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1 September 2021
Local woman convicted of narcotics conspiracyRead the Press Release
LAREDO, Texas – A 24-year-old Laredo woman has entered a guilty plea to conspiracy to possess with intent to distribute cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
Between March 1 and April 1, 2019, in Laredo, Karla Yvonne Lozano conspired with others to deliver cocaine totaling approximately 21 kilograms.
On March 1, 2019, Lozano delivered 10 bundles of cocaine weighing approximately 10.55 kilograms at a parking lot near Kohl’s in Laredo. The following month, she again delivered more bundles of cocaine then at a local Wal-Mart. The second set weighed approximately 11.25 kilograms.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and set sentencing for Dec. 7. At that time, Lozano faces up to life in prison and a possible $10 million maximum fine. She was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Local man sentenced for possession of $5 million in methRead the Press Release
CORPUS CHRISTI, Texas – A 21-year-old Penitas man has been ordered to federal prison for possessing with the intent to distribute 150 pounds of pure meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Kevin Rangel-Sanchez pleaded guilty April 1.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 90-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Tipton noted Rangel-Sanchez’s youth and lack of criminal history, while noting the need for a significant prison sentence to reflect the seriousness of the offense.
On Nov. 30, 2020, Rangel-Sanchez drove a truck into the Border Patrol (BP) checkpoint located near Falfurrias. Authorities noticed that he appeared to be nervous and referred the vehicle to the secondary inspection area for an X-ray examination.
There, they observed anomalies in the vehicle’s tires and cut into them. That resulted in the discovery of steel boxes that had been welded around the rims inside the tires. Those boxes were found to contain 24 foil-wrapped packages of meth weighing a total of 71 kilograms.
The drugs had an estimated street value of more than $5.2 million.
Rangel-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Le Ministère de la Justice s'arrange avec les Écoles Publiques de Newark pour protéger les élèves apprenant l'anglaisRead the Press Release
WASHINGTON - Le Ministère de la Justice a annoncé aujourd'hui un accord avec les écoles publiques de Newark pour mettre fin à l'enquête du ministère sur les programmes du district scolaire pour ses élèves apprenant l'anglais. L'accord met fin à la pratique courante et de longue date du District consistant à retirer les élèves des programmes d'apprentissage de l'anglais avant qu'ils parlent couramment cette langue. Le District a accepté d'améliorer les services pour les élèves apprenant l'anglais afin qu'ils puissent accéder aux mêmes opportunités éducatives que les autres élèves des écoles publiques de Newark.
L'enquête pluriannuelle du Ministère a mis en évidence des manquements de grande ampleur en matière de services aux élèves apprenant l'anglais. Le Ministère a découvert que le District n'a pas réussi à embaucher et à retenir suffisamment d'enseignants qualifiés pour soutenir son programme, ce qui a eu pour conséquence un temps d'instruction limité pour certains élèves, et pour d'autres, aucun service linguistique du tout. La Division des Droits Civils et le Bureau du Procureur des États-Unis pour le District du New Jersey ont enquêté en vertu de la Loi de 1974 sur l'Égalité des Chances en Matière d'Éducation.
"Les districts scolaires doivent fournir des services efficaces aux apprenants l’anglais afin que tous les élèves puissent créer leur propre rêve américain", a déclaré Kristen Clarke, procureuse générale adjointe de la Division des Droits Civils du Ministère de la Justice. "Nous continuerons à lutter pour assurer le respect de nos lois fédérales sur les droits civils, tout en défendant le droit de chaque élève à l'égalité des chances en matière d'éducation dans tout le pays. Les exigences complètes de cet accord créeront un changement durable et donneront accès à l'éducation à des milliers d'élèves apprenant l'anglais à Newark."
"Notre bureau soutient fermement les droits civils de tous les étudiants, y compris les apprenants d’anglais," a déclaré Rachael A. Honig, procureuse fédérale par intérim pour le District du New Jersey. "Nous sommes heureux que le Conseil de Éducation de Newark ait accepté d'assumer pleinement son obligation de répondre aux besoins linguistiques de ses apprenants d’anglais et de résoudre les graves violations de la loi fédérale découvertes au cours de cette enquête. Nous continuerons à demander des comptes aux districts scolaires et aux autres agences d'éducation afin que tous les élèves du New Jersey bénéficient d'un accès égal aux opportunités éducatives."
Le Ministère de la Justice surveillera la mise en œuvre de l'accord par le district pendant au moins trois années scolaires complètes, jusqu'à ce que le district se soit entièrement conformé à ses obligations.
Note : Une copie complète de l'accord peut être consultée ici en anglais.
Ce communiqué de presse est également disponible en espagnol, portugais, créole haïtien et français.
L'application de la loi sur l'égalité des chances en matière d'éducation de 1974 est une priorité absolue de la Division des Droits Civils et du Bureau du Procureur des États-Unis pour le District du New Jersey. Des informations supplémentaires sur la Division des Droits Civils du Ministère de la Justice sont disponibles sur son site web à l'adresse http://www.justice.gov/crt, et des informations supplémentaires sur le travail de la section des opportunités éducatives sont disponibles à l'adresse https://www.justice.gov/crt/educational-opportunities-section. Les membres du public peuvent signaler d'éventuelles violations des droits civils à l'adresse https://civilrights.justice.gov/report/ ou au Bureau du Procureur des États-Unis pour le District du New Jersey à l'adresse http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint ou encore appeler la ligne d'assistance téléphonique pour les droits civils du Bureau du Procureur des États-Unis au (855) 281-3339.
Le Ministère de la Justice s'arrange avec les Écoles Publiques de Newark pour protéger les élèves apprenant l'anglaisRead the Press Release
WASHINGTON - Le Ministère de la Justice a annoncé aujourd'hui un accord avec les écoles publiques de Newark pour mettre fin à l'enquête du ministère sur les programmes du district scolaire pour ses élèves apprenant l'anglais. L'accord met fin à la pratique courante et de longue date du District consistant à retirer les élèves des programmes d'apprentissage de l'anglais avant qu'ils parlent couramment cette langue. Le District a accepté d'améliorer les services pour les élèves apprenant l'anglais afin qu'ils puissent accéder aux mêmes opportunités éducatives que les autres élèves des écoles publiques de Newark.
L'enquête pluriannuelle du Ministère a mis en évidence des manquements de grande ampleur en matière de services aux élèves apprenant l'anglais. Le Ministère a découvert que le District n'a pas réussi à embaucher et à retenir suffisamment d'enseignants qualifiés pour soutenir son programme, ce qui a eu pour conséquence un temps d'instruction limité pour certains élèves, et pour d'autres, aucun service linguistique du tout. La Division des Droits Civils et le Bureau du Procureur des États-Unis pour le District du New Jersey ont enquêté en vertu de la Loi de 1974 sur l'Égalité des Chances en Matière d'Éducation.
"Les districts scolaires doivent fournir des services efficaces aux apprenants l’anglais afin que tous les élèves puissent créer leur propre rêve américain", a déclaré Kristen Clarke, procureuse générale adjointe de la Division des Droits Civils du Ministère de la Justice. "Nous continuerons à lutter pour assurer le respect de nos lois fédérales sur les droits civils, tout en défendant le droit de chaque élève à l'égalité des chances en matière d'éducation dans tout le pays. Les exigences complètes de cet accord créeront un changement durable et donneront accès à l'éducation à des milliers d'élèves apprenant l'anglais à Newark."
"Notre bureau soutient fermement les droits civils de tous les étudiants, y compris les apprenants d’anglais," a déclaré Rachael A. Honig, procureuse fédérale par intérim pour le District du New Jersey. "Nous sommes heureux que le Conseil de Éducation de Newark ait accepté d'assumer pleinement son obligation de répondre aux besoins linguistiques de ses apprenants d’anglais et de résoudre les graves violations de la loi fédérale découvertes au cours de cette enquête. Nous continuerons à demander des comptes aux districts scolaires et aux autres agences d'éducation afin que tous les élèves du New Jersey bénéficient d'un accès égal aux opportunités éducatives."
Le Ministère de la Justice surveillera la mise en œuvre de l'accord par le district pendant au moins trois années scolaires complètes, jusqu'à ce que le district se soit entièrement conformé à ses obligations.
Note : Une copie complète de l'accord peut être consultée ici en anglais.
Ce communiqué de presse est également disponible en espagnol, portugais, créole haïtien et français.
L'application de la loi sur l'égalité des chances en matière d'éducation de 1974 est une priorité absolue de la Division des Droits Civils et du Bureau du Procureur des États-Unis pour le District du New Jersey. Des informations supplémentaires sur la Division des Droits Civils du Ministère de la Justice sont disponibles sur son site web à l'adresse http://www.justice.gov/crt, et des informations supplémentaires sur le travail de la section des opportunités éducatives sont disponibles à l'adresse https://www.justice.gov/crt/educational-opportunities-section. Les membres du public peuvent signaler d'éventuelles violations des droits civils à l'adresse https://civilrights.justice.gov/report/ ou au Bureau du Procureur des États-Unis pour le District du New Jersey à l'adresse http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint ou encore appeler la ligne d'assistance téléphonique pour les droits civils du Bureau du Procureur des États-Unis au (855) 281-3339.
Lawrence Man Pleads Guilty to Fentanyl and Firearm OffensesRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday in federal court in Boston to drug trafficking activities involving fentanyl and illegal possession of a firearm and ammunition.
Jose Martinez, 26, pleaded guilty to one count of possession with intent to distribute fentanyl and two counts of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Sterns scheduled sentencing for Jan. 6, 2022.
Martinez was arrested in June 2019 after a search of his residence revealed a loaded Kel Tec .566 semi-automatic rifle caliber pistol, a Glock 26 handgun, as well as additional ammunition, a bullet proof vest, an attachment for a firearm and gun oil. In addition, law enforcement found two large plastic bags containing empty capsules, a tray to fill pill capsules, several wet plastic bags in the trash can that contained a white residue, a bottle of lactose and several plastic bags, a digital scale, a money counter, a large quantity of cash and multiple cellphones.
Martinez was charged as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charges of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. The Massachusetts State Police and the Lawrence Police Department assisted in this investigation. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Laredo residents admit to weapons violationsRead the Press Release
LAREDO, Texas – Two men who resided in Laredo, one illegally, have entered guilty pleas to possession of a firearm and ammunition by a prohibited person, announced Acting U.S. Attorney Jennifer B. Lowery.
Hector Fernando Rodriguez-Neri, 20, is a Mexican citizen unlawfully in the United States. Gaona, 26, is a convicted felon. As such, they are both prohibited from possessing a firearm or ammunition per federal law.
However, on March 31, Rodriguez-Neri and Gaona were in possession of a semi-automatic rifle and ammunition which they sold to undercover authorities for $1,300. Rodriguez-Neri also admitted to selling two machine guns, one of which had an obliterated serial number on April 27 and May 7 for a total of $5,600.
Both pleaded guilty to possession of a firearm and ammunition by a prohibited person. Rodriguez-Neri also admitted to five additional counts of possession of a firearm by a prohibited person, two counts of transferring a machine gun and possession of a firearm with an obliterated serial number.
U.S. District Judge Marina Garcia Marmolejo has set sentencing for Dec. 7. At that time, Both men face up to 10 years in prison and a possible $250,000 maximum fine. Rodriguez-Neri’s other convictions carry the same penalties, but he also faces up to five years for the possession count involving an obliterated serial number.
They have been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Laboratory Owner Pleads Guilty to $73 Million Medicare Kickback SchemeRead the Press Release
A Florida man pleaded guilty yesterday in the Southern District of Florida for his role in a $73 million conspiracy to defraud Medicare by paying kickbacks to a telemedicine company to arrange for doctors to authorize medically unnecessary genetic testing. The scheme exploited temporary amendments to telehealth restrictions enacted during the COVID-19 pandemic that were intended to ensure access to care for Medicare beneficiaries.
