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Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 9 November 2021
Kaléo Inc. Agrees to Pay $12.7 Million to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
kaléo Inc., a Virginia-based pharmaceutical manufacturer, has agreed to pay the United States $12.7 million to resolve allegations that kaléo caused the submission of false claims for the drug Evzio, an injectable form of naloxone hydrochloride indicated for use to reverse opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States alleged that, between March 14, 2017, and April 30, 2020, kaléo directed prescribing doctors to send Evzio prescriptions to certain preferred pharmacies that in turn (1) submitted false prior authorization requests for Evzio that misrepresented to insurers that the prescribing physicians submitted the request when the pharmacies did so and/or contained false or misleading assertions about the patients’ medical histories, such as false statements that patients had previously tried and failed less costly alternatives to Evzio, and (2) dispensed Evzio without collecting or attempting to collect co-payment obligations from government beneficiaries. The United States contends that kaléo knew of or deliberately ignored this pharmacy misconduct, but nevertheless kept directing business to these pharmacies. The United States also alleged that kaléo provided illegal remuneration to prescribing physicians and their office staff in violation of the Anti-Kickback Statute to induce and reward their prescribing of Evzio.
“Truthful and accurate documentation is essential to the integrity of federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the department will hold to account those who undermine these programs by causing false claims to be submitted to the government.”
“When a pharmaceutical manufacturer knowingly engages with bad actors, they hurt the federal health care system — and they can expect us to see it,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Today’s settlement is our latest signal to pharmaceutical manufacturers that my office does not tolerate health care fraud and will continue to pursue enforcement.”
“The American people, as both taxpayers and consumers, expect pharmaceutical companies like kaléo to abide by relevant laws and regulations,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS OIG). “When a pharmaceutical company participates in fraud in order to boost profits, it erodes public confidence in the health care system, can compromise the patient-physician relationship and wastes valuable government health care program funds. We will continue to investigate allegations of fraud in close cooperation with our law enforcement partners.”
“Today’s settlement resolves allegations that kaléo used gifts to incentivize and reward providers for prescribing the company’s pricey anti-overdose drug, while turning a blind eye to pharmacies' fraudulent practices that fleeced taxpayer-funded health care programs — programs that all of us pay for and depend on,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “These unsavory tactics only fuel the FBI’s and our law enforcement partners’ commitment to aggressively root out those who seek to boost their bottom line at the expense of hard-working taxpayers.”
“False claims undermine the integrity of the Federal Employees Health Benefits Program,” said Deputy Inspector General Performing the Duties of the Inspector General Norbert E. Vint of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “The OPM OIG is committed to protecting the federal health care programs from deceptive schemes that increase the cost of medical care and waste taxpayer dollars.”
“Protecting TRICARE, the health care system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of DCIS, Northeast Field Office. “When companies submit false authorizations for high-priced medical goods and services, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program. The settlement agreement announced today is the result of a joint effort and demonstrates the DCIS’ ongoing commitment to work with our law enforcement partners to investigate health care fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the resolution with kaléo, Ms. Socol will receive $2,548,600 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. kaléo, Inc., 18-cv010050-RGS (D. Mass.) (under seal).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the HHS OIG; DCIS; OPM OIG; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Sarah Arni and Assistant U.S. Attorneys David Derusha and Abraham George.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Justice Department Secures Agreement with PATH to End Unnecessary Medical Exams and Health Questions of its EmployeesRead the Press Release
NEWARK, N.J. – The Department of Justice filed an agreement today in Newark federal court to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).
PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.
“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” Acting U.S. Attorney Rachael A. Honig said. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”
“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”
The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions, and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.
The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit, and Senior Trial Attorney Alyse Bass of the Civil Rights Division’s Disability Rights Section.
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Justice Department Secures Agreement with Employer to End Unnecessary Medical Exams and Health QuestionsRead the Press Release
Today the Justice Department filed an agreement with the Federal Court in New Jersey to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).
PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges that PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.
“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”
“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”
The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.
The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.
View the complaint here. View the consent decree here.
Justice Department Announces Environmental Justice Investigation into Alabama Department of Public Health and Lowndes County Health DepartmentRead the Press Release
The Department of Justice announced today that it has opened an environmental justice investigation into the wastewater disposal and infectious disease and outbreaks programs of the Alabama Department of Public Health and the Lowndes County, Alabama, Health Department.
The investigation, which will be conducted by the Civil Rights Division, will examine whether the Alabama Department of Public Health and the Lowndes County Health Department operate their onsite wastewater disposal program and infectious diseases and outbreaks program in a manner that discriminates against Black residents of Lowndes County in violation of Title VI of the Civil Rights Act of 1964 (Title VI). The investigation will also examine whether the health departments’ policies and practices have caused Black residents of Lowndes County to have diminished access to adequate sanitation systems and to disproportionately and unjustifiably bear the risk of adverse health effects associated with inadequate wastewater treatment, such as hookworm infections.
“Sanitation is a basic human need, and no one in the United States should be exposed to risk of illness and other serious harm because of inadequate access to safe and effective sewage management,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State and local health officials are obligated, under federal civil rights laws, to protect the health and safety of all their residents. We will conduct a fair and thorough investigation of these environmental justice concerns and their impact on the health, life, and safety of people across Lowndes County, Alabama.”
The department has not reached any conclusions regarding the allegations in this matter. This investigation marks the Department of Justice’s first Title VI environmental justice investigation for one of the department’s funding recipients. Title VI prohibits recipients of federal financial assistance from discriminating on the basis of race, color or national origin. Up until now, the Civil Rights Division has regularly provided counsel and support to other federal agencies whose Title VI compliance efforts have involved environmental programs. The department’s grants do not often go to programs that conduct environmental work, limiting its direct jurisdiction to conduct these types of administrative investigations.
The Civil Rights Division’s Federal Coordination and Compliance Section is conducting this investigation with the support of the U.S. Attorney’s Office for the Middle District of Alabama. Individuals with relevant information are encouraged to contact the Federal Coordination and Compliance Section by email at [email protected] or by phone at 833-739-2103.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. View the Spanish translation of this press release here.
Johnstown Man Charged in Superseding Indictment with Gun and Drug Law ViolationsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Superseding Indictment named Gregory Brown, 50, as the sole defendant.
According to the Superseding Indictment presented to the court, on or about June 22, 2021, Brown knowingly, intentionally, and unlawfully, possessed with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 5 grams or more of methamphetamine. Further, on or about August 5, 2021, Brown possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine, and was found in possession of ammunition, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The law provides for a minimum sentence of 5 years up to 40 years in prison, a fine of $5,000,000, 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 of the defendant.
Assistant United States Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
John Thomas Burnette Sentenced to 36 Months in Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA –John Thomas Burnette, 44, of Tallahassee, Florida has been sentenced to 36 months in the Federal Bureau of Prisons and ordered to pay a $1,250,000 fine and restitution in the amount of $20,000. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
In December 2018, a federal grand jury charged Tallahassee City Commissioner Scott Maddox and Paige Carter-Smith in a forty-four-count indictment. In May 2019, a grand jury returned a superseding indictment adding Burnette as a defendant. Maddox and Carter-Smith subsequently pleaded guilty to two counts of Honest Services Fraud by Bribery and one count of Conspiring to Interfere with the Lawful Function of the IRS. In October 2019, a grand jury returned a second superseding indictment against Burnette.
Burnette’s sentence was the result of a federal jury returning a guilty verdict on August 13, 2021, at the conclusion of a fifteen-day trial. The jury found Burnette guilty on one count of Extortion Under Color of Official Right, two counts of Honest Services Fraud by Bribery, one count of Use of Interstate Commerce Facilities to Promote Bribery, and one count of Making False Statements to a Federal Officer.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and Carter-Smith to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (“UCs”) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ sham development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
“The democratic system on which our country was founded relies on the consent and trust of the governed,” stated Acting U.S. Attorney Coody. “Our citizens deserve and expect that those in public office will act in the public’s interest, rather than their own and that of their confederates. With the assistance of our law enforcement partners, we will ensure that public officials who violate their oath by accepting bribes, as well as those corrupt individuals who pay them, are held accountable.”
“Our citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying business owners seeking to line their own pocketbooks,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Let there be no doubt - bribes are not good business in Tallahassee, nor anywhere else. The FBI remains fully committed to ensuring that anyone who violates the public’s trust is held accountable.”
Scott Maddox was sentenced to 60 months imprisonment, followed by 1-year supervised release. In addition, Maddox was ordered to pay restitution to the IRS of $76,763.00, and forfeiture of $70,000 jointly and severally with codefendant(s).
Paige Carter-Smith was sentenced to 24 months imprisonment, followed by 1-year supervised release. In addition, Carter-Smith was ordered to pay restitution to the IRS of $115,619, and forfeiture of $70,000 jointly and severally with codefendant(s).
The conviction was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case against Maddox, Carter-Smith, and Burnette was prosecuted by Assistant United States Attorneys Stephen M. Kunz, and Andrew J. Grogan of the Northern District of Florida, and Deputy Chief Peter M. Nothstein, and Trial Attorney Rosaleen T. O’Gara of the Department of Justice, Criminal Division’s Public Integrity Section.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Jicarilla Apache man sentenced to over 15 years in prison for kidnapping conspiracy in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Andrew Bettelyoun, 26, a member of the Jicarilla Apache Tribe, was sentenced today in federal court to 15 years and 8 months in prison for conspiring to commit kidnapping in Indian Country. Bettelyoun pleaded guilty on Jan. 30, 2019.
In his plea agreement, Bettelyoun admitted to assisting his co-conspirator, Allister Quintana, 26, also of the Jicarilla Apache Tribe, by providing binding material and moving the victim from room to room in a house in Dulce, New Mexico, on the Jicarilla Apache Indian Reservation. The victim died as a result of the injuries he sustained during the kidnapping.
On Jan. 22, 2019, Quintana pleaded guilty to second degree murder in Indian Country. On Sept. 21 he was sentenced to 33 years in prison.
Upon his release from prison, Bettelyoun will be subject to five years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Jicarilla Apache Police Department. Assistant U.S. Attorneys Joseph Spindle and Frederick Mendenhall prosecuted the case.
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Jersey City Man Admits Illegal Firearm PossessionRead the Press Release
NEWARK, N.J. – A Jersey City man today admitted possessing a firearm and ammunition after previously being convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.
Javon Alston, 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On Nov. 6, 2020, Alston entered Victim-1’s apartment, brandished a small gray handgun, and told Victim-1 and her daughter, Victim-2, to leave. Victim-1 and Victim-2 left the apartment and alerted police, who apprehended Alston near Victim-1’s apartment a short time later. When he was arrested, Alston was carrying a silver-and-black handgun loaded with nine rounds of ammunition. Alston had previously been convicted of robbery in the Hudson County Superior Court and sentenced to five years in prison.
The charge of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 15, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Jackson Woman Sentenced to 12 Months and One Day in Prison for Concealing Information about an Armed RobberyRead the Press Release
Jackson, Miss. – A Jackson woman was sentenced to 12 months and one day in prison for concealing information about an armed robbery, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Rasheena Romegan Carter, 33, concealed information concerning an armed robbery at a business that occurred on August 21, 2018. Carter assisted in concealing the armed bandit by driving him from the robbery and concealing him from law enforcement. Instead of reporting the crime, and relaying the information she possessed, Carter concealed the information for months. Under federal law it is a felony for any person to fail to notify authorities about the commission of a felony crime and to affirmatively act to conceal information they have about that crime.
The FBI and the Jackson Police Department investigated the case.
Assistant U.S. Attorneys Andrew W. Eichner and Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justizministerium Kündigt Untersuchung Des Gesundheitsministeriums Des Bundesstaats Alabama (Alabama Department of Public Health) Und Der Gesundheitsbehörde Des Bezirkes Lowndes Zum Thema Umweltgerechtigkeit AnRead the Press Release
Das US-Justizministerium gab heute bekannt, dass es eine Untersuchung der Abwasserentsorgung sowie der Programme gegen Infektionskrankheiten und Krankheitsausbrüche des Gesundheitsministeriums des Bundesstaats Alabama und der Gesundheitsbehörde des Bezirkes Lowndes eingeleitet hat. Bei der heute angekündigten Untersuchung handelt es sich um die allererste Untersuchung des Justizministeriums zum Thema Umweltgerechtigkeit im Rahmen von Titel VI des US-amerikanischen Bürgerrechtsgesetzes von 1964.
