Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 January 2021
DOJ and Florida company settle allegations it imported roofing materials without required country of origin markingsRead the Press Release
Seattle - A Florida-based corporation that manufactures, imports, and distributes products used in residential and commercial construction has agreed to pay the United States $160,933 to resolve allegations that it imported roofing underlayment product manufactured in China without country of origin markings, announced U.S. Attorney Brian T. Moran. The United States alleges that between December 2017 and July 2019, Gardner-Gibson, Inc., violated customs laws by importing products that did not bear any mark indicating to the ultimate purchaser in the United States the country of origin of the article.
“It is important that all U.S. businesses have a fair playing field,” said U.S. Attorney Moran. “This case began with a relator alerting the government to the unlawful conduct, helping the government police the import marketplace to ensure fairness.”
The settlement with Gardner-Gibson resolves a lawsuit filed under the qui tam provisions of the False Claims Act. The False Claims Act permits a private individual, called a relator, to sue on behalf of the government for false claims and to share in any recovery. The relator in this case alleged that Gardner-Gibson violated the False Claims Act by evading customs duties owed to the United States as a result of Gardner-Gibson’s knowing failure to mark properly imported products with their country of origin. The relator will receive approximately 20% of the $160,933 settlement. Gardner-Gibson will also pay the relator’s attorney fees of more than $40,000.
The resolution in this matter is the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Washington, U.S. Customs and Border Protection, and the U.S. Department of Homeland Security Office of Inspector General.
The settlement was negotiated by Assistant United States Attorney Ashley Burns. The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit is captioned United States of America ex rel. Aylwin v. Gardner-Gibson, Inc., No. 18-CV-1487-RAJ.
Brooklyn Man Sentenced to 33 Months’ Imprisonment for Witness RetaliationRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Kysheeq Randolph was sentenced to 33 months’ imprisonment by United States District Judge Sterling Johnson, Jr., for making threatening hand gestures at a government witness who was testifying in a federal criminal trial. Randolph pleaded guilty in February 2020 to a superseding criminal information charging him with witness retaliation.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York announced the sentence.
“It is a solemn duty of law enforcement to protect witnesses who testify at trial and attempts to brazenly intimidate or terrorize them will never be tolerated.” stated Acting United States Attorney DuCharme. “Today the defendant learned that such flagrant disregard for the rule of law will be punished with incarceration.” Mr. DuCharme thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division, and the United States Marshals Service, Eastern District of New York, for their work in the case.
In October 2019, Devone Jefferys, a relative of the defendant, was on trial at the federal courthouse in Brooklyn for his role in a home invasion armed robbery. During the trial, while a witness who had participated in the robbery was testifying, Randolph was seated in the public gallery of the courtroom in the witness’s line of sight. Randolph began making gestures with his hand to mimic the shape of a gun and pointed it to his head and then to his chin in an upward movement to threaten the witness.
The government’s case is being prosecuted by Assistant United States Attorney Genny Ngai.
The Defendant:
KYSHEEQ RANDOLPH
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-545 (SJ)
Braintree Man Sentenced for Fentanyl and Carfentanil ConspiracyRead the Press Release
BOSTON - A Braintree man was sentenced today in federal court in Boston for conspiracy to distribute fentanyl and carfentanil.
David Fernandes, 33, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release and ordered to pay a fine of $1,000.
From May 2019 through August 2019, David Fernandes and co-defendants Rickey Depina, Keanu Fernandes and Viviana Fontes conspired to distribute fentanyl and carfentanil in Brockton, Abington, Boston, Braintree, Easton, Fall River, Holbrook, Norton, Quincy, Raynham, South Easton, West Bridgewater and Whitman. During this time, law enforcement made controlled purchases of fentanyl and carfentanil on multiple occasions. On Oct. 1, 2018, law enforcement stopped a car in which David Fernandes, Depina and Fontes were traveling and recovered over 17 grams of fentanyl, approximately $1,750 and four cellular phones. They were arrested on state charges. In search warrants executed later that day, law enforcement recovered another $10,000.
Co-defendants Depina, 32, of Brockton; Keanu Fernandes, 33, of Brockton; and Fontes, 30, of Brockton, previously pleaded guilty to the conspiracy charge. On Sept. 20, 2020, Depina was sentenced to 30 months in prison and three years of supervised release. On Jan. 12, 2021, Keanue Fernandes was sentenced to one year and one day in prison and three years of supervised release. Fontes has yet to be sentenced.
According to the Drug Enforcement Administration, carfentanil is an analog of fentanyl and approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. It is used commercially in tranquilizer darts for large mammals such as elk or elephants and can be lethal in a dose as small as 2 milligrams.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorneys Timothy Moran and Nicholas Soivilien of Lelling’s Organized Crime and Gang Unit are prosecuting the case.
Albuquerque man sentenced to 17 years in federal prison for attempted carjacking, robbery, and firearm possessionRead the Press Release
ALBUQUERQUE, N.M. – Joe Pacheco-Romero, 33, of Albuquerque was sentenced in federal court on Jan. 13 to 17 years and six months in prison for attempted carjacking, interference with commerce by threats or violence, and using a firearm during and in relation to a crime of violence.
According to his plea agreement, Romero admitted to robbing an Albuquerque business on Oct. 17, 2018. Soon after, Romero broke into a nearby residence and attempted to steal the homeowner’s vehicle at gunpoint. The victim was able to escape and Romero fled the residence. Romero then attempted to carjack another vehicle, firing several shots and hitting the vehicle multiple times. The two victims inside the vehicle were able to put the car in reverse and escape.
Immediately afterward, Romero entered a restaurant and attempted to rob a victim of his vehicle. When that attempt failed, Romero tried to rob a second victim of her vehicle. Suspecting a police officer was outside the restaurant, Romero directed a victim to call 911 and demand a getaway vehicle. Romero was soon apprehended by the Albuquerque Police Department (APD) SWAT team. Romero was wounded by gunfire during the arrest.
Upon his release from prison, Pacheco-Romero will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Albuquerque Police Department investigated the case. Assistant U.S. Attorney Niki Tapia-Brito prosecuted the case.
19 January 2021
Wylie, Texas Man Sentenced After Admitting to Distributing Child Pornography and Communicating with Suspected MinorsRead the Press Release
PLANO, Texas – A 35-year-old Wylie, Texas man has been sentenced for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Zachary Sean Layne pleaded guilty on Jan. 6, 2020, to distributing child pornography and was sentenced to 210 months in federal prison by U.S. District Judge Sean D. Jordan on Jan. 15, 2021.
According to information presented in court, in the spring of 2019, federal agents served a search warrant at Layne’s home in Wylie, Texas, following a report from a social media company about suspected child pornography being shared from a user at Layne’s residence. Layne admitted that he used the social media applications and that he regularly chatted with other individuals on the platform. He stated that he had been trading child pornography, via the social media application and cloud storage accounts, for more than a year. In addition to trading child pornography, Layne admitted to chatting with individuals he believed to be minors. He stated that he “catfished” some of the minors with the hopes that they would send him pornographic material. Layne further admitted that he engaged in sexually graphic conversations with many purported minors, including about meeting up for sex. There is no evidence that Layne followed through with plans to meet with minors to engage in sexual activity.
“Those who dare to prey on children will be prosecuted to the fullest extent of the law,” said U.S. Attorney Cox. “Other would-be exploiters are on notice that EDTX and its law enforcement partners have zero tolerance for such despicable crimes.”
“Predators who exploit the innocence of children must not have any presence within our communities,” said Christopher Miller, Deputy Special Agent in Charge HSI Dallas. “We will work endlessly to ensure we remove these deviant criminals from our streets, using the full magnitude of our investigative resources to end the illegal business of sexual exploitation of minors.”
As part of his guilty plea, Layne admitted that he knowingly distributed child pornography, using cellular devices and the social media platform. Layne also agreed that he had shared the files in order to receive valuable consideration, namely, other and new child pornography. Moreover, Layne admitted that be distributed and possessed more than 600 images and videos of child pornography, and that the files depicted prepubescent minors and sadistic or masochistic abuse.
This case was investigated by Homeland Security Investigations Safety with assistance of the Wylie Police Department, Dallas Police Department, and the U.S. Department of Justice—Office of the Inspector General, Investigations Division. The case was prosecuted by Assistant U.S. Attorney Marisa Miller.
###
Virginia Man Pleads Guilty to Defrauding Export-Import Bank of U.S. of $1.6 millionRead the Press Release
RICHMOND, Va. – A Glen Allen man pleaded guilty today to committing wire fraud and making false statements to a federally insured bank during a two-year scheme to defraud both a Pennsylvania-based bank and the Export-Import Bank of the United States in connection with a $1.6 million loan.
According to court documents, Tae Il Lee, 41, was the Managing Director of New World Group, a Richmond-based company engaged in the business of exporting American snacks and other food stuffs to international buyers (typically South Korean companies). In April 2016, Lee sought what eventually became a $1.6 million loan from First National Bank of Pennsylvania, relying on the “Working Capital Program” offered by the Export-Import Bank of the United States (EXIM Bank). Under the program, EXIM guaranteed to provide financial backing for the loan in the event that New World Group defaulted.
Over the next two years, Lee regularly provided First National Bank, and the bank’s auditing firm, with financial documents that purported to show New World Group’s accounts receivable, banking statements, and financial statements. These documents reflected that New World Group was a growing, thriving export company, grossing more than $6 million in export sales in 2017 and another $6.3 million in just the first few months of 2018. Lee admitted in court today that those documents were false.
According to court documents, Lee had created fictitious accounts receivable and financial statements, and doctored New World Group’s actual bank statements to show non-existent, high-dollar transactions that never took place. During the course of his fraud scheme, Lee also created a fictitious intermediary—a purported employee of New World Group—in order to account for delays in Lee’s communications with First National Bank.
In the spring of 2018, First National Bank issued a demand letter for the $1.6 million loan to New World Group. New World Group never completed any payments to First National Bank, which requested that EXIM cover the defaulted loan. EXIM did so, absorbing the $1.6 million loss.
Lee is scheduled to be sentenced on May 12, 2021. He faces a maximum penalty of 20 years in prison for wire fraud and 30 years in prison for making false statements to a federally insured bank. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jennifer Fain, Acting Inspector General for the Export-Import Bank of the United States, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Thomas A. Garnett and Kaitlin G. Cooke are prosecuting the case.
This matter was investigated by the EXIM Office of Inspector General (OIG). EXIM is the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets. Complaints and reports of waste, fraud, and abuse related to EXIM programs and operations can be reported to the OIG hotline at 888-OIG-EXIM (888-644-3946) or via email at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-2.
United States Reaches Agreement with Midwest Can for Clean Air Act ViolationsRead the Press Release
The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice announced a settlement today that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.
The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.
“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”
“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”
“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John Lausch Jr., U.S. Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”
Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014 applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.
EPA discovered the violations following a series of investigative actions from 2016-2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://www.epa.gov/enforcement/report-environmental-violation-general-information.
United States Reaches Agreement with Midwest Can Company for Clean Air Act ViolationsRead the Press Release
WASHINGTON – The U.S. Environmental Protection Agency and the U.S. Department of Justice today announced a settlement that will require Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States, to pay a $1.7 million civil penalty to resolve Clean Air Act violations.
The violations resulted from failure to disclose test results showing that Midwest’s portable fuel containers did not meet regulatory standards and emitted higher amounts of pollutants than allowed by federal law. Under the terms of the settlement, Midwest will also conduct two supplemental emission tests in the next four years on its currently certified co-extruded plastic portable fuel containers and submit complete results from those tests to the EPA.
“We are pleased to announce this settlement with Midwest Can Company, one of the largest manufacturers of portable fuel containers in the United States,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “In paying a significant penalty and agreeing to perform supplemental testing, Midwest Can Company will be held accountable for its disregard of proper testing and reporting procedures in violation of the Clean Air Act.”
“Today’s settlement with Midwest Can Company marks the Justice Department’s first enforcement action against portable fuel container manufacturers under the Clean Air Act,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This settlement helps maintain the integrity of regulations governing portable fuel containers and ensures that manufacturers who are responsible for complying with the rules do not gain an unfair competitive advantage from subverting regulatory requirements.”
“The defendant submitted false and incomplete information to the EPA and prevented EPA from timely implementing and enforcing regulations intended to protect public health and our air,” said Susan Bodine, EPA’s Office of Enforcement and Compliance Assurance Assistant Administrator. “EPA will continue to enforce against companies that fail to comply with information submission obligations.”
Clean Air Act regulations require that all portable fuel containers sold in the United States must be covered by a certificate of conformity issued by EPA confirming that the containers meet emission limits for volatile organic compounds (VOCs). The complaint filed simultaneously with the settlement alleges that Midwest violated the Clean Air Act because its 2014 applications for certificates of conformity failed to disclose test results showing that the portable fuel containers did not meet regulatory standards and emitted higher amounts of VOCs than allowed by federal law.
EPA discovered the violations following a series of investigative actions from 2016 to 2018. In 2016, EPA conducted emission testing on five of Midwest’s portable fuel containers sold under the 2014 certificates of conformity. All five containers failed the emission test. EPA proceeded in 2017 to inspect the test lab utilized by Midwest to conduct emission testing of its portable fuel containers. In 2018, EPA received and reviewed additional information from the test lab, which revealed the violations related to Midwest’s applications for certificates of conformity.
VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems.
The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more by logging on to https://www.epa.gov/enforcement/report-environmental-violation-general-information.
United States Attorney’s Office Recovers $1 Million in Restitution for VictimsRead the Press Release
SACRAMENTO, Calif. — On Jan. 11, the United States received a $1 million payment as part of a settlement reached in a fraudulent transfer action brought by the Department of Justice, U.S. Attorney McGregor W. Scott announced.
According to court documents, in 2014, Mary Sue Weaver, 67, of Phoenix, Arizona, purchased a home titled solely in her name. A year later, Weaver was indicted for multiple counts of wire fraud, mail fraud, bank fraud, and false statements to a federally insured institution, with estimated losses of more than $22 million. She subsequently pleaded guilty to one count of wire fraud and one count of bank fraud and was sentenced to four years in prison and ordered to pay more than $15 million in restitution. Weaver currently is serving her sentence under home confinement.
Prior to her guilty plea, and a mere six weeks after Weaver was indicted, she executed a deed of trust against the home in favor of her husband, who was not charged. The deed of trust fully encumbered the home, putting it beyond the reach of her creditors, and prevented sale of the property to pay restitution to the victims of the fraud.
The U.S. Attorney filed a civil complaint under the Federal Debt Collection Procedures Act against Weaver and her husband, alleging that the execution and recording of the deed of trust to Weaver’s husband was fraudulent. After substantial discovery and litigation, the parties agreed to settle the action at mediation, where the defendants agreed that Weaver’s husband would make a $1 million cash payment to be applied towards Weaver’s restitution obligation.
