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29 April 2020
Colorado U.S. Attorney's Office Joins Department of Justice to Target COVID-19 Related Housing Predatory PracticesRead the Press Release
DENVER – United States Attorney Jason R. Dunn has announced that the District of Colorado, in conjunction with the Department of Justice, will take legal action against anyone trying to capitalize on the current COVID-19 crisis by sexually harassing those in need of housing or struggling financially to stay in rental housing. U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials to combat housing related sexual harassment. The Justice Department and U.S. Attorneys stand ready to take aggressive action against housing-related sexual harassment whenever and wherever it occurs.
“The Colorado U.S. Attorney’s Office is committed to assisting victims of harassment and will work with law enforcement to ensure reports of landlord predatory practices related to COVID-19 will be aggressively investigated,” said U.S. Attorney Jason Dunn. “Those who target tenants, especially during this national crisis, will not be tolerated and violators are prosecuted.”
"The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated." said Attorney General Barr. To address predatory practices by unscrupulous landlords, Attorney General Barr directed the Department’s Civil Rights Division and U.S. Attorney’s to coordinate efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
As the country adopted drastic measures to slow the spread of COVID-19, Americans have lost jobs with many more having their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent. Many landlords responded to these circumstances with understanding by working with tenants during the crisis. Other landlords, however, have demanded sexual favors and other acts of unwelcomed sexual conduct in exchange for deferral of rent payments. This behavior is horrific and illegal.
Anyone who is a victim of sexual harassment by a property owner, or someone who has control over housing resulting from the COVID-19 crisis, should contact:
- Sexual Harassment in Housing Initiative at 1-844-380-6178 or email [email protected]
For more information: www.justice.gov/crt/sexual-harassment-housing-initiative
Brooklyn Man Arrested for Stealing U.S. Mail, Including Government Stimulus ChecksRead the Press Release
A criminal complaint was filed today in federal court in Brooklyn charging Feng Chen with theft of mail, including credit cards, multiple checks and nine Economic Impact Payments (“EIP”) from the United States Treasury Department, otherwise known as “stimulus payments.” Chen was arrested yesterday and will make his initial appearance via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), J. Russell George, Treasury Office of Inspector General for Tax Administration (TIGTA), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest.
"For many families, these stimulus checks are a lifeline in these difficult times and anyone who tries to cut that lifeline will face the full weight of the law,” stated United States Attorney Donoghue. “This Office will vigorously prosecute all those who seek to take advantage of the public health crisis. I commend the NYPD police officers for their truly outstanding work and service under difficult conditions.”
Mr. Donoghue urged the public to report suspected fraud related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. For information on how to identify or report fraud involving Economic Impact Payments, visit tips.tigta.gov.
“The COVID-19 crisis has placed tremendous stress on underserved communities across this country. The Economic Impact Payments are, in many cases, the lifeline needed by these individuals to stay afloat during this crisis. When Mr. Chen stole these checks, he robbed recipients of these much needed funds. Postal Inspectors and their law enforcement partners have no tolerance for the theft of mail, especially during these unprecedented times”, stated USPIS Inspector-in-Charge Bartlett.
“The Treasury Inspector General for Tax Administration (TIGTA) is the agency responsible for protecting the integrity of the Internal Revenue Service, including the theft of Economic Impact Payments. We are committed to working with our law enforcement partners to investigate any individual that engages in criminal activity to victimize taxpayers and exploit this national crisis for their own benefit,” stated TIGTA George.
“The NYPD recognizes how the COVID-19 pandemic presents an opportunity for a variety of malicious, criminal scams. In this case, I applaud our alert detectives and federal partners for interrupting an alleged scheme to victimize New Yorkers by stealing important mail and stimulus money meant to aid them during this unprecedented crises,” stated NYPD Commissioner Shea.
According to the complaint and statements made in court, in the early morning hours of April 28, 2020 in Sunset Park, New York, NYPD police officers observed Chen look inside the medical collection bin at a closed medical office and then walk to a nearby residential building and examine mail left at the door. Chen then walked into the gated area of a second residential building and left carrying what appeared to be mail. Chen saw the police officers and tossed mail on the sidewalk. The officers exited their vehicle and observed a bulge in Chen’s jacket pocket. The officers searched Chen and recovered checks, EIPs totaling more than $12,000, credit cards, opened envelopes and letters bearing the names of various individuals and mail addresses.
The charge in the complaint is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Chen faces a maximum of five years’ imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
The Defendant:
FENG CHEN
Age: 31
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-337
Brazilian National Sentenced for Producing False Identification DocumentsRead the Press Release
BOSTON – A Brazilian national who previously resided in Framingham was sentenced yesterday for producing false identification documents and Social Security card fraud.
Cristiano Ribeiro De Moura, 33, was sentenced by U.S. District Court Judge Allison D. Burroughs to time served (roughly 8 months) in prison and one year of supervised release. In January 2020, Ribeiro De Moura pleaded guilty to producing a false identification document, aiding and abetting and Social Security card fraud.
