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Thursday 8 December 2022
Convicted Felon Sentenced to Federal Prison for Illegal Possession of a Firearm and Violating his Federal Supervised ReleaseRead the Press Release
Jackson, TN – Lavokeous Ivory, 29, has been sentenced to seven years imprisonment for being a felon in possession of a firearm and violating his federal supervised release. United States Attorney Kevin G. Ritz announced the sentence today.
On August 6, 2021, officers with the Milan Police Department were dispatched to a residence for an unwanted person call. The caller advised dispatch that the suspect, Lavokeous Ivory, was beating on her windows and front door and demanding that she let him in. One of the responding officers saw a man walking near the home who matched the description of the suspect. After telling the officer his name, Ivory started walking away and then started running from the officer. Ivory ran around the house and the officer followed him on foot.
While running, a pistol dropped from Ivory's waistband. Ivory stopped to pick up the pistol, and then tried to throw it on the roof of the home. While throwing the gun, it discharged, and the bullet hit the side of the house. The officers then attempted to detain Ivory, and while doing so Ivory picked up the gun. After other officers arrived on the scene, Ivory dropped the gun and was arrested.
Ivory had been previously convicted of a felony and was on federal supervised release at the time of this offense for illegally possessing two firearms on separate dates in February 2016. As a result of his prior felony convictions, Ivory is prohibited by federal law from possessing firearms and ammunition.
On November 30, 2022, United States District Judge J. Daniel Breen sentenced Ivory to 70 months imprisonment for his illegal possession of a firearm on August 6, 2021, to be followed by three years of supervised release. Judge Breen also determined that Ivory violated the terms of his federal supervised release by illegally possessing the firearm and imposed a 14-month prison sentence in that case, to run consecutively to the 70-month sentence for a total of 84 months imprisonment. There is no parole in the federal system.
This case was investigated by the Milan Police Department and the ATF.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Josh Morrow, who prosecuted the case.
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For more information, please contact Public Information Officer Cherri Green at 901-544-4231 or [email protected]. Follow@WDTNNews on Twitter for office news and updates.
Central American Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced yesterday to over two months in federal prison.
Rigoberto Batz-Tinio, age 45, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after an October 17, 2022 guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Batz-Tinio admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Batz-Tinio was previously deported in March 2004. On September 16, 2022, immigration officials learned Batz-Tinio had illegally returned to the United States and found Batz-Tinio at the Allamakee County Jail following his conviction for operating a motor vehicle while intoxicated.
Batz-Tinio was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Batz-Tinio was sentenced to 76 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Batz-Tinio is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1033.
Follow us on Twitter @USAO_NDIA.
Career Criminal Sentenced to over 12 Years in Federal Prison for Illegal Gun Possession and Methamphetamine TraffickingRead the Press Release
EVANSVILLE – Luke Smith III, 48, of Evansville, Indiana, was sentenced to 151 months in federal prison after pleading guilty to possession of a firearm and ammunition by a prohibited person and possession with intent to distribute methamphetamine.
According to court documents and evidence introduced in court, on November 22, 2019, law enforcement officers learned that Smith was selling drugs, was just released from prison, and was known to carry a gun. Officers located Smith and initiated a traffic stop of his vehicle. Officers searched Smith’s vehicle and found a pill bottle in the middle console, which contained 2.5 grams of methamphetamine.
Officers continued to search Smith’s vehicle and found plastic wrap, baggies, several rounds of .380 and 9mm ammunition, and a 9mm pistol. Smith was searched and officers found a digital scale and a single round of 9mm ammunition on his person. During transport to the jail, Smith admitted to officers that they’d find his DNA on the firearm and that he handled the gun daily.
Smith has previous felony convictions in state court for battery resulting in bodily injury to a pregnant woman and robbery. Smith is prohibited from possessing firearms and ammunition by federal law due to his felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and the Evansville Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Smith be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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.
CEO of Raleigh Healthcare Company Sentenced to 80 Months in Prison for Multi-Million Dollar Healthcare FraudRead the Press Release
RALEIGH, N.C. – A Raleigh CEO will serve 80 months in prison for Healthcare Fraud.
Tanya Grant, 51, was sentenced today for a health care fraud scheme carried out between 2017 and 2021 through two companies she controlled – Carolina Rehab Products Inc. (CRP), also known as Atlantic Brace, in Raleigh; and Blue File DME, LLC (Blue File), in Dunn. These companies were licensed to supply durable medical equipment, such as neck and back braces, to Medicare beneficiaries. Grant pled guilty to the charge on July 6, 2022.
“This defendant was motivated by greed, scheming to steal millions in taxpayer dollars meant for senior citizens and the needy,” said U.S. Attorney Michael Easley. “She used her fraud to fuel her lavish lifestyle, including a vacation home, luxury cars, jewelry, and a boat. Health care fraud like this costs taxpayers billions of dollars each year. We will use every avenue to root it out and bring offenders to justice.”
To carry out the scheme and enrich herself, the investigation showed that Grant purchased lists of Medicare patient names from companies overseas. She then billed Medicare for purportedly supplying these patients with durable medical equipment. In many cases, Medicare was billed even though no equipment was shipped. Medicare was also billed by Grant’s companies for supplying medical equipment to 422 deceased individuals. When audited by Medicare contractors, the evidence showed that Grant forged physician orders if no such order existed in her files to support her billings.
In total, Grant caused CRP and Blue File to bill Medicare for more than $50 Million in durable medical equipment between 2014 and 2021, of which Medicare paid Grant more than $17 Million. Grant used these funds to purchase a home in Raleigh, a townhome in Florida, a Porsche, several Range Rovers, several Jeeps, boat, jewelry, art, and electronics, as well as amassing more than a million dollars in cash and investments. These assets have been seized by the government to be used to recover the stolen funds.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle sentenced Grant. The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00253-BO .
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Burlington County Businessman Sentenced to Five Years in Prison for Defrauding over 75 Victims of More Than $2.7 Million in Nationwide Scheme to Sell Pesticides Falsely Billed as Registered with EPA and Approved to Kill CoronavirusRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man who sold more than $2.7 million worth of pesticides he falsely claimed were registered with the Environmental Protection Agency as being effective against coronavirus, was sentenced today to 60 months in prison, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division announced.
Paul Andrecola, 63, of Maple Shade, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), wire fraud, and presenting false claims to the United States. Judge Kugler imposed the sentence today in Camden federal court.
“Paul Andrecola’s scheme profited on the fears of the American people during the height of concerns about transmission of COVID-19,” U.S. Attorney Sellinger said. “Our office is dedicated to protecting public health and prosecuting to the full extent of the law fraudsters who commit such egregious criminal acts.”
“The defendant committed a brazen fraud in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) said. “This sentence shows that these crimes are serious and will be vigorously prosecuted by the Department of Justice.”
“Today’s sentence holds the defendant accountable for perpetrating the largest pandemic fraud case related to the sale of unregistered pesticides charged nationwide,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This case underscores EPA’s commitment to hold violators accountable for placing the public at risk by failing to ensure the integrity and safety of their products.”
According to documents filed in this case and statements made in court:
FIFRA regulates the distribution, sale, and use of pesticides to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The EPA is responsible for regulating the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce.
Under FIFRA, all pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. Before pesticide products can legally make claims that they can kill a particular pathogen, such as SARS-CoV-2 (coronavirus), the claim must be authorized by EPA based on a review of data. In March 2020, at the beginning of the global pandemic, the EPA created a list of EPA-registered products that it deemed to be effective against coronavirus, titled “List N: Disinfectants for Use Against SARS-CoV-2.” The EPA has continued to update this list since its creation.
Andrecola, who controls two companies and is employed by a third company, all based in in Mount Laurel, New Jersey, manufactured various disinfectant products, including liquids and wipes, under the brand name “GCLEAN.” GCLEAN products were unregistered pesticides under FIFRA and none of the products were on EPA’s List N. Andrecola placed another company’s EPA registration numbers on his company’s products and falsely marketed that his products were EPA-approved to kill coronavirus by creating numerous false documents to support his claims. Andrecola, or others at his behest, would provide this falsified documentation to potential customers representing that various sanitizer and wipe products in the names GCLEAN or GC200 were EPA-registered products List N to persuade them to purchase the unregistered pesticide products.
From March 2020 through May 2021, Andrecola used these fraudulent representations to make more than 150 sales of unregistered pesticides for a profit of more than $2.7 million. The purchasers of these unregistered pesticides included a police department in Delaware, a fire department in Virginia, a medical clinic in Georgia, a janitorial supply company in New York, a school district in Wisconsin, and numerous U.S. Government agencies, including the U.S. Marshal’s Service, Moody Air Force Base, the U.S. Department of Veterans Affairs, and the National Forest Service.
In addition to the prison term, Judge Kugler sentenced Andrecola to three years of supervised release and forfeiture of $2.74 million – the proceeds from the sale of the illegal product. The defendant is also responsible to make full restitution for all losses resulting from his commission of the charged crimes.
U.S. Attorney Sellinger credited special agents of the U.S. EPA Criminal Investigation Division, under the direction of Special Agent in Charge Tyler Amon with the investigation leading to today’s sentencing. He also thanks the U.S. EPA Office of the Inspector General Eastern Region under the direction of Special Agent in Charge Nicolas Evans; Homeland Security Investigations Newark Field Office under the direction of Special Agent in Charge Ricky J. Patel; Defense Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Patrick Hegarty; Naval Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Michael Wiest; and the Mount Laurel Police Department under the direction of Chief Stephen Riedener, for their assistance in this investigation.
The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorneys Adam C. Cullman and Matthew D. Evans of the Environmental Crimes Section of the U.S. Department of Justice.
Brooke County man sentenced for failure to register chargeRead the Press Release
WHEELING, WEST VIRGINIA – Christopher J. Schragl, of Follansbee, West Virginia, was sentenced today to 18 months of incarceration for failing to update his sex offender registry, United States Attorney William Ihlenfeld announced.
Schragl, 46, pleaded guilty in June 2022 to one count of “Failure to Register.” Schragl, a person required to register as a sex offender, failed to update his registration from May to December to 2021 in the Northern District of West Virginia.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The United States Marshals Service, West Virginia State Police, Texas Rangers, and the Nevada State Police investigated.
U.S. District Judge John Preston Bailey presided.
Birmingham Man Sentenced to 10 Years in Prison on Firearm ChargeRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
United States District Court Judge Madeline H. Haikala sentenced Joseph Ryan Byram, 39, for being a felon in possession of a firearm. Byram received 120 months in prison followed by three years of supervised release. Byram is prohibited from having a firearm because of prior felony convictions. Byram was convicted in the Circuit Court of Jefferson County, Alabama, of the offenses of Burglary, First Degree in August 2001, and Theft of Property, Third Degree in April 2014, convicted in the Circuit Court of Bibb County, Alabama, of the offense of Robbery, First Degree in October 2014, and convicted in the Circuit Court of Tuscaloosa County, Alabama, of the offense of Assault, Second Degree in April 2018.
On July 25, 2021, Jefferson County Sheriff’s deputies were dispatched to a home in Adger, AL, on a report that Byram was holding a victim against her will in the basement. Byram allowed the deputies inside the residence to verify. Deputies made contact with a female inside the residence, who was later identified as the victim. Deputies immediately observed the victim to have a swollen right eye along with bruises on several parts of her body. The victim began asking for help and informed deputies that Byram was in possession of a firearm up until their arrival and that he repeatedly beat her over the course of three days. After searching the residence, Jefferson County Sheriff detectives recovered a revolver.
The case is a part of Project Safe Neighborhoods (PSN), 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.
The ATF investigated the case, along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorneys Darius Greene, Brittany Byrd, and Daniel McBrayer prosecuted the case.
Billings man sentenced to five years in prison for possessing child pornographyRead the Press Release
BILLINGS — A Billings man who admitted to possessing hundreds of child pornography images was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. Bessman also was ordered to pay $18,000 restitution to his victims.
Miles Edward Bessman, 49, pleaded guilty in July to possession of child pornography as charged in an indictment.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that an investigation of Bessman began in 2019 after law enforcement received two Cybertips indicating that a certain IP address had uploaded child pornography to Google. Investigators determined that the IP address was located at Bessman’s residence and executed a search warrant for Bessman’s Google account. A review of material collected from Bessman’s account found more than 800 images of child pornography. The material included videos and images of children engaged in sexually explicit conduct. Law enforcement officers executed a search warrant on Bessman’s residence in January 2020, collected electronic media and found files containing child pornography on his cell phone.
Assistant U.S. Attorneys Zeno B. Baucus and Benjamin D. Hargrove prosecuted the case, which was investigated by the FBI, the Montana Division of Criminal Investigation and the Billings Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Armed Drug Dealer Sentenced to 12 Years in Federal Prison after Guns and Drugs Seized from Residence That was Home to Nine Minor ChildrenRead the Press Release
NEW BERN, N.C. – Dwayne Dantel Thomas, 43, of Greenville, North Carolina was sentenced today to 144 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute 40 Grams or More of Fentanyl, Possession with Intent to Distribute a Quantity of Methamphetamine, Cocaine, Fentanyl, and Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. On June 28, 2022, Thomas, pleaded guilty to the charges.
“Fentanyl and meth overdoses are causing far too many deaths,” said U.S. Attorney Michael Easley. “We are partnering with local law enforcement in every corner of Eastern North Carolina to prosecute illicit fentanyl dealers who put lives at risk. This defendant recklessly stored fentanyl and meth in a home with minor children, and police recovered a stolen gun kept in a minor child’s bedroom.”
