tremaroli of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Syracuse Police Chief Joseph Cecile made the announcement.
As part of his prior guilty plea, Bolds admitted that in October 2022, he possessed in his Syracuse apartment approximately 27 grams of cocaine, which he intended to distribute to others. Bolds further admitted that he also possessed at his apartment a loaded handgun, knowing that he had previously been convicted of crimes punishable by imprisonment for a term exceeding one year. Bolds acknowledged that he had prior convictions in North Carolina for robbery, assault inflicting serious bodily harm, and possession of a firearm by a felon. Bolds also admitted possessing in his apartment approximately 67 rounds of ammunition and a bulletproof vest.
United States District Judge David N. Hurd also sentenced Bolds to a 3-year term of supervised release, which will begin after his term of imprisonment.
The FBI and the Syracuse Police Department investigated this case. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
Syracuse Man Receives 101 Months in Prison for Drug and Firearm CrimesRead the Press Release
SYRACUSE, NEW YORK – Rodney Sumlin, age 37, of Syracuse, was sentenced today to 101 months in prison for possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime.
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.
As part of his prior guilty plea, Sumlin admitted that on November 8, 2022, he possessed 108 grams of cocaine at his residence in Syracuse, intending to distribute it to others. Sumlin also possessed a loaded .45 caliber pistol, which he possessed in furtherance of his drug trafficking activities.
Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of supervised release to follow the prison term.
DEA investigated the case, with assistance from the Syracuse Police Department, the Onondaga County District Attorney’s Office, and the Onondaga County Sheriff’s Office. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
Superseding Indictment Charges Fugitive with Money Laundering OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that DELROY ANDERSON, also known as “Max,” 56, formerly of Stamford, appeared yesterday in New Haven federal court for his arraignment on money laundering offenses contained in a superseding indictment. Anderson entered a plea of not guilty to the charges.
As alleged in the superseding indictment, which was returned by a grand jury in Bridgeport on July 6, 2022, for approximately five years, Anderson conspired with others to launder hundreds of thousands of dollars in proceeds from a marijuana trafficking operation by paying for marijuana cultivation, package shipping, electricity, and air travel expenses with the proceeds. He also deposited the drug trafficking proceeds into multiple bank accounts opened in the name of Maximillion Enterprises Inc., and structured deposits to evade reporting requirements under federal law.
In February 2020, Anderson was charged, with alleged co-conspirators Kelvin Jackson and Stephanie Atkinson, by indictment with various money laundering offenses. On February 18, 2022, Anderson, who had been released on bond pending trial, was scheduled to appear before U.S. District Judge Kari A. Dooley in Bridgeport for a guilty plea proceeding. He failed to appear for that court proceeding and ceased contact with his attorney and the U.S. Probation Office.
On November 8, 2023, the U.S. Marshals Service located and arrested Anderson in Dallas, Texas. He has been detained since his arrest.
The superseding indictment charges Anderson with one count of conspiracy to launder monetary instruments, three counts of promotional money laundering, two counts of concealment money laundering, and one count of structuring money laundering. If convicted, Anderson faces a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Jackson, 54, of Bristol, Virginia, and Atkinson, 45, of Stamford, have each pleaded guilty to one count of conspiracy to launder monetary instruments. Both await sentencing.
This matter is being investigated by the Drug Enforcement Administration and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys and David T. Huang and Jocelyn Courtney Kaoutzanis 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.
Sudbury Bookkeeper Pleads Guilty to Fraud ChargesRead the Press Release
BOSTON – A former bookkeeper for a Lexington interior design firm pleaded guilty today to bank fraud charges in connection with her embezzling more than $180,000 from her former employer.
Christina Iannelli, 51, of Sudbury, pleaded guilty to seven counts of bank fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for March 14, 2024. Iannelli was arrested and charged in March 2022.