Im Rahmen der Untersuchung, die von der Abteilung für Bürgerrechte durchgeführt wird, soll geprüft werden, ob das Gesundheitsministerium von Alabama und die Gesundheitsbehörde des Lowndes County ihre Programme zur Abwasserentsorgung vor Ort und zur Bekämpfung von Infektionskrankheiten und Krankheitsausbrüchen in einer Weise betreiben, die schwarze Einwohner des Bezirkes Lowndes diskriminiert und damit gegen Titel VI des Bürgerrechtsgesetzes von 1964 (Title VI) verstoßen. Im Rahmen dieser Untersuchung soll auch geprüft werden, ob die Richtlinien und Praktiken der Gesundheitsämter dazu geführt haben, dass die schwarzen Einwohner des Bezirkes Lowndes einen schlechteren Zugang zu angemessenen Abwassersystemen haben und in unverhältnismäßiger und ungerechtfertigter Weise das Risiko negativer gesundheitlicher Auswirkungen im Zusammenhang mit einer unzureichenden Abwasserbehandlung, wie z. B. Infektionen mit Hakenwürmern, tragen.
„Abwassereinrichtungen gehören zu den menschlichen Grundbedürfnissen und niemand in den Vereinigten Staaten sollte dem Risiko von Krankheiten oder anderen ernstlichen Gefahren ausgesetzt sein, weil er oder sie unzureichenden Zugang zu einer sicheren und effektiven Abwasserentsorgung hat“, erklärte die stellvertretende Generalstaatsanwältin der Abteilung für Bürgerrechte des US-Justizministeriums, Kristen Clarke. „Die Gesundheitsbeamten der Bundesstaaten und der lokalen Behörden sind nach den Bundesgesetzen über Bürgerrechte verpflichtet, die Gesundheit und Sicherheit aller ihrer Einwohner zu schützen. Wir werden eine faire und gründliche Untersuchung dieser umweltrechtlichen Bedenken und ihrer Auswirkungen auf die Gesundheit, das Leben und die Sicherheit der Menschen im Bezirk Lowndes im Bundesstaat Alabama durchführen.“
Das Ministerium hat noch keine Schlussfolgerungen zu den Vorwürfen in dieser Angelegenheit gezogen. Das Ministerium wird diese Untersuchung gemäß Titel VI des Bürgerrechtsgesetzes von 1964 durchführen. Titel VI verbietet Empfängern von Finanzhilfen des Bundes die Diskriminierung aufgrund von Ethnie (race), Hautfarbe oder nationaler Herkunft. Im Rahmen von Titel VI ist das Ministerium befugt, zu untersuchen, ob Empfänger von Finanzhilfen des Ministeriums ungesetzlich diskriminierend gehandelt haben.
Die Fachabteilung für bundesweite Koordinierung und Einhaltung von Vorschriften der Abteilung für Bürgerrechte führt diese Untersuchung mit Unterstützung der Staatsanwaltschaft der Vereinigten Staaten im Middle District von Alabama durch. Personen, die über sachdienliche Informationen verfügen, werden gebeten, sich per E-Mail an die Fachabteilung für bundesweite Koordinierung und Einhaltung von Vorschriften zu wenden: [email protected] oder telefonisch unter 833-739-2103.
Die Bekämpfung diskriminierender Auswirkungen auf die Umwelt und Gesundheit durch die Durchsetzung der Bürgerrechtsgesetze der Vereinigten Staaten ist eine der obersten Prioritäten der Abteilung für Bürgerrechte. Weitere Informationen über die Abteilung für Bürgerrechte finden Sie auf ihrer Website unter www.justice.gov/crt.
Incoming St. Croix Airline Passenger Arrested with over 12 Kilograms of Marijuana in Her LuggageRead the Press Release
ST. CROIX, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a St. Augustine, Florida woman was arrested on November 6, 2021 in St. Croix on criminal charges relating to her travel to St. Croix, U.S. Virgin Islands from Charlotte, North Carolina via airline on November 6, 2021. According to court documents, she possessed two checked bags that contained 13 individually vacuum-wrapped bags with approximately 12.5 kilograms of a green leafy substance which tested positive for marijuana.
Court documents allege that Cynthia Ines Fernandes, age 33, possessed with the intent to distribute the 13 individually wrapped vacuum sealed packages of marijuana, found wrapped in between clothing. An initial appearance was conducted on November 8, 2021 before U.S. District Court Magistrate Judge George W. Cannon, Jr., who set a preliminary hearing date of November 18, 2021 at 9:00 a.m.If convicted, she faces a maximum of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Customs Border Protection and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Melissa P. Ortiz is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hilliard man lies to avoid taxes on $1 million in lottery winnings; pleads guilty to tax fraudRead the Press Release
COLUMBUS, OHIO – Mustafa Shalash, of Hillard, Ohio, pleaded guilty in U.S. District Court to one count of filing a false tax return with the IRS. Shalash was charged by bill of information on October 22, 2021.
According to court documents, in 2015 Shalash won $1,000,000 on a single lottery ticket. He received $710,000, and $290,000 was withheld in taxes. On his 2015 tax return, Shalash reported gambling winnings of $1,069,100 and falsely claimed gambling losses of $1,069,100. Shalash knew that his actual gambling losses were no more than $300,000. To conceal his gambling winnings, Shalash wired $690,000 abroad, including $440,000 to a bank account under his control in Jordan.
From 2014 through 2019, Shalash had as much as 409,000–645,803 Dinar, or approximately $576,077–$909,614, in a foreign bank account in Jordan. In addition to wiring lottery winnings abroad, Shalash accumulated money in foreign bank accounts by transporting more than $10,000 in funds across the U.S. border on multiple occasions. On July 8, 2015, Shalash purchased a $19,000 cashier’s check and then flew to Jordan, where he deposited the check into his Jordanian bank account. In April 2016, Shalash purchased two cashier’s checks for $15,000 and $25,000, then flew to Jordan, where he deposited them in his Jordanian bank account. In none of the cases did Shalash file the required Form 105, Report of International Transportation of Currency or Monetary Instruments. Before he knew he was being investigated, Shalash never filed, as required, a FinCen Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
On his 2015 tax return, Shalash also failed to disclose that he had a foreign bank account. Shalash reported to his return preparer that he did not have a foreign bank account. As a result of his overstating his gambling losses on his 2015 tax return, Shalash caused a tax loss of $255,967 to the IRS.
“Concealing bank accounts overseas and inflating losses on a tax return is a recipe for criminal tax prosecution,” said Bryant Jackson, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “IRS CI will continue to apply substantial resources towards and vigorously investigate criminal tax fraud.”
Filing a false income tax return carries a maximum penalty of 3 years in prison and a fine not to exceed $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the plea entered before U.S. District Judge Sarah D. Morrison.
This case is being prosecuted by Assistant United States Attorneys David J. Twombly and Peter K. Glenn-Applegate and was investigated by special agents of IRS-Criminal Investigation.
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Hertel & Brown Physical & Aquatic Therapy, Its Two Founders Aaron Hertel and Michael Brown, and 18 Employees Indicted on Fraud ChargesRead the Press Release
ERIE, Pa. – A physical therapy practice in Erie County, Pennsylvania, and 20 people – 18 of them from northwestern Pennsylvania - have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire and health care fraud and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named the following individuals as defendants:
Aaron Wilhelm Hertel, of North East, Pennsylvania 16428
Michael Robert Brown, of Erie, Pennsylvania 16506
Sarah Elizabeth Bailey, of Erie, Pennsylvania 16506
Jessica Jeanne Morphy, of Erie, Pennsylvania 16505
Jacqueline Renee Exley, of Erie, Pennsylvania 16508
Julie Ann Johnson, of Erie, Pennsylvania 16506
Bobby Lee Rainey, of Erie, Pennsylvania 16505
Steve Michael Bauer, of Erie, Pennsylvania 16502
Austin John Dudenhoefer, of Erie, Pennsylvania 16509
Philip Dale Sorensen, Jr., of Erie, Pennsylvania 16509
Patricia Susan Berchtold, of Melbourne, Florida 32940
Jeremy Richard Bowes, of Erie, Pennsylvania 16506
Jennifer Marie Larmon, of Waterford, Pennsylvania 16441
Travis Walter Litz, of Erie, Pennsylvania 16508
Erin Marie Riffe, of Conneaut, Ohio 44030
Abigayle Jane Fachetti, of Erie, Pennsylvania 16511
Lori Lynn Goss, of Waterford, Pennsylvania 16441
Marissa Sue Hull, of Waterford, Pennsylvania 16441
Justin Charles Burger, of Erie, Pennsylvania 16508
Carl William Lewis, Jr., of Lake City, Pennsylvania 16423
The indictment also names Hertel & Brown Physical & Aquatic Therapy, main office located at 902 West Erie Plaza Drive, Erie, Pennsylvania 16505, as a defendant.According to the Indictment presented to the court, the defendants conspired from January 2007 to October 2021 to commit wire fraud and health care fraud. The multi-faceted conspiracy had numerous components including:
a) Hertel & Brown Physical & Aquatic Therapy utilized unlicensed technicians to provide physical therapy treatment, including aquatic therapy, and billed that treatment as if performed by a licensed physical therapist or physical therapy assistant.
b) Unlicensed technicians at Hertel & Brown Physical & Aquatic Therapy were permitted and required to log into the treatment documentation system, WebPT, as a licensed physical therapist to facilitate documenting treatment as if performed by a licensed therapist.
c) Hertel & Brown Physical & Aquatic Therapy and its licensed employees regularly recorded and billed for treatment time in excess of actual treatment time spent with patients.
d) Hertel & Brown Physical & Aquatic Therapy and its licensed employees rarely if ever utilized group therapy codes when billing for treatment even when group billing codes were the only appropriate billing codes that could have been utilized.
e) Hertel & Brown Physical & Aquatic Therapy regularly billed treatment time using the name and credentials of a physical therapist who was on vacation and not working on the day in question.
f) Hertel & Brown Physical & Aquatic Therapy allowed physical therapy assistants and unlicensed personnel to treat patients with insurance that only reimbursed for treatment performed by a physical therapist. Then the practice and its employees covered up who actually treated the patient by removing the name of the actual person providing treatment from the treatment record.
g) Hertel & Brown Physical & Aquatic Therapy and some of its employees also manually changed the patient schedule after the fact to conceal that Medicare patients were scheduled at the same time as other patients. This was done to conceal that Medicare patients did not have one on one treatment with a physical therapist as billed by the practice and required by Medicare.
“The indictment alleges that essentially since Hertel & Brown opened in 2007, the defendants perpetrated a systematic and brazen fraud scheme that bilked insurance companies and the government of millions through blatantly false billings,” said U.S. Attorney Kaufman. “Addressing health care fraud is a top priority of our Office and of our federal, state and local law enforcement partners.”
“Those charged today were in the business to make a quick buck and in turn violated the very basic ethical and moral standards medical professionals are held to,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Taking short cuts, illegal and improper billings and elaborate health care fraud schemes all increase the cost of medical care. The FBI will continue to work with our state, local and federal partners to detect and hold accountable those who abuse our health care system and patients’ trust.”
"When individuals and entities engage in health care fraud schemes, they steal from taxpayers and undermine the safeguards intended to protect patients,” stated Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate health care fraud to protect the integrity of federal health care programs and the beneficiaries served by them.”
“Health care fraud takes away limited resources from some of our most vulnerable Pennsylvanians,” said Pennsylvania Attorney General Josh Shapiro. “My Office, as well as our local, state, and federal partners, are committed to stopping these bad actors and preventing them from undermining critical support that families across the Commonwealth rely on.”
“Today’s indictment charges the defendants with conspiring to fraudulently bill the government for healthcare services that were either not provided or not provided to standard,” said Special Agent in Charge Kim Lampkins with the Department of Veterans Affairs Office of Inspector General. “The VA OIG, along with our law enforcement partners, is dedicated to ensuring that our nation’s veterans receive only the highest quality health care for which they deserve.”
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or twice the pecuniary loss (whichever is greater), or both for each defendant and the business. 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 Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI), United States Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Department of Veteran’s Affairs – Office of Inspector General (VA-OIG), Defense Criminal Investigative Service (DCIS), the Pennsylvania Office of Attorney General – Medicaid Fraud Control and Abuse Unit, and the United States Office of Personnel Management – Office of Inspector General (OPM-OIG) 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.
Hamburg Man Going to Prison for Stalking A Local News ReporterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Paul E. Lubienecki, 63, of Hamburg, NY, who was convicted of stalking, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Aaron J. Mango and Charles M. Kruly, who handled the case, stated that on six separate occasions between August 20, 2019, and February 4, 2020, the defendant left harassing and threatening voicemails for Victim 1 relating to the victim’s reporting on the Catholic Diocese of Buffalo, which appeared on Channel 7 WKBW. The defendant, using a TracFone cellular telephone with a phone number that appeared as “unknown,” left the voicemails with the intent to harass and intimidate Victim 1.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the East Aurora Police Department, under the direction of Chief Shane Krieger.
