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Monday 14 November 2022
Virginia Man Pleads Guilty to Child Sexual Exploitation ChargesRead the Press Release
PITTSBURGH - A former resident of Alexandria, Virginia, pleaded guilty in federal court to charges of Travel With Intent to Engage in Illicit Sexual Conduct, Transportation With Intent to Engage in Criminal Sexual Activity, and Obstruction of Justice – Hindering Communication Through Corrupt Persuasion, United States Attorney Cindy K. Chung announced today.
Apipat Vutipawat, also known as “Viktor Vutipawat,” “Viktor Koi,” “Arty Freedom,” and “Victor Kim,” age 29, of Alexandria Virginia, pleaded guilty on Thursday to three counts before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from May 29, 2020 through June 2, 2020, Vutipawat traveled in interstate commerce with the purpose of engaging in any illicit sexual conduct with Minor A and transported Minor A, a person who had not yet attained the age of 18 years, from Pennsylvania to Virginia with the intent that Minor A engage in criminal sexual activity. Vutipawat also knowingly corrupted and persuaded Minor A with the intent to hinder, delay, or prevent the communication to a law enforcement officer of information relating to the commission or possible commission of a Federal offense.
Judge Conti scheduled sentencing for March 16, 2023, at 11:00 a.m. The law provides for a total sentence of not less than ten (10) years and not more than life in prison, a fine of up to $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, Vutipawat remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations-Pittsburgh, Homeland Security Investigations-York, Homeland Security Investigations-DC, Pennsylvania State Police, North Strabane Township Police Department, and the Fairfax County Police (Virginia) conducted the investigation that led to the prosecution of Vutipawat.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vehicle Arson on Menominee Indian Reservation to Cover up Overdose Death Leads to Prison SentencesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that the following three individuals received prison sentences related to an overdose death in Green Bay and a vehicle arson on the Menominee Indian Reservation:
- Timothy M. Snider, Jr. (Age: 29), of Green Bay, Wisconsin;
- Emerson K. Reed (Age: 36), formerly of Green Bay, Wisconsin; and
- Kayla M. Childs (Age: 34), formerly of Shawano, Wisconsin.
The sentences, imposed by Senior United States District Judge William C. Griesbach, were the result of guilty pleas entered by the defendants to charges in an indictment returned in June 2021 and can be summarized as follows:
Defendant
Charges of Conviction
Months of Confinement
Months of Supervised Release
Timothy M. Snider, Jr.
- Distribution of Heroin
- Use of a Communication Facility to Facilitate a Felony Drug Offense
- Conspiracy to Obstruct Justice
Total of 150 months
120 months
Emerson K. Reed
- Arson in Connection with a Federal Felony
120 months
60 months
Kayla M. Childs
- Conspiracy to Obstruct Justice
30 months
36 months
According to publicly filed court documents, the investigation began in August 2020 with the discovery of a burned-out vehicle in a remote area of the Menominee Indian Reservation. The vehicle contained the remains of a missing woman from Green Bay. Investigators were able to determine the vehicle and woman were in Green Bay on August 3, 2020. Dozens of interviews and corroborating information collected through court orders showed that the woman used social media to communicate with and subsequently purchase heroin from Snider at his home on the afternoon of August 3, 2020. The woman then overdosed, at which point Snider, Reed, and others conspired to conceal her death.
Reed contacted another man, and on August 4, 2020, Snider and Reed transported the woman’s remains and vehicle to the Menominee Indian Reservation. Reed later met with Childs and the other man, and the three moved the vehicle and remains to a remote area of the reservation off County Highway M near State Highway 55. Reed and the other man doused the vehicle interior and exterior with gasoline and other liquids and set it afire. The fire nearly destroyed the remains and vehicle.
The other man was indicted but committed suicide shortly after his first court appearance.
In sentencing the defendants, Senior Judge Griesbach noted the seriousness of the crimes, observing that the sentencing guidelines set for the offenses did not address situations and actions like those of the defendants. Judge Griesbach also remarked upon the pain and emotional damage done to the woman’s family and many others through the defendants’ egregious acts. Finally, Judge Griesbach observed the need to deter those who might consider similar actions.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, with support from the Brown County Drug Task Force, Wisconsin State Fire Marshal, Wisconsin Department of Justice – Division of Criminal Investigation, Wisconsin Statewide Intelligence Center, and Wisconsin State Crime Laboratory. Assistant United States Attorney Andrew J. Maier prosecuted the case in United States District Court.
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Utica Man Sentenced to 33 Months for Fentanyl Conspiracy and DistributionRead the Press Release
SYRACUSE, NEW YORK – Daequon D. Perkins, age 26, of Utica, New York, was sentenced Thursday to 33 months’ imprisonment for conspiring to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, and distribution of a mixture and substance containing fentanyl.
The announcement was made by United States Attorney Carla B. Freedman; Oneida County District Attorney Scott McNamara, New York State Police Acting Superintendent Steven A. Nigrelli, Timothy Foley, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Mark Williams, Utica Police Department.
As part of his prior guilty plea, Perkins admitted that beginning no later than May 2021, he agreed with others to distribute 40 grams or more of a mixture containing fentanyl to customers in the Utica, New York area. Perkins also admitted that on May 27, 2021, he distributed approximately 2 grams of a fentanyl mixture in Utica.
United States District Judge Hon. David N. Hurd also imposed a four-year term of supervised release, which will start after Perkins is released from federal prison, and ordered Perkins to pay a $200 special assessment.
This case was investigated by New York State Police-Special Investigations Unit (NYSP-SIU), investigators from the Oneida County District Attorney’s Office, members of the City of Utica Police Department, DEA, ATF, and prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
United States Attorney Kavanaugh and Commonwealth Attorneys for Charlottesville and Albemarle Issue Statement on Sunday Night Shooting on University of Virginia GroundsRead the Press Release
CHARLOTTESVILLE, Va.- United States Attorney Christopher R. Kavanaugh, Commonwealth Attorney for the City of Charlottesville Joseph D. Platania, and Commonwealth Attorney for Albemarle County James M. Hingeley released the following statement:
“Today, we join the University of Virginia, City of Charlottesville, and Albemarle County communities in mourning the lives of three innocent members of our community lost during a shooting Sunday night on the grounds of the University of Virginia in Albemarle County, and we also hope for a full recovery for the two victims who were wounded.
The United States Attorney’s Office for the Western District of Virginia and the Commonwealth Attorney’s Offices for the City of Charlottesville and County of Albemarle are actively working with local, state, and federal law enforcement in their efforts to thoroughly investigate this tragic incident and we will bring any potential charges in the appropriate jurisdiction.”
UPDATED//Lehigh Valley Psychiatrist Charged with Stealing from Medicare Through Improper Billing SchemeRead the Press Release
UPDATE
On May 9, 2024, a federal jury acquitted Dr. Muhamad Aly Rifai of the charges alleged in the indictment described in the press release below.
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Muhamad Aly Rifai, 49, of Easton, PA, was charged by Indictment with four counts of healthcare fraud stemming from his alleged scheme to improperly and fraudulently bill the federal Medicare program for services not provided, or not provided at the level which was claimed.
According to the Indictment, the defendant was a licensed psychiatrist who was the sole owner of Blue Mountain Psychiatry, a psychiatry practice with offices located in Easton, Palmerton, and Stroudsburg, Pennsylvania. The Indictment alleges that for several years, Rifai routinely and improperly billed Medicare for services which he did not provide to Medicare beneficiaries and nursing home patients, including billing for treating dead beneficiaries; billing for treating the same patient at the same time at different nursing homes; and billing for providing more than 24 hours’ worth of services to patients on a single day.
The Indictment further alleges that the defendant routinely billed for higher levels of care than he or his staff provided to nursing home patients. According to the Indictment, despite not having actually seen the patient, Rifai added a pre-printed stamp to medical progress notes to support billing for psychological and add-on services which were not provided by his staff. From about January 2015 until October 2022, Rifai, through Blue Mountain, obtained Medicare payments of at least approximately $1.36 million based on fraudulent claims.
The defendant made an initial appearance in federal court on these charges before U.S. Magistrate Judge Richard Lloret.
If the public has any information regarding Blue Mountain Psychiatry or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
If convicted, the defendant faces a maximum possible sentence of 40 years in prison, and a fine of up to $1 million.
The case was investigated by the Office of Inspector General, U.S. Department of Health and Human Services, and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
U.S. Attorney’s Office Resolves ADA Accessibility Complaint with Burger King Restaurant in Indian River, MichiganRead the Press Release
DETROIT – The United States Attorney’s Office for the Eastern District of Michigan settled a complaint regarding the accessibility of a Burger King restaurant located in Indian River, Michigan. The settlement agreement resolves the Office’s investigation, prompted by the complaint of an individual who uses a wheelchair. The complainant alleged that he was forced to rely on the assistance of a stranger to use the bathroom, due to the restaurant’s inaccessibility. The settlement agreement requires the owners and operators of the restaurant to maintain a barrier-free facility, as required by the Americans with Disabilities Act (ADA).
The Burger King restaurant is located near I-75, the major throughfare used to travel north through the Eastern District to the upper peninsula. The ADA protects the rights of all individuals, regardless of disability, to fully enjoy the benefits and services offered by places of public accommodation, which include restaurants. The settlement agreement reinforces the restaurant’s commitment to ADA compliance going forward and acknowledges the remedial steps they have already taken to ensure that the facility is accessible, which includes a remodel of the restrooms to bring them up to ADA standards.
“All Michiganders should be able enjoy the full array of public accommodations our great state has to offer. Civil rights enforcement is a priority of my office, which includes ensuring that all public accommodations, whether they are in Metro Detroit or Cheboygan County, are accessible to individuals who have disabilities.” U.S. Attorney Dawn N. Ison said.
Under the terms of the settlement, the Burger King will report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office and will ensure any renovations or additions comply with ADA design standards. The restaurant will also provide monetary compensation to the complainant’s spouse, who was traveling with him at the time of the incident.
