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Wednesday 15 September 2021
Claremore Man Pleads Guilty to Involuntary Manslaughter after Causing a Collision that Killed a WomanRead the Press Release
A Claremore man pleaded guilty today in federal court for driving recklessly and under the influence of alcohol when he caused an accident that killed a passenger in his vehicle, announced Acting U.S. Attorney Clint Johnson.
Billy Shane Hemphill, 48, pleaded guilty to involuntary manslaughter.
“Billy Hemphill’s series of irresponsible choices resulted in a collision that took one life and injured two others,” said Acting U.S. Attorney Clint Johnson. “The victim’s family and friends have endured a tremendous loss because of Hemphill’s criminal actions. Today, he has been held responsible for his conduct.”
In a blind plea, Hemphill admitted that on Aug. 11, 2019, he was driving recklessly while impaired and caused an accident that took the life a passenger.
The accident occurred at 11:30 pm on South 4210 Road, just south of 410 Road. The investigation revealed that Hemphill was traveling north at a high rate of speed when the passenger side of the vehicle veered off the road into a steep ditch. Hemphill eventually crashed into three trees, and the pick-up came to a rest. Witnesses stated that Hemphill was drinking alcohol and driving recklessly before the accident. First responders observed beer cans at the scene and noted the defendant smelled of alcohol. The passenger died at the scene. Hemphill and two other passenger were transported to hospitals in Tulsa and Claremore.
Hemphill will be sentenced on Jan. 20, 2022.
The FBI, Oklahoma Highway Patrol, and Oklahoma State Bureau of Investigation conducted the investigation. The Foyil Fire Department was the first to responded to the scene of the accident. Assistant U.S. Attorney Stacey P. Todd prosecuted the case.
Charleston Woman Sentenced to Prison for Defrauding Local BusinessesRead the Press Release
CHARLESTON, W.Va. – Misty Brotherton-Tanner, 41, of Charleston, was sentenced to 33 months in prison for the felony offenses of wire fraud and money laundering and was also ordered to pay restitution in the amount of $537,173. Brotherton-Tanner pleaded guilty to the charges in April 2021.
According to court documents and statements made in court, Brotherton-Tanner provided bookkeeping and accounting services for several local businesses in the Charleston area. From at least 2014 until 2020, Brotherton-Tanner devised a scheme to defraud these businesses. Brotherton-Tanner would electronically transfer money and move the electronic transactions between accounts in such a way so as to hide her fraud under the guise of legitimate transactions Brotherton-Tanner was not permitted to pay herself from these business accounts. Brotherton-Tanner’s fraud scheme included listing herself as an employee for the various businesses, setting up fraudulent accounts in the name of fictional workers that she would then add to the business accounting software, and even misrepresenting that she had paid state and federal taxes for the businesses when she had not done so. Throughout the scheme, Brotherton-Tanner moved the transferred money into her personal checking accounts. In total, Brotherton-Tanner defrauded various businesses of $537,173.
Brotherton-Tanner also stole money on behalf of and at the request of her mother, Lois Brotherton, who also pleaded guilty in connection with her role in the scheme and was sentenced to a period of probation.
Acting United States Attorney Lisa G. Johnston thanked the Federal Bureau of Investigation (FBI), the Internal Revenue Service-Criminal Investigations (IRS-CI), the United States Postal Inspection Service (USPIS) and the West Virginia State Tax Department-Criminal Investigation Division for their excellent work in this case.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Erik S. Goes and Kathleen Robeson handled 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. 2:20-cr-00146.
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Boise Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Michael Henry Cunningham, 36, of Boise, pleaded guilty to distribution of methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Cunningham was indicted by a federal grand jury in Boise on April 13, 2021.
According to court records, on November 18, 2020, Cunningham, sold five grams of actual methamphetamine to another individual in a parking lot in Boise.
Sentencing is set for December 1, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise. Cunningham faces a statutory mandatory minimum sentence of at least five years and up to forty years in federal prison, a $5,000,000 fine, and at least four years of supervised release. The federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez credited the efforts of the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Berwick Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg indicted Cody Drumheller, 28, of Berwick, Pennsylvania, on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in July 2021, Drumheller, who is prohibited from possessing firearms based on prior convictions, possessed a handgun and two sawed-off shotguns.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting 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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Australian Citizen Pleads Guilty to Visa FraudRead the Press Release
ALBANY, NEW YORK – Paul J. Carter, also known as Paul Hamilton, and formerly known as Paul Cristallo, pled guilty today to making false statements in a 2018 U.S. visa application.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Carter, age 55, an Australian citizen residing in Watervliet, New York, admitted to lying about his criminal history when he sought to renew his E-2 visa in 2018. E-2 visas admit certain foreign nationals who have invested a substantial amount of money in a U.S. business. Carter obtained an E-2 visa, and began residing in the United States, in 2014.
Carter faces up to 10 years in prison, as well as a maximum $250,000 fine, when Senior United States District Judge Thomas J. McAvoy sentences him on January 12, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, with assistance from the U.S. Department of State Diplomatic Security Service, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Asheville Man Pleads Guilty to Illegal Gun Possession, After Using A Straw Buyer to Obtain A FirearmRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Travis Shaqwann Fair, 31, of Asheville, has pleaded guilty to illegal possession of a firearm.Fair’s trial was scheduled to begin today before Chief U.S. District Judge Martin Reidinger. Just prior to jury selection, Fair elected instead to enter a guilty plea which was accepted by Judge Reidinger.
Fair’s girlfriend and co-defendant, Kourtney Nichelle Shivers, 29, of Asheville, has already pleaded guilty to making a false statement in connection with the acquisition of a firearm.
According to filed plea documents and today’s court hearing, on June 10, 2019, Fair visited a licensed firearms dealer in Asheville. Fair, who has a prior criminal conviction and is prohibiting from purchasing or possessing firearms, consulted with a store employee about purchasing a “cheap” firearm. The store employee showed Fair several firearms, including a 9mm firearm. Fair left the store shortly thereafter. According to court documents, a short while later, Shivers entered the same store and purchased the same firearm Fair had recently examined. As she previously admitted in court, over the course of the transaction, Shivers falsely certified on the required forms that she was the actual buyer of the firearm, when, in reality, she was a straw purchaser who bought the handgun at Fair’s request and for his use. Court records show that Fair provided Shivers with the funds to purchase the firearm, which she agreed to do, even though Shivers was aware that Fair was prohibited from possessing a firearm. Shivers later transferred the firearm to Fair.
Fair is currently in federal custody. The charge to which Fair has pleaded guilty carries a maximum penalty of ten years in prison. The statutory maximum penalty for Shivers’ offense is five years in prison. Both defendants are awating sentencing.
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Charges are also pending against three other individuals on charges related to the straw purchase of firearms.
In July 2021, a federal grand jury indicted Margaret Amanda Garmon, 36, of Charlotte, in connection with the straw purchase of a firearm from a federally licensed dealer of firearms. The indictment alleges that Garmon purchased the firearm for her co-defendant, Caleb Tharon Jefferson, 32, also Charlotte. The same indictment also charges Jefferson with possession of a firearm by a felon.
On August 17, 2021, Nyema Nakuay Cropper, 30, of Charlotte, was charged for allegedly straw purchasing a firearm from a licensed firearms dealer, falsely certifying on federal forms that Cropper was the actual buyer of the firearm, a statement she allegedly knew to be false.
“Straw purchasing firearms is a violation of our federal gun laws,” said Acting U.S. Attorney Stetzer. “We must stop the flow of illegal guns in our communities, and that includes prosecuting straw purchasers who knowingly buy firearms for individuals prohibited from possessing them in the first place.”
“Purchasing a firearm for someone prohibited from possessing a firearm is illegal and can be a serious threat to public safety,” said ATF Special Agent in Charge Vince Pallozzi. “Straw purchases put firearms in the wrong hands. ATF, along with our law enforcement partners, is committed to preventing illegal firearms purchases and holding those who endanger our communities accountable.”
In making today’s announcement, Acting U.S. Attorney Stetzer commended the ATF for their investigative efforts into straw firearms buyers, and thanked the Asheville Police Department for their invaluable assistance in Fair and Shivers’ case.
The charges against Garmon, Jefferson, and Cropper are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The U.S. Attorney’s Office in Asheville is in charge of Fair and Shivers’ prosecution.
Armed Loxley Meth Dealer Sentenced to Fifteen YearsRead the Press Release
MOBILE, AL – A Loxley, Alabama, man was sentenced today to 15 years in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice and possession of a firearm in furtherance of the drug trafficking crime.
According to court documents, Jonathon Howard Beck, 39, was identified during an investigation in which investigators used a confidential informant to make controlled purchases of methamphetamine ice from him. The informant was equipped with audio and video devices to record the transactions with Beck, and during the buy, Beck is seen handling a firearm as the drug deal was taking place. A search warrant was obtained for Beck’s residence and investigators discovered and seized additional methamphetamine ice and two pistols. After the federal indictment was returned, an arrest warrant was issued for Beck. When investigators arrived at Beck’s residence to arrest him, they observed drug paraphernalia in plain view in the residence, and they obtained another search warrant. The execution of the second warrant yielded more methamphetamine, drug proceeds and several firearms, including two guns with obliterated serial numbers.
United States District Court Judge Callie V.S. Granade imposed the 15-year sentence, consisting of 10 years on the drug charge and five years on the gun charge, which will run consecutively. The judge further ordered that Beck would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Beck will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Beck pay $200 in special assessments. All the firearms used during the commission of the offenses were ordered forfeited to the United States.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Armed Drug Trafficker Receives More Than 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Markel Brown, 20, of Maple Hill North Carolina, was sentenced yesterday to 126 months in prison for 1) Conspiracy to Possess with intent to distribute and distribute of 100 Grams or more of Heroin and 500 grams or more of Cocaine, 2) Possession with intent distribute 500 grams or more of Cocaine and 3) Possession of a firearm in furtherance of drug trafficking.
According to court documents, evidence presented in court and other documents, on August 13, 2019 law enforcement received information that Brown was returning from Atlanta, Georgia after having obtained a large amount of narcotics to be distributed in Eastern North Carolina. On August 13th, a Robeson County Sheriff’s Officer conducted a traffic stop on a car in which Brown was a passenger. Law enforcement officers searched the car and found more than a kilogram of cocaine and a .22 caliber handgun with altered serial numbers. Brown had $8,992 on his person. During the subsequent investigation, law enforcement uncovered that Brown was providing cocaine, heroin, and fentanyl to the Maple Hill area. Brown was responsible for distributing more than one and half kilograms of cocaine, 380 grams of heroin, 79 grams of a heroin/fentanyl mixture, and 70 grams of methamphetamine between December 2018 and September 2019. On October 24, 2020, while detained, a detention officer observed Brown in possession of homemade alcohol in his cell. When the officer attempted to retrieve the contraband, Brown struck the officer several times with a closed fist in the face and head area injuring the officer.
This is part of operation Ahab’s Harpoon which is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, Jacksonville Police Department and the Roberson and Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorneys Timothy Severo and Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00191-FL-3.
Arkansas Landscaper Pleads Guilty to Tax FraudRead the Press Release
An Arkansas resident pleaded guilty today to filing a false corporate tax return.
According to court documents, Pedro Garcia owned and operated Garcia Lawn Care, a landscaping business located in Rogers, Arkansas. From 2014 through 2020, Garcia underreported the true gross receipts from his lawn care business. Garcia’s customers mainly paid Garcia by check for his services. Garcia cashed most of these checks, rather than depositing them into his business accounts. Garcia used the cash to pay himself, his workers and other expenses. In total, Garcia did not report over $1 million in gross receipts, causing a tax loss of $208,844.
Garcia is scheduled to be sentenced at a later date and faces a maximum penalty of three years in prison. Garcia also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Nicholas Schilling of the Justice Department’s Tax Division are prosecuting the case.
Another extradition lands third ELN member on U.S. soil for international cocaine distributionRead the Press Release
HOUSTON – Another alleged associate of one of the most serious transnational criminal organizations has arrived from Colombia and is set to make his initial appearance in Houston federal court.
Jose Gabriel Alvarez Ortiz, 26, landed in Houston just moments ago. He is set to appear before U.S. Magistrate Judge Peter Bray at 2 p.m. tomorrow.
Ortiz is charged with distributing cocaine with other alleged members of the National Liberation Army (Ejército de Liberación Nacional aka ELN), two of whom - Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited last month. They are facing narco-terrorism and drug trafficking charges.
ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.
A federal grand jury returned an indictment against Ortiz, Picon-Rodriguez and Trigos-Celon and others on Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.
Ortiz is charged with international cocaine distribution. In early 2019, Ortiz and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.
Ortiz’s co-defendants are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).
According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.
