Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 May 2020
Gregory Moody Sentenced to 54 Months for Robbery of Two Banks in March 2019Read the Press Release
The Office of the United States Attorney for the District of Vermont stated that Gregory Moody, 39, of Colchester, Vermont was sentenced today to 54 months in prison for robbing a T.D. Bank in St. Albans, Vermont and a Community Bank, NA in South Burlington, Vermont in March 2019. U.S. District Judge William K. Sessions III also ordered that Moody receive a three-year period of supervised release following the term of imprisonment. The Court ordered Moody to pay restitution of $2500 to T.D. Bank and $830 to Community Bank, NA.
According to court records, on March 22, 2019, Moody entered the T.D. Bank in St. Albans and demanded money from a bank teller. The bank teller gave Moody $2,500 in cash, and he left the bank. Less than one week later, on March 28, 2019, Moody stole an unoccupied minivan and drove to the Community Bank, NA in South Burlington. Moody entered the Community Bank and, again, demanded money from a bank teller. The bank teller gave Moody $830 in cash, and Moody walked out of the bank to the stolen minivan, which was located later in Hinesburg, Vermont.
After coordination between the St. Albans Police Department and the South Burlington Police Department, Moody was identified as the bank robber for both robberies. The Federal Bureau of Investigation joined the investigation and worked in partnership with the St. Albans Police Department and the South Burlington Police Department to the conclusion of the case. The government was represented by Assistant U.S. Attorney Nikolas P. Kerest. Gregory Moody was represented by Steven Barth, Esq., of the Office of the Federal Defender.
Government Official and Contracting Executive Plead Guilty to Bribery ConspiracyRead the Press Release
ALEXANDRIA, Va. – The former Director of Procurement for the Pension Benefit Guaranty Corporation and the president and chief executive officer of a government contracting firm pleaded guilty today to conspiring to bribe a public official.
Jeffrey B. Donahue, 42, of Herndon, and Nadeem Ansari, 47, of Haymarket, each pleaded guilty to one count of conspiracy to bribe a public official. Sentencing is scheduled for Sept. 11, 2020, for Donahue and Ansari.
According to court documents, Donahue served as a Supervisory Contract Administrator with PBGC and then as Director of the Procurement Department from March 2014 to February 2020. From at least 2015 through August 2017, Donahue solicited and received cash payments and other things of value, including the promise of a job valued at $1 million, from Ansari and Ansari’s company. In exchange, Donahue agreed to steer PBGC contracts to Ansari’s company.
In 2015, Donahue approached Ansari and offered to help Ansari’s new company win a PBGC contract, worth approximately $55 million, in exchange for a future job with the company. Among other things, Donahue provided Ansari with sample bid proposals; helped draft, review, and edit the company’s bid proposal; and disclosed labor pricing estimates. When the company did not win the contract, Donahue helped Ansari draft the company’s bid protest. Ansari admitted that his business partners were aware of his arrangement with Donahue.
In 2016, Donahue proposed a second arrangement with Ansari in which Donahue would receive up to $125,000 from Ansari and his company in exchange for steering a contract to Ansari’s company. PBGC awarded the contract to Ansari’s company, which resulted in payments to the company totaling approximately $3.29 million. Donahue steered the contract by, among other things, providing sensitive, non-public information and work product to Ansari; providing guidance for contract pricing; and adjusting the terms of the contract to align with the qualifications of the company’s personnel. Donahue received at least $48,000 in cash, plus additional gifts. Donahue and Ansari also took steps to conceal the scheme and their communications with each other, including using separate, dedicated cellular telephones and e-mail accounts and communicating through encrypted software.
The Pension Benefit Guaranty Corporation, Office of Inspector General and the FBI investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia are prosecuting the case.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Acting Inspector General Nicholas J. Novak of the Pension Benefit Guaranty Corporation, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Government Official and Contracting Executive Plead Guilty to Bribery ConspiracyRead the Press Release
The former Director of Procurement for the Pension Benefit Guaranty Corporation and the president and chief executive officer of a government contracting firm pleaded guilty today to conspiring to bribe a public official.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Acting Inspector General Nicholas J. Novak of the Pension Benefit Guaranty Corporation, and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
Jeffrey B. Donahue, 42, of Herndon, Virginia, and Nadeem Ansari, 47, of Haymarket, Virginia, each pleaded guilty to one count of conspiracy to bribe a public official. Sentencing is scheduled for Sept. 11, 2020, for Donahue and Ansari.
According to court documents, Donahue served as a Supervisory Contract Administrator with PBGC and then as Director of the Procurement Department from March 2014 to February 2020. From at least 2015 through August 2017, Donahue solicited and received cash payments and other things of value, including the promise of a job valued at $1 million, from Ansari and Ansari’s company. In exchange, Donahue agreed to steer PBGC contracts to Ansari’s company.
In 2015, Donahue approached Ansari and offered to help Ansari’s new company win a PBGC contract, worth approximately $55 million, in exchange for a future job with the company. Among other things, Donahue provided Ansari with sample bid proposals; helped draft, review, and edit the company’s bid proposal; and disclosed labor pricing estimates. When the company did not win the contract, Donahue helped Ansari draft the company’s bid protest. Ansari admitted that his business partners were aware of his arrangement with Donahue.
In 2016, Donahue proposed a second arrangement with Ansari in which Donahue would receive up to $125,000 from Ansari and his company in exchange for steering a contract to Ansari’s company. PBGC awarded the contract to Ansari’s company, which resulted in payments to the company totaling approximately $3.29 million. Donahue steered the contract by, among other things, providing sensitive, non-public information and work product to Ansari; providing guidance for contract pricing; and adjusting the terms of the contract to align with the qualifications of the company’s personnel. Donahue received at least $48,000 in cash, plus additional gifts. Donahue and Ansari also took steps to conceal the scheme and their communications with each other, including using separate, dedicated cellular telephones and e-mail accounts and communicating through encrypted software.
The Pension Benefit Guaranty Corporation, Office of Inspector General and the FBI investigated the case. Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Grace L. Hill of the Eastern District of Virginia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fultondale Doctor Pleads Guilty to Prescribing Controlled Substances and Health Care Fraud; Demopolis Pharmacist Pleads Guilty to Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A Fultondale doctor today pleaded guilty to prescribing controlled substances without a legitimate medical purpose and engaging in health care fraud announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, and FBI Special Agent in Charge Johnnie Sharp, Jr.
PAUL ROBERTS, M.D., 48, of Fultondale, Ala, a physician and former co-owner of Southeast Urgent Care (“SEUC”) in Fultondale, pled guilty before U.S. District Court Judge Annemarie Axon to 16 counts stemming from a June 2019 Second Superseding Indictment. According to the plea agreement, Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama and other State medical licenses. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
“We have recently heard many stories about the sacrifices made by physicians and pharmacists to care for patients during this difficult time. Unfortunately, there are also those who have chosen to sacrifice patient care for pure greed,” First Assistant United States Attorney Lloyd Peeples said. “Those who engage in such unlawful practices unnecessarily drive up healthcare costs and destroy lives in our communities.”
“The only cure for the pain caused by pill mill doctors, like Roberts, is public awareness, victims who come forward, and a determined fleet of FBI agents coupled with our great partners who will arrest and prosecute these unscrupulous practitioners when they choose to sell their ethics, betray their oath, and break the law,” Sharp said.
“This guilty plea is yet another example of DEA’s efforts to rid Alabama of doctors who place greed and personal wealth over the well-being of Alabamians,” Morris said. “The DEA, FBI and the United States Attorney’s Office stand steadfast in our fight against the opioid epidemic in Alabama. We will continue to investigate, arrest and prosecute drug dealers who prey on those struggling with addiction and hide behind their veil of a professional practice.”
Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose. According to the plea agreement, on days Roberts was out of the office, he allowed unqualified staff, including an x-ray technician, to prescribe controlled substances to patients using prescriptions that Roberts pre-signed. The plea agreement also states that Roberts illegally prescribed controlled substances, including oxycodone, to two women. He issued them to one in exchange for sexual favors and to the other even though he knew that she was abusing controlled substances.
Roberts also pleaded guilty to two health care fraud conspiracies and two counts of participating in a health care fraud scheme. The first focused on fraudulently billing for office visits. According to the plea agreement, on dates he was absent from the office, Roberts caused unqualified staff to see patients, and then caused SEUC to bill Blue Cross Blue Shield of Alabama as though Roberts had provided those services.
The second conspiracy and scheme focused on fraudulently billing health insurance plans through their third-party administrators for compounded drugs. According to the plea agreement, beginning in 2012, Roberts entered into an unlawful agreement with his co-defendants, Stanley Reeves, a pharmacist and owner of F&F Drugs, a Demopolis-based pharmacy, and Brett Taft, a Tuscaloosa-based sales representative, to fraudulently bill these health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue these medically unnecessary drugs, Taft paid Roberts kickbacks. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled and billed the prescriptions to insurance plans. Reeves would then pay Taft a portion of the billing proceeds, with Taft using some of those proceeds to pay Roberts kickbacks. In addition, to induce patients to accept these medically unnecessary drugs, Roberts and his co-defendants agreed that F&F Drugs would waive patient co-pays, and did so in violation of the health insurance plan rules. And, to maximize profit from each prescription, Roberts and his co-defendants also agreed that F&F Drugs would automatically refill the compounded drugs that Roberts referred regardless of whether patients needed those drugs. Between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $2.2 million for medically unnecessary compounded drugs issued by Roberts.
Town, Morris and Sharp also announced that last week, one of Roberts’s co-defendants, STANLEY REEVES, 62, of Demopolis, Ala, pharmacist and owner of F&F Drugs in Demopolis, pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud conspiracy and scheme. Reeves did so via a simultaneously filed information. According to the plea agreement, between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $10.5 million for medically unnecessary compounded drugs issued by various doctors, including Roberts. Under the terms of the plea agreement, Reeves stipulated to a 38-month sentence and agreed to surrender his pharmacist license to the Alabama Board of Pharmacy. He also agreed to pay a fine of $100,000, restitution of $10.5 million, and forfeiture of $900,000 with $300,000 due on the date he is sentenced.
The maximum punishment for the dispensing controlled substances charges is 20 years in prison and a $1,000,000 fine. The maximum penalty for the health care fraud and conspiracy charges is 10 years in prison and a $250,000 fine.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Austin Shutt, Kristen Osborne, and Lloyd C. Peeples are prosecuting.
Former U.S. Postal Service Employee Admits Filing False Documents to Receive over $650,000 in Workers’ CompensationRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted defrauding the U.S. Department of Labor, Office of Workers Compensation, U.S. Attorney Craig Carpenito announced.
Janeide Chillis, 53, of Irvington, New Jersey, pleaded guilty by teleconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of making false statements and committing fraud to obtain federal workers’ compensation.
According to documents filed in this case and statements made in court:
Chillis was a U.S. Postal Service employee. In March 2006, she signed and filed under penalty of perjury a form with the U.S. Department of Labor claiming she suffered disabling injuries from a slip-and-fall accident at work. Chillis also provided a letter from a New Jersey doctor who claimed that Chillis was “temporarily totally disabled.” As a result of those representations, Chillis began receiving workers’ compensation benefits from the U.S. Department of Labor. For the next several years, in order to maintain such benefits, Chillis periodically submitted additional forms certifying that she was unemployed and would report any income or other information that affected her receipt of benefits. Notwithstanding those representations, from 2011 through the present, Chillis earned extra income and travelled extensively, including to Africa and France, all of which she did not report to the U.S. Department of Labor.
During the same time period, Chillis also received reimbursement payments for home health aide services. Beginning in 2013, she stopped receiving home health aide services, but continued receiving reimbursement based on false representations she made to the U.S. Department of Labor.
In total, Chillis received $686,588 in federal benefits from her fraud.
The count of making false statements and committing fraud to obtain federal workers’ compensation benefits is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for Sept. 10, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge of the Northeast Area Field Office Matthew M. Modafferi; the Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent-in-Charge John Grasso; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Laura J. Perry, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
Federal Prosecutors Target COVID-19 Related Housing Predatory PracticesRead the Press Release
The Department of Justice and federal prosecutors remain vigilant in investigating and prosecuting landlords and property managers who sexually harass tenants during the COVID-19 pandemic, warned U.S. Attorney Erin Nealy Cox.
As a result of the COVID-19 pandemic, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced tenants to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords have responded to these circumstances with compassion, working together with their tenants to weather the current crisis. However, other landlords have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Tenants should never have to choose between housing and sexual harassment,” stated U.S. Attorney Erin Nealy Cox. “Sexual harassment by those who prey on vulnerable tenants is both reprehensible and illegal. If you have been a victim of sexual harassment, please report it to 1-844-380-6178 or [email protected].”
In a memo, Attorney General William Barr stated, “The current times are difficult enough without predatory practices by unscrupulous landlords. We must stop such behavior in its tracks. ”
Attorney General Barr has directed the Civil Rights Division and every U.S. Attorney's Office to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis. In late 2017, the Civil Rights Division launched the Sexual Harassment in Housing Initiative to combat sexual harassment in housing. The Civil Rights Division, together with the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination the law prohibits.