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Ham Lake Felon Pleads Guilty to Cocaine Distribution, Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Ham Lake man pleaded guilty to illegally possessing multiple firearms and possession with intent to distribute cocaine, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on September 13, 2019, officers with the St. Paul Police Department executed a traffic stop on a vehicle driven by Steven Michael Lincoln, 34. After observing a large bag of marijuana on the front passenger seat, officers asked Lincoln to exit the vehicle. Officers searched the vehicle and recovered a small baggie containing cocaine, a loaded Ruger .380-caliber pistol, a loaded Kimber .45-caliber pistol, multiple sandwich bags of prepackaged marijuana, a digital scale, $986 in cash, 10 vials containing varying amounts of cocaine, and two additional baggies of cocaine each containing about 3.5 grams.
According to court documents, on January 4, 2020, officers with the St. Paul Police Department observed Lincoln asleep in the driver’s seat of a pickup truck parked in an alleyway. After asking Lincoln to exit the vehicle, officers located under the driver’s seat a loaded Brugger and Thomet, TP9 9mm firearm, with a sling, an attached vertical foregrip, a red-dot attached sight, an inserted 30-round magazine, and one round in the chamber. A further search of the vehicle revealed a bulletproof vest, three Glock 9mm magazines, two loaded TP9 high-capacity magazines, 18 rounds of loose 9mm ammunition, and a .40-caliber barrel for a Glock 23.
Because he has prior felony convictions in Ramsey County, Lincoln is prohibited from possessing firearms or ammunition at any time.
Lincoln pleaded guilty today before U.S. District Judge Wilhelmina M. Wright to possessing a firearm as a felon, possession with intent to distribute cocaine, and possession of an unregistered firearm. A sentencing hearing will be scheduled at a later time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorneys Benjamin Bejar and Chelsea A. Walcker are prosecuting the case.
Guatemalan Man Sentenced to Federal Prison for Illegally Possessing a Firearm and Being in the United States IllegallyRead the Press Release
A Guatemalan man who was illegally in the United States while possessing a firearm was sentenced November 8, 2021, in federal court in Sioux City.
On June 16, 2021, Sergio Mendez-Perez, 26, from Guatemala, pled guilty to illegal reentry and alien in possession of a firearm.
Evidence at the hearings showed that on March 17, 2021, Mendez-Perez was arrested in Woodbury County, Iowa after pointing a gun at the home of a former employer in a threatening manner, and then fleeing from law enforcement both in his vehicle and on foot. Mendez-Perez, who was determined to be intoxicated, also resisted arrest. On March 18, 2021, ICE determined that Mendez-Perez was a citizen of Guatemala, and had been removed from the United States on one occasion after a conviction for presenting a false document to officials.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Mendez-Perez remains in custody of the United States Marshal until he can be transported to a federal prison. Mendez-Perez was sentenced to 36 months’ imprisonment for both counts to be served concurrently and must serve 3 years of supervised release following imprisonment. He must also pay a mandatory special assessment of $200.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Sioux City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4026.
Follow us on Twitter @USAO_NDIA.
Georgia Man Pleads Guilty to CARES Act PPP FraudRead the Press Release
VALDOSTA, Ga. – A Georgia man pleaded guilty to money laundering after he filed for PPP loans amounting to more than $2.6 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Anthony J. Boncimino, 47, of Sycamore, Georgia, pleaded guilty to one count of money laundering before U.S. District Judge Louis Sands in Valdosta on Nov.8. Boncimino faces a maximum penalty of ten years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 24, 2022. There is no parole in the federal system.
“Those who fraudulently capitalized during the global pandemic will be brought to justice for their crimes,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “Investigators are working to hold CARES Act fraudsters accountable; our office will pursue federal prosecution when warranted.”
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Fraudsters attempting to gain access to economic stimulus funds will be met with justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
"The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act," said J. Russell George, the Treasury Inspector General for Tax Administration. "We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort."
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed. IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis,” said James E. Dorsey, Special Agent in Charge IRS-Criminal Investigation.
According to court documents, Boncimino admitted that he knowingly created two fictitious companies in order to obtain PPP loans fraudulently and obtained PPP loans for his moving business by falsifying payroll information. In all, Boncimino collected $2,671,871.74 in four PPP loans from three lender banks using fraud. Boncimino created fake IRS forms for his fictious
companies and submitted these and other fraudulent records to the lender banks and the SBA. Boncimino used the money to pay for state and federal taxes; he told investigators he wanted a safety net for his family and his moving business.
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.
Small Business Administration-OIG Eastern Region, the Treasury Inspector General for Tax Administration and IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Jim Crane is prosecuting the case.
Fort Wayne Man Sentenced to 30 Years in PrisonRead the Press Release
FORT WAYNE – Fredrick Morgan, II, 42 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to conspiracy to distribute methamphetamine, cocaine, and fentanyl, announced United States Attorney Clifford D. Johnson.
Morgan II was sentenced to 360 months in prison followed by 10 years of supervised release.
According to documents in the case, between May 6, 2019 and August 26, 2020, Morgan II was the leader of a conspiracy to distribute significant amounts of controlled substances. Morgan II maintained multiple stash houses to store narcotics, facilitated the sale of firearms and encouraged members of his conspiracy to possess firearms during their possession and distribution of narcotics.
Morgan II has two previous convictions for Dealing Cocaine and was on Court supervision when he began the conspiracy to distribute drugs.
This case was the result of a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with the assistance of multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
This case was 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.
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Fort Hall Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
POCATELLO – A Fort Hall man was sentenced to 27 months in federal prison for failure to register as a sex offender.
According to court records, Montey Curtis Moon, 46, of Fort Hall, admitted that he was convicted of rape in Bannock County, in 1996. As result of his conviction, he had to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
On multiple occasions in 2018, Moon was informed of his requirement to register or update his sex offender registration while living on the Fort Hall Reservation. After those warnings, Moon lived on the Fort Hall Reservation from August 21, 2020, until October 8, 2020. While living there, Moon did not register with the Idaho Sex Offender Registry. When interviewed, Moon admitted he knew he had to register and did not.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Fort Hall Police Department and the U.S. Marshals Service, which led to charges. “SORNA is a crucial public safety measure,” said Gonzalez. “These regulations further the Department’s goal of ensuring that convicted sex offenders are accounted for under the law. The regulations enhance the enforcement of registration and notification across the country and ensure that information about sex offenders in the community is available to law enforcement and the public,” he concluded.
Montey Curtis Moon was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
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Former Sioux City Council Member Sentenced in Federal Court for Environmental CrimesRead the Press Release
A man who unlawfully stored and transported hazardous waste was sentenced on November 8, 2021, in federal court.
Aaron Rochester, 47, from Sioux City, Iowa, pled guilty on March 19, 2021, to one count of unlawful storage of hazardous waste and one count of transportation of hazardous waste.
At various court hearings, evidence showed that from June 2015 through about January 2017, Rochester, as owner and operator of Recycletronics, knowingly and unlawfully stored and transported hazardous waste, namely CRTs (cathode ray tubes) and leaded glass from televisions and computers at various facilities in and around Sioux City, Iowa.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Rochester was sentenced to three years’ probation, fined $4,055,978.64, and must serve a term of three years of supervised release.
“Rochester’s disregard for the laws governing proper hazardous waste transportation and storage posed significant risks to nearby communities,” said Special Agent in Charge Lance Ehrig of EPA’s criminal enforcement program in Iowa. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to enforcing laws designed to protect human health and the environment.”
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the United States Environmental Protection Agency (EPA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4073. Follow us on Twitter @USAO_NDIA.
Former Medical Student Sentenced for Fatal Party Drug OverdoseRead the Press Release
ALEXANDRIA, Va. – An Ontario, Canada, man was sentenced today to one year in prison for distributing MDA—a psychedelic drug similar to MDMA, or “molly”—that resulted in the fatal overdose of a 21-year-old Falls Church woman.
According to court documents, Saad Jalal, 28, was a Canadian medical student doing a clinical rotation in the District of Columbia when he met the victim and her roommates out at a bar. A few weeks later, Jalal and the women made plans to go out together again and Jalal offered to obtain some MDMA for the women from a supplier he knew in Maryland. Jalal obtained what he believed was MDMA, but was actually MDA (methylenedioxyamphetamine), a Schedule I controlled substance of similar chemical structure.
On the night of September 19, 2019, after Jalal obtained the MDA from his connection, he went to the residence of the victim and her roommates in Falls Church. The roommates and Jalal then drove into the District of Columbia to pick up the victim from her workplace. Shortly thereafter, the victim consumed the MDA, became noticeably impaired, and eventually, her roommates and Jalal decided to take her back to her home in Falls Church. She suffered an overdose caused by the MDA that Jalal distributed and became unresponsive. The victim was later pronounced dead, and her death was ruled an accidental overdose caused by MDA intoxication.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Katherine Rumbaugh prosecuted the case.
This matter was investigated by FBI WFO's Health Care Fraud squad and the Northern Virginia Safe Streets HiDta Task Force. These squads are focused on reducing the illegal flow of opioids, to include fentanyl, which is adversely impacting our communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-261.
Former Massac County Official Pleads Guilty to Wire Fraud and Mail FraudRead the Press Release
BENTON, Ill. – Christopher Thompson, 30, of Kevil, Kentucky, pleaded guilty today to one count of
Wire Fraud and seven counts of Mail Fraud for engaging in a scheme to defraud the Massac County
Emergency Management Agency. Thompson was the Assistant Director of the Emergency
Management Agency in Massac County and also served as the IT Manager for the Massac County Board of
Commissioners. As part of the plea, Thompson admitted to using official business accounts to pay
for personal expenditures and admitted to opening up business lines of credit without authority for
personal use causing a loss in excess of $50,000. As part of the plea, Thompson consented to
forfeiture of items fraudulently purchased and otherwise consented to a forfeiture judgment in the
amount of $52,054.51.
Thompson’s sentencing is scheduled for February 24, 2022. A federal district court
judge will determine any sentence after considering the U.S. Sentencing Guidelines and other
statutory factors.Each count of Wire Fraud and Mail Fraud carries a statutory maximum sentence of up to twenty years
in prison, a fine of up to $250,000, three years supervised release and restitution.FBI Springfield Division conducted the investigation with the assistance of the Massac
County Sheriff’s Office.
Assistant U.S. Attorneys Norman Smith and Monica Stump are prosecuting the case.
Former Certified Registered Nurse Anesthetist at Ann Arbor VA Hospital Sentenced to 3-Years’ Probation on Drug ChargesRead the Press Release
DETROIT - Former Certified Registered Nurse Anesthetist, Elizabeth Prophitt, age 39, of Saline, was sentenced today to 3-years’ probation for stealing controlled substances, including several opioids, from hospital dispensing machines, announced Acting United States Attorney Saima S. Mohsin.
Joining Mohsin in the announcement were Gavin McClaren, Acting Special Agent in Charge, Veteran’s Affairs, Office of Inspector General, Central Field Office and Special Agent in Charge Keith Martin, DEA, Detroit Division.
Prophitt, was sentenced by U.S District Court Judge Robert H. Cleland after pleading guilty to five counts of obtaining controlled substances by fraud, misrepresentation or deceit. She used her position as a surgical nurse to steal more than 2,000 vials of Schedule II and Schedule IV controlled substances, which included fentanyl, hydromorphone, morphine and midazolam. Prophitt would use protected patient information and falsify medical documents to obtain the controlled substances. Instead of using the medication on the purported patients, she diverted the drugs for her own personal use. At times, on days when she was unscheduled to work or after normal working hours, she would access the hospital and steal the vials directly from the hospital dispensing systems.
Acting United States Attorney Mohsin stated, “In order to protect the health and safety of our citizens, we take crimes like this seriously and will not hesitate to prosecute health care workers whose theft of drugs put patients in harm’s way.”
“We will not tolerate medical professionals stealing controlled substances intended for the care of our nation’s veterans,” said Acting Special Agent in Charge Gavin McClaren of the Department of Veterans Affairs Office of Inspector General’s Central Field Office.
This case was prosecuted by Assistant United States Attorney Brandy R. McMillion. McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit. The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis. The case was investigated by special agents of the Department of Veteran Affairs – Office of Inspector General and the Drug Enforcement Administration.