The investigation was led by AUSA Michael El-Zein of the U.S. Attorney’s Office for the Eastern District of Michigan, a member of the Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.
U.S. Attorney’s Office Joins Community and Law Enforcement Partners in Launching San Diego’s First United Against Hate WeekRead the Press Release
Assistant U. S. Attorneys Cindy Cipriani (619-546-9608) and Alicia Williams (619-546-8917) and Law Enforcement/Outreach Coordinator Shastity Urias (619-546-9399)
NEWS RELEASE SUMMARY – November 14, 2022
SAN DIEGO – Beginning today, U.S. Attorney Randy Grossman, along with community and law enforcement leaders, will participate in a statewide United Against Hate (UAH) Week campaign.
The week of Nov. 14-21 is a call for local civic action to stop the hate and biases that pose a dangerous threat to the safety and civility of our neighborhoods, towns and cities. The UAH campaign, which emerged from a poster campaign by Bay Area Cities, has spread to more than 200 communities. San Diego will participate for the first time this year.
Inspired by successful campaigns in prior years throughout California, the U.S. Attorney’s office, through its leadership role chairing the San Diego Regional Anti-Hate Crime Coalition, has collaborated with multiple partners to launch a week of positive messages and diverse events designed to empower local residents and communities to stand against racism and alter the course of growing intolerance.
“When law enforcement, community leaders and residents work together against hate, we can restore respect, embrace the strength of diversity and build inclusive and equitable communities for all,” Grossman said.
Dozens of organizations, civic/law enforcement leaders and agencies have signed on as supporters. Scheduled events include a social media/Twitter storm on November 15th; several free National Conflict Resolution Center webinars on “The Art of Inclusive Communication” and the “Bystander Challenge;” training by the District Attorney’s Office on hate crimes and victim resources for vulnerable communities; an Antisemitism and Bias Seminar offered by Anti-Defamation League; and a ceremony honoring the winners of a school-based essay/poster contest, sponsored by the U.S. Attorney’s office and the Earl B. Gilliam Bar Association Foundation. In addition, the County of San Diego and City of San Diego are expected to pass proclamations declaring this week “United Against Hate Week” in San Diego.
The full calendar of events can be accessed at: https://www.justice.gov/usao-sdca/united-against-hate.
“Hate Crimes are the highest priority of the FBI’s Civil Rights program due to the devastating impact they have on families and communities” said Stacey Moy, FBI Special Agent in Charge of the San Diego Field Office. “We will always work with our law enforcement and private sector partners to educate our communities about these violations while continuing to investigate and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
“I stand united against hate alongside the dedicated team at the DA’s office, our diverse communities and law enforcement,” said San Diego County District Attorney Summer Stephan. “Hate-fueled crimes that target people based on their race, ethnicity, nationality, religion, sexual orientation, gender or disability harms the victim and also spreads fear throughout the community. We will not tolerate this, which is why prosecuting hate crimes is a priority for the San Diego County District Attorney’s Office. In combatting hate crimes, we nearly tripled the number of hate crime cases we have prosecuted in recent years, we protected victims harmed by hate and we increased access to reporting hate incidents online.”
“The San Diego County Sheriff's Department does not tolerate any acts of hate in our communities,” said Sheriff Anthony Ray. “We are proud to join the U.S. Attorney's Office, as well as our law enforcement and community partners, in promoting a message of unity and inclusion.”
Members of the public are encouraged to report hate incidents and hate crimes to the Federal Bureau of Investigation at 1-800-CALL-FBI or online at https://tips.fbi.gov/. Please call 911 if you need emergency assistance.
U.S. Attorney Josh Hurwit to Co-Sponsor United Against Hate Event in North IdahoRead the Press Release
COEUR D’ALENE – U.S. Attorney Josh Hurwit along with the Coeur d’Alene Tribe, the Kootenai County Task Force on Human Relations, DOJ Community Relations Service, and the FBI are convening a United Against Hate meeting on November 17 at the Coeur d’Alene Casino in Worley, Idaho. The event is free and is open to the public. The registration link can be found here: eventbrite.com/e/united-against-hate-tickets-451742934277.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents.
“In my view, this initiative is particularly timely for Idaho, as we have experienced a series of troubling hate incidents throughout the state in the past several years,” said U.S. Attorney Hurwit. “As Attorney General Garland has said, this is a moment for an all-hands-on-deck approach to combatting unlawful hate.”
The November 17 event will include presentations from prosecutors about hate crimes laws and reporting mechanisms and speakers who will share their courageous experiences responding to hate.
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to unlawful hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Suspects in Randleman Road Robbery Plead GuiltyRead the Press Release
GREENSBORO, NC – Two Asheboro men, Deante Tre’Devaughn Cheek (“Cheek”) and Amir Joseph Marshall (“Marshall”), pleaded guilty to robbery and firearms charges, announced U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina.
Cheek, age, 26, entered a guilty plea on November 8, 2022, and Marshall, age 21, pleaded guilty today. Both defendants pleaded guilty to one count of interference with commerce by robbery and one count of felon in possession of a firearm.
According to court documents, on December 28, 2020, Cheek and Marshall robbed the owner of a business located on Randleman Road in Greensboro at gunpoint. During the incident, the store owner and Marshall were shot. Cheek and Marshall left the scene and got into a blue Honda Accord. Approximately 25 minutes later, Marshall arrived at Randolph Hospital in a blue Honda Accord. Hospital surveillance video shows Marshall being helped into the hospital by an individual whose clothing matched that of one of the assailants at the Randleman Road robbery.
On the date of the robbery, Cheek was on supervised probation with the North Carolina Department of Public Safety and had been equipped with a GPS ankle monitor. A review of the GPS data showed that CHEEK’s ankle monitor was in the vicinity of the robbery location during the time of the robbery. CHEEK’s ankle monitor then traveled to Randolph Health hospital in Asheboro at a rate of around 120 miles per hour.
Cheeks’ sentencing is scheduled to take place on April 25, 2023, at 2:00 p.m. in Winston-Salem, North Carolina, before United States District Judge Loretta C. Biggs. Marshall’s sentencing is set for June 2, 2023 at 2:00 p.m. At sentencing, each defendant faces a maximum term of imprisonment of not more than twenty years for the robbery charge, and up to ten years imprisonment on the firearms charge, plus a period of supervised release and monetary penalties.
Agents with the Federal Bureau of Investigation and the Greensboro Police Department investigated the case. The case is being prosecuted by Special Assistant U.S. Attorney Mary Ann Courtney.
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Sixth defendant in scuba fraud investigation admits filing false claims with the Department of Veterans AffairsRead the Press Release
BRUNSWICK, GA: The training director of a Camden County dive shop has admitted participating in the submission of false claims to the Department of Veterans Affairs (VA) for scuba classes targeting military veterans’ education benefits.
John Spyker, 39, of Yulee, Fla., awaits sentencing after pleading guilty to an Information charging him with False, Fictitious, and Fraudulent Claims, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Spyker to a possible statutory penalty of up to five years in prison, along with substantial financial penalties and restitution, and up to three years of supervised release following any prison term. There is no parole in the federal system.
“As the sixth defendant admitting culpability in this investigation, John Spyker represents one more falling domino in the effort to unravel this substantial theft of veterans’ education benefits,” said U.S. Attorney Estes. “The VA Office of Inspector General continues to do outstanding work in identifying and ending this fraud.”
Spyker, a School Certifying Official and Director of Training at Diver’s Den in St. Marys, Ga., admitted that from about January 2021 through January 2022, he, and others, submitted false and fraudulent information to the Department of Veterans Affairs for tuition payments under the Post-9/11 GI Bill totaling $722,399.19.
Five other defendants who previously entered guilty pleas in U.S. District Court are owners, managers, and/or instructors at Diver’s Den and at Scooba Shack in Savannah and Richmond Hill, Ga. Collectively, the defendants are responsible for defrauding more than $6 million from VA education benefits.
As described in court documents, the defendants caused false submissions to be made to the VA. The false submissions misstated the businesses’ compliance with VA regulations, dates of students’ attendance, and hours of instructions, among other information. 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.
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority, and our investigators are working diligently in the field to ensure these programs are not exploited for financial gain and greed,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “Six guilty pleas in this case is a testament of our commitment to working with our law enforcement partners to hold accountable those who would defraud VA’s benefits programs.”
The case is being investigated by the Department of Veterans Affairs Office of Inspector General, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Shiprock man charged with assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Deon Joe Bidtah was arraigned on Nov. 10 on a three-count indictment charging him with assault with a dangerous weapon, discharging a firearm during a crime of violence, and assault on a federal officer with a deadly and dangerous weapon. Bidtah, 23, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted Bidtah on Nov. 9. According to the indictment and other court records, on Oct. 11, Bidtah approached a vehicle near his residence and fired two rounds from a 12-gauge shotgun into the vehicle. A victim, identified as Jane Doe, was struck and injured by the gunfire. Three of Jane Doe’s family members were in the vehicle at the time. All four occupants of the vehicle are enrolled members of the Navajo Nation. Jane Doe was taken to San Juan Regional Medical Center for treatment.
Navajo Police responded to the incident location, including one officer who, by virtue of a special law enforcement commission, is considered a federal officer. Bidtah approached the officers carrying the 12-gauge shotgun and fired toward the officers. Officers took cover behind their patrol units and commanded Bidtah to stop and drop his weapon. Bidtah ignored the commands, and officers fired two rounds at Bidtah. Bidtah was struck, and was later transported to Northern Navajo Medical Center for treatment.
Both incidents occurred on the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Bidtah faces up to 10 years in prison for assault with a dangerous weapon, up to 20 years in prison for assault on a federal officer with a deadly and dangerous weapon, and a consecutive mandatory minimum of 10 years and up to life in prison for discharging a firearm during a crime of violence.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Novaline Wilson is prosecuting the case.
