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7 May 2020
U.S. Attorney Bill Powell announces $37,272 award to address COVID-19 pandemic in ClarksburgRead the Press Release
CLARKSBURG, WEST VIRGINIA – U.S. Attorney Bill Powell of the Northern District of West Virginia today announced that the city of Clarksburg received $37,272 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the city of Clarksburg is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Clarksburg is just one of the many cities in our district that is working hard to keep residents safe and healthy during this pandemic. This funding will help with that good work,” said Powell.
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Texas man admits role in nearly $5 million health care fraud schemeRead the Press Release
CORPUS CHRISTI, Texas – A 57-year-old Houston man has entered a guilty plea in Corpus Christi federal court for conspiring to commit health care fraud, announced U.S. Attorney Ryan Patrick.
Ravinder Syal admitted he engaged in a scheme that resulted in the false billing of $4,878,530.92 for services never provided to patients. From Feb. 1, 2018, until March 1, 2020, he acquired physicians’ practices throughout Texas and assumed control of their billing department. He then brought in a company located in India to bill false claims to Medicare, Medicaid and various insurance providers.
Syal would submit false claims for services that were never performed, for nutritional servicers that were never provided and even for office visits that occurred over holidays when the clinics were actually closed. He would also bill for services that could not even be performed at the clinics he acquired due to lack of equipment.
Syal altered the billing information and added these fraudulent services without the knowledge of the physicians at the respective practices.
As a result of his scheme, Medicare, Medicaid and various insurance providers were billed $4,878,530.92 for services never performed. Syal was overpaid $553,068.65 on the fraudulent claims.
Sentencing has been set for Aug. 10 before U.S. District Judge David S. Morales. At that time, Syal faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Syal was permitted to remain on bond pending that hearing.
The FBI and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorney Jeremy C. Fugate is prosecuting the case.
Texas Men Sentenced to Prison for Fraud OffensesRead the Press Release
DES MOINES, IA – On May 7, 2020, United States District Senior Judge James E. Gritzner sentenced Tofyk Ali Oro, age 32, a former resident of Texas, to 30 months in prison for Access Device Fraud Conspiracy, announced United States Attorney Marc Krickbaum. On December 12, 2019, Senior Judge Gritzner sentenced Ali Oro’s co-defendants Jose Antonio Hernandez and Luis S. Boffill Figueredo, also former residents of Texas, for the same charge. Hernandez was sentenced to 30 months in prison and Boffill to six months in prison. Each defendant was ordered to serve multiple years of supervised release to follow the prison terms and pay restitution.
On or about October 28, 2017, Ali Oro and Hernandez traveled from Texas to the Des Moines area and agreed to fraudulently purchase store gift cards and other items from various retailers using credit/debit card account numbers they knew were stolen. Specifically, they unlawfully obtained account numbers that belonged to customers of Community State Bank and then encoded the stolen numbers on the magnetic strips of other plastic cards. From October 28 through November 3, 2017, they used the fraudulent “encoded” cards to complete $28,839.18 in sales transactions. On December 19, 2017, Ali Oro and Hernandez again traveled from Texas to Des Moines. This time they were joined by Boffill. The group then encoded stolen account numbers belonging to customers of Bankers Trust on the magnetic strips of other plastic cards. From December 19 through December 23, 2017, they used these fraudulent cards to complete $41,826 in sales transactions in the Des Moines area.
All three defendants were ordered to jointly and severally pay $41,826 in restitution to Bankers Trust. Ali Oro and Hernandez were also ordered to jointly and severally pay $28,839.18 in restitution to Community State Bank. Both banks covered the fraudulent charges made on their customers’ accounts.
This case was investigated by the Des Moines Police Department with computer analysis assistance by the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Sulphur Springs Man Sentenced to over 12 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Donald Whitaker, age 35 of Sulphur Springs, AR was sentenced today to 150 months in federal prison followed by 5 years of supervised release on one count of Distribution of More Than 50 Grams of Actual Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing today in the United States District Court in Fayetteville.
According to court records in June of 2019, the Drug Enforcement Administration initiated an investigation into Whitaker for drug trafficking offenses in the Western District of Arkansas. On August 13, 2019, investigators conducted a controlled purchase of approximately three ounces of methamphetamine from Whitaker. The substance purchased from Whitaker was submitted to the DEA laboratory and tested positive for 92.7 grams of actual methamphetamine.
Whitaker was indicted by a federal grand jury in November of 2019, and entered a guilty plea in February of 2020.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Amy Driver prosecuted the case for the Western District of Arkansas.
Statement from Assistant Attorney General Stephen E. Boyd Expressing Support for Congressional Efforts to Expedite Payment of Public Safety Officer Benefits to First Responders Who Contract COVID-19Read the Press Release
Assistant Attorney General Stephen E. Boyd issued the following statement in support of efforts to streamline payments under the Public Safety Officer Benefit Program (PSOB) to public safety officers fatally injured while working during COVID-19:
“The Department of Justice is honored to review the more than 1,000 claims submitted to the PSOB Program each year on behalf of America's fallen and injured public safety heroes and their loved ones. With the recent outbreak of COVID‐19, America’s law enforcement officers, firefighters, and other first responders face a new health risk as they continue to selflessly serve their communities. The department supports congressional efforts to provide for expeditious resolution of claims for public safety officers who contract COVID-19 while working during this challenging time. The department has provided technical assistance on the Senate legislation and stands ready to continue to assist Congress in their efforts on behalf of these brave community heroes.”
Background:
The PSOB program provides death benefits to the eligible survivors of public safety officers who are fatally injured in the line of duty. Infectious diseases, viruses, and bacteria currently may be found to be an injury sustained in the line of duty. The program also provides disability benefits to public safety officers catastrophically injured in the line of duty, and education benefits to the eligible spouses and children of fallen and catastrophically injured officers.
As the PSOB Office receives claims based on COVID‐19 exposure, it will work closely with survivors, officers, and agencies. For questions regarding the PSOB Program or filing a claim, please visit PSOB’s online portal at www.psob.gov.
Statement from Attorney for the United States Mark E. Coyne on Supreme Court Ruling in Kelly v. United StatesRead the Press Release
“The Supreme Court’s decision speaks for itself, and we are bound by that decision. Beyond that, we have no comment.”
Springfield Man Charged with Producing Child Pornography, Sexually Abusing Three TeensRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man has been charged in federal court with sexually assaulting three teenagers and recording the abuse on his cell phone.
William Shane Berg, 47, was charged in a criminal complaint filed in the U.S. District Court in Springfield on Wednesday, May 6, with one count of producing child pornography.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers confronted Berg on April 12 regarding allegations that he had been sexually assaulting three teenagers – ages 15, 17, and 19 – for several years. One of the child victims also told investigators that Berg gave him marijuana and acid to facilitate the sexual abuse.
Investigators found images of the sexual abuse on Berg’s cell phone and laptop computer, the affidavit says.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the FBI and the Springfield, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."South Florida U.S. Attorney’s Office, FBI, and HSI Offer Tips on Protecting Children from On-Line Predators During Covid-19 PandemicRead the Press Release
Miami, Fl. – Top federal law enforcement officials in South Florida urge parents to stay alert to the increased danger their children face from on-line predators during the COVID-19 pandemic.
“A parent is a child’s best defense against on-line sex predators,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “Now that our children are home and spending more time on the internet due to the health crisis, I encourage parents to engage in open and frank discussions with their children on who, and what, to avoid on-line.”
“With children spending more time on the internet, it is especially important that they do so safely,” said George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami. “Criminals and predators will try to develop a relationship with a young online victim, then arrange a meet to abuse the child or coerce a child into producing sexually explicit images through manipulations, gifts or threats, a crime called sextortion. Parents and guardians should set guidelines and monitor their children’s internet use and, of course, immediately report any inappropriate contact between an adult and your child to law enforcement.”
“Thousands of children right in South Florida are experiencing greater internet usage, as the COVID-19 pandemic has shifted traditional classroom settings to virtual instruction. Increased presence online means children are at an even greater risk of encountering cyber predators who know how to exploit their vulnerabilities,” said Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HIS), Miami. “With families staying home, many children will spend even more time using social media, gaming platforms and other online applications than usual. Now is as good a time as any to ensure kids and parents are practicing online safety and know how to identify potential threats.”
To help parents navigate the increased threat during the pandemic that is keeping children indoors and on-line, U.S. Attorney Fajardo Orshan, FBI Special Agent in Charge Piro, and HSI Special Agent in Charge Salisbury recommend that parents do the following:
- Tell your children to avoid communicating with strangers online.
- Monitor your children’s chats, messages, and communications with people, particularly through gaming systems.
- Explain to your children that sometimes predators will offer them gifts in exchange for their taking and sending sexually explicit images or videos. Sometimes, the predators will make threats. Parents should explain to their children that these are strategies abusers use to get what they want, and if this happens, to not feel guilty and immediately tell a parent or other adult.
- To the extent possible, educate yourself about the internet tools your children use. For example, set up your child’s specific profile on phones, iPads, and computer devices to limit the websites and content your child can access, and have a weekly “usage” sheet sent to you for that profile. Make sure your children use privacy settings to restrict access to their online profiles.
- Check your children’s social media and gaming profiles and posts. Talk to your children about what is appropriate to say or share.
- Explain to your children that once images or comments post online, people can share them. Explain that everyone in the world can see what they publicly post on the internet and they can never completely erase posted images and comments.
- Encourage children to choose appropriate screen names and create strong passwords. Parents should be aware of all passwords and discourage children from keeping their passwords a secret.
- Make it a rule with your children that they cannot arrange to meet up with someone they have met online without your knowledge and supervision.
Child Exploitation is a serious federal crime, carrying severe federal penalties. If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the South Florida FBI office, call 754-703-2000. To alert the South Florida HSI office, call 866-347-2423. The National Center for Missing and Exploited Children (NCMEC) also accepts complaints of child sexual exploitation at 1-800-843-5678.
The U.S. Attorney’s Office, FBI, and HSI have prosecuted many child exploitation cases in the Southern District of Florida. In December 2019, for example, a defendant received a 50-year prison sentence after a jury found him guilty of orchestrating a sextortion ring targeting children. The U.S. Attorney’s Office and FBI led the prosecution. For more information on this case, visit https://www.justice.gov/usao-sdfl/pr/man-convicted-trial-miami-orchestrating-snapchat-sextortion-ring-targeted-children.
In February of this year, a defendant received a 20-year prison sentence after pleading guilty to coercing a 15-year-old girl into taking sexually explicit photographs and videos of herself and sending them to his cellular telephone. The U.S. Attorney’s Office and HSI led this prosecution. For more information on this case, visit https://www.justice.gov/usao-sdfl/pr/loxahatchee-man-sentenced-20-years-federal-prison-production-child-pornography-and.
Shreveport Man Sentenced to Federal Prison for Possessing Stolen FirearmRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today that Carnell Briggs, 21, appeared in court via video conference and was sentenced by U.S. District Judge Elizabeth E. Foote, to eight months in federal prison and three years of supervised release, for possessing a stolen firearm. Briggs pled guilty to this charge on December 19, 2019.