According to court documents, Leonel Palatnik, 42, of Aventura, admitted that, as a co-owner of Panda Conservation Group LLC, he conspired with other co-owners, and with Michael Stein, the owner of 1523 Holdings LLC, to pay kickbacks to Stein in exchange for his work arranging for telemedicine providers to authorize genetic testing orders for Panda’s laboratories. Panda’s owners and Stein entered into a sham contract for purported IT and consultation services to disguise the true purpose of these payments. 1523 Holdings then exploited temporary amendments to telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing.
Palatnik pleaded guilty to one count of conspiracy to offer kickbacks and one count of paying a kickback. He is scheduled to be sentenced on Nov. 9 and faces a maximum penalty of 15 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; Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
The FBI’s Miami and Dallas Field Offices and HHS-OIG are investigating the case, with assistance from the FBI’s Healthcare Rapid Response Team.
Trial Attorney Ligia Markman of the National Rapid Response Strike Force is prosecuting the case.
The case against Palatnik was brought as part of the COVID-19 Health Care Fraud coordinated law enforcement action on May 26 against 14 defendants in seven judicial districts. The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
On May 17, 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.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Justice Department Sues Guam and the Guam Retirement Fund for Denying Servicemembers Proper Pension Credits During Military ServiceRead the Press Release
https://www.justice.gov/opa/pr/justice-department-sues-guam-and-guam-retirement-fund-denying-servicemembers-proper-pension
Justice Department Sues Guam and the Guam Retirement Fund for Denying Servicemembers Proper Pension Credits During Military ServiceRead the Press Release
The Justice Department announced today that it has filed suit against the Territory of Guam and the Guam Retirement Fund (GRF) alleging defendants violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when they refused to properly provide pension credit to servicemembers who used leave from Guam’s leave-sharing program while on active military duty. As a result, Guam and the GRF shorted the retirement benefits and pension annuities of at least five servicemembers and potentially many more.
USERRA is a federal statute that protects the civilian employment rights of the non-career individuals who serve in our armed forces. Among its protections, USERRA requires employers to treat an employee’s time in military service as service with the employer when determining pension benefits. The United States’ complaint filed in the U.S. District Court for the District of Guam contends Guam and its retirement fund failed to do that when they denied pension credit to servicemembers who used donated leave from Guam’s employee leave bank while on military duty.
“This complaint reinforces that the Justice Department will continue to vigorously enforce the protections provided by federal law to those who serve in our country’s armed forces at great personal cost,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “We owe a solemn duty to our servicemembers to act when any employer seeks to infringe on their hard-earned protections.”
“These servicemembers were called to active duty and they served honorably,” said U.S. Attorney Shawn N. Anderson for Guam and the Northern Mariana Islands. “Their many sacrifices should not include the loss of their civilian retirement benefits. Our office will continue to work hard to protect the employment rights of those who have served to protect all of us.”
The United States’ lawsuit asks the court to order defendants to stop denying servicemembers proper pension credit, identify all current and former employers who have been harmed by defendants’ discriminatory practice and properly credit those employees’ retirement funds or adjust their current pension benefits.
Trial Attorneys Joseph J. Sperber and Vendarryl Jenkins of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Mikel Schwab of the U.S. Attorney’s Office for the District of Guam are prosecuting the case.
The full and fair enforcement of USERRA is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Justice Department Settles with Newark Public Schools to Protect English Learner StudentsRead the Press Release
Today the Justice Department announced a settlement agreement with Newark Public Schools to resolve the department’s investigation into the school district’s programs for its English learner students. The agreement ends the district’s longstanding and common practice of removing students from English learner programs before they become fluent in English. The district has agreed to improve services for English learner students so they can access the same educational opportunities as other students in the Newark Public Schools.
The department’s multi-year investigation uncovered wide-ranging failures to properly serve students learning English. The department found that the district failed to hire and retain enough qualified teachers to support its program, resulting in limited instruction time for some students, and for others, no language services at all. The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey investigated under the Equal Educational Opportunities Act of 1974.
“School districts must provide effective English learner services so that all students can create an American dream of their own,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue fighting to ensure compliance with our federal civil rights laws as we stand up for every student’s right to equal educational opportunities across our country. The comprehensive requirements in this settlement agreement will create lasting change and provide access to education for thousands of English learner students in Newark.”
“Our office steadfastly supports the civil rights of all students, including English learners,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We are pleased that the Newark Board of Education has agreed to fully embrace its obligation to meet the language needs of its English learners and resolve the serious violations of federal law uncovered during this investigation. We will continue to hold school districts and other education agencies accountable so that all students in New Jersey have equal access to educational opportunities.”
The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years until the district has fully complied with its obligations.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division and of the United States Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or with the U.S Attorney’s Office for the District of New Jersey at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Hotline at (855) 281-3339.
View the Spanish translation of this press release here.
Justice Department Settles with Newark Public Schools to Protect English Learner StudentsRead the Press Release
NEWARK, N.J. – The Justice Department has reached a settlement with Newark Public Schools to resolve the department’s investigation into the school district’s programs for its English learner students, Acting U.S. Attorney for the District of New Jersey Rachael A. Honig and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today.
The agreement ends the district’s longstanding and common practice of removing students from English learner programs before they become fluent in English. The district has agreed to improve services for English learner students so they can access the same educational opportunities as other students in the Newark Public Schools.
The department’s multi-year investigation uncovered wide-ranging failures to properly serve students learning English. The department found that the district failed to hire and retain enough qualified teachers to support its program, resulting in limited instruction time for some students, and for others, no language services at all. The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey investigated under the Equal Educational Opportunities Act of 1974.
“Our office steadfastly supports the civil rights of all students, including English learners,” Acting U.S. Attorney Honig said. “We are pleased that the Newark Board of Education has agreed to fully embrace its obligation to meet the language needs of its English learners and resolve the serious violations of federal law uncovered during this investigation. We will continue to hold school districts and other education agencies accountable so that all students in New Jersey have equal access to educational opportunities.”
“School districts must provide effective English learner services so that all students can create an American dream of their own,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue fighting to ensure compliance with our federal civil rights laws as we stand up for every student’s right to equal educational opportunities across our country. The comprehensive requirements in this settlement agreement will create lasting change and provide access to education for thousands of English learner students in Newark.”
The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years until the district has fully complied with its obligations.
This press release is also available in Spanish, Portuguese, Haitian Creole and French.
The United States is represented by Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit; Renee Wohlenhaus, Deputy Chief of the Civil Rights Division’s Educational Opportunities Section; Jonathan Newton, Trial Attorney, Educational Opportunities Section; and Laura Fentonmiller, Trial Attorney, Educational Opportunities Section.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division and of the United States Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or with the U.S Attorney’s Office for the District of New Jersey at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Hotline at (855) 281-3339.
Justice Department Issues Guidance on Federal Statutes Regarding Redistricting and Methods for Electing Public OfficialsRead the Press Release
Today the U.S. Department of Justice announced the release of a guidance document to ensure state, county, and municipal governments comply with Section 2 of the Voting Rights Act concerning redistricting maps and methods of electing governmental bodies following the release of the 2020 Census redistricting data.
“The right to vote is the right from which all other rights ultimately flow,” said Attorney General Merrick B. Garland. “Discriminatory redistricting schemes or election practices threaten that fundamental right and are illegal. The guidance issued today makes clear that jurisdictions must abide by federal laws when redrawing their legislative maps and that the Justice Department will vigilantly assess jurisdictions’ compliance with those laws during the redistricting cycle.”
“Our goal this redistricting season is simple: to ensure that new maps for city councils, school boards, county commissions, state legislatures, Congressional house seats and more do not discriminate on the basis of race, color or membership in a protected language minority group,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is using every tool in our arsenal to protect the right to vote for all Americans and to ensure that officials comply with federal voting laws during the decennial redistricting cycle now underway. This official guidance helps jurisdictions comply with the Voting Rights Act when redrawing electoral maps to ensure that all people have an equal and fair opportunity to elect representatives of their choice.”
The guidance document discusses how the department will conduct its review of these redistricting plans and methods of electing governmental bodies to evaluate compliance with Section 2 of the Voting Rights Act. The guidance document also describes how the department applies well-established case law while investigating and bringing enforcement actions under Section 2.
Today’s announcement follows Attorney General Garland’s recent commitment to expand the Justice Department’s efforts to safeguard voting rights. For a list of the department’s actions to protect voting rights, click here.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot.
Members of the public are encouraged to send any complaints or comments regarding possible violations of the federal voting rights laws to the Voting Section. This can include complaints or comments about methods of election or districting plans that may violate Section 2 of the Voting Rights Act. Complaints and comments about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
For the guidance document on redistricting, click here.
Justice Department Charges Resident of Ukraine and Files Case to Halt Unauthorized Debits to Consumer Bank AccountsRead the Press Release
The Justice Department today announced charges against a U.S. citizen residing in Ukraine for his alleged participation in a scheme to deceive banks. In a related case, the department filed a civil complaint and secured a temporary restraining order against a ring of individuals and corporations allegedly responsible for using the scheme to steal funds directly from thousands of consumers’ bank accounts. The civil complaint was unsealed yesterday.
On Aug. 24, a grand jury in the District of Nevada indicted Harold Sobel, 68, a U.S. citizen who resides in Ukraine, for conspiracy to make false statements to a bank and two counts of false statements to banks. Sobel was arrested on Aug. 12 pursuant to a criminal complaint at McCarran International Airport in Las Vegas, Nevada, before he could return to Ukraine. According to the indictment, Sobel traveled from Ukraine to the United States in October 2019 and February 2020 and used his identity to open accounts at federally insured banks, control of which he immediately transferred to a co-conspirator who then impersonated Sobel in communications with the banks.
In a related civil complaint unsealed yesterday, the Department of Justice alleges that a transnational network of fraudsters, including Harold Sobel, Guy Benoit, Edward Courdy and more than two dozen other defendants, stole millions of dollars from American consumers by charging unauthorized debits against their bank accounts. The fraudsters used sham companies to cover their tracks and make the unauthorized debits appear legitimate.
“The scheme alleged in these cases involves an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Through these cases, the Department of Justice makes clear that it will use all tools at its disposal, including civil and criminal remedies, to halt such practices and bring offenders to justice.”
“Today’s charges allege insidious individuals and companies alike, employed deceptive techniques to steal money from thousands of unsuspecting victims,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “This investigation showcases the U.S. Postal Inspection Service’s relentlessness is pursuing justice and holding individuals and corporations, be it domestically or internationally, accountable for their criminal actions. We will continue to work with our law enforcement partners to investigate sophisticated fraud cases targeting U.S. consumers.”
According to the civil complaint, the defendants posted unauthorized debit transactions in the name of sham corporate entities against the bank accounts of unsuspecting consumers. To hide the fraudulent nature of these transactions from consumers and banks, defendants allegedly took elaborate steps to portray the sham corporate entities as legitimate businesses that provided internet-related services, creating bogus websites for the entities, fake customer authorizations for the entities’ services, and a “customer service” call center to field complaints. The complaint further alleges that the defendants used thousands of sham “micro transactions” so that banks would not detect the chargebacks of their unauthorized debits. The temporary restraining order obtained by the government enjoined the defendants from making unauthorized debits from consumers’ bank accounts and from using micro transactions to disguise chargebacks. The government also successfully petitioned for the appointment of a receiver to stop defendants from dissipating assets obtained through the fraud scheme.
The U.S. Postal Inspection Service conducted the investigation leading to the charges.
The government is represented in the criminal case by Trial Attorneys Wei Xiang and Meredith Healy of the Civil Division’s Consumer Protection Branch and by Assistant U.S. Attorney Mina Chang of the District of Nevada. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
The government is represented in the civil matter by Trial Attorneys Michael Wadden and Amy Kaplan, and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch.
The conspiracy charge against Harold Sobel provides for a sentence of up to five years in prison. Making a false statement to a bank provides for a maximum of 30 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch
Justice Department Announces First Federal Agents to Use Body-Worn CamerasRead the Press Release
Today, the Department of Justice announced the launch of the first phase of its Body-Worn Camera Program that requires department law enforcement personnel use body-worn cameras (BWCs) during pre-planned law enforcement operations. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Phoenix and Detroit Field Divisions began using BWCs today during these pre-planned operations. Over the course of the next several weeks, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the U.S. Marshals Service (USMS) will begin the first phase of their BWC programs. The department’s plans include a phased implementation of BWCs, and rely upon Congress to secure the necessary funding to equip agents nationwide with BWCs.