To address predatory practices by unscrupulous landlords, Attorney General Barr directed Assistant Attorney General for Civil Rights, Eric Dreiband, and Christina Nolan, the U.S. Attorney for the District of Vermont to oversee and coordinate U.S. Attorneys’ Offices efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
“The Fair Housing Act authorizes the U.S. Department of Justice take swift action against anyone who sexually harasses tenants,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to the fight against sexual harassment in housing. We will defend the right of tenants and their families to live peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
Unfortunately, many instances of sexual harassment in housing continue to go unreported. This is further exacerbated by the COVID-19 pandemic. Many investigations frequently uncover sexual harassment that has been ongoing for years and identify numerous victims who never reported the conduct to federal authorities.
In a public service announcement, U.S. Attorney Erin Nealy Cox urged victims of sexual harassment by a landlord, property manager, loan officer, maintenance worker, security guard, or other person who has control over housing to contact:
Sexual Harassment in Housing Initiative
1-844-380-6178
For more information: justice.gov/crt/sexual-harassment-housing-initiative.
Federal Charges Filed in KCK Gas Station Robbery, ShootingRead the Press Release
KANSAS CITY, KAN. – Federal charges have been filed against a Kansas man accused of shooting a clerk during a gas station robbery in Kansas City, Kan., last month, U.S. Attorney Stephen McAllister said today.
Jakel J.M. Webster, 24, Kansas City, Kan., is charged with one count of robbery and one count of discharging a firearm during the robbery.A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleges that on April 28, 2020, Webster robbed the Quick Shop at 2425 Metropolitan Avenue in Kansas City, Kan. An investigator’s affidavit says two suspects entered the store at about 3:30 a.m. The suspect carried a rifle and work a mask and gloves. The smaller suspect had a metal baseball bat and work a mask. The smaller suspect tried to break down the door to the clerk’s enclosed area, but failed. The larger suspect shot through the glass, striking the clerk in the face. The larger suspect then shot the clerk a second time as he lay bleeding on the floor. Both suspects fled before the police arrived.
Investigators learned that Webster was the larger suspect in the robbery. They arrested him on April 29.
If convicted, he could face up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, and at least 10 years and a fine up to $250,000 on the firearm charge. The Kansas City, Kan., Police Department investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Executive at Investment Management Firm Pleads Guilty in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that AHMAD NAQVI, the chief operating officer of Elm Tree Investment Advisors LLC (“ETIA”), pled guilty before U.S. District Judge Edgardo Ramos to securities fraud charges stemming from his role in a scheme to defraud investors in multiple investment funds created and controlled by NAQVI and Fred Elm, a/k/a “Frederic Elmaleh,” the founder and manager. Among other illicit activity, Elm and NAQVI fraudulently induced more than 50 investors to invest over $18 million based on the false representation that Elm and NAQVI would invest that money, through the funds, in the shares of privately held technology companies, like Twitter, Alibaba, Uber, and Square, before their initial public offerings (“IPOs”).
U.S. Attorney Geoffrey S. Berman said: “As he has now admitted in court, Ahmad Naqvi deceived investors with claims that the Elm Tree Funds would generate huge profits from investments in privately-held technology companies. In fact, the funds never invested in these pre-IPO companies and never returned a profit, and the fraction of investor money actually invested in securities resulted in massive losses. Now Naqvi awaits sentencing for his crime, and faces the loss of his freedom.”
According to the Superseding Indictment charging Elm and NAQVI, and other filings in the case:
From at least June 2013 through December 2014, Elm and NAQVI engaged in a scheme to defraud investors in funds that Elm and NAQVI created and controlled at ETIA, where Elm was the founder and manager, and NAQVI was the chief operating officer. Elm and NAQVI raised more than $18 million from over 50 investors in four limited partnerships for which ETIA acted as the fund manager: Elm Tree Investment Fund, LP; Elm Tree Emerging Growth Fund, LP; Elm Tree ‘e’Conomy Fund, LP; and Elm Tree Motion Opportunity, LP (collectively the “Elm Tree Funds”).
Elm and NAQVI falsely represented that the Elm Tree Funds used investor capital to purchase shares in privately held technology companies before their IPOs. These companies included Twitter, Inc., Alibaba Group Holding Limited, Uber Technologies, Inc., Square, Inc., Pinterest, Inc., and GoDaddy Group, Inc. Moreover, Elm and NAQVI falsely represented that they had access to these pre-IPO shares because of their relationships with leading venture capital firms, such as Kleiner Perkins Caufield & Byers, Benchmark Capital, and Silver Lake Management, L.L.C. In truth and in fact, Elm and NAQVI did not invest in the pre-IPO shares of these companies and did not have relationships with these venture capital firms.
Elm and NAQVI comingled the approximately $18 million that was invested in the Elm Tree Funds in a single investment account and then invested only a portion of the money, approximately $7.1 million. At no point did any of the Elm Tree Funds return a profit. Instead, for example, between January 2014 and November 2014, the Elm Tree Funds lost approximately $3.9 million in trading.
Moreover, of the investor funds that Elm and NAQVI did not lose in securities trading, Elm routinely converted investor funds to his own use in the form of cash withdrawals and to pay personal expenses, including to purchase a multimillion-dollar home, high-end furnishings, and other personal items, such as jewelry, daily living expenses, and luxury automobiles, including a Bentley, a Maserati, and a Range Rover.
The conversion of investors’ funds was contrary to the representations that Elm and NAQVI made to investors concerning their and ETIA’s fees. Elm and NAQVI falsely represented that they and ETIA would take a two percent annual management fee plus a performance fee of 20 percent of any profits that the Elm Tree Funds earned. In truth and in fact, Elm converted investor money that far exceeded the two percent management fee. Moreover, because the Elm Tree Funds never returned a profit, Elm, NAQVI, and ETIA were not entitled to a percentage of any profits.
Elm and NAQVI also used approximately $5.2 million of new investor funds to make payments to earlier investors in a Ponzi-like fashion. To prevent or forestall redemptions, and continue to raise money to fund their scheme, Elm and NAQVI also generated fictitious account statements and made oral and written misrepresentations that their trading strategies were generating consistently positive returns.
For example, beginning in mid-2013, Elm and NAQVI began to solicit Victim-1 to invest with ETIA in the Elm Tree Funds. On June 11, 2013, NAQVI sent Victim-1 a series of emails regarding the Elm Tree Emerging Growth Fund, in which he falsely represented, among other things, that the fund would invest in pre-IPO Twitter shares, and that Elm, NAQVI, and ETIA had “key contacts” with venture capital firms like Kleiner Perkins Caufield & Byers and Benchmark Capital. Elm and NAQVI subsequently had in-person meetings and telephone calls with Victim-1 about this investment. On October 9, 2013, Victim-1 invested approximately $52,500 in the Elm Tree Emerging Growth Fund. Following Twitter’s IPO on November 6, 2013, Twitter’s stock price rose, and NAQVI subsequently told Victim-1 that Elm, NAQVI, and ETIA had used an options strategy to lock in Victim-1’s profits in Twitter. Because the fund had not invested in pre-IPO Twitter shares, there were no profits to lock in. Thereafter, Elm and NAQVI sent fraudulent account statements to Victim-1, including one sent on March 7, 2014. The statement falsely indicated that Victim-1’s investment in the fund was valued at $274,550 (up from $52,500), and that the Elm Tree Emerging Growth Fund was valued at $68,115,855.
Elm and NAQVI made similar misrepresentations with respect to Victim-1’s subsequent investments in the Elm Tree ‘e’Conomy Fund and Elm Tree Motion Opportunity, falsely indicating that those funds invested in Alibaba, Uber, Square, Pinterest, and GoDaddy, and that Victim-1’s investments were growing. Elm and NAQVI also falsely represented that the value of the Elm Tree ‘e’Conomy Fund as of December 12, 2014, was $125,484,750 and that the value of Elm Tree Motion Opportunity as of December 18, 2014, was $77,286,220 – falsely claiming that the total value of the Elm Tree Funds was more than $270 million.
NAQVI, who had been a fugitive since his indictment in 2016, was arrested in Canada and extradited to the United States in November 2019. Elm was initially arrested in April 2016 and released on bail. In June 2017, approximately one week before his then-scheduled guilty plea, Elm fled to Canada. Elm was subsequently arrested in Canada and extradited to the United States in January 2020.
* * *
NAQVI, 51, pled guilty to one count of securities fraud conspiracy, which carries a maximum sentence of five years in prison. The charge also carries a maximum fine of $250,000, or twice the gross gain or loss from the offenses. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. NAQVI is scheduled to be sentenced by Judge Ramos on June 29, 2020, at 10:30 a.m.
Mr. Berman praised the work of Homeland Security Investigations and the U.S. Department of Justice’s Office of International Affairs, and thanked the U.S. Securities and Exchange Commission for its assistance. Mr. Berman also thanked Canadian law enforcement for its support and assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
The allegations contained in the Superseding Indictment against Elm are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Ex-BLM employee admits using government credit card to defraud agency, buy potteryRead the Press Release
MISSOULA – A former Bureau of Land Management employee today admitted he used government credit cards to steal from the agency, including buying pottery for his personal use, U.S. Attorney Kurt Alme said.
Adrian Anthony Aragon, 49, of Butte, pleaded guilty to wire fraud. Aragon faces a maximum 20 years in prison, a $250,000 fine and up to three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. The Court detained Aragon and set sentencing for Aug. 14.
The prosecution said in court records filed in the case that Aragon worked as an administrative assistant for the BLM and had been issued government travel and purchase cards to be used only for official business. An investigation found that in 10 months, Aragon attempted to obtain about $20,901 by improperly using his government cards. On July 28, 2019, Aragon used his card to spend $2,500 to buy pottery for his personal use. To cover the fraudulent purchase, Aragon doctored the account statement to omit the transaction and then submitted the statement.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Bureau of Land Management, Office of Law Enforcement and Security.
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Dominican National Sentenced for Fentanyl and Aggravated Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national previously residing in Worcester was sentenced today in connection with fentanyl and heroin distribution and aggravated identity theft charges.
Jonathan Francisco Bobadilla-Rosa, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to 28 months in prison and one year of supervised release. In November 2019, Bobadilla-Rosa pleaded guilty to possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl; false representation of a social security number; and aggravated identity theft.
Bobadilla-Rosa is illegally in the United States. In December 2018, he was arrested carrying a backpack containing more than 100 grams of heroin and more than 40 grams of fentanyl. When he was arrested, he identified himself by a different name and claimed to be from Puerto Rico. Further investigation revealed that Bobadilla-Rosa stole the identity of a Puerto Rican resident, used that identity to obtain a Massachusetts identification card, and that Bobadilla-Rosa was actually from the Dominican Republic.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office made the announcement today. The Massachusetts Attorney General’s Office and the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division prosecuted the case.
Doctor Pleads Guilty to Opioid Conspiracy and Health Care FraudRead the Press Release
ALEXANDRIA, Va. – A Fairfax physician pleaded guilty today to leading and organizing an extensive and illegal prescription distribution conspiracy and a related health care fraud scheme.
According to court documents, Dr. Felicia Lyn Donald, 65, of Great Falls, organized, led, and operated a prescription “pill mill” from at least April 2016 through April 2020. Donald practiced medicine at For Women OB/GYN Associates and NOVA Addiction Center. Donald distributed over 1.2 million milligrams (mg) of Schedule II opioids at or above the Centers for Disease Control and Prevention (CDC) guideline for dosages that a practitioner should avoid, with a total street value of over $1.2 million, and illegally distributed at least 325,190 mg of oxycodone and other Schedule II controlled substances. Donald also committed health care fraud on numerous occasions in furtherance of her scheme.
“Donald flagrantly violated her oath as a physician and put countless lives at risk,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “It is critical that those with the power to prescribe controlled substances be held accountable for their actions, and that putting the health and safety of the American public at risk is a federal crime. This is especially true at this very moment when we are relying on medical professionals to save lives during the COVID-19 pandemic.”
Additionally, Donald fraudulently prescribed Schedule II opioid pills that she illegally distributed to a close associate, knowing that this individual sold the prescriptions on the street for profit. Around the same time, Donald issued prescriptions to the close associate for alprazolam pills, which belongs to a class of drugs known as benzodiazepines. Donald admitted that the use of opioids with benzodiazepines is a dangerous combination of drugs that can make a person stop breathing, and could have killed or caused serious bodily injury to the close associate or to the ultimate users.
“Donald’s actions fueled our nation’s opioid crisis and endangered lives,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG. “We will work tirelessly with our partners to prevent criminals from preying on the Medicaid program and its beneficiaries.”
Donald admitted that she prescribed opioids to addicts and/or drug dealers who had traveled from out-of-state or long distances to her practice; individuals that informed Donald of their pending drug charges; individuals who Donald knew had failed urine toxicology screens; individuals who Donald knew were selling the pills that she prescribed to them; paying certain employees, in part, with opioid prescriptions rather than through pay checks; and giving blank prescriptions to certain members of her medical office staff and other co-conspirators for their personal use.
