Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 6 April 2022
Orlando Registered Sex Offender Guilty of Attempting to Produce Child PornographyRead the Press Release
Miami, Florida – Joseph Furey Lusk, 47, of Orlando, pleaded guilty before U.S. District Court Judge Aileen M. Cannon in Ft. Pierce, Florida to attempted production of child pornography and committing an offense involving a minor while required to register as a sex offender. As the result of a previous 2018 Florida state conviction for traveling to meet a minor, Lusk is required to register as a sex offender.
According to court records, in August of 2021, less than one month after his release from state custody, Lusk reached out on social media to someone he believed to be a 15-year-old girl. Over the course of several weeks, Lusk engaged in sexually explicit chats with the girl, in which he encouraged her to send him nude images and videos of herself and friends engaged in sexual activity. Lusk also shared several photographs of his erect penis on social media.
U.S. District Court Judge Aileen M. Cannon will sentence Lusk on June 13, at 10:00 a.m., in Fort Pierce. Lusk faces between 20 years and life in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Fort Pierce investigated the case, with assistance from Martin County Sheriff’s Office. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14036.
###
Omaha Man Sentenced to 135 Months for Sex Trafficking of a MinorRead the Press Release
United States Attorney Jan Sharp announced that Lance Harper, 31, of Omaha, Nebraska, was sentenced today in federal court in Omaha for sex trafficking of a minor. United States District Judge Brian C. Buescher sentenced Harper to 135 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Harper will serve 5 years of supervised release and will be required to register as a sex offender.
Federal agents began investigating in September 2020, after two Omaha foster children went missing from their foster home. The investigation showed that Harper transported one of the minors to Norfolk, Nebraska, where the minor engaged in sex with an adult male for money and Harper received some of the money from the sex sale.
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.
Ohio man sentenced for selling methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Myron Henderson, of Euclid, Ohio, was sentenced today to 110 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Henderson, also known as “Charlie,” age 41, pleaded guilty in November 2021 to one count of “Distribution of Methamphetamine within 1000 feet of a Protected Location.” Henderson admitted to selling methamphetamine near North Park Apartments in June 2019 in Ohio County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. District Judge John Preston Bailey presided.
Ohio County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Travis E. Vossen, of Wheeling, West Virginia, was sentenced today to 97 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Vossen, 32, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl within 1,000 feet of a Protected Location.” Vossen admitted to selling fentanyl near Ritchie Elementary School in Ohio County in May 2021.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
North Charleston Man Who Fled from Police Sentenced to Thirteen Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Charleston, South Carolina --- Alouis Levorge Taylor, 37, of North Charleston, was sentenced to thirteen years in federal prison after pleading guilty to being a felon in possession of a firearm and to possessing cocaine and marijuana with intent to distribute.
Evidence presented to the court showed that on March 1, 2018, officers with the Charleston Police Department were on patrol in the Bridgeview apartment complex and approached a parked car running without lights. Taylor was sitting alone in the car, and officers could smell marijuana and see a bag of white powder in plain view. Instead of stepping out as requested, Taylor reversed and almost struck an officer with his driver-side door. He then attempted to drive away, plowing into a parked car, and driving erratically through the parking lot before fleeing on foot. Officers discovered Taylor’s abandoned vehicle nearby with a broken axel. There was a bag of cocaine in the cupholder and a loaded gun hidden behind a panel near the door. Officers also found five pounds of marijuana abandoned nearby and discovered that Taylor’s vehicle had been modified to install a secret compartment in the passenger seat.
Taylor, who was already on federal supervision for a previous offense involving guns and drugs, was arrested soon thereafter. He was charged federally and pled guilty on November 19, 2021. Taylor has a long criminal history, which includes multiple prior convictions for gun and drug offenses and for assaulting police.
United States District Judge Richard M. Gergel sentenced Taylor to 156 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Agency and the Charleston Police Department.
This case was prosecuted as part of the joint federal, state, and local 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. Assistant United States Attorneys Chris Schoen and Whit Sowards prosecuted the case.
###
New York City Man Sentenced to Nearly Six Years in Federal Prison for Failing to Register as A Convicted Child Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Samuel Maldonado (48, New York City) to 5 years and 10 months in federal prison for failing to register as a convicted sex offender after absconding from parole in New York and moving to Jacksonville. Maldonado was also ordered to serve a 10-year term of supervised release. Maldonado has been in custody since his arrest on December 15, 2016, in New York City. He had pleaded guilty on February 24, 2022.
According to court documents and information provided in open court, in 2009, Maldonado was convicted in New York of sexual misconduct with a 16-year-old child. In 2011, Maldonado was convicted in New York of first-degree sexual abuse of a 14-year-old child. After being released from prison in New York in 2014, Maldonado was placed on parole. At that time, he was advised of his ongoing duty to register as a sex offender and signed documentation acknowledging that he understood his obligation to do so, including if he relocated to another state.
On March 4, 2016, authorities in New York issued a warrant for Maldonado's arrest for violating his parole by failing to check in with his parole officer. In January 2016, Maldonado had absconded from supervision, left New York, and moved to Jacksonville. After establishing residence in Florida, he knowingly failed to register as a sex offender as required by both federal and Florida law.
On August 8, 2016, Maldonado was arrested in Jacksonville on a warrant based on his New York parole violation and was extradited back to New York. On December 15, 2016, Maldonado was arrested by the U.S. Marshals Service in New York City on a warrant issued by a Florida state court. During an interview, Maldonado admitted that he had several criminal convictions, including his two prior child sexual offense convictions. He also acknowledged that he did not inform his parole officer that he was moving to Florida, and further that he did not register as a sex offender in the state of Florida.
On April 5, 2018, Maldonado was convicted in Florida state court of the lewd or lascivious molestation of a minor child based on conduct that had occurred in July and August 2016 in Jacksonville.
This case was investigated by the U.S. Marshals Service in New York City and Jacksonville, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
The Sex Offender Registration and Notification Act (SORNA) is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in investigating, locating, apprehending, and prosecuting non-compliant sex offenders who fail to register as required by SORNA.
This is another case 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.
Naturopathic Doctor Pleads Guilty to Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
A California-licensed naturopathic doctor pleaded guilty today in the Northern District of California for scheming to sell homeoprophylaxis immunization pellets and for falsifying COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA)-authorized Moderna vaccine.
“This doctor violated the public’s trust and reliance on health care professionals – during a time when integrity was needed most,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of providing sage information and guidance, Mazi profited from peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. The Department of Justice and its law enforcement partners are committed to protecting the American people during this national emergency, including protecting trust in the medical developments allowing us to emerge from the pandemic.”
According to court documents, in April 2021, the Department of Health and Human Services Office of Inspector General (HHS-OIG) received a complaint from a member of the public that Juli A. Mazi, 41, of Napa, was offering homeoprophylaxis immunization pellets which she claimed would provide lifelong protection from COVID-19. Mazi also provided fake CDC COVID-19 vaccination record cards with instructions on how to complete the cards to make them falsely appear to be records of the FDA-authorized Moderna vaccine. The investigation revealed that Mazi provided fake CDC COVID-19 vaccination cards for more than 200 individuals.
According to court documents, Mazi also offered homeoprophylaxis immunization pellets in place of childhood vaccinations required for attendance at school. Mazi provided her patients with deceptive “immunization” cards which she knew would be submitted to schools, and which fraudulently indicated that authorized vaccines had been administered. The investigation revealed that Mazi provided these fake immunization cards to more than 100 individuals.
“Juli Mazi has admitted that she engaged in a scheme to sell fake health care records to her customers,” said U.S. Attorney Stephanie Hinds for the Northern District of California. “Mazi made profits by selling false immunization cards she knew would be used to mislead schools into believing students had been immunized from childhood illnesses as required by law. Mazi also sold fake COVID-19 Vaccination Record Cards suggesting she administered the Moderna vaccine to her customers when, in fact, she had not. Mazi’s fake health care records scheme endangered the health and well-being of students and the general public at a time when confidence in our public health system is of critical importance.”
“During a time when the public has been heavily reliant on our medical professionals for advice and guidance, Mazi has brazenly violated the trust of the public by instilling fear and spreading misinformation surrounding COVID-19 immunizations and treatments,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “There is no place for fraudulent activity, and the FBI will continue to investigate and pursue those who abuse their positions of authority to try and profit in this criminal manner.”
“By falsifying vaccine cards, providers not only undermine important measures to address the ongoing public health emergency; they can also endanger the health of their patients and the public,” said Special Agent in Charge Steven Ryan of HHS-OIG. “HHS-OIG is proud to work with our law enforcement partners to ensure that all health care providers who misuse their medical professional status for financial gain are held accountable.”
Mazi pleaded guilty to one count of wire fraud and one count of making false statements related to health care matters. She is scheduled to be sentenced on July 29. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Naturopathic Doctor Pleads Guilty to Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
SAN FRANCISCO – A California-licensed naturopathic doctor pleaded guilty today for scheming to sell homeoprophylaxis immunization pellets and for falsifying COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA)-authorized Moderna vaccine. The Hon. Charles R. Breyer, U.S. District Judge accepted the plea.
“Juli Mazi has admitted that she engaged in a scheme to sell fake health care records to her customers,” said U.S. Attorney Stephanie M. Hinds. “Mazi made profits by selling false immunization cards she knew would be used to mislead schools into believing students had been immunized from childhood illnesses as required by law. Mazi also sold fake COVID-19 Vaccination Record Cards suggesting she administered the Moderna vaccine to her customers when, in fact, she had not. Mazi’s fake health care records scheme endangered the health and well-being of students and the general public at a time when confidence in our public health system is of critical importance.”
“This doctor violated the public’s trust and reliance on health care professionals – during a time when integrity was needed most,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of providing sage information and guidance, Mazi profited from peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. The Department of Justice and its law enforcement partners are committed to protecting the American people during this national emergency, including protecting trust in the medical developments allowing us to emerge from the pandemic.”
According to court documents, in April 2021, the Department of Health and Human Services Office of Inspector General (HHS-OIG) received a complaint from a member of the public that Juli A. Mazi, 41, of Napa, was offering homeoprophylaxis immunization pellets which she claimed would provide lifelong protection from COVID-19. Mazi also provided fake CDC COVID-19 vaccination record cards with instructions on how to complete the cards to make them falsely appear to be records of the FDA-authorized Moderna vaccine. The investigation revealed that Mazi provided fake CDC COVID-19 vaccination cards for more than 200 individuals.
According to court documents, Mazi also offered homeoprophylaxis immunization pellets in place of childhood vaccinations required for attendance at school. Mazi provided her patients with deceptive “immunization” cards which she knew would be submitted to schools, and which fraudulently indicated that authorized vaccines had been administered. The investigation revealed that Mazi provided these fake immunization cards to more than 100 individuals.
“During a time when the public has been heavily reliant on our medical professionals for advice and guidance, Mazi has brazenly violated the trust of the public by instilling fear and spreading misinformation surrounding COVID-19 immunizations and treatments,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “There is no place for fraudulent activity, and the FBI will continue to investigate and pursue those who abuse their positions of authority to try and profit in this criminal manner.”
“By falsifying vaccine cards, providers not only undermine important measures to address the ongoing public health emergency; they can also endanger the health of their patients and the public,” said Special Agent in Charge Steven Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to ensure that all health care providers who misuse their medical professional status for financial gain are held accountable.”
“The FDA plays a critical role in protecting public health during the COVID-19 pandemic and continues to take swift action on fraudulent COVID-19 products, such as this unauthorized and unproven purported ‘immunization’,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to pursue, investigate and bring to justice those whose actions jeopardize the public health.”
