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13 April 2022
Baton Rouge Man Pleads Guilty in Federal Court to Receipt of Child PornographyRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Jason L. Istre, age 45, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to receipt of child pornography. As a result of his conviction, Istre faces a significant term of imprisonment, a fine, and a period of supervised release, which includes sex offender registration requirements.
According to admissions made during his plea, on or about October 1, 2021, Istre knowingly received files of child pornography via the internet. Additionally, he used sophisticated computer programs to download and store images and videos of child pornography. Istre sought videos and images of minors, knowing they were under 18 years of age, and sought them with the intent to receive child pornography. Istre also possessed 1,700 total videos and approximately 45 images of child pornography, which were accessible through his laptop.
This matter was investigated by the Federal Bureau of Investigation and the East Baton Rouge Sheriff’s Office and is being prosecuted by Assistant United States Attorney Edward H. Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Barnstable Man Sentenced for Selling "Ghost Guns"Read the Press Release
BOSTON – A Barnstable man was sentenced yesterday in federal court in Boston for selling four “ghost guns” to an undercover agent.
Jacob Linhares, 34, was sentenced by U.S. Senior District Court Judge Douglas Woodlock to two years in prison and three years of supervised release. On Dec. 21, 2021, Linhares pleaded guilty to one count of dealing in firearms without a license and being a felon in possession of a firearm.
Between May 25, 2020 and June 15, 2020, Linhares, sold four Privately Made Firearms (PMFs) he had personally fabricated to an undercover agent. PMFs are not made by firearm manufacturers, but are rather from firearm parts purchased from firearm manufacturers and assembled by the buyer using various drilling tools and machinery to construct a functional firearm. PMFs do not have serial numbers and are commonly known as “ghost guns” because they are not serialized and are thus untraceable to a purchaser or owner.
Over this three-week period, Linhares arranged through phone calls and text messages involving coded language to meet with the undercover agent covertly in parking lots. During the fourth sale, Linhares agreed to take a commercially manufactured firearm as part of the payment. Due to prior felony convictions, Linhares is prohibited from possessing firearms.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Barnstable County District Attorney Michael D. O’Keefe; Barnstable Police Chief Matthew Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Auburn Man Pleads Guilty to Sexual Exploitation of a Child and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Devin Nau, age 27, of Auburn, New York, pled guilty today before United States District Judge David N. Hurd to two counts of sexual exploitation of a child and two counts of distribution of child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo, New York Field Office, and New York State Police Superintendent Kevin P. Bruen.
Nau, who remains detained pending his sentencing scheduled for August 11, 2022, faces at least 15 years and up to 100 years imprisonment on the charges. The Court will also impose a term of supervised release of between 5 years and life, and Nau will be required to register as a sex offender as a result of this conviction. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
As part of his guilty plea, Nau admitted to engaging in sex acts with two minor victims that he filmed and photographed using his cellular telephone. Nau further admitted that after recording the sex acts, he used a social media messaging application on his cellular telephone to distribute the depictions to other individuals over the internet.
Nau’s case was investigated by U.S. Homeland Security Investigations (HSI), Investigators of the New York State Police, Computer Crimes Unit (CCU), the Cayuga County District Attorney’s Office and the Auburn City Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J.L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Amarillo Men Plead Guilty to Defrauding Cattle Feed Supplement CompanyRead the Press Release
Two Amarillo men who defrauded a manufacturer of cattle feed supplements out of more than $474,000 pleaded guilty today to wire fraud, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Philip Ian Thomas, 41, and Hadley Lane Jones, 30, pleaded guilty Wednesday to conspiracy to commit wire fraud.
In plea papers, the pair admitted they defrauded Westway Feed Products, LLC, a North American liquid feed supplement company.
The company hired Mr. Thomas to manage its Dimmitt, Texas plant in October 2014, giving him discretion to approve repair and maintenance projects costing up to $3,000.
Two years later, Mr. Thomas and Mr. Jones concocted a scheme in which Mr. Thomas would create and approve fraudulent invoices for work Mr. Jones purportedly – but did not actually – perform.
In November 2016, Mr. Thomas instructed Westway’s accounting department to add Mr. Jones as an approved contractor. He then created two invoices for welding he said Mr. Jones had performed, one for $1,490 and another for $1,200.
Despite knowing that Mr. Jones had performed only one project listed on the first invoice, a welding job itemized at $495, Mr. Thomas stamped and signed the contracts. Westway’s accounting department then paid the invoices. When the $2,690 transfer reached Mr. Jones’ bank account, he immediately withdrew $2,000 and gave it to Mr. Thomas.
The pair continued the scheme into March 2020, repeatedly submitting fraudulent invoices to the Westway’s accounting department, which the company paid to Mr. Jones, who split the cash with Mr. Thomas.
To further the fraudulent scheme, Mr. Jones even created a sham business, “Elite Welding Service,” to make the invoices appear more legitimate.
In total, Mr. Thomas fabricated hundreds of fictitious invoices detailing jobs Mr. Jones purportedly performed, inducing his employer to pay Mr. Jones more than $474,429. With the exception of one $5,000 invoice, Mr. Thomas set all of the invoices at or below the $3,000 approval limit, thus avoiding scrutiny by upper level management.
Both Mr. Thomas and Mr. Jones now face up to 20 years in federal prison. Their sentencing date has not yet been set.
The U.S. Secret Service’s Lubbock Resident Office, conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case.
Agreement Reached with City of Springfield Reforming its Police Department’s Unconstitutional PracticesRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts and the Department of Justice’s Civil Rights Division today filed a complaint and a proposed consent decree with the City of Springfield, Massachusetts to resolve its investigation of the Springfield Police Department’s Narcotics Bureau. This is the first pattern or practice police investigation to be resolved through a settlement under the Biden Administration.
The Settlement Agreement, in the form of a proposed consent decree, which must be approved by a Federal District Court Judge, would resolve the United States’ claim that the City and the Narcotics Bureau of the Springfield Police Department engaged in a pattern or practice of excessive force that deprived individuals of their rights under the Fourth Amendment to the U.S. Constitution.
Under the Agreement, the Springfield Police Department will improve policies and training related to officers’ use of force. These improvements will ensure that officers avoid force whenever possible through the use of de-escalation tactics; that officers know when force can and cannot be used; and that officers report all instances where force is used. In addition, the Springfield Police Department will provide better supervision to officers and improve internal investigations of complaints of officer misconduct. When officers violate use-of-force policies, the decree will ensure that the Springfield Police Department holds officers accountable.
The Agreement also provides for the federal judge to appoint an independent monitor, with the title of Compliance Evaluator, based on the recommendation of the parties. The Compliance Evaluator will assess Springfield’s implementation of the decree’s requirements and file public reports with the court on Springfield’s progress.
“When communities don’t trust or fear law enforcement, it undermines public safety. Some within the Springfield Police Department, through their sustained and documented constitutional violations, have tarnished the name of the many upstanding and decent police officers working in Springfield,” said U.S. Attorney Rachael Rollins for the District of Massachusetts. “Today is the first step in repairing the harm and mistrust their misconduct and violence caused. After lengthy negotiations, we are pleased to have reached an agreement that includes significant and sustainable reforms to ensure effective and constitutional policing going forward in the City of Springfield. This is the first police misconduct Settlement Agreement entered during the Biden Administration. Our U.S. Attorney’s Office will always protect the constitutional rights of Massachusetts residents.”
“The public’s trust in law enforcement is a critical component of promoting public safety. Excessive force erodes that trust and makes our communities less safe,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This consent decree will rebuild the public’s trust by ensuring that Springfield officers who use excessive force in violation of the Fourth Amendment are held accountable. We look forward to working with city officials to ensure constitutional policing in every corner of the Springfield community and fostering better relationships between law enforcement and the community.”
The Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts initiated the investigation of the Springfield Police Department in April 2018 under the Violent Crime Control and Law Enforcement Act of 1994, 34 U.S.C. § 12601. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. In July 2020, the department announced findings that officers in SPD’s Narcotics Bureau, which has since been renamed the Firearms Investigation Unit, engaged in a pattern or practice of excessive force. The department found that Narcotics Bureau officers often failed to report use of force incidents. At times officers’ reports were inconsistent with available evidence, including video and photographs.
The investigation was conducted jointly by the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts and the Civil Rights Division’s Special Litigation Section. This matter is being handled by Jennifer A. Serafyn, Chief of Rollins’s Civil Rights Unit, and Assistant U.S. Attorneys Michelle Leung and Torey Cummings of Rollins’ Civil Rights Unit.
For more information on the U.S. Attorney’s Office’s Civil Rights Unit, please visit www.justice.gov/usao-ma/civil-rights. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Addiction Treatment Facility Owner Convicted in $58 Million Health Care Fraud SchemeRead the Press Release
A federal jury convicted a Florida woman today in a health care fraud scheme that billed private health insurers more than $58 million for services that were never provided and were not medically necessary.
According to court documents and evidence presented at trial, Carie Lyn Beetle, 44, of Lake City, with others, unlawfully billed health insurers for over $58 million of addiction treatment services that were never rendered and/or were medically unnecessary at two facilities she operated: Real Life Recovery Delray LLC (RLR), a substance abuse treatment center, and A Safe Place LLC, dba Halfway There Florida LLC (HWT), a related recovery residence, also referred to as a “sober home.”
The evidence showed that Beetle and her co-conspirators recruited patients by providing them with kickbacks and bribes in the form of free or reduced rent, payment for travel, and other benefits in exchange for those patients agreeing to reside at HWT, attend drug treatment at RLR, and submit to regular and random drug testing (typically two or three times per week) at RLR and HWT. Beetle and her co-conspirators then billed the patients’ insurance plans for the substance abuse treatment and urine testing services the patients were purportedly receiving. In many instances, individual patients did not attend the billed treatment session. On such occasions, Beetle and her co-conspirators caused employees and patients of HWT/RLR to forge patients’ signatures on sign-in sheets to make it appear as though absent patients had attended treatment. In addition, Beetle and her co-conspirators caused expensive medically unnecessary urine testing to be billed for patients knowing that the tests were excessive, not used in treatment, and not reviewed by medical professionals.
The evidence further showed that Beetle laundered the proceeds knowing they derived from fraud and other crimes when she deposited a check from RLR.
Beetle was convicted of one count of conspiracy to commit health care fraud and wire fraud, and one count of money laundering. She is scheduled to be sentenced later this year and faces a maximum sentence of 20 years in prison on the conspiracy count and up to 10 years in prison on the money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; 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; Deputy Chief James D. Robnett of IRS-Criminal Investigation (IRS-CI); and Special Agent in Charge Matthew D. Line of IRS-CI’s Miami Field Office made the announcement.
The FBI, IRS-CI, the Florida Bureau of Insurance Fraud, and Amtrak Office of Inspector General investigated the case.
Senior Litigation Counsel Jim Hayes and Trial Attorneys Ligia Markman and Reginald Cuyler Jr. of the Criminal Division’s Fraud Section are prosecuting the case.
The National Rapid Response Strike Force and Los Angeles Strike Force lead the Department of Justice’s Sober Homes Initiative, which was announced in the 2020 National Health Care Fraud Takedown to prosecute defendants who exploit vulnerable patients seeking treatment for drug and/or alcohol addiction.
12 April 2022
全国性人口贩卖和性贩卖集团的九名成员及其同伙以敲诈勒索及相关罪名被起诉Read the Press Release
被告教唆成员内容包括：“（如果她）敢反抗，就打得更狠一点， 打出来点效果，钱不能白扔“
布碌仑联邦法庭今天对陈思阳、陈思宇 (同时被称为班班，译音) 、姜波、宋美珍（同时被称为蝶蝶）、徐荣荣（同时被称为Eleanor）、严家润 (同时被称为Raymond Yan 及Mike) 、于基龙、卡洛斯.柯瑞 (Carlos Cury) 及唐泽荣所涉及的罪行提出20项起诉，其中包括诈骗、性贩卖、霍布斯法抢劫和暴力攻击等罪名。此一犯罪集团以纽约州皇后区为基地，但罪行遍布全美，包括夏威夷州、堪萨斯州、密西根州、密苏里州、内布拉斯加州、新罕布什尔州、俄勒冈州、德克萨斯州和华盛顿州。共有八名被告逮捕到案，并将于今天下午在助理法官XXXX庭上提讯过堂。
美国司法部调查局纽约州东区律师皮斯 (Breon Peace)、联邦调查局纽约办公室助理监察德睿斯考（Michael J. Driscoll）和纽约市警察局局长塞维尔(Keechant L. Sewell)共同宣布了本次逮捕行动和起诉罪名。
司法调查局律师皮斯指出， “这些被告锁定弱势女性进行性贩卖罪行，并用暴力袭击这些受害人，让她们服从犯罪集团的指令，个人不应成为交易标的，而在此项罪行中的受害者，无论她们的移民身份为何，都应享有免受暴力及被迫提供性行为的自由。我们希望今天的逮捕能为这些受害人遭受的恐怖经历，带来一定程度的司法正义，这个案例是我们检调单位长期以来打击以剥削受害人自由并从中获利的人口贩卖集团，并致力将其绳之以法的另一证明。“
法院罪状指出，被告在2019年4月到2021年9月间，涉及暴力和组织诈骗集团，并在全美经营获利丰厚的卖淫业务，此犯罪集团主要招募来自中国且不具合法居留美国身份的女性，为该集团提供卖淫业务。这些受害人有时还必须提供她们的身份证明文件，让涉案罪犯能对其进行更多掌控，该犯罪集团会安排这些女性从纽约州旅行至全美各地，每次在酒店或集团控制的公寓内停留数周，并在停留期间进行商业行为。犯罪集团成员及同伙会在交易完成后向这些被害女性收取金钱，然后用此收入进一步推广人口贩卖及跨州卖淫行为，让涉及罪犯从中获利。
如罪状中提出的，以上犯罪集团的罪犯及其同伙在2020年1月8日至2021年9月1日期间，在五个州境内对超过15名女性进行或教唆施暴，这些受害的中国女性应是为这犯罪集团或其对手集团提供商业卖淫活动，集团成员对这些女性进行暴力袭击，期能让这些受害人服从指令完成卖淫工作，并相信因为这些被害人不是美国公民，所以从事商业的性交易工作将不会受起诉。特别是这犯罪集团成员及同伙会指派个别男子担任嫖客，让受害人在不知情前提下让这些同伙进入酒店房间，一旦入室后，这些假嫖客将封住被害人的嘴、用铁锤、棍棒或其他突击物品对被害人施暴，并掠夺其财物。如果这些暴力行为对受害人没有造成足够伤害，该集团和罪犯还会鼓励施暴者用更严酷的殴打，在执法单位所录取的一段电话对话中，其中一名成员告诉施暴人“明天往死里打，敢反抗就打得更狠一点，打出来点效果，钱不能白扔”。另一段录取的对话则是一位成员说“这次不一样， 咱不要绑手。一个人控制锁喉，另一个人往死里打四肢，绝对不能发出声音，把她打到不能反抗了， 完事儿拿了手机就走。”
起诉书中的罪状均属指控，所有被告在证明有罪之前均属无辜。
皮斯律师对联邦调查局和纽约市警察局的调查工作特别提出赞扬，这次的调查工作收到全美执法单位的协助，皮斯律师也致意感谢内布拉斯加州的美国司法局办公室、美国国土防卫部边境移民管理局位于俄克拉荷马市和曼彻斯特市二个办公室的执法单位，另外，包括俄勒冈州毕佛尔顿市警局、密西根州警、密苏里州高速公路巡警、俄克拉荷马市（俄克拉荷马州）警局、欧佛兰公园市（堪萨斯州）警局、波特兰市（俄勒冈州）警局、南区市（密西根州）警局、和突洛依市（密西根州）警局等地方执法单位也在本次调查中提供宝贵协助。
政府当局将由组织犯罪和帮派及民权办公室担任代表，对本案提起诉讼，司法院助理法官盖力奥提（Matthew R. Galeotti）、奔辛（Kayla C. Bensing）和史瓦瑞兹（Sophia M. Suarez）将负责本案的诉讼。
联邦调查局纽约亚裔犯罪集团联合专案组确信, 这个集团可能要对更多在美国各地发生的, 对从事性交易的性工作者的攻击事件负责。如果您是受害者, 或有讯息要提供，可以通过以下方式联系我们: 您可以在tips.fbi.gov通过网络举报, 或拨打我们的直线电话1-800-CALL-FBI. 无论您是什么移民身份, 我们有专人随时用您的母语与您交谈。 接通后, 请选择英文; 然后告訴接线生您需要的翻译。 您可以用任何语言进行网络举报。紧急事件, 请拨打911给警方。
被告:
陈思阳
32岁
纽约州皇后区陈思宇 （同时被称为班班）
24岁
纽约州皇后区姜波
26 岁
纽约州皇后区宋美珍 （同时被称为“蝶蝶“）
23岁
达拉斯市，德克萨斯州徐荣荣（同时被称为 “Eleanor”）
29 岁
纽约州皇后区严家润（同时被称为 “Raymond Yan” 和 “Mike”）
28 岁
纽约州皇后区于基龙
23岁
达拉斯市，德克萨斯州CARLOS CURY
41岁
纽约州皇后区唐泽荣
24岁
纽约州皇后区Winthrop Man Pleads Guilty to Cocaine and Money Laundering ChargesRead the Press Release
BOSTON – A Winthrop man pleaded guilty on Friday, April 8, 2022, in federal court in Boston to laundering over $335,000 in cocaine proceeds and distributing over 15 kilograms of cocaine.