“Keeping our communities safe is a top priority for the Justice Department,” said Attorney General Merrick B. Garland. “Law enforcement is at its most effective when there is accountability and trust between law enforcement and the community. That is why we have expanded our body worn camera program to our federal agents, to promote transparency and confidence, not only with the communities we serve and protect, but also among our state, local and Tribal law enforcement partners who work alongside our federal agents each day.”
“The Department of Justice recognizes the importance of transparency and accountability in its law enforcement operations,” said Deputy Attorney General Lisa Monaco. “Because there are circumstances where the use of force may occur during planned law enforcement operations, we are committed to the use of body-worn cameras by DOJ law enforcement agents in such circumstances. I am proud of the job performed by the department’s law enforcement agents, and I am confident that these policies will continue to engender the trust and confidence of the American people in the department’s work.”
“ATF welcomes the use of body worn cameras by our agents,” said Acting Director Marvin G. Richardson of the ATF. “The department’s policy reflects ATF’s commitment to transparency as we work to reduce firearm violence in our communities.”
“The Drug Enforcement Administration is committed to the safety and security of the people we serve, our agents, and task force officers,” said Administrator Anne Milgram of the DEA. “We welcome the addition of body worn cameras and appreciate the enhanced transparency and assurance they provide to the public and to law enforcement officers working hard to keep our communities safe and healthy.”
“The FBI remains committed to meeting the need for transparency,” said FBI Director Christopher Wray. “Phasing in the use of BWCs is another, important way for us to meet that need.”
“Every day USMS task forces lawfully apprehend violent criminals with the utmost professionalism," said Director Donald Washington of the U.S. Marshals Service. "We continue striving to fortify the public’s trust in our responsibility to uphold the rule of law while keeping communities safe as we have for more than two centuries. Body worn cameras increase the transparency of law enforcement activities, and we will work to obtain the necessary resources to fully execute our body-worn camera program. As we do so, Deputy United States Marshals – along with thousands of local task force officers on USMS-led task forces – will continue to safeguard communities from violent criminals, drug traffickers and threats of terrorism. These interagency task force operations are crucial to public safety.”
On June 7, based on recommendations from the Department’s law enforcement components, Deputy Attorney General Lisa Monaco directed the ATF, DEA, FBI and USMS to develop individualized comprehensive policies that require agents to wear and activate BWC recording equipment for purposes of recording their actions during: (1) a pre-planned attempt to serve an arrest warrant or other pre-planned arrest, including the apprehension of fugitives sought on state and local warrants; or (2) the execution of a search or seizure warrant or order. Consistent across each of these policies is a presumption that BWC recordings depicting conduct resulting in serious bodily injury or death of another will be released as soon as practical.
The use of BWCs by federal agents builds upon the department’s October 2019 pilot program and October 2020 policy announcement to permit federally deputized task force officers to activate BWCs during these pre-planned law enforcement operations. Since October 2020, ATF, DEA, FBI and USMS have been integrating the use of BWCs on federal task forces around the nation. The department continues to encourage participating task force agencies to contact the sponsoring federal agency for more information about their BWC program.
Ithaca Man Sentenced to 13 Years for Attempted Online Enticement of a MinorRead the Press Release
SYRACUSE, NEW YORK - Jeffrey Blake, age 51, of Ithaca, New York, was sentenced today to serve 160 months (thirteen years and four months) in federal prison for attempted online enticement of a minor, announced Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea Blake admitted that between June 12, 2019 and August 23, 2019, he exchanged text messages with an undercover officer he believed was the mother of 9 and 13 year old girls. In those messages, Blake expressed an interest in meeting the children and engaging in sex acts with them. He also communicated by text messaging with the undercover agent posing as each of the children. In those communications Blake assured the children that sex with him would not be painful, and that he would take precautions to keep the 13-year-old from getting pregnant. On August 23, 2019, Blake drove to a pre-determined location in Broome County to meet and have sex with the children. He brought with him vibrators and birth control as well as necklaces, bracelets, earrings, and stuffed animals that he planned to give to the children as gifts. Blake was then encountered by law enforcement and arrested.
Senior United States District Judge Thomas J. McAvoy also imposed a 10 term of supervised release, which will start after Blake is released from prison, and ordered Blake to pay a $100 special assessment. As a result of his conviction, Blake will be required to register as a sex offender upon his release from prison.
Blake’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Immigration and Customs Enforcement Officer Charged with Receiving a BribeRead the Press Release
EL PASO – A federal grand jury in El Paso returned an indictment today charging an El Paso man with receiving a bribe by a public official.
According to court documents, Roberto Padilla, 50, an Immigration and Customs Enforcement officer stationed in El Paso was persuaded to reveal law enforcement sensitive information in exchange for a $500 payment to satisfy his drug debt.
The defendant was arrested on August 6, 2021 and is currently on bond. He is scheduled for an arraignment next week before U.S. Magistrate Judge Robert Castaneda of the U.S. District Court for the Western District of Texas. If convicted, he faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Jeffrey Downey, El Paso Division; Department of Homeland Security Office of Inspector General Special Agent in Charge Ricardo Hutterer, El Paso Division; and Immigration and Customs Enforcement Office of Professional Responsibility Special Agent in Charge Jennifer Huerta, Central Division, made the announcement.
The FBI; Department of Homeland Security Office of Inspector General; and Immigration and Customs Enforcement Office of Professional Responsibility are investigating the case.
Assistant U.S. Attorney Michael Osterberg is 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.
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Hogansburg Man Sentenced for Conspiracy to Distribute Marijuana and Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Joshua Francis, age 32, a resident of Hogansburg, NY, was sentenced today to serve 60 months in prison for conspiring to distribute marijuana and for money laundering of drug proceeds announced Acting United States Attorney Antoinette T. Bacon, Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Gregory S. Oakes, Oswego County District Attorney.
As part of his previous guilty plea, Francis admitted that between January 2017 and August 2017, he smuggled bulk quantities of marijuana from Canada into the United States by boat via the Akwesasne Mohawk Reservation in New York State. Francis further admitted that he directed couriers in the United States to deliver marijuana to redistributors in the Syracuse area and elsewhere, and also to collect the proceeds from marijuana sales. Francis distributed at least 317 kilograms of marijuana.
In addition to his term of imprisonment, the court also sentenced Francis to four years of supervised release and ordered him to pay a money judgment in the amount of $501,850 representing proceeds derived from marijuana distribution.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the Syracuse Police Department, and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Grand jury indicts a St. Louis, Missouri man on store robbery and related gun chargesRead the Press Release
ST. LOUIS – A federal grand jury handed down a thirteen-count indictment against Leonard Love, 52, of St. Louis charging Love with having committed six separate store robberies, six acts of using a firearm in furtherance of those robberies and one act of possessing a firearm as a convicted felon.
The indictment alleges that during the months of June and July of 2021, Love robbed various businesses, including Walgreens, Mobil On The Run, Circle K, and U-Gas stores, located in St. Louis City, St. Louis County, and St. Charles County.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI and the St. Charles City Police Department, the Sunset Hills Police Department, the St. Louis Metropolitan Police Department, the St. Louis County Police Department, and the St. Ann Police Department are investigating this case. Assistant United States Attorney Jennifer L. Szczucinski is prosecuting this matter on behalf of the United States of America.
Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Former Ladysmith Teacher Charged with Producing & Possessing Child Pornography
McKenzie W. Johnson, 34, Ladysmith, Wisconsin, is charged in a two-count indictment with producing child pornography and with possessing child pornography. The indictment alleges that on January 13, 2021, Johnson used a minor to produce a visual depiction of the minor engaged in sexually explicit conduct. The second count of the indictment alleges that on August 24, 2021, he possessed an iPad that contained visual depictions involving the use of minors engaging in sexually explicit conduct. The indictment alleges that at least one of the depictions involved a minor who had not attained 12 years of age.
Johnson was arrested in Ladysmith on August 24 and was charged with producing child pornography in a complaint filed in U.S. District Court in Madison on August 26. Federal law requires that an offense charged by criminal complaint must be presented to a grand jury for indictment.
At the time Johnson allegedly produced the child pornography, he was a teacher at the Ladysmith High School. This offense alleged in the indictment does not involve a victim from Wisconsin.
If convicted, Johnson faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on the production charge, and a maximum of 20 years on the possession charge. The charges against him are the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Ladysmith Police Department, Rusk County Sheriff’s Office, Clark County Sheriff’s Office, the Ladysmith School District, and the Fontana (California) Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Drug & Gun Crimes
Andre L. McClinton, 49, Madison, Wisconsin, is charged in a nine-count superseding indictment with drug and gun crimes. The indictment alleges that from September through December 2020, McClinton participated in a conspiracy to distribute and to possess for distribution cocaine. The indictment alleges that the conspiracy involved five kilograms or more of cocaine.
The superseding indictment also charges McClinton with two counts of distributing cocaine, one count of possessing cocaine and crack cocaine with the intent to distribute, and one count of possessing marijuana with the intent to distribute.
McClinton is also charged with two counts of possessing a firearm in furtherance of a drug trafficking crime, and with two counts of being a felon in possession of a firearm and ammunition. The indictment alleges that McClinton possessed a .38 caliber revolver and ammunition and a .45 caliber pistol and ammunition.
McClinton was previously charged with the drug conspiracy in a one-count indictment returned by the grand jury on February 10, 2021.
If convicted, McClinton faces a mandatory minimum of 10 years and a maximum of life in prison on the conspiracy charge, a maximum of 20 years on each of the three drug charges involving cocaine and crack cocaine, and a maximum of 5 years on the marijuana charge. The two charges of being a felon in possession of a firearm and ammunition each have a maximum penalty of 10 years in federal prison. The two charges of possessing a firearm in furtherance of a drug trafficking crime each have a mandatory minimum penalty of 5 years in federal prison, to be served consecutive to any other sentence imposed.
The charges against McClinton are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, Federal Bureau of Investigation, and Chicago (Illinois) Police Department. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Georgia Woman Sentenced to Prison for Money Laundering Involving the Theft of University of Iowa Employee IdentificationsRead the Press Release
DAVENPORT, IA- On Monday, August 23, 2021, Florence Rosale Julio, age 39, of Brunswick, Georgia, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 46 months in prison for conspiracy to commit money laundering in connection with a scheme to obtain federal tax refunds by fraud using the identification information of dozens of University of Iowa employees announced Acting United States Attorney Richard D. Westphal. Julio was ordered to serve three years of supervised release following the period of imprisonment and pay $100 to the Crime Victims’ Fund.
Julio opened bank accounts in Georgia under a fictitious business name and used them to launder hundreds of money orders purchased with the proceeds of the fraudulently obtained tax refunds. More than $450,000 in tax refunds using University of Iowa employees’ names were obtained fraudulently through the overall scheme and more than $1,400,000 in fraudulently obtained funds passed through the fictitious business accounts during early to mid-2015. In April of 2015, Julio had $44,000 in laundered funds sent to a Nashville, Tenn. car dealer to purchase a Mercedes Benz automobile.
The investigation was conducted by the Internal Revenue Service – Criminal Investigations and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Garden City Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – James Thomas McNiff, 31, of Garden City, pleaded guilty to distribution of methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. McNiff was indicted by a federal grand jury in Boise on February 10, 2021.
According to court records, McNiff, a known Norteno (Northside) gang associate, sold methamphetamine to another person in a parking lot in Meridian. McNiff sold 12.65 grams of a substance that the Drug Enforcement Administration (DEA) laboratory later confirmed was actual methamphetamine.