“The defendant spread inaccurate medical information about COVID-19 for personal gain, clearly taking advantage of a situation that had made our community vulnerable,” said Acting Special Agent in Charge Tim Stone. “As the government worked to provide accurate and relevant information during the pandemic, Mazi took advantage of the situation and chose to line her own pockets with profits from fraudulent vaccine documents and medicine, abusing the trust placed in her as a medical professional. The FBI will not tolerate such an abuse of trust,” he said.
On February 2, 2022, the Office of the United States Attorney filed an information charging Mazi with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of making false statements related to health care matters, in violation of 18 U.S.C. § 1035. Pursuant to today’s plea agreement, Mazi pleaded guilty to both counts.
Judge Breyer scheduled Mazi’s sentencing for July 29, 2022. Mazi faces a maximum statutory prison sentence of 20 years for the wire fraud charge and 5 years for the false statements charge. In addition, each charge carries a maximum $250,000 fine and 3 years of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Assistant U.S. Attorney Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Nashua Man Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD - Michael Dukette, 31, of Nashua, pleaded guilty on Tuesday in federal court to possession of child sexual abuse material, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in June of 2018 an individual reported potential child exploitation images to the Hudson Police Department. The individual had lent an iPhone to another person and after it was returned, the woman found an email containing four videos that showed Dukette masturbating while standing over a sleeping child. Dukette subsequently admitted to police during voluntary interviews that he made and kept the videos. Further investigation revealed the child in the videos was five years old at the time the videos were made.
Dukette currently is scheduled to be sentenced on August 23, 2022.
“Protecting children from exploitation is an important priority of the law enforcement community in New Hampshire,” said U.S. Attorney Farley. “Thanks to the hard work of our law enforcement partners, this individual is being held accountable for his disturbing and illegal conduct. We will continue to work closely with our law enforcement partners to identify and prosecute those who commit crimes related to sexual abuse material.”
“Cases like this emphasize how critical the community is in our investigations. Without the assistance of the citizen who brought this material to police attention, the evidence of this exploitation may have gone unnoticed and unreported,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
This matter was investigated by Homeland Security Investigations, the Hudson Police Department and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Mount Pleasant Man Sentenced to 10 years for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Chad Horst Kramolowski, 35, of Mount Pleasant, was sentenced to 10 years in federal prison for possession of child pornography.
Evidence presented to the Court showed that on May 16, 2018, the South Carolina Attorney General’s Office Internet Crimes Against Children (ICAC) section received a CyberTipline Report from Facebook, Inc., who discovered evidence of alleged criminal activity on their servers. The CyberTipline Report showed that a Facebook user received an image of a minor appearing in a state of sexually explicit nudity. ICAC officers tracked the Facebook user’s IP address to Kramolowski’s residence in Mount Pleasant. On March 6, 2019, the Charleston County Sheriff’s Office executed a search warrant at Kramolowski’s residence and found at least 20 images of child pornography, including images of prepubescent minors, on one of Kramolowski’s cell phones. The investigation also revealed that Kramolowski was previously convicted in federal court for possession of child pornography and was sentenced in 2008 to 30 months in federal prison.
United States District Judge Richard M. Gergel sentenced Kramolowski to 120 months in federal prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation (FBI) and Charleston County Sheriff’s Office. Assistant United States Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
###
Medical Doctor to Pay $40,800 to Resolve Civil Liability for Alleged Violations of the False Claims ActRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Ahmed Khan has agreed to pay the United States $40,800 to resolve civil liability for alleged violations of the False Claims Act.
According to United States Attorney, John C. Gurganus, between 2019 and 2020, Dr. Khan accepted consultation fees for ordering Durable Medical Equipment (DME) and topical pain creams for patients with whom he did not have an established provider-patient relationship. He authorized orders for pre-selected products without any physical examination of the patients. In many instances, Dr. Khan had no interaction at all with the patients, and in some instances, he had only a brief phone call. Dr. Khan approved and signed orders for medically unnecessary DME (such as knee braces) and topical pain creams, in exchange for a small fee per patient from a third-party marketing company. As the prescribing physician, Dr. Khan played a key role in a larger telemedicine scheme that resulted in Medicare paying hundreds of thousands of dollars to DME companies and pharmacies for unnecessary products.
This Settlement Agreement is neither an admission of liability by Dr. Khan, nor is it a concession by the United States that its claims are not well founded.
The investigation was handled by Assistant United States Attorney, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
# # #
Maryland Man Sentenced to 39 Years in Prison for Series of Sexual Attacks Targeting MenRead the Press Release
WASHINGTON – Bryant Webster, 38, of Suitland, Maryland, was sentenced today to 39 years in prison for a series of home invasions carried out over a 50-day period in 2016 in which he sexually assaulted three men, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Webster pleaded guilty in July 2019, in the Superior Court of the District of Columbia, to two counts of first-degree sexual abuse while armed and one count of second-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a sentence of 32 to 39 years. The Honorable Ronna L. Beck accepted the plea and the Honorable Marisa Demeo sentenced Webster accordingly. Webster is required to register as a sex offender for life.
According to the government’s evidence, the attacks took place from mid-August to October 2016. In the first assault, Webster entered a residence in a Capitol Hill neighborhood and photographed himself sexually abusing a man who was unconscious. Less than two weeks later, at about 6 a.m. on Aug. 28, 2016, Webster entered an apartment in the same neighborhood without permission. The victim was awakened to find Webster, a stranger, standing in the doorway of his bedroom, dressed all in black, holding a handgun with a red laser sight. He bound the victim’s hands and feet with duct tape, gaged him by putting a T-shirt in his mouth, and raped him repeatedly while threatening to kill him.
The third attack also took place in the Capitol Hill neighborhood, at about 12:30 a.m. on Oct. 1, 2016. Webster crept into a home. He was again armed with a handgun with a laser sight and also had a backpack filled with knives, gloves, screwdrivers, duct tape, a hammer, binoculars, and condoms. He similarly used duct tape to bind the victim, gagged him with a T-shirt, and raped him. The victim managed to alert a roommate who entered the home during the rape, a struggle ensued, and the victim called 911. Police arrested Webster at the scene. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Suzanne Curt and Elizabeth Danello, Deputy Chiefs of the Appellate Division; Assistant U.S. Attorney Luke Jones; former Assistant U.S. Attorney Jessica Brooks; Victim/Witness Advocate Lezlie Richardson; Supervisory Paralegal Specialist Michelle Wicker, and former Paralegal Specialist Donhue Troy Griffith.
Finally, they commended the work of Assistant U.S. Attorney Kenechukwu Okocha, who investigated and prosecuted the case.
Man Sentenced to Nine Years in Federal Prison for Illegally Possessing Loaded Gun on Chicago StreetRead the Press Release
CHICAGO — A man has been sentenced to nine years in federal prison for illegally possessing a loaded handgun on a Chicago street.
CIPRIANO RIVERA illegally possessed the gun on Sept. 28, 2019, near an alley in Chicago’s West Town neighborhood. Rivera was driving his sport-utility vehicle when he fired several shots at an individual who was walking through the alley. Neither the individual nor anyone else was wounded. While speeding away from the area, Rivera tossed the gun out of the car window. Chicago Police officers a short time later pulled over the SUV and arrested Rivera. Bystanders near the scene of the shooting found the gun and alerted police.
Rivera, 36, of Villa Park, Ill., pleaded guilty last year to a federal charge of illegal possession of a firearm. Rivera had previously been convicted of multiple felony firearm offenses in state court and was prohibited by federal law from possessing the gun.
U.S. District Judge Ronald A. Guzman imposed the prison sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Defendant fired his gun to kill the man walking in the alley,” Assistant U.S. Attorney Jason Yonan argued in the government’s sentencing memorandum. “These actions were egregious and placed numerous members of the public at grave risk, including the person defendant shot at and the people living nearby.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A California man was sentenced today to 20 years in prison for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham, aka ISIS.
Bernard Raymond Augustine, 25, of Keyes, was convicted by a federal jury after a one-week trial in August 2021.
According to court documents and evidence presented at trial, in February 2016, Augustine traveled from San Francisco to Northern Africa with the goal of joining ISIS. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled, “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office and Commissioner Keechant L. Sewell of the New York City Police Department made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Craig R. Heeren, Josh Hafetz and Jonathan E. Algor for the Eastern District of New York prosecuted the case, with valuable assistance provided by Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Man Pleads Guilty to Federal Firearm and Drug Trafficking Charges Stemming from His Participation in New Orleans Hotel ShootoutRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on April 5, 2022, CLARENCE SANTIAGO, age 22 from New Orleans, pled guilty to various firearm and drug charges stemming from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street.
Earlier this year, a federal grand jury handed down two related indictments charging a total of seven individuals with various violations of the Federal Gun Control Act and Federal Controlled Substances Acts for participating in this shootout. Today, SANTIAGO pled guilty to Counts 1, 2, 3, and 4 of the indictment, charging him with participating in a conspiracy to possess firearms in furtherance of a drug trafficking crime (Count 1) pursuant to Title 18, United States Code, Section 924(o); using, carrying and discharging a firearm during and in relation to a drug trafficking crime (Count 2) pursuant to Title 18, United States Code, Section 942(c); conspiracy to possess with the intent to distribute marijuana (Count 3) pursuant to Title 21, United States Code, Section 841(b)(1)(D); and, illegally maintaining a drug involved premises (Count 4) pursuant to Title 21, United States Code, Section 856.
SANTIAGO will be sentenced on July 12, 2022. Based on his guilty plea, he faces the following sentences:
For Count 1, he faces a maximum sentence of up to 20 years in prison, not more than 3 years of supervised release, and not more than a $250,000.00 fine;
For Count 2, he will face a mandatory minimum of 10 years up to a maximum of life imprisonment, not more than 5 years of supervised release, and a fine of not more than $250,000.00. Any prison sentence imposed in connection with this count must be served consecutively to any other prison sentence imposed in connection with this case;
For Count 3, he will face up to a maximum of 5 years in prison, not less than two years of supervised release, and not more than a $250,000.00 fine; and
For Count 4, he will face a sentence of not more than 20 years in prison, up to three years of supervised released, a fine of not more than $500,000.00.
SANTIAGO must pay a $100 mandatory special assessment fee for each count of conviction.
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.
The case was investigated by the New Orleans Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Maurice Landrieu and Elizabeth Privitera are in charge of the prosecution.
Lexington Woman Gets 10 Years in Federal Prison on Gun ChargeRead the Press Release
Columbia, South Carolina – Angela Marie Gantt, age 37, of Lexington, was sentenced to ten years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition. Senior United States District Judge Terry L. Wooten of Columbia imposed the sentence. After her release from prison, Gantt will remain under court-ordered supervision for an additional 3 years. There is no parole in the federal system.
Evidence presented in court established that on June 29, 2020, an officer with the South Congaree Police Department responded to an accident in South Congaree where it was reported that a driver, later identified as Gantt, had struck a tree on private property and was attempting to leave the scene. The officer made contact with Gantt and learned she was driving under suspension. A K-9 Officer responded to the scene, and the K-9 alerted to the presence of illegal narcotics in the car. A search of the car recovered approximately 118 grams of methamphetamine and a Smith & Wesson 9mm pistol.
Federal law prohibits Gantt from possessing firearms and ammunition based upon multiple prior state convictions. Gantt’s prior state record includes possession of methamphetamine in 2006, manufacturing methamphetamine in 2007, possession of methamphetamine in 2010, conspiracy to manufacture methamphetamine in 2012, and possession of methamphetamine in 2014 and 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Lexington County Sheriff’s Department, South Congaree Police Department, and Pine Ridge Police Department. It was prosecuted as part of the joint federal, state, and local 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. Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office prosecuted the case.