The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alexandria Man Sentenced to 66 Months for Methamphetamine Trafficking and Firearm ChargesRead the Press Release
CONCORD - Robert Adkins, 34, of Alexandria, was sentenced on Tuesday to 66 months in federal prison for possession of methamphetamine with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 25, 2019, the Andover Police Department was investigating the theft of logging equipment. While at the suspect’s home, the suspect arrived home in his truck with Adkins as his passenger. While executing a search warrant for the suspect’s truck, they located a backpack belonging to Adkins. Inside the backpack they located identification for Adkins, a digital scale and a locked case.
After obtaining another search warrant for the backpack and locked case, investigators found a handgun, a loaded magazine, 36 grams of methamphetamine, and drug packaging materials. The handgun had been reported stolen from Ashland, New Hampshire.
Adkins previously pleaded guilty on May 3, 2021.
“Methamphetamine is a dangerous drug that has been appearing with disturbing frequency in New Hampshire,” said Acting U.S. Attorney Farley. “Armed drug dealers who sell methamphetamine present an even greater threat to public safety. This substantial sentence sends a message that armed drug traffickers will face significant penalties for their unlawful conduct.”
This matter was investigated by the Andover Police Department, Danbury Police Department, and Alexandria Police Department. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
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Albany Husband and Wife Charged with Social Security FraudRead the Press Release
ALBANY, NEW YORK – Denise Mitchell, age 57, and John Mitchell, age 61, of Albany, were arraigned today on a federal indictment charging them with knowingly concealing Denise Mitchell’s work history and making a false statement in order to deceive the Social Security Administration (SSA) into paying disability benefits to Denise Mitchell when she was not entitled to those benefits.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
The indictment alleges that from at least June 2015 until June 2017, Denise Mitchell and her husband John Mitchell, who acted as her representative payee, knowingly failed to disclose that Denise Mitchell was working in order to deceive SSA into continuing to pay disability benefits to Denise Mitchell when she was otherwise ineligible to receive such benefits. The indictment also alleges that on June 8, 2017, Denise Mitchell knowingly made a false statement in a form filed with the SSA regarding her work activity between August 2012 and June 2017. The charges contained in the indictment are merely allegations, and the defendants are presumed innocent until and unless proven guilty.
The charges filed against Denise Mitchell and John Mitchell carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Acting U.S. Attorney announces almost half-million-dollar grant to serve victims of Oregon District shootingRead the Press Release
DAYTON, Ohio – Acting U.S. Attorney Vipal J. Patel today announced that the U.S. Department of Justice Office for Victims of Crime has awarded the State of Ohio $488,054 to serve victims and survivors of the August 4, 2019 shooting in Dayton, Ohio’s Oregon District.
“This money will support necessary and ongoing trauma-informed, evidence-based healing and resiliency services to direct and indirect victims of the shooting,” Acting U.S. Attorney Patel said. “Ohio Attorney General Dave Yost’s office will coordinate and administer the grant that will help pay for four additional mental health counselors and related costs at two mental health facilities to help those affected by the shooting.”
Nine people were killed and dozens were wounded in the 2019 mass shooting. The U.S. Attorney’s Office for the Southern District of Ohio federally charged a friend of the shooter, who has been sentenced in U.S. District Court to 32 months in prison on firearms violations.
Patel also announced almost $2.2 million in grants from the Justice Department’s Office on Violence Against Women (OVW) for the following agencies in the 48-county Southern District of Ohio:
- Legal Assistance for Victims (LAV) grants of $600,000 to the Legal Aid Society of Cincinnati and $600,000 to the Ohio Domestic Violence Network to support increases in the availability of legal assistance for adult and youth victims of domestic violence, dating violence, sexual assault, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence.
- $449,999 from the Outreach and Services to Underserved Population program to Equitas Health to develop and implement outreach strategies targeted at adult or youth victims of domestic violence, dating violence, sexual assault, or stalking in underserved populations, and to provide victim services to meet the needs of such populations, and
- $549,998 to Fairfield County from the Grants to Support Families in the Justice System program which is designed to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, and stalking or in cases involving allegations of child sexual abuse.
“I want to thank all of these important agencies for the ongoing work they do to help victims in our community and also congratulate them on successfully earning these grants,” Patel said.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Tuesday 14 September 2021
West L.A. Man Pleads Guilty to Fraudulently Obtaining Approximately $9 Million in COVID-Relief Loans, Some of Which Was Gambled AwayRead the Press Release
LOS ANGELES – A West Los Angeles man pleaded guilty today to federal charges stemming from a scheme that used a series of corporations he controlled to fraudulently obtain approximately $9 million in loans from COVID-relief programs, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.
Andrew Marnell, 41, who resides in the Beverly Grove neighborhood, pleaded guilty to one count of bank fraud and one count of money laundering.
Marnell admitted that he fraudulently obtained Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Marnell obtained seven PPP loans from financial institutions for corporations he controlled that brought him just under $9 million.
Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. Marnell, often using aliases, submitted fake and altered documents, including bogus federal tax filings and employee payroll records.
The PPP program was implemented by the CARES Act, which was signed into law in March 2020 and was designed to provide relief to businesses affected by the coronavirus pandemic. The CARES Act also provided funding to The Economic Injury Disaster Loan Program (EIDL) administered by the SBA. Marnell admitted that he fraudulently obtained $170,000 in EIDL loans.
Once the loans were funded, Marnell transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets, according to court documents, which note that Marnell spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at various gambling establishments.
As part of the plea agreement, Marnell agreed to forfeit items related to the pilfered PPP loan funds, including more than $1.54 million seized from several brokerage accounts, $319,298 in cash recovered from his residence, numerous electronic devices, a Rolex Oyster watch, a Range Rover and a Ducati motorcycle.
As a result of his guilty pleas, Marnell will face a statutory maximum sentence of 40 years in federal prison when he is sentenced by United States District Judge R. Gary Klausner on February 14, 2022. In addition to any prison sentence he receives, Marnell has agreed to pay restitution to the victim lenders to compensate the losses this case, an amount believed to be $7,341,376.
Marnell has been in custody since his arrest in this matter on July 16, 2020.
The Federal Housing Finance Agency’s Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation’s Office of Inspector General, IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General investigated this matter. The California Department of Justice’s Bureau of Gambling Control provided valuable assistance.
Assistant United States Attorney Kerry Quinn of the Major Frauds Section and Justice Department Trial Attorney Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting this case.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
WDLA News Round-Up for September 14, 2021Read the Press Release
MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of four cases today in United States District Court in the Western District of Louisiana. United States District Judge Terry A. Doughty sentenced the following individuals today:
Devonte Oshay Gater, 29, of West Monroe, Louisiana, was sentenced 70 months in prison, followed by 3 years of supervised release, for illegal possession of a firearm. On April 6, 2020, officers with the Monroe Police Department responded to a 911 call complaining that an unknown person jumped into someone’s car threatening to rob someone nearby and shoot up the street. When officer arrived, they found Gater sitting in the backseat of the car. When ordered to get out of the car, Gater told officers he could not walk due to wounds suffered in a shooting a few days prior. Officers opened the door and Gater inched his way down to the ground. During a search of the vehicle, officers recovered a loaded revolver in the front passenger seat under a t-shirt. The female vehicle owner told officers the gun was not hers and that she had seen Gater brandishing the weapon prior to the arrival of the officers.
Gater has previous felony convictions for simple robbery (2011); theft of a motor vehicle and simple burglary (2015); and simple burglary (2018). As a convicted felon, Gater is prohibited from possessing a firearm.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Rayyun Derrell Sledge, 43, of Winnsboro, Louisiana, was sentenced 12 months and 1 day in prison, followed by 3 years of supervised release, for making a false statement during the purchase of a firearm. Sledge was convicted of a misdemeanor crime of domestic violence in June 1999 and signed documentation acknowledging the waiver of his rights at that time. On May 8, 2020, Sledge went to Mike’s Gun Shop in Winnsboro to purchase a firearm. When completing ATF Form 4473 in connection with his attempted purchase of a pistol, Sledge signed the form certifying that his answers were true, correct and complete. A question on the form asked, “[h]ave you ever been convicted in any court of a misdemeanor crime of domestic violence?” Sledge checked “no” to the question and signed his name, knowing that his answer was false. This false response from Sledge misled and deceived Mike’s Gun shop into making the sale of the firearm to him. Sledge was charged and pled guilty on May 28, 2021.
The ATF conducted the investigation. Assistant U.S. Attorney Mary J. Mudrick prosecuted the case.
John Edward McIntyre, 37, of West Monroe, Louisiana, was sentenced 180 months in prison, followed by 3 years of supervised release, for illegal possession of drugs and a firearm. On January 12, 2020, deputies with the Ouachita Parish Sheriff’s Office conducted a traffic stop on McIntyre for multiple traffic violations. Deputies noticed a digital scale in the cup holder of the vehicle. A K-9 officer alerted to the odor of illegal drugs coming from the Tahoe that McIntyre was driving, and deputies conducted a search of the vehicle. Inside the Tahoe, deputies found a backpack which contained a magnetic box with approximately 120 grams of methamphetamine, Clonazepam, Xanax and Concerta tablets, a hydrocodone tablet, 10 grams of marijuana, a large amount of cash, and a loaded semi-automatic pistol. At one point, law enforcement officers learned that McIntyre was distributing illegal drugs from a house located across the street from the West Monroe High School stadium. McIntyre was charged in this case with possession with intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking and he pled guilty to the charges on May 25, 2021.
The DEA, ATF, and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
Benjamin Strong, 39, Mangham, Louisiana, was sentenced to 125 months in prison, followed by 5 years of supervised release, for conspiring to possess with intent to distribute methamphetamine. The vehicle Strong was driving was stopped by Ouachita Parish Sheriff’s Office deputies on January 17, 2020. Strong gave deputies consent to search the vehicle and they found methamphetamine and three handguns inside. Strong admitted to driving his co-defendant around the Monroe in exchange for money and methamphetamine. He further admitted to meeting with multiple people to sell narcotics and to taking his co-defendant to a supplier to purchase more methamphetamine. Strong was charged with conspiracy to possess with intent to distribute methamphetamine and pled guilty to the charge on May 25, 2021.
The DEA, ATF, and Ouachita Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
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Virginia Beach Couple Sentenced for $31 Million Coupon Fraud SchemeRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to 12 years in prison, following last month’s sentencing of her husband to over 7 years in prison, for perpetrating a counterfeit coupon fraud scheme that cost retailers and manufacturers over $31 million in losses.
“These two defendants have been sentenced and held accountable for operating one of the largest coupon fraud schemes ever discovered in the United States, resulting in over $31 million in losses to victims across the country,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This massive counterfeit coupon scheme harmed consumers, retailers, and manufacturers nationwide, and the economy at large. The sentences imposed in this case illustrate the serious consequences that criminals can face in EDVA for carrying out these sham get-rich-quick schemes.”
“Protecting American consumers and businesses from individuals who seek to take advantage of the U.S. Mail by distributing counterfeit, illegal, and improper items remains a priority to Postal Inspectors,” said Inspector in Charge Daniel A. Adame, Washington Division of the U.S. Postal Inspection Service. “We will continue to pursue these individuals to bring them to justice. We are committed to safeguarding the public’s trust in our nation’s mail system.”
“Coupon fraud is not a harmless crime. Lori Ann Talens and her husband operated an audacious fraud scheme that stole more than $31 million directly from retailers and manufacturers,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI investigates these matters aggressively because this kind of fraud ripples through the economy, and unfortunately it is the innocent consumer that ultimately pays the price.”
According to court documents, from approximately April 2017 through May 2020, Lori Ann Talens, a/k/a "Lori Ann Villanueva Talens," 41, operated a complex scheme using social media sites and apps such as Facebook and Telegram to find groups of coupon enthusiasts and sell them counterfeit coupons. Lori Ann Talens, who operated online under the moniker “MasterChef,” used a computer to design, create, and produce a wide variety of counterfeit coupons in her Virginia Beach home. These counterfeit coupons were virtually indistinguishable from authentic coupons and were often created with inflated values, far in excess of what an authentic coupon would offer, in order to receive items from retail for free or for a greatly reduced price.
As part of the scheme, Lori Ann Talens would ship the counterfeit coupons throughout the United States using the U.S. Postal Service and other commercial parcel delivery services. She accepted payment for the counterfeit coupons through a variety of online payment methods, including Bitcoin and Paypal. Lori Ann’s husband, Pacifico Talens, Jr., 43, was aware of the counterfeit coupon scheme, profited from it, and assisted in the operation by shipping packages of counterfeit coupons and performing other administrative tasks at the direction of his wife.
The scheme was discovered when one of the Talens’s customers reported them to the Coupon Information Center (CIC), a coalition of consumer product manufacturers dedicated to coupon integrity. The CIC purchased coupons from the Talens, confirmed they were counterfeit, and contacted the U.S. Postal Inspection Service for further investigation.