McNiff faces a statutory mandatory minimum sentence of at least five years and a maximum sentence of forty years in federal prison, a five million dollar fine, and at least four years of supervised release. Sentencing is set for November 16, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez applauded the efforts of the Treasure Valley Metro Violent Crimes Task Force which led to the 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. The DEA forensic laboratory was credited with analyzing the methamphetamine.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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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Former Vice President of Mercyhealth in Janesville & Owner of Marketing Agency Charged in Kickback SchemeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Barbara Bortner, 57, Milton, Wisconsin, and Ryan Weckerly, 46, Sycamore, Illinois, were charged today with wire fraud. In addition, Bortner was charged with tax evasion and Weckerly was charged with aiding and abetting in the preparation of a false income tax return.
Bortner and Weckerly were charged by an information filed in U.S. District Court today, waiving their right to indictment by a grand jury. Bortner and Weckerly have both agreed to plead guilty to the wire fraud and tax charges. Their plea hearings have not been scheduled.
The wire fraud and tax charges stem from Bortner and Weckerly’s involvement in a kickback scheme while she was the Vice President of Marketing at Mercyhealth based in Janesville, Wisconsin. Weckerly was the owner of Morningstar Media Group, a marketing agency based in Sycamore, Illinois. Beginning in February of 2015, Bortner and Weckerly devised a plan whereby he would submit inflated invoices to Bortner for his marketing work for Mercyhealth. Bortner and Weckerly agreed that he would provide monetary kickbacks to Bortner for the funds he received from the inflated invoices. In return, Bortner agreed she would continue to use Morningstar Media Group as the primary marketing agency for Mercyhealth. The kickback scheme continued until June of 2020 and involved over $3,000,000.
The tax charge against Bortner involves her failure to report the proceeds of the kickback scheme as gross income on her federal tax return for calendar year 2018. Weckerly’s aiding and abetting charge stems from Weckerly providing Bortner with a false Form 1099 for calendar year 2019 that underreported her compensation from Weckerly by excluding the amount of money received in the kickback scheme.
The charges against Bortner and Weckerly were a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Former Madison County Pharmacy Owner Sentenced for Health Card FraudRead the Press Release
SYRACUSE, NEW YORK - Jennifer Caloia, age 57, a licensed pharmacist who owned and operated Dougherty Pharmacy in Morrisville, New York, from 1998 to 2015, was sentenced today in federal court in Utica to serve a two-year term of probation, perform 80 hours of community service, a fine in the amount of $10,000.00, a special assessment of $100 after previously pleading guilty to one felony count of health care fraud.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG); Ralph D. Tortora III, Regional Director, New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office; Carol S. Hamilton, Regional Director, U.S. Department of Labor Employee Benefits Security Administration (DOL EBSA); and Shirin Emami, Acting Superintendent, New York State Department of Financial Services.
In pleading guilty previously, Jennifer Caloia admitted that between 2011 and 2015 she defrauded public and private health insurance programs by submitting false and fraudulent claims for prescription drugs that the pharmacy did not dispense. Caloia also admitted that customers submitting prescriptions for medications had their health insurance providers billed for more expensive drugs than those prescribed. To facilitate this scheme, Caloia changed the names of some of the prescription drugs in the software she used to communicate with insurance companies and to print drug labels, which allowed her to submit her fraudulent claims while providing the customer with the appropriate labels and instructions. Evidence presented to the court in support of Caloia’s guilty plea also revealed that in at least a few instances she dispensed a drug different than what a customer’s doctor had prescribed as part of her scheme to defraud. Caloia no longer owns or operates Dougherty Pharmacy.
In sentencing Caloia, United States District Judge David N. Hurd also ordered her to pay restitution in the amount of $110,431.02 to the public and private insurers affected by her fraud scheme.
In separately negotiated civil settlements with the Civil Division of the United States Attorney’s Office for the Northern District of New York and the New York State Attorney General’s Office, Caloia and her company agreed to pay $92,308.76 related to her submission of false claims to public insurers such as Medicare and Medicaid. The civil settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, knowns as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $18,461.75 of the settlement proceeds. The federal civil case is docketed with the United States District Court for the Northern District of New York under number 6:17-cv-92 (BKS/ATB).
This case was investigated by the Federal Bureau of Investigation (FBI); the U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG); the U.S. Drug Enforcement Administration (DEA), the U.S. Department of Labor-Employee Benefits Security Administration (DOL EBSA), New York Attorney General’s Medicaid Fraud Control Unit; and the New York State Department of Financial Services, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry. The civil investigation is being handled by Assistant United States Attorney John Hoggan and New York Attorney General’s Medicaid Fraud Control Unit, Syracuse Office Regional Director Ralph D. Tortora III.
Former Long Island Construction Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Long Island, New York, business owner in the construction industry was sentenced to one year and one day in prison yesterday for employment tax fraud.
According to court documents and statements made in court, Edward Hansen owned and operated a steel erection businesses in Suffolk County. From 2008 to 2011, the IRS assessed more than $480,000 in penalties against Hansen for his failure to pay over employment taxes on behalf of several of these businesses. In the spring of 2011, after receiving another notification from IRS that he was liable for payroll taxes, Hansen closed County Steel Inc. and proceeded to operate the same steel erection business under the name BR-Teck. Hansen made another individual the nominal “President” of BR-Teck. Hansen, however, continued to operate the business and continued to not pay over employment taxes. From January 2012 through June 2017, Hansen did not pay the IRS more than $950,000 in payroll taxes withheld from the wages of BR-Teck’s employees.
In addition to the term of imprisonment, U.S. District Judge Denis R. Hurley ordered Hansen to serve two years of supervised release and to pay a $5,000 fine.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kathryn Sparks and former Trial Attorneys Abigail Burger Chingos and Jeffrey B. Bender of the Tax Division prosecuted the case.
Former Erie Man Sentenced to 13 Years for Selling Fentanyl that Caused a Fatal OverdoseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 13 years in jail on his conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Derrick Lamont Hemphill, Sr., 30 formerly of Erie, Pennsylvania.
According to information presented to the court, and as part of his guilty plea, Hemphill acknowledged his responsibility for the sale of fentanyl that caused the death of K.A.J. on November 26, 2017.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Erie County District Attorney’s Office County Detective Bureau, the Erie County District Attorney’s Office Drug Task Force, the Millcreek Township Police Department, and the Erie Police Department, with assistance from the Drug Enforcement Administration for the investigation leading to the successful prosecution of Hemphill.
Foreign National from Trinidad Previously Convicted of Federal Felonies Pleads Guilty to Illegal Re-Entry into the United StatesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Allan Browne, a citizen of Trinidad, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of illegal re-entry of a removed alien. He faces up to twenty years in federal prison.
According to court documents, on April 8, 2021, Browne appeared at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands. Browne was a ticketed passenger on an American Airlines Flight traveling to Miami, Florida.
During the inspection, Browne presented a Pennsylvania driver’s license bearing the name Antonio S. Brown and a date of birth, neither of which belonged to him. CBP officers asked Browne if he were a citizen of the United States or a legal permanent resident, to which he replied that he was a legal permanent resident. Browne claimed he possessed a legal permanent resident card, but that it was not with him. Based on record checks conducted using Browne’s fingerprints, officers ascertained that Browne had no legal basis to remain in the United States.
Court records show that Browne was previously convicted in the Eastern District of New York for conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, and conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. He was sentenced to 41 months imprisonment on June 28, 2013. Browne was removed from the United States following his custodial sentence. Officers also discovered that Browne was removed from the U.S. as recently as last year, after re-entering the United States illegally. Officers conducted record checks and verified that Browne was not a citizen of the United States and found no information showing Browne was granted any documentation to enter or remain in the U.S.
This case is being investigated by CBP and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Juan A. Albino.
Federal Inmate Sentenced to 5 Additional Years in Prison for Bribing Guard to Bring Drugs into JailRead the Press Release
LITTLE ROCK—A federal prison inmate has been sentenced to five more years in prison for his role in a drug conspiracy at the Dallas County jail. Tuesday afternoon, United States District Judge Kristine G. Baker sentenced Terry McClendon, 32, of Sherwood, to 60 months’ imprisonment, which he will serve in addition to the prison sentence he was already serving for possessing a stolen firearm.
In August and September of 2017, McClendon was a federal inmate being held at the Dallas County Detention Center to await the resolution of his federal criminal case, in which he was charged with a firearms offense. While at this jail, McClendon approached Laron Williams, a guard working at the jail, and offered to pay Williams to bring contraband into the jail. With the help of two other inmates, McClendon directed other individuals to deliver tobacco, marijuana, cocaine, and heroin to Williams, who then passed these contraband items to McClendon within the jail.
Williams accepted deliveries on September 4 and 8, 2017, and a jail employee noticed Williams making a transfer to McClendon’s cell. Security video from September 9, 2017, shows Williams getting out of his car with an object wrapped in a blanket, which he later passed to McClendon. A search of McClendon’s cell revealed a pillowcase containing two square objects, which were examined by the Arkansas State Crime Laboratory and determined to be 764.4 grams of cocaine and 739.6 grams of heroin.
On November 7, 2017, McClendon was sentenced to five years in prison for possessing a stolen firearm. Yesterday, Judge Baker sentenced McClendon to an additional five years’ imprisonment on the contraband conspiracy, which is the maximum penalty allowed by law. Judge Baker also ordered this additional five years to run consecutive to McClendon’s original five-year sentence for possessing a stolen firearm, which means McClendon now faces a total of 10 years in prison.
Williams and the two inmate co-conspirators, Michael Brewer and Antonio Fowler, have all pleaded guilty and are awaiting sentencing. A fifth co-conspirator, Dekimberol Brewer, has also pleaded guilty to conspiracy for her role in bringing drugs into the jail through her husband, Michael Brewer.
The investigation was conducted by the FBI with assistance from the United States Marshals Service. The case was prosecuted by Assistant United States Attorneys Julie Peters and Amanda Jegley.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Escondido Man Sentenced to 168 months in Fentanyl Overdose Death of Camp Pendleton MarineRead the Press Release
Assistant U. S. Attorneys Timothy Coughlin and Michael Kaplan (619) 546-6768/7927
NEWS RELEASE SUMMARY – September 1, 2021
SAN DIEGO – Kyle Anthony Shephard was sentenced in federal court today to 168 months in prison for supplying the fentanyl that led to the fatal overdose of a 25-year-old U.S. Marine corporal stationed at Camp Pendleton.
Shephard pleaded guilty in March, admitting that on the evening of January 27, 2017, he met with the Marine in Escondido and sold him four pills containing fentanyl that caused his death later that night or early the next morning. On January 28, 2017, the young man’s body was discovered on Camp Pendleton in his barracks room by fellow Marines who became concerned when he failed to respond to phone calls and knocks on his door.
The initial investigation was conducted by Naval Criminal Investigative Service (NCIS) agents, who continued to pursue leads for almost a year while the case remained unsolved. Shephard was arrested on December 13, 2017 by members of the San Diego Sheriff’s Department while executing a search warrant at a local casino. Found in Shephard’s hotel room were 1,362 pills containing fentanyl, thousands in cash, packaging material, and four cell phones. A co-conspirator arrested earlier in the evening admitted to law enforcement that she and Shephard were aware they were dealing one of the “deadliest drugs.”
The Marine’s mother attended the sentencing and asked a friend to read her prepared statement: “On January 29, 2017, we received the dreaded knock at the door, in the middle of the night. The Marines came to inform us that (her son) was found unresponsive in his barracks. I now suffer with PTSD, and when I hear anyone at my door, it’s a trigger and I automatically panic with my heart dropping into the ground. I cannot put into words how (her son’s) death destroyed our family. Our family is forever changed. Nothing is, or will ever be, the same. I miss (my son) with every cell and fiber of my being. The pain is unimaginable and excruciating.”
The mother said that her son “joined the Marines when he was 21 years old. He wanted to serve our country. He chose the Marines because he wanted to take the toughest and most challenging route. His desire was to join the Infantry Division to be on the front lines.”
She noted that he “had a true passion for animals. He was signed up for a trip to Africa when he finished his tour with the Marines, to protect wildlife from poachers. He was only six months away from completing his four years. After Africa he wanted to go to Veterinary School.”
At today’s sentencing hearing, U.S. District Judge Cynthia A. Bashant said, “Drug traffickers never consider the impact of their actions on families. Drug traffickers destroy lives even when it doesn’t result in death.” Judge Bashant noted that she wished a statement like the one made by the Marine’s mother could be made at every sentencing to make it clear the devastating impact drug trafficking has on families.
