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Wednesday 28 June 2023
U.S. Attorney Sellinger Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced criminal charges against three defendants in connection with health care fraud prosecuted in the District of New Jersey, part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges include the owner of a counseling center who filed false insurance claims and two men who pleaded guilty to their roles in a scheme to defraud Amtrak.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” Attorney General Merrick B. Garland said. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“Our health care system exists to provide people with access to the medical services and treatment they need, but it also is a target for criminals who see it as a lucrative source of money to be plundered through elaborate schemes,” U.S. Attorney Sellinger said. “Working with our law enforcement partners, we continue to make sure that the resources that people need will always be there, and those who seek to enrich themselves illegally will be brought to justice.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
The charges announced today by U.S. Attorney Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 90 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.6 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
Devon Burt and Hallum Gelzer
Devon Burt, 50, of Blue Bell, Pennsylvania, and Hallum Gelzer, 44, of Enola, Pennsylvania, each pleaded guilty before U.S. District Judge Madeline C. Arleo in Newark federal court to separate informations charging them with conspiracy to commit health care fraud and conspiracy to communicate extortionate threats.
According to documents filed in this case and statements made in court:
Burt, a former Amtrak employee, and Gelzer worked with health care providers to recruit Amtrak employees to participate in a health care fraud scheme through the offer of cash payments in exchange for the employees allowing health care providers to use their patient and insurance information to submit false claims. The health care providers benefitted from the scheme by receiving payments from the Amtrak health care plan for services that were never provided or that were medically unnecessary. Burt received cash payments from providers in return for allowing the providers to use his personal and insurance information, and that of his dependents, to submit fraudulent claims. Both Burt and Gelzer received cash payments from providers in return for recruiting others to participate in the scheme.
From April 2022 through June 2022, Burt and Gelzer conspired to communicate extortionate threats to a health care provider who participated in the scheme. Burt and Gelzer threatened the provider by interstate telephone calls and text messages, indicating that the provider would be injured if the provider did not pay Gelzer several thousand dollars.
In total, the Amtrak health care plan paid over $9 million as a result of claims associated with providers connected to the health care fraud scheme.
The charge of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The charge of conspiracy to communicate extortionate threats in interstate commerce carries a maximum penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. As part of their guilty pleas, Burt agreed to pay $959,072 in restitution, while Gelzer agreed to pay approximately $1.66 million restitution. Sentencing for Burt is scheduled for Nov. 16, 2023, and for Gelzer, Nov. 15, 2023.
U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York; and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit in Newark.
Maria P. Cosentino
Maria P. Cosentino, 60, of Garfield, New Jersey, is charged by complaint with four counts of health care fraud and one count of obstruction of justice. She made her initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in the case and statements made in court:
Cosentino, the owner of a Paramus, New Jersey counseling center providing counseling services and mental health treatment to children, families, couples, and adults, for years submitted false claims to private health insurance plans for counseling sessions that were never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment.
When law enforcement sought to interview individuals at Cosentino’s counseling practice about Cosentino’s conduct, Cosentino tried to persuade at least one employee to cover up her billing practices and to lie to law enforcement.
The charge of health care fraud is punishable by a maximum of 10 years in prison. The charge of obstructing justice is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud Unit in Newark.
The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the department’s website at LINK.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. Victims with questions about the cases charged by the U.S. Attorney’s Office may call 1-973-645-2700. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Breon Peace Announces Two Arrests in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
Today, United States Attorney Breon Peace announced criminal charges against two defendants in connection with alleged Medicare and Medicaid fraudulent billing schemes. The charges filed in federal court in Brooklyn are part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. Carlo Elomina Garcia, a licensed occupational therapist, and the owner of Carlo E. Garcia Occupational Therapy in Queens, was arrested and arraigned on June 26, 2023 and released on a $25,000 bond pending trial. Jian Ai Chen, a medical assistant and the owner of two pharmacies in Brooklyn, was arrested and arraigned on June 14, 2023 before Chief United States Magistrate Judge Lois Bloom and released on a $500,000 bond pending trial.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Christian J. Schrank, Deputy Inspector General for Investigations, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the arrests and charges.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” stated Attorney General Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
United States Attorney Peace stated, “As alleged, the defendants abused the trust placed in them by Medicare and Medicaid by falsely billing these essential programs for their own enrichment. This enforcement action demonstrates our continued commitment to vigorously prosecute healthcare providers who steal from taxpayer-funded programs intended to help those in need.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” stated Assistant Attorney General Polite. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“In both of these cases, the defendants are alleged to have submitted fraudulent claims to Medicare and Medicaid for services and prescription medicine that were not provided. Abuse of Medicare and Medicaid harms not only the programs but also the everyday people whose tax money is used to fund these healthcare programs. The actions announced today highlight the FBI New York’s commitment to ensuring that those willing to attempt to take advantage of taxpayer-funded healthcare programs are held accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
“Federal health care programs are designed to provide access to high quality care to patients nationwide. When bad actors attempt to exploit those measures for illicit financial gain, they put greed before the needs and safety of their patients, and take valuable resources away from their intended recipients,” stated HHS-OIG Deputy Inspector General Schrank. “As today’s enforcement action illustrates, HHS-OIG and our law enforcement partners are committed to defending the federal health care system against fraud.”
United States v. Carlo Elomina Garcia
As alleged in the criminal complaint, from May 2017 through June 2021, the defendant, through his company, billed Medicare and Medicaid for over $3.9 million in occupational therapy services and was paid over $1.6 million. Many of those services were not eligible for reimbursement, were not provided as billed or were not provided at all, including repeatedly billing for over 24 hours of one-on-one occupational therapy services in a single day.
The government’s case is being prosecuted by Assistant United States Attorney John Vagelatos.
United States v. Jian Ai Chen
As alleged in the indictment, As alleged in the indictment, Chen is charged with conspiracy to defraud in connection with a scheme to pay over $5 million in kickbacks to Medicare and Medicaid beneficiaries in exchange for bringing their prescriptions to AC Pharmacy Corp. and A Star Pharmacy Inc., which she owned. Chen agreed with others to submit false and fraudulent claims to Medicare and Medicaid plans for dispensing prescription medications that were induced by the payment of kickbacks and not actually dispensed. Chen’s pharmacies received approximately $101 million as a result of the scheme.
The government’s case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.
The arrests and charges announced today by U.S. Attorney Peace are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that included over $2.5 billion in alleged fraud. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting these cases, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of cases involved in today’s enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
The charges are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Health Care Fraud Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]
The Defendants:
CARLO ELOMINA GARCIA
Age: 51
Astoria, QueensE.D.N.Y. Docket No. 23-MJ-596
JIAN AI CHEN (also known as “Maggie”)
Age: 48
Syosset, New YorkE.D.N.Y. Docket No. 23-CR-255 (WFK)
U.S. Attorney Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
MIAMI – U.S. Attorney Markenzy Lapointe announced criminal charges against fourteen defendants in connection with over $1.9 billion in fraud prosecuted in the Southern District of Florida, as part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges stem from various schemes to defraud government and private health care benefit programs by submitting false claims for items and services that were not needed and, in many instances, never provided as well as a scheme to unlawfully distribute adulterated and misbranded prescription medications.
“The results of this nationwide coordinated law enforcement effort that we announce today exemplify our office’s ongoing commitment to prosecuting health care fraud-related schemes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to hold accountable those who exploit health care programs for personal profit in South Florida.”
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
The charges announced today by U.S. Attorney Lapointe are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
The Southern District of Florida, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region; FBI, Miami Field Office; the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; the Department of Defense Office of Inspector General (DOD OIG), Defense Criminal Investigative Service, Southeast Field Office, the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG), Southeast Field Office; IRS Criminal Investigation (IRS-CI), Miami Field Office; and the Office of Personnel Management, Office of Inspector General (OPM-OIG).
“Federal health care programs are designed to provide access to high quality care to patients nationwide. When bad actors attempt to exploit those measures for illicit financial gain, they put greed before the needs and safety of their patients, and take valuable resources away from their intended recipients,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “As today’s enforcement action illustrates, HHS-OIG and our law enforcement partners are committed to defending the federal health care system against fraud.”
“These cases serve to highlight the magnitude of health care fraud in South Florida, but unfortunately are only the tip of the iceberg,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami. “Our health care system is under constant attack by fraudsters who are driven by greed. They pilfer billions of dollars from Medicare and other health care benefit programs. The FBI, Health and Human Services Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, Department of Defense Office of Inspector General, the United States Attorney’s Office for the Southern District of Florida, and the Department of Justice devote considerable resources to investigate, arrest, and prosecute these criminals. We will not relent. But, we need the public’s assistance. Please report suspicious activity, inform your insurance company if you see charges on your explanation of benefits for services you did not receive and protect your insurance cards and other personally identifiable information.”
“The cases described in today's announcement reflect the FDIC OIG’s commitment to investigating allegations of fraud, including health care fraud schemes, that threaten to undermine the integrity of our Nation’s banking system,” said Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “We will continue to coordinate with our law enforcement partners to investigate such schemes, and are pleased to join them in announcing today’s enforcement action."
“This indictment is an important step in protecting federal health care programs from fraudulent billing and ensuring patients receive uncompromised care through the Department of Defense’s TRICARE Program,” stated Special Agent in Charge Darrin Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “We will continue to work closely with our law enforcement partners to hold health care fraudsters accountable and to protect patient health and safety.”
The following defendants have been charged in the Southern District of Florida:
In United States v. Rubier, Case No. 23-cr-80105, Yosbel Roque Rubier, 43, of Miami, Florida, was charged by indictment with health care fraud and aggravated identity theft in connection with an alleged scheme to defraud Medicare of approximately $900,000 for durable medical equipment (“DME”) that was never supplied to Medicare beneficiaries. As alleged in the indictment, Rubier was the owner and operator of FCM Supply LLC (“FCM”), a clinic in Greenacres, Florida, that purported to provide DME to eligible Medicare beneficiaries. In a four-month period, FCM submitted approximately $900,000 in allegedly fraudulent health care claims to Medicare for DME that FCM never provided, and that Medicare beneficiaries never requested or needed. To support these fraudulent claims, Rubier used stolen means of identification of medical providers. As a result, Medicare paid approximately $443,000 to FCM. FBI Miami and HHS-OIG Miami investigated the case. Assistant U.S. Attorney Shannon Shaw is prosecuting it.