After identifying the defendants as the source of the counterfeit coupons, federal law enforcement executed a search warrant on their residence. During the search, agents seized nearly $1 million worth of counterfeit coupons from the residence. Furthermore, a review of the Talens’s computer revealed images for over 13,000 separate and distinct counterfeit coupon designs. The CIC reviewed these images and compared them to the known counterfeit coupons in circulation. The analysis concluded that coupon redemptions using the 13,000 counterfeit designs on the couple’s computer had caused approximately $31,817,997 million in losses to retailers and manufacturers.
In a separate scheme, from approximately November 2015 through February 2020, Lori Ann Talens defrauded Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Lori Ann Talens applied for benefits for each of these programs and failed to disclose either her husband Pacifico’s legitimate employment income, or their own illegitimate counterfeit coupon income. Had she disclosed this income, the Talens would not have been eligible for these benefits. The total loss to Medicaid and SNAP was approximately $43,000.
Both defendants pleaded guilty to mail fraud in April. Lori Ann Talens also pleaded guilty to wire fraud and health care fraud. Pacifico Talens, Jr. was sentenced to 87 months in prison on August 19.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-39.
United States Intervenes and Files Complaint in False Claims Act Suit Against Health Insurer for Submitting Unsupported Diagnoses to the Medicare Advantage ProgramRead the Press Release
The United States has intervened and filed a complaint in the U.S. District Court for the Western District of New York under the False Claims Act against Independent Health Association, Independent Health Corporation (Independent Health), DxID LLC (DxID) and Betsy Gaffney, former CEO of DxID. The government alleges that Independent Health, DxID and Gaffney violated the False Claims Act by submitting or causing the submission of inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans in order to increase Independent Health’s reimbursement. Independent Health is headquartered in Buffalo, New York. DxID was headquartered in Buffalo until it ceased operations in August.
“The Medicare Advantage Program relies on accurate information about the health status of enrollees to ensure that they receive appropriate treatment and that participating health plans receive proper compensation for the services they actually provide,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “The department will continue to hold accountable health plans or providers that report unsupported diagnoses to inflate risk adjustment payments.”
“The defendants are alleged to have submitted unsupported diagnosis codes to inflate reimbursements, which enabled them to receive payments from Medicare that were greater than they were entitled,” said U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Defrauding taxpayer funded health care programs such as Medicare hurts not only taxpayers but our nation’s entire healthcare system.”
Under Medicare Advantage, also known as Medicare Part C, Medicare beneficiaries have the option to enroll in managed healthcare insurance plans called Medicare Advantage Plans (MA Plans) that are owned and operated by private Medicare Advantage Organizations (MAOs). MA Plans are paid a fixed amount per enrollee to provide benefits covered by traditional Medicare to beneficiaries who enroll in their MA Plan. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, make upward payment adjustments to MA Plans based on demographic information and the health status of each plan beneficiary. The adjustments are made using what are commonly referred to as “risk scores.” In general, a beneficiary with more severe diagnoses will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Independent Health offers two MA Plans in New York State. Its wholly-owned subsidiary, DxID, provided retrospective chart review and addenda services to Independent Health and other MA Plans.
The United States alleges that DxID coded conditions that were not documented in the patient’s medical record during a visit or encounter. The government further alleges that DxID also asked health care providers to sign addenda forms up to a year after a visit or an encounter and subsequently used the addenda as substantiation for adding risk-adjusting diagnoses that were not documented during the patient encounter, in violation of Medicare requirements. DxID operated on a contingency fee of up to 20% of the additional recovery that the MA Plans received based on diagnoses captured by DxID.
The complaint alleges that these unsupported diagnoses inflated the risk scores of beneficiaries, resulting in inflated payments to Independent Health and other MA Plans. The lawsuit further alleges that once Independent Health became aware of these unsupported diagnosis codes, it failed to take corrective action to identify and delete the unsupported codes.
The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits. Although the United States initially advised the court that it was not intervening in this case, the court subsequently granted the United States’ motion to intervene for good cause. The whistleblower, Teresa Ross, is a former employee of Group Health Cooperative (GHC). GHC was an MAO that offered MA Plans in Washington State. From 2011 to 2012, GHC used DxID’s chart review services. In November 2020, GHC entered into a settlement with the United States and Ross to resolve the claims against it arising out of this matter.
The United States’ intervention in 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).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Western District of New York, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (W.D.N.Y.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
U.S. Justice Department announces investigation into conditions in Georgia prisonsRead the Press Release
WASHINGTON: The U.S. Justice Department announced today that it has opened a statewide civil investigation into conditions of confinement of prisoners held in Georgia’s prisons.
The investigation will examine whether Georgia provides prisoners reasonable protection from physical harm at the hands of other prisoners. The department also will continue its existing investigation into whether Georgia provides lesbian, gay, bisexual, transgender, and intersex prisoners reasonable protection from sexual abuse by other prisoners and by staff.
“This investigation is an example of our office’s commitment to stamping out violence in our district, no matter where it is found, no matter who the victim is,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “We look forward to working with the State of Georgia, the Georgia Department of Corrections, the Civil Rights Division of the Department of Justice, and our counterparts in the U.S. Attorney's Offices for the Northern and Middle Districts of Georgia to further our shared mission to keep correctional facilities safe for the sake of our community, the prisoners housed there, and the dedicated staff who work there.”
“Ensuring the inherent human dignity and worth of everyone, including people who are incarcerated inside our nation’s jails and prisons, is a top priority,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department’s investigations into prison conditions have been successful at identifying systemic constitutional violations and their causes, fixing those causes and stopping the violations. We are investigating prison violence and abuse in Georgia’s prisons to determine whether Constitutional violations exist, and if so, how to stop them.”
“Individuals sentenced to prison in Georgia Department of Corrections facilities deserve to be treated humanely,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “Our office is committed to ensuring state prisoners are safe while serving their sentences. We look forward to working cooperatively with the Georgia Department of Corrections to ensure the safety of all individuals in its prisons.”
“Prison conditions that enable inmates to engage in dangerous and even deadly activity are an injustice, jeopardizing the lives of detainees, staff members and other corrections personnel,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our local law enforcement and corrections partners, with whom we work with closely each and every day, are indispensable to our united goal of achieving a safer Georgia for all. Under the leadership of the department’s Civil Rights Division, we look forward to collaborating with our state partners to address our mutual concern for safety in the corrections system.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the department has the authority to investigate whether any violations of prisoners’ constitutional rights result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Special Litigation Section of the Department of Justice Civil Rights Division is conducting this investigation jointly with the U.S. Attorney’s Offices for the Northern, Middle and Southern Districts of Georgia. Assistant U.S. Attorney and Deputy Civil Division Chief Bradford C. Patrick is coordinating the investigation in the Southern District of Georgia. Individuals with relevant information are encouraged to contact the U.S. Department of Justice via phone at (844) 401-3736 or by email at [email protected].
Additional information about the Civil Rights Division’s CRIPA investigations related to prisons and jails can be found here: https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Three Former U.S. Intelligence Community and Military Personnel Agree to Pay More Than $1.68 Million to Resolve Criminal Charges Arising from Their Provision of Hacking-Related Services to a Foreign GovernmentRead the Press Release
WASHINGTON – On Sept. 7, U.S. citizens, Marc Baier, 49, and Ryan Adams, 34, and a former U.S. citizen, Daniel Gericke, 40, all former employees of the U.S. Intelligence Community (USIC) or the U.S. military, entered into a deferred prosecution agreement (DPA) that restricts their future activities and employment and requires the payment of $1,685,000 in penalties to resolve a Department of Justice investigation regarding violations of U.S. export control, computer fraud and access device fraud laws. The Department filed the DPA today, along with a criminal information alleging that the defendants conspired to violate such laws.
According to court documents, the defendants worked as senior managers at a United Arab Emirates (U.A.E.)-based company (U.A.E. CO) that supported and carried out computer network exploitation (CNE) operations (i.e., “hacking”) for the benefit of the U.A.E government between 2016 and 2019. Despite being informed on several occasions that their work for U.A.E. CO, under the International Traffic in Arms Regulations (ITAR), constituted a “defense service” requiring a license from the State Department’s Directorate of Defense Trade Controls (DDTC), the defendants proceeded to provide such services without a license.
These services included the provision of support, direction and supervision in the creation of sophisticated “zero-click” computer hacking and intelligence gathering systems – i.e., one that could compromise a device without any action by the target. U.A.E. CO employees whose activities were supervised by and known to the defendants thereafter leveraged these zero-click exploits to illegally obtain and use access credentials for online accounts issued by U.S. companies, and to obtain unauthorized access to computers, like mobile phones, around the world, including in the United States.
“This agreement is the first-of-its-kind resolution of an investigation into two distinct types of criminal activity: providing unlicensed export-controlled defense services in support of computer network exploitation, and a commercial company creating, supporting and operating systems specifically designed to allow others to access data without authorization from computers worldwide, including in the United States,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Hackers-for-hire and those who otherwise support such activities in violation of U.S. law should fully expect to be prosecuted for their criminal conduct.”
“Left unregulated, the proliferation of offensive cyber capabilities undermines privacy and security worldwide. Under our International Traffic in Arms Regulations, the United States will ensure that U.S. persons only provide defense services in support of such capabilities pursuant to proper licenses and oversight,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “A U.S. person’s status as a former U.S. government employee certainly does not provide them with a free pass in that regard.”
“The FBI will fully investigate individuals and companies that profit from illegal criminal cyber activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This is a clear message to anybody, including former U.S. government employees, who had considered using cyberspace to leverage export-controlled information for the benefit of a foreign government or a foreign commercial company – there is risk, and there will be consequences.”
“Today’s announcement shines a light on the unlawful activity of three former members of the U.S. Intelligence Community and military,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These individuals chose to ignore warnings and to leverage their years of experience to support and enhance a foreign government’s offensive cyber operations. These charges and the associated penalties make clear that the FBI will continue to investigate such violations.”
The Defendants’ Applicable Conduct
After leaving U.S. government employment, Baier, Adams and Gericke worked for a U.S. Company (U.S. Company One) that provided cyber services to a U.A.E. government agency in compliance with the ITAR pursuant to a DDTC-issued Technical Assistance Agreement (TAA) signed by U.S. Company One, the U.A.E. government, and its relevant intelligence agency. U.S. Company One’s TAA specifically required the parties to abide by U.S. export control laws; obtain preapproval from a U.S. government agency prior to releasing information regarding “cryptographic analysis and/or computer network exploitation or attack,” and; not “target or exploit U.S. Persons (i.e., U.S. citizens, permanent resident aliens, or U.S. companies or entities, or other persons in the United States) . . .” While employed by U.S. Company One, the defendants received periodic ITAR and TAA training.
In January 2016, after receiving an offer for higher compensation and an expanded budget, the defendants joined U.A.E. CO as senior managers of a team known as Cyber Intelligence-Operations (CIO). Prior to their departure, U.S. Company One repeatedly informed its employees, including the defendants, that the services they were providing constituted “defense services” under the ITAR, and that U.S. persons could not lawfully provide such services to U.A.E. CO without obtaining a separate TAA. After joining U.A.E. CO, the defendants sought continued access to U.S. Company One’s ITAR-controlled information, including from U.S. Company One employees, in violation of the TAA and the ITAR.
Between January 2016 and November 2019, the defendants and other U.A.E. CO CIO employees expanded the breadth and increased the sophistication of the CNE operations that CIO was providing to the U.A.E. government. For example, over an 18-month period, CIO employees, with defendants’ support, direction and supervision, created two similar “zero-click” computer hacking and intelligence gathering systems that leveraged servers in the United States belonging to a U.S. technology company (U.S. Company Two) to obtain remote, unauthorized access to any of the tens of millions of smartphones and mobile devices utilizing a U.S. Company Two-provided operating system. The defendants and other CIO employees colloquially referred to these two systems as “KARMA” and “KARMA 2.”
CIO employees whose activities were supervised by and/or known to the defendants used the KARMA systems to obtain, without authorization, targeted individuals’ login credentials and other authentication tokens (i.e., unique digital codes issued to authorized users) issued by U.S. companies, including email providers, cloud storage providers, and social media companies. CIO employees then used these access devices to, again without authorization, log into the target’s accounts to steal data, including from servers within the United States.
U.S. Company Two updated the operating system for its smartphones and other mobile devices in September 2016, undercutting the usefulness of KARMA. Accordingly, CIO created KARMA 2, which relied on a different exploit. In the summer of 2017, the FBI informed U.S. Company Two that its devices were vulnerable to the exploit used by KARMA 2. In August 2017, U.S. Company Two updated the operating system for its smartphones and other mobile devices, limiting KARMA 2’s functionality. However, both KARMA and KARMA 2 remained effective against U.S. Company Two devices that used older versions of its operating system.