“Today’s guilty plea illustrates the lure of greed and making money at the expense of those in need of treatment,” said Kevin Vorndran, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “The FBI will not stand by while so-called medical ‘professionals’ abuse their oaths and abandon their responsibilities to their patients. Removing even one doctor who diverts opioids for profit can make a significant and lasting impact in a community, especially in the lives of those affected by reckless prescribing and dispensing practices.”
Donald attempted to conceal her patterns of illegal prescribing by falsifying medical records to make it appear as though individuals who were never her patients received examinations and medical care, when in fact they had not, and engaging in Medicaid fraud. Donald fraudulently issued prescriptions to others in the names of at least nine unwitting individuals, none of whom were her patients. Donald also issued prescriptions for high doses of oxycodone to multiple women who were pregnant.
Donald pleaded guilty to conspiracy to distribute and dispense controlled substances outside the usual course of professional practice and without a legitimate medical purpose, and health care fraud. She agreed to surrender her medical license and faces a maximum penalty of 30 years in prison when sentenced on August 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kevin Vorndran, Acting Special Agent in Charge of the FBI's Washington Field Criminal Division; and Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorneys Raj Parekh and Monika Moore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-100.
District attorneys, solicitors strengthen fight against COVID-19 related fraudRead the Press Release
The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force.
“Our law enforcement efforts are strongest when the ‘good guys’ coordinate their efforts against ‘bad guys,’ including scam artists,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We’re proud to partner with PAC as we protect Georgia’s citizens.”
The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Gov. Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
“I want our citizens to know that prosecutors at every level in our state are committed to enforcing the laws that protect Georgians, and we will not tolerate fraudsters using this deadly pandemic for their own personal gain,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “We are thankful to have the state’s prosecuting attorneys represented on the COVID-19 Task Force, which serves to further strengthen our collective efforts to track down and punish fraudsters.”
Georgia’s COVID-19 Task Force is warning the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price-gouging and fair housing violations. To date, the Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received nearly 1,000 reports of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water, and hand sanitizer.
The public can report potential scams to the National Center for Disaster Fraud (NCDF) by calling 1-866-720-5721 or at justice.gov/DisasterComplaintForm, or file complaints with the Georgia Attorney General’s Office by calling 800-869-1123 (toll-free) or at consumer.ga.gov.
Formed in April 2020, Georgia’s COVID-19 Fraud Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia.
District Attorneys, Solicitors Strengthen Fight Against COVID Related FraudRead the Press Release
MACON, Ga. – The Prosecuting Attorneys’ Council of Georgia (PAC), the overarching judicial branch government agency charged with assisting State of Georgia prosecuting attorneys in their efforts against criminal activity, has joined forces with the Governor’s Office, U.S. Attorneys and Georgia’s Attorney General as the newest member of the Coronavirus (COVID-19) Fraud Task Force. The Executive Director of PAC, Pete Skadalakis, will serve on the task force alongside Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office.
“I want our citizens to know that prosecutors at every level in our state are committed to enforcing the laws that protect Georgians, and we will not tolerate fraudsters using this deadly pandemic for their own personal gain,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “We are thankful to have the state’s prosecuting attorneys represented on the COVID-19 Task Force, which serves to further strengthen our collective efforts to track down and punish fraudsters.”
“When we announced the COVID-19 Fraud Task Force in early April, we made it clear that any attempts to take advantage of Georgians as we continue to navigate this public health crisis would not be tolerated,” said Governor Brian P. Kemp. “Today, that commitment remains the same. I am grateful Pete Skandalakis and the Prosecuting Attorneys’ Council are joining the task force. I know they will be a great help as we continue to prioritize the safety and well-being of all Georgians.”
“The Prosecuting Attorneys’ Council of Georgia is proud to join in this effort,” said Pete Skandalakis, PAC Executive Director. “Sadly, it is all too common for bad actors to prey on our most vulnerable citizens, especially during times of crisis. We must all work together to protect unsuspecting Georgians against criminal acts of fraud.”
“Our office is proud to partner with all three of our U.S. Attorneys, the Governor’s Office and now the Prosecuting Attorneys’ Council of Georgia. Given the extremely high volume of activity in these unprecedented times, this network will allow us to leverage our unique assets and ensure that price gougers and fraudsters are held accountable,” said Attorney General Chris Carr.
“Our law enforcement efforts are strongest when the ‘good guys’ coordinate their efforts against ‘bad guys,’ including scam artists,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We’re proud to partner with PAC as we protect Georgia’s citizens.”
“Because our state has begun the process of re-opening does not mean scammers are going to stop,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “We will deploy all available enforcement tools against anyone who tries to take advantage of people during this pandemic. District Attorney’s from across the state are joining the Task Force and providing us even stronger prosecution partnerships.”
Georgia’s COVID-19 Task Force is warning the public to be on the lookout for potential increased criminal activity related to federal stimulus checks, fake COVID-19 cures, personal protective equipment (PPE) price gouging and fair housing violations. To date, the Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received 978 reports of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can report potential scams to the National Center for Disaster Fraud (NCDF) by calling 1-866-720-5721 or via e-mail [email protected] or file complaints with the Georgia Attorney General’s Office by calling 800-869-1123 (toll-free) or at consumer.ga.gov.
Formed in April 2020, Georgia’s COVID-19 Fraud Task Force is aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. The task force enhances communication between partner agencies to more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia, the U.S. Attorney’s Office for the Southern District of Georgia and the Prosecuting Attorneys’ Council of Georgia.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
DOJ Increases Efforts to Combat Sexual Harassment in Housing During COVID-19 PandemicRead the Press Release
BOISE – U.S. Attorney Bart M. Davis is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“While most landlords respond with understanding and care, trying to work with their tenants to weather the crisis, there are national reports of other landlords who have demanded sexual favors to defer rent payments. Although unaware of any reports locally, I emphasize this behavior will not be tolerated at any time, especially now,” said U.S. Attorney Davis. “The Department of Justice has not hesitated to intervene when clear misconduct occurs.” The U.S. Attorney’s Office for the District of Idaho will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the District of Idaho by calling (208) 334-1211 or emailing [email protected].
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Cincinnati flavorings, fragrance company agrees to pay $50k to resolve claims of illegally importing listed chemical from ChinaRead the Press Release
CINCINNATI – A Cincinnati company has agreed to pay the United States $50,000 for illegally importing a listed chemical from China.
According to the settlement that was executed today, Frutarom is a manufacturer and developer of flavorings and ingredients that did business on Commerce Park Drive in Cincinnati. Frutarom is a wholly owned subsidiary of International Flavors & Fragrances, Inc.
As part of the Controlled Substances Act, the DEA regulates listed chemicals, including benzaldehyde, a chemical often used as almond flavoring and scent.
Frutarom imported more than 800 kilograms of the chemical from China without notifying the United States government, as required by the Controlled Substances Act.
The Cincinnati company has agreed to pay the government $50,000 to resolve the government’s potential claims for civil penalties.
David M. DeVillers, United States Attorney for the Southern District of Ohio, and Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA) announced today’s settlement. Deputy Civil Chief Matthew Horwitz and Assistant United States Attorney Brandi Stewart are representing the United States in this case.
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Central New York Construction Companies and Others to Pay Nearly $4.5 Million to Resolve Allegations of Fraud Involving Contracting Opportunities Meant for Disabled VeteransRead the Press Release
ALBANY, NEW YORK – Northland Associates, Inc. (Northland), its president James Tyler, The Diverse Construction Group, LLC (Diverse), and their bonding agent, Rose & Kiernan, Inc., have agreed to pay the United States $4,470,000 to resolve allegations that they fraudulently exploited contracting opportunities reserved for veteran-owned small businesses and small businesses operating in historically underutilized business zones (HUBZones), announced United States Attorney Grant C. Jaquith.
“We are committed to curtailing corruption by contractors who take opportunities set aside for small businesses owned and operated by injured veterans,” said United State Attorney Jaquith. “We owe no less to those who sacrificed their own well-being for our safety and security.”
The United States has long used government contracting to promote small businesses owned by veterans who have service-connected disabilities and small businesses operating in economically distressed communities. To be eligible for these contracts, an applicant must first qualify as a small business. To qualify, the business must report to the U.S. Small Business Administration (SBA) its total income and employees along with the income and employees of any affiliates. Generally, federal regulations provide that companies are affiliated when one business has the power to control another, or when a third party has the power to control both businesses. When two companies are affiliated, and together exceed the income and employee limitations, neither will be eligible for small business set-aside contracts.
The settlement with Northland, Diverse, and Tyler resolves allegations that those parties orchestrated a scheme to secure government set-aside contracts for Diverse and subcontracts for Diverse’s undisclosed affiliate, Northland.
Diverse was 51% owned by a service-disabled veteran and 49% owned by senior Northland officials. Northland exerted influence over Diverse in various ways, including by maintaining a “bid calendar” with deadlines for upcoming Northland and Diverse contracting opportunities, staffing Diverse with former Northland employees, and funneling Diverse subcontracts to Northland for fulfilment. Northland also handled various administrative duties for Diverse, including its accounting, expediting, estimating, purchasing, contracting, and clerical work.
Witnesses recounted moving boxes of files from Northland’s Liverpool, New York office (which was not located in a HUBZone) to Diverse’s office in Plessis, New York (which was located in a HUBZone), to make the Plessis office appear operational for government inspections. When the SBA questioned the parties’ affiliation in 2009, Tyler and Diverse’s 51% owner submitted sworn declarations that misrepresented the relationship between the two companies. Shortly thereafter, Diverse funneled more than $1 million to Northland through a Northland subsidiary in an effort to hide the parties’ affiliation. Northland, Diverse, and Tyler admitted that their conduct violated federal regulations designed to encourage contract awards to service-disabled veteran-owned small businesses and small businesses operating in HUBzones.
Contractors bidding for federal government construction contracts are generally required to post performance bonds and payment bonds, and the bonding company is required to ensure that the contractor will perform the work. Rose & Kiernan is an insurance and surety brokerage that acted as a bond broker for both Northland and Diverse on government construction projects. David Cooper is a senior vice president with Rose & Kiernan. The settlement with Rose & Kiernan and Cooper resolves allegations that those parties knew or should have known that Diverse and Northland were affiliated in violation of SBA regulations and that those companies took steps to hide their affiliation from the government to obtain and receive payment on government set-aside contracts. Their decision to help Diverse obtain bonding was a critical action in furtherance of Diverse’s and Northland’s fraud on the government, and served as a substantial factor in causing Diverse to submit false claims for payment to the United States.
“Providing false information to gain access to SBA’s preferential contracting programs is fraught with peril and is especially egregious when it involves programs intended to benefit our nation’s service-disabled veterans,” said SBA Inspector General Hannibal “Mike” Ware. “SBA-OIG will always aggressively pursue allegations of wrongdoing against individuals that provide false information. I want to thank the Department of Justice for their dedication to this case resulting in this settlement.”
SBA’s Associate General Counsel for Litigation, Eric S. Benderson, said: “The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with the U.S. Attorney’s Office and other Federal law enforcement agencies, to detect procurement fraud, pursue those individuals and companies that engage in fraudulent activities and protect the integrity of the program.”
“Ensuring the integrity of the DoD procurement process is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. “The successful resolution of this case is the result of a joint investigative effort and demonstrates the DCIS’ commitment to work with the U.S. Attorney’s Office for the Northern District of New York and its law enforcement partners to identify and prosecute individuals and companies that seek to defraud U.S. government contracting programs.”
“The Department of Veterans Affairs Office of Inspector General remains vigilant in its efforts to bring individuals and companies to justice that misappropriate the opportunity afforded exclusively to our nation’s veterans to obtain these VA set-aside contracts,” said VA-OIG Special Agent in Charge Christopher F. Algieri. “The VA-OIG will continue to protect the integrity of this important program, and thanks the U.S. Attorney’s Office and our law enforcement partners in this collaborative effort.”
“Those who contract with the United States government must do so fairly and honestly,” said Douglas Shoemaker, Regional Special Agent-in-Charge of the U.S. Department of Transportation, Office of Inspector General. “Today’s settlement clearly signals that it is not acceptable for contractors to unscrupulously take advantage of Federal programs created to enhance opportunities for small disadvantaged businesses.”
As part of the settlement agreements, Northland will pay $2,125,000, Tyler will pay $2,125,000, Diverse will pay $100,000, and Rose & Kiernan has paid $120,000.
The government’s investigation was triggered by whistleblower lawsuits filed under the qui tam provisions of the False Claims Act, which allows private persons, known as “relators,” to file civil actions on behalf of the United States and share in any recovery. The relators in this case will receive $1,000,000 of the settlement proceeds that the government receives from Northland, Diverse, and Tyler. The cases are docketed with the U.S. District Court for the Northern District of New York under numbers 5:17-cv-036 and 5:18-cv-516.
The investigation and settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, SBA-OIG, VA-OIG, DCIS, DOT-OIG, and the U.S. Army Criminal Investigation Command. The United States was represented by Assistant U.S. Attorneys Adam J. Katz and Christopher R. Moran.