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Seward Woman Sentenced for Conspiracy to Sex Traffic MinorsRead the Press Release
Acting United States Attorney Steven Russell announced that Sidney Marker, 28, of Seward, Nebraska, was sentenced today in federal court in Omaha for a conspiracy to sex traffic minors. Chief Judge Robert F. Rossiter, Jr. sentenced Marker to 180 months’ imprisonment. There is no parole in the federal prison system. After her release from prison, Marker will serve 5 years of supervised release and will be required to register as a sex offender.
Last week, on November 8, 2022, Chief Judge Rossiter sentenced Co-Defendant Carney Turner, 42, of Omaha, Nebraska, to life imprisonment on one count of conspiracy to sex traffic minors, three counts of sex trafficking of a minor, and two counts of enticement of a minor. Chief Judge Rossiter also sentenced Co-Defendant Julisha Biggs, 20, of Omaha, to 87 months’ imprisonment for her role in the conspiracy.
Law enforcement began investigating in September 2020 after discovering electronic messages between a minor female and Turner during a separate sex trafficking investigation. The minor female was interviewed and reported that she had been sex trafficked by Turner for approximately three months and that Turner had kept money from the sex sales. In October 2020, a second minor female reported that she had been sexually assaulted by a man in a hotel room after Turner brought her to the hotel and paid her to meet with the man. In November 2020, a third minor female was reported missing from her foster home and law enforcement observed that she was being posted in online sex advertisements by a phone number associated with Turner.
Evidence uncovered by law enforcement showed that Marker met Turner while Turner was serving a state sentence and Marker was employed in the correctional facility as a caseworker. Marker then went on to work as a foster care specialist and a family support specialist. After Turner’s release from prison, Marker, Turner and Biggs resided together in an apartment in Ralston, Nebraska. Turner recruited, advertised, and arranged commercial sex sales for minors between approximately January 2020 and February 2021. The sex sales took place at hotels in and around Omaha, as well as at the apartment, which had been leased by Marker. At least one of the minors also stayed at the apartment for a period of time. Marker provided vehicles to transport the minors to hotels for commercial sex acts and assisted with renting hotel rooms. The minor who had been reported missing in November 2020 had been recruited by Biggs to come work for Turner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, the Omaha Police Department, and the Nebraska Attorney General’s Office.
Settlements Resolve Clean Water Act Violations at Four Solar Farm Construction Sites in Alabama, Idaho and IllinoisRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced settlements with four separate solar farm owners to resolve alleged violations of the Clean Water Act. The alleged violations were construction permit violations and stormwater mismanagement at large-scale solar generating facilities: a site near LaFayette, Alabama, owned by AL Solar A LLC (AL Solar); a site near American Falls, Idaho, owned by American Falls Solar LLC (American Falls); a site in Perry County, Illinois, owned by Prairie State Solar LLC (Prairie State); and a site in White County, Illinois, owned by Big River Solar LLC (Big River). The states of Alabama and Illinois joined in the Alabama and Illinois settlements.
These four solar farm owners are all subsidiaries of large international finance and investment companies, and all four used a common construction contractor for the development of their solar farms. Together, the four settlements with these defendants secure a total of $1.34 million in civil penalties and ensure that remaining construction will take place in compliance with Clean Water Act stormwater permits. The settlements resolved claims alleged in four separate complaints the government also filed today.
“While the development of renewable energy holds great promise for combatting climate change, the solar energy industry must comply with the Clean Water Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The proposed settlements demonstrate the Department of Justice’s commitment to require those developing these facilities, including the site owners, to comply with the law, or be held accountable for construction practices that put our waterways at risk.”
“The development of solar energy is a key component of this Administration’s efforts to combat climate change,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “These settlements send an important message to the site owners of solar farm projects that these facilities must be planned and built in compliance with all environmental laws, including those that prevent the discharge of sediment into local waters during construction.”
Solar farm construction involves clearing and grading large sections of land, which can lead to significant erosion and major runoff of sediment into waterways if stormwater controls at the site are inadequate. Increased sediment in waterways can injure, suffocate or kill aquatic life; damage aquatic ecosystems; and cause significant harm to drinking water treatment systems. To avoid these harms to the environment and public health, parties responsible for construction of solar farms are required to get construction stormwater permits under the Clean Water Act and comply with the terms of those permits. Each of the complaints filed today allege that the owners of these four sites violated their construction stormwater permits in similar ways: failing to design, install, and maintain proper stormwater controls; failing to conduct regular site inspections; failing to employ qualified personnel to conduct inspections; and failing to accurately report and address stormwater issues at the site. The complaints filed against AL Solar and American Falls Solar also allege unauthorized discharges of excess sediment from their construction sites to nearby waterways.
Construction at the Idaho and Alabama sites is now complete and permit coverage has been terminated. Therefore, these settlements only include civil penalties. The United States and the Alabama Department of Environmental Management (ADEM) filed a stipulation of settlement with AL Solar in the U.S. District Court for the Middle District of Alabama along with its complaint. Under that settlement, AL Solar will pay a $250,000 civil penalty to the United States and a $250,000 civil penalty to ADEM. A second stipulation of settlement involving American Falls was filed in the U.S. District Court for the District of Idaho. Under that settlement, American Falls will pay a civil penalty of $416,500 to the United States.
In addition, consent decrees with Prairie State and Big River were filed by the United States and the State of Illinois. Because both Illinois sites remain subject to Clean Water Act permits, these two settlements require the owners to ensure compliance with those permits until construction at the sites is complete and the United States and State agree that permit coverage can be terminated. In addition, Prairie State will pay a civil penalty of $157,500 to the United States and $67,500 to the state of Illinois, and Big River will pay a civil penalty of $122,500 to the United States and $52,500 to the state of Illinois. The consent decrees were lodged with the U.S. District Court for the Southern District of Illinois and are subject to a 30-day public comment period and final court approval.
The consent decrees can be viewed at the Department of Justice website here.
Riverside County Man Sentenced to 8½ Years in Prison for Stealing over $6.6 Million in COVID-19 Loans Intended for Small BusinessesRead the Press Release
LOS ANGELES – A Corona man was sentenced today to 102 months in federal prison for fraudulently obtaining more than $6.6 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds intended for business owners impacted by the economic shock of the COVID-19 pandemic and then laundering his illegal proceeds into financial instruments and real property in Pakistan.
Muhammad Noor Ul Ain Atta,39, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $6,643,540 in restitution.
“It’s important that the sentence imposed today sends the message that there are serious consequences for defrauding federal relief programs,” Judge Anderson said.
Atta pleaded guilty on August 2 to one count of wire fraud and one count of money laundering.
From March through July 2020, Atta submitted 11 fraudulent loan applications for seven of his shell companies. The fraudulent applications misrepresented the number of employees and the average monthly payroll expenses of Atta’s companies, and falsely certified he would use the loan proceeds for permissible business purposes. Atta also submitted false tax and payroll documentation in support of his loan applications.
For one PPP loan, Atta sought $1,267,714 for a company called Envisioning Future Inc. The loan application falsely represented that Envisioning Future had 73 employees and falsely certified Envisioning Future would use the loan proceeds for permissible business purposes, including the payment of payroll and other business-related expenses. The fraudulent application filed on April 10, 2020 was supported by falsified federal tax returns and false payroll data.
About one month later, Envisioning Future received $1,267,140 in loan proceeds, and the following day Atta wired most of the money to his mother’s bank account. Then in June 2020, Atta wired $1.3 million – the majority of which came from the Envisioning Future PPP loan – to a financial institution in Islamabad, Pakistan. The wire transfer details included a note that the wire was “family support.”
In total, Atta received $6,643,540 in loan proceeds even though none of his companies were legitimate recipients of relief funds at that time. Atta then laundered loan proceeds to bank accounts in the United States and Pakistan.
Atta fled the United States in May 2020 and invested some $2.1 million of his ill-gotten gains into Pakistani financial instruments and another $3.5 million into the purchase of land in Pakistan. Almost two years months later, he was apprehended as he traveled through Los Angeles International Airport.
“The PPP and EIDL programs did not create a limitless pot of money,” prosecutors argued in a sentencing memorandum. “By taking money that he was not entitled to, [Atta] reduced the funds available to other legitimate applicants and defrauded the taxpayers supporting the programs.”
The Office of the Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection, IRS Criminal Investigation, the Small Business Administration – Office of Inspector General, and the Treasury Inspector General for Tax Administration investigated this matter.
Assistant U.S. Attorney Adam P. Schleifer of the Major Frauds Section and Trial Attorneys Jennifer L. Bilinkas and Matthew F. Sullivan of the Justice Department’s Fraud Section prosecuted this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Riverhead Man Sentenced to 27 Years' Imprisonment for Firearm Related MurderRead the Press Release
Earlier today, in federal court in Central Islip, Jason Langhorn, an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise based in Riverhead, New York, was sentenced to 27 years’ imprisonment and three years of supervised release by United States District Judge Joanna Seybert for his participation in the murder of Thomas Lacolla on November 17, 2015, which occurred while Langhorn and others were attempting to kill a rival of the gang. Langhorn pleaded guilty to firearms-related murder in August 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“Langhorn has been held accountable for his role in a heartless shooting that claimed the life of an unintended victim,” stated United States Attorney Peace. “We hope today’s sentence brings a measure of solace and closure to the victim’s family and sends a clear message that those who commit brutal acts of gang violence will be brought to justice and punished.”
Mr. Peace also extended his thanks to the Suffolk County District Attorney’s Office’s East End Drug Task Force, the Suffolk County Police Department and the Riverhead Police Department for their assistance in the investigation and prosecution.
As alleged in the indictment and court filings, the defendant assisted members of the Bloods as they tried to kill a rival gang member, which resulted in the shooting death of Mr. Lacolla. In an attempt to carry out a standing order by the leader of the gang to kill the rival, Langhorn accompanied several fellow Bloods members to a location in Riverside, New York, just outside of Riverhead. There, Langhorn and two others fired more than 39 shots, collectively, into a vehicle they believed was occupied by their intended target, but instead was occupied by Mr. Lacolla, who was shot and killed instantly.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
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.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Michael Maffei and Nicole Boeckmann are in charge of the prosecution.