“Convicted defendants who attempt to conceal or encumber their property to deprive victims of their lawfully ordered restitution will be found and stopped like Mary Sue Weaver was,” said U.S. Attorney Scott. “The job of the Department of Justice doesn’t end at conviction, and we never stop fighting on behalf of victims.”
Assistant U.S. Attorney Robin Tubesing handled the case for the United States.
U.S. Attorneys Andrew Birge and Matthew Schneider Announce Record-Setting Drug Diversion Civil Penalty Settlement with McLaren Health Care CorporationRead the Press Release
$7,750,000 Settlement Includes A Three-Year Memorandum of Agreement With The U.S. Drug Enforcement Administration
GRAND RAPIDS AND DETROIT, MICHIGAN - The United States Attorneys’ Offices for the Western and Eastern Districts of Michigan announced today that McLaren Health Care Corporation (MHCC) has agreed to pay the United States $7,750,000 to resolve allegations that MHCC violated certain provisions of the Controlled Substances Act (the CSA), 21 U.S.C. §§ 801-904. The civil settlement resulted from a years-long investigation by the U.S. Drug Enforcement Administration (DEA) into MHCC’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a health care system.
DEA began its investigation after learning that an unregistered substance abuse treatment facility was improperly receiving controlled substances from an MHCC subsidiary pharmacy in the Western District of Michigan by calling in prescriptions for “office stock.” DEA expanded its investigation and concluded that certain of MHCC’s controlled substances practices, at numerous facilities across the State of Michigan, violated the CSA and its implementing regulations.
The government alleged, among other things, that McLaren Port Huron Pharmacy and McLaren Yale Pharmacy in the Eastern District of Michigan dispensed Schedule II drugs without written prescriptions and despite “red flags” that those drugs were being diverted by MHCC’s pharmacist-in-charge. These “red flags” included: pattern prescriptions for the same type of drugs, in the same quantities, from the same prescriber; prescriptions for excessive quantities of highly-addictive Schedule II drugs; repeated early prescription refills; significant outlier drug volumes for individual patients and prescribers; prescription entries in the names of fake patients; and discrepancies between the cash reported and cash collected for controlled substance prescriptions. The government alleged that other MHCC pharmacies also dispensed controlled substances despite obvious “red flags” that the underlying prescriptions may have been issued without a legitimate medical purpose or were otherwise unauthorized.
The government further alleged that several MHCC facilities violated the CSA’s recordkeeping provisions, including by failing to notify DEA of known employee thefts of controlled substances. These violations, the government claimed, stemmed in part from certain facility policies that were inconsistent with the CSA’s requirements and MHCC’s failure to revise other legacy policies that remained in place after MHCC acquired corporate health care providers.
As part of the settlement, MHCC admitted that:
- The McLaren Port Huron and Yale Pharmacies did not have written prescriptions for approximately 1,255 Schedule II prescription events between May 1, 2014 and February 22, 2018;
- MHCC’s Prescription Services pharmacy distributed controlled substances to an unregistered treatment facility in Boyne Falls, Michigan between November 22, 2015 and November 13, 2017 without making a good faith inquiry into whether that treatment facility was registered with DEA;
- McLaren Greater Lansing did not notify DEA of certain thefts of controlled substances between July 27, 2007 and May 31, 2019;
- Theft and diversion of controlled substances occurred at certain of MHCC’s locations; and
- Some of MHCC’s corporate policies—including legacy policies that remained in place after MHCC’s integration with Port Huron Hospital—were not consistent with the requirements of the CSA and its regulations.
Andrew Birge, United States Attorney for the Western District of Michigan, said, “While our health systems provide critical services to patients, they carry broader public responsibilities as bulwarks against the drug diversion that contributes to the surging opioid crisis in the State of Michigan. Hospitals and health systems handle significant quantities of controlled substances and must fulfill their legal obligations for handling those drugs under the Controlled Substances Act. This settlement demonstrates our offices’ shared commitment to working cooperatively, together and with our agency partners, to hold even the largest providers accountable when they fall short of what the law demands.”
“At nearly $7.8 million, this is the largest civil Controlled Substances Act settlement in American history involving a health care system whose internal practices were so deficient that it allowed the diversion of drugs, including opioids,” stated United States Attorney Matthew Schneider. “McLaren clearly didn’t have a sufficient system in place to catch these problems. But now, under this settlement, McLaren is stepping up and implementing more robust compliance measures. That’s exactly what we expect of corporations in Michigan who do wrong: they recognize their mistakes and learn from them, which benefits their employees and the public.”
“Everyone from the manufacturer of a controlled substance to the prescribing healthcare provider has a legal obligation to ensure pharmaceuticals don’t get into the wrong hands,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “When they violate these obligations, we will investigate and hold them accountable.”
As part of the settlement, MHCC entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes the system’s drug-handling responsibilities, mandates external controlled substance audits, and requires MHCC to institute a broad-based educational program focused on preventing drug diversion in the workplace. In reaching this settlement, the government recognized the substantial steps MHCC took in response to DEA’s investigation to address problems in its handling of controlled substances.
DEA investigated this matter. The United States was represented by Assistant U.S. Attorneys Adam Townshend and Caroline Burgunder.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
###
U.S. Attorney Wrigley Announces the Arrest of a Lisbon, ND, Man for the Violent Ax Attack on U.S. Senator John Hoeven’s Office on December 21, 2020Read the Press Release
FARGO – United States Attorney Drew Wrigley announced that a federal grand jury has indicted Thomas Alexander Starks, age 30 of Lisbon, ND, for Damage of Government Property, 18 USC 1361. The Indictment was unsealed today alleging that on December 21, 2020, Starks went to the downtown Fargo office of United States Senator John Hoeven and using an ax, caused substantial damage to the windows, intercom system, and doorframe. The monetary damages caused by Starks’ exceed $1,000.
"The axe attack alleged in this indictment is another attempt to blur the line between threats and speech, resorting to violence in the name of political action" said US Attorney Drew Wrigley, "but we will not allow such incursions, and we will remain unyielding in our support of law enforcement, peaceful speech and lawfulness."
"Vicious and dangerous attacks like this – especially on a government official’s office - will not be tolerated by the FBI," said Michael Paul, special agent in charge of the FBI’s Minneapolis field office. "This defendant’s violent and destructive behavior reflects a total disregard for the rule of law. The defendant will now be held to account for his unlawful actions. The charges announced today reflect our steadfast commitment to identifying violent criminals, enforcing the law, and protecting elected officials from acts of violence," Paul added.
Grand jury Indictments are allegations and are not evidence of guilt. The defendant is presumed innocent unless and until he is proven guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigations, the Fargo Police Department and the Cass County Sheriff’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.
# # # #
U.S. Attorney Mike Hurst Announces First Assistant U.S. Attorney Darren LaMarca Will Serve as Acting U.S. Attorney for Southern District of MississippiRead the Press Release
Jackson, Miss. –United States Attorney Mike Hurst announced that, upon his resignation at the end of today, First Assistant U.S. Attorney Darren LaMarca will begin to serve as Acting U.S. Attorney for the Southern District of Mississippi, effective January 20, 2021.
“Darren LaMarca is a dedicated public servant and will serve the people of the Southern District with honor, integrity and distinction. His background in both the private and public sector, including his leadership in this office, makes him the perfect individual to assume the role of Chief Federal Law Enforcement Officer for over half of our state. He is well-respected by law enforcement, the defense bar and our community, and he will do an outstanding job as Acting U.S. Attorney. I want to personally thank him for his wise counsel and his character, and I wish him all the best in this role. He will do an incredible job for our citizens,” said U.S. Attorney Hurst.
“I want to thank Mr. Hurst for his outstanding leadership and relentless pursuit of justice over these past three plus years. The Office of the United States Attorney will continue this relentless pursuit until a new presidentially appointed United States Attorney is confirmed.,” said First Assistant U.S. Attorney Darren LaMarca.
Mr. LaMarca is a graduate of Northeast Louisiana University and the Mississippi College School of Law. He began his law career in 1986 as a law clerk to Justice Roy Noble Lee of the Mississippi Supreme Court. He then worked as an attorney with a private law firm in Jackson for four years before opening his own practice in Clinton. During his sixteen years in private practice in Clinton, he also served as Municipal Judge for the City of Clinton from 2002 to 2007. In May 2007, he joined the United States Attorney’s Office prosecuting organized drug trafficking, financial crimes, and public corruption. While at the U.S. Attorney’s Office, Mr. LaMarca has served as Deputy Chief of the Criminal Division, Chief of the Criminal Division, and First Assistant United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney, unless otherwise directed by the President of the United States.
U.S. Attorney Cox Announces Departure from Eastern District of Texas PostRead the Press Release
BEAUMONT, Texas – United States Attorney Stephen J. Cox announced that he will step down from his post as U.S. Attorney for the Eastern District of Texas (EDTX) effective 11:59 p.m. today, January 19.
“The opportunity to serve as the U.S. Attorney for the Eastern District of Texas has been a distinct honor and privilege for which I will be forever grateful,” said Cox. “The opportunity to serve the people of the Great State of Texas, and to work alongside the fine men and women of our office, has been nothing short of humbling.”
During Cox’s tenure at EDTX, the District focused increased attention on complex fraud and white-collar enforcement, with a particular emphasis on healthcare, financial, and antitrust crimes; adopted new corporate enforcement policies that are important for transparency, good government, and fairness; launched a new transnational elder fraud initiative designed to target international crime rings targeting senior citizens; formed new partnerships and strike forces with law enforcement partners to leverage expertise and increase referrals; initiated a new violent crime enforcement blitz designed to thwart a rise in gun crimes in Port Arthur and the Golden Triangle; formed new public-private partnerships to facilitate increased information sharing; and developed a new leadership structure to implement specialized fields of practice and increase collaboration and co-counsel opportunities across the District.
Cox began his service at the Department of Justice in early 2017, when he served as Deputy Associate Attorney General in the Office of the Associate Attorney General (OASG), overseeing five large litigating components, three grant-making components, and a number of other offices relating to civil justice. Cox spearheaded numerous policy reforms relating to corporate enforcement and regulatory reform, while overseeing several Department matters concerning financial fraud and healthcare fraud. He also served as vice chair of the Deputy Attorney General’s working group on corporate enforcement and accountability, and as executive director of the Department’s regulatory reform task force.
In May 2020, after more than three years in OASG including as Chief of Staff, former Attorney General William Barr appointed Cox as U.S. Attorney for EDTX effective June 1st, and on September 28th was appointed by the Court as U.S. Attorney, having received the unanimous approval of the active and senior District Judges.
Cox focused a significant amount of attention developing new ways to leverage the talented personnel in the Office. Since his arrival, EDTX made some sizeable changes to the structure of the office, moving personnel between divisions, adding new hires, and creating new roles to better accomplish our mission. In the Criminal Division, for example, Cox identified specialized fields of practice and named Deputy Chiefs to oversee these new sections across the District. The new structure now leverages the expertise of these Deputy Chiefs in some of our most specialized cases and creates a horizontal structure that allows for unprecedented collaboration amongst all our offices.
Under Cox’s leadership, EDTX also increased its capacity and strengths in white collar enforcement through the new personnel structure, more targeted recruiting and staffing, new and improved partnerships with law enforcement, and new corporate enforcement policies. For example, EDTX recruited two new White Collar AUSAs, partnered with the Criminal Division to embed three Healthcare Strike Force prosecutors within EDTX, and recruited new SAUSAs with white-collar experience. EDTX signed an MOU with the Special Inspector General for Pandemic Recovery so that we could heighten the focus on COVID-related fraud; joined the Gulf Coast Strike Force to increase healthcare fraud capacity; and joined the Procurement Collusion Strike Force to bolster efforts to protect competition in the procurement marketplace.
Cox launched a new transnational elder fraud initiative and placed a senior white collar prosecutor from the leadership team in charge. The initiative’s purpose is to reimagine the fight against elder fraud and use the same tactics and tools that EDTX uses to root out transnational drug cartels to decimate the criminal transnational syndicates preying on our seniors. EDTX established three separate Financial Investigation Groups to partner with law enforcement in conducting an expansive review of Suspicious Activity Reports, which have identified financial transactions that might be related to elder fraud. EDTX established an open, working dialogue with some of the world’s biggest banks to share information and foster better referrals. EDTX participated in the Department of Justice’s Money Mule Initiative with great results. Money mules are the lifeblood of these international fraud rings, and EDTX identified and disrupted at least 13 money mules through interviews, warning letters, and criminal charges. EDTX is also working with Texas retailers and grocers on what to look for when they suspect a large gift card purchase is being used to facilitate money laundering. Finally, EDTX grew its partnerships with the Consumer Protection Branch, the Criminal Division, and the Federal Trade Commission, yielding increased elder fraud referrals.
Borrowing a page from his work at Main Justice, Cox recently announced that EDTX has formally adopted the most recent corporate enforcement policies that the Department has introduced in the past four years, removing any doubt as to whether they applied in EDTX. The policies address a wide spectrum of white-collar enforcement issues relating to corporate resolutions, prosecutorial discretion, third-party payments, voluntary disclosure, cooperation, guidance documents, piling-on credit, agency coordination, compliance programs and corporate monitors, and ability to pay. Cox spearheaded several of these policies while at OASG and assisted with others in his capacity as vice-chair of the Deputy Attorney General’s working group on corporate enforcement and accountability.
Cox supervised investigations into and secured charges or convictions in numerous significant cases, including, the bomber of a Beaumont church; Jefferson County residents allegedly engaged in the unlawful nationwide distribution of butanediol, commonly referred to as a “date rape drug;” a church pastor charged with production of child pornography; the seizure of phony tech support websites used to defraud Amazon customers; a Collin County man facing COVID-relief fraud charges related to the Paycheck Protection Program; Liberty County residents alleged to have operated a CARES Act fraud scheme involving Economic Injury Disaster Loans; individuals allegedly engaged in a multi-million dollar transnational money laundering operation involving elder fraud; the sentencing of an Al-Qaeda trained jihadist to 300 months for a plot to recruit terrorists to kill Americans on behalf of ISIS; Aryan Circle gang members and associates indicted on charges of racketeering conspiracy, which includes acts involving murder, and violent crimes in aid of racketeering, including assault resulting in serious bodily injury and kidnapping; a Collin County man convicted for cyber fraud and money laundering that victimized senior citizens, school districts, and charities; the conviction of a Jefferson County physician for health care fraud and kickback violations related to compounded scar creams; and the sentencing of a Dark Web cannibal to 40 years for child exploitation violations.
