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18 December 2023
Founder and Managing Director of Tax Lien Investment Firm Charged with Bank Fraud and Wire FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of JOHN ARTHUR HANRATTY for charges in connection with a fraudulent scheme to steal money from a Federal Deposit Insurance Corporation (“FDIC”)-insured bank through lines of credit totaling $20 million granted to HANRATTY’s municipal tax lien investment firm. HANRATTY was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the District of Puerto Rico.
U.S. Attorney Damian Williams said: “John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, allegedly stole money from a bank to obtain lines of credit totaling $20 million, which he misappropriated by paying back investors who had sued his firm. Thanks to this Office’s teamwork with the FBI, Hanratty is now facing serious criminal charges for his alleged fraud.”
FBI Assistant Director in Charge James Smith said: “Fraudsters are very good at what they do. They are extremely convincing and will jump at every opportunity to defraud a new pool of potential victims. John Hanratty allegedly prioritized his own greed over decency and respect for the laws of our country. The FBI and our law enforcement partners remain dedicated to investigating and holding accountable those who flagrantly disregard our laws by seeking to enrich themselves at the expense of their victims.”
According to the allegations in the Complaint unsealed today in Manhattan federal Court:[1]
HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens. At all relevant times, HANRATTY served as the Managing Director and Principal for Ebury Street Capital, which manages two different funds known as Ebury Fund 1 and Ebury Fund 2. HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and has previously held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer.
Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on $20 million in commercial lines of credit that had been extended to Ebury Street Capital. Specifically, HANRATTY made materially false statements on spreadsheets (known as “borrowing base certificates”) submitted to Victim Bank-1 summarizing the value of the municipal tax liens that Ebury Street Capital was offering as collateral for its commercial line of credit. As a result of these false statements on Ebury Street Capital’s borrowing base certificates, Victim Bank-1 paid Ebury Street Capital large sums of money to which it was not entitled. The false statements on Ebury Street Capital’s borrowing base certificates included, among other things, listing large quantities of municipal tax liens on the borrowing base certificates that Ebury Street Capital did not actually own and double-counting municipal tax liens by listing the same liens on multiple borrowing base certificates.
Additionally, although Ebury Street Capital was contractually required to use money from Victim Bank-1 either to purchase municipal tax liens or for ordinary business expenses, HANRATTY actually used portions of the money obtained from Victim Bank-1 to pay off Ebury Street Capital’s investors who were threatening to sue and who, in fact, ended up suing Ebury Street Capital and HANRATTY after Ebury Street Capital was unable to pay investors who were seeking to pull out their investments from the fund.
Ebury Street Capital’s commercial line of credit has now been completely exhausted, and the entity owes over $20 million in principal and interest to Victim Bank-1.
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HANRATTY, 49, of San Juan, Puerto Rico, is charged with one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum sentence of 30 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the FBI Field Office in San Juan for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew K. Chan and Nicholas Chiuchiolo are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Fort Thompson Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on December 11, 2023.
Mark Fleury, age 48, was sentenced to six months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Fleury was indicted by a federal grand jury in July of 2023. He pleaded guilty on September 14, 2023.
Fleury was convicted of Abusive Sexual Contact in 2004. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On May 13, 2023, Fleury moved from his registered address in Fort Thompson to an address in Sioux Falls, South Dakota, but he did not update his sex offender registration. Fleury moved back to Fort Thompson on or about May 31, 2023, at which time he updated his registration.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Fleury was immediately remanded to the custody of the U.S. Marshals Service.
Former Teacher Convicted of Child ExploitationRead the Press Release
Greenville, Miss. – A former Amory High School teacher was convicted by a federal jury today for sexually exploiting at least seven students over a ten-year period.
According to court documents and evidence presented at trial, Toshemie Wilson, 48 years old, of Wren, Mississippi, was found guilty of eight counts of using students to produce sexually explicit material while he was a teacher at Amory High School. Wilson used his position as an advisor for the student group Technology Students of America to groom students to eventually produce child sexual abuse videos and pictures in exchange for money and drugs.