On May 1, 2019, Shreveport Police officers responded to a tip that known gang members were at a residence in Shreveport armed with firearms and using narcotics. Upon arrival, officers smelled a strong odor of marijuana coming from the apartment and encountered an individual exiting the apartment holding a camera. The individual told officers he was there to shoot a rap video. Briggs can be seen in the video recording holding a Glock Model 30 .45 caliber pistol with an extended magazine, a firearm that was previously reported stolen in 2016. During a search of the apartment, officers located the Glock Model 30 .45 caliber pistol that had an extended magazine inside the dishwasher. The pistol was loaded with 27 rounds of .45 ammunition. Briggs admitted he knew the firearm was stolen and that is the reason he hid it in the dishwasher when police arrived.
The FBI Northwest Louisiana Violent Crimes Task Force conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Saltville Man Who Lied About His Own Death Pleads Guilty to Series of Federal Charges Including Bankruptcy Fraud, Wire Fraud, Aggravated Identity FraudRead the Press Release
ABINGDON, Va. – A Saltville, Va., man, who lied about his own death in order to hide assets from the federal bankruptcy court and later fraudulently assumed the identity of an attorney from Florida to further the scheme, pleaded guilty yesterday in U.S. District Court in Abingdon to a series of crimes, United States Attorney Thomas T. Cullen announced.
“In an effort to game the bankruptcy system, Mr. Geyer devised a made-for-TV plot that ultimately collapsed under its own weight,” U.S. Attorney Cullen stated today. “The audacity of his fraud scheme not only shocks the conscience, but it offends the integrity of our judicial system.”
“Despite its complexity and shameless use of deceit, including against his own wife, Mr. Geyer’s scheme failed to account for the FBI’s and the US Attorney’s office’s commitment to protect both fraud victims and our judicial system.” Special Agent in Charge of the FBI’s Richmond Division David W. Archey said today. “Yesterday's guilty plea is a just and fitting end to Mr. Geyer’s audacious plan. We are grateful for the USAO’s efforts and assistance in this case.”
Yesterday in U.S. District Court, Russell Geyer, 50, pleaded guilty to one count of contempt of court, one count of bankruptcy fraud, one count of wire fraud, and one count of aggravated identity fraud. At sentencing, Geyer faces up to life in federal prison. He will be sentenced on August 6, 2020, at 2:30 p.m.
According to court documents, Geyer devised a scheme to defraud the United States Bankruptcy Court through a series of deceptive statements designed to hide assets and maintain control of collateral. These actions included, but were not limited to, repeatedly lying about fake medical conditions, including prostate cancer, bone cancer, cardiac issues, a brain aneurysm, and pneumonia.
On August 30, 2019, the attorney working for Geyer informed the court that he had received an email purportedly from Russell Geyer’s wife, stating that Russell was dead. In fact, Russell Geyer had sent the email posing as his wife.
At a September 5, 2019 hearing, Mrs. Geyer testified that her husband was alive and that neither she, nor Russell Geyer, had been out of town and in the hospital for the serious medical conditions claimed by the defendant throughout the case.
During the September 5, 2019 hearing, Russell Geyer’s attorney read into the record an email he received from an attorney in Florida indicating that the Florida attorney had sold some of the assets involved in the bankruptcy proceedings without the Geyers’ knowledge. The email further stated that he had complete control of Russell and told him to kill himself. The attorney concluded the email with “I am on a plane out of the country.”
The investigation determined that the Florida attorney whose name was used in the email actually exists but had nothing to do with this case. Instead, Russell Geyer used the Florida attorney’s name and a bogus email account to send these emails without the Florida attorney’s knowledge.
Further investigation revealed that Geyer had assumed the Florida attorney’s identity to fraudulently obtain $70,000 from his own wife. Geyer told his wife that he was going to receive more than $1 million in a settlement from a case that the Florida attorney was handling for him. Geyer said he needed money to pay the attorney’s fees before the money would be released. Geyer then used a bogus email address and an app that disguised his voice to pose as the Florida attorney and to confirm that a settlement was imminent. It was all untrue.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Sacramento Man Sentenced to over 4 Years in Prison for Dealing Firearms Without a LicenseRead the Press Release
SACRAMENTO, Calif. — Kenneth Bryant, 29, of Sacramento, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to four years and nine months in prison for dealing firearms without a license, U.S. Attorney McGregor W. Scott announced.
According to court documents, Bryant met with an undercover agent and a confidential source on 10 occasions between Sept. 12, 2017, and Dec. 8, 2017, and sold them a variety of firearms, including an AR-15-type rifle and pistol and various semi-automatic handguns. In all, Bryant sold investigators 30 firearms, and at least two lacked a serial number or other identifying markings. Bryant, a convicted felon, was not licensed to sell firearms.
This case was the product of an investigation by the by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit. Special Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Prior Sex Offender Charged with Receipt and Possession of Child PornographyRead 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 a federal grand jury has returned an indictment charging Jerry Stearns, 48, of Canandaigua, NY, with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, and a maximum penalty of 40 years.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that according to the indictment and a previously filed complaint, the defendant was convicted in May 2004 on state charges of Attempted Criminal Sexual Act 1st Degree, for sexually assaulting a three year-old child and a six year-old child. In May 2005, Stearns was also convicted in Federal Court of possessing child pornography, and sentenced to serve 120 months in prison to be followed by 10 years of supervised release. A special condition of that supervised release required the defendant to provide advanced notification and obtain authorization to use any internet accessible device, as well as submit to monitoring of any such authorized device.
On May 13, 2019, the U.S. Probation Department informed investigators that Stearns had been viewing child pornography on a previously authorized and monitored device. The child pornography included sexually explicit images of prepubescent girls.
The indictment is the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Gary Loeffert, and the U.S. Probation Department, under the director of Chief Probation Officer Anthony SanGiacomo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pittsburgh Man Sentenced for Role in West End Drug Trafficking CaseRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to two years’ (24 months’) imprisonment on his conviction for conspiracy to distribute heroin, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Delrico Clyburn, age 28, 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 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, Delrico Clyburn 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 Clyburn.
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.
Pennsylvania man sentenced for firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Lynn, of Uniontown, Pennsylvania, was sentenced today to 115 months incarceration for a firearms charge, U.S. Attorney Bill Powell announced.
Lynn, age 41, pled guilty to one count of “Possession of Stolen Firearm” in February 2020. Flynn, a convicted felon, admitted to possessing a 12-gauge shotgun, a .308 caliber rifle, and a 7mm caliber rifle, all believed to be stolen, in October 2018 in Monongalia County.Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monongalia County Sheriff’s Office, and the Pennsylvania State Police investigated.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. District Judge Thomas S. Kleeh presided.
Pair Sentenced for Conspiring to Defraud the Food and Drug AdministrationRead the Press Release
Harrisonburg, Va. – A pair of former business partners who operated multiple websites selling drugs and other products to the bodybuilding community, were sentenced today in U.S. District Court in Harrisonburg on federal conspiracy charges. United States Attorney Thomas T. Cullen and Special Agent in Charge Mark S. McCormack of the Food and Drug Administration’s Office of Criminal Investigations Metro Washington Field Office, made the announcement today.
“Manufacturers and distributors of nutritional supplements must ensure that that their products do not contain FDA-restricted substances, and they must accurately label those products,” U.S. Attorney Cullen stated today. “We will continue to work closely with the FDA to investigate and prosecute individuals and entities who unlawfully market and dispense products that are essentially prescription drugs.”
“U.S. consumers should be able to trust that the dietary supplements they buy do not contain dangerous drug ingredients. When criminals disguise potent drugs as dietary supplements, they place consumers at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to pursue and bring to justice those who peddle these dangerous products.”
Today in federal court, Spencer Gill, 31, of Rancho Palos Verdes, Calif. and Anthony Novak, 46, of Anaheim, Calif., were each sentenced to one-year of probation. In addition, the defendants were ordered to forfeit $130,000. Gill and Spencer both previously pleaded guilty to one count of conspiracy to defraud the United States Food and Drug Administration (FDA).
According to court documents, between March 2013 and April 2018, Gill and Novak conspired to operate multiple business entities and websites selling drugs and other products to the bodybuilding community as part of a scheme to defraud the FDA. Some of these drugs contained ingredients that were not approved by the FDA for human use and were to be dispensed only under the supervision of a practitioner licensed by law to administer them, meaning they were prescription drugs.
Gill and Novak caused many of the drugs they sold to be labeled “for research purposes only.” The defendants caused similar disclaimers to be posted on various websites with the knowledge such representations were false and fraudulent. Gill and Novak admitted to marketing and selling the drugs to customers who intended to, and did, consume the drugs and only claimed the drugs were for “research purposes only” to avoid regulatory oversight by the FDA.
The investigation of this case was conducted by the United States Food and Drug Administration. Assistant United States Attorney Jeb Terrien prosecuted the case for the United States.
Omaha Man Sentenced to Prison for Bank RobberyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on May 6, 2020, Patrick Spagnotti, age 50, of Omaha, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for bank robbery. Spagnotti was sentenced to 36 months in prison to be followed by a three-year term of supervised release.
On April 5, 2019, Spagnotti handed a note to a teller at a US Bank in Council Bluffs that demanded money and the teller gave Spagnotti $4,335 in cash. Once Spagnotti left the bank, law enforcement attempted to stop and pull him over, but Spagnotti accelerated to speeds in excess of 100 mph. Law enforcement eventually executed a controlled stop of the vehicle and arrested Spagnotti. The cash was recovered by law enforcement.
This matter was investigated by the Council Bluffs Police Department, Iowa State Patrol, Federal Bureau of Investigation, and the Great Plains Violent Crimes Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Omaha Man Sentenced to 360 Months for Sexual Exploitation of ChildrenRead the Press Release
United States Attorney Joe Kelly announced that Timothy J. Kirsch, 36, was sentenced today in federal court in Omaha, Nebraska for Sexual Exploitation of Children. The Senior United States District Judge Laurie Smith Camp sentenced Kirsch to 360 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Kirsch will be on supervised release for life and will be required to register as a sex offender.
In December 2018, Homeland Security Investigations (HSI) in Omaha was contacted by the Florida Department of Law Enforcement after a minor female’s mother reported concerning text messages on her daughter’s cell phone. Federal agents executed a search warrant to seize and search Kirsch’s cell phone and located text message conversations with the minor female in Florida as well as a second minor female in Wisconsin. HSI was able to determine that Kirsch first started speaking to the minors in online chat rooms and then began conversing with them via text message. In the text message conversations, Kirsch sent explicit photographs and videos of himself and requested explicit photographs of the minors. Kirsch also attempted to arrange for the minors to travel to Nebraska to have sex with him.
In March 2002, Kirsch was convicted of Lascivious Acts with a Child in Page County, Iowa. Kirsch also has three convictions for failing to register as a sex offender and was on supervised release in December 2018 when the conduct in this case occurred.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Florida Department of Law Enforcement and Homeland Security Investigations.