###
Leader of New Bedford Drug Trafficking Organization Sentenced to More Than Seven Years in PrisonRead the Press Release
BOSTON – The leader of a drug trafficking organization that sold hundreds of grams of deadly fentanyl onto the streets of New Bedford and surrounding communities was sentenced today in federal court in Boston.
Hilario Yogey Mota-Bernabel, 31, was sentenced by U.S. District Court Judge William G. Young to 90 months in prison and four years of supervised release. In May 2021, Hilario Mota-Bernabel pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and six counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl.
In January 2018, agents began an investigation into co-defendant Steven Marshall, a large-scale fentanyl dealer on Cape Cod. On March 1, 2018, police followed Marshall as he conducted a suspected drug transaction in New Bedford. As Marshall drove back toward Cape Cod, he was stopped by investigators and found in possession of approximately 125 grams of fentanyl that Hilario Mota-Bernabel had distributed to him.
Four controlled purchases were made of approximately 100 grams of fentanyl each, from Hilario Mota-Bernabel in March and April 2018. For one of the controlled purchases, Hilario Mota-Bernabel’s brother and co-defendant, Miki Michael Mota-Bernabel, served as the courier, delivering over 100 grams of fentanyl to an undercover agent. Hilario Mota-Bernabel personally delivered the fentanyl on another occasion.
The Mota-Bernabels were arrested in May 2018. A search of their residence and stash house resulted in the seizure of over 200 grams of fentanyl and various drug distribution paraphernalia as well as approximately $12,395 in drug proceeds. In total, Hilario Mota-Bernabel is responsible for possessing and/or distributing over 750 grams of fentanyl and deploying at least two runners to conduct his drug trafficking business.
In September 2020, Miki Mota-Bernabel was sentenced to 30 months in prison and four years of supervised release after pleading guilty. Marshall was arrested in June 2018 and has since pleaded guilty. He is scheduled to be sentenced on May 5, 2022.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement. Assistant U.S. Attorney Lauren A. Graber of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Lawrence Ray Convicted of Racketeering, Violent Assault, Extortion, Sex Trafficking, Forced Labor, Tax Evasion, and Money LaunderingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction in federal court of LAWRENCE RAY, a/k/a “Lawrence Grecco,” for racketeering conspiracy, a violent crime in aid of racketeering, extortion, sex trafficking, forced labor, tax evasion, and money laundering offenses. After less than a day of deliberations, the unanimous jury convicted RAY of every count presented to the jury after a four-week trial before U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “Twelve years ago, Larry Ray moved into his daughter’s dorm room at Sarah Lawrence College. And when he got there, he met a group of friends who had their whole lives ahead of them. For the next decade, he used violence, threats, and psychological abuse to try to control and destroy their lives. He exploited them. He terrorized them. He tortured them. Let me be very clear. Larry Ray is a predator. An evil man who did evil things. Today’s verdict finally brings him to justice. This verdict would not have been possible without the victims who testified in court. We are in awe of their bravery in the face of incredible trauma. I also want to thank the career prosecutors in my Office, the Southern District of New York, and our law enforcement partners, who stood with those victims and worked tirelessly to ensure that justice was done.”
According to the Indictment and the evidence at trial:
From in or about 2010 through the present, LAWRENCE RAY, a/k/a “Lawrence Grecco,” the defendant, subjected a group of college students and other victims to sexual and psychological manipulation and physical abuse. RAY’s tactics included sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, threats of criminal legal action, alienating the victims from their families, and exploiting the victims’ mental health vulnerabilities.
Through this manipulation and abuse, RAY extracted false confessions from the victims to causing purported damages to RAY and his family and associates, and then extorted payment for those purported damages through several means. The victims made payments to RAY by draining their parents’ savings, opening credit lines, soliciting contributions from acquaintances, selling real estate ownership, and at RAY’s direction, performing unpaid labor for RAY and earning money through prostitution.
Through fear, violence, and coercion, RAY forced one female victim to engage in commercial sex acts to pay damages to RAY that she did not actually owe. Beginning when she was just a college student, RAY sexually groomed this victim, and collected sexually explicit photographs and other personal information which he then used to coerce her into continued commercial sex acts. RAY also used physical violence. On one occasion, RAY tied his victim to a chair, placed a plastic bag over her head, and nearly suffocated her. RAY collected millions of dollars in forced prostitution proceeds from this victim.
In addition, RAY forced multiple victims to perform unpaid labor on a family member’s property in North Carolina. Through a course of psychological and physical abuse, RAY forced these victims to do extensive physical labor, sometimes in the middle of the night, for no pay.
Associates of RAY helped RAY collect and transfer the criminal proceeds, which RAY shared with at least two associates. RAY then laundered his criminal proceeds through an internet domain business and evaded paying taxes on his proceeds.
* * *
RAY, 62, of Piscataway, New Jersey, was returned to the custody of the U.S. Marshals following the return of the verdict. RAY was convicted of the following crimes: racketeering conspiracy, which carries a maximum of life in prison; conspiracy to commit extortion, which carries a maximum sentence of 20 years in prison; extortion, which carries a maximum sentence of 20 years in prison; sex trafficking, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 15 years in prison; obtaining forced labor, which carries a maximum sentence of 20 years in prison; forced labor trafficking, which carries a maximum sentence of 20 years in prison; conspiracy to obtain forced labor, which carries a maximum sentence of 20 years in prison; violating the Travel Act, which carries a maximum sentence of five years in prison; four counts of tax evasion, each of which carries a maximum of 5 years in prison, and money laundering, which carries a maximum sentence of 20 years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Danielle Sassoon, Mollie Bracewell, and Lindsey Keenan are in charge of the prosecution.
Lawrence Man Sentenced for Role in Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston on conspiracy and distribution charges involving large quantities of fentanyl.
Ysrael Nunez, 39, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and three years of supervised release. On Jan. 13, 2022, Nunez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute fentanyl; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl and aiding and abetting.
In October 2018, agents began investigating a drug trafficking organization (DTO) that distributed fentanyl in the Lawrence area. Between October 2018 and July 2019, a cooperating witness made controlled purchases of fentanyl from the DTO and on July 24, 2019, Nunez sold the cooperating witness approximately 23 grams of fentanyl. During that meeting, they discussed the DTO supplying the cooperating witness with a kilogram of fentanyl. The following day, the cooperating witness made arrangements with Nunez to purchase a kilogram of fentanyl which was delivered by Nunez’s co-conspirator to the cooperating witness and an undercover agent.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Justice Department Continues Efforts to Stop Fraudulent Tax PreparersRead the Press Release
The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18th federal tax filing deadline approaches. Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers are responsible for what is on their return, even when it is prepared by someone else,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your preparer asks you to sign a blank return, will not let you review your return before filing it, or is depositing your refund in a way that is not clear to you, consult the IRS’s website to make sure you are not exposing yourself to trouble.”
“Tax preparers contemplating filing false returns for their clients should know that our criminal prosecutors are prepared for the filing season too,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the division’s work this past year reflects, we have the expertise and resources to identify and hold preparers fully accountable for their criminal conduct.”
Over the last year, the Tax Division has worked with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers, seeking civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department’s message has been clear: those who prepare fraudulent returns will face serious and lasting consequences.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Feb. 15, 2022, a federal district court in the Northern District of Illinois permanently barred Melissa Gasca individually and doing business as Su Familia Income Tax, as well as FinancialPlus Services Inc., from preparing returns for others and from owning or operating a tax return preparation business in the future. The court also ordered defendants to disgorge approximately $30,000.
- On Oct. 5, 2021, a federal district court in the Western District of Michigan, permanently barred Stanley Meyer (dba I-Tax Services) and Rosa Linda Meyer (dba Su Casa Income Tax Service), husband and wife, from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
- On May 13, 2021, a federal district court in the Northern District of Mississippi permanently barred Kathy Moton and K & M Tax Essentials LLC from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future. The court order also required defendants to send notice of the injunction to each person for whom they prepared federal tax returns, other tax forms or claims for refund after Jan. 1, 2018, and to publicize the injunction for one year on all social media that defendants earlier used to advertise their services.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought these cases to court, including:
- On Feb. 3, 2022, a federal court in the Southern District of Florida permanently barred Wendell Devallon, Berald Dominique and their business, Tax Time Group Inc., from preparing federal income tax returns in the future. The court also ordered defendants to disgorge $353,000 to the United States. The disgorgement amount was based on defendants’ misconduct before the government sued as well as their violations of a preliminary injunction entered in January 2021 while the suit was ongoing.
- On Nov. 10, 2021, a federal court in the Southern District of Texas required Levett Camarena to disgorge $40,000 earned in violation of the October 2017 order that permanently barred her from preparing returns for others, advising in the preparation of those returns and representing customers before the IRS.
- On Sept. 29, 2021, a federal court in the Southern District of Florida required Milagros Espinal to pay $400,000 as a contempt sanction for violating the court’s February 2011 order that permanently barred Espinal from acting as a return preparer. In ordering the sanctions, the court found that Espinal continued to prepare returns despite being barred from doing so and, furthermore, that the returns she prepared contained fraudulent claims. The sanctions were calculated to compensate the U.S. Treasury for the harm Espinal caused, to strip Espinal of ill-gotten fees obtained in violation of the court’s earlier ban, and to reimburse the costs the United States incurred to investigate and prosecute her contempt.
Criminal convictions against fraudulent preparers obtained by the Tax Division over the last year include:
- On March 22, 2022, Fred Pickett Jr., of Belle Glade, Florida, was sentenced to 97 months in prison after being convicted at trial of 22 counts of preparing false tax returns for his clients. According to evidence presented at trial, Pickett prepared tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these nonexistent companies, as well as other false deductions and tax credits, on his clients’ returns to generate refunds they were not entitled to receive. Pickett had already been permanently barred in October 2017 from further work as a tax return preparer.
- On Feb. 8, 2022, Adrienne Williams, of Rocky Mount, North Carolina, was sentenced to 50 months in prison for conspiring to defraud the United States. According to court documents and statements made in court, between 2009 and 2017, Williams and at least two employees at Ultimate Tax Service, a tax return preparation service she owned and operated, prepared false tax returns for clients. The returns claimed fraudulent refunds by including, among other falsities, bogus federal income tax withholdings. In all, Williams and her co-conspirators sought to defraud the IRS of more than $3.5 million.
- On May 7, 2021, Karen Marie Jones, of Durham, North Carolina, was sentenced to 22 months in prison for conspiring to defraud the United States. According to court documents and statements made in court, from 2012 through 2017, Jones and two other return preparers who worked at the tax return preparation business she owned conspired to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is approximately $1.2 million.
The Tax Division reminds taxpayers that the IRS has information and tips on its site, see here and here, for choosing a tax preparer, has launched a free directory of credentialed federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns for tax year 2021.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Announces Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate (GRU)Read the Press Release
Operation Copied and Removed Malware Known as “Cyclops Blink” from the Botnet’s Command-And-Control Devices, Disrupting the GRU’s Control Over Thousands of Infected Devices Worldwide. Victims Must Take Additional Steps to Remediate the Vulnerability and Prevent Malicious Actors From Further Exploiting Unpatched Devices.
The Justice Department today announced a court-authorized operation, conducted in March 2022, to disrupt a two-tiered global botnet of thousands of infected network hardware devices under the control of a threat actor known to security researchers as Sandworm, which the U.S. government has previously attributed to the Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation (the GRU). The operation copied and removed malware from vulnerable internet-connected firewall devices that Sandworm used for command and control (C2) of the underlying botnet. Although the operation did not involve access to the Sandworm malware on the thousands of underlying victim devices worldwide, referred to as “bots,” the disabling of the C2 mechanism severed those bots from the Sandworm C2 devices’ control.