Former Broadcom Engineer Charged with Theft of Trade SecretsRead the Press Release
SAN JOSE – A federal grand jury has indicted Peter Kisang Kim, a former Broadcom engineer, with trade secret theft involving Broadcom trade secrets, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair.
The indictment, filed November 4, 2021, and unsealed today, alleges that Kim, 50, a resident of Ben Lomond, worked as a principal design engineer at Broadcom and had been employed by the company for over twenty years. Broadcom is headquarted in San Jose and its products include networking chips used in equipment sold worldwide, including for enterprise and data center networking.
In the days before his July 17, 2020, departure from Broadcom, the indictment alleges that Kim stole Broadcom trade secrets from the company that were associated with a Broadcom family of chips often used in high-volume data centers. According to the indictment, the trade secrets were stored in non-public document repositories that were restricted to Broadcom employees within the same suborganization, or to Broadcom employees working on a project.
About ten days after his departure from Broadcom, Kim began working at the director level for Company-1, a China-based startup company focused on chip design and the market for networking chips, according to the indictment. The indictment alleges that Kim received a laptop for his work at Company-1 and, during the nine months following his departure from Broadcom and the start of his work at Company-1, that Kim possessed and repeatedly used Broadcom trade secrets on the newly-issued laptop and on other electronic devices. These trade secrets were associated with test plans, design verification environment files, and design specifications for the Broadcom family of chips.
The indictment charges Kim with eighteen counts trade secret theft, in violation of 18 U.S.C. § 1832(a). An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kim faces a maximum statutory sentence of 10 years of imprisonment, a $250,000 fine, and three years of supervised release, for each count. The court also may order additional assessments, forfeiture, and restitution; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This afternoon, Kim made his initial appearance in federal court in San Jose, where he was arraigned on the indictment and entered a plea of not guilty to the charges. Kim was released on a $500,000 bond and ordered to surrender his passport and other travel documents. Kim is next scheduled to appear at 1:30 pm on January 31, 2022, before the Honorable Edward J. Davila, U.S. District Judge.
The prosecution is being handled by Assistant U.S. Attorneys Eric Cheng and Kyle Waldinger of the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California, with the assistance of Kathy Tat and Margoth Turcios. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Florida Businessman Sentenced to Three Years in Prison for Bribery SchemeRead the Press Release
A Florida man was sentenced today to three years in prison and ordered to pay a fine of $1,250,000 for engaging in a scheme to bribe former Tallahassee City Commissioner Scott Maddox and for making false statements to the FBI.
On Aug. 13, John Thomas Burnette, 44, of Tallahassee, was convicted of extortion, honest services fraud, use of an interstate facility to promote bribery, and making false statements after a 15-day jury trial in the Northern District of Florida.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and his associate, Paige Carter-Smith, to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (UCs) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ apparent development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Jason R. Coody for the Northern District of Florida made the announcement.
The FBI and IRS–Criminal Investigation investigated the case.
Deputy Chief Peter M. Nothstein and Trial Attorney Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephen M. Kunz and Andrew J. Grogan of the Northern District of Florida prosecuted the case.
Five men indicted for illegal firearms possession, drugsRead the Press Release
SAVANNAH, GA: Five defendants face federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, in an ongoing effort to reduce violent crime by targeting those who illegally possess firearms.
The latest announcement of firearms prosecutions by the U.S. Attorney’s Office comes as the newly created Columbia County District Attorney’s Office becomes the 12th state prosecutor’s office in the Southern District, and joins the Southern District’s Prosecutor to Prosecutor Program (P3) in an agreement to collaborate with federal prosecutors to determine the most appropriate venue for adjudication of crimes occurring in the judicial circuit.
“Removing guns from the hands of convicted felons is an essential part of fighting violent crime in our community,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “We welcome the Columbia County District Attorney’s Office and its District Attorney, former U.S. Attorney Bobby L. Christine, in joining us to keep our communities safer.”
In the past three years, more than 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony.
Defendants named in federal indictments from the November 2021 term of the U.S. District Court grand jury include:
- James Kenneth Merritt, 35, of Waynesboro, Ga., charged with Possession of a Firearm by a Convicted Felon; Possession of a Firearm by a Prohibited Person, related to a prior conviction for domestic violence; and Possession of Methamphetamine;
- Rodney Eric Strickland, 42, of Waynesboro, charged with Possession with Intent to Distribute Methamphetamine; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Vesenta Cornelius Watson, 46, of Augusta, charged with Possession of a Firearm by a Convicted Felon, and Possession of a Firearm with an Obliterated Serial Number;
- Barry McCormick, 26, of Savannah, charged with Possession of a Firearm by a Convicted Felon, and Possession of Marijuana; and,
- Joseph Deon Cuyler, 29, of Wrightsville, Ga., charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Michael Venetez McRae, 37, of Hephzibah, sentenced to 235 months in prison followed by five years of supervised release and fined $1,500 after being convicted at trial for Possession of a Firearm by a Convicted Felon, and Possession of Cocaine. Richmond County Sheriff’s deputies arrested McRae Jan. 5, 2019, while investigating a report of domestic violence. Adjudicated as an armed career criminal, McRae has multiple prior felony convictions including those for drug trafficking.
- Letrail Jerome West, 43, of Augusta, was sentenced to 51 months in prison followed by three years of supervised release and fined $2,500 after pleading guilty to Possession of a Firearm by a Convicted Felon, and Possession with Intent to Distribute Cocaine. During an investigation into drug sales from an Augusta motel room, Richmond County Sheriff’s investigators found West in possession of drugs and drug paraphernalia, cash, and an assault-style rifle with a high-capacity magazine.
- Michael Alvin Jackson, 44, of Savannah, was sentenced to 41 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Jackson was charged Aug. 11, 2019, when a pistol fell from his waistband as he ran away from Savannah Police officers.
- Zachary Brent Sadler, 27, of Augusta, was sentenced five years’ probation after pleading guilty to Possession of a Firearm by a Convicted Felon. Sadler admitted pawning a handgun in October 2019, and he later was charged by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives when he attempted to repurchase the gun and was denied during a background check.
- Tona Nikia Wright, 47, of Augusta, was sentenced to 18 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by an Illegal Drug User, and Violation of Security Regulations and Orders regarding Department of Defense properties. Wright admitted that she was an unlawful user of cocaine and marijuana, and that on April 30, 2020, she entered a controlled access point at Fort Gordon Military Reservation without properly reporting the Taurus .380 caliber pistol in her possession.
- Kijordan Markel Ceaser, 22, of Thomson, Ga., was sentenced to 32 months in prison followed by three years of supervised release after pleading guilty to Illegal Receipt of a Firearm by a Person Under Indictment. Ceaser, who was on parole after a conviction on felony state charges, admitted illegally possessing a pistol when agents from the Georgia Bureau of Investigation and the Georgia Department of Community Supervision searched his residence Sept. 17, 2020.
- Jerry Allen Edenfield, 30, of Swainsboro, Ga., was sentenced to 32 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Clifford Lee Stone Jr., 29, of Wrens, Ga., was sentenced to 51 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Stone admitted illegally possessing an assault-style rifle on April 28, 2018, when he fled from a Jefferson County Sheriff’s deputy, first in a car and then on foot.
- Timetrius Dontrel Neal, 23, of Thomson, Ga., was sentenced to 60 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Prohibited Person, referring to a prior conviction on a misdemeanor crime of domestic violence. Neal, who was on felony probation on a state charge, was arrested Oct. 22, 2020, when a U.S. Drug Enforcement Administration task force officer and an officer from the Georgia Department of Community Supervision searched Neal’s residence and found a pistol with an extended magazine.
- Joe Lewis Hills, a/k/a “Polo,” a/k/a “David Owens,” 33, of Augusta, was sentenced to 57 months in prison followed by three years of supervised release after pleading guilty to Possession with Intent to Distribute Heroin and Marijuana, and Possession of a Firearm by a Convicted Felon. Hills was arrested with a co-defendant July 29, 2019, after Richmond County Sheriff’s investigators searched a hotel room rented to Hills and found drugs and an AR-15-style rifle with two loaded, high-capacity magazines. Hills served a previous federal prison sentence for armed robbery of a bank and was on supervised release at the time of his arrest.
- Newman Everette Tryon, 39, of Savannah, was sentenced to 43 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Tryon admitted illegally possessing a revolver when he was arrested Oct. 30, 2019, by Savannah Police.
- Robert Kenneth Williams, 32, of Augusta, was sentenced to 18 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies found Williams in possession of a pistol in April 2020 in a motel parking lot.
- Quieaton Freeman, 22, of Augusta, was sentenced to 46 months in prison, ordered to serve three years of supervised release and fined $2,000 after pleading guilty to Possession of Firearms by an Illegal Drug User. Freeman was one of eight defendants indicted in 2019 in Operation Snowfall, involving an investigation of a cocaine trafficking conspiracy in the Augusta area. All of the defendants pled guilty and are serving prison sentences.
- Khallid Marquese Wright, 24, of Augusta, was sentenced to 30 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Wright was found in possession of a firearm in February 2020 when he was stopped by Richmond County Sheriff’s deputies for questioning in an unrelated case.
- Jamerson Brandon Turner, 28, of Augusta, was sentenced to eight months of home confinement, three years of supervised release and fined $1,200 after pleading guilty to Possession of a Firearm by a Convicted Felon. Turner admitted illegally possessing a pistol when questioned May 15, 2020, by Richmond County Sheriff’s deputies.
- James Stallings III, 29, of Augusta, was sentenced to 60 months in prison and ordered to serve three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Stallings in June 2020 while investigating reports of a man firing shots outside an Augusta hotel when they found a pistol and identified Stallings from surveillance footage. Stallings has a prior state conviction for illegal firearms possession.
- Charles Kevin Matthews, 50, of Washington, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Matthews was on parole for a prior state conviction when investigators found a pistol in his possession during a search of his residence.
- Christopher Lewis Tucker, 21, of Thomson, Ga., awaits sentencing after pleading guilty to False Statement During Purchase of a Firearm. Tucker related to his illegal purchase of a pistol at a Thomson pawn shop in April 2021.
- Darryl Kinloch, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Kinloch was charged in February 2020 when Savannah Police officers found two pistols in his car during a traffic stop.
- Sundiadaa Miller, 33, of Savannah, awaits sentencing after pleading guilty to Possession of Firearm by a Convicted Felon. Miller, who was on parole after a felony conviction for armed robbery, was arrested in January 2020 by Savannah Police officers after he was found in possession of a pistol.
Agencies investigating these cases include the ATF, the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, the Savannah Police Department, the Burke County Sheriff’s Office, the Wrightsville Police Department, and the McDuffie County Sheriff’s Office.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Patricia G. Rhodes, Tara M. Lyons, Jennifer A. Stanley, Marcela C. Mateo, Steven H. Lee, Joshua S. Bearden, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Final defendant sentenced in conspiracy that shipped cocaine from California to SavannahRead the Press Release
SAVANNAH, GA: The last of four defendants has been sentenced to federal prison in a drug trafficking conspiracy that shipped cocaine and cash from coast to coast.
Kevin Chelsea, 39, of Las Vegas, was sentenced to 37 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Judge William T. Moore also ordered Chelsea to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Kevin Chelsea and his co-conspirators were foolishly brazen in their efforts to use the U.S. Postal Service to ship drugs east to Savannah, and then mail cash westward to Los Angeles,” said Acting U.S. Attorney Estes. “Our vigilant law enforcement partners unpacked the plot and brought these drug-mailers to justice.”
As described in court documents and testimony, the U.S. Postal Inspection Service in November 2018 began investigating a series of shipments sent from Los Angeles to Savannah. The conspirators, who operated from about Augusta 2016 through December 2019, used multiple aliases to ship kilos of cocaine to various Savannah addresses controlled by others in the conspiracy, who in turn mailed large amounts of cash back to the conspirators in California.
The conspirators attempted to hide drugs and cash in boxes that also contained items including coloring books, pens, markers, and wrapping paper.
Chelsea’s aunt and west coast co-conspirator, Aderiauna Crystal Shorter, 52, of Long Beach, Calif., is serving a 114-month sentence after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, and Money Laundering Conspiracy. Their east coast connection, Carlton Anderson, 42, of Savannah, and Lisa Williams, 42, of Savannah, both pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine. Anderson is serving 135 months in federal prison, while Williams is serving a 96-month sentence.
“The United States Postal Inspection Service works diligently with its local, state and federal partners, to investigate cases like these where the United States mail is used for the trafficking of illegal narcotics and its related proceeds,” said Joseph Cronin, Inspector in Charge of the Miami Division of the USPIS. “This case is a perfect example of this teamwork, which resulted in multiple seizures and arrests across the country.”