Cengage and McGraw-Hill Terminate Merger Agreement in Response to Antitrust ConcernsRead the Press Release
Cengage Learning Holdings II Inc. and McGraw-Hill Education Inc. mutually agreed to abandon their plans to merge after the Department of Justice informed the companies it had serious concerns that the proposed transaction, as structured, would harm competition.
The merger would have combined the second and third largest publishers of textbooks in the United States in a market long dominated by three major textbook publishers. “American students were our primary concern when evaluating the possible competitive effects of this deal,” said Assistant Attorney General Makan Delrahim of the department’s Antitrust Division. “The decision to abandon this merger preserves competition in the market for textbook publishing, an important industry in the education sector. Cengage and McGraw-Hill’s decision to abandon this merger also preserves innovation, as the two firms compete aggressively in the development of courseware technology.”
McGraw-Hill, headquartered in New York City, is the second-largest publisher of course materials in higher-education, which include physical textbooks, e-books, and digital courseware. McGraw-Hill is a private company, owned by a private equity fund operated by Apollo Global Management LLC.
Cengage is a publicly-traded company that is headquartered in Boston, Massachusetts. It is the third-largest publisher for higher-education course materials, which includes physical textbooks, e-books, and courseware.
California Man Sentenced to Six Months in Prison for Making False Statements in Passport ApplicationRead the Press Release
SAN FRANCISCO – Mustapha Traore, aka Olivier Adella, was sentenced to six months in prison and six additional months of home confinement for knowingly making false statements in an application for a passport with the intent to induce and secure the issuance of a passport, announced United States Attorney David L. Anderson; U.S. State Department, Diplomatic Security Service (DSS), San Francisco Field Office Special Agent in Charge Matthew Perlman; and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge.
“The Diplomatic Security Service (DSS) is committed to ensuring that those that perpetrate U.S. passport fraud face consequences for their nefarious actions,” said Matthew Perlman, Special Agent in Charge of the DSS San Francisco Field Office. “The successful prosecution of this complex international, multi-jurisdictional case is a direct result of DSS’ global reach and strong partnership with both U.S. and foreign law enforcement agencies.”
“Homeland Security Investigations agents and professional staff will continue to closely collaborate with the Diplomatic Security Service and the U.S. Attorney’s Office in order to proactively disrupt fraud schemes that attempt to exploit our lawful immigration system,” said HSI Special Agent in Charge King.
Traore, formerly of Burlingame, Calif., pleaded guilty to the charge on March 9, 2020. Today’s sentence follows Traore’s arrest by DSS special agents on a criminal complaint on January 10, 2020.
According to the complaint, Traore entered the United States in February 2002 using a fake French passport with the name Olivier Adella. The criminal complaint further alleged that after Traore used the fake passport to enter the United States, he used the passport to obtain immigration status and eventually a naturalization certificate under the assumed name Olivier Adella. After becoming a naturalized U.S. citizen, Traore made false statements about his true name and birthplace in a December 2011 application for a U.S. passport; and based on those lies he was issued a U.S. passport under the assumed name.
According to information presented to the court at sentencing, on the night of April 28-29, 2016, Traore took part in the murder of San Mateo resident Keith Green. The court was informed that Traore pled guilty to accessory in the murder; and that Traore admitted that he helped load Mr. Green’s body into the trunk of his Chrysler 300, drove the body from San Mateo County across the Golden Gate Bridge, and then dumped the body down an embankment off of Highway 101 in Sonoma County. Around May 10, 2016—shortly after Green was killed but before Traore was arrested in connection with the murder—Traore submitted an expedited passport renewal application and again provided false information.
On January 23, 2020, a federal grand jury indicted Traore, charging him with knowingly making false statements in an application for a passport with the intent to induce and secure the issuance of a passport, in violation of 18 U.S.C. § 1542. Traore pleaded guilty to the charge.
In addition to the prison term, Judge Chhabria sentenced the defendant to a three-year period of supervised release, including the six months of home confinement.
Assistant United States Attorney Daniel Pastor is prosecuting the case with assistance from Marina Ponomarchuk. The prosecution is the result of an investigation by the DSS and HSI.
Bristol, Virginia Man Arrested on Federal Child Exploitation ChargesRead the Press Release
ABINGDON, Va. – A Bristol, Virginia, man who is accused of messaging who he thought was a 14-year-old girl but was actually an online covert employee of the Federal Bureau of Investigation (FBI), was arrested Saturday on a federal criminal complaint and charged with child exploitation and child pornography crimes. United States Attorney Thomas T. Cullen and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division made the announcement today.
Jonathan Neal Sexton, 34, of Bristol, Va., was arrested at a residence in Bristol, Virginia, Saturday and charged with sexual exploitation of children and activities relating to the distribution of child pornography.
“At a time when our children are increasingly reliant on the Internet for distance learning and social interaction, parents need to be especially vigilant to protect them from online predators,” U.S. Attorney Cullen stated today. “We will continue to work closely with our federal, state, and local partners to identify and arrest those who utilize social media to prey on minors.”
“Protecting children from all forms of exploitation, including that which occurs online, is one of law enforcement’s highest duties,” Special Agent in Charge Archey said today. “The FBI and its law enforcement partners will use all available tools to identify and arrest child predators, hold them accountable and protect our communities. We encourage parents, caregivers, guardians and teachers to remain vigilant to this threat and report suspicious activity to law enforcement immediately. We are grateful for the assistance of the USAO WDVA, the US Marshal’s Service and the Bristol PD for their assistance on this case.”
According to the charging documents, between February 28, 2020 and his arrest on Saturday, Sexton used the chat application KIK to correspond with who he believed to be a 14-year-old female. The 14-year-old was actually an undercover employee of an FBI Human Trafficking & Child Exploitation Task Force. During these chats, despite the “teen” being in the “clean area” of the KIK app, Sexton engaged the “teen” in conversations about masturbation, sex toys, sexual intercourse, and other topics. He also sent pictures of sex toys and videos of himself masturbating. He routinely asked the “teen” to send him nude pictures, and referenced the time when they could see each other and engage in sexual conduct. On multiple occasions, Sexton sent the “teen” pictures of prepubescent females nude and engaging with prepubescent males in sexual conduct. The defendant claimed he engaged in such sexual conduct with the individuals depicted in the pictures in the past.
The investigation of this case is being conducted by the Federal Bureau of Investigation, Virginia State Police, United States Marshal’s Service, and the Bristol, Virginia Police Department. Assistant United States Attorneys Zachary T. Lee and Lena Busscher are prosecuting the case for the United States.
Birmingham Man Sentenced for Bank Robbery of Wells Fargo BankRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Birmingham man for bank robbery, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Axon sentenced James Earl Crenshaw, 49, to 100 months in prison. In September 2019, Crenshaw robbed the Wells Fargo Bank located in downtown Birmingham. In January, Crenshaw pled guilty to one count of robbing a federally insured bank.
“Those who rob banks and threaten the lives of innocent employees are exactly the violent criminals we will remove from free society and relocate to prison,” Town said. “Crenshaw will have plenty of time to reflect on his dangerous actions while sitting in a federal prison cell.”
“Thanks to the great cooperative work between the FBI and our local partners, Crenshaw is off the street and won’t be able to threaten innocent lives for years to come,” Sharp said.
The FBI investigated the case, which Assistant U.S. Attorney Britteny Bucak prosecuted.
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.
Animal Health International Sentenced on Federal Misbranding ChargeRead the Press Release
ABINGDON, Va. – Animal Health International Inc., a Colorado corporation that obtains prescription drugs for animals from manufacturers for further distribution to veterinarians, farms, feedlots, and other facilities, was sentenced today, through its corporate counsel, in U.S. District Court after previously pleading guilty in February 2020 to introducing misbranded drugs into interstate commerce.
At the time of the guilty plea, Patterson Companies, Inc. (Patterson), Animal Health International’s corporate parent, entered into a non-prosecution agreement in which it committed to enhance its compliance program and fully comply with the law.
Animal Health International admitted to introducing and causing the introduction and delivery into interstate commerce of veterinary prescription drugs that were misbranded. Today, pursuant to the agreements entered into by Animal Health International and Patterson, Animal Health International was ordered to pay a forfeiture money judgment of over $46 million, $1 million to the Virginia Department of Health Professionals, and a $5 million fine. All of those amounts have been paid in full pursuant to the plea agreement, which required Animal Health International to make full payment prior to pleading guilty. In addition, Animal Health International was placed on probation for a period of one year. In the past 18 months, Patterson has fully cooperated in the investigation and implemented changes to International’s and its compliance programs to prevent further violations of federal and state law.
United States Attorney Thomas T. Cullen and Special Agent in Charge Mark S. McCormack of the FDA’s Office of Criminal Investigation’s Metro Washington Field Office made the announcement.
“Manufacturers and distributors of veterinary prescription drugs must ensure that these medications are dispensed in accordance with their labels and federal law,” U.S. Attorney Cullen said today. “Unauthorized distribution and off-label use of prescription medications not only endanger animals and livestock, but also the general public. The Department of Justice will continue to work closely with the FDA to investigate and prosecute entities and individuals who engage in these types of unlawful business practices.”
“The FDA recognizes the importance of controlling the prescription drug supply for animals. The careless or uncontrolled distribution of prescription animal drugs poses a danger not only to the medicated animals but to the U.S. public health by increasing the risk that humans will become resistant to antibiotics that we unknowingly consume through our food supply.” 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 distribute prescription animal drugs unlawfully.”
The Food and Drug Administration’s restrictions on veterinary prescription drugs are not just to protect animals from the potential harms of prescription drugs, but are also to protect the human food supply from unsafe drug residues in the edible tissues of animals sold for slaughter. Common causes of illegal residues include: (1) exceeding the drug’s approved dose; (2) using a shorter withdrawal period than what is stated on the drug’s label (if a higher than approved dose is given, the labeled withdrawal period may not be enough to allow the drug in the edible tissues to deplete to levels that are at or below the tolerance); (3) using a drug in an extra-label manner (for indications and dosages outside the approved labeling) without a veterinarian’s involvement; (4) giving a drug not approved for that species; and (5) using an unapproved route of administration. Drug residues in the nation's drug supply are concerning because: (1) they may contribute to antibiotic resistance in the human population, rendering human drugs less effective to treat human disease and contributing to the mutations of “superbugs”; and (2) they may cause allergic reactions in individuals with certain drug allergies.
According to previously filed court documents, from 2012 through 2018, Animal Health International caused misbranded veterinary prescription drug shipments to be made throughout the United States by distributing veterinary drugs from its wholesale locations directly to end users, by distributing veterinary drugs to unlicensed individuals, by distributing veterinary drugs pursuant to prescriptions issued by a veterinarian who was not licensed in the state to which veterinary drugs were being shipped, and by distributing veterinary drugs pursuant to prescriptions issued by a veterinarian who did not have a valid veterinarian-patient relationship with the animals in question.
Two such unlicensed individuals, Marlin Webb and Billy K. Groce, were not properly licensed to receive, transport, store, distribute, or dispense veterinary prescription drugs. Webb was the store manager of a cooperative in Hillsville, Virginia. The cooperative was not a licensed wholesaler, pharmacy, or veterinary clinic. Groce operated an unlicensed veterinary prescription distribution business. Webb and Groce each obtained veterinary prescription drugs from International in interstate commerce without valid prescriptions, and on many occasions, with no prescriptions at all. Webb and Groce previously pled guilty to criminal charges for their conduct in United States District Court in Abingdon.
While Animal Health International obtained not less than $46,802,203 from its illegal shipments, its profits from such shipments were a small percentage of the amount received.
The investigation of the case was conducted by the Food and Drug Administration-Office of Criminal Investigations with the assistance of the Virginia Department of Health Professions. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
3 May 2020
The Department of Justice Files Statement of Interest in Support of Church That Ministers to Underserved CommunitiesRead the Press Release
The Department of Justice today filed a Statement of Interest in a Virginia federal court concerning the First Amendment’s freedom of religion in support of Lighthouse Fellowship Church (Lighthouse), a congregation in Chincoteague Island, Virginia, that serves, among others, recovering drug addicts and former prostitutes.
The Statement of Interest is part of Attorney General William P. Barr's April 27, 2020 Initiative directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.
In response to the COVID-19 pandemic, Virginia’s governor issued executive orders that ban in-person religious services of more than 10 people while permitting such gatherings of workers in any non-retail business and an array of retail businesses, including liquor stores, dry cleaners and department stores. Violations of the orders allow for criminal charges and carry penalties of up to a year in a jail and a $2,500 fine.
As alleged by Lighthouse, on April 5, 2020, the church held a sixteen-person worship service in its 225-seat sanctuary while maintaining rigorous social-distancing and personal-hygiene protocols. At the end of the service, the Chincoteague police department issued Lighthouse’s pastor a criminal citation and summons, based on the governor’s executive orders. Lighthouse filed suit and on Friday, the district court denied the church’s request for preliminary relief, stating in part that “[a]lthough [professional-services] businesses may not be essential, the exception crafted on their behalf is essential to prevent joblessness.”
“For many people of faith, exercising religion is essential, especially during a crisis,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Commonwealth of Virginia has offered no good reason for refusing to trust congregants who promise to use care in worship in the same way it trusts accountants, lawyers, and other workers to do the same. The U.S. Department of Justice will continue to monitor any infringement of the Constitution and other civil liberties, and we will take additional appropriate action if and when necessary.”