Under Cox’s leadership, the civil litigation practice in EDTX has achieved significant and numerous successes in all aspects of civil practice, including its efforts to enforce the Controlled Substances Act (CSA), False Claims Act (FCA), civil forfeiture, and well as in its defensive practice, defending federal employees and agencies sued in federal court. The United States sought and obtained a temporary restraining order (TRO) under the CSA barring defendants Jake’s Fireworks and Right Price Chemicals from continuing business operations on the grounds that Jake’s Fireworks was a drug-involved premises. EDTX also played a primary role in negotiating a $48 million settlement in United States ex rel. Magee v. Texas Heart Hospital of the Southwest et al, 4:16-cv-00717 (E.D. Tex.) to resolve claims that Texas Heart Hospital of the Southwest and its wholly owned subsidiary violated the Physician Self-Referral Law and the Anti-Kickback Statute. EDTX also continued its commitment to using the FCA to hold individuals, not just corporations, accountable for fraud on the United States, settling with Bibi Tasleyma Sattar, D.O. and her medical practice for $210,000 for violations of the Anti-Kickback Statute, as well as a similar $368,325.00 settlement with Joseph Rizzo, M.D. and a $281,524.07 settlement with Jason Bourque, also for Anti-Kickback violations. EDTX also commenced civil forfeiture proceedings against Fahad Shah, who submitted fraudulent applications for over $3 million in forgivable loans pursuant to the Small Business Authority’s Paycheck Protection Program, but diverted the funds for his own personal use.
Upon Cox’s departure, Nicholas Ganjei, a career federal prosecutor and EDTX’s First Assistant U.S. Attorney, will serve as Acting U.S. Attorney. Ganjei will become the first Persian-American in the 174-year history of the District to serve as EDTX’s U.S. Attorney (acting or otherwise).
“I expect the transition to be seamless,” said Cox. “Nick and I worked hand-in-glove on setting these office priorities and putting our signature initiatives into motion. Although I am passing the torch, I’m excited to see where Nick and the leadership team take the office next.”
Cox will return to the private sector and will announce his next role in the coming months, but in the meantime, Cox plans to spend time with the family ticking through some bucket-list items that include sightseeing, camping, and touring the country.
Cox’s biography can be found here.
U.S. Attorney Brady Statement on Arrests of Two Western PA Pittsburgh MenRead the Press Release
PITTSBURGH – Scott W. Brady, United States Attorney for the Western District of Pennsylvania, issued the following statement today:
"The U.S. Attorney’s Office is working closely with the FBI and the U.S. Attorney’s Office for the District of Columbia to identify those residents of western Pennsylvania who violated federal law in our nation’s Capitol on January 6. The charges announced today against Jorden Mink and Matthew Perna are the result of this collaboration. Together with our federal, state and local partners, we will ensure that our community is safe from those who would incite or commit further violent acts. Such criminal activity will be met with swift justice."
U.S. Army Soldier Arrested for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
The Justice Department, along with the New York City Police Department (NYPD) and U.S. Army Counterintelligence, announced today the arrest of a private first class in the U.S. Army, on federal terrorism charges based on Bridges’ alleged efforts to assist ISIS to attack and kill U.S. soldiers in the Middle East.
Cole James Bridges, aka Cole Gonzales, 20, of Stowe, Ohio, was charged by complaint with attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members. The FBI and U.S. Army Counterintelligence arrested Bridges today, and he will be presented later today in the U.S. District Court for the Southern District of Georgia.
“Bridges is charged with giving military advice and guidance on how to kill fellow soldiers to individuals he thought were part of ISIS,” said Assistant Attorney General for National Security John C. Demers. “This alleged personal and professional betrayal of comrades and country is terrible to contemplate, but fortunately, the FBI was able to identify the threat posed by Bridges, and today's charges are the first step in holding him accountable for his crimes. ISIS ideology continues to infect those who would threaten the nation's security from within and without, and we will continue to fight this threat.”
“As alleged, Cole Bridges betrayed the oath he swore to defend the United States by attempting to provide ISIS with tactical military advice to ambush and kill his fellow service members,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “Our troops risk their lives for our country, but they should never face such peril at the hands of one of their own. Today, thanks to the efforts of the agents and detectives of the JTTF, and our partners in the Department of Defense, Bridges is in custody and facing federal terrorism charges for his alleged crimes.”
“As we allege today, Bridges, a private in the U.S. Army, betrayed our country and his unit when he plotted with someone he believed was an ISIS sympathizer to help ISIS attack and kill U.S. soldiers in the Middle East,” said FBI Assistant Director in Charge of the New York Office William F. Sweeney Jr. “Fortunately, the person with whom he communicated was an FBI employee, and we were able to prevent his evil desires from coming to fruition. Bridges could have chosen a life of honorable service, but instead he traded it for the possibility of life in prison. This case should serve as a reminder that the FBI’s New York JTTF will never quit in its commitment to protect our Nation from all those who seek to do it harm.”
“Army Counterintelligence’s top priority is protecting the force so it can remain committed to fighting and winning our nation’s wars,” said Army Counterintelligence Coordinating Authority Director Roy T. Cochran. “The results of this investigation show the efforts of Army Counterintelligence agents working alongside our partners in the FBI. We are dedicated to protecting our soldiers, civilians, and families from terrorist acts and insider threats.”
According to the criminal complaint charging Bridges, which was unsealed today in Manhattan federal court:
Bridges joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the 3rd Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, Bridges began researching and consuming online propaganda promoting jihadists and their violent ideology. Bridges also expressed his support for the Islamic State of Iraq and al-Sham (ISIS) and jihad on social media. In or about October 2020, Bridges began communicating with an FBI online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, Bridges expressed his frustration with the U.S. military and his desire to aid ISIS. Bridges then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City, such as the 9/11 Memorial. Bridges also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.
In or about December 2020, Bridges began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, Bridges diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops. Bridges further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, Bridges provided the OCE with a video of himself in body armor standing before a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately a week later, Bridges sent a second video in which Bridges, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
Bridges is charged in the complaint with (1) attempting to provide material support to ISIS, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; and (2) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The Justice Department praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force (JTTF), which consists of agents and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and the U.S. Army 3rd Infantry Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Michael Dittoe and Lauren Goddard of the Counterterrorism Section of the Department of Justice’s National Security Division.
U.S. Army Soldier Arrested for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), and Roy T. Cochran, Director, U.S. Army Counterintelligence Coordinating Authority, announced today the arrest of COLE JAMES BRIDGES, a/k/a “Cole Gonzales,” a Private First Class in the U.S. Army, on federal terrorism charges based on BRIDGES’s alleged efforts to assist ISIS to attack and kill U.S. soldiers in the Middle East. BRIDGES was charged by Complaint with attempting to provide material support to a designated foreign terrorist organization, and attempting to murder U.S. military service members. The FBI and Army Counterintelligence arrested BRIDGES today, and he will be presented on Thursday, January 21, 2021, in the U.S. District Court for the Southern District of Georgia.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Cole Bridges betrayed the oath he swore to defend the United States by attempting to provide ISIS with tactical military advice to ambush and kill his fellow service members. Our troops risk their lives for our country, but they should never face such peril at the hands of one of their own. Today, thanks to the efforts of the agents and detectives of the JTTF, and our partners in the Department of Defense, Bridges is in custody and facing federal terrorism charges for his alleged crimes.”
Assistant Attorney General John C. Demers said: “Bridges is charged with giving military advice and guidance on how to kill fellow soldiers to individuals he thought were part of ISIS. This alleged personal and professional betrayal of comrades and country is terrible to contemplate, but fortunately, the FBI was able to identify the threat posed by Bridges, and today’s charges are the first step in holding him accountable for his crimes. ISIS ideology continues to infect those who would threaten the nation’s security from within and without, and we will continue to fight this threat.”
FBI Assistant Director William F. Sweeney Jr. said: “As we allege today, Bridges, a private in the U.S. Army, betrayed our country and his unit when he plotted with someone he believed was an ISIS sympathizer to help ISIS attack and kill U.S. soldiers in the Middle East. Fortunately, the person with whom he communicated was an FBI employee, and we were able to prevent his evil desires from coming to fruition. Bridges could have chosen a life of honorable service, but instead he traded it for the possibility of a lengthy prison sentence. This case should serve as a reminder that the FBI’s New York JTTF will never quit in its commitment to protect our Nation from all those who seek to do it harm.”
NYPD Commissioner Dermot Shea said: “As alleged in this federal complaint, Cole Bridges violated his oath and used his position of privilege against his fellow citizens. This arrest, and the work of the FBI’s New York JTTF and all of our law enforcement partners, will ensure that this individual faces justice.”
Army Counterintelligence Coordinating Authority Director Roy T. Cochran said: “Army Counterintelligence’s top priority is protecting the force so it can remain committed to fighting and winning our Nation’s wars. The results of this investigation show the efforts of Army Counterintelligence agents working alongside our partners in the FBI. We are dedicated to protecting our Soldiers, Civilians, and Families from terrorist acts and insider threats.”
According to the criminal Complaint charging BRIDGES,[1] which was unsealed today in Manhattan federal court:
BRIDGES joined the U.S. Army in approximately September 2019, and was assigned as a cavalry scout in the 3rd Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, BRIDGES began researching and consuming online propaganda promoting jihadists and their violent ideology. BRIDGES also expressed his support for the Islamic State of Iraq and al-Sham (“ISIS”) and jihad on social media. In or about October 2020, BRIDGES began communicating with an FBI online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, BRIDGES expressed his frustration with the U.S. military and his desire to aid ISIS. BRIDGES then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City, such as the 9/11 Memorial. BRIDGES also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.
In or about December 2020, BRIDGES began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, BRIDGES diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops. BRIDGES further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, BRIDGES provided the OCE with a video of himself in body armor standing before a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately a week later, BRIDGES sent a second video in which BRIDGES, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
* * *
BRIDGES, 20, of Stow, Ohio, is charged in the Complaint with (1) attempting to provide material support to ISIS, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; and (2) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Ms. Strauss also thanked U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and the U.S. Army 3rd Infantry Division for their assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Michael Dittoe and Lauren Goddard of the Counterterrorism Section of the Department of Justice’s National Security Division.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
U.s. Attorneys Andrew Birge and Matthew Schneider Announce Record-Setting Drug Diversion Civil Penalty Settlement with McLaren Health Care CorporationRead the Press Release
GRAND RAPIDS AND DETROIT - The United States Attorneys’ Offices for the Western and Eastern Districts of Michigan announced today that McLaren Health Care Corporation (MHCC) has agreed to pay the United States $7,750,000 to resolve allegations that MHCC violated certain provisions of the Controlled Substances Act (the CSA), 21 U.S.C. §§ 801-904. The civil settlement resulted from a years-long investigation by the U.S. Drug Enforcement Administration (DEA) into MHCC’s handling of controlled substances. It is the nation’s largest settlement of its kind involving allegations of drug diversion at a health care system.
DEA began its investigation after learning that an unregistered substance abuse treatment facility was improperly receiving controlled substances from an MHCC subsidiary pharmacy in the Western District of Michigan by calling in prescriptions for “office stock.” DEA expanded its investigation and concluded that certain of MHCC’s controlled substances practices, at numerous facilities across the State of Michigan, violated the CSA and its implementing regulations.
The government alleged, among other things, that McLaren Port Huron Pharmacy and McLaren Yale Pharmacy in the Eastern District of Michigan dispensed Schedule II drugs without written prescriptions and despite “red flags” that those drugs were being diverted by MHCC’s pharmacist-in-charge. These “red flags” included: pattern prescriptions for the same type of drugs, in the same quantities, from the same prescriber; prescriptions for excessive quantities of highly-addictive Schedule II drugs; repeated early prescription refills; significant outlier drug volumes for individual patients and prescribers; prescription entries in the names of fake patients; and discrepancies between the cash reported and cash collected for controlled substance prescriptions. The government alleged that other MHCC pharmacies also dispensed controlled substances despite obvious “red flags” that the underlying prescriptions may have been issued without a legitimate medical purpose or were otherwise unauthorized.
The government further alleged that several MHCC facilities violated the CSA’s recordkeeping provisions, including by failing to notify DEA of known employee thefts of controlled substances. These violations, the government claimed, stemmed in part from certain facility policies that were inconsistent with the CSA’s requirements and MHCC’s failure to revise other legacy policies that remained in place after MHCC acquired corporate health care providers.
As part of the settlement, MHCC admitted that:
• The McLaren Port Huron and Yale Pharmacies did not have written prescriptions for approximately 1,255 Schedule II prescription events between May 1, 2014 and February 22, 2018;
• MHCC’s Prescription Services pharmacy distributed controlled substances to an unregistered treatment facility in Boyne Falls, Michigan between November 22, 2015 and November 13, 2017 without making a good faith inquiry into whether that treatment facility was registered with DEA;
• McLaren Greater Lansing did not notify DEA of certain thefts of controlled substances between July 27, 2007 and May 31, 2019;
• Theft and diversion of controlled substances occurred at certain of MHCC’s locations; and
• Some of MHCC’s corporate policies—including legacy policies that remained in place after MHCC’s integration with Port Huron Hospital—were not consistent with the requirements of the CSA and its regulations.
Andrew Birge, United States Attorney for the Western District of Michigan, said, “While our health systems provide critical services to patients, they carry broader public responsibilities as bulwarks against the drug diversion that contributes to the surging opioid crisis in the State of Michigan. Hospitals and health systems handle significant quantities of controlled substances and must fulfill their legal obligations for handling those drugs under the Controlled Substances Act. This settlement demonstrates our offices’ shared commitment to working cooperatively, together and with our agency partners, to hold even the largest providers accountable when they fall short of what the law demands.”
“At nearly $7.8 million, this is the largest civil Controlled Substances Act settlement in American history involving a health care system whose internal practices were so deficient that it allowed the diversion of drugs, including opioids,” stated United States Attorney Matthew Schneider. “McLaren clearly didn’t have a sufficient system in place to catch these problems. But now, under this settlement, McLaren is stepping up and implementing more robust compliance measures. That’s exactly what we expect of corporations in Michigan who do wrong: they recognize their mistakes and learn from them, which benefits their employees and the public.”
“Everyone from the manufacturer of a controlled substance to the prescribing healthcare provider has a legal obligation to ensure pharmaceuticals don’t get into the wrong hands,” said Drug Enforcement Administration Special Agent in Charge Keith Martin. “When they violate these obligations, we will investigate and hold them accountable.”
As part of the settlement, MHCC entered into a three-year Memorandum of Agreement with DEA that, among other things, prescribes the system’s drug-handling responsibilities, mandates external controlled substance audits, and requires MHCC to institute a broad-based educational program focused on preventing drug diversion in the workplace. In reaching this settlement, the government recognized the substantial steps MHCC took in response to DEA’s investigation to address problems in its handling of controlled substances.