The investigation began when one former student reported the abuse to a counselor. That counselor reported the statement to law enforcement. From there, investigators with the Mississippi Attorney General’s Office and agents from the Federal Bureau of Investigation uncovered at least 10 other former students who alleged similar conduct and payment for sexually explicit videos.
Eight unnamed witnesses testified that Toshemie Wilson approached them to make masturbation videos in exchange for pay between 2005 and 2014. The witnesses identified a number of places Wilson had them make the videos – the school bathroom, an office space rented specifically for this purpose, and the Amory WalMart bathroom. Several of the witnesses stated they were induced to make videos while on out-of-town school trips with the Technology Students of America, a group that Wilson served as advisor.
After he was indicted, agents met with Toshemie Wilson and his attorney where Wilson admitted to having a collection of student sexual abuse materials on a hard drive that he threw away.
Wilson is also under state indictment in the Circuit Court of Monroe County, where charges remain pending.
“Once again, hard work and perseverance by federal, state and local investigators and prosecutors has removed from society an individual with a demonstrable sexual interest in children,” said U.S. Attorney Clay Joyner. “I am extremely proud of Assistant United States Attorneys Parker King and Clyde McGee for their trial work on the case, and thankful for the investigative work of the FBI and the Mississippi Attorney General’s Office…we must all continue to prosecute these offenders to the fullest extent of the law.”
"Preying upon vulnerable students and exploiting their trust and innocence is abhorrent," said Mississippi Attorney General Lynn Fitch. "I am grateful justice is being served, and I hope my team's hard work in investigating and prosecuting this case alongside the FBI and U.S. Attorney's Office demonstrates to these victims that the community values and cares for them and longs to help them on their healing journey."
The Mississippi Attorney General’s Office and the FBI investigated the case.
Assistant U.S. Attorneys Parker S. King and Clyde McGee prosecuted the case.
Former Linkedin Employee Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
SAN FRANCISCO – Kent Laird pleaded guilty in federal court today to two counts of conspiracy to commit mail fraud, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The plea was accepted by the Honorable Jaqueline S. Corley, U.S. District Judge.
In pleading guilty, Laird, 50, of Bothell, Washington, admitted that as the Head of Content, Video & Studios for LinkedIn Media Productions (otherwise known as LMP) he became involved in two separate conspiracies and mail fraud schemes involving two independent contractors. Specifically, in June and then in October of 2018, Laird recommended that two independent contractors be hired by LinkedIn to assist him with producing various podcast projects despite knowing that neither person had any professional experience as a podcast producer. Over the course of the next eighteen months, Laird approved a total of 129 false invoices that the independent contractors submitted to LinkedIn. Laird submitted these invoices knowing that the two independent contractors had performed little to no podcast writing and producing work on behalf of LinkedIn. As a result of receiving these false invoices, LinkedIn paid a combined total of $689,210 to the two independent contractors. During the course of the conspiracy, Laird received kickbacks in the amount of $184,050 from the falsely obtained proceeds.
A federal grand jury indicted Laird on February 21, 2023, charging him with two counts of conspiracy to commit mail fraud, in violation of 18 U.S.C. § 1349, and eighteen counts of mail fraud, in violation of 18 U.S.C. § 1341. Under the plea agreement, Laird pleaded guilty to the two conspiracy counts. If he complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Laird faces a maximum sentence of 20 years in prison, a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. § 1349. Any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Corley scheduled Laird’s sentencing hearing for March 27, 2024.
Assistant U.S. Attorney Barbara J. Valliere is prosecuting the case with the assistance of Kathy Tat. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Lake City, PA Resident Pleads Guilty to Violating Federal Laws Related to the Sexual Exploitation of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Lake City, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
William Joseph Leuschen, 38, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around May 2020 to in and around February 2022, Leuschen received and possessed images depicting prepubescent minors, some as young as infants and toddlers, engaging in sexually explicit conduct. As part of his plea, Leuschen agreed to a sentence of 15 years in jail to be followed by ten years of supervised release.
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 (CEOS), 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.
Judge Baxter scheduled sentencing for April 17, 2024, at 11:00 a.m. The law provides for maximum a total sentence of 40 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Erie County Detectives Bureau and the Erie County Adult Probation and Parole Department conducted the investigation that led to the prosecution of Leuschen.