Acting U.S. Attorney Randy Grossman said: “Another young life has been lost and a family destroyed because of fentanyl. Drug dealers who know their actions could have this outcome, and yet they peddle their poison anyway, must pay a stiff price. We will continue to aggressively pursue all those up the chain of distribution in these cases to ensure justice is served.” Grossman had high praise for prosecutors Timothy Coughlin and Michael Kaplan, as well as San Diego Sheriff’s Department detectives and NCIS agents who pursued this investigation and prosecution for more than four years.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 18cr5574-BAS
Kyle Anthony Shephard Age: 29 Escondido, California
SUMMARY OF CHARGES
Conspiracy to Possess with Intent to Distribute a Controlled Substance -Fentanyl – Title 21 U.S.C. Section 841(a)(1) and 846
Maximum Penalties – Twenty years in prison, at least four years of supervised release and $1 million fine.
INVESTIGATING AGENCIES
Naval Criminal Investigative Services
San Diego County Sheriff’s Department
Enfield Man Sentenced to 29 Months on Firearm ChargeRead the Press Release
CONCORD - Scotty Gonzalez, 29, of Enfield, was sentenced to 29 months in federal prison for unlawful possession of a firearm and ammunition, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Gonzalez is legally prohibited from possessing firearms due to a prior felony conviction and a prior conviction for a misdemeanor crime of domestic violence. On July 31, 2019, probation officers found Gonzalez in possession of a rifle and over 300 rounds of ammunition at his residence in Enfield.
Gonzalez previously pleaded guilty on April 29, 2021.
“In order to protect public safety, we must keep guns out of the hands of criminals,” said Acting U.S. Attorney Farley. “By working with our law enforcement partners to identify and prosecute armed criminals, we are helping to keep the citizens of the Granite State safe from violent crime.”
“Possession of a firearm by a convicted felon is not only illegal, but it compromises the safety of our communities,” said ATF Special Agent in Charge James M. Ferguson “This sentencing is another example that working jointly with our partners makes our communities safer.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistant from New Hampshire Probation and Parole Officers. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
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El Departamento de Justicia llega a un acuerdo con las escuelas públicas de Newark para proteger a los estudiantes de inglésRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy un acuerdo de conciliación con las escuelas públicas de Newark para resolver la investigación que realizó el Departamento sobre los programas que ofrece el distrito escolar a sus estudiantes de inglés. El acuerdo pone fin a la práctica habitual y de larga duración por parte del distrito de sacar a los estudiantes de los programas para aprender inglés antes de que dominen el idioma. El distrito ha acordado mejorar los servicios para estudiantes de inglés de manera que puedan acceder a las mismas oportunidades educativas que los demás estudiantes de las escuelas públicas de Newark.
La investigación que realizó el Departamento durante varios años reveló una gran cantidad de fallos que impedían atender adecuadamente a los estudiantes de inglés. El Departamento descubrió que el distrito no contrató ni conservó a suficientes maestros cualificados para respaldar su programa, lo que dio como resultado que algunos estudiantes recibieran un tiempo limitado de instrucción y que otros no recibieran ningún tipo de servicio lingüístico. La División de Derechos Civiles y la Fiscalía Federal del Distrito de Nueva Jersey realizaron esta investigación en virtud de la Ley de Igualdad de Oportunidades Educativas de 1974.
“Los distritos escolares deben proporcionar servicios eficaces para los estudiantes de inglés, de modo que todos los estudiantes puedan crear su propio sueño americano”, dijo Kristen Clarke, fiscal general auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Seguiremos luchando para garantizar el cumplimiento de nuestras leyes federales de derechos civiles mientras defendemos el derecho de todos los estudiantes a la igualdad de oportunidades educativas en todo nuestro país. Los amplios requisitos de este acuerdo de conciliación crearán un cambio duradero y proporcionarán acceso a la educación a miles de estudiantes de inglés en Newark”.
“Nuestra oficina apoya firmemente los derechos civiles de todos los estudiantes, incluidos los estudiantes de inglés”, dijo Rachael A. Honig, la fiscal de los EE. UU. en funciones del distrito de Nueva Jersey. “Nos complace que la Junta de Educación de Newark haya aceptado asumir plenamente su obligación de satisfacer las necesidades lingüísticas de sus estudiantes de inglés y de resolver las graves violaciones a la ley federal descubiertas durante esta investigación. Seguiremos exigiendo a los distritos escolares y a otras agencias educativas que se responsabilicen para que todos los estudiantes de Nueva Jersey puedan acceder a las mismas oportunidades educativas”.
El Departamento de Justicia supervisará la implementación del acuerdo de conciliación por parte del distrito durante al menos tres cursos escolares completos hasta que el distrito haya cumplido plenamente con sus obligaciones.
Nota: Aquí puede consultar una copia completa del acuerdo de conciliación en inglés.
Este comunicado de prensa también está disponible en español, portugués, criollo haitiano y francés.
La aplicación de la Ley de Igualdad de Oportunidades Educativas de 1974 es una de las principales prioridades de la División de Derechos Civiles y de la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey. Puede encontrar más información sobre la División de Derechos Civiles del Departamento de Justicia en su sitio web www.justice.gov/crt, y más información sobre el trabajo de la Sección de Oportunidades Educativas en https://www.justice.gov/crt/educational-opportunities-section. El público puede denunciar posibles violaciones de los derechos civiles en https://civilrights.justice.gov/report/, con la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey en http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint o puede llamar a la línea directa de derechos civiles de la Oficina del Fiscal de los Estados Unidos al (855) 281 - 3339.
Dublin man charged with enticing minors, producing child pornographyRead the Press Release
COLUMBUS, Ohio – A Dublin, Ohio, man has been charged federally with crimes related to sexually exploiting at least three minors.
Timothy W. Wright, 50, was arrested yesterday afternoon at his home and appeared in federal court today. The charges initiated thus far were unsealed during his initial appearance today.
Specifically, Wright is charged with enticing a minor, producing child pornography and possessing child pornography.
According to court documents, Wright paid females under the age of 18 to send him nude photographs and videos. As stated in the affidavit filed in support of the complaint, CashApp and phone records allegedly connect the payments for these videos and images to Wright and his company, L&T Trucking, and phone records also indicate Wright allegedly coordinated dates and times to meet with the victims at his Dublin residence.
The affidavit further details that Wright allegedly paid a minor victim $300 on least five occasions in exchange for the minor lying nude on Wright’s bed while Wright engaged in sex acts.
Enticement of a minor is a federal crime punishable by at least 10 years and up to life in prison. Producing child pornography carries a penalty of at least 15 and up to 30 years in prison. Possessing child pornography is punishable by up to 10 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
The case is being cooperatively investigated by the Central Ohio Human Trafficking Task Force, which operates under Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission, and by Homeland Security Investigations, Columbus Division of Police, Dublin Police Department, Franklin County Sheriff Dallas Baldwin’s Internet Crimes Against Children Task Force, Delaware County Sheriff’s Office Tactical Unit, Delaware County Drug Task Force, and the United States Marshals Service.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Director and Promoter of BitConnect Pleads Guilty in Global $2 Billion Cryptocurrency SchemeRead the Press Release
Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti and Carl Brooker
NEWS RELEASE SUMMARY—September 1, 2021
SAN DIEGO—Glenn Arcaro of Los Angeles pleaded guilty today in federal court for his participation in a massive conspiracy involving BitConnect, a cryptocurrency investment scheme, which defrauded investors from the United States and abroad of over $2 billion. The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally.
As admitted in documents entered today before U.S. Magistrate Judge Mitchell D. Dembin, Arcaro conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment.
Arcaro further admitted that he and others conspired to mislead investors about BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets. In truth, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors.
“Arcaro and his confidantes preyed on investor interest in cryptocurrency. As a result, a staggering number of individuals lost an enormous amount of money,” said Acting U.S. Attorney Randy S. Grossman of the Southern District of California. “The Department of Justice will continue to protect the investing public and scrutinize the burgeoning cryptocurrency industry. To those who would be the next in line to defraud the investing public, let this action by the Department of Justice stand as a stark cautionary tale. To the investing public, let this also serve as a cautionary tale to safeguard your money and invest it wisely.”
It was through the use of social media, Arcaro acknowledged in his plea agreement, that he and others made materially false and misleading statements, while concealing material facts, all to persuade investors that BitConnect was a lucrative investment. During the scheme, Arcaro posted videos that mocked those who questioned whether BitConnect had a Trading Bot and Volatility Software, doubted the true identity of BitConnect’s owner, and complained about losing their money in BitConnect.
According to the documents filed today, Arcaro sat atop a large network of promoters in North America, forming a pyramid scheme known as the BitConnect Referral Program. Arcaro earned as much as 15 percent of every investment into another part of the scheme—the BitConnect “Lending Program”—either from investors he recruited directly or those recruited by others beneath Arcaro in the pyramid. Arcaro further received portions of all investments from a concealed “slush” fund.
“Arcaro has accepted responsibility for his actions of defrauding thousands of individuals worldwide to invest in BitConnect,” said Special Agent in Charge Eric Smith of the FBI’s Cleveland Field Office. “He lined his pockets with millions of dollars, money from victims that believed their funds were being invested into a new cryptocurrency with a high rate of return. Those choosing to engage in financial criminal deception should know the FBI will not stop until all fraudsters are identified and held accountable.”
“Arcaro capitalized on the emergence of cryptocurrency markets, enticing innocent investors worldwide to get in early by promising them guaranteed returns, and exploiting the internet and social media to reach a larger pool of victims with greater ease and speed,” said Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office. “To conceal and further their scheme, Arcaro and his accomplices circumvented reporting regulations by the SEC and FinCEN, U.S. agencies that were created to protect investors and safeguard our financial systems. IRS-CI will pursue and root out these scams to protect investors and bring these financial fraudsters to justice.”
Arcaro admitted that he earned no less than $24 million from the BitConnect fraud conspiracy, all of which, according to court documents, he must repay to investors.
Acting U.S. Attorney Randy S. Grossman thanked the FBI’s Cleveland Field Office, IRS Criminal Investigation and law enforcement partners in India, Slovenia, and around the world for their efforts now and in the future, who assisted, and continue assist on this investigation. Grossman also thanked Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section who are handling this investigation. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.
In a parallel action, the U.S. Securities and Exchange Commission today announced civil charges against Arcaro and 3 others in connection with the same conduct.
Sentencing is scheduled to occur on November 15, 2021 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.
If you believe you are a victim of this fraud, please contact the FBI at [email protected].
DEFENDANT Case Number 21CR2542-TWR
Glenn Arcaro Los Angeles, CA Age: 44
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Twenty years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution
AGENCIES
FBI
IRS Criminal Investigation
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Depatman Jistis etabli ak lekòl piblik Newark pou pwoteje elèv k ap aprann anglè yoRead the Press Release
WACHINTONN – Jodi a, ministè lajistis te anonse yon akò règleman avèk lekòl piblik Newark yo pou mete yon bout nan ankèt ministè a sou pwogram, distrik eskolè a pou elèv li yo k ap aprann anglè. Akò a mete yon bout nan ansyen pratik ak depi lontan distrik lan ki vize pou retire elèv pwogram aprantizaj anglè yo avan yo pale lang sa byen. Distrik la te aksepte amelyore sèvis yo pou elèv k ap aprann anglè pou yo kapab gen aksè ak menm opòtinite edikativ menm jan ak lòt elèv lekòl piblik Newark yo.
Ankèt plizyè ane ministè a te montre gwo mankman nan sa ki konsène sèvis pou elèv k ap aprann anglè yo. Depatman an te dekouvri distrik la pa t reyisi bay ase anseyan kalifye travay epi kenbe yo pou yo soutni pwogram li an, sa ki te gen kòm konsekans yon tan edikasyon ki limite pou kèk elèv, epi pou lòt yo, pa gen okenn sèvis lengistik ditou. Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a te ankete selon lalwa 1974 la sou egalite chans yo nan sa ki gen pou wè ak edikasyon.