Defendant:
JASON LANGHORN, also known as “Hov”
Age: 40
Riverhead, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Rensselaer County Man Sentenced to 78 Months for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Derek Luch, age 50, of Troy, New York, was sentenced today to 78 months in prison for receiving and possessing child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Luch admitted that between May 2021 and October 2021, he used a file-sharing service to download and receive numerous images of minors engaged in sexually explicit conduct, including images of pre-pubescent children, onto his computer and external hard drives. He also admitted that he possessed child pornography when he was arrested on November 4, 2021.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of post-imprisonment supervised release, and ordered forfeiture of the electronic devices used as part of the offense.
This case was investigated by the FBI and its Child Exploitation Task Force. The Child Exploitation Task Force is comprised of FBI Special Agents, and state and local police investigators. The case is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (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 https://www.justice.gov/psc
Placer County Man Sentenced for Tax EvasionRead the Press Release
SACRAMENTO, Calif. — Vladimir Alex Avdeyuk, 40, of Lincoln, was sentenced today to one year and a day in prison and ordered to pay $467,057 in restitution for tax evasion and corrupt endeavor to obstruct the administration of the Internal Revenue Laws, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Avdeyuk repeatedly and intentionally filed false tax returns and took numerous steps to obstruct an IRS audit of his returns. Avdeyuk filed Form 1040 individual income tax returns for himself and his spouse that substantially underreported his business income for tax years 2012, 2013, 2015, and 2016. Avdeyuk operated a sole proprietorship involved in construction work, particularly repairs and reconstruction after fires. If Avdeyuk had reported his business income correctly, he would have owed a total of at least $467,057 in additional tax for 2012, 2013, 2015, and 2016. Avdeyuk also obstructed the Internal Revenue Service’s audit of his tax returns for tax years 2012 and 2013 by submitting multiple false documents to the IRS and lying to IRS agents on multiple occasions.
On Dec. 7, 2017, in a recorded interview, Avdeyuk admitted that he had misidentified deposits submitted the false promissory note, created a false gift letter and was actually the donor, created a false loan application and knowingly omitted the business income.
Approximately three years after his confession, Avdeyuk intentionally filed another false tax return: a Form 1040 individual income tax return for the tax year 2016, which he had backdated to April 18, 2016 (forgetting that the deadline for a 2016 tax return would be in April 2017, not April 2016). On the Schedule C-EZ appended to that return, Avdeyuk reported that his business had gross receipts of $23,314, when he knew that was false because he had failed to report at least $554,577 in additional gross receipts. If he had reported his true gross receipts and expenses, his additional tax due would have been $84,231.
This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.
Peoria Man Sentenced to Forty Months in Prison for Possession of Firearm Ammunition as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jacobi Turner-Claudin, 29, of the 500 block of West Columbia Terrace, was sentenced on November 10, 2022, to forty months in federal prison for possessing firearm ammunition as a felon. Upon release from imprisonment, Turner-Claudin will serve a three-year term of supervised release.
At the sentencing hearing in front of Senior U.S. District Judge Michael M. Mihm, the government presented evidence that Turner-Claudin was a passenger in a car that fled from Peoria Police on April 21, 2022. The pursuit began on Griswold Street and ended when the car drove into the backyard of a house on North Bourland Avenue. Turner-Claudin fled from the vehicle and was located a short distance away in a dry creek bed. He was in possession of three cell phones, cannabis baggies, and an extended magazine for a firearm. The magazine was loaded with 12 rounds of .45 caliber ammunition. Turner-Claudin told federal agents that he possessed the ammunition due to the possibility of a weapons purchase that day. At the time, Turner-Claudin was prohibited from possessing firearm ammunition due to his prior conviction for a felony offense.
Also during the incident, officers arrested two additional occupants of the car. Officers recovered two .45 caliber firearms during the investigation, each loaded with live ammunition and equipped with drum-style magazines capable of holding 50 rounds of ammunition. Additionally, one of the .45 caliber pistols recovered was equipped with an auto sear “switch” that converts a semi-automatic gun into a fully automatic machine gun.
Turner-Claudin was indicted in May 2022 and entered a plea of guilty in July 2022. He has been in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of firearm ammunition by a felon are up to 15 years’ imprisonment and up to a $250,000 fine, followed by up to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Illinois State Police, with the assistance of the Peoria Police Department, investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
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.
Payson Man Sentenced to 135 Months in Federal Prison for Attempted Enticement of a MinorRead the Press Release
PEORIA, Ill. – A Payson, Illinois, man, Michael Kamphaus, 34, of the 400 block of Willow Street, was sentenced on November 10, 2022, to 135 months’ imprisonment for attempted enticement of a minor. Upon release from imprisonment, Kamphaus will serve a 10-year term of supervised release.
At the sentencing hearing in front of U.S. District Judge James E. Shadid, the government presented evidence that in March 2022 Kamphaus spoke with an individual he believed to be a father offering sex with his 12-year-old daughter in exchange for money. Kamphaus discussed the specifics of a potential encounter between with the daughter, including where it would happen, what would happen, how long it would last, and the monetary exchange for the encounter. Kamphaus stated multiple times he was interested in engaging in sex acts with the 12-year-old girl. On March 11, 2022, Kamphaus traveled from Payson, Illinois, to Peoria, Illinois, to meet with the father and his daughter. Upon arrival in Peoria, he was arrested by federal law enforcement agents.
Kamphaus was indicted in March 2022 and entered a plea of guilty in July 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for attempted enticement of a minor are 10 years to life imprisonment, a possible fine of up to $250,000, and a five-year to life term of supervised release. The charge also carries a mandatory special assessment of $5,000 under the Justice for Victims of Trafficking Act of 2015, unless Kamphaus is ruled indigent.
The Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Kamphaus was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
Palestinian National Indicted for Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH - A Palestinian national has been indicted by a federal grand jury in Pittsburgh on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney Cindy K. Chung announced today.
The one-count Indictment, returned on Nov. 9, 2022, named Huthayfa Almassri, 31, as the sole defendant.
According to the indictment, from June 14, 2022, until Oct. 16, 2022, Almassri used the Internet and a cellular telephone to knowingly attempt to persuade, induce, entice, and coerce an individual who had not attained the age of 18 years to engage in sexual activity.
The law provides for a maximum total sentence of life in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force 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.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio Man Sentenced to Prison for Evading Financial Reporting RequirementsRead the Press Release
HUNTINGTON, W.Va. – Gary McComas, 27, of Chesapeake, Ohio, was sentenced today to five months in prison, to be followed by three years of supervised release, for structuring financial transactions to evade reporting requirements.
According to court documents and statements made in court, McComas admitted that he obtained multiple money orders in the Huntington area to help an individual in California evade financial reporting requirements. Federal law requires financial institutions to report certain information to the Department of the Treasury whenever a person exchanges cash for a money order in the amount of $3,000 in one transaction or a series of transactions. On June 28, 2018, McComas obtained six money orders, each for $500, from three different Huntington businesses for the purpose of evading financial reporting requirements. McComas further admitted to conducting approximately 200 money order transactions totaling $99,400 in and around Huntington for the same purpose between June 28, 2018, and January 13, 2019.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service and the assistance provided by the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-144.
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Ohio Man Pleads Guilty to Federal Gun, Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Austin Bruce Jeffreys, 28, of Chesapeake, Ohio, pleaded guilty today to crimes arising from a drug-related June 2021 shootout in Huntington.
According to court documents and statements made in court, on June 14, 2021, Jeffreys spoke by phone with an inmate at the Western Regional Jail. The calls were recorded. The inmate asked Jeffreys to go to a Huntington residence and retrieve a quantity of suboxone that belonged to the inmate, but was in the possession of another person. Jeffreys admitted that he told the inmate he would be carrying a loaded Bersa Thunder .380-caliber Combat pistol while retrieving the drugs.
When Jeffreys and another individual arrived at the Huntington residence, a shootout occurred before Jeffreys could recover the drugs. After the shooting, Jeffreys made another recorded phone call with the inmate and admitted to his role in the shooting. Several days later, Jeffreys was arrested and once again admitted to his role in the shooting and that he knew the drugs he tried to recover were intended for distribution.
Jeffreys pleaded guilty to using and carrying a firearm during and in relation to a drug trafficking crime and conspiracy to use and carry a firearm during and in relation to a drug trafficking crime. He is scheduled to be sentenced on February 13, 2023, and faces a mandatory minimum of five years and up to life in prison, five years of supervised release, and a $500,000 fine.
The inmate, Jacob Benjamin Loper, 21, pleaded guilty to attempted possession with intent to distribute suboxone and conspiracy to use a firearm in furtherance of a drug trafficking crime. Loper was sentenced to two years and six months in prison on May 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the West Virginia State Police, the Huntington Police Department, and the West Virginia Division of Corrections and Rehabilitation Investigations Unit.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-216.
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North Carolina Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Calvin Moore, 33, of Silver City, North Carolina, was sentenced to five years and three months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on October 14, 2021, law enforcement officers visited a Sixth Street residence in Charleston looking for Moore, who attempted to flee the residence by jumping out of a window. After a brief struggle, officers detained Moore and found a loaded Bryco Arms Jennings .22LR firearm with a chambered round in Moore’s front pants pocket. The firearm was later determined to have been stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Moore knew he was prohibited from possessing a firearm because of his prior felony conviction for robbery with a dangerous weapon in Chatham County, North Carolina, Superior Court on December 12, 2012.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica D. Coleman prosecuted the case.
This case is 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.
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-217.
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Middlefield Man Sentenced to Prison for Defrauding State Jobs ProgramsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVID KANIA, 63, of Middlefield, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to two months of imprisonment, followed by three years of supervised release, for offenses stemming from his fraud against several state-run wage subsidy and job training programs.
