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2 February 2022
Bridgeport Gang Member Involved in 2 Shootings Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
JACQUON BENEJAN, also known as “Blick,” 20, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 97 months of imprisonment, followed by three years of supervised release, for offenses stemming from his membership in a violent Bridgeport street gang.
Today’s announcement was made by Leonard C Boyle, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Benejan has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. From approximately 2017 until August 2020, GHB/Hotz members had been aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
The investigation revealed that on February 7, 2018, Benejan and an associate shot and attempted to kill “MJ,” a member or associate of the 150 gang. On October 4, 2018, he and an associate shot and attempted to kill “MS,” a member or associate of the East End gang, inside the Greene Homes housing complex. In both of these shootings, innocent bystanders in their homes were either wounded or nearly wounded by stray bullets.
Benejan also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang.
Law enforcement also made controlled purchases of narcotics from Benejan. On March 13, 2020, a court-authorized search of Benejan’s residence revealed two firearms and crack cocaine.
Benejan has been detained since February 19, 2021. On September 17, he pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn C. Kaoutzanis, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Man Pleads Guilty to Heroin, Fentanyl and Gun OffensesRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with heroin and fentanyl distribution and unlawful possession of firearms and ammunition.
Anthony Howard, 34, pleaded guilty to one count of possession with intent to distribute and distribution of heroin, one count of possession with intent to distribute fentanyl and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 25, 2022. Howard was arrested and charged in August 2021.
This case arose from a series of controlled purchases of heroin and fentanyl from Howard by a cooperating witness. On July 20, 2021, Howard sold a cooperating witness over 32 grams of heroin. A search of Howard’s apartment on Aug. 5, 2021, resulted in the seizure of approximately 24.52 grams of fentanyl; drug distribution paraphernalia; and several firearms, including a Glock 9mm handgun loaded with a drum magazine capable of 50 round capacity and containing 15 rounds of 9mm ammunition.
Federal law prohibits Howard from possessing a firearm or ammunition due to prior felony convictions. Additionally, at the time of the offenses, Howard was on state pre-trial release for a 2014 indictment for murder, armed assault to murder and illegal firearm possession, amongst other charges, in connection with a shooting of multiple victims. On Nov. 15, 2021, Howard was convicted on several charges in this matter and sentenced to 18 to 20 years in state prison.
The charges of distribution and possession with intent to distribute heroin and possession with intent to distribute fentanyl each provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
First United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was provided by the Suffolk County District Attorney’s Office. Assistant U.S. Attorney John Dawley of the 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.
Bangor Woman Sentenced for Drug OffensesRead the Press Release
BANGOR, Maine: A Bangor woman was sentenced today in federal court for maintaining a drug-involved premises and distributing fentanyl, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge John A. Woodcock, Jr., sentenced Brenda J. Shaboski, 65, of Bangor, to a term of 12 months and one day of imprisonment to be followed by three years of supervised release. Shaboski pleaded guilty on July 19, 2021.
According to court records, Shaboski owned 1702 Union Street in Bangor, a residence referred to locally as “the farm.” From June through December 2020, the location was used by Shaboski and others to buy, sell, and use heroin, fentanyl and cocaine base. Individuals renting from Shaboski or staying at her house sold and used drugs, and the vehicle and visitor traffic to the location was primarily drug related. The residence was used by drug distributers as a location to “cook” powder cocaine into crack. In March 2021, Shaboski also arranged fentanyl sales from her home.
In imposing the sentence, Judge Woodcock told the defendant, “There is no way to overstate the impact of these poisonous and addictive substances on this country and on Maine in particular.” The Court noted that Shaboski “had encouraged what amounts to a virus in the body politic of this community” with the “staggering amount of illegal drugs” involved at her home.
The U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Maine Drug Enforcement Agency investigated the case. The Financial Litigation Unit of the U.S. Attorney’s Office will receive $23,372 in sale proceeds resulting from the forfeiture of Shaboski’s residence.
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Attorney General Merrick B. Garland announces Justice Department strategy to combat human traffickingRead the Press Release
ATLANTA - U.S. Attorney General Merrick B. Garland today released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
“Human trafficking is an insidious crime,” said Attorney General Merrick B. Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“Our team is proud to work alongside our many committed law enforcement and community partners – including federal and state law enforcement agencies, non-profit organizations, and community leaders – to combat the scourge of human trafficking,” said U.S Attorney Kurt R. Erskine. “We continue to draw on these critical resources to vigorously prosecute those who commit these crimes, as well as to mobilize resources to aid, support, and help trafficking victims in our district.”
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Attorney General Merrick B. Garland announces Justice Department strategy to combat human traffickingRead the Press Release
Seattle – U.S. Attorney General Merrick B. Garland has released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“The Western District of Washington has been at the forefront of the fight against human trafficking since 2004, when the U.S. Attorney’s Office convened the Washington Advisory Committee on Trafficking (WashACT) in partnership with the Seattle Police Department and the International Rescue Committee of Seattle,” said U.S. Attorney Nick Brown. “Thanks to grants made to our partners by the Department of Justice’s Office for Victims of Crime and Bureau of Justice Assistance, WashACT has served as a model of a multi-disciplinary, collaborative, victim-centered task force. WashACT remains focused on its mission of ensuring that victims of trafficking receive all resources available to them and that human traffickers are identified, investigated, and prosecuted to the utmost extent of the law. We will continue advancing the goals set forth in the Attorney General’s National Strategy to Combat Human Trafficking.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination, and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human Trafficking; Southern District of California a National Leader in Human Trafficking ProsecutionsRead the Press Release
Director of Media Relations Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – February 2, 2022
SAN DIEGO – U.S. Attorney General Merrick B. Garland has released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department’s National Strategy is expansive in scope. It aims to enhance the department’s capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
The Southern District of California is proud to be a leader in the fight against human trafficking. Since the enactment of the Trafficking Victims Protection Act in 2000, the Southern District has prosecuted more defendants than any other district in the country -- as of January 2021, 262 defendants in 93 separate cases. The Southern District continues to be a national leader in all types of human trafficking prosecutions, ranging from child-sex trafficking to forced labor trafficking to sex trafficking of adults by force, fraud, or coercion.
Recognizing that, sadly, San Diego is a national hub for domestic minor sex trafficking, the U.S. Attorney’s Office prosecutes individuals who profit from the sexual exploitation of children to the fullest extent of the law, and routinely obtains significant custodial time for those defendants. Recent prosecutions underscore the office’s commitment to justice for victims of these sometimes unseen crimes, including labor trafficking charges against individuals from Imperial Valley Ministries (U.S. v. Gonzalez, et al., 19-CR-3255-BTM), who coerced dozens of mostly homeless individuals to surrender welfare benefits and compelled them to panhandle up to nine hours a day, six days a week, for the financial benefit of church leaders, and charges against the operators of the website “Girls Do Porn,” (U.S. v. Pratt, et al., 19-CR-4488-JLS), who participated in a nationwide scheme that duped and coerced women into making pornography.
“The U.S. Attorney’s Office also routinely works with its state and local partners to provide assistance and justice for survivors and participates in trainings that assist the community in recognizing and stopping human trafficking,” said U.S. Attorney Randy Grossman. “We are grateful to our fantastic Human Trafficking Task Force, and our federal, state, and local partners for sharing this challenging work with us. I am proud of our office’s commitment to holding traffickers accountable, and attempting to provide a better future for victims, and I am proud that we continue to be a leader in this fight.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
• Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
• Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
• Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
• Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
• Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
• Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
• Expand dissemination of federal human trafficking training, guidance and expertise.
• Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
Department Strategy Supports National Action Plan to Combat Human Trafficking
On Monday, U.S. Attorney General Merrick B. Garland released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“This national strategy will enhance the important work that is already being done in New Hampshire to combat human trafficking,” said U.S. Attorney John J. Farley. “Through the New Hampshire Human Trafficking Collaborative Task Force, we work closely with a broad coalition of entities to address human trafficking using a victim-centered, trauma-informed, and culturally-responsive approach. This joint effort is not just focused on prosecuting human traffickers. It is a comprehensive approach that includes training citizens to identify victims of human trafficking and providing victims with the assistance they need to escape from harmful situations and rebuild their lives.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
For more information about the New Hampshire Human Trafficking Collaborative Task Force, please visit: https://www.nhhumantraffickingtaskforce.com/
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Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
ALBUQUERQUE, N.M. -- U.S. Attorney General Merrick B. Garland on Jan. 31 released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“The department’s national strategy helps to strengthen our efforts to combat human trafficking here in New Mexico,” said Fred J. Federici, United States Attorney for the District of New Mexico. “We have always prioritized human trafficking, including working collaboratively with state, local and tribal investigators to identify and prosecute to the fullest extent of the law the perpetrators of these heinous crimes. The U.S. Attorney’s Office worked with the FBI to form a new Child Exploitation and Human Trafficking task force in 2020, comprised of the FBI, Bernalillo County Sheriff’s Office, Albuquerque Police Department and investigators from the 2nd Judicial District Attorney’s Office.
“Our staff has worked to educate the public on such topics as the indicators of human trafficking and manipulation tactics by traffickers. In addition to having a fulltime coordinator for Missing and Murdered Indigenous Persons, our staff has performed presentations in tribal communities specific to human trafficking and DOJ initiatives that promote public safety in Indian Country. We’ve also worked with our tribal partners to develop Tribal Community Response Plans. This national strategy helps us to increase these efforts across all communities in New Mexico.”
The New Mexico Human Trafficking Task Force is led by the New Mexico Attorney General’s Office and service provider organization The Life Link. This task force is federally funded through the Bureau of Justice Assistance and provides training throughout the state with both law enforcement agencies and service provider organizations.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
PROVIDENCE -- U.S. Attorney General Merrick B. Garland this week released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“Stopping the trafficking and exploitation of our most vulnerable will always be a significant priority in District of Rhode Island,” said United States Attorney Zachary A. Cunha, “and doing that effectively means coordinating closely with our state and local law enforcement partners, as well as with advocacy groups to provide training, share resources and develop best practices- to both quickly and effectively prosecute traffickers, and to support their victims.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
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Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
St. Thomas, USVI - U.S. Attorney General Merrick B. Garland today released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
"Human trafficking is an insidious crime," said Attorney General Garland. "Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight."