“As important as it is that we stay safe during these challenging times, it is also important for states to remember that we do not abandon all of our freedoms in times of emergency,” said Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, who, with Assistant Attorney General Dreiband, is overseeing the Justice Department’s effort to monitor state and local polices relating to the COVID-19 pandemic. “Unlawful discrimination against people who exercise their right to religion violates the First Amendment, whether we are in a pandemic or not.”
“The Commonwealth cannot treat religious gatherings less favorably than other similar, secular gatherings,” said G. Zachary Terwilliger, the U.S. Attorney for the Eastern District of Virginia. “As we stated in our filing, we do not take a position in this Statement on the advisability of in-person gatherings. Indeed, the proper response to the COVID-19 pandemic will vary over time, and will depend on facts on the ground.”
In its Statement of Interest, the United States explains that governments may take necessary and temporary measures to meet genuine emergencies, and that states and localities should be afforded substantial deference in their response to emergency situations such as the current pandemic. “But,” the Statement explains, “there is no pandemic exception to the Constitution and its Bill of Rights.” Because the executive orders prohibit Lighthouse’s sixteen-person, socially distanced gathering in a 225-seat church but allow similar secular conduct, such as a gathering of 16 lawyers in a large law firm conference room, the governor’s executive orders may constitute a violation of the church’s constitutional rights to the free exercise of religion.
Northern Colorado Man Arrested for Possessing Pipe BombsRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced that Bradley Bunn, age 53, from Northern Colorado, was arrested this weekend after being charged by criminal complaint with possession of illegal destructive devices, namely pipe bombs, which were found after a search warrant was executed at Bunn’s residence. Bunn is scheduled to have his initial appearance via video conference tomorrow before a U.S. Magistrate Judge, where he will be advised of his rights and the charges pending against him. The FBI and the ATF joined in this announcement.
According to the facts contained in the affidavit in support of the criminal complaint, on May 1, 2020, FBI special agents, along with other law enforcement officers and agents, executed two search warrants in Northern Colorado. Both search warrants were for the residence of Bradley Bunn.
During the search of Bunn’s residence, FBI agents discovered four pipe bombs. Separately, the technicians found two one-pound containers of .308 caliber cartridge reloading gunpowder in Bunn’s vehicle, which is a potential pipe bomb component. Bomb technicians transported the destructive devices to a range where they were successfully rendered safe.
Bunn has been charged with the possession of destructive devices. If convicted he faces not more than 10 years in federal prison, and up to a $250,000 fine. A criminal complaint is a probable cause charging document. Anyone accused of committing a federal crime has a Constitutional right to be indicted by a grand jury.
This matter was investigated by the FBI and ATF, with support from local law enforcement.
The charges contained in this indictment are allegations, and the defendant is presumed innocent unless or until proven guilty in a court of law.
Dos Individuos Acusados Por Carjacking Y Usar Un Arma De Fuego Durante Un Crimen Violento Que Resultó En La Muerte De Dos Mujeres TransgéneroRead the Press Release
San Juan, P.R. – El 1 de mayo de 2020, Juan Carlos Pagán Bonilla (Pagán) de 21 años, y Sean Díaz de León (Díaz) de 19 años fueron acusados por medio de una querella en el Tribunal Federal del Distrito de Puerto Rico por usar y portar un arma de fuego durante y en relación con un delito de violencia, en relación con la muerte de dos mujeres transgénero, anunciaron el Fiscal General Auxiliar Eric Dreiband, el Fiscal Federal para el Distrito de Puerto Rico W. Stephen Muldrow y el Director del FBI en Puerto Rico Rafael Riviere. Este caso está siendo investigado por la Policía de Puerto Rico (“POPR”) y el FBI. Pagán y Díaz están bajo custodia federal.
La querella alega que el 22 de abril de 2020, la Policía de Puerto Rico fue informada de un vehículo en llamas en Humacao, Puerto Rico. Cuando los oficiales de POPR respondieron al área, encontraron dos cuerpos quemados dentro del vehículo. El 22 de abril de 2020, los familiares de las personas identificadas en la querella como S.A.V.R. (“Víctima 1”) y L.P.S. (“Víctima 2”) informaron que desaparecieron y mencionaron un video de Snapchat en las redes sociales que muestra a ambas víctimas socializando con dos sujetos la noche anterior.
De acuerdo con la investigación y la inteligencia recibidas por POPR, los dos hombres vistos en el video de Snapchat con las dos víctimas son Díaz y Pagán. El 28 de abril de 2020, POPR detuvo a Pagán en su residencia. Según la información obtenida, los acusados decidieron asesinar a las dos mujeres después de haber compartido con ellas porque se sintieron engañados cuando supieron que ambas eran transgénero.
“Los crímenes de odio son especialmente reprochables debido a los efectos que tienen sobre las víctimas, sus familias, las comunidades que continuamente sufren el discrimen de por razón de su genero u orientación sexual, y nuestro pueblo en general,” dijo W. Stephen Muldrow, Fiscal Federal para el Distrito de Puerto Rico. “Es por esto que la Fiscalía Federal se compromete a utilizar todas las herramientas a su alcance para combatir los delitos motivados por este tipo de intolerancia”.
“Quiero aprovechar la oportunidad para enviar un mensaje a los miembros de la comunidad LBGTTQ. Hemos escuchado sus reclamos y el FBI entiende su angustia. Estamos con ustedes y luchamos con ustedes, porque Puerto Rico es de todos,” dijo el director del FBI en Puerto Rico Rafael Riviere. “Quiero además agradecer a los agentes de la Policía de Puerto Rico, por su gran labor. La cooperación interagencial es clave en estos casos y estamos trabajando juntos para que Puerto Rico sea un lugar seguro para todos y todas”.
Esta investigación sigue en curso. Cualquier persona con información adicional puede llamar al FBI al 1-800-CALL-FBI (225-5342).
La Fiscalía Federal solicitó la detención inmediata de los acusados. El Fiscal Federal Auxiliar José A. Contreras del Distrito de Puerto Rico, la Fiscal Senior Rose Gibson y la Fiscal Especial de la División de Derechos Civiles del Departamento de Justicia de los Estados Unidos Laura Gilson están a cargo de la investigación del caso. Cada uno de los cargos es elegible a la pena de muerte o hasta vida en prisión. Los cargos contenidos en la querella son sólo alegaciones. Se presume que una persona es inocente a menos y hasta que se demuestre su culpa más allá de duda razonable en un tribunal.
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1 May 2020
Western Massachusetts Man Charged with Traveling and Intending to Meet Minor for SexRead the Press Release
ALBANY, NEW YORK – Bryan P. Krynicki, age 56, of Pittsfield, Massachusetts, was arrested on Tuesday and charged with traveling across state lines with the intent to engage in a sexual act with a minor.
The announcement was made by United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The criminal complaint alleges that between February 7, 2020 and April 29, 2020, Krynicki exchanged text messages with an undercover investigator who was posing as a 14-year old boy. Many of the messages sent by Krynicki involved Krynicki expressing his desire to engage in sexual acts with the boy. In April 2020, Krynicki and the boy discussed plans in which Krynicki would travel from Massachusetts in order to meet the boy at a location in Nassau, New York. On the morning of April 29, 2020, Krynicki drove from Pittsfield to Nassau, where he was encountered by law enforcement officials and arrested.
Krynicki appeared today for a detention hearing before United States Magistrate Judge Christian F. Hummel, who ordered him detained.
The charge filed against Krynicki carries a maximum sentence of 30 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Rachel Williams.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
United States Attorney William M. McSwain Announces Increased Efforts to Combat Sexual Harassment in Housing during Coronavirus PandemicRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that his Office is reaffirming its commitment under the Fair Housing Act to combat sexual harassment in housing. The Office is planning to hold virtual roundtables with local community organizations and encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to share the information or file a complaint.
The U.S. Department of Justice enforces the federal 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’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing.
Launched in 2017, the initiative has filed lawsuits across the country alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The 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 may be able to help.
The virtual roundtables taking place in the Eastern District of Pennsylvania will bring together community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers to share information about, and best practices for, detecting and reporting sexual harassment in housing. These organizations can identify the misconduct and encourage victims to report sexual harassment to the Department’s Civil Rights Division and the U.S. Attorney’s Office. Local police departments or legal aid offices may also be able to help victims if the behavior is a crime or if there is an imminent eviction.
Recently, the coronavirus public health crisis has left many citizens in the Eastern District of Pennsylvania out of work, furloughed, or otherwise in dire financial straits. This situation has led many tenants to seek postponements of rent or other accommodations at this time. Although many landlords and housing providers will be understanding during this difficult period, others may seek to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. The Department has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Through these roundtables, the U.S. Attorney’s Office seeks to prevent such illegal conduct from occurring and to detect and punish it if it does occur.
“Sexual harassment in housing is illegal and will not be tolerated at any time, but this behavior is especially despicable amidst a global pandemic when so many workers are sidelined and vulnerable,” stated U.S. Attorney McSwain. “Our Office is dedicated to uncovering such violations where they exist and to enforcing the law, particularly during a time of crisis like the one our country is experiencing now.”
“The Fair Housing Act authorizes the U.S. Department of Justice to 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 fight against sexual harassment in housing. We will defend the right of tenants and their families to leave peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
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]. Citizens in the Eastern District of Pennsylvania who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200, or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Jacqueline C. Romero, Civil Rights Coordinator.
U.S. Attorney’s Office Committed to Combatting Sexual Harassment in Housing Amid COVID-19 PandemicRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito is urging those who have experienced or have information about housing-related sexual harassment to report it to the Department of Justice.
Sexual harassment by landlords, property managers, maintenance workers, and others may violate the federal Fair Housing Act. As our nation faces unprecedented challenges amid the COVID-19 pandemic, U.S. Attorney Carpenito has reaffirmed the U.S. Attorney’s Office’s commitment to continue to enforce this vital statute.
“Landlords and superintendents using the power they have over tenants to sexually harass or assault them is intolerable,” U.S. Attorney Carpenito said. “It is even more disturbing when landlords or others exploit our current national crisis by sexually harassing people in need of housing. This office will not hesitate to seek justice and hold wrongdoers accountable.”
As a result of the COVID-19 public health crisis, many people have found themselves out of work, furloughed, or otherwise in dire financial straits. This has led many to seek abatements or suspensions of their rent or other housing accommodations. While many landlords and housing providers have responded positively, others have seen an opportunity to exploit the financially vulnerable through demands for sexual favors and other acts of sexual misconduct. This behavior is not only appalling, but illegal.
In January 2018, the U.S. Attorney’s Office for the District of New Jersey hosted one of the first community roundtable discussions to help launch the Justice Department’s Initiative to Combat Sexual Harassment in Housing. The initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
To report sexual harassment in housing, contact the Justice Department at (800) 896-7743 or [email protected] or contact the U.S. Attorney’s Office at (855) 281-3339 or [email protected]. For more information about the Justice Department’s Initiative to Combat Sexual Harassment in Housing, please visit https://www.justice.gov/crt/sexual-harassment-housing-initiative
U.S. Attorneys and FBI Warn of Potential Fraud Surrounding SBA LoansRead the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Offices of the Northern and Southern Districts of West Virginia, the Federal Bureau of Investigation, and the U.S. Small Business Administration are asking small business owners to be aware of possible scams relating to the CARES Act.
U.S. Attorney Bill Powell in the Northern District of West Virginia, U.S Attorney Mike Stuart in the Southern District of West Virginia , Eugene Kowel, Acting Special Agent in Charge of the FBI Pittsburgh Office, SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch and Karen Friel, SBA West Virginia District Director, have joined resources in an effort to prevent small businesses already struggling from the restrictions in place because of the COVID-19 pandemic from being victimized a second time by criminals using the program as an opportunity to commit fraud.
“Those who prey on others look for opportunities like the various loans provided to small businesses. United States Attorneys and our respective law enforcement partners, like the FBI, are on the lookout for those predators. We strongly encourage those who become aware of such scams to report it to the authorities so we can take action” said U.S. Attorney Bill Powell, Northern District of West Virginia.
“West Virginia businesses are struggling to survive a once-in-a-lifetime pandemic. The last thing we need are criminals scamming the essential aid meant to help businesses survive,” said U.S. Attorney Mike Stuart, Southern District of West Virginia. “Fraudsters and scammers never miss an opportunity to fraud and scam even in desperate times. Small businesses are the backbone of our state’s economy. We have their back. We will do all we can to protect them.”
"Fraudsters will take advantage of any opportunity to steal money," said FBI Pittsburgh Acting Special Agent in Charge Eugene Kowel. "We recognize that criminals could try to prey on small businesses during this time of fear and anxiety. The FBI works closely with the private sector so companies can make informed decisions in response to malware attacks. Companies can prevent and mitigate malware infection by utilizing appropriate back-up and malware detection systems. They can also train employees to be skeptical of emails, attachments and websites they don’t recognize. If you discover your business is the victim of a fraudulent incident, file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov."
