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Tuesday 5 May 2020
Eagle Butte Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute Methamphetamine was sentenced on May 4, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Calvin Donald Edwards, Jr., age 41, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Edwards was indicted by a federal grand jury on January 14, 2020. He pled guilty on February 10, 2020.
The conviction stemmed from an incident that occurred on July 1, 2019, wherein Edwards knowingly and intentionally possessed with intent to distribute approximately 39 grams of methamphetamine in Eagle Butte.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Edwards was immediately remanded to the custody of the U.S. Marshals Service.
Defendants Sentenced for Roles in Access Device Fraud and Identity TheftRead the Press Release
COVINGTON, Ky. - Shirley Ann Cameron, 53, of Chicago, Illinois, and Danielle Vaccara Davis, 42, of Geronimo, Oklahoma, were sentenced today, on their guilty pleas to charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. United States District Court Judge David L. Bunning sentenced Cameron to 36 months in federal prison, while Davis received a total of 30 months.
In their plea agreements, the defendants admitted law enforcement arrested them in Kenton County, Kentucky, after they attempted to use counterfeit credit cards at a liquor store. The pair had numerous counterfeit credit cards in their possession. The investigation revealed that the defendants were part of a conspiracy that was responsible for more than 800 fraudulent return/refund transactions at Cracker Barrel Restaurants, throughout the country. Cameron and Davis conducted approximately 43 purchases at Cracker Barrels in Eastern Kentucky—including Lexington, Florence, Dry Ridge, Mount Sterling, Morehead, and Georgetown—and elsewhere. The loss associated with the fraud scheme topped $160,000.
In committing the scheme, the defendants used counterfeit credit cards to make purchases with stolen account numbers. The defendants would retain the receipt, which displayed only the last four digits of the stolen account number, and would then return the purchased items to a different Cracker Barrel, using the receipt. They would present personal debit cards containing those same four digits, for a return of funds.
Under federal law, the defendants must serve 85 percent of their prison sentences; and upon their release, they will be under the supervision of the United States Probation Office for a specified term. Cameron and Davis were ordered to pay restitution to Cracker Barrel Restaurants.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Yvonne DiCristoforo, Special Agent in Charge of the U.S. Secret Service made the announcement.
The investigation was conducted by the United States Secret Service. The United States was represented by Assistant United States Attorneys Laura K. Voorhees and Wade T. Napier.
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DOJ Increases Efforts to Combat Sexual Harrassment in Housing During the COVID-19 PandemicRead the Press Release
U.S. Attorney Timothy J. Downing is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants in some states. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"Our office is committed to working with all levels of law enforcement to bring to justice any individual so evil-minded as to sexually harass those in desperate need of housing during this pandemic," said U.S. Attorney Timothy J. Downing. The U.S. Attorney’s Office for the Western District of Oklahoma will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]. Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Western District of Oklahoma by calling (405) 553-8700.
Connecticut Substance Abuse Treatment Provider Pays $295K to Settle Improper Billing AllegationsRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, today announced that CONNECTICUT COUNSELING CENTERS (“CCC”) has entered into a civil settlement agreement with the federal and state governments in which it will pay more than $295,000 to resolve allegations that it caused overpayments to be paid by the Connecticut Medicaid Program.
CCC is a healthcare organization that provides outpatient substance abuse and mental health services in Connecticut, with clinics located in Fairfield and New Haven counties. The government’s allegations against CCC arise out of improper billing for urine drug testing services.
The State of Connecticut Department of Social Services (“DSS”) contracted with CCC to provide behavioral health and substance use disorder services to Medicaid beneficiaries. Medicaid reimburses methadone clinics, such as CCC, utilizing a weekly rate payment for each Medicaid patient provided methadone treatment. Regulations issued by the State of Connecticut in 2013 made it clear that the weekly payment was a “bundled” rate that included intake evaluation; initial physical examination; on-site drug abuse testing and monitoring; and individual, group and family counseling services.
On September 3, 2014, Medicaid issued a Provider Bulletin to all methadone clinics reminding them that the weekly rate payment included reimbursement for on-site drug abuse testing and monitoring.
On February 1, 2015, DSS published on its website an Audit Protocol for methadone clinics. The Audit Protocol stated that if a DSS audit found Medicaid paid another laboratory provider for drug testing within a week of the date a methadone clinic was paid for methadone treatment, Medicaid would reduce the methadone clinic’s payment for the methadone treatment service by the cost of the laboratory service.
DSS conducted an audit of CCC and found that both CCC and an independent laboratory billed Medicaid for drug testing performed by the laboratory, contrary to DSS’ weekly rate payment regulation. In January 2016, DSS issued an Audit Report that warned CCC that continued non-compliance with the weekly rate payment rule would result in financial disallowances in future audits.
The government alleges that despite clear guidance from the Medicaid program and the audit finding indicating that on-site drug testing was part of the bundled rate, CCC routinely referred urine drug tests for CCC’s patients to an outside, independent laboratory. As a result, Medicaid paid for the claims twice, once to CCC pursuant to the bundled rate and a second time to the outside laboratory.
To resolve its liability, CCC will pay $295,211 to the federal and state governments for conduct occurring between January 18, 2016 and December 31, 2016.
“Providers who bill government health insurance programs, such as Medicaid, must follow the rules, and the failure to do so will have serious consequences,” stated U.S. Attorney Durham.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorneys General Michael E. Cole and Gregory K. O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Company agrees to pay nearly $1.4 million for underpaying Army and Air Force base food service providerRead the Press Release
COLUMBUS, Ohio – A Delaware Corporation headquartered in Irving, Texas has agreed to pay the United States nearly $1.4 million to settle a False Claims Act lawsuit filed in Cincinnati district court.
According to the settlement, Darling Ingredients Inc. underpaid rebates to the Army and Air Force Exchange Service (AAFES) for more than a decade. Darling denied any wrongdoing.
Darling is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients. Darling collects, and rebates its customers for, used cooking oil from its customers’ restaurants, food establishments and grocery stores, including food service establishments on United States Air Force and Army bases owned or operated by AAFES.
Darling (and its wholly owned subsidiary Griffin Industries, Inc.) had contracts with AAFES to collect used cooking oil from food establishments on military bases and provide AAFES with a rebate for the used cooking oil received from AAFES.
The complaint was filed on behalf of the United States, under the qui tam provisions of the False Claims Act, by a former employee of Darling. The complaint alleged that from at least 2008 until November 2019, Darling submitted inaccurate reports to AAFES in order to underpay per the terms they promised in their contract.
The complaint included conduct alleged at numerous government installations, facilities and military bases across the country, including Wright-Patterson Air Force Base and the VA Hospital in Cincinnati.
Darling has agreed to pay the United States $1.375 million, including $687,500 in restitution to AAFES.
“Parties that contract with the government are held to the letter of the contract,” U.S. Attorney David M. DeVillers said. “U.S. Supreme Court Justice Oliver Wendell Holmes, Jr. wrote in 1920 that ‘Men must turn square corners when they deal with the Government.’ That still rings true 100 years later. If you cut corners on your contractual obligations, you will pay.”
“The settlement announced today is the result of a joint effort by the U.S. Attorney’s Office, Southern District of Ohio, the Defense Criminal Investigative Service (DCIS), Air Force OSI and Army CID,” stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “DCIS is committed to protecting the integrity of the defense procurement system by working with its law enforcement partners to identify and investigate companies that fail to meet their contractual obligations with the U.S. Department of Defense.”
“The collaboration between the Department of the Air Force, Office of Special Investigations, its investigative partners, and the U.S. Attorney's Office, Southern District of Ohio, to combat fraud and safeguard the integrity of the Department of Defense's acquisition process, was significant in this outcome,” said Special Agent-in-Charge Blair Holmstrand, Office of Investigations, Procurement Fraud Detachment 3, San Antonio. “As the executive investigative agency for AAFES, the Office of Special Investigations is dedicated to the identification and neutralization of fraud affecting AAFES and the impact such fraud has on AAFES's funding of quality-of-life improvement programs for the military service members and their families.”
Assistant United States Attorney Andrew M. Malek is representing the United States in this case.
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Coal Company, Owner, Foreman All Plead Guilty to Conspiracy to Defraud the United States by Cheating MSHA’s Dust Sampling RegulationsRead the Press Release
ABINGDON, Va. – A Grundy, Va., coal company, its owner, and one of its foremen pleaded guilty today in U.S. District Court in Abingdon to conspiring to defraud the United States by cheating on underground coal mine dust sampling procedures under the Federal Mine Safety and Health Act. United States Attorney Thomas T. Cullen and Assistant Secretary of Labor for the Mine Safety and Health Administration (MSHA) David G. Zatezalo announced the guilty plea today.
“Coal mining, by its nature, is a hazardous occupation, and federal health and safety laws play a critical role in reducing the dangers miners face on a daily basis,” U.S. Attorney Cullen said today. “We will continue to work closely with MSHA to ensure that mine owners and operators play by these important rules, and, when they don’t, hold them accountable under federal law.”
“These prosecutions are a milestone in MSHA’s vigorous enforcement of the 2014 Respirable Coal Dust Rule. When mining companies ignore the dust sampling rules and try to cheat the system, they place miners at risk. Without accurate samples, we don’t know the levels of respirable coal dust in which miners are forced to work. But we do know that reducing respirable coal dust is central in our efforts to reduce pneumoconiosis and silicosis for the nation’s coal miners. MSHA applauds the Department of Justice for its hard work in showing that violating the law has consequences,” Zatezalo said.
D&H Mining, Inc. pleaded guilty to one felony count of conspiracy to defraud the United States for the dust sampling fraud. D&H Mining also pleaded guilty to a misdemeanor violation of the Mine Act for willfully allowing miners to conduct roof-bolting in return air in violation of the mine’s MSHA-approved ventilation plan.
Daniel Tucker, the owner of D&H Mining and Gerald Ball, a foreman, also pleaded guilty to one felony count of conspiracy to commit dust sampling fraud.
According to court documents, Tucker and Ball conspired to defraud MSHA by taking personal dust monitors off miners before the end of the shift and hanging them in clean air, programming the monitors to shut off before the end of a shift, and submitting false reports to MSHA.
Pursuant to the terms of his plea agreement, Tucker will pay $80,000 as a criminal fine within 60 days of his plea. The district court will sentence D&H Mining, Tucker, and Ball on August 11, 2020.
From May 2017 to August 2019, Tucker repeatedly programmed personal dust monitors that miners must wear the entire time they are underground while conducting required dust sampling to automatically shut off after 9 hours despite running shifts of 10 hours. Ball removed personal dust monitors from miners working underground in dusty conditions and hung them in areas of the mine with clean air in an attempt to prevent the devices from registering elevated levels of respirable dust in the working areas of the mine. MSHA’s dust sampling regulations are designed to reduce the level of respirable coal dust in mines to reduce the risk of miners developing pneumoconiosis (“black lung”) and silicosis, the most common coalmine dust-caused diseases. D&H Mining further allowed miners to conduct roof-bolting operations in return dirty air despite its ventilation plan.
The investigation of the case was conducted by the Norton Office of the Mine Safety and Health Administration. Special Assistant United States Attorney Jason Grover from the Department of Labor and Assistant United States Attorneys Lena Busscher and Randy Ramseyer prosecuted the case for the United States.
Businessman Sentenced for Fraud that Targeted Elderly HomeownersRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced today to 11 years in prison for conducting a home modification loan fraud scheme that primarily targeted elderly homeowners in the Tidewater area.