According to court documents and statements made in court, Kania was the owner and operator of three small businesses, principally in the dietary supplement and beverage industry. Between 2013 and 2018, through his companies, Kania applied for and received state subsidies for employing unemployed jobseekers, including veterans, and for providing training to employees. In order to receive funds, Kania submitted false documents to the Connecticut Department of Labor and two Connecticut-based Workforce Investment Boards, which administered the wage subsidy programs, showing that he had hired certain workers and they worked for his businesses for a certain period of time, when he knew that to be false. Kania also submitted false invoices to the Manufacturing Innovation Fund (“MIF”) Program for training that was never done. Through this scheme, Kania caused $941,723.24 in loss to the wage subsidy programs and $115,000 in loss to the MIF Program.
Judge Bolden ordered Kania to make full restitution.
Kania also underreported his total income on his 2014 through 2018 federal tax returns by failing to account for $299,201.50 in business funds that he used for personal expenses.
On November 15, 2021, Kania pleaded guilty to one count of wire fraud and one count of filing a false tax return.
Kania, who is released on a $100,000 bond, is required to report to prison on December 1.
This matter was investigated by the U.S. Department of Labor – Office of the Inspector General, and the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Labor. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
Meridian Man Sentenced to Prison for Possession of an Unregistered Short-Barreled ShotgunRead the Press Release
Jackson, Miss. – A Meridian, Mississippi man was sentenced to one year and eight months in prison for possession of an unregistered short-barreled shotgun, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Edward Tyrone Walker, 43, possessed a shotgun which had a barrel of less than 18 inches in length that was not registered to him in the National Firearms Registration and Transfer Record. Officers of the Meridian Police Department were conducting an unrelated investigation at a convenience store and discovered evidence showing that Walker had possession of a short-barreled shotgun. Walker was interviewed and admitted to possessing the shotgun. Further investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) revealed evidence that the short-barreled shotgun was not registered to Walker. Federal law requires such weapons to be registered in the National Firearms Registration and Transfer Record.
The Meridian Police Department and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mason County Man Sentenced to 10 Years in Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Joseph Curtis Hubman, 50, of Henderson, was sentenced today to 10 years in prison, to be followed by 15 years of supervised release, for possession of prepubescent child pornography. Hubman must also register as a sex offender.
According to court documents and statements made in court, on November 11, 2020, law enforcement officers executed a search warrant at Hubman’s Henderson residence. Officers recovered multiple external hard drives, mobile phones, two desktop computers and a micro SD memory card. A forensic analysis of the devices revealed more than 18,000 videos depicting child pornography. Hubman admitted that he possessed the child pornography, and that it included videos of prepubescent minors engaged in sexually explicit conduct.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Mason County Sheriff’s Department, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Julie White prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-24.
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Marrero Man Indicted for Receipt of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that CHRIS BAO NGUYEN (“NGUYEN”), age 30, of Marrero, Louisiana, was indicted on November 10, 2022 for receipt of child pornography in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). If convicted, NGUYEN faces a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. In addition, NGUYEN faces a term of supervised release of no less than five (5) years and up to life after his release from prison and payment of a $100 mandatory special assessment fee.
According to documents filed in federal court, the case against NGUYEN began as a result of a CyberTip report from the National Center for Missing and Exploited Children (“NEMEC”) to the Louisiana Bureau of Investigation (“LBI”). Homeland Security Investigations (“HSI”) special agents along with the Jefferson Parish Sheriff’s Office and LBI executed a federal search warrant at NGUYEN’s home in Marrero. HSI’s investigation determined NGUYEN received images and videos depicting the sexual exploitation of minors.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and the Jefferson Parish Sheriff’s Office in investigating this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Chief of the Financial Crimes Unit.
Los Angeles Man Pleads Guilty to Federal Charges for Stealing Nearly $5.5 Million in COVID Jobless Relief and for Drug TraffickingRead the Press Release
SANTA ANA, California – A downtown Los Angeles man pleaded guilty today to federal drug trafficking and fraud charges, admitting, among other things, that he fraudulently obtained nearly $5.5 million in COVID-related jobless benefits by using the identities of California state prison inmates and other third parties.
Edward Kim, 36, pleaded guilty to one count of conspiracy to distribute methamphetamine and fentanyl, one count of distribution of methamphetamine, one count of conspiracy to defraud the government with respect to claims, two counts of mail fraud, and two counts of possession of 15 or more unauthorized access devices.
Kim has been in federal custody since his arrest in this case in March 2021.
According to his plea agreement, from May 2020 to March 2021, Kim and his co-conspirators submitted approximately 459 fraudulent unemployment insurance claims to the California Employment Development Department (EDD), using the names, Social Security numbers, dates of birth and other personal identifiable information of California state prison inmates and other people. Kim received the inmates’ information from various sources, including by purchasing PII from the dark web.
Kim and his accomplices submitted to the EDD online applications for UI benefits that falsely represented the inmates and others were unemployed because of the economic crisis brought by the COVID-19 pandemic. Kim knowingly listed on the applications false mailing addresses, including his current and former apartments, to which the bank sent the EDD-approved debit cards containing UI funds. Kim then made cash withdrawals at bank branches.
In total, Kim and his co-conspirators received approximately $5,458,050 in fraudulently obtained UI funds.
Kim further admitted that in November 2019 he sent two packages – one containing nearly one pound (449.6 grams) of methamphetamine, the other containing over 300 fake oxycodone pills containing fentanyl – from a FedEx store in West Covina to the address of a UPS Store in Hawaii. Kim’s co-conspirator in Hawaii arrived at the UPS Store to pick up the packages, but law enforcement arrested him before he could do so.
In July 2020, Kim began renting a warehouse in La Habra where he stored equipment and materials for the manufacture and distribution of narcotics, including pill presses and dies, pill bottles, scales, and various binding agents. He also maintained a marijuana grow operation at the La Habra warehouse.
Kim also admitted that beginning in March 2020, he conspired with others to defraud the United States by using stolen identities to file false and fraudulent income tax returns to fraudulently claim tax refunds. The tax returns included false information designed to qualify for COVID pandemic-related Economic Impact Payments (EIP), which the federal government provided on three occasions in 2020 and 2021. Together with his co-conspirators, Kim caused at least 297 fraudulent tax returns to be filed with the IRS which sought more than $356,400 in fraudulent EIP from the United States.
During a traffic stop in La Habra in November 2020, law enforcement found approximately 22 grams of methamphetamine in Kim’s car, along with a digital scale, and 16 debit cards in the names of other people.
Another search in March 2021 at Kim’s luxury apartment near L.A. Live resulted in law enforcement finding nearly 35 grams of methamphetamine, dozens of EDD letters and mailings, and a notebook marked “stimulus scheme,” which contained approximately 405 different identities.
A search of the La Habra warehouse in April 2021 led to the discovery of more EDD paperwork, ATM withdrawal receipts, and nearly 296 grams of methamphetamine. A 9mm Polymer80 handgun with no serial number – commonly referred to as a “ghost gun” – also was found at the La Habra warehouse.
United States District Judge James V. Selna scheduled a March 6, 2023 sentencing hearing, at which time Kim will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.
Homeland Security Investigations, IRS Criminal Investigation, the United States Department of Labor’s Office of Inspector General, the California Employment Development Department - Investigation Division, the California Department of Corrections and Rehabilitation - Special Service Unit, the La Habra Police Department, and the Hawaii Police Department are investigating this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crime Section and Julia Hu of the Major Frauds section are prosecuting this case.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Logan County Felon Sentenced to 92 Months in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Bowling Green, KY – A Logan County man was sentenced today to 92 months in prison for being a convicted felon in possession of a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to court documents, on July 19, 2021, in Logan County, Kentucky, Albert Tyler, 61, possessed a Lorcin, model L380, .380 caliber semiautomatic pistol, and a Hi-Point, model JHP-45, .45 caliber semiautomatic pistol, and ammunition. Tyler had previously been convicted of multiple felony offenses, including felony convictions for third-degree burglary in Logan Circuit Court Case Number 17-CR-00089 and first-degree trafficking in a controlled substance (less than four grams of cocaine), in Logan Circuit Court Case Numbers 14-CR-00070 and 14-CR-00069.
As a result of being a convicted felon Tyler was prohibited from possessing any firearms.
Tyler was also sentenced to 3 years of supervised release upon completion of his term of imprisonment. There is no parole in the federal system.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
The ATF Bowling Green Field Office, with the assistance of the South-Central Kentucky Drug Task Force, investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Liverpool Man Sentenced to 84 Months for Receiving and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Dominic Zampini, age 27, of Liverpool, New York, was sentenced on November 10, 2022, to 84 months in federal prison for receiving and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Acting Superintendent Steven A. Nigrelli.
As part of his guilty plea, Zampini admitted that between October 2020 and December 2020, he knowingly received child pornography images over the internet from another individual he met through a mobile application, and that in September, 2021 he possessed images depicting child pornography on two cell phones.
United States District Judge David N. Hurd also imposed a 10-year term of supervised release, which will begin after Zampini is released from prison, and ordered Zampini to pay $3,000 in restitution and a $300 special assessment. Zampini will also be required to register as a sex offender.
This case was investigated by the New York State Police and the Department of Homeland Security, Homeland Security Investigations, and prosecuted by Assistant U.S. Attorney Matthew J. McCrobie as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Lincoln County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Randall Jim Hughes, 38, of Alkol, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for possession with intent to distribute a quantity of a mixture or substance containing fentanyl.
According to court documents and statements made in court, on June 15, 2021, law enforcement officers arrested Hughes on an outstanding warrant. During the arrest, two baggies containing approximately 23 grams of fentanyl fell from Hughes’ person. Hughes admitted that he possessed the fentanyl and intended to distribute it. Hughes further admitted that officers seized two loaded firearms from him during the arrest.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Kanawha County Sheriff’s Office, the Metropolitan Drug Enforcement Network Team (MDENT) and the United States Marshals Service.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani and former United States Attorney Nick Miller 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-205.