Oklahoma Man Sentenced to More Than 12 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Eugene Blackwood, age 47, of Westville, Oklahoma, was sentenced to 146 months in federal prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in the fall of 2019, agents and taskforce officers with the Drug Enforcement Administration initiated an investigation into Blackwood concerning his drug distribution in Northwest Arkansas. Throughout the course of the investigation, investigators were able to conduct several controlled purchases of methamphetamine from Blackwood.
Blackwood was indicted by a federal grand jury in November of 2019, and entered a guilty plea in December of 2019.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Kim Harris prosecuted the case for the Western District of Arkansas.
Northern District of California Counties and Cities Receive More Than $7 Million in Justice Grants to Address COVID-19 PandemicRead the Press Release
SAN FRANCISCO – U.S. Attorney David L. Anderson today announced that counties and cities throughout the Northern District of California have been allocated a total or more than $7 million in grants from the U.S. Department of Justice to respond to the public safety challenges posed by the COVID-19 pandemic. The Department of Justice awarded the grants through the Coronavirus Emergency Supplemental Funding program, which was authorized by recent federal stimulus legislation.
“First responders continue to work hard to keep the public safe at this time,” said U.S. Attorney Anderson. “They deserve not just our admiration and appreciation, but also our support. We are pleased to announce this funding to assist law enforcement and public safety efforts throughout our district.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations. Information on how to apply for grants is available at https://bja.ojp.gov/funding/opportunities/bja-2020-18553.
California counties and municipalities throughout the Northern District received grants through the program:
Jurisdiction Name
Grant Allocation
ALAMEDA CITY
$41,660
ALAMEDA COUNTY
$133,882
ANTIOCH CITY
$161,353
BERKELEY CITY
$135,693
CONCORD CITY
$105,655
CONTRA COSTA COUNTY
$82,337
DALY CITY
$56,072
EAST PALO ALTO CITY
$32,226
EMERYVILLE CITY
$32,903
EUREKA CITY
$50,185
FREMONT CITY
$89,657
GILROY CITY
$43,922
HAYWARD CITY
$132,068
HUMBOLDT COUNTY
$60,602
LAKE COUNTY
$45,281
LIVERMORE CITY
$43,242
MARIN COUNTY
$58,008
MENDOCINO COUNTY
$69,733
MONTEREY COUNTY
$58,337
MOUNTAIN VIEW CITY
$33,660
NAPA CITY
$65,354
NAPA COUNTY
$58,008
OAKLAND CITY
$1,330,582
PETALUMA CITY
$51,091
PITTSBURG CITY
$63,695
REDWOOD CITY
$42,488
RICHMOND CITY
$221,800
ROHNERT PARK CITY
$47,469
SALINAS CITY
$235,764
SAN FRANCISCO CITY AND COUNTY
$1,449,067
SAN JOSE CITY
$865,998
SAN LEANDRO CITY
$107,391
SAN MATEO CITY
$58,562
SAN MATEO COUNTY
$70,864
SAN PABLO CITY
$46,867
SAN RAFAEL CITY
$51,242
SANTA CLARA CITY
$39,923
SANTA CLARA COUNTY
$70,261
SANTA CRUZ CITY
$107,845
SANTA CRUZ COUNTY
$65,506
SANTA ROSA CITY
$149,879
SONOMA COUNTY
$140,146
SOUTH SAN FRANCISCO CITY
$40,751
SUNNYVALE CITY
$37,584
UNION CITY
$60,450
WATSONVILLE CITY
$63,318
The Office of Justice Programs (OJP), directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
New York City Man Arrested on Fraud Charges for Selling Stolen COVID-19 Testing Services through His Website, YouHealth, Inc., without Sending Promised Test ResultsRead the Press Release
UPDATE
The indictment in this case has been dismissed pursuant to a pretrial diversion agreement.
PITTSBURGH - A New York resident was arrested and criminally charged for his role in allegedly advertising and selling stolen COVID-19 testing services for $135 to $200, falsely claiming that he was connected to labs that would test the kits, shipping test kits without any prior medical screening, and providing no results to consumers, United States Attorney Scott W. Brady announced today. Additionally, the United States Secret Service, Pittsburgh Field Office Cyber Fraud Task Force, successfully shut down the websites that advertised and sold these stolen test kits. The Department of Justice, under Attorney General William Barr’s recent direction, prioritizes such detection, investigation, disruption and prosecution of illegal conduct related to the coronavirus pandemic.
Henry Sylvain Gindt II, 34, of Queens (New York), New York, has been charged by criminal complaint with committing mail fraud and wire fraud, and conspiring to commit mail fraud and wire fraud.
"Let this be a message to anyone who wants to scam our fellow citizens during this pandemic: the Department of Justice will take swift action to disrupt your scheme and then we will arrest you," said U.S. Attorney Brady. "This is why we created our Western Pennsylvania COVID-19 Fraud Task Force. Gindt tried to profit from the pandemic by selling stolen test kits and services without ever delivering the promised results. Instead, we shut him down and now he is facing prison time."
"This case demonstrates the investigative capabilities of the United State Secret Service, as well as the members of the Western Pennsylvania COVID-19 Fraud Task Force under the leadership of U.S. Attorney Scott Brady. The suspect in this case took advantage of American citizens for his own personal benefit, preying on customers fear and anxiety," said Tim Burke, Special Agent in Charge, United States Secret Service, Pittsburgh Field Office. "This case should serve as a strong deterrent for criminal actors considering taking part in related fraud schemes. The Secret Service along with our Western Pennsylvania COVID-19 Fraud Task Force partners will continue to investigate and arrest criminals who attempt to defraud citizens and businesses related to the COVID-19 pandemic."
According to the Criminal Complaint, Gindt II founded YouHealth, Inc., a website offering telemedicine and personalized nutrition, wellness and DNA genetics testing. Gindt II illegally obtained stolen COVID-19 test kits from a laboratory employee. He then advertised those stolen testing kit services for $135 to $200 on his YouHealth websites and in unsolicited emails that he sent to consumers in multiple states. As part of his advertising, Gindt II falsely and fraudulently misrepresented that he was affiliated with a certified lab that would test the samples and provide results. Gindt II sold the test kits to consumers – including in Western Pennsylvania – without any prior medical screening. Instead, once the testing kit services (including the nasal swabs used for collection and packaging to send to the lab) were ordered, Gindt would have them overnighted to consumers with a request to then complete a medical questionnaire to screen for COVID-19 symptoms. Gindt II sent the test kits to consumers via FedEx Overnight using the FedEx account in the name of an entity identified in the complaint as "Lab" and an individual identified as "T. A." Gindt II directed consumers to swab themselves and send their test kits to "Lab" for testing. The consumers never received any test results.
On April 15, 2020, the United States Secret Service, Pittsburgh Field Office Cyber Fraud Task Force, successfully shut down the websites for YouHealth.shop and YouHealth.me relating to this investigation.
This case began following a tip to the Western Pennsylvania COVID-19 Task Force from a western Pennsylvania resident who had received an email from [email protected] advertising the sale of at-home COVID19 testing services.
The public is urged to continue to report suspected fraud schemes related to COVID-19 by calling the Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline: 1-888-C19-WDPA or 1-888-219-9372 or send an email to the Western Pennsylvania COVID-19 Fraud Task Force’s email address: [email protected].
This case is being prosecuted by Assistant United States Attorney Robert S. Cessar. The United States Secret Service, the U.S. Postal Inspection Service, the Food and Drug Administration – Office of Criminal Investigations, and all members of the Western Pennsylvania COVID-19 Fraud Task Force conducted the investigation leading to the charges in this case. The United States Attorney’s Office for the Northern District of Georgia and the Federal Bureau of Investigation participated in the investigation of this case.
A criminal complaint is only a charge and is not evidence of guilt. A defendant may not be prosecuted unless, within 30 days, a grand jury has found probable cause to believe that he is guilty of an offense.
Miles City man admits illegal possession of gunRead the Press Release
BILLINGS – A Miles City man admitted today he illegally possessed a handgun after having been convicted of a felony, U.S. Attorney Kurt Alme said.
Braden Charles Losing, 25, pleaded guilty to being a prohibited person in possession of a firearm and to possession of a firearm while being a user of any controlled substance. For each charge, Losing faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set at a later time. Losing was detained.
The prosecution said in court documents that Losing had a prior felony drug conviction in Custer County. On Aug. 24, 2019, Glendive law enforcement officers responded to a report of a man passed out and unresponsive in a truck. Officers found Losing unconscious in the passenger seat and observed drug paraphernalia. Medical responders administered Naloxone and Losing regained consciousness. Officers executed a search warrant on the truck and found drug paraphernalia along with a 9mm semiautomatic handgun loaded with a magazine.
Losing admitted to officers that on the day of his overdose, he smoked meth and injected fentanyl and could not remember anything after that. Losing did indicate he knew the handgun was in the truck and that it "probably" would contain his DNA and fingerprints. He acknowledged he was a convicted felon and was prohibited from possessing the gun.
Assistant U.S. Attorney Karla Painter is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Mexican National Pleads Guilty to Being an Alien Unlawfully in the United States in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Ismael Huazo-Jardinez, 34, a Mexican citizen previously residing in Yuba City, pleaded guilty today to a charge of possessing a firearm while being an alien unlawfully in the United States, U.S. Attorney McGregor W. Scott announced.
According to court documents, Huazo-Jardinez is suspected of having been the driver in a fatal car accident in Sutter County that killed three people — the parents and one child of a family of four — when the vehicle crashed into their mobile home as they slept on May 4, 2019. Huazo‑Jardinez was arrested at the scene of the accident. Authorities impounded the vehicle, a Chevrolet Avalanche registered to Huazo-Jardinez, and later recovered a handgun from the vehicle’s center console. A database query revealed that the handgun had been reported stolen in Boise, Idaho.
Huazo-Jardinez is a citizen and national of Mexico who has twice been removed from the United States and has not been granted permission to return. As an alien unlawfully in the United States, Huazo-Jardinez is prohibited by federal statute from possessing a firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, Sutter County Sheriff’s Office, and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. Assistant U.S. Attorneys James Conolly and Shea Kenny are prosecuting the case. The Sutter County District Attorney’s Office is prosecuting Huazo-Jardinez in the state case related to the May 4, 2019, fatal car accident.
Huazo-Jardinez is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Aug. 6. Huazo-Jardinez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Justice Department Settles with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Randstad North America Inc. (Randstad), a global staffing agency with offices throughout the United States and a headquarters in Atlanta, Georgia. The settlement resolves the department’s claims that the staffing company’s South Plainfield, New Jersey location, violated the Immigration and Nationality Act (INA) by discriminating against lawful permanent residents when verifying their work authorization.
“Staffing agencies must properly train their employees not to require more or different work authorization documents than specified by law, because of a worker’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend Randstad for its commitment to ensuring that its hiring and onboarding activities comply with this law.”
Based on its investigation, the department concluded that Randstad’s South Plainfield location repeatedly discriminated against lawful permanent residents by requiring them to present specific documents, such as Permanent Resident Cards, even when they had presented sufficient documentation to prove their work authorization.