"The investigation and prosecution of human trafficking crimes is one of the Department’s highest priorities. Federal law enforcement and prosecutors remain relentless in our efforts to bring traffickers to justice and to seek justice for the victims of these crimes," said United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
• Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
• Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
• Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
• Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
• Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
• Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
• Expand dissemination of federal human trafficking training, guidance and expertise.
• Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
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Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
WASHINGTON, D.C. - U.S. Attorney General Merrick B. Garland this week released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“We are taking a more proactive approach to combat human trafficking in West Virginia than ever before through the use of technology and via partnerships with law enforcement,” said United States Attorney Ihlenfeld. “This new strategy will allow us to help more victims and to prosecute more offenders.”
“We have joined forces across the state to protect our citizens from human traffickers,” said United States Attorney Will Thompson. “Investigators, prosecutors, victim advocates and non-governmental service providers are working together through the West Virginia Human Trafficking Task Force to raise awareness about human trafficking, investigate and prosecute human trafficking cases and support survivors.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To learn more about the West Virginia Human Trafficking Task Force, go to www.stophumantraffickingwv.org.
To read the National Strategy to Combat Human Trafficking click here.
Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
Department Strategy Supports National Action Plan to Combat Human Trafficking
CHARLESTON, W.Va. -- U.S. Attorney General Merrick B. Garland this week released the
Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for
Victims of Trafficking Act.Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat
Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's
National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“We have joined forces across the state to protect our citizens from human traffickers,” said
United States Attorney Will Thompson. “Investigators, prosecutors, victim advocates and non-governmental service providers are working together through the West Virginia Human
Trafficking Task Force to raise awareness about human trafficking, investigate and prosecute human trafficking cases and support survivors.”“We are taking a more proactive approach to combat human trafficking in West Virginia than ever before through the use of technology and via partnerships with law enforcement,” said United States
Attorney Ihlenfeld. “This new strategy will allow us to help more victims and to prosecute more offenders.”Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
▪ Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
▪ Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
▪ Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
▪ Enhance initiatives to reduce vulnerability of American Indians and Alaska
Natives to violent crime, including human trafficking, and to locate missing children.
▪ Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
▪ Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
▪ Expand dissemination of federal human trafficking training, guidance and expertise.
▪ Advance innovative demand-reduction strategies.The department’s strategy will be implemented under the direction of the National Human Trafficking
Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To learn more about the West Virginia Human Trafficking Task Force, go to www.stophumantraffickingwv.org.To read the National Strategy to Combat Human Trafficking click here.
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Attorney General Merrick B. Garland Announces Justice Department Strategy to Combat Human TraffickingRead the Press Release
LAS VEGAS – This week, U.S. Attorney General Merrick B. Garland released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Department's National Strategy is expansive in scope. It aims to enhance the Department’s capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“Stopping human trafficking requires a joint law enforcement and community effort,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working alongside our federal, state, local, and tribal agency partners, our office will continue prioritizing the prosecution of those who prey upon and exploit vulnerable people, such as marginalized youth, refugee and migrant workers, and survivors of domestic violence. We will also deploy our combined resources to raise awareness across Nevada communities and to help get survivors on the road to recovery.”
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance and expertise.
- Advance innovative demand-reduction strategies.
The Department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or text 233733.
To read the National Strategy to Combat Human Trafficking click here.
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Apollo Man Charged with Meth PossessionRead the Press Release
PITTSBURGH, PA - One resident of Apollo, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named James D. Higgins, age 42, formerly of Apollo, PA 15613, as the sole defendant.
According to the Indictment, on June 17, 2021, Mr. Higgins was found to be in possession of 50 grams or more of methamphetamine, a Schedule II controlled substance.
The law provides for a total sentence of not less than ten years in prison, a fine of not more than $10,000,000, and a term of supervised release of at least five years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Drug Enforcement Agency conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
1 February 2022
Woman Pleads Guilty to Misappropriating Funds for Care of COVID-19 PatientsRead the Press Release
A Michigan woman pleaded guilty today in the Eastern District of Michigan to stealing government funds that were designed to aid medical providers in the treatment of patients suffering from COVID-19 and using them for her own personal expenses.
According to court documents, Amina Abbas, 36, of Taylor, admitted that she previously owned 1 on 1 Home Health (1 on 1), a home health agency in LaPorte, Indiana, which she had closed in early 2020. 1 on 1, which was never operational during the pandemic, received approximately $37,657 designated for the medical treatment and care of COVID-19 patients. Abbas admitted that she stole the funds by issuing checks to her family members for personal use, rather than using the funds in conjunction with pandemic relief efforts as required.
Abbas pleaded guilty to one count of theft of public money. She is scheduled to be sentenced on May 19, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The charges against Abbas were the first criminal charges for the intentional misuse of funds distributed from the CARES Act Provider Relief Fund, money specially apportioned by the CARES Act to help health care providers who were financially impacted by the COVID-19 pandemic, to provide care to patients who were suffering from COVID-19, and compensate providers for the cost of that care. These funds were critical to providing relief to health care providers and maintaining access to medical care during the pandemic.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Dawn N. Ison for the Eastern District of Michigan, Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG’s) Chicago Region, and Acting Special Agent in Charge Josh Hauxhurst of the FBI’s Detroit Field Office made the announcement.
Trial Attorneys Emily Gurskis and Jay McCormack of the Criminal Division’s Fraud Section are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the department 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.
Waterloo Woman Who Used Marijuana and Possessed Guns Found Guilty at TrialRead the Press Release
A woman who possessed firearms while being a user of marijuana was convicted by a jury today after a three-day trial in federal court in Cedar Rapids.
Allyssa Stovall, age 23, from Waterloo, Iowa, was convicted of being a drug user in possession of firearms. The verdict was returned this afternoon following less than two hours of jury deliberations.
The evidence at trial showed that, in July 2020, Stovall purchased two firearms, a Ruger 9mm pistol and a SCCY Industries 9mm pistol, from Scheels in Cedar Falls and Mr. Guns in Waterloo. She continued to possess the firearms until law enforcement officers seized them on July 22, 2021. During this time, Stovall was also a user of marijuana. Stovall posted photographs on public social media of her holding a marijuana blunt and spoke about her marijuana use during a recorded telephone call. Law enforcement also encountered Stovall in February 2021, after she drove her car into a snowbank. During this encounter, officers smelled the odor of marijuana from Stovall’s vehicle and eventually located marijuana throughout the vehicle. Finally, officers located marijuana and other items of drug paraphernalia during a search of Stovall’s apartment in July 2021.
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.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Stovall was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Stovall faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and the Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2060.
Follow us on Twitter @USAO_NDIA.
Tyler County man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Shirl Norman Baker, III, of Paden City, West Virginia, was indicted today on drug charges, United States Attorney William Ihlenfeld announced.
Baker, 42, was indicted today on one count of “Distribution of 5 Grams or More of Methamphetamine” and three counts of “Distribution of Methamphetamine.” Baker is accused of selling methamphetamine in March 2020, January 2021, and February 2021 in Wetzel and Tyler Counties.
Baker faces at least five years and up to 40 years of incarceration for the first count and faces up to 20 years of incarceration for the other three counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Bronx Men Charged with 2014 Harlem MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Timothy Foley, the Acting Special Agent in Charge of the Drug Enforcement Administration’s New York Division (“DEA”), and Ricky J. Patel, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), and Keechant L. Sewell, Police Commissioner for the City of New York (“NYPD”), announced today that CARLOS LAUREANO, a/k/a “Gordo,” and NNANDI BEN-JOCHANNAN, a/k/a “BJ,” were charged with the August 12, 2014 murder of Luis Perez in Harlem. LAUREANO and BEN-JOCHANNAN were arrested today and will be presented this afternoon in Manhattan federal court. The case has been assigned to United States District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “Carlos Laureano and Nnandi Ben-Jochannan allegedly participated in the premeditated murder of Luis Perez over eight years ago in connection with a drug debt. Now, thanks to the hard work of the DEA and NYPD, the defendants have been charged for this heinous crime. We hope that today’s charges bring some measure of comfort to the family of Luis Perez and make clear that this Office and our law enforcement partners will continue to be relentless in our pursuit of anyone who takes another person’s life.”
Acting DEA Special Agent in Charge Timothy Foley said: “Drugs and violence are a constant threat to the quality of life for New Yorkers. This investigation demonstrates DEA and our law enforcement partners’ resolve to bring justice to victims of violence and to identify and disrupt the drug trafficking organizations that spread poison throughout our neighborhoods.”
Acting Special Agent-in-Charge of HSI New York Ricky Patel said: “Communities are being terrorized and the uptick in violent crime has instilled fear across New York City. Today’s arrest for a 2014 unsolved murder is a testament to HSI New York’s commitment to protect the public from highly addictive and often deadly drugs, and rid our communities of those who perpetrate street violence and murder. The partnership that HSI shares within the OCDETF Strikeforce in New York City is crucial to combat the distribution of narcotics that often leads to extreme violence, overdoses, and loss of life. HSI will continue to pursue organized criminal networks to make neighborhoods in New York City safer.”
NYPD Commissioner Keechant L. Sewell said: “This case involves a homicide from 2014. What this case highlights is that neither investigative challenges nor the passage of time will deter us from pursuing justice. We long ago learned that narcotics and guns, money and murder go hand-in-hand to bring fear to communities. The joint efforts of federal and state prosecutors and investigators in this case are yet another example that we will be relentless to end this violence”
According to the allegations in the indictment unsealed today in Manhattan federal court:[1]
On or about August 12, 2014, in the vicinity of 501 West 147th Street in Harlem, New York, LAUREANO and BEN-JOCHANNAN shot and killed Perez in connection with a conspiracy to distribute heroin and marijuana.