According to court documents and other information presented in court, Thomas was responsible for trafficking over 400 grams of fentanyl in Greenville between April 2017 and May 2021. In March 2020, the Pitt County Sheriff’s Office received information that Thomas was selling fentanyl from a residence on Old River Road. Between January and April 2021, law enforcement conducted six purchases of fentanyl from Thomas at his residence, using a confidential informant. On April 8, 2021, the Pitt County Sheriff’s Office executed a search warrant at Thomas’ residence. There, law enforcement encountered Thomas, his wife, and nine of their minor children in the residence. Additionally, officers seized over an ounce of methamphetamine, and a mixture of heroin, cocaine, and fentanyl, 53 pills, and other drug paraphernalia. Officers found drugs, packaging materials, and digital scales throughout the residence and inside the bathroom. Additionally, officers seized six loaded firearms of various makes and calibers, including two stolen firearms, and one firearm with an altered front grip. At least one of the firearms was recovered from one of Thomas’ minor children’s rooms.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Pitt County Sheriff’s Office, Greenville Police Department, and FBI investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-52-FL.
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Arizona Man Arrested for Point-Of-Sale Cyber IntrusionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of FOSTER COOLEY for charges in connection with a scheme to conduct cyber intrusions targeting a New York-based company that owns and operates hair salons in New York City, New Jersey, Colorado, and elsewhere, which resulted in the theft of over $400,000. COOLEY was arrested this morning and is expected to be presented today or tomorrow before a U.S. magistrate judge in the District of Arizona. The case is assigned to U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “Foster Cooley allegedly participated in a scheme to hack into a salon company’s point-of-sale provider and steal over $400,000 of credit card payments from its customers. And because Cooley was able to steal this money without stepping foot into one of the salons he stole from, his crimes went undetected for weeks. Hacks like this that compromise the integrity of our electronic payment systems cause great harm to businesses and consumers alike. Thanks to this Office’s teamwork with the FBI, Cooley is now facing serious criminal charges for his alleged cybercrimes.”
FBI Assistant Director in Charge Michael J. Driscoll said: "As alleged, the defendant hacked into the victim's business systems and diverted hundreds of thousands of dollars to his own bank accounts. The FBI's Cyber Task Force along with our law enforcement partners are committed to tracking down malicious hackers who target private businesses and ensuring they face the consequences for their actions. If your business is the victim of a cyber intrusion, please report it as soon as possible; the faster we are made aware, the sooner we can provide assistance."
According to the allegations in the Indictment unsealed today in Manhattan federal Court:[1]
In or about May 2022, FOSTER COOLEY perpetrated a scheme to conduct cyber intrusions and steal money from a New York-based company that owns and operates hair salons in New York City, New Jersey, Colorado, and elsewhere (“Victim-1”). COOLEY stole money from Victim-1 by obtaining unauthorized access to Victim-1’s account with Victim-1’s point-of-sale provider (the “Victim-1 POS Account”) and diverting credit card payments from Victim-1’s bank accounts to bank accounts controlled by COOLEY and others.
COOLEY obtained unauthorized access to the Victim-1 POS Account by obtaining usernames and passwords of Victim-1’s employees. Those credentials were stolen using a type of malicious software or malware that secretly steals, among other things, a victim’s usernames, passwords, and credit card information that have been saved in the victim’s internet browser. After COOLEY successfully gained unauthorized access to the Victim-1 POS Account, COOLEY changed the bank accounts designated to receive credit card payments from Victim-1’s hair salons to bank accounts controlled by COOLEY and others. As a result, credit card payments from Victim-1’s hair salons were fraudulently diverted to COOLEY and others.
In or about May 2022, for a period of approximately two weeks until the scheme was discovered by Victim-1, more than $430,000 in customer payments from Victim-1’s hair salons were fraudulently diverted to bank accounts controlled by COOLEY and others.
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COOLEY, 23 of Chandler, Arizona, is charged with one count of computer fraud for causing damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of computer fraud for unauthorized access to a protected computer to further intended fraud and one count of receipt of stolen money, each of which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams also thanked the FBI New York Cyber Task Force, the NYPD Cyber Task Force, and the FBI Field Office in Phoenix for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Andrew K. Chan is in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Architect of multi-million-dollar education fraud involving scuba dive shops sentenced to years in federal prisonRead the Press Release
SAVANNAH, GA: A defendant who supervised a scheme to defraud more than $6 million from the Department of Veterans Affairs (VA) education programs through scuba diving schools has been sentenced to more than four years in federal prison.
Kenneth Meers, 55, of Altamonte Springs, Fla., was sentenced to 54 months in prison after previously pleading guilty to Conspiracy to Commit Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Meers to pay restitution of $6,085,918.08, and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“The VA administers a robust program to provides educational benefits for those who have served their country, opening access to substantial career and enrichment opportunities for veterans,” said U.S. Attorney Estes, a retired U.S. Army Colonel. “Kenneth Meers and his co-conspirators circumvented the rules designed to protect that funding, purely for their personal enrichment, and they justly are being held accountable for their crimes.”
The six defendants charged in the case, all of whom have entered guilty pleas in U.S. District Court, are owners, managers, and/or instructors at Scooba Shack in Savannah and Richmond Hill, Ga., or at Diver’s Den in St. Marys, Ga. In those capacities, the individuals caused false submissions to be made to the Department of Veterans Affairs, misstating the businesses’ compliance with VA regulations, dates of students’ attendance, and hours of instructions, among other misinformation. Some of the defendants also participated in creating fictitious scholarship programs to provide the appearance that a required percentage of non-VA students participated in those classes. The businesses billed the VA up to more than $20,000 per veteran student enrollee for the classes.
Meers was a school certifying official and course director at Scooba Shack in Savannah and Richmond Hill, Ga., from about May 2018 to April 2021, and became a consultant at Diver’s Den in St. Mary’s, Ga., around May 2020 and an instructor from about June 2021 to February 2022. Meers prepared and submitted Scooba Shack’s application and course catalog for VA approval, and developed Diver’s Den’s program, knowing that those applications contained false information. He also directed other defendants to create the fake scholarships that were used to mask the percentage of students receiving VA education benefits.
Judith Lanoue, 59, and Robert Lanoue, 63, both of Savannah, operated Scooba Shack and were previously sentenced to prison after pleading guilty to related charges. They were also ordered to pay $3,228,921.53 in restitution. Their employee, David Anderegg, 42, of Richmond Hill, Ga., was previously sentenced to probation and ordered to pay $20,497 in restitution.
Two other defendants – Theresa Whitlock, 55, of St. Marys, Ga., and John Spyker, 39, of Yulee, Fla., await sentencing after entering guilty pleas. Whitlock operated Diver’s Den and served as a school certifying official, providing false information to the VA about Diver’s Den’s diving programs, and submitting claims to the VA for tuition payments totaling more than $1.1 million, while Spyker, a School Certifying Official and Director of Training at Diver’s Den, admitted submitting false and fraudulent information to the VA for tuition payments totaling $722,399.19.
“Safeguarding Post-9/11 GI Bill education benefit funds is a priority, and our investigators work diligently to ensure this vital program is not exploited for financial gain and greed. This significant sentence holds the defendant accountable and highlights the severity of the penalties of such fraudulent activities,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG remains committed to working with our law enforcement partners to hold accountable those who would defraud VA’s programs and services.”
“This sentencing sends a strong message to those who defraud programs that benefit our veterans,” stated Special Agent in Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work closely with our investigative partners and the U.S. Attorney’s Office to ensure individuals who selfishly enrich themselves at the expense of our veterans and military personnel are brought to justice.”
The case was investigated by the Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service, and is being prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Alaska Man Sentenced to 78 Months for Years-Long Fraud and Identity TheftRead the Press Release
FAIRBANKS – Jared Wilkes Post, 26, of Fairbanks was sentenced by Senior U.S. District Judge Ralph R. Beistline to 78 months of imprisonment and ordered to pay at least $100,000 in restitution for defrauding banks and other victims of over $100,000 through a sophisticated check kiting and identity theft scheme.
According to court documents, between 2017 and 2021, Post and his co-conspirator committed bank fraud and aggravated identity theft and defrauded multiple banks and individuals of at least $100,000. Post contacted individuals he called “Plays” via social media and convinced them to share their bank account information under the false pretense that Post needed to deposit a legitimate check into the “Play’s” account. Post then offered the “Play” a portion of the deposited check in return for use of their bank account. Once the check posted in the account, Post would withdraw or transfer the funds electronically or direct the “Play” to transfer the funds to him via a cash app or Western Union.
In reality, the checks Post and his co-conspirator deposited were stolen and fraudulently altered, and they withdrew the funds prior to the banks’ flagging the checks as fraudulent. Post and his co-conspirator discussed stealing the checks from the elderly and other victims they viewed as susceptible to “scams.” Once Post withdrew the cash the banks, the “Plays,” and the initial victim whose checks were stolen were left paying losses and overdraft fees.
“Elder abuse and financial fraud targeted at seniors is a serious crime against some of our nation’s most vulnerable citizens,” said U.S. Attorney S. Lane Tucker, District of Alaska. “Today’s sentence sends a strong message that fraudulent conduct on this scale will be met with serious consequences. Predators who target older citizens for fraud and financial scams are especially abhorrent and my office will continue to take aggressive action, pursuing all legal means to bring these criminals to justice.”
“Motivated by greed, the defendant and his co-conspirator operated a sophisticated check fraud scheme, targeting victims they perceived as vulnerable,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This scheme led to prison time and should serve as a message to anyone who would engage in this conduct to reconsider. The FBI and our law enforcement partners will continue to hold accountable those who commit such offenses.”
The FBI Anchorage Field Office, Alaska State Troopers, Fairbanks Police Department, Anchorage Police Department and the Vancouver, Washington, Police Department are investigating the case. The FBI’s Phoenix Field Office also assisted in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
Anyone who believes they may be a victim of this scheme and entitled to restitution may contact the FBI Anchorage Field Office at 907-276-4441. The District Court will hold a restitution hearing in 90-days to enter a final restitution order.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
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Airline passenger with box cutter who caused flight to be diverted has been indictedRead the Press Release
ATLANTA - William Allen Liebisch has been charged with interfering with the duties of a flight crew after he brought a box cutter aboard a Fronter Airlines flight and told a fellow passenger that he wanted to stab someone, which required the pilot to make an emergency landing in Atlanta.
“People have the right to travel in peace and free from fear of their fellow passengers,” said U.S. Attorney Ryan K. Buchanan. “Passengers who disrupt flights with threats of violence will quickly learn that they will be answering for their conduct in federal court.”
“The FBI is committed to doing its part to prevent violence, intimidation, and threats of violence that endanger passenger and flight crew safety on commercial flights”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this indictment proves that the federal government takes all threats on aircrafts seriously and violators who disrupt travel will be prosecuted to the fullest extent of the law.”
“Unruly passenger behavior is unsafe and disruptive to the traveling public, as well as the flight crew,” said Todd Damiani, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, Southern Region. “We will continue to work with our law enforcement partners to pursue and hold accountable those who choose to engage in such reckless activity while aboard commercial aircraft.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: On November 11, 2022, Liebisch was a passenger aboard a Frontier Airlines flight from Cincinnati, Ohio, to Tampa, Florida. He passed through the Transportation Security Administration (TSA) security checkpoint in the Cincinnati airport, where TSA officers found a box cutter in his possession but mistakenly believed that they had rendered it inoperable by removing its blade.
Once the flight had taken off, Liebisch inserted a spare blade that was stored in the handle of the box cutter. A passenger saw Liebisch use the box cutter to clean his nails. Another passenger reported to two flight attendants that Liebisch said that he was going to stab someone. Because there were no law enforcement officers on the flight, one attendant asked two male passengers to assist. One passenger stood in the back nearby while the other took the seat of the passenger who made the report to the flight attendants. Both men and a flight attendant tried to keep Liebisch calm and under control for the remainder of the flight.
While this was happening, the captain made an emergency landing at the nearest airport, which was Hartsfield-Jackson Atlanta International Airport. Once the plane landed, the passengers were instructed to deplane immediately and to leave their belongings on the plane. Atlanta Police Department (APD) officers were at the gate but did not get on the plane to avoid antagonizing Liebisch, who was in the rear of the plane with the two male passengers. As the last passengers deplaned, Liebisch charged toward a flight attendant at the front of the plane while holding his box cutter. One of the passengers tackled him from behind, and APD officers rushed on the plane to subdue Liebisch. He stopped resisting as soon as they said they would use a taser on him if he did not comply. A subsequent search of his carry-on bag uncovered a second box cutter.
After Liebisch’s arrest, the plane was not able to continue its trip to Tampa until the following morning.
William Allen Liebisch, 42, of Cincinnati, Ohio, has been charged with interfering with the duties of a flight crew, and carrying a weapon aboard an airplane. The magistrate court ordered him to remain in custody pending trial. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Transportation Office of Inspector General.
Assistant U.S. Attorney Paul R. Jones is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
35-Year-Old Memphis Man Sentenced to 15 Years Imprisonment Arising out of Gun and Drug ChargesRead the Press Release
Memphis, TN – Tony Jackson, 35, has been sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute one kilogram or more of heroin, being a prohibited person in possession of ammunition and a firearm, and conspiracy to commit money laundering. United States Attorney Kevin G. Ritz announced the sentencing today.
According to the information presented in court, in May 2017, members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating the criminal activities of Tony Jackson. Investigators identified Jackson as a heroin distributor who utilized the proceeds from such sales to acquire both residences and vehicles in other individuals’ names to conceal the source of his income.
Additionally, despite Jackson’s prohibited status, he was known to go armed. In April 2018, investigators with the Memphis Police Department responded to a shooting on East Waldorf and South Third, in which Jackson was observed in a neighboring business surveillance video exiting a vehicle and firing several rounds at the victim. A search of the area led to the recovery of a spent nine-millimeter shell casing.
In August 2019, a search of Jackson’s residence led to the recovery of a Glock 26 9mm pistol.
Jackson pled guilty on April 19, 2022.
On December 5, 2022, United States District Court Judge Mark S. Norris sentenced Jackson to 180 months imprisonment to be followed by 5 years’ supervised release. Jackson agreed to pay a money judgement in the amount of $56,000 which represents the proceeds from the distribution of narcotics.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Internal Revenue Service, and the Memphis Police Department Organized Crime Unit.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted the case.
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For more information, please contact Public Information Officer Cherri Green at 901-
544-4231 or [email protected]. Follow@WDTNNews on Twitter for office news and
updates.