The investigation began because a lawful permanent resident filed a complaint with the department. The department also determined that the South Plainfield location subjected her to this discriminatory practice on two occasions and refused to hire her based on her citizenship status, even though she was authorized to work.
Under the terms of the settlement agreement, Randstad will pay a civil penalty of $135,000 for its unlawful document requests to lawful permanent residents and provide $909 in back pay to the worker who lost wages when she was turned away from the job. Additionally, Randstad will train its relevant South Plainfield location employees about the requirements of the INA’s anti-discrimination provision, including using a training assessment and attending a webinar provided by the Division’s Immigrant and Employee Rights Section (IER).
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Head of Chicago Non-Profit Organization Charged with Fraudulently Pocketing State Grants Intended for Economic Development ProjectsRead the Press Release
CHICAGO — The head of a Chicago not-for-profit organization fraudulently converted or misappropriated at least $200,000 in State of Illinois grants intended to develop suburban commercial properties and fund a job training program, according to a 15-count federal indictment.
YESSE YEHUDAH operated the not-for-profit organization Fulfilling Our Responsibilities Unto Mankind, also known as FORUM. From 2013 to 2016, Yehudah, on behalf of FORUM, applied for and received three grants totaling approximately $575,000 from the Illinois Department of Commerce and Economic Opportunity. Two of the grants were intended to develop commercial properties in south suburban Dolton, while the third was meant for FORUM to operate a weatherization jobs training program. The indictment alleges that Yehudah fraudulently converted substantial quantities of the grant funds by making materially false statements and submitting false documents to the DCEO. The indictment describes several of the alleged false statements, including when Yehudah represented to the DCEO that FORUM had spent almost all of a $100,000 grant on construction work, when, in fact, no actual construction work had begun.
The indictment was returned Wednesday in U.S. District Court in Chicago. Yehudah, 71, of Chicago, is charged with eight counts of bank fraud and seven counts of wire fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General. The DCEO provided valuable assistance during the investigation. The government is represented by Assistant U.S. Attorney Sean J.B. Franzblau.
In addition to the alleged fraud in obtaining the DCEO grants, the indictment accuses Yehudah of scheming to defraud a bank. After FORUM received similar development grants from the DCEO and other federal and local agencies, including the U.S. Department of Housing and Urban Development and the Community and Economic Development Association of Cook County, Yehudah issued checks from FORUM and another entity he controlled to various subcontractors, the indictment states. Yehudah then forged the subcontractors’ signatures – without their knowledge – to endorse the checks over to himself, the indictment alleges.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of bank fraud is punishable by up to 30 years in prison, while each count of wire fraud carries a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Harpers Ferry Felon Sentenced to Twenty-One Months in Federal Prison for Unlawfully Possessing a GunRead the Press Release
A convicted felon who illegally possessed a gun was sentenced May 6, 2020, to twenty-one months in federal prison.
Mitchell Kubik, age 32, from Harpers Ferry, Iowa, received the prison term after a guilty plea to illegally possessing a firearm as a felon. Statements at sentencing showed that Kubik kept a loaded, uncased rifle on a chair in the family room of a home he shared with three minor children. At the time, Kubik had a prior felony conviction for forgery.
Kubik was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kubik was sentenced to twenty-one months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Jacob Schunk and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1040-CJW.
Follow us on Twitter @USAO_NDIA.
Generic Pharmaceutical Company Admits to Fixing Price of Widely Used Cholesterol MedicationRead the Press Release
Apotex Corp., a generic pharmaceutical company headquartered in Florida, was charged with fixing the price of the generic drug pravastatin, the Department of Justice announced today. According to the one-count felony charge filed in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia, Apotex and other generic drug companies agreed to increase and maintain the price of pravastatin, a commonly prescribed cholesterol medication that lowers the risk of heart disease and stroke. The conspiracy began in May 2013 and continued through December 2015.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against Apotex. The company agreed to pay a $24.1 million criminal penalty and admit that it conspired with other generic drug sellers to artificially raise the price of pravastatin. The single count charges that Apotex communicated with competitors about the price increase and subsequently refrained from submitting competitive bids to customers that previously purchased pravastatin from a competing company. Under the DPA, Apotex has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. As part of the agreement, the parties will file a joint motion, which is subject to approval by the court, to defer for the term of the DPA any prosecution and trial of the charges filed against the defendant.
“Now, more than ever, we recognize and appreciate the importance of life-saving medications,” said Assistant Attorney General of the Department of Justice Antitrust Division, Makan Delrahim. “When the makers of those medications conspire to raise prices for profit, the most vulnerable among us suffer. That’s why we at the Antitrust Division are committed to pursuing the prosecution of antitrust crimes by the generic pharmaceutical industry.”
“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to fix prices and rig bids, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”
“Today’s announcement demonstrates that the FBI is dedicated to enforcing the law and investigating those who choose to collude at the expense of innocent Americans. The public should not have to pay a higher price for necessary medications because of corporate greed,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “During these uncertain times, we know that access to life-saving medication is of the utmost importance. The FBI, along with our partners, are focused on investigating and bringing those responsible to justice, on behalf of the American public.”
“Compromising the health and welfare of innocent people by artificially inflating the price of a much needed medication is not only morally wrong, but illegal,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “Preying on the public in this manner for the sake of financial gain is something that must be rooted out of the pharmaceutical industry. We will continue to hold accountable any company that engages in this type of conduct.”
Apotex is the fourth company to be charged in connection with antitrust violations in the generic pharmaceutical industry. The previous three corporate charges were resolved by deferred prosecution agreements. Four individuals have also been charged. Three entered guilty pleas and the fourth is awaiting trial.
The charged offense carries a statutory maximum penalty of a $100 million fine per count for corporations, which may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
The charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the U.S. Postal Service Office of Inspector General, the FBI’s Washington Field Office, the FBI’s Philadelphia Field Office, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging, and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Fort Wayne Woman Sentenced to 70 MonthsRead the Press Release
FORT WAYNE – Jamie Lynn Lantz, age 39, of Fort Wayne, Indiana was sentenced before U.S. District Court Judge Holly A. Brady for distribution of fifty grams or more of methamphetamine, announced U.S. Attorney Kirsch.
Lantz was sentenced to 70 months in prison followed by 2 years of supervised release.
According to documents in this case, on February 25, 2019, a confidential informant (CI) working with the Fort Wayne Police Department (FWPD) had contact with Lantz, who offered to sell the CI two ounces of methamphetamine. The CI and a FWPD Narcotics detective met Lantz later that evening at a location in downtown Fort Wayne, Indiana, where the CI provided Lantz $1,100.00 to purchase the methamphetamine. Lantz proceeded to meet with the CI and detective at a gas station in Fort Wayne, where she gave the CI a pouch containing two baggies of a crystal substance. The substance was tested and was found to be 55.4 grams of 100% pure crystal methamphetamine.
The case was investigated by the Drug Enforcement Administration and the Fort Wayne Police Department. The case was handled by Assistant United States Attorney Sarah E. Nokes.
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Fort Wayne Man Sentenced to 92 Months in PrisonRead the Press Release
FORT WAYNE – Lonnie J. Gardner, Jr. 32 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to Hobbs Act robbery, announced U.S. Attorney Kirsch.
Gardner was sentenced to 92 months in prison followed by 2 years of supervised release. The Court also ordered restitution in the amount of $10,998.00
According to documents in the case, Lonnie J. Gardner, Jr was arrested after a traffic stop on February 2, 2018. A joint investigation by federal and local law enforcement revealed that on January 5, 2018, at approximately 10:00 a.m., a suspect, later identified as Gardner, armed with a handgun and wearing a fake brown beard and a hat, robbed the Fort Financial Credit Union located inside of a Fort Wayne Meijer store. A total of $1,776.00 was taken during the robbery. The suspect, was seen fleeing in a black Jeep Commander.
Shortly thereafter, officers with the Allen County Police Department saw a black Jeep Commander similar to the getaway vehicle within one mile of the Meijer store. A traffic stop was conducted and the driver of the black Jeep Commander was identified as Lonnie Gardner, Jr. From a search of the Jeep Commander, law enforcement had seen a blue puffy coat and a camouflage stocking hat in the back seat. Officers also observed a receipt dated January 5, 2018, from a finance company near the Meijer store evidencing a payment made on the Jeep Commander. Detectives were able to later confirm that after robbing the Fort Financial Credit Union on January 5, 2018, Gardner went to that finance company and made a $400.00 payment on the Jeep Commander with a portion of the proceeds from the bank robbery.
Additionally, on January 10, 2018, at approximately 2:10 p.m., a suspect, later identified as Gardner, armed with a handgun, robbed the Wal-Mart Customer Service Center located inside an Auburn, Indiana Wal-Mart. A total of $4,457.00 was taken during this robbery. After the robbery, the suspect fled and was seen on surveillance video being picked up by another individual driving a black pickup truck.
After his arrest, Gardner admitted to his involvement in the two robberies.
This investigation was conducted by the Federal Bureau of Investigation, the Indiana State Police Special Investigations Section, the Allen County Police Department, the Fort Wayne Police Department, and the Auburn Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Fort Wayne Man ChargedRead the Press Release
FORT WAYNE – Henry E. Underwood, age 26, of Fort Wayne, Indiana was charged in a criminal complaint, filed yesterday, with being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
According to documents in this case, in December 2019, local police officers were dispatched to a residence after receiving a complaint of vandalism by gunfire. Officers arrived at the location and learned that an individual with the street name “Heezy” was the shooter. “Heezy” also known as Henry E. Underwood was located by police and at that time, police also recovered a firearm matching the description of the gun used by the shooter. Shell casings collected from the scene were identified as being fired from the firearm. A firearm similar to the one recovered by police is displayed in a video which showed two other individuals and Underwood also holding a loaded firearm magazine. Underwoood is a convicted felon, having been sentenced to 4 years in prison for a 2014 conviction for corrupt business practices.
United States Attorney Thomas L. Kirsch said, “We continue to remain focused on reducing gun crime in the Northern District of Indiana. This case is an excellent example of our coordination with ATF in partnership with the Fort Wayne Police and the Indiana State Police.”
The United States Attorney’s Office emphasizes that a Criminal Complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department with the assistance of the Indiana State Police Forensic Lab. The case is being handled by Assistant United States Attorney Stacey R. Speith.
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Florida woman sentenced for attempted transportation of illegal aliensRead the Press Release
GREAT FALLS— A Florida woman who admitted driving to Montana last year to try to pick up three illegal aliens from Mexico for transportation back to Florida was sentenced today to three years of probation, U.S. Attorney Kurt Alme said.
Lucia Marlene Mendez, 34, of Tampa, Fla., pleaded guilty in January to attempted transportation of an illegal alien.
Chief U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that at about 4:15 a.m. on Sept. 8, 2019, a Border Patrol agent saw a suspicious black 2018 Dodge Caravan, with a Florida license plate registered to a vehicle rental company, driving in Sweetgrass, about a block from where three illegal aliens from Mexico had been apprehended.