“This court-authorized removal of malware deployed by the Russian GRU demonstrates the department’s commitment to disrupt nation-state hacking using all of the legal tools at our disposal,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “By working closely with WatchGuard and other government agencies in this country and the United Kingdom to analyze the malware and to develop detection and remediation tools, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. The department remains committed to confronting and disrupting nation-state hacking, in whatever form it takes.”
“Through close collaboration with WatchGuard and our law enforcement partners, we identified, disrupted and exposed yet another example of the Russian GRU’s hacking of innocent victims in the United States and around the world,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Such activities are not only criminal but also threaten the national security of the United States and its allies. My office remains committed to working with our partners in the National Security Division, the FBI, foreign law enforcement agencies and the private sector to defend and maintain our nation’s cybersecurity.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our unique authorities, capabilities, and coordination with our partners,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “As the lead domestic law enforcement and intelligence agency, we will continue pursuing cyber actors that threaten the national security and public safety of the American people, our private sector partners and our international partners.”
“The FBI prides itself on working closely with our law enforcement and private sector partners to expose criminals who hide behind their computer and launch attacks that threaten Americans’ safety, security and confidence in our digitally connected world,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “The FBI has an unwavering commitment to combat and disrupt Russia’s efforts to gain a foothold inside U.S. and allied networks.”
On Feb. 23, the United Kingdom’s National Cyber Security Centre, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the FBI and the National Security Agency released an advisory identifying the Cyclops Blink malware, which targets network devices manufactured by WatchGuard Technologies Inc. (WatchGuard) and ASUSTek Computer Inc. (ASUS). These network devices are often located on the perimeter of a victim’s computer network, thereby providing Sandworm with the potential ability to conduct malicious activities against all computers within those networks. As explained in the advisory, the malware appeared to have emerged as early as June 2019, and was the apparent successor to another Sandworm botnet called VPNFilter, which the Department of Justice disrupted through a court-authorized operation in 2018.
The same day as the advisory, WatchGuard released detection and remediation tools for users of WatchGuard devices. The advisory and WatchGuard’s guidance both recommended that device owners deploy WatchGuard’s tools to remove any malware infection and patch their devices to the latest versions of available firmware. Later, ASUS released its own guidance to help compromised ASUS device owners mitigate the threat posed by Cyclops Blink malware. The public and private sector efforts were effective, resulting in the successful remediation of thousands of compromised devices. However, by mid-March, a majority of the originally compromised devices remained infected.
Following the initial court authorization on March 18, the department’s operation was successful in copying and removing the malware from all remaining identified C2 devices. It also closed the external management ports that Sandworm was using to access those C2 devices, as recommended in WatchGuard’s remediation guidance (a non-persistent change that the owner of an affected device can reverse through a device restart). These steps had the immediate effect of preventing Sandworm from accessing these C2 devices, thereby disrupting Sandworm’s control of the infected bot devices controlled by the remediated C2 devices. However, WatchGuard and ASUS devices that acted as bots may remain vulnerable to Sandworm if device owners do not take the WatchGuard and ASUS recommended detection and remediation steps. The department strongly encourages network defenders and device owners to review the Feb. 23 advisory and WatchGuard and ASUS releases.
The operation announced today leveraged direct communications with the Sandworm malware on the identified C2 devices and, other than collecting the underlying C2 devices’ serial numbers through an automated script and copying the C2 malware, it did not search for or collect other information from the relevant victim networks. Further, the operation did not involve any FBI communications with bot devices.
Since prior to the Feb. 23 advisory, the FBI has been attempting to provide notice to owners of infected WatchGuard devices in the United States and, through foreign law enforcement partners, abroad. For those domestic victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims. As required by the terms of the court authorization, the FBI has provided notice to the owners of the domestic C2 devices from which the FBI copied and removed the Cyclops Blink malware.
The efforts to disrupt the Cyclops Blink botnet were led by the FBI’s Pittsburgh, Atlanta and Oklahoma City Field Offices, the FBI Cyber Division, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, as well as the U.S. Attorney’s Office for the Eastern District of California.
If you believe you have a compromised device, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Jury convicts man for crack cocaine conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted 26-year-old local man for conspiring to distribute narcotics and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately two hours before convicting Jonathan Rodriguez, Corpus Christi, following a three-day trial.
At trial, the jury heard that Rodriguez was a co-conspirator in a multi-person crack cocaine trafficking scheme. From 2016 to 2019, Rodriguez managed a Corpus Christi residence from where drugs were distributed.
In May 2019, law enforcement responded to reports of gunfire between rival drug dealers at the property. A search of the residence revealed various amounts of crack cocaine and meth.
The jury also heard that Rodriguez had maintained a commercial storage unit in Corpus Christi. A search of the unit revealed $1.26 million in U.S. currency, more than 600 grams of cocaine, 52 rifles, shotguns and pistols.
At trial, the defense attempted to convince the jury Rodriguez was merely a narcotics user, not a distributor and the evidence was insufficient. However, they saw video evidence of Rodriguez distributing narcotics within the house and surveillance footage at the commercial storage unit.
The jury did not believe defense claims and found him Rodriguez guilty as charged.
U.S. District Judge Davis S. Morales presided over trial and set sentencing for June 29. At that time, Rodriguez faces up to life in federal prison and a possible $10 million maximum fine.
Rodriguez has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Dennis E. Robinson prosecuted the case.
Jury Returns Guilty Verdict in Yosemite National Park Sexual AssaultRead the Press Release
FRESNO, Calif. — After a three-day trial, a jury found Charles Porter, 31, a resident of Yosemite National Park and Pomona, guilty today of attempted aggravated sexual abuse, abusive sexual contact, assault with intent to commit aggravated sexual abuse, assault with intent to commit abusive sexual contact, and assault by striking or wounding, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on April 14, 2020, in Yosemite National Park, Porter, an Aramark employee working and residing in Yosemite Valley, entered the victim’s cabin in employee housing at night while the victim was asleep and began to sexually assault the victim. The victim fought back, and during the struggle, Porter attempted to penetrate the victim. The victim was able to reach the door of his one-room cabin to call for help. Nearby neighbors heard his call for help, and they responded and physically removed Porter.
This case is the product of an investigation by National Park Service Special Agents and Law Enforcement Rangers. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.
Porter is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 8, 2022. Porter faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Luis Roberto Alonzo, 24, pleaded guilty on Oct. 27, 2021, to being a felon in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on April 26, 2021, law enforcement responded to a motel in Groves where it was reported Alonzo refused to leave the property. After making contact with Alonzo, it was determined that Alonzo had an outstanding warrant. Officers also discovered a shotgun in the backseat of the vehicle he was seen exiting. Alonzo is a previously convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Alonzo was indicted by a federal grand jury on August 4, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Groves Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Russell James.
###
Inscription House Man Sentenced to 13 Years for Sexual Abuse of a MinorRead the Press Release
PHOENIX, Ariz. – Oliver Lee Hurley, 48, of Inscription House, AZ, was sentenced yesterday by U.S. District Judge Dominic W. Lanza to 156 months in prison. Hurley previously pleaded guilty to Sexual Abuse of a Minor.
In 2018, Hurley sexually abused the minor victim while she visited his residence on the Navajo Nation. Hurley is an enrolled member of the Navajo Nation. After Hurley finishes serving his term in federal prison, he will be placed on supervised release for the rest of his life.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Jason Crowley and Sharon Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08085-PHX-DWL
RELEASE NUMBER: 2022-036_Hurley# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Honduran Smuggler Sentenced to 30 Months in Federal PrisonRead the Press Release
Gulfport, Miss. – A Honduran national was sentenced to 30 months in federal prison for the federal crime of transporting an illegal alien within the United States, announced U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
According to court documents, Jose Andres Acensio-Lopez, 28, was sentenced by U.S. District Judge Taylor McNeel in Gulfport. He also may face Department of Homeland Security removal proceedings. If removed from the U.S. following his prison sentence, Acensio-Lopez could face additional penalties if he were to unlawfully return to the U.S., and further prosecution. Acensio-Lopez was convicted after pleading guilty on December 14, 2021, before Judge McNeel.
On September 12, 2021, following a U.S. Border Patrol investigation, a Border Patrol Agent conducted a vehicle stop and identified the driver as Jose Andres Acensio-Lopez. Acensio-Lopez did not have a driver’s license and was found, along with his ten passengers, to be illegally present in the United States. The vehicle was overloaded by three persons over its design, with seat belts for only eight persons. All vehicle occupants were transported to the Gulfport Border Patrol Station for processing.
The case was investigated by the U.S. Border Patrol and Homeland Security Investigations.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Honduran Man Sentenced for Fraud Involving a Permanent Resident Alien CardRead the Press Release
Gulfport, Miss. - A Honduran national was sentenced to 11 months in federal prison for fraud involving a visa, permit or other document, announced U.S. Attorney Darren J. LaMarca and Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Angel Orlando Vasquez-Flores, 34, was sentenced by U.S. District Judge Taylor McNeel in Gulfport. Vasquez-Flores may also face Department of Homeland Security removal proceedings. If removed from the U.S. following his prison sentence, Vasquez-Flores could face additional penalties if he were to unlawfully return to the U.S., and further prosecution. Vasquez-Flores was convicted after pleading guilty on December 16, 2021, before Judge McNeel.
On September 6, 2021, Vasquez-Flores fled from Jackson County Sheriff’s Deputies and dropped his wallet together with what appeared to be a U.S. Legal Permanent Resident Identification Card. While the card initially appeared legitimate, and bore the defendant’s photo and name, it was found to have been fraudulently produced and to bear a stolen Alien Identification Number which belonged to a different person living in the U.S. who was contacted by the U.S. Border Patrol. The wallet also contained a card which appeared to be a Social Security Card, bearing the Vasquez-Flores’ name and a number that was determined to not belong to him. Both a Legal Permanent Resident Card and a Social Security Card are documents authorized by federal statute to show that a person may lawfully stay and be employed in the U.S.
The case was investigated by the U.S. Border Patrol and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Grand Island Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Erika Vargas, 39, of Grand Island, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 10 years in federal prison for distribution of methamphetamine. There is no parole in the federal system. Following her prison term, Vargas will serve eight years on supervised release.
In May of 2019, an informant working with law enforcement contacted Vargas to purchase methamphetamine. Vargas then facilitated the purchase of methamphetamine from her supplier.
In September of 2019, the informant contacted Vargas again to purchase methamphetamine. Vargas agreed to sell the informant half an ounce of methamphetamine. On the way to their meeting location, Vargas contacted the informant and stated that she had already sold the half ounce of methamphetamine but had more coming. Once the informant arrived at the agreed location, Vargas introduced the informant to another supplier who then provided the informant with half an ounce of methamphetamine.
Vargas had previously been convicted of Conspiracy to Distribute Methamphetamine in 2004, which increased her penalties for this case.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Gettysburg Man Serving Life Sentence for Murdering A Witness Denied Compassionate ReleaseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Willie Tyler, age 70, formerly of Gettysburg, Pennsylvania, was denied compassionate release today by U.S. District Court Judge Christopher C. Conner. Tyler is currently serving a life sentence for witness tampering by murder.
According to United States Attorney John C. Gurganus, Tyler participated in the brutal murder of a law enforcement confidential informant from the Carlisle area in 1992. The victim was scheduled to testify in Cumberland County Court against David Tyler, the brother of the defendant, on the day of her murder. Willie Tyler planned to murder the victim, along with four other individuals, who were convicted for their role in the murder in previous federal and state court proceedings.
Tyler was first tried in state court in 1994, and acquitted of the murder. The case was then adopted for federal prosecution, and Tyler was convicted by a federal jury trial in 1996. The U.S. Court of Appeals for the Third Circuit overturned Tyler’s conviction, and he was convicted again following a re-trial in 2000. In 2013, the Third Circuit overturned the 2000 conviction in light of a change in the law and remanded the case to the district court for a new trial. Tyler was then tried and convicted for the third time in July 2017. The jury returned its verdict after only two hours of deliberation following a four-day trial.