Ribeiro De Moura sold four counterfeit Lawful Permanent Resident cards and four counterfeit Social Security cards in July and August 2019. Ribeiro De Moura charged $350 for a set of fake documents, which included one Lawful Permanent Resident card and one Social Security card. The buyers provided their name and date of birth, and Ribeiro De Moura provided the Social Security number.
United States Attorney Andrew E. Lelling; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit prosecuted the case.
Beware of Scammers Still Looking to Profit from CoronavirusRead the Press Release
NOTE: This press release has been updated with additional information since its original release (4-29-20) to provide a link to a new online COVID-19 Fraud reporting form and an updated downloadable pamphlet reflecting this change.
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma reminds everyone that even as we begin moving toward resumption of normal lives, fraudsters will continue their schemes to take advantage of the coronavirus pandemic. The best defense is to remain vigilant knowing there are a number of methods criminals will try to profit at your expense. The United States Attorneys for the Eastern, Western and Northern Districts are partnering with the Oklahoma Attorney General to identify, investigate, and prosecute fraud related to the ongoing coronavirus pandemic in Oklahoma.
“Attorney General Barr has instructed U.S. Attorneys to make it a priority to investigate and stop coronavirus fraud, and we will continue to do so even while Oklahomans are beginning to see the light at the end of the tunnel. We would also like to stop fraud before it happens by reminding everyone to watch for scams and exercise caution accordingly,” said United States Attorney Brian J. Kuester. “If you have been a victim or you suspect someone has attempted to defraud you or a family member, please report it. Information you provide may help to put an end to a criminal’s scheme before additional victims fall prey.”
The best protection from becoming a victim is being informed. Examples of COVID-19 fraud include: economic impact scams, supply scams, provider scams, charity scams, phishing scams, mobile app scams, investment scams, price gouging and unemployment fraud. Attached is a
COVID-19 Fraud Tri-Fold Brochure that discusses these types of fraud, details specific ways you can protect yourself from COVID-19 fraud, as well as what to do if you suspect you have become the victim of fraud.For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC). We urge you: don’t fall victim to these frauds. If you have, please report COVID-19 fraud to the National Center for Disaster Fraud hotline by phone at (866) 720-5721 or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. You may also report fraud to the Oklahoma Attorney General’s Consumer Protection Unit by phone at (405) 521-2029 or by email at [email protected]. You can also find this press release and more on our webpage at www.justice.gov/usao-edok or via Twitter at @USAO_EDOK.
Ardmore Bank Robber Sentenced to 147 Months in Federal PrisonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Zachary Gage Pebley, age 22, of MaComb, Oklahoma was sentenced to 147 months’ imprisonment, and 3 years’ supervised release for Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and for Use, Carry, and Brandish a Firearm During and in Relation to a Crime of Violence, in violation of Title 18 United States Code, Section 924(c)(1)(A)(ii). Pebley’s jury trial began on January 21, 2020 and concluded on January 22, 2020 with a guilty verdict. The verdict was the result of an investigation by the Federal Bureau of Investigation and the Ardmore Police Department. Sentencing occurred following the completion of a presentence report.
Evidence presented at trial proved to the jury that on October 15, 2019, the defendant entered the Bank of the West in Ardmore, Oklahoma wearing a black hat, sunglasses and a white bandana over his face. He approached and pointed a gun at a bank teller demanding that money be placed into a pillowcase. After receiving the money the defendant fled the bank, and within minutes was pursued and detained briefly by a bystander who had seen him running from the area of the bank. Shortly thereafter, officers with the Ardmore Police Department located the defendant hiding in a back yard and arrested him.
United States Attorney Brian J. Kuester said, “Alert victims, a willing bystander, rapid response by the Ardmore Police Department, and their thorough investigation with the Federal Bureau of Investigation led to swift justice against the defendant in just over six months following his crime. This investigation and prosecution was a result of teamwork at its finest – local and federal law enforcement agencies working together with the communities they serve and protect.”
“Armed bank robbery is a serious violent crime which is aggressively investigated, prosecuted and punished," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The quick intervention by a good Samaritan led to the apprehension of Mr. Pebley by the Ardmore Police Department. This is an example of how the FBI, our law enforcement partners, and Oklahomans work together to defend their community against those who commit violent crime."
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorneys Dean Burris and Ryan Conway represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-parolable sentence will be served.
28 April 2020
Washington County Man Indicted on Cocaine Distribution ChargesRead the Press Release
ALBANY, NEW YORK – Victor Aguero Vasquez, age 45, of Granville, New York, was arraigned last week on an indictment charging that he conspired to distribute and possess with intent to distribute more than 5 kilograms of cocaine, and that he possessed firearms in furtherance of his drug distribution operation. The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
Vasquez was arraigned on April 21 in Albany before United States Magistrate Judge Daniel J. Stewart, and ordered detained pending a trial before Senior United States District Judge Frederick J. Scullin, Jr. According to the indictment and a previously filed criminal complaint, Vasquez worked with a co-conspirator to possess and distribute more than 5 kilograms of cocaine between November 2018 and September 2019 in Saratoga and Washington Counties. Vasquez also possessed additional cocaine, drug processing paraphernalia, and multiple firearms at his residence.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted on all counts, Vasquez faces at least 15 years and up to life in prison, a fine of up to $10 million, 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.