Wednesday 7 December 2022
Zuni man sentenced to 10 years in prison for assault and firearms offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Martin Eriacho was sentenced to 10 years in prison. Eriacho, 52, of Zuni, New Mexico, and an enrolled member of the Zuni Pueblo, pleaded guilty on Sept. 7 to assault with a dangerous weapon and brandishing a firearm in furtherance of a crime of violence.
Just after midnight on Jan. 9, 2021, Eriacho drove to a residential area on the Zuni Reservation. From inside his car, Eriacho discharged a firearm twice, drawing attention from nearby residents. Several residents began to investigate the gunshots, including the victim, identified as John Doe. As he walked outside his residence, John Doe saw Eriacho, who he did not know, in a gray vehicle. When John Doe was about twenty feet away from Eriacho, Eriacho fired two more shots, one of which struck Doe in the arm, causing several fractures that required surgery.
Upon his release from prison, Eriacho will be subject to three years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorneys Joseph Spindle and Zachary Jones prosecuted the case.
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Worcester Man Pleads Guilty to Distributing Fentanyl and MethamphetamineRead the Press Release
BOSTON – A Worcester man pleaded guilty on Dec. 5, 2022 to distributing fentanyl and methamphetamine.
Johanny Torres-Rojas, 56, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and one count of distribution of and possession with intent to distribute methamphetamine and fentanyl. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 31, 2023. Torres-Rojas was charged by criminal complaint in January 2020 and subsequently indicted by a federal grand jury in February 2020. Torres-Rojas was later charged in a superseding Information in November 2022 and pleaded guilty.
Between November 2019 and January 2020, Torres-Rojas distributed fentanyl to a confidential source in at least three controlled purchases. Specifically, on Nov. 20 and Nov. 26, 2019, Torres-Rojas distributed fentanyl pills to a confidential source at a Goodwill Store in Worcester. Later, on Jan. 13, 2020, Torres-Rojas distributed pills containing fentanyl and methamphetamine to the confidential source outside of the same Goodwill Store. In total, Torres-Rojas distributed approximately 835 grams of pills containing methamphetamine and 102 grams of pills containing fentanyl across the three purchases.
The charges of distribution of and possession with intent to distribute fentanyl and methamphetamine provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Worcester Police Department. Assistant U.S. Attorneys Lucy Sun and Samuel R. Feldman of Rollins’ Criminal Division are prosecuting the case.
Worcester Man Arrested for Sending Obscene Material to a Minor over Social MediaRead the Press Release
BOSTON – A Worcester man has been arrested and charged in connection with transferring obscene material to a 14-year-old minor.
Andrew James Gallagher, 28, was charged with one count of transfer of obscene material to a minor. Gallagher was arrested yesterday morning and, following an initial appearance in federal court in Worcester, was detained pending a detention hearing scheduled for Dec. 9, 2022.
According to the charging document, in April 2022, Gallagher contacted the victim using a social media platform. It is alleged that Gallagher asked, “are you underage at all?” to which the minor victim replied identifying himself as 14 years old. Gallagher then allegedly sent two obscene images of himself to the minor victim, expressed interest in meeting with the minor victim in person and asked the minor victim to send an explicit video of himself to Gallagher.
The charge of transfer of obscene material to a minor provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Steven M. Sargent; and Matthew B. Millhollin, Special Agent in Charge of the Homeland Security Investigation’s in New England made the announcement. Valuable assistance was provided by the Federal Bureau of Investigation, Omaha Division. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Allen Sams, of Jacksonsburg, West Virginia, was sentenced today to 18 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Sams, 36, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Sams, a person prohibited from having a firearm because of a prior felony conviction, admitted to having a 20-gauge shotgun and nine rounds of 20-gauge ammunition in August 2021 in Tyler County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Wetzel County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Joseph Allen Sams, of Jacksonsburg, West Virginia, was sentenced today to 18 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Sams, 36, pleaded guilty in June 2022 to one count of “Unlawful Possession of a Firearm.” Sams, a person prohibited from having a firearm because of a prior felony conviction, admitted to having a 20-gauge shotgun and nine rounds of 20-gauge ammunition in August 2021 in Tyler County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Waterbury Man Sentenced to 9 Years in Federal Prison for Drug Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LENWOOD GATLING, 39, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 108 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, between July and October 2020, a DEA New Haven Task Force investigation revealed that Gatling was using a storage unit he rented at a facility located on Meriden Road in Waterbury to store and distribute narcotics. Gatling was arrested on October 14, 2020. On that date, a court-authorized search of the storage unit revealed nine firearms, three of which were reported stolen; approximately 420 grams of fentanyl packaged in approximately 11,000 individual use bags; approximately 99 grams of heroin; approximately nine grams of cocaine; and approximately $30,000 in cash.
Gatling’s criminal history includes multiple felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Gatling has been detained since his arrest. On May 2, 2022, he pleaded guilty to one count of possession with intent to distribute 100 grams or more of heroin, and one count of possession of a firearm by a felon.
The Drug Enforcement Administration New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Patricia Stolfi Collins and Neeraj N. Patel.
Warren Man Pleads Guilty to Child Sexual Exploitation ChargeRead the Press Release
ERIE, Pa. – A resident of Warren, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Vincent Dexter Swanson, 30, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from April 2020 to March 2021, Swanson possessed and accessed with intent to view visual images and videos in individual computer files depicting prepubescent minors engaging in sexually explicit conduct. As part of his guilty plea, Swanson agreed to a four-year jail sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for April 7, 2023, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Swanson on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Swanson.
Virgin Islands Man Sentenced to 20 Years for Drug Conspiracy, Miami Boat Captain Receives 9 YearsRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Avery Lans (55, St. Thomas, U.S. Virgin Islands) to 20 years in federal prison for conspiracy to distribute cocaine. His coconspirator, Wayne Ellsworth Stout, Jr. (35, Miami), was sentenced to 9 years’ imprisonment. Lans’s sentence was enhanced based on the danger he caused during his attempted escape from law enforcement on June 1, 2022. After his arrest, HSI learned that Lans was convicted of second-degree murder in 1990 in the Virgin Islands and pardoned in 2014 after serving over 20 years of his 40-year sentence. Lans and Stout were indicted on June 15, 2022. Lans was convicted after a jury trial on October 3, 2022. Stout pleaded guilty on August 19, 2022.
According to evidence presented at trial, on June 1, 2022, Stout drove from Miami to Orlando and retrieved a duffle bag from a storage locker in the Edgewater area. Agents from Homeland Security Investigations (HSI) were conducting surveillance on Stout as he traveled from Miami to Orlando and as Stout left the storage locker and went to the parking lot of a restaurant in the Winter Park area. At approximately 1:45 p.m., Lans arrived and received the duffle bag in a short, 30-second meeting. After circling the block, Lans led HSI surveillance agents to the corner of Lee Road and Wymore Road, where he abruptly turned on to Wymore Road in an attempt to escape while dropping the duffle bag out of his passenger side window. After a brief high-speed chase, Lans was detained and the duffle bag was retrieved. It contained five kilograms of cocaine, wrapped in black tape with a marking on it.
When HSI agents searched the storage locker in Edgewater, they found three coolers containing 109 kilograms of cocaine, some of which contained the same black and gold marking as the five-kilogram bricks that Lans was carrying.
A kilogram of cocaine was estimated to be worth at least approximately $27,000. Lans was carrying $135,000 of cocaine when he unsuccessfully attempted to flee. The storage locker contained nearly $3 million of cocaine.
The United States referenced conversations between Lans and his conspirators on a phone that Lans had been carrying at the time of his arrest to show that Lans had numerous conversations about cocaine smuggling prior to June 1, 2022. The Court enhanced Lans’s sentence based on his broader involvement in cocaine distribution prior to the pick-up on June 1, 2022.
“Our highly skilled special agents continue to rely on their experience and resources to thwart the efforts of career criminals who attempt to distribute their poison into our communities,” said HSI Orlando Assistant Special Agent in Charge Dave Pezzutti. “These sentences are a testament to HSI and our partner law enforcement agencies commitment to work around the clock to locate and remove these illicit drugs off the streets and out of our communities.”
This case was investigated by Homeland Security Investigations (HSI), with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, the Sunrise Police Department, and the Golden Beach Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Utah Man Pleads Guilty to Nine Counts of ExtortionRead the Press Release
SALT LAKE CITY, Utah – Leallen Blackhair, 45, of Fort Duchesne, Utah, pleaded guilty Monday Dec. 5, 2022 to nine counts of Extortion Under Color of Official Right as set forth in the indictment.
Blackhair waived his right to a trial and admitted to the facts of his criminal behavior, which interfered with or affected interstate commerce.
According to the Statement in Advance of Plea of Guilty, Mr. Blackhair was the Compliance Coordinator of the Energy and Minerals Department of the Ute Indian Tribe. Blackhair’s position included issuing fines to oil and gas businesses working on the Uintah and Ouray Reservation who were found in violation of their access permits and business licenses by his employer. Blackhair used his position to induce and attempt to induce multiple companies to pay him personally by offering to reduce a fine that would otherwise be assessed against them. Blackhair extorted sixty-six payments totaling $110,000, paid directly to and for the benefit of the defendant between August 2010 and May 2013.
The case is being prosecuted by Assistant United States Attorney Cy H. Castle for the District of Utah and investigated by the FBI’s Salt Lake City Field Office. Sentencing is scheduled for March 29, 2023.
Undécimo acusado se declara culpable en una estafa de $15 millones contra inmigrantes hispanohablantes en los EE. UU.Read the Press Release
Un hombre de California se declaró hoy culpable por conspirar con centros de atención telefónica con sede en Perú que estafaban a residentes estadounidenses de habla hispana amenazándolos falsamente con arrestarlos, deportarlos y otras consecuencias legales.
Según los documentos judiciales, Luis Rendón, de 60 años y residente en Harbor City (California), dirigía un centro de distribución que ayudaba a los operadores del centro de atención telefónica a ejecutar su plan de fraude desde Perú. Con la declaración de culpabilidad de Rendón, ya son once los acusados que se han declarado culpables en relación con un plan de fraude transnacional por $15 millones cuyo objetivo era estafar a residentes hispanohablantes de los EE. UU. amenazándolos fraudulentamente con consecuencias legales si no pagaban por productos de aprendizaje de inglés que nunca solicitaron o abonaban falsas tarifas de conciliación. Más de 30,000 hispanohablantes residentes en los Estados Unidos fueron estafados.
En total, los once acusados incluyen siete propietarios-operadores de centros de atención telefónica peruanos y cuatro operadores de centros de distribución que procesaron pagos y facilitaron el fraude en los Estados Unidos. Muchos de los acusados colaboraron y compartieron estrategias sobre cómo estafaron a los residentes hispanohablantes de los Estados Unidos.
Siete de los acusados fueron extraditados de Perú y se declararon culpables ante un tribunal federal por conspiración para cometer fraude postal y electrónico, y recibieron importantes sentencias de prisión. El juez de distrito de los EE. UU., Robert N. Scola, Jr., condenó a Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla y Josmell Espinoza a penas de entre 88 y 110 meses de prisión.
“Estos casos demuestran que la Subdivisión de Protección al Consumidor del Departamento de Justicia perseguirá y enjuiciará enérgicamente a los delincuentes transnacionales que estafan a los consumidores estadounidenses vulnerables”, declaró Brian M. Boynton, fiscal general adjunto principal de la División Civil del Departamento de Justicia. “Las personas que estafen a nuestras comunidades de inmigrantes serán llevadas ante la justicia y rendirán cuentas ante los tribunales estadounidenses”.
“Nuestros casos con la Subdivisión de Protección al Consumidor demuestran que el largo brazo de la justicia no tiene límites cuando se trata de alcanzar a los estafadores que se aprovechan de las poblaciones más vulnerables de nuestra nación”, declaró el fiscal federal del distrito sur de Florida, Juan Antonio Gonzalez. “Seguiremos llevando ante la justicia estadounidense a los delincuentes transnacionales que utilizan tácticas de miedo e intimidación para robar dinero a inmigrantes, ancianos y otras personas que viven en este país”.
“Durante muchos años, el Servicio de Inspección Postal de los EE. UU. y sus socios de las fuerzas del orden han investigado y perseguido a redes delictivas internacionales que tenían como objetivo robar a los consumidores estadounidenses el dinero que tanto les había costado ganar”, declaró el inspector en funciones Juan A. Vargas, de la División de Miami del Servicio de Inspección Postal de los EE. UU. “El Servicio de Inspección Postal de los EE. UU., junto con la Subdivisión de Protección al Consumidor del Departamento de Justicia y la Fiscalía General de los EE. UU., seguirá persiguiendo agresivamente a estos delincuentes para garantizar que sean procesados con todo el peso de la ley”.
Según los documentos judiciales, Rendón era propietario y operador de International Latin Market (“ILM”), un centro de distribución con sede en California que facilitó el plan de fraude de telemercadeo y extorsión a gran escala desde 2011 hasta finales de 2017. Rendón colaboró en el plan al facilitar listas de posibles víctimas a los centros de atención telefónica de Perú, procesar pagos con tarjeta de las víctimas y enviar tabletas informáticas de baja calidad precargadas con cursos de inglés a las víctimas de la zona de Miami y de todos los Estados Unidos.
Rendón, al igual que los demás acusados que se declararon culpables antes que él en esta investigación, admitió que los centros de atención telefónica y sus empleados afirmaban falsamente ser abogados, funcionarios judiciales, agentes federales y representantes de un supuesto “tribunal de delitos menores”, que no existe. Las personas que llamaban amenazaban falsamente a las víctimas con procesos judiciales, marcas negativas en sus informes crediticios, encarcelamiento y consecuencias migratorias si no pagaban inmediatamente los productos supuestamente entregados y las tarifas de conciliación.
Ángel Adrianzen, otro cómplice que operaba un centro de distribución con sede en los EE. UU. que ayudó a otro grupo de centros de atención telefónica peruanos fraudulentos, se declaró culpable de cargos similares en 2020. Adrianzen ayudó a sus cómplices a establecer y dotar de personal a centros de atención telefónica que estafaban a residentes de habla hispana de los Estados Unidos. El juez Scola condenó a Adrianzen a 121 meses de prisión.