Iannelli was an independent contractor for an interior design firm based in Lexington. Beginning in or about October 2018, Iannelli prepared dozens of fraudulent invoices with inflated totals derived from inaccurate math, and then issued herself checks for the inflated amounts due from the firm’s checking account. Additionally, beginning in or about July 2019, Iannelli issued herself dozens of additional unauthorized checks. In both instances, Iannelli used a signature stamp in the name of the firm’s owner to issue the fraudulent checks.
To conceal the fraudulent payments, Iannelli made false entries in the firm’s accounting records. In total, Iannelli embezzled more than $30,000 through inflated compensation checks and more than $150,000 through additional unauthorized checks.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. 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.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Lexington Police Chief Michael McLean made the announcement today. Valuable assistance was provided by the Sudbury Police Department. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
St. Michael, ND, Man Convicted of Multiple Counts of Assault with a Dangerous Weapon, Discharge of a Firearm in a Crime of Violence, and Brandishing of a Firearm in a Crime of ViolenceRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that after a seven-day trial, a jury found Nathaniel Patrick Azure, age 21, from St. Michael, ND, guilty of three counts of Assault with a Dangerous Weapon, two counts of Discharge of a Firearm During and in Relation to a Crime of Violence, and one count of Brandishing of a Firearm During and in Relation to a Crime of Violence.
The jury convicted Azure for his role in a non-fatal shooting in Fort Totten, ND, on January 6, 2021. Azure was also convicted for assaulting another person while brandishing a firearm in St. Michael, ND, on May 21, 2022, and for a non-fatal shooting of a third person in St. Michael, ND, on May 22, 2022.
Sentencing of Azure will be April 16, 2024, in the District of North Dakota, Fargo.
Michael Al-Jerome Denne, the 25-year-old brother of Azure, previously pleaded guilty to his participation in the January 6, 2021, shooting and has been sentenced. Dantae Jerome Whitetail, aged 23, Minnewaukan, ND, previously pleaded guilty to his participation in the May 21, 2022, brandishing assault and is scheduled to be sentenced on January 5, 2024. Skyla Kay Cavanaugh, aged 23, St. Michael, ND, previously pleaded guilty to being an accessory after the fact in the May 22, 2022, shooting and providing false statements to federal agents after the shooting, as well as later retaliating against a witness to the shooting.
“The United States Attorney’s Office is committed to combatting violent crime in Indian country,” Schneider said. “This guilty verdict is a credit to the dogged determination of our career prosecutors and their colleagues in federal law enforcement. As we work to be a strong federal partner in promoting public safety in North Dakota, we will continue ensure that individuals who engage in violence face justice in United States District Court.”
This case was investigated by the Federal Bureau of Investigation; Bureau of Indian Affairs, and Benson County Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Jacob T. Rodenbiker and First Assistant U.S. Attorney Jennifer Puhl, District of North Dakota.
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South Los Angeles-Based Gang Member Sentenced to 14 Years in Prison for Leading Crack Cocaine Trafficking Ring in WattsRead the Press Release
LOS ANGELES – A leader of the Bounty Hunter Bloods (BHB) street gang was sentenced today to 168 months in federal prison for leading a manufacturing and distribution of crack cocaine organization in and around the gang’s “territory” of the Nickerson Gardens public housing projects in the Watts neighborhood of Los Angeles.
Damion Baker, 46, a.k.a. “Fatts,” of the Harbor Gateway area of Los Angeles, was sentenced by United States District Judge Fernando L. Aenlle-Rocha. Baker pleaded guilty on February 17 to one count of conspiracy to manufacture, distribute, and possess with intent to distribute cocaine, and one count of being a felon in possession of a firearm.
Baker was the lead defendant in an indictment targeting members and associates of the BHB street gang for drug- and firearm-related crimes. He has been in federal custody since his April 2021 arrest in this case.
From August 2019 to May 2020, Baker organized and led a drug trafficking conspiracy in which he and his accomplices agreed to distribute cocaine. Specifically, Baker arranged to obtain powder cocaine from at least two drug suppliers. He then directed his co-conspirators to cook, and would himself cook, the powder cocaine and manufacture it into crack cocaine to sell to customers, including back to his powder cocaine suppliers to sell in crack form.