“Distrik eskolè yo dwe bay sèvis efikas ak moun k ap aprann anglè yo, sa k ap pèmèt tout elèv yo kapab reyalize pwòp rèv ameriken yo”, se sa asistant pwokirè jeneral la Kristen Clarke, pou divizyon dwa sivil yo nan ministè lajistis te deklare. “Nou pral kontinye batay pou asire respè lwa federal nou yo sou dwa sivil yo, tout pandan n ap defann dwa chak elèv ak egalite chans yo nan sa ki konsène edikasyon nan tout peyi a. Obligasyon total akò sa sou règleman an pral kreye yon chanjman dirab epi pral bay aksè ak edikasyon ak plizyè milye elèv k ap aprann anglè nan Newark”.
“Biwo nou an ap soutni avèk fòs dwa sivil tout etidyan yo, ak sa ki ap aprann anglè yo”, se sa Rachael A. Honig, pwokirè ameriken pwovizwa pou distrik New Jersey a te deklare. “Nou kontan Konsèy Edikasyon Newark la te aksepte pran an chaj san rezèv obligasyon li an pou reponn ak bezwen lengistik moun pa li yo k ap aprann anglè epi rezoud gwo vyolasyon lwa federal yo te dekouvri pandan ankèt sa. Nou pral kontinye mande kont ak distrik eskolè yo ak lòt òganizasyon edikativ, sa k ap pèmèt tout elèv New Jersey yo benefisye yon aksè san fòs kote ak opòtinite edikativ yo”.
Ministè Lajisits pral siveye jan akò règleman distrik la pral kòmanse pandan pou pi piti twa ane eskolè konplè, jiskaske distrik la konfòme l ak obligasyon li yo an antye.
Nòt : Yon kopi konplè akò règleman an kapab konsilte isit la an anglè.
Kominike pou laprès sa disponib tou an espanyòl, pòtigè, kreyòl ayisyen ak fransè.
Aplikasyon lalwa 1974 la sou egalite chans yo nan sa ki konsène edikasyon se yon priyorite total pou Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a. Enfòmasyon anplis yo sou Divizon dwa sivil yo pou ministè Lajisits disponib sou sit wèb li an nan adrès www.justice.gov/crt, ak enfòmasyon anplis yo sou travay Seksyon opòtinite edikativ yo disponib nan adrès https://www.justice.gov/crt/educational-opportunities-section. Manm piblik yo kapab siyale vyolasyon dwa sivil pwobab yo nan adrès https://civilrights.justice.gov/report/ oswa nan biwo pwokirè a pou distrik New Jersey nan adrès http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint oswa rele liy asistans telefonik la pou dwa sivil yo nan biwo pwokirè a nan (855) 281 - 3339.
Department of Justice Reaches Million-Dollar Settlement with Van Andel Research Institute to Resolve Allegations of Undisclosed Foreign Ties to Nih GrantsRead the Press Release
GRAND RAPIDS, MICHIGAN — The Department of Justice (“DOJ”) announced today that Van Andel Research Institute (“VARI” or the “Institute”) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by failing to disclose a foreign component of a National Institutes of Health (“NIH”) award and by failing to disclose foreign research support for two VARI researchers who served as principal investigators on NIH awards. In addition to this settlement—the second settlement with VARI in two years involving allegations of undisclosed foreign influence in federally-sponsored research—NIH imposed Specific Award Conditions on all of VARI’s NIH grants, including by requiring personal, executive-level certifications to the accuracy of NIH submissions, withdrawing certain of VARI’s expanded grant authorities, and removing all of VARI’s NIH grants from the Streamlined Non-Competing Award Process (“SNAP”).
“Full disclosure is essential not only in validating scientific research, but also in the intense competition for scientific funding from the federal government,” U.S. Attorney Andrew Birge said. “NIH’s application process is intended to yield information that is critical to the agency’s responsible stewardship of billions of taxpayer dollars. My office will continue to use every available tool to preserve the integrity of that process. The research community should recognize that these cases are not going away.”
“The government’s allegations in this case should remind research institutions of the potential consequences for failing to adequately investigate ‘red flags’ concerning researchers’ relationships and affiliations,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region. “HHS-OIG will continue to hold grantees accountable, and protect the government’s investment of taxpayer resources, regardless of the length or complexity of the investigation.”
NIH requires grant recipients to disclose and obtain prior agency approval if a significant scientific element or segment of an NIH-funded project will be performed outside of the United States (a “Foreign Component”). Foreign Components can include collaborations with foreign researchers who perform experiments in support of an NIH grant, regardless of whether those foreign researchers receive any of the NIH funding. NIH also requires grant recipients to disclose “Other Support,” defined as all resources made available to researchers in support of and/or related to all of their research endeavors, regardless of whether such resources have monetary value. Other Support includes high-value materials that are not freely available (biologics, e.g.) and selection to foreign talent recruitment programs.
In December 2019, VARI paid $5.5 million to resolve allegations that it violated the False Claims Act by submitting grant applications and progress reports to NIH in which VARI failed to disclose Other Support, including Chinese government grants that funded two VARI researchers. Approximately one month later, in January 2020, U.S. Customs and Border Protection (“CBP”) stopped an individual—a former VARI researcher and current professor at the Harbin Institute of Technology (“HIT”) in China (the “HIT Professor”)—at Detroit Metro Airport with undeclared biological research samples in his luggage. The government alleged that the HIT Professor told CBP that the research samples were intended for the laboratory of a professor at VARI (the “VARI Professor”). The CBP stop prompted another investigation of VARI that resulted in the following allegations:
- Undisclosed Foreign Component. The government alleged that after submitting a successful grant application to NIH in June 2017, a VARI researcher began negotiating a research collaboration agreement with HIT that overlapped with the NIH grant in research objectives and methods. The government alleged that VARI administrators did not communicate that the recollaboration agreement was never fully executed and, therefore, VARI and HIT faculty collaborated under the terms of the agreement in a manner that resulted in an undisclosed and unapproved “Foreign Composearch nent” of the NIH grant.
- Undisclosed Other Support (Biological Research Samples). The government alleged that VARI knew or should have known that the HIT Professor was providing biological research samples, synthesized in China, to VARI faculty. The government alleged that after VARI rejected a shipment of biological research samples from HIT in May 2018—a shipment that was falsely described as “documents”—the HIT Professor began bringing research samples into the United States on his person and covertly sending research samples to his home address in Grand Rapids, Michigan. The government alleged that VARI did not investigate the foreign-sourced samples after rejecting the May 2018 shipment and thus continued to make “Other Support” disclosures to NIH with deliberate ignorance or reckless disregard for their accuracy.
- Undisclosed Other Support (Foreign Talent Program). The government alleged that in August 2018, the VARI Professor accepted an invitation from Nanjing Agricultural University (“NAU”) to join an application to China’s “111 Program”; a program funded by the Chinese government to recruit foreign scientists to work at “innovation centers” established through Chinese universities. The government alleged that VARI knew or should have known about the VARI Professor’s affiliation with the 111 Program, including because, after initially failing to disclose the invitation to VARI, the VARI Professor later told the Institute that he had agreed to contribute to—but declined to participate in—a “111 collaborative research project.” The government alleged that the VARI Professor’s application to join the 111 Program, which also involved an agreement to engage in cooperative research with NAU, constituted “Other Support” that should have been disclosed in VARI’s submissions to NIH.
The government also expressed concerns that in November 2018, the VARI Professor separately sent his NIH award letter to an NAU professor in China who requested proof that he was collaborating with a researcher funded by the American government.
Approximately one-third of the settlement funds will be returned to NIH, with the remainder going to the United States Treasury. In addition to the $1.1 million settlement, NIH imposed Specific Award Conditions on all of VARI’s NIH grants. Federal regulations allow NIH to impose Specific Award Conditions on grant recipients, including on recipients that have a history of failures to comply with the terms of a federal award. In this case, NIH is requiring an executive-level manager to personally certify the accuracy of all of VARI’s “Other Support” disclosures. NIH is also withdrawing certain of VARI’s expanded budget authorities and removing VARI from SNAP prior to awards. These conditions will remain in place through September 30, 2022 or until NIH assesses and accepts VARI’s completed Corrective Action Plan and summary report.
This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
A copy of the redacted executed settlement agreement is included in this link.
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Co-Founder of Investment Fund Sentenced to 4 Years in Prison for Defrauding Investors of over $25 MillionRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that JASON RHODES, the co-founder, chief investment officer, and chief compliance officer for Sentinel Growth Fund Management, LLC (“Sentinel”), was sentenced today by U.S. District Judge Sidney H. Stein to 48 months in prison for securities fraud, wire fraud, investment adviser fraud and conspiracy charges. Those charges relate to RHODES’s participation in a scheme to defraud over 25 investors in Sentinel out of more than $25 million by lying to the investors and using investor funds for his own personal use and to make repayments to earlier investors in a Ponzi-like manner.
U.S. Attorney Audrey Strauss said: “Jason Rhodes defrauded investors in the fund he co-founded of more than $25 million through years of lies and deceit. This conduct is made even worse by the fact that Rhodes served as the chief investment officer and Chief Risk Officer of Sentinel, roles in which it was his direct responsibility to safeguard investor funds. Rhodes will now serve four years in prison for his crimes.”
According to the Indictment and other Court filings:
Beginning in at least 2013 and through in or about December 2016, RHODES, together with his co-conspirators, solicited investments in Sentinel by falsely representing to investors that their funds would be used for legitimate, specified, investment purposes, namely purchasing securities. In fact, RHODES failed to invest the investor monies as promised, but rather diverted investor funds to his own personal use and the personal use of his co-conspirators and, in a Ponzi-like manner, used them to make repayments to other investors who were demanding their money. Among other things, RHODES diverted investor funds to a trucking business operated by RHODES and his wife; used them to pay more than $1 million to settle an unrelated civil lawsuit filed against RHODES and one of his co-conspirators; and expended them on other, personal expenses including a resort stay in Dubai and a luxury time-share vacation club. Through this scheme, RHODES and his co-conspirators defrauded over 25 investors out of more than $25 million.
Among other fraudulent acts, RHODES and a co-conspirator falsified an account statement for an investor (“Investor-1”) to conceal the fact that RHODES and his co-conspirators had misappropriated most of the $4.2 million Investor-1 had invested in Sentinel. After Investor-1 discovered the fraudulent nature of the account statement, RHODES, working with others, obtained funds from yet another investor (“Investor-2”) in order to make payments to Investor-1. RHODES and his co-conspirators then, on multiple occasions, created fraudulent reports for Investor-2, falsely reflecting that Investor-2’s funds were invested with portfolio managers in Sentinel’s brokerage accounts and were earning returns. In truth and in fact, and as RHODES well knew, Investor-2’s funds had been almost entirely misappropriated upon their receipt to repay Investor-1 and were not being managed by portfolio managers on Sentinel’s platform.
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RHODES, 48, of Rowayton, Connecticut, was also sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $25,451,801.
Ms. Strauss praised the work of the FBI. She also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.
Cincinnati police officer charged with failing to report more than $50,000 in off-duty incomeRead the Press Release
CINCINNATI – A federal grand jury has charged a Cincinnati police officer with failing to report tens of thousands of dollars earned from off-duty jobs at area nightclubs.
Diondre Winstead, 44, of Cincinnati, is charged with three counts of filing false tax returns. He allegedly failed to report more than $58,000 earned from off-duty jobs in tax years 2015, 2016 and 2017.
Winstead was first charged by a federal criminal complaint and arrested on that complaint on August 18.
According to court documents, Winstead is charged as part of an investigation into alleged narcotics money laundering organizations operating as Cincinnati nightclubs. Promoters allegedly use drug proceeds to pay for artists and performers at the nightclubs as a way to generate revenue that would appear to be legitimate.
Winstead, a Cincinnati Police Officer of more than 16 years, worked off-duty jobs at the clubs and received cash payments from the promoters.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Cincinnati Police Chief Eliot K. Isaac announced the charges. Assistant United States Attorney Kenneth L. Parker is representing the United States in this case.