In February 2018, the trial judge vacated the jury’s verdict, concluding that there was insufficient evidence to support the convictions. The government appealed, and in April 2020, the Third Circuit reversed the trial judge’s decision and remanded with instructions to reinstate the jury’s verdict and proceed to sentencing. Tyler then petitioned the United States Supreme Court to review the Third Circuit’s decision, but the Court denied his petition in May 2021. Tyler was sentenced to life in prison in June 2021.
Federal law permits federal prisoners to seek a sentence reduction and immediate release—commonly called compassionate release—if they can establish extraordinary and compelling reasons. In today’s ruling, Judge Conner found that Tyler failed to make that showing. Judge Conner also concluded that other factors did not support Tyler’s release, explaining that “Tyler is serving a congressionally mandated life sentence for his role in the brutal murder” of a witness.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police with cooperation from the Carlisle Police Department. The case was previously prosecuted by former Assistant United States Attorneys Gordon A. Zubrod and Chelsea Schinnour and Assistant United States Attorney Joseph J. Terz. Assistant United States Attorney Carlo D. Marchioli handled the most recent litigation.
# # #
Gallup man pleads guilty to abusive sexual contact with a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Armando Segovia, 32, of Gallup, New Mexico, pleaded guilty today in federal court to abusive sexual contact with a child in Indian Country. Segovia must surrender to the U.S. Marshals by noon, April 13. He will be held in detention pending final sentencing, which has not been scheduled.
A federal grand jury indicted Segovia on April 14, 2021. According to the plea agreement and other court records, between July 1, 2016, and Nov. 1, 2016, Segovia, who is non-Indian, allegedly engaged in sexual contact with the victim, identified in court records as Jane Doe. The victim, an enrolled member of the Zuni Pueblo, was less than 12 years old at the time of the abuse. Segovia committed the abuse in McKinley County, New Mexico, on the Zuni Pueblo.
Segovia faces up to life in prison and will be required to register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Gallup Police Department investigated this case. Special Assistant U.S. Attorney Chelsea Van Deventer is prosecuting the case.
# # #
Four Florida Men and One Texas Man Convicted for Conspiracy and Interstate Transportation of over $2 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Five men were convicted today for their roles in a conspiracy to transport over $2 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.
Carlos Duvergel, 57, of Texas, and Juan Crespo, 45, Felix Castillo, 49, Asnay Fernandez, 31, and Ismael Manzano-Suarez, 24, all of Hialeah, Florida, were charged by superseding indictment with conspiring to transport stolen property in interstate commerce and transportations of stolen property in interstate commerce. They were convicted following an eight-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products is estimated to be over $2 million. The defendants were arrested in May 2018 attempting to break into another perfume warehouse in East Brunswick, New Jersey.
The count of conspiring to transport stolen property in interstate commerce carries a maximum penalty five years in prison; the count of transportations of stolen property in interstate commerce carries a maximum penalty of 10 years in prison. Both charges also carry a $250,000 fine, or twice the gross gain or loss from the offenses, whichever is greatest. Sentencing for all five defendants is scheduled for Sept. 27, 2022.
U.S. Attorney Sellinger credited special agents and officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Edison Police Department, under the direction of Chief Tom Bryan; officers of the East Brunswick Police Department, under the direction of Chief Frank LoSacco; and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.
Former St. Tammany Parish Sheriff Jack Strain Sentenced to 120 Months Imprisonment After Previously Pleading Guilty to Soliciting and Receiving Bribes Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that former long-time St. Tammany Parish Sheriff RODNEY J. STRAIN (a/k/a Jack Strain), age 56, from Abita Springs, Louisiana, was sentenced today to 120 months imprisonment by United States District Judge Jane Triche Milazzo after previously pleading guilty to Count 15 of the indictment returned in August 2019, charging him with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 666(a)(1)(B) for his role in the privatization and operation of a work release program that operated in Slidell, Louisiana between 2013 and 2016. As part of the sentence, Judge Milazzo ordered a $10,000 fine, 3 years of supervised release, and a $100 special assessment fee. A forfeiture hearing is scheduled for July 13, 2022. Judge Milazzo also ordered STRAIN to serve his federal sentence concurrently with the sentence he is currently serving based on his conviction in the 22nd Judicial District.
According to court documents, STRAIN, who was the Sheriff of St. Tammany Parish from about 1996 to 2016, had the authority both to decide unilaterally the Parish-run work release programs (i.e., halfway houses) that would be by the Sheriff’s Office or private entities and to decide the private entities to which he would grant the right to operate such privately-run halfway houses. In about early 2013, STRAIN decided to privatize a work release program in Slidell, Louisiana. He discussed with his two close associates and Captains with the St. Tammany Parish Sheriff’s Office, David Hanson and Clifford “Skip” Keen, the plan to have Hanson and Keen become joint owners of the Slidell work release program. Individuals then employed with the St. Tammany Parish Sheriff’s Office, advised STRAIN that state law prohibited Hanson and Keen from owning and operating the Slidell work release program while remaining employed at STPSO. Additionally, because law prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” Hanson and Keen would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. Resignation meant they would have lost their salaries and pension increases from continued employment.
STRAIN, Hanson, and Keen discussed ways to allow Hanson and Keen to maintain their employment and still profit from the Slidell work release program. To conceal their scheme, STRAIN, Hanson, and Keen agreed to make Keen’s adult son (J.K.) and Hanson’s adult daughter (B.H.) owners of the Slidell work release program, with the understanding that J.K. and B.H. would funnel much of the profits to Hanson and Keen. Hanson and Keen agreed to give regular payoffs to STRAIN and his selected family members from the funds they received. This understanding was partly based on STRAIN having previously required Keen to kickback to STRAIN half of the money Keen earned from an earlier place of employment.
STRAIN, Hanson, and Keen agreed that they needed to find another individual to actually operate the Slidell work release program because J.K. and B.H. lacked the education, training, experience, and funding to do so. They decided on Person 2, to whom Hanson presented a series of non-negotiable pre-conditions, including the following: J.K. and B.H. would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 2 would only own ten (10) percent, receive ten (10) percent of the profits, and receive a salary. Person 2 would be responsible operating the Slidell work release program and for providing the capital necessary to initiate the program. On or about May 1, 2013, J.K., B.H., and Person 2 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which J.K. and B.H. each had a forty-five percent ownership interest and Person 2 had only a ten percent ownership interest.
On June 4, 2013, STRAIN entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC, a corporation designed to operate the Slidell work release program. Thereafter, Person 2 was directed to make additional unnecessary financial expenditures. For example, although J.K. and B.H. were merely straw owners who neither operated, oversaw, or administered the Slidell work release program, Person 2 was required to pay J.K. and B.H. salaries in addition to their ownership disbursements. Person 2 was also directed to pay Person 3, who was an employee at STPSO and STRAIN’S relative, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, from July 1, 2013, through July 1, 2016, J.K. and B.H. received not less than $1,384,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. J.K. received at least 148 payments totaling at over $676,000, while B.H. received at least 133 payments totaling over $708,000. J.K. and B.H. converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash, much of which they transferred to their fathers, Keen and Hanson.
Additionally, STRAIN, Hanson, and Keen understood that STRAIN and his family members would receive payoffs from Hanson and Keen in exchange for STRAIN’s conferring the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. The bribes took multiple forms. The ways Hanson and Keen funneled bribe money to STRAIN included giving STRAIN regular cash payments in amounts greater than $1,000 from the money they received from St. Tammany Workforce Solutions LLC, through B.H. and J.K. Second, as part of the scheme, Hanson arranged for STRAIN’s relative, Person 1, to receive a check in the amount of $4,000. Third, STRAIN received campaign money from Hanson and Keen with money from St. Tammany Workforce Solutions, LLC, including a $2,500 payment in November 2015. Further, STRAIN’s relative received a no-show job from the Slidell work release program that effectively doubled his annual salary.
STRAIN, Hanson, Keen, and others attempted to conceal the scheme by, among other things, (a) hiding Hanson’s and Keen’s involvement in and benefit from the Slidell work release program, (b) excluding from the cooperative endeavor agreement the fact that STRAIN would receive cash bribes and other financial compensation in exchange for signing the cooperative endeavor agreement, and (c) providing most of the money to STRAIN in the form of cash.
“Mr. Strain broke the law and must now face the consequences for his actions, “stated U.S. Attorney Duane A. Evans. “His crime was a breach of the public trust owed to the citizens of St. Tammany Parish. Similarly, because the trust between our law enforcement agencies and the citizens they protect is precious, it is imperative that collectively, we assure the public of our unwavering commitment to identify and prosecute anyone who engages in public corruption.”
“The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public and holding them accountable for their actions, even if they come from within the ranks of law enforcement. Today's sentencing sends a clear message that individuals like Jack Strain will be held responsible and no one is above the law," said Douglas A. Williams, Jr. Special Agent in Charge FBI New Orleans "We thank our partners at the U.S. Attorney’s Office Eastern District of Louisiana, Internal Revenue Service – Criminal Investigation Division, and the Metropolitan Crime Commission, for their collaborative efforts in holding our public servants accountable.”
“The sentence handed down today highlights the seriousness of former sheriff Jack Strain’s conduct,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “IRS-CI will remain vigilant in identifying and investigating public officials who seek to defraud the American taxpayers by failing to faithfully discharge the duties of their offices.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Elizabeth Privitera, Chief of the Violent Crime Unit, J. Ryan McLaren, and Alexandra Giavotella, Asset Forfeiture Coordinator, were in charge of the prosecution.
* * *
Former South Florida Police Officer Guilty of Attempting to Sexually Exploit ChildRead the Press Release
Miami, Florida – A former police officer with the Sewall’s Point, Florida Police Department has pled guilty in Ft. Pierce federal court to attempting to sexually entice a 15-year-old boy and produce child pornography.
According to court records, Juan Antonio Garcia, 30, of Stuart, met the 15-year-old victim at a local park. Garcia befriended the boy and communicated with him in person and by text message. During one meeting, Garcia gave the boy condoms. Through text messages, Garcia taught the boy how to put on a condom, then directed the boy to masturbate, ejaculate into the condom, and send Garcia a photograph of the used item. Garcia also asked the boy to send him a video of the boy masturbating. In another text message, Garcia asked the minor to meet him at a local park for oral sex. When Garcia arrived at the park, law enforcement officers arrested him.
United States District Court Judge Aileen M. Cannon will sentence Garcia on June 13, at 11:00 a.m., in Fort Pierce. Garcia faces between 15 years to life in prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Fort Pierce investigated the case, with assistance from Martin County Sheriff’s Office. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14044.
###
Former President of Madison District Public Schools Board of Education Charged with Tax Evasion for Failing to Report over $500,000 in IncomeRead the Press Release
DETROIT - The former President of the Madison District Public Schools Board of Education has been charged in an indictment with tax evasion and failure to file tax returns in connection with the President’s failure to report over $500,000 in income from a school district contractor, U.S. Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Sarah Kull, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, Josh Hauxhurst, Acting Special Agent in Charge of the Federal Bureau of Investigation, Michigan Division, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
Albert Morrison is charged with four counts of federal income tax evasion and four counts of failing to file federal tax returns. According to the indictment, Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018. While he was President, Owner A was one of the owners of a building maintenance and reconstruction company (Company A) that was routinely awarded maintenance and construction projects in the Madison District Public Schools.