In January, Gregory J. Ziglar, 61, was convicted of 16 charges following a two-week trial. According to court documents, from 2014 to 2017, orchestrated an extensive home improvement loan fraud in the Tidewater area that victimized banks and individual victims, many of whom were elderly. Ziglar developed a scheme to place individual homeowners into federally insured loans to do improvements on their homes, but instead, diverted funds to his own use. Ziglar conducted this scheme in the guise of a legitimate business using various company names and a fake name for himself in dealing with clients, banks and contractors. He exploited a federal program designed to assist homeowners and tradesmen and advertised to homeowners that such funds could be used for any purpose. In order to obtain these loans, Ziglar submitted false estimates or purported agreements from contractors to justify these improvements. The homeowners received the loans and paid Ziglar an unlawful service fee for moving their loan application through the bank. They also paid him for the home improvements he promised to get done, but many times little or no work was done leaving the individual homeowners with a loan debt and no improvements, while leaving Ziglar with thousands in loan proceeds.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Shawn Rice, Acting Special Agent in Charge of the Office of Inspector General, Department of Housing and Urban Development, Mid-Atlantic Region, made the announcement after sentencing by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Brian J. Samuels prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-30.
Box Elder woman sentenced for stabbing manRead the Press Release
GREAT FALLS – A Box Elder woman who admitted stabbing a man in the upper chest with a butterfly knife on the Rocky Boy’s Indian Reservation last year was sentenced today to 18 months in prison and two years of supervised release, U.S. Attorney Kurt Alme said.
Katie Lynn Big Bow, 44, pleaded guilty in January to assault of a dating partner resulting in substantial bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that the assault occurred on May 2, 2019 when Big Bow stabbed the victim with a butterfly knife in the left hand and upper chest at his house in Box Elder. The victim drove himself to the clinic on the reservation. Big Bow and the victim were in a long-term relationship.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the FBI and Rocky Boy’s Chippewa Cree Law Enforcement.
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Attorney General William P. Barr's Statement on Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
Attorney General William P. Barr issued the following statement:
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
Attorney General William P. Barr and U.S. Attorney Trent Shores Recognize Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
President Donald J. Trump today proclaimed May 5, 2020, as Missing and Murdered American Indians and Alaska Natives Awareness Day. The proclamation reaffirmed the nation’s commitment to reverse the trend of violence affecting American Indians and Alaska Natives and to remember those missing or lost. Attorney General William P. Barr and U.S. Attorney Trent Shores shared their commitment to providing justice to these victims and their families.
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence," said Attorney General William P. Barr. "Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
“Today, I hope to give attention to the voices of American Indian and Alaska Native women and girls who have been the victims of violent crime. We should listen to their experiences. We should heed the concerns of their families and friends in Indian Country. We should be inspired to take action and confront this tragic victimization. During this Missing and Murdered American Indians and Alaska Natives Awareness Day, United States Attorneys reaffirm our commitment to stop the cycle of violence against the first Americans, and we honor all those impacted by these terrible crimes,” said U.S. Attorney Trent Shores.
In November 2019, critical initiatives were launched, in collaboration with Native American and Alaska Native communities, to develop robust protocols and programs to better protect and find justice for indigenous women and girls. In November, President Donald Trump signed an executive order establishing the Task Force on Missing and Murdered American Indians and Alaska Natives. U.S. Attorney Trent Shores was appointed to the task force. The task force is working to develop protocols, procedures, and best practices to address new and unsolved missing and murdered cases. It is co-chaired by the Attorney General and the Secretary of the Interior. Also launched in November was the Justice Department's Missing and Murdered Indigenous Person's Initiative, which places MMIP coordinators in U.S. Attorneys’ offices in 11 states, including Oklahoma. The plan also calls for the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts. You can learn more about the Operation Lady Justice here and about the Justice Department’s MMIP initiative here.
Originally, the U.S. Senate designated May 5th as National Day of Awareness for Missing and Murdered Native Women and Girls in 2017. The observance shined a light on the high rates of homicides of American Indian and Alaska Native women, as well as other forms of violence, including sex trafficking, domestic violence, and sexual assault, affecting Native communities throughout the United States. The Senate resolution was drafted in memory of Hanna Harris (Northern Cheyenne), whose birthday was May 5. Harris was found murdered in Montana in 2013.
Attorney General William P. Barr and U.S. Attorney Bart M. Davis Recognize Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
BOISE – Today, President Donald J. Trump proclaimed May 5, 2020, as Missing and Murdered American Indians and Alaska Natives Awareness Day. The proclamation reaffirmed the nation’s commitment to reverse the trend of violence affecting American Indians and Alaska Natives and to remember those missing or lost. Attorney General William P. Barr and U.S. Attorney Bart M. Davis shared their commitment to providing justice to these victims and their families.
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls,” said Attorney General William P. Barr. “Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
“Idaho’s Legislature designated today as a ‘Day of Awareness for Missing and Murdered Indigenous People,’” said U.S. Attorney Davis. “President Trump, Attorney General Barr and I recognize the tremendous suffering by the families and friends of murdered and missing Indian people. This loss is a great tragedy. Today, with Idaho, our office resolves, as our Legislature wrote to ‘honor the lives of all missing and murdered indigenous people’ by working with our federal, tribal, state and local law enforcement partners to make a more significant difference.”
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Alleged International Narcotics Trafficker Extradited from Dominican RepublicRead the Press Release
Melvin Martinez was arraigned earlier today at the federal courthouse in Brooklyn on an international cocaine distribution conspiracy charge. Martinez was arrested in the Dominican Republic in January 2020 and extradited to the United States yesterday. He was arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon and remanded pending trial.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the extradition.
“As alleged, the defendant operated the levers of a cocaine pipeline from abroad, but not beyond the reach of U.S. law enforcement committed to bringing international drug traffickers to justice for the harm they have caused in our communities,” stated United States Attorney Donoghue. Mr. Donoghue thanked the Office of International Affairs of the Justice Department’s Criminal Division for its assistance with the extradition of the defendant.
“When Martinez was arrested in the Dominican Republic in January 2020, HSI and its law enforcement partners dealt a blow to his cocaine trafficking enterprise. His extradition is a major step forward after the detrimental impact Martinez’ organization had on the people of the United States and the greater New York City region,” stated HSI Special Agent-in-Charge Fitzhugh. “Through this multi-year, complex investigation, HSI New York and our partners at the United States Attorney’s Office, Eastern District of New York, have proceeded in bringing the full force of the American Justice system to combat Martinez and his organization.”
According to court filings, between January 2015 and April 2015, Martinez and members of an international cocaine trafficking conspiracy organized shipments of cocaine in Venezuela, Mexico, Jamaica and the Dominican Republic for importation into the United States for distribution. In one instance, Martinez coordinated a 188 kilogram shipment of cocaine on a commercial airline flight from Venezuela to the Dominican Republic that was intended to be unlawfully distributed in the United States. In February 2015, law enforcement authorities in the Dominican Republic seized the cocaine at the airport in Santo Domingo.
The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Martinez faces a mandatory minimum sentence of 10 years’ imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Philip Pilmar and Nomi D. Berenson are in charge of the prosecution.
The Defendant:
MELVIN MARTINEZ (also known as “La Fuerza” and “Yo Mismo”)
Age: 38
Santo Domingo, Dominican RepublicE.D.N.Y. Docket No. 16-CR-48 (AMD)
17 Defendants Arrested as Long Standing Drug Trafficking Ring Is Dismantled: Multiple Kilograms of Deadly Fentanyl, Other Drugs, Illegal Guns, and Nearly 1-Million Cash SeizedRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy Jr. announced today that 17 defendants were arrested and charged in two criminal complaints for their roles in a large and long standing illegal narcotics ring operating in Western New York. Charged with conspiring to possess with intent to distribute, and distributing, 400 grams or more of fentanyl, one kilogram or more of heroin, and five kilograms or more of cocaine are:
Jancarlos Gonzalez-Rivera, A/K/A/ "Los;"
Jonathan Cruz-Vega, A/K/A/ "Tego;"
Earnest Baker, A/K/A/ "Slay;"
Amante Santiago, A/K/A/ "Cholo;"
Shaumyk Santiago;
Natasha Figueroa;
Enrique Medina, A/K/A/ "Ricky Rose;"
Alexis Morales, A/K/A/ "A;"
Eliezer Morales;
Joshua Bauer, A/K/A/ "White Boy;"
Marilin Deleon, A/K/A/ "Beba;"
Vanesly Lopez;
Lateef Budd, A/K/A/ "Lt;"
Marcus Johnson;
Philip Flowers;
Merilin Deleon; and
Archie Donaldson.Assistant U.S. Attorney Everardo Rodriguez, who is handling the case, stated that according to the filed complaints, in 2016, the Drug Enforcement Administration, Rochester Police Department, New York State Police, Greece Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives began investigating the illegal narcotics trafficking activities of ring leader JanCarlos Gonzalez-Rivera, who is responsible for the distribution of cocaine, heroin, and fentanyl in the Rochester area. The defendant used numerous workers to transport, store, repackage for distribution, and distribute cocaine and fentanyl to customers and then collect payment for the drug transactions.
On April 30, 2020, investigators executed search warrants at 24 residences in Rochester, West Henrietta, Penfield, Greece, Irondequoit, and Syracuse, and on 12 cars associated with the defendants. During the execution of those search warrants, they seized eight firearms; approximately 3.5 kilograms of fentanyl; and approximately two kilograms of cocaine and crack cocaine. In addition, investigators seized $928,400 in cash.
“I want to commend and thank the literally hundreds of law enforcement officers who in the midst of a pandemic risked their own well-being to protect the public by masterfully executing this massive takedown,” stated U.S. Attorney Kennedy. “Their efforts neutralized an armed and very profitable drug trafficking organization that was peddling poison and misery throughout our community. While much of our community is on pause, our brave men and women in law enforcement have remained very active working tirelessly to protect us from all forms of danger.”
“Time after time, law enforcement’s perseverance to their mission prevails,” said DEA Special Agent-in-Charge Ray Donovan. “This operation decimated a major drug trafficking network whose tentacles reached every neighborhood in the city. I would like to thank our law enforcement partners for their collaboration and commitment as this was truly a joint investigation.”
The defendants made initial appearances before U.S. Magistrate Judge Mark W. Pedersen.
The complaints are the result of an investigation by the Drug Enforcement Administration, Rochester Resident Office, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Rochester Police Department, under the direction of Chief La’Ron Singletary; the New York State Police, under the direction of Major Eric Laughton; the Greece Police Department, under the direction of Chief Patrick Phelan; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the U.S. Marshal Service, under the direction of Marshal Charles Salina; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Ontario County Sheriff’s Office, under the direction of Sheriff Kevin Henderson; and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci. Additional assistance was provided by the Drug Enforcement Administration, Buffalo and Syracuse Resident Offices.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.
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Monday 4 May 2020
“SCO” Gang Member Sentenced within a Year of Arrest on Drug ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Braddock, Pennsylvania, has been sentenced in federal court to five years’ (60 months’) imprisonment and four years of supervised release on his conviction of narcotics trafficking, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Rand Wolford, age 32.
According to information presented to the Court, the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock suburb of Pittsburgh. Wolford and other individuals were identified as members or associates of a neighborhood based street gang, self-titled "SCO", which illegally distributed controlled substances in the Greater Pittsburgh region. In January of 2019, investigators obtained authorization to conduct a federal wire investigation, which continued through May of 2019.