DEA investigated this matter. The United States was represented by Assistant U.S. Attorneys Adam Townshend and Caroline Burgunder.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
###
Tulare County Gang Member Sentenced to 3 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Cesar Pena, 28, of Strathmore, was sentenced Friday by U.S. District Judge Dale A. Drozd to three years and one month in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on July 16, 2019, Pena, a Strathmore Norteno gang member and a convicted felon prohibited by law from possessing a firearm, sold a firearm to another individual in Fresno. Pena does not hold a Federal Firearms License, and as such, is also prohibited from selling firearms. On Oct. 2, 2020, Pena pleaded guilty to being a felon in possession of a firearm.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Texas Tax Preparer Pleads Guilty to Defrauding the Internal Revenue Service:Read the Press Release
LITTLE ROCK-A Dallas area tax preparer pleaded guilty to conspiracy to defraud the Internal Revenue Service (IRS) after his participation in a scheme that rerouted more than $11.5 million that was intended to benefit farmers who had been discriminated against. Jerry Green, 40, pleaded guilty today before Chief United States District Judge D. Price Marshall, who will sentence Green at a later date.
Green admitted preparing at least 82 false tax returns as part of a scheme to defraud the United States Department of Agriculture (USDA). In 1997, a group of Black farmers filed a class action lawsuit alleging they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. A similar lawsuit alleged that Hispanic and women farmers also experienced discrimination in USDA farm benefit programs. Both lawsuits were settled and resulted in a claims process where farmers could make a claim for financial relief by showing they had applied for participation in a USDA benefit program and had been denied. Successful claims resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the IRS as a tax withholding.
Green worked for First Choice Taxes, a tax preparation service. At today’s hearing, Green admitted that he was hired by co-defendant Rosie Bryant to assist with filing false tax returns for Black Farmers Discrimination Litigation claimants. In November 2013, Green opened his own tax preparation business, Jiffy Tax, and met with Rosie Bryant and her sisters, Lynda Charles, Delois Bryant, and Brenda Sherpell, all of whom are now co-defendants in the case. According to statements made at the plea hearing, Green and the four sisters reached an agreement in which Jiffy Tax would prepare fraudulent tax returns for Hispanic Women’s Farmers and Ranchers claimants in exchange for a payment of $550 per fraudulent return. The false returns Green filed totaled $4,615,009.
Green and his co-defendants were indicted by a federal grand jury in December 2019. In addition to the charges against Green and the four Bryant sisters, the indictment alleges that Little Rock attorney Everett Martindale also worked for the sisters by depositing claim checks into his law firm trust account, issuing a check from that trust account to the claimant, and withholding his attorney fee—which he would then split with the sisters. The sisters and Martindale are awaiting trial, which is scheduled for February 7, 2022.
“Today’s guilty plea is the first step towards resolving this complex fraud investigation,” stated Acting United States Attorney Jonathan D. Ross. “We appreciate the work of IRS Criminal Investigation in their efforts to bring this matter to justice.”
“Today, Mr. Green admitted to using his tax return business, Jiffy Tax, to make a fast buck with a scheme where he conspired with others to prepare false client tax returns,” said IRS-Criminal Investigation Dallas Field Office Acting Special Agent in Charge Mark Pearson. “Let this be a reminder to others seeking to enrich themselves illegally - IRS-CI will continue to work diligently to identify, investigate and recommend prosecution of abusive return preparers to protect the American tax system.”
In October 2019, the United States government filed a civil case to forfeit several properties that were purchased using money traceable to the crimes charged in the indictment. The USDA – Office of Inspector General and the IRS, with assistance from the United States Marshals Service and the United States Postal Inspection Service, conducted the investigation. Assistant United States Attorneys Cameron McCree, Amanda Fields, and Bart Dickinson are prosecuting the case.
# # #
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
Suspect in Nashville Homicide Facing Federal Firearms and Drug Trafficking ChargesRead the Press Release
NASHVILLE, Tenn. – January 19, 2021 – A criminal complaint obtained today, charged James Edward Cowan, aka James Edward Lillard, 28, of Nashville, with federal firearms and drug offenses, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. Cowan was charged with being a convicted felon in possession of a firearm; possessing a firearm in furtherance of a drug trafficking crime; and possession with intent to distribute a controlled substance.
According to the complaint, on January 12, 2021, Metropolitan Nashville Police Department (MNPD) detectives were conducting surveillance in the area of the La Quinta Inn on Sidco Drive, in an attempt to locate and arrest Cowan, who was wanted for a homicide which occurred on December 3, 2020, on I-440 in Nashville. Detectives observed a car enter the parking lot and park and then observed an individual matching the description of Cowan, exit the hotel and enter the car on the passenger side. The car then exited the lot and detectives maintained visual surveillance of the car as it travelled about the Nashville area before parking in the area of 300 Hickory Hollow Place. Once parked, detectives determined the passenger was in fact Cowan and arrested him without incident.
Upon searching Cowan, detectives found a substantial quantity of Xanax pills and fentanyl and more than $2,100 cash in his pockets. A search of the car produced more pills and other controlled substances. Detectives also found a Glock pistol with an extended magazine and a .45 caliber handgun. The driver of the car told detectives that the drugs and guns belonged to Cowan and acknowledged knowing that Cowan was wanted for homicide. The driver was subsequently charged by the MNPD for aiding Cowan in eluding law enforcement.
Cowan was previously convicted for robbery in Davidson County, Tennessee in 2011 and was sentenced to six years’ incarceration. If convicted of the instant federal offenses, he faces a mandatory minimum of five years and up to life in prison.
This case is being investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Robert E. McGuire is prosecuting the case.
The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Surry County Man Sentenced to 20 Years in Prison for Transportation of Child PornographyRead the Press Release
GREENSBORO, N.C. – A Mount Airy, N.C., man who sent a child pornography video to an individual he believed to be a 13-year-old girl was sentenced to 20 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
WALTER CLIFTON WOOD, 44, pleaded guilty on May 12, 2020, to transportation of child pornography. He was sentenced today by United States District Judge Catherine C. Eagles to 240 months of imprisonment followed by 15 years of supervised release.
Beginning in May 2018, WOOD chatted online with an individual purporting to be a 13-year-old girl, but who was actually an undercover detective with the Alamance County Sheriff’s Office. WOOD repeatedly directed the conversation to topics of a sexual nature and encouraged the purported 13-year-old to engage in sex acts. Twice during the communication, once in May and again in July 2018, WOOD sent a video depicting an adult engaging in a sex act with a twelve-year-old girl. WOOD was arrested on July 27, 2018 in Surry County and has been in custody since.
When investigators with Homeland Security Investigations reviewed WOOD’s phones they discovered over 75 child pornography images and videos. They also learned that WOOD had engaged in an extended and sexually inappropriate online relationship with an actual minor from approximately May 2014 to June 2015.
This case was investigated by the Alamance County Sheriff’s Office with support from Homeland Security Investigations (HSI) and the Surry County Sheriff’s Office. All are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
The referenced Alamance County Sheriff’s Office undercover operation resulted in eighteen arrests and, to date, thirteen convictions in state and federal courts. Former Alamance County Sheriff’s Office ICAC investigator Zachary M. Neefe developed and executed the operation. During its course, he was assisted by HSI Special Agent Cory E. Brant, Special Agent Jessie G. Foster, and Computer Forensic Analyst Mark Vincenc.
Three other cases resulting from the operation were prosecuted in the Middle District of North Carolina:
JOSEPH DANIEL ORAN - https://www.justice.gov/usao-mdnc/pr/garner-man-sentenced-30-years-prison-attempted-enticement-minor-and-possession-child
I. JEFFREY BRANDEIS - https://www.justice.gov/usao-mdnc/pr/durham-man-caught-alamance-county-child-exploitation-operation-sentenced-10-years
ADRIAN RODRIGUEZ - https://www.justice.gov/usao-mdnc/pr/two-men-sentenced-separate-incidents-attempting-sexually-exploit-minors-online
These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse and prosecuted by Assistant United States Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Statement of Acting Attorney General Jeffrey A. Rosen Regarding Nationwide Safety and Security for Inauguration DayRead the Press Release
Click to view video.
Tomorrow, the Nation and the world will witness an orderly and peaceful transfer of power in the United States, as the Chief Justice of the Supreme Court swears in President-Elect Biden. Throughout our Nation’s proud history, this ceremony has served as a beacon of democracy and a testament to the enduring strength of our Constitution.
By contrast, the violence we witnessed at the Capitol two weeks ago was an intolerable travesty, which is why the Justice Department has now brought charges against more than one-hundred individuals and has investigations of many others underway.
The Department of Justice is committed, together with our federal, state, and local law enforcement partners, to ensuring a safe and peaceful Inauguration – one that reflects our Nation’s enduring highest values.
As I have repeatedly said over the last two weeks, the Justice Department will have no tolerance for anyone who attempts to mar the day with violence or other criminal conduct. Anyone who does that will be caught, and they will be prosecuted.
Indeed, over the past two weeks, we have seen friends, family members, co-workers, and others reporting information to us about those who were involved in the breach of the Capitol on January 6th. The FBI has received nearly 200,000 digital tips from the public. The American people have demonstrated that they will not allow mob violence to go unanswered. Violence and senseless criminal conduct are not the right way to resolve differences or promote change in our country.
So, rest assured that every level of law enforcement and the National Guard are working around the clock here in Washington, D.C., to provide safety and security for Inauguration Day, and that federal, state, and local law enforcement all around the country are doing the same in our state capitols and government buildings across all fifty states.
As Americans, we all should seek to have a safe and peaceful Inauguration Day, and if we hold fast to our country’s Constitution and traditions, we will.
Statement from Acting U.S. Attorney Bridget M. Brennan on the fatal shooting of Toledo Police Officer Brandon StalkerRead the Press Release
Today is a sad and devastating day for the city of Toledo and the entire law enforcement community as we mourn the loss of Toledo Police Officer Brandon Stalker. This is an unimaginable loss to the Toledo community, the Toledo Police Department and all who knew him. Words cannot describe the heartache and pain felt by the family and friends of Officer Stalker. I send my heartfelt condolences to his children, fiancée and family.
Officer Stalker had only just begun his career as a public servant when he was tragically killed. Few professions demand not only the best of people, but that they go to work every day willing to sacrifice their own lives for the greater good. Law enforcement is certainly one of those professions. Yesterday, Officer Stalker made the ultimate sacrifice.
The Department of Justice stands with the Toledo Police Department and offers our support during this difficult time. Tragically, this marks the second time in less than seven months that a member of the Toledo Police Department was killed in the line of duty as a result of firearms violence. Now, more than ever, and for the memory of Officer Stalker, let us show our support for the brave men and women in law enforcement who have chosen a profession that asks so much of them, their colleagues and their families.
Toledo is a safer community because of Officer Stalker and the nation mourns his loss.
Springfield Man Sentenced to Prison for Defrauding Companies in Flexible Spending Account SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JASON WHITEHEAD, 42, of Springfield, Massachusetts, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 15 months of imprisonment, followed by three years of supervised release, for defrauding multiple companies through a flexible spending account scheme.
According to court documents and statements made in court, Whitehead worked at PayFlex, a company that administered health care and dependent care spending accounts for corporate employees. PayFlex was acquired by Aetna Inc. in 2011. Whitehead worked at the PayFlex division until approximately August 2017, when he transferred to another division at Aetna. However, he retained his employee access to PayFlex’s computer systems via his login credentials.
From September 2016 through July 2019, Whitehead defrauded multiple corporate victims of monies intended to be paid to the victims’ employees for dependent care reimbursements. Using access he had to PayFlex’s systems, Whitehead created multiple fictitious employees at three different victim companies. He then submitted to PayFlex dozens of fraudulent reimbursement claims for dependent care expenses by the fictitious employees. Through this scheme, PayFlex made $176,200 in payments to Whitehead and to third parties that Whitehead designated.
Judge Thompson ordered Whitehead to make full restitution to PayFlex.
On October 27, 2020, Whitehead pleaded guilty to one count of mail fraud.
Whitehead, who is released on bond, is required to report to prison on July 19, 2021.
This investigation was led by a Hartford Police Department detective in his capacity as a member of the Federal Bureau of Investigation’s Connecticut Cyber Task Force (CCTF). The FBI’s CCTF is staffed with detectives from the Connecticut State Police’s Cyber Crimes Investigation Unit and the Bristol, Hartford, New Canaan, Orange, Stamford, Torrington, Watertown and UConn Police Departments. To contact the CCTF, please call the FBI’s New Haven Field Office at 203-777-6311.
This case was prosecuted by Assistant U.S. Attorney David T. Huang.
Somerset Man Sentenced to 206 Months for Methamphetamine TraffickingRead the Press Release
LONDON, Ky. – A Somerset, Ky., man, Jimmy Siegfried Grider, 56, was sentenced to 206 months in federal prison on Tuesday, before U.S. District Court Judge Claria Horn Boom, for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
According to his plea agreement, between January 2015 and September 2018, Grider admitted to conspiring with others to distribute 500 grams or more of methamphetamine, and on March 28, 2018, law enforcement seized 187 grams of methamphetamine from his residence. Grider admitted to developing an arrangement with a methamphetamine dealer, through whom he regularly obtained large quantities of methamphetamine, and then sold the methamphetamine in the Pulaski County area.
Grider was previously convicted for manufacturing methamphetamine in Pulaski Circuit Court in March 2005. Grider pleaded guilty to the federal charge in July 2020.
Under federal law, Grider must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Chief William Hunt, Somerset Police Department; Chief Wayne Bird, Williamsburg Police Department; and Sheriff Greg Speck, Pulaski County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA, Somerset Police Department, Williamsburg Police Department, and the Pulaski County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
— END —
Rock Hill Man Sentenced to Twelve Years in Federal Prison for Involvement in Fentanyl Pill CaseRead the Press Release
Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced today that Fate Thomas McClurkin, Jr., 30, of Rock Hill, was sentenced to twelve years in federal prison for conspiracy to possess with the intent to distribute fentanyl and cocaine, as well as conspiracy to commit money laundering.
Evidence presented in court established that, through an investigation into Darryl Hemphill and Hemphill’s drug trafficking organization, federal agents learned that McClurkin was responsible for selling drugs obtained from Hemphill, including cocaine and clandestinely made pills that contained fentanyl. It was further known that McClurkin had a close relationship with Hemphill related to trafficking voluminous amounts of drugs in the Rock Hill and Charlotte regions. As a co-conspirator in Hemphill’s drug trafficking organization, McClurkin was fully aware the pills purchased and sold by him were fake Roxicodone pills that were made with fentanyl.
On May 25, 2018, agents determined that Hemphill coordinated a drug deal with McClurkin for 13,000 fentanyl pills. Evidence in the case also showed that, after completing this transaction, McClurkin purchased 25,000 more fentanyl-based pills from Hemphill during this conspiracy.
United States District Judge Mary Geiger Lewis sentenced McClurkin to 144 months in federal prison, to be followed by an eight-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Internal Revenue Service (IRS), and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys William K. Witherspoon, T. DeWayne Pearson, and Elliot Daniels, all of the Columbia office, prosecuted the case.
#####
Ridgeland Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
Jackson, Miss. - Steven Daniel Tutor, 42, of Ridgeland, was sentenced Thursday, January 14, 2021, by Senior United States District Judge Tom S. Lee to 10 years in federal prison, followed by 10 years of supervised release, for attempted enticement and coercion of a minor, announced U.S. Attorney Mike Hurst and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi. Tutor must also register as a sex offender.