Owner A, who was a long-time friend of Morrison, wrote checks from Company A to Morrison’s solely owned company, Comfort Consulting, from 2014 through 2018. Morrison deposited the checks from his friend into his solely owned bank account. From May 2014 through December 2018, Owner A, through Company A, made at least $561,667 in payments to Morrison.
Morrison did not declare to the IRS Owner A’s payments to Comfort Consulting as income in 2014, 2015, 2016, 2017, or 2018. In a further effort to conceal the payments from Owner A, Morrison did not file a federal income tax return in 2015, 2016, 2017, and 2018. Morrison used the payments from Owner A and Company A for personal expenditures. By not declaring to the IRS the payments from Owner A as income, Morrison avoided paying approximately $118,200 in taxes.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Morrison faces a statutory maximum penalty of 5 years in prison for each count of tax evasion and 1 year in prison for each count of failure to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of this case was conducted by the Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, and the Department of Education. It is prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen and Karen Reynolds.
Former Pain Management Clinic Owner Sentenced to over 16 Years for Unlawful Opioid DistributionRead the Press Release
A Florida man was sentenced today in the Southern District of Florida to 200 months in prison for illegally distributing opioids at his pain management clinic in Miami, Florida.
According to court documents, Habib Geagea Palacios, 40, of Miami, owned General Care Center Inc., a cash-only pain management clinic in Miami. At General Care, Palacios paid doctors to prescribe opioids to nearly all patients who visited the clinic, resulting in the illegal distribution of more than three million oxycodone pills and generating $9 million in cash. Seven doctors who worked at General Care have been charged in connection with their unlawful prescribing practices at the clinic, and six have pleaded guilty to date.
Palacios pleaded guilty on Nov. 9, 2021, to one count of conspiracy to distribute a controlled substance and one count of distributing a controlled substance. In addition to the term of imprisonment, Palacios was sentenced to serve three years of supervised release.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Deanne Reuter of the DEA’s Miami Field Office; and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.
The HHS-OIG, FBI, DEA, and USSS are investigating the case.
Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kevin J. Larsen for the Southern District of Florida are prosecuting the case.
Former Pain Management Clinic Owner Sentenced to over 16 Years for Unlawful Opioid DistributionRead the Press Release
Miami, Florida - A Florida man was sentenced today in the Southern District of Florida to 200 months in prison for illegally distributing opioids at his pain management clinic in Miami.
Habib Geagea Palacios, 40, of Miami, owned General Care Center Inc., a cash-only pain management clinic. At General Care, Palacios paid doctors to prescribe opioids to nearly all patients who visited the clinic, resulting in the illegal distribution of more than three million oxycodone pills and generating $9 million in cash. Seven doctors who worked at General Care have been charged in connection with their unlawful prescribing practices at the clinic, and six have pleaded guilty to date.
Palacios pleaded guilty on Nov. 9, 2021, to one count of conspiracy to distribute a controlled substance and one count of distributing a controlled substance. In addition to the term of imprisonment, Palacios was sentenced to serve three years of supervised release.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Deanne L. Reuter of the DEA’s Miami Field Office; and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.
HHS-OIG, FBI, DEA, and USSS investigated the case.
Assistant U.S. Attorney Kevin J. Larsen for the Southern District of Florida and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
This prosecution was part of Operation General Care-Less (FC/FLS/2227), which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
###
Former Mckinsey Partner Sentenced to 24 Months in Prison for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that PUNEET DIKSHIT, a former partner in McKinsey & Company, was sentenced today to 24 months in prison by U.S. District Judge Colleen McMahon. DIKSHIT pled guilty on December 15, 2021, to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that The Goldman Sachs Group, Inc. – which DIKSHIT and McKinsey were advising – would be acquiring GreenSky, Inc.
U.S. Attorney Damian Williams said: “With today’s sentence, Puneet Dikshit must face the consequences of his egregious crime. We will continue to vigorously protect the integrity of our capital markets and hold accountable those who cheat by trading on inside information. This conviction shows Wall Street and Main Street that corporate advisors who steal information entrusted to them and use it for their personal gain will be caught and prosecuted.”
According to the allegations in the Complaint and the Information, court filings, and statements made in public court proceedings:
GreenSky was a publicly traded financial technology company that provided technology to banks and merchants to make loans to consumers for home improvement, solar, healthcare, and other purposes. GreenSky’s common stock traded under the symbol “GSKY” on the NASDAQ.
Between November 2019 and July 2020, and again between April 2021 and September 2021, Goldman Sachs, the investment bank, engaged McKinsey, the management consulting firm, to provide services related to the potential acquisition of GreenSky by Goldman Sachs and the post-acquisition integration of GreenSky. DIKSHIT was one of the McKinsey partners leading these engagements. In that role, he had access to material nonpublic information, which he misappropriated and, in violation of the duties that he owed to Goldman Sachs and McKinsey, used to trade GreenSky call options.
DIKSHIT engaged in this trading between July 26 and September 15, 2021 – at the same time he was leading the McKinsey team that was advising Goldman Sachs about its potential acquisition of GreenSky. At various times between July 26 and September 13, 2021, DIKSHIT purchased and sold relatively small numbers of GreenSky call options, which had expiration dates weeks or months from the time of purchase. However, in the two days before the September 15, 2021, public announcement that Goldman Sachs would be acquiring GreenSky, DIKSHIT sold all of these longer-dated GreenSky call options and purchased approximately 2,500 out-of-the-money GreenSky call options that were due to expire just a few days later, on September 17, 2021. After the deal to purchase GreenSky was announced on September 15, 2021, DIKSHIT sold these options and realized profits of approximately $450,000.
* * *
In addition to his prison sentence, DIKSHIT, 41, of New York, New York, was ordered to pay forfeiture in the amount of $455,017.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Joshua A. Naftalis and Matthew Podolsky are in charge of the prosecution.
Former Leader of Boston Latin Kings Chapter Sentenced to Seven Years in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – A former leader of the Boston Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.
Angel Calderon, a/k/a “King Bam,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to seven years in prison and three years of supervised release. On Aug. 5, 2021, Calderon pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
During the investigation, Calderon was identified as the Inca, or leader, of the Morton Street Bricks (MSB) Chapter of the Latin Kings. Named for the Morton Street housing project in Boston, the MSB Chapter included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. Additionally, Calderon conspired with members of the Latin Kings regarding the commission of criminal acts and discussed efforts to murder a rival gang member using poisoned narcotics, also known as a hotshot, in 2019. In June 2019, Calderon assaulted a woman at gunpoint and threatened to kill her and her family based upon the belief that she was providing information to law enforcement.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Calderon is the 49th defendant to be sentenced in the case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida’s BayCare Health System and Hospital Affiliates Agree to Pay $20 Million to Settle False Claims Act Allegations Relating to Impermissible Medicaid DonationsRead the Press Release
WASHINGTON – BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.
“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state, or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.”
“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida’s BayCare Health System and Hospital Affiliates Agree to Pay $20 Million to Settle False Claims Act Allegations Relating to Impermissible Medicaid DonationsRead the Press Release
BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.
“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.”
“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Woman Pleads Guilty to Racketeering Conspiracy Involving the Forced Labor of Mexican Agricultural H-2A WorkersRead the Press Release
Tampa, FL — A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.
A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims.
This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.
Florida Woman Pleads Guilty to Racketeering Conspiracy Involving the Forced Labor of Mexican Agricultural H-2A WorkersRead the Press Release
A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.
A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims.
This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.
Fifth Defendant Pleads Guilty to Scheme to Fraudulently Obtain over $30 Million in Covid-Relief LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ALVIN MAXWELL pled guilty today to one count of conspiracy to commit wire fraud in connection with a scheme to fraudulently obtain over $30 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. MAXWELL is the fifth defendant to plead guilty in the case. Four other defendants—APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” BRANDON JACKSON, and AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi”—pled guilty earlier this year. TOUSSAINT, JACKSON, and MUNDENDI each pled guilty to one count of conspiracy to commit wire fraud on March 8, March 30, and April 4, 2022, respectively. BELLA pled guilty to one count of money laundering conspiracy on March 21, 2022. All of the defendants pled guilty before U.S. District Judge Paul A. Engelmayer.
According to allegations in the Complaints, the Indictments, and the Superseding Information, filed in the case:
APOCALYPSE BELLA, a/k/a “Dias Yumba,” MACKENZY TOUSSAINT, a/k/a “Mack,” AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” and ALVIN MAXWELL, were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processes loan applications under the SBA’s Paycheck Protection Program (“PPP”), in order to fraudulently obtain at least approximately $30 million in government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the COVID-19 pandemic.
This scheme resulted in the approval of fraudulently procured loans for two companies (“Company-1” and “Company-2”), both located in the Southern District of New York, totaling approximately $4 million, and the distribution of the proceeds of these fraudulently obtained funds to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA.
The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds paid to the fraud scheme participants. Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies for the Economic Injury Disaster Loan (“EIDL”) program just months earlier. For instance, the PPP loan application for Company-1, dated on or about June 30, 2020, represented that Company-1 had over 100 employees. However, an earlier EIDL loan application for Company-1, dated on or about March 30, 2020, represented that Company-1 had only four employees.
BELLA, TOUSSAINT, and MUNDENDI devised and executed this fraudulent scheme by conspiring with individuals who owned, operated or otherwise were affiliated with businesses, such as Company-1 and Company-2.
In addition, TOUSSAINT and JACKSON engaged in a scheme to submit fraudulent Economic Injury Disaster Loan (“EIDL”) applications, often through the use of synthetic identities (i.e., a fake name used in combination with true personal identifying information of another person). JACKSON and TOUSSAINT frequently used Social Security Numbers belonging to minors as part of the synthetic identities created for use in the fraud scheme. At least approximately $1.7 million in EIDL loan funds were disbursed as a result of this fraud scheme.
* * *
TOUSSAINT, MUNDENDI, MAXWELL, and JACKSON, all residents of Texas, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years. BELLA, an Oregon resident, pled guilty to one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
BELLA is scheduled to be sentenced at 10:30 a.m. on July 7, 2022. TOUSSAINT is scheduled to be sentenced at 10:30 a.m. on June 16, 2022. JACKSON is scheduled to be sentenced at 11:00 a.m. on August 17, 2022. MAXWELL is scheduled to be sentenced at 11:00 a.m. on September 8, 2022. MUNDENDI is scheduled to be sentenced at 11:00 a.m. on September 9, 2022. Each of the defendants will be sentenced by U.S. District Judge Paul A. Engelmayer.
Mr. Williams praised the outstanding work of the FBI, SBA-OIG and IRS-CI.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.
Fentanyl Supplier Convicted at Trial for Causing an Overdose DeathRead the Press Release
MOBILE, AL – A federal jury convicted a Mobile man for conspiracy and distribution of fentanyl, methamphetamine, and heroin.
According to court documents and evidence presented at trial, William Grant Owens, a/k/a “Whip,” a/k/a “Unc,” 55, distributed and conspired with others to distribute fentanyl, methamphetamine, and heroin beginning in January of 2016. The jury further found that Owens’s Owens’ participation in the conspiracy to distribute fentanyl and possession of fentanyl with the intent to distribute caused the overdose death of Kelsey Johnston. Owens was found guilty of conspiracy to distribute methamphetamine and heroin, and seven counts of possession of a controlled substance with the intent to distribute.
The evidence presented at trial showed that the Crossley Hills drug trafficking organization, of which Owens was a member, operated in Mobile County, and elsewhere, distributing various controlled substances, including heroin, fentanyl, methamphetamine, Xanax, oxycodone, and oxymorphone to customers in south Alabama and elsewhere. Relying on regional and local sources of supply to acquire controlled substances for its distribution, the Crossley Hills DTO distributed a substantial amount of the heroin in Mobile County, Alabama. These heroin sales led to numerous overdoses resulting in hospitalizations and deaths, including that of Kelsey Johnston on October 11, 2018.