The DPA’s Terms
Under the terms of the DPA, Baier, Adams and Gericke agreed to pay $750,000, $600,000, and $335,000 respectively, over a three-year term, which they may not be reimbursed for without the express approval of the U.S. government. In addition to the financial penalties, as part of the DPA, the defendants agreed to full cooperation with the relevant Department and FBI components; the immediate relinquishment of any foreign or U.S. security clearances; a lifetime ban on future U.S. security clearances; and certain future employment restrictions, including a prohibition on employment that involves CNE activity or exporting defense articles or providing defense services under the ITAR (e.g., CNE techniques), and restrictions on employment for certain U.A.E. organizations.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division (NSD), and the FBI’s Washington Field Office.
Assistant U.S. Attorneys Demian Ahn and Tejpal Chawla of the U.S. Attorney’s Office for the District of Columbia and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Scott Claffee of NSD’s Counterintelligence and Export Control Section led the investigation for the government.
Three Former U.S. Intelligence Community and Military Personnel Agree to Pay More Than $1.68 Million to Resolve Criminal Charges Arising from Their Provision of Hacking-Related Services to a Foreign GovernmentRead the Press Release
On Sept. 7, U.S. citizens, Marc Baier, 49, and Ryan Adams, 34, and a former U.S. citizen, Daniel Gericke, 40, all former employees of the U.S. Intelligence Community (USIC) or the U.S. military, entered into a deferred prosecution agreement (DPA) that restricts their future activities and employment and requires the payment of $1,685,000 in penalties to resolve a Department of Justice investigation regarding violations of U.S. export control, computer fraud and access device fraud laws. The Department filed the DPA today, along with a criminal information alleging that the defendants conspired to violate such laws.
According to court documents, the defendants worked as senior managers at a United Arab Emirates (U.A.E.)-based company (U.A.E. CO) that supported and carried out computer network exploitation (CNE) operations (i.e., “hacking”) for the benefit of the U.A.E government between 2016 and 2019. Despite being informed on several occasions that their work for U.A.E. CO, under the International Traffic in Arms Regulations (ITAR), constituted a “defense service” requiring a license from the State Department’s Directorate of Defense Trade Controls (DDTC), the defendants proceeded to provide such services without a license.
These services included the provision of support, direction and supervision in the creation of sophisticated “zero-click” computer hacking and intelligence gathering systems – i.e., one that could compromise a device without any action by the target. U.A.E. CO employees whose activities were supervised by and known to the defendants thereafter leveraged these zero-click exploits to illegally obtain and use access credentials for online accounts issued by U.S. companies, and to obtain unauthorized access to computers, like mobile phones, around the world, including in the United States.
“This agreement is the first-of-its-kind resolution of an investigation into two distinct types of criminal activity: providing unlicensed export-controlled defense services in support of computer network exploitation, and a commercial company creating, supporting and operating systems specifically designed to allow others to access data without authorization from computers worldwide, including in the United States,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Hackers-for-hire and those who otherwise support such activities in violation of U.S. law should fully expect to be prosecuted for their criminal conduct.”
“Left unregulated, the proliferation of offensive cyber capabilities undermines privacy and security worldwide. Under our International Traffic in Arms Regulations, the United States will ensure that U.S. persons only provide defense services in support of such capabilities pursuant to proper licenses and oversight,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “A U.S. person’s status as a former U.S. government employee certainly does not provide them with a free pass in that regard.”
“The FBI will fully investigate individuals and companies that profit from illegal criminal cyber activity,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “This is a clear message to anybody, including former U.S. government employees, who had considered using cyberspace to leverage export-controlled information for the benefit of a foreign government or a foreign commercial company – there is risk, and there will be consequences.”
“Today’s announcement shines a light on the unlawful activity of three former members of the U.S. Intelligence Community and military,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “These individuals chose to ignore warnings and to leverage their years of experience to support and enhance a foreign government’s offensive cyber operations. These charges and the associated penalties make clear that the FBI will continue to investigate such violations.”
The Defendants’ Applicable Conduct
After leaving U.S. government employment, Baier, Adams and Gericke worked for a U.S. Company (U.S. Company One) that provided cyber services to a U.A.E. government agency in compliance with the ITAR pursuant to a DDTC-issued Technical Assistance Agreement (TAA) signed by U.S. Company One, the U.A.E. government, and its relevant intelligence agency. U.S. Company One’s TAA specifically required the parties to abide by U.S. export control laws; obtain preapproval from a U.S. government agency prior to releasing information regarding “cryptographic analysis and/or computer network exploitation or attack,” and; not “target or exploit U.S. Persons (i.e., U.S. citizens, permanent resident aliens, or U.S. companies or entities, or other persons in the United States) . . .” While employed by U.S. Company One, the defendants received periodic ITAR and TAA training.
In January 2016, after receiving an offer for higher compensation and an expanded budget, the defendants joined U.A.E. CO as senior managers of a team known as Cyber Intelligence-Operations (CIO). Prior to their departure, U.S. Company One repeatedly informed its employees, including the defendants, that the services they were providing constituted “defense services” under the ITAR, and that U.S. persons could not lawfully provide such services to U.A.E. CO without obtaining a separate TAA. After joining U.A.E. CO, the defendants sought continued access to U.S. Company One’s ITAR-controlled information, including from U.S. Company One employees, in violation of the TAA and the ITAR.
Between January 2016 and November 2019, the defendants and other U.A.E. CO CIO employees expanded the breadth and increased the sophistication of the CNE operations that CIO was providing to the U.A.E. government. For example, over an 18-month period, CIO employees, with defendants’ support, direction and supervision, created two similar “zero-click” computer hacking and intelligence gathering systems that leveraged servers in the United States belonging to a U.S. technology company (U.S. Company Two) to obtain remote, unauthorized access to any of the tens of millions of smartphones and mobile devices utilizing a U.S. Company Two-provided operating system. The defendants and other CIO employees colloquially referred to these two systems as “KARMA” and “KARMA 2.”
CIO employees whose activities were supervised by and/or known to the defendants used the KARMA systems to obtain, without authorization, targeted individuals’ login credentials and other authentication tokens (i.e., unique digital codes issued to authorized users) issued by U.S. companies, including email providers, cloud storage providers, and social media companies. CIO employees then used these access devices to, again without authorization, log into the target’s accounts to steal data, including from servers within the United States.
U.S. Company Two updated the operating system for its smartphones and other mobile devices in September 2016, undercutting the usefulness of KARMA. Accordingly, CIO created KARMA 2, which relied on a different exploit. In the summer of 2017, the FBI informed U.S. Company Two that its devices were vulnerable to the exploit used by KARMA 2. In August 2017, U.S. Company Two updated the operating system for its smartphones and other mobile devices, limiting KARMA 2’s functionality. However, both KARMA and KARMA 2 remained effective against U.S. Company Two devices that used older versions of its operating system.
The DPA’s Terms
Under the terms of the DPA, Baier, Adams and Gericke agreed to pay $750,000, $600,000, and $335,000 respectively, over a three-year term, which they may not be reimbursed for without the express approval of the U.S. government. In addition to the financial penalties, as part of the DPA, the defendants agreed to full cooperation with the relevant Department and FBI components; the immediate relinquishment of any foreign or U.S. security clearances; a lifetime ban on future U.S. security clearances; and certain future employment restrictions, including a prohibition on employment that involves CNE activity or exporting defense articles or providing defense services under the ITAR (e.g., CNE techniques), and restrictions on employment for certain U.A.E. organizations.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the Justice Department’s National Security Division (NSD), and the FBI’s Washington Field Office.
Assistant U.S. Attorneys Demian Ahn and Tejpal Chawla of the U.S. Attorney’s Office for the District of Columbia and Counsel for Cyber Investigations Ali Ahmad and Trial Attorney Scott Claffee of NSD’s Counterintelligence and Export Control Section led the investigation for the government.
Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
A Tennessee doctor pleaded guilty yesterday in the Eastern District of Tennessee to maintaining his Knoxville, Tennessee, pain clinic as an illegal drug premises.
According to court documents, Dr. David Newman, 61, of Maryville, owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge. Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020 and will be sentenced on Feb. 9, 2022.
Newman pleaded guilty to unlawfully maintaining a drug premises. He is scheduled to be sentenced on Feb. 9, 2022, and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The DEA, FBI, HHS-OIG, and TBI are investigating the case.
Trial Attorney Louis Manzo and Assistant Chief Jillian Willis of the Justice Department’s Fraud Section and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
Tennessee Doctor Pleads Guilty to Maintaining an Illegal Drug PremisesRead the Press Release
KNOXVILLE, Tenn. – On September 13, 2021, Dr. David Newman, 61, of Maryville, Tenn. entered a guilty plea to maintaining his pain clinic as an illegal drug premises in the Eastern District of Tennessee.
Sentencing has been set for February 9, 2022, at 3:00 pm, before the Honorable Thomas Varlan, U.S. District Judge, in the United States District Court at Knoxville. Newman faces a maximum sentence of 20 years in prison.
According to court documents, Newman owned, operated, and was Medical Director of Tennessee Valley Pain Specialists (TVPS), a non-insurance, cash-equivalent pain clinic. Newman owned this clinic with Dr. Steven Mynatt. Newman continued to operate and serve as Medical Director of TVPS, despite knowing that Mynatt was prescribing opioids to patients outside professional practice and for no legitimate medical purpose. Newman and Mynatt were charged with drug-related offenses as part of the April 2019 Appalachian Regional Prescription Opioid Strick Force Surge; Mynatt entered a guilty plea related to his distribution of controlled substances at TVPS in February 2020.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee; Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration (DEA); Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jackson of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG); and Special Agent in Charge Andy Corbitt of the Tennessee Bureau of Investigation (TBI) made the announcement.
The investigation was conducted by the DEA, FBI, HHS-OIG, and TBI.
Trial Attorney Louis Manzo, Assistant Chief Jillian Willis of the Justice Department’s Fraud Section, and Assistant U.S. Attorney Anne-Marie Svolto of the Eastern District of Tennessee are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills.
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Swampscott Financial Advisor Sentenced for Stealing Former Client's Retirement AssetsRead the Press Release
BOSTON – A Swampscott financial advisor was sentenced today in federal court in Boston for defrauding an elderly victim and her bank by stealing the victim’s retirement assets.
Felix Gorovodsky, 29, was sentenced by U.S. District Court Judge Denise J. Casper to 33 months in prison and two years of supervised release. Gorovodsky was also ordered to pay restitution of $310,492. On May 11, 2021, Gorovodsky pleaded guilty to one count of bank fraud.
Gorovodsky served as a financial advisor for the victim. In or about July 2019, the victim terminated that advisor relationship and revoked the power of attorney she had previously granted Gorovodsky. Approximately nine months later, Gorovodsky accessed and liquidated the victim’s bank account, transferring more than $250,000 into his own bank account. Gorovodsky then used the victim’s stolen retirement funds for personal expenses, including paying off more than $100,000 in federal student loans. As part of the scheme, Gorovodsky forged the victim’s signature on a purported “gift letter,” which he sent to the bank in an attempt to legitimize the fraudulent transfer.
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. The Department of Education, Office of Inspector General provided valuable assistance with the investigation. Assistant U.S. Attorneys Ian J. Stearns and Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Southwest Virginia Nonprofit Receives Federal Funding to Assist VictimsRead the Press Release
ROANOKE, Va. – A Southwest Virginia nonprofit legal aid society will receive more than $585,000 from the Legal Assistance for Victims (LAV) Program of the Department of Justice’s Office on Violence Against Women, Acting U.S. Attorney Daniel P. Bubar announced. Nationally, the LAV Program is awarding nearly $36 million in victim legal assistance funding to organizations across the country.
The Southwest Virginia Legal Aid Society will receive $585,631 to provide legal services under the grant program.
“Aiding victims of crime is an essential function of the Department of Justice,” Acting United States Attorney Daniel P. Bubar said today. “I am pleased to announce this significant grant, which will assist the Southwest Virginia Legal Aid Society in continuing to bring much-needed resources to the residents of Southwest Virginia.”
The awards announced today are part of more than $475.5 million that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
“The awards we make this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
The LAV Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid adult and youth victims of sexual assault, domestic violence, dating violence, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. Comprehensive legal services extend beyond representation in emergency and non-emergency protection order hearings to address the broad spectrum of legal issues that victims encounter, including family matters such as divorce, child custody or child support, immigration, administrative agency proceedings, and consumer or housing matters.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Shooting in Henderson Lands Man in Federal Prison for More Than 19 YearsRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 235 months in prison for two counts of Felon in Possession of Ammunition. On June 10, 2021, Caleb Malik Batchelor, pled guilty to the charges.