Baker directed his accomplices in the packaging, sale, and delivery of crack cocaine to customers, which included co-conspirators and other BHB gang members. Baker also directed the receipt and storage of drug proceeds throughout BHB-claimed territory in South Los Angeles.
As part of these activities, Baker arranged for an accomplice’s residence in the Nickerson Gardens housing projects in Watts to be used as a stash house in which Baker and his co-conspirators continuously sold crack cocaine over a period of many months. Baker recruited and hired co-conspirators to work at the Watts stash house and directed them in selling narcotics to customers there and in nearby areas, restocking the stash house’s drug supply, and transporting drug proceeds to Baker and other accomplices at various locations.
Baker admitted in his plea agreement to possessing a firearm in May 2020. He was not permitted to do so because he previously had been convicted of felonies in Los Angeles Superior Court, including a cocaine possession charge in 1998 and a domestic violence-related charge in 2001. He has admitted that he possessed the firearm for the purpose of protecting his crack cocaine distribution business.
Baker also agreed to forfeit the firearm and $44,600 in cash law enforcement seized at his residence in Los Angeles and at another residence in Compton.
“A member of the BHB gang, [Baker] was the most culpable and essential figure in this serious criminal conspiracy that plagued BHB territory in and around the Nickerson Gardens Housing Projects in Watts…and elsewhere in Los Angeles,” prosecutors argued in a sentencing memorandum.
The other 11 defendants in this indictment either have pleaded guilty or signed plea agreements in this case and await sentencing. Another BHB gang member, and Baker’s second in command in the drug trafficking conspiracy, Tony Carr, 52, a.k.a. “T-Bone,” of Watts, pleaded guilty in July 2022 to one count of cocaine trafficking conspiracy and one count of being a felon in possession of a firearm. In October 2022, Judge Aenlle-Rocha sentenced Carr to 188 months in federal prison.
The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs, which consists of the FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the California Department of Corrections and Rehabilitation, investigated this matter.
Assistant United States Attorney Amy E. Pomerantz of the Violent and Organized Crime Section prosecuted this case.
South Lake Tahoe CEO Pleads Guilty to Employment Tax CrimesRead the Press Release
A California man pleaded guilty yesterday to willfully failing to pay employment tax withholdings to the IRS.
According to court documents and statements made in court, in 2016 and 2017, Robert Hienekamp was the chief executive officer of Endowance Solutions Inc., a software consulting and development company located in the South Lake Tahoe, California, area. During each of those years, Endowance Solutions withheld income, Social Security and Medicare taxes from its employees’ wages. Hienekamp did not file the legally-required quarterly employment tax returns or pay the withholdings to the IRS, despite knowing of his obligation to do so. In total, Hienekamp caused a tax loss of over $800,000.
Hienekamp is scheduled to be sentenced on June 27, 2024, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ismail J. Ramsey for the Northern District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Mahana Weidler of the Tax Division and Assistant U.S. Attorney Michael Lagrama for the Northern District of California are prosecuting the case.
Six Individuals, Including Two Maryland State Department of Labor Subcontractors, Facing Federal Indictment for a Scheme to Fraudulently Obtain COVID-19 CARES Act Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment charging six individuals for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft, relating to the submission of fraudulent CARES Act unemployment insurance (“UI”) claims. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. The indictment was returned on October 24, 2023, and unsealed today upon the arrests of several defendants. The following defendants are charged in the indictment:
Lawrence Nathanial Harris, a/k/a “Manman” and “Biggbank,” age 30, of Temple Hills, Maryland;
Ahmed Hussain, a/k/a “Oso,” age 22, of Oxon Hill, Maryland;
Zakria Hussain, age 26, of Washington, D.C.;
Terry Chen, a/k/a “Mike Livingston” and “2Trunt Up,” age 24, of Bowie, Maryland;
Kiara Smith, age 26, of Fort Washington, Maryland; and
Bryan Nushawn Ruffin, age 26, of Woodbridge, Virginia.Smith and Ruffin were employed by Company 1, which provided professional support services to the Maryland Department of Labor to review UI claims and administer UI benefits.