In United States v. Cesar, Case No. 23-cr-20259, Tania Cesar, 55, of Hialeah, Florida, was charged by indictment with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the Indictment, Cesar was a licensed physical therapist assistant at Elite Therapy Group, Inc (“Elite Therapy”), a physical therapy clinic in Miami, Florida. Cesar signed patient therapy records misrepresenting that she had provided physical therapy to insurance beneficiaries, when in fact she had not. Cesar’s co-conspirators at Elite Therapy, who were convicted for the Elite Therapy conspiracy in United States v. Wated et al., Case No. 21-cr-20110-MGC, submitted millions of dollars in claims to BCBS for physical therapy that Cesar purported to provide, but never did. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In United States v. Bernal, Case No. 23-cr-20246, Arian Bernal, 43, of Hialeah, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the information, Bernal paid kickbacks to beneficiaries to recruit them to visit several Miami clinics so that his co-conspirators could submit claims to those beneficiaries’ ASO insurance plans managed by BCBS. Those claims fraudulently represented that various health care benefits and services were medically necessary and provided to patients. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In United States v. Perez, Case No. 23-cr-20269, Silvana Perez, 44, of Miami, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the information, Perez paid kickbacks to beneficiaries to recruit them to visit a sleep study clinic so that her co-conspirators could submit claims to those beneficiaries’ ASO insurance plans managed by BCBS. Those claims fraudulently represented that various health care benefits and services were medically necessary and provided to patients. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
In United States v. Gonzalez, et al., Case No. 23-20248, Ariel Gonzalez, 54, of Naples, Florida, and Linda Taylor, 55, of Miami, Florida, were charged for their roles in an alleged health care fraudulent billing scheme, along with several others who were previously charged in a separate Indictment and have since pleaded guilty. According to the Indictment, Gonzalez was one of the owners of Phoenix Rehab Center Corp., a physical therapy clinic based in Miami, that offered and paid kickbacks to patient recruiters, including Taylor, in exchange for referring beneficiaries of Administrative Services Only corporate insurance plans held by employers JetBlue Airways and AT&T Inc. and administered by Blue Cross Blue Shield to Phoenix Rehab for various forms of physical therapy treatments that they did not need and in many cases never received. The indictment further alleges that Gonzalez provided funding to Phoenix Rehab to further the fraud, including by taking out a loan to obtain sufficient cash to pay kickbacks to patient recruiters and beneficiaries. FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
In United States v. Gomez, Case No. 23-cr-20249, Carlos Jose Martin Gomez, 36, of Miami, Florida, was charged for his role in an alleged health care fraudulent billing conspiracy in conjunction with Arisleidys Fernandez Delmas, 32, of Miami, Florida and several others who were previously charged in separate indictments. The scheme involved several fraudulent physical therapy clinics that targeted Administrative Services Only corporate insurance plans held by employers JetBlue Airways, AT&T Inc., and TJX Companies Inc. and administered by Blue Cross Blue Shield. Martin Gomez was also charged with five substantive counts of health care fraud related to five clinics involved in the larger conspiracy. According to the indictment, Martin Gomez offered and paid kickbacks and bribes to patient recruiters for referring beneficiaries to the clinics and directly to beneficiaries of these insurance plans in exchange for allowing the clinics to bill these plans for various forms of physical therapy treatments purportedly provided to these beneficiaries that they did not need and in many cases never received. FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
In United States v. Lazo, Case No. 23-cr-20250, Adrian Lazo, 45, of Miami, Florida, was charged with laundering health care fraud proceeds by depositing a $3,303,974 check from the Center for Medicare and Medicaid Services to YG Medical Supplies Inc. in October 2021. The indictment alleges that Lazo conspired with others to deposit the check for the purpose of concealing, among other things, the nature, source, and ownership of those funds. HHS-OIG Miami, DOD-OIG, Southeast Field Office, FDIC-OIG, Atlanta Region, and HSI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
In United States v. Moreno, Case No. 23-cr-20266, Jesus Enrique Moreno, 48, of Miami, Florida, was charged by information with unlicensed money transmitting for transmitting health care fraud proceeds between December 2020 and February 2021. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Assistant U.S. Attorney Timothy J. Abraham is prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
In United States v. Blackman, et al., Case No. 23-cr-20271, Brett Blackman, 39, of Johnson County, Kansas, Gary Cox, 77, of Maricopa County, Arizona, and Gregory Schreck, 49, of Johnson County, Kansas, were charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements, in connection with the submission of $1.9 billion in false and fraudulent claims to Medicare and other government insurers for orthotic braces, prescription skin creams, and other items that were medically unnecessary and ineligible for Medicare reimbursement. As alleged in the indictment, Blackman, Cox, and Schreck owned, controlled, or operated DMERx, which was an internet-based platform that the defendants programmed to generate false and fraudulent doctors’ orders in exchange for illegal kickbacks and bribes. Cox was the CEO of the company that operated DMERx prior to a corporate acquisition, and Blackman was the CEO and Schreck a Vice President of the company that operated it after the acquisition. The defendants are alleged to have offered to connect pharmacies, durable medical equipment (“DME”) suppliers, and marketers to telemedicine companies who would accept illegal kickbacks and bribes in exchange for orders that were transmitted using the DMERx platform. The defendants allegedly received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid for them. The fraudulent orders and prescriptions generated by DMERx falsely represented that doctors had examined and treated the Medicare beneficiaries when in reality, purported telemedicine companies paid doctors to sign these orders and prescriptions without regard to medical necessity and based on a brief telephone call with the beneficiary or sometimes no interaction with the beneficiary at all. In order to conceal and disguise the scheme, and obstruct investigations by Medicare and its contractors, the defendants allegedly removed references to telemedicine in the orders. The DME supply companies and pharmacies that paid illegal kickbacks in exchange for these orders and prescriptions generated through DMERx billed Medicare more than $1,963,000,000 in false and fraudulent claims. HHS-OIG Miami, FBI Miami, VA-OIG, Southeast Field Office, IRS-CI Miami, HSI Miami, OPM-OIG, DOD OIG, Southeast Field Office, investigated the case. Trial Attorneys Darren C. Halverson of the National Rapid Response Strike Force and Andrea Savdie of the Miami Strike Force are prosecuting it. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
In United States v. Herrera, Case No. 23-cr-20264, Armando Herrera, 42, of Miami, Florida, was charged by information with one count of conspiracy to introduce adulterated and misbranded drugs into interstate commerce in connection with a nationwide scheme to unlawfully distribute adulterated and misbranded prescription medications, including HIV medications, valued at more than $16.7 million. As alleged in the information, Herrera and his co-conspirators illegally acquired these prescription medications through fraud or from individual patients for whom the prescription medications had been prescribed. The information alleges that these medications were then repackaged and resold with false labeling and documentation to conceal their true origin. It further alleges that, in some instances, the prescription medications Herrera distributed contained the wrong medication. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Trial Attorney Alexander Thor Pogozelski of the Miami Strike Force is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
In United States v. Vines, Case No. 23-cr-80107, Reginal N. Vines, 47, of Tuscaloosa, Alabama, was charged by indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and receiving health care kickbacks, in connection with his role in selling doctors’ orders for medically unnecessary genetic tests to several laboratories. Vines obtained the orders by paying kickbacks and bribes to a doctor in exchange for the doctor signing prescriptions for genetic tests, without ever meeting or treating the Medicare beneficiaries for whom the tests were orders. In some instances, Vines allegedly forged the doctor’s signature on the prescriptions. The indictment alleges that the laboratories billed Medicare approximately $10 million for medically unnecessary genetic tests, of which Medicare paid $2.9 million. HHS-OIG Miami and FBI Miami investigated the case. Trial Attorney Reginald Cuyler Jr. of the Miami Strike Force is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
In addition to the above defendants charged in the Southern District of Florida, a defendant was sentenced earlier this month to 15 years in federal prison in connection with a nationwide scheme to unlawfully distribute diverted, adulterated, and misbranded medications, including HIV drugs:
In United States v. Hernandez, Case No. 22-cr-60129, Lazaro Hernandez, 52, of Miami, Florida, was sentenced on June 15 to 15 years in prison after pleading guilty to conspiracy to defraud the United States and to introduce into interstate commerce adulterated and misbranded drugs and conspiracy to commit money laundering, in connection with a nationwide scheme to unlawfully distribute more than $230 million in diverted, adulterated, and misbranded medications, including HIV drugs. According to court documents, Hernandez and his co-conspirators illegally acquired large quantities of prescription drugs from patients for whom the drugs had been prescribed but intentionally not consumed. Hernandez and his co-conspirators then sold the diverted drugs to pharmacies across the country. The diverted drugs were accompanied by false pedigrees to conceal their true origin. In at least several instances, the diverted HIV medication that Hernandez sold consisted of bottles containing the wrong medication, broken pills, and even pebbles, leading to complaints by pharmacies. Hernandez and his co-conspirators then laundered the proceeds of these illegal sales. Hernandez also used his share of the proceeds to purchase luxury goods, including a $280,000 Lamborghini, a $220,000 Mercedes, and three boats. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Assistant U.S. Attorney Timothy J. Abraham and Trial Attorney Alexander Thor Pogozelski of the Miami Strike Force prosecuted it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. Victims with questions about the cases charged by the U.S. Attorney’s Office may contact [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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U.S. Attorney Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
SAVANNAH, Ga. – Criminal charges have been filed in the Southern District of Georgia against a Florida man as part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“In collaboration with our law enforcement partners, we are committed to protecting the integrity of our nation’s health care system and medical safety net programs from those who would exploit them for profit,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.
The charges announced during the 2023 National Health Care Fraud Enforcement Action are part of a strategically coordinated, two-week nationwide law enforcement sweep that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of more than $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
In the Southern District of Georgia, Christopher Ciani, 40, of Land O’ Lakes, Fla., is charged via Information with one criminal count of Conspiracy. The information alleges that Ciani, in 2019, operated a company called Ciani Medical Solutions and conspired with others in a scheme targeted at the Medicare program. As alleged in the information, Ciani brokered relationships between laboratories and various marketing groups that recruited Medicare beneficiaries and sent doctors’ orders and specimens for genetic testing to the laboratories in exchange for approximately $1.4 million in illegal kickbacks and bribes. The case is being prosecuted by Acting Assistant Chief Brynn Schiess of the Dallas Strike Force and Assistant U.S. Attorney Ryan Grover of the Southern District of Georgia.
Criminal Informations contain only charges; defendants are presumed innocent unless and until proven guilty.
Descriptions of other cases involved in today’s enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Southern District of Georgia, Middle District of Florida, Southern District of Florida, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected].
U.S. Attorney Announces Participation in Coordinated National Health Care Fraud Enforcement ActionRead the Press Release
Louisville, KY – U.S. Attorney Michael A. Bennett announced criminal charges against four defendants in connection with two health care fraud and opioid abuse scheme cases prosecuted in the Western District of Kentucky, as part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges stem from pharmacy owners and employees taking opioids from their pharmacies and distributing the drugs on the street and, in some instances, billing insurance fraudulently.
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who exploit health care benefit programs and patients for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
The charges announced today by U.S. Attorney Bennett are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 individuals for their alleged participation in health care fraud and opioid abuse schemes that resulted in over $2.5 billion in alleged fraud. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.
In the Western District of Kentucky, two separate cases were charged on June 14, 2023, and June 26, 2023. The charges included conspiracy to commit theft of medical products, conspiracy to unlawfully distribute controlled substances, health care fraud, aggravated identity theft, and making a false writing.
Specifically, in United Stated v. Joseph and Jenifer Huff, pharmacist Joseph Patrick Huff, 44, and Jenifer Huff, 44, of Bowling Green, Kentucky, were charged by superseding indictment on June 14, 2023, with one count of conspiracy to commit theft of medical products, one count of conspiracy to unlawfully distribute controlled substances, six counts of health care fraud-Adderall fraud, four counts of health care fraud-Eliquis fraud, two counts of health care fraud-Nicotrol and Linzess fraud, one count aggravated identity theft, and one count of making a false writing. The indictment charges the Huffs with conspiring to take, carry away, and conceal and knowingly possess, transport and traffic a pre-retail medical product, namely oxycodone and hydrocodone, with a value over $5000, and conspiring to sell and trade the oxycodone and hydrocodone for marijuana, methamphetamine, and cocaine. Additionally, Joseph Huff is charged with falsely and fraudulently billing various health care benefit programs for Adderall XR to obtain a higher reimbursement rate. Joseph Huff also is charged with falsely and fraudulently billing commercial insurance for dispensing Eliquis to a patient when in fact the patient never received the Eliquis medication. In addition, Joseph Huff and Jenifer Huff are charged with falsely and fraudulently billing Kentucky Medicaid for prescriptions dispensed to Jenifer Huff when in fact no physician or nurse practitioner issued an order for the prescriptions. Joseph Huff is also charged with using the name and National Provider Identifier number of a physician without lawful authority when he billed Kentucky Medicaid for a prescription dispensed to Jenifer Huff. Finally, Joseph Huff is charged with filing a false DEA Form 106, reporting the theft of narcotics, which were not actually stolen.
In United States v. Stephen Troy Wilmoth and Ashley Ramsey-Wilmoth, Stephen Troy Wilmoth, 45, and pharmacy technician Ashley Ramsey-Wilmoth, 41, of Hodgenville, Kentucky, were charged by information on June 27, 2023, with one count of conspiracy to commit theft of medical products and one count of conspiracy to unlawfully distribute controlled substances. The information charges the Wilmoths with conspiring to take, carry away, and conceal and knowingly possess, transport and traffic a pre-retail medical product, namely oxycodone and hydrocodone, with a value over $5000, and conspiring to sell and trade the oxycodone and hydrocodone. Ashley Ramsey-Wilmoth, an employee of Century Medicines, a retail pharmacy in the supply chain for oxycodone and hydrocodone, took, carried away and concealed unopened bottles of oxycodone and hydrocodone from Century Medicines prior to the oxycodone and hydrocodone being made available for retail purchase by a consumer. She then provided the oxycodone and hydrocodone to her husband, Stephen Troy Wilmoth, to sell and distribute.
These cases are being investigated by the DEA, the Bowling Green/Warren County Drug Task Force, the Kentucky State Police, and the Warren County Sheriff’s Office with the assistance of the Kentucky Cabinet for Health and Family Services Office of Inspector General.
These cases are being prosecuted by Assistant U.S. Attorney Joe Ansari.
Principal Assistant Deputy Chief Jacob Foster and Acting Assistant Chief Rebecca Yuan of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section led and coordinated the enforcement action. The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting these cases, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of cases involved in today’s enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas, and for further information for victims about new federal charges in connection with the HIV scheme, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or 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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Two Men Sentenced in Large Drug Trafficking ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA — Gabriel L’Ambiance Ingram, 34, of Lancaster, and Carl Michael Mann, II, 41, of Rock Hill, were sentenced to federal prison for their involvement in a large-scale drug operation operating in Rock Hill and Charlotte, North Carolina. Ingram was sentenced to 260 months (21.66 years) and Mann was sentenced to 300 months (25 years) in federal prison after being convicted at trial.
Evidence presented during trial showed that the FBI and York County Multi-Jurisdictional Drug Enforcement Unit began to investigate a group of defendants who were obtaining large amounts of cocaine, methamphetamine, heroin, and marijuana from a distributor in Southern California. Based upon their investigation, the police were able to determine that members of the group were flying to California and having the drugs shipped back to the Rock Hill and Charlotte area. Based upon surveillance and other law enforcement techniques, the police learned that Darryl Hemphill was the leader of the group and helped introduce other members of the group to the California distributor. Later, the group began ordering fentanyl from California, which they used to make fentanyl-laced pills which were sold to users in Rock Hill, Greenville, Myrtle Beach, Charlotte, N.C., and Atlanta, Ga. Based upon their investigation, law enforcement showed that this group shipped more than 255 packages from California and distributed more than 5 kilograms of cocaine, 280 grams or more of crack cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, 1 kilogram or more of heroin, and more than 1000 grams of marijuana.
