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2 October 2023
Two German Nationals Charged with Enticement and Sexual Abuse of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging THOMAS ALEXANDER BRANDENSTEIN and JOHN-PHILIPP PIEHL-BRANDENSTEIN with enticing a 15-year-old victim (the “Minor Victim”) to engage in sexual activity and then traveling across state lines in order to engage in illicit sexual activity with the Minor Victim. BRANDENSTEIN was arrested on September 29, 2023, in Queens, New York, and was presented today in federal court before U.S. Magistrate Judge Stewart D. Aaron. PIEHL-BRANDENSTEIN remains at large.
U.S. Attorney Damian Williams said: “As alleged, Thomas Alexander Brandenstein and John-Philipp Piehl-Brandenstein preyed upon a 15-year-old victim for sex and then traveled from Germany to the United States, where they met with the victim and engaged in illegal sexual acts at a Manhattan hotel. My Office is committed to keeping our borders safe from sexual predators, and thanks to the hard work of our law enforcement partners and the career prosecutors of this Office, Brandenstein and Piehl-Brandenstein have now been charged for their egregious conduct.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The defendants are alleged to have traveled thousands of miles to commit unimaginable crimes against an underage victim. These charges serve as notice to anyone contemplating such heinous acts that we will take every measure necessary to safeguard the children of New York. HSI New York is proud of the collaboration with our federal partners to charge these predators before they could inflict more trauma on young New Yorkers.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From March 2023 through July 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN, who are German nationals, enticed the Minor Victim, who was 15 years old at the time, to engage in illegal sexual activity. While in Germany, BRANDENSTEIN used internet-enabled messaging applications to send sexually explicit communications to the Minor Victim, including an image of a naked male in which the male’s penis was exposed. BRANDENSTEIN also sent sexually explicit videos to the Minor Victim, which depicted BRANDENSTEIN lying in bed, blowing kisses, and exposing his penis and masturbating, among other things. BRANDENSTEIN further communicated with the Minor Victim over these messaging applications about his plans to travel to New York with PIEHL-BRANDENSTEIN, sending the Minor Victim a video message depicting the two men on an airplane and writing, “next stop, New York.”
In June 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN traveled from Germany to Florida and then New York, where they met with the Minor Victim to engage in illegal sexual activity at a Manhattan hotel (the “Hotel”). Between July 5, 2023, and July 13, 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN reserved a room at the Hotel (the “Room”). BRANDENSTEIN brought the Minor Victim to the Room and BRANDENSTEIN and PIEHL-BRANDENSTEIN engaged in illegal sexual activity with the Minor Victim. Some of that illegal sexual activity was video recorded. On July 13, 2023, BRANDENSTEIN and PIEHL-BRANDENSTEIN departed from New York and returned to Germany.
There may be more victims of this alleged conduct. If you have information to report about sexual abuse or sexual assault perpetrated by THOMAS ALEXANDER BRANDENSTEIN or JOHN-PHILIPP PIEHL-BRANDENSTEIN, contact HSI through its toll-free Tip Line at 1-866-DHS-2423 or [email protected] and reference this case. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing-impaired users can call TTY 802-872-6196.
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BRANDENSTEIN, 57, of Berlin, Germany, and PIEHL-BRANDENSTEIN, 38, of Berlin, Germany, are charged with one count of enticing a minor victim to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, and one count of travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of HSI and the New York City Police Department. He added that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorney Mitzi S. Steiner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Essex County Men Charged with Unlicensed Firearms TraffickingRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were charged today with unlicensed dealing in firearms and trafficking firearms in interstate commerce; one of the defendants was also charged with conspiracy to sell fentanyl, U.S. Attorney Philip R. Sellinger announced.
Carlo M. De Leon De Jesus, 26, and Victor Gonzalez, 36, both of Newark, are each charged by complaint with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, and one count of firearms trafficking. De Jesus is also charged with one count of conspiracy to distribute fentanyl. They appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.
According to documents filed in these cases and statements made in court:
According to documents filed in this case and statements made in court:
From July 2023 to September 2023, De Jesus sold four firearms, including two rifles and a semi-automatic handgun, as well as a substance that tested positive for fentanyl. Gonzalez sold a firearm with no serial number in September 2023.
The counts of dealing firearms without a license and transferring firearms to an out-of-state resident are punishable by a maximum of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of count of firearms trafficking is punishable by up to 15 years in prison and a fine of up to a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of conspiracy to distribute fentanyl is punishable by a maximum of 20 years in prison and a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration in Newark, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to charges.
The government is represented by Assistant U.S. Attorney Barry O’Connell of the Criminal Division’s Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
gonzalez.complaint.pdf dejesus.complaint.pdfTwo Anne Arundel County Men, Including Department of Defense Deputy Chief, Charged with Facilitating Dog Fighting RingRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Frederick Douglass Moorefield, Jr., age 62, of Arnold, Maryland, and Mario Damon Flythe, age 49, of Glen Burnie, Maryland with promoting and furthering animal fighting venture. The criminal complaint was filed on September 21, 2023, and was unsealed at the defendants’ initial appearances on September 28, 2023. At their initial appearance, U.S. Magistrate Judge J. Mark Coulson ordered that the defendants be released pending trial under the supervision of U.S. Pretrial Services.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne A. Jacobs of the Federal Bureau of Investigation, Washington Field Office, Criminal and Cyber Division; Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture Office of Inspector General; Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office; U.S. Marshal for Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal E. Awad.
According to the affidavit filed in support of the complaint, Moorefield, a Deputy Chief Information Officer for Command, Control, and Communications, for Office of the Secretary of Defense, and Flythe used an encrypted messaging application to communicate with individuals throughout the United States to discuss dogfighting. Moorefield used the name “Geehad Kennels” and Flythe used the name “Razor Sharp Kennels” to identify their respective dogfighting operations.
For example, as detailed in the affidavit, Moorefield, Flythe and their associates used the encrypted messaging application to discuss how to train dogs for illegal dogfighting, exchanged videos about dogfighting, and arranged and coordinated dogfights. Moorefield and Flythe also discussed betting on dogfighting, discussed dogs that died as a result of dogfighting, and circulated media reports about dogfighters who had been caught by law enforcement. As further alleged in the affidavit, Moorefield and others also discussed how to conceal their conduct from law enforcement.
On September 6, 2023, law enforcement officers executed search warrants at Moorefield and Flythe’s residences in Maryland. Following the execution of these warrants, twelve dogs were recovered and seized by the federal government. Law enforcement also recovered veterinary steroids, training schedules, a carpet that appeared to be stained with blood, and a weighted dog vest with a patch reading “Geehad Kennels.” In addition, law enforcement officers seized a device consisting of an electrical plug and jumper cables, which the affidavit alleges is consistent with devices used to execute dogs that lose dogfights.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, the defendants each face a maximum sentence of five years in federal prison for possessing, training, or transporting animals for participation in an animal fighting venture. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the FBI, the United States Department of Agriculture – Office of the Inspector General, the Defense Criminal Investigative Service, the U.S. Marshals Service, the Anne Arundel County Police Department, Anne Arundel County Animal Control, and thanked the United States Attorney’s Office for the Eastern District of Virginia for their valuable assistance in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Alexander Levin and Darryl Tarver, who are prosecuting the 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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Texas Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – RAFAEL MOLINA, age 47, a resident of Edinburg, Texas was sentenced on September 20, 2023 by Chief United States District Judge Nannette Jolivette Brown to one hundred fifty-four (154) months imprisonment, five years of supervised release, and $200.00 in mandatory special assessment fees after pleading guilty to a superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(A), and 846, and interstate transportation in aid of racketeering, in violation of Title 18, United States Code, Sections 1952(a)(3) and 1953(a)(3)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, in July 2018, Special Agents with the Drug Enforcement Administration (DEA) identified MOLINA as a Mexican-based drug trafficker who supplied kilogram quantities of cocaine hydrochloride to customers in the Lafourche Parish area. On February 9, 2018, agents learned that MOLINA was bound for Thibodaux, Louisiana to deliver two kilograms of cocaine hydrochloride to a customer the following day. Agents and officers established surveillance in Thibodaux and observed Molina driving a white pickup truck, as well as two individuals, identified as Gustavo Balderas and Michael Garza, in a black Chrysler 300, at a motel. Balderas and Garza entered the truck driven by Molina, and they drove away from the motel. Officers then stopped the truck, searched both vehicles, and located an ice chest containing two kilograms of cocaine hydrochloride, in the Chrysler 300.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Tampa Man Charged with Possession and Distribution of Methamphetamine, Fentanyl, and HeroinRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Shane Valmont (43, Tampa) with possession and distribution of methamphetamine, fentanyl, and heroin. If convicted, Valmont faces a minimum mandatory penalty of 10 years, up to life, in federal prison on each count. The indictment also notifies Valmont that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.
According to the indictment, Valmont was involved in two deliveries of controlled substances in Pinellas County. On December 27, 2022, Valmont distributed 50 grams or more of methamphetamine. On January 17, 2023, Valmont distributed 40 grams or more of fentanyl and heroin.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Clearwater Police Department. It will be prosecuted by Assistant United States Attorney Maria Guzman.
Tampa Armed Career Criminal Sentenced to 15 Years’ Imprisonment for Possessing FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell today sentenced Deandre Riviera Lopez (33, Tampa) to 15 years in federal prison for possessing a firearm as a convicted felon. Lopez had pleaded guilty on June 29, 2023.
According to court documents, on May 15, 2022, officers from the Tampa Police Department (TPD) arrested Lopez on an active felony warrant from the Thirteenth Judicial Circuit in Hillsborough County. During Lopez’s arrest, the officers observed Lopez blade his body and appear to reach for an item near his waist. A search of Lopez revealed a Century Arms “Canik” TP9 Elite Combat semi-automatic pistol tucked near Lopez’s right waist. The firearm was loaded with 14 rounds of ammunition. Lopez later admitted that he always carried a firearm for personal protection and that he had owned the pistol for several months.
At the time of his arrest, Lopez had multiple prior felony convictions and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by Tampa Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha J. Newman.
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.
Stanford University Agrees to Pay $1.9 Million to Resolve Allegations that it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Baltimore, Maryland – Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that twelve Stanford faculty members were receiving from foreign sources.
The settlement was announced by United States Attorney for the District of Maryland Erek L. Barron and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: The Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors. The United States alleged that on sixteen grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that eleven Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said Erek Barron, United States Attorney for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland, and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent-in-Charge Michael Curran for the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. Government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the NCIS National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham at the NASA Office of Inspector General (OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards for the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the Federal grant process."
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 Office for the District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Assistant U.S. Attorney Thomas F. Corcoran and by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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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Stanford University Agrees to Pay $1.9 Million to Resolve Allegations That it Failed to Disclose Foreign Research Support in Federal Grant ProposalsRead the Press Release
Stanford University, located in Palo Alto, California, has agreed to pay $1.9 million to resolve allegations that it violated the False Claims Act by submitting proposals for federal research grants that failed to disclose current and pending support that 12 Stanford faculty members were receiving from foreign sources.