Rendón será sentenciado el 16 de febrero de 2023 ante la jueza de distrito de los EE. UU., Patricia A. Seitz, en Miami. Se enfrenta a una pena máxima de 20 años de prisión.
El Servicio de Inspección Postal de los EE. UU. y la Subdirección de Protección al Consumidor investigaron el caso. El abogado litigante principal Phil Toomajian y el abogado litigante Max Goldman, de la Subdivisión de Protección al Consumidor, llevan los casos, y la fiscal adjunta Annika Miranda está encargada de la confiscación de bienes. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de los EE. UU. del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú prestaron una ayuda fundamental.
El Departamento de Justicia sigue investigando y presentando cargos en otros asuntos similares relacionados con amenazas contra residentes hispanohablantes de los Estados Unidos. Si usted o alguien que conoce tiene 60 años o más y ha sido víctima de un fraude financiero, puede obtener ayuda en la Línea Directa Nacional Contra el Fraude a Personas Mayores: 1-833-FRAUD-11 (1-833-372-8311).
Encontrará más información sobre la Subdivisión de Protección al Consumidor y sus actividades de lucha contra el fraude en www.justice.gov/civil/consumer-protection-branch.
Tyler County woman sentenced for mail fraudRead the Press Release
WHEELING, WEST VIRGINIA – Margaret Ann Moffitt, of Sistersville, West Virginia, was sentenced today to 21 months of incarceration for mail fraud, United States Attorney William Ihlenfeld announced.
Moffitt, 62, pleaded guilty in August 2022 to one count of “Mail Fraud.” Moffitt stole money from the estate of someone in the amount of $156,744.87. As the executor of the estate, she made cash withdrawals and endorsed checks to be mailed to people not associated with the estate in any way. She then caused checks to be mailed to the beneficiaries of the estate, knowing the funds were no longer in the account. She stopped payments on those checks because she knew the funds were gone. The crimes occurred from August 2019 to December 2020 in Tyler and Wetzel Counties.
Moffitt was also ordered to pay $156,744.87 in restitution.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government. The West Virginia State Police and the Office of the Prosecuting Attorney for Tyler County investigated.
U.S. District Judge John Preston Bailey presided.
Two defendants appear on indictment connected to $7 million in drugs left on beach near Port Angeles, Washington in April 2021Read the Press Release
Seattle – Two of three defendants charged in a failed attempt to smuggle more than 400 pounds of methamphetamine and two pounds of fentanyl powder into Canada appeared in U.S. District Court in Seattle today, announced U.S. Attorney Nick Brown. Erika A. Bocelle, 32 , of Providence, Rhode Island and John Michael Sherwood, 65, currently of Idaho, appeared on an indictment today, connected to the April 2021 discovery of some $7 million of illegal drugs found on the beach near Port Angeles, Washington.
Bocelle, Sherwood and a third defendant, Kevin Christopher Gartry, 45, of British Columbia, Canada, are charged in a three-count indictment with conspiracy to distribute controlled substances, possession of controlled substances with intent to distribute, and conspiracy to commit international money laundering. All three defendants are in custody on unrelated charges and are being brought to western Washington on the indictment returned in August 2022.
On April 7, 2021, beachcombers near Port Angeles reported a black duffel bag with drugs inside. The Clallam County Sheriff’s office took possession of the bag found to contain 2 pounds of fentanyl powder and nearly 60 pounds of methamphetamine. The fentanyl powder was originally believed to be cocaine. Just days later, on April 11, 2021, a different beach walker reported another find – seven more duffel bags containing 342 pounds of methamphetamine. The Sheriff’s Office estimated the street value of the drugs as nearly $7 million.
Due to the large quantity of drugs involved, the defendants face a mandatory minimum ten years to life in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The grand jury indictment was returned after an extensive investigation by the FBI, Homeland Security Investigation (HSI), U.S. Border Patrol and the Border Patrol Air and Marine Unit, the Royal Canadian Mounted Police (RCMP), and the Olympic Peninsula Narcotics Enforcement Team (OPNET).
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
197110310942.pdf Drugs found on beachTwo Worcester County Men Arrested for Trafficking Contraband Smokeless Tobacco to Evade $2 Million in TaxesRead the Press Release
BOSTON – Two Worcester County men were arrested today for conspiring to traffic in contraband smokeless tobacco.
Mohammad Hanif Balaparya, 61, of Shrewsbury, and Rakesh Garg, 52, of Holden, were indicted by a federal grand jury with one count each of conspiracy to transport, possess, purchase and distribute in excess of 500 units of contraband smokeless tobacco. Balaparya was also indicted on one count of transporting and possessing over 500 units of smokeless tobacco. The defendants were arrested this morning and were released following an initial appearance in federal court in Worcester this afternoon.
According to the indictment, throughout 2017, Balaparya and Garg rented a commercial box truck on an almost weekly basis to drive to Pennsylvania. While in Pennsylvania, Balaparya allegedly purchased significant quantities of smokeless tobacco, which he transported back to Massachusetts and stored at his home. On one occasion, on Dec. 7, 2017, Balaparya allegedly transported more than 500 units of smokeless tobacco from Pennsylvania to Massachusetts. It is further alleged that Balaparya and Garg distributed the smokeless tobacco to certain convenience store owners in Massachusetts. By doing so, the two men evaded over $2 million in excise taxes that wholesale distributors of smokeless tobacco in Massachusetts are required to pay.
The charging statute provides for a sentence of up to five years in prison for each count, up to three years of supervised release, and a fine of $250,000, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Geoffrey E. Snyder, Commissioner of the Massachusetts Department of Revenue made the announcement today. Valuable assistance in the investigation was provided by the Shrewsbury and Holden police departments. Assistant U.S. Attorneys Greg A. Friedholm and Lucy Sun of Rollins’ Worcester Branch Office are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Brothers Sentenced to Prison for Access Device Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced two brothers, Andy Teruel Colina (25, Miami) and Adrian Teruel (31, Orlando), to federal prison terms. Andy Teruel Colina was sentenced to 5 years for aggravated identity theft and for producing, using, or trafficking in one or more counterfeit access devices, possession of 15 or more counterfeit and unauthorized access devices, and possession of device-making equipment. The court also ordered him to pay $1,703.23 in restitution and a special assessment of $400. He had pleaded guilty on August 26, 2022. Adrian Teruel was sentenced to 8 months’ imprisonment for producing, using, or trafficking in one or more counterfeit access devices. His prison sentence will run consecutively to his previously imposed 12-month term of imprisonment for a violation of supervised release. Adrian Teruel had pleaded guilty on August 16, 2022.
According to court documents, an investigation by the U.S. General Services Administration, Office of Inspector General (GSA-OIG) identified fraudulent credit card transactions associated with a credit card assigned to a government-owned vehicle leased by GSA to the United States Department of Veterans Affairs (VA) at the Orlando Veterans Affairs Medical Center at Lake Nona in Orlando. The account was determined to have been used for diesel fuel purchases exceeding the assigned vehicle's tank capacity and also involved inconsistent odometer entries for the vehicle in connection with the fuel purchases. The fraudulent purchases were made between March 7 and 14, 2020, at multiple gas stations in and around Orlando. The Office of Veterans Affairs confirmed that the credit card was not lost nor had any of the diesel fuel purchases made during that time period been authorized by the VA. The total loss on the credit card was determined to be $1,703.23.
As a result of the unauthorized use of the VA credit card account number, a joint investigation was undertaken by the GSA-OIG and U.S. Secret Service (USSS). It was later determined that a tow truck that was observed being fueled by diesel fuel purchased using the VA credit card was registered to Andy Teruel Colina. Agents obtained video surveillance from the gas stations where the cloned VA credit card was used to make unauthorized diesel fuel purchases. These videos depicted Andy Teruel Colina using the cloned VA credit card to fuel the tow truck. Further investigation revealed that the tow truck made numerous stops at various gas stations and to an unlawful fuel yard. Adrian Teruel was also observed on gas station video cameras using two counterfeit and unauthorized access devices to purchase diesel fuel for the tow truck on April 11, 2020.
A federal search warrant was executed at Andy Teruel Colina’s residence where agents found amongst other things, a bag containing two camera circuit boards, gorilla glue, black electrical tape, multiple battery packs, and a screwdriver. These items are consistent with a pin-hole camera, which is commonly used to obtain personal information such as a pin code at a credit card payment terminal at a fuel pump. Additionally, agents recovered a credit card encoder, two fuel pump barrel keys, and numerous counterfeit and unauthorized access devices in gift card format. The agents also found numerous electronic devices that contained credit and or debit card account numbers and names associated with the rightful card holders. In total, Andy Teruel Colina was found to be in possession of over 2,400 individual’s names and their credit or debit card account numbers.
This case was investigated by the U.S. Secret Service and the U.S. General Services Administration – Office of Inspector General, Southeast and Caribbean Regional Investigations Office. It was prosecuted by Assistant United States Attorney Terry B. Livanos.
Tomah Man Sentenced to 78 Months for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Stephen Thompson, 57, Tomah, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 78 months in federal prison for possessing with intent to distribute 50 grams or more of methamphetamine. Thompson pleaded guilty to this charge on August 31, 2022.
The government’s investigation revealed that Thompson received a total of nine packages containing methamphetamine in the mail from Arizona at various addresses in the Tomah area. On November 15, 2021, U.S. Postal Inspectors executed a search warrant on a parcel sent from Arizona and addressed to “Stephen Thompson” at an address in Sparta, Wisconsin. The parcel contained approximately one pound of methamphetamine. On March 17, 2022, Postal Inspectors executed a search warrant on a parcel sent to Thompson’s associate in Tomah. Inspectors found approximately 220 grams of methamphetamine in the parcel. Thompson was arrested that same day after taking possession of the parcel.
Thompson’s criminal history dates back to 1992 and includes six drug-related felonies as well as prior felony convictions for burglary and theft. At the sentencing hearing, Judge Conley concluded that a substantial sentence was warranted because Thompson received a significant amount of methamphetamine from Arizona and distributed it in the Tomah area.
The charge against Thompson is the result of a joint investigation by the Drug Enforcement Administration, Wisconsin Department of Justice Division of Criminal Investigation, U.S. Postal Inspection Service, U.S. Postal Service – Office of the Inspector General, Trempealeau County Sheriff’s Office, Monroe County Sheriff’s Office, and West Central Metropolitan Enforcement Group. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Tigard Man Sentenced to Federal Prison for Trafficking Fentanyl, Other Illegal NarcoticsRead the Press Release
PORTLAND, Ore.—A Tigard, Oregon man was sentenced to federal prison today for trafficking illegal narcotics, including fentanyl and methamphetamine, in the Portland area.
Cole Richard Killion, 35, was sentenced to 72 months in federal prison and four years’ supervised release.
According to court documents, in March 2021, while investigating fentanyl trafficking in the Portland area, special agents from Homeland Security Investigations (HSI) learned, through various investigative tactics including financial analyses, that Killion was involved in the distribution of counterfeit oxycodone pills. Between December 2020 and February 2021, Killion’s bank account recorded 37 cash deposits and electronic funds transfers totaling approximately $56,000, which was inconsistent with his apparent employment status.
On August 4, 2021, agents executed a federal search warrant on Killion’s Tigard residence where he was living with his parents. That day, Killion left the house carrying a rectangular case containing more than 500 counterfeit oxycodone pills and various drug paraphernalia. A further search of the residence returned an additional 1,500 pills later confirmed to contain fentanyl, 187 grams of heroin laced with fentanyl, 345 grams of methamphetamine, and 501 grams of cocaine. Investigators also located two firearms, ammunition, and other materials indicating Killion’s involvement in drug trafficking.
On August 5, 2021, Killion was charged by criminal complaint with possessing with intent to distribute fentanyl, methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and impeding an officer authorized to conduct a search a warrant. Later, on August 17, 2021, a federal grand jury indicted Killion on the drug trafficking and firearm charges. On October 12, 2022, he pleaded guilty to possessing with intent to distribute fentanyl and methamphetamine.
This case was investigated by HSI with assistance from the Washington County Sheriff’s Office and Westside Interagency Narcotics Task Force (WIN). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
WIN includes representatives from the Washington County Sheriff's Office and the Beaverton, Hillsboro, and Tigard Police Departments.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
Three Men Sentenced to Decades in Federal Prison for A Robbery on the Big Cypress Reservation Resulting in the Death of A VictimRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Johan Holder (26, Clewiston) to 40 years, Sylvanis Brice (31, Clewiston) to 40 years, and Uriah Waggerby (25, Clewiston) to 18 years in federal prison, respectively, for their roles in an attempted robbery that resulted in the killing of a victim on the Big Cypress Indian Reservation in Clewiston. The Big Cypress Indian Reservation is one of the reservations of the Seminole Tribe of Florida. On July 20, 2022, following an eight-day trial, a jury found Holder and Brice guilty of conspiracy and robbery. The jury found Waggerby guilty of conspiracy.
According to testimony and evidence presented at trial, shortly before midnight on November 1, 2016, men wearing hoodies, masks and gloves, and brandishing firearms attempted to commit a robbery at a residence on the Big Cypress Reservation. During the robbery attempt, one of the masked men fired a shot that struck and killed a young man who had been visiting the targeted residence. Immediately after the shooting, the masked assailants fled the area. As the assailants had concealed their identities during the robbery attempt, no one at the scene was able to identify the perpetrators. Subsequent efforts to identify the assailants through fingerprint and DNA evidence were also unsuccessful.
Waggerby later admitted to his involvement in the robbery, telling investigators that he had met with men in the Harlem area of Clewiston prior to the robbery and directed them to rob a particular house on the reservation because a resident there was a marijuana dealer. As a result of an exhaustive law enforcement investigation, Brice and Holder were identified as perpetrators who had committed the attempted armed robbery on the reservation.
This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department, as part of the joint Federal Bureau of Investigation/Seminole Police Department Safe Trails Task Force, which has been in existence since 2010. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Simon Eth.