Ahmed Hussain and Terry Chen are expected to have an initial appearance in U.S. District Court in Greenbelt later this afternoon. Harris, Smith, and Ruffin are expected to have initial appearances next week. Zakria Hussain will have his initial appearance upon being taken into custody.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Troy W. Springer of the National Capital Region, U.S. Department of Labor - Office of Inspector General; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
“In partnership with the U.S. Department of Labor – Office of Inspector General and the FBI, our COVID-19 Strike Force prosecutors have used data to uncover alleged fraud, waste, and abuse as outlined in today’s indictment,” said United States Attorney Erek L. Barron. “This case is an example of the results being obtained by our office’s COVID-19 Strike Force, which is one of five nationwide that the Attorney General has designated to fight pandemic related fraud.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving Unemployment Insurance programs,” stated Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor - Office of Inspector General. “We will continue to work closely with the U.S. Attorney’s Office and our other law enforcement partners on the Maryland COVID-19 Fraud Strike Force, as well as the Maryland Department of Labor, to protect the integrity of programs intended for unemployed American workers, including those who were affected by the COVID-19 pandemic.”
“The FBI is pleased to be a part of the COVID-19 Strike Force in Maryland," said Acting Special Agent in Charge R. Joseph Rothrock of the FBI'S Baltimore Field Office. "We will continue to work with our law enforcement partners to seek justice against those individuals who shamelessly defrauded pandemic relief programs during a time of uncertainty and crisis.”
The CARES Act and other federal legislation provided expanded financial assistance to Americans throughout the pandemic, and expanded eligibility for Unemployment Insurance benefits.
According to the 18-count indictment, beginning in at least January 2021 and continuing until about September 2023, the defendants and their co-conspirators engaged in a scheme to defraud the United States, the State of Maryland, multiple financial institutions and multiple individuals—including at least six identity theft victims—by submitting false and fraudulent claims for UI benefits to the Maryland Department of Labor (“MD-DOL”), the agency in Maryland responsible for processing those claims. As part of the conspiracy, the defendants obtained and attempted to obtain more than $500,000 through the submission of fraudulent UI claims.
As detailed in the indictment, the defendants possessed and used computers that Company 1 had issued to Smith and Ruffin to access nonpublic UI data and databases maintained by the MD-DOL The indictment alleges that the defendants and their co-conspirators used their access to MD-DOL databases to change information on existing UI claims, including the contact email address, the online account password, and the payment method for existing UI claims. In addition to allegedly submitting false and fraudulent information in support of UI claims using the personal identifying information (PII) of identity theft victims, the indictment alleges that the defendants and their co-conspirators used their access to the MD-DOL databases to upload and approve documents submitted in support of fraudulent UI claims, remove fraud holds on UI claims, certify weeks for determining UI benefits, and engage in other actions to facilitate the payment of fraudulent UI benefits. The MD-DOL disbursed the UI benefits to bank accounts that were believed to be those of the UI applicants, but allegedly were opened and controlled by the defendants and their co-conspirators.
If convicted, the defendants all face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy. All the defendants except Ahmed Hussain also face a maximum of 20 years in federal prison for each count of wire fraud and a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the DOL-OIG and the FBI for their work in the investigation and thanked the Maryland Department of Labor for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who are prosecuting the case. Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Shelby Township Doctor Convicted in a $6.3 Million Illegal Prescription Opioid Conspiracy Involving More than 300,000 pillsRead the Press Release
A federal jury convicted Dr. Lawrence Mark Sherman, 74, of Shelby Township, on all counts of a 20-count indictment charging him with conspiracy to unlawfully distribute prescription opioids, including Oxycodone, Oxymorphone, and Oxycodone-Acetaminophen (Percocet), and 19 counts of illegal distribution of Oxycodone, U.S. Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge Cheyvorea Gibson, Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Dr. Sherman was convicted for his involvement in the operation of Tranquility Wellness Center, Inc., from March 2020 through June 2021, which operated first in Dearborn and later in Saint Clair Shores. Dr. Sherman was the only prescribing doctor who primarily prescribed Oxycodone 30mg, Oxymorphone 40mg, and Oxycodone-Acetaminophen 10-325 mg (Percocet), three of the most addictive prescription opioids. These prescription drugs are also among the most highly diverted prescription opioids due to their high street value. The other defendants charged in the case, including clinic operators Janeice Burrell and Angelo Smith, clinic employees Akeyla Bell and Carmen Gilbreth, and Peter Burrell previously pleaded guilty.