The settlement relates to research grants that Stanford received between 2015 and 2020 from five federal agencies: the Departments of the Army, Navy and Air Force, the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF). All of these agencies require grant applicants to disclose all current and pending support received by the institution and the principal investigators (PIs) and co-PIs on the grant proposals. Current and pending support is defined as all resources from whatever source — including foreign government sources — that are made available to researchers in support of and/or related to their research endeavors.
The United States alleged that on 16 grant proposals submitted to the Army, Navy, NASA and NSF, Stanford knowingly failed to disclose current and pending foreign funding that 11 Stanford PIs and co-PIs had received or expected to receive in direct support of their research. The United States further alleged that Stanford knowingly failed to disclose to the Army, Air Force and NSF that a Stanford professor received research funding in connection with his employment at Fudan University, a foreign public university and from a foreign government’s national science foundation. In connection with the settlement, Stanford has agreed to work with the NSF Office of the Chief of Research Security Strategy and Policy on best practices in the areas identified by the United States.
“Universities and their researchers must disclose all sources of current and pending support, including any foreign support, in federal research grant applications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to ensure that grant applicants submit complete and truthful disclosures, so the government has full transparency into the applicant’s funding sources.”
“Complete and accurate disclosures by principal investigators and universities of current and pending support are essential to federal agencies that make decisions on awarding federal grants,” said U.S. Attorney Erek Barron for the District of Maryland. “Those individuals and universities that knowingly fail to do so skew the grant awarding process in their favor and will be held accountable.”
“The National Science Foundation awards billions of dollars in grants each year to promote promising scientific research. NSF and other federal funding agencies rely on grant recipients to accurately track the commitments of their personnel and fully disclose all funding sources. Stanford failed to disclose foreign funding in grant proposals submitted to multiple federal agencies. Full and accurate disclosures are essential to protect the interests of American taxpayers and ensure that federal funds are properly awarded to deserving institutions,” said NSF Inspector General Allison C. Lerner. “We thank the Department of Justice, U.S. Attorney’s Office for the District of Maryland and our investigative partners for their work in protecting the integrity of federal research.”
“This settlement is a prime example of our agents and partner law enforcement agencies pursuing those who do not disclose foreign government ties when entering into contracts with the U.S. Army,” said Acting Special Agent in Charge Michael Curran of the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office. “It is imperative that when someone partners with the U.S. Army, they comply with all their obligations.”
“The failure of U.S. universities to disclose current or pending awards with foreign entities on research grant proposals submitted to the U.S. government as required by law has the potential to threaten government interests,” said Assistant Director Thomas Cannizzo of the Naval Criminal Investigative Service (NCIS) National Security Directorate. “Through the efforts of the National Science Foundation with support from NCIS and additional law enforcement partners, sensitive research funded by the U.S. military was protected from disclosure to foreign interests.”
“Protecting research and development programs funded by taxpayer dollars is a top priority for us,” said Acting Assistant Inspector General for Investigations Michael Graham of the NASA Office of Inspector General (NASA-OIG). “The settlement agreement with Stanford University is the result of a joint effort to guard against fraud, waste and abuse in government grants. This case demonstrates the commitment of NASA-OIG and our partners to work with the U.S. Attorney’s Office to safeguard public funds.”
“This settlement demonstrates the Office of Procurement Fraud’s determination and commitment to identify and hold accountable those who conceal foreign affiliations to obtain research funding,” said Special Agent in Charge William W. Richards of the Air Force Office of Special Investigations (AFOSI). “AFOSI, along with our law enforcement and prosecutorial partners, will continue to work tirelessly to protect the integrity of the federal grant process."
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 U.S. Attorney’s Office for the District of Maryland, with assistance from Army CID, NCIS, AFOSI, NSF OIG, NASA OIG and the Department of Education.
The matter was investigated by Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Thomas F. Corcoran for the District of Maryland.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementSouth Carolina Physician and Nephrology Practice Agree to Pay over $585,000 to Settle Laboratory Kickback AllegationsRead the Press Release
WASHINGTON – Moustafa Moustafa, M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Dr. Moustafa and his practice have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged kickback schemes.
“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.
- Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Dr. Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Dr. Moustafa’s laboratory referrals.
- Clinical Staff Kickbacks. From August 2020 to December 2022, Dr. Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Dr. Moustafa’s practice unrelated to that laboratory, in return for Dr. Moustafa’s referrals for laboratory testing.
- Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Dr. Moustafa allegedly received from marketing company Ralston Health Group Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Dr. Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Dr. Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Dr. Moustafa ordering laboratory testing from those laboratories.
“Rooting out healthcare fraud is a priority in the District of South Carolina,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
“Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”
“Healthcare providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” said Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions.”
“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Districts of South Carolina and New Jersey, with assistance from the Federal Bureau of Investigation, HHS-OIG and DCIS. The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Beth C. Warren for the District of South Carolina and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey.
The government’s pursuit 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 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Sanger Man Sentenced to 14 Years in Prison for Trafficking Fentanyl and Fentanyl Analogues in Operation Killer HighRead the Press Release
FRESNO, Calif. — Abel Lozano, 29, of Sanger, was sentenced today to 14 years in prison for possession with intent to distribute 400 grams or more of a mixture or substance containing detectible amount of fentanyl, 100 grams or more of a mixture or substance containing a detectable amount of fentanyl analogue, and 50 grams or more of actual methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, after a series of overdoses in the Fresno area caused by counterfeit oxycodone M30 tablets containing fentanyl, or M30s, an investigation began to find the drug dealers suppling the toxic pills. The investigation, named “Operation Killer High,” uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”
According to court documents, in February 2022, investigators learned that Urias planned to deliver several thousand fentanyl pills to Lozano. Two days later, federal officers searched Lozano’s home and found about a kilogram of fentanyl analogue, over a kilogram of fentanyl mixture, about a kilogram of methamphetamine, over 3 kilograms of marijuana, and a small amount of cocaine. Lozano was interviewed and admitted that the drugs were his and that he was regularly buying and reselling them in large quantities, including to customers in other states.
Lozano and 17 others were indicted by a federal grand jury in 2022. Lozano is the first defendant to be sentenced. Marvin Carreno, 24, of Fresno, pleaded guilty today to possession with intent to distribute over 40 grams of fentanyl and is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 12, 2024.
Twelve co-defendants have previously pleaded guilty to fentanyl or cocaine distribution charges and are now awaiting sentencing.
- Henry Cox, 23, of Sanger;
- Justin Riddle, of Las Cruces, New Mexico,
- Erica Ramirez, of Fresno;
- Alejandro Guzman, of Fresno;
- Agustin Hernandez, of Fresno;
- Christian Harris-Blanchette, of Fresno;
- Oscar Jaramillo-Cortez, of Fresno;
- Jacob Valles, of Fresno;
- Cody Fyfe, of Fresno;
- Juan Valencia Jr., of Fresno;
- Amadeo Sarabia Jr., of Fresno; and
- Alex Garcia, of Fresno.
Charges are pending against the remaining four defendants: Horacio Torrecillas Urias Jr., Alma Garza, Brayan Cruz, and Victor Yair Torrecillas-Urias. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), an agency composed of officers from Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Rhode Island Man Charged with Violating the Migratory Bird Treaty ActRead the Press Release
PROVIDENCE, RI – A Rhode Island man has been charged by way of a federal criminal information with violating the Migratory Bird Treaty Act, having allegedly shot at, injured, and /or killed Red-Tailed and Cooper hawks in and around his property in an effort to protect squirrels, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents that, between October 1, 2018, and April 18, 2021, Robert J. Ferreira, 64, of Portsmouth, repeatedly used a pump-action pellet air gun to shoot at hawks in his back yard. Ferreira is alleged to have told a U.S. Fish and Wildlife Service agent that he estimates that he shot at approximately 50-80 hawks, which he believed were a threat to squirrels that visited squirrel feeders on his property.
According to court documents, on various dates neighbors reported hearing popping sounds from the area of Ferreira’s property that were consistent with the firing of a weapon, and found approximately eight injured and deceased hawks on or near Ferreira’s property.
The Migratory Bird Treaty Act (MBTA) protects certain migratory birds, including the Red-Tailed hawk and Cooper hawk, and forbids hunting, capturing, or killing these birds unless authorized by permit.
Ferreira is charged by way of a federal criminal information with four counts of hunting, taking, killing, or attempting to kill migratory birds, a violation of the Migratory Bird Treaty Act. He is scheduled to appear for his arraignment on the information before a magistrate judge on October 12, 2023.
Hunting, taking, or killing, or attempting to kill migratory birds is a misdemeanor, punishable by up to 6 months of imprisonment and fine of up to $15,000. A federal criminal information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement.
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Rapid City Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on September 28, 2023.
Eugene Perez, 44, was sentenced to 11 years and five 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.
Perez was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person by a federal grand jury in January of 2022. He pleaded guilty on June 28, 2023.
The charge stems from Perez conspiring with others to distribute multiple pounds of methamphetamine in and around Rapid City between January 2018 and December 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Unified Narcotics Enforcement Team, Pennington County Sheriff’s Office, South Dakota Department of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Perez was immediately remanded to the custody of the U.S. Marshals Service.
Project Safe Neighborhoods Investigation Nets More Than Five Kilos of Fentanyl Pills and Powder, Along with Commercial Pill PressesRead the Press Release
PROVIDENCE – Two Rhode Island men were arrested for drug trafficking and more than seven kilos of fentanyl pills and powder, and two commercial pill presses have been seized as the result of an ongoing Project Safe Neighborhoods Investigation into the trafficking of fentanyl pills, announced United States Attorney Zachary A. Cunha.
Jorge Pimentel, 33, of Cranston, and Matthew Jones, 29, of North Smithfield, have been charged by way of federal criminal complaints with conspiracy to distribute and conspiracy to possess with intent to distribute 400 grams or more of fentanyl; distribution of 400 grams or more of fentanyl; and possession with intent to distribute 400 grams or more of fentanyl. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
It is alleged in charging documents that, as a result of an ongoing FBI Rhode Island Safe Streets Task Force investigation, on multiple occasions Pimentel arranged for the sale and delivery of thousands of fentanyl pills, some of which were delivered by Jones. In each instance, the pills were quickly seized by members of the task force.
In addition to the seizure of tens of thousands of fentanyl pills during the investigation, on September 28,2023, members of the Safe Street Task Force executed a court-authorized search of a storage unit in Pawtucket and seized approximately 5.7 kilos of fentanyl; 50 kilos of binding agents used in the production of fentanyl pills; two commercial pill presses; and a kilo press. Altogether, over seventy-five thousand fentanyl pills and over two kilograms of powder fentanyl have been seized in connection with this investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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.
This case is being prosecuted by Assistant United States Attorneys Stacey A. Erickson and Milind M. Shah.
The matter is being investigated by the FBI Rhode Island Safe Streets Task Force consisting of agents and officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Previously Deported Honduran Man Sentenced to 19 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Heriberto Vallecillo-Tejeda, age 41, was sentenced on September 29, 2023, by U.S. District Court Judge Malachy Mannion, to 19 months’ imprisonment on the charge of illegal re-entry into the United States by a previously deported alien. Vallecillo-Tejeda was previously convicted of the offense after a two-day jury trial before Judge Mannion in April 2023.