Federal, state and local law enforcement agencies with the Organized Crime Drug Enforcement Task Force (OCDETF) are assisting with investigating this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Cincinnati man sentenced to 20 years in prison for creating child pornography of minor in his care at sleepoverRead the Press Release
CINCINNATI – Scott Surgener, 43, of Cincinnati, was sentenced in U.S. District Court to 240 months in prison for sexually exploiting a minor.
According to court documents, from April 2018 through July 2019, Surgener engaged in sexually explicit conduct with a minor in his home for the purpose of taking pictures and videos of the sexual abuse. The pictures and videos were taken in Surgener’s residence while the victim, who was younger than 13, was in his care at child sleepovers.
In total, the defendant produced 28 videos and images of the exploitation.
Surgener was charged by a federal criminal complaint in October 2019 and has remained in custody since. He pleaded guilty in February 2021 to producing child pornography.
Surgener was also sentenced to 10 years of supervised release following imprisonment and ordered to pay $3,000 in victim restitution.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Dan Leeper, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmaine McGuffey and Springdale Police Chief Thomas Wells announced the sentence imposed yesterday evening by Senior U.S. District Judge Susan J. Dlott. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Bridgeport Man Charged with Federal Robbery and Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Hartford returned an indictment yesterday charging DIJON CHAMPAGNIE, 21, of Bridgeport, with robbery and firearm offenses stemming from a violent drug-related robbery in West Haven.
As alleged in the indictment, on July 1, 2019, Champagnie robbed narcotics from an individual by means of actual and threatened force, violence and fear of injury. During the robbery, Champagnie brandished and discharged a firearm.
Champagnie has been detained in state custody since his arrest on related state charges on July 20, 2019.
The indictment charges Champagnie with one count of interference with commerce by robbery (Hobbs Act robbery), which carries a maximum term of imprisonment of 20 years, and one count of possession and discharge of a firearm in furtherance of a crime of violence, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the West Haven, New Haven and Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
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.
Batavia Woman Arrested, Charged with COVID FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Danielle Tooley, 36, of Batavia, NY, was arrested and charged by criminal complaint with wire fraud and theft of government funds. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that according to the complaint, between July and December 4, 2020, the defendant and others knowingly used the personal identifying information of other individuals unlawfully to apply for and collect unemployment benefits connected to federal COVID-19 relief programs.
The scheme came to the attention of law enforcement on November 24, 2020, when Tooley was arrested by the New York State Police on charges of criminal possession of a controlled substance during a vehicle traffic stop in Bergen, NY. During the interaction with the defendant, troopers observed a crack pipe with white residue inside of Tooley’s vehicle. After the arrest, the defendant’s vehicle was searched, and six New York State unemployment benefit cards were recovered. The benefit cards were issued to individuals other than Tooley. The benefit cards were turned over to the Buffalo Field Office of the U.S. Department of Labor, Office of Inspector General, for further investigation. A subsequent examination of bank records for the benefit cards revealed several indicators of fraud and video footage from ATMs where the cards were used confirmed that the defendant had consistently withdrawn money from the cards. Tooley routinely used the personal identifying information of others in order to apply for and collect unemployment benefits in their names. In total, the scheme resulted in a loss of at least $99,141.39 to the United States.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.
The criminal complaint is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Region, under the direction of Special Agent-in-Charge Jonathan Mellone; the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Todd Allen; the U.S. Secret Service, under the direction of Special Agent-in-Charge Jeffrey Burr; the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso; and the New York State Police, under the direction of Major Barry Chase.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.# # # #
Baltimore Man Sentenced to Eight Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Andre Christopher Brown, age 34, of Baltimore, Maryland to eight years in federal prison, followed by three years of supervised release, for possession of a stolen firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on March 27, 2019, Brown was found asleep in a vehicle in Reisterstown Road, Maryland parking lot. A concerned citizen called 911 to check on Brown’s wellness as he appeared to be unresponsive.
When officers arrived at Brown’s vehicle and awoke him to check on his condition, he appeared to be intoxicated due to his slurred speech. Once officers asked for Brown’s drivers license, Brown responded normally until he told the officers that his driver’s license was “upstairs” and not in his possession. Officers then asked Brown to step out of the vehicle to test his mobility.
As Brown exited the vehicle, an officer noticed a 9mm caliber pistol in Brown’s waistband. Upon further inspection of the firearm, officers discovered the pistol was loaded with 10 rounds of ammunition.
As stated in the plea agreement, ballistics evidence linked Brown’s firearm to a previous Owings Mills, Maryland discharging in September 2017. Law enforcement were unable to identify a victim or suspect from the discharging.
On April 10, 2019, Baltimore County Police Department detectives interviewed Brown where he waived his Miranda rights, and admitted to discharging the firearm on September 17, 2017. Brown stated that he took the firearm from another person during a drug transaction and shot the firearm at the ground and in the air because he was afraid the other person was going to harm him. Brown admitted to keeping the firearm ever since.
Acting United States Attorney Jonathan F. Lenzner praised the ATF, the Baltimore County Police Department, and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Brandon K. Moore, who prosecuted the case.
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Armour Man Charged with Threatening CommunicationsRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Armour, South Dakota, man has been indicted by a federal grand jury for threatening communications.
Larry Lee Grueschow, age 64, was indicted on August 3, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 30, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about the 11th day of June, 2020, Grueschow did transmit in interstate commerce, from the State of South Dakota to Washington, D.C., a telephone communication to a member of Congress. The telephone communication contained a threat to injure the member of Congress and others.
The charge is merely an accusation and Grueschow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.
Grueschow was released pending trial. A trial date of November 2, 2021, has been set.
Albuquerque man ordered detained on gun trafficking chargesRead the Press Release
ALBUQUERQUE, N.M. – Genaro Ramos, 35, of Albuquerque, appeared in federal court on Aug. 30 for a preliminary hearing where he was charged with transfer or possession of a machine gun. Ramos will remain detained pending trial.
According to a criminal complaint, on Aug. 22, Ramos allegedly arranged to purchase four firearms, including a fully automatic machine gun. On Aug. 24, Ramos met the seller, who was an undercover agent, in Albuquerque. After discussing the firearms, Ramos allegedly paid the agreed amount in cash and took possession of the firearms. Agents arrested Ramos at the scene.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Ramos faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives this case. Assistant United States Attorney Jaymie L. Roybal is prosecuting the case.
13 Charged with Federal Drug Conspiracy and Firearms Charges in Operation Cash OutRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a joint team of more than 200 federal, state, and local law enforcement officers arrested nine individuals who have been charged in federal court for their roles in an alleged drug trafficking conspiracy that operated in the Charleston area as well for firearms charges. Four additional defendants are not in custody at this time.
The arrests made in “Operation Cash Out” follow a months-long joint investigation between the FBI, ATF, HSI, City of Charleston Police Department, the North Charleston Police Department, the Charleston County Sheriff’s Office, SLED, Summerville Police Department, Berkeley County Sheriff’s Office, Dorchester County Sheriff’s Office, Mount Pleasant Police Department, Charleston County Aviation Authority Police Department, and the 9th Circuit Solicitor’s Office.
The arrests also follow a 46-count indictment being returned by a Federal Grand Jury targeting alleged members of the violent street gang West Cash, in the case of United States v. Antwan Xavier Grant et al.
“Drug gangs are a primary reason for the violent crime surge not only in South Carolina but also across the nation,” said Acting U.S. Attorney DeHart. “Violent gang activity will never be tolerated in South Carolina. The United States Attorney’s Office and our local, state, and federal partners will not stop in our efforts to stop major drug traffickers, who use guns and violence to advance their activities. On behalf of our office, I thank our local, state and federal law enforcement agencies for their constant bravery in making the arrests today and for their unwavering partnership in making our communities safer.”
The indictment alleges that, starting in September 2016 to the present, six of the thirteen defendants conspired to possess and distribute cocaine, crack cocaine, methamphetamine, heroin, and marijuana. For their respective drug charges, the defendants could face up to 40 years in federal prison.
Additionally, four of the defendants have been charged with conspiring to make false statements to licensed firearms dealers in order to purchase firearms, as well as 13 individual charges of lying to licensed firearms dealers in order to purchase firearms, including an AR 15 pistol, FN 5.7 pistols, and a Glock 29.
The indictment alleges that these defendants lied to local licensed dealers, including Palmetto State Armory, ATP Gun Shop, Field & Stream, and Sportsman’s Warehouse, by attesting that they were the true purchaser of a firearm, when it is alleged that they were not. Each of the firearm-related counts carry up to 10 years in federal prison.
The indictment also charges five of the defendants with using telephones to facilitate their drug trafficking conspiracy, counts that each carry up to 4 years in federal prison.
Multiple charges for felon in possession, possession of firearm in furtherance of drug trafficking, and possession with intent to distribute drugs are also included in the indictment. These charges carry up to between 5 and 40 years in federal prison.
The nine defendants in custody are:
- Antwan Xavier Grant, a/k/a “Twan,” 25, of Charleston
- Tevin Jermaine Fulmore, a/k/a “Goon,” 27, of North Charleston
- Zyshonne Tremonte Dayon Gantt, a/k/a “Z Man,” 22, of Charleston
- Rashad Montez Heyward-Williams, a/k/a “Boola Bucks,” 28, of Charleston
- De’Andre Marquel Williams, a/k/a “Riley” and “Rilo,” 24, of Charleston
- Essence Tamia Cemon Ancrum, a/k/a “Poopie,” 24, of North Charleston
- Antonio Snipe, Jr., a/k/a “Bruiser,” 21, of Charleston
- Demetrius Samire Costen, a/k/a “Meechie,” 27, of North Charleston
- Jackie Benson, 46, of Summerville
Assistant United States Attorney Whit Sowards is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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31 August 2021
Woman sentenced for smuggling over five kilograms of methRead the Press Release
LAREDO, Texas – A 51-year-old resident of Hendersonville, North Carolina, has been ordered to federal prison for importing meth through Laredo, announced Acting U.S. Attorney Jennifer B. Lowery.
Deanne Burkhart Bautista pleaded guilty Aug. 4.
Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 120-month sentence to be immediately followed by five years of supervised release.
On June 3, 2020, Bautista attempted to enter the United States at the Juarez-Lincoln Bridge in Laredo. Upon her arrival, a law enforcement query resulted in the discovery that she might be transporting narcotics. A follow-up X-ray examination yielded anomalies in her luggage.
Authorities ultimately found a total of 5.5 kilograms of meth with an estimated street value of $27,000
Bautista admitted she was aware there were drugs in her luggage. She expected to be paid in cash, drugs or both upon final delivery to Atlanta, Georgia.
Bautista will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection and Drug Enforcement Administration. Assistant U.S. Attorney Brian Bajew prosecuted the case.
Washington Resident Sentenced to Two Years in Prison for Healthcare FraudRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Washington state resident for conspiracy to commit healthcare fraud, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie C. Axon sentenced William Robert Fayant, 56, of Liberty Lake, Washington, to two years in prison. Fayant pleaded guilty in March to one count of conspiracy to commit health care fraud. The court also ordered Fayant to forfeit nearly $85,000 and to repay more than $700,000 in restitution.
“This defendant unlawfully enriched himself by defrauding federally funded health care programs,” U.S. Attorney Escalona said. “As a result of today’s sentence, he will forfeit the money he made and will spend time in prison.”
“Health care professionals who use fraud and deceit to steal funds and scam the system will be held accountable for their actions.” SAC Sharp said. “Today’s sentencing shows individuals who commit fraud will be held responsible for their illegal actions. The FBI and our law enforcement partners will continue to work together to investigate allegations of health care fraud and ensure the integrity of Federal programs.”
According to the plea agreement, between 2016 and 2017, Fayant worked as a marketer and patient recruiter for InforMD and LabPharm, selling compounded and other high-reimbursing medications. Fayant was paid a commission by InforMD and LabPharm on each prescription that was referred to the companies if insurance covered the cost.