According to court documents and other information presented in court, on October 18, 2020, Batchelor, age 23, shot a female victim multiple times at the Highland Green Apartment Complex in Henderson, North Carolina. Batchelor and the victim had been involved in a domestic dispute. The victim sustained life-threatening injuries from the shooting but survived. Law enforcement recovered spent shell casings from the scene. About a month later, on November 16, 2020, Batchelor purchased additional ammunition from a gun store in Henderson. He is a convicted felon, having previous felony drug convictions, and was on probation from those convictions when he possessed the ammunition used to shoot the victim on October 18 and when he purchased additional ammunition on November 16, 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Henderson Police Department, and the Vance County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-541-D.
Rusk County Man Sentenced for Christmas Postal Crime SpreeRead the Press Release
TYLER, Texas – A Henderson man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Paul Wayne Kennedy, 39, pleaded guilty on April 19, 2021, to burglary of a United States Post Office, possession of stolen mail, possession of stolen money orders, damage to government property, theft of government property, and access device fraud. Kennedy was sentenced to 33 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“Americans should know that their postal items and post office boxes are protected by the dedicated men and women of the Department of Justice and the United States Postal Inspection Service,” said Acting U.S. Attorney Nicholas J. Ganjei. “When you send a letter or package, or order an item, have confidence that your mail is secure, and that any would-be thieves, like Mr. Kennedy, will be prosecuted to the fullest extent of the law.”
“Securing Postal Service facilities and safeguarding the U.S. Mail are top priorities for the Postal Inspection Service,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Suspects thinking they can target the U.S. Postal Service and avoid capture are committing an egregious error in judgment. We will commit all available resources to investigations of this nature, relentlessly pursue offenders and bring them to justice. Both suspects in this investigation have now been sentenced, made possible by the many hours of work and cumulative efforts of U.S. Postal Inspectors, multiple local law enforcement agencies and the U.S. Attorney’s Office in the Eastern District of Texas.”
According to information presented in court, between the afternoon of Dec. 23, 2019 and the morning of Dec. 26, 2019, Kennedy burglarized post offices in Price, Texas; Bronson, Texas; Bon Wier, Texas; and Evans, Louisiana and attempted to burglarize post offices in Newton, Texas, and Singer, Louisiana. At each location he burglarized, Kennedy stole mail, packages, and property belonging to the U.S. Postal Service. At the Price, Texas, and Bronson, Texas, post offices, Kennedy was able to gain access to the safes and steal money and U.S. money orders. His accomplice, Angela Moore, 37, of Longview, accompanied Kennedy during the Price burglary and the Newton attempted burglary. Later, on Dec. 27, 2019, Kennedy attempted to use a debit card that he stole during the Evans burglary at the Margaritaville Casino in Shreveport, Louisiana.
Kennedy and Moore were indicted by a federal grand jury in the Eastern District of Texas on June 18, 2020. Kennedy was also indicted by a federal grand jury in the Western District of Louisiana on June 17, 2020.
Moore pleaded guilty to possession of stolen mail and was sentenced to 6 months in federal prison on May 13, 2021.
This case was investigated by the U.S. Postal Inspection Service with the assistance of the Louisiana State Police, the Rusk County Sheriff's Office, the Sabine County Sheriff's Office, the Vernon Parish Sheriff's Office, and the Henderson Police Department, and was prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld for the Eastern District of Texas and Assistant U.S. Attorney John W. Nickel for the Western District of Louisiana.
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Robertsdale Meth Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Robertsdale, Alabama, man was sentenced today to 72 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, Brandon Kayne Love, 37, distributed methamphetamine ice he obtained from various suppliers in both Baldwin County, Alabama, and Pensacola, Florida. Love was distributing the drugs from various places in Baldwin County.
United States District Court Judge William H. Steele imposed the 72-month sentence. The judge further ordered that Love would also serve five years on supervised release following his imprisonment. As conditions of his supervision, Love will also undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Love pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Recidivist Delaware County Drug Trafficker Sentenced for Attempting to Purchase 20 Kilos of Cocaine During Undercover Sting OperationRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Romel Bolger, 41, of Drexel Hill, PA, was sentenced to ten years and four months in prison, and five years of supervised release by United States District Court Judge Mark A. Kearney for his illegal attempt to traffic approximately 20 kilograms of cocaine, which he was prepared to purchase with hundreds of thousands of dollars in cash at a hotel in Delaware County.
In May 2021, the defendant pleaded guilty to a Superseding Indictment charging him with attempting to possess with intent to distribute a controlled substance. According to court documents, in August 2020, just five years after his release from a nearly ten-year prison sentence for drug trafficking, Bolger negotiated the purchase of 20 kilograms of cocaine from an undercover Pennsylvania State Police Trooper in exchange for $700,000. On the date of the purported transaction, Bolger met with the undercover officer and inspected a kilogram of cocaine. After expressing his satisfaction with the drugs, he and his co-defendant, Kasib Parham, each carried a duffel bag full of cash to the scene of the purported transaction, a hotel in Delaware County. As they were about to make the deal, Bolger and Parham were arrested. In addition to the $700,000 contained in the two duffel bags, Parham had a bag containing various items of drug trafficking paraphernalia, and Bolger had an additional $10,440 in cash on his person. At Bolger’s residence, law enforcement recovered an additional $181,073 in cash. A search of Parham’s residence revealed additional cash, a money counter, and various items of drug trafficking paraphernalia with cocaine base (“crack”) residue.
“Drug trafficking is inherently dangerous for all touched by it, from those struggling with addiction, to residents of the neighborhoods where this behavior occurs, and of course for the distributors themselves,” said Acting U.S. Attorney Williams. “The federal government is aggressively prosecuting recidivist drug dealers like Bolger to ensure that those seeking to make a profit off the vulnerable face the consequences of their criminal acts. We want to thank our law enforcement partners in this case, the DEA and the PA State Police, for their hard work and dedication.”
“Bolger negotiated with an undercover officer for the purchase of twenty kilograms of cocaine and put together over $700,000 in cash, which demonstrated his intent in completing this deal,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The fact that Bolger was previously convicted of drug trafficking and had an additional $181,000 in drug proceeds at his residence is indicative of the threat he posed to our community. I want to thank our partners at the Pennsylvania State Police for our collaboration in this investigation.”
The case was investigated by the Drug Enforcement Administration and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Erica Kivitz.
Rantoul Man Sentenced to 10 Years in Prison for Enticement of a MinorRead the Press Release
URBANA, Ill. – Michael D. Turner, 36, of the 1500 block of Hobson Drive in Rantoul, Ill., was sentenced today to 10 years in federal prison, to be followed by 10 years of supervised release, for enticement of a minor.
In April 2021, Turner entered a guilty plea to one count of enticement of a minor. According to court documents, the case arose when the Illinois State Police learned that Turner was engaging in sexually explicit online communications with a 16-year-old girl in an effort to entice her into a sexual relationship.
In November 2020, a federal grand jury returned the indictment charging Turner with enticement of a minor, following his October 2020 arrest pursuant to a criminal complaint. Also in October 2020, U.S. Magistrate Judge Eric I. Long ordered that Turner be detained pending trial. He has remained in the custody of the U.S. Marshals Service since his arrest.
Turner was arrested following an investigation by the Illinois State Police, which is a member of the Internet Crimes Against Children Task Force. Special Assistant U.S. Attorney Shannon O’Brien – who also is the Deputy Bureau Chief with the Illinois Attorney General’s Office, Internet Crimes Against Children Task Force – represented the government in this case.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Penn North Fentanyl Dealer Sentenced to Nine Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Jerold Gilliam, age 40, of Baltimore, Maryland to nine years in federal prison, followed by three years of supervised release, for conspiracy to distribute a substance containing fentanyl and possession with the intent to distribute a substance containing fentanyl.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“The defendant was dealing the deadly narcotic fentanyl in the Penn North area of Baltimore, which is a neighborhood that our Strike Force has prioritized in its enforcement efforts,” said Acting United States Attorney Jonathan F. Lenzner. “Jerold Gilliam was a narcotics trafficker who polluted our communities with deadly narcotics, and as a result he will spend nearly a decade in federal prison.”
According to his plea agreement, in July 2019, investigators from Drug Enforcement Administration’s Strike Force Group 1 initiated an investigation into the area surrounding the intersection of Pennsylvania and North avenues in Baltimore City.
Over the course of the investigation, investigators intercepted electronic and wire communications involving Gilliam and drug trafficking activities including the supply, cost, and proceeds of drug transactions. Visual surveillance corroborated calls between co-conspirators including Gilliam retrieving packages and engaging in hand-to-hand narcotics retail sales. On some occasions, Gilliam met other co-conspirators to provide narcotics for co-conspirators to sell to customers. As a result of the investigation, investigators identified Gilliam as an associate of the Bullseye Drug Trafficking Organization (DTO).
Between July 2019 and October 2019, investigators conducted controlled purchases from co-conspirators who had discussed drug trafficking with Gilliam. Chemical analysis of these purchases identified the presence of fentanyl.
As stated in his plea agreement, investigators executed a search warrant on November 21, 2019 for Gillam’s person. Law enforcement recovered 50 gelatin capsules containing approximately 18 grams of fentanyl.
In addition, law enforcement executed a search warrant at various locations associated with the Bullseye DTO and suspected residences acting as narcotics and packing and storage locations. As a result of two executed search and seizure warrants, law enforcement recovered a total of 138 grams of a fentanyl and quinine mixture, 19 grams of fentanyl, a bag containing 268 grams of a fentanyl and acetylfentanyl mixture, cutting agents used in preparing controlled substances, paraphernalia, and packaging materials for drug distribution.
Throughout the course of his involvement, Gilliam agrees that it is reasonably foreseeable that he or other members of the conspiracy distributed at least 400 grams of a mixture containing fentanyl during the conspiracy.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner praised the DEA their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Charles Austin, who prosecuted the case.
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Panamanian Attorney General Visits Eastern District of TexasRead the Press Release
COPPELL, Texas – Attorney General Javier Caraballo, of the Republic of Panama, joined Acting U.S. Attorney Nicholas J. Ganjei; Drug Enforcement Administration Special Agent in Charge of the Dallas Field Division Eduardo Chavez; Special Agent in Charge Ryan L. Spradlin of Homeland Security Investigations, Dallas Field Office; Federal Bureau of Investigation Special Agent in Charge Matthew J. DeSarno; Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge Jamey Van Vliet; U.S. Postal Inspection Service Inspector in Charge Tom Noyes and Coppell Police Chief Danny Barton in the Eastern District of Texas to discuss investigations and advancements in joint efforts to curtail transnational criminal organizations operating between the United States and Panama.
During the meeting, officials discussed significant cases involving the encroachment of the Colombian Cartel, “Clan del Golfo,” into Panama. The Clan del Golfo is a drug trafficking organization responsible for multi-ton cocaine shipments originating from Colombia, Ecuador, Panama, Costa Rica, Guatemala, and Mexico for further distribution to the United States. The organization airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles to transport the majority of its cocaine shipments.
Federal prosecutors and law enforcement agencies in the Eastern District of Texas have worked tirelessly with Latin American countries, including Panama, to extradite and prosecute drug traffickers who continue to target the United States as a final destination for their drug trafficking enterprises. The partnership between EDTX and Panama in particular has generated tremendous results, with anti-narcotics operations resulting in the seizure of over 145 tons of cocaine and 75 defendants extradited to the Eastern District.
“Protecting our communities, fighting the scourge of drug and human trafficking, and combating money laundering and fraud requires a strong relationship and effective communication between national partners with shared values including a commitment to the rule of law,” said Acting U.S. Attorney Nicholas J. Ganjei. “That is why the United States is grateful for the cooperation of the Republic of Panama, and in particular the support of today’s guest, Attorney General for the Republic of Panama, Javier Caraballo Salazar. Panama is a vital partner to the United States in fighting transnational organized crime, counter-narcotics, and border security. And since taking office earlier this year, Attorney General Caraballo has continued and strengthened that partnership.”
“We appreciate the participation and support of the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar in sending a unified message to those, who without remorse, intend to gain profits by peddling their poisons into our communities, that they will be found and held accountable no matter where they attempt to hide”, said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “Recent successes were possible because of the cooperation of national and international partners like the Republic of Panama and the Attorney General for the Republic of Panama Javier Caraballo Salazar. DEA Dallas remains resolute on dismantling local and transnational criminal organizations who are trafficking drugs, creating drug violence, and causing drug related deaths within our communities. Together, we will make safe neighborhoods.”
“HSI’s long standing relationship with Panama has led to the arrests of dozens of transnational criminal organization members, the seizure of thousands of pounds of narcotics and millions of dollars in illicit proceeds,” said Ryan L. Spradlin, Special Agent in Charge Homeland Security Investigations Dallas. “Our law enforcement partnership with Panama is even more critical now as we work together to ensure that our transnational public safety threats are eliminated and the vulnerable protected in our communities.”
These cases are the result of extensive joint investigations by the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF agents and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States.