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Levittown Physician Agrees to Pay Nearly $490,000 to Resolve Controlled Substances Act ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kenneth Fox, D.O., has agreed to pay $489,025 to resolve allegations that he violated the Controlled Substances Act (CSA) by failing to maintain complete and accurate records of controlled substances, failing to keep required receipt and dispensing records, failing to perform biennial inventories, and writing prescriptions “for stock.”
The United States’ investigation involved Fox’s practice located at 1310 Frosty Hollow Road, Levittown, PA 19056.
As part of the settlement, Fox has entered into a three-year Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances. The MOA imposes compliance obligations significantly more stringent than those in the applicable laws and regulations.
Fox prescribes and administers phentermine, a Schedule IV controlled substance, and suboxone, a Schedule III controlled substance. In February 2013, DEA Investigators discovered that Fox allegedly failed to conduct a biennial inventory, failed to maintain records for receipt and dispensing of controlled substances, and failed to keep controlled substances secure – all in violation of applicable regulations and statutes. In April 2013, the DEA issued a Letter of Admonition to Fox, who agreed to correct his conduct thenceforth.
Nine years later, the DEA performed another scheduled on-site inspection of Fox’s facility. During this inspection, Investigators discovered that Fox continued the same violations as before, and in addition, was prescribing controlled substances “for stock” in violation of the applicable regulations. On the date of inspection, Fox allegedly produced non-compliant and incomplete dispensing records, and no records of biennial inventory, or invoices/receipts for controlled substances. The Investigators obtained records of Fox’s prescriptions “for stock” from a local retail pharmacy. Physicians are prohibited from obtaining controlled substances for the purpose of general dispensing to patients; they must comply with the requirements for a valid prescription, including the date, patient’s name and address, drug name and strength, dosage form, quantity prescribed, directions for use, and the physician/registrant’s name, address, and registration number. The prescription requirement is one of the ways in which controlled substances are tracked to prevent diversion and abuse.
“Physicians who fail to maintain proper records of controlled substances create conditions ripe for diversion, or, at worst, may be engaging in diversion itself,” said U.S. Attorney Romero. “Physicians and pharmacists have a responsibility to ensure that all controlled substances are tracked through the distribution chain. Our Office is committed to ensuring total compliance with the Controlled Substances Act and we will vigorously enforce violations wherever we find them.”
Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that controlled substances are not lost, stolen, or inappropriately dispensed.
“The goal of DEA’s closed system of distribution is to insure accountability for controlled substances; it insures that end-users directly receive controlled substances from where they were dispensed,” said Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division. “In ordering controlled substances “for stock” at his office, Dr. Fox made himself a middle-man in this same closed system and created an environment where controlled substances are not properly inventoried or secured.”
The government’s pursuit of this matter illustrates its emphasis on combating diversion of controlled substances. The record keeping and other regulations applicable to DEA registrants, including physicians, are the tools by which the DEA deters drug diversion.
The investigation was conducted by the DEA’s Philadelphia Field Division, Diversion Groups D71 and D72, and the investigation and settlement were handled by Assistant U.S. Attorney Viveca D. Parker, with assistance from Asset Investigator Shantelle Kitchen-Nelson.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Lehigh Acres Man Sentenced to Federal Prison for Straw Purchasing Firearms for A Mexican Drug CartelRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Gabriel Acosta, Jr. (28, Lehigh Acres) to 3 years and 1 month in federal prison for falsifying records relating to firearms purchases. Acosta had pleaded guilty on May 25, 2022.
According to court records, between December 2018 and March 2019, Acosta purchased multiple high-powered rifles from licensed gun dealers in Fort Myers and Cape Coral at the request of a Mexican drug cartel. For each purchase, Acosta falsely certified in ATF paperwork that he was purchasing the firearms for himself, when in truth he knew he was straw-purchasing them for a Mexican drug cartel in exchange for cash kickbacks. After the firearms were purchased, Acosta would travel to Laredo, Texas to offload the guns to a cartel associate. Since late-2019, three firearms straw-purchased by Acosta in Florida have been recovered by Mexican military personnel following firefights with suspected cartel members.
This case was investigated the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
KS Priest & NY Businessman Indicted in Scheme to Defraud Foster Care ProgramRead the Press Release
TOPEKA, KAN. – A federal grand jury in Topeka returned an indictment charging a Kansas priest and a New York businessman in connection with a scheme to defraud a foster care organization of $10 million.
According to court documents, Robert Nelson Smith, 50, of Salina is charged with one count of conspiracy to commit wire fraud, 15 counts of wire fraud, and one count of money laundering.
William Byrd Whymark, 50, of Mount Kisco, New York, is charged with one count of conspiracy to commit wire fraud, 10 counts of wire fraud, three counts of money laundering.
Saint Francis Ministries (SFM) is a 501c(3) faith-based organization in Salina, Kansas, that provides foster care and social services in the states of Kansas, Arkansas, Mississippi, Nebraska, Oklahoma, and Texas. In 2018, the SFM board agreed to upgrade its IT systems, hardware, and software programs. As the SFM Chief Executive Officer, Robert Smith, an ordained Episcopal priest, entered into an agreement on behalf of SFM with a company owned by William Whymark. Smith is accused of approving and authorizing payments of fraudulent, overinflated invoices submitted by Whymark.
Smith is also accused of using SFM credit cards for personal, unauthorized expenditures.
Robert Smith is scheduled for his initial court appearance today at 1:30 p.m. before a U.S. Magistrate Judge of the U.S. District Court for the District of Kansas.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorneys Christine Kenney and Skipper Jacobs are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jury Convicts Former Oregon Securities Broker of Tax EvasionRead the Press Release
PORTLAND, Ore.—After a two-week trial, a federal jury in Portland found a McMinnville, Oregon man guilty today of evading $2.5 million in income taxes by hiding his income in multiple bank accounts and submitting false financial statements to the IRS.
James Millegan, 65, was convicted of one count of tax evasion.
According to court documents, Millegan owned and operated J.W. Millegan, Inc., a small, commission-based investment advisory business that served clients in the Portland and Salem, Oregon metropolitan areas. From 1996 to 2016, the investment firm was Millegan’s only significant source of income.
Over a seven-year period from July 2009 through September 2016, Millegan evaded payment of $2.5 million in income taxes. Millegan filed tax returns each year reflecting his true income, which sometimes exceeded $1 million, and the taxes he owed on that income, which typically ranged from $125,000 to $350,000. Despite these returns, Millegan often failed to pay the IRS.
Millegan was described as a prolific spender by personal assistants hired to pay his bills. He used the proceeds of his tax evasion to fund an extravagant lifestyle that included a $4.5 million home in Portland, a $1.3 million home on the Oregon coast, Rolls Royce and Bentley automobiles for everyday use, equestrian expenses like stabling and lessons, and an attempt to establish a world-class equestrian competition center and resort near Sheridan, Oregon. Millegan also bought a classic 1938 Rolls Royce touring car, spent $800,000 restoring it, and showed it in premier car shows in the U.S., Great Britain, and Europe.
To evade the payment of his income taxes, Millegan concealed his income from the IRS by transferring it to six bank accounts he controlled, including transferring $1.4 million to the bank account of his deceased mother’s trust, which he used to pay his personal expenses. From July 2009 through September 2016, Millegan transferred $3.7 million to these accounts. To further conceal his income, Millegan submitted false financial statements to the IRS.
On November 21, 2019, a federal grand jury in Portland returned a 13-count indictment charging Millegan with tax evasion and investment churning. Later, on February 17, 2022, he was charged by superseding indictment with wire fraud and tax evasion. A jury trial on the wire fraud charges is scheduled to begin in March 2023.
Tax evasion is punishable by up to five years in federal prison. Millegan will be sentenced on April 3, 2023, by U.S. District Court Judge Karin J. Immergut.
This tax evasion case was investigated by IRS-Criminal Investigation. Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon, are prosecuting the case. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Investiture Ceremony for United States Attorney Trina A. Higgins District of UtahRead the Press Release
***MEDIA ADVISORY***
SALT LAKE CITY, Utah – At the request of the United States Attorney’s Office for the District of Utah, members of the media are invited to attend the ceremonial oath of office for the Honorable Trina A. Higgins, the first woman in Utah to be presidentially appointed to serve as United States Attorney.
WHEN: THURSDAY, NOVEMBER 17, at 2:00 p.m. MST
WHERE: United States Courthouse, 351 South West Temple, SLC, UT 84111
Courtroom 3.100
WHO: Trina A. Higgins, U.S. Attorney for the District of Utah
NOTE: One member of the media per news organization. RSVP appreciated. Media access will begin promptly at 1:30 p.m. Camera, audio and video are not permitted. All media will be subject to security screening. The ceremony will begin promptly, so please allow sufficient timing to take your seat, and consider parking. Pictures and a press release will be issued following the investiture.
Investigation of prolific fentanyl distribution ring recognized as “Outstanding” work by Director of Organized Crime Drug Enforcement Task Forces (OCDETF)Read the Press Release
Seattle – U.S. Attorney Nick Brown today congratulated law enforcement partners and members of the U.S. Attorney’s Office for its work being named the outstanding OCDETF investigation in the eleven district Pacific Northwest region. The investigation and prosecution of drug ring leader Bradley Woolard and his co-conspirators was named the top 2022 investigation in the region comprising Washington, Oregon, Idaho, Nevada, Alaska, Hawaii, Guam, the Northern Mariana Islands, and the Northern and Eastern Districts of California.
The drug ring distributed fentanyl pills in Snohomish, Skagit, and Whatcom counties. The ringleader, Woolard, 42, of Arlington, was sentenced to 20 years in prison for his conviction on 28 counts involving conspiracy to distribute controlled substances, conspiracy to commit money laundering, money laundering, illegal gun possession, and possessing drugs with the intent to distribute them. Co-defendants, Anthony Pelayo, 34, of Marysville, was sentenced to 15 years in prison, and a $150,000 fine and Jerome Isham, 40, of Everett, was sentenced to 10 years in prison.