Vasquez’s co-conspirator, Nestor Cordero-Hernandez, age 43, of Fort Ann, New York, pled guilty in March 2020 to conspiring to distribute more than 500 grams of cocaine and more than 50 grams of methamphetamine. He is scheduled to be sentenced on July 2.
This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Victims of Sexual Harassment in Housing Encouraged to Report WrongdoingRead the Press Release
Today, Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa, announced that he will be using all available tools to combat sexual harassment in housing. The United States Attorney’s Office will target unscrupulous landlords who attempt to take advantage of the pandemic by demanding sexual favors or sexually harassing tenants who, because of the pandemic or for any other reason, are unable to make timely rent payments.
As a result of the measures taken to slow the spread of COVID-19, many Iowans have lost jobs or wages. Some tenants may be unable to make rent payments. While many landlords have responded with understanding, there are reports of landlords across the country who have attempted to exploit the crisis by responding to cash-strapped tenants with demands for sex acts or inappropriate sexual favors. Such conduct is not only despicable and wrong, it is illegal.
“My office will work with all available partners, including state, local, and tribal officials, to address sexual harassment in housing, especially during this national crisis,” said Peter E. Deegan, Jr., United States Attorney for the Northern District of Iowa. “We will use every means at our disposal to investigate, prosecute, and hold responsible anyone who sexually harasses tenants or prospective tenants. Combatting sexual harassment associated with housing has been a priority for the Department of Justice for years and it remains a priority during this unique time in history. Such conduct cannot be tolerated.”
To report instances of sexual harassment in housing, individuals with knowledge of wrongdoing can call the Department of Justice’s Sexual Harassment in Housing Initiative at 1-844-380-6178 or email [email protected]. More information is also available at www.justice.gov/crt/sexual-harassment-housing-initiative and www.justice.gov/crt/page/file/1048341/download.
U.S. Attorneys Say Strike Force Combats Drugs, Violence in the St. Louis Metropolitan AreaRead the Press Release
St. Louis – A new St. Louis Organized Crime Drug Enforcement Task Force (OCDETF) Gateway Strike Force is combatting drug traffickers and violent criminals on both sides of the Mississippi River, Adam Cohen of the DOJ OCDETF Executive Office, U.S. Attorney Steve Weinhoeft in the Southern District of Illinois (SDIL), and U.S. Attorney Jeff Jensen in the Eastern District of Missouri (EDMO) announced today.
The St. Louis OCDETF Gateway Strike Force represents an incredible investigative force to address major drug trafficking organizations, gangs and associated violence, including murders, in the St. Louis Metropolitan Region. The Strike Force brings together under one roof federal investigative agencies including the Drug Enforcement Administration (DEA), the St. Louis Field Office of the Federal Bureau of Investigation (FBI), Homeland Security Investigations (HSI), the United States Marshals Service (USMS), United States Postal Investigation Service (USPIS), the Internal Revenue Service Criminal Investigations (IRS), and the United States Secret Service (USSS) along with State and local law enforcement offices including the St. Louis County Police Department, St. Louis City Police Department, Missouri State Highway Patrol, St. Charles County Police Department, St. Charles City Police Department, Chesterfield Police Department, Manchester Police Department, Webster Groves Police Department, Woodson Terrace Police Department, and the Missouri National Guard.
A satellite office located in Illinois will include members of the DEA, FBI Springfield, Illinois State Police, and the aforementioned agency partners along with prosecutors from the SDIL and the EDMO who will pursue criminal charges in federal court. Although the Strike Force is designed to generate federal prosecutions, it is anticipated that some Strike Force cases will be suitable for prosecution in state courts in St. Louis City and St. Louis County. The ongoing cooperation of the Circuit Attorney’s Office of the City of St. Louis and the Office of the Prosecuting Attorney of St. Louis County is a significant and appreciated factor in the Strike Force’s ongoing efforts.
This unique entity brings to bear the investigative experience and expertise of these various law enforcement agencies and equips them with additional resources to investigate and dismantle, through federal and state prosecution, criminal organizations involved in drug trafficking, murders, other acts of violence, and other criminal activity.
The Director of the Organized Crime Drug Enforcement Task Forces, Adam Cohen, wanted to be here to celebrate the announcement of this newest OCDETF Strike Force, but the restrictions related to the current public health crisis prevented his traveling to St. Louis from Washington. He released the following statement:
“The OCDETF co-located Strike Forces Initiative provides for the establishment of permanent prosecutor-led, multi-agency task force teams that work side-by-side in the same office space where they partner to conduct intelligence-driven, multi-jurisdictional operations against priority targets and their illicit financial networks. With the addition of the St. Louis Gateway Strike Force, OCDETF now has 19 Strike Forces operating throughout the country.