Wolford, along with 32 others were indicted in June of 2019 by a federal grand jury in three separate, but related, Indictments.
As to Wolford, the Court was informed that intercepted communications confirmed that Wolford was conspiring with others to possess with intent to distribute and distribute controlled substances. Wolford admitted, in conjunction with his guilty plea, that he is a member of "SCO" and was responsible for distributing multiple ounce quantities of cocaine base, commonly known as crack, into the community. The Court was further informed that in conjunction with intercepted communications, law enforcement obtained additional information, including physical and electronic surveillance, which confirmed that Wolford met with other members of the conspiracy at a location in Braddock where they processed cocaine into cocaine base.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the multi-agency team, which was led by the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Wolford. Partners in this investigation included the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny
County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Attorney General’s Office Bureau of Narcotics, and the Pittsburgh Bureau of Police. Other assisting agencies included the Monroeville Police Department, Penn Hills Police Department, Wilkinsburg Police Department, and Allegheny County Adult Probation.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
United States Attorney’s Office Announces 17th Annual Project Safe Neighborhoods Logo Contest WinnersRead the Press Release
COLUMBIA, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today the winners of the United States Attorney’s Office’s 17th Annual Project Safe Neighborhoods (PSN) Logo Contest.
The theme of this year’s contest was “Preventing Gun Violence in Our Schools.” Judges sought logos that demonstrated a successful collaboration between schools, communities, and law enforcement to reflect (1) warning signs that students should be looking for related to gun violence; (2) resources to help students who have concerns about gun violence; and (3) general messages to prevent gun violence in South Carolina schools.
“Student voices are critical in the discussion about reducing gun violence and ensuring school safety,” said U.S. Attorney McCoy. “I want to thank all the students and schools who participated in this year’s logo contest, and I congratulate our winners.”
The overall winning logo will be used in publications distributed statewide and displayed on the United States Attorney’s Office website. The winner from each grade division and overall winner are named below:
Winner K-2nd grade Division/OVERALL WINNER
Jackson Cornell, Ocean Drive Elementary School
North Myrtle Beach, SC
Winner 3rd-5th grade Division
Edward “EJ” Prince, Ocean Drive Elementary School
North Myrtle Beach, SC
Winner 6th-8th grade Division
Abigail Shoemake, Lugoff-Elgin Middle School
Lugoff, SC
Winner 9th-12th grade Division
Abigail Chapman, Digital Art and Design-Golden Strip Career Center
Greenville, SC
The winners were chosen from entries submitted by applicants across the entire state. Each division winner will receive a $50.00 award, and the overall winner, Jackson Cornell, will receive an additional $50.00 award. All students who participated will receive a Certificate of Appreciation for their submissions.
This statewide contest fosters an opportunity for South Carolina students to express their thoughts on preventing gun violence in our schools and focuses on deterrence of juvenile gun violence and securing our school environments. The contest was open to all South Carolina grade school students.
The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department. The South Carolina Law Enforcement Officers’ Association Foundation will provide the cash awards to the winners.
The annual logo contest is a long-running part of the district’s PSN program. PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives. The annual logo contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children. For more information on the contest and to view this year’s winning logos and winning logos from previous years, please visit http://www.justice.gov/usao/sc/programs/logowinners.html.
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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.
United States Attorney Cautions Against Predatory Practices Related to COVID-19 and HousingRead the Press Release
U.S Attorney Joe Kelly announces a concerted effort to investigate and prosecute those who engage in predatory behavior in regard to housing-related sexual harassment. Such behavior is illegal under the Fair Housing Act.
As this country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages reduced. These losses have forced many to seek delays or suspensions of their rent, with reports that nearly one-third of Americans were unable to pay their April rent at the beginning of the month.
The majority of landlords have responded to these circumstances with understanding and care, trying to work with their tenants to survive the current crisis. However, there have been reports of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is reprehensible. Unfortunately, many victims who experience this type of abuse never report it. They fear retaliation will endanger their ability to provide shelter for themselves and their families.
Joe Kelly stated, “These predatory practices related to COVID-19 are particularly disturbing as these landlords exploit this national crisis by sexually harassing people in need of housing. We will not hesitate to intervene when this occurs. This is not tolerated in normal times, and certainly will not be tolerated now.”
We encourage anyone who has experienced sexual harassment in housing to contact the DOJ Sexual Harassment in Housing Hotline at (844) 380-6178, or by email to [email protected], Complaints can be mailed directly to the U.S. Attorney’s Office, 1620 Dodge Street Suite 1400, Omaha, NE 68102, Attn Laurie Kelly, Civil Rights Coordinator.
Below are two links to DOJ & HUD produced PSAs for your consideration. These powerful PSAs feature personal victim impact stories and a call to action.
DOJ PSA: Sexual Harassment in Housing Is Illegal
https://www.youtube.com/watch?v=z76bA-mf7o0&tWorking with DOJ to Stop Sexual Harassment in Housing
https://www.youtube.com/watch?v=vhskfe_7DHcFifty-two years after the passage of the Fair Housing Act, we have come a long way. But we still have work to do. Securing fair housing as part of the American way of life can be achieved when victims know it is safe to come forward, and perpetrators know we will aggressively address their despicable behavior.
U.S. Repatriates over $311.7 Million in Assets to the Nigerian People that were Stolen by Former Nigerian Dictator and His AssociatesRead the Press Release
The Department of Justice announced today that it has transferred $311,797,876.11 to the government of the Federal Republic of Nigeria (Nigeria) in accordance with a Feb. 3, 2020, trilateral agreement among the governments of the United States, Nigeria and the Bailiwick of Jersey (Jersey) to repatriate assets the United States forfeited that were traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against the funds located in that jurisdiction.
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed in February, the United States and Jersey agreed to transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects previously authorized by the Nigerian government. Specifically, under this agreement, the recovered funds will help finance the construction of critical infrastructure in key economic zones to include the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road. These investments will benefit all of the Nigerian people.
The agreement includes key measures to ensure transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability in the return and disposition of recovered assets adopted at the Global Forum on Asset Recovery (GFAR) in December 2017 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and the United Nations Office on Drugs and Crime.
In addition to the more than $311.7 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States continues to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Abubakar Atiku Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries.
The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of the people of countries harmed by corruption and the important safeguards embodied in the agreement. The transfer announced today demonstrates the U.S. commitment to asset recovery and responsible repatriation, consistent with its obligations under the trilateral agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The Criminal Division’s Office of International Affairs provided significant assistance. The department appreciates the extensive assistance provided by the governments of Jersey, Nigeria and the UK in this investigation.
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.
U.S. Attorney: Report Sexual Harassment in Housing During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Maryland U.S. Attorney Robert K. Hur is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice. The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“It is reprehensible that some try to take advantage of this global pandemic at the expense of the most vulnerable,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our law enforcement partners are committed to working together to identify incidents of sexual harassment in housing and bring these criminals to justice. I urge everyone to remain vigilant and if you see something that doesn’t seem right, please report it.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
Anyone who has experienced sexual harassment in housing, or knows someone who has, is encouraged to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]; the U.S. Attorney’s Office for the District of Maryland, at 410-209-4800; or by filing a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
U.S. Attorney Robert Hur, Special Agent in Charge John Eisert of Homeland Security Investigations – Baltimore, Special Agent in Charge Kelly R. Jackson of the IRS – Criminal Investigation, and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, also want to remind the public that in addition to sexual harassment in housing, COVID-19 scams are also operating from websites that advertise fake vaccines and cures, operate fraudulent charity drives, deliver malware, or host various other types of scams. To attract traffic, these websites often utilize domain names that contain words such as “covid19” or “coronavirus.” In some cases, the fraudulent sites purport to be run by, or affiliated with, public health organizations or agencies.
Federal agencies such as Homeland Security Investigations (HSI), the FBI, and the IRS will NOT call you, text you, e-mail you, or contact you on social media asking for personal or bank account information—even related to the economic impact payments. Recently, there has been an increase in phishing schemes utilizing e-mails, letters, texts and links. These contacts will often come in the form of unsolicited e-mail and/or websites that pose as legitimate sites in an effort to lure unsuspecting victims to provide personal and financial information. When visiting a website or when you receive an e-mail containing a link, pay special attention to any web address you are directed to in order ensure it is from a legitimate source. Watch out for e-mails with attachments or links claiming to have special information about economic impact payments or refunds.
Federal law enforcement is united in its efforts to fight against COVID-19 fraud. HSI has identified tips to recognize COVID-19 fraud. If you think you are a victim of a fraud or attempted fraud involving COVID-19, you may call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail at [email protected] or [email protected]. If it is a cyber scam, you may submit your complaint through the FBI’s website, https://www.ic3.gov. Or you can report suspicious e-mails to the IRS at [email protected].
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U.S. Attorney asks public to report predatory housing practices amid COVID-19 pandemicRead the Press Release
U.S. Attorney Justin Herdman sent a letter to Northern Ohio housing advocacy groups asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
“As a result of the COVID-19 public health crisis, many in our communities have found themselves out of work, furloughed, or otherwise in dire financial straits,” said U.S. Attorney Herdman in his letter. “This has led many to seek abatements or suspensions of their rent or to seek other accommodations during this time. While many landlords and housing providers have positively responded with understanding, others have seen an opportunity to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. Please know that the U.S. Attorney’s Office remains ready to investigate complaints of sexual harassment in housing and to deploy all available enforcement tools against anyone who engages in this behavior.”
According to a recent memo from Attorney General William Barr, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Attorney General has directed U.S. Attorney’s Offices across the country to investigate reports of housing-related sexual harassment resulting from the current COVID-19 pandemic. The Attorney’s General’s directive reaffirms the commitment that the Department of Justice made when it launched the Sexual Harassment Initiative in October 2017.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
The U.S. Attorney’s Office for the Northern District of Ohio will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Northern District of Ohio at 216-622-3932 or in Toledo at 1-833-938-1375. You may also contact us via email at [email protected].
U.S. Attorney’s Office for the Northern District of Ohio at 216-622-3932 or via email at [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
Read a copy of the U.S. Attorney’s letter here.
U.S. Attorney Issues Warning to Landlords: Don’t Demand Sexual Favors from Financially-Strapped Tenants during Pandemic - or EverRead the Press Release
Assistant U. S. Attorney Christopher Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – May 4, 2020
SAN DIEGO – U.S. Attorney Robert Brewer is warning landlords that it is against the law to demand sexual favors from cash-strapped tenants who can’t pay rent due to Covid-19, and he has deployed all available enforcement tools against anyone who tries to use the pandemic to sexually harass people in need of housing.
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. There have been reports, however, of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Taking advantage of tenants in this way is not only despicable - it is illegal,” Brewer said. “Such behavior is not tolerated in normal times, and certainly will not be tolerated now. Criminal conduct, such as the exchange of sexual favors for housing benefits, will result in an indictment.”