Fabio Quijano, 58, of Winthrop, pleaded guilty to money laundering conspiracy, money laundering, conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Aug. 15, 2022. Quijano was arrested and indicted in February 2020. He was subsequently charged in a superseding indictment in May 2020.
Quijano worked with at least two other men—including co-defendant Jairo Agudelo, who previously pleaded guilty and was sentenced to 57 months in prison—to launder hundreds of thousands of dollars in drug proceeds derived from Quijano’s large-scale cocaine trafficking business.
On June 26, 2018, Quijano delivered $135,180 of cocaine proceeds to an undercover officer posing as a money laundering intermediary acting on behalf of a Colombian money broker. On Feb. 4, 2019, Quijano’s business partner delivered another $310,000 in drug proceeds to the undercover. And on Feb. 18, 2019, Agudelo attempted to deliver $200,000 to the undercover officer, on behalf of Quijano and his business partner, when he was stopped by police. Agudelo later admitted that Quijano had given him the $200,000 to launder.
On Feb. 20, 2019, investigators executed a search warrant at the stash house operated by Quijano and his business partner, located in an apartment in Everett. Inside the apartment, investigators located nearly four kilograms of cocaine, over $310,000 in cash from prior drug sales, a hydraulic kilogram press, drug packaging materials and numerous drug ledgers.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division made the announcement. Critical assistance was provided by the Boston Police Department; Massachusetts State Police; Revere Police Department; U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations; and the United States Marshals Service. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This investigation 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.
Valdosta Man Pleads Guilty to Production of Child PornographyRead the Press Release
VALDOSTA, Ga. – A Valdosta man who produced child pornography involving two young children has pleaded guilty to his crime in federal court.
Henry Theodore Salmons aka Ted, 48, of Valdosta, Georgia, pleaded guilty to two counts of producing child pornography before U.S. District Judge Hugh Lawson on Monday, April 11. Salmons faces a minimum of 15 years in prison and a maximum of 30 years in prison per count to be followed by five years to life on supervised release and a maximum $250,000 fine. In addition, Salmons will have to register as a sex offender upon his release from federal prison. There is no parole. Sentencing has been scheduled for July 20.
“Forcing children to engage in sex, filming the crimes and sharing the assaults with others is an unconscionable heinous act that deserves the maximum punishment,” said U.S. Attorney Peter D. Leary. “For the protection of the minor victims, the horrific details will remain under the court’s seal; but, let me be clear that the criminal actions of Ted Salmons and other child sexual predators like him will not remain in the shadows but will be brought to the light of full justice.”
“Finding and stopping predators like Salmons, that not only victimize innocent children, but also share those horrific images with others who delight in viewing this filth is one of our highest priorities,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to remove a serious threat from our community and we will continue to pursue those who commit these evil acts.”
“In my more than two decades in law enforcement, I have never seen so much crime involving children as now, which I suspect is due to the prevalence of social media. I am thankful that we have great cooperation between our federal, state and local law enforcement agencies—plus strong federal prosecutors—that help us investigate child sexual exploitation and abuse cases and bring these criminals to justice,” said Lowndes County Sheriff Ashley Paulk.
According to court documents, Salmons admitted that he enticed two minor children under the age of ten years old to engage in sexually explicit acts which were filmed or photographed in April and July 2021. For the protection of the minor victims, Salmon’s guilty plea was sealed by the Court at the request of the U.S. Attorney’s Office.
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. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Department of Homeland Security (HSI) and the Lowndes County Sheriff’s Office.
Assistant U.S. Attorney Katelyn Semales is prosecuting the case.
United States Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
The Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on Jan. 31, at the United States’ request and remains in custody pending the resolution of his extradition proceedings.
Court records unsealed today indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February 2022, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials and social security numbers.
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The seizure of the RaidForums website – which facilitated the sale of stolen data from millions of people throughout the world – and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office said. “Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice – no matter where in the world they live or behind what device they try to hide.”
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division. “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding” – posting or sending an overwhelming volume of contact to a victim’s online communications medium – or “swatting” – the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between Jan. 1, 2015, and on or about Jan. 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock,” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Special Agent in Charge Jason D. Kane of the U.S. Secret Service’s Criminal Investigative Division; and Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Carina A. Cuellar for the Eastern District of Virginia are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany) and other law enforcement partners.
Anyone that has any information regarding Coelho or RaidForums should file a complaint at ic3.gov with #RaidForums in the description.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Citizen Who Conspired to Assist North Korea in Evading Sanctions Is Sentenced to More Than 5 Years and Fined $100,000Read the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VIRGIL GRIFFITH, a U.S. citizen who conspired to provide services to the Democratic People’s Republic of Korea (“DPRK” or “North Korea”), including technical advice on using cryptocurrency and blockchain technology to evade sanctions, was sentenced to 63 months after pleading guilty to conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”). U.S. District Judge P. Kevin Castel imposed today’s sentence.
U.S. Attorney Damian Williams stated: “There is no question North Korea poses a national security threat to our nation, and the regime has shown time and again it will stop at nothing to ignore our laws for its own benefit. Mr. Griffith admitted in court he took actions to evade sanctions, which are in place to prevent the DPRK from building a nuclear weapon. Justice has been served with the sentence handed down today.”
According to the Complaint, Indictment, other documents in the public record, as well as statements made in public court proceedings:
Pursuant to the IEEPA and Executive Order 13466, United States persons are prohibited from exporting any goods, services, or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
GRIFFITH, a cryptocurrency expert, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. GRIFFITH knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.
In April 2019, GRIFFITH traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the “DPRK Cryptocurrency Conference”). Despite the fact that the U.S. Department of State had denied GRIFFITH permission to travel to the DPRK, GRIFFITH delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.
At the DPRK Cryptocurrency Conference, GRIFFITH and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. GRIFFITH’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. GRIFFITH and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom GRIFFITH understood worked for the North Korean government.
After the DPRK Cryptocurrency Conference, GRIFFITH pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. GRIFFITH also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did GRIFFITH obtain permission from OFAC to provide goods, services, or technology to the DPRK.
* * *
In addition to the prison sentence, GRIFFITH, 39, was sentenced to three years supervised release.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Field Office, Counterintelligence Division, and thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, the Department of Justice’s Office of International Affairs, and the Singapore Police Force for their assistance.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba are in charge of the case, with assistance from Trial Attorney Matthew J. McKenzie of the Counterintelligence and Export Control Section.
U.S. Leads Seizure of One of the World’s Largest Hacker Forums and Arrests AdministratorRead the Press Release
ALEXANDRIA, Va. – The U.S. Department of Justice today announced the seizure of the RaidForums website, a popular marketplace for cybercriminals to buy and sell hacked data, and unsealed criminal charges against RaidForums’ founder and chief administrator, Diogo Santos Coelho, 21, of Portugal. Coelho was arrested in the United Kingdom on January 31, at the United States’ request, and remains in custody pending the resolution of his extradition proceedings.
“Our interagency efforts to dismantle this sophisticated online platform – which facilitated a wide range of criminal activity – should come as a relief to the millions victimized by it, and as a warning to those cybercriminals who participated in these types of nefarious activities,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Online anonymity was not able to protect the defendant in this case from prosecution, and it will not protect other online criminals either.”
“The takedown of this online market for the resale of hacked or stolen data disrupts one of the major ways cybercriminals profit from the large-scale theft of sensitive personal and financial information,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is another example of how working with our international law enforcement partners has resulted in the shutdown of a criminal marketplace and the arrest of its administrator.”
"The seizure of the RaidForums website — which facilitated the sale of stolen data from millions of people throughout the world — and the charges against the marketplace's administrator are a testament to the strength of the FBI's international partnerships," Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office said. "Cybercrime transcends borders, which is why the FBI is committed to working with our partners to bring cybercriminals to justice — no matter where in the world they live or behind what device they try to hide."
“This global investigation signifies the remarkable dedication of the U.S. Secret Service and highlights our partnerships with our foreign law enforcement counterparts essential to disrupting sophisticated networks of cyber criminals,” said Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; “This case exemplifies teamwork at all levels of law enforcement to stop these cyber criminals from defrauding citizens of the United States and in our partner countries.”
Court records unsealed yesterday indicate that the United States recently obtained judicial authorization to seize three domains that long hosted the RaidForums website. These domains were “Raidforums.com,” “Rf.ws,” and “Raid.lol.” According to the affidavit filed in support of these seizures, from in or around 2016 through February, RaidForums served as a major online marketplace for individuals to buy and sell hacked or stolen databases containing the sensitive personal and financial information of victims in the United States and elsewhere, including stolen bank routing and account numbers, credit card information, login credentials, and social security numbers. Prior to its seizure, RaidForums members used the platform to offer for sale hundreds of databases of stolen data containing more than 10 billion unique records for individuals residing in the United States and internationally. At the time of its founding in 2015, RaidForums also operated as an online venue for organizing and supporting forms of electronic harassment, including by “raiding”—posting or sending an overwhelming volume of contact to a victim’s online communications medium—or “swatting”—the practice of making false reports to public safety agencies of situations that would necessitate a significant, and immediate armed law enforcement response.
The seizure of these domains by the government will prevent RaidForums members from using the platform to traffic in data stolen from corporations, universities, and governmental entities in the United States and elsewhere, including databases containing the sensitive, private data of millions of individuals around the world.
In addition, a six-count indictment against Coelho was unsealed in the Eastern District of Virginia charging him with conspiracy, access device fraud, and aggravated identify theft in connection with his role as the chief administrator of RaidForums. According to the indictment, between January 1, 2015, and on or about January 31, 2022, Coelho allegedly controlled and served as the chief administrator of RaidForums, which he operated with the help of other website administrators. As administrators, Coelho and his co-conspirators are alleged to have designed and administered the platform’s software and computer infrastructure, established and enforced rules for its users, and created and managed sections of the website dedicated to promoting the buying and selling of contraband, including a subforum titled “Leaks Market” that described itself as “[a] place to buy/sell/trade databases and leaks.”
To profit from the illicit activity on the platform, RaidForums charged escalating prices for membership tiers that offered greater access and features, including a top-tier “God” membership status. RaidForums also sold “credits” that provided members access to privileged areas of the website and enabled members to “unlock” and download stolen financial information, means of identification, and data from compromised databases, among other items. Members could also earn credits through other means, such as by posting instructions on how to commit certain illegal acts.
According to the indictment, Coelho also personally sold stolen data on the platform, and directly facilitated illicit transactions by operating a fee-based “Official Middleman” service. For the Official Middleman service, Coelho allegedly acted as a trusted intermediary between RaidForums members seeking to buy and sell contraband on the platform, including hacked data. Notably, to create confidence amongst transacting parties, the Official Middleman service enabled purchasers and sellers to verify the means of payment and contraband files being sold prior to executing the transaction.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Jason D. Kane, Special Agent In Charge, Criminal Investigative Division of the U.S. Secret Service; and Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office, made the announcement.
Assistant U.S. Attorney Carina A. Cuellar and Senior Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) of the Justice Department are prosecuting the case against Coelho. The Justice Department’s Office of International Affairs has also provided significant assistance throughout the criminal investigation.
The law enforcement actions against RaidForums and Coelho are the result of an ongoing criminal investigation by the FBI’s Washington Field Office and the U.S. Secret Service. The Department also thanks the support provided by Joint Cybercrime Action Taskforce (Europol), National Crime Agency (UK), Swedish Police Authority (Sweden), Romanian National Police (Romania), Judicial Police (Portugal), Internal Revenue Service Criminal Investigation, Federal Criminal Police Office (Germany), and other law enforcement partners.