Former Cook County Land Bank Authority Employee Sentenced to a Year in Federal Prison for Scheming to Fraudulently Purchase and Resell PropertiesRead the Press Release
CHICAGO — A former employee of the Cook County Land Bank Authority (CCLBA) has been sentenced to a year in federal prison for using “straw buyers” to fraudulently purchase and resell properties from the agency on his behalf.
MUSTAFAA SALEH, 37, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Andrea R. Wood imposed the year-and-a-day prison sentence during a hearing Friday in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Office of Special Inspector General for Troubled Asset Relief Program, IRS Criminal Investigation Division, Cook County Office of Independent Inspector General, and the Federal Housing Finance Agency’s Office of Inspector General. The government was represented by Assistant U.S. Attorneys Sean Franzblau and Kirsten Moran, and Special Assistant U.S. Attorney Brian Netols.
Saleh worked as an asset manager for the CCLBA, a governmental entity that promoted the redevelopment and reuse of vacant, foreclosed, abandoned, and tax delinquent real estate by acquiring and transferring the property to private ownership. The CCLBA sold the real estate at below-market rates and prohibited the buyers from selling or renting a property until the CCLBA was satisfied that the buyer had adequately improved it. CCLBA employees were prohibited from purchasing a property from the agency unless it would be used for the employee’s primary residence.
From 2016 to 2021, Saleh used nominee or “straw” buyers to fraudulently purchase six properties from the CCLBA on Saleh’s behalf and thereafter redeveloped, resold, and otherwise used the properties for Saleh’s financial benefit. In some instances, Saleh’s duties at the CCLBA allowed him oversight over the same properties he owned and resold. The properties were located in Chicago and the nearby suburbs of Oak Lawn and Midlothian.
In addition to the property fraud scheme, Saleh fraudulently obtained maintenance work from the CCLBA. In 2016, Saleh formed a property maintenance company called Evergreen Property Services and directed another individual to pose as its owner. Over the next three years, Saleh caused the CCLBA to contract with Evergreen and pay it more than $1 million for property maintenance services, even though CCLBA employees were prohibited from having a financial interest in property maintenance companies contracting with the agency.
Former Co-Owners of New Jersey Marketing Company Sentenced to Prison in $8.8 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – The former co-owners of a New Jersey marketing company were each sentenced today to 12 months and one day in prison for their roles in a scheme to defraud public and private health benefits programs of at least $8.8 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced.
Lisa Curty, 46, of Staten Island, New York, and Christine Myers, 38, of Phillipsburg, New Jersey, each previously pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to separate informations charging them with conspiracy to commit health care fraud. U.S. District Judge Katharine S. Hayden imposed the sentencing today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These two defendants are just the latest in a long line of schemers who took advantage of publicly and privately funded insurance plans, raiding them for millions of dollars in fraudulent reimbursements for compounded medications. We will continue to prosecute those who take advantage of our health care system to generate illicit income.”
“The volume of cases involving compound medication fraud has moved beyond frustrating for law enforcement, with an arrest, conviction or sentencing happening almost every other day in New Jersey,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The fraudsters committing these crimes aren't paying attention to the fact that everyone doing the same thing is going to federal prison. This is the FBI and our law enforcement partners screaming in the town square, you will be next if you continue to break the law.”
“Protecting the integrity of TRICARE, the healthcare system for our military members and their families, is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” Acting Special Agent-in-Charge Brian J. Solecki, DCIS Northeast Field Office, said. “Schemes to bill TRICARE for medically unnecessary services place a great burden on the TRICARE program. We will continue to work with the U.S. Attorney’s Office and our law enforcement partners to ensure that individuals who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between February 2015 and February 2017, Curty and Myers participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Curty and Myers exploited this opportunity by creating a New Jersey marketing company and hiring sales representatives to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid, to receive the prescriptions.
Once the prescriptions were written, they were filled by certain compounding pharmacies with which the marketing company conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay the marketing company a percentage of the reimbursement amount. As owners of marketing company, Curty and Myers retained a portion of the payment and provided a “commission” payment to the relevant sales representative.