According to United States Attorney Gerard M. Karam, Vallecillo-Tejeda was previously deported from the United States to Honduras in November 2008 and again in July 2009. He re-entered the United States again sometime after July 2009 without first obtaining legal permission to do so. Vallecillo-Tejeda was encountered in Schuylkill County, Pennsylvania, on September 5, 2020, when he was arrested by the Shenandoah Police Department on charges which eventually led to convictions for simple assault and weapons possession.
The matter was investigated by U.S. Immigration and Customs (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case.
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Pine Ridge Man Found Guilty at Jury TrialRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted JT Myore, age 36, of Pine Ridge, South Dakota, of Robbery, Carjacking, and Brandishing a Firearm During a Crime of Violence following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on September 27, 2023.
The charges carry a mandatory minimum of seven years in custody up to life, and/or a $250,000 fine, five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each count.
Myore was indicted by a federal grand jury in July of 2021. He was charged in connection with two separate incidents, and the first one occurred in August of 2019 and the second in May of 2021.
In August of 2019, Myore and a co-defendant brandished firearms in order to carjack a Ford Freestyle from another male in Pine Ridge. In May of 2021, Myore and his co-defendants forcibly assaulted a male in Pine Ridge in order to steal his Toyota Celica. The male sustained a broken arm and cuts and contusions to his head and face.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Ottumwa Man and Woman Sentenced for Defrauding the Internal Revenue Service, Iowa Workforce Development, and Numerous CitizensRead the Press Release
Des Moines, IA – On September 29, 2023, Thein Maung, 47, of Ottumwa, was sentenced to twelve years in prison after pleading guilty to forty-nine fraud- and tax-related charges. Phyo Mi, 21, of Ottumwa, was sentenced to nine years in prison after a jury convicted her of sixteen fraud-related charges. In all, Maung and Mi’s fraud resulted in nearly $4 million in losses to the Internal Revenue Service, Iowa Workforce Development, and numerous Iowa citizens.
According to public court documents and evidence presented at trial, for several years, Maung and Mi ran a fraudulent tax-preparation business out of their family’s Ottumwa home. In exchange for a cash fee, Maung and Mi would prepare and file their customers’ tax returns. Maung and Mi primarily catered to immigrants and refugees who worked at meat-packing facilities in Iowa and who had little or no ability to read, write, or speak English.
Without their customers’ knowledge or approval, Maung and Mi included fraudulent items on their customers’ federal tax returns, like false claims for residential energy credits, business-expense deductions, or moving-expense deductions for members of the United States Armed Forces. The effect of Maung and Mi including fraudulent items on the tax documents was to increase the refunds their clients received and increase Maung and Mi’s customer base. In all, from 2018 to 2022, Maung and Mi caused over 1600 tax returns to be filed from their residence. Those returns claimed over $3.5 million in fraudulent residential energy credits.
It is estimated that from 2018 to 2022, Maung and Mi received over $200,000 in cash fees from their customers. In addition, on their customers’ returns, Maung and Mi sometimes directed that portions of the fraudulent refunds be sent to financial institution accounts accessible to Maung and Mi. As a result, Maung and Mi obtained nearly $50,000 in fraudulent tax refunds.
Maung and Mi also offered to help customers with applying for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to. Maung and Mi obtained nearly $70,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to eligible claimants.
At sentencing, Chief United States District Court Judge Stephanie M. Rose described Maung and Mi’s fraud as being elaborate and extensive, involving layers of subterfuge, and victimizing hundreds of vulnerable immigrants and refugees with little education and limited English fluency.
Following their prison terms, Maung and Mi will be on supervised release for three years. There is no parole in the federal system.
“This sentence should send a strong message to any return preparers who are looking to cheat innocent taxpayers and the U.S. government that a prison cell awaits them,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation (CI), St. Louis Field Office. “Maung and Mi preyed on people who were vulnerable. CI special agents do not take this kind of fraud lightly. Our law enforcement partners worked diligently to help us bring these two to justice.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by Internal Revenue Service Criminal Investigation and the Ottumwa Police Department. Assistant U.S. Attorneys Kyle Essley and Laura Roan prosecuted the case.
Ohio Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Nathaniel Jarvis Kennard, 40, of South Point, Ohio, was sentenced today to six years and four months in prison, to be followed by three years of supervised release, for distribution of a quantity of fentanyl.
According to court documents and statements made in court, on September 12, 2022, Kennard sold approximately 20 grams of fentanyl for $1,000 to a confidential informant at a location on U.S. Route 60 in Huntington. Kennard admitted to that transaction and further admitted to five additional transactions with the confidential informant between July 20 and September 21, 2022. Kennard sold a total of approximately 82 grams of fentanyl, 10 grams of a mixture of heroin and fentanyl, and 10 grams of methamphetamine during these transactions.
On September 28, 2022, law enforcement officers executed a search warrant at a Huntington residence where Kennard lived. During the search, officers found approximately 96 grams of fentanyl and 274 grams of methamphetamine in a vacant lot across the road from the residence. Kennard admitted that he hid the controlled substances in the vacant lot and intended to distribute them. Kennard told officers that he had distributed controlled substances “off and on” in the Huntington area for at least the previous three years.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
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. 3:22-cr-189.
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Nowata woman pleads guilty to accidentally killing her daughterRead the Press Release
TULSA, Okla. – A Nowata woman pleaded guilty in federal court to involuntary manslaughter in Indian Country, announced U.S. Attorney Clint Johnson.
Amanda Myrene Fields Moffett, 43, a Cherokee citizen of Nowata pleaded guilty to involuntary manslaughter in Indian country for shooting and killing her daughter while attempting to shoot a stray dog.
“Every gun owner has the legal responsibility to use extreme caution when discharging a firearm. This case unfortunately highlights the potential tragic results absent that caution,” said U.S. Attorney Clinton Johnson.
After sunset on Oct. 5, 2018, Moffett’s daughter told her that a stray dog was attacking kittens outside.
Moffett admitted she stepped out onto her front porch and discharged a handgun into the dark yard at what she believed was the stray dog. Moffett further admitted that she did not confirm that her daughter was out of her line of fire.
Moffett faces a maximum of eight years in federal prison. A date for sentencing has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Moffett will remain on conditions of supervised release until sentencing.
The Oklahoma State Bureau of Investigations, FBI and Nowata County Sheriff’s Office conducted the investigation.
Assistant U.S. Attorneys Aaron Jolly and Valeria Luster are prosecuting the case.
Nigerian Man Sentenced to 66 Months in Prison for Business Email Compromise ScamsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHIBUNDU JOSEPH ANUEBUNWA was sentenced today in Manhattan federal court to 66 months in prison for his role in fraudulent business email compromise scams that targeted thousands of victims around the world, including in the United States. Collectively, the scams attempted to defraud victims of over $3.5 million, resulting in over $2.5 million in actual losses to victims. On June 29, 2023, ANUEBUNWA pled guilty to participating in a wire fraud conspiracy before U.S. District Judge Paul A. Crotty, who imposed today’s sentence. In connection with the same conspiracy as ANUEBUNWA, co-defendant DAVID CHUKWUNEKE ADINDU was previously sentenced to 41 months in prison, and co-defendant ONYEKACHI EMMANUEL OPARA was previously extradited from South Africa and sentenced to five years in prison.
U.S. Attorney Damian Williams said: “From halfway around the world, Chibundu Joseph Anuebunwa tried to victimize thousands of people by stealing millions of dollars using fraudulent and deceptive emails that were sent to company employees in the United States and elsewhere. He will now spend time in prison for these serious crimes. Today’s sentence should deter scammers outside of the United States who may be tempted to steal money from American victims with cyberattacks and email scams.”
According to publicly filed court documents and statements made at public court proceedings:
Between 2014 and 2016, ANUEBUNWA, OPARA, and ADINDU participated in business email compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States. ANUEBUNWA sent bogus emails to employees of various companies directing that funds be transferred to specified bank accounts. The emails purported to be from supervisors at those companies or third-party vendors that did business with those companies. The emails, however, were not legitimate. Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses. After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts. In total, the BEC scams attempted to defraud the victims of over $3.5 million, resulting in over $2.5 million in actual losses to victims.
ANUEBUNWA was arrested on March 16, 2021, in the United Kingdom and was extradited to the Southern District of New York on May 20, 2022.
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In addition to the prison term, ANUEBUNWA, 30, of Lagos, Nigeria, was ordered to pay $2.5 million in restitution.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked United Kingdom authorities and the Yahoo E-Crime Investigations Team for their assistance in the investigation. The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from the United Kingdom.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew K. Chan is in charge of the prosecution.
N.Y. Man Traveling from the Dominican Republic Arrested at T.F. Green International Airport After More Than Thirteen Kilos of Cocaine is Seized from a Carry-on BagRead the Press Release
PROVIDENCE, RI – A New York man has been ordered detained in Rhode Island on federal drug trafficking charges after Customs and Border Protection (CBP) agents at T.F. Green International Airport located more than thirteen kilograms of cocaine inside a carry-on bag alleged to have been in the man’s possession when he disembarked in a wheelchair from a direct flight from the Dominican Republic on September 28, 2023, announced United States Attorney Zachary A. Cunha.
It is alleged in charging documents, Richard Pineda Novas, 46, of Bronx, N.Y., was among passengers on a flight from Santo Domingo. After initial screening upon his arrival in Rhode Island, Pineda was referred for secondary inspection.
According to the charging documents, a carry-on bag located near Pineda after his arrival at T.F. Green International Airport was found to contain twelve rectangular brick-like packages wrapped in plastic and tape, consistent with the manner in which cocaine is packaged. One of the packages was more closely inspected by CBP agents and was alleged to have been found to contain cocaine. The total weight of the twelve packages was approximately 13.28 kilograms. Also located inside the bag was a bible that contained a paycheck from a New Jersey company in Pineda’s name and a voided check/direct deposit slip from a New York bank that listed Pineda as the payee.
It is alleged that Pineda initially denied that the carry-on bag belonged to him; he later claimed to CBP agents that he had been given the bag by someone whose name he did not know and that he did not know who was going to pick up the package in the United States.
Pineda is charged by way of a federal criminal complaint with a charge of conspiracy to distribute and conspiracy to possess with intent to distribute a controlled substance; as well as a charge of distribution of, and possession with intent to distribute, a controlled substance. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter is being investigated by Homeland Security Investigations and Customs and Border Protection, Port of Providence.
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Muskogee Resident Sentenced for Threatening Communications and Cyberstalking ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Parker Ryan Little, age 26, of Muskogee, Oklahoma, was sentenced to 51 months imprisonment for posting threats online against Wagoner Police Officers and a Fort Gibson Police Officer, and for stalking and harassing two additional victims.
The charges arose from investigations by the Federal Bureau of Investigation, the California-based Regional Enforcement Allied Computer Team (REACT) Task Force, the Wagoner Police Department, and the Fort Gibson Police Department.