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LAUREANO, 33, and BEN-JOCHANNAN, 28, both of the Bronx, New York, are charged with one count of using a firearm to commit murder during a drug-trafficking crime, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of five years in prison; and one count of murder in connection with a drug crime, which carries a maximum sentence of death or life in prison, and a mandatory minimum term of 20 years in prison.
LAUREANO is also charged with one count of conspiring to distribute narcotics, which carries a maximum sentence of life in prison, and a mandatory minimum term of ten years in prison; and one count of possessing a firearm during a drug-trafficking crime, which carries a maximum sentence of life in prison, and a mandatory minimum term of five years, which must run consecutively to any other sentence imposed.
The maximum and minimum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the DEA, HSI, and NYPD. He also thanked the Manhattan District Attorney’s Office for its assistance.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Christopher Clore is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the indictment and the description of the indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Man Sentenced to 7 Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
A Tulsa man was sentenced in federal court Monday for receiving and possessing sexually explicit images and videos of minors, including children under the age of 12, announced U.S. Attorney Clint Johnson.
“Jack Brady Jr. possessed nearly 7,200 image and video files of child sexual abuse material, some of which depicted the sadomasochistic abuse of children,” said U.S. Attorney Clint Johnson. “Not only will he spend seven years in federal prison, but he will also financially compensate many of the victims for downloading and viewing the horrific abuse they were subjected to.”
Jack Clinton Brady Jr., 67, of Tulsa, was sentenced to seven years in federal prison followed by seven years of supervised release. As required by the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018, U.S. District Judge Gregory K. Frizzell ordered Brown to pay $39,000 in restitution to victims who were abused in the creation of the child sexual abuse material.
In August 2021, Brady pleaded guilty to receipt of child pornography and possession of child pornography in Indian Country.
Brady admitted that from Jan. 1, 2018, to March 4, 2021, he used electronic means to download multiple computer files containing child sexual abuse material. He further admitted to possessing the depictions of minors engaged in sexually explicit conduct, including depictions of prepubescent minors under the age of 12.
The defendant’s criminal actions came to light after a family member found a video of child pornography on Brady Jr.’s laptop and contacted authorities. The Tulsa Police Department responded to the call and immediately identified the material as child pornography. The family member said the defendant, a charter bus driver at the time, was scheduled to drive high school students to an event the following day.
During an interview with law enforcement, Brady Jr. indicated that he had child pornography on the laptop and on external hard drives in a computer bag located in his bedroom. Multiple files found on Brady Jr.’s electronic devises depicted the abuse of infants and toddlers and the sadomasochistic abuse of children younger than 12 years of age.
Brady Jr. is a citizen of the Osage Nation and the crimes occurred within the boundaries of the Muscogee Nation Reservation.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Three Defendants Arrested for Operating Narcotics Delivery Service Responsible for Three Overdose Deaths from Fentanyl-Laced CocaineRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Tim Foley, the Acting Special Agent-in-Charge of the New York Division of the Drug Enforcement Administration (“DEA”), and Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced that BILLY ORTEGA, a/k/a “Jason,” and KAYLEN RAINEY were charged in a criminal complaint unsealed today in Manhattan federal court with narcotics conspiracy resulting in the deaths of Julia Ghahramani, Ross Mtangi, and Amanda Scher in Manhattan, New York. WILLIAM DRAYTON was also charged in the complaint as a member of the conspiracy. ORTEGA, RAINEY, and DRAYTON, were arrested today and will be presented this afternoon before United States Magistrate Judge Stewart D. Aaron.
U.S. Attorney Damian Williams said: “As alleged, the defendants operated an on-demand delivery service for the distribution of highly addictive and dangerous drugs. The cocaine distributed by defendants Ortega and Rainey on behalf of their delivery service was laced with the deadly synthetic opioid fentanyl, and as alleged, caused the deaths of three victims on a single day. Thanks to the tireless efforts of law enforcement, the defendants’ deadly delivery service is out of business.”
NYPD Commissioner Keechant Sewell said: “As this federal complaint makes clear, our NYPD investigators will stop at nothing in their work to arrest anyone accused of selling illegal, fentanyl-laced narcotics without regard for their deadly consequences. I would like to thank the United States Attorney’s Office in the Southern District of New York, and all of our law enforcement partners, for achieving a measure of justice in this important case.”
DEA Acting Special Agent in Charge Timothy Foley said: “Allegedly, through this illegal drug distribution network, death was delivered to New Yorkers. Fentanyl has added additional danger to recreational drug use. DEA will continue to investigate those responsible for distributing illegal drugs throughout our communities in an effort to save lives.”
According to the allegations in the complaint[1]:
From at least in or about 2020 to at least in or about 2021, ORTEGA, RAINEY, and DRAYTON operated a narcotics delivery service (the “Delivery Service”) in the New York City area. ORTEGA was the central contact who, like a dispatcher, coordinated narcotics deliveries with his couriers and his customers. RAINEY and DRAYTON were two of ORTEGA’s drug couriers. In the course of a single day – March 17, 2021 – RAINEY, after being dispatched by ORTEGA, delivered fentanyl-laced cocaine to Ghahramani, Mtangi, and Scher at three separate locations in Manhattan. All three victims died after consuming the drugs distributed by ORTEGA and RAINEY. DRAYTON was another courier who delivered narcotics to Ghahramani and others, on other occasions, on behalf of the Delivery Service.
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BILLY ORTEGA, 35, of West Milford, New Jersey; KAYLEN RAINEY, 30, of Manhattan, New York; and WILLIAM DRAYTON, 30, of Hackensack, New Jersey, are each charged with conspiracy to distribute and possess with intent to distribute fentanyl and cocaine. ORTEGA and RAINEY are also charged with causing the deaths of the three victims in connection with the narcotics conspiracy, with carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD, the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force, and the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”) Intelligence Analysts for their support and assistance in this matter. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by OCDETF and HIDTA. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, NYPD, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision. Mr. Williams also thanked the West Milford Police Department for their invaluable assistance in this case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Micah Fergenson and Michael Herman are in charge of the prosecution.
The charges contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the complaint, and the description of the complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Sturgis Nurse Charged with Tampering with Consumer ProductsRead the Press Release
GRAND RAPIDS, MICHIGAN - Alison Marshall, 46, of Sturgis, Michigan, has been charged by a federal grand jury with tampering with a consumer product, United States Attorney Andrew Birge announced today. Special Agent in Charge Lynda Burdelik, from the Food and Drug Administration’s (FDA) Office of Criminal Investigations, joined the announcement.
According to the indictment, while working as a registered nurse in the interventional radiology unit of a hospital in July and August of 2020, Marshall tampered with bottles of fentanyl by removing the fentanyl from the vials with a syringe and replacing it with another liquid, knowing that the diluted fentanyl was to be dispensed to patients. The indictment does not include other details of the offense.
The tampering offense is punishable by up to ten years in prison. If Marshall is convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Springfield Woman Sentenced for Social Security Benefit TheftRead the Press Release
BOSTON – A Springfield woman was sentenced today for stealing over $62,000 in Social Security benefits.
Patricia Shibles, 50, was sentenced by U.S. District Court Judge Mark Mastroianni to three years of probation, with the first six months to be served on home detention. Shibles was also ordered to pay $62,113 in restitution to the Social Security Administration (SSA). On September 22, 2021, Shibles pleaded guilty to one count of theft of public funds.
In April 2016, the father of Shibles’ fiancé, who was receiving Social Security benefits, passed away. The SSA was not informed of the death, and SSA continued to deposit monthly benefits into a bank account held by Shibles and the deceased beneficiary. From April 2016 through April 2020, Shibles stole approximately $62,113 in Social Security benefits from the account.
United States Attorney Rachael S. Rollins and John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement. Assistant U.S. Attorney Michelle Dineen Jerrett of Rollins’ Springfield Branch Office and Special Assistant U.S. Attorney Karen Burzycki of Rollins’ Major Crimes Unit prosecuted the case.
Springfield Woman Pleads Guilty to Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Springfield woman pleaded guilty yesterday in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Audri Ford-Victory, 61, pleaded guilty to one count of wire fraud conspiracy. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 1, 2022. Ford-Victory was charged on Dec. 15, 2021.
In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which in Massachusetts is administered by the Department of Unemployment Assistance. This program provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
Ford-Victory and her co-conspirator submitted more than 100 fraudulent PUA claims resulting in more than $1.2 million in payments. Approximately half of the PUA claims were made on behalf of individuals residing outside of Massachusetts. In some instances, Ford-Victory and her co-conspirator received kickback payments for doing so.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Regional Office, made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting 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.
South Florida Residents Who Defrauded Investors Sentenced to Federal Prison TermsRead the Press Release
Miami, Florida – A federal district judge has sentenced the last of four defendants involved in a mail and wire fraud scheme aimed at defrauding investors.
Miami-Dade County resident Jason Ganton, 50, was sentenced to 40 months in federal prison. In December 2021, co-defendant, Mason Newman, 52, was sentenced to 38 months in prison; co-defendant, James Cleary, 50, was sentenced to 33 months in prison; and co-defendant, Kevin Cardenas, 34, was sentenced to 24 months.
NIT Enterprises was a Palm Beach Gardens company that falsely marketed itself as being on the cusp of developing and producing radiation protective materials using an innovative technology. Ganton, Newman, Cleary and Cardenas who were not licensed securities sales agents, admitted to lying to investors by telling them that NIT was on the verge of making an initial public offering of stock. This created a false expectation that investors would double or triple their investments in a short amount of time. In fact, there was no IPO on the horizon for NIT. Ganton, Newman, Cleary and Cardenas admitted that they reached most of their victims through cold calls and that they personally profited from the investor funds.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Russell C. Weigel, III of the Office of Financial Regulation, announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
FBI Miami and the Office of Financial Regulation investigated this case. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80095.