Border Patrol agents pulled over the Caravan, and Mendez, the driver, and a passenger, her boyfriend, were identified. Mendez is a U.S. citizen, but boyfriend was an undocumented alien from Mexico and in the country illegally. Mendez initially told agents that she was on vacation and was looking for a hotel. After being told that one of the undocumented aliens had already told an agent that she was coming to pick them up, Mendez acknowledged she was there to get them.
Mendez told agents that she was to be paid $600 for driving from Florida to Sweetgrass to get the illegal aliens. She was given $1,000 for gas and hotels for roundtrip travel to Montana and back to Florida. Mendez told agents that had she realized how far Sweetgrass was from Florida, she would have asked for more money.
Assistant U.S. Attorney Paulette Stewart prosecuted the case, which was investigated by the U.S. Border Patrol.
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Fiscal Federal, FBI y HSI Comparten Consejos Para Proteger a sus Hijos de la Explotación Sexual por el Internet Durante Covid-19Read the Press Release
Miami, Florida. – Autoridades federales del Sur de Florida les advierten a los padres que se mantengan alertos al peligro que enfrentan sus hijos de ser víctimas de los depredadores sexuales que buscan niños por el Internet durante la pandemia COVID-19.
"Los padres son la mejor defensa de un niño contra los depredadores sexuales en línea", dijo Ariana Fajardo Orshan, Fiscal Federal para el Distrito Sur de Florida. "Ahora que nuestros hijos están en casa y pasando más tiempo en el Internet debido a la crisis de salud, le sugiero a los padres que conversen francamente con sus hijos sobre las personas y las actividades que ellos deben evitar cuando estén en línea.”
"Dado que los niños pasan más tiempo en Internet, es especialmente importante que lo hagan de manera segura," dijo George L. Piro, Agente Especial Encargado, FBI, Miami. “Los delincuentes y los depredadores intentan desarrollar relaciones con jóvenes en línea, luego organizan reuniones para abusar de ellos u obligarlos a producir imágenes sexualmente explícitas a través de manipulaciones, regalos o amenazas, un delito llamado sextorsión. Los padres deben establecer reglas para sus hijos para controlar el uso adecuado del Internet. Sobre todo, ellos deben informar de inmediato a la policía de cualquier contacto inapropiado entre un adulto y sus hijos.”
“Miles de niños en el sur de Florida están practicando mayor uso del Internet, ya que la pandemia de COVID-19 ha cambiado el uso tradicional del aula a la instrucción virtual. Una mayor presencia en línea significa que los niños corren un riesgo aún mayor de encontrarse con depredadores cibernéticos que saben cómo explotar sus vulnerabilidades," dijo Anthony Salisbury, Agente Especial Encargado, Oficina de Investigaciones, Departamento de Seguridad Nacional (HSI, por sus siglas en inglés), Miami. “Ahora que las familias están en casa, muchos niños pasarán más tiempo usando las redes sociales, plataformas de juegos y otras aplicaciones en línea. Es un buen momento para garantizar que los niños y los padres practiquen la seguridad en línea y sepan cómo identificar posibles amenazas.”
Para ayudar a los padres con la amenaza cibernética que confrontan los niños durante la pandemia, la Fiscal Federal Fajardo Orshan, el Agente Especial Encargado Piro, de FBI, y el Agente Especial Encargado Salisbury, de HSI, recomiendan que los padres hagan lo siguiente: • Dígales a sus hijos que eviten comunicarse con extraños en línea.
• Monitoreen los chats, mensajes y comunicaciones de sus hijos con las personas, particularmente a través de sistemas de juego.
• Explíqueles a sus hijos que a veces los depredadores les pudieran ofrecer regalos a cambio de que los niños tomen y envíen imágenes o videos sexualmente explícitos. A veces, los depredadores harán amenazas. Los padres deben explicarles a sus hijos que estas son estrategias que los abusadores usan para obtener lo que quieren y, si esto sucede, que los jóvenes no se deben sentirse culpables. Se lo deben decir inmediatamente a sus padres.
•Infórmese sobre las herramientas de internet que usan sus hijos. Por ejemplo, configure el perfil específico de su hijo en teléfonos, iPads y computadoras para limitar los sitios web y el contenido al que puede acceder su hijo, y reciba una hoja semanal de uso para ese perfil. Asegúrese de que sus hijos usen la configuración de privacidad para restringir el acceso a sus perfiles en línea.
• Revisen las redes sociales y los perfiles y publicaciones de sus hijos. Hablen con sus hijos sobre lo que es apropiado decir y compartir.
• Explíqueles a sus hijos que una vez que imágenes o comentarios se publican en línea, otras personas pueden compartirlos. Explíqueles que todos pueden ver lo que publican en Internet y que nunca pueden borrar completamente lo que publican.
• Anime a los niños a elegir nombres de pantalla apropiados y crear contraseñas seguras. Los padres deben conocer todas las contraseñas y desalentar a los niños de mantener sus contraseñas en secreto.
• Establezca como regla con sus hijos que no pueden organizar una reunión con personas que hayan conocido en línea sin su conocimiento y supervisión.
La explotación infantil es un delito federal grave, que conlleva penas federales severas. Si sospecha de la posible explotación sexual de un niño, comuníquese con la policía. Para alertar a la oficina del FBI del sur de Florida, llame al 754-703-2000. Para alertar a la oficina de HSI del sur de Florida, llame al 866-347-2423. El Centro Nacional para Niños Desaparecidos y Explotados (NCMEC, por sus siglas en inglés) también acepta reportes de explotación sexual infantil. El numero de NCMEC es 1-800-843-5678.
La Fiscalía Federal, el FBI y HSI han enjuiciado varios casos de explotación infantil en el Distrito Sur de Florida. En diciembre de 2019, por ejemplo, un acusado recibió una sentencia de prisión de 50 años después que un jurado lo encontró culpable de orquestar una rueda de sextorsión dirigido a niños. La Fiscalía Federal y el FBI encabezaron el caso. Para obtener más información sobre este caso, visite https://www.justice.gov/usao-sdfl/pr/man-convicted-trial-miami-orchestrating-snapchat-sextortion-ring-targeted-children.En febrero de este año, un acusado recibió una sentencia de prisión de 20 años después de declararse culpable de obligar a una niña de 15 años a tomar fotografías y videos sexualmente explícitos de sí misma y enviarlos al teléfono celular del acusado. La Fiscalía Federal y HSI lideraron este caso. Para obtener más información sobre este caso, visite https://www.justice.gov/usao-sdfl/pr/loxahatchee-man-sentenced-20-years-federal-prison-production-child-pornography-and.
Encontrará notas de prensa que cubren otros casos federales enjuiciados en nuestro distrito en la sección "News” del sitio web de la Oficina de la Fiscal Federal, Distrito Sur de Florida: www.justice.gov/usao-sdfl.Federal Prosecutors Heighten Efforts to Combat Sexual Harassment in Housing during the COVID-19 PandemicRead 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 Trent Shores. Anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing should report that conduct to the Department of Justice.
As the pandemic continues to impact the ability of many people to pay rent on time, it has also increased worries over housing insecurity. The Department of Justice is investigating reports of housing providers responding to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Sadly, the COVID-19 public health crisis has financially impacted many of our friends and neighbors here in northeastern Oklahoma,” said U.S. Attorney Trent Shores. “While so many good Samaritans and landlords in our community have risen to the occasion to support those experiencing financial hardship, others have abused their authority by sexually harassing tenants. That is unacceptable. Rest assured that this U.S. Attorney’s Office will hold bad actors accountable for violating the Fair Housing laws. Victims should contact (844) 380-6178 or email [email protected] to report these crimes.”
“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.”
The Justice Department’s Sexual Harassment in Housing Initiative is 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 Northern District of Oklahoma by contacting our Affirmative Civil Enforcement attorneys at (918) 382-2748.
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.
For more information, go to www.justice.gov/crt/sexual-harassment-housing-initiative. A Department of Justice public service announcement on sexual harassment in housing can be found here.
Fayetteville Man Sentenced to 15 Years in Federal Prison on Child Pornography OffensesRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Brion Carey, age 35, of Fayetteville, Arkansas, was sentenced on May 6, 2020, to 180 months in federal prison without the possibly of parole followed by twenty years of supervised release on two Counts of Transportation of Child Pornography and one Count of Access the Internet with the Intent to View Child Pornography. The Honorable Timothy L. Brooks, United States District Judge, presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, in November of 2018, Homeland Security Investigations received information from the National Center for Missing and Exploited Children that an individual in Northwest Arkansas, later identified as Carey, uploaded numerous images of child pornography to a Google based email account. Further investigation revealed a second instance that the same Google email account was utilized to send an email containing child pornography. Carey was arrested in January of 2019. He was later indicted on three child pornography related charges. In December of 2019, a jury found Carey guilty of all charges.
This case was investigated by the Department of Homeland Security and the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorney Dustin Roberts and Assistant United States Attorney Carly Marshall prosecuted the case for the United States.
Fairfield man who defrauded family of more than $700,000 sentenced to prisonRead the Press Release
GREAT FALLS—A Fairfield man who admitted posing as a financial services manager to steal more than $700,000 from a family and then spent the money for his own benefit was sentenced today to 28 months in prison followed by three years of supervised release and ordered to pay restitution, U.S. Attorney Kurt Alme said.
Michael Lee Van Auken, 41, pleaded guilty in January to wire fraud, money laundering and filing a false tax return.
Chief U.S. District Judge Brian M. Morris presided and allowed Van Auken to self-surrender. Judge Morris ordered Van Auken to pay $719,340 restitution to the family and $165,195 restitution to the IRS.
"Montanans have a tradition of trust when it comes to doing business with one another. We’re also raised to pay our taxes. When someone violates that trust to embezzle a family's money for his own gain and avoids paying income taxes, he will be caught and prosecuted," U.S. Attorney Alme said.
“Special Agents pride themselves on untangling complex financial transactions created by fraudsters such as Van Auken,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “Along with protecting the integrity of our nation’s tax system, IRS-Criminal Investigation seeks to help individuals and entities who suffer financial harm at the hands of swindlers and bring them to justice.”
"Not only did the family suffer a devastating financial loss, but they are also left to deal with the consequences of Mr. Van Auken's misrepresented tax services," said Paul Haertel, special agent in charge of the Salt Lake City FBI. "The case should serve as a reminder that the FBI and our law enforcement partners will go after unscrupulous individuals who deceive and defraud unwitting people of their hard-earned money. We also encourage the public to do their due diligence and research when looking to invest and to immediately report any fraud to police or the FBI."
In court documents filed in the case, the prosecution said Van Auken formed various business entities to hide his embezzlement from a Montana family. Van Auken offered to provide the family various financial services, including investment opportunities, filing of personal and business taxes and the creation of wealth management plans.
Investigators found that Van Auken failed to provide the services as promised. Instead, Van Auken used the money for personal expenses and invested in foreign currency trading to try to recover amounts owed, none of which the victims authorized. Van Auken defrauded the victims of approximately $719,340.
As part of the scheme, Van Auken misrepresented his background to gain the victims' trust by claiming he had received a law degree and an accounting degree. Van Auken further misrepresented the value of the "investments" to the victims by creating fraudulent documents and telling them the investments were doing well, when in fact, the investments did not exist and the money was not invested as claimed.