“The OCDETF Program is the keystone of the U.S. Attorney General’s strategy to reduce the availability of illicit narcotics throughout our nation using a prosecutor-led, multi-agency approach to combat transnational organized crime. The role of OCDETF is to facilitate joint operations by focusing its partners on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
“The St. Louis Gateway OCDETF Strike Force is a joint effort led by the United States Attorneys in the Eastern District of Missouri and the Southern District of Illinois. This newest OCDETF Strike Force features agents from at least seven federal agencies and two state and local law enforcement agencies. These U.S. Attorneys’ offices are working together, across state lines and judicial districts, in a regional approach to combat criminal organizations and the violence they inflict on the community. Criminals do not recognize state boundaries or county lines and neither will we.
“As illicit drug production, transportation, and distribution continue to plague our nation and the safety of our citizens, OCDETF remains the targeting, coordination, and intelligence platform for combatting high-level drug trafficking and its attendant violent crime.
“It is a privilege to acknowledge the multi-agency effort demonstrated today by the announcement of the opening of the St. Louis Gateway OCDETF Strike Force. This new Strike Force team doesn’t just join 18 other Strike Forces, it joins the largest anti-crime task force in the country – OCDETF is made up of over 550 federal prosecutors, 2,000 federal agents, 40,000 state and local law enforcement officers from almost 1,200 police agencies, and an intelligence fusion center.”
In conclusion, Mr. Cohen stated that, “I offer my sincerest congratulations to U.S. Attorneys Jeff Jensen and Steve Weinhoeft as they formally open the St. Louis Gateway Strike Force which will serve and protect the community for years to come with a prosecutor-led, multi-agency approach to combating the command and control elements of organized criminal networks.”
Chief Jon Belmar, St. Louis County Police Department, stated that, “This Strike Force designation will provide additional resources as our Law Enforcement community works together to provide a safer St. Louis region. Removing the most violent criminals from our streets is our top priority, and I am proud of the collaboration that exists between Local Law Enforcement, our Federal partners and the United States Attorney’s Office. Congratulations to all who have worked so diligently to move this forward in the effort of a safer St. Louis.”
“Mark Twain once famously described the Mississippi River as a ‘lawless stream’ that cannot be tamed. Today, the challenge we face isn’t the water itself but the flow of illegal drugs that cross the river each day. That flow of illegal drugs fuels violence, overdoses, addiction, and countless other societal harms. We remain committed to disrupting and dismantling drug trafficking organizations in the St. Louis metropolitan area, and through the formation of this joint strike force, we now have important new resources at our disposal to stem the tide,” stated U.S. Attorney Steve Weinhoeft, U.S. Attorney’s Office, Southern District of Illinois.
Jensen stated that, “The new Strike Force will have a major impact in reducing the trafficking of fentanyl, heroin, methamphetamine and other drugs throughout the St. Louis Metropolitan area and the Midwest. The Strike Force is a powerful tool to target those organizations involved in many of the murders and other violent acts in our region. These groups are organized, compartmentalized, secretive, and often ruthless. Therefore, it takes a powerful tool, a Strike Force, to dismantle these predatory organizations.”
Jensen extended his thanks to Attorney General William Barr and the DOJ OCDETF Executive Office for designating St. Louis as a Strike Force location.
Jensen further stated, “I am particularly honored to formalize our Gateway Strike Force partnership with our counterparts in the Southern District of Illinois. Steve Weinhoeft, federal prosecutors, and officers and agents in the Southern District are strong and effective law enforcement partners. Organized and violent drug traffickers do not recognize state lines. Our combined resources will enable us to dismantle criminal organizations that impact both sides of the river.”
ST. LOUIS JOINS OCDETF STRIKE FORCES NATIONWIDE
The Justice Department’s Organized Crime and Drug Enforcement Task Forces (OCDETF) oversees the Strike Force initiative. St. Louis joins OCDETF Strike Forces in major cities including Atlanta, Baltimore, Boston, Chicago, Cleveland, Denver, El Paso, Houston, Kansas City, Los Angeles, New York, North Texas, Phoenix, Sacramento, San Diego, San Juan, Southeast Michigan, and Tampa.
MISSION: DISRUPT, DISMANTLE CRIMINAL ORGANIZATIONS
The goal of the Strike Force is to disrupt and dismantle criminal organizations, including gangs, cartels, and others that are trafficking in drugs and firearms, or engaging in money laundering.
Participating agencies have agreed to assign full-time personnel to the Strike Force. Police officers, federal agents, and prosecutors are working together under one roof. For security reasons, the location will not be made public.
An FBI Assistant Special Agent in Charge and a DEA Assistant Special Agent in Charge manage the Strike Force’s teams: a major crime squad, a major threat squad, and a fugitive squad. A Strike Force Executive Council, whose members include both U.S. Attorneys, will oversee the Strike Force.