“Drug traffickers often take extreme measures in hiding the poison they peddle,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets in our communities. As a result of DEA’s multi-level law enforcement collaboration and the subsequent prosecution by the U.S. Attorney’s Office, Mr. Chelsea and his co-conspirators will spend well-deserved time in prison.”
The case was investigated by the U.S. Postal Inspection Service, the Savannah Resident Office of the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Chatham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Frank M. Pennington II.
Federal Jury Convicts Chicago Street Gang Leader of Participating in Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
CHICAGO — A federal jury has convicted a leader of the Four Corner Hustlers street gang of participating in a criminal organization that committed murders and other acts of violence while brutally protecting a drug-dealing operation on the West and Southwest Sides of Chicago.
LABAR SPANN, 43, of Chicago, was found guilty Monday on all four counts against him, including racketeering conspiracy, two counts of murder in aid of racketeering, and extortion. The jury found that Spann committed four murders in a cold, calculated, and premeditated manner as part of the racketeering conspiracy, including the murders of Maximillion McDaniel on July 25, 2000, George King on April 8, 2003, Willie Woods on April 17, 2003, and Rudy Rangel on June 4, 2003.
The conviction is punishable by a mandatory minimum sentence of life in prison. U.S. District Judge Thomas M. Durkin set sentencing for March 9, 2022.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Drug Enforcement Administration, Illinois Secretary of State Police Department, Illinois Department of Corrections, Illinois State Police, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys William Dunne, Timothy J. Storino, Kavitha J. Babu, and Megan DeMarco.
Authorities uncovered the racketeering activities of the Four Corner Hustlers through a lengthy investigation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies. The Chicago FBI’s Safe Street Task Force, the High Intensity Drug Trafficking Area Task Force (HIDTA), and ATF’s Chicago Crime Gun Strike Force also supported the investigation.
The Four Corner Hustlers operated primarily in the Chicago neighborhoods of West Garfield Park and Humboldt Park on the West Side, and in the former LeClaire Courts public housing development on the Southwest Side. According to evidence presented at the nearly eight-week trial in federal court in Chicago, the gang dealt drugs and robbed rival dealers, while using violence and intimidation to prevent victims and witnesses from cooperating with law enforcement. The gang engaged in numerous acts of violence, including multiple murders and armed robberies.
Spann was indicted in 2017 along with eight other members of the Four Corner Hustlers and two additional defendants. The other defendants pleaded guilty, and several have been sentenced to federal prison terms.
El Departamento de Justicia anuncia una investigación de justicia medioambiental del Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de LowndesRead the Press Release
WASHINGTON – El Departamento de Justicia de los EE. UU. anunció hoy que ha iniciado una investigación de justicia medioambiental de los programas de enfermedades contagiosas y brotes y de eliminación de aguas residuales del Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de Lowndes.
La investigación, que será dirigida por la División de Derechos Civiles, examinará si el Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de Lowndes operan su programa in situ de eliminación de aguas residuales y su programa de enfermedades contagiosas y brotes de una forma que discrimina a residentes negros del Condado de Lowndes, en contra del Título VI de la ley de Derechos Civiles de 1964 (Título VI). Por otra parte, la investigación examinará si las políticas y prácticas de los departamentos de salud han tenido el efecto de reducir el acceso de residentes negros del Condado de Lowndes a sistemas de saneamiento adecuados y asignarles, de una forma desproporcionada y no justificada, un mayor riesgo de efectos adversos en su salud asociados con el tratamiento inadecuado de aguas residuales, tales como infecciones por anquilostomas.
«El saneamiento es una necesidad humana básica y nadie en Estados Unidos debe verse expuesto al riesgo de enfermedad y otros daños graves debido a un acceso inadecuado a la gestión segura y eficaz de aguas residuales», declaró Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Los funcionarios de salud estatales y locales están obligados, en virtud de las leyes federales de derechos civiles, a proteger la salud y seguridad de todos sus residentes. Nosotros llevaremos a cabo una investigación justa y completa de estas preocupaciones de justicia medioambiental y su impacto en la salid, vida y seguridad de personas por todo el Condado de Lowndes, Alabama».
El Departamento no ha llegado a ninguna conclusión con respecto a las acusaciones en este caso. Esta investigación representa la primera investigación de justicia medioambiental del Departamento de Justicia al amparo del Título VI para uno de los beneficiarios de los fondos del Departamento. El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen por parte de beneficiarios de fondos federales. Hasta el momento, la División de Derechos Civiles ha ofrecido consejos y apoyo de forma rutinaria a otras agencias federales cuyos esfuerzos de aplicación del Título VI han implicado programas medioambientales. Las subvenciones del Departamento no suelen ser asignadas a programas que realizan trabajo medioambiental, lo que limita su competencia directa en lo que se refiere a la realización de estos tipos de investigaciones administrativas.
La Sección Federal de Coordinación y Cumplimiento de la División de Derechos Civiles está dirigiendo esta investigación, con el apoyo de la Fiscalía Federal para el Distrito Central de Alabama. Se le ruega a cualquier persona con información relevante que se comunique con la Sección Federal de Coordinación y Cumplimiento por correo electrónico a [email protected] o por teléfono al 833-739-2103.
Una de las prioridades principales de la División de Derechos Civiles es abordar los impactos discriminatorios en los ámbitos del medioambiente y la salud mediante la aplicación de las leyes nacionales de derechos civiles. Para más información sobre la División de Derechos Civiles, visite su sitio web en www.justice.gov/crt-espanol.
Eau Claire Man Sentenced to 15 Years for Transporting Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jay A. Liestman, 49, Eau Claire, Wisconsin, was sentenced today by Chief U.S. District Judge James Peterson to 15 years in federal prison for transporting child pornography. This term of imprisonment will be followed by 20 years of supervised release. Liestman pleaded guilty to this charge on April 2, 2021.
In October 2019, Liestman sent an undercover officer a link to the file storage platform Mega. This link led to a file comprised of five folders containing more than 500 videos, most of which depicted child pornography.
Liestman’s sentence was increased because he had a prior conviction for possessing child pornography, and also had been convicted of child enticement. At the time of the offense in this case, he was on supervision for those offenses.
The charge against Liestman was the result of an investigation conducted by the Federal Bureau of Investigation, Eau Claire County Sheriff’s Office and Eau Claire Police Department. Assistant U.S. Attorneys Elizabeth Altman and Diane Schlipper prosecuted this case.
Drug User Sent to Prison for Unlawfully Possessing a GunRead the Press Release
A drug user who possessed marijuana and a firearm was sentenced November 8, 2021, to federal prison.
Anthony Jon Chan-Vance, age 43, from Marion, Iowa, received the prison term after a March 5, 2021 guilty plea to possession of a firearm by a drug user.
In a plea agreement, Chan-Vance admitted he possessed a gun while he was an unlawful user of marijuana. He also admitted that he provided marijuana to his friends. Evidence at various hearings in the case showed that law enforcement officers searched Chan-Vance’s home in 2019. During the search, officers found a .40 caliber handgun. Officers also found a distribution quantity of marijuana in the home. At sentencing, the court found that Chan-Vance possessed the gun in connection with his possession of marijuana that he intended to distribute.
Chan-Vance was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Chan-Vance was sentenced to 6 months’ imprisonment and fined $10,000. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Chan-Vance was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-86.
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Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to trafficking fentanyl.
Eric Encarnacion Medina, 34, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 2, 2022. Encarnacion Medina was indicted on April 7, 2021.
On Jan. 28, 2021, after coordinating with a source of supply outside the United States, Encarnacion Medina drove to Massachusetts and sold approximately one kilogram of fentanyl to a cooperating witness in a parking lot in Watertown.
The charges of conspiracy and distribution of and possession with intent to distribute 400 grams or more of fentanyl each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Defendant Sentenced to 45 Months for Smuggling Event that Resulted in DeathRead the Press Release
Assistant U. S. Attorney Amanda T. Muskat (619) 546-6495
NEWS RELEASE SUMMARY – November 9, 2021
SAN DIEGO – Leobardo Soto-Toledo, a foot guide who led a group of 14 undocumented migrants into the United States through an underground drainage pipe during heavy rains, resulting in a death and a near-drowning, was sentenced in federal court yesterday to 45 months in prison.
As reflected in the court records, on January 29, 2021, the group of migrants entered the United States near Chula Vista, California, by either climbing over the international boundary fence or traversing through a drainage pipe that runs underground approximately one-quarter mile from Mexico into the United States. The storm drain is capped on the United States side by a mechanical grate, located approximately one-and-a-half miles east of the San Ysidro, California Port of Entry.
The defendant acted as a foot guide, leading the undocumented migrants into the United States by crossing the boundary fence close to the grate. Thereafter, the defendant entered the drainage pipe and guided the undocumented migrants behind him through the approximately 5-foot diameter pipe, eventually reaching the mechanical grate at the end, which can only be opened on the United States side. Stormy conditions caused water to rush through the drainpipe at a high speed. A digital intrusion device captured an image of individuals at the mouth of the grate.
According to court records, the defendant’s role was to travel to the grate and attempt to convince U.S. Border Patrol personnel to open the grate by yelling for help amidst the flowing water, allowing the migrants behind him to exit the open grate and further their entry into the United States.
When Border Patrol agents responded to the scene, they opened the grate, and the migrants flowed out on the rushing water. Border Patrol agents located one individual floating in the water who was deceased, and was later identified as the defendant’s brother and fellow foot guide. Border Patrol agents located another individual floating unconscious after traveling through the grate and managed to resuscitate her and transport her to a hospital.
“Human smuggling efforts that result in a death and endanger lives are tragic and deeply disturbing,” explained Acting U.S. Attorney Randy S. Grossman. “We will continue to use all means at our disposal to hold accountable those placing human beings at substantial risk of injury and death.” Grossman thanked prosecutor Amanda Muskat and the U.S. Border Patrol for their excellent work on this case.
“We are grateful for the resolve and perseverance that our law enforcement community demonstrated during the past several months, including that of the United States Attorney’s office,” said Chief Patrol Agent Aaron Heitke. “Collaboratively, the efforts of our men and women resulted in Leobardo Soto-Toledo’s arrest, conviction, and just sentencing.”
When handing down the sentence, U.S. District Court Judge Cynthia Bashant noted that this event was “a tragedy for all involved.” Judge Bashant held that the migrants were placed at substantial risk of death or great bodily injury and applied a sentencing enhancement due to the fatality caused by the defendant’s conduct.
DEFENDANT Case Number 21cr607-BAS
Leobardo Soto-Toledo Age: 54 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (v)(II) – Bringing in Illegal Aliens and Aiding and Abetting (Counts 1, 12, and 17)
Maximum Penalties: Ten years in prison; $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Dallas Real Estate Developer Sentenced to 8 Years in Prison for BriberyRead the Press Release
UPDATE: In an opinion handed down on Aug. 23, 2022, the Fifth Circuit Court of Appeals vacated the below conviction and remanded it for further proceedings.
A Dallas real estate developer was sentenced today to eight years in federal prison for bribing two former Dallas City Council members, Carolyn Davis and Dwaine Caraway, Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham announced.
In June, a federal jury convicted Ruel Hamilton, the president of AmeriSouth Realty Group, of one count of conspiracy and two counts of bribery of an agent of a local government receiving federal funds. Mr. Hamilton was sentenced Tuesday by Chief U.S. District Judge Barbara M.G. Lynn, who also ordered him to pay a $150,000 fine.
“Even as he extoled his own generosity, Mr. Hamilton bought and paid for his influence at City Hall. He used money to ingratiate himself to lawmakers, subverting the democratic processes we hold dear,” said Acting U.S. Attorney Chad Meacham. “As my predecessors have said, the U.S. Attorney’s Office will not allow a kickback culture to fester at City Hall. Our prosecutors will not hesitate to pursue anyone involved in public corruption.”
“Today’s sentencing reaffirms the FBI’s commitment to holding those who pay bribes, accept bribes, and facilitate bribe payments fully accountable. Mr. Hamilton learned that there are consequences to circumventing a system that is in place to protect taxpayers,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “Public corruption remains one of the FBI’s top criminal priorities and we will continue working with our law enforcement partners to pursue anyone involved in this type of scheme.”
According to evidence presented at trial, from 2013 to 2015, Mr. Hamilton shelled out tens of thousands of dollars in bribes to Carolyn Davis, who was then serving as chair of the city’s Housing Committee.