On July 27, 2019, Tutor attempted to entice an individual he believed to be a 14-year old boy to engage in sexual explicit conduct with him. Through online chat with the minor, Tutor made plans to drive to the Extended Studio Hotel in Jackson, Mississippi, to pick up the minor and take him to an isolated parking area to engage in sexual activities. The FBI arrested Tutor at the hotel in his vehicle as described in the online chats.
Tutor was indicted on May 27, 2020 and he pled guilty before Judge Lee on October 8, 2020.
The case was investigated by the FBI Jackson Field Office's Child Exploitation Task Force and the Hinds County Sheriff’s Office. The Mississippi Attorney General’s Office also assisted with the investigation. Assistant United States Attorney Glenda R. Haynes prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Richard Gilbert Pleads Guilty to Murder-for-Hire Plot against Assistant United States AttorneyRead the Press Release
Columbia, South Carolina----United States Attorney Peter M. McCoy, Jr., announced today that a federal judge has accepted a guilty plea by Federal Bureau of Prisons (BOP) inmate Richard Robert Gilbert for a murder-for-hire and retaliation plot against an Assistant United States Attorney and a confidential informant. The plea calls for Gilbert to serve 262 months, consecutive to the 130-month sentence for which he was already in federal prison.
“The U.S. Attorney’s Office will continue to hold accountable those who seek violent retribution against law enforcement officers and those who assist the government,” said U.S. Attorney McCoy. “We stand united with our law enforcement partners. We are undeterred by bad actors and will ensure the rule of law is upheld.”
Evidence presented in the court showed that Gilbert was serving time at a federal prison in Edgefield for trafficking methamphetamine in Bowling Green, Kentucky, when he sought to hire a hitman to kill the federal prosecutor and a key witness from his Kentucky case. Using a contraband cell phone in prison, Gilbert communicated with an undercover task force officer with the Federal Bureau of Investigation (FBI) who was posing as a hitman. Following multiple recorded phone calls, Gilbert sent the undercover officer a $2,000 check from his prison canteen account as a down payment for the retaliatory murder-for-hire. Masking the true purpose of this payment, Gilbert attempted to mislead BOP officials by misrepresenting the payment as being for an “investment firm.”
Evidence presented also showed that Gilbert drew maps of where he believed the witness from Kentucky lived and provided directions to the undercover officer, posing as the hitman, on how to avoid detection by nearby surveillance cameras. The evidence also showed how Gilbert planned to use income from two of his rental properties to facilitate the attempted murder-for-hire and retaliation plot. He also planned to use the value of his ownership stake in other land to pay for the murder of the federal prosecutor from Kentucky.
The case was investigated by the FBI and the BOP Special Investigative Services Team and prosecuted by Assistant United States Attorneys Jim May, Justin Holloway, and Will Jordan.
#####
Queens Man Arrested for Threatening to Murder Members of CongressRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Brendan Hunt, also known as “X-Ray Ultra,” with threatening to murder United States officials. Hunt was arrested this morning in Queens and made his initial appearance this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., who ordered the defendant detained pending trial.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charge.
“Our democracy depends on the legislators who shoulder the responsibility of government. By allegedly threatening to murder and intimidate elected officials, Hunt is striking at the core of our government,” stated Acting United States Attorney DuCharme. “This Office will aggressively disrupt such conduct and prosecute offenders like the defendant to the fullest extent of the law.”
“Before the assault on the Capitol building, and again after, Hunt’s alleged online commentary directly called for the assassination of members of Congress. This is not a hard message to understand –threats of violence against our public officials won’t be tolerated. Mr. Hunt was arrested this morning by the FBI’s New York Joint Terrorism Task Force. To others from this area who still don’t get it – if you are considering a similar path to ‘take up arms’ like Mr. Hunt did, that road leads nowhere except a reservation at our building downtown,” stated FBI Assistant Director-in-Charge Sweeney.
Mr. DuCharme and Mr. Sweeney praised the outstanding work of the FBI’s New York Joint Terrorism Task Force on the case.
As alleged in the complaint, on January 8, 2021, two days after the riot in the U.S. Capitol in Washington, D.C., Hunt posted a video to an Internet-based video sharing site in which he exhorted his viewers to violence, urging them that “[w]e need to go back to the U.S. Capitol when all of the Senators and a lot of the Representatives are back there, and this time we have to show up with our guns. And we need to slaughter these m-----f------.” The video was one in a series of statements by Hunt posted on social media since at least December 6, 2020, in which he called for violence and “public execution” against members of Congress.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hunt faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler, Ian C. Richardson and Francisco J. Navarro are in charge of the prosecution.
The Defendant:
BRENDAN HUNT (also known as “X-Ray Ultra”)
Age: 37
Ridgewood, QueensE.D.N.Y. Docket No. 21-MJ-57
Political Scientist Author Charged with Acting as an Unregistered Agent of the Iranian GovernmentRead the Press Release
BROOKLYN, NY – A criminal complaint was unsealed today in federal court in Brooklyn charging Kaveh Lotfolah Afrasiabi, also known as “Lotfolah Kaveh Afrasiabi,” with acting and conspiring to act as an unregistered agent of the Government of the Islamic Republic of Iran, in violation of the Foreign Agents Registration Act (FARA). Afrasiabi was arrested yesterday at his home in Watertown, Massachusetts, and will make his initial appearance this morning in federal court in Boston, Massachusetts, before United States Magistrate Judge Jennifer C. Boal.
Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for National Security; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Joseph Bonavolonta, Special Agent-in-Charge, FBI, Boston Field Office announced the arrest and charges.
“Afrasiabi allegedly sought to influence the American public and American policymakers for the benefit of his employer, the Iranian government, by disguising propaganda as objective policy analysis and expertise,” stated Acting U.S. Attorney DuCharme. “This Office is committed to the robust enforcement of the Foreign Agents Registration Act, which provides the American people the tools they need to evaluate opinions and arguments in the marketplace of ideas by requiring foreign agents to declare their paymasters. Those, like the defendant, who conceal the full extent of their work for a foreign government when the law requires disclosure will face consequences for their actions.”
“For over a decade, Kaveh Afrasiabi pitched himself to Congress, journalists, and the American public as a neutral and objective expert on Iran," stated Assistant Attorney General Demers. “However, all the while, Afrasiabi was actually a secret employee of the Government of Iran and the Permanent Mission of the Islamic Republic of Iran to the United Nations (IMUN) who was being paid to spread their propaganda. In doing so, he intentionally avoided registering with Department of Justice as the Foreign Agents Registration Act required. He likewise evaded his obligation to disclose who was sponsoring his views. We now begin to hold him responsible for those deeds.”
“Anyone working to advance the agenda of a foreign government within the United States is required by law to register as an agent of that country,” stated FBI Assistant Director-in-Charge Sweeney. “Mr. Afrasiabi never disclosed to a Congressman, journalists or others who hold roles of influence in our country that he was being paid by the Iranian government to paint an untruthfully positive picture of the nation. Our laws are designed to create transparency in foreign relations, and they are not arbitrary or malleable. As today's action demonstrates, we will fully enforce them to protect our national security.”
“Our arrest of Kaveh Afrasiabi makes it clear that the United States is not going to allow undeclared agents of Iran to operate in our country unchecked. For more than a decade, Mr. Afrasiabi was allegedly paid, directed, and controlled by the Government of Iran to lobby U.S. government officials, including a Congressman; and to create and disseminate information favorable to the Iranian government,” stated FBI Special Agent-in-Charge Bonavolonta. “The FBI will continue to do everything it can to uncover these hidden efforts and hold accountable those who work for our adversaries to the detriment of our national security.”
According to the complaint, Afrasiabi is a citizen of the Islamic Republic of Iran and a lawful permanent resident of the United States. Afrasiabi holds a PhD, and frequently publishes books and articles, and appears on English-language television programs discussing foreign relations matters, particularly Iran’s relations with the United States. Afrasiabi has identified or portrayed himself as a political scientist, a former political science professor or as an expert on foreign affairs.
Since at least 2007 to the present, Afrasiabi has also been secretly employed by the Iranian government and paid by Iranian diplomats assigned to the Permanent Mission of the Islamic Republic of Iran to the United Nations in New York City (IMUN). Afrasiabi has been paid approximately $265,000 in checks drawn on the IMUN’s official bank accounts since 2007 and has received health insurance through the IMUN’s employee health benefit plans since at least 2011.
In the course of his employment by the Iranian government, Afrasiabi has lobbied a U.S. Congressman and the U.S. Department of State to advocate for policies favorable to Iran, counseled Iranian diplomats concerning U.S. foreign policy, made television appearances to advocate for the Iranian government’s views on world events, and authored articles and opinion pieces espousing the Iranian government’s position on various matters of foreign policy. Afrasiabi has long known that FARA requires agents of foreign principals to register with the U.S. Department of Justice and has discussed information obtained from FARA disclosures with others. Nevertheless, Afrasiabi did not register as an agent of the Government of Iran.
For example, in January 2020, Afrasiabi emailed Iran’s Foreign Minister and Permanent Representative to the United Nations with advice for “retaliation” for the U.S. military airstrike that killed Major General Qasem Soleimani, the head of the Quds Force, the external operations arm of the Iranian government’s Islamic Revolutionary Guard Corps, proposing that the Iranian government “end all inspections and end all information on Iran’s nuclear activities pending a [United Nations Security Council] condemnation of [the United States’] illegal crime.” Afrasiabi claimed that such a move would, among other things, “strike fear in the heart of [the] enemy.”
Afrasiabi has admitted in his own communications that his extensive body of published works and television appearances, in which he has consistently advocated perspectives and policy positions favored by the Iranian government, has been attributable to the funding he receives from the Iranian government. For example, in a July 28, 2020 email to Iran’s Foreign Minister, Afrasiabi included “links for many of [his] works, including books, hundreds of articles in international newspapers and academic journals,” telling Iran’s Foreign Minister “Without support none of this would have been possible! This has been a very productive relationship spanning decades that ought not to be interrupted.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged offenses, Afrasiabi faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ian C. Richardson and Michael T. Keilty are in charge of the prosecution, with assistance from Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
KAVEH LOTFOLAH AFRASIABI (also known as “Lotfolah Kaveh Afrasiabi”)
Age: 63
Watertown, MassachusettsE.D.N.Y. Docket No. 21-MJ-50
Political Scientist Author Charged with Acting as an Unregistered Agent of the Iranian GovernmentRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kaveh Lotfolah Afrasiabi, also known as Lotfolah Kaveh Afrasiabi, with acting and conspiring to act as an unregistered agent of the Government of the Islamic Republic of Iran, in violation of the Foreign Agents Registration Act (FARA). Afrasiabi was arrested yesterday at his home in Watertown, Massachusetts, and will make his initial appearance this morning in federal court in Boston, Massachusetts, before U.S. Magistrate Judge Jennifer C. Boal.
John C. Demers, Assistant Attorney General for National Security; Seth D. DuCharme, Acting U.S. Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Joseph Bonavolonta, Special Agent in Charge, FBI, Boston Field Office, announced the arrest and charges.
“For over a decade, Kaveh Afrasiabi pitched himself to Congress, journalists, and the American public as a neutral and objective expert on Iran,” said John C. Demers, Assistant Attorney General for National Security. “However, all the while, Afrasiabi was actually a secret employee of the Government of Iran and the Permanent Mission of the Islamic Republic of Iran to the United Nations (IMUN) who was being paid to spread their propaganda. In doing so, he intentionally avoided registering with the Department of Justice as the Foreign Agents Registration Act required. He likewise evaded his obligation to disclose who was sponsoring his views. We now begin to hold him responsible for those deeds.”
“Afrasiabi allegedly sought to influence the American public and American policymakers for the benefit of his employer, the Iranian government, by disguising propaganda as objective policy analysis and expertise,” said Acting U.S. Attorney DuCharme. “This Office is committed to the robust enforcement of the Foreign Agents Registration Act, which provides the American people the tools they need to evaluate opinions and arguments in the marketplace of ideas by requiring foreign agents to declare their paymasters. Those, like the defendant, who conceal the full extent of their work for a foreign government when the law requires disclosure will face consequences for their actions.”
“Anyone working to advance the agenda of a foreign government within the United States is required by law to register as an agent of that country,” said FBI Assistant Director in Charge Sweeney. “Mr. Afrasiabi never disclosed to a congressman, journalists or others who hold roles of influence in our country that he was being paid by the Iranian government to paint an untruthfully positive picture of the nation. Our laws are designed to create transparency in foreign relations, and they are not arbitrary or malleable. As today's action demonstrates, we will fully enforce them to protect our national security.”
“Our arrest of Kaveh Afrasiabi makes it clear that the United States is not going to allow undeclared agents of Iran to operate in our country unchecked. For more than a decade, Mr. Afrasiabi was allegedly paid, directed, and controlled by the Government of Iran to lobby U.S. government officials, including a congressman; and to create and disseminate information favorable to the Iranian government,” said FBI Special Agent in Charge Bonavolonta. “The FBI will continue to do everything it can to uncover these hidden efforts and hold accountable those who work for our adversaries to the detriment of our national security.”
According to the complaint, Afrasiabi is a citizen of the Islamic Republic of Iran and a lawful permanent resident of the United States. Afrasiabi holds a PhD, and frequently publishes books and articles, and appears on English-language television programs discussing foreign relations matters, particularly Iran’s relations with the United States. Afrasiabi has identified or portrayed himself as a political scientist, a former political science professor or as an expert on foreign affairs.
Since at least 2007 to the present, Afrasiabi has also been secretly employed by the Iranian government and paid by Iranian diplomats assigned to the Permanent Mission of the IMUN. Afrasiabi has been paid approximately $265,000 in checks drawn on the IMUN’s official bank accounts since 2007, and has received health insurance through the IMUN’s employee health benefit plans since at least 2011.
In the course of his employment by the Iranian government, Afrasiabi has lobbied a U.S. congressman and the U.S. Department of State to advocate for policies favorable to Iran, counseled Iranian diplomats concerning U.S. foreign policy, made television appearances to advocate for the Iranian government’s views on world events, and authored articles and opinion pieces espousing the Iranian government’s position on various matters of foreign policy. Afrasiabi has long known that FARA requires agents of foreign principals to register with the U.S. Department of Justice and has discussed information obtained from FARA disclosures with others. Nevertheless, Afrasiabi did not register as an agent of the Government of Iran.
For example, in January 2020, Afrasiabi emailed Iran’s Foreign Minister and Permanent Representative to the United Nations with advice for “retaliation” for the U.S. military airstrike that killed Major General Qasem Soleimani, the head of the Quds Force, the external operations arm of the Iranian government’s Islamic Revolutionary Guard Corps, proposing that the Iranian government “end all inspections and end all information on Iran’s nuclear activities pending a [United Nations Security Council] condemnation of [the United States’] illegal crime.” Afrasiabi claimed that such a move would, among other things, “strike fear in the heart of [the] enemy.”