In addition to the prison term, Judge Hayden sentenced the two defendants to two years of supervised release and ordered them to pay $8.2 million in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Solecki, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jordann Conaboy of the Opioid Abuse and Prevention Unit in Newark.
Former Boston Woman Pleads Guilty to Failing to Appear to Serve a Federal Prison SentenceRead the Press Release
BOSTON – A former Boston woman, who was sentenced to federal prison in 2021, pleaded guilty today to failing to surrender to serve her sentence.
Yris Sanchez, 54, pleaded guilty to failing to appear to serve a federal sentence. U.S. District Court Judge Denise J. Casper scheduled sentencing for April 11, 2024. Sanchez was indicted by a federal grand jury in April 2022 and arrested in Laredo, Texas in March 2023.
In May 2020, Sanchez was convicted of misusing a passport and was sentenced to 15 months in prison. Because of the COVID-19 pandemic, Sanchez requested release on conditions and to self-report to serve her sentence. The Court granted this request and released Sanchez on an appearance bond. Following several extensions of her self-report date, Sanchez failed to surrender to the Bureau of Prisons in June 2021 to serve her sentence. In July 2021, the Court forfeited Sanchez’s secured appearance bond and entered a further default judgment of $47,500 against Sanchez.
The charge of failure to surrender provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. Any sentence on this charge will be served consecutively to the sentence imposed on her prior case. 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; Matthew O’Brien, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; and Brian Kyes, U.S. Marshal for the District of Massachusetts made the announcement today. Assistant U.S. Attorney William F. Abely, Chief of the Criminal Division is prosecuting the case.
Florida Man Sentenced to 21 Months’ Imprisonment for His Role in “Grandparents” Mail Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jashua Noboa-Nival, age 22, of Orlando, Florida, was sentenced on December 15, 2023, by United States District Judge Robert D. Mariani to 21 months’ imprisonment, to be followed by a three-year term of supervised release, for his role as a courier in a Dominican Republic-based “grandparents” fraud scheme that preyed upon elderly American victims from states across the country.
According to United States Attorney Gerard M. Karam, from approximately June 2020 to October 2020, along with a group of other men from Bronx, NY, Noboa-Nival regularly traveled from New York City to locations in Pennsylvania to retrieve UPS and Fed Ex packages containing thousands of dollars in cash. These packages were sent by elderly victims, who were induced to send the money based upon false claims that their grandchildren had been arrested and charged with serious crimes and, consequently, were in immediate need of money. These false claims were made to the elderly victims in phone calls that they received from oversees co-conspirators in the Dominican Republic, who posed either as the victims’ grandchildren or as attorneys representing the victims’ grandchildren. At his sentencing, Noboa-Nival was ordered to pay $195,000.00 in restitution to the victims of the scheme.
This matter was investigated by the Federal Bureau of Investigation –Philadelphia Division, and its state and local law enforcement partners in Berks County, PA. Assistant United States Attorney Jeffery St John is prosecuting the case.
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Fernandina Beach Man Pleads Guilty to Threatening to Kill A United States Supreme Court JusticeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Neal Brij Sidhwaney (43, Fernandina Beach) has pleaded guilty to transmitting an interstate threat to kill. Sidhwaney faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to court documents, on July 31, 2023, Sidhwaney placed a phone call from Florida to the Supreme Court of the United States in Washington, D.C., and left an expletive-laden, threatening voicemail message. On the voicemail message, Sidhwaney identified himself by name and repeatedly threatened to kill a specific Supreme Court Justice.
This case was investigated by the Supreme Court of the United States Police – Protective Intelligence Unit with assistance from the United States Capitol Police –Threat Assessment Section. It is being prosecuted by Assistant United States Attorney Kirwinn Mike and Special Assistant United States Attorney Joe Wheeler, III.
Federal Trial Jury Finds Texas Man Guilty of Kidnapping an Adult Victim and Transportation of a Minor Across State Lines for Illegal Sexual ActivityRead the Press Release
Louisville, KY – Friday evening a federal jury convicted a Texas Man of fifteen criminal offenses to include transportation of a person for illegal sexual activity, transportation of a minor for illegal sexual activity, and inveigle and decoy kidnapping. To “inveigle” a person means to lure, or entice, or lead the person to do something by making false representations or promises or using other deceitful means. “Decoy” means enticement or luring by means of some fraud, trick, or temptation. He was also convicted of bank fraud, aggravated identity theft, and interstate threats to ransom.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.