Evidence showed Mann was a member of the conspiracy and was involved in obtaining the pill press machines used by the conspirators, the dye, and stamps used to make the fentanyl-laced pills. Mann would also operate the pill press machines for members of the conspiracy at different locations in Rock Hill and Charlotte. He was paid by members of the conspiracy with some of the pills he made for them. He was convicted at trial of conspiracy to possess 500 grams or more of cocaine, 500 grams or more of methamphetamine, 400 grams or more of fentanyl, and a quantity of heroin. Mann was also convicted of possession with the intent to distribute a quantity of crack cocaine found during a search of his home.
Evidence also showed Ingram was a mid-level dealer who purchased illegal drugs from Hemphill and other members of the conspiracy and sold them to lower-level dealers and users of the illegal substances. Ingram was convicted of conspiracy to possess 500 grams or more of cocaine, 28 grams or more of crack cocaine, and a quantity of heroin. Ingram was also convicted of three counts of being a felon in possession of a firearm, three counts of possession of a firearm in furtherance of a drug trafficking crime, and four counts of possession with the intent to distribute illegal substances to include heroin, cocaine, marijuana, and crack cocaine.
Eighteen defendants were initially charged in this case. Fifteen defendants pleaded guilty to their involvement while Mann, Ingram, and Darrell Crockett were found guilty by a jury.
United States District Judge Mary Geiger Lewis sentenced Mann to 300 months in prison and Ingram to 260 months in prison. Each will serve a term of court-ordered supervision following release from prison. There is no parole in the federal system.
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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Federal Bureau of Investigation, York County Multi-Jurisdictional Drug Enforcement Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service, Rock Hill Police Department, York County Sheriff’s Office, and Richland County Sheriff’s Department. Assistant U.S. Attorneys William K. Witherspoon, Elliott B. Daniels, Elle E. Klein, and Lamar Fyall prosecuted the case.
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Three Plead Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Fabio Lanzieri (61, Fort Lauderdale) has pleaded guilty to conspiracy to commit wire fraud. Lanzieri faces a maximum penalty of five years in federal prison and a fine of $250,000. A sentencing date has not yet been set.
Two others, James Council (55, Valrico, Florida) and Robert Ronzio (49, North Providence, Rhode Island) pleaded guilty earlier this year for their respective roles in the same conspiracy.
According to Lanzieri’s plea agreement and other court documents, Lanzieri and Council worked as sales and marketing consultants for Company 1, a wholly-owned Largo-based subsidiary of a larger pharmaceutical business that manufactured injectable medications. Lanzieri acted as Company 1’s president and was senior to Council. As a manufacturer and vendor of injectable medications, Company 1 had entered into an agreement with a group purchasing organization (“GPO-1”) to facilitate product sales.
A GPO is an entity that helps health care providers realize savings and efficiencies by aggregating purchasing volume and using that purchasing volume as leverage to negotiate pricing discounts with vendors that have entered into purchasing agreements with the GPO. The primary way a GPO makes its profit is via a percentage administrative fee charged against any sales made by the contracted vendors to GPO provider participants, which have correspondingly entered into participant agreements with the GPO. Thus, once a GPO has negotiated pricing discounts with a vendor, that vendor will forward the pricing discount information to health care product wholesalers that will pass the discounted rate on to the GPO’s participants.
The Company 1’s purchasing agreement with GPO-1 was materially altered by GPO-1 in the fall of 2019, resulting in GPO-1 provider participants no longer being eligible to receive pricing discounts on the purchase of certain Company 1 products from wholesalers. As a stopgap to maintain its provider customer base, Company 1 temporarily established competitive pricing discounts for the affected GPO-1 provider participants, thereby eliminating any immediate impact upon Company 1 customers.
Later, in January 2021, Lanzieri conspired with Council and Ronzio to create a non-operating shell GPO named Honoris Purchasing, LLC (“Honoris”) in Wyoming as a purported functioning GPO. Ronzio opened a bank account for the company. The conspirators then caused a purchasing agreement to be created and executed between Company 1 and Honoris—notwithstanding that Honoris, as a non-operating shell, had no knowing participants—that was backdated to in or around May 2020. Lanzieri and Council then fraudulently recategorized the Company 1 customers that had been GPO-1 participants as Honoris participants in internal and external wholesaler records, allowing the customers to continue purchasing via competitive pricing discount schedules as if the customers were actually participants of the non-operating shell Honoris.
Thereafter, Council, in his role as a sales and marketing consultant for Company 1, prepared monthly an administrative fee report for GPOs contracted with Company 1, including for purported GPO Honoris, which contained information related to the total dollar amount of Company 1 product sales made during the month to each GPO’s participants, including the participants that the conspirators had fraudulently categorized as Honoris participants. Council then forwarded the monthly administrative fee reports to the Company 1 accounting department, which, per normal operations, calculated and paid to the identified GPOs an approximate 3% administrative fee based upon the total dollar amount of Company 1 product sales to the participants of each GPO, including Honoris.
In all, the conspirators received at least $960,000 in fraud proceeds from the scheme. Pursuant to their respective plea agreements, each has agreed to pay restitution and to forfeit $320,000, the proceeds of the wire fraud conspiracy.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant. Assistant United States Attorney Suzanne Nebesky is handling the asset forfeiture aspect of this case.
Texas Man Sentenced for Conspiracy to Distribute DrugsRead the Press Release
United States Attorney Steven Russell announced that Jose Saul Delira, 49, of McAllen, Texas, was sentenced today by Senior United States District Judge John M. Gerrard to 17 years’ imprisonment for his involvement in a conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine mixture, 50 grams or more of actual (pure) methamphetamine, and unspecified amounts of cocaine and marijuana, with a prior serious drug felony conviction. Following his release from prison, Delira will serve 10 years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated between August of 2020 and February of 2021, Delira was a member of a conspiracy to obtain methamphetamine and other drugs in Mexico, Texas, and Arizona, for transport to the Lincoln, Nebraska, area for resale. Delira introduced Lincoln residents to drug sources in Mexico and assisted with efforts to transport drugs from source locations to Lincoln.
In November of 2020, Delira was staying in Lincoln at the residence of another person involved in the drug trafficking organization. A search warrant was executed at that residence. During the search, investigators found more than 1/3 of a pound of methamphetamine, approximately one ounce of cocaine, four pounds of marijuana, assorted pills, firearms, and drug packaging materials.
Delira had a prior conviction for conspiracy to distribute and possess with intent to distribute methamphetamine in the District of Nebraska. He was sentenced to 188 months in prison in that case in April of 2005.
Delira’s co-defendant, Richard Garza, is scheduled for trial in August of 2023.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Tampa Woman Sentenced to Prison for Distribution of Heroin and Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Jackylin Bonifacio (38, Tampa) to four years and nine months in federal prison for distribution of heroin and fentanyl resulting in death. Bonifacio had pleaded guilty on February 12, 2021. The court previously sentenced her codefendant, Leslie Pagan, to 20 years in prison for her role in the offense.
According to testimony and court documents, Pagan obtained heroin and fentanyl from a supplier and provided it to Bonifacio and other coconspirators, who in turn distributed the substances to individuals in Hillsborough County. On December 19, 2019, Bonifacio provided fentanyl to a Tampa woman who, believing it was heroin, ingested the fentanyl. The next morning, the woman was found dead in her home.
The Hillsborough County Sheriff’s Office investigated the overdose death and identified Bonifacio as the person who had distributed the fentanyl to the victim. On December 20, 2019, Bonifacio was arrested and found in possession of 25 baggies of fentanyl, packaged for distribution.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the victim died from ingestion of substances, including heroin and fentanyl. A toxicologist analyzed the baggies recovered from Bonifacio and residue from a syringe found near the victim at the time of the overdose and determined that they contained similar mixtures of fentanyl and Xylazine. Based on the circumstances of the death and the toxicology from the autopsy, the Medical Examiner’s Office determined that the use of the fentanyl caused the victim’s death.
A joint investigation led by the FBI identified Pagan as Bonifacio’s supplier. Pagan was arrested on September 1, 2020, and investigators recovered 97 grams of a mixture containing fentanyl, heroin, and Xylazine, and more than $105,000 from her residence.
This investigation is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Hillsborough County Medical Examiner’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Stroudsburg Woman and East Stroudsburg Man Charged with Making Straw Purchases of Fifteen FirearmsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Yesenia Ramos, age 43, of Stroudsburg, and Windall Mitchell, age 34, of East Stroudsburg, Pennsylvania, were charged on June 20, 2023, by a federal grand jury with multiple counts of making false statements to federally licensed firearms dealers.
According to United States Attorney Gerard M. Karam, Yesenia Ramos, age 43, of Stroudsburg, and Windall Mitchell, age 34, of East Stroudsburg, are charged with conspiring to provide false information to federally licensed firearms dealers regarding the purchases of fifteen firearms between May 15, 2021 and June 14, 2022, in Monroe County. The fifteen firearms were purchased from various federally licensed firearms dealers in Monroe County, including Dunkelberger’s Sports Outfitters in Stroudsburg and Brodheadsville, Pocono Mountain Firearms in Scotrun, The Gun Place in East Stroudsburg, and Lopez Firearms in Pocono Summit. The indictment also charges Ramos with fifteen substantive counts of making false statements to federally licensed firearms dealers, and charges Mitchell with being a convicted felon in possession of firearms.
The charge against the defendants resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for the offenses of making false statements to firearms dealers and for being a felon in possession of firearms is ten years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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State Inmate Sentenced to 15 Additional Months in Prison for Threatening Federal JudgeRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Curtis Brown (35, Indian River) to one year and three months in federal prison, to follow the completion of his 30-year state sentence, for threatening to kill a federal judge and his family, and mailing a threatening communication. Brown had pleaded guilty on December 27, 2022.
According to court documents, Brown sent a letter to a United States district judge threatening to kill him or his family. At the time, Brown was in the Florida State Prison in Raiford serving a state sentence. The envelope containing the letter was stamped with the phrase “Mailed From A State Correctional Institution.” The return address included Brown’s name, inmate number, and the address of the prison. The letter was addressed to the judge’s chambers and stated that it was sent in retaliation for the judge’s refusal to grant Brown’s requested relief. The letter stated that Brown would use his “federally funded stimulus” to hire someone to shoot the judge. Brown also said that if he could not get to the judge in time, he would settle for his “child, loved one, etc.” In a postscript in the letter, Brown further threatened the judge that if the judge told anyone about the letter, it would get worse for the judge. Brown’s name and inmate number were also included in the letter.
On December 3, 2021, upon receiving the letter, employees in the clerk’s office at the United States Courthouse in Tallahassee notified the United States Marshals Service (USMS). The USMS notified a Florida State Prison’s Security Threat Intelligence Officer about the letter. Upon further investigation, the handwriting on the letter was a presumptive match for Brown.
The Federal Bureau of Investigation then began investigating Brown and the letter. Agents discovered that Brown had been engaged in civil litigation in the Northern District of Florida. In July and August 2021, Brown filed an emergency motion for a preliminary injunction and an emergency civil rights complaint about his confinement that were referred to a magistrate judge. Following the referral, several proceedings occurred in which the magistrate judge sought to verify that Brown was the same individual that had previously filed a complaint or lawsuit about his confinement as Brown had not indicated in his filings that he had done so. Throughout the proceedings, Brown maintained that he had not filed a previous federal complaint or lawsuit. However, the magistrate judge concluded that Brown was being dishonest with the court. On November 4, 2021, the magistrate judge issued a report and recommended the dismissal of Brown’s case with prejudice considering “Brown’s pattern of perjury and willful abuse of the judicial process.” On November 19, 2021, the district court judge ordered the case dismissed with prejudice based on Brown’s “pattern of abuse of the judicial process” as an “appropriate sanction for [Brown’s] bad faith.” The judgment was entered on the same day. On November 30, 2021, Brown sent his letter in retaliation for the judge dismissing his case.
This case was investigated by the United States Marshals Service and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Kirwinn Mike and Ashley Washington.
St. Louis Woman Admits Defrauding Her 96-year-old Great-grandmotherRead the Press Release
ST. LOUIS – A woman from St. Louis, Missouri on Wednesday admitted defrauding her 96-year-old great-grandmother.
Alexis Butler, 35, waived her right to indictment by a grand jury and pleaded guilty in front of U.S. District Judge Stephen R. Clark to one felony count of bank fraud. Butler admitted that sometime before Dec. 2, 2022, she obtained the personal identifying information of her great-grandmother, as well as her account information at St. Louis Community Credit Union. She then obtained online access to the account.