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South Florida Covid-19 Relief Fraudster Sentenced to Federal PrisonRead the Press Release
Miami, Florida – Today, a federal district judge in Fort Lauderdale sentenced Luke Pierre Jr., 36, of Port St. Lucie, Florida to 24 months’ imprisonment for fraudulently obtaining over $400,000 from the Paycheck Protection Program (PPP), a program funded under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide small businesses with financial relief during the Covid-19 pandemic. In addition, Pierre must pay close to $415,000 in restitution.
Pierre submitted a PPP loan application on behalf of his company, Most Wanted Bullyz LLC (“MWB”), a dog breeding business, in which he falsely represented that MWB had 21 employees and an average monthly payroll of $165,870. In reality, MWB had no employees and no monthly employee payroll. Pierre gave a large portion of the fraudulent loan proceeds he received to co-conspirators who helped obtain the loan, including one such payment of over $100,000 that was disguised in bank records as “stud fees.”
Pierre previously pleaded guilty to conspiracy to commit wire fraud. U.S. District Judge William P. Dimitrouleas imposed Pierre’s sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence.
FBI Miami investigated this case. IRS-Criminal Investigation, Miami Field Office assisted.
Assistant U.S. Attorney David A. Snider and Trial Attorney Philip Trout of the Fraud Section of the Department of Justice prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60288.
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Sanpete County Man Charge with Operating a Fraudulent Farm Equipment BusinessRead the Press Release
SALT LAKE CITY – Ryan Palmer, 53, of Sanpete County, was indicted by a grand jury last December in the District of Utah for a fraudulent scheme related to his farm equipment company, known as Palmer Equipment, LLC. In the indictment, Palmer is charged with bank fraud, wire fraud, and two counts of money laundering. The indictment alleges that Palmer defrauded 25 victims out of more than $1.2 million dollars in total.
The indictment alleges that beginning in 2017, Palmer represented to his victims that he could sell or obtain farm equipment on their behalf, and that he entered into consignment contracts with his victims to sell their farm equipment and promised to pay the victims the proceeds from the sale of their equipment. It is alleged that Palmer also told victims that he could sell them functioning farm equipment that was free and clear of any liens. However, the indictment alleges that Palmer sold defective equipment to buyers; removed and replaced serial placards on the equipment; sold victims’ farm equipment which he did not own; did not deliver equipment to buyers; and did not pay, or only partially paid, proceeds to consignors for farm equipment which they had sold through Palmer. In some cases, it is alleged that Palmer encumbered consigners equipment by fraudulently stating the equipment was his own and then sold the same equipment as if it were his own. Additionally, it is alleged that Palmer fraudulently represented to banks that victims’ consigned equipment was his own and then obtained bank issued loans by using the victims’ consigned equipment as collateral.
The first count in the indictment charges Palmer with bank fraud for obtaining a loan from Utah Independent Bank for $51,000 by fraudulently representing that he owned a 1985 Allis-Chalmers 8050 tractor and using the tractor as collateral to obtain the loan. Additionally, it is alleged that Palmer failed to pay the original consignor of the tractor and the bank when the tractor was sold.
The second count alleges that Palmer committed wire fraud by accepting a wire transfer from a buyer of equipment in the amount of $19,450 into Palmer’s personal Mountain America Credit Union Account.
The third and fourth counts in the indictment allege that Palmer committed money laundering by transferring $25,000 obtained through a fraudulently acquired bank loan into a Palmer Equipment Checking Account, and by transferring $16,000 obtained through the sale of a tractor into Palmer’s personal checking account.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office from the St. George branch office are prosecting the case. Special Agents from the FBI and IRS Criminal Investigations conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
Rock Hill Man Sentenced to 15 Years in Federal Prison for Role in Fentanyl Pill DistributionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Justin De Neko Cunningham, 27, of Rock Hill, has been sentenced to 15 years in federal prison after pleading guilty to conspiracy to possess with the intent to distribute a quantity of fentanyl.
Evidence presented to the court showed that, through an investigation into a major drug trafficking organization, the organization obtained fentanyl and other drugs from a source in California and had the drugs shipped to various addresses in Rock Hill and Charlotte, North Carolina. Members of the organization would then produce counterfeit Roxicodone pills containing fentanyl. Federal agents learned that Cunningham was responsible for purchasing and selling thousands of these counterfeit pills, fully aware the pills purchased and sold by him were made with fentanyl. The pills were later sold by Cunningham in Rock Hill, Myrtle Beach, and Charlotte.
United States District Judge Mary Geiger Lewis sentenced Cunningham to 180 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Rock Hill Police Department, York County Sheriff’s Office, South Carolina Law Enforcement Division, and the Richland County Sheriff’s Department.
This sentencing is part of a major Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliott Daniels prosecuted the case.
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Repeat Offender Arrested with 14 Firearms Sentenced in Project Safe Neighborhoods CaseRead the Press Release
MACON, Ga. – A convicted felon with a lengthy criminal history who was found illegally in possession of 14 firearms and ammunition was sentenced to prison for his crime.
Devon Antonio Futrell, 28, of Macon, Georgia, was sentenced to serve 46 months imprisonment, to be followed by 3 years supervised release, after previously pleading guilty to possession of a firearm by a convicted felon. U.S. District Judge Tilman E. “Tripp” Self, III presided over the sentencing. There is no parole in the federal system.
“Repeat felons have no business illegally possessing one gun, let alone fourteen,” said U.S. Attorney Peter D. Leary. “Our office—alongside local, state, and federal law enforcement—is working to enforce federal law and hold repeat offenders guilty of illegally possessing guns accountable.”
According to court documents, Futrell was stopped by a Georgia State Patrol trooper for running a red light and failing to maintain his lane on Feb. 21, 2021, in Macon. Futrell was carrying a handgun and told the Trooper that he had it “for a while.” Law enforcement did not realize that Futrell was a convicted felon at that time, and he was released with the gun and traffic citations. The incident was reported to ATF, who determined that Futrell had four felony convictions in North Carolina, including possession of a firearm by a convicted felon, altering or removing a serial number from a gun, malicious conduct by a prisoner and breaking and entering an aircraft or trailer. It is illegal for a convicted felon to possess a firearm. ATF agents executed a search warrant on Futrell’s residence and found 14 firearms, including a .556 caliber semi-automatic rifle, as well as ammunition.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Georgia State Patrol (GSP) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Ready Pharmacy agrees to $400,000 settlement relating to Controlled Substances Act claimsRead the Press Release
ALBUQERQUE, N.M. – Fred J. Federici, U.S. Attorney for the District of New Mexico, has announced that Ready Pharmacy has agreed to a $400,000 settlement relating to civil claims brought by the Department of Justice on behalf of the U.S. Drug Enforcement Administration’s (DEA) El Paso Division Regulatory Diversion Group.
Ready Pharmacy, which is no longer in operation, was registered with the DEA as a retail pharmacy and authorized to dispense controlled substances customers pursuant to the provisions of the Controlled Substances Act (CSA).
At issues in the civil claim was the failure to account for over 26,000 missing dosage units of controlled substances on March 15, 2016. Also, during an on-site inspection, controlled substances were discovered unsafeguarded and not properly stored.
By the terms of the settlement, the owners of Ready Pharmacy have agreed to pay $400,000 and the government will release Ready Pharmacy from any further civil or administrative monetary claims the United States has for the covered conduct under the CSA.
“In reaching this agreement, we emphasize the necessity of adherence to the Controlled Substances Act,” said U.S. Attorney Federici. “It is our duty to ensure that the conditions and responsibilities upon which that authority is based are upheld and that its limits are not abused by retail pharmacies registered with the DEA.”
“The Controlled Substances Act sets forth clear rules for all entities that dispense controlled substances,” said Greg Millard, Acting Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “Our office will continue to use its oversight responsibilities to ensure registrants comply with the law.”
Ready Pharmacy must pay an initial amount of $50,000 within 30 days of the settlement date and must pay the remaining $350,000 over a five-year period.
Assistant U.S. Attorney Ruth F. Keegan represented the United States in the settlement agreement.
Portland Woman Sentenced to Federal Prison for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland woman was sentenced to federal prison today for her role in a fraud scheme whereby she and a co-conspirator stole mail from residential mailboxes and used stolen personal identification information to defraud local banks.
Latanya Jenkins, 51, was sentenced to 39 months in federal prison and five years’ supervised release.
According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Jenkins and an accomplice, Demontae Sanders, 48, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Jenkins and Sanders stole checks, credit cards, and other personal identity information that they used to impersonate victims and open accounts at several local credit unions and banks. The pair used the accounts to defraud these financial institutions.
To further their scheme, Jenkins and Sanders communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Together, they collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. They also stole and cashed an Economic Impact Payment check issued by the U.S. Treasury.
On September 24, 2020, a federal grand jury in Portland returned an 18-count indictment charging Jenkins and Sanders with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft. On August 23, 2021, Jenkins pleaded guilty to conspiring to commit bank fraud, mail theft, and aggravated identity theft.
Sanders pleaded guilty to the same charges on May 4, 2021. On November 1, 2021, he was sentenced to 10 months in federal prison and five years’ supervised release.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated jointly by Homeland Security Investigations and the U.S. Postal Inspection Service. Assistant U.S. Attorney Seth D. Uram prosecuted the case.
Ponte Vedra Man Convicted and Sentenced for Importing and Distributing Mislabeled Erectile Dysfunction DrugRead the Press Release
Jacksonville, Florida – U.S. Magistrate Judge Patricia D. Barksdale has sentenced Timothy Terrance DeJoris (42, Ponte Vedra) to six months’ probation and a $2,500 fine for importing from China a mislabeled erectile dysfunction drug and distributing it online and in the Jacksonville area. DeJoris had previously administratively forfeited $50,000 in proceeds from the offense. DeJoris had pleaded guilty on November 4, 2021.