In return, Ms. Davis – who pleaded guilty to her role in the scheme prior to her death in 2019 – supported Mr. Hamilton’s Royal Crest housing project, voting to authorize a real estate development loan and resolutions supporting an award of a 9 percent tax credit for Royal Crest. Ms. Davis supported the Royal Crest housing project, despite the fact that it failed to meet the city’s enumerated multifamily housing priorities.
In an attempt to disguise the bribe payments, Mr. Hamilton funneled payments to Ms. Davis through a not-for-profit intermediary run by Jeremy “Jay” Scroggins. Mr. Scroggins – who also previously pleaded guilty – testified at trial that he cashed thousands of dollars’ worth of checks, solicited by Ms. Davis and made out to him personally or to his not-for-profit, “Hip Hop Government. Mr. Scroggins testified that he used $15,000 for a Freedom Ride Tour in November 2014, and cashed the remainder of the checks, turning most of the money over to Ms. Davis. The councilwoman told Mr. Scroggins payments would not pose a problem, because people “don’t go to prison for $2,000,” according to a recorded phone call played in court.
Evidence showed that Mr. Hamilton also paid Ms. Davis directly. Over the course of the conspiracy, Mr. Hamilton forked over cash, and on at least one occasion he invited her to accompany him to the bank to make a cash withdrawal. At Ms. Davis’ urging, Mr. Hamilton also directed campaign contributions to a political protégé. Further, Mr. Hamilton promised Ms. Davis a job once she was off the counsel. Evidence showed that Mr. Hamilton paid Ms. Davis in excess of $145,000, once she left the council.
At one point, Mr. Hamilton became concerned that a former city council member was going through their financial dealings with a “fine tooth comb,” telling Ms. Davis, “she scares me.” Even so, he continued to bribe Ms. Davis.
Three years later, in 2018, Mr. Hamilton paid a $7,000 bribe to councilman Dwaine Caraway, who Mr. Hamilton believed could persuade the mayor to put a paid sick leave referendum on the city council’s agenda. Mr. Hamilton hoped the referendum would increase turnout in the polls, advantaging his preferred political candidates.
Video admitted into evidence at trial shows the pair meeting at Mr. Caraway’s office on August 3, 2018:
“I want to do that, so… what can I do for you, right now, today?” Mr. Hamilton asks.
“You can answer that bill I just threw out there for about 62 [$6,200] today,” Mr. Caraway responds.
“Okay,” Mr. Hamilton says. “Can you follow through with the mayor?”
The pair then discuss what Mr. Hamilton should put in the memo line “for posterity” so that “if somebody ever asks, I can come up with a reference.”
The defendant was instructed to report to the Bureau of Prisons in February.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of Internal Revenue Service - Criminal Investigations. Assistant U.S. Attorneys Tiffany H. Eggers, Joe A. Magliolo, Andrew Wirmani (fmr.), and Marcus Busch prosecuted the case with support from their appellate liaison, Assistant U.S. Attorney Stephen S. Gilstrap.
DC Solar Owner Sentenced to 30 Years in Prison for Billion Dollar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — An owner of DC Solar, a Benicia-based company, was sentenced today for a billion-dollar Ponzi scheme— the biggest criminal fraud scheme in the history of the Eastern District of California, Acting U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge John A. Mendez sentenced Jeff Carpoff, 50, of Martinez, to 30 years in prison. On Jan. 24, 2020, Carpoff pleaded guilty to conspiracy to commit wire fraud and money laundering. His wife, Paulette Carpoff, 47, also pleaded guilty to conspiracy to commit an offense against the United States and money laundering. The government’s investigation has resulted in approximately $120 million in assets forfeited that the government intends to seek authorization to use towards restitution to victims of the fraud.
According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), which were solar generators that were mounted on trailers and were promoted as able to provide emergency power to cellphone towers and lighting at sporting events. A significant incentive for investors were generous federal tax credits due to the solar nature of the MSGs.
The conspirators carried out an accounting and lease revenue fraud using Ponzi-like circular payments. Carpoff and others lied to investors about the market demand for DC Solar’s MSGs and its revenue from leasing to third parties, then covered up these lies with techniques including false financial statements and fake lease contracts. Their fraud concealed a circular payment structure where Carpoff and others were simply using new investor money to pay older investors the supposed lease revenue that investors were expecting. As DC Solar lost vast sums of money with this fraudulent model, Carpoff and other conspirators stopped building the MSGs altogether, selling thousands of MSGs that did not even exist to investors. To carry out this part of the fraud, Carpoff and others made it appear that MSGs existed in locations that they did not, swapped vehicle identification number (VIN) stickers on MSGs that had been built earlier, and attempted to deceive certain investors during equipment inspections. In reality, at least half of the approximately 17,000 mobile solar generators claimed to have been manufactured by DC Solar did not exist.
“Jeff Carpoff orchestrated the largest criminal fraud scheme in the history of the Eastern District of California,” said Acting U.S. Attorney Talbert. “He claimed to be an innovator in alternative energy, but he was really just stealing money from investors and costing the American taxpayer hundreds of millions in tax credits. Today’s substantial sentence reflects the seriousness of the offense and provides just punishment. The U.S. Attorney’s Office is committed to protecting the public and promoting respect for the law.”
“Carpoff’s egregious scheme fueled his rapacious desire for luxury and prominence with showy, public expenditures including the purchase of a sports team, high-end collector’s vehicles, international real estate and a NASCAR team,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “I thank the team of determined FBI special agents, forensic accountants and professional staff who worked tirelessly with IRS Criminal Investigation and FDIC Office of Inspector General to thoroughly investigate this complex case. Our office is committed to identifying and investigating financial fraud and encourage the public to report suspected fraud to tips.fbi.gov.”
“Mr. Carpoff lived a luxurious life as a successful businessman,” said Special Agent in Charge Mark H. Pearson. “In reality, he manipulated the system to his advantage by lying to investors, promising significant federal tax credits, and laundering his ill-gotten gains. IRS Criminal Investigation will continue to work with our federal partners to ensure that anyone involved in these types of schemes, no matter how big or small, will be held accountable for their crimes.”
“Today’s sentencing recognizes the importance of holding Mr. Carpoff accountable for his role in conspiring with others to defraud investors of approximately $1 billion through the creation of a fraudulent business venture, and using the proceeds for his and his wife’s own personal gain,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working with our law enforcement partners in bringing to justice those who undermine the integrity of the financial system.”
The forfeiture included seizing and auctioning 148 of the Carpoffs’ luxury and collector vehicles, including the 1978 Firebird previously owned by actor Burt Reynolds. This historical auction resulted in recouping approximately $8.233 million. In addition to their collection of luxury and collector vehicles, Jeff and Paulette Carpoff used money from the scheme to pay for a minor-league professional baseball team and a NASCAR racecar sponsorship; to purchase luxury real estate in California, Nevada, the Caribbean, Mexico, and elsewhere; a subscription private jet service; a suite at a professional football stadium; and jewelry.
In addition to the Carpoffs, five other defendants have been charged with criminal offenses related to the fraud scheme: Joseph W. Bayliss, 46, of Martinez, and Ronald J. Roach, 54, of Walnut Creek, each pleaded guilty to related charges on Oct. 22, 2019. Bayliss is scheduled for sentencing on Nov. 16, 2021, and Roach is scheduled for sentencing on Feb. 15, 2022. Robert A. Karmann, 54, of Clayton, pleaded guilty to related charges on Dec. 17, 2019; and Ryan Guidry, 44, of Pleasant Hill, pleaded guilty to related charges on Jan. 14, 2020. Alan Hansen, 50, of Vacaville, a former employee of a telecom company with which DC Solar purported to do business, pleaded guilty on July 28, 2020, to participating in the fraud scheme and accepting a $1 million bribe to sign a false contract. Karmann, Guidry, and Hansen are scheduled to be sentenced on Dec. 14, 2021. Paulette Carpoff is scheduled to be sentenced on Nov. 16, 2021.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Kevin C. Khasigian are prosecuting the case.
Paulette Carpoff, Hansen, Karmann, and Guidry face a maximum statutory penalty of 15 years in prison. Roach and Bayliss face maximum statutory penalties of 10 years and five years in prison, respectively. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Columbia Man Sentenced to 14 Years in Federal Prison on Narcotics and Firearms ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Darryl Ryan Bostick, 39, of Columbia, was sentenced to 14 years in federal prison after pleading guilty to aiding and abetting the possession with intent to distribute and distribution of cocaine, and possessing a firearm in furtherance of drug trafficking.
Evidence presented to the Court showed that, on December 1, 2016, Columbia Police Department received a tip indicating Vernon Wendell Griffin was selling drugs at a location in Columbia. Officers with Columbia Police Department reported to the location, and observed Griffin drive a Ford Expedition to a nearby business. Shortly thereafter, Bostick arrived as the passenger in a Chevrolet Cavalier. Bostick exited the Cavalier and entered the passenger seat of Griffin’s Expedition. As law enforcement approached, Bostick fled on foot. Both vehicles were subsequently searched. Law enforcement found approximately 26 grams of cocaine in the Expedition. On the passenger floorboard of the Cavalier where Bostick had been sitting when he arrived at the scene, law enforcement found a hat containing approximately 104 grams of cocaine, 11 grams of cocaine base, and methadone pills. A 9 mm handgun was located near the hat.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Bostick to 168 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system. Griffin, 54, also of Columbia, previously pled guilty to conspiracy to distribute cocaine, and was sentenced to six months in federal prison with three years of court-ordered supervision to follow imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbia Police Department, and South Carolina Law Enforcement Division (SLED).
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Cincinnati woman sentenced to prison for misusing SSN, lying to court about military service & address before failing to appearRead the Press Release
CINCINNATI – A Cincinnati woman who applied for and was denied bankruptcy seven times was sentenced in federal court to 17 months in prison for misusing another person’s Social Security number. After pleading guilty to using another person’s SSN to apply an eighth time for bankruptcy, the defendant lied to the probation office about being a veteran and provided a false address before failing to appear at her originally scheduled sentencing hearing.
Nicole Ball, 49, was arrested in October 2021 by United States Marshals after failing to appear in court.
According to court documents, from 2013 to 2016, Ball filed for bankruptcy in the Southern District of Ohio using her true SSN. Each case was dismissed, and in February 2017, the bankruptcy court ordered the defendant not to file again for at least three years.
In March 2019, Ball illegally used another person’s SSN to file again for bankruptcy.
She pleaded guilty in March 2021 to misusing the SSN.
After her guilty plea, Ball provided false information to the federal probation office, including claiming that she had served in the United States military when she had not, and providing the office with an address on a street that does not exist.
Ball also used the names Nicole Whitaker, Nicole Woodell, Nicole Spivey and Nicole Whitaker-Spivey.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, commended the investigation by the Social Security Administration Office of the Inspector General, U.S. Marshals, Department of Defense Office of Inspector General and Department of Veterans Affairs Office of Inspector General. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Charlotte Woman Is Sentenced to More Than Nine Years for Assaulting A U.S. Probation OfficerRead the Press Release
CHARLOTTE, N.C. – Tamara Devonna McClellan, 32, of Charlotte, was ordered to serve 115 months in prison late yesterday for assaulting a federal Probation Officer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered McClellan to serve three years under court supervision upon completion of her prison term.
According to filed documents and statements made in court, on December 20, 2019, law enforcement attempted to detain McClellan at her residence in Charlotte. Upon seeing the law enforcement officers, McClellan got into the driver’s seat of an SUV vehicle parked on the driveway. As a U.S. Probation Officer handcuffed one of McClellan’s wrists, McClellan put the vehicle in reverse, knocking down the Probation Officer. As a result, the Probation Officer sustained serious physical injuries from the vehicle as McClellan fled the scene. The abandoned vehicle was located a few blocks from the scene. On December 24, 2019, Deputy U.S. Marshals apprehended McClellan in Rustburg, VA.
On March 3, 2021, McClellan pleaded guilty to assault with a deadly weapon on a federal officer in the performance of her duties, inflicting bodily injury. McClellan is currently in federal custody and will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Probation Office, the U.S. Marshals Service, and the Charlotte Mecklenburg Police Department for their investigation of the case.
Assistant U.S. Attorney Robert Gleason, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Bộ Tư Pháp Thông Báo Điều Tra Công Lý Môi Trường Đối Với Sở Y Tế Công Cộng Alabama Và Sở Y Tế Hạt LowndesRead the Press Release
Bộ Tư Pháp Hoa Kỳ hôm nay ra thông báo mở cuộc điều tra công lý môi trường đối với chương trình xử lý nước thải, chương trình về bệnh truyền nhiễm và bùng phát của Sở Y Tế Công Cộng Alabama và Sở Y Tế Hạt Lowndes. Cuộc điều tra hôm nay đánh dấu cuộc điều tra công lý môi trường đầu tiên của Bộ Tư Pháp theo Khoản VI.