On June 22, 2022, Little pleaded guilty to two counts of Threatening Interstate Communications and two counts of Stalking.
On May 4, 2020, Little used one acquaintance’s identity to send an anonymous tip to the Fort Gibson Police Department threatening a mass shooting. On May 8, 2020, Little, assuming the same victim’s identity, posted a public message on a gaming forum threatening to shoot several Fort Gibson police officers, and posted personal identifiable information (PII) doxing the officers. The threatening messages were observed and reported to law enforcement by individuals located outside of Oklahoma.
On June 11, 2020, Little discussed the harassment of a second acquaintance in a group internet conversation. In the group conversation, Little admitted to harassing that second victim, including swatting the victim’s house. On the same day, Little posed as the second victim and posted a public message on a gaming forum threatening to shoot six Wagoner Police Department Officers, including the Chief of Police, the Deputy Chief, and four others. At the same time, Little posted personally identifiable information in the same public message, doxing the threatened Wagoner police officers. The threatening messages involving the second victim were also observed and reported to law enforcement by individuals located outside of Oklahoma.
“The defendant’s relentless campaign of online threats, harassment, and stalking intended to instill fear and divert critical law enforcement resources from where they are truly needed,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Our hope is that today’s sentence brings some relief to the private citizens and members of the law enforcement community that were affected by this reprehensible behavior.”
“We live in an increasingly interconnected society, which can be either a blessing or a curse,” said United States Attorney Christopher J. Wilson. “In this case, the defendant chose the latter, utilizing various electronic platforms to spew threats and stalk innocent victims, including members of law enforcement. The sentence imposed sends a clear message this type conduct is criminal and will be punished accordingly.”
The Honorable John F. Heil, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee, Oklahoma. Little will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Maryland Man Found Guilty on All Counts for Sexual Exploitation of Children to Produce Child Pornography and Related ChargesRead the Press Release
Baltimore, Maryland – A federal jury convicted Gary Rocky Jones, age 42, of Baltimore, on charges of sexual exploitation of a child, use of interstate commerce facility to entice a minor to engage in sexual activity, commission of a felony crime involving a minor by a registered sex offender and possession and distribution of child pornography. The guilty verdict was returned on September 27, 2023, after a three-week trial.
The verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation (FBI), Baltimore Field Office; and Acting Commissioner Richard Worley of the Baltimore Police Department.
Previously convicted sex offender Gary Rocky Jones, was found guilty of 27 counts of sexual exploitation of a child to produce child pornography, 15 counts of use of an interstate commerce facility, specifically, the internet, to entice a minor to engage in illegal sexual activity—relating to 15 minor victims from around the country, and commission of a felony crime involving a minor by a registered sex offender, as well as distribution and possession of child pornography.
According to the evidence presented at trial, between 2014 and August 2015, Jones twice produced images and videos of a minor male engaged in sexually explicit conduct. The victim was age 14 to 15 years old during the exploitation. Additionally, as detailed during the trial, from September 2018 through August 2020, Jones used social media accounts to persuade, entice, and coerce another 15 minor males from several states and ranging in age from eight to 17 years old, to engage in sexually explicit conduct. During these internet-based communications, Jones caused the victims to both produce live-streamed and recorded visual depictions of themselves engaged in sexually explicit conduct, both alone and with others, and send Jones the sexually explicit images and video via the internet. On April 2, 2018, Jones used a social media account to distribute child pornography. Further, Jones possessed child pornography from December 2, 2014 through January 31, 2020, and from May 29, 2017 through July 14, 2020, respectively, in connection with two separate email addresses and related storage accounts. Finally, the jury found that, based on the evidence presented at trial, between 2015 and September 2020, Jones committed felony offenses involving minors while he was required to register as a sex offender under Maryland law.
Jones faces a mandatory minimum sentence of 25 years and a maximum sentence of 50 years in federal prison for each count of sexual exploitation of a child; a mandatory minimum sentence of 10 years and a maximum of life imprisonment for each count of coercion and enticement of a child; a mandatory minimum sentence of 15 years and a maximum of 40 years in federal prison for distribution of child pornography; and a mandatory minimum sentence of 10 years and a maximum of 20 years in federal prison for possession of child pornography. Jones also faces a mandatory consecutive sentence of 10 years in federal prison for commission of a felony crime involving a minor by a registered sex offender. U.S. District Judge George L. Russell, III has not yet scheduled sentencing.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the Jones case, which is being prosecuted by Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn.
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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Man Sentenced for Role in $55M Investment Fraud SchemeRead the Press Release
A Florida man was sentenced today to six years in prison for orchestrating an investment scheme that defrauded more than 10,000 victims of over $55 million.
According to court documents, Michael Glaspie, 72, of Palm City, marketed an investment opportunity under the name “CoinDeal” or “Coin Deal.” Glaspie claimed that CoinDeal would yield extremely high returns on the premise that a consortium of wealthy buyers was about to acquire one or more technology companies that Neil Suresh Chandran, 51, of Las Vegas, allegedly owned and operated under the banner of “ViRSE.” To entice investors to put money into CoinDeal, Glaspie falsely promised that in the event the returns from CoinDeal failed to materialize, he would repay investors their money with seven percent annual interest over three years. In fact, Glaspie knew he had no means of making such repayments.
According to court documents, to support his false repayment promise, Glaspie deceptively claimed that he had an exclusive and lucrative contract with AT&T to distribute government‑funded phones. He also claimed that the Better Business Bureau was distributing an app that he developed, and it would yield over $400 million in revenue. In reality, Glaspie had no such contract or distribution agreement. Furthermore, when the promised sale of Chandran’s companies did not close, Glaspie transmitted investor funds to Chandran after falsely representing to CoinDeal investors that he would not do so. Glaspie also falsely claimed that he never paid himself with CoinDeal investor funds, when in truth, he misappropriated nearly $2.5 million of victim investments for personal purposes, including trading cryptocurrency, paying his employees’ salaries, and buying a life insurance policy for a family member.
Chandran was arrested on June 29, 2022, for allegedly defrauding more than 10,000 victims of over $45 million.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Susan T. Lehr for the District of Nebraska, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Washington Field Office investigated the case, with assistance from the Omaha, Las Vegas, and Los Angeles Field Offices.
Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald J. Kleine for the District of Nebraska prosecuted the case.
All potential investor victims of this fraud are encouraged to visit the webpage www.justice.gov/criminal-vns/united-states-v-chandran to identify themselves and obtain more information on their rights, including the opportunity to submit a victim impact statement.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced for Lying to Federal Grand Jury and Violating Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAMES HEIGLE, age 41, of St. Tammany Parish, was sentenced on September 28, 2023, after previously pleading guilty to Counts 4, 5, and 6 of the superseding indictment handed down by a federal grand jury, charging him with violations of Title 18, United States Code, Sections 1623, 922(g)(1), 924(a)(2), 931, and 924(a)(7), respectively. As to the charges for false declarations before a grand jury and felon in possession of a firearm, HEIGLE was sentenced to 27 months imprisonment, three years of supervised release, and a $200 mandatory special assessment fee. As to the charge of violent felon in possession of body armor, HEIGLE was sentenced to 27 months imprisonment, 1 year of supervised release, and a $100 mandatory special assessment fee. All sentences are to run concurrently with each other.
Between May 8 – 29, 2019, HEIGLE possessed multiple firearms and a bullet-proof vest. Prior to May 2019, HEIGLE had been convicted of a violent felony in Jefferson Parish, that precluded him from possessing firearms and a bullet-proof vest.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Lincoln Man Sentenced to 24 Months for Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Davonte Brown, 24, of Lincoln, Nebraska, was sentenced today by Senior United States District Court Judge John M. Gerrard to 24 months’ imprisonment. Brown’s sentence follows his conviction for being an unlawful user of controlled substances who possessed a firearm. Brown was also sentenced to a two-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Brown pleaded guilty to his offense on June 23, 2023.
The indictment against Brown was filed on June 17, 2020. Brown was allowed to be released from custody while his case was pending. One of the conditions of his release required that he stay in contact with the United States Probation Office. At some point after he was allowed to be on pretrial release, Brown absconded, and a warrant was issued for his arrest. Brown was located and arrested on January 5, 2023. At today’s sentencing hearing, Senior Judge Gerrard remarked that Brown’s offense would typically receive an 18-month term of imprisonment. However, because Brown absconded, Judge Gerrard added an additional six months to Brown’s sentence.
On April 17, 2020, a person in Lincoln purchased a KelTec rifle from a gun store. Brown later posted a video on Snapchat which depicted him in possession of that rifle. Police executed a search warrant at the home of the person who purchased the firearm. The KelTec rifle was recovered, and it was examined for fingerprints. Two sets of fingerprints were found on the rifle, one of which matched Brown’s fingerprints.
At the time when Brown possessed the rifle, he was an unlawful user of marijuana. Between contacts with law enforcement, and postings on social media, evidence was obtained showing Brown in possession of marijuana between July 2018 and May 2020.
The investigation was conducted by the Lincoln Police Department’s Gang Unit, which works with the Federal Bureau of Investigation in referring some cases for federal prosecution. The Bureau of Alcohol, Tobacco, Firearms, and Explosives also assisted by helping to trace the origins of the firearm. 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.
Las Vegas Man Sentenced to 23 Years in Prison for Committing Two Armed Carjackings, Shooting at Police During Car Pursuit, and Assaulting A Federal Corrections OfficerRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Gloria M. Navarro to 23 years in prison followed by three years of supervised release for two carjackings during which he brandished a firearm and shot at one victim, shooting at police officers during the vehicle pursuit, and for assaulting a federal officer while in custody.
Justin Venegas (41) pleaded guilty to two counts of carjacking, one count of brandishing a firearm during and in relation to a crime of violence, one count of felon in possession of a firearm, and one count of assault on a federal officer which inflicts bodily injury.
According to court documents, on August 11, 2022, Las Vegas Metropolitan Police Department (“LVMPD”) was pursuing Venegas for a robbery/carjacking that occurred on May 20, 2022. While at an intersection, Venegas pointed a firearm at the driver of another vehicle and to into the vehicle. He then put the firearm into the victim’s stomach and forcibly removed the victim from their vehicle. Venegas drove away in the victim’s vehicle. During the pursuit, Venegas reached out the driver’s window and fired several rounds at the front windshield of the pursuing officers’ patrol vehicle. Later, Venegas attempted to carjack a second victim. He shot at and struck the second carjacking victim using a firearm. While the pursuit continued, Venegas collided head on with a K9 police vehicle. He was placed under arrest. A search of the vehicle revealed a Smith and Wesson M&P Shield with an obliterated serial number. A National Integrated Ballistic Information Network (NIBIN) analysis showed that the firearm was the same gun that was discharged during the pursuit and at a police officer. Venegas is a convicted felon, and he is prohibited by law from possessing a firearm.
Later, on October 1, 2022, at the Nevada Southern Detention Center, Venegas punched a detention officer in the face causing the officer to fall to the ground. The detention officer suffered facial fractures, lacerations, and a dislocated thumb.