On Dec. 2, 2022, she transferred $2,000 to someone else. The next day, she opened an account for herself at the credit union and began transferring her great-grandmother’s money to her account. Butler admitted as part of her guilty plea that from Dec. 2, 2022 to Jan. 19, 2023, she fraudulently withdrew $26,700 from her great-grandmother’s account. Butler re-deposited $7,500 into the account on January 6, however.
Both sides have agreed to recommend a sentence of three years in prison for Butler, and she will be ordered to repay the money.
The case was investigated by the U.S. Secret Service and the Pagedale Police Department. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Six People Indicted for Conspiracy to Commit Bank Fraud and Aggravated Identity TheftRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury today indicted six people on fraud charges, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and United States Secret Service Special Agent in Charge Patrick Davis.
A 10-count indictment filed in U.S. District Court charges Ionut Iamandita, 28, Milena Iamandita, 25, Elena Matei, 18, Florin Matei, 27, Larisa Iordache, 28, and Marius Iordache, 29, with conspiracy to commit bank fraud. Ionut Iamandita, Milena Iamandita, Elena Matei, Florin Matei, and Larisa Iordache were also charged with aggravated identity theft.
According to the indictment, from February 2023 to June 2023, the defendants participated in a conspiracy that used skimming devices and covert video cameras to steal Listerhill Credit Union and Avadian Credit Union customers’ account information. Conspirators then withdrew funds from ATMs using stolen account information.
The maximum penalty for conspiracy to commit bank fraud is 30 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.
The FBI and United States Secret Service investigated the case with assistance from the Lauderdale County’s Sherriff’s Office, Tuscaloosa County Sherriff’s Office, Hoover Police Department, and Vestavia Hills Police Department. Assistant U.S. Attorney John M. Hundscheid is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Sioux City Woman to Federal Prison for Meth ConspiracyRead the Press Release
Kailey Olson, 30, from Sioux City, Iowa, was sentenced June 27, 2023, in federal court in Sioux City, to 29 months’ imprisonment.
At the plea hearing on January 12, 2023, Olson admitted that from December 2020 through April 2021, she and others distributed more than 12 kilograms of methamphetamine in the Sioux City area. Olson was an interstate transporter of substantial quantities of methamphetamine and thousands of dollars in a Texas based methamphetamine distribution conspiracy that included the importation of liquid (for lab-based methamphetamine conversion) plus traditional vehicle transport of drugs from Texas to Iowa and bulk transport of money to Texas in payment for the drugs.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Olson was sentenced to 29 months’ imprisonment and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system. Olson remains in custody of the United States Marshal pending transportation to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4067. Follow us on Twitter @USAO_NDIA.
Repeat Offender Sentenced to 14 Years in PrisonRead the Press Release
HUNTSVILLE, Ala. – A federal judge today sentenced a convicted felon on drug and gun charges, announced U.S. Attorney Prim F. Escalona, U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Liles C. Burke sentenced Rayford Raymond Russell aka “Pete”, 74, of Rainsville, to 168 months in prison. In February, Russell pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine, attempt to possess with intent to distribute 50 grams or more of methamphetamine, use of a phone to facilitate a drug trafficking crime, and being a felon in possession of a firearm. Russell was on federal supervised release when he committed these crimes.
"Removing drivers of violent crime from our communities remains a high priority for our office and our law enforcement partners," U.S. Escalona said. "I am grateful for the hard work and cooperation that brought this repeat offender to justice."
“The U.S. Postal Inspection Service is committed to ensuring the U.S. Mails are not used as a tool to distribute narcotics to our communities,” said Scott Fix, U.S. Postal Inspector in Charge of the Houston Division. “The sentence handed down today should serve as a reminder to other perpetrators engaged in this type of criminal behavior that we will work closely with our law enforcement partners to bring them to justice. We extend our appreciation to ALEA, ATF, DeKalb County Sheriff’s Office, and Huntsville Police Department for their assistance with this investigation.”
“The ATF worked collaboratively and tirelessly with our local, state, and federal law enforcement partners to disrupt the illegal possession of firearms, distribution of narcotics, and other criminal acts that were committed,” ATF SAC Watson said. “The ATF will remain in lockstep with our local, state, and federal partners in our continuing effort to combat violent crime, maintain public safety, and remove criminals who continuously show total disregard for the law.”
According to the plea agreement, during the week of August 10, 2022, law enforcement investigated a series of suspicious packages being mailed to a residence in Flat Rock, Alabama. The package was intercepted by the U.S. Postal Service and contained approximately 10 pounds of methamphetamine. On August 12, 2022, a controlled delivery of the package was made to the intended residence owned by Cindy Franklin. Franklin was receiving packages for “Pete” and was compensated with money and marijuana for the packages she received. Between April 2021 and August 2022, approximately 350 pounds of methamphetamine and marijuana were mailed to Russell’s and Franklin’s residences. On August 12, 2022, Russell moved his firearms and ammunition to a residence in Dutton, Alabama. A search warrant was obtained for the residence. Law enforcement officers seized multiple firearms loaded with approximately 1,000 rounds of ammunition and other ammunition belonging to Russell.
On May 23, 2023, U.S. District Court Judge Liles C. Burke sentenced Cindy Land Franklin, 64, of Flat Rock, to 36 months in prison for use of a communication facility to facilitate a drug trafficking crime. Franklin pleaded guilty to the charge in February 2023.
In June 2010, Russell pleaded guilty in the U.S. District Court for the Northern District of Alabama to being a felon in possession of a firearm, conspiracy to distribute and possess with the intent to distribute a controlled substance, distribution, and possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and money laundering. In March 2011, Russell was sentenced to nine years in prison.
The USPIS and ATF investigated the case along with the Alabama Law Enforcement Agency, Huntsville Police Department and DeKalb County Sheriff’s Office. Assistant U.S. Attorney Russell E. Penfield prosecuted the case.
Registered Sex Offender Pleads Guilty to Charges of Enticement, Attempted Transfer of Obscene Material to a MinorRead the Press Release
PROVIDENCE – A Waterbury, CT sex offender admitted to a federal judge in U.S. District Court in Providence, RI, that in March 2019, he engaged in a series of sexually explicit online communications with a person he believed to be a 13-year-old girl living in Rhode Island; that he attempted to arrange a meeting with the girl to engage in sexual acts; and that he sent obscene materials to the person with whom he was communicating, announced United States Attorney Zachary A. Cunha.
Jesus Maldonado, 59, pleaded guilty on June 27, 2023, to charges of attempted enticement of a minor to engage in sexual activity; attempted transfer of obscene material to a minor; and commission of a felony offense involving a minor when required to register as a sex offender.
In pleading guilty, Maldonado admitted that he engaged in a series of sexually explicit text message conversations with a person whom he believed to be “Jeni,” a 13-year-old girl living in Rhode Island. During the communications, he knowingly sent “Jeni” sexually explicit images and attempted to persuade her to engage in sexual activity. The person with whom he was communicating was, in fact, an undercover law enforcement officer assigned to the Rhode Island State Police Internet Crimes Against Children Task Force, and a Task Force Officer with Homeland Security Investigations.
According to court records, at the time Maldonado engaged the illicit conduct with “Jeni,” he had previously been convicted in two different cases of sexual contact offenses with female children and, as a result, was a registered sex offender, as required by law.
Maldonado is scheduled to be sentenced on September 26, 2023. The defendant’s sentence will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorneys Denise M. Barton and Stacey A. Erickson.
The matter was investigated by the Rhode Island State Police ICAC, the Rhode Island State Police Computer Crimes Unit, and the United States Department of Homeland Security, Homeland Security Investigations (HSI) Office.
United States Attorney Cunha thanks the United States Attorney’s Office for the District of Connecticut, and HSI, New Haven, CT., for their assistance.
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Queens Man Pleads Guilty to Smuggling SnakesRead the Press Release
ALBANY, NEW YORK – Calvin Bautista, age 37, of Richmond Hill, New York, pled guilty today to smuggling three Burmese pythons into the United States at the Champlain Port of Entry.
United States Attorney Carla B. Freedman and Ryan Noel, Regional Special Agent in Charge, U.S. Fish and Wildlife Service, Office of Law Enforcement, made the announcement.
Bautista admitted that on July 15, 2018, he smuggled the three snakes in his pants as he rode on a bus that crossed the U.S.-Canadian border at the Champlain Port of Entry. Customs and Border Protection (CBP) Officers discovered the snakes while reviewing Bautista’s passport and conducting a border search. The young adult snakes were in bags attached to Bautista’s pants near his inner thigh.
Bautista did not obtain the permits required to import these snakes. As their name suggests, Burmese pythons are not native to North America, and are an invasive species.
Sentencing is scheduled for October 26, 2023, before Senior United States District Judge Lawrence E. Kahn. Bautista faces a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The U.S. Fish & Wildlife Service and CBP investigated this case, and Assistant U.S. Attorney Alexander P. Wentworth-Ping is prosecuting this case.
Pittsburgh Resident Indicted on a Charge Relating to Social Security FraudRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge relating to Social Security Fraud, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Susan Mentser, age 70, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, from in and around June 2018, through in and around March 2020, Mentser stole and converted approximately $21,483.00 in Supplemental Security Income benefits, which had been deposited into her deceased mother’s bank account, to which Mentser knew she was not entitled.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Social Security Administration Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Picayune Man Sentenced to over 11 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Picayune man was sentenced to 135 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Eric Renard Scott, 39, was sentenced in U.S. District Court in Gulfport. According to court records, in 2015, an investigation began into a large-scale drug trafficking organization located largely in Picayune, MS (Pearl River County). In 2018, Eric Renard Scott and two others were identified as being part of the conspiracy. Federal agents used a confidential source to begin making purchases of meth. On October 24, 2018, a DEA confidential source purchased 27.9g of actual meth at 99% purity from Eric Renard Scott and two of his co-conspirators in Picayune.
Scott was charged in a federal criminal indictment on September 7, 2022 and he pled guilty on February 13, 2023 to conspiracy to possess with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Erica Rose.
The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Permanent Injunction Imposed on Online Education Platform Company Edmodo, LLC for Alleged Violations of Children’s Privacy LawRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced that Edmodo, LLC (Edmodo) has agreed to a permanent injunction and a $6 million civil penalty in connection with its online educational platform, as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule), and the Federal Trade Commission Act. The civil penalty is suspended due to Edmodo’s inability to pay.
The Edmodo educational platform, sold to schools throughout the United States, enabled teachers to interface with students, including children under 13 years old, to host virtual class spaces, conduct discussions, share materials, make assignments, and provide quizzes and grades, among other things. In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that, until approximately September 2022, Edmodo collected the personal information of children under 13, including their names, email addresses, phone numbers, device information, and IP addresses. Edmodo allegedly collected such information without providing notice to the children’s parents or obtaining parental authorization to collect such personal information, as required by the COPPA Rule, and used this personal information to enable third-parties to display targeted advertising to student users between 2018 and September 2022.
The complaint further asserts that Edmodo was retaining this personal information indefinitely. As of March 2020, Edmodo retained the personal information associated with approximately 36 million student accounts, of which only one million were actively using the platform. This indefinite retention violated COPPA’s requirement that an operator not retain personal information of children for longer than “reasonably necessary to fulfill the purpose for which [the information] was collected.”
The stipulated order, entered by the federal district court yesterday, enjoins Edmodo from collecting personal information from children in a manner that violates the COPPA Rule and prohibits Edmodo from retaining children’s personal information for longer than reasonably necessary to fulfill the purpose for which it was collected. The order also enjoins Edmodo from collecting more personal information than reasonably necessary for a child to participate in any activity offered on its service. It also requires Edmodo to destroy personal information improperly collected from children under age 13 and to comply with reporting, monitoring, and recordkeeping requirements. Edmodo is also subject to a civil penalty judgment of $6 million dollars, which is suspended due to Edmodo’s inability to pay.
“The Justice Department takes seriously its mission to protect the online privacy rights of children and their parents. This order spells out clearly to all online providers that it is unacceptable to collect children’s personal information without their parents’ consent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting against unauthorized online collection and retention of information, especially from children.”
“This order makes clear that ed tech providers cannot outsource compliance responsibilities to schools, or force students to choose between their privacy and education,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Other ed tech providers should carefully examine their practices to ensure they’re not compromising students’ privacy.”
“Children do not lose their privacy protections when they use the internet,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Congress and the FTC have established rules to govern websites and apps collecting and storing the personal information of children. The settlement being announced today demonstrates the Department of Justice’s resolve to enforce those rules. We will continue to work with our partners at the FTC to safeguard children’s online privacy.”
This matter was handled by Senior Trial Attorney James T. Nelson and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Vivian Wang for the Northern District of California, and Gorana Neskovic and Peder Magee of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Permanent Injunction Imposed on Online Education Platform Company Edmodo, LLC for Alleged Violations of Children’s Privacy LawRead the Press Release
SAN FRANCISCO – The Department of Justice, together with the Federal Trade Commission (FTC), today announced that Edmodo, LLC (Edmodo) has agreed to a permanent injunction and a $6 million civil penalty in connection with its online educational platform, as part of a settlement to resolve alleged violations of the Children’s Online Privacy Protection Act (COPPA), the Children’s Online Privacy Protection Rule (COPPA Rule), and the Federal Trade Commission Act. The civil penalty is suspended due to Edmodo’s inability to pay.