The OCDETF Award recognizes the investigative agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service, the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service (USPIS) and the Lynnwood Police Department, Snohomish County Sheriff’s Office, and Whatcom County Sheriff’s Office. Assistant United States Attorneys Karyn Johnson and Mike Lang led a team of 13 attorneys and support staff who worked on the case for the U.S. Attorney’s Office.
The award, the highest given by the program, is intended to recognize the law enforcement team for its “extraordinary achievement of the disruption/dismantlement of a major criminal organization/network.”
Guatemalan National Arrested in Stamford Admits Illegally Reentering the U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JULIO BAYRON-ARRIOLA, 49, a citizen of Guatemala last residing in Stamford, pleaded guilty today in Hartford federal court to one count of illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on six occasions between 2009 and 2020, Bayron-Arriola was encountered in the U.S. and subsequently removed to Guatemala. During that time, he was charged federally and convicted in the District of Arizona three times: In 2010 he was convicted of possession with intent to distribute marijuana, and in 2012 and 2017, he was convicted of illegal reentry.
On December 25, 2021, Bayron-Arriola was arrested by Stamford Police. He was subsequently convicted of a state threatening offense.
Bayron-Arriola is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 9, at which time his faces a maximum term of imprisonment of 10 years.
Bayron-Arriola has been detained since his arrest.
The investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, with the assistance of the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Gloster Man Sentenced to over Five Years in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss. – A Gloster, Mississippi man was sentenced by Senior U.S. District Judge David Bramlette, III, to 70 months in federal prison for possession with intent to distribute cocaine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Lloyd Palmer, III a/k/a Lo Lo, 48, was under investigation for cocaine distribution when, from August of 2019 through September of 2020, he sold cocaine on several occasions to a confidential source. During this period, Palmer distributed close to a quarter of kilogram of cocaine in the Wilkinson County area.
The case is the result of an extensive investigation, dubbed “Low Haul,” which began as an operation targeting illegal drug trafficking in the Jackson, Mississippi area. “Low Haul” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Federal Bureau of Investigation and Mississippi Bureau of Narcotics - McComb District.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Fort Myers Felon Sentenced to Federal Prison for Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Otis Marchman IV (28, Fort Myers) to 3 years and 5 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Marchman to forfeit the firearm and ammunition used in the offense. Marchman had pleaded guilty on August 12, 2022.
According to court records, on December 26, 2020, officers from the Fort Myers Police Department attempted to conduct a traffic stop on a vehicle driven by Marchman on South Street in Fort Myers. Instead of stopping his vehicle, Marchman accelerated away from officers until his vehicle became disabled several blocks away. Marchman then ran from his vehicle and hid in nearby bushes before he was apprehended and arrested by the officers. Inside his vehicle, officers located Marchman’s loaded Glock .45 caliber handgun. As a convicted felon, Marchman is prohibited from possessing a firearm or ammunition under federal law. At the time of this incident, Marchman was on federal supervised release for an unrelated case, and the court ordered Marchman’s prison sentence in this case to run consecutively to a two-year prison sentence imposed in connection with his supervised release violation.
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.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Former Owner and General Manager of Oregon Dump Truck and Concrete Companies Pleads Guilty after Failing to Pay Employment TaxesRead the Press Release
PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon pleaded guilty today to willfully failing to pay employment taxes despite withholding them from employee paychecks.
Rebekah Joy Williams, 44, a resident of Damascus, pleaded guilty to one count of failing to pay over employment taxes.
According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, accounting for, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.
Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.
On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes.
Williams faces a maximum sentence of five years in prison, a $250,000 fine or twice her gross gains resulting from the offense, and three years of supervised release. She will be sentenced on February 14, 2023, by U.S. District Court Judge Karin J. Immergut.
As part of her plea agreement, Williams has agreed to pay $725,492 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Former MLB Player Agrees to Plead Guilty to Felony Charge for Lying to Federal Agents Investigating Illegal Gambling OperationRead the Press Release
LOS ANGELES – A former Major League Baseball (MLB) player has agreed to plead guilty to a federal charge for lying to federal law enforcement officials about bets on sporting events that he placed with an illegal gambling operation, according to court documents unsealed today.
Yasiel Puig Valdés, 31, who currently plays professional baseball in South Korea, has agreed to plead guilty to one count of making false statements, a crime that carries a statutory maximum sentence of five years in federal prison.
Puig, who formerly played for the Los Angeles Dodgers and two other MLB franchises, has agreed to pay a fine of at least $55,000. Puig has agreed to make his initial appearance on November 15 in United States District Court.
“Under our system of justice, no one is above the law,” said United States Attorney Martin Estrada. “The integrity of our nation’s criminal justice system depends on people telling the truth, and those who fail to abide by this simple principle must face consequences.”
“When given the opportunity to be truthful about his involvement with Nix’s Gambling businesses, Mr. Puig chose not to,” said IRS Criminal Investigation Los Angeles Field Office Special Agent in Charge Tyler Hatcher. “Mr. Puig’s lies hindered the legal and procedural tasks of the investigators and prosecutors.”
“Lying to federal agents is a serious offense,” said HSI Los Angeles Acting Special Agent in Charge Eddy Wang. “HSI Los Angeles and our partners will actively pursue those that seek to hinder the fair administration of justice.”
According to his plea agreement, which was filed on August 29, in May 2019, Puig began placing bets on sporting events through a third party – identified in court documents as “Agent 1” – who worked on behalf of an illegal gambling business run by Wayne Joseph Nix, 46, of Newport Coast.
Puig called and sent text messages to Agent 1 with wagers on sporting events. Agent 1 then submitted the bets to the Nix gambling business on Puig’s behalf. By June 2019, Puig owed Nix’s gambling business $282,900 for sports gambling losses.
Agent 1 and another person identified in court papers as “Individual B” instructed Puig to make a check or wire transfer payable to a Nix gambling business client – identified in court papers as “Individual A” – to whom the business owed at least $200,000 in gambling winnings.
On June 25, 2019, Puig withdrew $200,000 from a Bank of America branch in Glendale then purchased two cashiers’ checks for $100,000 each that were made payable to Individual A. Puig did not immediately send the checks due to a dispute over the balance and access to Nix-controlled websites used to place sports bets. Nix refused to allow Puig access to the betting websites until Puig’s gambling debt was paid.
After Puig paid the $200,000, Nix provided Puig direct access to the betting websites. From July 4, 2019 to September 29, 2019, Puig placed 899 additional bets on tennis, football and basketball games through the websites.
In January 2022, federal investigators interviewed Puig in the presence of his lawyer. During the interview, despite being warned that lying to federal agents is a crime, Puig lied several times. During the interview, he falsely stated that he only knew Agent 1 from baseball and that he never discussed gambling with him, when in fact Puig discussed sports betting with Agent 1 hundreds of times on the telephone and via text message.
After agents showed Puig a copy of one of the cashiers’ checks he purchased on June 25, 2019, Puig falsely stated that he did not know the person who instructed him to send $200,000 in cashiers’ checks to Individual A. Puig also falsely stated that he had placed a bet online with an unknown person on an unknown website that resulted in a loss of $200,000.
In March 2022, Puig sent Individual B an audio message via WhatsApp in which he admitted to lying to federal agents during the interview two months earlier.
Nix pleaded guilty on April 11 to one count of conspiracy to operate an illegal sports gambling business and one count of filing a false tax return. His sentencing hearing is scheduled for March 8, 2023.
Federal prosecutors today also filed a plea agreement for former MLB player Erik Kristian Hiljus, 49, of Panorama City, who agreed to plead guilty to two counts of subscribing to false tax returns and will face up to six years in federal prison upon entering his guilty plea. Hiljus was an agent for Nix’s illegal gambling business but did not work with Puig.
Homeland Security Investigations (HSI) and IRS Criminal Investigation are investigating this matter. The HSI agents are part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Dan Boyle of the Asset Forfeiture and Recovery Section are prosecuting these cases.
Former Kansas City, Kansas, Police Department Detective and Three Others Indicted for Conspiracy to Hold Young Women in Involuntary Servitude and Forcing Them to Provide Sexual ServicesRead the Press Release
A federal grand jury in Topeka, Kansas, returned a three-count indictment, unsealed today, charging former Kansas City Police Department detective Roger Golubski and three other men – Cecil Brooks, LeMark Roberson and Richard Robinson – with conspiring, decades ago, to hold young women in a condition of involuntary sexual servitude. Brooks, Roberson and Robinson are also charged in a substantive count with holding a young woman, identified as Person 1, in a condition of involuntary servitude; and Brooks, Roberson and Golubski are charged in a substantive count with holding another young woman, Person 2, in a condition of involuntary servitude.
According to the indictment, from 1996 through 1998, Brooks provided a location at Delevan Apartments in Kansas City, where young women were held and where Brooks, Roberson and Robinson used physical beatings, sexual assaults and threats to compel young women to provide sexual services to men. Then detective Golubski is alleged to have accepted money from Brooks; provided protection from law enforcement for the criminal activity, including sex trafficking; and forcibly raped the young woman identified as Person 2.
The first count of the indictment charges all four men with conspiring to hold young women, including Person 1 and Person 2, in a condition of involuntary servitude; the second count charges Brooks, Roberson, and Robinson with holding Person 1 in involuntary servitude and forcing her to provide sexual services to Roberson; and the third count charges Brooks, Roberson and Golubski with holding Person 2 in involuntary servitude and forcing her to provide sexual services to adult men, including Brooks, Roberson and Golubski.
If convicted, each defendant faces a maximum sentence of life in prison.