CASES FILED
Some of the law enforcement agencies comprising The St. Louis OCDETF Gateway Strike Force started working together over the last several years as a prelude to the formation of the Strike Force. Examples of their work include:
U.S. v. Velazquez, et al: Thirty-four defendants were indicted for their roles in a large-scale drug trafficking conspiracy or related offenses. Agents seized approximately $1.3 million dollars, and more than sixty kilograms of cocaine. The indictment alleges that members of the organization committed multiple murders as part of the drug trafficking enterprise. Prosecutors are seeking the death penalty against one of the members of the organization alleged to have been involved in murders. Many of the defendants in this case have pled guilty in federal court.
U.S. v. Goolsby, et al: Fifteen defendants were indicted in this drug trafficking conspiracy involving the seizure of approximately 25 kilograms of cocaine, 10 kilograms of heroin, 3 kilograms of fentanyl and over $2,000,000 in currency.
U.S. v. Starr, et al: Nine defendants were indicted in a multi-kilogram methamphetamine conspiracy. Investigators seized approximately 2.3 kilograms of methamphetamine as well as quantities of cocaine, over $50,000 in currency and two firearms.
U.S. v. Johnson, et al: Approximately twenty-one defendants were indicted for their various roles in the trafficking of heroin and fentanyl in and around the Peabody Housing Complex just south of downtown St. Louis. Investigators seized approximately 1.5 kilograms of cocaine, 9 ounces of fentanyl, 27 firearms, and approximately $70,000.00. The indictment alleges that the members of the conspiracy committed a homicide and are responsible for two overdose deaths. Many of the defendants (approximately 15) have pled guilty in federal court.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
The prosecutions announced in this release were brought as a part of the Department of Justice’s OCDETF Co-located Strike Forces Initiative or as the prelude to the designation of the Strike Force. The Strike Force will build upon this work and bring even more resources to bear in identifying and dismantling other large criminal organizations involved in the flow of drugs to our community and associated murders and other violence. The Strike Force, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location, will only strengthen successful prelude partnerships. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led, co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s illicit drug reduction strategy. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
STATEMENTS FROM PARTNERS
Agency officials who are working with the Strike Force made the following statements:
FBI Special Agent in Charge, Springfield, Illinois Division, Sean M. Cox stated, "The Springfield Division of the FBI is proud to collaborate with FBI St. Louis as well as our federal and state law enforcement partners to combat the most prolific criminals operating between St. Louis and East St. Louis. It is only by way of focused law enforcement operations and prosecutorial relationships that we can make a positive impact in our communities and hold these criminals accountable for their actions."
"This Gateway Strike Force will use increased funding and expanded partnerships to target violent gangs engaged in drug trafficking, homicides, carjackings, and armed robberies," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "By joining forces with our brethren across the river, it will also make it much more difficult for criminals to exploit geographic and jurisdictional boundaries to evade justice."
“The St. Louis Gateway OCDETF Strike Force will place a special emphasis on the region’s most serious drug and drug violence threats,” said Special Agent in Charge William Callahan, head of the DEA St. Louis Division. “The DEA will bring significant investigative resources, in collaboration with our federal, state, and local law enforcement partners to target the command and control of drug trafficking organizations in the St. Louis Metro and worldwide. We expect the Gateway Strike Force to identify and seize drug-related assets associated with these criminal networks for a well-rounded, targeted approach to their dismantlement.”
Katherine Greer, Homeland Security Investigations Special Agent in Charge, Kansas City stated, “The creation of the St. Louis Strike Force provides a collaborative effort, serving as a force multiplier to effectively protect the public, by targeting the command structure of major international criminal organizations. HSI brings a unique expertise to combatting violent crime utilizing over 400 federal statutes involving narcotics smuggling, weapons violations, money laundering and immigration enforcement.”
“Our citizens have heard me say on numerous occasions that at least 50% of our City’s homicides and gun violence is drug-related; not to mention the fact that drug overdoses in our City have ravaged through our community as well. The Drug Strike Force will be a regional effort which promises to have a meaningful impact on the City’s gun violence and overdose rate. I am thankful for the opportunity to participate on the Strike Force and I am looking forward to reaping the benefits of its presence in our region,” stated Police Commissioner John Hayden, St. Louis Metropolitan Police Department.
“The United States Marshals Service serves as the United States Government’s primary fugitive investigation and apprehension agency. As a charter agency within the Organized Crime Drug Enforcement Task Force, the Marshals Service stands ready to help the Strike Force destabilize and disrupt the most serious crime organizations through joint and collaborative fugitive investigations. The Marshals Service in St. Louis has a dedicated group of Deputy U.S. Marshals and Task Force Officers embedded at the St. Louis Gateway Strike Force as a fugitive team. Leveraging the 94 Marshals Service district offices across the country, and proud 230-year history of the U.S. Marshals, this fugitive team will support the Strike Force in investigating, locating, and apprehending the country’s most serious fugitives. We are proud to be a partner agency in this endeavor and commend the work of the United States Attorney’s Office and all other partner agencies that make up the OCDETF Strike Force,” stated John Jordan, United States Marshal, Eastern District of Missouri.