In addition, Van Auken created a wealth management plan that he claimed would double the victims' net worth in five years. The plan induced the victims to use Van Auken's services. When the victims asked Van Auken return their funds, he failed to do so.
Van Auken claimed he would invest the victims' money in a new drill bit for oil drilling and fracking industries. Instead, Van Auken invested the money in foreign currency trading in an attempt to repay the funds owed and embezzled the money for his own personal expenses.
As part of the scheme, Van Auken laundered $210,000 he received from the victims for the drill bit investment by spending it on unauthorized expenditures and transferring $100,000 to a personal account.
Van Auken also filed a false tax return in 2018 for tax year 2014 in which he claimed a total income loss of $118,839, but did not claim $295,340 he received from defrauding the victims. The additional income resulted in $76,819 due in taxes. The investigation also showed that Van Auken owed $165,195 in taxes for the years 2013-2015.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the FBI and IRS.
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El Departamento de Jusiticia Llega a un Acuerdo con una Agencia de Empleo que Resuelve unas Denuncias de Discriminación Releacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Randstad North America, Inc. (Randstad), una agencia de empleo internacional con oficinas por todo Estados Unidos y con sede en Atlanta, Georgia. El acuerdo resuelve las demandas interpuestas por el Departamento que mantienen que la oficina de la agencia de empleo que está ubicada en South Plainfield, Nueva Jersey vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a residentes permanentes legales al verificar su autorización para trabajar.
«Agencias de empleo deben capacitar adecuadamente a sus empleados instruyendoles a no requerir documentos de autorizacion para trabajar adicionales o diferentes a los que la Ley especifica por motivos del estatus de ciudadanía de un trabajador», afirmó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Felicitamos a Randstad por su compromiso de garantizar que sus actividades de contratación e incorporación cumplen con esta ley».
Con base en su investigación, el Departamento concluyó que la oficina de Randstad en South Plainfield discriminó habitualmente a residentes permanentes legales al requerir que presentasen documentos innecesarios y específicos, tales como tarjetas de residente permanente, incluso cuando ya habían presentado suficiente documentación como para demostrar su autorización para trabajar.
La investigación comenzó porque un residente permanente legal presentó una demanda ante el Departamento. El Departamento también determinó que la oficina en South Plainfield la había sujeto a esta práctica discriminatoria en dos ocasiones y que se había negado a contratarla por motivos de su estatus de ciudadanía, a pesar de disponer de autorización para trabajar.
Conforme los términos del acuerdo conciliatorio, Randstad pagará una sanción civil que asciende a 135.000 $ por pedir documentos ilegalmente a residentes permanentes legales y ofrecerá $909 por concepto de pagos retroactivos a la trabajadora que perdió su sueldo al ser denegado el trabajo. Además, Randstad capacitará a los empleados relevantes de su oficina en South Plainfield acerca de los requisitos de la disposición antidiscriminatoria de la INA, lo que incluye usar una evaluación de capacitación y participar en un seminario en línea brindada por la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la DIvisión.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias puedenpresentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected] o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery .
Dominican National Sentenced for Fraudulently Applying for Passport and MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston in connection with making fraudulent statements on a passport application and an application for MassHealth benefits.
Hidel Romero Sanchez, 42, a Dominican national residing in Dorchester, was sentenced by U.S. District Court Judge Denise J. Casper to time served (approximately 14 months in prison), 18 months of supervised release, and ordered to pay forfeiture and restitution of $26,000 to MassHealth and $3,800 to Massachusetts Department of Transitional Assistance. In January 2020, Romero Sanchez pleaded guilty to making a false statement on a passport application and a false statement on an application for MassHealth benefits.
Romero Sanchez admitted to using the identification of a U.S. citizen to obtain a Connecticut driver’s license, a U.S. passport, MassHealth benefits, Supplemental Nutritional Assistance Program (SNAP) benefits, and subsidized housing benefits. He also admitted to using this false identity in employment documents, including when submitting a criminal record check form for a job at a local children’s hospital, and thus hiding prior cocaine trafficking charges that were pending under his true name.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Bill Abely of Lelling’s Major Crimes Unit prosecuted the case.
DOJ settles False Claims Act allegations with Seattle physician, his pain clinics, and his drug-testing labRead the Press Release
Seattle - The U.S. Department of Justice and the Washington State Attorney General today settled a False Claims Act investigation involving Seattle Pain Center, Northwest Analytics, and owner/physician Dr. Frank Danger Li, announced First Assistant U.S. Attorney Tessa M. Gorman. Dr. Li agreed to pay $2.85 million to state and federal authorities to settle allegations his companies billed government entities for medically unnecessary urine drug tests. Dr. Li’s seven pain clinics closed in July 2016 when the Washington State Medical Quality Assurance Commission suspended his medical license for improperly monitoring prescriptions of powerful opioids. Today’s settlement is a civil resolution unrelated to any criminal investigation or any action by state health regulators.
“Prescribing massive quantities of addictive opioids fed a crisis that continues to grip our community,” said First Assistant U.S. Attorney Gorman. “This billing for unnecessary urine tests is a way Dr. Li and his clinics profited on the pain of others. It is appropriate that we return these dollars to the government entities that were defrauded.”
“Our investigation helped stop Dr. Li and the providers he supervised from continuing to prescribe dangerous and excessive amounts of opioids,” Ferguson said. “Now we’re reclaiming more than one million Medicaid dollars for the unnecessary drug tests he ordered for his opioid prescription practice. These recouped dollars will cover medical costs for vulnerable Washingtonians, as it was intended.”
According to the settlement agreement, in addition to his pain clinics, Dr. Li owned drug-testing labs in Seattle and Everett. Northwest Analytics did urine drug testing for Li’s clinics. In July 2013, Li instituted a policy that, in nearly every instance, each patient being treated at Seattle Pain Centers had to have a full urine drug test panel every time they were seen by a provider. This policy resulted in thousands of medically unnecessary tests. The testing protocol did not follow state standards which recommended random testing of up to four times per year.
“Physicians have a responsibility to provide appropriate medical care and to bill federal health care programs properly. When Dr. Li – who our agency excluded from participating in Medicare and Medicaid programs – billed for medically unnecessary lab tests, our investigators acted decisively to hold him accountable,” said Special Agent in Charge Steven J. Ryan of HHS-OIG. “Physicians tempted to engage in such fraudulent activities should remind themselves of their professional obligations and the consequences of flouting them.”
“Performing needless medical services, especially those motivated by financial gain and not medical necessity, drains resources from legitimate patient care,” said Bryan Denny, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our investigative partners will fully investigate and bring to justice those who deprive the Department of Defense of limited resources needed for the healthcare of our military, veterans, and their families.”
The settlement funds are divided as follows: restitution to Medicare of $1,590,265; restitution to TriCare of $123,000; restitution to the Railroad Retirement Board of $2,672, and restitution to Medicaid of $1,134,151 ($453,796 federal funds and $680,354 state funds). The settlement agreement details how the funds are to be paid over five years and various ways that the government claims are secured. The settlement amounts are based in part on Dr. Li’s ability to pay.
Dr. Li does not admit any wrongdoing as part of this settlement.
The investigation was coordinated by the Health and Human Services Office of Inspector General (HHS-OIG).
The matter was handled by Assistant United States Attorney Kayla Stahman as part of the U.S. Attorney’s Office’ Affirmative Civil Enforcement Unit. The Washington State Attorney General’s Medicaid Fraud Unit participated in the investigation and was represented in the settlement by Senior Counsel Carrie L. Bashaw.
2020.04.06_final_dr_li_settlement_agreement_-_signed_by_all_parties.pdfCulver Man Sentenced to 57 Months in Federal Prison for Statewide Identity Theft and Fraud SpreeRead the Press Release
PORTLAND, Ore.—Garrett Luke Pruitt Rexroad, 29, of Culver, Oregon, was sentenced today to 57 months in federal prison and four years’ supervised release for a yearlong identity theft and fraud spree that spanned seven Oregon counties and cheated more than 100 individuals, businesses, financial institutions, and communities out of $190,000.
According to court documents, investigators first learned of Pruitt Rexroad’s conduct in April and May of 2017 when he used a stolen credit card to reserve several Portland hotel rooms. When police arrested him, he possessed an identification card and 26 credit and debit cards in the name of a single victim. He was charged in Multnomah County Circuit Court and released from custody.
Between May and August of 2017, while on pre-trial release, Pruitt Rexroad made several more fraudulent transactions in Lane County and Redmond, Oregon using the stolen credit card information of three additional victims. He was arrested, charged in Lane County Circuit Court, and again released from custody.
On November 6, 2017, Pruitt Rexroad led law enforcement officers from multiple agencies on a high-speed pursuit in a stolen vehicle from Seaside to Astoria, Oregon while under the influence of methamphetamine and alprazolam. After driving over a spike strip, he abandoned the car and fled on foot. Police continued to pursue and eventually arrested Pruitt Rexroad. Officers searched the stolen vehicle and found a wallet containing the driver’s license of another victim, 50 credit cards in different names, credit card readers, lists of credit card numbers, an unloaded .22 caliber handgun and $200 in cash. Pruitt Rexroad was charged in Clatsop County Circuit Court and, after posting bond, was released from custody a third time.
Pruitt Rexroad’s crime spree continued just two weeks later when he used a stolen credit card to rent two hotel rooms in Lake Oswego, Oregon. Police searched the abandoned rooms and found copies of fraudulent Oregon driver’s licenses, bags of stolen mail, and packaging for prepaid debit cards. Between November 22, 2017 and December 20, 2017, Pruitt Rexroad used fraudulent credit cards to purchase more than $1,600 in cigarettes from several Plaid Pantry stores in the Portland area. Then, on December 6, 2017, he stole an ATM containing approximately $10,000 from a McMenamin’s Hotel in Gearhart, Oregon.
He was arrested on December 24, 2017 in West Linn, Oregon in possession of a stolen vehicle after a concerned citizen reported seeing him steal a license plate from a neighbor’s truck. Upon his arrest, Pruitt Rexroad possessed a laptop, credit card writer, and a single credit card used to make several other phone fraudulent credits cards. The stolen vehicle was found to contain various burglary tools, a large saw, cutting blades, ski mask, hand truck, can of mace, and marijuana. A search of Pruitt Rexroad’s laptop revealed additional evidence of fraudulent retail purchases and identity theft crime. On January 10, 2018, he was charged in Clackamas County Circuit Court and released from custody a fourth time.
Between March and May 2018, Pruitt Rexroad’s continued criminal conduct resulted in additional charges in Washington, Umatilla, and Hood River County Circuit Courts. He was repeatedly released from custody only to commit further crimes. Finally, on May 25, 2018, Hood River Police found Pruitt Rexroad and three others at the side of a road removing tires from a stolen vehicle. The officers arrested him after a short foot chase. Pruitt-Rexroad has been in custody ever since.
During sentencing, U.S. District Court Judge Michael W. Mosman ordered Pruitt Rexroad to pay $55,824 in restitution.