According to the evidence presented at trial, Dr. Sherman conspired with the other defendants to illegally authorize more than 3,000 opioid prescriptions for supposed “patients” who did not have a legitimate medical need for the drugs, and who were typically brought to the clinic by “patient recruiters/marketers.” Tranquility Wellness Center accepted only cash and charged patients, not based on the service provided, but instead based on the quantity, type, and dosage of prescription opioids that the “patient” received. The clinic also charged cash for the creation of fraudulent medical records for the supposed “patients.” Janeice Burrell and Angelo Smith paid Dr. Sherman in cash or via peer-to-peer money transfers, and only paid him if he wrote controlled substance prescriptions, not based on any supposed “medical care.” During the trial the jury heard testimony that Doctor Sherman issued more than 300,000 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a street value in excess of $6.3 million.
While the unlawful controlled substance prescriptions were paid for in cash, both controlled and non-controlled “maintenance” medications were billed to health care benefit programs by pharmacies. Billings to the Medicare and Medicaid programs for medically unnecessary prescription drug medications and maintenance medications during this conspiracy exceeded $500,000.
“My office remains committed to doing what it can to hold doctors and other health care professionals accountable when they illegally feed the opioid epidemic by writing illegal opioid prescriptions, rather than helping to address the terrible impact the opioid epidemic has had on our community,” stated U.S. Attorney Ison. “We will pursue drug dealers whether they are peddling drugs on the street or while wearing white coats in a medical office.”
"Today's verdict should be a stern warning to any fraudulent medical providers who are willing to engage in illegal prescription drug and opioid distribution schemes," said Special Agent in Charge, Cheyvoryea Gibson of the FBI in Michigan. “By prescribing medically unnecessary medications, the defendant put vulnerable community members at risk and contributed to inflated health care costs. The FBI, along with our law enforcement partners, continue to work collaboratively to bring those to justice who seek to peddle poisons into our state and defraud healthcare systems.”
“Medical providers who facilitate the unlawful distribution of prescription controlled substances place their patients, and others, at risk of harm and also undermine the critical public health efforts underway to address the opioid epidemic,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working together with our law enforcement partners to identify and investigate those medical providers who unlawfully engage in overprescribing these medications.”
The maximum penalty for the drug conspiracy is twenty years’ imprisonment. The maximum penalty for the substantive counts of unlawful distribution of Schedule II controlled substances is 20 years on each count. The trial, which began on November 15, 2023, was conducted before United States District Judge Judith Levy. Sherman is scheduled to be sentenced on April 17, 2024.
The case was investigated by special agents and task force officers of the Federal Bureau of Investigation and the Department of Health and Human Services-Office of the Inspector General and prosecuted by Assistant United States Attorneys Andrew J. Lievense and Alison Furtaw.
The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.Seven Individuals Indicted on Fraud and Money Laundering Charges Relating to International Lottery Scam Targeting ElderlyRead the Press Release
PITTSBURGH – Seven individuals have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to commit mail fraud, wire fraud, and money laundering, United States Attorney Eric G. Olshan announced today. The charges stem from the Department of Justice’s wide-ranging efforts to protect older adults from fraud and financial exploitation.