Afrasiabi has admitted in his own communications that his extensive body of published works and television appearances, in which he has consistently advocated perspectives and policy positions favored by the Iranian government, has been attributable to the funding he receives from the Iranian government. For example, in a July 28, 2020, email to Iran’s Foreign Minister, Afrasiabi included “links for many of [his] works, including books, hundreds of articles in international newspapers and academic journals,” telling Iran’s Foreign Minister, “Without support none of this would have been possible! This has been a very productive relationship spanning decades that ought not to be interrupted.”
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of both charged offenses, Afrasiabi faces a maximum sentence of 10 years in prison.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Ian C. Richardson and Michael T. Keilty are in charge of the prosecution, with assistance from Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.
Owner of Online Payday Loan Company Pleads Guilty to Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – A Mission Hills, Kansas, man pleaded guilty in federal court today to a bankruptcy fraud scheme related to his online payday loan company.
Del H. Kimball, 53, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of bankruptcy fraud.
By pleading guilty today, Kimball admitted that he engaged in a scheme to defraud the Bankruptcy Court by concealing assets, bank accounts, and claims against third parties, and by making false statements and material omissions regarding his assets and financial transfers to and from third parties.
Three of Kimball’s creditors filed an involuntary bankruptcy petition against Kimball, his partner, and their company, LTS, an online payday loan company, on Aug. 5, 2015. The claims of the three creditors totaled more than $15 million.
The U.S. Bankruptcy Trustee filed a complaint to deny Kimball’s discharge on March 10, 2017, and the Bankruptcy Court conducted a trial on Jan. 11, 2018. After the trial, U.S. Bankruptcy Judge Cynthia Norton ruled that Kimball had transferred property with the intent to hinder, delay, or defraud creditors, made numerous false oaths in connection with this bankruptcy case, and concealed property from the bankruptcy estate. The court found that the evidence was “overwhelming” that Kimball made false statements under oath. The court denied Kimball’s discharge.
For example, Kimball failed to disclose at least $69,000 in transfers to relatives. He undervalued collectibles by $24,000. He omitted transfers to Claw Consulting, LLC, another company he owned (with no employees). Kimball established a bank account for Claw Consulting, and caused the bank statements to be mailed to an attorney at the attorney’s business address in order to stash income and proceeds of sales he wanted to conceal from creditors.
Under federal statutes, Kimball is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI and the U.S. Bankruptcy Trustee.
Owatonna Man Charged with Possession of an Unregistered FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal criminal complaint against DAYTON CHARLES SAUKE, 22, charging him with possessing an unregistered firearm. SAUKE was taken into federal custody on January 15, 2021, and will make his initial appearance today before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in the criminal complaint and law enforcement affidavit, on July 30, 2020, the Olmsted County Sheriff’s Office received information that SAUKE was selling narcotics and manufacturing and dealing firearms without a license. Beginning on December 6, 2020, law enforcement agents monitored SAUKE’s Snapchat account. SAUKE made numerous posts consistent with manufacturing and dealing firearms without a license, as well as using and dealing drugs. Between December 6, 2020, and January 12, 2021, SAUKE posted pictures of a short-barreled shotgun and made several threatening posts about killing law enforcement and politicians. On January 15, 2021, two undercover agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) met with SAUKE and purchased from him a privately made firearm for $1,500. SAUKE discussed with the undercover agents the cost for manufacturing additional firearms. During the conversation, SAUKE showed the undercover agents photos of firearms they could purchase and said he had a “sawed-off shotgun” in his car. The undercover agents agreed to purchase two additional firearms from SAUKE and paid him $900 toward the purchases. Once the purchase was complete, SAUKE was taken into custody. Agents recovered from SAUKE’s vehicle a short-barreled shotgun, similar to the gun shown in SAUKE’s Snapchat posts, and a box of shotgun ammunition. Federal law requires shotguns with reduced barrels and overall lengths (often referred to as “sawed-off” or “short-barreled” shotguns) to be registered in the National Firearms Registration and Transfer Record. The shotgun was not registered to SAUKE.
This case is the result of an investigation conducted by the ATF, FBI, U.S. Postal Inspection Service, the Olmsted County Sheriff’s Office, the South Central Drug Investigations Unit, and the Cannon River Drug Task Force.
This case is being prosecuted by Assistant U.S. Attorney Justin A. Wesley.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
DAYTON CHARLES SAUKE, 22
Owatonna, Minn.
Charges:
- Possession of an unregistered firearm, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Outagamie County Man Sentenced to Federal Prison for Unlawful Sale of Firearm SilencersRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on January 12, 2021, U.S. District Judge William C. Griesbach sentenced Jerry Lee Olson (age: 63) to six months’ imprisonment and three years’ supervised release after Olson pled guilty to unlawfully transferring a firearm silencer, in violation of Title 26, United States Code, Section 5861(e). The maximum penalties for the offense are ten years’ imprisonment, a $250,000 fine, and three years’ supervised release.
Olson was a licensed federal firearms dealer, d/b/a Warrior Arms LLC, with a business address in Outagamie County. In addition to selling standard firearms, Olson was federally licensed to sell firearms regulated by the National Firearms Act, including firearm silencers. Before any firearm silencer is transferred, the licensed seller must obtain approval by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”). ATF’s investigation determined that Olson had unlawfully transferred at least 17 firearm silencers in Wisconsin and Minnesota by failing to obtain ATF’s approval for the transfer. The silencers were subsequently recovered by ATF. There is no evidence that the silencers were used in criminal offenses or transferred to persons who were otherwise prohibited from possessing firearms. Olson surrendered his federal firearm licenses, and as a convicted felon, is now permanently prohibited from possessing firearms.
“In the wrong hands, firearms silencers can be used to lethal effect,” said United States Attorney Krueger. “That is why the Justice Department vigorously enforces the laws governing their sale and holds irresponsible firearms dealers accountable. I commend the ATF for its excellent investigative work to bring this case.”
“This defendant violated the law with repeated illegal firearms transfers,” said ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “It cost him his federal firearms license and time in federal prison. I commend licensees who follow the laws governing firearms as well as the Industry Operations Investigators of the St. Paul Field Division and the Special Agents of the Milwaukee Field Office of the Chicago Field Division for their diligence in investigating this case and the U.S. Attorney’s office for prosecuting it.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Timothy Funnel
# # #
For Additional Information Contact: Public Information Officer Kenneth Gales
414-297-1700
Follow us on Twitter
Oil Company Employee Indicted for Rendering Safety Systems Inaccurate, Negligent DischargeRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that on January 15, 2021 a grand jury indicted BRANDON WALL, age 42, of Ville Platte, Louisiana, for criminal conduct related to oil extraction in the Gulf of Mexico.
According to the Indictment, WALL engaged in criminal conduct on an oil platform known as Grand Isle 43AA (“GI-43AA”). WALL was an area foreman for the area that included GI-43AA. GI-43AA experienced sand buildup problems with its filtration systems. WALL instructed operators that worked on GI-43AA to keep the platform “flowing” instead of shutting it in to repair or replace the filtration systems. WALL also told the operators to bypass the platform’s safety systems, which would have automatically shut-in the platform. Operators on GI-43AA were aware that putting safety systems in bypass made the platform less safe and increased the risk of a pollution event.
The Indictment alleges that GI-43AA was one of most prosperous oil platforms for Company A, the company that employed WALL. In January 2018, GI-43AA discharged oil and other hazardous substances into the Gulf of Mexico. Eventually, WALL informed the appropriate federal agency about the discharge. When the regulators arrived at GI-43AA, they saw a sheen emanating from GI-43AA, indicating that the platform had discharged oil and other hazardous substances.
WALL is charged with 2 Counts. Count 1 of the Indictment, charges WALL with rendering safety systems inaccurate, in violation of Title 43, United States Code, Section 1350(c)(3) and Count 2 charges WALL with negligently discharging oil and other hazardous substances into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(1)(A). If convicted for Counts 1 and 2, WALL faces imprisonment from one to ten years, mandatory special assessment fees ranging from $25 to $100, supervised release ranging from one to three years and fines ranging from not more than $100,000 per violation (Count 1) and $2,500 to $25,000 per day of violation (Count 2) .
United States Attorney Strasser stated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
United States Attorney Strasser praised the work of the United States Environmental Protection Agency and the Department of the Interior Office of Inspector General, Energy Investigations Unit, in investigating this matter. Assistant United States Attorneys Spiro G. Latsis and J. Ryan McLaren are in charge of the prosecution.
* * *
Oil Company Employee Indicted for Illegal Discharge, False StatementsRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that on January 15, 2021 a grand jury indicted PATRICK HUSE, age 40, of Perkinston, Mississippi, for criminal conduct related to oil extraction in the Gulf of Mexico.
According to the eight-count Indictment, HUSE engaged in criminal conduct on an oil platform known as Main Pass 310A (“MP-310A”). In July 2015, workers on MP-310A noticed a sheen on the surface of the surface of the water surrounding the platform. The sheen meant that the platform was discharging oil or other hazardous substances into the Gulf of Mexico. The workers alerted HUSE, who was a Person-In-Charge (“PIC”) on MP-310A. The workers told HUSE that they believed the sheen was the result of sand buildup in filtration equipment on MP-310A. Rather than shutting-in the platform to repair or replace the filtration equipment, HUSE ordered certain wells closed but otherwise kept the platform operating. This caused further sheening. The sheening continued for another four days until a worker finally activated an emergency shutdown device to stop the sheening. HUSE then instructed the workers to lie to federal regulators about the reason for the emergency shutdown.
The Indictment further alleges that HUSE made false statements in an inspection log kept on MP-310A by Company A, the company that employed HUSE. Federal regulations and rules required Company A to travel to and inspect an unmanned platform in the same area as MP-310A every day, and to physically board the unmanned platform for inspection at least once a week. HUSE told operators to falsely state in the inspection log that they had inspected the unmanned platform when, in reality, no such inspections occurred. HUSE also made his own false entries in the inspection records. The misrepresentations in the inspection records gave the artificial impression that Company A and HUSE were complying with federal regulations.
HUSE is charged in Count 1 of the Indictment with negligently discharging oil and other hazardous substances from MP-310A into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(1)(A). Count 2 charges HUSE with knowingly discharging oil and other hazardous substances from MP-310A into the Gulf of Mexico, in violation of Title 33, United States Code, Section 1321(b)(3) and 1319(c)(2)(A). Count 3 charges HUSE with failure to immediately report the discharge to the appropriate federal agency, in violation of Title 33, United States Code, Section 1321(b)(5). Counts 4 through 8 charges HUSE with making false statements in inspection logs, in violation of Title 43, United States Code, Section 1350(c)(2). If convicted for Counts 1 through 8, HUSE faces a range of imprisonment from one to ten years. Additionally, HUSE faces fines ranging from $2,500 to $250,000 per day of violation, maximum terms of supervised release from one year to three years, and mandatory special assessment fees ranging from $25 to $100. The Indictment includes a Notice of Forfeiture against HUSE.
United States Attorney Strasser stated that an Indictment is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
United States Attorney Strasser praised the work of the United States Environmental Protection Agency and the Department of the Interior Office of Inspector General, Energy Investigations Unit, in investigating this matter. Assistant United States Attorneys Spiro G. Latsis and J. Ryan McLaren are in charge of the prosecution.
* * *
Ohio woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Amy S. Lambert-Shuster, of Caldwell, Ohio, was sentenced today to 12 months and one day of incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Amy Lambert-Shuster, 41, pled guilty to one count of “Aiding and Abetting the Unlawful Transfer of a Machinegun” in September 2020. Lambert-Shuster admitted to transferring an AR15-type firearm in January 2019 in Ritchie County.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
New Closer Law Enforcement Partnerships in Western Kentucky Result in Most Significant Drug Seizure in Owensboro History - Hundreds of Pounds of MethRead the Press Release
OWENSBORO, Ky. – An Owensboro Drug Trafficking Organization is behind bars and charged with multiple felonies after being caught with 151 pounds of methamphetamine, 3.5 pounds of counterfeit pills with suspected deadly fentanyl, and other drugs, announced United States Attorney Russell Coleman.
“Traffickers should take heed to keep their poison out of Daviess County and the Western District of Kentucky,” said U.S. Attorney Russell Coleman “They disregard at their own peril as federal, state, and local law enforcement here stand united to take their dope and send them to federal prison. Stay tuned; more to come.”
DEA Assistant Special Agent in Charge, Michael Gannon said, “Today was a big win for the fine citizens of Owensboro. The individuals arrested during this investigation were responsible for peddling poison into Owensboro and our surrounding communities. Anytime we can take this much methamphetamine, fentanyl and firearms off the streets it is huge! The methamphetamine seized had a street value of almost 7 million dollars and could have provided enough dosage units to fill a capacity crowd at a professional football stadium four times over! The DEA Evansville HIDTA Resident Office is committed to working with the Owensboro Police Department and our other federal, state, and local partners to keep our communities safe by investigating and arresting violent drug traffickers. The DEA appreciates the exceptional work by all our partners who brought these individuals to justice.”
“ATF is committed to protecting the public in Western Kentucky,” said ATF Special Agent in Charge Shawn Morrow. “This investigation highlights ATF’s work with our law enforcement partners to combat criminal organizations and to make Daviess County a safer place to live.”
“The Owensboro Police Department remains committed to getting narcotics and dangerous offenders off the streets of Owensboro.” Said Owensboro Police Chief Art Ealum. “This investigation is undoubtedly the most significant narcotics investigation in our department’s history, which speaks to the magnitude of the drug epidemic in the Owensboro Metropolitan Area. Our Street Crimes Unit, along with our federal and local partners, have worked tirelessly to take down this drug trafficking organization.”
Sheriff Keith Cain said, "This investigation is yet another example of the strong relationship that exists between local law enforcement and our federal partners. Both are equally committed to ridding our community of the scourge of organized drug trafficking and keeping our citizens safe."
According to the criminal complaints, from September 2020 to present, federal and local investigative agencies have conducted a long term investigation into the Willie Watkins Drug Trafficking Organization (DTO) believed to be trafficking in methamphetamine, counterfeit pharmaceutical pills believed to contain fentanyl, and marijuana.
According to the criminal complaints, between January 6, 2021, and January 11, 2021, Willie Watkins, age 30 of Owensboro, Kentucky coordinated the purchase of approximately 150 pounds of suspected methamphetamine with an unidentified male, located in the Los Angeles, California area, and counterfeit pills containing suspected fentanyl from a source in the Phoenix, Arizona area.