Postal Inspector in Charge Bill Hedrick, of the Chicago Division Postal Inspection Service, St. Louis Field Office, stated, “The United States Postal Inspection Service proudly partners with the agencies involved in the task force to better coordinate investigations. These relationships facilitate communication and data sharing that enable the identification of drug trafficking organizations, which would not be possible without interagency cooperation. This allows the Postal Inspection Service to advance its mission to enforce the laws that defend the nation’s mail, and protect the American public from criminal drug and gang activity which destroys so many lives.”
Karl Stiften, IRS-Criminal Investigation Special Agent in Charge, stated, “IRS-Criminal Investigation (CI) is a proud participant of the St. Louis OCDETF Strike Force. CI special agents contribute our financial investigative skills to track and seize proceeds of illegal activities from the criminals involved. Pooling the skills and resources of each agency makes a formidable team.”
“The United States Secret Service is proud to join forces with our local, state, and federal partners as a member of the St. Louis Gateway OCDETF Strike Force. This collaboration will serve to strengthen our capabilities to directly target major international criminal organizations operating in the St. Louis metropolitan area and around the world,” stated Thomas Landry, Special Agent in Charge, U.S. Secret Service - St. Louis Field Office.
Chief Kurt Frisz of the St. Charles County Police Department stated, “The St. Charles County Police Department has long valued interagency collaborations and we are happy to support this initiative. The Strike Force will play a vital role in dismantling the very complex and transient criminal networks that are plaguing our region, which will increase our ability to solve heinous crimes that have threatened the community’s sense of peace.”
U.S. Attorney Hyslop Wants You to Report Housing-Related Sexual HarassmentRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that he will use all available federal enforcement tools against those who try to capitalize on the COVID-19 crisis by sexually harassing people in need of housing, and is asking the individuals in the community to report housing-related sexual harassment.
United States Attorney Hyslop said, “The vast majority of landlords in our community have responded to the housing problems created by COVID-19 with care and compassion for their tenants. Those landlords should be commended and thanked. Unfortunately, there are also reports around the country of some landlords taking advantage of the financial hardships of their tenants by demanding sex-for-rent or otherwise sexually exploiting their tenants. This conduct is absolutely abhorrent, illegal under the Fair Housing Act, and has no place in our community. Sexually harassing a tenant is not who we are as a Nation and especially not who we are during this COVID-19 crisis; this cannot be tolerated.”
The Department of Justice, through the United States Attorney’s Office, remains unwavering in its enforcement of the Fair Housing Act. The Fair Housing Act prohibits sexual harassment in housing. Fair Housing Act cases often involve egregious conduct, including allegations that landlords, property managers, or maintenance workers have exposed their genitals to current or prospective tenants, requested sexual favors in exchange for reduced rents, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted the landlord’s sexual overtures.
“If anyone you know has experienced sexual harassment in housing, please contact the Civil Rights Division of the Department of Justice by calling (844) 380-6178 or emailing: [email protected] with a description of sexually harassing behavior. Individuals in Washington can also contact the Department of Housing and Urban Development (HUD) by calling (800) 877-0246 or emailing: [email protected],” Hyslop said.
To arrange an interview with United States Attorney William Hyslop, contact Debra Doll at (509) 413-6344 or email [email protected]
U.S. Attorney Bryan Schroder Warns Against Predatory Practices Related to Covid-19 and HousingRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder issued a warning today against predatory practices related to COVID-19 and housing. In a recent memorandum, Attorney General William Barr instructed every U.S. Attorney across the country to deploy all available enforcement tools against anyone who tries to capitalize on the current crisis by sexually harassing people in need of housing.
“It’s disturbing to hear that the Department of Justice is receiving reports of landlords exploiting our current national crisis by sexually harassing people in need of housing,” said U.S. Attorney Schroder. “This despicable behavior is illegal, and will be enforced under federal laws. If such reports are received in Alaska, the U.S. Attorney’s Office, together with our federal, state, and local law enforcement partners, stands ready to hold these predatory landlords accountable.”
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. There have been reports across the country, however, of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials. 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:
- Sexual Harassment in Housing Initiative at 1-844-380-6178
- Email: [email protected]
- Local authorities
For more information, you can visit www.justice.gov/crt/sexual-harassment-housing-initiative and https://www.hud.gov/program_offices/fair_housing_equal_opp/sexual_harassment.
For more facts on how to report sexual harassment in housing, you can visit: www.justice.gov/crt/page/file/1048341/download.