We're using all enforcement tools against anyone who tries to exploit this current crisis by sexually harassing people in need of housing. If you are a victim of #SexualHarassment by a landlord or person who has control over housing call: 1-844-380-617We're using all enforcement tools against anyone who tries to exploit this current crisis by sexually harassing people in need of housing. If you are a victim of #SexualHarassment by a landlord or person who has control over housing call: 1-844-380-617
U.S. Attorney Brewer appointed Assistant U.S. Attorney Christopher Tenorio as COVID-19 Civil Rights Coordinator to lead investigations into possible hate crimes and civil rights violations related to the nation's ongoing public health emergency. Tenorio is also Chairperson of the San Diego Regional Hate Crimes Coalition.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
Two Cheraw Men Sentenced in Virtual Proceedings to Federal Prison for Drug ChargesRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Gregory Jay Evans, Jr., 28, and Talvin Jerode Robinson, 41, both of Cheraw, were sentenced via videoconference to 10 years and approximately five years, respectively, in federal prison after pleading guilty to conspiracy to distribute methamphetamine.
Evidence presented to the court showed that for the past five years, Evans and Robinson were involved in a conspiracy to distribute methamphetamine in Chesterfield and Darlington Counties. On January 30, 2019, while responding to a fight in progress, deputies with the Chesterfield County Sheriff’s Office stopped a car driven by Evans based on information that moments earlier someone had pointed a gun out of the window of a similar car. During a search of the car, deputies seized over 11 grams of methamphetamine and a Glock .45 caliber pistol, both of which Evans later admitted belonged to him. Also, on two occasions in March 2019, Robinson sold methamphetamine to a confidential informant working for law enforcement. Both of these controlled purchases took place in Cheraw. There were also a significant number of cooperating witnesses who were prepared to testify that, during the course of the conspiracy, Evans and Robinson sold them methamphetamine.
Chief United States District Judge R. Bryan Harwell sentenced Evans to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. Chief Judge Harwell sentenced Robinson to 68 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Chesterfield County Sheriff’s Office, and the Hartsville Police Department.
In light of the current pandemic, both defendants appeared via videoconference, while the attorneys and court staff were present in the courtroom. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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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.
Threatening Telephone Calls Send Colorado Man to Federal Prison for Six YearsRead the Press Release
A man who repeatedly threatened a Cedar Rapids bank, its employees, and other individuals from northern Iowa by telephone and text messages was sentenced today to six years in federal prison.
Carl William Stuber, IV, age 31, from Aurora, Colorado, received the prison term after a November 12, 2019 guilty plea to two counts of transmitting a threatening communication in interstate commerce.
Information from a plea agreement and at sentencing showed that Stuber called a bank in Cedar Rapids more than forty times over a two-day period in October 2018. During these calls, Stuber threatened to “Columbine” the bank, kill employees, and make false reports to police and fire departments. Stuber taunted the bank, noting the bank was powerless to stop him as restraining orders would not work and law enforcement would not extradite him to Iowa. Finally, Stuber falsely reported a fire at the bank, causing the Cedar Rapids Fire Department to respond to the bank. Stuber continued to make threatening calls to the bank and threatened others by phone, text, and Facebook message over an eight-month period until his arrest in Colorado in June 2019 on federal charges.
Stuber was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. In sentencing Stuber to 72 months’ imprisonment and a fine of $7,500, Judge Williams noted that Stuber’s threatening communications caused mental and psychological harm to the bank employees. Stuber must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation Joint Terrorism Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-81.
Follow us on Twitter @USAO_NDIA.
Texas Woman Agrees to Plead Guilty to Defrauding Bank of America by Posing as Customers to Make Withdrawals at SoCal BranchesRead the Press Release
SANTA ANA, California – A Houston woman has agreed to plead guilty to federal charges stemming from a scheme in which she and a second defendant posed as customers of Bank of America to fraudulently obtain debit cards while wearing braces on their arms to explain why their signatures differed from those of the legitimate account holders.
In a plea agreement filed Saturday in United States District Court, Rhonda Denise Zorka, 54, agreed to plead guilty to one count of bank fraud and one count of aggravated identity theft.
The second defendant in this case – Leia Kay Barnett, 41, of Belville, Texas – pleaded guilty on January 31 to one count of bank fraud and one count of aggravated identity theft.
In her plea agreement, Zorka admitted that she and Barnett obtained stolen identities of Bank of America accountholders living in Florida. Zorka admitted that she and Barnett then separately went to Bank of America branches in Southern California and Illinois, where they presented fraudulent identification to obtain temporary debit cards and PINs, and withdrew funds from victims’ accounts.
“[Zorka] and Barnett wore braces over their right wrists and forearms in order to explain any differences between their signatures at the time of the withdrawal and the actual accountholder’s signature on file with [Bank of America],” according to the plea agreement.
Zorka specifically admitted to making a fraudulent withdrawal of approximately $6,500 at a Bank of America branch in Burbank.
She also admitted that the scheme caused Bank of America to suffer losses of $121,949 through more than 50 withdrawals on more than 30 accounts at over 20 branches in California and Illinois.
When Barnett pleaded guilty, she specifically admitted making a fraudulent withdrawal of approximately $5,500 from a Bank of America branch in Irvine.
United States District Judge Josephine L. Staton will schedule a hearing – likely in June – for Zorka to formally enter her guilty pleas.
Barnett is scheduled to be sentenced by Judge Staton on August 28.
Zorka and Barnett each will face a statutory maximum sentence of 30 years in federal prison for the bank fraud charge and a mandatory, consecutive two-year sentence for the aggravated identity theft offense.
Barnett has been in federal custody since her arrest in Texas in June 2019. Zorka has been in custody since she was arrested in October 2019 in Illinois.
This case was investigated by the United States Secret Service.
This matter is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
Shots Fired, 110 MPH Chase Lead to Federal ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas man who was arrested after a high-speed chase from Miami County to Linn County is facing a federal charge, U.S. Attorney Stephen McAllister said today.
David W. Kellner, 31, is charged with one count of unlawful possession of a firearm by a felon. A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that about 3:30 a.m. May 1 a Miami County Sheriff Department deputy spotted Kellner driving without headlights or taillights on K68 Highway near the Louisburg Cider Mill. When the deputy activated his lights to make a stop, Kellner fled south on U.S. 69 Highway at speeds up to 110 mph. Kellner fired at the deputy, who could hear the shots and see sparks when the bullets hit the highway.
Deputies from the Linn County Sheriff’s Department joined the pursuit and followed Kellner’s vehicle until it ran into a fence at 403rd Street and Somerset Road. Kellner fled on foot, discarding a Century Arms Model RAS47 military-style rifle before deputies arrested him. They recovered the rifle, more than $5,500 in cash, and small amounts of marijuana and methamphetamine.
Kellner, who had a prior felony conviction in 2008, was prohibited by federal law from possessing a firearm. If convicted, he could face up to 10 years in federal prison and a fine up to $250,000.The Miami County Sheriff’s Department, the Linn County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Pittsburgh Man Sentenced for Role in West End Gang’s Drug TraffickingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to a sentence of time served on his conviction for conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today. The defendant had been detained pretrial on this charge since June of 2018.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Mark Givens, age 30, of Pittsburgh, PA.
According to information presented to the court, in 2017, the Federal Bureau of Investigation and the Drug Enforcement Administration initiated a wiretap investigation, primarily targeting the Greenway Boy Killas or GBK street gang and drug trafficking in and around an area known as the Greenway Projects, located in the West End of the City of Pittsburgh. The wiretap investigation revealed that from in and around November 2017 through in and around June 2018, Mark Givens and his co-conspirators conspired to distribute quantities of heroin.
Prior to imposing sentence, Senior Judge Schwab stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation and the Drug Enforcement Administration along with the Pittsburgh Bureau of Police, Allegheny County Sheriff’s Office, Pennsylvania State Police, Robinson Township Police Department, Stowe Township Police Department, Pennsylvania Attorney General’s Office, Wilkinsburg Borough Police Department, and the McKees Rocks Police Department for the investigation leading to the successful prosecution of Givens.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
New Hampshire U.S. Attorney Asks Public to Report Sexual Harassment in Housing During the Covid-19 PandemicRead the Press Release
Concord - U.S. Attorney Scott W. Murray is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, loan officer or anyone with control over housing to report that conduct to the Department of Justice. The request is part of an enhanced effort by the Department of Justice to combat predatory housing practices during the COVID-19 pandemic.
The COVID-19 pandemic has decreased the ability of many people to pay rent on time and has increased housing insecurity. People who are out of work may be targeted for attempted sexual exploitation by housing providers. The Department of Justice has heard reports of housing providers trying to take advantage of the crisis by demanding sexual favors and other unwelcomed sexual conduct from tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“It is simply outrageous that a tenant would be subjected to sexual harassment while attempting to cope with paying the rent on time,” said U.S. Attorney Murray. “Predatory practices directed at people who are struggling to maintain their homes will not be tolerated. Landlords or others in control of housing should be working with tenants to address housing insecurity in this very difficult time. Those who are striving to assist the financially disadvantaged should be commended. Those who seek to sexually harass and exploit tenants are violating the law and will be held accountable for their conduct.”
The U.S. Attorney’s Office for the District of New Hampshire will work closely with federal, state, and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
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Monmouth County Man Charged with Possession of Machine GunRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man will have his initial appearance today for possessing a machine gun as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Davon Harley, 30, of Neptune City, New Jersey, appeared by video conference this afternoon before U.S. Magistrate Judge Zahid M. Quraishi and was detained without bail. Harley was arrested by local authorities on Feb. 8, 2020, and charged with state offenses. He is now charged by federal criminal complaint with one count of being a convicted felon in possession of a firearm and one count of possession of a machinegun.
According to documents filed in this case and statements made in court:
In February 2020 a Neptune City Police officer confronted Harley, a previously convicted felon, who was arguing with others in the yard of an apartment complex. Harley fled through the apartment complex into neighboring properties and discarded a handgun that, upon inspection, had been altered to fire exclusively in fully automatic mode. The weapon had a magazine capable of holding 31 rounds of ammunition. Members of law enforcement, assisted by the Neptune Township and Asbury Park police departments located Harley and recovered the machine gun and the magazine that Harley had discarded.
The felon in possession of a firearm and possession of a machine gun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to the charges. This case was brought as part of Project Stop the Violence, a comprehensive strategy to combat gun crimes in Monmouth County.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michigan Man Charged with Manufacturing Child Pornography after Allegedly Travelling to Pennsylvania to Sexually Assault a MinorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that Mark Allen Hillis, age 57, of Southgate, Michigan, has been arrested and charged with one count of manufacture of child pornography, attempted manufacture of child pornography, and willfully causing the manufacture of child pornography, stemming from his text communications with a 13 year-old girl on Christmas Day 2019.
As alleged in the Criminal Complaint, Hillis (also known as “Daddy” and “Denverpolice#666”), met the minor through social media and then directed her to produce and send him graphic images of child pornography via text messages. Thereafter, Hillis allegedly traveled to Pennsylvania and sexually assaulted the minor in a hotel room, after convincing her to meet up with him at a pizzeria in the middle of the night. In addition to the federal child pornography charges, Hillis faces state charges related to the alleged sexual assault in Montgomery County.
“As alleged in the Criminal Complaint, the defendant’s conduct is abhorrent: manipulating a child into sending him graphic images and then luring her from home in the middle of the night in order to commit a sexual assault to satisfy his twisted desires,” said U.S. Attorney McSwain. “Protecting children and seeking justice for those who are victims of sexual exploitation is one of my Office’s highest priorities and we will always aggressively investigate and prosecute cases such as this.”
“This arrest demonstrates the great lengths that dangerous child predators will go through to victimize our most vulnerable,” said Brian A. Michael, Special Agent in Charge for HSI Philadelphia. “Homeland Security Investigations and our law enforcement partners will always prioritize bringing dangerous child predators to justice.”