The Edmodo educational platform, sold to schools throughout the United States, enabled teachers to interface with students, including children under 13 years old, to host virtual class spaces, conduct discussions, share materials, make assignments, and provide quizzes and grades, among other things. In a complaint filed in the U.S. District Court for the Northern District of California, the government alleges that, until approximately September 2022, Edmodo collected the personal information of children under 13, including their names, email addresses, phone numbers, device information, and IP addresses. Edmodo allegedly collected such information without providing notice to the children’s parents or obtaining parental authorization to collect such personal information, as required by the COPPA Rule, and used this personal information to enable third-parties to display targeted advertising to student users between 2018 and September 2022.
The complaint further asserts that Edmodo was retaining this personal information indefinitely. As of March 2020, Edmodo retained the personal information associated with approximately 36 million student accounts, of which only one million were actively using the platform. This indefinite retention violated COPPA’s requirement that an operator not retain personal information of children for longer than “reasonably necessary to fulfill the purpose for which [the information] was collected.”
The stipulated order, entered by the federal district court yesterday, enjoins Edmodo from collecting personal information from children in a manner that violates the COPPA Rule and prohibits Edmodo from retaining children’s personal information for longer than reasonably necessary to fulfill the purpose for which it was collected. The order also enjoins Edmodo from collecting more personal information than reasonably necessary for a child to participate in any activity offered on its service. It also requires Edmodo to destroy personal information improperly collected from children under age 13 and to comply with reporting, monitoring, and recordkeeping requirements. Edmodo is also subject to a civil penalty judgment of $6 million dollars, which is suspended due to Edmodo’s inability to pay.
“Children do not lose their privacy protections when they use the internet,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Congress and the FTC have established rules to govern websites and apps collecting and storing the personal information of children. The settlement being announced today demonstrates the Department of Justice’s resolve to enforce those rules. We will continue to work with our partners at the FTC to safeguard children’s online privacy.”
“The Justice Department takes seriously its mission to protect the online privacy rights of children and their parents. This order spells out clearly to all online providers that it is unacceptable to collect children’s personal information without their parents’ consent,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting against unauthorized online collection and retention of information, especially from children.”
“This order makes clear that ed tech providers cannot outsource compliance responsibilities to schools, or force students to choose between their privacy and education,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Other ed tech providers should carefully examine their practices to ensure they’re not compromising students’ privacy.”
This matter was handled by Assistant U.S. Attorney Vivian Wang for the Northern District of California, Senior Trial Attorney James T. Nelson and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Gorana Neskovic and Peder Magee of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Okmulgee Resident Sentenced for Assault and Firearms CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lakota John Trumon Watson, age 23, of Okmulgee, Oklahoma, was sentenced for his role in a violent armed assault.
The federal district court sentenced Watson to 6 months imprisonment for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and 120 months imprisonment for one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. The sentences are ordered to run consecutively for a total of 126 months.
The charges arose from investigations by the Henryetta Police Department and the Federal Bureau of Investigation.
On January 20, 2022, Watson entered a guilty plea to both counts. On September 4, 2017, during an argument outside of a Henryetta residence, Watson pulled out a .22 Magnum revolver and shot the victim in the stomach. Multiple witnesses identified Watson as the shooter. The crimes occurred in within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
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. Watson will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence.
Assistant United States Attorney Benjamin D. Traster represented the United States at the sentencing hearing.
Oakland Motorist Charged with Being Felon in Possession of Ammunition After Firing Shots During I-580 Road Rage IncidentRead the Press Release
OAKLAND – Antoyne Terrell Bullock appeared today in United States District Court to face a federal charge that he possessed ammunition during a road rage incident on Interstate 580, announced United States Attorney Ismail J. Ramsey and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jennifer Cicolani. Bullock made his initial appearance today in United States District Court in Oakland before United States Chief Magistrate Judge Donna M. Ryu.
The charge was set out in a criminal complaint filed June 16, 2023, and unsealed in federal court today. The criminal complaint alleges the defendant, Bullock, 43, shot at a fellow motorist causing the motorist to lose control of their vehicle. Specifically, on May 25, 2023, the defendant, in his Ford SUV, sped up next to the driver of a Dodge truck, and while beside the Dodge, the defendant rolled down the rear back passenger window of his SUV and shot at the driver of the Dodge. The defendant struck the driver side window causing it to shatter.
The complaint further details, the driver of the Dodge ducked, while turning the steering wheel, causing his vehicle to collide with the defendant’s SUV. The SUV overturned, rolling over several times before coming to a stop on its roof. The defendant, and the female passenger, attempted to leave the scene of the accident when California Highway Patrol officers arrived. Upon canvasing the scene, officers recovered a P80 handgun and keys to the Ford SUV alongside the highway. When officers arrested the defendant, they recovered a loaded magazine in his pants pocket.
In sum, the complaint charges Bullock with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1). The statutory maximum for the charge for the violation is 10 years’ imprisonment, a maximum fine of $250,000, a maximum of 3 years’ supervised release, and a $100 special assessment. However, any sentence following a conviction would be imposed by a court only after considerations of the U.S. Sentencing Guidelines and the federal statue governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Bullock is scheduled to make his next federal court appearance on July 18, 2023, for a preliminary hearing and arraignment.
Assistant U.S. Attorney Kenneth Chambers is prosecuting the case with the assistance of Jasmine Sanders. The prosecution is the result of an investigation by ATF, California Highway Patrol, the Oakland Police Department, and the Alameda County Sheriff’s Office.
New Orleans Man Sentenced in Armed Bank Robbery, Hobbs Act Robbery CaseRead the Press Release
NEW ORLEANS, LOUISIANA – On June 27, 2023, New Orleans resident, DEVIN CHANEY (“CHANEY”), age 33, was sentenced by United States District Judge Greg G. Guidry to 188 months in prison, followed by 4 years of supervised release, announced United States Attorney Duane A. Evans. CHANEY had previously pled guilty to one count of Armed Bank Robbery in violation of Title 18, United States Code, Section 2113(a) and (d) (Count 9); and one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a) (Count 3). Judge Guidry also ordered CHANEY to pay restitution in the amount of $4,706.00, as well as a mandatory special assessment fee of $200.00.
CHANEY had been charged with committing five armed robberies in New Orleans during December 2021. He was also charged with possessing with intent to distribute cocaine. CHANEY admitted that on Christmas Eve 2021, he entered the Capital One Bank in New Orleans, presented a demand note to a teller and received money but was disappointed in the amount. CHANEY then approached a second teller, pointing a firearm, and received additional money before leaving the bank. In total, CHANEY robbed the Capital One Bank of approximately $2,506.00. Additionally, on December 12, 2021, CHANEY entered a Subway sandwich shop in New Orleans, pointed a firearm at the cashier, demanding money and received approximately $600.00.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation Violent Crimes Task Force and the New Orleans Police Department in investigating this matter. This case is being prosecuted by Assistant United States Attorney Brandon Long of the Financial Crimes Unit.
New London Man Sentenced to 40 Months in Federal Prison for Gun OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that SHAQUAN SAUNDERS, also known as “Sosa Da Billy,” 28, of Uncasville, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 40 months of imprisonment, followed by three years of supervised release, for unlawful possession of a firearm.
According to court documents and statements made in court, on August 7, 2020, New London Police officers investigating a string of shootings conducted a court-authorized search of a car that Saunders had occupied and recovered a loaded .45 caliber semi-automatic pistol, a spent .45 caliber shell casing, and a live .380 caliber round. Subsequent forensic analysis of the handgun revealed the presence of Saunders’ DNA, and additional analysis of the firearm and recovered shell casing via the National Integrated Ballistic Information Network (NIBIN) connected them to a shooting incident that occurred on Blydenburg Avenue in New London on August 5, 2020.
Saunders’ criminal history includes multiple felony convictions.
Saunders has been detained since September 21, 2020. On April 4, 2023, he pleaded guilty to possession of a firearm by a felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New London Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through the Justice’s Department’s Project Safe Neighborhoods (PSN) program
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
National Enforcement Action Results in 78 Individuals Charged for $2.5B in Health Care FraudRead the Press Release
The Justice Department, together with federal and state law enforcement partners, announced today a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that included over $2.5 billion in alleged fraud.
The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles, jewelry, and yachts. In connection with the enforcement action, the Department seized or restrained millions of dollars in cash, automobiles, and real estate.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“Health care fraud is a complex and ever-evolving threat that negatively impacts the American people,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s nationwide coordinated law enforcement action is a testament to the tenacity of the FBI and our partners, as well as our combined efforts to pursue anyone who conspires to exploit our health care system for financial gain.”
“Patients trust federal health care programs to provide high quality care. When bad actors steal from these programs, they hurt patients,” said Inspector General Christi A. Grimm of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG is dedicated to protecting federal health care programs and putting patients first. Thank you to our law enforcement partners, especially the Medicaid Fraud Control Units, that participated in this effort.”
“At the Drug Enforcement Administration (DEA), we are committed to protecting the safety and health of all Americans,” said DEA Administrator Anne Milgram. “When individuals divert addictive opioid medications for personal gain, they are knowingly putting Americans at risk, all too often causing harm and even death. DEA is committed to taking decisive action to hold accountable anyone who participates in these dangerous schemes.”
“The Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA) provides community health care to family members of our nation’s disabled or deceased veterans, and the defendants’ alleged criminal actions resulted in a multibillion-dollar fraud scheme that puts those benefits at risk and pilfers significant taxpayer funds,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG’s continued oversight of VA’s multiple healthcare programs, including CHAMPVA, is one of the agency’s highest priorities. We thank our outstanding law enforcement partners for their efforts in this investigation.”
Telemedicine Fraud
The enforcement action included charges against 11 defendants in connection with the submission of over $2 billion in fraudulent claims resulting from telemedicine schemes. In a case involving the alleged organizers of one of the largest health care fraud schemes ever prosecuted, an indictment in the Southern District of Florida alleges that the chief executive officer (CEO), former CEO, and Vice President of Business Development of purported software and services companies conspired to generate and sell templated doctors’ orders for orthotic braces and pain creams in exchange for kickbacks and bribes. The conspiracy allegedly resulted in the submission of $1.9 billion in false and fraudulent claims to Medicare and other government insurers for orthotic braces, prescription skin creams, and other items that were medically unnecessary and ineligible for Medicare reimbursement.
As part of the alleged conspiracy, individuals in a massive telemarketing operation, located in the United States and abroad, targeted the elderly and disabled with direct mail, television advertisements, and other forms of advertising to induce them to contact offshore boiler-rooms staffed by individuals who “up-sold” the elderly and disabled on unnecessary medical equipment and prescriptions. According to the indictment, the software platform that the defendants allegedly operated was actually a conduit for these telemarketers to coordinate the payment of illegal kickbacks and bribes to telemedicine companies to obtain doctors’ orders for Medicare beneficiaries. The defendants allegedly programmed the software platform to generate false and fraudulent orders for telemedicine practitioners to sign and obstruct Medicare investigations by concealing that the interactions with beneficiaries had occurred remotely using telemedicine. The program-generated orders falsified certifications that the telemedicine doctors had examined the beneficiaries in person, and falsified diagnostic testing that Medicare required for brace orders. After the original CEO sold the company in a corporate acquisition, the new corporate leadership allegedly chose to continue the pre-existing fraud scheme.
In another telemedicine fraud case, in the Eastern District of Washington, a licensed physician was charged for signing more than 2800 fraudulent orders for orthotic braces, including for patients whose limbs had already been amputated. As alleged, the physician took less than 40 seconds to review and sign each order.
The cases announced today build on earlier telemedicine enforcement actions involving over $10.1 billion in fraud. The April 2019 Operation Brace Yourself Telemedicine and Durable Medical Equipment Takedown alone resulted in an estimated cost avoidance of more than $1.9 billion in the amount Medicare paid for orthotic braces in the 20 months following that enforcement action, preserving the Medicare trust fund for necessary medical care.
Pharmaceutical Fraud
The enforcement action also included charges against 10 defendants in connection with the submission of over $370 million in fraudulent claims submitted in connection with prescription drugs. In one case announced today, the owner and corporate officer of a pharmaceutical wholesale distribution company was charged for an alleged $150 million fraud scheme in which the company purchased illegally diverted prescription HIV medication, and then marketed and resold the medication by falsely representing that the company acquired it through legitimate channels. The defendant allegedly purchased the diverted medication at a substantial discount from individuals who obtained the drugs primarily through illegal “buyback” schemes in which they paid HIV patients cash for their expensive HIV medication and repackaged those pills for resale. To cover up their scheme, the defendant and others falsified labeling and product tracing documentation to make it appear legitimate. Pharmacies purchased the misbranded medications, dispensed them to patients, and billed them to health care benefit programs, all while the defendants reaped substantial illegal profits.