Bộ Phận Dân Quyền sẽ tiến hành cuộc điều tra để kiểm tra xem Bộ Y Tế Công Cộng Alabama và Sở Y Tế Hạt Lowndes có vận hành chương trình xử lý nước thải tại chỗ cũng như chương trình về bệnh truyền nhiễm và bùng phát theo cách phân biệt đối xử với cư dân người Da Đen của Hạt Lowndes và vi phạm Khoản VI của Đạo Luật Quyền Công Dân năm 1964 (sau đây gọi tắt là Khoản VI) hay không. Cuộc điều tra này cũng sẽ xem xét liệu chính sách và cách làm của sở y tế có khiến người dân Da Đen ở Hạt Lowndes giảm khả năng tiếp cận với hệ thống vệ sinh đầy đủ và gánh chịu một cách không tương xứng và bất công nguy cơ bị ảnh hưởng xấu tới sức khỏe liên quan đến việc xử lý nước thải không đầy đủ, chẳng hạn như nhiễm bệnh giun móc, hay không.
“Vệ sinh là nhu cầu cơ bản của con người và không ai ở Hoa Kỳ đáng phải chịu rủi ro bệnh tật và các tổn hại nghiêm trọng khác vì không được tiếp cận đầy đủ với việc quản lý nước thải an toàn và hiệu quả", Kristen Clarke — Trợ Lý Bộ Trưởng Tư Pháp thuộc Bộ Phận Dân Quyền của Bộ Tư pháp cho biết. “Theo luật dân quyền liên bang, các quan chức y tế của tiểu bang và địa phương có nghĩa vụ bảo vệ sức khỏe và sự an toàn của tất cả cư dân của mình. Chúng tôi sẽ tiến hành một cuộc điều tra công bằng và kỹ lưỡng về những mối lo ngại về công lý môi trường này và tác động của chúng đối với sức khỏe, cuộc sống và sự an toàn của người dân trên khắp Hạt Lowndes, Alabama.”
Bộ chưa đưa ra kết luận nào liên quan đến các cáo buộc trong vấn đề này. Bộ sẽ tiến hành cuộc điều tra này theo Khoản VI của Đạo Luật Quyền Công Dân năm 1964. Khoản VI cấm những người nhận hỗ trợ tài chính liên bang phân biệt đối xử dựa trên chủng tộc, màu da hoặc nguồn gốc quốc gia. Theo Khoản VI, bộ được ủy quyền điều tra xem những người nhận tài trợ của bộ có thực hiện hành vi phân biệt đối xử bất hợp pháp hay không.
Bộ Phận Tuân Thủ và Điều Phối Liên Bang của Bộ Phận Dân Quyền đang tiến hành cuộc điều tra này với sự hỗ trợ của văn phòng Luật Sư Hoa Kỳ tại Hạt Tọa Lạc Ở Giữa Alabama. Các cá nhân có thông tin liên quan được khuyến khích liên hệ với Bộ Phận Tuân Thủ và Điều Phối Liên Bang qua email theo địa chỉ [email protected].
Giải quyết các tác động phân biệt đối xử về môi trường và sức khỏe thông qua việc thực thi luật dân quyền của quốc gia là ưu tiên hàng đầu của Ban Dân quyền. Thông tin bổ sung về Bộ Phận Dân Quyền có sẵn trên trang web tại www.justice.gov/crt.
Berkeley County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – James T. Cogle, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Cogle, 53, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Cogle admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.
Cogle faces up to 20 years of incarceration and fine of up to $1,000,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
U.S. Magistrate Judge Robert W. Trumble presided.
Beckley Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty to a federal gun crime.
According to court documents, Kaine William Durham, 25, was stopped by law enforcement in Beckley on November 7, 2020. Law enforcement officers recovered a Ruger P90 .45 caliber handgun from inside Durham’s vehicle. Durham had been previously convicted in Raleigh County Circuit Court of felony wanton endangerment in 2017.
Durham pleaded guilty to a one-count indictment charging him with being a felon in possession of a firearm. Durham faces up to 10 years in prison when he is sentenced on February 25, 2022.
United States Attorney William S. Thompson made the announcement and commended the excellent investigative work of the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Patrick Jeffrey is handling the prosecution.
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. 5:21-cr-00123.
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Ashland Man Sentenced to 152 Months for Armed Methamphetamine TraffickingRead the Press Release
ASHLAND, Ky.— An Ashland man Steven Halley, 28, was sentenced to 152 months in federal prison on Monday, by U.S. District Judge David Bunning, after pleading guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Halley’s plea agreement, he admitted that, on September 30, 2020, he was stopped by law enforcement for carless driving, in Boyd County. He was not a licensed driver and had methamphetamine and a handgun in the car. Law enforcement found him in possession of a .38 gun and 23.98 grams of methamphetamine. Halley was prohibited from possessing a firearm due to prior felony convictions.
Halley pleaded guilty in July 2021.
Under federal law, Halley must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Bobby Jack Woods, Sheriff, Boyd County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA and the Boyd County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Anesthesia providers and outpatient surgery centers pay more than $28 million to resolve kickback and False Claims Act allegationsRead the Press Release
ATLANTA – Three anesthesia providers and several Georgia outpatient surgery centers, as well as their physician-owners and an administrator, agreed to pay more than $28 million to resolve allegations that they entered into kickback arrangements by paying and receiving payments for medications, supplies, equipment and labor as well as free staffing in exchange for the referral of patients.
“A physician’s health care decisions should be based solely on what is in the patient’s best interest, not what increases the physician’s bottom line,” said Acting U.S. Attorney Kurt R. Erskine. “There are significant consequences for healthcare providers who put their own financial well-being ahead of the well-being of their patients.”
“Paying or receiving kickbacks to secure taxpayer-funded healthcare payments – as alleged in this case – is illegal and corrupts the federal health care system,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work diligently with our State and Federal law enforcement partners to protect government health programs and those they serve.”
“Medical providers who pay out or take kickback payments for referrals are taking advantage of patients and taxpayer funded healthcare programs,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is proud of the role it played in this settlement and will continue to provide investigative assets and resources to ensure no one takes advantage of a fair system and undermines the public’s trust.”
Anesthesia providers typically depend on hospitals and outpatient surgery centers for their income. If an anesthesia provider can secure an exclusive contract for anesthesia services with a center, it is guaranteed a steady stream of patient referrals during the term of the contract. As a result, anesthesia providers compete aggressively for these contracts.
The Government alleges that between 2005 and 2015, Ambulatory Anesthesia of Atlanta, LLC (f/k/a Ambulatory Anesthesia of Atlanta, PC) (“AAA”) and Northside Anesthesiology Consultants, LLC (“NAC”) made payments for drugs, supplies, equipment and labor, and provided free staffing to a number of Georgia outpatient surgery centers in order to induce the centers to select AAA and NAC to be their exclusive anesthesia providers. The Government alleges that these arrangements were negotiated by Stanford Plavin, M.D. on behalf of AAA and NAC. The Government alleges that these arrangements violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), and caused the submission of false claims in violation of the False Claims Act, 31 U.S.C. § 3729, et seq.
The following individuals and entities have entered into settlement agreements with the Government (listed in alphabetical order):
• Ambulatory Anesthesia of Atlanta, LLC (“AAA”)
• Arif A. Aziz, M.D.
• Jean Calhoun
• Jay A. Cherner, M.D.
• David Finkelman, M.D.
• Alan M. Fixelle, M.D.
• DCA Diagnostics, L.L.C.
• The Endoscopy Center, LLC (Savannah)
• Endoscopy Consultants, LLC
• Gastrointestinal Specialists of Georgia, P.C.
• Georgia Endoscopy Center, LLC
• G.I. Diagnostics Endoscopy Center, L.L.C.
• Eugene H. Hirsh, M.D.
• A. Steven McIntosh, M.D.
• North Fulton Medical Center, Inc.
• Northside Anesthesiology Consultants, LLC (“NAC”)
• Northwest Georgia Orthopaedic Surgery Center, LLC
• Stanford Plavin, M.D.
• M. Thomas Riddick, M.D.
• Bruce A. Salzberg, M.D.
• Gary S. Simon, M.D.
• David N. Socoloff, D.O.
• United Surgical Partners International, Inc.
• Wellbrook Endoscopy Center, P.C.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Kathleen Hartney-Velazco, M.D., Jan Kersey and Capitol Anesthesiology, P.C. (the Relators) under the qui tam or whistleblower provisions of the False Claims Act. United States ex rel. Capitol Anesthesiology, P.C., et al. v. Stanford Plavin, M.D., et al., No. 1:11-cv-2513-SCJ. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The Relators have received over $4,700,000.00 from the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services Office of Inspector General and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorney Neeli Ben-David and Georgia Assistant Attorney-General Sara Vann.
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.
Albuquerque man sentenced to 30 years in prison for travel to engage in sexual conduct with minor, child exploitation and child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Bentley Streett, 46, of Albuquerque, was sentenced in federal court today to 30 years in prison for child exploitation charges.
On Dec. 7, 2018, Streett pleaded guilty to interstate travel to engage in illicit sexual conduct with a minor, two counts of production of visual depictions of minors engaged in sexually explicit conduct, three counts of attempted production of child pornography, distribution of child pornography and possession of child pornography.
In his plea agreement, Streett admitted that between July 31, 2013, and Aug. 4, 2013, he traveled from Albuquerque to Sycamore, Illinois, for the purpose of engaging in sexual conduct with a 14-year-old victim. Streett also admitted that from May 2013 through at least January 2014, he attempted to persuade several minors to produce pornography and send the images to him, and that on Jan. 20, 2014, he sent images of child pornography to one of the minors. Streett admitted that he knew the victims with whom he was communicating were minors, and also admitted to saving child pornography on his laptop.
Upon his release from prison, Streett will be subject to 10 years of supervised release and must register as a sex offender.
This case was investigated by the FBI Albuquerque Field Office, the Bernalillo County Sheriff’s Office, the New Mexico ICAC Task Force, the New Mexico Attorney General’s Office and the Regional Computer Forensics Laboratory (RCFL). The case is being prosecuted by Assistant U.S. Attorney Sarah Mease as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Acting U.S. Attorney Chase Announces the Indictment of Five People in a Methamphetamine Drug Trafficking Conspiracy Directed at the Spirit Lake and Turtle Mountain ReservationsRead the Press Release
Fargo – Acting United States Attorney Nick Chase announced that a federal grand jury has indicted five individuals for Conspiracy to Possess with Intent to Distribute a Controlled Substance and Distribution of a Controlled Substance (Methamphetamine).
The indictment alleged that the following individuals conspired to sell methamphetamine:
• Uzziel Lucero Garcia, a/k/a O Girl, a/k/a Uzzi, age 25, Arizona
• Allan Gordon Widmayer, a/k/a Woody, age 57, Minot, North Dakota
• Corey James Baker, age 50, Sheyenne, North Dakota
• Nathan James Smith, age 40, Fort Totten, North Dakota
• Charlsie Marie Walking Elk, age 36, Tokio, North Dakota
The last of the charged defendants, Smith, appeared in federal court November 8, 2021.
In January of 2021, Nathan Smith was arrested on Spirit Lake tribal charges following a high-speed chase. A later search of his vehicle yielded 73 grams of methamphetamine. The investigation indicated that the methamphetamine came from Baker through Charlsie Walking Elk.
As a result of a traffic stop in Grand Forks in June of 2021, law enforcement seized eight ounces of methamphetamine and more than $27,000 in cash from Baker.
Baker’s sources were identified as "Woody" from Minot and "O Girl" from Arizona, later identified as defendants Allan Widmayer and Uzziel Garcia. A controlled buy and a search warrant on Widmayer’s house yielded more than 30 pounds of methamphetamine and more than $32,000 in cash.
Garcia was arrested after she had been in contact with Widmayer and had traveled to North Dakota to collect money.
The investigation indicated that Baker had been receiving 2-3 pounds of methamphetamine per month from Widmayer and Garcia since 2018, resulting in more than 350 pounds of methamphetamine. The methamphetamine was primarily distributed on the Spirit Lake and Turtle Mountain Reservations.
"This investigation is an incredible federal, state, local and tribal law enforcement endeavor, working together to dismantle a major narcotics trafficking ring from our North Dakota tribal communities," said Acting United States Attorney Nicholas W. Chase. "This conspiracy is alleged to have been targeting North Dakota communities in multiple pound quantities and that translates to thousands of doses of drugs that have been intercepted and taken off the street before they could further fuel addition."