“The defendant will spend the next 23 years in prison for putting the public and police officers in danger with his senseless, violent actions in his attempt to evade apprehension, and for assaulting a detention officer while in custody,” said United States Attorney Jason M. Frierson for the District of Nevada. “In this case, NIBIN crime gun tracing connected the gun used in the first and second carjackings by the defendant. Together with our law enforcement partners, we will continue to combine resources to protect our communities and to bring violent offenders to justice.”
“The defendants’ sentence should serve as a deterrent to anyone who is considering terrorizing the safety and security of our community by committing armed carjackings,” said Special Agent in Charge Spencer L. Evans for the FBI. “The sentence also reflects the severity of the crime and the commitment of the FBI, along with our federal, state, and local partners, to reduce the potential of future carjacking offenses, a major driver of violent crimes.”
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant United States Attorney Allison Reese prosecuted the case.
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Justice Department Secures Compensation for Servicemembers After Property Management Company Illegally Charged Lease Termination Fees at New Jersey Apartment ComplexRead the Press Release
The Justice Department announced today that JAG Management Company LLC (JAG), which manages large apartment properties in several states, agreed on Friday to pay $61,581 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The Justice Department’s complaint alleges that JAG imposed illegal fees on at least nine servicemembers who had exercised their right under the SCRA to terminate their leases after receiving qualifying military orders. The servicemembers were residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey. The termination fees ran as high as $2,750 per servicemember.
“Servicemembers should not have to pay any fees – much less exorbitant fees – to landlords when they are simply complying with their military orders and protecting our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reaffirms the Justice Department’s unwavering commitment to protecting the rights of servicemembers, veterans and their families.”
“Our office is committed to protecting the rights of servicemembers who make tremendous sacrifices on behalf of our nation,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Landlords and property managers may not unlawfully penalize members of our armed forces who are simply carrying out their duty. Through this consent order, we protect the rights of servicemembers and provide compensation to those who suffered harm when they were allegedly unlawfully charged early lease termination fees upon receiving military orders.”
The complaint filed today in the U.S. District Court for the District of New Jersey alleges that Coast Guard Lieutenant Daniel Pereira sought to terminate his lease with JAG Management after he received permanent change of station orders transferring him from Philadelphia to New London, Connecticut. Lt. Pereira provided JAG with timely written notice of his lease termination and a copy of his transfer orders before vacating his apartment. However, two months after moving, Lt. Pereira was notified – for the first time – that JAG was demanding that he repay a $2,100 rent concession he received when he signed his lease. Despite Lt. Pereira’s efforts to resolve the matter, including providing JAG with the relevant provisions of the SCRA and prior Justice Department cases on this issue, JAG reported the debt to credit reporting agencies and Lt. Pereira’s credit score was downgraded. The complaint also alleges that JAG charged illegal fees to at least eight other servicemembers, representing the U.S. Air Force, Army, Coast Guard and Air National Guard, who had exercised their right to terminate their residential leases upon receipt of qualifying military orders.
Under the terms of the proposed consent order, which was filed with the complaint and is subject to court approval, JAG Management must pay a total of $41,581 in damages to the nine servicemembers. JAG must also pay a civil penalty of $20,000 to the federal government. In addition, JAG must implement policies to ensure it complies with the SCRA, trains employees on the protections afforded by the SCRA and reports future SCRA-related complaints to the federal government.
The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section investigated JAG Management’s leasing practices after receiving a referral from the Justice Department’s Servicemembers and Veterans Initiative.
The purpose of the SCRA is to allow servicemembers to devote their entire energy to the national defense. The SCRA provides protections to servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement without paying a penalty or an early termination charge.
Since 2011, the department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.
Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
jag_management_complaint.pdf jag_management_consent_decree.pdfJustice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
WASHINGTON – The Justice Department announced that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
Colorado will receive $70,830,033 in grants in 71 awards from the Department of Justice.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“This funding is good news for communities throughout Colorado,” said U.S. Attorney Cole Finegan. “I am pleased to announce that Colorado will receive nearly $71 million in grant funding and applaud these efforts to make Colorado a safer place to live.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards More Than $36 Million to Support Community Safety in the Middle District of FloridaRead the Press Release
Tampa, FL – The Justice Department announced that it has awarded more than $4.4 billion to support state, local, and Tribal public safety, and community justice activities. Of that amount, more than $36.6 million has been awarded to entities in the Middle District of Florida. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“Improving the safety of our communities requires a comprehensive approach and commitment by those working on the front lines,” said U.S. Attorney Roger B. Handberg. “The funding announced today will greatly support those working tirelessly to help keep our citizens safe every day.”
The more than $36.6 million in grant funding being awarded this fiscal year in the Middle District of Florida will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
More information about the awards announced today, including those within the Middle District of Florida, can be found by visiting www.ojp.gov/funding/fy23awards.
Jonestown Man Pleads Guilty to Possession of an Unregistered Destructive DeviceRead the Press Release
AUSTIN, Texas– A Jonestown man pleaded guilty in a federal court in Austin today to possessing an unregistered destructive device, namely a pipe bomb, that detonated in a hospital parking garage.
According to court documents, on Aug. 9, Raymond Luke Garner, 38, parked his pickup truck in a parking garage at St. David’s Hospital in Austin. A short time later, there was an explosion in the back of Garner’s truck. Investigators found the remains of a pipe bomb near the truck. They also found a quantity of a homemade high explosive, circuit boards/timers, electric matches, and other items.
While he was detained by police, Garner contacted another individual to ask that person to move a box out of Garner’s home. That box was later found to contain, among other things, a quantity of the high explosive, precursor chemicals, and electric matches. Searches at other locations revealed a recipe for the high explosive, remote control devices, and other components for destructive devices. Garner has admitted that he was in possession of an unregistered destructive device on Aug. 9.
Garner pleaded guilty to one count of possession of an unregistered destructive device and faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas; FBI Special Agent in Charge Oliver E. Rich Jr., San Antonio Division; and ATF Special Agent in Charge Fred J. Milanowski, Houston Division, made the announcement.
The ATF and FBI’s Joint Terrorism Task Force were the lead federal agencies investigating the case. Valuable assistance was provided by the Travis County Sheriff’s Office, Austin Police Department, Austin Fire Department, and Cedar Park Police Department.
Assistant U.S. Attorney G. Karthik Srinivasan is prosecuting the case.
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Joint Investigation Leads to Federal Indictment for Fentanyl and Methamphetamine TraffickingRead the Press Release
Paducah, KY – A federal grand jury returned an indictment on September 19, 2023, charging several Hopkinsville, Kentucky residents with conspiring to distribute fentanyl and 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, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to the indictment, Jay Brown, 54, Joseph Brown, 34, Vanchaize Brown, 39, Deerrica Finch, 34, Jane Majors, 43, and Tapaulda Hancock, 41, all of Hopkinsville, Kentucky, were charged with conspiring to possess with the intent to distribute and distributing 400 grams or more of fentanyl and 50 grams or more of methamphetamine.
The defendants recently made their initial court appearances before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, the defendants each face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the DEA Paducah Post of Duty and the Hopkinsville Police Department Special Investigations Unit, with assistance from the ATF Bowling Green Field Office, HSI, USPIS, the Kentucky State Police, the Calloway County Sheriff’s Office, and the Madisonville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Internal Revenue Service Information Technology Supervisor Facing Federal Charges for Extortion and Attempted Witness TamperingRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Satbir Thukral, age 61, of Germantown, Maryland, for interference with commerce by extortion, and attempted witness tampering.
The defendant had an initial appearance on September 29, 2023, in U.S. District Court in Greenbelt before U.S. Magistrate Judge Ajmel A. Quereshi.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Special Agent in Charge Wayne A. Jacobs of the Federal Bureau of Investigation (FBI) – Washington Field Office; and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration (TIGTA).
“A top criminal priority for the FBI is to investigate public corruption perpetrated against the government and American taxpayers,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office. “Today’s indictment is an example of an important partnership with TIGTA and the work we do every day towards our common goal. The FBI will not relent in our mission to root out corruption and fraud within the government, and to hold those accountable who put greed above their trusted positions.”
TIGTA Special Agent in Charge Andrew McKay said, “Internal Revenue Service employees are placed in a position of trust, and when an employee tries to sell that trust for personal gain, the faith of the American taxpayer falters. The Treasury Inspector General for Tax Administration takes allegations of public corruption very seriously and will ensure that any employees involved in such acts are held accountable. I want to thank our law enforcement partners at the FBI, the U.S. Attorney’s Office, and the Department of Justice Fraud Section for their efforts.”
According to the indictment, Thukral was employed as an information technology manager for the Internal Revenue Service (“IRS”), assigned to an office in Lanham, Maryland. He had a supervisory role in connection with contracts between the IRS and various businesses. Victim 1 was the President of Business 1, which was a professional services firm based outside of Maryland, that conducted business in Maryland. Businesses 2 and 3 had prime contracts with the IRS for the performance of IT services. At various times from approximately September 2018 through February 2021, Business 1 subcontracted with Businesses 2 and 3 to assist in executing the contracts with the IRS.
According to the indictment, in March 2018, Victim 1 provided their resume to Thukral who passed Victim 1’s resume within the IRS, to Business 2, and elsewhere for purposes of facilitating the hiring of Business 1 as a subcontractor on a prime contract with the IRS. The indictment alleges that, beginning in September 2018, Business 1 was hired as a subcontractor by Business 2 to perform services in support of Business 2’s contract with the IRS; at a later point, Business 1 was hired to assist Business 3. Beginning in October 2018, Thukral allegedly demanded that Victim 1 pay him a portion of the earnings on Business 1’s subcontracts, claiming that Thukral enabled Business 1’s employment and telling Victim 1 that there would be consequences if Victim 1 did not pay. From approximately October 2018 through December 2020, Victim 1 allegedly provided such payments to Thukral, totaling at least approximately $120,000. The indictment alleges that Victim 1 made these payments out of fear that Thukral would cause Victim 1 economic and reputational harm if Victim 1 did not pay.
Further, the indictment alleges that, in February 2023, Victim 1 informed Thukral that they had been approached by federal investigators inquiring about cash withdrawals that Victim 1 made from their bank accounts. Thukral allegedly attempted to persuade Victim 1 to deceive the federal investigators about the reason for Victim’s 1 cash withdrawals and about the extortion scheme.
If convicted, Thukral faces a maximum sentence of 20 years’ imprisonment on each count in the indictment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Members of the public who suspect misconduct such as that described above, or believe they have been the victim of such misconduct, should contact the TIGTA telephone line at 800-366-4484 or visit https://www.tigta.gov/reportcrime-misconduct.
United States Attorney Erek L. Barron and Acting Assistant Attorney General Nicole M. Argentieri commended the FBI and TIGTA for their work in the investigation. Mr. Barron and Ms. Argentieri thanked Assistant U.S. Attorneys Elizabeth Wright and Christopher Sarma and Trial Attorney Matt Kahn from the U.S. Department of Justice, Criminal Division, Fraud Section, who are 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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Ian Freeman Sentenced to 8 Years in Prison for Operating a Bitcoin Money Laundering SchemeRead the Press Release
CONCORD – Ian Freeman was sentenced today in federal court for laundering over ten million dollars in proceeds from romance scams and other internet fraud, U.S. Attorney Jane E. Young announces.