On October 7, 2019, Pruitt Rexroad pleaded guilty to one count each of access device fraud, aggravated identity theft, and possession of unauthorized access devices.
This case was investigated by the U.S. Postal Inspection Service with assistance from the Astoria Police Department, Clackamas County Sheriff’s Office, Clatsop County Sheriff’s Office, Forest Grove Police Department, Gearhart Police Department, Gresham Police Department, Hood River Police Department, Lake Oswego Police Department, Oregon City Police Department, Oregon State Police, Port of Portland Police Department, Portland Police Bureau, Redmond Police Department, Sandy Police Department, Washington County Sheriff’s Office, and West Linn Police Department. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
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.
Council Bluffs Man Sentenced to Prison for Methamphetamine OffenseRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on May 6, 2020, David Walling, Jr., age 37, of Council Bluffs, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for possession with intent to distribute methamphetamine. Walling was sentenced to 134 months in prison to be followed by a five-year term of supervised release.
On July 13, 2019, law enforcement attempted to stop Walling, who was operating a motorcycle, in a parking garage in Council Bluffs. Walling failed to stop for police and took off at a high rate of speed. Walling was stopped before he could exit the parking garage. At the time of Walling’s arrest, he was found in possession of 43.34 grams of actual methamphetamine. This matter was investigated by the Council Bluffs Police Department and the Southwest Iowa Narcotics Enforcement Task Force.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Citizen of Ghana Sentenced for Assaulting A Federal Officer and Possessing MarijuanaRead 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 Nana Dwomah Yeboah, 36, a citizen of the Republic of Ghana, who was convicted of assaulting a federal officer and possession of a controlled substance, was sentenced to serve 41 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that on the morning of December 24, 2017, U.S. Customs and Border Protection Officers were conducting a routine patrol of the Greyhound Bus Station on Cumberland Street in Rochester. Officers observed the defendant enter the bus station and place a package on a bench in the lobby area. Yeboah then exited the station, leaving the package unattended. After several minutes, officers searched the abandoned package to ensure that it did not pose a threat to the public. Inside, officers discovered a quantity of marijuana that appeared to be packaged for sale.
After several minutes, the defendant returned to the area and was questioned by officers, who quickly determined that he was not a U.S. Citizen. As they attempted to detain and identify Yeboah, he fled the station, leading officers on a short chase. Yeboah was ultimately apprehended, but proceeded to fight with officers for several minutes. One of the officers suffered facial injuries that required treatment at Rochester General Hospital. The defendant was ultimately brought under control with the assistance of civilian bystanders. Subsequent investigation determined that Yeboah was in possession of an additional quantity of marijuana.
The sentencing is the result of an investigation by Customs and Border Protection, Office of Professional Responsibility, under the direction of Special Agent-in-Charge Vance Kuhner; with assistance from the U.S. Border Patrol, under the direction of Chief Eduardo Payan; and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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Cities of Niagara Falls and Jamestown Receive Funding from the Justice Department to Fight COVID-19Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that the City of Niagara Falls and the City of Jamestown have been awarded grants under the Coronavirus Emergency Supplemental Funding Program. Niagara Falls will receive $142,134, and Jamestown will receive $56,255 from the Bureau of Justice Assistance.
“I am pleased that two additional municipalities in the Western District of New York will be receiving this emergency supplemental funding,” stated U.S. Attorney Kennedy. “Our first responders on the front lines need resources to continue to respond to the coronavirus.”
In April, Niagara County and Monroe County were awarded $58,008 and $52,669 respectively from the Bureau of Justice Assistance.
Projects or initiatives which may be funded with the monies include:
• Overtime costs
• Equipment and supplies (including PPE for law enforcement and medical personnel); • Hiring; • Training; • Travel expenses, particularly related to the distribution of resources to the most impacted areas; and
• Addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.A total of $1,700,000 in grant funding is available to cities, towns, and counties in the WDNY.
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Central Falls Man Arraigned on Federal Charge Related to Pawtucket ShootingRead the Press Release
PROVIDENCE – A Central Falls man wanted on a federal arrest warrant charging him with being a felon in possession of ammunition in connection with a shooting in Pawtucket on April 7, 2020, during which a parked vehicle was riddled with bullets, was arrested today by members of the Rhode Island Violent Fugitive Task Force and Pawtucket Police.
It is alleged that Jayquan Parker, 25, fired at least 22 rounds into a parked vehicle and nearby garage, and then drove off. Based on information developed by Pawtucket Police and gleaned from surveillance videos recorded in the surrounding area of the shooting, Pawtucket Police identified Parker as the alleged shooter. He was located and arrested by the Fugitive Task Force and Pawtucket Police on April 19, and arraigned on multiple state charges.
According to court documents filed in U.S. District Court, a review of the matter determined that prior to his arrest in connection with the April 7 shooting, Parker had been convicted and sentenced in Rhode Island state court on felony charges on multiple occasions. As a result, in addition to the state charges brought against Parker, for which he is currently free on bail, a federal criminal complaint was issued charging him with being a felon in possession of ammunition.
Parker appeared today before U.S. District Court Magistrate Judge Patricia A. Sullivan on a criminal complaint charging him with felon in possession of ammunition and was ordered detained, announced United States Attorney Aaron L. Weisman, United States Marshal Wing Chau, Pawtucket Police Chief Tina Goncalves, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case in U.S. District Court is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Rhode Island Violent Fugitive Task Force is run by the U.S Marshals Service along with the Rhode Island State Police. The Task Force is comprised of members from the U.S. Marshals Service, the Rhode Island State Police, and the Warwick, Cranston, Coventry, East Providence, Middletown, Pawtucket, Portsmouth and Providence Police Departments who work full time to track down and apprehend the most violent and dangerous fugitives both within the United States and Internationally.
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California man admits blackmailRead the Press Release
MISSOULA – A California man accused of threatening to inform on a person if he wasn't paid money today admitted blackmail charges, U.S. Attorney Kurt Alme said.
Bryan Gregg Waterfield Nash, 56, of Woodside, CA, pleaded guilty to blackmail. Nash faces a maximum one year in prison, a $100,000 fine and one year of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided and continued Nash's release pending further proceedings. Sentencing is set for August 7, 2020.
In documents filed in the case, the prosecution said that the blackmail began in December 2013 and ran until about June 2019 in Whitefish and in northern California. Nash knew the victim, identified as John Doe 1, for many years. Beginning in about December 2013, Nash frequently communicated with John Doe 1 in person and electronically and with his family, friends and colleagues.
Many of Nash's communications demanded money from John Doe 1, and he also accused the victim of committing federal crimes. Nash alleged the victim could be investigated by the IRS for tax fraud. In a text message sent in April 2016, Nash told the victim: "This brings all your IRS stuff to the public eye even more. This will be huge news. You were scamming the IRS." During the same time period Nash was accusing the victim of breaking federal law, he repeatedly asked for financial assistance.
When John Doe 1 stopped responding to communications from Nash, Nash intensified communications with the victim's family, friends, employees and privately-retained lawyers. Many of the messages referenced the victim being investigated by the IRS or FBI, and Nash repeatedly asked to meet with the victim's lawyers to "settle" with the victim. Nash's requests to settle with the John Doe 1 were in consideration for not filing a civil complaint against the victim or reporting his alleged criminal transgression to law enforcement.
Assistant U.S. Attorneys Tim Racicot and Ryan Weldon are prosecuting the case, which was investigated by the FBI.
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Atlantic County Man Admits Personal Income Tax EvasionRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted evading payment of income taxes on money he diverted from his businesses, U.S. Attorney Craig Carpenito announced.
Coby Frier, 53, of Atlantic City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an information charging him with one count of income tax evasion.
According to documents filed in this case and statements made in court:
Frier was one of the owners of several bars, restaurants, and clubs in Atlantic City, New Jersey. Frier admitted that from 2012 through 2015, he took cash skimmed from the businesses and deposited those funds into his personal bank accounts. He later used those funds for personal expenses, including luxury hotels, department store purchases, and restaurants. Frier also admitted to using cash skimmed from the businesses to make down payments on luxury vehicles and to attempting to evade detection by the IRS by keeping these down payments under the $10,000 cash reporting threshold.
For 2012 through 2015, Frier did not report as income the cash skimmed from the businesses, did not file personal income tax returns, and did not pay any personal income taxes. Frier admitted that he owed to the United States tax on this unreported income.
The charge to which Frier pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 11, 2020.
U.S. Attorney Carpenito credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Deputy U.S. Attorney Matthew J. Skahill and Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Accused Dog Abuser Sentenced to Ten Years on Federal Gun ChargeRead the Press Release
St. Louis, MO –Paul “Paco” Garcia, 40, of Barnhart, MO, appeared today before U.S. District Judge Catherine D. Perry, who sentenced him to ten years in the Bureau of Prisons for being a felon in possession of a firearm.
According to the plea agreement, law enforcement agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Jefferson County Sheriff’s Office began investigating Garcia in August, 2018 for trafficking in methamphetamine in an around Jefferson County.
On September 14, 2018, a Jefferson County police officer stopped Garcia for speeding near Highway MM at the Old Highway 21 interchange in Jefferson County, Missouri. The officer asked Garcia to step out of the vehicle and subsequently observed Garcia appearing to reach for a baseball bat located in the car. When officers searched the car they located a silver baseball bat and a firearm in the glove compartment. The firearm was a Rock Island Armory .38 SPL revolver. A further search of the car revealed a small black bag containing metal knuckles and additional .38 caliber bullets. Garcia admitted he kept the revolver in his glove box for protection in connection with his methamphetamine trafficking activities
This case was investigated by the Jefferson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Lisa Yemm handled the case for the U.S. Attorney’s Office.
Garcia remains charged in Jefferson County by the State of Missouri with Animal Abuse in the Second Degree and Armed Criminal Action. Those charges stem from allegations that Garcia threw a Dachshund from his car window after binding its muzzle and legs with tape during February, 2019. Those charges are mere accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. That case is being investigated by the Jefferson County Sheriff’s Office and prosecuted by the Jefferson County Prosecuting Attorney’s Office.
6 May 2020
Western Massachusetts Office Supply Company to Pay $450,000 to Resolve Allegations it Knowingly Caused False Claims to Federal AgenciesRead the Press Release
ALBANY, NEW YORK – Great Barrington, Massachusetts-based G.A. Blanco & Sons, Inc. (G.A. Blanco), has agreed to pay the United States $450,000 to resolve allegations that it caused a now defunct company, Essential Business Products, Inc. (Essential), to submit false claims for payment to the government in connection with small businesses set-aside contracts. The announcement was made by United States Attorney Grant C. Jaquith, Department of Energy Inspector General Teri L. Donaldson, and Special Agent in Charge Leo Lamont of Naval Criminal Investigative Service, Northeast Field Office.
“We are committed to curbing fraud by those who contract with the federal government,” said United State Attorney Jaquith. “Congress set aside contracting opportunities for small, disadvantaged businesses to help them grow. We will continue to use the False Claims Act to hold unqualified companies accountable when they fraudulently take those opportunities from deserving businesses.”