"This indictment paints a tragic picture of a coordinated distribution effort to push this poison across tribal lands," said FBI Special Agent in Charge Michael Paul. "We have seen a recent surge in both methamphetamine and opioid cases, and the FBI remains committed to working with our partners to arrest those responsible for threatening and exploiting tribal communities."
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated Federal Bureau of Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Ward County Narcotics Task Force, Grand Forks County Narcotics Task Force, Lake Region Narcotics Task Force, and Eddy County Sheriff’s Department, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorneys Alex J. Stock and Lori H. Conroy assigned to the case.
Media Notification: Assistant US Attorneys Stock and Conroy are available for comments at 11:00 a.m., November 9, 2021 at 701-297-7400.
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ADA Settlement with Stamford YMCA Ensures Access to Programs for Children with Autism Spectrum DisorderRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that Stamford YMCA (“Stamford YMCA”) of Stamford, Connecticut, has entered into a settlement agreement with the government to resolve allegations that Stamford YMCA’s childcare programs and other services were not accessible to a child with Autism Spectrum Disorder in violation of the Americans with Disabilities Act of 1990 (“ADA”).
The matter was initiated by a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Connecticut’s Center for Children’s Advocacy (CCA) alleging violations of Title III of the ADA. Specifically, the complaint alleges that Stamford YMCA failed to adequately assist a child diagnosed with Autism Spectrum Disorder who requires reasonable modifications for effective communication in order to fully participate in the program.
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities and privileges of any place of public accommodation. Stamford YMCA is a private entity that operates childcare facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
The settlement agreement resolves complaints that Stamford YMCA was discriminating against the child on the basis of disability by refusing to conduct an individualized assessment of the child’s specific needs and by failing to make certain reasonable modifications to effectively communicate with the child. Under the agreement, Stamford YMCA is obligated to take critical steps toward improving access for children with Autism Spectrum Disorder, including revising its policies and procedures, revising its training, updating their parent handbook, and performing initial and ongoing assessments of the need for reasonable accommodations. Stamford YMCA will evaluate each request on an individualized basis, relying on objective evidence and current medical standards.
“The U.S. Attorney’s Office will continue to investigate and aggressively enforce violations of the Americas with Disabilities Act, especially violations that affect children and other vulnerable residents of Connecticut,” said Acting U.S. Attorney Boyle. “Parents rely on dependable childcare in order to work or go to school, and every child should have equal access to childcare and educational facilities. I thank Stamford YMCA’s management for their full cooperation during this investigation and for addressing these ADA issues without the need for litigation. Their actions will ensure that children with Autism Spectrum Disorder can enjoy the same benefits that other children enjoy, while giving their parents the confidence that staff will be trained to ensure that their children are well cared for.”
The agreement is effective for three years, during which time the U.S. Attorney’s Office will monitor Stamford YMCA’s compliance.
A copy of the settlement agreement will be found on www.ada.gov.
This matter was handled by Assistant U.S. Attorney William M Brown, Jr.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Activity in the United States Attorney's OfficeRead the Press Release
United States District Court Judge Nancy D. Freudenthal sentenced SEAN D. THOMAS, 49, of Farson, Wyoming on October 20, 2021 for tax evasion. He received five years of supervised probation and was ordered to pay $103,696 in restitution and a $100.00 special assessment. The Internal Revenue Service-Criminal Investigation investigated the case, and it was prosecuted by Assistant United States Attorney Eric J. Heimann.
Chief Federal District Court Judge Scott W. Skavdahl sentenced BRITTANY ANN WEAVER 32, of Cheyenne, Wyoming on October 29, 2021 for possession with intent to distribute methamphetamine and carrying a firearm during and relation to a drug trafficking crime. She received 120 months of imprisonment, to be followed by ten years of supervised release, and ordered to pay a $200.00 special assessment. The Drug Enforcement Administration investigated this case, and it was prosecuted by Assistant United States Attorney Jonathan C. Coppom.
United States District Court Judge Nancy D. Freudenthal sentenced MARCELINO CORTES-CRUS, 34, of Honduras on November 4, 2021 for illegal re-entry of previously deported alien into the United States. He received four months imprisonment and was ordered to pay a $100.00 special assessment. The United States Department of Homeland Security, Immigration and Customs Enforcement investigated the case, and it was prosecuted by Assistant United States Attorney Eric J. Heimann.
United States District Court Judge Nancy D. Freudenthal sentenced VICTOR MANUEL CRUZ-MORENO, of Mexico on November 4, 2021 for illegal re-entry of previously deported alien into the United States. He received time served plus up to 10 days to allow for deportation and a $100.00 special assessment. The United States Department of Homeland Security, Immigration and Customs Enforcement investigated the case, and it was prosecuted by Assistant United States Attorney Michael J. Elmore.
Monday 8 November 2021
Waterbury Man Sentenced to 82 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ANDRE DENNIS, 40, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 82 months of imprisonment, followed by four years of supervised release, for narcotics distribution gun possession offenses.
According to the evidence presented during his trial, in November 2018, Dennis was on special parole following his most recent conviction for possession of narcotics. On November 29, 2018, Connecticut parole officers and the Waterbury Police Department conducted a compliance check at Dennis’ residence and found a loaded Smith & Wesson pistol and approximately 45 grams of fentanyl, 12 grams of crack cocaine, and seven grams of powder cocaine. The search also revealed items used to process and package narcotics for sale, and more than $9,000 in cash.
Dennis’ criminal history includes several state felony convictions. 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 May 28, 2021, a jury found Dennis guilty of one count of possession with intent to distribute fentanyl, cocaine and cocaine base (“crack”), and one count of unlawful possession of a firearm by a felon. Dennis was found not guilty of one count of possession of a firearm in furtherance of a drug trafficking crime.
Dennis has been detained since his arrest on November 29, 2018.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterbury Police Department, with the assistance of Connecticut State Parole. This case was prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Hal Chen.
Virginia woman sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kaleah Scott, of Winchester, Virginia, was sentenced today to one year of probation for her role in a drug conspiracy that spanned several states, United States Attorney William J. Ihlenfeld, II announced.
Scott, 40, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin and Fentanyl.” Scott admitted to working with others to distribute heroin, fentanyl from June to November 2019 in Berkeley and Jefferson Counties and elsewhere.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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 U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Ukrainian Arrested and Charged with Ransomware Attack on KaseyaRead the Press Release
The Justice Department announced today recent actions taken against two foreign nationals charged with deploying Sodinokibi/REvil ransomware to attack businesses and government entities in the United States, amnounced Attorney General Merrick Garland, Deputy Attorney General Lisa Monaco, and Acting U.S. Attorney Chad E. Meacham.
An indictment unsealed today charges Yaroslav Vasinskyi, 22, a Ukrainian national, with conducting ransomware attacks against multiple victims, including the July 2021 attack against Kaseya, a multi-national information technology software company.
The department also announced today the seizure of $6.1 million in funds traceable to alleged ransom payments received by Yevgeniy Polyanin, 28, a Russian national, who is also charged with conducting Sodinokibi/REvil ransomware attacks against multiple victims, including businesses and government entities in Texas on or about Aug. 16, 2019.
According to the indictments, Vasinskyi and Polyanin accessed the internal computer networks of several victim companies and deployed Sodinokibi/REvil ransomware to encrypt the data on the computers of victim companies.
“Cybercrime is a serious threat to our country: to our personal safety, to the health of our economy, and to our national security,” said Attorney General Garland. “Our message today is clear. The United States, together with our allies, will do everything in our power to identify the perpetrators of ransomware attacks, to bring them to justice, and to recover the funds they have stolen from their victims.”
“Our message to ransomware criminals is clear: If you target victims here, we will target you,” said Deputy Attorney General Monaco. “The Sodinokibi/REvil ransomware group attacks companies and critical infrastructures around the world, and today’s announcements showed how we will fight back. In another success for the department’s recently launched Ransomware and Digital Extortion Task Force, criminals now know we will take away your profits, your ability to travel, and – ultimately – your freedom. Together with our partners at home and abroad, the Department will continue to dismantle ransomware groups and disrupt the cybercriminal ecosystem that allows ransomware to exist and to threaten all of us.”
“Ransomware can cripple a business in a matter of minutes. These two defendants deployed some of the internet’s most virulent code, authored by REvil, to hijack victim computers,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “In a matter of months, the Justice Department identified the perpetrators, effected an arrest, and seized a significant sum of money. The Department will delve into the darkest corners of the internet and the furthest reaches of the globe to track down cyber criminals.”
“The arrest of Yaroslav Vasinskyi, the charges against Yevgeniy Polyanin and seizure of $6.1 million of his assets, and the arrests of two other Sodinokibi/REvil actors in Romania are the culmination of close collaboration with our international, U.S. government and especially our private sector partners,” said FBI Director Christopher Wray. “The FBI has worked creatively and relentlessly to counter the criminal hackers behind Sodinokibi/REvil. Ransomware groups like them pose a serious, unacceptable threat to our safety and our economic well-being. We will continue to broadly target their actors and facilitators, their infrastructure, and their money, wherever in the world those might be.”
According to court documents, Vasinskyi was allegedly responsible for the July 2 ransomware attack against Kaseya. In the alleged attack against Kaseya, Vasinskyi caused the deployment of malicious Sodinokibi/REvil code throughout a Kaseya product that caused the Kaseya production functionality to deploy REvil ransomware to “endpoints” on Kaseya customer networks. After the remote access to Kaseya endpoints was established, the ransomware was executed on those computers, which resulted in the encryption of data on computers of organizations around the world that used Kaseya software.
Through the deployment of Sodinokibi/REvil ransomware, the defendants allegedly left electronic notes in the form of a text file on the victims’ computers. The notes included a web address leading to an open-source privacy network known as Tor, as well as the link to a publicly accessible website address the victims could visit to recover their files. Upon visiting either website, victims were given a ransom demand and provided a virtual currency address to use to pay the ransom. If a victim paid the ransom amount, the defendants provided the decryption key, and the victims then were able to access their files. If a victim did not pay the ransom, the defendants typically posted the victims’ stolen data or claimed they sold the stolen data to third parties, and victims were unable to access their files.
Vasinskyi and Polyanin are charged in separate indictments with conspiracy to commit fraud and related activity in connection with computers, substantive counts of damage to protected computers, and conspiracy to commit money laundering. If convicted of all counts, each faces a maximum penalty of 115 and 145 years in prison, respectively.
The $6.1 million seized from Polyanin is alleged to be traceable to ransomware attacks and money laundering committed by Polyanin through his use of Sodinokibi/REvil ransomware. The seizure warrant was issued out of the Northern District of Texas. Polyanin is believed to be abroad.
On Oct. 8, Vasinskyi was taken into custody in Poland where he remains held by authorities pending proceedings in connection with his requested extradition to the United States, pursuant to the extradition treaty between the United States and the Republic of Poland. In parallel with the arrest, interviews and searches were carried out in multiple countries, and would not have been possible without the rapid response of the National Police of Ukraine and the Prosecutor General’s Office of Ukraine.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Dallas and Jackson Field Offices are leading the investigation. Substantial assistance was provided by the Justice Department’s Office of International Affairs and the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorney Tiffany H. Eggers of the U.S. Attorney’s Office for the Northern District of Texas and Senior Counsel Byron M. Jones from the Justice Department’s Computer Crime and Intellectual Property Section are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Texas, the FBI’s Dallas and Jackson Field Offices, and the Criminal Division’s Computer Crime and Intellectual Property Section conducted the operation in close cooperation with Europol and Eurojust, who were an integral part of coordination. Investigators and prosecutors from several jurisdictions, including: Romania's National Police and the Directorate for Investigating Organised Crime and Terrorism; Canada’s Royal Canadian Mounted Police; France’s Court of Paris and BL2C (anti-cybercrime unit police); Dutch National Police; Poland’s National Prosecutor’s Office, Border Guard, Internal Security Agency, and Ministry of Justice; and the governments of Norway and Australia provided valuable assistance.
The U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN), Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), Germany’s Public Prosecutor’s Office Stuttgart and State Office of Criminal Investigation of Baden-Wuerttemberg; Switzerland’s Public Prosecutor’s Office II of the Canton of Zürich and Cantonal Police Zürich; United Kingdom’s National Crime Agency; U.S. Secret Service; Texas Department of Information Resources; BitDefender; McAfee; and Microsoft also provided significant assistance.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the task force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the task force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
For more information about the Ransomware and Digital Extortion Task Force, read the Deputy Attorney General’s recent guidance memo on related investigations and cases. For more resources on ransomware prevention and response, visit StopRansomware.gov.