Ian Freeman, 43, of Keene was sentenced by U.S. District Court Judge Joseph Laplante to 96 months in prison, 2 years of supervised release, and a fine of $40,000. Freeman was ordered to pay restitution to victims in an amount to be determined on a later date. Freeman was convicted by a federal jury on December 22, 2022.
“The defendant’s criminal conduct devastated many vulnerable people,” said U.S. Attorney Jane E. Young. “Dozens of victims were identified during the investigation. Many of them lost their life’s savings by way of Freeman’s bitcoin money laundering scheme. The Court recognized that an important part of this sentence was for the defendant to provide restitution to the victims. In financial crimes cases such as this, providing restitution to victims is one of the highest priorities of the U.S. Department of Justice and this Office.”
“Ian Freeman catered to fraudsters. He played a shell game with other people’s hard-earned money, turned a blind eye to the scam artists who were ripping them off, and walked away with millions, depriving their victims of their life’s savings. Today’s sentence is a significant step toward justice for the dozens of victims all over the country who have suffered significant financial losses and heartbreak as a result of this man’s criminal conduct,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “In addition to our efforts to disrupt outrageous schemes like this one, we must also work to raise public awareness to prevent them. Last year, New Hampshire residents reported losing almost $33 million due to internet-related crimes. So we caution everyone to be wary of people you meet online - especially when it comes to cryptocurrency.”
“Ian Freeman’s sentencing shows that IRS Criminal Investigation is working vigorously to stop internet fraudsters like Ian Freeman,” said Harry T. Chavis Jr, Special Agent in Charge of IRS Criminal Investigation’s Boston Field Office. “Not only did Freeman launder millions of dollars, but he also provided a conduit for other scammers to leave countless victims destitute in their wake. The role of IRS Criminal Investigation becomes even more important in internet fraud cases due to the complex financial transactions that can take time to unravel so that fraudsters like Ian Freeman can be brought to justice.”
Freeman laundered over ten million dollars in proceeds of romance scams and other internet frauds by exchanging U.S. dollars for bitcoin. By failing to register his business with the Financial Crimes Enforcement Network as required by law, disabling “know your customer” features on his bitcoin kiosks, and ensuring that bitcoin customers did not tell him what they did with their bitcoin, among other things, Freeman created a business that catered to fraudsters. By charging exorbitant fees, Freeman made more than a million dollars.
Records and exhibits in the 10-day trial proved that as part of the conspiracy, Freeman and his co-conspirators opened and operated accounts at financial institutions in the names of various churches including the Shire Free Church, the Church of the Invisible Hand, the Crypto Church of New Hampshire, and the NH Peace Church. Freeman instructed bitcoin customers, who were often victims of scams, to lie to the financial institutions and describe their deposits as church donations. From 2016 to 2019, he paid no taxes, and concealed his income from the Internal Revenue Service.
The Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations, and the United States Postal Inspection Service led the investigation. The National Cryptocurrency Enforcement Team and the Department of Justice, Tax Division, provided valuable assistance in the case. The case was prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald, John Kennedy, and Seth R. Aframe.
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Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Rodney Lee Browne Jr., 31, of Huntington, was sentenced today to four years and four months in prison, to be followed by three years of supervised release, for possession with intent to distribute quantities of heroin, methamphetamine and fentanyl.
According to court documents and statements made in court, on March 19, 2020, law enforcement officers executed a search warrant at a Fourth Avenue residence in Huntington and seized approximately 1.5 grams of heroin, 68 grams of methamphetamine, 245 grams of marijuana, and 328 grams of fentanyl. Officers also found an AK-47 semiautomatic rifle, drug distribution paraphernalia and $2,075. Browne admitted that he possessed the heroin, methamphetamine, fentanyl and marijuana and intended to sell the controlled substances.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney 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. 3:23-cr-64.
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Houston airport trespasser sent to prisonRead the Press Release
HOUSTON – A 36-year-old man has been ordered to prison for illegally entering an aircraft area in violation of security requirements to commit a felony therein, announced U.S. Attorney Alamdar S. Hamdani.
Allan Leon Goins III pleaded guilty May 24.
U.S. District Judge Lee Rosenthal has now ordered Goins to serve 12 months and a day in federal prison to be immediately followed by three years of supervised release. The court also ordered him to pay $2,276.48 in restitution.
Goins admitted he willfully breached and entered the restricted airport operations area at Houston Bush Intercontinental airport on Nov. 2, 2021. The restricted area services domestic and foreign air carriers. He evaded posted security procedures, fencing and restricted areas.
Additionally, Goins stole an Atlantic Aviation Inc. uniform, utility cart and caused damage to the cart. He evaded security and authorized personnel efforts to apprehend him causing a pursuit to ensue for over an hour in dark and foggy conditions. Authorities had to shut down airport runways, taxiways and the West complex operations for approximately two hours.
Ultimately, law enforcement located and arrested Goins, at which time he said they, “should have shot him.” On Nov. 5, 2021, authorities conducted a search on articles of clothing found in the area Goins was apprehended which revealed a loaded A Walther PPS 9mm caliber pistol.
Goins will remain in custody pending transfer to a U.S. Bureau of Prison facility to be determined in the near future.
The FBI conducted the investigation with the assistance of Houston Airport System, Houston Police Department and Houston Fire Department. Assistant U.S. Attorney Joe Porto prosecuted the case.
Genomic Health Inc. to Pay $32.5 Million to Resolve Allegations Relating to the Submission of False Claims for Genomic Diagnostic TestsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Naomi D. Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG) announced that the United States has reached a settlement with Genomic Health, Inc. (GHI) to resolve allegations that it violated the False Claims Act in an alleged nationwide scheme to improperly bill Medicare for laboratory tests known as “Oncotype DX®.” Under the terms of the settlement, GHI will pay $32.5 million for losses caused by GHI’s submission of false claims to the Medicare Program.
“This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” stated United States Attorney Peace. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.”
Mr. Peace expressed his gratitude for the support of the United States Department of Health and Human Services for their assistance in investigating these important claims.
“Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” stated HHS-OIG Special Agent-in-Charge Gruchacz. “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.”
GHI is a Delaware corporation headquartered in Redwood City, California. GHI is a provider of genomic-based clinical diagnostic tests. Its principal test, Oncotype DX®, has been used for patients diagnosed with breast, colon and prostate cancer. GHI was acquired by Exact Sciences Corporation (“Exact”) in November 2019 and is a wholly-owned subsidiary of Exact.
The United States contends that GHI perpetrated a scheme to evade Medicare regulations when submitting claims to the Medicare Program for its test to circumvent Medicare’s 14-Day Rule (which establishes which entity may bill Medicare for certain laboratory services). During the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for certain tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. Such claims were required to be submitted by the hospital. However, if the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. The United States contends that GHI perpetrated its scheme in four ways:
- GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge. This caused the Medicare Program to incur additional costs beyond what it would have otherwise paid.
- GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s out-patient procedure.
- GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed.
- GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14-Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute.
The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against GHI. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The relator share from the proceeds of the federal settlement in this case will be $5,687,500. The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (E.D.N.Y) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (E.D.N.Y.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell, Paralegal Specialist Loan Ngyuen, and Sanjay Bhambhani, Senior Trial Counsel, Fraud Section, Commercial Litigation Branch. The Office of Inspector General at the Department of Health and Human Services assisted in the investigation of these cases.
Genomic Health Inc. Agrees to Pay $32.5 Million to Resolve Allegations Relating to the Submission of False Claims for Genomic Diagnostic TestsRead the Press Release
Genomic Health, Inc. (GHI), a Delaware corporation headquartered in Redwood City, California, has agreed to pay $32.5 million to resolve allegations that it violated the False Claims Act by engaging in a nationwide scheme to improperly bill Medicare for certain laboratory tests used to diagnose and treat cancer patients. GHI is a wholly owned subsidiary of Exact Sciences Corporation, which acquired GHI in November 2019.
GHI provides genomic-based clinical diagnostic tests. Its principal test, Oncotype DX®, is used for patients diagnosed with breast, colon and prostate cancer. The United States alleged that GHI perpetrated a scheme to evade Medicare’s 14-Day Rule, which governs the billing of genomic laboratory tests like Oncotype DX®.
During some or all of the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for covered tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay in an inpatient or outpatient setting. For inpatient beneficiaries, such tests were covered under a lump-sum payment hospitals receive from the Medicare Program called the Diagnosis-Related Group (DRG) payment. For outpatient beneficiaries, Medicare’s 14-day Rule required (for most of the relevant time) tests ordered within 14 days of the patient’s discharge to be billed to the hospital but the hospital could then seek reimbursement from Medicare. However, if the test was performed more than 14 days after discharge from a hospital stay either in an inpatient or outpatient setting, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. The United States contends that GHI improperly manipulated the 14-Day Rule in four ways:
- GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge. By submitting separate claims for these tests, GHI received direct payment for tests that should have been covered as part of the DRG payment to the hospital.
- GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s outpatient procedure. By submitting separate claims for these tests, GHI received direct payment from Medicare for tests that should have been billed to the hospital.
- GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed.
- GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14 Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute.
“Participants in federal health care programs must comply with applicable rules when providing and billing for their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will use the tools at its disposal to prevent companies from manipulating these programs for their own monetary benefit.”
“This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.”
“Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” said Special Agent in Charge Naomi D. Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.”
The civil settlement includes the resolution of allegations brought in two separate actions filed against GHI under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, private parties can file an action on behalf of the United States and receive a portion of any recovery. The relator’s share from the proceeds of the settlement in this case will be $5,687,500. The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (EDNY) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (EDNY).
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 HHS at 800-HHS-TIPS (800-447-8477).
The cases were handled by former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor for the Eastern District of New York and monitored by Senior Trial Counsel Sanjay M. Bhambhani of the Civil Division’s Commercial Litigation Branch. The HHS-OIG and the FBI assisted in the investigation of these cases.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementFort Walton Beach Man Sentenced to 25 Years in Federal Prison for Drug ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Maurice Pearce Head, 38, of Fort Walton Beach, Florida, was sentenced to 25 years in federal prison after previously pleading guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, fentanyl, and heroin. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida.
“Hundreds of individuals are killed every day in communities throughout our country due to the distribution of fentanyl,” said U.S. Attorney Coody. “Each of these deaths is a tragedy, robbing individuals of their promise and crippling families left behind with unimaginable grief. We remain committed to working with our law enforcement partners to identify and aggressively prosecute those who distribute these addictive, controlled substances. This sentence serves as a significant deterrent to drug traffickers and demonstrates our resolve to hold them accountable.”