“Fraudsters prey upon those in vulnerable positions, and this is a critical time for our nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement partners are actively working together to root out fraud in SBA’s programs and bring those responsible to justice. The public is encouraged to learn about potential fraud schemes and scams as a safeguard to being victimized.”
When the CARES Act was signed into law, the doors were opened for small businesses to access $349 billion in federal aid at a most crucial time for entrepreneurs that are balancing the health and safety of their families and themselves while operating their small business. And while small businesses take note of the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP), so do those with bad intentions.
“Unfortunately, small businesses are being targeted at a time they are most vulnerable,” noted SBA West Virginia District Director Karen Friel. “Look out for phishing attacks and scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to acquire personal banking access, or to install ransomware or malware on your computer.”
Entrepreneurs should remember that if anyone asks you for money, they are not legitimate, nor are emails that end in anything but “.gov”.
The SBA does not reach out to initiate a loan, nor does the SBA ask for information previously provided in the application process.
If you have any doubt, reach out to your nearest SBA office to ask. As you are working harder than ever to preserve your business and its employees amid the Coronavirus pandemic, do not allow bad actors to hinder your efforts.
SBA’s Office of Inspector General has published a list of possible scams and fraud schemes to raise public awareness: https://www.sba.gov/document/report--sba-programs-scams-fraud-alerts.
Report fraud, waste, abuse, mismanagement, or misconduct involving SBA programs to the SBA OIG hotline at (800) 767-0385, or online at: https://sbax.sba.gov/oigcss/.
To report any suspicious activity regarding the COVID-19 virus, residents are asked to call the National Center for Disaster Fraud Hotline at 1-866-720-5721or go to Justice.gov/DisasterComplaintForm.
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U.S. Attorney: Be Alert for Sexual Harassment in Housing During the COVID-19 PandemicRead the Press Release
KANSAS CITY, KAN. - U.S. Attorney Stephen McAllister is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker or anyone with control over housing to report that conduct to the Department of Justice.
“COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity,” McAllister said. “Nationally, there have been reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and we stand ready to investigate such allegations and pursue enforcement actions where appropriate.”
McAllister said his office will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Justice Department’s 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 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].
McAllister said complaint forms also are available on his office’s web site at /media/981871/dl?inline. Assistant U.S. Attorney Andrea Taylor is the Civil Rights Coordinator for McAllister’s office (913-551-6730).
More information about civil rights enforcement in Kansas is available at https://www.justice.gov/usao-ks/civil-rights
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
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U.S. Attorney's Office Announces New HiresRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced the following individuals have joined the office as Assistant U.S. Attorneys:
- Candyce Choi Cline came to the office after serving as an Associate Municipal Judge for the Westminster Municipal Court in Colorado. Prior to that she was a Deputy District Attorney for Adams and Broomfield Counties. Candyce earned her law degree from the University of Colorado Law School. She has been assigned to the office’s Criminal Division.
- Beth Ford Milani came to the office after serving as Assistant Attorney General in the Colorado Attorney General’s Office. Prior to that she clerked for the Hon. Steven Bernard and the Hon. John Webb of the Colorado Court of Appeals. Beth earned her law degree from the University of Oregon School of Law. She has been assigned to the office’s Appellate Division.
- Elizabeth Hagerty came to the office after serving as a Senior Associate for Hogan Lovells in Washington D.C. Prior to that she clerked for the Hon. Alan Kay of the U.S. District Court for the District of Hawaii. Elizabeth earned her law degree from George Washington University Law School. She has been assigned to the office’s Civil Division.
- Daniel McIntyre came to the office after serving as Special Assistant United States Attorney for the U.S. Department of Homeland Security Immigration and Customs Enforcement. Prior to that he was a trial attorney for the U.S. Department of Labor, Office of the Solicitor. Daniel earned his law degree from Washington University School of Law. He has been assigned to the office’s Criminal Division.
- Thomas Minser came to the office after serving as an Assistant State’s Attorney for the Domestic Violence and Sex Crimes Unit in the DuPage County State’s Attorney’s Office in Wheaton, Ill. He earned his law degree from Northern Illinois University College of Law. Thomas has been assigned to the office’s Criminal Division.
- Jena Neuscheler came to the office after serving as an Associate for Williams & Connolly in Washington D.C. Prior to that she clerked for the Hon. Ketanji Brown Jackson of the U.S. District Court for the District of Columbia. Jena earned her law degree from Stanford Law School. She has been assigned to the office’s Criminal Division.
- Wayne Paugh came to the office after serving as Assistant Chief Counsel for the U.S. Department of Homeland Security. He earned his law degree from George Mason University School of Law and his LL.M. in Intellectual Property Law from George Washington University School of Law. Wayne has been assigned to the office’s Criminal Division.
“We are thrilled to welcome this great group of attorneys, and I commend all of them for starting a new job under such extraordinary circumstances,” Dunn said. “I know they will serve the Department of Justice and the people of Colorado well.”
There are approximately 180 people in the Colorado U.S. Attorney’s office, with 81 of them being Assistant U.S. Attorneys.
- Candyce Choi Cline came to the office after serving as an Associate Municipal Judge for the Westminster Municipal Court in Colorado. Prior to that she was a Deputy District Attorney for Adams and Broomfield Counties. Candyce earned her law degree from the University of Colorado Law School. She has been assigned to the office’s Criminal Division.
U.S. Attorney Keefe Launches Initiative to Combat Sexual Harassment in HousingRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, today announced that his office will use all the tools at its disposal to pursue landlords who attempt to use the COVID-19 crisis to sexually harass their tenants. Keefe urged anyone who faces such harassment while trying to defer housing payments to contact the Justice Department’s Sexual
Harassment in Housing Initiative at 1-844-380-6178.“The COVID-19 crisis has brought out the best in most Americans, but the worst in some. We will vigorously pursue anyone seeking to capitalize on the current crisis by sexually harassing people facing housing challenges,” Keefe said. “Such despicable and unscrupulous behavior is illegal in normal times, and it certainly will not be tolerated now.”
Keefe said his office will work with all appropriate federal, state, and local authorities on this issue. In addition to reporting to the Justice Department, individuals may report housing-related sexual harassment locally. The Justice Department and U.S. Attorney’s Office stand ready to take aggressive action against this misconduct whenever it occurs.
If you think you are a victim of sexual harassment by a landlord or other person who has control over housing resulting from the COVID-19 crisis, contact: o Sexual Harassment in Housing Initiative at 1-844-380-6178 o Email: [email protected] o Local authorities
For more information: www.justice.gov/crt/sexual-harassment-housing-initiative
Spanish language webpage: www.justice.gov/crt-espanol/iniciativa-en-contra-del-acoso-sexual-en-la-viviendaMore facts on how to report sexual harassment in housing: www.justice.gov/crt/page/file/1048341/download
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern
District of Florida website. For more information about the United States Att rney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.htmlU.S. Attorney Keefe Announces $240,000 Awarded to Local Communities to Address COVID-19 PandemicRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, today announced that four counties in the district have been awarded a combined total of more than $240,000 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, awarded to Bay, Leon, Madison, and Walton counties, were provided under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. These awards are among $1.3 million directed to 14 Florida counties and cities under the program, which also provided $31.8 million to the Florida Department of Law Enforcement for use statewide. Numerous other communities within the Northern District of Florida were eligible for funding under the grant program, and the Justice Department is moving quickly to award grants on a rolling basis, aiming to have funds available for drawdown as soon as possible after receiving applications.
"Throughout the many weeks our district and the nation have been dealing with the threat of COVID-19, our public safety first responders have worked tirelessly to make sure members of the public are safe," U.S. Attorney Keefe said. "The resources of local agencies have been stretched thin, and these grant funds will help ease the financial burden on public safety agencies so they can continue protecting and serving our citizens."
The grant awards announced so far include: Bay County: $82,882; Leon County: $90,627; Madison County: $33,154; and Walton County: $38,577.
"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 establishing the grant program allows 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 inmate 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 will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs 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.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
U.S. Attorney and Law Enforcement Partners Devote Significant Resources to Protect SeniorsRead the Press Release
NASHVILLE, Tenn. – U.S. Attorney Don Cochran has implemented an “all hands on deck” approach to better protect and serve senior citizens, as events such as the current COVID-19 pandemic and recent tornado destruction bring an infinite number of opportunities for fraudsters to prey upon those most vulnerable.
The Middle Tennessee Elder Justice Task Force has been actively engaged in efforts to:
- Pursue nursing homes, home health companies, skilled nursing facilities, medical providers, and other businesses that provide grossly substandard care or exploit programs that provide healthcare to seniors, such as Medicare, TennCare, and TRICARE;
- Investigate and prosecute financial scams targeting or disproportionately impacting seniors;
- Promote greater coordination with state and local partners to combat elder abuse;
- Provide public outreach, education, and awareness relating to elder abuse; and
- Provide training and resources to law enforcement to identify and respond to elder abuse.
Formed in 2016, the Middle Tennessee Elder Justice Task Force includes representatives from, among others, the FBI; the U.S. Department of Health and Human Services – Office of Inspector General; the IRS-Criminal Investigation; the Tennessee Bureau of Investigation; the Tennessee Commission on Aging and Disability; the Tennessee Department of Health; the Tennessee Attorney General’s Office; the Tennessee Department of Human Services - Adult Protective Services; and the Tennessee Commission on Aging and Disability.
Last month, Attorney General William P. Barr also announced the launch of the Department of Justice’s National Nursing Home Initiative to coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department already has initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
The National Nursing Home Initiative reflects the Justice Department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the Department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare, TRICARE, and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice and National Nursing Home Initiatives at http://www.justice.gov/elderjustice/.
In addition, last month, in response to Deputy Attorney General Jeffrey Rosen’s directive, U.S. Attorney Cochran appointed a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to Coronavirus and disaster fraud, to direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. Concerned citizens can report Coronavirus or disaster fraud to [email protected], and fraud related to other government programs, including federally-funded healthcare programs to [email protected]. For a brochure containing awareness/prevention and reporting information on Coronavirus fraud click here.
For more information on Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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U.S Attorneys and FBI warn of potential fraud surrounding SBA loansRead the Press Release
WHEELING, WEST VIRGINIA – The United States Attorney’s Offices of the Northern and Southern Districts of West Virginia, the Federal Bureau of Investigation, and the U.S. Small Business Administration are asking small business owners to be aware of possible scams relating to the CARES Act.
U.S. Attorney Bill Powell in the Northern District of West Virginia, U.S Attorney Mike Stuart in the Southern District of West Virginia , Eugene Kowel, Acting Special Agent in Charge of the FBI Pittsburgh Office, SBA OIG Eastern Region Special Agent-in-Charge Kevin Kupperbusch and Karen Friel, SBA West Virginia District Director, have joined resources in an effort to prevent small businesses already struggling from the restrictions in place because of the COVID-19 pandemic from being victimized a second time by criminals using the program as an opportunity to commit fraud.
“Those who prey on others look for opportunities like the various loans provided to small businesses. United States Attorneys and our respective law enforcement partners, like the FBI, are on the lookout for those predators. We strongly encourage those who become aware of such scams to report it to the authorities so we can take action” said U.S. Attorney Bill Powell, Northern District of West Virginia.
“West Virginia businesses are struggling to survive a once-in-a-lifetime pandemic. The last thing we need are criminals scamming the essential aid meant to help businesses survive,” said U.S. Attorney Mike Stuart, Southern District of West Virginia. “Fraudsters and scammers never miss an opportunity to fraud and scam even in desperate times. Small businesses are the backbone of our state’s economy. We have their back. We will do all we can to protect them.”
"Fraudsters will take advantage of any opportunity to steal money," said FBI Pittsburgh Acting Special Agent in Charge Eugene Kowel. "We recognize that criminals could try to prey on small businesses during this time of fear and anxiety. The FBI works closely with the private sector so companies can make informed decisions in response to malware attacks. Companies can prevent and mitigate malware infection by utilizing appropriate back-up and malware detection systems. They can also train employees to be skeptical of emails, attachments and websites they don’t recognize. If you discover your business is the victim of a fraudulent incident, file a complaint with the FBI’s Internet Crime Complaint Center at ic3.gov."
“Fraudsters prey upon those in vulnerable positions, and this is a critical time for our nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement partners are actively working together to root out fraud in SBA’s programs and bring those responsible to justice. The public is encouraged to learn about potential fraud schemes and scams as a safeguard to being victimized.”
When the CARES Act was signed into law, the doors were opened for small businesses to access $349 billion in federal aid at a most crucial time for entrepreneurs that are balancing the health and safety of their families and themselves while operating their small business. And while small businesses take note of the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP), so do those with bad intentions.
“Unfortunately, small businesses are being targeted at a time they are most vulnerable,” noted SBA West Virginia District Director Karen Friel. “Look out for phishing attacks and scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to acquire personal banking access, or to install ransomware or malware on your computer.”
Entrepreneurs should remember that if anyone asks you for money, they are not legitimate, nor are emails that end in anything but “.gov”.
The SBA does not reach out to initiate a loan, nor does the SBA ask for information previously provided in the application process.