PWSA Sentenced for Violating Federal Clean Water ActRead the Press Release
PITTSBURGH, PA - The Pittsburgh Water and Sewer (PWSA) Authority has been sentenced in federal court to three years’ probation, ordered to pay a monetary judgment in the amount of $500,000, and to implement a comprehensive environmental compliance program after being convicted of violating the federal Clean Water Act, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on the PWSA.
According to information presented to the court, PWSA violated its National Pollutant Discharge Elimination System (NPDES) permit when it discharged a substance known as clarifier sludge into the Allegheny River on a number of occasions between 2010 and 2017. Under the terms of its NPDES permit, PWSA was not permitted to discharge sludge into the river. PWSA also violated its Industrial User permit by supplying ALCOSAN with false information about the amount of sludge it was shipping to ALCOSAN’s waste treatment facility. After the meters measuring the flow of sludge to the waste treatment facility became inoperable, the Authority used estimated numbers instead actual numbers. These numbers were included in reports and were certified as truthful and accurate. PWSA replaced the monitors five years after they became inoperable and federal investigators learned of their inoperability. Under the terms of its plea agreement, PWSA agreed to be placed on probation for three years and pay $500,000 into a self-funded compliance fund to be used to establish a comprehensive environmental compliance program. PWSA also agreed to hire an environmental compliance manager and take additional steps to ensure that it will follow state and federal environmental laws, rules, and regulations. PWSA is prohibited from using the cost of the fund as a basis for seeking a rate increase.
In imposing sentence, Judge Stickman observed that the purpose of the monetary judgment served productive as opposed to punitive ends and the PWSA had learned it lesson and was cleaning up its act.
Acting United States Attorney Kaufman commented that the plea agreement reached with the PWSA is intended to “ensure future compliance with federal environmental laws, rules, and regulations and to change the corporate culture at the Aspinwall plant that enabled this criminality to occur. The plea agreement, which precludes the Authority from passing the cost of the required compliance program to its ratepayers, will deter the Authority from engaging in future criminal conduct. The importance of PWSA to the Pittsburgh region cannot be underestimated. Nevertheless, public institutions must and will be held accountable for breaking the law.”
According to Jennifer Lynn, Special Agent in Charge of EPA’s criminal enforcement programs in Pennsylvania, “This sentence reinforces that governmental entities providing environmental services such as drinking water must develop and implement compliance programs that will prevent and detect violations of the law, just as ‘for profit’ organizations must.”
Assistant United States Attorney Michael Leo Ivory and Special Assistant U.S. Attorney Martin Harrell, an attorney with the Environmental Protection Agency, prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Environmental Protection Agency, Criminal Investigation Division for the investigation leading to the successful prosecution of the Pittsburgh Water and Sewer Authority.
Ophthalmologist Pleads Guilty to Seven-Year Healthcare Fraud Scheme and to Defrauding SBA Program Intended to Help Small Businesses During COVID-19 PandemicRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that AMEET GOYAL, an ophthalmologist in Rye, New York, pled guilty yesterday to perpetrating a seven-year healthcare fraud scheme by falsely billing for millions of dollars of procedures he did not perform, and also to fraudulently obtaining two Government-guaranteed loans intended to help small businesses during the COVID-19 pandemic while facing charges on pretrial release for the healthcare fraud scheme. GOYAL pled guilty before U.S. District Judge Cathy Seibel to all charges in a six-count superseding Indictment.
U.S. Attorney Audrey Strauss said: “Dr. Ameet Goyal was an experienced eye doctor who became blinded by greed and routinely defrauded patients who trusted him to heal their eyes. He grossly overbilled minor ophthalmological procedures, billed for tests and procedures that were never performed, falsified medical records, attempted to corrupt others in his practice to abet the scheme, and sent patients who refused to pay his fraudulent charges to collections. Already facing charges for defrauding patients and insurers of millions of dollars, Goyal committed a new fraud in applying for Paycheck Protection Program loans on behalf of two separate businesses and lying on the applications. Goyal looted over $630,000 in federal funds earmarked for legitimate small businesses affected by the COVID-19 pandemic. Goyal has now admitted to both fraudulent schemes, agreed to forfeit $3.6 million, and faces the possibility of a significant term of incarceration.”
According to the allegations contained in the Indictment, court filings, and statements made during court proceedings:
At all relevant times, GOYAL owned and operated the ophthalmology practice Ameet Goyal M.D. P.C., doing business as Rye Eye Associates, with offices in Rye, Mt. Kisco, and Wappingers Falls, New York, and Greenwich, Connecticut (the “Practice”). Between 2010 and 2017, GOYAL engaged in widespread healthcare fraud by consistently “upcoding” simpler, lower-paying surgical procedures and examinations as complex, higher-paying major operations in fraudulent billings submitted to Medicare, private insurance companies, and patients. As a result, GOYAL fraudulently obtained at least $3.6 million in payments for procedures he did not perform. As part of the scheme, GOYAL routinely falsified patient medical records, authoring fictitious templated operative reports that matched the complex operation he billed rather than the different minor procedure he actually performed. GOYAL also pressured other employees in the Practice to engage in the scheme, and threatened the livelihood of employees who refused to comply. GOYAL caused patients to pay thousands of dollars out of pocket for fraudulently billed charges, and initiated debt collection proceedings against patients who did not pay the full amounts of those false charges.
For example, GOYAL and others at the Practice routinely treated patients for an excision of a chalazion, a small bump on an eyelid, typically removed in less than 15 minutes. An excision of chalazion, when billed truthfully under its associated code, paid the Practice approximately $200 on average from patients and insurance programs. However, GOYAL systematically billed an excision of chalazion and other similar superficial eyelid procedures as if he had performed an orbitotomy together with a conjunctivoplasty, which are complex surgeries into the orbit of the eye, often to remove an orbital tumor together with grafting to close the resulting wound, that typically take an hour or more to perform. These substantial surgeries, as billed, paid the Practice approximately $1,400 on average from a combination of insurance and patient out-of-pocket payments. GOYAL also upcoded certain superficial procedures as an excision and repair of eyelid, a type of higher-paying eyelid surgery involving reconstruction or removal of certain lesions other than chalazions. During the relevant time period, GOYAL billed less than 40 chalazions under the billing code designated for excision of chalazion, while billing over 1,400 orbitotomies, over 700 bundled conjunctivoplasties, and over 1,600 excision and repair of eyelid surgeries, all of which he claimed to have personally performed. The scheme involved numerous other CPT codes for procedures and examinations not performed or upcoded, resulting in at least $3.6 million of ill-gotten gains for GOYAL.
On November 21, 2019, an indictment (the “Indictment”) was returned in the action United States of America v. Ameet Goyal, 19 Cr. 844 (CS) (S.D.N.Y.), charging GOYAL with healthcare fraud, wire fraud, and making false statements relating to healthcare matters. On November 22, 2019, GOYAL was arraigned on the Indictment and placed on pretrial release pursuant to an order that notified GOYAL of the potential effect of committing a criminal offense while on pretrial release.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). Applicants with pending criminal charges are ineligible for PPP loans. The PPP also limits each eligible borrower to one loan, and a maximum loan amount calculated based on a business’s average monthly payroll expenses.
In or about April 2020, GOYAL applied to the SBA and Bank-1, a federally insured institution, for over $630,000 in Government-guaranteed loans through the SBA’s PPP Program. Specifically, on or about April 21, 2020, GOYAL applied for a loan in the amount of $358,700 for the business “Ameet Goyal,” with his own social security number and email address. On or about April 29, 2020, GOYAL applied for a second loan in the amount of $278,500, with a business name “Rye eye associates,” using the Employer Identification Number for Ameet Goyal M.D. P.C and a different email address controlled by GOYAL. To substantiate each loan, however, GOYAL submitted the exact same underlying payroll expense report, showing the same employees and payroll costs.
On both applications, GOYAL falsely answered that he was not facing any pending criminal charges, and electronically placed his initials “AG” directly under his “No” response. GOYAL also falsely certified, among other things, that his business would not receive another PPP loan until the end of the year. After obtaining approval from Bank-1 and the SBA through his fraudulent misrepresentations, GOYAL executed loan notes for two loans. On May 4, 2020, GOYAL received the first loan of $358,700, and on May 11, 2021, GOYAL received the second loan of $278,500. GOYAL used the business checking account into which these funds were deposited to pay business and personal expenses, including by making a $1,800 payment to a country club in Westchester, New York, within days of receiving the first loan.
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GOYAL, 58, of Rye, New York, pled guilty to all six counts in the Superseding Indictment. The first count charged healthcare fraud, which carries a maximum sentence of 10 years in prison; the second count charged wire fraud, which carries a maximum sentence of 20 years in prison; and the third count charged making false statements relating to health care matters, which carries a maximum sentence of five years in prison. Counts four, five, and six charged that while on pretrial release, the defendant committed the following offenses, respectively: bank fraud, which carries a maximum sentence of 30 years in prison; making false statements on a loan application, which carries a maximum sentence of 30 years in prison; and making false statements in a matter within the jurisdiction of the executive branch of the Government of the United States, which carries a maximum sentence of five years in prison. Additionally, a conviction under counts four, five, and six, if committed while on pretrial release, provides for an additional maximum sentence of 10 years in prison consecutive to any other sentence of imprisonment.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
GOYAL is scheduled to be sentenced by Judge Seibel on January 6, 2022, at 2:30 p.m.
Ms. Strauss praised the work of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, and the Office of the Inspector General of the SBA, whose expertise and diligence were integral to the development of this investigation and the guilty plea.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Vladislav Vainberg, David Felton, and Margery Feinzig are in charge of the prosecution. A civil fraud lawsuit relating to healthcare fraud under the False Claims Act is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jeffrey K. Powell is in charge of the pending civil case.
Ohio Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Omarr Boone, 37, of Ravenna, Ohio, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, officers with the Huntington Police Department responded to a shooting at a Shell gas station on March 9, 2021. After a vehicle pursuit, Boone was placed under arrest. Officers searched his vehicle and found a stolen Smith and Wesson SD9 VE in the vehicle. Boone was prohibited from possessing a firearm under federal law because of previous felony convictions in Michigan and Ohio.
Boone faces up to 10 years in prison when he is sentenced on December 13, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department. United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00101.
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North Carolina Woman Pleads Guilty in Medicaid Fraud SchemeRead the Press Release
NORFOLK, Va. – A Raleigh, North Carolina, woman pleaded guilty today to making false statements to Medicaid to obtain payments for services and benefits.
“The defendant abused her position as a licensed professional counselor to orchestrate a scheme involving the fraudulent submission of Medicaid claims for over 100 patients,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Working with our partner agencies, we will continue to investigate and prosecute those who attempt to defraud and manipulate the health care system for their own personal benefit.”
According to court documents, Connie Omari, 37, was a licensed professional counselor in both the Commonwealth of Virginia and North Carolina. Omari owned and operated a Norfolk-based company called Sacred Journey, Inc., a provider of partial hospitalization services to psychiatric patients at risk of full hospitalization, or patients transitioning from psychiatric hospitalization. Omari overbilled Medicaid by submitting false claims to Medicaid when no service was provided to any Medicaid recipient.
Court documents detail thirty-nine specific instances in January and February of 2017 when Omari billed Medicaid for services she purportedly provided to patients. In reality, Omari and her family were on a trip out of the country, and it was impossible for her to provide the services for which she billed. In total, from in or about September 2015 through June 2017, Omari submitted false claims to Medicaid for over 100 patients, causing Medicaid a loss in excess of $548,000.
Omari is scheduled to be sentenced on Feb 18, 2022. She faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Significant assistance was provided by the Medicaid Fraud Control Unit of the Virginia Office of the Attorney General.
Assistant U.S. Attorney Joseph Kosky is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-113.
Nigerian National Pleads Guilty to Role in Fraud and Money Laundering SchemeRead the Press Release
HUNTINGTON, W.Va. – A Nigerian national who was indicted in April 2021 in connection with a large fraud and money laundering scheme pleaded guilty to conspiracy to commit money laundering.
According to court documents and statements made in connection with the plea hearing, Kenneth Ogudu, also known as Kenneth Lee, 28, a citizen of Nigeria residing in Columbus, Ohio, was involved from at least May 2019 to October 8, 2020, with Kenneth Emeni, John Nassy, Romello Thorpe, Oluwagbenga Harrison, Ouluwabamishe Awolesi, and others in a money laundering conspiracy that took place in Huntington, West Virginia and elsewhere. Ogudu lived in Huntington from May to December 2019. As part of the scheme, co-conspirators created online false personas and contacted victims via email, text messaging or online dating and social media websites in order to induce the victims into believing they were in a romantic relationship, friendship or business relationship with various false personas. The victims were persuaded to send money for a variety of false and fraudulent reasons for the benefit of the false personas. Ogudu’s role in the conspiracy was to let victims transfer money to his bank account that he knew was from unlawful activity. Ogudu admitted that after the victims’ funds were deposited into his account, he kept some of the money for himself and forwarded some of the money to his co-conspirators via wire transfers or Zelle. Ogudu further admitted that he and his co-conspirators transferred large sums of their fraud proceeds to offshore accounts. Ogudu obtained funds from at least 12 different fraud victims during the money laundering conspiracy.