If convicted, Hillis faces a statutory maximum sentence of 30 years’ imprisonment, with a mandatory minimum term of 15 years’ imprisonment, a mandatory minimum term of 5 years’ supervised release, and a fine up to $250,000.
This case is part of Project Safe Childhood, a Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case investigation is being conducted by Homeland Security Investigations, a component of the Department of Homeland Security, and the Limerick Township Police Department, in conjunction with the Montgomery County Detectives Bureau. It is being prosecuted by Assistant United States Attorney Kathryn Deal.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Eric W. Hathcock, of Martinsburg, West Virginia, has admitted to distributing fentanyl and heroin, U.S. Attorney Bill Powell announced.
Hathcock, age 36, pled guilty to one count of “Distribution of Fentanyl and Heroin.” Hathcock admitted to selling heroin and fentanyl in June 2019 in Berkeley County.
Hathcock faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
U.S. Magistrate Judge Robert W. Trumble presided.
Lynchburg Man Sentenced in Virtual Proceedings to 10 Years in Federal Prison for Drug ChargesRead the Press Release
Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Curtis Goodman, 40, of Lynchburg, was sentenced via videoconference to 10 years in federal prison after pleading guilty to conspiracy to distribute cocaine.
Evidence presented to the court showed that for more than a decade, Goodman was a supplier of cocaine to other drug dealers in Florence, Darlington, and Sumter Counties. A number of those dealers who purchased drugs from Goodman were prosecuted and agreed to cooperate with the Government. During the course of the conspiracy, Goodman sold them significant quantities of cocaine totaling more than five kilograms. Additionally, on February 15, 2019, based on information that individuals were smuggling drugs on a particular flight from San Francisco to Atlanta, detectives from the Clayton County Police Department used a drug detection dog to screen luggage from a flight at the Hartsfield-Jackson Atlanta International Airport. The dog alerted on several pieces of luggage, one of which belonged to Goodman. Detectives opened the luggage and found over 43 pounds of marijuana in vacuum-sealed packages.
Chief United States District Judge R. Bryan Harwell sentenced Goodman to 120 months in federal prison, to be followed by a five-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, Drug Enforcement Administration, Florence County Sheriff’s Office, and the Clayton County, Georgia, Police Department.
In light of the current pandemic, the defendant appeared via videoconference, while the attorneys and court staff were present in the courtroom. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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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.
Lexington Foot and Ankle Center Agrees to Pay $750,000 to Resolve Allegations of Violations of the False Claims ActRead the Press Release
LEXINGTON, Ky. – Lexington-based podiatry practice Lexington Foot and Ankle Center, PSC (“Lexington Foot & Ankle”) and Dr. Michael Allen have agreed to resolve civil allegations that they violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims to the federal government, agreeing to pay the United States $750,000.
The agreement resolves a civil lawsuit filed by the United States against Lexington Foot & Ankle and Dr. Allen, on November 28, 2018. In the lawsuit, the United States alleged that Lexington Foot & Ankle, at Dr. Allen’s direction, submitted false claims to Medicare and the Federal Employee Health Benefits Program, seeking payment for nail debridement services, for which podiatrists or other practitioners either did not assess or observe medical necessity or only performed less involved procedures. The lawsuit alleged that the defendants nevertheless submitted reimbursement claims for nail debridements, which are reimbursed at a higher rate. The United States further alleged that Lexington Foot & Ankle and Dr. Allen created cloned (or nearly identical) patient records, in order to secure reimbursement for the false debridement claims.
In addition to the monetary payment, the defendants have also agreed to submit to an integrity agreement with the Office of Inspector of the Department of Health and Human Services (HHS-OIG), which will require additional review of their Medicare claims over a five-year period.
This case was investigated by HHS-OIG and the Office of the Inspector General of the Office of Personnel Management. Assistant United States Attorneys Carrie Pond and Mary Melton represented the United States.
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High Desert Man Who Robbed Eight Southern California Banks During a Six-Week Spree Sentenced to over 7 Years in Federal PrisonRead the Press Release
LOS ANGELES – A San Bernardino County man who threatened to shoot tellers and others when he robbed eight banks in Southern California over a six-week span was sentenced today to 92 months in federal prison.
Gregory Walter Barnes, 40, of Piñon Hills, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered Barnes to pay $41,931 in restitution.
Barnes pleaded guilty on February 10 to one count of bank robbery.
According to his plea agreement, between May 22, 2018 and July 6, 2018, Barnes, wearing a hat and sunglasses as a disguise, robbed one U.S. Bank branch in Victorville and seven Chase Bank branches in Fontana, Reseda, Woodland Hills, Temecula, Glendale, Hesperia, and Ventura.
In all eight of those robberies, Barnes threatened to use a gun against the bank teller, other bank employees, or people in the bank branch’s lobby. For example, Barnes passed a handwritten note to one teller asking for money and saying, “If I even think that you are grabbing any [dye packs or GPS trackers] I’ll pull out [my] Gun,” according to court documents. During another robbery, Barnes told the bank teller, “I have a gun and will not hesitate to pull it out and use it on your fellow employee out here.”
The total loss to the banks was $41,931 – most of which was suffered by Chase.
Barnes’s bank robbery spree in Southern California was followed by a ninth bank robbery in Las Vegas on July 9, 2018, where he was arrested for that crime. For that robbery, Barnes was convicted and sentenced in Nevada state court to three to 10 years’ imprisonment. He was transferred to federal custody in December 2019 after being charged in this case.
This matter was investigated by the FBI in collaboration with the San Bernardino County Sheriff's Department, the Fontana Police Department, the Riverside County Sheriff’s Department, the Los Angeles Police Department, the Glendale Police Department, and the City of Ventura Police Department, and with assistance from the Las Vegas Metropolitan Police Department.
This case was prosecuted by Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office.
Gregory Moody Sentenced to 54 Months for Robbery of Two Banks in March 2019Read the Press Release
The Office of the United States Attorney for the District of Vermont stated that Gregory Moody, 39, of Colchester, Vermont was sentenced today to 54 months in prison for robbing a T.D. Bank in St. Albans, Vermont and a Community Bank, NA in South Burlington, Vermont in March 2019. U.S. District Judge William K. Sessions III also ordered that Moody receive a three-year period of supervised release following the term of imprisonment. The Court ordered Moody to pay restitution of $2500 to T.D. Bank and $830 to Community Bank, NA.
According to court records, on March 22, 2019, Moody entered the T.D. Bank in St. Albans and demanded money from a bank teller. The bank teller gave Moody $2,500 in cash, and he left the bank. Less than one week later, on March 28, 2019, Moody stole an unoccupied minivan and drove to the Community Bank, NA in South Burlington. Moody entered the Community Bank and, again, demanded money from a bank teller. The bank teller gave Moody $830 in cash, and Moody walked out of the bank to the stolen minivan, which was located later in Hinesburg, Vermont.
After coordination between the St. Albans Police Department and the South Burlington Police Department, Moody was identified as the bank robber for both robberies. The Federal Bureau of Investigation joined the investigation and worked in partnership with the St. Albans Police Department and the South Burlington Police Department to the conclusion of the case. The government was represented by Assistant U.S. Attorney Nikolas P. Kerest. Gregory Moody was represented by Steven Barth, Esq., of the Office of the Federal Defender.
Government Official and Contracting Executive Plead Guilty to Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – The former Director of Procurement for the Pension Benefit Guaranty Corporation and the president and chief executive officer of a government contracting firm pleaded guilty today to conspiring to bribe a public official.
Jeffrey B. Donahue, 42, of Herndon, and Nadeem Ansari, 47, of Haymarket, each pleaded guilty to one count of conspiracy to bribe a public official. Sentencing is scheduled for Sept. 11, 2020, for Donahue and Ansari.
According to court documents, Donahue served as a Supervisory Contract Administrator with PBGC and then as Director of the Procurement Department from March 2014 to February 2020. From at least 2015 through August 2017, Donahue solicited and received cash payments and other things of value, including the promise of a job valued at $1 million, from Ansari and Ansari’s company. In exchange, Donahue agreed to steer PBGC contracts to Ansari’s company.
In 2015, Donahue approached Ansari and offered to help Ansari’s new company win a PBGC contract, worth approximately $55 million, in exchange for a future job with the company. Among other things, Donahue provided Ansari with sample bid proposals; helped draft, review, and edit the company’s bid proposal; and disclosed labor pricing estimates. When the company did not win the contract, Donahue helped Ansari draft the company’s bid protest. Ansari admitted that his business partners were aware of his arrangement with Donahue.
In 2016, Donahue proposed a second arrangement with Ansari in which Donahue would receive up to $125,000 from Ansari and his company in exchange for steering a contract to Ansari’s company. PBGC awarded the contract to Ansari’s company, which resulted in payments to the company totaling approximately $3.29 million. Donahue steered the contract by, among other things, providing sensitive, non-public information and work product to Ansari; providing guidance for contract pricing; and adjusting the terms of the contract to align with the qualifications of the company’s personnel. Donahue received at least $48,000 in cash, plus additional gifts. Donahue and Ansari also took steps to conceal the scheme and their communications with each other, including using separate, dedicated cellular telephones and e-mail accounts and communicating through encrypted software.
The Pension Benefit Guaranty Corporation, Office of Inspector General and the FBI investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia are prosecuting the case.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Acting Inspector General Nicholas J. Novak of the Pension Benefit Guaranty Corporation, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Government Official and Contracting Executive Plead Guilty to Bribery ConspiracyRead the Press Release
The former Director of Procurement for the Pension Benefit Guaranty Corporation and the president and chief executive officer of a government contracting firm pleaded guilty today to conspiring to bribe a public official.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Acting Inspector General Nicholas J. Novak of the Pension Benefit Guaranty Corporation, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Jeffrey B. Donahue, 42, of Herndon, Virginia, and Nadeem Ansari, 47, of Haymarket, Virginia, each pleaded guilty to one count of conspiracy to bribe a public official. Sentencing is scheduled for Sept. 11, 2020, for Donahue and Ansari.
According to court documents, Donahue served as a Supervisory Contract Administrator with PBGC and then as Director of the Procurement Department from March 2014 to February 2020. From at least 2015 through August 2017, Donahue solicited and received cash payments and other things of value, including the promise of a job valued at $1 million, from Ansari and Ansari’s company. In exchange, Donahue agreed to steer PBGC contracts to Ansari’s company.
In 2015, Donahue approached Ansari and offered to help Ansari’s new company win a PBGC contract, worth approximately $55 million, in exchange for a future job with the company. Among other things, Donahue provided Ansari with sample bid proposals; helped draft, review, and edit the company’s bid proposal; and disclosed labor pricing estimates. When the company did not win the contract, Donahue helped Ansari draft the company’s bid protest. Ansari admitted that his business partners were aware of his arrangement with Donahue.
In 2016, Donahue proposed a second arrangement with Ansari in which Donahue would receive up to $125,000 from Ansari and his company in exchange for steering a contract to Ansari’s company. PBGC awarded the contract to Ansari’s company, which resulted in payments to the company totaling approximately $3.29 million. Donahue steered the contract by, among other things, providing sensitive, non-public information and work product to Ansari; providing guidance for contract pricing; and adjusting the terms of the contract to align with the qualifications of the company’s personnel. Donahue received at least $48,000 in cash, plus additional gifts. Donahue and Ansari also took steps to conceal the scheme and their communications with each other, including using separate, dedicated cellular telephones and e-mail accounts and communicating through encrypted software.