Anyone that has any information regarding Coelho, RaidForums or other RaidForums administrators should file a complaint at ic3.gov with #raidforums in the description.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-114.
coelho_indictment.pdfAn indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Who Conspired to Assist North Korea in Evading Sanctions Sentenced to over Five Years and Fined $100,000Read the Press Release
A U.S. citizen who conspired to provide services to the Democratic People’s Republic of Korea (DPRK or North Korea), including technical advice on using cryptocurrency and blockchain technology to evade sanctions, was sentenced to 63 months in prison after pleading guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA).
According to court documents, Virgil Griffith, 39, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. Griffith knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.
Pursuant to the IEEPA and Executive Order 13466, U.S. persons are prohibited from exporting any goods, services or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (OFAC).
In April 2019, Griffith traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the DPRK Cryptocurrency Conference). Even though the Department of State had denied Griffith permission to travel to the DPRK, Griffith delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.
At the DPRK Cryptocurrency Conference, Griffith and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. Griffith’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. Griffith and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom Griffith understood worked for the North Korean government.
After the DPRK Cryptocurrency Conference, Griffith pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. Griffith also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did Griffith obtain permission from OFAC to provide goods, services or technology to the DPRK.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Damian Williams for the Southern District of New York made the announcement.
The FBI’s New York Field Office investigated the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section, the Justice Department’s Office of International Affairs, and the Singapore Police Force.
Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba for the Southern District of New York and Trial Attorney Matthew J. McKenzie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
U.S. Attorney to host Health Care Fraud SymposiumRead the Press Release
MORGANTOWN, WEST VIRGINIA – Experts from the public and private sector will gather in Morgantown next week for a seminar to highlight best practices in preventing and responding to health care fraud, United States Attorney William Ihlenfeld announced.
The Mountaineer Health Care Fraud Symposium will take place on Thursday, April 21, at the WVU College of Law. Federal and state investigators will share the latest trends in health care fraud, while medical and insurance professionals will discuss best practices on how to detect and prevent fraud. A presentation explaining how whistleblowers can come forward, tell their story, and share in the financial recovery will also be made. The United States Attorney’s Office is hosting the event.
The symposium comes on the heels of the creation of a West Virginia-based health care fraud strike force comprised of state and federal agencies that takes a data-driven approach to uncovering waste and abuse. In addition to the formation of the strike force, a hotline, email address and mailing address have been established to allow for the reporting of potential fraud. Anyone with information may call (304) 234-7711, send an email to [email protected], or mail correspondence to the U.S. Attorney’s Office, P.O. Box 591, Wheeling, WV 26003.
The registration-only event allows for both in-person and virtual attendance. The West Virginia State Bar has approved the event for 4.8 continuing legal education credits. To register, send an email to [email protected].
The full agenda may be found at https://www.justice.gov/usao-ndwv/health-care-fraud-symposium.
Two Santa Clara County Executives Charged with “Specialty Occupation” Visa FraudRead the Press Release
SAN JOSE – Elangovan Punniakoti and Mary Christeena appeared in federal court today to face an indictment charging them with visa fraud and conspiracy to commit visa fraud, announced United States Attorney Stephanie M. Hinds, U.S. Department of State Diplomatic Security Service (DSS), San Francisco Field Office, Special Agent in Charge William Chang, and Homeland Security Investigations Special Agent in Charge Tatum King.
According to the indictment, Innovate Solutions, Inc. in Santa Clara County was incorporated in 2008 as an information technology services company. Punniakoti, 52, a resident of Cupertino, acted as CEO of Innovate Solutions. Christeena, 47, also a resident of Cupertino, served as the company’s president.
The indictment charges that from 2010 through May 2020, Punniakoti and Christeena repeatedly submitted fraudulent H-1B visa applications for foreign workers sponsored by Innovate Solutions. H-1B visas are issued through the United States government’s H-1B Specialty Occupation Workers program. With an H-1B visa, a sponsoring employer can employ a foreign worker in the United States on a temporary, nonimmigrant basis in a “specialty occupation.” A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and requires the employee to have a bachelor's degree or its equivalent in the relevant specialty. Each employer seeking to obtain an H-1B visa to employ a nonimmigrant foreign worker is required to submit an application to the U.S. Department of Labor that, among other things, attests to labor conditions and describes the existence, duration, and wages of the temporary job. A subsequent petition requires, among other information, biographical data of the proposed foreign worker and the address where the proposed foreign worker will be working for the sponsoring employer.
The indictment charges that from 2010 through May 2020, Punniakoti and Christeena submitted approximately 54 fraudulent H-1B visa applications for temporary nonimmigrant workers sponsored by Innovate Solutions. Each application required representations made under penalty of perjury as to the name, location, terms, and existence of the employment position for the sponsored nonimmigrant worker. Punniakoti and Christeena submitted, or caused to be submitted, statements in the application process that the foreign workers would be working offsite at specific end-client companies. The indictment charges that the identified end-client companies either never received the proposed foreign workers or never intended to receive those workers. The indictment also charges that Punniakoti and Christeena submitted, or caused to be submitted, statements that a foreign worker would be working on an internal project for Innovate Solutions despite knowing that no such project existed.
Once the applications were approved, Punniakoti and Christeena created a pool of H-1B workers that were placed at employment positions with other employers that had actual work, not with the identified end-clients. The practice provided Innovate Solutions with an unfair and illegal advantage over employment-staffing firms.
During the period of Punniakoti’s and Christeena’s conspiracy, the indictment alleges, the other employers paid fees of more than $2.5 million to Innovate Solutions to cover the cost of the H-1B workers’ wages and salaries as well as a profit markup for Innovate Solutions.
Punniakoti and Christeena made their initial appearances in San Jose federal court today before United States Magistrate Judge Virginia K. DeMarchi. A further court appearance is scheduled on July 25, 2022, before United States District Judge Edward J. Davila, who sits in San Jose. Both defendants were released.
The federal indictment charges both Punniakoti and Christeena with one count of conspiracy to commit visa fraud in violation of 18 U.S.C. § 371 and six counts of visa fraud in violation of 18 U.S.C. §§ 1546(a) and 2. The maximum statutory imprisonment sentence for a violation of 18 U.S.C. § 371 is 5 years in prison. The maximum statutory imprisonment sentence for each violation of 18 U.S.C. §§ 1546(a) is 10 years. Each of the charged statutes carry a maximum statutory fine of $250,000 or twice the gross gain or loss amount. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal indictment are only allegations. As in any criminal case, these defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Sarah Griswold is prosecuting the case with the assistance of Lynette Dixon. The prosecution was the result of an investigation led by the DSS representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Two Men Plead Guilty to Brandishing FirearmRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty yesterday and a Henrico man pleaded guilty last week to possession of a firearm by a convicted felon in cases where each brandished their firearms in a residential area.
According to court documents, on July 23, 2021, police officers observed on social media Anthony Cornelius Brown Jr., 24, of Richmond, Dequane McCullers, 24, of Henrico, and several other individuals brandishing firearms in the Belt Atlantic apartment complex in South Richmond. When the officers responded to the area, they again observed Brown, McCullers and two others still in the area. As the officers attempted to stop Brown, McCullers, and two other individuals, the suspects dispersed in an attempt to avoid the officers. Ultimately, the officers detained all four and found Brown in possession of a Glock 35, .40 caliber firearm and McCullers in possession of a Glock 23, .40 caliber firearm
Brown pleaded guilty yesterday to possessing a firearm after having been convicted of a felony. McCullers pleaded guilty on April 6 to the same charge.
Brown and McCullers are both scheduled to be sentenced on August 15, 2022. They each face a maximum penalty of 10 years in prison. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Gerald M. Smith, Chief of Richmond Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr., accepted the plea.
Assistant U.S. Attorney Stephen E. Anthony is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-131.
Two Illinois Men Sentenced to Prison for Their Roles in Bombing of Dar al-Farooq Islamic Center and Weapons ChargesRead the Press Release
Two Illinois men were today sentenced to 190 months and 170 months in prison, respectively, for their roles in the 2017 bombing of Dar al-Farooq (DAF) Islamic Center in Bloomington, Minnesota.
On Jan. 24, 2019, Michael McWhorter, 33, and Joe Morris, 26, both of Clarence, Illinois, pleaded guilty in the District of Minnesota to federal charges that originated in both the District of Minnesota and the Central District of Illinois. The charges included intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; carrying and using a destructive device during and in relation to crimes of violence; possession of a machine gun; conspiracy to interfere with commerce by threats and violence; and attempted arson. The pleas to the charges originating in the Central District of Illinois were entered in Minnesota pursuant to Federal Rule of Criminal Procedure 20, which allows for the transfer of charges for the entry of guilty pleas and the imposition of sentence.
“McWhorter and Morris carried out a violent plan to attack a house of worship as people peacefully prayed inside,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In the United States, all people have a right to exercise their faith freely. The Justice Department will vigorously prosecute domestic terrorists who carry out acts of violence to suppress those rights or threaten and intimidate others based on their religious identity.”
“Hate-fueled acts of violence like the bombing of the Dar al-Farooq Islamic Center violate our laws and run contrary to our values as a nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This heinous bombing instilled fear in an entire faith community. These defendants made the decision to confess to their crimes and assist in the civil rights prosecution of the individual who led them to join a far-reaching criminal conspiracy rooted in white supremacy. The department will continue using all the tools in our law enforcement arsenal to prosecute hate-fueled acts, including those that target communities of faith and houses of worship.”
“These men followed Hari’s lead, complied with her direction, and subscribed to her violent and extremist ideology in carrying out this act of terrorism,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Today, justice has been served for their actions. The U.S. Attorney’s Office and the Department of Justice will protect and uphold the rights of individuals and faith communities to worship freely, without the threat of violence.”
“Attacks on houses of worship and those practicing their faith are heinous acts,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The outcome of this case should serve notice that such actions will not be tolerated. The FBI will work with our partners to hold accountable those who commit or plot to commit such acts of violence in our communities.”
McWhorter and Morris were recruited by Emily Claire Hari, 51, formerly known as Michael Hari, to join a terrorist militia group called “The White Rabbits” in the summer of 2017. According to court documents, Hari recruited McWhorter and Morris to join the militia, which Hari outfitted with paramilitary equipment and assault rifles. On Aug. 4 and 5, 2017, Hari, McWhorter and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. About an hour outside of Minnesota, Hari disclosed to McWhorter and Morris that there was a pipe bomb in the truck and that they were going to bomb a mosque. Hari targeted DAF specifically to terrorize Muslims into believing they are not welcome in the United States and should leave the country.
According to court documents, Hari, McWhorter and Morris arrived at DAF at approximately 5:00 a.m. on Aug. 5, 2017. Morris used a sledgehammer to break the window of the Imam’s office at DAF and threw a plastic container with a mixture of diesel fuel and gasoline into the office. McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck where Hari was waiting in the driver’s seat. The three sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
According to court documents, on Nov. 7, 2017, Hari, McWhorter and Morris attempted to set fire to the Women’s Health Practice in Champaign, Illinois. Morris used a sledgehammer to break a window and placed a PVC device containing thermite powder in the Women’s Health Practice. The device did not ignite and was found on the floor by an employee of the Women’s Health Practice when the employee arrived to work later that morning.
According to court documents, on Dec. 16, 2017, McWhorter and Morris participated in an armed home invasion in the town of Ambia, Indiana, where they dressed as police officers and carried firearms, including two that had been illegally converted into machine guns. Hari, McWhorter and Morris also carried out armed robberies of two Walmart stores, one in Watseka, Illinois, and one in Mt. Vernon, Illinois, on Dec. 2, and 17, 2017, respectively.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Allison Ethen and Timothy Rank for the District of Minnesota prosecuted the case, with valuable assistance provided by Trial Attorney Timothy Visser of the Civil Rights Division, Lead Paralegal Specialist Lynette Simser, Community Affairs Director Angie LaTour, Witness Specialist Selina Kolsrud, former Assistant U.S. Attorneys John Docherty and Julie Allyn, Assistant U.S. Attorney Eugene Miller of the Central District of Illinois, and the special agents of the FBI’s Minneapolis and Springfield Divisions, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bloomington Police Department, and the Bloomington Fire Department.
Two Illinois Men Sentenced to Prison for Their Roles in Bombing of Dar al-Farooq Islamic CenterRead the Press Release
ST. PAUL, Minn. – Michael McWhorter, 33, and Joe Morris, 26, both of Clarence, Illinois, were sentenced today to 190 months and 170 months in prison, respectively, for firearms violations, arson, use of a destructive device, and federal civil rights violations in connection with the 2017 bombing of Dar al-Farooq (DAF) Islamic Center in Bloomington, Minnesota.
“Hate-fueled acts of violence like the bombing of the Dar al-Farooq Islamic Center violate our laws and run contrary to our values as a nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This heinous bombing instilled fear in an entire faith community. These defendants made the decision to confess to their crimes and assist in the civil rights prosecution of the individual who led them to join a far-reaching criminal conspiracy rooted in white supremacy. The department will continue using all the tools in our law enforcement arsenal to prosecute hate-fueled acts, including those that target communities of faith and houses of worship.”
“McWhorter and Morris carried out a violent plan to attack a house of worship as people peacefully prayed inside,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “In the United States, all people have a right to exercise their faith freely. The Justice Department will vigorously prosecute domestic terrorists who carry out acts of violence to suppress those rights or threaten and intimidate others based on their religious identity.”
“Although these men were not the criminal masterminds of their violent acts, they followed Hari’s leadership, they complied with the direction they were given, and submitted to a violent and extremist ideology in carrying out this act of terrorism,” said U.S. Attorney Andrew Luger. “The government recognizes and values McWhorter and Morris’s cooperation throughout this case, which contributed to Hari’s conviction. Today, justice under the law has been served for their actions. The U.S. Attorney’s Office and the Department of Justice will protect and uphold the rights of individuals and faith communities to worship freely, without the threat of violence.”
“This crime was a violent, hate driven attack that specifically targeted individuals based on their faith. More broadly, this was an attack on all faith-based communities that openly practice their religions with a reasonable expectation of peaceful freedom to do so,” said Michael Paul, Special Agent in Charge of the FBI's Minneapolis division. “Every person has the right to live and worship freely and without fear. The FBI is committed to defending all communities and protecting the rights of all Americans.”
According to court documents, during the summer of 2017, Emily Claire Hari, 51, f/k/a Michael Hari, established a terrorist militia group called “The White Rabbits” in Clarence, Illinois. Hari recruited McWhorter and Morris to join the militia, which Hari outfitted with paramilitary equipment and assault rifles. On August 4 and 5, 2017, Hari, McWhorter, and Morris drove in a rented pickup truck from Illinois to Bloomington, Minnesota, to bomb the DAF Islamic Center. About an hour outside of Minnesota, Hari disclosed to McWhorter and Morris that there was a pipe bomb in the truck and that they were going to bomb a mosque. Hari targeted DAF specifically to terrorize Muslims into believing they are not welcome in the United States and should leave the country.