Thirty-eight co-conspirators have pleaded guilty. Owens was convicted after a five-day trial. He is scheduled to be sentenced on June 30 and faces a minimum sentence of twenty years and up to life in prison. United States District Judge Terry F. Moorer will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Sean P. Costello, the United States Attorney for the Southern District of Alabama, Mobile Police Chief Paul O. Prine, Mobile County Sheriff Sam Cochran, DEA Special Agent in Charge Brad L. Byerley, HSI Special Agent in Charge Katrina W. Berger, ATF Special Agent in Charge Mickey French, and FBI Special Agent in Charge Paul W. Brown made the announcement.
The investigation and prosecution of this case was 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.This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the Federal Bureau of Investigation, the Mobile Police Department and the Mobile County Sheriff’s Office. The Alabama Law Enforcement Agency, the Baldwin County Drug Task Force, and the Saraland Police Department also provided key investigative support to the investigation. The case was prosecuted by Assistant United States Attorney Luis F. Peral, Lead OCDETF Attorney, and Assistant United States Attorney George F. May.
Feds Charge Eight Suspected Carjackers Tied to Multiple Offenses in Violent Crimes Across Philadelphia RegionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, together with federal, state and local law enforcement officials, announced that six defendants were arrested and charged with federal carjacking and other violent crimes in connection with incidents that occurred in Philadelphia and its surrounding counties:
- Christopher Robinson, 20, of Philadelphia, PA, was charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with three armed carjackings on December 9, 2021, January 5, 2022, and January 11, 2022, all in West Philadelphia.
The carjacking victims in these three separate incidents were caught off guard while on the phone sitting in their parked vehicles or filling their gas tank.
- Tarik Chambers, 19, and Nikeem LeachHilton, 21, both of Philadelphia, PA, were charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection a carjacking on December 19, 2021, in Delaware County.
The defendants allegedly used a privately-made “ghost” gun to carjack the victim in the rear parking lot of a retail store along Baltimore Pike in Springfield. The defendants fled from the police, leading officers on a high-speed car chase through Delaware County before crashing into another motorist’s car, who suffered severe, life-threatening injuries including broken bones and significant head trauma.
- Dayon Hackett, 19, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with an armed carjacking that occurred in the Bridesburg section of Northeast Philadelphia and a second armed carjacking and shooting in South Philadelphia, both of which occurred on December 22, 2021.
The second carjacking incident occurred while the victim was sitting in his parked car waiting for a parking space to open. The victim and two offenders exchanged gun fire and the victim sustained serious injuries including severed arteries, shattered bones, and bullets lodged near internal organs.
- Sean Allen, 23, of Camden, NJ, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two armed carjackings on January 4, 2022, and January 6, 2022, in Northeast Philadelphia.
The carjacking incidents occurred after victims posted their vehicles for sale on Facebook Marketplace and were contacted by an account claiming to have an interest in purchasing the vehicles.
- Cameron Styles, 20, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two carjackings on February 10 and February 11, 2022, in Northeast Philadelphia.
The carjacking incidents occurred while the first victim was waiting for a train, and while the second victim was parked at a gas station.
Additionally, and as previously announced, in February 2022, Alex Fernandez-Pena and Juan Jose Rodriguez were charged by Indictment with carjacking and brandishing a firearm during a crime of violence stemming from their alleged involvement in a carjacking incident of a rideshare vehicle earlier this year in the Parkside section of Philadelphia, during which the victim shot both defendants while they tried to flee. These arrests bring the total number of carjacking suspects taken into federal custody in the last several weeks in the Eastern District of Pennsylvania up to eight.
The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.
“It has been nearly a year since we launched our ‘All Hands On Deck’ initiative, and in that year our Office and our federal partners have doggedly pursued every opportunity to support the Philadelphia Police Department, which now includes the recently-created joint carjacking task force,” said U.S. Attorney Williams. “I have said repeatedly that if you commit a violent offense like a carjacking at gunpoint, federal authorities are coming for you. In just weeks we have arrested and charged eight people, and there’s much more to come.”
“The rash of carjackings we’ve seen in and around Philadelphia is unacceptable,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That’s why this task force is united in our efforts to find those responsible and get them off the street. The potential penalties for federal carjacking charges are severe, so if people want to keep committing these crimes, they should know that the carjacking task force will make it a priority to put them in cuffs and behind bars for a good long time. We simply won’t stand for criminals terrorizing innocent people like this.”
“These indictments exemplify the strength of our newly established carjacking task force,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.“Over the past year we have witnessed a spike in carjackings throughout the Commonwealth, and the announcement of these indictments should send a clear message to those who are thinking about committing violent acts. The public should know we are working closely together with our local, state, and federal partners to seek justice for those responsible for these types of crimes.”
“There are far too many in this city who think that they can commit violent crimes with impunity, and that law enforcement will sit idly by while our communities are traumatized,” said Philadelphia Police Commissioner Danielle Outlaw. “These latest arrests prove yet again that criminal behavior will not be tolerated, and sends the message that if you’re doing wrong, if you’re engaging in illegal activities, the PPD along with our local, state, and federal law enforcement agencies will find you, arrest you, and you will be charged to the fullest extent of the law.”
“Carjackings are dangerous, violent acts that strike fear into our communities and threaten public safety,” said Pennsylvania Attorney General Josh Shapiro. “We will continue to share available intel to collaborate with our law enforcement partners so we can use every resource available to hold individuals who commit these crimes accountable. I’m thankful for the hard work of the agents in our office, as well as our local, state, and federal partners in this important task force.”
If convicted, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years in prison.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the Philadelphia Police Department; with assistance from the Pennsylvania Office of Attorney General; and are being prosecuted by Assistant United States Attorneys Kelly Fallenstein, Justin Oshana, Robert Eckert, Jeanette Kang, Michael Miller and Special Assistant United States Attorneys Sandy Urban and Tracie Gaydos.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
El Paso Man Charged with KidnappingRead the Press Release
EL PASO – A federal grand jury in El Paso returned an indictment today charging an El Paso man with kidnapping.
According to court documents, Matthew Joseph Contreras, 25, is accused of taking the victim from El Paso to Alamogordo, New Mexico while on his way to his new job at a detention facility. The victim told FBI agents that while they were in El Paso, Contreras held a knife to her throat in the early morning hours of March 14 after she returned from work. She also said Contreras punched and kicked her several times and then poured bleach on her. Contreras also allegedly hit the victim with a gun and then held it to her head. Law enforcement officers retrieved a 9mm handgun from the vehicle that Contreras used to drive the victim to New Mexico.
Contreras also faces a federal charge for possessing a firearm as a prohibited person due to a prior conviction.
Contreras is charged with one count of kidnapping and one count of possession of a firearm by a prohibited person. The defendant is scheduled for an arraignment next week. If convicted, he faces up to life in prison on the kidnapping charge and up to 10 years in prison on the firearm charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Contreras has remained in federal custody since his arrest on March 16, 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey R. Downey, El Paso Field Office, made the announcement.
The FBI, with assistance from the El Paso Police Department, is investigating the case.
Assistant U.S. Attorney Patricia Aguayo is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Eight Individuals Facing Federal Indictment for a $3 Million Scheme to Defraud Walter Reed National Military Medical Center and the Defense Health AgencyRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging eight individuals, including the President, Vice-President and Chief Finance and Strategy Officer at a company that provided medical billing and coding services on government contracts and an employee at Walter Reed National Military Medical Center (WRNMMC), with conspiracy to commit health care fraud and wire fraud and related charges, in connection with a scheme to defraud WRNMMC and the Defense Health Agency (DHA). The indictment was returned on March 17, 2022, and unsealed today upon the arrests of three defendants. Charged in the indictment are:
Akbar Masood, age 59, of Great Falls, Virginia;
Michelle O. Peebles, age 48, of Riverdale, Mayland;
Harriett Jackson, a/k/a “Harriett Soumah,” age 49, of Glenarden, Maryland;
Judith Russ, age 58, of Washington, D.C.;
Rhonda Paul, age 46, of Washington, D.C.;
Wesley Williams, age 47, of Takoma Park, Maryland;
Bagnon Jaques Titi, age 44, of Riverdale, Maryland; and
Alfred Antonio Duncan, age 44, of White Plains, Maryland.Masood, Peebles, and Jackson are expected have initial appearances this afternoon in U.S. District Court in Greenbelt. The remaining defendants are expected to have initial appearances later today or on April 8, 2022.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Scott Moreland of the Major Procurement Fraud Field Office, U.S. Army Criminal Investigation Division (CID); Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); Special Agent in Charge Alison F. Zavada of the Naval Criminal Investigative Service (NCIS), Washington Field Office; and Acting Inspector General Rene Febles of the Washington Metropolitan Area Transit Authority Office of Inspector General (WMATA OIG).
According to the 12-count indictment, Masood was a part owner and “Chief Strategy Officer” of Company A, a Virginia-based company that served as a prime contractor for medical support services to WRNMMC and DHA. Peebles was a site manager at Company A. Jackson was President, Peebles was Vice-President, and Masood was “Chief Finance and Strategy Officer” of Company B, headquartered in Tysons, Virginia, which primarily provided medical billing and coding services on government contracts.
The indictment alleges that beginning in at least December 2016, Masood, Peebles, and Jackson established HMA Solutions as a Delaware Limited Liability Corporation, headquartered in Riverdale, Maryland, to take advantage of WRNMMC’s increased need for contract medical coders. Using his authority within Company A, Masood allegedly subcontracted work to HMA on Company A’s contract with WRNMMC to supply medical coding support without disclosing his participation in HMA to Company A’s co-owners. Masood, Peebles, and Jackson allegedly used the stolen identities of actual persons, including credentialed medical coders, to demonstrate that HMA had the ability to perform medical coding evaluation, feedback, and training services as a subcontractor to Company A. The indictment alleges that the defendants used falsified signature of one victim, who was a credentialed medical coder, to sign consulting agreements with Company A and representing that other identity theft victims would be performing the work. Further, the indictment alleges that Masood, Peebles, and Jackson generated false billable hours using the names of identity theft victims which they charged to Company A, which then billed those hours to WRNMMC. Russ, an official with WRNMMC, then allegedly verified the work performed by the non-existent coders. According to the indictment, beginning no later than January 2017, Russ was paid regularly by Peebles or Company B and had not disclosed this outside income or employment to officials at WRNMMC.
According to the indictment, Masood, Peebles, and Jackson steered a subsequent WRNMMC contract with Company A for in-person coding support from highly skilled coders (CDI Specialists), who are paid at a higher rate, to HMA as a sub-contractor. Masood, Peebles, and Jackson then allegedly billed Company A—and thereby WRNMMC—for CDI Specialist hours, none of which were ever provided.
As detailed in the indictment, Peebles and Jackson then recruited Paul, Williams, Titi, and Duncan to pose as medical coders and sign consulting agreements with Company A, even though none of them had any experience or credentials as medical coders. The indictment alleges that Paul, Williams, Titi, and Duncan repeatedly submitted falsified medical coding invoices, claiming the processing of thousands of encounters each month, and causing Company A to bill WRNMMC over $1 million for their false claims alone.
According to the indictment, between 2017 and 2019, the defendants obtained approximately $3.3 million from the scheme to defraud WRNMMC and DHA.