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.
Three Health Care Providers Agree to Pay $22.5 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Dignity Health (Dignity), a not-for-profit health system that owns and operates three hospitals and one clinic in Santa Barbara County and San Luis Obispo County, California, and Twin Cities Community Hospital (Twin Cities) and Sierra Vista Regional Medical Center (Sierra Vista), two acute healthcare facility subsidiaries of Tenet Healthcare Corporation operating in San Luis Obispo County, California, have agreed to pay a total of $22.5 million pursuant to two separate settlements to resolve allegations that they violated the federal False Claims Act and the California False Claims Act by causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if a California county organized health system (COHS) did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” the COHS was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The two settlements resolve allegations that Dignity, Twin Cities and Sierra Vista knowingly caused the submission of false claims to Medi-Cal for “Enhanced Services” that Dignity purportedly provided to the Adult Expansion patients of a COHS between Feb. 1, 2015, and June 30, 2016, and that Twin Cities and Sierra Vista purportedly provided to such patients between Jan. 1, 2014, and April 30, 2015. The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and the COHS; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of the settlements, Dignity will pay $13.5 million to the United States and $1.5 million to the State of California, and Twin Cities and Sierra Vista will pay $6.75 million to the United States and $750,000 to the State of California.
“When health care providers misuse Medicaid funds, they undermine the integrity of the Medicaid program and waste taxpayer funds,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “These settlements demonstrate the Department’s continued commitment to prevent providers from inappropriately using Medicaid or other federal health care programs for their own financial gain.”
“These health care providers siphoned critical Medicaid funding for their own gain instead of using it to provide health care services to patients most in need,” said U.S. Attorney Martin Estrada for the Central District of California. “These major settlements demonstrate our commitment to hold accountable health care providers that seek to exploit the Medicaid program and harm the American taxpayer.”
“Every day, Medi-Cal provides support for Californians in need of essential healthcare, and when companies take advantage of this system at the expense of patients, they must be held accountable,” said Attorney General Rob Bonta. “I want to express my gratitude to the U.S. Department of Justice and the U.S. Attorney’s Office in Los Angeles for their extensive efforts throughout the course of this investigation. The California Department of Justice will continue to prosecute corporations that seek to abuse the Medi-Cal system for their own benefit.”
“Bad actors who target and exploit Medicaid for unlawful profit drain the program of much-needed funds intended to support the health and safety of our nation’s individuals who need these resources the most,” stated Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services. “HHS-OIG readily applies our investigative aptitude to, with our law enforcement partners, pursue providers suspected of defrauding this and other federal health care programs.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, the former medical director of the COHS that contracted with Dignity, Twin Cities, and Sierra Vista for the provision of health care services under Medi-Cal. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Bordas v. Dignity Health and Tenet Healthcare Corporation, et al. (C.D. Cal.). Mr. Bordas will receive $3.9 million as his share of the federal recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Mary Beth Hickcox-Howard and Tiffany Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Three Central Coast Health Care Providers Agree to Pay $22.5 Million for Alleged False Claims to Medi-Cal ProgramRead the Press Release
LOS ANGELES – Pursuant to two settlements announced today, several Central Coast health care providers have agreed to pay a total of $22.5 million to resolve allegations that they violated federal and California law by causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Dignity Health, a not-for-profit health system that owns and operates three hospitals and one clinic in Santa Barbara and San Luis Obispo counties, entered into one agreement with the United States and the California. The second settlement agreement resolves allegations against Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two acute healthcare facility subsidiaries of Tenet Healthcare Corporation operating in San Luis Obispo County.
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if a California county organized health system (COHS) did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” the COHS was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The two settlements resolve allegations that Dignity, Twin Cities and Sierra Vista knowingly caused the submission of false claims to Medi-Cal for “Enhanced Services” that Dignity purportedly provided to the Adult Expansion patients of a COHS between February 1, 2015 and June 30, 2016, and that Twin Cities and Sierra Vista purportedly provided to such patients between January 1, 2014 and April 30, 2015.
The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and the COHS; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of its settlement, Dignity will pay $13.5 million to the United States and $1.5 million to the State of California. Twin Cities and Sierra Vista have agreed to pay $6.75 million to the United States and $750,000 to the State of California.
“These health care providers siphoned critical Medicaid funding for their own gain instead of using it to provide health care services to patients most in need,” said United States Attorney Martin Estrada. “These major settlements demonstrate our commitment to hold accountable health care providers that seek to exploit the Medicaid program and harm the American taxpayer.”
“When health care providers misuse Medicaid funds, they undermine the integrity of the Medicaid program and waste taxpayer funds,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “These settlements demonstrate the Department’s continued commitment to prevent providers from inappropriately using Medicaid or other federal health care programs for their own financial gain.”
“Every day, Medi-Cal provides support for Californians in need of essential healthcare, and when companies take advantage of this system at the expense of patients, they must be held accountable,” said Attorney General Rob Bonta. “I want to express my gratitude to the United States Department of Justice and the United States Attorney’s Office in Los Angeles for their extensive efforts throughout the course of this investigation. The California Department of Justice will continue to prosecute corporations that seek to abuse the Medi-Cal system for their own benefit.”
“Bad actors who target and exploit Medicaid for unlawful profit drain the program of much-needed funds intended to support the health and safety of our nation’s individuals who need these resources the most,” stated Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office. “HHS-OIG readily applies our investigative aptitude to, with our law enforcement partners, pursue providers suspected of defrauding this and other federal health care programs.”
The civil settlements include the resolution of claims brought under the qui tam, or whistleblower, provisions of the federal False Claims Act by Julio Bordas, the former medical director of the COHS that contracted with Dignity, Twin Cities and Sierra Vista for the provision of health care services under Medi-Cal. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Bordas will receive $3.9 million as his share of the federal recovery.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice. HHS-OIG and DHCS provided substantial assistance.
Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Trial Attorneys Mary Beth Hickcox-Howard and Tiffany Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this case.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Theranos President Sentenced to More Than 12 Years for Fraud That Jeopardized Patient Health and Bilked Investors of MillionsRead the Press Release
SAN JOSE – Ramesh “Sunny” Balwani was sentenced today to 155 months (12 years, 11 months) in federal prison for fraud that risked patient health by misrepresenting the accuracy of Theranos blood analysis technology and that defrauded Theranos investors of millions of dollars, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, Food and Drug Administration (FDA) Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, and U.S. Postal Inspection Service (USPIS) San Francisco Division Acting Inspector in Charge Kevin Rho. United States District Judge Edward J. Davila presided over his jury trial and imposed today’s sentence.
“Patient health is the highest priority of our healthcare system, and Silicon Valley has long been home to healthcare start-ups that enhance the care of patients through technological developments,” said U.S. Attorney Stephanie M. Hinds. “Ramesh Balwani, in a desire to become a Silicon Valley titan, valued business success and personal wealth far more than patient safety. He chose deceit over candor with patients in need of medical care, and he treated his investors no better. Today’s sentence should serve as a lesson to anyone considering fraud in their own push for success.” A link to a video statement by U.S. Attorney Hinds is available here: https://youtu.be/GmA6GqCng_8.
“Balwani not only deliberately concealed defects in Theranos' blood-testing technology to mislead investors, he knowingly put patients’ health at risk,” said FBI Special Agent in Charge Robert Tripp. “Today's sentence reflects years of dedication by the FBI and our partners to investigate fraud within Theranos and bring the company's leadership to justice.”
“Patients and their doctors rely on accurate, reliable test results to ensure a proper diagnosis of their condition. When individuals jeopardize patient health and put profits above the public health, the FDA will continue to investigate and bring them to justice,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen.
“Postal Inspectors and our law enforcement partners will continue to bring criminals to justice for schemes to defraud investors looking for innovation or concerned patients seeking health care,” said USPIS San Francisco Division Acting Inspector-In-Charge Kevin Rho. “Today’s sentence should be considered a serious message to anyone else who would engages in high tech medical quackery.”
Balwani, 57, of Fremont, Calif., was employed from September 2009 through July 2016 at Theranos, Inc. Over time he held the positions of board member, chief operating officer and president. Theranos, now defunct, was a blood testing company based in Palo Alto and Newark, Calif., that was founded in 2003 by Balwani’s former romantic partner Elizabeth Holmes, 38, of Woodside, Calif. Trial evidence showed that Balwani and Holmes, who was chairperson and CEO, claimed Theranos developed a revolutionary blood analyzer, variously referred to as the Theranos Sample Processing Unit (TSPU), the Edison, and the minilab. They described the Theranos blood analyzer device as a single device that could run any blood test run by conventional labs using only a small blood sample drawn via a fingerstick, rather than the traditional draw from a vein. Balwani and Holmes asserted that the Theranos proprietary analyzer produced results that were cheaper, more reliable and less variable than existing methods, and obtained results at a speed faster than ever before possible.
Among many other representations, Balwani reviewed and approved a 2013 Wall Street Journal article suggesting that Theranos had “devices that automate and miniaturize more than 1,000 laboratory tests” and stating that “Theranos’ processes are faster, cheaper, and more accurate than the conventional methods” and that “Theranos’ technology eliminates multiple lab trips because it can ‘run any combination of tests, including sets of follow-on tests,’ at once, very quickly, all from a single microsample.”
The descriptions approved by Balwani were false and misleading. Trial evidence demonstrated that both Balwani and Holmes knew that the analyzer performed only a few basic tests and was slower than existing devices. They repeatedly resorted to using conventional machines to obtain the blood test results that the Theranos analyzer was supposed to perform. However, they led investors and the public to believe that Theranos was conducting essentially all of its tests using only its Theranos analyzer. Evidence demonstrated that Balwani and Holmes were aware that the Theranos analyzer’s limited capabilities meant it could not compete in the market, but they nevertheless trumpeted false claims and representations about the analyzer’s capabilities and conspired to convince patients and investors that the claims were true.
Evidence at trial and examples in a sentencing memorandum filed by the government demonstrate the dark reality these misrepresentations created for patients. To portray Theranos as a legitimate enterprise, Theranos eventually offered the blood analyzer to the public to perform a “full range” of tests, despite internal protests from Theranos employees and even resignations by staff. Numerous misdiagnoses followed. A physician who testified at trial had sought Theranos testing and repeatedly received extremely elevated PSA results in comparison to earlier conventional tests. Elevated PSA is an indicator of prostate cancer. The Theranos results were later proved inaccurate when traditional, FDA-approved methods tests were run. In another example, a pregnant woman who had suffered multiple miscarriages obtained HCG values from Theranos testing that strongly indicated she was miscarrying again. However, confirmatory tests by conventional methods indicated a viable pregnancy, and the woman went on to deliver a healthy baby. This scenario played out with multiple pregnant women who received erroneous HCG results from Theranos tests. Even Theranos employees were not immune from inaccurate tests. One Theranos employee took blood-thinning medicine due to a history of blood clots and, when tested at Theranos, received a series of results that showed markedly different levels from previous conventional tests. As a result, a doctor adjusted employee’s medication. Confirmatory testing at a traditional lab showed the employee’s levels were normal; the medication adjustment had been unnecessary.
These types of test results occurred many times. Theranos itself eventually concluded a patient impact existed for every test run on a patient and voided all tests with its analyzer.
Amidst their repeated technology failures, trial evidence showed that Balwani and Holmes chose to continue deceiving their investor-victims and to proceed with the elaborate investor fraud conspiracy. They induced dozens of investors, many of whom were prominent public figures, to invest hundreds of millions of dollars in Theranos by using consistently glowing but false representations to investors and potential investors about the analyzer’s progress and its capabilities. Balwani and Holmes asserted to investors that the Theranos technology had been comprehensively validated by multiple major pharmaceutical companies and was being used by the Department of Defense to treat wounded soldiers where, it was represented, it “actually saved lives in the battlefield.” In truth, pharmaceutical companies did little work with Theranos and did not validate its technology, and the Department of Defense never used Theranos’ analyzer to clinically treat soldiers. False representations were also made that Theranos would dramatically increase its number of Wellness Centers within stores operated by its partner Walgreens from a few dozen to 900, despite Balwani and Holmes knowing at the time that the relationship with Walgreens was stagnating.
Trial evidence demonstrated that Balwani and Holmes continued to tout Theranos’ analyzer as a revolution in healthcare while misrepresenting the dire financial status of Theranos. Despite Theranos having zero revenue in 2012 and 2013, they represented to investors in late 2013 and 2014 that Theranos had hundreds of millions in revenue from a combination of pharmaceutical companies and the military. Balwani conspired to induce Walgreens and Safeway to invest in Theranos based on false pharmaceutical company endorsements and fantastical revenue projections. By March 2015, Theranos raised more than $730 million dollars from “Series C-1” and “Series C-2” investors who invested subsequent to Theranos’ public relations push in 2013.
Trial evidence showed the fraud brought spectacular personal wealth to Balwani. Balwani owned nearly 30 million shares of Theranos – over 6% of the company – which were worth hundreds of millions of dollars at the peak of the fraud. The government’s sentencing memo points out that, like Holmes, Balwani enjoyed the perks of serving as a Silicon Valley titan. Balwani’s yearned to “build the true American empire. A monopoly. Our obligation to USA.”Federal criminal charges were initially filed against Balwani and Holmes on June 14, 2018. On July 28, 2020, a federal grand jury returned a superseding indictment charging both with two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and ten counts of wire fraud, in violation of 18 U.S.C. § 1343. Of the two conspiracy counts, one alleged Balwani and Holmes conspired to defraud investors and the second alleged Balwani and Holmes conspired to defraud patients who used Theranos services. Some of the ten counts of wire fraud alleged Balwani and Holmes committed fraud on individual investors while others alleged Balwani and Holmes defrauded patients who were induced to purchase Theranos services.
On July 7, 2022, after a four month trial, a federal jury convicted Balwani of all counts.