U.S. Attorney Brady Announces $42K Grant to Address COVID-19 Pandemic in the City of AltoonaRead the Press Release
PITTSBURGH - U.S. Attorney Scott W. Brady today announced that the City of Altoona Pennsylvania, received $42,842 in Department of Justice grants to purchase supplies that are essential for responding to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the City of Altoona is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. According to U.S. Attorney Brady, an additional $1,369,225 has been allocated for other local counties, cities, and municipalities in Western Pennsylvania. The U.S. Attorney’s Office has discussed this grant with each of those eligible jurisdictions, which are listed on this website. In addition, the Pennsylvania Commission on Crime and Delinquency has been awarded $17.6 million in grants that can be distributed to eligible governmental agencies throughout Pennsylvania, including western Pennsylvania. 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.
"The men and women on the front line of this pandemic deserve our deepest appreciation for answering the call to serve regardless of the danger," U.S. Attorney Brady said. "The public safety funds being made available through DOJ’s Coronavirus Emergency Supplemental Funding program can be used for the most pressing needs of our state and local partners, including new hiring and overtime pay, training, critical personal protective equipment and supplies, and the medical needs of prisoners."
"We are grateful for this grant," added Janice Freehling, Chief of Police of the Altoona Police Department. "The funds will allow us to purchase the supplies necessary to help keep our citizens and employees safe while combatting the coronavirus."
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Two Individuals Arrested for Conspiring to Violate the Defense Production ActRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kent Bulloch and William Young, Sr., with conspiracy to violate the Defense Production Act by seeking to resell one million KN95 protective masks in New York City at a 50 percent mark-up. Bulloch, an attorney, was arrested Monday night in California and will make his initial appearance via teleconference in federal court in San Francisco and Young will appear via teleconference in federal court in Phoenix.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the charges.
On March 18, 2020, in response to the COVID-19 pandemic, President Donald Trump issued Executive Order 13909 invoking the Defense Production Act making it illegal to acquire medical supplies and devices designated by the Secretary of Health and Human Services (HHS) as scarce in order to hoard them or sell them for excessive prices.
According to court filings, between March 2020 and April 2020, Bulloch and Young sought out potential investors to sell one million KN95 respirator masks for double or triple the purchase price. To conceal their exorbitant markup on the masks, Bulloch created and signed an escrow agreement for a purported investor that falsely stated that the profits on the re-sale of the masks would not exceed 10 percent. Unbeknownst to the defendants, the purported investor was a federal law enforcement agent.
“As alleged, the defendants conspired to turn a huge profit from the urgent need for surgical masks in New York during the pandemic,” stated United States Attorney Donoghue. “When the Attorney General said that those engaged in price gouging should expect a knock on the door, he meant it and when we knock with one hand, we usually have a warrant in the other.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices in New Jersey, the Northern District of California and the District of Arizona, and the San Francisco and Phoenix Field Offices of the FBI and IRS-CI for their invaluable assistance in this case.
“This is precisely the type of price gouging for which Attorney General Barr created our nationwide task force,” stated Carpenito. “The Department of Justice will not allow greedy profiteers to take advantage of the public during this health crisis.”
“While the need for an influx of medical equipment and supplies continued to mount as a result of the COVID-19 crisis, Young and Bulloch allegedly claimed they could acquire approximately one million highly sought after KN95 masks. As detailed in the complaint, the next phase of their plan was pretty straightforward--find investors who would sell these masks for far more than their purchase price, in turn earning the defendants a 50 percent mark-up on the sale. It's hard to believe anyone could take advantage of a situation like this, but this case clearly proves that theory wrong. The FBI is proud to work with all of our partners as we confront the threats posed by those who are looking to game the system in this current environment,” stated FBI Assistant Director-in-Charge Sweeney.
“The invocation of the Defense Production Act was implemented to protect our healthcare workers, the heroes of 2020,” stated IRS-CI Special Agent-in-Charge Larsen. “As alleged, Bulloch and Kent attempted to personally enrich themselves by preying on potential investors during this pandemic.”
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to one year in prison.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being handled by the Office’s Public Integrity and Business & Securities Fraud Sections. Assistant United States Attorneys Nathan Reilly and Hiral Mehta are in charge of the prosecution.
The Defendants:
KENT BULLOCH
Age: 56
Santa Rosa, CaliforniaWILLIAM YOUNG, SR. (also known as “Bill”)
Age: 64
Phoenix, ArizonaE.D.N.Y. Docket No. 20-MJ-327
Three Alabama U.S. Attorneys Announce $9,645,679.00 Award to Address Covid-19 PandemicRead the Press Release
Montgomery, Alabama – United States Attorney Louis V. Franklin, Sr., for the Middle District of Alabama, United States Attorney Jay E. Town, for the Northern District of Alabama, and United States Attorney Richard W. Moore, for the Southern District of Alabama, are pleased to announce that the state has received $9,645,679.00 in Department of Justice grants to respond to the challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program and was authorized by the recent stimulus legislation signed by President Trump. In addition to the state award, over $4.8 million has been allocated to local agencies throughout Alabama, with $1,182,725.00 being set aside for fifteen jurisdictions here in the Middle District. 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. Jurisdictions not listed for individual allocations may be eligible to apply for part of the state funding through the Alabama Department of Economic and Community Affairs.