According to court documents, Hari, McWhorter, and Morris arrived at DAF at approximately 5:00 a.m. on August 5, 2017. Morris used a sledgehammer to break the window of the Imam’s office at DAF and threw a plastic container with a mixture of diesel fuel and gasoline into the office. McWhorter then lit the fuse on a 20-pound black powder pipe bomb and threw it through the broken window. McWhorter and Morris ran back to the truck where Hari was waiting in the driver’s seat. The three sped away from the building and drove back to Illinois. When the pipe bomb exploded, the blast caused extensive damage to the Imam’s office. It also ignited the gasoline and diesel mixture, causing extensive fire and smoke damage. At the time of the bombing, several worshipers were gathered in the mosque for morning prayers.
According to court documents, on November 7, 2017, Hari, McWhorter, and Morris attempted to set fire to the Women’s Health Practice in Champaign, Illinois. Morris used a sledgehammer to break a window and placed a PVC device containing thermite powder in the Women’s Health Practice. The device did not ignite and was found by an employee of the Women’s Health Practice when the employee arrived to work later that morning.
According to court documents, on December 16, 2017, McWhorter and Morris participated in an armed home invasion in the town of Ambia, Indiana, where they dressed as police officers and carried firearms, including two that had been illegally converted into machine guns. Hari, McWhorter, and Morris also carried out armed robberies of two Walmart stores, one in Watseka, Illinois, and one in Mt. Vernon, Illinois, on December 2, 2017, and December 17, 2017, respectively.
On January 24, 2019, McWhorter and Morris pleaded guilty in the District of Minnesota to federal charges that originated in both the District of Minnesota and the Central District of Illinois. The pleas to the charges originating in the Central District of Illinois were entered in Minnesota pursuant to Federal Rule of Criminal Procedure 20, which allows for the transfer of charges for the entry of guilty pleas and the imposition of sentence. The charges included intentionally obstructing, and attempting to obstruct, by force and the threat of force, the free exercise of religious beliefs; carrying and using a destructive device during and in relation to crimes of violence; possession of a machine gun; conspiracy to interfere with commerce by threats and violence; and attempted arson.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Allison Ethen and Timothy Rank for the District of Minnesota prosecuted the case, with valuable assistance provided by Trial Attorney Timothy Visser of the Civil Rights Division, Lead Paralegal Specialist Lynette Simser, Community Affairs Director Angie LaTour, former Assistant U.S. Attorneys John Docherty and Julie Allyn, Assistant U.S. Attorney Eugene Miller, of the Central District of Illinois, and the special agents of the FBI’s Minneapolis and Springfield Divisions, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bloomington Police Department, and the Bloomington Fire Department.
Three Florida Men Indicted for Rigging Bids and Defrauding the U.S. MilitaryRead the Press Release
Note: The defendants in this case, Lawrence O'Brien, Bruce LaRoche and Thomas Dailey, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in the Middle District of Florida returned an indictment, which was unsealed today, charging three Florida men with conspiring to rig bids for customized promotional products to the U.S. Army and charging two of them with conspiring to defraud the United States. Two of the men were arrested early this morning, and all three appeared in court for initial appearances this afternoon.
According to court documents, Lawrence O’Brien, Bruce LaRoche and Thomas Dailey conspired to eliminate competition among their companies and secure sales for a pre-arranged winner. To carry out this scheme, they exchanged their company’s bid templates and submitted bids to military customers on each other’s behalf.
“Bid-rigging and fraud schemes targeting the military will not be tolerated – they are an affront to competition and the American taxpayer,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Consistent with a whole-of-government approach, the Antitrust Division will continue working closely with our law enforcement partners and Procurement Collusion Strike Force to protect taxpayer funds from collusion and fraud.”
“This indictment is another example of our commitment to protecting the contracting process from those who attempt to rig the system in their favor,” said Special Agent-in-Charge Michael Curran of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office. “CID and our law enforcement partners will continue to protect the integrity of the contracting process.”
“Bid rigging is not a victimless crime; it cheats taxpayers out of the benefits of competition,” said Special Agent Paul Wachsmuth, Director of the Office of Procurement Fraud Investigations, U.S. Air Force Office of Special Investigations (OSI), Joint Base Anacostia-Bolling, D.C. “OSI is committed to working with the Antitrust Division and our law enforcement partners to hold companies and individuals accountable for practices that erode public trust and confidence in the government’s acquisition process.”
The indictment also alleges that LaRoche participated in a conspiracy to defraud the United States. According to the charge, LaRoche created shell companies, then he or his co-conspirators would submit sham bids from those companies. The bids appeared to be competitive because, for example, each listed a different salesperson, price or product description, despite the fact that all of the bids were drafted by the co-conspirators and the companies were owned or controlled by LaRoche. Additionally, the indictment alleges that O’Brien participated in a conspiracy with his own set of shell companies.
All three men are charged with violating the Sherman Antitrust Act. The maximum penalty for that charge is 10 years in prison and a $1 million criminal fine. LaRoche and O’Brien each face separate charges of conspiracy to defraud the United States. The maximum penalty for that charge is five years in prison and a $250,000 criminal fine.
The Antitrust Division’s Washington Criminal I Office is prosecuting the case, which was investigated with the assistance of the U.S. Army CID and U.S. Air Force OSI.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Defendants Sentenced on Drug and Firearms ChargesRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that three defendants have been sentenced in U.S. District Court in Lafayette, Louisiana, on drug and firearms charges.
Chief United States District Judge S. Maurice Hicks, Jr. sentenced two of the defendants as follows:
Desmond Francois, 32, of Houston, Texas, was sentenced to 120 months in prison, followed by 5 years of supervised release, for possession with intent to distribute cocaine. On May 11, 2017, officers with the Lafayette Police Department initiated a bus interdiction at the Greyhound Bus Station located in downtown Lafayette, Louisiana. Law enforcement officers boarded the bus and identified themselves and told the passengers the purpose of their stop. While searching the bus, officers observed that on row 6, there were two black backpacks on the floor, a silver purse, and a gray hoodie and phone on the seat. Directly above that seat was a red and black plaid bag. When all passengers re-boarded the bus and returned to their seats, row 6 remained empty. Officers asked all passengers if the items belong to anyone present and none claimed them. However, one of the passengers told the officer that he saw the male and female from row 6 run when they saw law enforcement boarding the bus. The male was later identified as Francois. Inside the backpack from row 6 was approximately ten kilograms of cocaine and a Greyhound bus ticket for passenger Desmond Francois. Further investigation confirmed that Francois was associated with a drug trafficking organization in the Houston area that has a history of drug trafficking in Louisiana.
This case was investigated by the U.S. Drug Enforcement Administration and Lafayette Police Department and was prosecuted by Assistant U.S. Attorney Jamilla A. Bynog.
Lionel Hill, Jr., 41, of Port Arthur, Texas, was sentenced to 60 months in prison, followed by 4 years of supervised release, on drug trafficking charges. Officers with the New Iberia Police Department stopped a vehicle being driven by Hill on May 6, 2021 for a traffic violation. Hill consented to a search of his person and officers located 50.6 grams of a substance containing fentanyl and 28.7 grams of a substance containing methamphetamine. Hill admitted to officers that he possessed the narcotics with the intent to distribute them. Lab reports later confirmed that the substance contained a detectable amount of fentanyl. On October 21, 2021, Hill pleaded guilty to possession with intent to distribute over 40 grams or more of a mixture or substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propanamide, a Schedule II narcotic controlled substance.
The case was investigated by the U.S. Drug Enforcement Administration and the New Iberia Police Department and was prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
United States District Judge David C. Joseph sentenced Jacob Wilson Zirlott, 39, of Franklin, Louisiana, to 70 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On June 19, 2017, officers with the St. Mary Parish Sheriff’s Office executed a search warrant on Zirlott’s residence. During their search, deputies located an AR-15 firearm in the living room, along with several magazines located next to the firearm and drug paraphernalia. Zirlott admitted that the gun belonged to him even though he was a convicted felon and knew he was prohibited from possessing any firearm. Zirlott has prior felony convictions for robbery in Florida (1999) and aggravated second degree battery in Louisiana (2010).
The case was investigated by the Homeland Security Investigations-U.S. Immigration and Customs Enforcement and the St. Mary Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney John W. Nickel.
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Temple Terrace Woman Sentenced to Two Years in Prison for Bank Fraud Involving COVID-19 Paycheck Protection ProgramRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Bridgitte Keim (52, Temple Terrace) to 24 months in federal prison for bank fraud. The Court also ordered Keim to forfeit $7,500, which was traceable to proceeds of the offense. Keim had pleaded guilty on January 5, 2022.
According to court documents, between April and May 2021, Keim defrauded a federally insured financial institution and the U.S. Small Business Administration (“SBA”) by submitting false and fraudulent loan applications and supporting documentation for federally guaranteed Payment Protection Program (“PPP”) loans that were designed to assist businesses suffering adverse economic effects from the COVID-19 pandemic. Keim recruited family members to provide their personal information in exchange for free “COVID money.” Keim prepared and submitted false and fraudulent PPP loan applications to the financial institution on behalf of her relatives in the names of fictitious businesses, knowing that her relatives did not have existing businesses, did not have employees, had no business income, and had no payroll expenses as required by the SBA to qualify for PPP loans. In furtherance of the scheme, Keim also impersonated the family members in communications with the financial institution.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the U.S. Small Business Administration – Office of Inspector General, and the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Tempe Man Sentenced to 48 Months for Importation of Fentanyl into the U.S.Read the Press Release
TUCSON, Ariz. – Charles King Jr., 49, of Tempe, Arizona, was sentenced yesterday by U.S. District Judge Scott H. Rash to 48 months in prison, followed by five years of supervised release. King Jr. previously pleaded guilty to importing fentanyl into the United States from Mexico.
On February 20, 2020, King Jr. entered the United States from Mexico through the DeConcini Nogales, Arizona port of entry. A Customs and Border Protection canine alerted to the vehicle that King Jr. was riding in, and officers discovered nearly 11 pounds of fentanyl carefully hidden in the drive shaft of the vehicle.
Customs and Border Protection completed the interdiction and Homeland Security Investigations - Nogales conducted the investigation. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-1559-TUC-SHR (BGM)
RELEASE NUMBER: 2022-041_King Jr.# # #
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.Syracuse Man Pleads Guilty to Possessing and Intending to Distribute 6 Kilograms of CocaineRead the Press Release
SYRACUSE, NEW YORK – Alexander Carrasquillo-Rosado, age 31, of Syracuse, pled guilty today to possessing and intending to distribute controlled substances. The announcement was made by United States Attorney Carla B. Freedman, Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, Thomas Fattorusso, Executive Special Agent in Charge, Internal Revenue Service – Criminal Investigation Division (IRS-CI), New York Field Office, and Kenton Buckner, Chief of Police, Syracuse Police Department.
As part of his plea, Carrasquillo-Rosado admitted that, on November 17, 2021, he possessed with intent to distribute six kilograms of cocaine found in his car and his house on that day.
At sentencing on August 17, 2022, Carrasquillo-Rosado faces a term of imprisonment of at least ten years and up to life, a post-incarceration term of supervised release of between five years and life, and a maximum fine of $10,000,0000. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the Syracuse Police Department. Investigative assistance was provided by the Drug Enforcement Administration (DEA), United States Border Patrol, and the Onondaga County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Stoneham Man Sentenced for Identity Theft and Fraud Related to COVID-19 Pandemic Unemployment AssistanceRead the Press Release
BOSTON – A Stoneham man was sentenced today for his involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance using stolen personal information.
Daniel Maleus, 34, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to three years in prison and three years of supervised release. Maleus was also ordered to pay restitution in the amount of $526,423. On Nov. 2, 2021, Maleus pleaded guilty to one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of aggravated identity theft.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts is administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits.
Between April 2020 and April 2021, Maleus filed and conspired with others to file over 50 fraudulent PUA claims using the stolen personal information of others. Maleus used email accounts that he created in the names of the victims and directed payments from the fraudulent claims to bank accounts that he controlled. Maleus and his co-conspirators obtained $526,423 in PUA funds from this scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Stockton Man Sentenced to over 4 Years in Prison for Unlawful Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Anthony West, 46, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to four years and nine months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 25, 2018, law enforcement officers obtained a warrant to search West’s residence. During that search, officers found a loaded .40 caliber Smith & Wesson pistol in West’s bedroom closet. Prior to the search, West had been convicted of six felony drug offenses.
This case was the product of an investigation by the Stockton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.
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.
Statement of United States Attorney Breon Peace Regarding New Federal Ghost Guns RuleRead the Press Release
In May 2021, the Justice Department’s Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) issued a proposed rule to curb the proliferation of ghost guns—privately made firearms that are increasingly being recovered at crime scenes across the United States. Ghost guns generally do not have a serial number placed on the frame or receiver of the firearm. As a result, law enforcement faces obstacles when trying to determine where, by whom, or when these deadly ghost guns were manufactured, and to whom they were sold or otherwise disposed.
Yesterday, following a thorough and extensive public comment period, the Department announced the final rule. We commend our law enforcement partners at ATF for this important, life-saving new rule. The U.S. Attorney’s Office for the Eastern District of New York will use every tool at its disposal—both criminal and civil—to eliminate the scourge of illegal guns across New York City and across the country.
St. Paul Man Sentenced to Prison for Making Threats Against U.S. RepresentativeRead the Press Release
ST. PAUL, Minn. – A St. Paul man has been sentenced to a year and a day in prison followed by two years of supervised release for threatening a U.S. Representative, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 11, 2021, Jason Robert Burham Karimi, 32, left a voicemail on the office telephone of a U.S. Representative located in California. The voicemail contained graphic threats of violence directed at the U.S. Representative. The U.S. Capitol Police reviewed the voicemail and traced the telephone number to Karimi. On January 12, 2021, agents arranged to meet with Karimi near his St. Paul residence. Karimi told agents that he works as a lobbyist for the marijuana industry and the voicemail was meant to cause “political pain” to the U.S. Representative’s political career. Karimi admitted that he knew the voicemail he left would be perceived as a threat.
On September 8, 2021, Karimi pleaded guilty to one count of interstate communication of a threat. He was sentenced earlier today by Senior U.S. District Judge Paul A. Magnuson.
This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police Department.
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Springfield Man Sentenced to 20 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for producing child pornography and distributing those images over the internet.
Dennis Tyler Murray, 32, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
On Oct 25, 2021, Murray pleaded guilty to one count of using a child to produce child pornography and one count of receiving and distributing child pornography.