Balwani was tried separately from Holmes, and in her trial Holmes was not convicted of all counts. On January 3, 2022, a different federal jury convicted Holmes of one count of conspiracy to commit fraud on investors and three counts of committing fraud on individual investors, which involved wire transfers totaling more than $140 million. The jury acquitted Holmes of the patient-related fraud conspiracy count and the three counts of fraud against individual patients. The jury could not reach a unanimous verdict with respect to three individual investor fraud counts against Holmes. An additional count of wire fraud relating to a Theranos patient had been dismissed during trial. On November 18, 2022, U.S. District Judge Davila sentenced Holmes to 135 months (11 years, 3 months) in federal prison. She was ordered to surrender to begin serving her sentence on April 27, 2023.
In addition to the 155 month prison term, U.S. District Judge Davila sentenced Balwani to three years of supervision following release from prison. A hearing to determine the amount of restitution to be paid by Balwani is to be scheduled in the future. Balwani was ordered to surrender on March 15, 2023, to begin serving his prison sentence.
Assistant U.S. Attorneys Robert S. Leach, Jeff Schenk, John C. Bostic, and Kelly Volkar prosecuted the case with the assistance of Madeline Wachs, Lakisha Holliman, Sara Slattery, Elise Etter, Susan Kreider, and Leeya Kekona. The prosecution is the result of an investigation by the FBI, USPIS, and the FDA Office of Criminal Investigations.
The United States Attorney of Puerto Rico and the FBI San Juan Encourage You to Think Before You Post (#ThinkBeforeYouPost)Read the Press Release
SAN JUAN, Puerto Rico –The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, and the Special Agent in Charge (SAC) of the San Juan Office of the Federal Bureau of Investigation (FBI), Joseph González, today warned the public about the serious consequences of issuing threats to schools or colleagues and reminded the community that hoax threats are no joke.
“Making a threat against the safety of a person or an organization through social media, by text message, or by email is a federal crime for constituting a threat through interstate communications. Those who post or send such threats can receive up to five years in federal prison, or may face charges before the courts in Puerto Rico,” said US Attorney Muldrow. He also added that “a reckless and impetuous comment on social media could result in our youth beginning their adult life in prison and becoming labeled as criminals for the rest of their days. It is necessary to educate them to avoid such dire consequences.”
“Public safety is our number one concern. When it comes to threats to schools and other public places, our posture is to treat all threats as credible to ensure public safety and thoroughly investigate the origin of every threat,” said SAC González. “We will follow every tip to get to the bottom of each occurrence. So, to those making hoax threats, know that, even if you never intended to carry them out, threatening a school is not a joke. It is a serious federal crime which could result in up to five years in prison.”
Public assistance is crucial to support the efforts of federal and state agencies to counter this trend. Therefore, people with information about any possible threat or suspicious activity that puts security in schools and in the community at risk should contact the FBI in San Juan by calling 787-987-6500.
Also, if you understand that your safety or the safety of others is in imminent danger, call 9-1-1 immediately.
We wish to emphasize that threats to schools and other organizations not only cause serious emotional distress to students, school staff, and parents, but also create a great social toll. Schools lose valuable teaching time responding to these threats, and state and federal law enforcement agencies spend countless man hours and resources investigating each threat to determine its credibility and protect the public. Furthermore, a young person can ruin their future by making a false threat to a school and end up being prosecuted.
For all these reasons, please think before you post. #ThinkBeforeYouPost
What can you do to help?
1. Never post or send false threats… period.
2. If you are the subject of an online threat, alert your local authorities immediately.
3. If you see a threat posted on social media, contact the authorities and the FBI immediately.
4. Notify authorities, but do not share or distribute the threat until authorities have had a chance to investigate – doing so can spread incorrect information and cause panic in the community.
5. If you are a parent or relative, be aware that some young people post these threats seeking attention, revenge, or to manipulate. Talk to the children and young people in your care about the correct way to express your frustrations and other emotions. Explain to them the importance of responsible use of social networks and the consequences of posting false threats.
Additional Resources:
- https://www.fbi.gov/image-repository/think-before-you-post-hoax-threats-graphic-052318.jpg
- Think Before You Post PSA
###
Fiscalía Federal de Puerto Rico y el FBI San Juan
Exhortan a Pensar Antes de Publicar (#ThinkBeforeYouPost)
SAN JUAN, Puerto Rico – El Fiscal Federal para el Distrito de Puerto Rico, W. Stephen Muldrow, y el Agente Especial a Cargo de la Oficina de San Juan del Negociado Federal de Investigación (FBI, por sus siglas en inglés), Joseph González, advirtieron hoy a la ciudadanía sobre las serias consecuencias de emitir amenazas a escuelas o compañeros, y recordaron a la comunidad que las amenazas falsas o “hoax threats” no son cosa de bromas.
“Hacer una amenaza contra la seguridad de una persona o una organización a través de las redes sociales, por mensaje de texto, o por correo electrónico es un delito federal por constituir una amenaza mediante comunicaciones interestatales. Aquellos que publiquen o envíen dichas amenazas pueden recibir hasta cinco años en una prisión federal, o pueden enfrentar cargos ante los tribunales en Puerto Rico”, comentó el Fiscal Federal Muldrow. También añadió que “un comentario imprudente e impetuoso en las redes sociales pudiese resultar en que nuestros jóvenes comiencen su vida adulta en prisión y que lleguen a ser etiquetados como delincuentes por el resto de sus días. Es necesario educarlos para evitar tan nefastas consecuencias”.
“La seguridad pública es nuestra prioridad número uno. Cuando se trata de amenazas a escuelas y otros lugares públicos, nuestra postura es de tratar toda amenaza como si fuese creíble para garantizar la seguridad del público”, dijo González, quien dirige el FBI en Puerto Rico. “Seguiremos cada pista y llegaremos hasta el final de cada uno de estos eventos. Para aquellos que estén realizando estas amenazas, sepan que, aún si nunca tuvo la intención de cometer un delito, una amenaza de esta naturaleza no es un chiste. La mera amenaza es un crimen federal serio que conlleva hasta cinco años de cárcel”.
La asistencia del público es crucial para apoyar los esfuerzos de las agencias federales y estatales de contrarrestar esta tendencia. Por eso, las personas con información sobre cualquier posible amenaza o actividad sospechosa que ponga en riesgo la seguridad en las escuelas y en la comunidad deben contactar al FBI en San Juan llamando al 787-987-6500.
Además, si usted entiende que su seguridad o la seguridad de otros está en peligro inminente, llame al 9-1-1 inmediatamente.
Deseamos recalcar que las amenazas a escuelas y otras organizaciones no sólo causan angustia emocional grave a los estudiantes, el personal escolar y los padres, sino que también crean un gran cargo social. Las escuelas pierden tiempo valioso de enseñanza al tener que responder a estas amenazas, y las agencias estatales y federales de ley y orden dedican incontables horas de trabajo y una gran cantidad de recursos investigando cada amenaza para determinar su credibilidad y proteger a la ciudadanía. Mas aún, una persona joven puede arruinar su futuro al realizar una amenaza falsa a una escuela y terminar siendo procesado.
Por todas estas razones, por favor, piense antes de publicar. #ThinkBeforeYouPost
¿Qué puede hacer para ayudar?
- Nunca publique o envíe amenazas falsas… punto.
- Si usted es objeto de una amenaza en línea, alerte a las autoridades locales de inmediato.
- Si usted ve una amenaza publicada en las redes sociales, contacte a las autoridades y al FBI de inmediato.
- Notifique a las autoridades, pero no comparta ni distribuya la amenaza hasta que las autoridades hayan tenido la oportunidad de investigar – hacerlo puede difundir información incorrecta y ocasionar pánico en la comunidad.
- Si usted es padre, madre o familiar, sepa que algunos jóvenes publican estas amenazas buscando atención, venganza o para manipular. Hable con los niños y jóvenes a su cargo sobre la forma correcta de expresar sus frustraciones y otras emociones. Explíqueles sobre la importancia del uso responsable de las redes sociales y de las consecuencias de publicar amenazas falsas.
Recursos adicionales:
- https://www.fbi.gov/image-repository/think-before-you-post-hoax-threats-graphic-052318.jpg
- Think Before You Post PSA
###
Texas Man Sentenced for Mail Fraud in Financial SchemeRead the Press Release
Acting United States Attorney Steven Russell announced that Frederick Voight, 65, of Richmond, Texas, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for mail fraud. Voight was sentenced to 66 months in prison and will also serve 3 years on supervised release. There is no parole in the federal system. Voight was also ordered to pay restitution to the victims in the case in the amount of $40,903,052.09.
Between September 2009 and October 4, 2018, Voight conducted business through various business entities, including F.A. Voight and Associates, LP, (FAVA), Voight Financial Services, Inc. and Daystar Funding, LP. Voight represented to investors that he would search for companies that had an "excellent and innovative product in a growing market" but were short of cash needed to take their product to market. Voight further represented that his business entities pooled investor funds and provided financing to companies in the form of secured loans with equity components in some transactions. Voight knowingly failed to disclose certain material facts to lenders and potential lenders in correspondence and other materials that he knew the lenders and potential lenders would rely on in deciding whether to loan their monies to business entities owned by and/or affiliated with Voight, and/or to renew or "rollover" existing loans instead of being repaid their principal. These omissions, combined with other statements made to the lenders and potential lenders, led some lenders and potential lenders to believe that the full amount of money they lent to Voight's entities would in turn be invested in specifically identified companies, referred to as "program companies."
As Voight knew, most of the money received from the lenders was not in turn invested directly into the program companies. Instead, interest payments and principal repayments made by Voight to investors generally did not come from interest payments made by the program companies but instead was primarily derived from the proceeds of new loans from lenders. Voight failed to disclose to lenders the material fact that he was making interest payments to other lenders with funds acquired from new lenders and/or new loan monies from prior lenders into Voight's "Programs." By failing to provide them with information about the source of their interest and the use of their funds, Voight deprived lenders of materially valuable information needed to decide how to use their assets and monies.
With respect to the count Voight pleaded guilty to, as part of the scheme, Voight knowingly caused items to be sent and placed in the U.S. Mail from victims in Holdrege, Nebraska, to the office of FAVA in Richmond, Texas on February 4, 2013. The items mailed included a check in the amount of $45,000 payable to FAVA, for the "RevH2O program". The items represented the proceeds of a loan made by the victims with the belief that the proceeds of their loan to Voight's company would in turn be used by Voight's company to provide funding to RevH2O. In truth and fact, as Voight well knew, the money provided by the victims did not go to RevH20 but was in fact used primarily to pay interest payments to other lenders without the knowledge or consent of the victims. The victims were never told by Voight how their money was actually used, depriving them of material information regarding the use of their investment.
“Today’s sentence of Frederick Voight shows the resolve and determination of the U.S. Postal Inspection Service and our law enforcement partners to bring criminals to justice,” said Ruth Mendonça, Postal Inspector in Charge of the Denver Division, which includes oversight of operations in Nebraska. “Mr. Voight’s success with defrauding so many individuals emphasizes how important it is to exercise caution when investing, no matter how much trust you have in the individual or company you are investing with. Fortunately, the U.S. Postal Inspection Service and our law enforcement partners will continue to be steadfast in identifying and investigating fraudulent investment schemes dependent on the U.S. Mail to defraud investors.”
During the course of Voight’s scheme to defraud, the investors and related business entities lost approximately $40,903,052.09.
This case was investigated by the United States Postal Service Office of Investigations, the Federal Bureau of Investigation and the Internal Revenue Service.
Stafford Man Pleads Guilty to Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID KAMAL, 60, of Stafford, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to tax evasion.
According to court documents and statements made in court, Kamal, who formerly resided in Hebron, willfully evaded taxes for the 2012 tax year by filing a false tax return for that year. On the tax return, Kamal claimed false deductions, including deductions for moving expenses and medical expenses he had not incurred. Kamal subsequently provided false documentation for the moving expenses, including invoices and bank statements, to an attorney for the IRS in connection with U.S. tax court proceedings. Kamal also filed false tax returns for the 2013 through 2017 tax years by claiming false and inflated unreimbursed medical and dental expenses.
Kamal has agreed to cooperate with the IRS to pay $163,264 in back taxes, as well interest and penalties.
Judge Shea scheduled sentencing for March 2, at which time Kamal faces a maximum term of imprisonment of five years. Kamal is released on a $50,000 bond pending sentencing.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Spokane Man Sentenced to 27 Years for Child Sex TraffickingRead the Press Release
Spokane – On December 7, 2022, U.S. District Judge Thomas O. Rice sentenced Trever Daniel Harder, 35, of Spokane, to 27 years in prison for engaging in the sex trafficking of a six-year-old girl. Upon his release from prison, Harder will be on federal supervision for the remainder of his life, and he will be required to register as a sex offender. The Court also ordered Harder to pay nearly $30,000 in restitution, along with a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act.
According to court documents and proceedings, Harder met an adult woman online in early 2021 using the social media application “Plenty of Fish.” Within days, Harder sought out sexual contact with a minor child to whom the adult woman had access. Harder and the adult woman negotiated a series of transactions in which Harder gained sexual access to the child by providing the adult woman with a place to stay, cash, and the promise of new Nike sneakers. Harder then engaged in illicit sexual acts with the minor victim. Earlier this year, the adult woman was convicted of conspiracy to engage in the sex trafficking of a child, and Judge Rice imposed a multi-decade sentence on her, as well.
“Today the Court addressed the egregious sexual abuse of a child. Its sentence is significant, but it pales in comparison to what the child has endured,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “No sentence can return the child’s innocence, but our community is safer and stronger with these two defendants in federal prison. Most important, the child is now in a safe place.” U.S. Attorney Waldref emphasized the vigilance with which law enforcement protects children from sexual harm: “My office will continue to prioritize cases involving individuals who seek to exploit and abuse children online or in person.”
David M. Herzog, the Assistant United States Attorney who prosecuted the case, thanked the agencies responsible for the investigation and the protection of the young victim. “Incredibly dedicated FBI agents worked hand-in-hand with state, local, and tribal law enforcement to secure justice for the victim in this case and to protect this child from further sexual abuse.”