Evidence introduced at the sentencing hearing established that Head conspired with others to distribute over 50 kilograms of methamphetamine and thousands of pills containing fentanyl in the Northern District of Florida and elsewhere. On June 8, 2021, Head was found in possession of over a kilogram of a mixture of drugs containing methamphetamine, fentanyl, and heroin, during a federal search warrant at a warehouse in Fort Walton Beach, Florida. Evidence introduced at the sentencing hearing also established that, while Head’s case was pending, he obstructed justice by attempting to offer to pay a witness $10,000 if that witness would agree not to testify against Head.
“Fentanyl remains the deadliest drug threat facing our communities. Last year, over 110,000 American lives were lost to drug poisonings, with a majority of these deaths due to a synthetic opioid like illicit fentanyl,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law enforcement partners to aggressively pursue those who bring this poison into our Florida communities and to hold drug traffickers accountable for their crimes.”
“We all know fentanyl alone, and/or laced with other drugs, is deadly. People dealing these drugs simply don’t care. We must continue to work to educate the public, but law enforcement agencies and their partners like the U.S. Attorney’s Office know putting dealers behind bars and out of business is a critical component of the multi-pronged attempt to hold dealers accountable for their crimes and try to save lives,” said Okaloosa County Sheriff Eric Aden.
FDLE Pensacola Special Agent in Charge Chris Williams said, “Our agents proactively investigate drug dealers and trafficking organizations to intercept these dangerous drugs. Still, fentanyl and methamphetamines kill thousands of Floridians each year. There is no doubt that investigating and arresting Maurice Head helped stop the flow of these dangerous drugs into our Northwest Florida communities.”
“The Florida Highway Patrol is committed to enforcing the laws of Florida with an intentional effort to interdict and remove illicit controlled substances along Florida roadways that poison our communities,” said Colonel Gary Howze, Director of the Florida Highway Patrol. “The collaborative relationships between our partner federal, state, and local law enforcement agencies are key in the successful arrest and prosecutions of criminals.”
Head’s prison sentence will be followed by 5 years of supervised release.
This prosecution resulted from a combined investigation conducted by the Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, the Florida Department of Law Enforcement, and the Florida Highway Patrol. Assistant United States Attorneys J. Ryan Love and Alicia H. Forbes prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Illinois Police Officer Indicted, Accused of Assaulting Handcuffed ManRead the Press Release
ST. LOUIS – A former police officer from Venice, Ill. appeared in court Monday to answer a federal civil rights charge accusing him of assaulting a handcuffed man.
Justin Gaither, 33, was indicted September 27 on one count of deprivation of rights under color of law, namely the right to be free from the use of unreasonable force. The indictment accuses Gaither of assaulting someone on Nov. 20, 2022. The victim was handcuffed and was not posing a threat to anyone, the indictment says.
Gaither pleaded not guilty Monday in U.S. District Court in St. Louis.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Christine Krug is prosecuting the case.
Former First NBC Bank Officers and Former Borrower Sentenced for Bank Fraud ConspiracyRead the Press Release
NEW ORLEANS – On September 28, 2023, United States District Judge Eldon E. Fallon sentenced WILLIAM J. BURNELL, age 73, of Kenner, ROBERT B. “BRAD” CALLOWAY, age 63, of Metairie, and FRANK J. ADOLPH, age 63, of New Orleans, announced U.S. Attorney Duane A. Evans. All three defendants previously pleaded guilty to bank fraud conspiracy for their role in the fraudulent scheme that led to the collapse and failure of New Orleans-based, First NBC Bank (Bank), in April 2017.
BURNELL was sentenced to 48 months in prison, three years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon ordered a restitution hearing to be held at a later date. According to court documents, from 2006 through April 2017, BURNELL was the Bank’s Chief Credit Officer. He was responsible for the overall quality of the Bank’s lending function; the Bank’s credit policies and administration; the Bank’s loan recovery and collection efforts; and the Bank’s monitoring and managing of past due loans, including the approval of the Bank’s internal list of past-due loans. BURNELL was also responsible for compiling month-end reports, including lists of overdrawn borrowers and past-due loans. Nevertheless, BURNELL conspired with Bank President, Ashton J. Ryan, Jr., and others, to conceal material information and defraud the Bank. Among other things, BURNELL fraudulently risk rated loans to past due borrowers so new loans could be issued to them to conceal the borrowers’ past due status from the Board.
CALLOWAY was sentenced to 30 months in prison, two years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon likewise ordered a restitution hearing to be held at a later date. According to court documents, CALLOWAY was the Bank’s Executive Vice President and specialized in tax credits. CALLOWAY and other bank officers, including Ryan and BURNELL, conspired to conceal the financial condition of bank borrower, Gary R. Gibbs, from Bank’s Board of Directors, auditors, and examiners. Among other things, they falsely stated in loan documents that Gibbs was able to pay his loans with cash generated by his businesses. They concealed from the Bank’s Board of Directors, auditors, and examiners that Gibbs was only making his existing loan payments by getting new loans from the Bank.
ADOLPH was sentenced to 20 months in prison, two years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon ordered restitution in the amount of $5,706,279.62. According to court documents, ADOLPH was a borrower at the Bank, both individually and through various companies. One of these companies, Metro Rediscount, was a factoring company that purchased other companies’ accounts receivable. ADOLPH was habitually unable to pay his Bank loans. With Ryan’s knowledge, ADOLPH lied about Metro Rediscount’s assets on loan applications. As a result, Ryan was able to ensure ADOLPH received loans that kept him and his companies off the past due list.
U.S. Attorney Evans said, “These sentences demonstrate our office’s commitment to prosecuting white collar crime. They also show that employees cannot use the defense that they were merely ‘following orders.’ Each citizen has an individual responsibility to follow the law.”
U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne and Nicholas D. Moses of the Financial Crimes Unit, J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit, are in charge of the prosecution.
Five more guilty for roles multi-million dollar COVID-19 relief fraud conspiracyRead the Press Release
HOUSTON - Five Texas men have pleaded guilty to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the guaranteed by the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy or others controlled.
As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.
Anis, Patel, Singh, Arham Uddin and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced Jan. 4, 2024. At that time, each face up to five years in prison.
In addition to these five, one other individual was convicted at trial for his involvement in the scheme and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
The SBA Office of Inspector General (OIG), Federal Housing Finance Agency OIG, Homeland Security Investigations, Federal Deposit Insurance Corporation – OIG and Treasury Inspector General for Tax Administration conducted the investigation.
Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson are prosecuting the cases along with Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Five Men Plead Guilty to Roles in Multimillion-Dollar COVID-19 Relief Fraud ConspiracyRead the Press Release
Five Texas men pleaded guilty today to their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Muhammad Anis, 55, Nishant Patel, 41, Harjeet Singh, 49, all of Houston, and Arham Uddin, 27, and Ammas Uddin, 30, both of Richmond, engaged in a conspiracy to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. All five defendants also assisted in laundering the fraudulently obtained PPP loan funds by supplying co-conspirators with blank, endorsed checks, which were made payable to people posing as employees of the companies that received the PPP loan, but who were in fact not employees. These fake paychecks were then cashed at check cashing stores that other members of the conspiracy controlled.
As part of the scheme, Anis obtained a false and fraudulent PPP loan in the amount of approximately $483,333; Patel obtained a false and fraudulent PPP loan in the amount of approximately $474,993; Singh obtained two false and fraudulent PPP loans for a total of approximately $937,379; Arham Uddin obtained a false and fraudulent PPP loan in the amount of approximately $491,664; and Ammas Uddin obtained a false and fraudulent PPP loan in the amount of approximately $498,415.
Anis, Patel, Singh, Arham Uddin, and Ammas Uddin each pleaded guilty to one count of conspiracy to commit wire fraud. They are scheduled to be sentenced on Jan. 4, 2024, and each face a total maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition to these five defendants, one other individual was convicted at trial for his involvement in the scheme, and 15 other individuals have pleaded guilty to their involvement in the loan fraud scheme.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA-OIG) Central Region, Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston, Special Agent in Charge Anand Ramlall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Dallas Region, and Special Agent in Charge Gary Smith of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the case.
Trial Attorneys Louis Manzo, Della Sentilles, Kate McCarthy, and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson for the Southern District of Texas are prosecuting the cases.
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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Dental Provider and Associated Individuals Agree to Resolve Allegations of Improper Billing of TennCareRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Dr. Michael Sawaf and his affiliated company Premier Dental Group PLLC of Knoxville, f/k/a Orthodontic Designs by Michael Sawaf, PLLC (“PDG”), have agreed to pay $985,541 to resolve allegations that they knowingly and improperly submitted false claims for dental services to TennCare in violation of the False Claims Act (“FCA”) and the Tennessee Medicaid False Claims Act (“TMFCA”). Erin Ferdowsi and Reja Ferdowsi, both of whom were affiliated with PDG, also agreed to resolve similar allegations against them.
TennCare prohibits billing for services that are not provided, upcoding claims to receive higher reimbursements to which a provider is not entitled, and billing for unnecessary services. TennCare also requires that dentists apply for and receive approval to participate in the TennCare program before billing for services rendered to beneficiaries. The credentialing process is intended to ensure that beneficiaries receive the highest quality of care from competent providers who have been vetted prior to rendering services.
Dr. Sawaf owns and sees patients at PDG, a dental and orthodontics clinic located at 303 S. Concord Street, Suite 323, in Knoxville, TN. Erin and Reja Ferdowsi operated, managed, and/or worked at PDG. The settlement resolves allegations that, from January 1, 2016, through December 31, 2020, PDG knowingly submitted, or caused the submission of, false claims to TennCare for payment relating to various dental procedures. The settlement also resolves allegations that, between August 14, 2019, and September 11, 2019, PDG knowingly submitted, or caused the submission of, claims for payment to TennCare that falsely identified credentialed dentists as the rendering provider for services that were actually rendered by uncredentialed dentists who were ineligible to bill TennCare.
This settlement is the result of a collaborative effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the Federal Bureau of Investigation, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation. The investigation that preceded the settlement was prompted by a lawsuit filed in 2020 under the qui tam or “whistleblower” provisions of the FCA and TMFCA, which permit a private individual (known as a “relator”) to sue on behalf of the government for false claims and to share in any recovery. The relators’ share of the recovery in this case is $182,325.
Assistant U.S. Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Convicted COVID-19 fraudster sentenced to federal prison, ordered to repay stolen fundsRead the Press Release
BRUNSWICK, GA: A Georgia man has been sentenced to federal prison and ordered to pay substantial restitution for leading a conspiracy that stole nearly $2 million in COVID-19 small business relief funding.
Bernard Okojie, 41, of McDonough, Ga., was sentenced to 64 months in prison after being convicted at trial in March of Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering Conspiracy, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Okojie to pay $1,946,283 in restitution, and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Bernard Okojie devised a complex and far-reaching scheme to steal federal funding intended to provide relief to small businesses struggling from the COVID-19 pandemic,” said U.S. Attorney Steinberg. “This sentence imposes a strong measure of accountability for these blatant acts of fraud.”