On Sept. 29, 2020, law enforcement officers received three CyberTips from the National Center for Missing and Exploited Children after Google discovered multiple images of child pornography in Murray’s account. Murray had distributed the pornographic images of a 6-year-old victim to another user through Google Hangouts.
On Oct. 1, 2020, law enforcement officers executed a search warrant at Murray’s residence. Murray admitted he used his cell phone to take sexually explicit images of the child victim. Murray also admitted he sent some of those images through Google Hangouts. Officers seized Murray’s cell phone, which contained pornographic images of the child victim.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Springfield Man Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Darrell Lynn Ferguson, 57, was sentenced by U.S. District Judge M. Douglas Harpool to 13 years and one month in federal prison without parole.
On Oct. 6, 2021, Ferguson pleaded guilty to participating in a conspiracy to distribute methamphetamine from March 12 to June 6, 2018. According to court documents, the conspiracy was responsible for distributing at least 32 pounds (14.15 kilograms) of methamphetamine.
Ferguson was arrested on June 6, 2018, in Apache County, Arizona. Ferguson was transporting approximately three pounds of methamphetamine and one pound of marijuana from California to Missouri. Ferguson was convicted in state court in Arizona and incarcerated for almost 31 months until he was transferred to federal custody in this case.
On April 12, 2018, law enforcement officers executed a search warrant at the residence of co-defendant Donnie Ray Overton, 60, of Springfield. Officers found approximately 646 grams of pure methamphetamine. Overton admitted that he originally purchased two pounds of methamphetamine from Ferguson and had sold half a pound. The methamphetamine had been delivered to him by co-defendant Laurita Jane Simmons, 37, of Springfield.
Overton and Simmons each have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department and the Apache County, Arizona, Sheriff’s Department.
Spencer, Iowa Man to Federal Prison for Possession of Stolen MailRead the Press Release
A man who possessed stolen mail was sentenced on April 5, 2022, in federal court in Sioux City.
Tony Steece, 37, from Spencer, Iowa, pled guilty to three counts of possession of stolen mail on November 2, 2021.
At the plea hearing, Steece admitted that on November 26, 2020, he was in possession of three pieces of mail not addressed to him. Evidence further showed that on the morning of November 26, 2020, the Spencer Police Department responded to a citizen’s complaint that someone was stealing mail from a mailbox. Steece was caught with his hand in a mailbox and told police that he was returning mail. Steece then fled police when officers tried to arrest him on outstanding warrants, running multiple stop signs, driving 80-85 mph in a 25-mph zone while inside Spencer city limits, and driving 126 mph in a 65 mph outside of city limits. When apprehended, Steece admitted to stealing mail. At the time of Steece’s arrest, he had in his possession a number of other pieces of mail, including three checks worth more than $500 in total.
Steece has a lengthy criminal history, including the repeated and prolonged harassment of women that the sentencing court described as “disgusting” and “obnoxious.”
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Steece was sentenced to 48 months’ imprisonment and must serve a 3-year term of supervised release following imprisonment. There is no parole in the federal system. Steece remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was investigated by the United States Postal Inspection Service, the Spencer, Iowa Police Department, and the Dickinson and Clay County Sheriffs’ Offices. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4065. Follow us on Twitter @USAO_NDIA.
Sioux City, Iowa Man to Federal Prison for Illegal Possession of FirearmsRead the Press Release
A man who illegally possessed two firearms was sentenced April 8, 2022, to more than two years in federal prison.
Criston Nunez-Morris, 21, from Sioux City, Iowa, received the prison term after a November 22, 2021, guilty plea to being a prohibited person in possession of a firearm.
Evidence at the plea and sentencing hearings showed Nunez-Morris was an unlawful user of marijuana, cocaine, and ecstasy when he knowingly possessed two guns, along with ammunition. The guns were stolen. Nunez-Morris also admitted that he possessed the guns in connection with his felonious drug trafficking. At the time of Nunez-Morris’ arrest, he was in possession of cocaine, marijuana, ecstasy, and a digital scale.
Nunez-Morris was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Nunez-Morris was sentenced to 25 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system. Nunez-Morris is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City Police Department, Woodbury County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4024. Follow us on Twitter @USAO_NDIA.
Sedalia Man Sentenced for Murder for HireRead the Press Release
JEFFERSON CITY, Mo. – A Sedalia, Missouri, man has been sentenced in federal court for attempting to hire an undercover law enforcement agent to murder the victim in a pending statutory sodomy case.
Jon Mark Wilson, 58, was sentenced by U.S. District Judge Brian C. Wimes on April 5, 2022, to 10 years in federal prison without parole.
On Sept. 28, 2021, Wilson pleaded guilty to one count of the use of interstate facilities (the use of a cell phone and crossing state lines) in the commission of murder for hire. Wilson admitted that he paid $2,000 to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to murder his alleged victim in a separate state case. Wilson has been charged in Pettis County, Mo., with two counts of felony first degree statutory sodomy in a case that is still pending.
Wilson solicited another person in January 2019 to arrange the murder for him so that he could avoid prosecution in the Pettis County case. That person contacted law enforcement authorities and helped arrange a meeting with Wilson and the undercover agent. Wilson agreed to hire the undercover agent to murder the intended victim. During that meeting, according to court documents, Wilson told the undercover agent he wished he could have the victim’s mother killed as well, but he did not have the money. Wilson said he hoped the victim’s mother would be so distraught over her child’s death that she would kill herself.
On Jan. 22, 2019, Wilson drove from Sedalia to Kansas City, Kansas, to meet with the undercover agent. Wilson paid the undercover agent $2,000, made arrangements to pay another $5,000 after the murder, and gave him a photo of the intended victim. Wilson also went into the Cabela’s store and purchased 25 shotgun shells for the undercover agent to use in the murder. When Wilson left the area, he was stopped and arrested by a Missouri State Highway Patrol trooper.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Sedalia, Mo., Police Department.
Robert Morgan Pleads Guilty to Wire Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Morgan pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Evan Glaberson and Paul Parisi, who are handling the case, stated that Morgan was the manager of Morgan Ellison Heights LLC, which was the majority owner of Ellison Heights Apartments LLC. In September 2016, Morgan, along with one or more co-conspirators, caused ESL Federal Credit Union to issue a construction loan based on inaccurate information regarding the construction contract price. Morgan saw and was aware of documents reflecting inaccurate information and agreed, along with one or more co-conspirators, for that information to be submitted to ESL to obtain a larger amount of the construction loan than what would have otherwise been supported by the actual figures.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent-in-Charge Robert Manchak, Northeast Region.
Sentencing is scheduled for July 22, 2022, before Judge Wolford.
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Redding Woman Agrees to Plead Guilty to Lying to Federal Agents Regarding Kidnapping and Defrauding the VictimRead the Press Release
SACRAMENTO, Calif. — A Redding woman has signed a plea agreement admitting that she planned and participated in her own hoax kidnapping and agreeing to plead guilty to making materially false statements to FBI agents about the circumstances of her disappearance and committing mail fraud based on her being a kidnapping victim, U.S. Attorney Phillip A. Talbert announced today.
Sherri Papini, 39, of Redding, was charged in a criminal information filed today in the U.S. District Court with thirty-four counts of mail fraud and one count of making false statements. In a plea agreement, also filed today, Papini agreed to plead guilty to a single count of mail fraud and one count of making false statements. Papini was arrested on March 3 based on a criminal complaint filed that day.
The court has not yet scheduled a date for Papini to enter her guilty pleas.
This case is the product of an investigation by the FBI and the Shasta County Sheriff’s Office with assistance from the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorneys Veronica M.A. Alegría and Shelley D. Weger are prosecuting the case.
Papini faces a maximum statutory penalty of five years in prison and a fine up to $250,000 for making false statements to a federal law enforcement officer. She faces a maximum statutory penalty of 20 years in prison and a fine up to $250,000 for the count of mail fraud. 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Providence Health & Services Agrees to Pay $22.7 Million to Resolve Liability from Medically Unnecessary Neurosurgery Procedures at Providence St. Mary’s Medical CenterRead the Press Release
Walla Walla, WA – Providence Health & Services Washington (Providence) has agreed to pay $22,690,458 to resolve allegations that it fraudulently billed Medicare, Medicaid, and other federal health care programs for medically unnecessary neurosurgery procedures, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington and Bob Ferguson, the Washington State Attorney General. Today’s joint settlement between Providence, the United States, and the State of Washington, which administers Washington’s Medicaid program using a combination of state and federal funding, is the largest-ever health care fraud settlement in the Eastern District of Washington.
Providence is a large health care and hospital system that operates 51 hospitals in seven western U.S. states, including Providence St. Mary’s Medical Center (Providence St. Mary’s) in Walla Walla, Washington. Between 2013 and 2018, Providence St. Mary’s employed neurosurgeons identified in the Settlement Agreement as Dr. A and Dr. B. Providence St. Mary’s paid neurosurgeons based on a productivity metric that provided them a financial incentive to perform more surgical procedures of greater complexity. Between 2014 and 2018, Dr. A was one of the highest producing neurosurgeons in the entire Providence system. Between 2014 and 2017, based on the productivity metric, Providence paid Dr. A between $2.5 million and $2.9 million per year. Today’s settlement resolves allegations that Providence falsely billed Medicare, Washington State Medicaid, and other federal health care programs for deficient and medically unnecessary neurosurgery procedures performed by Dr. A and Dr. B.
“Ensuring that surgical procedures are medically appropriate and properly performed is critical to building safe and strong communities here in the Eastern District of Washington,” said U.S. Attorney Waldref. “Patients with back pain and spinal injury deserve top-notch care from a provider who puts the patient first and is not improperly influenced by how much he can bill for the procedure. Providence’s failure to ensure that Dr. A and Dr. B were performing safe and medically-appropriate surgery procedures, despite repeated warnings, put patients’ lives and safety at serious risk. I am also gravely concerned that Providence’s decision not to report Dr. A or Dr. B to federal or state medical oversight bodies allowed both surgeons to simply resign from Providence and then continue to endanger patients at other hospitals.”
As part of the Settlement Agreement, Providence admitted that, during the time period in which Dr. A and Dr. B were employed at Providence St. Mary’s as neurosurgeons, Providence medical personnel articulated concerns that Dr. A and Dr. B: (1) were endangering the safety of patients; (2) created through their surgeries an excessive level of complications and negative outcomes; (3) performed surgery on candidates who were not appropriate for surgery; and (4) failed to properly document their procedures and outcomes. Providence further admitted that Providence medical personnel articulated additional concerns that Dr. A: (1) completed medical documentation with falsified and exaggerated diagnoses in order to obtain reimbursement from insurance providers; (2) performed surgical procedures that did not meet the medical necessity requirements set by Medicare and other insurance programs; (3) “over-operated”, i.e., performed surgeries of greater complexity and scope than were medically appropriate; and (4) jeopardized patient safety by attempting to perform an excessive number of overly complex surgeries. Finally, Providence admitted that, while it eventually placed both Dr. B and Dr. A on administrative leave in February 2017 and May 2018, respectively, it allowed both doctors to resign while on leave, and did not take any action to report Dr. A or Dr. B to the National Practitioner Data Bank or the Washington State Department of Health.
As part of the settlement, Providence entered into a Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Providence implement and maintain a number of quality-of-care and patient safety obligations. Additionally, the CIA requires that Providence retain outside experts to perform annual claims and clinical quality systems reviews.
United States Attorney Waldref further stated, “While Providence’s conduct was extremely troubling, I do want to commend Providence for stepping up, accepting responsibility, taking appropriate and meaningful corrective action, and for fully cooperating with our investigation as well as agreeing to fully cooperate in our ongoing investigations. United States Attorney Waldref continued “I also want to express special appreciation for our close collaboration and partnership with the Washington Medicaid Fraud Control Division and with the whistleblower and his team, as well as the exceptional investigative work performed by HHS-OIG, Office of Personnel Management OIG, and Defense Criminal Investigative Service. We will continue to work closely with our state and federal law enforcement partners and with courageous whistleblowers to hold health care fraudsters accountable and to build safe and strong communities here in the Eastern District of Washington.”
“Patients trust their doctors that the care they receive is necessary, particularly when they are undergoing neurosurgery,” said Washington Attorney General Bob Ferguson. “Performing unnecessary surgeries for profit is a betrayal of that trust. I’m proud of the work we did with U.S. Attorney Waldref and our federal partners, and we look forward to continuing our work together to protect Medicaid dollars for those who need them.”
“Our agency will continue to hold accountable medical providers who perform medically unnecessary procedures and fraudulently bill federal health care programs,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to protecting the health of patients and the integrity of the taxpayer-supported programs serving them.”
“Patients must be able to trust that when providers recommend surgery it is because it is necessary, not because it is profitable,” said Amy K. Parker, Special Agent in Charge of the Office of Personnel Management’s Office of Inspector General. “I am grateful for the outstanding work of our agents and law enforcement partners who helped protect patients from harm.”
“This multi-million dollar settlement holds Providence and its former doctors accountable for dubious actions that endangered patient safety and defrauded various healthcare programs, including the Department of Defense’s TRICARE program,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working with its law enforcement partners in protecting the integrity of federal healthcare programs, which facilitates an environment for our healthcare providers to be truly focused on quality patient care and safety.”
According to court documents, the case began in January 2020, when a whistleblower, the former Medical Director of neurosurgery at Providence-St Mary’s, filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in January 2022, and subsequently reached this settlement. Pursuant to the settlement agreement, the relator will receive $4,197,734 of the total settlement amount.
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, the Defense Criminal Investigative Service, Seattle Field Office; and the Office of Personnel Management, Office of Inspector General, Western Regional Office. The United States Attorney’s Office would also like to express special thanks and appreciation for the logistical support provided by the Walla Walla Police Department. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
U.S. Attorney Waldref will be addressing the case at a press conference at 10:00 a.m. on April 12, 2022 in front of the Thomas Foley Federal Courthouse building at 920 W. Riverside Avenue, Spokane, Washington. She will be joined by Larissa Payne, Director of the Medicaid Fraud Control Division for the Washington State Attorney General’s Office.
final_providence_settlement_agreement_fully_executed.pdfProject Manager for Mechanical Contractor Admits Role in Change Order Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DON C. RICHARDS, 53, of Milford, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy charge stemming from his involvement in a construction project fraud scheme.
According to court documents and statements made in court, Richards was a senior project manager at a Massachusetts-based mechanical contractor. From November 2014 through February 2018, Richards conspired to defraud his employer and the project owners by inflating change orders on certain projects he was managing. As part of this conspiracy, a co-conspirator subcontractor, who was a principal of an insulation company, made payments to Richards and also for Richards’s benefit, including gift cards and funds for a golf club membership. Richards and the co-conspirator submitted inflated change orders to Richards’s employer to offset some of the costs of the payments the co-conspirator made to Richards.