In order to increase his commissions, Fayant forged a prescriber’s signature on multiple prescriptions for himself and several other members of his family. Fayant also falsely authorized multiple refills. Fayant submitted the prescriptions to Alliance Allergy Solutions, a pharmacy based in Birmingham, Alabama, which then billed Express Scripts, Inc., and Medicare for the cost. ESI and Medicare paid at least $705,785 for these medically unnecessary medications, and the defendant received approximately $84,517 as commission payments for them.
FBI investigated the case. Assistant U.S. Attorney John B. Ward prosecuted the case.
Virgin Islands United States Attorney’s Office Secures Conviction in First Paycheck Protection Program (“PPP”) Fraud CaseRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that Mashama Ferdinand, 38, of St. Thomas pleaded guilty to wire fraud affecting a financial institution before Magistrate Ruth Miller. Ferdinand was released after posting a $25,000 unsecured bond pending sentencing.
According to court documents, on July 30, 2020, Ferdinand filed a Paycheck Protection Program (PPP) loan application on behalf of her company, Shama’s Specialties. The application fraudulently alleged that she employed 15 employees and earned a quarterly payroll of $460,079.82. Evidence developed in this investigation revealed that Ferdinand’s business did not have the purported 15 employees, nor the quarterly payroll that she claimed in her loan application. According to the Virgin Islands Division of Corporations and Trademarks, Shama’s Specialties was established as a Virgin Islands domestic limited liability company on January 9, 2014, and Ferdinand is listed as the company’s registered agent.
The PPP is a source of relief provided through the CARES Act that authorized loans and loan forgiveness to businesses operating as sole proprietorships or independent contractors. For the period from February 15, 2020 through June 30, 2020, such businesses were eligible to receive PPP loans to cover lost income. In order to be eligible to receive PPP loans, businesses were required to report and document their income and expenses as typically reported to the Internal Revenue Service on Form 1040, Schedule C, for a given tax year. These financial reports were used to determine the amount of money a business was entitled to receive under the PPP. Once awarded, PPP loan proceeds could only be used to cover specific expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the loans to be entirely forgiven if the business used the loan proceeds to cover those expenses within a designated period of time after receiving the proceeds.
According to court documents, on July 30, 2020, Ferdinand electronically submitted her PPP loan application package to Bluevine, Inc., and Bluevine’s IP records revealed that at approximately 3:26 p.m., they submitted Shama’s Specialties application package for approval. Bluevine’s IP records further revealed that the company is registered to unnamed alleged co-conspirators in Apopka, FL. Thereafter, on July 30, 2020, Ferdinand’s PPP loan application was approved in the amount of $383,397.00. On August 3, 2020, Bluevine deposited the PPP loan proceeds in the amount of $383,397.00 in Shama’s Specialties’ First Bank Virgin Islands’ checking account. On August 5, 2020, Ferdinand wired three separate payments in the amounts of $9,999.00, totaling $29,997.00, to her three alleged co-conspirators as payment for their roles in processing her PPP loan application. Records obtained from the Virgin Islands Bureau of Internal Revenue confirmed that during 2019 and 2020, the period in which PPP loans were offered, no 501-VI nor 941-VI payroll records were filed on behalf of Shama’s Specialties.
This case was investigated by the United States Secret Service and Small Business Association Office of Inspector General and prosecuted by Assistant United States Attorney Delia Smith.
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Small Business Administration’s Inspector General Michael H. Ware.” “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the United States Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
More information on the SBA Paycheck Protection Program is available on their Website.
U.S. Justice Department Finds that Conditions at the San Luis Obispo County Jail Violate the ConstitutionRead the Press Release
SLO JAIL FINDINGSLOS ANGELES – The San Luis Obispo County Jail violates the rights of prisoners by, among other things, failing to provide adequate medical care and subjecting some prisoners to excessive uses of force, according to a Justice Department report that calls upon the jail to make changes to address the constitutional violations found during an investigation.
The Justice Department concluded that there is reason to believe that the practices at the jail violate the Eighth and Fourteenth Amendments of the Constitution, as well as the Americans with Disabilities Act (ADA).
Specifically, the Justice Department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate medical and mental health care to prisoners, that the jail violates the constitutional rights of prisoners with serious mental illness through its prolonged use of restrictive housing, and that the jail violates the constitutional rights of prisoners through the use of excessive force. The report also found that the jail violates the ADA by denying prisoners with mental health disabilities access to services, programs and activities because of their disabilities.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department today provided the facility with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them.
“San Luis Obispo County violated the rights of prisoners in its jail in several ways, including failing to provide adequate health care and subjecting some prisoners to excessive force,” said Acting U.S. Attorney Tracy L. Wilkison. “Our office is dedicated to defending the civil rights of everyone in this district, including those behind bars.”
“Our Constitution guarantees that all people held in jails and prisons across our country are treated humanely, and that includes providing access to necessary medical and mental health care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After a comprehensive investigation, we found that the San Luis Obispo Jail harms the people it incarcerates by subjecting them to excessive force and by failing to provide adequate medical and mental health care. The Justice Department hopes to continue to work with the jail to resolve these systemic problems.”
The United States Attorney’s Office and the Justice Department’s Civil Rights Division initiated the investigation in October 2018 under CRIPA and Title II of the ADA, which authorize the Justice Department to take action to address a pattern or practice of deprivation of legal rights of individuals confined to correctional facilities operated by state or local governments.
Individuals with relevant information are encouraged to contact the Justice Department by phone at (844) 710-4900, or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Additional information about the Civil Rights Section of the U.S. Attorney’s Office is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. You may contact the Civil Rights Section by emailing [email protected] or calling (213) 894-2879. You can also report civil rights violations to the Section by completing this complaint form.
U.S. Attorney’s Office Recognizes Opioid Awareness Month; Highlights Enforcement and Outreach EffortsRead the Press Release
Assistant U. S. Attorneys Larry Casper, Dylan Aste and Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – August 31, 2021
SAN DIEGO -- On International Overdose Awareness Day, an annual commemoration designed to raise awareness of overdose prevention and reduce the stigma of drug-related deaths, Acting U.S. Attorney Randy Grossman again warned the San Diego community about the serious fentanyl crisis and advocated an “all of society” approach to countering overdoses.
“We are losing far too many lives to fentanyl, and the age of victims is getting younger, compounding the tragedy,” Grossman said. “Just this past weekend, a San Diego teenager died due to a suspected fentanyl overdose from a counterfeit pill. The public needs to realize that there is no such thing as a ’safe’ street drug -- just one pill can kill.”
Grossman noted that the U.S. Attorney’s Office and the San Diego County District Attorney’s Office are working closely with the Medical Examiner’s Office and law enforcement partners on overdose cases to trace the origin of deadly drugs and build cases against suppliers. Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury face a stiff penalty -- a 20-year mandatory minimum sentence. The U.S. Attorney’s Office has charged approximately 30 defendants in fentanyl overdose death cases to date.
Grossman emphasized that “federal prosecutors are leaving no stone unturned to hold peddlers of fentanyl accountable. Tomorrow, Kyle Anthony Shephard will be sentenced for supplying the fentanyl that caused the fatal overdose of a 25-year-old United States Marine. On Friday, August 27, a federal jury returned a verdict -- the first in a mandatory minimum case involving counterfeit pills -- that will result in a 20-year sentence for Jahvaris Lamoun Springfield, who sold a 26-year-old veteran the fentanyl pills that resulted in his death.
“These overdose prosecutions seek to accomplish three goals: Deter the distribution of illegal drugs, send a clear message that traffickers of deadly poison will face serious repercussions, and provide a measure of closure and justice to those faced with devastating personal loss,” Grossman said.
Experts report that fentanyl is 50-100 times more powerful than morphine and so dangerous that in its purest form, even a very small amount can be deadly. San Diego County officials report that fentanyl overdose deaths surged during the pandemic and are expected to reach as high as 700 this year, a staggering increase over 2019, when 152 individuals died from fentanyl overdoses; in 2020, the 2019 number more than tripled to 461.
Grossman emphasized that, in the face of this crisis, “law enforcement is just one part of the solution. We need an all of society approach. As a community, we must consider ways that we can all play a role in furthering the public understanding that substance abuse disorder is a disease that warrants treatment, resources, and positive collective action.”
In addition to prosecuting opioid dealers and smugglers, the U.S. Attorney's Office raises awareness of harm reduction, prevention and education efforts, through Opioid Coordinators Larry Casper and Dylan Aste, and Outreach Director Cindy Cipriani, who Co-Chairs the San Diego Prescription Drug Abuse Task Force. The U.S. Attorney’s Office also coordinates a quarterly Fentanyl Working Group, which brings together more than 100 law enforcement officers to share trends and best practices to combat the fentanyl scourge in this district.
Finally, the U.S. Attorney’s Office co-sponsors a biannual summit that convenes hundreds of leaders to focus on sharing information, reducing stigma, facilitating treatment, and implementing innovative evidence-based harm reduction prevention strategies. This year’s virtual Western States Opioid/Stimulant Summit, scheduled for November 4-5, 2021, will bring multiple disciplines together to address every aspect of the opioid crisis. National Institute of Drug Abuse Executive Director Nora Vokow, M.D., and Acting ONDCP Director Regina LaBelle will be featured speakers, along with dozens of leaders from the prevention, public health, treatment and law enforcement communities.
Grossman urged those struggling with a substance use disorder and their family members to talk to a doctor or pharmacist about Naloxone, which can reverse an opioid overdose.
To learn how to assist a person who is overdosing, including how to administer Naloxone, please see:
https://www.sandiegorxabusetaskforce.org/naloxone.
To obtain information about treatment, see the resources at the PDATF Treatment website:
https://www.sandiegorxabusetaskforce.org/treatment.
Two Dayton residents plead guilty in identity & financial fraud schemeRead the Press Release
DAYTON, Ohio – Two Daytonians pleaded guilty in federal court to crimes related to a conspiracy to steal checks, credit cards, debit cards, bank account information and Social Security numbers to enrich themselves.
Myrtle Lynn “Mi Mi” Jackson, 38, pleaded guilty in U.S. District Court today, and Joshua Dylan “Jo Jo” Chapman, 29, pleaded guilty on August 4, to conspiring to engage in access device fraud and to aggravated identity theft.
According to court documents, the defendants stole victims’ personal information from occupied and unoccupied residences, vehicles and mailboxes. Jackson and Chapman then used stolen credit cards, debit cards and checks to illicitly acquire cash, drugs, and other goods and services.
The co-conspirators used victims’ information to fraudulently apply for personal loans, student loans, unemployment benefits, credit cards, debit cards and checks.
Jackson and Chapman used the proceeds of their fraud scheme to buy illicit drugs and make purchases at Walmart, Dollar General, Kentucky Fried Chicken and Lees Famous Chicken. The fraudulent funds were also used to pay for motel rooms and for gambling activities at a casino in Dayton. The charged conspiracy transpired from May 28, 2019 – triggered by the tornadoes in the Greater-Dayton area – until/ May 11, 2021.
Conspiring to engage in access device fraud is a federal crime punishable by up to 90 months in prison. Aggravated identity theft carries a mandatory sentence of two years in prison in addition to any other sentence imposed.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the guilty pleas entered and commended the investigation of the United States Secret Service and Dayton Police Department. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Tucson Man Sentenced to 27 Months for Failing to Register as a Sex OffenderRead the Press Release
TUCSON, Ariz. – Casey Juan Jose, 42, of Tucson, Arizona, was sentenced today by Senior U.S. District Judge Raner C. Collins to 27 months in prison, followed by a lifetime term of supervised release. Jose previously pleaded guilty to Failure to Register as a Sex Offender.
On August 23, 2018, Jose, an enrolled member of the Tohono O’odham Nation, was convicted of Abusive Sexual Contact with a Minor and ordered to register as a sex offender. In August, 2020, Jose acknowledged the registration requirement and registered his address in Tucson, Arizona. However, between December 25, 2020 and March 18, 2021, Jose did not update his sex offender registration, despite changing residences. On March 18, 2021, Jose was arrested by United States Marshals for violating his federal supervision.
The United States Marshal Service conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-1410-TUC-RCC
RELEASE NUMBER: 2021-057_Jose# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.