As described at trial and in court documents, Okojie used information for non-existent companies to file at least 46 fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program loans for himself and others from April 2020 through May of 2021, seeking more than $4.2 million in COVID-19 relief funds. Okojie received nearly $2 million in funding directly, or was paid by other recipients of the fraudulently obtained funding for his work in submitting the EIDL applications on their behalf. Okojie then conspired to launder the fraudulent proceeds to hide the source of the funds.
Funds from the nearly $2 million Okojie and others received through the schemes were used to purchase a home, vehicles, shopping trips to Versace, for personal investments, and a toy poodle. Okojie also was intercepted as he attempted to leave the United States with nearly $40,000 in cash.
“Mr. Okojie chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs. He will now spend more than five years in prison and must pay all the money back,” said FBI Savannah’s Senior Supervisory Special Agent Will Clarke. “Theft of government funds will not be tolerated, and prosecuting PPP fraud remains a priority for law enforcement.”
“Lying to gain access to economic stimulus funds will be met with justice,” said SBA OIG’s Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite. “This sentence showcases that SBA OIG will continue to aggressively pursue evidence of fraud against SBA’s programs to expose wrongdoers’ actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The case was investigated by the FBI and the Small Business Administration Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer A. Stanley and Matthew A. Josephson.
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.
Clearfield Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
JOHNSTOWN, Pa. – A resident of Clearfield, PA pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
Dennis James Rauch, age 38, of Clearfield, PA, pleaded guilty to Counts Two and Seven of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Rauch did conspire to distribute 5 grams or more of actual methamphetamine. Further, in and around March 2020, Rauch did possess a firearm in furtherance of a drug trafficking crime.
Judge Gibson scheduled sentencing for February 7, 2024. The law provides for a minimum sentence of 5 years in prison and a maximum of 40 years in prison, a fine of up to $5,000,000 or both at Count Two, and a minimum sentence of 5 years in prison, a maximum of life in prison, a fine of up to $250,000, or both, at Count Seven. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Rauch. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Brevard County Man Sentenced to Six Years in Federal Prison for Drug TraffickingRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Leslie Duppins, Jr. (40, Brevard County) to five years in federal prison for possession with the intent to distribute fentanyl. The court also ordered Duppins to an additional 12 months’ imprisonment, to run consecutively, for violating his supervised release conditions by committing the drug offense and driving recklessly. Duppins had pleaded guilty on June 13, 2023.
According to court documents, a deputy from the Brevard County Sheriff’s Office observed Duppins driving his vehicle recklessly. The deputy followed Duppins and was assisted by fellow deputies and a task force officer from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The officers tracked the vehicle to a gas station on Palm Bay Road in Melbourne. As the officers surveilled the vehicle, Duppins remained in the driver’s seat and did not exit the vehicle, but other individuals exited and entered the vehicle. Law enforcement officers subsequently conducted a traffic stop due to the reckless driving. While officers were approaching the vehicle, Duppins appeared to reach down towards his waist. Duppins was given several loud verbal commands to place his hands up. Duppins failed to comply, appeared to remove something near his waist, and reached into the rear passenger side of the vehicle.
Upon contact at the driver’s door, Duppins was asked to step out of the vehicle and was placed under arrest for reckless driving. During a search of the vehicle, the officers located a clear bag containing a blue powdery substance on the rear passenger floorboard. The substance, later tested and weighed by a Drug Enforcement Administration laboratory, weighed approximately 114 grams and tested positive for fentanyl.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys John M. Gardella and Michael Sartoian.
Boston Man Sentenced for Defrauding Victims of More Than $1 Million Using Various Online ScamsRead the Press Release
BOSTON – A Boston man was sentenced today in connection with his role in expansive online fraud schemes targeting individuals in the United States, including romance and advance fee schemes. In total, approximately 30 victims lost more than $1.3 million as a result of the schemes.
Kelechi Collins Umeh, 40, of Boston and formerly of Quincy, was sentenced by U.S. Senior District Judge William G. Young to 40 months in prison and two years of supervised release. Umeh was also ordered to pay restitution of $878,652. In January 2023, Umeh pleaded guilty to one count of bank fraud conspiracy.
Umeh participated in a series of online scams – including romance and advance fee schemes – designed to defraud victims into sending money to accounts controlled by him and his co-conspirators. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. Advance fee scams occur when a criminal asks a victim to pay a fee up front – usually described as a fee, tax, or commission – in order to obtain a bigger payout later, but that payout never occurs.
Umeh used fake passports in the names of numerous aliases to open bank accounts in and around Boston to collect and launder the proceeds of the online scams. Umeh and co-conspirators then rapidly executed large cash withdrawals from those accounts, often within days of the deposit and generally structured in amounts less than $10,000, in an effort to evade detection and currency transaction reporting requirements.Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Valuable assistance was provided by the U.S. Treasury Inspector General for Tax Administration and the U.S. Department of State’s Diplomatic Security Service. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Bluefield Man Pleads Guilty to Federal Fraud CrimeRead the Press Release
BLUEFIELD, W.Va. – Matthew Huffman, 37, of Bluefield, pleaded guilty today to theft or embezzlement in connection to healthcare services. Huffman admitted to stealing more than $45,000 from the Southern Highlands Community Mental Health Center while employed as its chief substance use disorder officer.
According to court documents and statements made in court, between October 2022 and January 2023, Huffman embezzled money from Southern Highlands including more than $5,000 it received from the Comprehensive Opioid, Stimulant, and Substance Use Program (COSSUP). Southern Highlands is a non-profit medical treatment center that offers a variety of services including addiction treatment. COSSUP grants are distributed, in part, to treat and support those impacted by illicit substance use and misuse.
Huffman admitted that he forged signatures required to approve the use of COSSUP grants and other funds, and also used the names of patients and consumers no longer receiving services from Southern Highlands on the necessary forms. Huffman further admitted that he embezzled these funds for his personal gain, using the money to pay his utility bills, vehicle loan payments and to purchase gift cards and prepaid debit cards.
Huffman is scheduled to be sentenced on February 5, 2024, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Huffman also owes $45,258.51 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Mercer County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Owen Reynolds and Andrew D. Isabell are prosecuting 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. 1:23-cr-137.
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Armed Career Criminal Sentenced to More than 15 Years in Prison for Illegal Gun PossessionRead the Press Release
NEW BERN, N.C. – A Raleigh man with two prior federal convictions was sentenced as an armed career criminal offender today for possession of a firearm by a felon. Donald Melvin, age 52, was sentenced to 188 months in prison followed by five years of supervised release. On March 9, 2023, Melvin pled guilty to the charge. Melvin’s previous convictions for drug trafficking and breaking and entering qualified him as an armed career criminal.
According to court documents and other information presented in court, Melvin, 52, was living at an apartment in Raleigh on January 6, 2022, when Raleigh Police Department (RPD) attempted to serve an outstanding arrest warrant. Melvin initially lied about his identity. However, RPD officers were able to confirm his identity and took him into custody after Melvin attempted to flee. Melvin was carrying a loaded 9mm gun, and a search of his apartment revealed four additional firearms, ammunition and a variety of narcotics including heroin, cocaine, fentanyl, and Phencyclidine. Firearms recovered at the apartment included a 9mm with an extended magazine, two 12-gauge shotguns and .243 caliber rifle,
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Raleigh Police Department investigated the case and Assistant U.S. Attorney Ashley Foxx prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.22-CR-00143-FL.
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30 September 2023
United States Settles Kickback Allegations with Specialty Pharmacy BioTek reMEDys, Inc., its Owner Chaitanya Gadde, and Dr. David TabbyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that BioTek reMEDys, Inc. (“BioTek”), located in New Castle, Delaware, and its Chief Executive Officer, Chaitanya Gadde, have agreed to pay $20 million based on BioTek’s ability to pay to resolve allegations that they violated the False Claims Act and the Anti-Kickback Statute by paying kickbacks to patients in the form of routinely waived copayments and to physicians in exchange for providing patient referrals to BioTek.
The government alleged that, from at least August 2015 through May 2020, BioTek, a specialty pharmacy that offers drugs and infusion services, routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large copays. Understanding that these copays could deter patients from purchasing its drugs and services, the government alleged that BioTek engaged in a scheme, orchestrated and implemented by Gadde and others, to routinely waive these copays – without regard for whether the patients were experiencing financial hardship – to ensure a steady revenue stream for BioTek.
Today’s settlement also resolves allegations that BioTek provided remuneration in the form of gifts, dinners, and free administrative and clinical support services, to physicians – in particular, Dr. David Tabby, who operated a neurology practice in Bala Cynwyd, Pennsylvania – to induce those physicians to refer patients to BioTek. The government also alleged that Dr. Tabby knowingly solicited and accepted this remuneration in exchange for referring numerous patients to BioTek. Dr. Tabby has paid $480,000 to settle these allegations, based on his ability to pay.
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copay requirements in the Medicare program in part to serve as a check on health care costs. The Federal Anti-Kickback Statute prohibits the offering, paying, soliciting, or accepting, directly or indirectly, any remuneration – which includes money or any other thing of value – to refer or arrange for the referral of items or services payable by any federal health care program. This prohibition extends to companies that routinely waive the copays of Medicare patients without determination of financial need. The Anti-Kickback Statute also extends to the payment of remuneration to physicians in exchange for patient referrals.
“BioTek allegedly provided improper physician inducements and covered up kickbacks for patient referrals by waiving co-pays,” said United States Attorney Jacqueline C. Romero. “These improper and corrupt business practices will not be tolerated in this District. Biotek’s alleged scheme, orchestrated and implemented by Gadde, Dr. Tabby, and others, to routinely waive these copays – without regard for whether the patients were experiencing financial hardship – ensured a steady revenue stream for BioTek and undermined patient care to citizens of this District. This Office will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.”
“Kickbacks impose hidden costs on the health care system and compromise medical decision-making,” said Maureen R. Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General. “Alongside our law enforcement partners, HHS-OIG is committed to safeguarding the integrity of federal health care programs by, in part, holding individuals who unlawfully bill the programs accountable for their actions."
“The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate healthcare fraud and protect TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service Northeast Field Office. “When health care companies pay physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Shantae M. Wyatt and Latoya Sparrow, former BioTek employees. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Wyatt and Sparrow will receive $4 million as their share of the settlement with BioTek and Gadde, and $91,200 as their share of the settlement with Dr. Tabby. The qui tam case is captioned United States of America ex rel. Wyatt et al. v. BioTek reMEDys, Inc., No. 19-6069 (E.D. Pa.). The relators are represented by David Bocian, Esq. and Asher Alavi, Esq. of Kessler Topaz Meltzer & Check, LLP.
The resolutions obtained in this matter were the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the United States Attorney’s Office for the Eastern District of Pennsylvania, the United States Attorney’s Office for the District of Delaware, the U.S. Department of Health and Human Services Office of the Inspector General, the Office of Inspector General for the Office of Personnel Management, and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
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 in the U.S. Attorney’s Office for the Eastern District of Pennsylvania by United States Attorney Jacqueline C. Romero, Deputy Chief Charlene Keller Fullmer, Assistant United States Attorney Judith Amorosa, and Auditor George Niedzwicki .
The claims asserted by the United States are allegations only and there has been no determination of liability.