Richards pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years. He has agreed to pay restitution in the amount of $396,966.
Richards was arrested on October 19, 2021. He is released on a $100,000 bond pending sentencing, which is scheduled for July 5.
This investigation is being conducted by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang, with assistance from the Department of Justice’s Antitrust Division, New York Office.
Physician Partners of America to Pay $24.5 Million to Settle Allegations of Unnecessary Testing, Improper Remuneration to Physicians and a False Statement in Connection with COVID-19 Relief FundsRead the Press Release
Physician Partners of America LLC (PPOA), headquartered in Tampa, Florida, its founder, Rodolfo Gari, and its former chief medical officer, Dr. Abraham Rivera, have agreed to pay $24.5 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for unnecessary medical testing and services, paying unlawful remuneration to its physician employees and making a false statement in connection with a loan obtained through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Certain PPOA affiliated entities are jointly and severally liable for the settlement amount, including the Florida Pain Relief Group, the Texas Pain Relief Group, Physician Partners of America CRNA Holdings LLC, Medical Tox Labs LLC and Medical DNA Labs LLC.
The United States alleged that PPOA caused the submission of claims for medically unnecessary urine drug testing (UDT), by requiring its physician employees to order multiple tests at the same time without determining whether any testing was reasonable and necessary, or even reviewing the results of initial testing (presumptive UDT) to determine whether additional testing (definitive UDT) was warranted. PPOA’s affiliated toxicology lab then billed federal healthcare programs for the highest-level UDT. In addition, PPOA incentivized its physician employees to order presumptive UDT by paying them 40% of the profits from such testing in violation of the Stark Law, which prohibits physicians from referring patients to receive “designated health services” payable to Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.
The United States further alleged that PPOA required patients to submit to genetic and psychological testing before the patients were seen by physicians, without making any determination as to whether the testing was reasonable and necessary, and then billed federal healthcare programs for the tests.
The United States further alleged that when Florida suspended all non-emergency medical procedures to reduce transmission of COVID-19 in March 2020, PPOA sought to compensate for lost revenue by requiring its physician employees to schedule unnecessary evaluation and management (E/M) appointments with patients every 14 days, instead of every month as had been PPOA’s prior practice. PPOA then instructed its physicians to bill these E/M visits using inappropriate high-level procedure codes. Moreover, the United States alleged that at the same time PPOA was engaged in this unlawful overbilling, PPOA falsely represented to the SBA that it was not engaged in unlawful activity in order to obtain a $5.9 million loan through the PPP. The settlement announced today resolves liability under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) arising from the false claims submitted to federal healthcare programs for the E/M visits as well for PPOA’s false statement in connection with its PPP loan.
“Billing federal healthcare programs for services that providers know are unnecessary or unreasonable undermines the quality of care that patients receive and increases the costs of these taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that healthcare providers base their treatment decisions on their patients’ needs rather than their own financial interests.”
“Holding healthcare providers accountable for inflated claims and false statements helps ensure the integrity of the healthcare system as a whole,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Settlements like this one are an important step in that direction.”
“Since the beginning of the pandemic, the SBA has been focused on providing relief swiftly, equitably and efficiently to millions of struggling small business owners – ensuring that relief has been distributed with the utmost integrity has been central to that mission under Administrator Guzman,” said General Counsel Peggy Delinois Hamilton for the SBA. “The SBA takes fraud seriously and will continue to make it our priority to work alongside the Office of the Inspector General to identify and address any potential fraud to ensure sound administration of relief programs.”
In connection with the settlement, PPOA also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Under the CIA, PPOA agreed to undertake significant compliance efforts, including: maintain a compliance department, medical director and oversight board; retain a compliance expert; provide management certifications; maintain written standards, training and education; obtain multiple annual claims reviews by an Independent Review Organization; establish a risk assessment and internal review process; and implement monitoring of testing referrals.
“When health care providers bill taxpayer-funded health care programs for medically unnecessary services, they divert government funds designed to assist business owners during this pandemic,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “Our agency will work with our law enforcement partners to thoroughly investigate health care fraud schemes.”
“This settlement allows OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return those funds to the Employees’ Compensation Fund,” said Director Christopher Godfrey of the Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP). “The Department of Labor’s Office of Inspector General, as well as various other agencies’ offices of inspector general (OIG), devote significant investigative resources to detecting cases of possible abuse within the FECA program, and this settlement demonstrates the commitment of the DOL and its OIG in helping to ensure that funds issued through the program are paid appropriately.”
“When actors within our health care system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” said Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work with our investigative partners to protect the funding entrusted to the Defense Health Agency that serves our military members and their families.”
“Veterans Affairs' Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Southeast Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds.”
“When providers submit false claims for medically unnecessary tests, they are not only violating their patients’ trust but also compromising the integrity of the Federal Employees Health Benefits Program (FEHBP),” said Special Agent in Charge Amy K. Parker of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “This settlement demonstrates the OPM OIG’s commitment to protecting patients from tests that are not medically reasonable or necessary and safeguarding the FEHBP from fraudulent claims.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donald Haight, Dawn Baker, Dr. Harold Cho, Dr. Venus Dookwah-Roberts and Dr. Michael Lupi, who are current or former employees of PPOA or its affiliated entities. 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 cases are captioned United States ex rel. Haight v. Physician Partners of Am.; United States ex rel. Baker v. Physician Partners of Am LLC; United States ex rel. Lupi v. Physician Partners of Am. LLC; and United States ex rel. Dookwah-Roberts v. Physician Partners of Am. LLC.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Middle District of Florida; HHS-OIG; VA OIG; DCIS; DOL OIG; and OPM 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).
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 prevent fraud by, among other methods, 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. Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The matter was handled by Senior Trial Counsel David W. Tyler of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Physician Partners of America to Pay $24.5 Million to Settle Allegations of Unnecessary Testing, Improper Remuneration to Physicians and a False Statement in Connection with COVID-19 Relief FundsRead the Press Release
Physician Partners of America LLC (PPOA), headquartered in Tampa, Florida, its founder, Rodolfo Gari, and its former chief medical officer, Dr. Abraham Rivera, have agreed to pay $24.5 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for unnecessary medical testing and services, paying unlawful remuneration to its physician employees and making a false statement in connection with a loan obtained through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Certain PPOA affiliated entities are jointly and severally liable for the settlement amount, including the Florida Pain Relief Group, the Texas Pain Relief Group, Physician Partners of America CRNA Holdings LLC, Medical Tox Labs LLC and Medical DNA Labs LLC.
The United States alleged that PPOA caused the submission of claims for medically unnecessary urine drug testing (UDT), by requiring its physician employees to order multiple tests at the same time without determining whether any testing was reasonable and necessary, or even reviewing the results of initial testing (presumptive UDT) to determine whether additional testing (definitive UDT) was warranted. PPOA’s affiliated toxicology lab then billed federal healthcare programs for the highest-level UDT. In addition, PPOA incentivized its physician employees to order presumptive UDT by paying them 40% of the profits from such testing in violation of the Stark Law, which prohibits physicians from referring patients to receive “designated health services” payable to Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.
The United States further alleged that PPOA required patients to submit to genetic and psychological testing before the patients were seen by physicians, without making any determination as to whether the testing was reasonable and necessary, and then billed federal healthcare programs for the tests.
The United States further alleged that when Florida suspended all non-emergency medical procedures to reduce transmission of COVID-19 in March 2020, PPOA sought to compensate for lost revenue by requiring its physician employees to schedule unnecessary evaluation and management (E/M) appointments with patients every 14 days, instead of every month as had been PPOA’s prior practice. PPOA then instructed its physicians to bill these E/M visits using inappropriate high-level procedure codes. Moreover, the United States alleged that at the same time PPOA was engaged in this unlawful overbilling, PPOA falsely represented to the SBA that it was not engaged in unlawful activity in order to obtain a $5.9 million loan through the PPP. The settlement announced today resolves liability under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) arising from the false claims submitted to federal healthcare programs for the E/M visits as well for PPOA’s false statement in connection with its PPP loan.
“Billing federal healthcare programs for services that providers know are unnecessary or unreasonable undermines the quality of care that patients receive and increases the costs of these taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that healthcare providers base their treatment decisions on their patients’ needs rather than their own financial interests.”
“Holding healthcare providers accountable for inflated claims and false statements helps ensure the integrity of the healthcare system as a whole,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Settlements like this one are an important step in that direction.”
“Since the beginning of the pandemic, the SBA has been focused on providing relief swiftly, equitably and efficiently to millions of struggling small business owners – ensuring that relief has been distributed with the utmost integrity has been central to that mission under Administrator Guzman,” said General Counsel Peggy Delinois Hamilton for the SBA. “The SBA takes fraud seriously and will continue to make it our priority to work alongside the Office of the Inspector General to identify and address any potential fraud to ensure sound administration of relief programs.”
In connection with the settlement, PPOA also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Under the CIA, PPOA agreed to undertake significant compliance efforts, including: maintain a compliance department, medical director and oversight board; retain a compliance expert; provide management certifications; maintain written standards, training and education; obtain multiple annual claims reviews by an Independent Review Organization; establish a risk assessment and internal review process; and implement monitoring of testing referrals.
“When health care providers bill taxpayer-funded health care programs for medically unnecessary services, they divert government funds designed to assist business owners during this pandemic,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “Our agency will work with our law enforcement partners to thoroughly investigate health care fraud schemes.”
“This settlement allows OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return those funds to the Employees’ Compensation Fund,” said Director Christopher Godfrey of the Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP). “The Department of Labor’s Office of Inspector General, as well as various other agencies’ offices of inspector general (OIG), devote significant investigative resources to detecting cases of possible abuse within the FECA program, and this settlement demonstrates the commitment of the DOL and its OIG in helping to ensure that funds issued through the program are paid appropriately.”
“When actors within our health care system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” said Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work with our investigative partners to protect the funding entrusted to the Defense Health Agency that serves our military members and their families.”
“Veterans Affairs' Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Southeast Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds.”
“When providers submit false claims for medically unnecessary tests, they are not only violating their patients’ trust but also compromising the integrity of the Federal Employees Health Benefits Program (FEHBP),” said Special Agent in Charge Amy K. Parker of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “This settlement demonstrates the OPM OIG’s commitment to protecting patients from tests that are not medically reasonable or necessary and safeguarding the FEHBP from fraudulent claims.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donald Haight, Dawn Baker, Dr. Harold Cho, Dr. Venus Dookwah-Roberts and Dr. Michael Lupi, who are current or former employees of PPOA or its affiliated entities. 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 cases are captioned United States ex rel. Haight v. Physician Partners of Am.; United States ex rel. Baker v. Physician Partners of Am LLC; United States ex rel. Lupi v. Physician Partners of Am. LLC; and United States ex rel. Dookwah-Roberts v. Physician Partners of Am. LLC.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Middle District of Florida; HHS-OIG; VA OIG; DCIS; DOL OIG; and OPM 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).
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 prevent fraud by, among other methods, 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. Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The matter was handled by Senior Trial Counsel David W. Tyler of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Owner of construction company and Puget Sound properties involved in illegal production of marijuana sentenced to 6 years in prisonRead the Press Release
Seattle – A 52-year-old Seattle-area man was sentenced today in U.S. District Court in Seattle to 6 years in prison for his schemes involving the illegal manufacturing of marijuana, announced U.S. Attorney Nick Brown. Raymond Ng engaged in conspiracies to facilitate illegal marijuana grows in residential neighborhoods, and to launder the proceeds through businesses and properties. At the sentencing hearing U.S. District Judge John C. Coughenour said “Ng continued his conduct after he had plenty of warning that it was criminal, and he was at risk.”
“Mr. Ng’s scheme was damaging to our community on many levels,” said U.S. Attorney Brown. “The illegal marijuana grows are at risk for electrical fires, drug rip-offs by other criminals, and mold and chemical contamination from the growing process. Violating Washington State law on marijuana production harms the regulated market. And buying homes with drug proceeds and converting them to grow houses hurts homebuyers trying to get a toehold in the real estate market.”
According to records filed in the case, Ng’s involvement in the illegal marijuana business appears to have begun as early as 2016, when he purchased a house near a Renton elementary school and rented it to an employee of his construction company to grow marijuana. The house was searched by law enforcement in June 2017, resulting in the seizure of 533 plants. This house was later sold by Ng, but on his seller disclosure statement he lied and said the house had not been used for drug manufacturing.
Despite the search of his property, Ng continued to help others illegally grow marijuana in residences around Seattle. He rented his own properties to illegal marijuana growers, and helped others buy properties that were used to illegally grow marijuana. When a grow was searched by law enforcement, Ng’s construction company would renovate the property, and his real estate company would help to sell it. Through these many services, Ng helped to spread illegal marijuana grows in Puget Sound neighborhoods.
“Illegal marijuana grows only serve to damage our community” said Inspector in Charge Anthony Galetti. “By circumventing Washington State’s law on legal marijuana we saw the home next door turned into an underground production facility. From fires caused by shoddy electrical wiring to pesticides and chemical running into local waters, these grows put the workers and our community in harm’s way. With Ng’s sentencing we hope this serves as a warning to all others, these grows are dangerous and have no place in our neighborhoods or in the U.S. Mail.”
Ng also conspired to launder drug proceeds, working with his co-conspirator to use illegal marijuana proceeds to pay for properties. Ng used his position as a successful businessman to lie to a mortgage company so that an employee of his construction business could purchase a house, which the employee then used to grow marijuana.
Ng’s girlfriend, Qifang Chen, 33, who was pregnant when she and Ng were arrested in this case, was also charged in the scheme. She was sentenced to six months of home confinement and three years of probation.
Ng has been in custody since his arrest in October 2020. As part of a larger investigation, law enforcement searched Ng’s home as well as dozens of other locations in Washington, Oregon and New York seizing 13,000 marijuana plants, more than 500 kilograms of processed marijuana, 20 firearms, and millions of dollars in cash and properties. At Ng’s home they seized more than $300,000 in cash, which Ng admitted were drug proceeds. Ng is forfeiting more than $750,000 as part of his sentence.
In asking for an 87-month sentence, prosecutors wrote to the court, Ng “used his successful business as a front to launder drug proceeds. He used his experience as a real estate agent to ease the purchase and sale of marijuana grow houses. And he used his position as the owner of businesses to lie to mortgage companies and the government. In many ways, it was precisely Ng’s professional accomplishments that allowed him to break the law.”
“Today’s sentencing is a testament to the dedication and hard work each and every member of the King County Sheriff’s Office invested in this case,” said interim King County Sheriff Patti Cole-Tindall. “When we work with the Department of Justice and other federal partners to combat trafficking and other criminal enterprises, communities throughout King County are safer.”