Defendants, Jason Plummer, 31; Troy Williams, 38; and Tajay Singh, 26, each of Montego Bay, Jamaica, were each named in separate, two-count Indictments. A fourth two-count Indictment named defendants Tashane Murray, 30, of Miramar, Florida; Clevon McKenzie, 31, of Mount Vernon, New York; Gyzzell Byfield, 27, of Bridgeport, Connecticut; and Daneil Reid, 27, of Fort Lauderdale, Florida. Murray, McKenzie, Byfield, and Reid were arrested in the United States on November 16, 2023. Plummer and Singh were arrested in Jamaica on December 13, 2023. Williams was arrested in Jamaica on December 14, 2023.
According to the Indictments, defendants executed a scheme to defraud that stole more than $2.8 million from the elderly and vulnerable victims in the Western District of Pennsylvania and elsewhere in the United States. As part of that scheme, conspirators contacted the victims and falsely told them that they had won a million or multi-million-dollar sweepstakes, but needed to pay certain taxes and fees before they could claim their prize. These claims were often reinforced with forged documents purporting to describe the sweepstakes winnings and required taxes and fees, some of which bore the seals of government agencies. Williams, Plummer, Singh, Murray, and McKenzie all targeted victims in one or more of those ways. The conspirators then directed the victims to send money, including cash, checks, and money orders, to people designated by the conspirators. Some of these people were victims of the lottery scam, who had been unwittingly fooled into accepting and moving money on behalf of the members of the conspiracy. Others, like Byfield and Reid, were members of the conspiracy themselves. After being laundered through a network of bank accounts and money mules, victim money was withdrawn by members of the conspiracy living in Jamaica.
“These defendants allegedly enriched themselves at the expense of elderly victims who believed they had won the lottery,” said U.S. Attorney Olshan. “Protecting our most vulnerable populations from the proliferation of targeted fraud schemes like the one alleged in this case remains a significant priority of our office. We will continue to work with all of our domestic and foreign law enforcement partners in our shared pursuit of justice on behalf of crime victims.”
“Those charged targeted and took advantage of some of the most vulnerable people in our society,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “This was a wide-reaching conspiracy that cost victims millions of dollars. Unfortunately, it’s a crime that is increasing every year, and Pennsylvania remains one of top states in the country that is impacted. The FBI is dedicated to stopping crime groups abroad and here at home who exploit our seniors with financial fraud schemes.”
“The U.S. Postal Inspection Service is committed to investigating fraudulent lottery schemes designed to defraud innocent victims,” said Lesley Allison, U.S. Postal Inspector in Charge in Pittsburgh. “Combating international fraud schemes is a priority of the Postal Inspection Service particularly since the fraudsters prey on our most vulnerable US citizens. Postal Inspectors will exhaust all efforts to identify and indict those responsible for using the US Mail to facilitate these egregious criminal acts against our seniors.”
“The interagency cooperation throughout this investigation has been exemplary as we all worked toward our common goal of safeguarding our valued seniors,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “We ask the public to do their part in this fight as well. Check-in with senior citizens and loved ones frequently. Ask them about any transactions that may seem out of the ordinary. Together we can help to keep our family and friends financially safe and sound.”
The law provides for a maximum total sentence of 20 years in prison, a fine of twice the pecuniary loss to any victim, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, United States Postal Inspection Service, and United States Department of Homeland Security, Homeland Security Investigations conducted the investigation leading to the Indictments in this case. They were assisted in the investigation by other domestic and international agencies, including the United States Marshals Service, JOLT Fusion Center, Jamaican Constabulary Force, National Intelligence Bureau, Financial Investigations Division, Major Organized Crime and Anti-Corruption Agency, and Fugitive Apprehension Team. The Justice Department’s Office of International Affairs provided substantial assistance.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Settlement with Hamden/North Haven YMCA Ensures Access to Programs for Children with DisabilitiesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the United States and the Central Connecticut Coast YMCA have entered into a settlement agreement to resolve allegations that staff at one of its branches, the Hamden/North Haven YMCA, discriminated against a child with Down syndrome in violation of the Americans with Disability Act (“ADA”).
This matter was initiated by a complaint made with the U.S. Department of Justice on behalf of a child with Down syndrome who requires toileting assistance. The complaint claimed that staff at the Hamden/North Hamden YMCA did not provide reasonable modifications to allow the child to enjoy the full benefits of the before-school program and did not allow the child to enroll in the after-school program until and unless the child’s family found and, if necessary, paid for a personal aide to accompany the child.