The Pension Benefit Guaranty Corporation, Office of Inspector General and the FBI investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia are prosecuting the case.
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.
Fultondale Doctor Pleads Guilty to Prescribing Controlled Substances and Health Care Fraud; Demopolis Pharmacist Pleads Guilty to Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A Fultondale doctor today pleaded guilty to prescribing controlled substances without a legitimate medical purpose and engaging in health care fraud announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, and FBI Special Agent in Charge Johnnie Sharp, Jr.
PAUL ROBERTS, M.D., 48, of Fultondale, Ala, a physician and former co-owner of Southeast Urgent Care (“SEUC”) in Fultondale, pled guilty before U.S. District Court Judge Annemarie Axon to 16 counts stemming from a June 2019 Second Superseding Indictment. According to the plea agreement, Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama and other State medical licenses. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
“We have recently heard many stories about the sacrifices made by physicians and pharmacists to care for patients during this difficult time. Unfortunately, there are also those who have chosen to sacrifice patient care for pure greed,” First Assistant United States Attorney Lloyd Peeples said. “Those who engage in such unlawful practices unnecessarily drive up healthcare costs and destroy lives in our communities.”
“The only cure for the pain caused by pill mill doctors, like Roberts, is public awareness, victims who come forward, and a determined fleet of FBI agents coupled with our great partners who will arrest and prosecute these unscrupulous practitioners when they choose to sell their ethics, betray their oath, and break the law,” Sharp said.
“This guilty plea is yet another example of DEA’s efforts to rid Alabama of doctors who place greed and personal wealth over the well-being of Alabamians,” Morris said. “The DEA, FBI and the United States Attorney’s Office stand steadfast in our fight against the opioid epidemic in Alabama. We will continue to investigate, arrest and prosecute drug dealers who prey on those struggling with addiction and hide behind their veil of a professional practice.”
Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose. According to the plea agreement, on days Roberts was out of the office, he allowed unqualified staff, including an x-ray technician, to prescribe controlled substances to patients using prescriptions that Roberts pre-signed. The plea agreement also states that Roberts illegally prescribed controlled substances, including oxycodone, to two women. He issued them to one in exchange for sexual favors and to the other even though he knew that she was abusing controlled substances.
Roberts also pleaded guilty to two health care fraud conspiracies and two counts of participating in a health care fraud scheme. The first focused on fraudulently billing for office visits. According to the plea agreement, on dates he was absent from the office, Roberts caused unqualified staff to see patients, and then caused SEUC to bill Blue Cross Blue Shield of Alabama as though Roberts had provided those services.
The second conspiracy and scheme focused on fraudulently billing health insurance plans through their third-party administrators for compounded drugs. According to the plea agreement, beginning in 2012, Roberts entered into an unlawful agreement with his co-defendants, Stanley Reeves, a pharmacist and owner of F&F Drugs, a Demopolis-based pharmacy, and Brett Taft, a Tuscaloosa-based sales representative, to fraudulently bill these health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue these medically unnecessary drugs, Taft paid Roberts kickbacks. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled and billed the prescriptions to insurance plans. Reeves would then pay Taft a portion of the billing proceeds, with Taft using some of those proceeds to pay Roberts kickbacks. In addition, to induce patients to accept these medically unnecessary drugs, Roberts and his co-defendants agreed that F&F Drugs would waive patient co-pays, and did so in violation of the health insurance plan rules. And, to maximize profit from each prescription, Roberts and his co-defendants also agreed that F&F Drugs would automatically refill the compounded drugs that Roberts referred regardless of whether patients needed those drugs. Between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $2.2 million for medically unnecessary compounded drugs issued by Roberts.
Town, Morris and Sharp also announced that last week, one of Roberts’s co-defendants, STANLEY REEVES, 62, of Demopolis, Ala, pharmacist and owner of F&F Drugs in Demopolis, pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud conspiracy and scheme. Reeves did so via a simultaneously filed information. According to the plea agreement, between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $10.5 million for medically unnecessary compounded drugs issued by various doctors, including Roberts. Under the terms of the plea agreement, Reeves stipulated to a 38-month sentence and agreed to surrender his pharmacist license to the Alabama Board of Pharmacy. He also agreed to pay a fine of $100,000, restitution of $10.5 million, and forfeiture of $900,000 with $300,000 due on the date he is sentenced.
The maximum punishment for the dispensing controlled substances charges is 20 years in prison and a $1,000,000 fine. The maximum penalty for the health care fraud and conspiracy charges is 10 years in prison and a $250,000 fine.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Austin Shutt, Kristen Osborne, and Lloyd C. Peeples are prosecuting.
Former U.S. Postal Service Employee Admits Filing False Documents to Receive over $650,000 in Workers’ CompensationRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted defrauding the U.S. Department of Labor, Office of Workers Compensation, U.S. Attorney Craig Carpenito announced.
Janeide Chillis, 53, of Irvington, New Jersey, pleaded guilty by teleconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of making false statements and committing fraud to obtain federal workers’ compensation.
According to documents filed in this case and statements made in court:
Chillis was a U.S. Postal Service employee. In March 2006, she signed and filed under penalty of perjury a form with the U.S. Department of Labor claiming she suffered disabling injuries from a slip-and-fall accident at work. Chillis also provided a letter from a New Jersey doctor who claimed that Chillis was “temporarily totally disabled.” As a result of those representations, Chillis began receiving workers’ compensation benefits from the U.S. Department of Labor. For the next several years, in order to maintain such benefits, Chillis periodically submitted additional forms certifying that she was unemployed and would report any income or other information that affected her receipt of benefits. Notwithstanding those representations, from 2011 through the present, Chillis earned extra income and travelled extensively, including to Africa and France, all of which she did not report to the U.S. Department of Labor.
During the same time period, Chillis also received reimbursement payments for home health aide services. Beginning in 2013, she stopped receiving home health aide services, but continued receiving reimbursement based on false representations she made to the U.S. Department of Labor.
In total, Chillis received $686,588 in federal benefits from her fraud.
The count of making false statements and committing fraud to obtain federal workers’ compensation benefits is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for Sept. 10, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent-in-Charge John Grasso; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
Federal Prosecutors Target COVID-19 Related Housing Predatory PracticesRead the Press Release
The Department of Justice and federal prosecutors remain vigilant in investigating and prosecuting landlords and property managers who sexually harass tenants during the COVID-19 pandemic, warned U.S. Attorney Erin Nealy Cox.
As a result of the COVID-19 pandemic, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced tenants to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords have responded to these circumstances with compassion, working together with their tenants to weather the current crisis. However, other landlords have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Tenants should never have to choose between housing and sexual harassment,” stated U.S. Attorney Erin Nealy Cox. “Sexual harassment by those who prey on vulnerable tenants is both reprehensible and illegal. If you have been a victim of sexual harassment, please report it to 1-844-380-6178 or [email protected].”
In a memo, Attorney General William Barr stated, “The current times are difficult enough without predatory practices by unscrupulous landlords. We must stop such behavior in its tracks. ”
Attorney General Barr has directed the Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. In late 2017, the Civil Rights Division launched the Sexual Harassment in Housing Initiative to combat sexual harassment in housing. The Civil Rights Division, together with the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
To address predatory practices by unscrupulous landlords, Attorney General Barr directed Assistant Attorney General for Civil Rights, Eric Dreiband, and Christina Nolan, the U.S. Attorney for the District of Vermont to oversee and coordinate U.S. Attorneys’ Offices efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
“The Fair Housing Act authorizes the U.S. Department of Justice take swift action against anyone who sexually harasses tenants,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to the fight against sexual harassment in housing. We will defend the right of tenants and their families to live peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
Unfortunately, many instances of sexual harassment in housing continue to go unreported. This is further exacerbated by the COVID-19 pandemic. Many investigations frequently uncover sexual harassment that has been ongoing for years and identify numerous victims who never reported the conduct to federal authorities.
In a public service announcement, U.S. Attorney Erin Nealy Cox urged victims of sexual harassment by a landlord, property manager, loan officer, maintenance worker, security guard, or other person who has control over housing to contact:
Sexual Harassment in Housing Initiative
1-844-380-6178
For more information: justice.gov/crt/sexual-harassment-housing-initiative.
Federal Charges Filed in KCK Gas Station Robbery, ShootingRead the Press Release
KANSAS CITY, KAN. – Federal charges have been filed against a Kansas man accused of shooting a clerk during a gas station robbery in Kansas City, Kan., last month, U.S. Attorney Stephen McAllister said today.
Jakel J.M. Webster, 24, Kansas City, Kan., is charged with one count of robbery and one count of discharging a firearm during the robbery.A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on April 28, 2020, Webster robbed the Quick Shop at 2425 Metropolitan Avenue in Kansas City, Kan. An investigator’s affidavit says two suspects entered the store at about 3:30 a.m. The suspect carried a rifle and work a mask and gloves. The smaller suspect had a metal baseball bat and work a mask. The smaller suspect tried to break down the door to the clerk’s enclosed area, but failed. The larger suspect shot through the glass, striking the clerk in the face. The larger suspect then shot the clerk a second time as he lay bleeding on the floor. Both suspects fled before the police arrived.
Investigators learned that Webster was the larger suspect in the robbery. They arrested him on April 29.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, and at least 10 years and a fine up to $250,000 on the firearm charge. The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Executive at Investment Management Firm Pleads Guilty in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that AHMAD NAQVI, the chief operating officer of Elm Tree Investment Advisors LLC (“ETIA”), pled guilty before U.S. District Judge Edgardo Ramos to securities fraud charges stemming from his role in a scheme to defraud investors in multiple investment funds created and controlled by NAQVI and Fred Elm, a/k/a “Frederic Elmaleh,” the founder and manager. Among other illicit activity, Elm and NAQVI fraudulently induced more than 50 investors to invest over $18 million based on the false representation that Elm and NAQVI would invest that money, through the funds, in the shares of privately held technology companies, like Twitter, Alibaba, Uber, and Square, before their initial public offerings (“IPOs”).
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted in court, Ahmad Naqvi deceived investors with claims that the Elm Tree Funds would generate huge profits from investments in privately-held technology companies. In fact, the funds never invested in these pre-IPO companies and never returned a profit, and the fraction of investor money actually invested in securities resulted in massive losses. Now Naqvi awaits sentencing for his crime, and faces the loss of his freedom.”
According to the Superseding Indictment charging Elm and NAQVI, and other filings in the case:
From at least June 2013 through December 2014, Elm and NAQVI engaged in a scheme to defraud investors in funds that Elm and NAQVI created and controlled at ETIA, where Elm was the founder and manager, and NAQVI was the chief operating officer. Elm and NAQVI raised more than $18 million from over 50 investors in four limited partnerships for which ETIA acted as the fund manager: Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP (collectively the “Elm Tree Funds”).
Elm and NAQVI falsely represented that the Elm Tree Funds used investor capital to purchase shares in privately held technology companies before their IPOs. These companies included Twitter, Inc., Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc. Moreover, Elm and NAQVI falsely represented that they had access to these pre-IPO shares because of their relationships with leading venture capital firms, such as Kleiner Perkins Caufield & Byers, Benchmark Capital, and Silver Lake Management, L.L.C. In truth and in fact, Elm and NAQVI did not invest in the pre-IPO shares of these companies and did not have relationships with these venture capital firms.