Golubski was previously charged, in a separate indictment with civil rights violations for allegedly acting under color of law to commit aggravated sexual assaults.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office investigated the case in conjunction with the Kansas Bureau of Investigation. Assistant U.S. Attorney Stephen Hunting for the District of Kansas and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
This investigation is ongoing. Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Department of Transportation employee charged with bribery and extortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, Lyford, is scheduled for his initial court appearance today 2 p.m.
According to the indictment, returned Nov. 2, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their DOT license, Gorena allegedly demanded a $3,500 payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of law.
If convicted, he faces a maximum penalty of 35 years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The DOT-OIG and McAllen FBI Public Corruption Squad are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
Former Department of Transportation Employee Charged with Bribery and ExtortionRead the Press Release
A federal grand jury in Houston has returned an indictment charging a former U.S. Department of Transportation (DOT) employee with bribery and extortion.
Patrick Gorena, 54, of Lyford, Texas, is scheduled to make his initial court appearance today at 3 p.m. EST.
According to court documents, Gorena was a border investigator for DOT’s Federal Motor Carrier Safety Administration. In exchange for minimizing purported safety violations he encountered while auditing a trucking company, which would have exposed the company to potential fines and the loss of their ability to operate, Gorena allegedly demanded a $3,500 cash payment. The charges allege Gorena ultimately accepted a $2,000 bribe from an undercover law enforcement officer posing as a representative of the trucking company.
Gorena is charged with one count of bribery and one count of extortion under color of official right. If convicted, he faces a maximum penalty of 20 years in prison on the extortion count and 15 years in prison on the bribery count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jennifer Lowery for the Southern District of Texas, Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office, and Special Agent in Charge Todd A. Damiani of the DOT Office of Inspector General’s (DOT-OIG) Southern Region made the announcement.
The McAllen FBI Public Corruption Squad and DOT-OIG are investigating the case.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Richard Hanes for the Southern District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Auditor at Newport Beach Commercial Real Estate Agency Arrested on Complaint Alleging He Stole $2.5 Million from EmployerRead the Press Release
SANTA ANA, California – A former executive at an Orange County commercial real estate agency was arrested today on a federal criminal complaint alleging a decade-long scheme in which he stole $2.5 million by submitting fictitious invoices for companies controlled by his family and friends whose services were never performed.
Varun Aggarwal, 40, of Irvine, California, was arrested this morning by special agents with the FBI. He is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.
Aggarwal is charged with one count of mail fraud and one count of wire fraud.
According to an affidavit filed with the complaint that was unsealed today, beginning at least in 2012 and continuing through January 2022, Aggarwal used his position at the Newport Beach-based KBS Realty Advisors to embezzle his employer’s money.
During his decade-long tenure at KBS, Aggarwal worked in the company’s internal auditing department, rising to the level of the department’s director. As a member of the company’s accounting group, Aggarwal was intimately familiar with KBS’s policies and procedures for payments to vendors. Aggarwal used his knowledge of KBS’s policies and procedures to have his friends and family perform contracting work for his groups at KBS.
After several of these companies became approved vendors for KBS, Aggarwal used these approved vendors to submit fraudulent invoices for consulting services that were not performed for the company, the complaint alleges. He then funneled the payments on the invoices from KBS to his own bank accounts – through the approved vendors – at times without informing the vendors that the invoices and the payments on the invoices were for his own benefit.
Aggarwal resigned from KBS in January 2022 after the company began investigating the invoices, the affidavit states.
A review of company, bank and tax records show that Aggarwal, using approximately six vendors, stole approximately $2,601,246 from KBS between approximately January 1, 2012, and January 13, 2022, according to the affidavit.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both counts, Aggarwal would face a statutory maximum sentence of 40 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Brett A. Sagel of the Santa Ana Branch Office is prosecuting this case.
Florida Birth-Related Neurological Injury Compensation Plan and Association to Pay $51 Million to Resolve False Claims Act AllegationsRead the Press Release
The Florida Birth-Related Neurological Injury Compensation Plan and its administrator, the Florida Birth-Related Neurological Injury Compensation Association (collectively, “NICA”), have agreed to pay $51 million to resolve allegations that they violated the False Claims Act by causing NICA participants to submit their healthcare claims to Medicaid rather than NICA, in violation of Medicaid’s status as the payer of last resort under federal law.
The civil settlement resolves a lawsuit filed and pursued by Veronica N. Arven and the estate of Theodore Arven III against NICA under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. Although the United States did not intervene in this case, it continued to investigate the whistleblowers’ allegations, provided substantial assistance to the whistleblowers in defending against a motion to dismiss, and negotiated the settlement announced today. The Arvens will receive $12,750,000 as their share of the recovery in this case.
“Health care plans may not shift the payment of claims to federally funded programs like Medicaid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensuring that federal health care dollars are spent appropriately.”
“The Medicaid program provides a safety net for our most vulnerable populations that do not have access to traditional healthcare coverage,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “My office is dedicated to protecting critical government healthcare programs, like Medicaid, that serve the elderly and disabled. The misuse of Medicaid funds will not be tolerated.”
“When Medicaid is improperly billed for services that should be covered by other funding sources, the integrity of this safety net program is undermined,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to investigate such schemes to protect federal health care programs and those served by them.”
The Florida Legislature established NICA in 1988 as an alternative to the traditional tort system. NICA was intended to provide compensation, on a no-fault basis, for the medical, rehabilitative and custodial care of children who suffered certain categories of birth-related neurological injuries. Under Florida law, once a child is admitted into NICA’s program, NICA is responsible for the payment of medical and other expenses incurred because of a birth-related neurological injury. Medicaid is a joint federal-state healthcare program that provides coverage and benefits to low-income and disabled individuals. Under federal law, Medicaid is generally the payer of last resort.
The qui tam case is captioned United States ex rel. Arven v. The Florida Birth-Related Neurological Injury Compensation Ass’n, et al., Case No. 19-cv-61053-WPD (S.D. Fla.). This case was handled by the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the Civil Division’s Commercial Litigation Branch and the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida and Fraud Section Attorney Seth Greene.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Federal grants to Seattle and King County focus resources on opioid abuse and reentry from criminal justice systemRead the Press Release
Seattle – U.S. Attorney Nick Brown today highlighted Department of Justice grants awarded to Seattle and King County to assist with issues of opioid abuse and reentry to the community for those involved in the criminal justice system. The three awards total more than $4 million.
“More and more, opioid addiction impacts our friends, neighbors, and loved ones. And anyone walking in our city today sees the harm of opioid addiction in those who live on our streets with little hope of a better life,” said U.S. Attorney Nick Brown. “These grant funds from the Justice Department are for locally designed programs to help with the addiction crisis.”
The largest grant is to the city of Seattle -- $1,597,836 -- for a program that will provide transitional housing and other services to women who have substance use disorder and are transitioning out of jails and prisons. The Seattle Police Department will work with the Department of Corrections and case managers to address the multiple needs of women reentering the community.
King County is awarded $1,586,310 to support the creation of an Overdose Fatality Review process in King County that can serve as a community-based rapid response network to develop strategies for the treatment and prevention of overdose. The grant will help fund naloxone kits for law enforcement and first responders. Grant funds will also be used to help establish networks to provide education and information about emerging drug trends.
King County’s Department of Adult and Juvenile Detention also received $842,851 to improve educational opportunities in the correctional setting. The funding is aimed at enhancing educational services at the county corrections facilities by using technology and programs tailored to the inmates’ language and educational level.
All three grants are from DOJ’s Bureau of Justice Assistance.
Federal Jury Finds Grand Junction Truck Driver Guilty of Sexually Abusing Two ChildrenRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces a federal jury today found Michael Tracy McFadden, age 51, of Grand Junction, guilty of crossing state lines with intent to engage in a sexual act with a minor under the age of 12, and transportation of a minor with intent to engage in sexual activity.
According to facts presented at trial, McFadden was a long-haul truck driver who took at least two children on multiple trips out of state. Over a span of at least six years, McFadden repeatedly sexually assaulted the children, both in his home in Grand Junction and in his semitruck in other states. Two of his victims bravely testified at trial, relating to the jury the countless times McFadden abused them.
Judge Christine M. Arguello presided over the five-day trial. The jury returned its guilty verdict on November 14, 2022. Sentencing is set for March 7, 2023. McFadden faces a mandatory minimum sentence of 30 years in prison and may be sentenced up to life in prison.
McFadden was previously charged and convicted in state court with sexual assault of six separate children. However, his convictions were overturned on appeal due to a speedy trial violation, preventing any further state court prosecution. Upon learning this, the Federal Bureau of Investigation (FBI) Denver Division immediately launched an investigation into potential federal violations. McFadden was indicted by a federal grand jury in 2019, and rearrested on federal charges.
“The U.S. Attorney’s Office is honored to be a small part of bringing justice for the victims in this case. These victims, despite setbacks and delays, courageously faced their abuser and described convincingly the abuses they suffered more than ten years ago. Their bravery and resilience are inspiring. No matter how long it takes, or how difficult the process, our office will continue to seek justice for all victims,” said U.S. Attorney Cole Finegan.
The investigation in this case was conducted by the FBI Denver Division with substantial assistance from the Grand Junction Police Department and the 21st Judicial District Attorney’s Office. The prosecution was handled by Assistant United States Attorneys Jeremy Chaffin and Andrea Surratt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
CASE NUMBER: 19-CR-243
Fort Washakie Man Sentenced in Assault by Strangulation CaseRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that RELAND LEONARD -HIWALKER, A/K/A/ RELAND FERRIS, age 37, of Fort Washakie, Wyoming was sentenced by United States District Court Judge Alan B. Johnson on October 19, 2022, for assault by strangulation to 24 months’ imprisonment with three years of supervised release, and was ordered to pay a $100 special assessment.
The sentence was in connection with a May 10, 2022, assault in which FERRIS strangled the victim with his hands around the victim’s neck multiple times, leaving the victim unconscious on one occasion.
This crime was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case No. 22-CR-00071-ABJ