According to the plea agreement, on June 18, 2019, agents from U.S. Customs and Border Protection intercepted two large packages that had been shipped from China. Each package was found to contain a barrel of blue capsules. An invoice for one of the barrels claimed that the capsules contained “Shiitake Mushroom Extract.” The packages were addressed to “Dr. Seltzer, LLC, Tim DeJoris” at an address in Ponte Vedra. The capsules were tested and found to contain sildenafil, the active ingredient in Viagra and other prescription medications used to treat erectile dysfunction in men. A search of a CPB database reflected that a similar shipment, described in the same way, had been delivered to DeJoris from the same supplier in China on June 11, 2019.
During the course of the investigation, investigators discovered a website with the address of “hardonhelper.com” that sold “Dr. Seltzer’s Hard-On Helper,” which was claimed to be a “100% Natural Male Enhancement Dietary Supplement.” Investigators also discovered that, in addition to being sold on that website, the capsules were also being sold on Amazon and eBay. The price on all three websites was the same, one capsule for $10.99, six capsules for $52.99, eight capsules for $61.99, and twelve capsules for $79.99. The product was also being sold at Adam and Eve adult stores in the Jacksonville area.
Records obtained from Amazon reflected that, for the period of January 1 through August 6, 2019, there were 8,043 sales of the capsules for a total of $453,413.07.
When investigators questioned DeJoris about the shipments, he said that he had paid $4,000 for each shipment of 50,000 capsules. Investigators seized over 25,000 capsules from DeJoris and his business partner.
“The importation of illegal, dangerous and/or mislabeled drugs is not only a crime, but it is a danger to the communities that we live in. This criminal thought he could circumvent our nation’s laws by doing just that,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to the law enforcement partnerships between HSI, U.S. Customs and Border Protection, the Tri-County Narcotics Task Force, and the U.S. Food and Drug Administration, this criminal was identified, investigated, and prosecuted, making our communities safer for everyone.”
This case was investigated by Homeland Security Investigations, Customs and Border Protection, the Food and Drug Administration – Office of Criminal Investigations, and the Florida Department of Law Enforcement HIDTA (High Intensity Drug Trafficking Area) Tri-County Narcotics Task Force. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Pittsburgh Man Charged with Lying on a Firearms Purchase FormRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Donald Anthony Ware, Jr., age 22, of the City’s Hill District neighborhood, as the sole defendant.
According to the Indictment, on or about November 3, 2021, in connection with the acquisition of a firearm from a licensed dealer, Ware falsely claimed on firearms purchase paperwork that he was purchasing the firearm for himself when he was actually purchasing it for another person.
The law provides for a maximum total sentence of ten years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Charged with Illegally Possessing Drugs, a Gun and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Kenneth Gaines, 31, formerly of Pittsburgh’s East Hills neighborhood, as the sole defendant.
According to the Indictment, on or about December 22, 2021, Gaines possessed with the intent to distribute crack cocaine and tramadol. The Indictment further alleges that Gaines possessed firearms and ammunition. His prior felony convictions make it unlawful for him to possess firearms and ammunition.
The law provides for a maximum total sentence of not more than 30 years, a fine of $3,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Pleads Guilty to Sex Offense Involving MinorRead the Press Release
CHARLESTON, W.Va. – James Russell Loar, Jr., 40, of Washington, Pennsylvania, pleaded guilty today to traveling in interstate commerce to engage in sexual activity with a minor.
According to court documents and statements made during the plea hearing, on May 27, 2021, Loar traveled from Washington, Pennsylvania, to Clay County, West Virginia to have sex with a 14-year-old minor. Loar had been communicating with the minor via Snapchat for nearly a year, and his communications with her were sexual. The minor’s parents had learned about his communications, informed him of her age, but his communications continued. When Loar traveled to Clay County, he met with the minor and invited her into his truck. The minor’s mother happened to be driving by and intervened. After he was subsequently arrested, Loar admitted to sending a pornographic picture to the minor as well as telling her that he wanted to perform sex acts with her.
If the plea agreement is accepted by the Court, Loar will be sentenced to between 87 months to 108 months in prison to be followed by 15 years of supervised release when he is sentenced on May 4, 2022. He also will be required to register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00141.
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Owners and Employees of Summit Contracting, Inc., Indicted on Fraud and Conspiracy ChargesRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on February 1, 2022, a federal grand jury returned a ten-count indictment against Chad M. Schampers (age: 38) and Gina L. Schampers (age: 36), both of De Pere, Wisconsin; Nathaniel R. Smith (age: 39) of Oconto, Wisconsin; and Jeffrey M. O’Brien (age: 33) of Shawano, Wisconsin. All four defendants are charged with conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349, and nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
The conspiracy count carries a maximum of 30 years’ imprisonment and up to a $1,000,000 fine. The wire fraud counts each carry a maximum of 20 years’ imprisonment and up to a $250,000 fine.
The defendants operated and worked at a home remodeling business named Summit Contracting, Inc. The indictment alleges that the defendants induced Summit’s customers to unwittingly apply for high interest financing based on false information and sign forms which falsely stated that work on their remodeling projects had already been completed. It is further alleged that, contrary to the terms of these finance agreements, the defendants withdrew funds from customers’ finance accounts prior to performing any work or, in some cases, even prior to ordering the building supplies. The defendants are alleged to have caused a loss of $1,500,000 as a result of their fraud.
This case was investigated by the Brown County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Julie F. Stewart and Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Owner of two South King County pawn shops sentenced to prison for trafficking in stolen goods and possession of images of child rape and abuseRead the Press Release
Seattle – A 46- year-old Auburn, Washington man was sentenced today in U.S. District Court in Seattle to 6 years in prison and 15 years of supervised release for trafficking in stolen goods and possession of child pornography, announced U.S. Attorney Nick Brown. Aleksandr Pavlovskiy pleaded guilty in October 2021, following a lengthy investigation by the FBI and Auburn Police Department. At the sentencing hearing U.S. District Judge John C. Coughenour said, the sentence was driven in part by “the stunning amount of stolen material.”
“This case highlights the tremendous value we place in state and federal law enforcement teamwork. The investigation began through the patient, dedicated work of an Auburn Police detective, who reached out to the FBI. It is through this sort of teamwork that we can root out all manner of crimes,” said U.S. Attorney Nick Brown. “While the stolen property case is what brought us here, the possession of child pornography demonstrates the damage Mr. Pavlovskiy inflicted on the larger community.”
According to records filed in the case, between 2013 and 2016, Pavlovskiy operated two pawn shops: Thrift Electro in Renton, Washington and Innovation Best in Kent, Washington. At the shops, Pavlovskiy directed employees to purchase stolen retail goods from shoplifters and others. Employees paid the shoplifters cash for the items. Some of the items came from delivery drivers for online retailers who stole the packages and sold them to the pawn shops.
In 2016, Pavlovskiy established a warehouse in Kent where the stolen goods would be stored and repackaged for re-sale. At the warehouse employees would use heat guns and scrapers to remove any tags from the items. Employees photographed the items and listed them for sale on eBay and Amazon. Between January 2017 and July 2019, Pavlovskiy and his employees at the warehouse shipped hundreds of thousands of stolen items to purchasers across the United States. The business generated between $1.5 million and $3.5 million on the sale of stolen goods.
The law enforcement investigation began in the summer of 2018, when an alert Auburn police detective noticed the large number of stolen goods being sold at pawn shops owned and operated by Mr. Pavlovskiy. In July 2019, state and federal law enforcement served search warrants on Pavlovskiy’s home, cars, and business locations. At the warehouse they documented racks of stolen goods being processed for resale. They took a number of electronic devices for analysis. On Pavlovskiy’s devices, forensic analysis revealed more than 20,000 images or videos of minors engaged in sexually explicit conduct. Pavlovskiy used file sharing software to obtain and share the images.
In imposing the sentence, Judge Coughenour directed Pavlovskiy serve 24 months on the child pornography count and 48 months on the trafficking in stolen property count, with the sentences to run consecutively. Pavlovskiy is required to register as a sex offender. He was ordered to pay $12,000 in restitution. Of the 65 known sexual abuse victims identified during the investigation, six victims requested restitution to help defray costs of their ongoing mental health treatment, and for other crime-related expenses. Each victim will receive at least $2,000 in restitution. The stolen property recovered in the investigation is being returned to the victim retailers.
The case was investigated by the FBI and Auburn Police Department.
The case was prosecuted by Assistant United States Attorney Mike Lang.
Ohio man sentenced for wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Kenneth Werkau, of Clarington, Ohio, was sentenced today to three years of probation for wire fraud, United States Attorney William Ihlenfeld announced.
Werkau, 64, pleaded guilty in August 2021 to one count of “Wire Fraud.” Werkau was employed as an associate at Walmart in Moundsville. Beginning in September 2019 and ending in January 2020, Werkau stole $123,775 in gift cards and activating them without paying for them.
Werkau was ordered to pay $123,775 in restitution.
Assistant U.S. Attorney Dane DeMasi-Lemon prosecuted the case on behalf of the government. The FBI investigated.
U.S. District Judge John Preston Bailey presided.
Ohio man indicted on drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Deonte Raymond James, of Euclid, Ohio, was indicted today on drug and firearms charges, United States Attorney William Ihlenfeld announced.
James, 34, was indicted today on one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of a Firearm.” James is accused of having methamphetamine in January 2022 in Marshall County. James, a person prohibited from having a firearm because of previous felony convictions, is also accused of having a .357 Magnum revolver.
James faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug count and faces up to 10 years of incarceration and fine of up to $250,000 for the firearms count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Moundsville Police Department investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative, assisted.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Patrick A. Groves, of Wheeling, West Virginia, was sentenced today to 33 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Groves, 31, pleaded guilty in February 2021 to one count of “Unlawful Possession of a Firearm and Ammunition.” Groves, who is prohibited from having a gun, admitted to having a 9mm caliber pistol and ammunition in April 2020 in Ohio County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Wheeling Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Norwich Man Sentenced to More Than 14 Years in Prison for Dark Web Fentanyl Distribution, Firearm OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that BARRY DUCLOS, 43, of Norwich, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 170 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl analogues on the dark web and firearm offenses.
According to the evidence introduced during his trial, between approximately September 2017 and February 2018, Duclos operated a vendor page on the dark web “Dream Market.” Using the alias 1NOLEFB1, Duclos advertised the sale of fentanyl analogues on Dream Market. He then used the U.S. Mail to ship fentanyl analogues to customers who paid for the drugs using Bitcoin.
On September 21, 2017, a 39-year-old man in Tennessee fatally overdosed after using cyclopropyl fentanyl he ordered from Duclos.
Duclos was arrested on a federal criminal complaint on February 12, 2018. A search of his residence at the time of his arrest revealed a YHM rifle with multiple magazines, two of which were extended magazines. The firearm was loaded with a round in the chamber. Investigators also located and seized fentanyl and carfentanil from the residence, along with a computer used by Duclos to access Dream Market.
Duclos was convicted in state court, in February 2001, of sale of narcotics and, in March 2017, of larceny in the third degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On July 30, 2021, a jury found Duclos guilty of seven counts of possession with intent to distribute and distribution of fentanyl analogues; one count of possession with intent to distribute fentanyl and carfentanil; one count of possession of ammunition by a convicted felon; and one count possession of a firearm in furtherance of a drug trafficking crime.
Duclos has been detained since his arrest.
This matter was investigated by the U.S. Postal Inspection Service and the Drug Enforcement Administration, with the assistance of Homeland Security Investigations, U.S. Customs and Border Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Norwich Police Department, and the Robertson County (Tenn.) Sherriff’s Office. The case was prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Patrick J. Doherty.
North Carolina Psychologist Sentenced for Medicaid Fraud Scheme Involving MinorsRead the Press Release
RICHMOND, Va. – A Durham, North Carolina, clinical psychologist was sentenced today to 52 months in prison for defrauding Virginia Medicaid of at least $544,067.69 by creating false diagnoses and medical records for Medicaid recipients, mostly minors, and falsely representing to Medicaid that he was providing them mental health services.
According to court documents, Dr. Malik Muhammad, Ph.D., 46, obtained identifying information of Medicaid recipients from a co-conspirator and used that information to bill Virginia Medicaid for outpatient psychotherapy that never actually occurred. Muhammad, a licensed clinical psychologist, hired a co-conspirator to write patient medical records as if Muhammad had performed actual therapy and created inapplicable diagnoses—including depression, anxiety, attention deficit disorder, and post-traumatic stress disorder—to give the appearance of actual treatment. The mostly minor victims were unaware of the false diagnoses Muhammad was inventing and applying to them. Through this fraud scheme, Muhammad defrauded Virginia Medicaid of at least $544,067.69.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services; and Virginia Attorney General Jason Miyares made the announcement after sentencing by U.S. District Judge David J. Novak.
Investigators with the North Carolina Attorney General’s Office Medicaid Fraud Control Unit provided significant assistance.
Assistant U.S. Attorney Shea Gibbons and Special Assistant U.S. Attorney David Tooker of the Virginia Attorney General’s Office prosecuted the case.
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-34.
New Jersey Man Charged in the Southern District of Florida with Money LaunderingRead the Press Release
Miami, Florida – A 55-year-old resident of Jersey City, New Jersey, made his initial appearance before a federal magistrate judge in Key West, Florida to face money laundering charges.
According to the indictment, from about February to April 2020, in Monroe County, Florida, Naby Toure conspired with others to launder the proceeds of illegal activity: wire fraud. In addition to conspiracy, the indictment charges that Toure committed money laundering on March 31, 2020, when he deposited a $18,600 check into a bank account and on April 2, 2020, when he deposited a $17,000 check into a different bank account.
If convicted, Toure faces up to 10 years in federal prison, if convicted. Toure’s trial is set for February 28, before U.S. District Judge Roy K. Altman.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami Key West Resident Agency investigated the case with the assistance of the Key West Police Department. Assistant U.S. Attorneys Yisel Valdes and Lindsey Lazopoulos Friedman are prosecuting the case. Assistant U.S. Attorney Richard Brown is handling asset forfeiture.
An indictment contains mere allegations, and a defendant is presumed innocent unless and until found guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-10015.
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Milwaukee Man Indicted for Armed CarjackingRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced today that a federal grand jury returned an indictment against Sidney Gentry (age: 26) of Milwaukee, Wisconsin, for armed carjacking. The carjacking occurred on October 13, 2021, near North 27th Street in Milwaukee.
Gentry is charged with one count of motor vehicle robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a felon. If convicted, Gentry would face up to 15 years in prison for the motor vehicle robbery, a mandatory minimum seven years to life in prison for brandishing the firearm, and up to ten years in prison for being a felon in possession of a firearm.
This case is being investigated and prosecuted under the Project Safe Neighborhoods (PSN) initiative. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The PSN strategy brings together all levels of law enforcement and community resources to reduce violent crime and improve the quality of life in all our neighborhoods.
This matter is being investigated by The Federal Bureau of Investigation and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Porchia S. Lewand
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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For further information contact: [email protected]
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Middleboro Financial Advisor Charged in Superseding Indictment with Investment Adviser Fraud and Money LaunderingRead the Press Release
BOSTON – A Middleboro financial advisor has been charged in a superseding indictment in connection with defrauding his elderly clients and stealing the victims’ retirement assets.
Paul R. McGonigle, 67, has been charged in a superseding indictment with one count of investment adviser fraud and two counts of money laundering. McGonigle was previously arrested and charged in June 2021 with three counts of wire fraud, one count of mail fraud and one count of aggravated identity theft.
According to the charging document, McGonigle served as a financial advisor for the elderly victims. Beginning no later than February 2015, McGonigle allegedly caused unauthorized withdrawals from victims’ annuities and induced victims to give him money to invest on their behalf, which he then used for personal and business expenses. To carry out his scheme, McGonigle allegedly posed as clients on calls with their annuity companies and signed their names on forms requesting withdrawals from their annuities.
The charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of money laundering provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charges of mail and wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater. The charge of aggravated identity theft provides for a mandatory consecutive sentence of two years in prison, up to one year of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Massachusetts Insurance Fraud Bureau provided valuable assistance with the investigation. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Martin County Registered Sex Offender Sentenced to over 37 Years in Federal Prison for Producing Child PornographyRead the Press Release
Miami, Florida – Today, a federal district judge in West Palm Beach sentenced a 47-year-old man from Stuart, Florida to 447 months in federal prison, followed by a lifetime of supervised release, for producing child pornography, possessing child pornography, and committing a felony offense involving a minor while being required to register as a sex offender.
Gernard Clark, Sr. first came to the attention of law enforcement after a minor reported to a school resource officer that Clark had sexually battered her. Law enforcement investigated and discovered on the SD card of Clark’s cellular telephone more than 500 sexually explicit images and more than 40 sexually explicit videos of the minor female taken when she was between 14 and 15 years old. Clark was previously convicted of Lewd and Lascivious Indecent Act with a Child Under 16 Years of Age in the 19th Judicial Circuit of the State of Florida, Martin County and, as a result, was required to register as a sex offender.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, announced the sentence imposed by U.S. District Judge Robin L. Rosenberg.
FBI Miami -- in particular, FBI Miami’s Child Exploitation Task Force -- investigated this case, with the assistance of the Martin County Sheriff’s Office. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14015.
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Marshall County man sentenced for firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Demetrius Moore, of Benwood, West Virginia, was sentenced today to 63 months of incarceration for a firearms charges, United States Attorney William Ihlenfeld announced.
Moore, age 48, pled guilty to one count of “Prohibited Possession of a Firearm” and one count of “Possession of a Stolen Firearm” in December 2019. Moore, having previously been convicted for a felony, is accused of illegally having a 7.62 caliber rifle and a 9mm caliber pistol from July to August 2018 in Marshall County. The rifle was stolen.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. District Judge John Preston Bailey presided.
Manchester Man Indicted for Bank RobberyRead the Press Release
CONCORD –Joshua Fields, 39, of Manchester was indicted by a federal grand jury on Monday and charged with bank robbery, United States Attorney John J. Farley announced today.
Fields is presently detained in Massachusetts on unrelated charges.
The indictment filed in court alleges that on December 29, 2021, Fields robbed a Citizens Bank branch located in Londonderry, New Hampshire.
An indictment is only an allegation. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Londonderry Police Department and the Federal Bureau of Investigation.
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Luzerne County Man Sentenced to 15 Years’ Imprisonment for Trafficking 120 Kilograms of Pure MethamphetamineRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Emmanuel Roman-Figueroa, age 39, of Hazleton, Pennsylvania, was sentenced on January 28, 2022, to 180 months’ imprisonment by United States District Court Judge Malachy E. Mannion for possessing 120 kilograms of 100% pure methamphetamine for distribution. Roman-Figueroa had pleaded guilty to the offense on July 29, 2021.
According to United States Attorney John C. Gurganus, on October 8, 2020, Roman-Figueroa met his co-defendants, Julio Romero-Mancebo and David Jusino Ramirez, both of New Jersey, at a truck stop off interstate 80 in Sugarloaf Township. Romero-Mancebo and Jusino-Ramirez had transported the methamphetamine in the cab of a tractor trailer from California to the Hazleton area. When they arrived at the truck stop the 120 kilograms of methamphetamine was placed into Roman-Figueroa’s vehicle. The methamphetamine had a street value of over $2 million. Immediately after the methamphetamine was placed in the vehicle, law enforcement officers arrested all three individuals. It is noted that approximately three months earlier, on July 2, 2020, Roman-Figueroa was stopped by the Hazleton Police Department for a traffic violation and $371,500 in drug proceeds were seized from his vehicle.