According to the complaints, on January 11, 2021, members of the DEA from multiple districts and local law enforcement conducted a traffic stop on a vehicle being operated by another suspected member of the Watkins DTO in Oklahoma City, Oklahoma, as the vehicle travelled from Arizona toward the Western District of Kentucky. During a search of the vehicle subsequent to a certified K-9 alert, law enforcement recovered: approximately one-hundred fifty-one (151) pounds of crystal methamphetamine, approximately three and one-half (3.5) pounds of counterfeit pharmaceutical pills suspected of containing fentanyl (contained in Ziploc bags), approximately twenty-one (21) pounds of marijuana, approximately nine (9) pounds of THC edibles, approximately fourteen (14) pounds of THC related vape products, and approximately one (1) gram of ecstasy.
After learning of the stop, as monitored by law enforcement over judicially authorized intercepts over Willie Watkins’ telephone, Watkins made several calls to multiple individuals discussing the seizure of the narcotics by law enforcement and the calculated amount of money he had lost as a result.
Following the seizure of the narcotics in Oklahoma City, Willie Watkins was charged in a criminal complaint with conspiring to possess with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
Additionally, according to the criminal complaints, on January 13, 2021, federal and local law enforcement executed multiple search warrants at locations associated with the Watkins DTO in Owensboro, Kentucky. As a result of those search warrants, law enforcement seized additional methamphetamine, counterfeit pills containing suspected fentanyl, marijuana, firearms, and over $325,000 in United States Currency.
Based on the evidence obtained from the long term investigation and the search warrants, additional members of the Watkins DTO, including Christopher McNary, age 31 of Owensboro, Kentucky, Richard Cason, age 29 of Owensboro, Kentucky, Keith Watkins, age 28 of Owensboro, Kentucky, and Samuel White, age 27 of Owensboro, Kentucky were also charged in a second criminal complaint with conspiring with each other and others to possess with the intent to distribute 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine and 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
All five men are charged by criminal complaint with Conspiracy to Possess with the Intent to Distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 400 grams of a mixture or substance containing a detectable amount of fentanyl pursuant to Title 21, United States Code, Sections 841 and 846. The potential penalty for the offense charged is a prison term of 10 years to life, a fine of not more than $10,000,000, and not less than 5 years of supervised release.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a U.S. Magistrate Judge. The charges set forth in a complaint are merely accusations and the defendant are presumed innocent until proven guilty beyond a reasonable doubt in a Court of law.
The case is being investigated by the Drug Enforcement Administration (DEA), Evansville, Indiana Resident Office, Albuquerque District Office, Phoenix Field Division, Orange County District County Office, Oklahoma City, Flagstaff Resident Office, Paducah POD, Springfield, Missouri, and SOD; The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Bowling Green, Kentucky; Homeland Security Investigations (HSI) Oklahoma City; Owensboro Police Department, Daviess Co. Sheriff’s Office; Criminal Interdiction Team of Central Oklahoma; Oklahoma County Sheriff’s Office; Oklahoma City Police Department; Arizona Highway Patrol; and the Daviess County Commonwealth Attorney’s Office.
###
New Charges Filed Against Tennessee State Senator Katrina Robinson, Two Others in Fraud and Money Laundering CaseRead the Press Release
Memphis, TN – Tennessee State Senator Katrina Robinson, 40, has been federally charged in a new case, along with two other co-defendants, with conspiracy to commit wire fraud and money laundering. D. Michael Dunavant, U.S. Attorney announced the unsealing of the new federal criminal complaint today.
According to information presented in Court, the Healthcare Institute ("THI") is a post-secondary educational provider located in Memphis, Tennessee. It purports to provide training programs for jobs in the healthcare field, including certified nursing assistant, phlebotomist, and licensed practical nurse. It was founded in January 2015 as a Tennessee for-profit LLC, with Katrina Robinson as director. THI received more than $10,000 in federal funds each year between 2015 and 2019. During that period, Robinson is alleged to have stolen, converted, and intentionally misapplied property of THI for her own use. As a result, on July 30, 2020, she was indicted in Case No. 2:20-cr-20147-SHL, which is currently pending trial in the U.S. District Court for the Western District of Tennessee. https://www.justice.gov/usao-wdtn/pr/federal-grand-jury-returns-indictment-charging-tennessee-state-senator-katrina-robinson
The charges in this new federal complaint arise from a completely separate fraud scheme in which Robinson, Katie Ayers, 59, and Brooke Boudreaux, 32, are alleged to have conspired to use THI to defraud victim R.S. out of $14,470.00, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1956(h).
As set forth in more detail in the complaint affidavit, while investigating the charges in the 2020 case, the FBI also uncovered a scheme in which the defendants convinced R.S. that Boudreaux, with whom he had an existing relationship, needed the money for tuition and expenses to attend THI. R.S. agreed and tendered $14,470.00 to THI for that purpose. In fact, the investigation revealed that Boudreaux was never a student at THI, and the conspirators split the money among themselves for their personal benefit and unjust enrichment.
If convicted, the defendants each face a possible sentence of up to 20 years in federal prison followed by three years supervised release. There is no parole in the federal system. The case will be presented to a federal grand jury at a later date to consider an indictment against the defendants.
This case was investigated by the Federal Bureau of Investigation (FBI).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Chris E. Cotten is prosecuting this case on behalf of the government.
Robinson Complaint 21-20003
###
New Bedford Member of the Latin Kings Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A member of the New Bedford Chapter of the Almighty Latin King and Queen Nation was sentenced today for being a felon in possession of a firearm as a result of a federal investigation into a shooting on April 19, 2020, in New Bedford.
Alexander Pizarro, a/k/a “King Tego,” 28, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 42 months in prison and three years of supervised release. In September 2020, Pizarro pleaded guilty to one count of being a felon in possession of a firearm.
On April 19, 2020, police responded to a report of seven shots fired near a residence on Clark Street in New Bedford. During the response, police located a tan and black Taurus 9mm firearm in an alleyway near the residence. Based on information received from a 911 caller, police were directed to an apartment and located Pizarro. After searching his cell phone, investigators located a photograph of Pizarro in the apartment holding what appeared to be the same firearm that was recovered from Clark Street. This photograph was taken approximately two hours before the shots-fired incident. Through ballistics comparison, the seized firearm was matched to the recovered shell casings from the shooting that evening.
Due to multiple prior convictions, Pizarro is prohibited from possessing firearms. According to court documents, Pizarro was known to investigators to be a member of the New Bedford Chapter of the Latin Kings, and had recently posted multiple pictures holding firearms to his SnapChat account. At the time of the shooting incident, Pizarro was on probation for a 2017 firearms conviction in Rhode Island.
United States Attorney Andrew E. Lelling; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New England Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Assistant U.S. Attorney Philip A. Mallard of Lelling’s Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Former Attorney General Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Middle District of Florida U.S. Attorney’s Office Collects More Than $276 Million in Civil and Criminal Actions in Fiscal Year 2020Read the Press Release
Tampa – United States Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $276,324,126.35 in criminal and civil actions in the fiscal year ending September 30, 2020 (FY 2020). Of this amount, $99,349,069.35 represents collections from locally handled criminal and civil actions, including $65,223,665.55 in civil actions and $34,125,403.80 in criminal actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $222,965,488 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $157,741,823 in these jointly handled cases.
Additionally, the district’s Asset Recovery and Victims’ Rights Division, led by Chief Anita Cream, recovered $19,233,234 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2019, nearly $21 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $4.5 million was shared with federal, state, and local law enforcement agencies.
“Through our collaborative work with our federal, state, and local law enforcement partners, our collection efforts have resulted in the recovery of millions of dollars from convicted criminals and others who have benefitted from fraud and other illegal activities,” said U.S. Attorney Chapa Lopez. “These collected funds will assist victims in their recovery and assist law enforcement as they continue to hold criminals accountable for their crimes.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE ENFORCEMENT CASE SUMMARIES
United States ex rel. Gardner v. Universal Health Services, Inc., et al., case no. 3:12-civ-608 (M.D. Fla.)
A whistleblower filed a complaint under the qui tam provisions of the False Claims Act, alleging that a nationwide provider of behavioral health services, Universal Health Services, Inc., had defrauded federal health programs in a variety of ways, notably by submitting bills for behavioral health services provided to ineligible patients, failing to discharge patients when they no longer needed inpatient or residential treatment, and improper use of physical and chemical restraints and seclusion. While the investigation was underway, seventeen other qui tam cases were filed against the defendants that made overlapping allegations. These cases were transferred to the Eastern District of Pennsylvania where Universal Health maintains its corporate headquarters, and, on July 20, 2020, the cases were globally settled for $122,000,000. Of this amount, $88,124,761 was paid to the United States, with the balance paid to participating state Medicaid plans. In terms of total settlement amount, this is the fifth largest civil health care settlement in the history of the Middle District of Florida. Press release: www.justice.gov/opa/pr/universal-health-services-inc-and-related-entities-pay-122-million-settle-false-claims-act
United States ex rel. Cho v. Surgery Partners, Inc., et al., case no. 8:17-civ-918 (M.D. Fla.)
Within a span of only a few days, two separate whistleblowers filed two qui tam complaints (one in the Eastern District of Pennsylvania and one in the Middle District of Florida) that alleged a large Tampa pain management practice, Tampa Pain Relief Centers, conspired with a local laboratory, Logan Laboratories, and their corporate owner, Surgery Partners, Inc., to defraud federal health programs through claims for medically unnecessary urine drug testing services. The United States intervened in order to settle these claims, and recovered $41,000,000, of which $40,741,823 was paid to the federal government. The balance was paid to state Medicaid plans. Press release: www.justice.gov/opa/pr/reference-laboratory-pain-clinic-and-two-individuals-agree-pay-41-million-resolve-allegations
Opthalmic Consultants, P.A.
A civil investigation was opened into the practices of this Sarasota ophthalmology practice and its co-owners, Robert Snyder, M.D. and Paul Runge, M.D., based upon a referral from the local Medicare integrity contractor. The investigation concluded that from 2013 through 2017, the practice and the two physicians had submitted false claims to Medicare, Tricare, and federal employee health benefit plans arising from treatment of eye conditions. Specifically, the investigation concluded that they had improperly engaged in a practice known as “multi-dosing” (using a single vial of medication to provide doses to multiple patients) in order to receive reimbursement to which they were not entitled. On June 20, 2020, the practice and Dr. Snyder agreed to pay $4.8 million to resolve these civil claims. Press release: https://www.justice.gov/usao-mdfl/pr/sarasota-based-ophthalmic-consultants-agrees-pay-48-million-resolve-claims-multi-dosing
United States ex rel. Parker v. Florida Cancer Research Institute, et al., case no. 2:17-civ-428 (M.D. Fla.)
An employee of the Florida Cancer Research Institute filed a qui tam complaint after she contacted the VA Office of Inspector General’s hotline to report that the institute was being overpaid by the VA for physician-administered drugs. An agency audit following the hotline complaint determined that a mistake in the Fee Basis Claims System had led the Florida Claims Processing Centers to pay the full amount billed by the provider rather than the appropriate Medicare rate. Subsequently, the VA fixed the issue and the institute worked cooperatively with the United States to determine the amount of an overpayment, ultimately returning $2,341,508. Press release: https://www.justice.gov/usao-mdfl/pr/cancer-treatment-center-repays-more-234-million-resolve-civil-claims-pertaining
United States and State of Florida ex rel. Peters v. Hope Hospice and Community Services, et al., case no. 2:16-civ-6 (M.D. Fla.)
A former director of hospice care at a southwest Florida provider of hospice filed a qui tam lawsuit alleging that her former employer, Hope Hospice and Community Services, had defrauded Medicare through claims for reimbursement of medically unnecessary hospice care. The ensuing civil investigation concluded that from July 1, 2012 through June 30, 2016, the provider had submitted claims for services provided to hospice patients who were not terminally ill, in certain instances to patients for a period of over four years. On July 8, 2020, the United States announced a settlement of these civil claims in return for $3,200,000. Press release: https://www.justice.gov/usao-mdfl/pr/hope-hospice-agrees-pay-32-million-settle-false-claims-act-liability
United States ex rel. Silva et al. v. Vici Marketing, Inc., et al., case no. 8:15-civ-444 (M.D. Fla.)
In 2015, two former employees of Oldsmar Pharmacy filed a qui tam complaint alleging that the Tampa Bay area compounding pharmacy submitted claims for millions of dollars in reimbursement to the Tricare health program that were tainted by kickbacks. Among their allegations was that a marketing company owned by Scott Roix – Vici Marketing – was sending patient information to doctors, who certified the patients’ need for compounded pain creams. The compounding pharmacy defendants then billed Tricare for millions of dollars in reimbursement for these medically unnecessary creams. In August, 2018, the United States intervened in the qui tam lawsuit and filed its own complaint, alleging that Roix and his marketing companies fraudulently obtained insurance coverage information from consumers across the country, used that information to arrange for medically unnecessary prescriptions of pain creams, and sold the prescriptions to pharmacies under the guise of marketing services. The United States further alleged that the payments solicited from the pharmacies were based on the volume and value of the prescriptions. On August 1, 2019, the United States announced an ability to pay settlement with Mr. Roix and his marketing companies (HealthRight, LLC; Health Savings Solutions, LLC; Vici Marketing, LLC; and Vici Marketing Group, LLC) that resolved the allegations of the United States in its civil complaint for $2,500,000. The civil settlement also resolved claims that HealthRight, at the direction of Roix, received payments from Synergy Pharmacy that were based on the value and volume of prescriptions solicited by HealthRight on behalf of Synergy Pharmacy. These allegations were also the subject of a criminal case captioned United States v. Roix, et al., case No. 2:18-cr-133 (E.D. Tenn.), in which Roix and HealthRight pleaded guilty in September 2018. Press release: https://www.justice.gov/usao-mdfl/pr/telemarketer-and-his-companies-agree-pay-25-million-settle-allegations-they-operated
United States ex rel. Green et al. v. Tran, et al., case no. 5:15-civ-60 (M.D. Fla.)
In 2015, two relators filed a qui tam complaint alleging that a Villages dermatologist, Thi Thien Nguyen Tran, and his practice, Village Dermatology and Cosmetic Surgery, had defrauded Medicare through a variety of schemes. After a lengthy investigation, we substantiated that Dr. Tran had upcoded claims for complex wound repairs following Mohs surgery procedures, and billed them as adjacent tissue transfers in order to obtain Medicare reimbursement that he was not entitled to receive. On March 13, 2020, we intervened in order to settle these claims in return for $1,744,000. Press release: https://www.justice.gov/usao-mdfl/pr/villages-dermatologist-agrees-pay-more-17-million-settle-false-claims-act-liability
McLaughlin Man Indicted on Murder and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for First Degree Murder and Use of a Firearm During a Crime of Violence that Causes Death.
Casey Lynn Crow Ghost, age 42, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on January 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in prison, a $250,000 fine, five years of supervised release, $200 to the Federal Crime Victims Fund, and forfeiture of the firearm used in the offenses. Restitution may also be ordered.
The Indictment alleges that on December 12, 2020, Crow Ghost willfully, deliberately, maliciously, and with premeditation and malice aforethought, did unlawfully murder a female victim by shooting her with a handgun in McLaughlin.