Ogudu faces up to 20 years in prison when he is sentenced on December 13, 2021. As part of his plea agreement, Ogudu agreed to pay $324,865.85 in restitution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police, and the South Charleston Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys R. Gregory McVey and Kathleen Robeson are handling the prosecution.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-0068 (Emeni, et al).
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Navajo man pleads guilty to voluntary manslaughter in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Brandon Charley, 36, of Prewitt, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty on Sept. 8 to voluntary manslaughter in Indian Country.
In the plea agreement, Charley admitted that on June 24, 2018, he intentionally shot and killed John Doe in Prewitt on the Navajo Nation reservation. Charley also admitted that when he shot the victim, he did not have an objectively reasonable belief that anyone was in imminent danger.
Charley is currently in custody pending sentencing, which has not been scheduled yet. He faces up to 15 years in prison.
The Gallup Residency Agency of the FBI, New Mexico State Police, McKinley Sheriff’s Office and Navajo Nation Department of Public Safety investigated this case. Assistant U.S. Attorneys Joseph M. Spindle and Letitia C. Simms are prosecuting the case.
Money Launderer and Wholesale Supplier of Narcotics to East Baltimore Monument Street Drug Trafficking Organization Sentenced to 10 Years in Federal Prison and Ordered to Forfeit $472,000Read the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anton Williams, age 43, of Baltimore, to 10 years in federal prison, followed by four years of supervised release for conspiracy to distribute five kilograms or more of cocaine in the Monument Street area of East Baltimore; possession with intent to distribute fentanyl; and for money laundering. Judge Hollander also ordered Williams to forfeit $472,000, a .38-caliber revolver and eight rounds of .38-caliber ammunition. The sentence was imposed on September 10, 2021.
Judge Hollander also sentenced co-defendant Wardell Roundheart, age 44, of Baltimore, to 68 months in federal prison, followed by four years of supervised release, for conspiracy to distribute cocaine and for possession with intent to distribute a fentanyl and cocaine mixture.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA), Baltimore District Office; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“This Monument Street case in East Baltimore is the kind of impactful investigation that federal, state and local partners can build through collaboration and a dedicated commitment to improving our communities,” said Acting United States Attorney Jonathan Lenzner. “Getting wholesale narcotics dealers like Anton Williams off the streets is an important component of our efforts to address the violence associated with drug dealing. The illicit funds and real estate that law enforcement seized in this investigation reflect our commitment to disrupting drug organizations by going after the proceeds of their trade.”
"We are proud to be partners in these vital investigations which remove criminal elements involving drugs and violence from the streets. IRS-CI will continue to lend our financial expertise in these cases,” said Darrell J. Waldon, IRS-CI Acting Special Agent in Charge.
According to Williams’ and Roundheart’s guilty pleas, in July of 2018, DEA Strike Force Group 1—part of the Baltimore OCDETF Strike Force—began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”). Investigators conducted controlled purchases of narcotics from drug distributors in the shops, including Roundheart, utilizing confidential informants and undercover Baltimore Police Department (“BPD”) officers. These undercover purchases also identified the drugs shops’ sources of supply of narcotics, including Anton Williams.
As detailed in their plea agreements, investigators intercepted calls between Williams and co-conspirators and Roundheart and other members of the conspiracy discussing the distribution of controlled substances including cocaine, heroin and fentanyl. On February 19, 2019, Roundheart distributed a tramadol/fentanyl mixture to an undercover detective who believed he was purchasing heroin. On February 22, 2019, Roundheart directed another undercover detective to an individual to purchase of four clear top vials of cocaine and 10 gelatin capsules of what the detective thought was heroin, but was a tramadol/fentanyl mixture.
The total proceeds obtained by Williams from supplying controlled substances to co-conspirators was at least $472,000. Investigators discovered that Williams had acquired multiple properties, including Rosie’s Bar, located at 482 S. Bentalou Street, Baltimore, where Williams met with co-conspirators. Williams used limited liability companies (“LLC”), associates, or family members to purchase the properties to conceal the ownership of the properties, as well as to conceal the source of funds used to purchase the properties. Investigators intercepted calls between Williams and a lender discussing the payment for Rosie’s Bar. Based on the intercepted conversations, investigators believe Williams purchased the bar with drug trafficking proceeds. Additionally, Williams and his co-conspirators used this location to meet with drug customers for the purposes of collecting money and providing controlled substances to them. Investigators also identified seven other properties in Baltimore that Williams either owned or leased.
Investigators recovered a total of $363,233 from various bank accounts associated with Williams, all of which is believed to be drug proceeds. Since Williams is not known to have a job, all of the properties are believed to be purchased with drug proceeds.
On May 22, 2019, law enforcement executed a search warrant at Williams’ residence and recovered: a firearm; a money counter; 10 cell phones, including two phones intercepted during court ordered wiretaps; and $206,444 in cash, believed to be drug proceeds. Search warrants were also executed on two vehicles used by Williams. Investigators recovered multiple bags of suspected cocaine and heroin, as well as 76 grams of fentanyl.
Throughout the course of their involvement, it was reasonably foreseeable to Williams and Roundheart, and within the scope of the conspiracy that Williams or other members of the conspiracy would distribute more than 5 kilograms of cocaine and that Roundheart or other members of the conspiracy would distribute between 500 grams and two kilograms of cocaine, as well as quantities of crack cocaine, heroin and fentanyl during the course of and in furtherance of the conspiracy.
Of the 25 defendants indicted in this case, 24—including Williams and Roundheart—have pleaded guilty or been found guilty at trial. Over the course of the Monument Street investigation, law enforcement seized kilo quantities of drugs, loaded guns, and more than $535,781 in drug proceeds.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, IRS-CI, and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Mobile Woman Sentenced for Social Security Benefits Fraud Scheme Targeting Vulnerable Residents of Her Group HomesRead the Press Release
MOBILE, AL – The U.S. District Court sentenced a Mobile woman to 6 months in prison, 3 years of supervised release and ordered her to pay the Social Security Administration over $107,000 in restitution for lying to the Social Security Administration (SSA) to get the benefits of vulnerable persons whom she overcharged for room and board in her group boarding homes in Mobile.
According to court documents and testimony at her sentencing hearing today, Meoshi Shonta Nelson, 46, also known as Meoshi Williams, was previously convicted in 2015 of federal felony mail and access device fraud charges for stealing money from the fund established to compensate those with losses from the Deepwater Horizon Oil spill disaster. In that scheme, she submitted false claims for personal income loss and recruited family and friends to do the same, keeping some of the money they received. Nelson later lied to the SSA to obtain approval to receive and manage SSA benefits of persons who lived in three of her group boarding homes in the Mobile area. Specifically, as an applicant to the SSA’s Representative Payee Program, Nelson was required but failed to disclose that she was a convicted felon as of June 23, 2015, when she pleaded guilty to the mail and access device fraud charges described above.
Nelson repeatedly lied to the SSA in her representative payee applications and her SSA fund expenditures forms that she was not a convicted felon. When the SSA learned of her convictions in 2017, it barred her from serving as anyone’s representative payee and reassigned her beneficiaries.
Not to be deterred, Nelson circumvented the debarment by enlisting her family and friends to apply to serve as representative payees for residents of her group homes—in name only—who then turned over the money to her. Nelson took 75% off the top of from each of her SSA beneficiaries for room and board for their room, which averaged over $500.00 per month, from approximately six (6) residents of each home. The charge exceeded the fair market value of rent at the locations by two-to-four times. She also received federal food stamps for some of the residents. She provided services such as transportation to the doctor. The court ordered her to pay $107,000 to the SSA as restitution.
“Driven by greed, this woman preyed on vulnerable people, many of whom were elderly and could not manage their own finances,” said U.S. Attorney Sean P. Costello. “Hopefully, her time in prison will deter her from further committing further crimes against other members of our community, especially the elderly and vulnerable,” he added.
“Nelson’s fraudulent scheme exploited a vulnerable population who had trusted her and depended on her for care,” said Gail Ennis, Inspector General for the Social Security Administration. “I thank our law enforcement partners for working with us and the U.S. Attorney’s Office for prosecuting this case and holding Nelson accountable.”
The Social Security Administration Office of Inspector General, Atlanta Field Division investigated the case.
Assistant U.S. Attorney Alex Lankford prosecuted the case on behalf of the United States.
Michigan Man Sentenced for COVID-19 Relief FraudRead the Press Release
A Michigan man was sentenced today to 32 months in federal prison for fraudulently seeking nearly $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Michael Bischoff, 60, of Macomb County, pleaded guilty to bank fraud on Nov. 23, 2020, in the Eastern District of Michigan. According to court documents, Bischoff, who owned multiple pizza restaurants in Macomb County, admitted to defrauding several financial institutions by submitting at least nine falsified PPP loan applications that included false representations about payroll, business expenses, and the number of employees working at his restaurants. To help secure the PPP loans, Bischoff also submitted multiple fabricated tax documents and fraudulently used another person’s personal identifying information. In total, Bischoff fraudulently sought approximately $931,000 in COVID-19 relief funds and received approximately $593,590. In addition to his prison sentence, Bischoff was ordered to serve three years of supervised release, and to pay $593,590 in restitution and a $5,000 fine.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima Shafiq Mohsin of the Eastern District of Michigan; Special Agent in Charge Kathy A. Enstrom of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region; and Special Agent in Charge Douglas Zloto of the U.S. Secret Service’s Detroit Field Office made the announcement.
The FDIC-OIG, the SBA-OIG, and the Secret Service investigated the case.
Trial Attorney Philip B. Trout of the Criminal Division’s Fraud Section; Trial Attorney Chad M. Davis of Criminal Division’s Money Laundering and Asset Recovery Section; and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan prosecuted the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Meridian Man Pleads Guilty to Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – A Meridian man pled guilty to possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Reginald D’Mond Kelly, 32, was arrested on August 2, 2019, by officers of the Lauderdale County Sheriff’s Office on charges related to the sale of narcotics. During the course of the arrest, Kelly’s vehicle was searched and the officers found methamphetamine and a 9mm caliber handgun in the vehicle’s trunk. Kelly later admitted to the officers that he possessed the firearm for protection and that he engaged in the sale of methamphetamine.
Kelly is scheduled to be sentenced on December 15, 2021, and faces a mandatory minimum of 5 years in prison and a maximum of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case. Assistant United States Attorney Charles W. Kirkham is prosecuting 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.
Meriden Man Sentenced to 3 Years in Federal Prison for Trafficking FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JAVIER MARTINEZ, 41, of Meriden, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, in February 2020, law enforcement coordinated a controlled purchase of 100 grams of fentanyl from Martinez. On February 13, 2020, investigators stopped Martinez’s vehicle after he arrived at an agreed upon location in West Haven. A search of the car revealed approximately 100 grams of fentanyl, and a subsequent search of Martinez’s Meriden residence revealed approximately 180 grams of fentanyl, more than 300 fentanyl pills, and items used to process and package narcotics for street sale.
On April 22, 2021, Martinez pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
Martinez, who is released on a $100,000 bond, is required to report to prison on October 18.
This matter was investigated by the Drug Enforcement Administration New Haven Task Force, Connecticut State Police Statewide Narcotics Task Force and West Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Marion County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – James Joshua Hardesty, of Rivesville, West Virginia, was sentenced today to 63 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Hardesty, 40, pleaded guilty in February 2021 to one count of “Unlawful Possession of a Firearm.” Hardesty, who is prohibited from having a gun, admitted to having a .40 caliber pistol in March 2020 in Marion County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fairmont Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Man Pleads Guilty to Fraudulently Obtaining Approximately $9 Million in COVID-Relief Loans, Some of Which Was Gambled AwayRead the Press Release
A California man pleaded guilty today to federal charges stemming from a scheme that used a series of corporations he controlled to fraudulently obtain approximately $9 million in loans from COVID-relief programs, some of which he used on gambling excursions to Las Vegas and transferred to his stock trading accounts.
According to court documents, Andrew Marnell, 41, of Los Angeles, admitted that he fraudulently obtained Payroll Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In the course of the scheme, Marnell obtained seven PPP loans totaling just under $9 million from financial institutions for corporations he controlled.
To obtain the loans, Marnell submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ business operations and payroll expenses. Marnell, often using aliases, further submitted fake and altered documents, including bogus federal tax filings and employee payroll records. Once the loans were funded, Marnell transferred millions of dollars from the fraudulently obtained loan proceeds to his brokerage accounts to make risky stock market bets. Marnell also spent hundreds of thousands of dollars in fraudulently obtained loan proceeds at various gambling establishments.