If convicted, the defendants each face a maximum sentence of 20 years in federal prison for conspiracy to commit health care fraud and wire fraud. All of the defendants except Russ also face a maximum of 20 years in federal prison for each of the eight counts of wire fraud. Masood, Peebles and Jackson each face a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for each of the two counts of aggravated identity theft, and Russ faces a maximum sentence of five years in federal prison for participating in the scheme, which was a conflict of interest to her federal employment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the Army CID, DCIS, NCIS, and WMATA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Adam K. Ake, and Rajeev R. Raghavan, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
# # #
District Men Sentenced to Prison Terms for Armed Carjacking in Northeast WashingtonRead the Press Release
WASHINGTON – Keith Baham, 22, and David McKinney, 21, both of Washington, D.C., have been sentenced to prison terms for their roles in a carjacking and armed robbery that took place in February 2019 in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Baham was sentenced yesterday to a 15-year prison term and McKinney was sentenced yesterday to a prison term of 7 ½ years. Both defendants were found guilty by a jury in February 2020, of armed carjacking, armed robbery, first-degree theft, and unauthorized use of vehicle, following a trial in the Superior Court of the District of Columbia. They were sentenced by the Honorable J. Michael Ryan. Following their prison terms, both men will be placed on five years of supervised release.
According to the government’s evidence, the victim, then 18, knew McKinney and was driving his car with him on Feb. 25, 2019. They picked up Baham, and Baham and McKinney had the victim drive to the 3100 block of Apple Road NE. Once there, at approximately 7:20 p.m., Baham brandished a firearm, threatened to shoot the victim, and told the victim to drop everything and to hand over his belongings. While the victim was held at gunpoint, the men took the victim’s wallet, cellphone, and other personal items before fleeing the scene in the victim’s car.
Baham was arrested on July 30, 2019. McKinney was arrested on July 18, 2019. Both have been in custody since their arrests.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Victim/Witness Services Coordinator Katina Adams-Washington, Victim/Witness Services Coordinator La June Thames, Paralegal Specialists Jessica Pierce, Sabrina Turner, and Debra McPherson, Victim/Witness Advocate Jennifer Clark, Supervisory Litigation Technology Specialist Leif Hickling, and former Investigative Analyst William Hamann of the Criminal Investigations Unit.
Finally, they commended the work of Assistant U.S. Attorneys Rachel Forman and Kevin Birney, who prosecuted the case.
DOJ-DHS-INL in Mexico Host Foreign Law Enforcement Partners at Regional Human Smuggling Roundtable EventRead the Press Release
On April 5 and 6, in Mexico City, Mexico, the U.S. Embassy in Mexico hosted a collaborative Regional Smuggling Forum and Roundtable event to promote the Bicentennial Agreement. The U.S. Department of Justice (DOJ)’s Office of Prosecutorial Development, Assistance and Training (OPDAT) led the State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL)-funded workshop to bring together human smuggling investigators and prosecutors from El Salvador, Honduras, and the United States; investigators from Guatemala; and prosecutors from Mexico. During this event, in which Deputy Chief of Mission Stephanie Syptak-Ramnath delivered opening remarks, participants shared best practices, discussed recent trends and obstacles, and coordinated strategies during roundtable discussions. This forum was designed to increase successful collaborations between regional partners in combating transnational human smuggling organizations.
The region is currently experiencing historic irregular migration flows, which are in part the result of the exploitation of migrants by transnational criminal organizations. The criminal organizations and the smugglers they employ utilize increasingly dangerous means to avoid detection and apprehension placing exploited migrants at significant risk. These networks begin their operation in Central American countries, operate through Mexico and up into the United States. Many of these same migrants find themselves victims of sex trafficking, forced labor, and other exploitative schemes during or shortly following their journeys.
“This innovative forum in Mexico City helps ensure that the United States and our international partners are positioned to develop joint strategies and best practices to counter transnational human smuggling organizations,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The partnership between the Departments of Justice, Homeland Security and State is crucial to disrupting, dismantling, and prosecuting trafficking networks that exploit migrants, enrich organized crime, and pose a threat to national security.”
Reducing current migration flows is amongst the highest priorities for the Biden administration.
“This two-day regional event in Mexico City helps ensure that the United States, Mexico, Guatemala, Honduras and El Salvador are able to partner together to develop joint strategies and best practices to counter these dangerous transnational human smuggling organizations,” said U.S. Ambassador to Mexico Ken Salazar. “We are stronger when we work together.”
This collaborative event brought together U.S. federal agents from Homeland Security Investigations (HSI) Mexico, Guatemala and Washington D.C.; U.S. Customs and Border Protection (CBP) Mexico, Guatemala, and Washington D.C.; and resident legal advisors of the U.S. Department of Justice’s OPDAT Mexico, Guatemala, and Honduras. The forum also included partners from Mexico Attorney General’s Office’s “Fiscalía General de la República” (FGR) Mexico’s Unidad de Investigación de Delitos para Migrantes (IUIDPM) and FEMDO’s Unidad Especializada en Investigación de Tráfico de Menores, Personas y Órganos (UEITMPO), as well as prosecutors specializing in human smuggling cases from El Salvador and Honduras, and investigators from Guatemala, Honduras, and El Salvador.
“We are grateful for the opportunity to collaborate on a high impact crime that affects so many citizens of our countries,” said Director Alfredo Higuera Bernal of the Specialized Prosecutor's Office on Organized Crime (SEIDO) in Mexico. “It is clear that we have to continue working together to achieve more successes like the ones we have already reached.”
Prosecutors and law enforcement agents from the U.S. Department of Justice’s Joint Task Force Alpha (JTFA), a DOJ-U.S. Department of Homeland Security (DHS) anti-human smuggling international joint task force, attended and participated. JTFA, established by Attorney General Merrick B. Garland in June 2021, was created to enhance U.S. enforcement efforts against the most prolific human smuggling and trafficking networks operating in Mexico, Guatemala, El Salvador and Honduras. JTFA partners with OPDAT to fulfill their joint mandate to strengthen the capacity of Central American and Mexican counterparts to prosecute human smuggling networks in their own courts.
This strategy session event served as an opportunity to increase case cooperation to collaboratively work cases and ultimately dismantle human smuggling networks. This event strengthened communication amongst U.S., Mexico, Guatemala, Honduras and El Salvador to fulfill the goals of the Bicentennial Agreement.
Español
DOJ-DHS-INL en México Reciben a Socios Extranjeros en Evento Regional y Mesa Redonda Sobre Tráfico de PersonasRead the Press Release
5 y 6 de abril de 2022, en la Ciudad de México, México, la Embajada de los Estados Unidos en dicho país organizó un foro regional colaborativo y una mesa redonda para promover los objetivos establecidos en el Marco Bicentenario de Seguridad entre ambos países. La Oficina Internacional para el Desarrollo de Sistemas de Procuración de Justicia (OPDAT) del Departamento de Justicia (DOJ) encabezó el taller financiado por la Oficina de Asuntos Internacionales de Narcóticos y Aplicación de la Ley (INL) del Departamento de Estado, a través del cual se reunieron investigadores y fiscales especializados en el tráfico de personas de El Salvador, Honduras y los Estados Unidos; investigadores de Guatemala; y fiscales de México. La jefa de Misión Adjunta, Stephanie Syptak-Ramnath, dio un mensaje de apertura y reconoció la importancia de la cooperación regional para acabar con las redes del tráfico de personas. Los participantes compartieron las mejores prácticas, abordaron las tendencias y obstáculos recientes, y promovieron la coordinaron regional durante el diálogo que se generó en la mesa redonda. El objetivo del evento fue aumentar las colaboraciones exitosas entre los socios regionales en la lucha contra las organizaciones transnacionales de tráfico de personas.
La región vive actualmente flujos históricos de migración irregular, que, entre otras razones, son el resultado de las altas ganancias que surgen de la explotación de los migrantes por parte de organizaciones criminales transnacionales. Esto puede constatarse en los últimos años a través de los múltiples casos en los que se ha puesto en peligro a los migrantes, teniendo como resultado la pérdida de vidas, principalmente en México y en los Estados Unidos, en donde los traficantes cada vez utilizan medios más peligrosos para evitar su detección y aprehensión. Estas redes comienzan su operación en países centroamericanos y operan en México con la meta de llegar a los Estados Unidos. Muchos de estos migrantes pueden ser víctimas de tráfico sexual, trabajo forzado y otros esquemas de explotación durante sus viajes o poco después de éstos.
“Este foro innovador en la Ciudad de México ayuda a garantizar que los Estados Unidos y nuestros socios internacionales estén posicionados para desarrollar estrategias conjuntas y mejores prácticas para contrarrestar a las organizaciones transnacionales de tráfico de personas,” dijo el fiscal general adjunto Kenneth A. Polite Jr. de la División Criminal del Departamento de Justicia. “La alianza entre los Departamentos de Justicia, Seguridad Nacional y Estado, es crucial para interrumpir y desmantelar las redes de tráfico, así como para enjuiciar a quienes explotan a los migrantes, enriquecen el crimen organizado y representan una amenaza para la seguridad nacional.”
Reducir los flujos migratorios actuales es una de las prioridades más altas para la Administración Biden.
“Este evento regional de dos días en la Ciudad de México es histórico y ayuda a garantizar que los Estados Unidos, México, Guatemala, Honduras y El Salvador puedan trabajar juntos para desarrollar estrategias compartidas y replicar las mejores prácticas para cortar las redes de estas peligrosas organizaciones transnacionales de tráfico de personas que lucran con el dolor y la necesidad de la gente,” dijo el embajador de Estados Unidos en México, Ken Salazar. “Somos más fuertes cuando trabajamos juntos.”
Gracias a este evento colaborativo se reunieron agentes federales estadounidenses de Investigaciones de Seguridad Nacional (HSI) en México, Guatemala y Washington D.C.; Aduanas y Protección Fronteriza de los Estados Unidos (CBP) México y Washington D.C.; y Asesores Legales Residentes de la OPDAT del Departamento de Justicia de los Estados Unidos en México, Guatemala, Honduras y El Salvador. El foro también incluyó a socios de la Fiscalía General de la República (FGR) de la Unidad de Investigación de Delitos para Migrantes (IUIDPM) de México y de la Unidad Especializada en Investigación de Tráfico de Menores, Personas y Órganos (UEITMPO) de La Fiscalía Especializada en Materia de Delincuencia Organizada (FEMDO), así como fiscales especializados en casos de tráfico de personas de El Salvador y Honduras, e investigadores de Guatemala, Honduras y El Salvador.
“Estamos agradecidos por esta oportunidad de colaborar sobre un crimen de alto impacto que afecta a miles de personas en nuestros países,” dijo Alfredo Higuera Bernal, Fiscal Especializado en la Materia de Delincuencia Organizado (FEMDO). “Es evidente que tenemos que seguir trabajando juntos para lograr más éxitos como los que hemos alcanzado.”
A su vez, participaron fiscales y agentes de la ley de la Fuerza de Tarea Conjunta Alpha (JTFA) del Departamento de Justicia de los Estados Unidos, una fuerza de tarea conjunta internacional contra el contrabando de personas del Departamento de Justicia y el Departamento de Seguridad Nacional de los Estados Unidos (DHS). La JTFA, establecida por el fiscal general Merrick B. Garland en junio del año 2021, se creó para mejorar los esfuerzos de aplicación de la ley en los Estados Unidos contra las redes de tráfico y trata de personas más prolíficas que operan en México, Guatemala, El Salvador y Honduras. La JTFA trabaja con la OPDAT para cumplir con su mandato conjunto de fortalecer la capacidad de sus contrapartes centroamericanas y mexicanas para procesar a las redes de tráfico de personas en sus propios tribunales.
El evento estratégico sirvió como una oportunidad para aumentar la cooperación y trabajar en colaboración en los casos y, en última instancia, desmantelar las redes de tráfico de personas. Este evento fortaleció la comunicación entre los Estados Unidos, México, Guatemala, Honduras y El Salvador para cumplir con las metas del Acuerdo del Bicentenario.
English