“Everyone has an obligation to abide by the laws at the federal, state, and local levels. When individuals like Mr. Ng and Ms. Chen choose to flout these laws for their own illegal enrichment, they betray the trust of their communities and the public,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “With our expertise in ‘following the money,’ IRS:CI is committed to working with our partners in law enforcement to bring criminals like these to justice.”
This case 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 case was investigated by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation (IRS-CI) and the King County Sheriff’s Office. The Drug Enforcement Administration (DEA), the FBI, and Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) assisted with the search warrants in October 2020.
The case is being prosecuted by Assistant United States Attorneys Nicholas Manheim and Stephen Hobbs.
Illegal marijuana growNorthrop Grumman Agrees to Pay the United States $35 Million for Cleanup Costs at Bethpage Site CostsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, and Karnig Ohannessian, Deputy Assistant Secretary of the Navy (Environment & Mission Readiness), announced today that Northrop Grumman has agreed to pay the United States $35 million for environmental cleanup costs incurred as a result of operations at the former Naval Weapon Industrial Reserve Plant (NWIRP) in Bethpage, New York, and adjacent facilities (Sites). The payment resolves a civil lawsuit brought by the United States against Northrop Grumman under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).
“This settlement compensates the United States for some of the enormous costs it has expended in connection with the cleanup of the former Naval Weapon Industrial Reserve Plant in Bethpage,” stated United States Attorney Peace. “The government’s remediation at the site restores natural resources, including land and groundwater in the area, and ensures public health and safety.”
A Consent Judgment setting forth the terms of the settlement provides that Northrop Grumman and the Navy will continue their respective remedial actions associated with the Sites and coordinate their cleanup efforts to benefit the public.
The proposed Consent Judgment will be lodged with the District Court for a period of at least 30 days, and notice of the Consent Judgment will be published in the Federal Register. This will afford members of the public the opportunity to submit comments on the Consent Judgment to the Department of Justice prior to it seeking court approval of the settlement.
The NWIRP was a government-owned, contractor-operated facility where Northrop Grumman’s predecessors (collectively “Grumman”) designed and manufactured aircraft for the Navy. Grumman also owned the adjacent approximately 500-acre former Northrop Grumman Bethpage Facility Site, which included an 18-acre property, now part of the Bethpage Community Park. Grumman used the Sites for industrial and research purposes from the late 1930s through1996. Manufacturing and disposal practices at the Sites resulted in contamination of the soil and groundwater with hazardous substances, including volatile organic compounds (VOCs), polychlorinated biphenyls (PCBs) and metals.
The Navy began conducting investigations and assessments at the NWIRP in 1986, and the cleanup is ongoing. The Navy continues to implement its remedial actions, including for treatment of contaminated groundwater.
The Navy’s remediation efforts include:
- Remediation of contaminated soils and shallow groundwater at the NWIRP through soil excavation, use of a vapor extraction system to remove TCE contamination from the soil, and placement of soil covers and land use controls;
- Design, implementation, operation and maintenance of onsite groundwater extraction wells and treatment systems to capture and treat VOCs before they migrate off property;
- Off-property groundwater capture and treatment of hotspots to reduce contaminant mass in the plume and limit downgradient migration;
- Additional treatment wells to intercept, as practicable, the southern extent of the site-related groundwater plumes;
- Installation of groundwater monitoring wells and long-term monitoring;
- Investigation and remediation of site-related 1-4 dioxane in the groundwater;
- Development and implementation of a public water supply protection program.
In addition to the costs associated with such Navy cleanup activities, since 2010, the United States has incurred costs under several consent judgments with local water districts whose water supply wells are potentially affected by the plumes to ensure their continued provision of safe drinking water.
The case was handled by Assistant United States Attorneys Kathleen Mahoney and Matthew Silverman from the United States Attorney’s Office for the Eastern District of New York, and by Richard Green, Assistant Director for Affirmative Environmental Claims, Office of General Counsel, Naval Litigation Office, Department of the Navy.
Additional information concerning the Navy’s cleanup and site-related public engagement activities can be found online at: http://go.usa.gov/DyXF. The Navy also maintains a public repository of site-related materials at the Bethpage Public Library, 47 Powell Avenue, Bethpage, New York 11714, (516) 931-3907.
E.D.N.Y. Docket No. 22-CV-2101
Nine Members and Associates of Nationwide Sex Trafficking and Prostitution Enterprise Indicted on Racketeering and Related ChargesRead the Press Release
Defendant Instructed Enforcer: “If She Dares Fight Back, Beat Her More Viciously. Get Some Results from the Beating.”
A 20-count indictment was unsealed today in federal court in Brooklyn variously charging Siyang Chen, Siyu Chen, also known as “Ban Ban,” Bo Jiang, Meizhen Song, also known as “Die Die,” Rong Rong Xu, also known as “Eleanor,” Jiarun Yan, also known as “Raymond Yan” and “Mike,” Jilong Yu, Carlos Cury and Zerong Tang with racketeering, sex trafficking, Hobbs Act robbery and violent assaults. The operation was based in Queens, New York, but carried out crimes throughout the United States, including in Hawaii, Kansas, Michigan, Missouri, Nebraska, New Hampshire, Oregon, Texas and Washington. Eight defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Roanne L. Mann.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants targeted vulnerable women for sex trafficking, and brutally assaulted the victims to enforce loyalty to the criminal enterprise. Human beings are not property, and the victims in this case, regardless of their immigration status, deserve to be free from violence and coerced sexual activity. It is our hope that today’s arrests will bring them some measure of justice for the horror that they have endured,” stated United States Attorney Peace. “This case is another example of our Office’s longstanding commitment to bringing to justice sex trafficking organizations that exploit and dehumanize victims for financial gain.”
“The conduct alleged today spells out years of abuse inflicted upon vulnerable women on behalf of those who orchestrated this nationwide sex trafficking and prostitution enterprise,” stated FBI Assistant Director-in-Charge. “Victims in this case should know the FBI’s Joint Asian Criminal Enterprise Task Force won’t tolerate the actions of those who offer the sexual activities of others in exchange for payment. If you’re a victim or have information to provide, we want to hear from you—regardless of your immigration status. Call us at 1-800-CALL-FBI or submit a tip online at tips.fbi.gov.”
“Our job is to ensure that anyone who would seek to profit through the abuse and exploitation of another human being be brought to justice swiftly and successfully,” stated NYPD Commissioner Sewell. “Today’s charges also further affirm the NYPD’s unwavering commitment to protecting the survivors of sex trafficking. To that end, I thank and commend the U.S. Attorney’s Office for the Eastern District and our partners at the FBI for their immeasurable support in building this critical case.”
As set forth in court filings, between April 2019 and September 2021, the defendants participated in a violent and organized racketeering enterprise, which operated a lucrative prostitution business throughout the United States. The enterprise recruited women, most of whom were from China and lacked legal status in the United States, to engage in prostitution for the enterprise. The victims were sometimes required to provide copies of their identification documents so that the defendants could maintain even more control over them. The enterprise arranged for the women to travel from New York to locations throughout the country, stay in hotels and enterprise-operated apartments for weeks at a time and engage in commercial sex. Members and associates of the organization collected money from the women and the organization then used those illicit proceeds to promote its sex trafficking and interstate prostitution activities — and enrich its members.
As alleged, between January 8, 2020 and September 1, 2021, members and associates of the enterprise directed and conducted more than 15 violent assaults of women across five states. The victims were Chinese women who the organization believed were providing commercial sex services on their own or for rival organizations. By committing these violent assaults, members of the organization sought to enforce discipline and believed their conduct would not be prosecuted because the victims were not U.S. citizens and were engaged in commercial sex work. Specifically, members and associates of the enterprise would direct individuals to pretend to be johns to gain access to their hotel rooms and, once inside, would restrain the women with zip-ties, beat them with hammers, bats and other blunt objects, and rob them. Members of the organization often encouraged increasingly severe beatings of the victims if the initial attack did not sufficiently injure them. In one phone message that was recovered by law enforcement, a member instructed the enforcer: “Beat [her] to death tomorrow. If she dares fight back, beat her more viciously. Get some results from the beating. Can’t waste the money.” In another recovered chat, a member advised, “One person choke her by her throat, the other person strike her four limbs to death. Definitely don’t make a sound. Beat her to the point where she can’t fight back.”
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Peace praised the outstanding investigative work of the FBI and the NYPD. This investigation was aided by law enforcement agencies throughout the country. Mr. Peace expressed his thanks to the United States Attorney’s Office for the District of Nebraska, as well as the Oklahoma City and Manchester field offices of United States Homeland Security Investigations and United States Immigration & Customs Enforcement. In addition, local police departments across the United States provided invaluable assistance, including the Beaverton (Oregon) Police Department, Michigan State Police, Missouri Highway Patrol, Oklahoma City (Oklahoma) Police Department, Omaha (Nebraska) Police Department, Overland Park (Kansas) Police Department, Portland (Oregon) Police Department, Southfield (Michigan) Police Department, and Troy (Michigan) Police Department.
The government’s case is being prosecuted by the office’s Organized Crime and Gangs and Civil Rights Sections. Assistant United States Attorneys Matthew R. Galeotti, Kayla C. Bensing and Sophia M. Suarez are in charge of the prosecution.
The FBI’s New York Joint Asian Criminal Enterprise Task Force believes this enterprise may be responsible for the assaults of even more commercial sex workers throughout the country. If you are a victim or have information to provide, there are several ways to contact the FBI: send a tip online at https://tips.fbi.gov/ or call 1-800-CALL-FBI. They have people ready to work with you in your native language, regardless of your immigration status. Please select English when prompted and ask the operator for a translator by stating your language of choice. Online tips may be submitted in any language. In an emergency, always call 911 for the police.
The Defendants:
SIYANG CHEN
Age: 32
Queens, New YorkSIYU CHEN, also known as “Ban Ban,”
Age: 24
Queens, New YorkBO JIANG
Age: 26
Queens, New YorkMEIZHEN SONG, also known as “Die Die,”
Age: 23
Dallas, TexasRONG RONG XU, also known as “Eleanor,”
Age: 29
Queens, New YorkJIARUN YAN, also known as “Raymond Yan” and “Mike,”
Age: 28
Queens, New YorkJILONG YU
Age: 23
Dallas, TexasCARLOS CURY
Age: 41
Queens, New YorkZERONG TANG
Age: 24
Queens, New YorkNewton Man Sentenced to 9 Years for Receipt of Child Sexual Abuse MaterialRead the Press Release
CONCORD - Anthony Rimas, 48, of Newton, was sentenced on Monday to 108 months in federal prison for receipt of child sexual abuse material, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in October 2020, law enforcement officers with the New Hampshire Internet Crimes Against Children Task Force (NHICAC) were conducting online investigations into individuals using digital applications that share images of child sexual abuse material. During the investigation, investigators uncovered evidence that Rimas received and possessed images and video files of child sexual abuse materials.
“Those who obtain and view child sexual abuse material are further victimizing the innocent children whose abuse is depicted in these images,” said U.S. Attorney Farley. “To protect young people from exploitation, we will continue to seek substantial penalties for those who commit crimes related to child sexual abuse material. Along with the New Hampshire Internet Crimes Against Children Task Force and our other law enforcement partners we are working tirelessly to hold these criminals accountable for their unlawful actions.”
Rimas previously pleaded guilty on September 2, 2021. After completion of his prison sentence, Rimas will be under 8 years of supervised release.
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force and the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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.
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New York Lieutenant Governor Brian Benjamin Charged with Bribery and Related OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jocelyn E. Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced today that BRIAN BENJAMIN, the Lieutenant Governor of the State of New York, was charged with bribery and related offenses. In particular, BENJAMIN is charged with bribery, honest services wire fraud, and conspiracy to commit those offenses, based on BENJAMIN’s use of his official authority while a New York state senator to direct a state-funded grant to an organization controlled by a real estate developer (“CC-1”) in exchange for campaign contributions made and procured by CC-1. BENJAMIN is also charged with two counts of falsifying records in connection with the preparation of contribution forms that falsely reported certain contributions made by CC-1 as being made by other individuals, and false statements BENJAMIN made in a questionnaire he submitted while seeking to become Lieutenant Governor. BENJAMIN surrendered to the FBI in Manhattan this morning and was presented before United States Magistrate Judge Ona T. Wang. The case has been assigned to United States District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “As alleged, Brian Benjamin used his power as a New York state senator to secure a state-funded grant in exchange for contributions to his own political campaigns. By doing so, Benjamin abused his power and effectively used state funds to support his political campaigns. My Office and our partners at the FBI and DOI will continue to ensure that politicians who put themselves over the public interest will be prosecuted.”
FBI New York Assistant Director-in-Charge Michael J. Driscoll said: “Exploiting one’s official authority by allocating state funds as part of a bribe to procure donations to a political campaign, and engaging in activity to cover up the bribe, is illegal. As we allege today, Benjamin’s conduct in this scheme directly circumvents those procedures put in place to keep our systems fair.”
DOI Commissioner Jocelyn E. Strauber said: “As charged, Lieutenant Governor Benjamin, while a New York State senator, used his official position to obtain donations to his political campaigns. He allegedly allocated public grant funds to a non-profit controlled by a co-conspirator in exchange for campaign contributions, and then lied to hide this illegal scheme. In so doing, he served his own interests at the expense of his constituents, a betrayal of the public trust and a violation of federal law. DOI stands with our law enforcement partners in the United States Attorney’s Office for the Southern District of New York and the FBI in the fight to expose and prevent corruption.”
According to the allegations in the Indictment[1] filed today in Manhattan federal court:
Overview
From at least in or about 2019, up to and including at least in or about 2021, BENJAMIN participated in a scheme to obtain campaign contributions from CC-1 in exchange for BENJAMIN’s use of his official authority and influence as a New York State senator to obtain a $50,000 state-funded grant (the “Grant”) for a non-profit organization controlled by CC-1 (“Organization-1”). BENJAMIN and others acting on his behalf or at his direction then engaged in a series of lies and deceptions to cover up his scheme, including by falsifying campaign donor forms, misleading city regulators, and providing false information on vetting forms he completed while seeking to be the Lieutenant Governor of New York State.
The Bribery Scheme
In or about March 2019, BENJAMIN met with CC-1, told CC-1 that he was running for the office of New York City Comptroller, and asked that CC-1 procure a number of small-dollar contributions from different individuals for that campaign (the “Comptroller Campaign”). CC-1 told BENJAMIN that CC-1 did not have experience bundling political contributions in that manner; that CC-1 focused CC-1’s fundraising efforts on Organization-1; and that CC-1’s ability to procure numerous contributions for BENJAMIN’s Comptroller Campaign was limited, including because potential donors from whom CC-1 was likely to solicit contributions were the same donors from whom CC-1 had solicited and intended to further solicit contributions for Organization-1. In response, BENJAMIN told CC-1, “Let me see what I can do.”