According to court documents and evidence presented at trial, in November of 2018, Bryan Douglas Conley, age 41, used an online dating website to lure and entice a minor from Ohio to travel to Tennessee to meet with him. Conley created and used a false online profile named “Bryant” and offers of money and property to lure the minor across state lines. Conley and the false profile “Bryant” offered the minor money for sexual activity in Kentucky and Tennessee. Conley ultimately abandoned the minor several days later in Texas and stole her purse and phone.
In January of 2019, Conley used an online date website to inveigle and decoy an adult victim. Conley created the online profile “Lance Debeers” and falsely claimed to be a modeling agent. Both Conley and “Lance” engaged the victim in discussions about modeling. On January 29, 2019, Conley met the victim in Shepherdsville, Kentucky. He took the victim’s phone and provided her an unknown substance to drink as part of the modeling contract. He bound the victim and drove around Ohio, Kentucky, and Tennessee issuing ransom demands to the victims’ parents in Tennessee. The ransom demands included threats to physically and sexually harm the victim if his demands were not met.
On January 30, 2019, Conley retrieved a ransom placed by the FBI in Oak Grove, Kentucky. He was arrested shortly after retrieving the ransom. The victim was located in the car. Prior to the kidnapping, Conley met the victim and took her credit card and attempted to make purchases at a retail store in Oak Grove, Kentucky. He also attempted to access her credit card customer profile using the victim’s social security number.
In June of 2019, after Conley had been arrested and released from custody and ordered to wear an ankle monitoring device, he removed the device and fled to Ohio. He was subsequently arrested and detained.
Conley is scheduled for sentencing on March 11, 2024, in the United States District Court for the Western District of Kentucky. Conley remains in federal custody pending sentencing. He faces a mandatory minimum sentence of 12 years in prison and a maximum penalty of life in prison. A federal district court judge will determine the sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
The FBI, the Texas Department of Public Safety, the Brentwood Tennessee Police Department, and the Tennessee Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Joshua Judd and Joel King are prosecuting the case with assistance from paralegal James Aaron Cooper.
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Federal Jury Finds Pittsburgh-Area Nursing Homes Guilty of Healthcare OffensesRead the Press Release
PITTSBURGH, PA -After deliberating for two days, a federal jury found companies operating two Pittsburgh-area nursing homes, Comprehensive Healthcare Management Services, LLC, d/b/a Brighton Rehabilitation and Wellness Center (Brighton) and Mt. Lebanon Operations, LLC, d/b/a Mount Lebanon Rehabilitation and Wellness Center (Mt. Lebanon), guilty of making false statements in connection with the payment of health care benefits and for the purpose of obstructing and impeding the investigation and proper administration of a matter within the jurisdiction of Centers for Medicare and Medicaid Services (CMS), United States Attorney Eric G. Olshan announced today. Brighton was convicted of six counts and Mt. Lebanon was convicted of four counts. Brighton and Mt. Lebanon were tried before United States District Judge Robert J. Colville in Pittsburgh, Pennsylvania. Additional individual defendants were acquitted.
Evidence presented at trial established that Brighton and Mt. Lebanon falsified staffing information provided to the Pennsylvania Department of Health and CMS to show that the facilities were in compliance with the conditions of participation in Medicare and Medicaid. The false certifications were provided to evade penalties that the government regulators could have imposed for failing to meet those conditions, including the condition that the facilities provide sufficient staffing to meet the needs of the residents.
Judge Colville scheduled sentencing for a date to be set in May, 2024. The law provides for a maximum total sentence of five years’ probation, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendants.
This case was prosecuted by Assistant United States Attorneys Stephen R. Kaufman, Nicole A. Stockey, Karen Gal-Or, Jacqueline C. Brown, and Robert S. Cessar, along with Special Assistant United States Attorney Aaron McKendry.
The Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania Office of Attorney General conducted the investigation that led to the convictions of the nursing facilities in this case.
Federal Grand Jury Indicts Four in Alleged Multi-State Burglary Ring Targeting Primarily Individuals of Asian DescentRead the Press Release
PROVIDENCE, RI – A federal grand jury has indicted four individuals for their alleged roles in a sweeping, multi-state burglary ring that primarily targeted residents of Asian descent, announced United States Attorney Zachary A. Cunha.
The indictment alleges that members of the conspiracy: Mohammed Islam, 29, of Stamford, CT; Jorge Andres Cardenas Murillo, 30, of College Point, NY; Yoel Andres Barrera Garrido, 20, of Woodside, NY; and Tania Valentina Espitia Cuellar, 24, address presently unknown, collectively identified and surveilled individuals, typically of Asian descent at the victim’s residences and businesses, which included Asian restaurants and nail salons, and then executed well-planned burglaries at homes in Rhode Island, Massachusetts, New Hampshire, New Jersey, Pennsylvania, Delaware, Wisconsin, and Florida, typically targeting large sums of money, jewelry, credit and debit cards, and other valuable items.
It is alleged that in one such burglary, members of the conspiracy burglarized a home in Jacksonville, FL, and stole approximately $500,000 worth of property and cash, as well as numerous debit and credit cards.
As alleged in charging documents, members of the conspiracy used sophisticated means to carry out their scheme. In addition to surveilling individuals, the conspirators are alleged to have used drones and GPS trackers placed on vehicles to monitor victim’s movement and identify times when they were away from their residences. They are also alleged to have used drones and lookouts to monitor law enforcement activity, and to have had a getaway car and driver at the ready while other conspirators broke into and burglarized the residences.
Mohammed Islam, Jorge Andres Cardenas Murillo, Yoel Andres Barrera Garrido, and Tania Valentina Espitia Cuellar are each charged by way of indictment with conspiracy to commit interstate transportation of stolen property. Islam, Cardenas Murillo, and Barrera Garrido are also charged with two counts of attempt to commit interstate transportation of stolen property, and Islam is charged with a fourth count of interstate transportation of property taken by fraud. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Ly T. Chin and Julianne L. Klein.
The matter was investigated by Homeland Security Investigations, with the assistance of the Warwick and Smithfield, RI Police Departments; Shrewsbury and Framingham, MA Police Departments; Gorham, NH Police Department; Stamford, Wallingford, and Westport, CT Police Departments; West Allis, WI Police Department; New Castle County, DE Police Department; Manalapan, NJ Police Department; New York City Police Department; Jacksonville and Flagler County Police Departments; Massachusetts State Police; Pennsylvania State Police; and the United States Postal Inspection Service.
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indictment.pdfFarrell, Pa Resident Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, PA – Kenneth Miller pled guilty to conspiring to distribute cocaine, United States Attorney Eric G. Olshan announced today.
Miller, age 62, of Farrell, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Miller pled guilty to conspiring to distribute a quantity of cocaine between June 2020 and June 2021. Judge Bissoon scheduled sentencing to occur on April 10, 2024, at 10:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller are prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Executives Charged with Bid Rigging, Territorial Allocation and Defrauding the U.S. Forest Service After a Wiretap InvestigationRead the Press Release
BOISE – Following a court-authorized wiretap investigation, a federal grand jury in Boise returned an indictment last week charging two executives, Ike Tomlinson, 60, of Terreton, and Kris Bird, 61, of Salmon, of competing companies with conspiring to rig bids and allocate territories in violation of the Sherman Act, conspiring to commit wire fraud, and committing wire fraud, U.S. Attorney Josh Hurwit announced today.
According to the seven-count felony indictment, Tomlinson and Bird’s conspiracy affected contracts for forest-firefighting services. As alleged, the U.S. Forest Service runs a competitive bidding process for these contracts to ensure taxpayer dollars are spent efficiently. The indictment alleges that from at least in or about February 2014, up to and including in or about March, Tomlinson and Bird coordinated their bids to “squeeze” and “drown” competitors; accepted payment for fuel trucks at collusive and noncompetitive daily rates; and tried to conceal their actions.