If you have any doubt, reach out to your nearest SBA office to ask. As you are working harder than ever to preserve your business and its employees amid the Coronavirus pandemic, do not allow bad actors to hinder your efforts.
SBA’s Office of Inspector General has published a list of possible scams and fraud schemes to raise public awareness: https://www.sba.gov/document/report--sba-programs-scams-fraud-alerts.
Report fraud, waste, abuse, mismanagement, or misconduct involving SBA programs to the SBA OIG hotline at (800) 767-0385, or online at: https://sbax.sba.gov/oigcss/.
To report any suspicious activity regarding the COVID-19 virus, residents are asked to call the National Center for Disaster Fraud Hotline at 1-866-720-5721or go to Justice.gov/DisasterComplaintForm.
Tampa Man Sentenced to 18 Months in Prison for Passing Counterfeit BillsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Jason Wayne Lovett (45, Tampa) to 18 months in federal prison for passing counterfeit currency. Lovett had pleaded guilty on January 21, 2020.
According to court documents, between April and August 2019, Lovett and his co-conspirators passed and attempted to pass $17,000 in counterfeit $100 bills at locations throughout Hillsborough County. Each of the counterfeit $100 bills had the same serial number. Officers with the Seminole Police Department apprehended Lovett after he attempted to pass a counterfeit $100 bill at the Seminole Hard Rock Hotel and Casino. After Lovett’s arrest, he attempted to obstruct the investigation by trying to destroy his cellphone, which contained evidence related to his crimes.
This case was investigated by the United States Secret Service and the Seminole Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Syracuse Man Indicted for Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Kenneth Houck, 45, of Syracuse, New York, was arraigned yesterday on an indictment charging him with possession of child pornography, announced United States Attorney Grant C. Jaquith and Susan Ferensic, Acting Special Agent in Charge, Albany Field Office, Federal Bureau of Investigation (FBI).
The indictment charges Kenneth Houck with possessing child pornography on a laptop computer. The indictment further alleges that Houck was previously convicted in federal court in Delaware for transporting child pornography. He was sentenced to serve 97 months in prison for that offense. Houck was serving a term of post-imprisonment supervised release in connection with his previous conviction when he allegedly committed the current offense. He has been detained without bail pending a trial, which has not yet been scheduled. Houck is also charged separately with violating his conditions of supervised release.
The charge filed against Houck carries a maximum sentence of 20 years in prison, a mandatory minimum sentence of 10 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. If Houck is found to have violated the terms of his supervised release, he faces up to two additional years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictment and in the supervised release violation petition are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Statement from Assistant Attorney General Makan Delrahim on Sabre and Farelogix Decision to Abandon MergerRead the Press Release
Sabre Corporation and Farelogix, Inc. announced today the termination of their merger agreement.
The Department of Justice filed a civil antitrust lawsuit on Aug. 20, 2019, to block Sabre’s $360 million acquisition of its disruptive rival Farelogix to preserve the significant head-to-head competition between these two companies that has substantially benefitted airlines and consumers.
Following an eight-day bench trial before the Honorable Leonard P. Stark in the U.S. District Court for the District of Delaware, the District Court on April 7 denied the department’s request to block the merger, ruling that it was bound by the Supreme Court’s decision in Ohio v. American Express Co., 138 S. Ct. 2274 (2018) (Amex), to hold that Sabre and Farelogix do not compete in a relevant market despite the District Court’s own factual findings that Sabre and Farelogix do compete. Just two days after the District Court issued its opinion, however, the United Kingdom’s Competition & Markets Authority (CMA) found the deal unlawful under U.K. competition law.
“The United Kingdom’s CMA decision to block Sabre’s acquisition of Farelogix confirms our view that the merger was anticompetitive,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “We were disappointed with the District Court’s application of Amex to this merger case. We already had filed a protective notice to appeal to preserve our appellate options and now are considering whether to move to vacate the District Court’s opinion in light of the Defendants’ decision to terminate their deal.”
Statement by U.S. Attorney Jason R. Dunn on Law DayRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn issued the following statement on Law Day, celebrated on May 1st of each year:
“Today we celebrate Law Day, a day first recognized by President Dwight D. Eisenhower in 1958 and made official by Congress in 1961 to celebrate the rule of law in our society and the protections it provides to liberty and right of equality for all.
“Law Day is particularly significant this year because it is the 100th anniversary of the 19th Amendment, which prohibits any law denying the right to vote because of gender, and in so doing further enshrines the idea that the rule of law applies to - and protects - everyone equally. I am proud of the work that is done every day by our office to protect the rule of law and to stop discrimination, whether it be by enforcing the 19th Amendment or any other federal nondiscrimination provision.
“As we celebrate Law Day, the women and men of the United States Attorney’s Office for the District of Colorado renew their commitment to the rule of law and celebrate its central role in ensuring our freedoms and the integrity of the justice system itself.”
President’s Commission on Law Enforcement and the Administration of Justice Completes Teleconferences on Reentry and Grant ProgramsRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice completed its hearings on reentry, with panels on getting back to work and transitioning from institution to community. The Commission also hosted a hearing on grant programs, featuring perspectives from the field. The hearings were held over three days via teleconference. Each teleconference featured expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 28, the Commission received testimony from BJay Pak, United States Attorney for the Northern District of Georgia; Nate Brown, Director of Programs for the Oklahoma Department of Corrections, and; John Wetzel, Secretary of the Pennsylvania Department of Corrections
Testimony and discussions focused on returning to work after incarceration. U.S. Attorney Pak discussed adapting the Credible Messenger program to reentry. “Prior to release, participants in the [correctional] facility complete classes in job training, soft skills & financial literacy.” Mr. Brown testified that, “the stigma of a felony conviction and its long term effects can be crippling. It is the goal of everyone invested in reentry to help these men and women overcome these issues for themselves, their families and their communities.” Secretary Wetzel provided the final testimony of the day, urging the Commission to look at re-entry as a continuum and a process that begins at a person’s entry into a correctional facility.
On Wednesday, April 29, the Commission concluded its hearing on reentry with testimony from Tim Johnson, Founder and President of the Orlando Serve Foundation; Jay Sanders, Assistant Commissioner for the Georgia Criminal Justice Coordinating Council; Steven Perkins, Warden for the Georgia Department of Corrections Metro Reentry Facility, and; Jean Wright II., Psy.D. Director of Behavioral Health and Justice Related Services for the Philadelphia Department of Behavioral Health and Intellectual disability Services
Testimony and discussion focused on transitioning from incarceration to the community. Mr. Johnson spoke about his organization, Orlando Serve Foundations. “Through our events and our focus on compassionate restorative social justice, we are influencing change within the criminal justice system, improving the community relations with law enforcement, and helping to lift people out of poverty…” Assistant Commissioner Sanders discussed the efforts the Georgia prison system is taking to reduce recidivism rates. “Every individual that enters the Georgia prison system is assessed for their risk and needs using the Next Generation Assessment (NGA). The NGA is a proprietary assessment tool… [that] uses over 300 factors about the offender…” Warden Perkins explained: “It is important to positively affect thinking patterns and behaviors prior to release in order to help these individuals refrain from recidivating. Reentry begins at the time of sentencing, and the purpose of Metro [Reentry Facility] is to put into play the best practices and enhance them as we prepare these men to reenter society – ready to face the challenges that may come, knowing that they can handle whatever they may face and do so successfully.” Dr. Wright testified to the importance of family in breaking the cycle of crime. “We need to develop more creative reentry/reintegration programs that address the myriad of social determinants that impact whether a child has access to both parents, especially access to fathers, even if/when incarceration plays a key role in the reason for separation.”
On Thursday, April 30, the Commission held its hearing on grant programs with testimony from Jennifer Brinkman, Assistant Director of Criminal Justice Programs, Tennessee Department of Administration and Finance; Jackson County (Texas) Sheriff J. Louderback, and; Redondo Beach (Calif.) Police Chief Keith Kauffman.
Testimony and discussion focused on perspectives from the field. Assistant Director Brinkman testified that the grant process can be time consuming and arduous for many applicants. She recommends streamlining the application and reporting process across federal agencies and programs. Sheriff Louderback also stressed the need to simplify the grant process. There are tremendous reporting requirements, the applications are too long, and the wait, which can be eight months or a year, is not efficient. Chief Kauffman reinforced the complexity of writing grants – that they are time consuming and constantly pull him away from his law enforcement duties; however, grants also propel him, because they allow law enforcement agencies to do their jobs better.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.
Audio recordings and transcripts of the hearings will be posted online once available.
Peruvian Man Pleads Guilty to Overseeing Call Centers that Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
A Peruvian man pleaded guilty today to multiple federal felonies for operating a large fraud and extortion scheme, the Department of Justice announced today. Francesco Guerra Perez oversaw a call center in Lima, Peru, that used government impersonation, lies, and threats to take money from thousands of U.S. Spanish-speaking victims, many of whom were elderly.
A federal indictment against Guerra and his co-defendants Rodolfo Hermoza Vega and Johnny Hidalgo Marchan was unsealed upon their Dec. 18, 2019, extradition to the United States. Hermoza and Hidalgo pleaded guilty to conspiring with Guerra to commit mail fraud and wire fraud on Jan. 15, 2020.
According to the allegations in the indictment, Guerra, Hidalgo, Hermoza, and their co-conspirators in Peru falsely posed as attorneys affiliated with the U.S. government and U.S. courts; they threatened victims with deportation, detention, negative marks on their credit reports, confiscation of property, and community service requirements in order to obtain payments from them. U.S. consumers lost more than $1.5 million to the defendants’ fraud scheme. Guerra’s sentencing is set for Monday, June 1, 2020.
“The Department of Justice will pursue and prosecute transnational criminals who defraud U.S. consumers, regardless where the criminals seek to hide,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We are particularly committed to bringing to justice those abroad who falsely claim U.S. government affiliation to defraud and threaten vulnerable American consumers.”
Guerra pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, four counts of mail fraud, seven counts of wire fraud, and one count of attempted extortion. With Guerra’s guilty plea, all five individuals charged in connection with the scheme have been convicted. In addition to Guerra, Hildago, and Hermoza, two other individuals, Maria Luzula, of Miami, and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were previously brought to justice in connection with this scheme. In 2014, Luzula pleaded guilty to numerous felonies and was sentenced to 165 months’ incarceration. Rodriguez Cuya was convicted following a two-week trial and was sentenced to 210 months in prison.
According to the allegations in the indictment, Guerra, Hidalgo, and Hermoza managed and operated a Peruvian call center called Everglades, which was based in Lima, Peru, and which worked in partnership with Angeluz Florida Corporation in Miami, Florida. The defendants and other call center employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
The defendants and other call center employees claimed that the consumers could resolve the supposed debts and avoid the threatened consequences if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Inspector in Charge, Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
The case is being prosecuted by Trial Attorneys Phil Toomajian and Joshua Rothman of the Civil Division’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Owner of U.S. Navy Husbanding Services Provider Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
The owner and Chief Executive Officer of a Republic of Korea–based company, DK Marine, that provided ship husbanding services to the U.S. Navy pleaded guilty today for his role in a bribery conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge David Bell of the Naval Criminal Investigative Service’s (NCIS) Far East Field Office, and Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service’s (DCIS) Transnational Operations Field Office made the announcement.
Sung Yol “David” Kim, 49, a citizen of the Republic of Korea, pleaded guilty to one count of conspiracy to commit bribery before U.S. District Judge Mark A. Goldsmith of the Eastern District of Michigan. Sentencing has been scheduled for Nov. 17, 2020, before Judge Goldsmith.
Pursuant to his guilty plea, Kim admitted that between October 2013 and January 2014, Kim conspired with James Russell Driver III, a civilian U.S. Navy cargo ship captain, and another civilian U.S. Navy employee to have Kim and his company provide husbanding services for Driver’s ship during a December 2013 port visit in Chinhae, Republic of Korea, in violation of appropriate U.S. Navy husbanding procedures. Driver also provided Kim with confidential and other proprietary, internal U.S. Navy information. In exchange, Kim paid bribes to Driver, including personal travel expenses for Driver and his family. Driver pleaded guilty for his role in the conspiracy in March 2019.
NCIS and DCIS investigated the case. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Treatment Facility Pleads Guilty to Health Care FraudRead the Press Release
Tampa, Florida – Marcus Anderson (34, St. Petersburg) has pleaded guilty to health care fraud. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, in April 2011, Anderson opened a treatment facility that offered counseling services in St. Petersburg, Florida. Beginning in or about May 2015, and continuing through April 2018, Anderson stole and misused the billing credentials of doctors to submit more than $1.2 million in false and fraudulent claims to the Florida Medicaid program and related managed care organizations. Anderson sought payment for these fraudulent claims long after the rendering providers had left his employment. The bogus claims also included services that patients had never even received. Anderson falsely claimed that some patients had received counseling and related services at his treatment facility, when he knew the patients were not there. Some patients were hospitalized or in residential living facilities when Anderson falsely claiming they were in his care. The treatment facility was shuttered in 2018.
The case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the Florida Office of Attorney General’s Medicaid Fraud Control Unit. It is being prosecuted by Assistant U.S. Attorney Kristen A. Fiore.