In or about February 2019, before the above-described meeting, BENJAMIN had formally requested funding from the Majority Leader of the New York State Senate for certain organizations and entities in his district, including another Harlem-based educational organization (“Organization-2”). Organization-1 was not on that list, even though BENJAMIN had been aware of Organization-1 and its educational work since at least 2018.
On or about May 30, 2019, the Senate Majority Leader and her staff informed certain senators, including BENJAMIN, that they had been awarded additional discretionary funding that each could allocate to organizations in their districts for specified purposes. That additional funding included, among other things, up to $50,000 that BENJAMIN could allocate to school districts, libraries, or non-profit organizations for educational purposes. BENJAMIN then called CC-1, told CC-1 he would be obtaining a $50,000 grant for Organization-1, and directed that the $50,000 be allocated to Organization-1. BENJAMIN chose not to allocate that funding to Organization-2, despite the fact that Organization-2 had not received the funding BENJAMIN requested in the February 2019 letter.
On or about June 19, 2019, the New York State senate approved a resolution that, among other things, allocated $50,000 to Organization-1. The following day, BENJAMIN sent a text message to CC-1 with a screenshot of the resolution and stated, among other things, “I will call to discuss!”
On or about July 8, 2019, BENJAMIN met with CC-1. CC-1 provided BENJAMIN with three checks totaling $25,000 made out to BENJAMIN’s New York State senate campaign (the “Senate Campaign”). Two of the checks were written in the names of relatives of CC-1 who did not share CC-1’s last name, and the third was written in the name of a limited liability corporation that CC-1 controlled (the “CC-1 LLC”). CC-1 made the contributions in the names of two other individuals and the CC-1 LLC to conceal any connection between CC-1 and the contributions. Because BENJAMIN had not yet filed a certification regarding his Comptroller Campaign with the New York City Campaign Finance Board (“CFB”), BENJAMIN could accept campaign contributions only to his senate campaign. As a state campaign, the senate campaign was not eligible for public matching funds available in New York City municipal races. BENJAMIN also gave CC-1 contributor forms to complete, and CC-1 completed them in BENJAMIN’s presence, signing the names of CC-1’s relatives. BENJAMIN reviewed and accepted the forms and contributions, even though he knew that the listed relatives were not in fact funding the contributions.
During the same meeting, BENJAMIN reminded CC-1 of the State Grant for Organization-1 and that BENJAMIN still expected CC-1 to procure numerous small contributions for his Comptroller Campaign. BENJAMIN later reminded CC-1 of his expectations again, including by presenting CC-1 with a novelty check representing the $50,000 at a fundraiser for Organization-1 held just one week before BENJAMIN became eligible to receive contributions for his Comptroller Campaign, and by calling CC-1 shortly thereafter to specify the kinds of contributions he needed.
Between October 2019 and January 2021, CC-1 obtained numerous contributions for BENJAMIN’s Comptroller Campaign, many of which were fraudulent (the “CC-1 Contributions”). BENJAMIN communicated with CC-1 about CC-1’s fundraising efforts during that period. BENJAMIN also communicated with his staff and advisors about CC-1’s fundraising efforts, and specifically described certain contributions as having been procured by CC-1. And BENJAMIN personally met with CC-1 on more than one occasion to receive some of the contributions CC-1 had purportedly collected from others.
Alleged Lies and Deception
Between 2019 up through and including the period of his application for and service as Lieutenant Governor of New York, BENJAMIN and others acting at his direction or on his behalf, engaged in a series of lies and deceptions in order to conceal the bribery scheme and BENJAMIN’s connection to CC-1.
In or about November 2019, the New York State Board of Elections (“BOE”) notified BENJAMIN’s senate campaign that it had failed to file certain forms required to identify owners of certain limited liability companies (“LLCs”) that had made contributions to the Senate Campaign. This included the LLC through which CC-1 had made a $5,000 contribution during the July 8, 2019, meeting. A member of BENJAMIN’s staff sent BENJAMIN an email listing LLCs requiring additional disclosures, specifically identifying the LLC used by CC-1 as being associated with CC-1, and asked BENJAMIN for help obtaining ownership information those LLCs. BENJAMIN responded to that email by asking, “What happens if someone refuses to provide the information?” Ultimately, BENJAMIN’s senate campaign provided the BOE with ownership information about certain LLCs, but not the LLC used by CC-1.
In or about February 2020, the CFB informed BENJAMIN’s Comptroller Campaign that certain of the CC-1 Contributions had been deemed ineligible for matching funds because, among other reasons, they were funded by sequentially-numbered money orders. In response, in or about July 2020, the Comptroller Campaign submitted to the CFB forms indicating that certain of the CC-1 Contributions had been procured by a particular individual (“Individual-1”), even though BENJAMIN knew the contributions had been procured by CC-1.
On or about January 4, 2021, a news outlet published an article raising questions about the legitimacy of certain contributions to BENJAMIN’s Comptroller Campaign, including certain of the CC-1 Contributions. The next day, BENJAMIN’s Comptroller Campaign submitted a misleading letter to the CFB stating there had been no reason to question the legitimacy of the contributions purportedly procured by Individual-1 in light of, among other things, Individual-1’s reputation in the community. At the time the letter was submitted, however, BENJAMIN knew that the CC-1 Contributions had in fact been procured by CC-1, not Individual-1.
On or about August 17, 2021, while being considered to be the next Lieutenant Governor of the State of New York, BENJAMIN submitted responses to an executive appointment questionnaire that contained questions addressing, among other things, BENJAMIN’s relationship with political contributors. Despite BENJAMIN’s efforts to procure $50,000 for Organization-1 and his solicitation of contributions from CC-1, BENJAMIN falsely stated, among other things, that he had never “directly exercised [his] governmental authority (either as a Legislator or Executive official) concerning a matter of a donor [he] directly solicited.” And approximately two hours after submitting his responses to that questionnaire, BENJAMIN called CC-1 for the first time in six months.
* * *
BENJAMIN, 45, of Harlem, New York, is charged with one count of federal program bribery, which carries a maximum sentence of 10 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit those offenses, which carries a maximum sentence of 5 years in prison; and two counts of falsification of records, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and DOI, and thanked the CFB for their assistance in this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Jarrod L. Schaeffer, Alison Moe, Tara La Morte, and David Abramowicz are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation. Where specific statements are described herein, they are described in substance and in part.
Nashville Man Sentenced to 15 Years in Federal Prison for Possession of A Stolen Firearm as a Convicted FelonRead the Press Release
NASHVILLE – Lee Allen Mayhew, 45, was sentenced today in U.S. District Court to 15 years in federal prison for possessing a stolen firearm while being a convicted felon, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
On February 5, 2018, Mayhew was arrested by officers with the Murfreesboro Police Department after he was found to be a passenger in a car stopped for a traffic violation. After producing identification for another person, Mayhew was arrested for criminal impersonation, and during a subsequent search of the vehicle, officers found a Sig Sauer rifle and ammunition in the trunk, which had previously been stolen in Robertson County, Tennessee. Mayhew later admitted that the rifle was his.
Mayhew pleaded guilty to the charge last month and was found at sentencing to be an armed career criminal, based on four prior convictions for residential burglary. Pursuant to the plea agreement, the 15-year sentence will run concurrently with any sentence received from charges pending in the state of Georgia, where Mayhew was charged in October 2020 with the murder of a 52-year-old woman, after breaking into her home and subsequently stealing her car. At the time of that incident, Mayhew was on pre-trial release from the firearms charge in Tennessee and had failed to appear for a hearing the week before.
Mayhew will be transferred to the State of Georgia at a later date for further proceedings.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Murfreesboro Police Department. Assistant U.S. Attorney Juliet Aldridge prosecuted the case.
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Montgomery County and Florida Women Convicted of Conspiring to Access Company Computers for MoneyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Frances Marie Eddings, 68, of Orlando, FL, and Jude Denis, 54, of Wyncote, PA, were convicted after trial in the Allentown Federal Courthouse of accessing a computer system without authorization for pecuniary gain from a non-profit charity organization.
In September 2019, the defendants were charged with one count of conspiracy, three counts of unauthorized access to a computer, and aiding and abetting, stemming from their scheme to receive a payment of money from the Prostate Cancer Foundation (PCF), Denis’ former employer. In support of that scheme, they accessed internal documents obtained via unauthorized access to the computer system of PCF and threatened to release them to the public. Denis was hired by PCF in August 2014 but left her position shortly thereafter.
Evidence presented at trial showed that on several occasions over the course of several days after Denis left her employment, PCF computers were accessed, and documents were downloaded to her laptop and emailed to Eddings. In a series of emails sent by Eddings to PCF, the defendants demanded a payment of $150,000 in lost wages for Denis, as well as a $37,500 payment for Eddings for acting on Denis’ behalf. In those emails, Eddings threatened to release the documents to the public if their demands were not met. When their demands were ultimately not met, Eddings sent a series of emails to the PCF Board, PCF donors, and members of the media, sharing her previous correspondence and attaching the documents.
“Cyber-intrusion is a threat to all types of businesses, including non-profits,” said U.S. Attorney Williams. “Individuals who take advantage of a company’s vulnerability like these defendants did shows how easily sensitive information can be compromised. However, the defendants didn’t count on how decisively our Office would respond by holding them accountable for their illegal actions.”
“It should go without saying that committing cyber intrusions to settle a score is an incredibly bad idea,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Denis wanted payback from the nonprofit for its perceived unfairness and her friend Eddings was on board to help. Their short-sighted scheme has brought serious consequences, as evidenced by these convictions. The FBI is committed to tracking down and holding accountable cyber criminals, whatever their motivation for willfully breaking the law.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Alison Kehner and Kishan Nair.
Money Launderer Previously Extradited from Spain Sentenced to Five Years in PrisonRead the Press Release
BOSTON – A Dominican national was sentenced on Friday, April 8, 2022, in federal court in Boston for his role in a money laundering conspiracy.
Jose Ernesto Pujols, 47, was sentenced by U.S. District Court Judge Patti B. Saris to five years in prison. In July 2021, Pujols pleaded guilty to one count of conspiracy to launder money and one count of money laundering.
In March 2011, investigators identified foreign banks accounts involved in a larger drug and money laundering investigation of targets in the United States and Colombia. Undercover agents communicated with Pujols and arranged a meeting at a restaurant in Woburn to pick up drug proceeds for wiring to these foreign bank accounts. On March 2, 2011, Pujols arrived at the meeting location and provided the undercover agents with approximately $100,000 in drug proceeds.
In May 2011, Pujols was indicted by a federal grand jury in Boston. Pujols was subsequently located in Spain and arrested by Spanish authorities in September 2019. Pujols was held in Spanish custody and extradited to the United States in March 2021.
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. Special assistance was provided by the Massachusetts State Police and the Bedford Police Department. Assistant U.S. Attorneys Neil J. Gallagher and Stephen W. Hassink of Rollins’ Criminal Division prosecuted the case.
Mexican Man Sentenced to over 3 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Mexican citizen was sentenced to 40 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
Martin Ruiz-Amayo, 41, was sentenced in U.S. District Court today. In addition to his term of imprisonment, he was ordered to pay $5,100 in fines and special assessment, and to serve 3 years of supervised release after completion of his prison sentence. Additionally, after completion of his prison sentence, Ruiz-Amayo will be subject to removal proceedings by the U.S. Department of Homeland Security
Ruiz-Amayo pleaded guilty and was convicted of the offense on November 4, 2021.
According to court records, on June 3, 2021, the Homeland Security Investigations, Border Enforcement Security Task Force (BEST) and Jones County Sheriff’s Office agents conducted a controlled purchase from Ruiz-Amayo, for approximately one ounce of methamphetamine for $800 in Laurel, Mississippi. Ruiz-Amayo said he could provide additional meth at lower prices and noted the quality of the methamphetamine.
Record checks revealed that Ruiz-Amayo is an alien who is unlawfully present in the United States with a prior removal history. Ruiz-Amayo also has been known as Martin Ruiz.
The case was investigated by Homeland Security Investigations and the Jones County Sheriff’s Department. The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Mexican Man Sentenced for Unlawful Return After RemovalRead the Press Release
Gulfport, Miss. – A Mexican national was sentenced for unlawful return after deportation or removal, announced U.S. Attorney Darren J. LaMarca and Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector.
Fernando Hernandez-Zavala, 39, of Mexico, was sentenced to “time served” (effectively 6 months and 7 days). Hernandez-Zavala also was sentenced to one year of supervised release upon release from prison. He is subject to removal proceedings by the U.S. Department of Homeland Security to remove him from the U.S. and return him to his home nation of Mexico. Hernandez-Zavala pleaded guilty and was convicted of this federal offense on January 12, 2022.
According to court documents, Hernandez-Zavala was arrested on October 8, 2021, on Interstate 10 in Harrison County. A Harrison County Sherriff’s Department Interdiction Patrol Deputy conducted a vehicle stop near Mile Marker 29 on Interstate 10 eastbound for speeding.
The passenger in the vehicle was identified as Fernando Hernandez-Zavala, a citizen and national of Mexico with no legal right to enter or remain in the United States. Record checks revealed that he had been lawfully removed from the United States in 2004 and again in 2010.
The case was investigated by the U.S. Border Patrol and the Harrison County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for this case.
Massachusetts Man Sentenced for Transporting Child PornographyRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in federal court for transporting child pornography, U.S. Attorney Darcie N. McElwee announced.
Chief U.S. District Judge Jon D. Levy sentenced Daniel Stasiak, 44, to six years in prison to be followed by seven years of supervised release. Stasiak pleaded guilty on September 23, 2021.
According to court records, while present in Maine, Stasiak sent a video of a minor engaged in sexually explicit conduct over the Kik messaging app. Among the recipients of the video was an undercover law enforcement officer in Winnebago County, Wisconsin. The video depicted a child appearing to be four to six years old.
The FBI and the Winnebago County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report an incident involving the possession, distribution, receipt, or production of child pornography, file a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, please call 911 or contact your local police or sheriff’s department.
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Maryland man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alexander Michael Ryan Myers, of Hagerstown, Maryland, was sentenced today to 10 months of incarceration for his role in a firearms trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Myers, 23, pleaded guilty in November 2021 to one count of “Conspiracy.” Myers admitted to working with others to purchase, possess, and transfer firearms to persons who couldn’t legally purchase or possess firearms. The crimes took place in March and April 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge Gina M. Groh presided.