In a related case, on June 15, an individual in the Southern District of Florida was sentenced to 15 years in prison for his role in this nationwide scheme. According to court documents, the defendant illegally acquired large quantities of prescription drugs from patients for whom the drugs had been prescribed but not yet consumed. The defendant and others then repackaged the drugs and sold them to wholesale companies. In some instances, the medication that the defendant sold contained the wrong medication, broken pills, and even pebbles, leading to complaints by pharmacies. The defendant used his share of the proceeds to purchase luxury goods, including a $280,000 Lamborghini, a $220,000 Mercedes, and three boats.
Opioid Distribution and Other Types of Health Care Fraud
The charges also targeted over $150 million in false billings submitted in connection with other types of health care fraud, including the illegal distribution of opioids and clinical laboratory testing fraud. Today’s enforcement action includes charges against 24 physicians and other licensed medical professionals who lined their own pockets, including doctors who allegedly put their patients at risk by illegally providing them with opioids they did not need. The charges also include cases where healthcare companies, physicians, and other providers paid cash kickbacks to patient recruiters and beneficiaries in return for patient information, so that the providers could submit fraudulent bills for Medicare reimbursement.
The Center for Program Integrity of the Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions in the last six months against 90 medical providers for their alleged involvement in health care fraud.
Principal Assistant Deputy Chief Jacob Foster and Acting Assistant Chief Rebecca Yuan of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section led and coordinated today’s enforcement action. The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting these cases, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of cases involved in today’s enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-case-summaries.
In addition to the FBI, HHS-OIG, DEA, and CMS/CPI, State Medicaid Fraud Control Units, HSI, FDA, IRS-CI, VA-OIG, USPS-OIG, FDIC-OIG, OPM-OIG, Amtrak-OIG, and other federal and state law enforcement agencies participated in the operation.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas, and for further information for victims about new federal charges in connection with the HIV scheme, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Enforcement Action Results in 78 Individuals Charged for $2.5B in Health Care FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans, the Department of Justice, together with federal and state law enforcement partners, today announced a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that included over $2.5 billion in alleged fraud.
The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles, jewelry, and yachts. In connection with the enforcement action, the Department seized or restrained millions of dollars in cash, automobiles, and real estate.
“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”
“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”
“Health care fraud is a complex and ever-evolving threat that negatively impacts the American people,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Today’s nationwide coordinated law enforcement action is a testament to the tenacity of the FBI and our partners, as well as our combined efforts to pursue anyone who conspires to exploit our health care system for financial gain.”
In the Eastern District of Louisiana, Craig Lovelace, the owner and President of Advanced Medical Equipment Inc. (AME), a corporation doing business in Kenner, Louisiana, was charged on June 15, 2023 by bill of information with Health Care Fraud. AME operated as a durable medical equipment (DME) supply company that submitted claims to Medicare and Medicaid for DME supplied to beneficiaries. From approximately January 2016, and continuing through approximately 2022, Lovelace, through AME, allegedly executed a scheme to defraud Medicare and Medicaid by submitting, false and fraudulent claims for certain health care items purportedly supplied to beneficiaries. Such items, including DME, were alleged to be medically unnecessary, ineligible for Medicare reimbursement, or not provided as represented. Lovelace, in turn, used the fraudulent proceeds generated from this scheme for the benefit of himself and others.
Telemedicine Fraud
The enforcement action included charges against 11 defendants in connection with the submission of over $2 billion in fraudulent claims resulting from telemedicine schemes. In a case involving the alleged organizers of one of the largest health care fraud schemes ever prosecuted, an indictment in the Southern District of Florida alleges that the chief executive officer (CEO), former CEO, and Vice President of Business Development of purported software and services companies conspired to generate and sell templated doctors’ orders for orthotic braces and pain creams in exchange for kickbacks and bribes. The conspiracy allegedly resulted in the submission of $1.9 billion in false and fraudulent claims to Medicare and other government insurers for orthotic braces, prescription skin creams, and other items that were medically unnecessary and ineligible for Medicare reimbursement.
As part of the alleged conspiracy, individuals in a massive telemarketing operation, located in the United States and abroad, targeted the elderly and disabled with direct mail, television advertisements, and other forms of advertising to induce them to contact offshore boiler-rooms staffed by individuals who “up-sold” the elderly and disabled on unnecessary medical equipment and prescriptions. According to the indictment, the software platform that the defendants allegedly operated was actually a conduit for these telemarketers to coordinate the payment of illegal kickbacks and bribes to telemedicine companies to obtain doctors’ orders for Medicare beneficiaries. The defendants allegedly programmed the software platform to generate false and fraudulent orders for telemedicine practitioners to sign and obstruct Medicare investigations by concealing that the interactions with beneficiaries had occurred remotely using telemedicine. The program-generated orders falsified certifications that the telemedicine doctors had examined the beneficiaries in person, and falsified diagnostic testing that Medicare required for brace orders. After the original CEO sold the company in a corporate acquisition, the new corporate leadership allegedly chose to continue the pre-existing fraud scheme.
In another telemedicine fraud case, in the Eastern District of Washington, a licensed physician was charged for signing more than 2800 fraudulent orders for orthotic braces, including for patients whose limbs had already been amputated. As alleged, the physician took less than 40 seconds to review and sign each order.
The cases announced today build on earlier telemedicine enforcement actions involving over $10.1 billion in fraud. The April 2019 Operation Brace Yourself Telemedicine and Durable Medical Equipment Takedown alone resulted in an estimated cost avoidance of more than $1.9 billion in the amount Medicare paid for orthotic braces in the 20 months following that enforcement action, preserving the Medicare trust fund for necessary medical care.
“Patients trust federal health care programs to provide high quality care. When bad actors steal from these programs, they hurt patients,” said Inspector General Christi A. Grimm of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG is dedicated to protecting federal health care programs and putting patients first. Thank you to our law enforcement partners, especially the Medicaid Fraud Control Units, that participated in this effort.”
Pharmaceutical Fraud
The enforcement action also included charges against 10 defendants in connection with the submission of over $370 million in fraudulent claims submitted in connection with prescription drugs. In one case announced today, the owner and corporate officer of a pharmaceutical wholesale distribution company was charged for an alleged $150 million fraud scheme in which the company purchased illegally diverted prescription HIV medication, and then marketed and resold the medication by falsely representing that the company acquired it through legitimate channels. The defendant allegedly purchased the diverted medication at a substantial discount from individuals who obtained the drugs primarily through illegal “buyback” schemes in which they paid HIV patients cash for their expensive HIV medication and repackaged those pills for resale. To cover up their scheme, the defendant and others falsified labeling and product tracing documentation to make it appear legitimate. Pharmacies purchased the misbranded medications, dispensed them to patients, and billed them to health care benefit programs, all while the defendants reaped substantial illegal profits.
In a related case, on June 15, an individual in the Southern District of Florida was sentenced to 15 years in prison for his role in this nationwide scheme. According to court documents, the defendant illegally acquired large quantities of prescription drugs from patients for whom the drugs had been prescribed but not yet consumed. The defendant and others then repackaged the drugs and sold them to wholesale companies. In some instances, the medication that the defendant sold contained the wrong medication, broken pills, and even pebbles, leading to complaints by pharmacies. The defendant used his share of the proceeds to purchase luxury goods, including a $280,000 Lamborghini, a $220,000 Mercedes, and three boats.
Opioid Distribution and Other Types of Health Care Fraud
The charges also targeted over $150 million in false billings submitted in connection with other types of health care fraud, including the illegal distribution of opioids and clinical laboratory testing fraud. Today’s enforcement action includes charges against 24 physicians and other licensed medical professionals who lined their own pockets, including doctors who allegedly put their patients at risk by illegally providing them with opioids they did not need. The charges also include cases where healthcare companies, physicians, and other providers paid cash kickbacks to patient recruiters and beneficiaries in return for patient information, so that the providers could submit fraudulent bills for Medicare reimbursement.
“At DEA, we are committed to protecting the safety and health of all Americans,” said DEA Administrator Anne Milgram. “When individuals divert addictive opioid medications for personal gain, they are knowingly putting Americans at risk, all too often causing harm and even death. DEA is committed to taking decisive action to hold accountable anyone who participates in these dangerous schemes.”
“CHAMPVA provides community health care to family members of our nation’s disabled or deceased veterans, and the defendants’ alleged criminal actions resulted in a multibillion-dollar fraud scheme that puts those benefits at risk and pilfers significant taxpayer funds,” said Inspector General Michael J. Missal of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “The VA-OIG’s continued oversight of VA’s multiple healthcare programs, including CHAMPVA, is one of the agency’s highest priorities. We thank our outstanding law enforcement partners for their efforts in this investigation.”
The Center for Program Integrity of the Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions in the last six months against 90 medical providers for their alleged involvement in health care fraud.
Principal Assistant Deputy Chief Jacob Foster and Acting Assistant Chief Rebecca Yuan of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section led and coordinated today’s enforcement action. The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting these cases, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of cases involved in today’s enforcement action are available on the Department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.
In addition to the FBI, HHS-OIG, DEA, and CMS/CPI, State Medicaid Fraud Control Units, HSI, FDA, IRS-CI, VA-OIG, USPS-OIG, FDIC-OIG, OPM-OIG, Amtrak-OIG, and other federal and state law enforcement agencies participated in the operation.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas, and for further information for victims about new federal charges in connection with the HIV scheme, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.
A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Missouri Man Sentenced to 12 ½ Years in Prison for National Forest Arsons, Assault of Forest Service EmployeeRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Wednesday sentenced a man who committed arsons in the Mark Twain National Forest in Missouri and assaulted a U.S. Forest Service law enforcement officer to 12 and one-half years in prison.
Judge Limbaugh also ordered Lucas G. Henson, 37, of Iron County, Missouri, to pay the U.S. Forest Service about $7,200 for the cost of fighting the fires he set.
Henson was out on bond after being charged with stealing and drug offenses when he stole a Ford van on Oct. 22, 2022 near Poplar Bluff, Missouri. Henson abandoned the van when it ran out of gas. Later that day, he broke into a camper and stole items from it. The next day, he stole a Dodge pickup truck, then burglarized someone’s home and stole a Ruger LC9 9mm handgun. He stole a crossbow from a workshop near the home.
When the truck’s owner found Henson, Henson pointed the pistol at the truck’s owner and drove away. Law enforcement officers then joined the chase.
Henson crashed the truck in Mark Twain National Forest, then started a fire and burned the handgun and the items that he’d stolen from the camper before fleeing into the forest.
Officers began tracking Henson with dogs. When they got close, he started a fire to prevent being captured. He started a second fire when they approached him again. Later, he pointed the crossbow at a U.S. Forest Service law enforcement officer, as well as other officers, before fleeing again. Henson was eventually caught near the Black River.
The fires burned a total of 7.61 acres of land. Due to the dry and windy conditions at the time, Henson’s fires kept leaping over fire lines established by fire fighters. Crews eventually had to construct “dozer lines” to contain the fire.
Henson pleaded guilty in March to assaulting a law enforcement officer, arson and being a felon in possession of a firearm.
The case was investigated by the U.S. Forest Service, the Butler County Sheriff’s Office, the Wayne County Sheriff’s Office and the Missouri State Highway Patrol. Assistant U.S. Attorney Christopher Shelton prosecuted the case.
Minneapolis Felon Pleads Guilty to Two Violent CarjackingsRead the Press Release
MINNEAPOLIS – A Minneapolis felon has pleaded guilty to two counts of carjacking and one count of brandishing a firearm during and relation to a crime of violence, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s plea agreement and court documents, on January 30, 2023, in Little Canada, a Ramsey County Sheriff’s Deputy attempted to initiate a traffic stop on a Ford truck, which was later revealed to be stolen. The driver, Donovan Alan Goodman, 33, fled the deputy, driving in the wrong lanes of traffic, above posted speed limits, and evading stop sticks. Law enforcement officers ultimately disabled the vehicle. Goodman fled the vehicle and jumped over a barrier separating the east and west lanes on Interstate 694. He approached an uninvolved vehicle, which had stopped in the westbound lanes of Interstate 694, pointed a firearm at the vehicle and yelled, “Get the [expletive] out of the car.” Goodman then fled in the vehicle. The carjacked vehicle―which was subsequently recovered―had an installed dash camera that captured the entire incident.
On February 25, 2023, at approximately 4:23 a.m., officers with the Minneapolis Police Department attempted to conduct a traffic stop of a stolen vehicle parked in a parking lot. Goodman and another male, who were standing near the vehicle, immediately fled on foot and officers pursued. One officer deployed a taser to subdue Goodman, who initially fell to the ground, rolled over and then pointed a handgun with a red laser sight in the direction of the officer. The officer immediately took cover and Goodman escaped on foot.
Shortly thereafter, a carjacking victim flagged down responding law enforcement officers. He reported that he was an Uber driver who had just picked up two passengers in downtown Minneapolis when a man—later identified as Goodman—approached the vehicle and offered the occupants $100 to let him join the Uber ride. One of the occupants agreed and opened the door. Once inside the vehicle, Goodman pulled out the firearm with a red laser, pointed it at the back of the driver’s head, and ordered everyone out of the vehicle. The driver and the two occupants complied, and Goodman fled in the vehicle.