This investigation was conducted by the department’s Procurement Collusion Strike Force (PCSF), which included FBI agents, with judicial authorization, intercepting phone calls between Tomlinson and Bird. As alleged, Tomlinson and Bird spoke with one another shortly before the deadline to submit bids on fuel truck contracts. During calls quoted in the indictment, they allegedly agreed to rig bids, allocate territories, and target competitors.
A violation of the Sherman Act carries a maximum penalty of 10 years in federal prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Idaho, and FBI Salt Lake City Field Office, Boise Resident Agency are investigating the case.
Trial Attorney Matthew Chou and Assistant Chief Christopher J. Carlberg of the Antitrust Division’s San Francisco Office and Assistant U.S. Attorney Sean Mazorol for the District of Idaho are prosecuting the case.
In November 2019, the Justice Department created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation, and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force. Anyone with information in connection with this investigation can contact the PCSF at the link listed above.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 30 Months in Prison for Robbing One Man and Attempting to Rob Another in Northwest WashingtonRead the Press Release
WASHINGTON – Kevin Diaz, 19, of Washington, D.C., has been sentenced to 30 months in prison for the April 2023 robbery and assault of two men behind a Northwest Washington restaurant, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Diaz was found guilty at trial on October 5, 2023, in the Superior Court of the District of Columbia, of robbery, assault with intent to commit robbery, and two counts of felony threats. According to the government’s evidence at trial, on April 25, 2023, at approximately 8:00 a.m., a construction worker and a roofer arrived near the 1600 block of Lamont Street NW to begin remodeling and repair work on a local business. As the construction worker waited in the alley near Lamont Street, Diaz approached him, brandishing an ice pick. Diaz claimed to be a member of the 18th Street gang, demanded money, and threatened to kill the worker if he did not comply. That worker did not give Diaz any money, so Diaz turned his attention to the roofer, who had arrived in his truck minutes after the construction worker. Diaz again brandished the ice pick, demanded money, claimed membership in a gang, and threatened to kill the roofer. The roofer, who was scared for his life, went to his truck, pulled out $20, and gave it to Diaz; Diaz took the money and left.
The workers called police. MPD officers investigated, uncovered surveillance footage that showed Diaz wearing the distinctive haircut and outfit as described by the two victims and witness, and located Diaz within the hour. Diaz was identified and taken into custody, and has remained held since these offenses.
At the December 15, 2023, sentencing hearing, consistent with the Voluntary Sentencing Guidelines, the government asked that the Court impose a total sentence of 96 months’ incarceration — 48 months’ incarceration for robbery and for assault with intent to commit robbery, to be run consecutively to each other, given that each crime of violence was committed against a different victim. The government also sought 24 months’ incarceration for each count of felony threats, to run concurrently with those sentences. The Honorable Michael Ryan sentenced the defendant to a total of 30 months’ incarceration — 30 months for robbery, 18 months for assault with intent to commit robbery, and 14 months for each count of felony threats, all to run concurrently, despite the Voluntary Sentencing Guidelines requirement that the Court impose consecutive sentences when there are multiple victims. The Court also ordered Diaz to serve three years’ supervised release following his sentence.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Samuel White and Kraig Ahalt, Lead Paralegal Specialists Reather Prather and Tameka Garcia, and Victim/Witness Advocate Paola Molina.
Finally, they commended the work of Assistant U.S. Attorneys Jacqueline Yarbro and William Lawrence, who prosecuted the case.
District Court Enjoins New York and Delaware Companies from Manufacturing and Distributing Adulterated and Misbranded Dietary SupplementsRead the Press Release
A federal court on Dec. 13 enjoined two New York companies, a Delaware company and the companies’ owner from distributing and manufacturing adulterated and misbranded dietary supplements in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a civil complaint filed on Dec. 11 in the U.S. District Court for the Eastern District of New York at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Total Body Nutrition LLC, TBN Labs LLC and Loud Muscle Science LLC (collectively TBN companies) and the companies’ owner, Mohammed Islam, violated the FDCA at the companies’ facility in Hauppauge, New York, and their previous facility in Edgewood, New York, by manufacturing and distributing adulterated and misbranded dietary supplements. The complaint alleged that Islam and the TBN companies violated the FDCA by manufacturing dietary supplements without establishing product specifications for the finished batches and without testing or examining the finished batches to verify that they met product specifications, and by using dietary ingredients in their dietary supplements without first testing or examining the ingredients to verify their identity. The complaint also alleged that the FDA inspected the TBN companies’ current and previous facilities four times, in 2017, 2018, 2021 and 2023, and found violations of the FDCA at each inspection. According to the complaint, FDA also issued Islam and the TBN companies warning letters in 2016, 2017 and 2019.