Under the terms of the settlement agreement, the Hamden/North Haven YMCA has agreed not to discriminate against children with disabilities in the future. It will implement new policies and procedures for handling requests for reasonable modifications that are consistent with the ADA and that include obligations to conduct an individualized assessment of each child’s needs and engage in a back-and-forth interactive process with parents, guardians, and caregivers about a child’s needs. The Hamden/North Haven YMCA will also provide training to its staff on the ADA.
In addition, working with the Hamden Special Education Parents Teacher Association, the Hamden North Haven YMCA has also agreed to conduct outreach to parents, guardians, and caregivers of children with disabilities in the Hamden community, including making reasonable efforts to reach those who do not speak English as their primary language. The Hamden/North Haven YMCA will also designate an ADA coordinator, who will be responsible for reviewing requests for reasonable modifications and ensuring that proper communication occurs between the YMCA staff and parents, guardians, caregivers, and school personnel about the needs of each child with a disability enrolled in its programs.
The Central Connecticut Coast YMCA has also agreed to pay $3,000 to the individual who complained and to allow the complainant’s child to enroll in the before- and after-school programs in future with appropriate reasonable modifications, if needed.
“Families depend on childcare so that they can go to work and earn a living to support their families,” said U.S. Attorney Avery. “This includes finding appropriate childcare for children with disabilities. My office is committed to ensuring that every child’s family has equal access to childcare in Connecticut. I want to thank the Central Connecticut Coast YMCA and the Hamden/North Haven YMCA for signing this settlement agreement, which signals their commitment to serving children with disabilities and their families in the future.”
The settlement agreement is effective for three years, and the U.S. Attorney’s Office will monitor compliance during that time.
This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700 and ask for the Civil Rights Intake Specialist.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Sarasota Man Pleads Guilty to Leaving Threatening Voicemail Targeted at Jewish Organization in New YorkRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Deep Alpesh Kumar Patel (21, Sarasota) today pleaded guilty to transmitting an interstate threat to injure. Patel faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on October 21, 2023, Patel left a threatening voicemail at a Jewish organization in New York City in which he identified himself by name, screamed numerous expletives, “If I had a chance, I would kill every single one of you Israelis. Every single one of you! Cause mass genocide of every single Israeli.” Patel also admitted that he had called a synagogue in Temple Terrace, Florida the same day, and had left another expletive-laden voicemail threatening to close it down.
Patel agreed to a special finding that he intentionally selected Jewish and/or Israeli individuals as the objects of his threat based on their actual or perceived race, religion, national origin, or ethnicity.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Risha Asokan.
Download Plea AgreementSallisaw Resident Sentenced for Enticement and Sexual Abuse of A MinorRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Austin Jae Brown, age 24, of Sallisaw, Oklahoma, was sentenced to 10 years in prison for enticement and sexual abuse of a minor. Brown will be placed on a 15-year term of supervised release following his term of imprisonment and will be required to register as a sex offender.
The charge arose from investigations by the Cherokee Nation Marshal Service, the Adair County Sheriff’s Office, the Choctaw Nation Lighthorse Police, and the Federal Bureau of Investigation.
On December 9, 2022, Brown pleaded guilty to two counts of enticement and one count of sexual abuse of a minor. The defendant used the internet to compel two minor victims to provide child sexual abuse materials to him and engaged in sexual acts with one of the minor victims.
The Honorable Jodi W. Dishman, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearings in Oklahoma City. Brown will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Caila M. Cleary represented the United States.
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. For more information about internet safety education, please visit www.justice.gov/psc and click on the tab ‘Resources.’
Sacramento Man Charged with Distribution of Fentanyl and Illegal Possession of a GunRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Tio Sessoms, 43, of Sacramento, charging him with distribution of fentanyl and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 28, 2023, Sessoms sold approximately a half kilogram of fentanyl to law enforcement in downtown Sacramento. In September 2023, Sessoms was in possession of two firearms while being a felon convicted of voluntary manslaughter and first-degree burglary.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alexis Klein is prosecuting the case.