The charges are merely accusations and Crow Ghost is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency, and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Crow Ghost was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Manhattan U.S. Attorney Announces the Appointment of Deputy U.S. Attorney and Chief Counsel to the U.S. AttorneyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, today announced the selection of Ilan Graff as Deputy U.S. Attorney and Russell Capone as Chief Counsel to the U.S. Attorney. Graff and Capone assumed their new roles on January 16, 2021, when the Court’s appointment of Ms. Strauss as U.S. Attorney took effect.
Mr. Graff most recently served as Chief Counsel to the Acting U.S. Attorney. He has been with the Office since 2012. As an Assistant United States Attorney in the Criminal Division, he worked principally in the Terrorism & International Narcotics Unit. He later served as Co-Chief of the General Crimes Unit and Co-Chief of the Terrorism & International Narcotics Unit. Mr. Graff graduated cum laude from Harvard College in 2005 and cum laude from Harvard Law School in 2009, where he served on the Harvard Law Review. Following graduation from law school, he was a law clerk to then-Chief Judge Sandra L. Lynch on the U.S. Court of Appeals for the First Circuit and Judge Allyson K. Duncan on the U.S. Court of Appeals for the Fourth Circuit, as well as a Dean’s Fellow at Duke Law School, before joining the Office through the Attorney General’s Honors Program.
Mr. Capone most recently served as Counsel to the Acting U.S. Attorney. He has been with the Office since 2011. As an Assistant United States Attorney in the Criminal Division, he worked principally in the Public Corruption Unit and the Violent & Organized Crime Unit. He later served as Deputy Chief and then Co-Chief of the Public Corruption Unit. Mr. Capone graduated summa cum laude from Tufts University in 2002 and cum laude from Harvard Law School in 2005, where he served as managing editor of the Harvard Law Review. Following graduation from law school, he worked in 2005 and from 2007 through 2010 as an associate at the law firm of Davis Polk & Wardwell LLP. In 2006, he was a law clerk to United States District Judge Sidney H. Stein of the Southern District of New York.
Local men sentenced to prison in pawn shop armed robbery caseRead the Press Release
COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court for their roles in the March 2020 armed robbery of a local pawn shop.
De’onte Peoples, 19, and Demetrius E. Braxton, 23, each previously pleaded guilty to one count each of robbery and brandishing a firearm in furtherance of a crime of violence.
Braxton was sentenced today to 74 months in prison and Peoples last week to 76 months in prison.
According to court documents, it was Peoples’ idea to commit a robbery at Lev’s Pawn Shop, a federal firearms licensee located on Morse Road. Peoples and Braxton drove to the pawn shop around 2pm on March 5, 2020 in Peoples’ vehicle.
Peoples and Braxton entered the store carrying firearms and wearing face masks and plastic bags over their shoes. Peoples also carried a black suitcase. The defendants brandished their firearms and demanded three pawn shop employees fill their suitcases with firearms and jewelry from the store’s display cases.
While the robbery was in progress, a customer walked into the pawn shop. Peoples took the man’s wallet, reviewed its contents and then threw the wallet into the victim’s face.
As the defendants left Lev’s Pawn Shop, one of them yelled he would kill anyone who called the police.
In total, the co-conspirators stole 27 firearms, more than 200 pieces of jewelry and approximately $2,700 in cash.
Congress sets the minimum and maximum statutory sentences. Sentencing of defendants is determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Columbus Police Chief Thomas Quinlan announced the sentences imposed by U.S. District Judge Edmund A. Sargus, Jr. The Mifflin Township Police Department assisted in this case. Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney S. Courter Shimeall are representing the United States in this case.
# # #
Justice Department Joins Computational Antitrust Project at Stanford Law SchoolRead the Press Release
WASHINGTON – The Department of Justice announced today that it will participate in the Computational Antitrust project, hosted by the Stanford University CodeX Center and created by Professor Thibault Schrepel. The project brings together academics from law, computer science, and economics as well as developers, policymakers, and antitrust agencies from around the world to discuss how technology and automation can improve antitrust enforcement.
“There are important debates happening today about how we should enforce the antitrust laws, but everyone agrees that enforcement agencies should make decisions using the best tools available,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “We look forward to being part of this valuable dialog about antitrust enforcement.”
As part of the Computational Antitrust project, representatives from the Antitrust Division will participate in regular workshops and dialogs about how to integrate cutting-edge computational developments into antitrust law and policy. The Antitrust Division’s initial representatives will be David Lawrence, Chief of the Competition Policy and Advocacy Section, and Eric Dunn, an attorney in that section. The project’s focus is described in further detail in a recent paper by Professor Schrepel.
The division’s participation in the Computational Antitrust project builds on several other initiatives announced last year to increase the division’s capabilities and engagement in emerging technologies relevant to antitrust enforcement. For example, the division has offered attorneys and staff the opportunity to take coursework focused on blockchain, artificial intelligence and Machine Learning at the Massachusetts Institute of Technology’s Sloan School of Management, and last year held a Public Workshop on Venture Capital and Antitrust, which was co-hosted with Stanford University’s Graduate School of Business and Stanford Law School. Together, these efforts reflect a commitment to ensuring that the division remains at the leading edge of antitrust enforcement.
To learn more about the Computational Antitrust project and other participating agencies, please visit the project’s website.
Johnstown Suboxone Clinic Operator Pleads Guilty to Federal FeloniesRead the Press Release
PITTSBURGH, PA - A resident of Bugler, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to using or maintaining a drug involved premises, and money laundering, United States Attorney Scott W. Brady announced today.
Stephen K. Shaner, 71, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that between May 2012 and April 2018, Shaner was using or maintaining a drug-involved premises, and money laundering in order to conceal the proceeds of a criminal offense. Shaner operated a suboxone clinic called SKS, located in Johnstown, Pennsylvania. Suboxone is a Schedule III drug, used to treat opioid dependence. Shaner employed four physicians at SKS, who prescribed suboxone without physically examining the patients or engaging in any type of medical practice. On numerous occasions, individuals employed by Shaner but who lacked any formal or licensed medical training, completed the pre-signed prescriptions. Shaner laundered proceeds from the clinic by withdrawing them from the clinic’s bank account and depositing them into his personal account.
Judge Bissoon scheduled sentencing for May 11, 2021, at 10:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $500,000, or both. As part of the plea, the defendant agreed to a forfeiture of $1,750,000 in illegal proceeds. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Robert S. Cessar and Michael L. Ivory are prosecuting this case on behalf of the government.
The Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing, conducted the investigation that led to the prosecution of Shaner.
Jeffrey Lowe and Tiger King LLC Ordered to Relinquish Big Cat Cubs to United States for Placement in Suitable FacilitiesRead the Press Release
On Jan. 15, 2021, a federal court issued a preliminary injunction in favor of the United States and against Jeffrey and Lauren Lowe, Greater Wynnewood Exotic Animal Park LLC, and Tiger King LLC based on claimed violations of the Endangered Species Act and the Animal Welfare Act.
U.S. District Court Judge John F. Heil III ordered the Lowes to immediately surrender all Big Cat cubs under the age of one year and their mothers to the government for the pendency of the injunction. The court also ordered the defendants to retain an attending veterinarian and to provide records accounting for all animals acquired and disposed of since June 2020. The court further ordered the defendants and anyone acting on their behalf, including Eric Yano and Stephens Lane LLC, to cease exhibiting animals without a valid U.S. Department of Agriculture (USDA) license.
“The Lowes have showed a shocking disregard for both the health and welfare of their animals, as well as the law,” said Acting Assistant Attorney General Jonathan D. Brightbill of the Justice Department’s Environment and Natural Resources Division. “We are gratified the court agrees and ordered Mr. Lowe to stop ignoring his obligations under the Animal Welfare Act and the Endangered Species Act.”
“This decision sends a clear message to both licensed and unlicensed exhibitors of the Animal Welfare Act’s reach,” said USDA Acting General Counsel Tyler S. Clarkson. “USDA looks forward to continuing its close partnership with the Justice Department to litigate these cases and enforce the Animal Welfare Act.”
The court found that the Lowes’ failure to provide safe conditions, proper nutrition, and timely veterinary care resulted in harm to a number of animals, including the death of two tiger cubs less than a week apart. Such evidence indicated that the defendants’ remaining Endangered Species Act protected animals are at risk of harm and convinced the court to grant the government’s motion for temporary restraining order and motion for preliminary injunction. The court also found that the defendants’ pattern and practice of providing substandard care and their failure to employ a qualified attending veterinarian placed the health of the defendants’ animals in serious danger under the Animal Welfare Act, requiring injunctive relief. Although long authorized by statute, this case marks the first time that the government sought civil judicial injunctive relief under the Animal Welfare Act.
The court was not persuaded by the defendants’ argument that they were not “exhibitors” under the Animal Welfare Act because the zoo was still under construction. The court found that the Lowes’ prior licensure and exhibition of animals, promoting Tiger King Park’s grand opening, making their animals available to the public through online platforms for compensation, and allowing camera crews onto the property to film for a show to appear on Netflix constituted “exhibiting” as contemplated by the Animal Welfare Act.
Trial attorneys from the Environment and Natural Resources Division’s Wildlife and Marine Resources are handling the case. They are assisted by attorneys from the Civil Division of the U.S. Attorney’s Office for the Eastern District of Oklahoma. The case is being investigated by USDA’s Animal Plant and Health Inspection Service and the Department of the Interior’s Fish and Wildlife Service.
The case is United States v. Lowe, et al., No. 20-423 (E.D. Okla.).
Islam Said Pleads Guilty to Concealing ‘10 Most Wanted’ Suspect Yaser Said from ArrestRead the Press Release
A 32-year-old Irving man has pleaded guilty to helping a capital murder suspect evade capture for more than 12 years, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Islam Yaser-Abdel Said, the son of FBI “10 Most Wanted” suspect Yaser Said, pleaded guilty Tuesday morning to one count of conspiracy to conceal a person from arrest, one count of concealing a person from arrest, and one count of conspiracy to obstruct an official proceeding. Mr. Said pleaded open to the charges against him, with no assurances from the government as to the sentence prosecutors would recommend to the judge.
“Islam Said prioritized the whims of his father, an alleged killer, over justice for his own sisters. Thanks to the dogged work of the FBI and its law enforcement partners, however, Mr. Said’s efforts were ultimately in vain,” said U.S. Attorney Prerak Shah. “We are grateful to the many agents and officers who worked to apprehend Mr. Said, along with his father and uncle. Sarah and Amina deserve justice.”
“Islam Said made it possible for his father, Yaser Said, to evade justice for the brutal murder of his daughters for more than a decade,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Along with our partners, the FBI is thankful for the dedication and relentless pursuit that led to the capture of Amina and Sarah’s killer and those that provided him harbor.”
In plea papers, Mr. Said admitted to sheltering his father from arrest in an attempt to subvert the administration of justice.
The elder Mr. Said had been a fugitive from justice since New Year’s Day 2008, when he allegedly murdered his teenage daughters, Amina and Sarah. According to law enforcement, he shot the girls to death inside his taxicab and abandoned their bodies inside the vehicle. He was captured by the FBI’s Violent Crimes Task Force in August 2020, and is currently in state custody.
By pleading guilty, Islam Said admitted that the evidence proved he committed the crimes charged in the superseding indictment.
Mr. Said harbored his father, Yaser, inside an apartment in Bedford, Texas, where a maintenance worker spotted Yaser on Aug. 14, 2017. After the maintenance worker reported the sighting to the FBI, an agent was dispatched to interview Islam, but Islam refused to cooperate.
He later harbored his father inside a home in Justin, Texas that belonged to his cousin. On Aug. 25, 2020 FBI agents observed Mr. Said and his uncle deliver grocery bags to the residence, then followed the men to a shopping center 20 miles away, were they dumped trash retrieved from the home.
Islam Said now faces up to 30 years in federal prison. His is slated to be sentenced on April 30, 2021 at 9 a.m. by U.S. District Judge Reed O’Connor.
Islam’s uncle, Yassein Said, is set for trial on Feb. 1, 2021.
The Federal Bureau of Investigation’s Dallas Field Division and the Irving Police Department conducted the investigation with the assistance of U.S. Customs & Border Patrol, the Dallas Police Department, the Garland Police department, the Grand Prairie Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Tiffany H. Eggers and Errin Martin are prosecuting the case.
Hospice, home health agency and owners pay over $1.8M to resolve claims concerning physician paymentsRead the Press Release
McALLEN, Texas – The founders of an Edinburg hospice and related home health agency have paid to resolve allegations they submitted claims to Medicare that resulted from unlawful referrals, announced U.S. Attorney Ryan K. Patrick.
Onder Ari, 49, Edinburg, and Sedat Necipoglu, 48, McAllen, founded Allstate Hospice LLC and Verge Home Care LLC. They and their companies have now paid $1,847,279.36 following an investigation into improper payments to physicians for referrals.
The investigation began in 2016 and revealed Ari and Necipoglu offered compensation to physicians who were responsible for a significant majority of their patient referrals. Specifically, they provided physicians with monthly payments pursuant to medical directorship agreements with Allstate and Verge. Those payments were in excess of fair market value for the services the physicians actually provided.
Ari and Necipoglu also sold interests in Allstate to five different physicians which ultimately netted them substantial quarterly dividends. They also provided physicians other gifts and benefits, such as travel and tickets to sporting events.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits specified entities from billing Medicare for certain services referred by physicians with whom the entity has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services Medicare, Medicaid and other federally-funded programs cover. Both the Stark Law and the Anti-Kickback Statute are intended to ensure the best interests of the patient and that improper financial incentives do not compromise medical decision-making.
“The FBI is committed, along with its partners, to taking action to eliminate improper relationships and inducements that can corrupt the integrity of physician decision-making and increase health care costs,” said Special Agent in Charge Christopher Combs, FBI San Antonio Division. “Along with criminal prosecution, the FBI will also pursue administrative and civil remedies with the U.S. Attorney’s Office (USAO) and our partner investigative agencies, to prevent, deter and recover government losses sustained by fraud, waste and abuse.”
“Paying physicians to steer patients to one provider over another unacceptably subverts patient choice,” said Special Agent in Charge Miranda Bennett of the Department of Health and Human Services – Office of Inspector General (DHHS-OIG). “We will continue to work with our law enforcement partners to investigate improper payments to physicians to protect patients and the integrity of the programs from unscrupulous acts.”
The FBI and DHHS-OIG conducted the investigation along with the USAO. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Grant County woman admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kelsey Morgan Ault, of Maysville, West Virginia has admitted to her role in a methamphetamine and fentanyl distribution operation, U.S. Attorney Bill Powell announced.
Ault, 26, pled guilty today to one count of “Possession with Intent to Distribute at Least Forty Grams of Fentanyl—Aiding and Abetting.” Ault admitted to having more than 40 grams of fentanyl in Hardy County in January 2020.
Ault is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.