“Dietary supplement manufacturers and distributors have an important responsibility to ensure product quality and safety,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA and take action against manufacturers and distributors who fail to abide by laws designed to protect public health.”
“Consumers trust that dietary supplements they purchase are unadulterated,” said U.S. Attorney Breon Peace for the Eastern District of New York. “My office is working diligently with our partners at the Justice Department’s Consumer Protection Branch and the FDA to ensure that these products are what they purport to be and safe. When they are not, we will take all appropriate action to protect consumers.”
“It is imperative that dietary supplement manufacturers comply with the FDA’s regulatory requirements to help ensure product safety and protect consumers,” said Acting Associate Commissioner Michael C. Rogers, MS, of FDA’s Office of Regulatory Affairs. “When evidence of non-compliance is identified, the agency holds dietary supplement manufacturers responsible. The FDA is dedicated to exercising its full authority under the law to take action against adulterated dietary supplements, as part of our ongoing commitment to protect the health of U.S. consumers.”
Islam and the TBN companies agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court permanently enjoins Islam and the TBN companies from violating the FDCA, and requires, among other things, that Islam and the TBN companies comply with the dietary supplement current good manufacturing practice regulations and the dietary supplement labeling provisions of the FDCA and its implementing regulations. Further, Islam and the TBN companies must destroy all of their adulterated dietary supplements.
Trial Attorney Kimberly R. Stephens of the Civil Division’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorney Michael Blume for the Eastern District of New York and Associate Chief Counsel Roselle Oberstein of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Consent DecreeCounterfeit Prescription Drug Distributor Sentenced to Federal PrisonRead the Press Release
Memphis, TN – A federal judge has sentenced a Texas man to more than 17 years in prison for his involvement in a counterfeit prescription drug distribution operation. Kevin Olando Ombisi, 34, of Katy, Texas, has been sentenced to 210 months in federal prison for conspiring to distribute methamphetamine and related offenses. U.S. District Court Judge Mark S. Norris also ordered Ombisi to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
United States Attorney Kevin G. Ritz of the Western District of Tennessee made the announcement today along with Acting Assistant United States Attorney Nicole M. Argentieri of the Department of Justice’s Criminal Division; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA) Louisville Field Division; Special Agent in Charge Charles L. Grinstead of the Food and Drug Administration Office of Criminal Investigation (FDA-OCI) Kansas City Field Office; Special Agent in Charge Francisco B. Burrola of Homeland Security Investigations (HSI) El Paso Division; and Inspector in Charge Scott Fix of the United States Postal Inspection Service (USPIS) Houston Division.
According to information presented in court, Ombisi used a marketplace on the Darknet and an encrypted messaging service called Wickr to sell pills made to resemble Adderall in exchange for bitcoin cryptocurrency. The pills that Ombisi distributed were not Adderall; instead, they contained methamphetamine. He mailed the methamphetamine pills through the U.S. Postal Service.
In July 2023, Ombisi pled guilty to charges filed in a ten-count superseding indictment, including one count of conspiracy to unlawfully distribute controlled substances, three counts of unlawful distribution, one count of attempted distribution, one count of selling counterfeit drugs, one count of conspiracy to commit money laundering, and three counts of mail fraud.
This case was investigated by the federal partners with assistance from police departments in Katy, Texas; Houston, Texas; and Missouri City, Texas.
United States Attorney Kevin Ritz thanked Assistant Chief Jillian Willis of the Department of Justice Criminal Division’s Fraud Section and Assistant U.S. Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case.
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.
* * *
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.
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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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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)
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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