If convicted of distribution of fentanyl, Sessoms faces a mandatory minimum of 10 years in prison, a maximum penalty of life in prison, and a $5 million fine. If convicted of being a felon in possession of a firearm, Sessoms faces a maximum penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Sacramento Grocery Store Owner and General Manager Indicted for Conspiracy, Immigration Fraud, Obstruction of Justice, and Pandemic Relief FraudRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 25-count indictment Thursday against Shahrir “Sean” Loloee, 53, of Granite Bay, and Karla Montoya, 42, of Sacramento, charging them both with conspiracy, obstruction of agency proceedings, and possession and use of false immigration documents, U.S. Attorney Phillip A. Talbert announced. Loloee is additionally charged with falsification of records and a pandemic relief fraud scheme.
According to court documents, Loloee is the owner of the Viva Supermarkets chain of grocery stores, and Montoya is the general manager. Since 2008, Loloee and Montoya engaged in a conspiracy to employ a labor force at the stores that consisted of a significant number of workers who lacked employment authorization in the United States. Loloee and Montoya did so for the purpose of reducing Loloee’s labor force costs through unlawful means, including by failing to pay required overtime wages.
The indictment alleges that, in 2020, the U.S. Department of Labor began two investigations at Viva Supermarkets. Loloee and Montoya obstructed these investigations in a variety of ways, including by making false statements to agency investigators, listening in on an employee interview with an investigator for the purpose of influencing the employee to make false statements, instructing an employee to lie to an investigator about her hire date, and directing certain workers to hide to prevent them from being questioned by agency investigators. Loloee is also charged with three instances of providing false documents to obstruct the Department of Labor’s investigations.
The indictment further alleges that Loloee committed wire fraud when he applied to receive COVID-19 relief from the Restaurant Revitalization Fund program (RRF). Established as part of the American Rescue Plan Act of 2021, the RRF was designed to support the restaurant industry by providing funding to those that had suffered significant pandemic-related revenue loss. To be eligible for an RRF award, a restaurant must have had a loss in gross receipts in 2020, as compared to 2019. In May 2021, Loloee submitted applications to the Small Business Administration (SBA) requesting RRF funds for two of his grocery stores. In the applications, Loloee substantially underreported each of his store’s 2020 gross receipts to make them appear entitled to an award, when they were not. Loloee requested over $2.2 million, and based on his fraudulent representations, the SBA awarded Loloee approximately $1.2 million.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath, Matthew Thuesen, and Kevin Khasigian are prosecuting the case.
This case was investigated with the assistance of the Tax Recovery in the Underground Economy (TRUE) Task Force includes the California Department of Justice, the California Employment Development Department, the California Department of Tax and Fee Administration, the Franchise Tax Board, the IRS-CI and HSI. The TRUE Task Force was created to ensure multi-agency collaboration and to combat wage theft, tax evasion, and other crimes in the underground economy.
If convicted, Loloee and Montoya face a maximum statutory penalty of five years in prison and a $250,000 fine for each count of conspiracy to defraud the Department of Labor, to commit immigration document fraud, and to obstruct justice; up to 10 years in prison and a $250,000 fine for each count of possession of false immigration documents or use of a false immigration document; and up to five years in prison and a $250,000 fine for each count of obstruction of agency proceedings. If convicted of the counts of falsification of records or wire fraud, Loloee faces a maximum statutory penalty of up to 20 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Rochester man indicted of charges of sex trafficking and kidnappingRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Cordell Brooks, 28, of Rochester, NY, with sex trafficking by force, fraud or coercion and kidnapping. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the indictment, between May and July 5, 2023, Brooks forced Victim 1 to engage in a commercial sex act. In addition, on July 5, 2023, Brooks kidnapped and abducted Victim 1.
Brooks was arraigned before U.S. Magistrate Judge Mark W. Pedersen and is being held.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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