“The defendant’s conduct in this case was horrific,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “I commend the professionalism and dedication of our investigators and partners, who sought justice for a child who could not seek it on her own.”This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department, with significant assistance from the Quileute Nation. The case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
United States v. Harder, 2:21-CR-00165-TOR-1South Florida Woman Sentenced to 3 Years for Her Role in A Health Care Fraud ConspiracyRead the Press Release
Tampa, FL – U.S. District Judge Virginia Hernandez Covington has sentenced Ruth Bianca Fernandez (39, Pompano Beach) to three years in federal prison for her role in a conspiracy to commit health care fraud and for making a false statement in a matter involving a federal health care benefit program. As part of her sentence, the court ordered Fernandez to pay approximately $12 million to the affected government health programs and an insurance company, which obligation is joint and several with other coconspirators. The court also entered an order of forfeiture against Fernandez in the amount of $62,650. Fernandez had pleaded guilty on October 18, 2021.
According to court documents, beginning in January 2018 and continuing into April 2019, Patsy Truglia, previously sentenced to a 15-year term of imprisonment, Fernandez, who worked directly under Truglia’s supervision and direction, and other conspirators generated medically unnecessary physicians’ orders via their telemarketing operation for certain orthotic devices—knee braces, back braces, wrist braces, and other braces—referred to as durable medical equipment (“DME”). Through the telemarketing operation, federal health care program beneficiaries’ (i.e., Medicare beneficiaries’) personal and medical information was harvested to create the unnecessary DME brace orders. The brace orders were then forwarded to purported “telemedicine” vendors that, in exchange for a fee, paid illegal bribes to physicians to sign the orders, often without ever contacting the beneficiaries to conduct the required telehealth consultations. The fraudulent, illegal brace orders were then returned to Truglia’s telemarketing operation, which used the orders as support for millions of dollars in false and fraudulent claims submitted to the Medicare program. To avoid Medicare scrutiny, Truglia and Fernandez spread the fraudulent claims across five DME storefronts operated under Truglia’s control and Fernandez’s day-to-day management. In all, through their five storefronts, Truglia, Fernandez, and other conspirators caused approximately $25 million in fraudulent DME claims to be submitted to Medicare, resulting in approximately $12 million in payments.
“Submitting fraudulent claims to Medicare for medically unnecessary equipment diverts funding meant to cover the cost of caring for vulnerable beneficiaries,” stated Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to work with our law enforcement partners to identify and hold accountable bad actors who commit health care fraud.”
“This investigation reflects the FBI’s continuing efforts to safeguard Federal healthcare programs from greed-fueled fraud schemes,” said FBI Tampa Division Special Agent in Charge David Walker.
“This sentence today holds the defendant accountable for her role in a fraud scheme that bilked federal healthcare programs out of millions of dollars. The VA OIG is committed to rooting out fraud committed against healthcare programs for veterans and their families,” said Special Agent in Charge David Spilker of the VA Office of Inspector General’s Southeast Field Office. “We commend the collaborative efforts of our law enforcement partners in this important joint investigation.”
“Health care fraud is not a victimless crime. We all pay in multiple ways: the U.S. Treasury loses tens of billions of dollars per year and higher health care premiums are passed on to patients as a result of these scams,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “IRS-CI and our federal partners take the criminal acts committed by this defendant, and others, very seriously and will continue to follow fraudulent money flows no matter the underlying crime.”
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service –Criminal Investigation’s Tampa Field Office. The criminal case was prosecuted by Assistant United States Attorneys Jay G. Trezevant, Tiffany E. Fields, and James A. Muench. A related federal civil action is being handled by Assistant United States Attorney Carolyn B. Tapie.
Sheridan Man Sentenced to 8 Years in Federal Prison for Distributing Child PornRead the Press Release
FAYETTEVILLE – A Sheridan, Arkansas man was sentenced yesterday to 96 months in prison without the possibility of parole on one count of Distribution of Child Pornography. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, Joshua Landon Hall, age 30, was identified by Homeland Security Investigations (HSI) pursuant to an ongoing child pornography investigation in November 2020. HSI’s investigation showed that Hall had sent child pornography to another user via online social media applications. HSI executed a federal search warrant on Hall’s residence and continued their investigation.
Hall pled guilty to an Information in May 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Fayetteville, and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force investigated the case.
Assistant U.S. Attorney Carly Marshall prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to 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.
Seven Chilton County Residents Sentenced for Felony Violations of the Animal Welfare Act, Ending One of the Largest Cockfighting Operations in the CountryRead the Press Release
MONTGOMERY, ALABAMA – A seventh and final Verbena, Alabama, resident was sentenced yesterday for violating the Animal Welfare Act’s prohibition against animal fighting ventures in connection with an expansive cockfighting operation. This marks the end of a series of sentencings in which the Court held four Alabama residents accountable for their roles in operating a large-scale cockfighting arena (cockfighting pit) and massive fighting-bird breeding businesses, and for conspiring to violate the Animal Welfare Act and to operate an illegal gambling business. The Court determined that the illegal conduct involved animal fighting on an “exceptional scale” and imposed sentences which reflect the unusual cruelty of a business model that relies on the death or injury of thousands of birds for entertainment and profit.
The court issued the following sentences for four defendants who pleaded guilty to multiple felonies on August 5:
- On Dec. 6, George William “Billy” Easterling, 56, was sentenced to 22 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, Brent Colon Easterling, 38, was sentenced to 24 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the L&L Gamefarm fighting-bird breeding operation.
- On Nov. 30, William “Tyler” Easterling, 30, was sentenced to 20 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, William Colon “Jim” Easterling, 77, was sentenced to two years of home detention — rather than incarceration which the court determined would be “extremely detrimental” to his declining health — and a fine of $8,000 for violating the Animal Welfare Act’s prohibition against animal fighting ventures and for conspiring with others to violate the Act and to operate an illegal gambling business in connection with the cockfighting pit.
Three other residents of Verbena, Alabama, who are also members of the Easterling family, pleaded guilty on June 3 to conspiring to violate the Animal Welfare Act or to a substantive violation of the Act. On Oct.13, the following individuals were sentenced:
- Kassi Brook Easterling, 39, was sentenced to two years of probation, including six months of home detention, for conspiring with others to violate the Animal Welfare Act’s prohibition against animal fighting ventures, including the sale of cockfighting knives, and for her involvement with the L&L Gamefarm fighting-bird breeding operation.
- Amber Nicole Easterling, 25, was sentenced to one year of probation for her involvement with the cockfighting pit.
- Thomas Glyn “Junior” Williams, 34, was sentenced to one year of probation for his involvement with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
“These sentences demonstrate the importance of enforcing the Animal Welfare Act to ensure the humane treatment of animals and prohibit cruel practices such as cockfighting,” said United States Attorney Sandra Stewart for the Middle District of Alabama.
“As these sentences vividly show, the Department of Justice will continue to hold accountable those who encourage and profit from forcing animals to fight each other for human entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) actively investigates allegations of animal abuse and any associated gambling activities,” said Special Agent in Charge Jason Williams of the USDA-OIG. “This agency has made animal fighting a high priority to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to thank the Justice Department for aggressively prosecuting perpetrators of animal fighting and our federal, state, and local law enforcement partners for assisting in enforcing these federal statutes.”
According to court documents and information in the public record, from at least January 2018 through June 11, 2021, illegal cockfighting events were held at the cockfighting pit, which consisted of an arena with stadium-style seating for approximately 150 people which faced several cockfighting pits and several nearby outbuildings including a merchandise stand. The illegal derbies involved a series of cockfights in which at least two or more roosters fought each other, each with a sharp blade attached to its leg. These fights were conducted for the purpose of sport, wagering, and entertainment. Participants were charged expensive fees to enter their birds in the derbies – such as $1,500 to fight seven roosters – and told what weapons to strap to the roosters’ legs, such as short knives, long knives, or spurs. Consistent with his plea agreement, William Colon Easterling dismantled and destroyed the entire cockfighting arena and associated outbuildings.
Near the cockfighting pit, members of the Easterling family ran two large fighting-bird breeding businesses known as Swift Creek Gamefarm and L&L Gamefarm at which thousands of birds were bred and sold to be used in fights between two or more birds for the purposes of sport, wagering, or entertainment.
Combined, the seven convicted members of the Easterling family helped run one of the largest cockfighting enterprises in the country. With the help of six of his family members, Jim Easterling owned and operated the cockfighting pit for many years, even enlisting his granddaughter, Amber Easterling, to sell weapons used to kill birds in cockfights at the merchandise stand. Brent Easterling was one of the most widely known fighting-bird breeders in the country, running L&L Gamefarm with his wife Kassi Easterling and charging $1,500 for three chickens because they were birds of select fighting pedigrees. Brent Easterling also promoted the cockfights at his father’s, Jim, cockfighting pit. Tyler Easterling helped his father, Billy Easterling, operate a vast fighting-bird breeding business known as Swift Creek Gamefarm where they employed their in-law, Junior Williams, and others to help maintain and ship fighting birds. Tyler Easterling also promoted several cockfights at his grandfather’s, Jim, cockfighting pit.
The USDA-OIG and Homeland Security Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Alabama Law Enforcement Agency and the Greenville County Sheriff’s Office in South Carolina provided invaluable assistance to federal law enforcement officers.
Trial Attorney Leigh Rendé and Senior Trial Attorney Gary Donner of the Environment and Natural Resources Division’s Environmental Crimes Section and First Assistant U.S. Attorney Jonathan Ross for the Middle District of Alabama prosecuted the case.
Seven Alabama Residents Sentenced for Felony Violations of the Animal Welfare Act, Ending One of the Largest Cockfighting Operations in the CountryRead the Press Release
A seventh and final Verbena, Alabama, resident was sentenced yesterday for violating the Animal Welfare Act’s prohibition against animal fighting ventures in connection with an expansive cockfighting operation. This marks the end of a week of sentencings in which the court held four Alabama residents accountable for their roles in operating a large-scale cockfighting arena (cockfighting pit) and massive fighting-bird breeding businesses, and for conspiring to violate the Animal Welfare Act and to operate an illegal gambling business. The court determined that the illegal conduct involved animal fighting on an “exceptional scale” and imposed sentences which reflect the unusual cruelty of a business model that relies on the death or injury of thousands of birds for entertainment and profit.
The court issued the following sentences for four defendants who pleaded guilty to multiple felonies on Aug. 5:
- On Dec. 6, George William “Billy” Easterling, 56, was sentenced to 22 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, Brent Colon Easterling, 38, was sentenced to 24 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the L&L Gamefarm fighting-bird breeding operation.
- On Nov. 30, William “Tyler” Easterling, 30, was sentenced to 20 months in prison followed by one year of supervised release for violating the Animal Welfare Act’s prohibition against animal fighting and for conspiring with others to violate the Act in connection with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
- On Nov. 30, William Colon “Jim” Easterling, 77, was sentenced to two years of home detention — rather than incarceration which the court determined would be “extremely detrimental” to his declining health — and a fine of $8,000 for violating the Animal Welfare Act’s prohibition against animal fighting ventures and for conspiring with others to violate the Act and to operate an illegal gambling business in connection with the cockfighting pit.
Three other residents of Verbena, Alabama, who are also members of the Easterling family, pleaded guilty on June 3 to conspiring to violate the Animal Welfare Act or to a substantive violation of the Act. On Oct.13, the following individuals were sentenced:
- Kassi Brook Easterling, 39, was sentenced to two years of probation, including six months of home detention, for conspiring with others to violate the Animal Welfare Act’s prohibition against animal fighting ventures, including the sale of cockfighting knives, and for her involvement with the L&L Gamefarm fighting-bird breeding operation.
- Amber Nicole Easterling, 25, was sentenced to one year of probation for her involvement with the cockfighting pit.
- Thomas Glyn “Junior” Williams, 34, was sentenced to one year of probation for his involvement with the cockfighting pit and the Swift Creek Gamefarm fighting-bird breeding operation.
“As these sentences vividly show, the Department of Justice will continue to hold accountable those who encourage and profit from forcing animals to fight each other for human entertainment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“These sentences demonstrate the importance of enforcing the Animal Welfare Act to ensure the humane treatment of animals and prohibit cruel practices such as cockfighting,” said U.S. Attorney Sandra Stewart for the Middle District of Alabama.
“The U.S. Department of Agriculture Office of Inspector General (USDA-OIG) actively investigates allegations of animal abuse and any associated gambling activities,” said Special Agent in Charge Jason Williams of the USDA-OIG. “This agency has made animal fighting a high priority to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to thank the Justice Department for aggressively prosecuting perpetrators of animal fighting and our federal, state and local law enforcement partners for assisting in enforcing these federal statutes.”
According to court documents and information in the public record, from at least January 2018 through June 11, 2021, illegal cockfighting events were held at the cockfighting pit, which consisted of an arena with stadium-style seating for approximately 150 people which faced several cockfighting pits and several nearby outbuildings including a merchandise stand. The illegal derbies involved a series of cockfights in which at least two or more roosters fought each other, each with a sharp blade attached to its leg. These fights were conducted for the purpose of sport, wagering and entertainment. Participants were charged expensive fees to enter their birds in the derbies – such as $1,500 to fight seven roosters – and told what weapons to strap to the roosters’ legs, such as short knives, long knives or spurs. Consistent with his plea agreement, William Colon Easterling dismantled and destroyed the entire cockfighting arena and associated outbuildings.
Near the cockfighting pit, members of the Easterling family ran two large fighting-bird breeding businesses known as Swift Creek Gamefarm and L&L Gamefarm at which thousands of birds were bred and sold to be used in fights between two or more birds for the purposes of sport, wagering or entertainment.
Combined, the seven convicted members of the Easterling family helped run one of the largest cockfighting enterprises in the country. With the help of six of his family members, Jim Easterling owned and operated the cockfighting pit for many years, even enlisting his granddaughter, Amber Easterling, to sell weapons used to kill birds in cockfights at the merchandise stand. Brent Easterling was one of the most widely-known fighting-bird breeders in the country, running L&L Gamefarm with his wife Kassi Easterling and charging $1,500 for three chickens because they were birds of select fighting pedigrees. Brent Easterling also promoted the cockfights at his father’s, Jim, cockfighting pit. Tyler Easterling helped his father, Billy Easterling, operate a vast fighting-bird breeding business known as Swift Creek Gamefarm where they employed their in-law, Junior Williams, and others to help maintain and ship fighting birds. Tyler Easterling also promoted several cockfights at his grandfather’s, Jim, cockfighting pit.