Elm and NAQVI comingled the approximately $18 million that was invested in the Elm Tree Funds in a single investment account and then invested only a portion of the money, approximately $7.1 million. At no point did any of the Elm Tree Funds return a profit. Instead, for example, between January 2014 and November 2014, the Elm Tree Funds lost approximately $3.9 million in trading.
Moreover, of the investor funds that Elm and NAQVI did not lose in securities trading, Elm routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including to purchase a multimillion-dollar home, high-end furnishings, and other personal items, such as jewelry, daily living expenses, and luxury automobiles, including a Bentley, a Maserati, and a Range Rover.
The conversion of investors’ funds was contrary to the representations that Elm and NAQVI made to investors concerning their and ETIA’s fees. Elm and NAQVI falsely represented that they and ETIA would take a two percent annual management fee plus a performance fee of 20 percent of any profits that the Elm Tree Funds earned. In truth and in fact, Elm converted investor money that far exceeded the two percent management fee. Moreover, because the Elm Tree Funds never returned a profit, Elm, NAQVI, and ETIA were not entitled to a percentage of any profits.
Elm and NAQVI also used approximately $5.2 million of new investor funds to make payments to earlier investors in a Ponzi-like fashion. To prevent or forestall redemptions, and continue to raise money to fund their scheme, Elm and NAQVI also generated fictitious account statements and made oral and written misrepresentations that their trading strategies were generating consistently positive returns.
For example, beginning in mid-2013, Elm and NAQVI began to solicit Victim-1 to invest with ETIA in the Elm Tree Funds. On June 11, 2013, NAQVI sent Victim-1 a series of emails regarding the Elm Tree Emerging Growth Fund, in which he falsely represented, among other things, that the fund would invest in pre-IPO Twitter shares, and that Elm, NAQVI, and ETIA had “key contacts” with venture capital firms like Kleiner Perkins Caufield & Byers and Benchmark Capital. Elm and NAQVI subsequently had in-person meetings and telephone calls with Victim-1 about this investment. On October 9, 2013, Victim-1 invested approximately $52,500 in the Elm Tree Emerging Growth Fund. Following Twitter’s IPO on November 6, 2013, Twitter’s stock price rose, and NAQVI subsequently told Victim-1 that Elm, NAQVI, and ETIA had used an options strategy to lock in Victim-1’s profits in Twitter. Because the fund had not invested in pre-IPO Twitter shares, there were no profits to lock in. Thereafter, Elm and NAQVI sent fraudulent account statements to Victim-1, including one sent on March 7, 2014. The statement falsely indicated that Victim-1’s investment in the fund was valued at $274,550 (up from $52,500), and that the Elm Tree Emerging Growth Fund was valued at $68,115,855.
Elm and NAQVI made similar misrepresentations with respect to Victim-1’s subsequent investments in the Elm Tree ‘e’Conomy Fund and Elm Tree Motion Opportunity, falsely indicating that those funds invested in Alibaba, Uber, Square, Pinterest, and GoDaddy, and that Victim-1’s investments were growing. Elm and NAQVI also falsely represented that the value of the Elm Tree ‘e’Conomy Fund as of December 12, 2014, was $125,484,750 and that the value of Elm Tree Motion Opportunity as of December 18, 2014, was $77,286,220 – falsely claiming that the total value of the Elm Tree Funds was more than $270 million.
NAQVI, who had been a fugitive since his indictment in 2016, was arrested in Canada and extradited to the United States in November 2019. Elm was initially arrested in April 2016 and released on bail. In June 2017, approximately one week before his then-scheduled guilty plea, Elm fled to Canada. Elm was subsequently arrested in Canada and extradited to the United States in January 2020.
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NAQVI, 51, pled guilty to one count of securities fraud conspiracy, which carries a maximum sentence of five years in prison. The charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offenses. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. NAQVI is scheduled to be sentenced by Judge Ramos on June 29, 2020, at 10:30 a.m.
Mr. Berman praised the work of Homeland Security Investigations and the U.S. Department of Justice’s Office of International Affairs, and thanked the U.S. Securities and Exchange Commission for its assistance. Mr. Berman also thanked Canadian law enforcement for its support and assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
The allegations contained in the Superseding Indictment against Elm are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ex-BLM employee admits using government credit card to defraud agency, buy potteryRead the Press Release
MISSOULA – A former Bureau of Land Management employee today admitted he used government credit cards to steal from the agency, including buying pottery for his personal use, U.S. Attorney Kurt Alme said.
Adrian Anthony Aragon, 49, of Butte, pleaded guilty to wire fraud. Aragon faces a maximum 20 years in prison, a $250,000 fine and up to three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. The Court detained Aragon and set sentencing for Aug. 14.
The prosecution said in court records filed in the case that Aragon worked as an administrative assistant for the BLM and had been issued government travel and purchase cards to be used only for official business. An investigation found that in 10 months, Aragon attempted to obtain about $20,901 by improperly using his government cards. On July 28, 2019, Aragon used his card to spend $2,500 to buy pottery for his personal use. To cover the fraudulent purchase, Aragon doctored the account statement to omit the transaction and then submitted the statement.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Bureau of Land Management, Office of Law Enforcement and Security.
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Dominican National Sentenced for Fentanyl and Aggravated Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national previously residing in Worcester was sentenced today in connection with fentanyl and heroin distribution and aggravated identity theft charges.
Jonathan Francisco Bobadilla-Rosa, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 28 months in prison and one year of supervised release. In November 2019, Bobadilla-Rosa pleaded guilty to possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl; false representation of a social security number; and aggravated identity theft.
Bobadilla-Rosa is illegally in the United States. In December 2018, he was arrested carrying a backpack containing more than 100 grams of heroin and more than 40 grams of fentanyl. When he was arrested, he identified himself by a different name and claimed to be from Puerto Rico. Further investigation revealed that Bobadilla-Rosa stole the identity of a Puerto Rican resident, used that identity to obtain a Massachusetts identification card, and that Bobadilla-Rosa was actually from the Dominican Republic.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office made the announcement today. The Massachusetts Attorney General’s Office and the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division prosecuted the case.
Doctor Pleads Guilty to Opioid Conspiracy and Health Care FraudRead the Press Release
ALEXANDRIA, Va. – A Fairfax physician pleaded guilty today to leading and organizing an extensive and illegal prescription distribution conspiracy and a related health care fraud scheme.
According to court documents, Dr. Felicia Lyn Donald, 65, of Great Falls, organized, led, and operated a prescription “pill mill” from at least April 2016 through April 2020. Donald practiced medicine at For Women OB/GYN Associates and NOVA Addiction Center. Donald distributed over 1.2 million milligrams (mg) of Schedule II opioids at or above the Centers for Disease Control and Prevention (CDC) guideline for dosages that a practitioner should avoid, with a total street value of over $1.2 million, and illegally distributed at least 325,190 mg of oxycodone and other Schedule II controlled substances. Donald also committed health care fraud on numerous occasions in furtherance of her scheme.
“Donald flagrantly violated her oath as a physician and put countless lives at risk,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “It is critical that those with the power to prescribe controlled substances be held accountable for their actions, and that putting the health and safety of the American public at risk is a federal crime. This is especially true at this very moment when we are relying on medical professionals to save lives during the COVID-19 pandemic.”
Additionally, Donald fraudulently prescribed Schedule II opioid pills that she illegally distributed to a close associate, knowing that this individual sold the prescriptions on the street for profit. Around the same time, Donald issued prescriptions to the close associate for alprazolam pills, which belongs to a class of drugs known as benzodiazepines. Donald admitted that the use of opioids with benzodiazepines is a dangerous combination of drugs that can make a person stop breathing, and could have killed or caused serious bodily injury to the close associate or to the ultimate users.
“Donald’s actions fueled our nation’s opioid crisis and endangered lives,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG. “We will work tirelessly with our partners to prevent criminals from preying on the Medicaid program and its beneficiaries.”
Donald admitted that she prescribed opioids to addicts and/or drug dealers who had traveled from out-of-state or long distances to her practice; individuals that informed Donald of their pending drug charges; individuals who Donald knew had failed urine toxicology screens; individuals who Donald knew were selling the pills that she prescribed to them; paying certain employees, in part, with opioid prescriptions rather than through pay checks; and giving blank prescriptions to certain members of her medical office staff and other co-conspirators for their personal use.
“Today’s guilty plea illustrates the lure of greed and making money at the expense of those in need of treatment,” said Kevin Vorndran, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “The FBI will not stand by while so-called medical ‘professionals’ abuse their oaths and abandon their responsibilities to their patients. Removing even one doctor who diverts opioids for profit can make a significant and lasting impact in a community, especially in the lives of those affected by reckless prescribing and dispensing practices.”
Donald attempted to conceal her patterns of illegal prescribing by falsifying medical records to make it appear as though individuals who were never her patients received examinations and medical care, when in fact they had not, and engaging in Medicaid fraud. Donald fraudulently issued prescriptions to others in the names of at least nine unwitting individuals, none of whom were her patients. Donald also issued prescriptions for high doses of oxycodone to multiple women who were pregnant.
Donald pleaded guilty to conspiracy to distribute and dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose, and health care fraud. She agreed to surrender her medical license and faces a maximum penalty of 30 years in prison when sentenced on August 21. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kevin Vorndran, Acting Special Agent in Charge of the FBI's Washington Field Criminal Division; and Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Raj Parekh and Monika Moore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-100.
District attorneys, solicitors strengthen fight against COVID-19 related fraudRead the Press Release
The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force.
“Our law enforcement efforts are strongest when the ‘good guys’ coordinate their efforts against ‘bad guys,’ including scam artists,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We’re proud to partner with PAC as we protect Georgia’s citizens.”
The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Gov. Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
“I want our citizens to know that prosecutors at every level in our state are committed to enforcing the laws that protect Georgians, and we will not tolerate fraudsters using this deadly pandemic for their own personal gain,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “We are thankful to have the state’s prosecuting attorneys represented on the COVID-19 Task Force, which serves to further strengthen our collective efforts to track down and punish fraudsters.”
Georgia’s COVID-19 Task Force is warning the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price-gouging and fair housing violations. To date, the Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received nearly 1,000 reports of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water, and hand sanitizer.
The public can report potential scams to the National Center for Disaster Fraud (NCDF) by calling 1-866-720-5721 or at justice.gov/DisasterComplaintForm, or file complaints with the Georgia Attorney General’s Office by calling 800-869-1123 (toll-free) or at consumer.ga.gov.
Formed in April 2020, Georgia’s COVID-19 Fraud Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia.
District Attorneys, Solicitors Strengthen Fight Against COVID Related FraudRead the Press Release
MACON, Ga. – The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force. The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“I want our citizens to know that prosecutors at every level in our state are committed to enforcing the laws that protect Georgians, and we will not tolerate fraudsters using this deadly pandemic for their own personal gain,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “We are thankful to have the state’s prosecuting attorneys represented on the COVID-19 Task Force, which serves to further strengthen our collective efforts to track down and punish fraudsters.”
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Governor Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“Our law enforcement efforts are strongest when the ‘good guys’ coordinate their efforts against ‘bad guys,’ including scam artists,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We’re proud to partner with PAC as we protect Georgia’s citizens.”