The PPP program was implemented by the CARES Act, which was signed into law in March 2020 and was designed to provide relief to businesses affected by the coronavirus pandemic. The CARES Act also provided funding to the Economic Injury Disaster Loan Program (EIDL) administered by the SBA. Marnell admitted that he fraudulently obtained $170,000 in EIDL loans.
Marnell pleaded guilty to one count of bank fraud, which carries a 30-year statutory maximum penalty, and one count of engaging in a monetary transaction involving criminal proceeds, which carries a 10-year statutory maximum penalty. He is scheduled to be sentenced on Feb. 14, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As part of his plea agreement, Marnell agreed to forfeit items related to the pilfered PPP loan funds, including more than $1.54 million seized from several brokerage accounts, $319,298 in cash recovered from his residence, numerous electronic devices, a Rolex Oyster watch, a Range Rover and a Ducati motorcycle.
The Federal Housing Finance Agency’s Office of Inspector General, the FBI, the Federal Deposit Insurance Corporation’s Office of Inspector General, IRS-Criminal Investigation, the Treasury Inspector General for Tax Administration, and the Small Business Administration’s Office of Inspector General investigated this case. The California Department of Justice’s Bureau of Gambling Control provided valuable assistance.
Trial Attorney Scott Armstrong of the Justice Department’s Fraud Section and Assistant U.S. Attorney Kerry Quinn of the Central District of California are prosecuting the case.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Madison Man Sentenced to 10 Years After Pleading Guilty to Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that today Brian D. Lamphier, 52, Madison, Wisconsin, pleaded guilty to distributing child pornography and was sentenced by Chief U.S. District Judge James D. Peterson to 10 years in federal prison. This prison term will be followed by 15 years of supervised release.
In June 2019, the Madison Police Department received a tip from the National Center for Missing and Exploited Children (NCMEC) that an adult male, later identified as Lamphier, was using Facebook to communicate with a potential minor and was sending potential images of child pornography. Investigation revealed that the person Lamphier was talking to was 19-years-old and, thus, was not a minor, and that the images that he was sending could not be determined to be child pornography. Madison Police Officers spoke with Lamphier and warned him that his behavior was very close to the line of being illegal.
In June 2020, the Madison Police Department received another tip from NCMEC that a 50-year-old man, later identified as Lamphier, was attempting to entice a 15-year-old boy to engage in sexual conduct via Facebook messenger. Investigation revealed that Lamphier met the minor on the Internet and from March through June of 2020, paid the minor to engage in sexual activity. During some of the sexual encounters, Lamphier took nude pictures of the minor. On April 8, 2020, Lamphier sent one of the nude images of the boy to the previously identified 19-year-old Facebook user.
At sentencing, after the victim’s family spoke, Judge Peterson noted the devastating consequences on the victim and his family. Judge Peterson stated that Lamphier’s “insistent pattern of conduct” with the minor, combined with the fact that he had been given a prior warning by the police, were aggravating for sentencing. In choosing a 10-year sentence, Judge Peterson stated that Lamphier not only distributed child pornography but also engaged in the sustained abuse of a child and the production of child pornography. Judge Peterson also stated that Lamphier “treated his victim like an object for [his] own sexual satisfaction.”
The charge against Lamphier was the result of an investigation conducted by the Madison Police Department. Assistant U.S. Attorney Julie S. Pfluger prosecuted this case.
Louisiana Woman Sentenced in $4.8 Million Elder Fraud SchemeRead the Press Release
TYLER, Texas – A Shreveport, Louisiana woman has been sentenced to federal prison for her role in an elder fraud scheme in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Monica Ruiz, 45, pleaded guilty on March 24, 2021, to wire fraud and was sentenced to 97 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“Fraud against the elderly is particularly devastating given that the victim will typically not have the ability to work their way towards financial recovery,” said Acting U.S. Attorney Nicholas J. Ganjei. “While the Department of Justice will work tirelessly to ferret out elder fraud and punish the perpetrator, our seniors’ best defense against such fraud is, and remains, education, vigilance, and a healthy dose of skepticism.”
“The Secret Service remains committed to bringing to justice those criminals who seek to exploit our most vulnerable citizens,” said William Mack, U.S. Secret Service Resident Agent in Charge of the Tyler Resident Office. “In conjunction with the Department of Justice, as well as our state and local partners, the Secret Service will identify, pursue and seek prosecution of those that prey upon the elderly.”
According to information presented in court, Ruiz enlisted a variety of false and fraudulent pretenses, representations, and promises in a scheme to defraud an elderly victim from Bullard, Texas. Among the various misrepresentations Ruiz made in order to obtain money from the victim were the following:
- That Ruiz had been in a coma;
- That Ruiz had brain surgery;
- That Ruiz was falsely arrested and imprisoned;
- That Ruiz had bribed a judge and prosecutor;
- That Ruiz’s son died in a car accident in Pennsylvania;
- That Ruiz was in a car accident;
- That Ruiz had a kidney transplant;
- That Ruiz’s daughter was committed to a mental institution;
- That Ruiz was incarcerated; and
- That Ruiz’s grandmother died.
At times, Ruiz impersonated other people in communications with the victim. At other times, she created and used false personas in communications with the victim. Over the course of her scheme, Ruiz obtained more than $4.85 million from the victim.
Ruiz was indicted by a federal grand jury on Nov. 19, 2020.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the U.S. Secret Service with the assistance of the Tyler Police Department and the Louisiana State Police – Gaming Enforcement Division and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Louisiana Doctor Indicted for Illegally Dispensing over One Million Doses of Opioids and for $5.1 Million Health Care Fraud SchemeRead the Press Release
WASHINGTON - A federal grand jury in New Orleans, Louisiana, returned an indictment on August 26, 2021 charging a Louisiana physician for his role in distributing over 1,200,000 doses of Schedule II controlled substances, including oxycodone and morphine, outside the scope of professional practice and not for a legitimate medical purpose, and for maintaining his clinic for the purpose of illegally distributing controlled substances. Today’s indictment also charges the physician with defrauding health care benefit programs, including Medicare, Medicaid, and Blue Cross and Blue Shield of Louisiana, of more than $5,100,000, given that the opioid prescriptions were filled using health insurance benefits.
According to court documents, Adrian Dexter Talbot, M.D., 55, of Slidell, owned and operated a medical clinic located in Slidell that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions to be distributed to individuals there without seeing or examining those individuals. In 2016, Talbot hired another practitioner who also pre-signed prescriptions to be distributed in the same manner at the Slidell clinic. With Talbot’s knowledge, individuals were filling their prescriptions that were issued outside the scope of professional practice and not for a legitimate medical purpose using their insurance benefits, thereby causing health care benefit programs to be fraudulently billed for filling prescriptions that were written without an appropriate patient examination or determination of medical necessity for the prescription.
Talbot is charged with one count each of conspiracy to unlawfully distribute and dispense controlled substances, maintaining a drug-involved premises and conspiracy to commit health care fraud, as well as four counts of unlawfully distributing and dispensing controlled substances. The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Jeffrey Breen for the Department of Veterans Affairs, Office of Inspector General (VA-OIG) made the announcement.
The FBI, HHS-OIG, VA-OIG, and the Louisiana Office of the Attorney General’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Howard Sinkman of the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Local Man Pleads Guilty for Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for perpetrating a bank fraud scheme whereby he used a residential property he did not own as collateral for obtaining a bank loan worth more than $316,000.
Alireza Zamanizadeh, aka Ali Zamani, 63, waived indictment and pleaded guilty to bank fraud.
According to court documents, on or about February 17, 2017, Zamanizadeh filed a quitclaim deed in Deschutes County, transferring a residential property in Bend, Oregon to his business for one dollar without the property owner’s consent. A quitclaim deed is a document used to quickly transfer the ownership of real property from one party to another.
Zamanizadeh then used the property as collateral for obtaining a loan worth $316,092. Zamanizadeh forged the property owner’s signature on a statement verifying the property transfer as required by the mortgage lender and title company processing the loan. Based on Zamanizadeh’s false representations, the mortgage company approved the loan and transferred the funds to Zamanizadeh’s bank account.
On June 14, 2021, Zamanizadeh was charged by criminal information with bank fraud and aggravated identity theft.
Bank fraud is punishable by up to 30 years in prison, a $1 million fine, and three years’ supervised release.
Zamanizadeh will be sentenced on January 4, 2022 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Zamanizadeh has agreed to pay $400,000 in restitution to his victim and has transferred a second residential property in Clark County, Washington back to the victim.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation with assistance from FBI and is being prosecuted by Katherine A. Rykken, Assistant U.S. Attorney for the District of Oregon.
Justice Department announces investigation into conditions in Georgia prisonsRead the Press Release
ATLANTA – The Justice Department announced today that it has opened a statewide civil investigation into conditions of confinement of prisoners held in Georgia’s prisons.
“Individuals sentenced to prison in Georgia Department of Corrections facilities deserve to be treated humanely,” said Acting U.S. Attorney Kurt R. Erskine. “Our office is committed to ensuring state prisoners are safe while serving their sentences. We look forward to working cooperatively with the Georgia Department of Corrections to ensure the safety of all individuals in its prisons.”
“Ensuring the inherent human dignity and worth of everyone, including people who are incarcerated inside our nation’s jails and prisons, is a top priority,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department’s investigations into prison conditions have been successful at identifying systemic constitutional violations and their causes, fixing those causes, and stopping the violations. We are investigating prison violence and abuse in Georgia’s prisons to determine whether Constitutional violations exist, and if so, how to stop them.”
“Prison conditions that enable inmates to engage in dangerous and even deadly activity are an injustice, jeopardizing the lives of detainees, staff members and other corrections personnel,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our local law enforcement and corrections partners, with whom we work with closely each and every day, are indispensable to our united goal of achieving a safer Georgia for all. Under the leadership of the department’s Civil Rights Division, we look forward to collaborating with our state partners to address our mutual concern for safety in the corrections system.”
“This investigation is an example of our office’s commitment to stamping out violence in our district, no matter where it is found, no matter who the victim is,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “We look forward to working with the State of Georgia, the Georgia Department of Corrections, the Civil Rights Division of the Department of Justice, and our counterparts in the U.S. Attorney’s Offices for the Northern and Middle Districts of Georgia to further our shared mission to keep correctional facilities safe for the sake of our community, the prisoners housed there and the dedicated staff who work there.”
The investigation will examine whether Georgia provides prisoners reasonable protection from physical harm at the hands of other prisoners. The department also will continue its existing investigation into whether Georgia provides lesbian, gay, bisexual, transgender, and intersex prisoners reasonable protection from sexual abuse by other prisoners and by staff.
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the department has the authority to investigate whether any violations of prisoners’ constitutional rights result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Special Litigation Section of the Department of Justice Civil Rights Division is conducting this investigation jointly with the U.S. Attorney’s Offices for the Northern, Middle and Southern Districts of Georgia. Individuals with relevant information are encouraged to contact the department via phone at (844) 401-3736 or by email at [email protected].
Additional information about the Civil Rights Division’s CRIPA investigations related to prisons and jails can be found here: https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Assistant U.S. Attorney Aileen Bell Hughes, Civil Rights Enforcement Coordinator, is handling this matter for the Northern District of Georgia.
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.
Justice Department and Federal Trade Commission Issue Joint Statement to Preserve Competition in Post-Hurricane Relief EffortsRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) today issued a joint statement detailing antitrust guidance for businesses taking part in relief efforts and those involved in rebuilding communities affected by Hurricane Ida without violating the antitrust laws.
“The Antitrust Division and its law enforcement partners will not tolerate businesses and individuals who prey upon hurricane victims or seek to corrupt relief efforts,” said Acting Assistant Attorney General Richard A. Powers of the Antitrust Division. “In the aftermath of Hurricane Ida, the division’s Procurement Collusion Strike Force will leverage every tool in its arsenal to root out collusion, corruption and fraud targeting disaster relief.”
“When a disaster like Hurricane Ida strikes, it’s unconscionable for any company to exploit the tragedy for their own financial gain,” said Acting Director Holly Vedova of the FTC’s Bureau of Competition. “We’re committed to working with our partners to crack down on abusive and illegal practices and protecting the people affected by the disaster so they can focus on recovering.”
The antitrust laws accommodate procompetitive collaborations among competitors. At the same time, the agencies intend to hold accountable those who enter into anticompetitive agreements that take advantage of hurricane victims or hurricane relief efforts. Among other actions, the Department of Justice will criminally prosecute companies that fix prices, rig bids, or allocate customers, and the FTC will investigate and take action against companies and individuals who violate the consumer protection laws.
Anyone with information on price fixing, bid-rigging, market allocation agreements or other anticompetitive conduct should call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Consumers or businesses with concerns about fraudulent activity can also call the Disaster Fraud Hotline at 1-866-720-5721 or visit https://www.justice.gov/disaster-fraud/how-report-disaster-related-fraud.