G.A. Blanco was previously certified by the U.S. Small Business Administration (SBA) as a “small disadvantaged business,” meaning a small business owned and controlled by a socially and economically disadvantaged individual. In May 2006, GAB graduated from that program for exceeding the income threshold, and became ineligible to obtain small business set-aside contracts. The following year, G.A. Blanco approached one of its employees and suggested that he start a minority-owned small business to bid on set-aside contracts and that the employee use G.A. Blanco as a supplier. He agreed. G.A. Blanco helped its employee prepare the necessary paperwork to form Essential and obtain SBA certification. In 2007, in connection with the SBA certification process, G.A. Blanco prepared a letter that falsely represented that its employee had resigned when, in reality, he continued to perform work for G.A. Blanco from 2007 through 2018. G.A. Blanco also helped run Essential by setting the prices for Essential’s products, preparing its bids for government contracts, and maintaining signature authority for its bank account. While, on paper, the two companies had separate offices; in reality, they worked out of shared office space. Essential dissolved in September 2019.
DOE-OIG Inspector General Donaldson stated: “The Department of Energy’s Office of Inspector General remains committed to ensuring the integrity of the Department’s programs. By diverting contracts and benefits intended for legitimate small disadvantaged businesses to an ineligible company, G.A. Blanco undercut the purpose of the Small Disadvantaged Business program. We will continue to aggressively investigate these matters to protect the Department and the American taxpayers. We appreciate the efforts of the U.S. Attorney’s Office and our other law enforcement partners.”
NCIS Special Agent in Charge Lamont said: “Fraud is not a victimless crime, and puts our armed forces at greater risk. The American taxpayers are also victims as the flagrant and wrongful misuse of American taxpayer dollars not only erodes the public trust but also jeopardizes the Department of Navy’s efforts to obtain the best technology, services, and equipment for our brave men and women in uniform. By conspiring to manipulate the contracting process through lies and deceit, those involved have drained significant resources from the Navy and have made it harder for legitimate companies that play by the rules.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, DOE-OIG, and NCIS. The Defense Criminal Investigative Service also assisted with the investigation. The United States was represented by Assistant U.S. Attorney Adam J. Katz.
Washington State Resident Charged with Attempting to Smuggle Firearms into Mexico through Eagle Pass Port of EntryRead the Press Release
In Del Rio today, federal authorities filed a criminal complaint against 51–year-old Miguel Diaz-Calderon for attempting to smuggle numerous firearms, ammunition, gun magazines and other gun parts into the Republic of Mexico, announced U.S. Attorney John F. Bash; Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division; and, U.S. Customs and Border Protection (CBP) Eagle Pass Port Director Paul Del Rincon.
According to the complaint, CBP officers arrested the Union Gap, WA, resident yesterday afternoon at the Eagle Pass International Bridge #2 while trying to export 27 handguns, 12 rifles, over 10,000 rounds of ammunition, 70 gun magazines and an assortment of other gun parts concealed inside his truck. Authorities also seized $5,000 in U.S. Currency. The complaint further alleges that Diaz told investigators that he was expecting to be paid another $5,000 upon delivery of the contraband.
Upon conviction, Diaz faces up to ten years in federal prison. He remains in custody at this time.
HSI is investigating this case. The Eagle Pass Police Department’s Auto Theft Unit and the Maverick County Sheriff’s Office assisted CBP during the outbound inspection. Assistant U.S. Attorney John Kennedy is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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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 Reaches Settlement to Recover More Than $49 Million of Assets Acquired with Funds Misappropriated from 1MDBRead the Press Release
LOS ANGELES – The Department of Justice has reached a settlement of its civil forfeiture cases against more than $49 million worth of assets acquired by Khadem al-Qubaisi using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
The assets subject to the settlement agreement include the sale proceeds of high-end real estate acquired in Beverly Hills, as well as a luxury penthouse in New York City that al-Qubaisi allegedly acquired with funds traceable to misappropriated 1MDB monies.
With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the United States will have recovered or assisted in the recovery of nearly $1.1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest civil forfeiture ever concluded by the Justice Department.
“This settlement is another milestone in the asset forfeiture cases related to the 1MDB money laundering scheme – cases that have already led to the recovery of well over $1 billion,” said United States Attorney Nick Hanna. “Funds stolen from the people of Malaysia were used to acquire high-end properties, including residences each worth tens of millions of dollars. The cases resolved today continue to demonstrate our commitment to protecting the integrity of American financial institutions and ensuring that corrupt players cannot use our nation to conceal stolen riches.”
“As alleged in the forfeiture complaints, Khadem al-Qubaisi and others laundered billions of dollars embezzled from 1MDB, a Malaysian investment fund. Instead of benefitting the people of Malaysia, as intended, these funds were used by the co-conspirators to finance lavish acquisitions of personal property, luxury real estate and business investments in the United States and elsewhere,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This settlement agreement ensures that nearly $50 million in stolen funds will be recouped, and sends a clear signal that the Department of Justice is committed to tracing, seizing, and forfeiting criminal proceeds that are laundered through the U.S. financial system.”
Under the terms of the settlement, the Atlantic Property Trust, which oversees the assets at issue in these forfeiture actions, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustee, who is the wife of al-Qubaisi, is also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets.
“As this case demonstrates, when it comes to corruption, the FBI’s reach is long and uncompromising,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Our extensive investigation into Khadem al-Qubaisi and his co-conspirators has directly led to the return of over $1 billion to the people of Malaysia. The FBI, through our International Corruption Squads, shows this same level of commitment in all our international corruption investigations. Let this stand as a message to anyone who may consider using United States markets for money laundering: you will not prosper and you will be investigated and brought to justice.”
“This settlement is another step in our ongoing effort to return the embezzled funds misappropriated from 1Malaysia Development Berhad to the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigation. “While tens of millions of dollars were appropriately surrendered by al-Qubaisi’s family, the real win is the unprecedented international cooperation shown in this case that will have a lasting impact for the people in Malaysia now and well into the future.”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including al-Qubaisi, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
The FBI’s International Corruption Squads in New York City and Los Angeles and IRS Criminal Investigation are investigating the case.
The case is being prosecuted by Assistant United States Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Asset Forfeiture Section, along with Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy, Joshua L. Sohn and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) at the Department of Justice. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The Justice Department appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The assets being forfeited subject to this settlement are in addition to the more than $1 billion in assets the United States previously forfeited in connection with the Department of Justice’s 1MDB investigation. Following the conclusion of today’s settlement, several civil forfeiture complaints arising out of the 1MDB criminal conspiracy remain pending against assets associated with other alleged co-conspirators.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
United States Reaches Settlement to Recover More Than $49 Million Involving Malaysian Sovereign Wealth FundRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture cases against assets acquired by Khadem al-Qubaisi using funds allegedly misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
These assets are estimated to be worth more than $49 million. With the conclusion of this settlement, together with the prior disposition of other related forfeiture cases, the United States will have recovered or assisted in the recovery of nearly $1.1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.
“As alleged in the forfeiture complaints, Khadem al-Qubaisi and others laundered billions of dollars embezzled from 1MDB, a Malaysian investment fund,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Instead of benefitting the people of Malaysia, as intended, these funds were used by the co-conspirators to finance lavish acquisitions of personal property, luxury real estate and business investments in the United States and elsewhere. This settlement agreement ensures that nearly $50 million in stolen funds will be recouped, and sends a clear signal that the Department of Justice is committed to tracing, seizing, and forfeiting criminal proceeds that are laundered through the U.S. financial system.”
“This settlement is another milestone in the asset forfeiture cases related to the 1MDB money laundering scheme – cases that have already led to the recovery of well over $1 billion,” said U.S. Attorney Nick Hanna of the Central District of California. “Funds stolen from the people of Malaysia were used to acquire high-end properties, including residences each worth tens of millions of dollars. The cases resolved today continue to demonstrate our commitment to protecting the integrity of American financial institutions and ensuring that corrupt players cannot use our nation to conceal stolen riches.”
“As this case demonstrates, when it comes to corruption, the FBI's reach is long and uncompromising,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. “Our extensive investigation into Khadem al-Qubaisi and his co-conspirators has directly led to the return of over $1 billion to the people of Malaysia. The FBI, through our International Corruption Squads, shows this same level of commitment in all our international corruption investigations. Let this stand as a message to anyone who may consider using United States markets for money laundering: you will not prosper and you will be investigated and brought to justice.”
“This settlement is another step in our ongoing effort to return the embezzled funds misappropriated from 1Malaysia Development Berhad to the people of Malaysia,” said Chief Don Fort of IRS Criminal Investigation (IRS-CI). “While tens of millions of dollars were appropriately surrendered by al-Qubaisi’s family, the real win is the unprecedented international cooperation shown in this case that will have a lasting impact for the people in Malaysia now and well into the future.”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including al-Qubaisi, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people.
Under the terms of the settlement, the Atlantic Property Trust, which oversees the assets at issue in these forfeiture actions, agreed to forfeit all assets subject to pending forfeiture complaints in which they have a potential interest. The trustee, who is the wife of al-Qubaisi, is also required to cooperate and assist the Justice Department in the orderly transfer, management and disposition of the relevant assets. The assets subject to the settlement agreement include the sale proceeds of high-end real estate acquired in Beverly Hills as well as a luxury penthouse in New York City that al-Qubaisi allegedly acquired with funds traceable to misappropriated 1MDB monies.
The assets being forfeited subject to this settlement are in addition to the more than $1 billion in assets the United States previously forfeited in connection with the Department of Justice’s 1MDB investigation. Following the conclusion of today’s settlement, several civil forfeiture complaints arising out of the 1MDB criminal conspiracy remain pending against assets associated with other alleged co-conspirators.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy, Joshua L. Sohn and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. 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] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
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’s Office Honors California Peace Officers Who Have Died in the Line of DutyRead the Press Release
SACRAMENTO, Calif. — During California State Peace Officers’ Memorial Week, the U.S. Attorney’s Office honors and remembers the California peace officers who have died in the line of duty in the preceding year.
Three of the California peace officers being remembered this week are from the Eastern District of California— Officer Natalie Corona of the Davis Police Department, Officer Tara O’Sullivan of the Sacramento Police Department, and Deputy Brian Ishmael of the El Dorado County Sheriff’s Department. The United States Attorney’s Office brought federal charges in full cooperation and consultation with the El Dorado District Attorney’s Office related to the marijuana cultivation that resulted in the death of Deputy Ishmael. In November 2019, a federal grand jury returned a four-count indictment charging four men with marijuana cultivation and firearms offenses.
“We are deeply grateful for these men and women who protect us all,” said U.S. Attorney McGregor W. Scott. “Please take a moment to stop and remember the peace officers who gave their lives this past year, making the ultimate sacrifice while protecting our communities. The U.S. Attorney’s Office expresses our sincere condolences to these officers and their families as we honor their memory.”
More information about California State Peace Officers’ Memorial Week, including observation of a virtual tribute during the COVID-19 public health crisis, is available here: 2020 California Peace Officers' Memorial Foundation Candlelight Vigil Tribute.