The USDA-OIG and Homeland Security Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Alabama Law Enforcement Agency and the Greenville County Sheriff’s Office in South Carolina provided invaluable assistance to federal law enforcement officers.
Trial Attorney Leigh Rendé and Senior Trial Attorney Gary Donner of the Environment and Natural Resources Division’s Environmental Crimes Section and First Assistant U.S. Attorney Jonathan Ross for the Middle District of Alabama prosecuted the case.
Russian Intelligence Agent Charged with Fraud and Money Laundering in Connection with Purchase and Use of Luxury Beverly Hills Real EstateRead the Press Release
A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly purchased the properties in violation of new U.S. sanctions imposed earlier this year and concealed his interest in the transactions. Derkach remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Andrew Adams, Director of Task Force Kleptocapture announced the charges.
“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing, and capable of exploiting our banking system in order to advance his illicit goals. The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”
“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services. While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions,” stated Assistant Director-in-Charge Driscoll.
“Attempting to enjoy the safety, security, and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force. It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections,” said Task Force KleptoCapture Director Andrew C. Adams.
Since 1998, except for a hiatus from November 2006 to November 2007, Derkach was a member of the Verkhovna Rada (Rada), Ukraine’s Parliament. During his time in the Rada, Derkach was a member of the Party of Regions, a pro-Russia political party, which was the ruling party in Ukraine from 2010 until the 2014 Ukrainian Euromaidan Revolution. On September 10, 2020 the United States Department of Treasury’s Office of Foreign Asset Control (OFAC) sanctioned Derkach and several companies he controlled pursuant to Executive Order 13848, calling him “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services” who “waged a covert influence campaign” to undermine the 2020 U.S. presidential election.
As alleged in the indictment, beginning in 2013, Derkach and a co-conspirator devised a scheme to purchase and maintain two luxury condominiums in Beverly Hills while concealing his interest in the transactions from U.S. financial institutions. Specifically, Derkach used the services of a corporate nominee, a multi-tiered structure of California-based shell companies, and numerous U.S. bank and brokerage accounts. Using this framework, Derkach wired approximately $3.92 million to the nominee from overseas accounts in Latvia and Switzerland belonging to companies registered in the British Virgin Islands. The money was then used to pay $3.2 million in cash in the name of a corporate entity set up by the nominee, with Derkach having no visible affiliation with the purchase. The remaining $800,000 was invested in a brokerage account maintained by the nominee for Derkach’s benefit and used to pay expenses on the condominiums, including taxes, homeowners’ fees, and utilities. Because Derkach had fraudulently obscured details about his identity and involvement from the financial institutions holding the aforementioned bank and brokerage accounts, he prevented those financial institutions from moving funds into blocked accounts, and instead caused those financial institutions to engage in transactions involving blocked funds and transactions for the benefit of the condominiums, which were blocked property pursuant to the sanctions.
A parallel civil forfeiture action has been initiated to seize the condominiums and the remaining funds in the U.S. brokerage and bank accounts that Derkach controls.
If convicted, Derkach faces a maximum of 30 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section and Litigation Analyst Ben Richmond. Assistant United States Attorney Madeline O’Connor of the Office’s Asset Recovery Section is handling forfeiture matters.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by Attorney General Merrick Garland on March 2, 2022 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The Defendant:
ANDRII DERKACH
Age: 55
Dnipropetrovsk, UkraineE.D.N.Y. Docket No.: 22-Cr-432 (DLI)
Rochester Man Going to Prison for Planning the Robbery by Gunpoint of A Cell Phone StoreRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney Trini E. Ross announced today that James A. Houston a/k/a Hood, 36, of Rochester, NY, who was convicted of Hobbs Act robbery and brandishing a firearm during a crime of violence, was sentenced to serve 84 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Robert A. Marangola, who handled the case, stated Houston, along with co-defendants Troy L. McCullough, Raekwon D. Fuqua, and others, robbed the AT&T store on E. Ridge Road in Irondequoit on December 3, 2019. Defendant McCullough entered the store wearing a mask and gloves and brandishing and pointing a firearm at a store employee, ordering the employee to open the store safe. McCullough and co-defendant Fuqua then stole approximately 32 cellular phones from the safe and left the store. The telephones were valued at approximately $32,344. James Houston planned the robbery, enlisted others to participate, made arrangements to sell the stolen cell phones, and conducted surveillance outside the store before and during the robbery. The stolen cell phones were recovered at a residence on Champlain Street in Rochester.
McCullough and Fuqua were previously convicted and sentenced to serve 262 months and 64 months in prison respectively.
The sentencing is the culmination of an investigation the Bureau of Alcohol. Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, the Rochester Police Department, under the direction of Chief David Smith and the Irondequoit Police Department, under the direction of Chief Alan Laird.
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Roane County Man Sentenced to Prison After Pipe Bomb FoundRead the Press Release
CHARLESTON, W.Va. – Joseph David Bailey, 52, of Spencer, was sentenced today to one year and one day in prison, to be followed by three years of supervised release, for possessing an unregistered destructive device.
According to court documents and statements made in court, on December 24, 2020, law enforcement officers executed a search warrant at Bailey’s residence and found a completed pipe bomb as well as five unfinished pipe bombs in various stages of completion. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the completed pipe bomb was a destructive device and that Bailey did not register it with the National Firearms Registration and Transfer Record.
United States Attorney Will Thompson made the announcement and commended the investigative work of the ATF and the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-249.
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Revere Man Pleads Guilty to Drug and Firearm PossessionRead the Press Release
BOSTON – A Revere man pleaded guilty yesterday to possessing cocaine and fentanyl as well as receiving a firearm while under indictment for felony charges.
Cesar Rivera, 23, pleaded guilty to one count of possession with intent to distribute cocaine and fentanyl and one count of receipt of a firearm while under indictment for felony charges. U.S. District Court Judge Richard G. Stearns scheduled sentencing for April 6, 2023. Rivera was indicted by a federal grand jury on Jan. 12, 2022. He has been in federal custody since July 2021.
In December 2020, Rivera was wanted on outstanding warrants on multiple state gun cases for which he had failed to respond court summonses or appear in court for over a year. On Dec. 22, 2020, law enforcement located Rivera at a carwash in Malden and was subsequently arrested. At the time of his arrest, Rivera was carrying approximately 28 grams of crack cocaine, fentanyl and a Glock firearm.
In October 2020, two months prior to his arrest, while wanted on the outstanding warrants, Rivera and another individual named Phillips Charles (charged separately) had a brief encounter with a rival gang member, his girlfriend and their one-year-old child at the Square One Mall in Saugus. After the encounter, Rivera and Charles pursued the victim and his family and fired at least seven rounds into their vehicle. Following Rivera’s arrest, ballistics examination of the Glock firearm recovered from Rivera in December 2020 revealed that it had been used in the October 2020 shooting.
On Sept. 7, Charles was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 78 months in prison and four years of supervised release.
The charge of possession with intent to distribute cocaine and fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $5 million. The charge of possession of firearm in furtherance of a drug trafficking crime provides for a sentence of at least five years and up to life in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Malden Police Chief Kevin Molis made the announcement. Valuable assistance was provided by the Massachusetts State Police; the Middlesex County and Suffolk County District Attorney’s Offices; and the Boston Police Department. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime and Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Rapper Who Boasted in Music Video About Committing COVID Fraud Sentenced to over 6 Years in Prison on Fraud, Gun and Drug CrimesRead the Press Release
LOS ANGELES – A rapper who boasted in a YouTube music video about getting rich quickly by scamming a COVID relief program was sentenced today to 77 months in federal prison.
Fontrell Antonio Baines, 33, a.k.a. “Nuke Bizzle,” of Memphis, Tennessee, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $704,760 in restitution to the California Employment Development Department (EDD).
Today’s sentence was imposed in connection with three criminal cases. Baines pleaded guilty on July 11 to one count of mail fraud and, in a separate case, to one count of unlawful possession of a firearm and ammunition by a convicted felon. He also pleaded guilty on August 30 to possession of oxycodone with intent to distribute in a case transferred from the Western District of Tennessee. Baines has been in federal custody since his arrest in October 2020.
From July 2020 to September 2020, Baines unlawfully exploited the Pandemic Unemployment Assistance (PUA) provisions of the CARES Act to obtain unemployment insurance money – ultimately more than $700,000 – to which he was not entitled.
As the COVID-19 pandemic’s grip tightened, Congress implemented the PUA provisions to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise be eligible for them.
Baines defrauded the program to obtain unemployment benefits administered by the EDD in the names of third parties, including identity theft victims. The applications for benefits also included false statements about the work histories and in-state residences of the named applicants. Through his fraud, Baines turned the taxpayer-funded program into “his personal piggybank,” according to a sentencing memorandum filed by federal prosecutors.
The applications for these benefits listed addresses in Beverly Hills and Koreatown to which Baines had access. As a result, Baines was able to take possession of and use the debit cards that EDD pre-loaded with the unemployment benefits obtained through the fraudulent applications.
For example, Baines used the identity of a Missouri man who briefly attended school – but never worked – in California to apply for unemployment benefits. In September 2020, Baines used a debit card issued based on the fraudulent PUA claim filed in the Missouri man’s name to withdraw approximately $2,500.
Baines filed 92 fraudulent PUA claims with EDD, resulting in attempted losses to EDD and the United States Treasury of approximately $1,256,108 and actual losses of at least $704,760.
According to court documents, Baines bragged about his ability to defraud the EDD in a music video posted on YouTube and in postings to his Instagram account. In the music video called “EDD,” Baines boasts about doing “my swagger for EDD” and, holding up a stack of envelopes from EDD, getting rich by “go[ing] to the bank with a stack of these” – an apparent reference to the debit cards that came in the mail.
In addition, in October 2020 at his Hollywood Hills residence, Baines illegally possessed a semi-automatic pistol with 14 rounds of ammunition. Baines was prohibited from possessing the firearm and ammunition because of his prior felony convictions, including a conviction in 2011 in Tennessee state court for unlawful possession of a controlled substance with intent to sell and a conviction in Nevada federal court in 2014 for being a felon in possession of a firearm.
Lastly, Baines also trafficked narcotics. On January 31, 2020, at Memphis International Airport. Baines attempted to check a bag containing various controlled substances, including oxycodone, promethazine with codeine, alprazolam and more than seven pounds of marijuana.
The United States Department of Labor – Office of Inspector General; the United States Postal Inspection Service; IRS Criminal Investigation; and the California Employment Development Department investigated this matter. The United States Marshals Service, the Las Vegas Metropolitan Police Department, and the United States Attorney’s Office for the Western District of Tennessee provided substantial assistance.
Assistant United States Attorneys Ranee A. Katzenstein, Chief of the Major Frauds Section, and Alexander B. Schwab, also of the Major Frauds Section, prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Raleigh Bank Teller Pleads Guilty to Theft of Customer Account InformationRead the Press Release
WILMINGTON, N.C. – A Raleigh woman pleaded guilty today for her role in a scheme to steal customer account information. Davia Delores Lockley, 26, faces up to 15 years in prison when sentenced in March of next year.
“Financial institutions and their customers count on the integrity of bank employees,” said U.S. Attorney Michael Easley. “This defendant used her position of trust to steal customers’ personal financial information as part of a scheme to defraud people of their hard-earned money.”
According to court documents and information presented in court, Lockley participated in a scheme to defraud banks and bank customers while employed as a teller at the Raleigh branch location of an area bank. As part of the scheme, bank employees were recruited by conspirators to identify customer accounts that contained significant funds and lacked a customer photo on file. They then accessed the customers’ information on the bank’s internal systems, including account numbers and personal identifiers, and sent that information to other conspirators using cell phones or by handwritten notes.
Runners were recruited to enter various banks and credit unions and withdraw funds from victim accounts. To facilitate the fraudulent withdrawals, conspirators obtained counterfeit drivers licenses using the victims’ personal identifiers and the runners’ photographs. The proceeds of the fraud were split amongst conspirators. Between January 2021 and June 2021, Lockley compromised the accounts of at least six bank customers. Lockley pleaded guilty to one count of Access Device Fraud.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Richard E. Myers II accepted the plea. The Federal Bureau of Investigation and Raleigh Police Department are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00232-M-1.
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Pittsburgh Man Sentenced to Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court in Pittsburgh to 28 months’ imprisonment and 3 years supervised release on his conviction of drug distribution and firearms charges, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Clarence Thomas, 30, of Pittsburgh, PA.
Thomas, who had a prior felony heroin trafficking conviction, pleaded guilty on Aug. 25, 2022, to possessing with intent to distribute quantities of a mixture of heroin and fentanyl, cocaine, crack cocaine and possession of a firearm and ammunition by a convicted felon. The drugs, Ruger pistol, and ammunition were seized from Thomas’s residence by City of Pittsburgh police officers during the execution of a search warrant on Nov. 10, 2019. The Ruger pistol had been previously reported as being stolen.
Prior to imposing sentence, Judge Cercone noted that the distribution of fentanyl had recently become prolific in the Pittsburgh area and was particularly serious in that it was causing deaths among users.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Thomas.
Pittsburgh Man Charged with Attempted Possession of CocaineRead the Press Release
PITTSBURGH - Today, the Court unsealed the indictment of a resident of Pittsburgh, Pennsylvania, charging him with attempting to possess with intent to distribute at least 500 grams of cocaine, United States Attorney Cindy K. Chung announced.
The one-count Indictment, returned on Oct. 25, 2022, named Charles Morris, 56, as the sole defendant.
According to the indictment presented to the court, on Jan. 6, 2022, Morris attempted to possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5 million 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.
Special Assistant United States Attorney Christopher M. Hanrahan is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations 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.