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
Georgia’s COVID-19 Task Force is warning the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. To date, the Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received 978 reports of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can report potential scams to the National Center for Disaster Fraud (NCDF) by calling 1-866-720-5721 or via e-mail [email protected] or file complaints with the Georgia Attorney General’s Office by calling 800-869-1123 (toll-free) or at consumer.ga.gov.
Formed in April 2020, Georgia’s COVID-19 Fraud Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
DOJ Increases Efforts to Combat Sexual Harassment in Housing During COVID-19 PandemicRead the Press Release
BOISE – U.S. Attorney Bart M. Davis is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“While most landlords respond with understanding and care, trying to work with their tenants to weather the crisis, there are national reports of other landlords who have demanded sexual favors to defer rent payments. Although unaware of any reports locally, I emphasize this behavior will not be tolerated at any time, especially now,” said U.S. Attorney Davis. “The Department of Justice has not hesitated to intervene when clear misconduct occurs.” The U.S. Attorney’s Office for the District of Idaho will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the District of Idaho by calling (208) 334-1211 or emailing [email protected].
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Cincinnati flavorings, fragrance company agrees to pay $50k to resolve claims of illegally importing listed chemical from ChinaRead the Press Release
CINCINNATI – A Cincinnati company has agreed to pay the United States $50,000 for illegally importing a listed chemical from China.
According to the settlement that was executed today, Frutarom is a manufacturer and developer of flavorings and ingredients that did business on Commerce Park Drive in Cincinnati. Frutarom is a wholly owned subsidiary of International Flavors & Fragrances, Inc.
As part of the Controlled Substances Act, the DEA regulates listed chemicals, including benzaldehyde, a chemical often used as almond flavoring and scent.
Frutarom imported more than 800 kilograms of the chemical from China without notifying the United States government, as required by the Controlled Substances Act.
The Cincinnati company has agreed to pay the government $50,000 to resolve the government’s potential claims for civil penalties.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) announced today’s settlement. Deputy Civil Chief Matthew Horwitz and Assistant United States Attorney Brandi Stewart are representing the United States in this case.
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Central New York Construction Companies and Others to Pay Nearly $4.5 Million to Resolve Allegations of Fraud Involving Contracting Opportunities Meant for Disabled VeteransRead the Press Release
ALBANY, NEW YORK – Northland Associates, Inc. (Northland), its president James Tyler, The Diverse Construction Group, LLC (Diverse), and their bonding agent, Rose & Kiernan, Inc., have agreed to pay the United States $4,470,000 to resolve allegations that they fraudulently exploited contracting opportunities reserved for veteran-owned small businesses and small businesses operating in historically underutilized business zones (HUBZones), announced United States Attorney Grant C. Jaquith.
“We are committed to curtailing corruption by contractors who take opportunities set aside for small businesses owned and operated by injured veterans,” said United State Attorney Jaquith. “We owe no less to those who sacrificed their own well-being for our safety and security.”
The United States has long used government contracting to promote small businesses owned by veterans who have service-connected disabilities and small businesses operating in economically distressed communities. To be eligible for these contracts, an applicant must first qualify as a small business. To qualify, the business must report to the U.S. Small Business Administration (SBA) its total income and employees along with the income and employees of any affiliates. Generally, federal regulations provide that companies are affiliated when one business has the power to control another, or when a third party has the power to control both businesses. When two companies are affiliated, and together exceed the income and employee limitations, neither will be eligible for small business set-aside contracts.
The settlement with Northland, Diverse, and Tyler resolves allegations that those parties orchestrated a scheme to secure government set-aside contracts for Diverse and subcontracts for Diverse’s undisclosed affiliate, Northland.
Diverse was 51% owned by a service-disabled veteran and 49% owned by senior Northland officials. Northland exerted influence over Diverse in various ways, including by maintaining a “bid calendar” with deadlines for upcoming Northland and Diverse contracting opportunities, staffing Diverse with former Northland employees, and funneling Diverse subcontracts to Northland for fulfilment. Northland also handled various administrative duties for Diverse, including its accounting, expediting, estimating, purchasing, contracting, and clerical work.
Witnesses recounted moving boxes of files from Northland’s Liverpool, New York office (which was not located in a HUBZone) to Diverse’s office in Plessis, New York (which was located in a HUBZone), to make the Plessis office appear operational for government inspections. When the SBA questioned the parties’ affiliation in 2009, Tyler and Diverse’s 51% owner submitted sworn declarations that misrepresented the relationship between the two companies. Shortly thereafter, Diverse funneled more than $1 million to Northland through a Northland subsidiary in an effort to hide the parties’ affiliation. Northland, Diverse, and Tyler admitted that their conduct violated federal regulations designed to encourage contract awards to service-disabled veteran-owned small businesses and small businesses operating in HUBzones.
Contractors bidding for federal government construction contracts are generally required to post performance bonds and payment bonds, and the bonding company is required to ensure that the contractor will perform the work. Rose & Kiernan is an insurance and surety brokerage that acted as a bond broker for both Northland and Diverse on government construction projects. David Cooper is a senior vice president with Rose & Kiernan. The settlement with Rose & Kiernan and Cooper resolves allegations that those parties knew or should have known that Diverse and Northland were affiliated in violation of SBA regulations and that those companies took steps to hide their affiliation from the government to obtain and receive payment on government set-aside contracts. Their decision to help Diverse obtain bonding was a critical action in furtherance of Diverse’s and Northland’s fraud on the government, and served as a substantial factor in causing Diverse to submit false claims for payment to the United States.
“Providing false information to gain access to SBA’s preferential contracting programs is fraught with peril and is especially egregious when it involves programs intended to benefit our nation’s service-disabled veterans,” said SBA Inspector General Hannibal “Mike” Ware. “SBA-OIG will always aggressively pursue allegations of wrongdoing against individuals that provide false information. I want to thank the Department of Justice for their dedication to this case resulting in this settlement.”
SBA’s Associate General Counsel for Litigation, Eric S. Benderson, said: “The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud, pursue those individuals and companies that engage in fraudulent activities and protect the integrity of the program.”
“Ensuring the integrity of the DoD procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “The successful resolution of this case is the result of a joint investigative effort and demonstrates the DCIS’ commitment to work with the U.S. Attorney’s Office for the Northern District of New York and its law enforcement partners to identify and prosecute individuals and companies that seek to defraud U.S. government contracting programs.”
“The Department of Veterans Affairs Office of Inspector General remains vigilant in its efforts to bring individuals and companies to justice that misappropriate the opportunity afforded exclusively to our nation’s veterans to obtain these VA set-aside contracts,” said VA-OIG Special Agent in Charge Christopher F. Algieri. “The VA-OIG will continue to protect the integrity of this important program, and thanks the U.S. Attorney’s Office and our law enforcement partners in this collaborative effort.”
“Those who contract with the United States government must do so fairly and honestly,” said Douglas Shoemaker, Regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General. “Today’s settlement clearly signals that it is not acceptable for contractors to unscrupulously take advantage of Federal programs created to enhance opportunities for small disadvantaged businesses.”
As part of the settlement agreements, Northland will pay $2,125,000, Tyler will pay $2,125,000, Diverse will pay $100,000, and Rose & Kiernan has paid $120,000.
The government’s investigation was triggered by whistleblower lawsuits filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relators in this case will receive $1,000,000 of the settlement proceeds that the government receives from Northland, Diverse, and Tyler. The cases are docketed with the U.S. District Court for the Northern District of New York under numbers 5:17-cv-036 and 5:18-cv-516.
The investigation and settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG, DCIS, DOT-OIG, and the U.S. Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorneys Adam J. Katz and Christopher R. Moran.
Cengage and McGraw-Hill Terminate Merger Agreement in Response to Antitrust ConcernsRead the Press Release
Cengage Learning Holdings II Inc. and McGraw-Hill Education Inc. mutually agreed to abandon their plans to merge after the Department of Justice informed the companies it had serious concerns that the proposed transaction, as structured, would harm competition.
The merger would have combined the second and third largest publishers of textbooks in the United States in a market long dominated by three major textbook publishers. “American students were our primary concern when evaluating the possible competitive effects of this deal,” said Assistant Attorney General Makan Delrahim of the department’s Antitrust Division. “The decision to abandon this merger preserves competition in the market for textbook publishing, an important industry in the education sector. Cengage and McGraw-Hill’s decision to abandon this merger also preserves innovation, as the two firms compete aggressively in the development of courseware technology.”
McGraw-Hill, headquartered in New York City, is the second-largest publisher of course materials in higher-education, which include physical textbooks, e-books, and digital courseware. McGraw-Hill is a private company, owned by a private equity fund operated by Apollo Global Management LLC.
Cengage is a publicly-traded company that is headquartered in Boston, Massachusetts. It is the third-largest publisher for higher-education course materials, which includes physical textbooks, e-books, and courseware.
California Man Sentenced to Six Months in Prison for Making False Statements in Passport ApplicationRead the Press Release
SAN FRANCISCO – Mustapha Traore, aka Olivier Adella, was sentenced to six months in prison and six additional months of home confinement for knowingly making false statements in an application for a passport with the intent to induce and secure the issuance of a passport, announced United States Attorney David L. Anderson; U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman; and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge.
“The Diplomatic Security Service (DSS) is committed to ensuring that those that perpetrate U.S. passport fraud face consequences for their nefarious actions,” said Matthew Perlman, Special Agent in Charge of the DSS San Francisco Field Office. “The successful prosecution of this complex international, multi-jurisdictional case is a direct result of DSS’ global reach and strong partnership with both U.S. and foreign law enforcement agencies.”
“Homeland Security Investigations agents and professional staff will continue to closely collaborate with the Diplomatic Security Service and the U.S. Attorney’s Office in order to proactively disrupt fraud schemes that attempt to exploit our lawful immigration system,” said HSI Special Agent in Charge King.
Traore, formerly of Burlingame, Calif., pleaded guilty to the charge on March 9, 2020. Today’s sentence follows Traore’s arrest by DSS special agents on a criminal complaint on January 10, 2020.
According to the complaint, Traore entered the United States in February 2002 using a fake French passport with the name Olivier Adella. The criminal complaint further alleged that after Traore used the fake passport to enter the United States, he used the passport to obtain immigration status and eventually a naturalization certificate under the assumed name Olivier Adella. After becoming a naturalized U.S. citizen, Traore made false statements about his true name and birthplace in a December 2011 application for a U.S. passport; and based on those lies he was issued a U.S. passport under the assumed name.
According to information presented to the court at sentencing, on the night of April 28-29, 2016, Traore took part in the murder of San Mateo resident Keith Green. The court was informed that Traore pled guilty to accessory in the murder; and that Traore admitted that he helped load Mr. Green’s body into the trunk of his Chrysler 300, drove the body from San Mateo County across the Golden Gate Bridge, and then dumped the body down an embankment off of Highway 101 in Sonoma County. Around May 10, 2016—shortly after Green was killed but before Traore was arrested in connection with the murder—Traore submitted an expedited passport renewal application and again provided false information.
On January 23, 2020, a federal grand jury indicted Traore, charging him with knowingly making false statements in an application for a passport with the intent to induce and secure the issuance of a passport, in violation of 18 U.S.C. § 1542. Traore pleaded guilty to the charge.
In addition to the prison term, Judge Chhabria sentenced the defendant to a three-year period of supervised release, including the six months of home confinement.
Assistant United States Attorney Daniel Pastor is prosecuting the case with assistance from Marina Ponomarchuk. The prosecution is the result of an investigation by the DSS and HSI.