Later that day, after obtaining a search warrant for Goodman’s cell phone, law enforcement tracked Goodman to a residence in St. Paul. The St. Paul Police Department’s SWAT team executed a search warrant at the residence and, after law enforcement provided numerous loud commands for over an hour, Goodman exited the residence and was taken into custody.
Goodman pleaded guilty today, in U.S. District Court before Senior Judge Ann D. Montgomery to two counts of carjacking and one count of brandishing a firearm during and relation to a crime of violence. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the St. Paul Police Department, the Ramsey County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
Mexican National Sentenced to Five Years in Federal Prison for Role in Drug Trafficking Conspiracy and Money LaunderingRead the Press Release
DENVER -- The U.S. Attorney’s Office for the District of Colorado announces that Carlos Quijano-Ruiz, age 54, of Mexico, was sentenced to five years in federal prison for his role in a drug trafficking conspiracy and money laundering.
According to the plea agreement, in 2019, the defendant went to a money remitter in Colorado and remitted, in two separate transactions, money that was from the sale of drugs to a fictitious name in Mexico. That money would ultimately go to a co-defendant and was transferred or distributed to disguise the nature of the proceeds of unlawful activity. Additionally, in furtherance of the conspiracy, the defendant placed a bag of narcotics in his car that was parked in front of his residence. On August 12, 2019, another co-defendant and an unindicted co-conspirator went to the defendant’s car, where they picked up a quarter pound of methamphetamine and left money in the car. The defendant’s residence was also used as a stash house for a time during the conspiracy.
“Our office prosecutes illegal narcotics trafficking, working investigations to their sources in other countries,” said U.S. Attorney Cole Finegan. “We commend the work of our law enforcement partners in advancing this and other important transnational narcotics investigations.”
“By targeting the transactions drug traffickers use to finance their illegal operations, IRS-CI Special Agents are able to disrupt and dismantle these organizations,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “We will continue to work with our law enforcement partners, and the United States Attorney’s Office to eliminate this threat to our communities. This sentence should send a clear message to others who engage in money laundering associated with narcotics, you will be caught and you will be prosecuted.”
“Drug traffickers value money and little else,” said DEA Acting Special Agent in Charge David Olesky of the Rocky Mountain Field Division. “In this case, investigators not only pursued the drugs but also followed the money. As a result of everyone’s efforts, Quijano-Ruiz is no longer distributing poison in our communities. We value our state, local and federal partners who were relentless in seeing this case through to the end. DEA will continue to target criminal networks at every level, and every angle, because we know American lives depend on it.”
United States District Court Judge Gordon P. Gallagher presided over the sentencing on June 27, 2023.
IRS-CI, the DEA, the Montrose Police Department, the Montrose County Sheriff’s Office, the Seventh Judicial District Drug Task Force, and the United States Marshals Service investigated this case. Assistant United States Attorneys Alexander Duncan, Susan (Zeke) Knox, and Zachary Phillips handled the prosecution.
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 the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Case Number 19-cr-535
Mexican Man Sentenced for Drug and Firearm ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Jose Rumualdo-Gallardo, 31, of Mexico, was sentenced on June 26, 2023, in federal court in Omaha, Nebraska, for his involvement in a methamphetamine conspiracy and for possessing a firearm in furtherance of the drug conspiracy. United States District Judge Brian C. Buescher sentenced Rumualdo-Gallardo to 120 months’ imprisonment for the drug conspiracy and 60 months’ imprisonment for the firearm offense. The sentences are to run consecutive. Rumualdo-Gallardo also forfeited $2,527 in drug proceeds. There is no parole in the federal system. After his release from prison, Rumualdo-Gallardo will begin a five-year term of supervised release.
In February 2022, the Omaha Police Department arrested Michael Lee in possession of 44 grams of pure methamphetamine. Investigators were able to determine that the methamphetamine was obtained from Rumualdo-Gallardo. Investigators utilized a cooperating source and purchased 49 grams of pure methamphetamine on both February 22, 2022, and March 1, 2022. On March 8, 2022, a search warrant was executed on Rumualdo-Gallardo’s residence which resulted in the seizure of an additional 242 grams of methamphetamine, a Smith & Wesson 9mm handgun, and $2,527.
Michael Lee is set for sentencing on September 6, 2023.
This case was investigated primarily by the Omaha Police Department.
MediaMuv L.L.C. Principal Guilty of Stealing Millions in Music Royalties Sentenced to 70 MonthsRead the Press Release
PHOENIX, Ariz. – Jose Teran, 38, of Scottsdale, Arizona was sentenced on June 26, 2023, by United States District Judge Douglas L. Rayes to 70 months in prison for his part in one of the largest music-royalty frauds ever perpetrated.
Teran pleaded guilty to Conspiracy, Wire Fraud, and Transactional Money Laundering on February 3, 2023. Teran’s plea followed a November 6, 2021, indictment in which a federal grand jury charged him and his co-conspirator, Webster Batista, with 30 felony counts involving Conspiracy, Wire Fraud, Transactional Money Laundering, and Aggravated Identity Theft. In pleading guilty, Teran admitted to conspiring with Batista to monetize music on Y.T., which he had no lawful rights to monetize or otherwise control. Teran further admitted that he and Batista created the entity MediaMuv L.L.C. for the purpose of stealing royalty proceeds. In particular, Teran admitted that he and Batista falsely claimed to own, and thereby stole the royalty proceeds from, more than 50,000 song titles. In total, Teran and Batista received approximately $23,400,000 from their fraudulent scheme.
Batista pleaded guilty to Conspiracy and Wire Fraud in April 2022. He will be sentenced in August 2023.
Internal Revenue Service Criminal Investigation conducted the investigation in this case. Assistant United States Attorneys Raymond K. Woo and Seth T. Goertz, District of Arizona, Phoenix, are handling the prosecution.
If you believe you were defrauded by the defendants in this case, and would like further information, please visit: https://www.justice.gov/usao-az/programs/victim-notifications/US-v-Webster-Batista-Fernandez-et-al.
CASE NUMBER: CR-21-0955-PHX-DLR
RELEASE NUMBER: 2023-101_Teran# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Media Advisory – Press Conference: U.S. Attorney to Announce Multiple Indictments and Seizures as Part of Fayetteville Violent Crime and Drug StrategyRead the Press Release
FAYETTEVILLE, N.C. – United States Attorney Michael Easley, along with representatives from the Fayetteville Police Department, the Cumberland County Sheriff’s Office, the Cumberland County District Attorney’s Office, the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), will hold a press conference on Thursday, June 29th at 11:00 a.m. to announce multiple recent indictments and seizures as part of an ongoing violent crime and drug strategy in the Fayetteville area.
WHERE: Council Chambers in City Hall - 433 Hay Street, Fayetteville
WHEN: TOMORROW (THURSDAY) 11:00 a.m.
Media, please arrive by 10:30 a.m. for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail [email protected]. Please RSVP your intentions to attend the event.
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Manchester Man Pleads Guilty to Possessing with Intent to Distribute More Than 8 Pounds of CocaineRead the Press Release
CONCORD – A Manchester man pleaded guilty in federal court to possessing with intent to distribute controlled substances, U.S. Attorney Jane E. Young announces.
Bryam Toribio Frias, age 24, pleaded guilty to possessing with intent to distribute controlled substances, namely, cocaine. U.S. District Court Judge Samantha Elliott scheduled sentencing for October 10, 2023. The defendant was previously indicted on February 1, 2023.
On December 15, 2021, the defendant signed for and accepted a package addressed to him. A search revealed that the package contained over four kilograms of cocaine. The defendant was arrested shortly after he received the package. A later search of the defendant’s phone showed communications he sent about the package, and a search of his residence yielded additional cocaine in his bedroom.
The charging statute for the drug offense provides a sentence of up to 20 years in prison, a term of supervised release of at least three years, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The United States Postal Inspection Service led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Aaron Gingrande is prosecuting the case.
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Man Who Threatened Violent, Anti-Semitic Action Indicted by Grand JuryRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a grand jury returned an indictment against Seann Pietila, 19, of Pickford, Michigan for violent threats Pietila made online. Pietila allegedly communicated via Instagram about planning to commit acts of violence to kill other people. He also allegedly sent messages about neo-nazism, antisemitism, glorification of past mass shooters, and a desire and intent to mimic past mass shooters.
“No one should face violent threats because of their race, ethnicity, religion, or any other status,” said U.S. Attorney Mark Totten. “We have seen a rise in antisemitism across the nation and here in Michigan, and my office is committed to using all our powers to protect the public and ensure accountability.”
The indictment charges Pietila with three counts. The first two counts charge that he transmitted threatening communications in interstate commerce. The maximum penalty under that statute is five years in prison and a $250,000 fine. Pietila also faces one count of threat to kill or injure by means of fire, which is punishable by up to ten years of imprisonment and a $250,000 fine.
“The crimes alleged in this indictment have made members of our community feel unsafe as they practice their religion. No American should fear engaging in their constitutionally protected rights,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “I appreciate the coordinated efforts of our state and local law enforcement partners to disrupt this defendant before he could put his plans into action.”
The case is being prosecuted by Assistant U.S. Attorney Christopher O’Connor and investigated by the Federal Bureau of Investigation (FBI). The FBI was assisted by the Chippewa County Sheriff’s Office, TRI-County Drug Enforcement Team (TRIDENT), Upper Peninsula Substance Enforcement Team (UPSET), and Michigan State Police Emergency Services Team.
A copy of the indictment is attached. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Man Sentenced for Conspiracy to Smuggle Firearms from the United StatesRead the Press Release
TUCSON, Ariz. – Cesar Ignacio Perez-Barrios, 48, of Santa Cruz, Sonora, Mexico, was sentenced last week by United States District Judge Rosemary Márquez to 46 months in prison, followed by three years of supervised release. Perez-Barrios also was ordered to pay a $100 special assessment. Perez-Barrios pleaded guilty to Smuggling Goods from the United States.
On April 28, 2019, Perez-Barrios knowingly attempted to smuggle from the United States into Mexico: five AR-style upper receivers; five AR-style lower receivers; five AR-style barrels; five AR-style buffer tubes; five trigger kits; and five AR-style pistol grips. These items were concealed in a vehicle driven by a co-conspirator who then attempted to exit the United States into Mexico. Perez-Barrios expected to be paid for his role in the operation, whose purpose was to illegally smuggle the firearm parts into Mexico from the United States.
The firearm parts, whose transportation across the border was arranged by Perez-Barrios, are prohibited from being exported from the United States into Mexico without a valid license. Neither Perez-Barrios nor any of his associates had a valid license or any other lawful authority to export the items to Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorneys Brandon Bolling and Sandra M. Hansen, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-00944-RM-1
RELEASE NUMBER: 2023-099_Perez-Barrios# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Man Pleads Guilty to Multiple Child Exploitation OffensesRead the Press Release
A Maine man pleaded guilty today to sexual exploitation of children and distribution of a video depicting the sexual abuse of children.
According to court documents, Joseph Zoll, 63, of Sanford, used an online chat and webcam application from his home in Maine to direct an individual in the Philippines to live-stream a video of herself sexually abusing a prepubescent child. Zoll instructed this individual to, among other things, expose the child’s genitals to the camera for him to see and discussed with her his desire to sexually abuse the child. In another instance, Zoll sent this same individual a video depicting an adult woman sexually abusing a child who appeared to be approximately six to eight years old. Zoll communicated with this woman for over two years, during which time he repeatedly instructed her to live-stream video depictions of child sexual abuse. Video files found on electronic devices in Zoll’s home confirm that he had similar online relationships with multiple other individuals who, at Zoll’s direction would live-stream video depictions of themselves sexually abusing children for Zoll.
Zoll pleaded guilty to one count of sexual exploitation of children and one count of distribution of child pornography. He faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 50 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Darcie N. McElwee for the District of Maine, and Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New England made the announcement.
HSI New England is investigating the case.
Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Craig M. Wolff for the District of Maine are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Louisiana Man Charged with Using Chat Program to Entice MinorRead the Press Release
TRENTON, N.J. – A Louisiana man was charged with using an internet-based chat application to entice an adolescent to engage in prohibited sexual activity, interstate travel with the intent to engage in illicit sexual activity with a minor, and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.
Spencer W. Caudle, 34, of Prairieville, Louisiana, is charged by complaint with one count each of persuading, inducing, enticing, or coercing a minor through a facility of interstate commerce into prohibited sexual activity; interstate travel with the intent to engage in illicit conduct with a minor; and possession of child pornography. He appeared before U.S. Magistrate Rukhsanah L. Singh in Trenton federal court on June 27, 2023, and was detained.