Muskingum County man who owned collection of child pornography, children’s underwear sentenced to 10 years in prisonRead the Press Release
COLUMBUS, Ohio – A New Concord, Ohio man who traded child pornography and paid for underwear worn by minors was sentenced in U.S. District Court today to 120 months in prison and 10 years of supervised release.
John D. Lagle, 32, pleaded guilty in October 2019 to distributing and receiving child pornography.
According to court documents, in January 2019, Lagle began communicating via Kik with an undercover officer posing as the mother of minor daughters.
Lagle and the undercover officer talked for several months on Kik and Wicker. Throughout that communication, Lagle offered to pay the undercover officer for panties worn by the two fictitious daughters and for sexual activity with the two daughters.
On numerous occasions, Lagle sent the undercover officer child pornography he obtained online and pictures he took of minors’ pubic areas.
Investigators executed a search warrant at Lagle’s residence in August 2019, and discovered 50 to 100 images of child pornography on Lagle’s phone and approximately 60 to 70 pairs of children’s panties, including two pairs that the defendant purchased from the undercover officer.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler and other members of the FBI’s Child Exploitation Task Force announced the sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Heather A. Hill is representing the United States in this case.
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Montgomery Man Sentenced to 30 Months in Prison for Federal Gun and Drug ChargesRead the Press Release
Montgomery, Alabama – On Thursday, April 30, 2020, Rodricas Antwan Nelson, a 40-year-old man from Montgomery, Alabama, was sentenced to 30 months in prison for federal gun and drug charges, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Nelson will be on supervised release for three years. He was also ordered to pay a fine of $1,000.00. There is no parole in the federal system.
According to court records, on April 10, 2018, officers with the Montgomery Police Department responded to a disturbance call at a convenience store on South Court Street after Nelson began arguing with the clerk about whether he had stolen beer when he came into the store earlier that evening. When officers arrived at the scene, Nelson fled from the store but was captured after a brief foot chase. Video surveillance from the store cameras showed that Nelson removed a handgun from his clothing and put it in a nearby ice cooler just before the police arrived. When they looked in the cooler, officers found a .380 caliber pistol. Nelson is a convicted felon and is prohibited from possessing a firearm. Following his arrest, officers conducted an inventory search of the vehicle Nelson had driven to the store and found methamphetamine.
After the investigation was complete, a federal grand jury indicted Nelson for being a felon in possession of a firearm and possession of methamphetamine. He pleaded guilty to both charges on January 23, 2020.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Thomas Govan prosecuted the case.
Milwaukee Pain Management Clinic and Physician Agree to Pay at Least $1.35 Million to Resolve Allegations They Violated the False Claims Act and Anti-Kickback StatuteRead the Press Release
United States Attorney Matthew D. Krueger announced today that Center for Pain Management, S.C. (“CPM”), and its owner, Dr. Nosheen Hasan, agreed to pay at least $1.35 million to resolve allegations that they received kickbacks from a urine drug testing laboratory in exchange for ordering medically unnecessary tests for Medicare and Medicaid patients. CPM and Dr. Hasan also agreed to future contingent payments for the next five years, with the amount of the payments based on specified financial criteria. CPM and Dr. Hasan separately entered into an Integrity Agreement with the Office of Inspector General, Department of Health and Human Services (“HHS-OIG”), to monitor ongoing compliance with applicable Medicare and Medicaid rules.
CPM operates pain management clinics in the Milwaukee metropolitan area. Dr. Hasan is the sole owner of CPM and provided pain management services through CPM. As alleged in the Complaint-in-Intervention filed by the United States in the case, CPM and Dr. Hasan received illegal remuneration from Midwest Laboratory Sales & Consulting, LLC (“Midwest”), and its owner, Matthew Samuelson, in exchange for ordering urine drug tests performed by Midwest, in violation of the Anti-Kickback Statute and the False Claims Act.
The government further alleged that CPM and Dr. Hasan ordered these tests despite knowing that they were not medically necessary. Over the course of the more than five-year-long arrangement, CPM and Dr. Hasan ordered thousands of unnecessary tests that were paid for by Medicare and Medicaid and received over $1 million in illegal kickbacks from Midwest for ordering the tests. The government previously resolved its claims against Midwest and Mr. Samuelson, who admitted that they violated the False Claims Act and Anti-Kickback Statute.
“Medicare and Medicaid only pay for tests that are needed by patients, not tests ordered by physicians to line their own pockets,” said United States Attorney Krueger. “As pain management specialists prescribing controlled substances, CPM and Dr. Hasan took advantage of their patients and the government to order thousands of unnecessary drug tests in return for illegal payments from a laboratory. This settlement imposes a significant penalty on CPM and Dr. Hasan and will help make the federal government whole for their wrongdoing.”
“Our watchdog agency will hold accountable medical providers who try to boost their profits by taking kickbacks to bill federal health care programs for medically unnecessary tests,” said Special Agent in Charge Lamont Pugh III, HHS-OIG, Chicago Region. “To help ensure legitimate billing moving forward, we will closely monitor CPM and Dr. Hasan under the terms of an Integrity Agreement.”
Robert Hughes, Special Agent in Charge, Federal Bureau of Investigation, Milwaukee Field Office said: “The FBI prioritizes efforts to stop healthcare fraud and will continue to hold accountable physicians who misuse Medicare and Medicaid dollars. By requiring CPM and Dr. Hasan to repay over $1 million, this settlement underscores that healthcare providers cannot put their interests ahead of their patients or the taxpayers.”
The government’s lawsuit resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. Accordingly, the whistleblower will receive a share of the settlement. The lawsuit is captioned United States ex rel. Fering v. Center for Pain Management, et al., 17-cv-1796, and is pending in the District Court for the Eastern District of Wisconsin.
Assistant United States Attorneys Michael Carter and Lisa Yun represented the government in this matter. The HHS-OIG, FBI, and Drug Enforcement Administration assisted in the investigation. The settlement agreement states allegations only; CPM and Dr. Hasan do not admit liability for the allegations.
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Public Information Officer Kenneth Gales 414-297-1700
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Louisville Man Charged Federally After Barricading Himself in Residence with GunRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman today announced the charging of Christopher Charrier, of Louisville, with being a felon in possession of a firearm.
“Pandemic or no pandemic, LMPD and federal law enforcement remain active partners in seeking to protect our city,” said United States Attorney Russell Coleman. “If you carry or possess firearms in Louisville as either a convicted felon, drug user, or are subject to a domestic violence order, federal prosecution awaits.”
According to the Criminal Complaint filed on April 30, 2020, Charrier barricaded himself in his residence with a firearm on April 29, 2020, when law enforcement attempted to take him into custody for an outstanding warrant. After an extended standoff, Charrier put the firearm down and was taken into custody by the Louisville Metropolitan Police Department and United States Marshal Service’s Fugitive Task Force.
After being read Miranda Rights, Charrier, admitted that he possessed the firearm – a Heckler and Koch model VP9, 9-millimeter handgun. Charrier is a previously convicted felon, convicted in Jefferson County Circuit Court case 20-CR-000314 of Escape Second Degree.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than 10 years in prison, a $250,000 fine, and three years of supervised release. There is no parole in the federal system.
This case is being prosecuted by Assistant United States Attorney Tom Dyke. The United States Marshal’s Fugitive Task Force, the Louisville Metro Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation.
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A Criminal Complaint is an accusation only and
the person is presumed innocent until and unless proven guilty.
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Louisiana United States Attorneys Announce $9,688,333 Award to Address COVID-19 Pandemic in LouisianaRead the Press Release
United States Attorney Brandon J. Fremin, Middle District of Louisiana, David C. Joseph, Western District of Louisiana, and United States Attorney Peter G. Strasser, Eastern District of Louisiana, jointly announced today that the State of Louisiana received $9,688,333 in a Department of Justice grant to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant to Louisiana Commission on Law Enforcement is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition to the state award, $5,039,791 has been allocated to local agencies throughout Louisiana, with $2,282,168 being set aside for 22 jurisdictions in the Western District, $1,946,546 for 12 jurisdictions in the Eastern District of Louisiana, and $811,077 for five jurisdictions in the Middle District of Louisiana. 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.
U.S. Attorney Fremin stated, “This funding is a tremendous boost allowing law enforcement and first responder agencies to enhance their efforts in combatting COVID-related personnel and community issues specific to their jurisdictions. This grant serves as another demonstration of the Department’s commitment to support law enforcement’s front line efforts in not only protecting themselves in the line of duty, but also the citizens and communities they serve.”
“Our law enforcement officers and first responders are facing new challenges posed by COVID-19 and need our support,” said U.S. Attorney Joseph. “This grant will help provide our officers with the tools they need to maintain public health and safety as we battle the coronavirus pandemic. I thank our law enforcement partners for their service to the citizens of the Western District of Louisiana and encourage them to take advantage of this funding opportunity.”
“The citizens of Southeast Louisiana have been severely affected by the onslaught of COVID-19 throughout their communities. Without the unwavering dedication and selflessness of first responders and public safety professionals, who are on the frontlines of this battle, our community would be adrift. The allocation of these funds provides the opportunity to support those who support us,” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“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, and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.
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. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
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.
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.
Louisiana United States Attorneys Announce $9,688,333 Award to Address COVID-19 Pandemic in LouisianaRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – United States Attorney David C. Joseph, Western District of Louisiana, United States Attorney Brandon J. Fremin, Middle District of Louisiana, and United States Attorney Peter G. Strasser, Eastern District of Louisiana, jointly announced today that the State of Louisiana received $9,688,333 in a Department of Justice grant to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant to Louisiana Commission on Law Enforcement is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition to the state award, $5,039,791 has been allocated to local agencies throughout Louisiana, with $2,282,168 being set aside for 22 jurisdictions in the Western District, $1,946,546 for 12 jurisdictions in the Eastern District of Louisiana, and $811,077 for five jurisdictions in the Middle District of Louisiana. 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.
“Our law enforcement officers and first responders are facing new challenges posed by COVID-19 and need our support,” said U.S. Attorney Joseph. “This grant will help provide our officers with the tools they need to maintain public health and safety as we battle the coronavirus pandemic. I thank our law enforcement partners for their service to the citizens of the Western District of Louisiana and encourage them to take advantage of this funding opportunity.”
U.S. Attorney Fremin stated, “This funding is a tremendous boost allowing law enforcement and first responder agencies to enhance their efforts in combatting COVID-related personnel and community issues specific to their jurisdictions. This grant serves as another demonstration of the Department’s commitment to support law enforcement’s front line efforts in not only protecting themselves in the line of duty, but also the citizens and communities they serve.”
“The citizens of Southeast Louisiana have been severely affected by the onslaught of COVID-19 throughout their communities. Without the unwavering dedication and selflessness of first responders and public safety professionals, who are on the frontlines of this battle, our community would be adrift. The allocation of these funds provides the opportunity to support those who support us,” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“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, and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.
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. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
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.
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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.
Louisiana United States Attorneys Announce $9,688,333 Award to Address COVID-19 Pandemic in LouisianaRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser, Eastern District of Louisiana, United States Attorney David C. Joseph, Western District of Louisiana, United States Attorney Brandon J. Fremin, Middle District of Louisiana, jointly announced today that the State of Louisiana received $9,688,333 in a Department of Justice grant to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant to Louisiana Commission on Law Enforcement is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition to the state award, $5,039,791 has been allocated to local agencies throughout Louisiana, with $2,282,168 being set aside for 22 jurisdictions in the Western District, $1,946,546 for 12 jurisdictions in the Eastern District of Louisiana, and $811,077 for five jurisdictions in the Middle District of Louisiana. 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.
“Our law enforcement officers and first responders are facing new challenges posed by COVID-19 and need our support,” said U.S. Attorney Joseph. “This grant will help provide our officers with the tools they need to maintain public health and safety as we battle the coronavirus pandemic. I thank our law enforcement partners for their service to the citizens of the Western District of Louisiana and encourage them to take advantage of this funding opportunity.”
U.S. Attorney Fremin stated, “This funding is a tremendous boost allowing law enforcement and first responder agencies to enhance their efforts in combatting COVID-related personnel and community issues specific to their jurisdictions. This grant serves as another demonstration of the Department’s commitment to support law enforcement’s front line efforts in not only protecting themselves in the line of duty, but also the citizens and communities they serve.”
“The citizens of Southeast Louisiana have been severely affected by the onslaught of COVID-19 throughout their communities. Without the unwavering dedication and selflessness of first responders and public safety professionals, who are on the frontlines of this battle, our community would be adrift. The allocation of these funds provides the opportunity to support those who support us,” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“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, and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees, and correctional personnel.
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. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
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.
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.
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Little Eagle Woman Charged with Assault with a Dangerous WeaponRead the Press Release
United States Attorney Ron Parsons announced that a Little Eagle, South Dakota, woman has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Georgianne Madison, II, age 38, was indicted on March 9, 2020. She appeared before U.S. Magistrate Judge William D. Gerdes on April 30, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 10, 2019, Madison assaulted an individual with a knife and the assault resulted in serious bodily injury.
The charges are merely accusations and Madison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirsten Jasper is prosecuting the case.
Madison was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.