Co-defendant David Jusino Ramirez was convicted by jury on October 29, 2021, on drug trafficking charges and is awaiting sentencing. Julio Romero-Mancebo pleaded guilty to drug trafficking charges and is awaiting sentencing.The case was investigated by the U.S. Drug Enforcement Administration (DEA) and the Hazleton Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting 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 works 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.
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Las Vegas Woman Sentenced to Prison for Stealing Social Security BenefitsRead the Press Release
LAS VEGAS – A Las Vegas woman was sentenced today to one year and one day in prison for using her late husband’s identity to steal over $40,000 in Social Security benefits while on supervised release for a prior crime.
Florence Faamaligi Levao (71) pleaded guilty in July 2021, to one count of theft of government funds. In addition to the term of imprisonment, U.S. District Judge Andrew P. Gordon sentenced Faamaligi Levao to three years of supervised release. Faamaligi Levao was also ordered to pay restitution.
According to court documents, from October 30, 2014 to March 6, 2018, Faamaligi Levao stole approximately $40,625 of her late husband’s Social Security benefits for her personal use. During a substantial portion of this timeframe, she was on supervised release following her previous conviction for stealing Social Security benefits in her late father’s name.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Inspector General Gail S. Ennis for the Social Security Administration Office of the Inspector General made the announcement.
This case was investigated by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorney Jessica Oliva prosecuted the case.
If you suspect someone of committing fraud, waste, or abuse concerning Social Security Administration programs, please make a report to the Office of Inspector General at https://secure.ssa.gov/pfrf/home.
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Justice Department’s False Claims Act Settlements and Judgments Exceed $5.6 Billion in Fiscal Year 2021Read the Press Release
The Justice Department obtained more than $5.6 billion in settlements and judgments from civil cases involving fraud and false claims against the government in the fiscal year ending Sept. 30, 2021, Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division announced today. This is the second largest annual total in False Claims Act history, and the largest since 2014. Settlement and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $70 billion.
“Ensuring that citizens’ tax dollars are protected from fraud and abuse is among the department’s top priorities,” said Acting Assistant Attorney General Boynton. “The False Claims Act is one of the most important tools available to the department both to deter and to hold accountable those who seek to misuse public funds.”
Of the more than $5.6 billion in settlements and judgments reported by the Department of Justice this past fiscal year, over $5 billion relates to matters that involved the health care industry, including drug and medical device manufacturers, managed care providers, hospitals, pharmacies, hospice organizations, laboratories and physicians. The amounts included in the $5 billion reflect recoveries arising from only federal losses, and, in many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs.
In addition to being used to combat health care fraud, the False Claims Act serves as the government’s primary civil tool to redress false claims involving a multitude of other government operations and functions. The act helps to support our military and first responders by ensuring that government contractors provide equipment that is safe, effective and cost efficient; to safeguard American businesses and workers by promoting compliance with customs laws, trade agreements, visa requirements and small business protections; and to protect other critical government programs ranging from the provision of disaster relief funds to nutrition benefits for needy families.
In 1986, Congress strengthened the act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. If the government prevails in a qui tam action, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. Whistleblowers filed 598 qui tam suits in fiscal year 2021, and this past year the department reported settlements and judgments exceeding $1.6 billion in these and earlier-filed suits.
Health Care Fraud
Health care fraud was once again the leading source of the department’s False Claims Act settlements and judgments this past year. The department’s health care fraud enforcement efforts restore funds to federal programs such as Medicare, Medicaid and TRICARE, the health care program for service members and their families. But just as important, the department’s vigorous pursuit of health care fraud prevents billions more in losses by deterring others who might try to cheat the system for their own gain. In many cases, the department’s efforts also protect patients from medically unnecessary or potentially harmful actions. The department investigates and resolves matters involving a wide array of health care providers, goods and services.
Combatting the Opioid Epidemic
Opioid abuse remains a serious problem for our nation, with tens of thousands of Americans dying from opioid overdoses each year. Civil enforcement actions against the parties responsible for triggering and fueling the opioid epidemic are a critical part of the department’s ongoing efforts to address this crisis.
Consistent with this focus, the largest False Claims Act settlements in the past year resulted from significant resolutions with prescription opioid manufacturers: Indivior Inc. and Indivior plc (Indivior), and Purdue Pharma (Purdue). As part of a $600 million global resolution of criminal and civil liability, the Indivior companies agreed to pay $209.3 million to the federal government to resolve civil allegations that the companies, among other things, promoted the opioid-addiction-treatment drug Suboxone to physicians who were writing prescriptions that were not for a medically accepted indication and were often diverted; and made false and misleading claims that Suboxone Film was less susceptible to diversion and abuse and to accidental pediatric exposure than other buprenorphine products.
As part of a global resolution of criminal and civil liability, in October 2020, Purdue agreed to an allowed, unsubordinated, general unsecured bankruptcy claim for $2.8 billion to resolve civil allegations that the company promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion. The civil settlement also resolved allegations that Purdue paid kickbacks to doctors, certain specialty pharmacies and an electronic health records developer to increase prescriptions of Purdue’s opioid products. Purdue incorporated the civil settlement into its plan of reorganization, but the district court subsequently reversed a bankruptcy court order confirming the plan and litigation over the plan continues. Separately, certain individual members of the Sackler family who were shareholders and board members of Purdue agreed to pay $225 million to resolve civil False Claims Act allegations that they approved a new marketing program that intensified marketing of OxyContin to extreme, high-volume prescribers, causing opioid prescriptions for uses that were unsafe, ineffective and medically unnecessary, and that often led to abuse and diversion.
Medicare Advantage Program (Medicare Part C)
Another important priority for the department has been investigating and litigating a growing number of matters related to the Medicare Advantage program, also known as Medicare Part C, which is Medicare’s managed care program. Medicare Part C pays a capitated amount to private health insurance carriers for each patient enrolled in their plans, rather than a payment for each distinct patient admission or service. CMS adjusts the payments for various “risk” factors that affect expected healthcare expenditures to ensure that plans are paid more for enrollees who pose a greater risk. In 2021, more than 26 million Medicare beneficiaries were enrolled in Part C plans, and the Congressional Budget Office projected that CMS would pay more than $343 billion to private carriers who offered those plans.
The department has pursued plans and healthcare providers that manipulated the risk adjustment process by submitting unsupported diagnosis codes to make their patients appear sicker than they actually were. This year, Sutter Health, a California-based health care services provider, paid $90 million to resolve allegations that it knowingly submitted unsupported diagnosis codes for certain patient encounters, resulting in inflated payments to be made to the Medicare Advantage Plans and Sutter Health. In addition, Kaiser Foundation Health Plan of Washington, formerly known as Group Health Cooperative (GHC), paid $6.3 million to resolve allegations that it submitted invalid diagnoses and received inflated payments as a result. In addition, the department intervened and filed complaints in separate lawsuits against Independent Health Corporation and members of the Kaiser Permanente consortium alleging that those Medicare Advantage organizations submitted or caused the submission of inaccurate information about the health status of beneficiaries enrolled in their plans to increase reimbursement from Medicare.
Unlawful Kickbacks
Kickbacks in the healthcare industry are pernicious because of their potential to subvert medical decision-making and to increase healthcare costs. In addition to pursuing improper payments by drug manufacturers, the department resolved other schemes involving the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program.
For example, mail-order diabetic testing supply company Arriva Medical LLC and its parent, Alere Inc., agreed to pay $160 million to settle allegations that Arriva paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” diabetic testing glucometers and by routinely waiving or not making reasonable efforts to collect their copayments for glucometers and diabetic testing supplies. In another example, the department resolved its claims against pain management clinics and urine drug testing (UDT) laboratories owned and operated by Daniel McCollum for paying unlawful kickbacks to providers to induce their referrals of urine drug tests, obtaining default judgments against the clinics and laboratories totaling more than $140 million and a $9 million civil consent judgment against McCollum.
Electronic health records (EHR) technology vendor Athenahealth Inc. paid $18.25 million to resolve allegations that it invited customers and prospective customers to lavish all-expense-paid sporting, entertainment, and recreational events to generate sales of its EHR product. Generic pharmaceutical manufacturers Taro, Sandoz, and Apotex paid over $400 million to resolve allegations that they paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply and allocation of customers with other pharmaceutical manufacturers as part of a conspiracy to fix the price of certain generic drugs.
Other matters relating to kickback violations involved psychiatric hospitals and a substance abuse treatment facility (Oglethorpe Inc.), home health care agencies (BAYADA), hospitals (Akron General Health System, Texas Heart Hospital of the Southwest LLP, and Prime Healthcare Services), pharmaceutical companies (Biogen Inc.), diagnostic testing (Alliance Family of Companies LLC) and medical devices (Merit Medical Systems Inc).
Unnecessary Medical Services
As in years past, the department also resolved a number of matters in which providers billed federal health care programs for medically unnecessary services or services not rendered as billed. For example, SavaSeniorCare LLC and related entities agreed to pay $11.2 million for alleged false claims for rehabilitation therapy services provided as a result of aggressive corporate targets without regard for its patients’ actual clinical needs, resulting in the provision of medically unreasonable, unnecessary or unskilled services to Medicare patients. The settlement also resolved allegations that Sava provided grossly and materially substandard and/or worthless skilled nursing services.