According to documents filed in this case and statements made in court:
In April 2023, Caudle began interacting on online social media applications with the victim. Caudle’s communications with the victim were sexual in nature despite the victim informing Caudle the victim’s minor status. Caudle even expressed nervousness about being on the television show “To Catch a Predator,” but continued informing the victim of his desire to have sex with the victim. On May 26, 2023, Caudle drove from Louisiana to meet and have sex with the victim in Toms River, New Jersey. On May 27, 2023, Caudle, in fact, committed sexual acts on the victim. Later that night, Caudle left New Jersey to drive back to Louisiana.
Local law enforcement became aware of Caudle’s prohibited sexual activity with the victim and began an investigation. In June 2023, an undercover law enforcement officer assumed the victim’s online and cellular presence and communicated with Caudle. During these conversations, Caudle confirmed his prior sexual acts with the victim and expressed a desire for further sexual activity. While communicating with the undercover officer, Caudle made plans to fly to New Jersey on June 16, 2023, to commit additional sexual acts on the victim.
On June 16, 2023, Caudle flew from New Orleans, Louisiana to Newark Liberty International Airport. Law enforcement arrested Caudle in the airport. A search of a laptop Caudle brought to New Jersey revealed at least 10 images and five videos of child sexual abuse.
The charge of persuading, inducing, enticing, or coercing a minor into prohibited sexual activity through an internet-based chat application carries a minimum penalty of 10 years in prison and a maximum penalty of life in prison. The charge of interstate travel with the intent to engage in illicit conduct with a minor carries a maximum penalty of 30 years in prison. The charge of possession of child pornography carries a maximum penalty of 20 years in prison. Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Atlantic City, under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer; and the Toms River Police Department, under the direction of Police Chief Mitchell A. Little, with the investigation leading to the complaint.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
caudle.complaint.pdfLincoln Man Sentenced for Possessing with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Andrew Scott Lawrence, 42, of Lincoln, Nebraska, was sentenced on June 27, 2023, in federal court in Lincoln for possessing with intent to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced Lawrence to 15 years in prison. There is no parole in the federal system. After his release from prison, Lawrence will begin a 10-year term of supervised release.
On March 18, 2022, officers of the Lincoln Lancaster County Narcotics Task Force served a search warrant at Lawrence’s Lincoln residence. Lawrence was in a bathroom actively trying to dispose of methamphetamine down a shower drain and flush additional amounts down a toilet. Approximately 135 grams of methamphetamine were retrieved from the bathroom. Officers also found 434 grams of methamphetamine and $17,622 in a bedroom. As part of his guilty plea, Lawrence agreed the currency was proceeds from illegal drug sales or used to facilitate drug trafficking. The money has been forfeited.
This case was investigated by the Lincoln Lancaster County Narcotics Task Force
Leesburg, Georgia, Pair Plead Guilty in Armed Meth Trafficking CaseRead the Press Release
ALBANY, Ga. – Two Lee County, Georgia, residents have pleaded guilty to federal charges related to armed methamphetamine trafficking in the community.
Savanna Brook Fore, 23, of Leesburg, Georgia, pleaded guilty to one count of distribution of methamphetamine today. Fore faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine. Co-defendant Matthew Cory Tucker, 35, of Leesburg, pleaded guilty to one count of illegal possession of a firearm by a convicted felon on June 7. Tucker faces a maximum sentence of ten years in prison to be followed by three years of supervised release and a $250,000 fine. U.S. District Judge Leslie Gardner is presiding over this case. Sentencing for both defendants has not been scheduled.
“Repeat violent offenders and others committing crimes which threaten peace and safety in our communities will be held to account for their poor choices,” said U.S. Attorney Peter D. Leary. “Bringing armed drug traffickers and violent felons to justice is the result of the hard work and dedication of our local, state and federal law enforcement partners.”
“Poisonous drugs continue to flow into our communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “These individuals must now deal with the consequences of their actions.”
“These guilty pleas demonstrate our commitment to holding accountable those who engage in drug trafficking and jeopardize the safety of our communities. We commend the hard work and dedication of our local and federal law enforcement partners in bringing these offenders to justice,” said GBI Director Mike Register.
"It takes continuous and dedicated teamwork to remove repeat offenders from our streets and hold them accountable for their crimes. This case is another example of local, state and federal law enforcement working together to protect citizens," said Lee County Sheriff Reggie Rachals.
According to court documents, Lee County Sheriff’s Office (LCSO) deputies pulled over a truck driven by Fore at approximately 1:10 a.m. on June 2, 2022; Tucker was a passenger. Tucker was covered in blood and deputies spotted a firearm near the center console, along with drugs. Tucker was wanted for an alleged domestic assault that occurred earlier that night. Inside the truck, deputies found a .38 super caliber pistol and a .20-gauge shotgun that Tucker took from the domestic assault victim. Tucker has prior felony convictions in Lee County Superior Court, including aggravated assault and theft by taking. It is illegal for a convicted felon to possess firearms.
On the rear floorboard of the truck, deputies located a purple bookbag, which had another smaller red bag attached to it. Fore said they belonged to her; inside the bags deputies found 47 baggies filled with a total of 48 grams of methamphetamine, additional baggies containing a variety of illegal controlled substances and a digital scale. Fore had a firearm concealed in her waistband.
Released from jail on bond, deputies learned Fore was continuing to distribute narcotics at a local motel and a family home. GBI and DEA agents, working with a confidential information (CI), made three separate purchases of illegal drugs from Fore, including methamphetamine. Law enforcement executed a search warrant at Fore’s family home on Aug. 3, 2022, seizing her cell phone, which revealed conversations between Fore and others about drug deals.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by DEA, GBI, LCSO and the Leesburg Police Department.
Assistant U.S. Attorney Matt Redavid is prosecuting the case for the Government.
Large-Scale Cocaine Supplier Sentenced in Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Jamaican national was sentenced today to over six years in prison for conspiracy to distribute five kilograms or more of cocaine.
According to court documents, from January through December 2019, Caswell Richards, 56, regularly supplied kilograms of cocaine to distributors in the Washington D.C. metropolitan area. Over the course of the conspiracy, Richards distributed at least 15 kilograms of cocaine to his co-conspirators. He distributed cocaine in Maryland through a middleman, Hopeton Fletcher, 53, of Gaithersburg, Maryland. Richards insulated himself from law enforcement detection by arranging transactions with Fletcher, who would then communicate directly with cocaine distributor Simeon Orekoya, 50, of Washington, D.C.. Orekoya, who was supplied with cocaine by numerous individuals in addition to Richards, distributed cocaine in the Eastern District of Virginia, as well as other locations throughout the D.C. metropolitan area from January 2017 through December 2019.
Orekoya was sentenced on June 15, 2021, to 195 months of imprisonment for conspiracy to distribute cocaine and firearms trafficking. Fletcher was sentenced on April 19 to 42 months of imprisonment for his role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Sarah Linden, Acting Special Agent in Charge of the FBI Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Special Assistant U.S. Attorney Lauren Hahn and Assistant U.S. Attorney Bibeane Metsch prosecuted the case.
This effort is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organization that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-18.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
The Justice Department today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys (EOUSA).
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state, and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said EOUSA Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.”
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
WASHINGTON – The Justice Department today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places MMIP Assistant U.S. Attorneys (AUSA) and MMIP Coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people and provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP.
The Alaska U.S. Attorney’s Office received three AUSA positions and one Regional MMIP Coordinator. These AUSAs will prosecute violations of federal criminal law that occur in Indian country and help foster and improve relationships among federal, Tribal, state, and local partners. In addition, these AUSAs may participate in special district programs and initiatives designed to partner with and assist federally recognized Tribes in combatting emerging public safety issues.
“Our office is committed to combating violence in Alaska Native communities across the state and reducing the high rates of domestic violence, sexual assault, and trafficking in these communities. These resources are an essential part of that effort” said U.S. Attorney Lane Tucker.
The Alaska positions were allocated as part of the Justice Department’s effort to promote public safety in Indian Country. U.S. Attorney’s Offices with Indian Country were allocated a total of 39 AUSAs and 5 MMIP Coordinators dedicated to enhancing the capacity of U.S. Attorney’s office to promote public safety in Tribal communities and prioritize crime reduction.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
PHOENIX, Ariz. – The Department of Justice today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“Vindicating the rights of missing and murdered indigenous persons and their families is a top priority for our office,” said United States Attorney Gary Restaino. “As home to 22 federally-recognized tribes, this District has been thinking about — and working on — this issue for several years. It is a complex issue, with no easy solution. Hosting an MMIP coordinator for the Region will allow us to dedicate even more resources to this important issue.”
The MMIP regional outreach program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons also issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. "To that end, we will work together with all relevant federal, Tribal, state, and local law enforcement partners to locate missing persons and solve crimes where they have occurred," said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.”
More broadly, this MMIP program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voices of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
RELEASE NUMBER: 2023-098_MMIP Regional Outreach Program
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
ALBUQUERQUE, N.M. – Today, during the Not Invisible Act Commission’s public hearing hosted in Albuquerque, New Mexico, Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and the Department of Justice announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The District of New Mexico will receive one of five dedicated MMIP Assistant U.S. Attorneys which will provide specialized support to the New Mexico, Colorado, Utah, Nevada and Arizona.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“Together, we will meet the case of each missing and murdered indigenous person with urgency, transparency, and coordination,” said U.S. Attorney Alexander M.M. Uballez. “Everyone deserves to feel safe in their community and confident that law enforcement will be vigilant in the investigation of missing community members.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Tessa M. DuBerryU.S. Attorney Alexander M.M. Uballez announcing the MMIP Regional Outreach Program during opening remarks at the Not Invisible Act Commission hearing on June 28, 2023. U.S. Attorney Uballez is joined by Heidi Todacheene, Senior Advisor to the Secretary (left) and Elizabeth Hidalgo Reese, White House Senior Policy Advisor for Native Affairs (right).
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Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
WASHINGTON – The Department of Justice today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“I am excited about the support this program will provide in the prevention and response to missing or murdered indigenous people,” said U.S. Attorney Clinton Johnson. “The support will include assisting in the investigation of unresolved cases and related crimes. It will also promote enhanced communication, collaboration, and coordination among our federal, Tribal, state, and local law enforcement partners on this important issue.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred," said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
WASHINGTON—The Department of Justice announced Wednesday the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“We are pleased to join Attorney General Garland and other department leaders in making this important announcement. For years, supporting and enhancing public safety in Tribal communities has been a top priority for our office,” said Natalie Wight, U.S. Attorney for the District of Oregon. “We are eager to be among the districts leading the department’s efforts to prevent and respond to missing and murdered Indigenous people.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.”
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The Working Group includes at least one representative from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.
To learn more about the District of Oregon’s MMIP program, please visit https://www.justice.gov/usao-or/indian-country/mmip.html.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
SIOUX FALLS – The Department of Justice today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
U.S. Attorney Alison J. Ramsdell stated, “Year after year, the U.S. Attorney’s Office for the District South Dakota dedicates a significant portion of its resources to combatting crime and promoting public safety in Indian country. We are honored to have been selected as one of five districts to receive additional funding to hire an AUSA who will be specifically dedicated to MMIP matters. Given the urgency of the issue, we wasted no time in selecting an experienced attorney to serve in this capacity—Troy Morley, the District’s Tribal Liaison, will be the MMIP AUSA for the Great Plains Region.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys (EOUSA).
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state, and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said EOUSA Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.”
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a
comprehensive response to MMIP.Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
Program will place 10 new personnel in Five RegionsWASHINGTON – United States Attorney Vanessa R. Waldref announced today that the Justice Department will be creating a Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people. The Eastern District of Washington was one of the districts selected for a dedicated attorney, who will assist in this important role.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
U.S. Attorney Waldref stated, “The Tribal nations in the Eastern District of Washington frequently experience violent crime and domestic violence at rates that are higher than many other communities. As a result, parents, families, and even entire communities are mourning the loss of loved ones. The United States Attorney’s Office is committed to working closely with Tribal, federal, and state partners to combat the root causes of this crisis and holding those who perpetrate these crimes accountable.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“DOJ’s selection of the Eastern District of Washington for a dedicated attorney position demonstrates our District’s commitment to being a leader in addressing the MMIP crisis,” U.S. Attorney Waldref added. “Our office has a significant history of prosecuting homicide cases arising from violent crime on the Yakama Nation, as well as the Colville, Spokane, and Kalispel Reservations. These cases range from violent shootings to cold case murders. I am grateful for the tremendous work of the law enforcement agents and the prosecutors, who work tirelessly to bring justice to the victims of these terrible crimes.”
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
Program will place 10 new personnel in Five Regions, including the Great Lakes Region
GRAND RAPIDS – The Department of Justice today announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“My office is committed to strengthening the federal response to missing or murdered indigenous people and the many victims of violence in our tribal communities and the families that are affected,” said U.S. Attorney Mark Totten. “The Justice Department’s work to respond to the MMIP crisis is a whole-of-department effort that takes many forms. This new outreach program is another critical tool to help address the MMIP crisis by promoting and bettering communication, coordination, and collaboration among federal, Tribal, local, and state partners on a regional basis.”
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
The program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys. The MMIP Coordinator hosted by the Western District of Michigan will work with the MMIP AUSA assigned to the District of Minnesota.
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
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