Alere Inc. and Alere San Diego Inc. (collectively, Alere) paid $38.75 million to resolve allegations that they billed, and caused others to bill, for defective rapid point-of-care testing devices used by Medicare beneficiaries to monitor blood coagulation when taking anticoagulant drugs. In another matter, Apria Healthcare LLC paid $40.5 million to resolve allegations that it submitted false claims for the rental of costly non-invasive ventilators to program beneficiaries who did not need the devices or were not using them. St. Jude Medical Inc. paid $27 million to settle allegations that it knowingly sold defective, implantable heart devices and failed to disclose serious adverse health events in connection with premature battery depletion in those devices. Regency Inc. and its owner agreed to a civil settlement up to $20.3 million to resolve allegations that they falsified documentation to enable the billing of federal healthcare programs for medically unnecessary durable medical equipment. In addition, the department continues to focus on inadequate care and other fraud in nursing facilities, which provide care to a particularly vulnerable population (as reflected by the resolutions this year with SavaSeniorCare LLC, discussed above, and Select Medical Rehabilitation Services Inc).
Procurement Fraud
In the past year, the department also pursued a variety of fraud matters involving the government’s purchase of goods and services. In some cases, the department pursued allegations that government contractors falsified pricing data. For example, Navistar Defense LLC paid $50 million to resolve allegations that it fraudulently induced the U.S. Marine Corps to enter into a contract modification at inflated prices for a suspension system for armored vehicles known as Mine-Resistant Ambush Protected vehicles. In another case, Insitu Inc. paid $25 million to settle allegations that it knowingly submitted materially false cost and pricing data for contracts with the U.S. Special Operations Command and the Department of the Navy to supply and operate Unmanned Aerial Vehicles. The department also recovered $7.1 million from furniture maker Workrite Ergonomics LLC to resolve allegations that the company did not provide the General Services Administration with accurate information about its commercial sales practices during contract negotiations for office furniture, and subsequently violated the terms of its contract by failing to extend lower prices to government customers.
In other cases, the department pursued allegations that government contractors provided goods or services that did not comply with contract requirements. For example, United Airlines Inc. paid $32.1 million to resolve allegations relating to its execution of contracts to deliver mail internationally on behalf of the U.S. Postal Service. In another case, Cognosante LLC paid $18.9 million to resolve allegations that it used unqualified labor and overcharged the government for health care and IT services provided to federal agencies under two General Services Administration contracts. The department also recovered $11 million from AAR Corp. and its subsidiary, AAR Airlift Group Inc., to resolve allegations that AAR Airlift knowingly failed to maintain nine helicopters in accordance with Department of Defense contract requirements and that the helicopters, which were billed under two U.S. Transportation Command contracts to transport cargo and personnel in support of missions in Afghanistan and Africa, were not airworthy and should not have been certified as fully mission capable.
The department also resolved matters involving allegations of kickbacks in government contracts. For example, Level 3 Communications LLC paid $12.7 million to resolve allegations that the owner of two subcontractors paid kickbacks to Level 3 senior managers in return for favorable treatment for those subcontractors on government contracts. The United States also alleged that Level 3 managers misstated compliance with woman-owned small business subcontracting requirements and knowingly obtained protected competitor bid information on the government contract to gain an advantage in bidding on task orders. In another example, Schneider Electric Buildings Americas Inc. paid more than $9 million to resolve allegations that one of its senior project managers solicited kickbacks from subcontractors and that the company fraudulently charged the government for design costs by disguising those costs and spreading them across unrelated pricing components.
COVID-Related Fraud
In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses and state, local, and Tribal governments. Since the start of the COVID-19 pandemic, the department has worked closely with various Inspector Generals and other agency stakeholders to identify, monitor and investigate the misuse of critical pandemic relief monies.
The department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), which was enacted to provide loans guaranteed by the U.S. Small Business Administration (SBA) to eligible small businesses for payroll, rent, utility payments and other business-related costs. For example, the department has pursued small businesses that improperly received multiple PPP loans. Sandeep S. Walia and his medical practice paid a combined $70,000 to resolve allegations under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) that Dr. Walia, on behalf of his practice, falsely certified in an application for a second PPP loan that the medical practice had not previously received a PPP loan. The medical practice also agreed to repay the second PPP loan to the lender, relieving the SBA of liability for the federal guaranty of over $430,000 on the improper loan.
Sextant Marine Consulting LLC, a Florida-based duct cleaning company, paid $30,000 to settle allegations that it improperly obtained more than one PPP loan. Sextant also repaid the duplicative PPP funds in full to its lender, relieving the SBA of liability for the federal guaranty of approximately $170,000 on the improper loan. The department has also pursued cases against eligible borrowers who used PPP funds to pay for impermissible expenses. For example, Seth A. Bernstein, the owner of jet charter company All in Jets LLC dba JetReady, paid $287,055 to settle allegations that he diverted PPP funds to pay for personal, non-company related expenses.
Other Fraud Recoveries
The judgments and settlements announced during fiscal year 2021 reflect the diversity of fraud recoveries arising under the False Claims Act. For example, the United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. The department recovered $6.15 million from oil and natural gas exploration and production company Devon Energy Corp. to resolve allegations that it underpaid and underreported royalties for natural gas from federal lands in Wyoming and New Mexico.
Stargate Apparel Inc., Rivstar Apparel Inc., and the chief executive officer of both companies paid $6 million to resolve allegations that they engaged in two schemes to fraudulently underpay customs duties owed to the United States in connection with the garments that they brought into the country.
Concept Schools NFP, agreed to pay $4.5 million for allegedly engaging in non-competitive bidding practices in connection with the Federal Communications Commission’s (FCC) E-Rate Program, which subsidizes eligible equipment and services to make internet access and internal networking more affordable for needy public schools and libraries. Concept Schools, a charter school management company, rigged the bidding for E-Rate contracts in favor of chosen technology vendors so that its network of charter schools could select those vendors without a meaningful, fair and open bidding process. Additionally, the government alleged that Concept Schools’ chosen vendors provided equipment at higher prices than other vendors approved by the FCC for equipment with the same functionality, and that Concept Schools failed to maintain sufficient control over equipment reimbursed by the FCC.
Educational services provider Innovative Educational Programs LLC paid $1.1 million to resolve allegations that it fraudulently obtained federal funds for tutoring services for underprivileged New York City students that it never provided. The New York City Department of Education had paid Innovative to tutor students using funds made available to New York State by the United States under the Elementary and Secondary Education Act of 1965, as amended by the No Child Left Behind Act of 2001.
Guild Mortgage Company paid $24.9 million to resolve allegations that it failed to maintain quality control programs to prevent and correct underwriting deficiencies and to self-report materially deficient loans insured by the Federal Housing Administration.
Cybersecurity Initiative
Malicious cyber activity threatens the health and safety of the American people, and the national and economic security of our country. On May 12, 2021, President Biden signed an Executive Order announcing that preventing, detecting, assessing and remediating cybersecurity incidents affecting federal government networks is a top priority, and set forth an expectation that all federal systems will meet the necessary thresholds for cybersecurity protections. On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative to use the False Claims Act to combat new and emerging cyber threats.
Civil enforcement plays an essential role in the department’s cyber defense efforts. The department will pursue misrepresentations by companies in connection with the government’s acquisition of information technology, software, cloud-based storage and related services designed to protect highly-sensitive government information from cybersecurity threats and compromises.
Information on how to report cyber fraud can be found here: https://www.justice.gov/civil/report-fraud.
Holding Individuals Accountable
The department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporations. In addition to the settlements noted above with certain members of the Sackler family and with corporate entities that included payments by senior executives or owners, the following are additional examples of recoveries involving individuals.
Dr. Ashish Pal, a cardiologist based in Orlando, Florida, paid $6.75 million to resolve allegations that he performed medically unnecessary ablations and vein stent procedures. The government alleged that Dr. Pal performed the ablations and stent procedures on veins that did not qualify for treatment under accepted standards of medical practice and falsified patient medical records to justify the procedures. In addition, many of the ablations were allegedly performed either exclusively or primarily by one or more ultrasound technicians outside their scope of practice.
Two Texas physicians, Robert Wills and Brannon Frank, paid a total of $3.9 million to resolve allegations that they billed federal health care programs for medically unnecessary urine drug testing. The settlements resolved allegations that the physicians, formerly co-owners of now-defunct Austin Pain Associates, knowingly ordered excessive and unnecessary urine drug testing for patients without any individualized assessment of clinical need.
Substance abuse treatment provider A.R.E.B.A.-Casriel Inc. dba Addiction Care Interventions Chemical Dependency Treatment Centers (ACI) and its primary owner and former CEO, Steven Yohay, agreed to pay a total of $6 million to resolve allegations that they provided kickbacks and engaged in fraudulent conduct in connection with the enrollment of Medicaid beneficiaries into ACI’s inpatient treatment program. The United States alleged that ACI offered food and cash to homeless individuals to induce them to enroll in ACI’s inpatient treatment program, offered sham employment to an individual to induce her to refer patients to ACI programs, and used medical admissions forms containing photocopied physician signatures to make it appear that new patients had been evaluated by a qualified health care professional. ACI agreed to pay $3 million, and Yohay agreed to pay an additional $3 million and divest himself of ownership and control of ACI.
Recoveries in Whistleblower Suits
Of the $5.6 billion in settlements and judgments reported by the government in fiscal year 2021, over $1.6 billion arose from lawsuits filed under the qui tam provisions of the False Claims Act. During the same period, the government paid out $237 million to the individuals who exposed fraud and false claims by filing these actions.
The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 598 qui tam suits filed this past year – an average of over 11 new cases every week.
“Industry insiders are uniquely positioned to expose fraud and false claims and often risk their careers to bring these schemes to light,” said Acting Assistant Attorney General Boynton. “Our efforts to protect taxpayer funds benefit from the courageous actions of these whistleblowers, and they are justly rewarded under the False Claims Act.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.
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Acting Assistant Attorney General Boynton expressed appreciation for all the work over the past year by the many public servants who supported the department’s efforts to protect the public: “We owe a debt of gratitude to the employees in the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel and the many other federal and state agencies who have worked tirelessly to protect the public fisc from fraud.”
Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.