“As the coronavirus crisis continues, every day law enforcement officers and first responders knowingly put themselves at risk of exposure as they do their jobs serving and protecting the community,” stated U.S. Attorney Louis V. Franklin, Sr. “This funding will help the State of Alabama and numerous local agencies that are struggling with limited resources to address many critical needs. I encourage all agencies eligible to apply for funding to do so.”
“The COVID- 19 pandemic has created many challenges for law enforcement and our first responders to safely perform important duties,” said Jay E. Town, U.S. Attorney for the Northern District of Alabama. “These funds from DOJ will be used to ensure that our brave men and women of the badge can continue the mission of safeguarding the citizens of our great state.”
“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.
Suspected Neo-Nazi Sentenced to 2.5 Years for Gun CrimeRead the Press Release
A suspected neo-Nazi has been sentenced to 30 months in federal prison for a gun crime, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Aiden Bruce-Umbaugh, 23, pleaded guilty to possession of firearms and ammunition by a prohibited person in Lubbock in January. Appearing via video teleconference from the Lubbock County Detention Center, the defendant was sentenced today before U.S. District Judge James Wesley Hendrix.
According to his plea papers, Mr. Bruce-Umbaugh – who was arrested in November in Post, Texas, dressed in tactical gear – admitted to possessing AR-15 rifle, two AK-47 rifles, a Sig Sauer 9mm pistol, and assorted ammunition while being an unlawful user of a controlled substance. (Federal law prohibits unlawful users of controlled substances to possess firearms.)
Mr. Bruce-Umbaugh admits he and Kaleb Cole were pulled over in a blue Ford in which law enforcement officers discovered the firearms, a small canister of marijuana, and a vial of THC oil.
Mr. Bruce-Umbaugh – who “avoided eye contact and limited conversation” with law enforcement and denied having anything illegal inside the vehicle during the traffic stop – later admitted that the firearms, marijuana, and THC belonged to him, telling investigators he smoked marijuana on a daily basis, according to plea papers.
In a detention hearing in November, prosecutors argued the government had reason to believe Mr. Bruce-Umbaugh is a member of AtomWaffen Division, a neo-Nazi hate group.
In jailhouse phone calls, Mr. Bruce-Umbaugh allegedly referenced his affiliation with “the group,” declared he was “a Nazi,” and discussed a photo taken of him and another AtomWaffen Division member at the Auschwitz concentration camp, prosecutors said at the detention hearing.
Video released by the Court in February shows the defendant, handcuffed and clad in an orange jumpsuit, telling agents, “I assume you’re here because of my swastika flag and my firearms.”
AtomWaffen propaganda videos also admitted into evidence depict members of the Nazi group at self-described “hate camps,” spewing hateful rhetoric against Jews, practicing hand-to-hand combat and shooting firearms.
“Race war now!” they cry, before one displays a Nazi salute.
“The Northern District of Texas is committed to keeping guns out of the hands of dangerous individuals,” U.S. Attorney Nealy Cox said after the defendant pleaded guilty. “As a drug user, this defendant should never have been allowed to possess firearms. We’re grateful to our law enforcement partners for helpings us keep this defendant, and his guns, off the streets.”
“The amount of weapons and ammunition seized from the defendant could have caused serious harm. Luckily, the FBI and our law enforcement partners successfully intervened before an act of violence could be committed,” FBI Special Agent in Charge Matthew J. DeSarno said then. “The FBI will continue working with our partners to protect the communities we serve.”
The Federal Bureau of Investigation’s Lubbock Resident Agency, the Garza County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives conducted the investigation. Assistant U.S. Attorney Stephen Rancourt is prosecuting the case.
South Jersey Tax Preparer Admits Filing False Income Tax ReturnsRead the Press Release
CAMDEN, N.J. – A South Jersey woman who owns a tax preparation business admitted today to helping her clients file falsified tax returns, U.S. Attorney Craig Carpenito announced.
Gloria Valentin, 48, of Cherry Hill, New Jersey, pleaded guilty by teleconference before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of aiding and assisting in the preparation of false income tax returns.
According to documents filed in this case and statements made in court:
Valentin owned, operated and approved all of the income tax returns filed by GNG Business Solutions in Cinnaminson. She admitted that she prepared approximately 60 income tax returns for 27 tax clients during tax years 2013 through 2016. Those tax returns contained similar patterns of false and fictitious Schedule A itemized deductions and unreimbursed employee business expenses. Valentin and her employees fabricated Schedule A, unreimbursed employee business expenses when none were incurred. Those false expenses resulted in substantially reduced income tax liabilities and resulted in larger refunds for her clients and caused a tax loss of $201,896 to the government.
The charges to which Valentin pleaded guilty carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 8, 2020.
U.S. Attorney Carpenito credited 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 Senior Trial Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Second Employee in Cash Flow Partners’ Bank Fraud Conspiracy Admits Role in Multimillion-Dollar Loan SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a scheme that involved the creation of false documentation to secure over $4 million in bank loans, U.S. Attorney Craig Carpenito announced.
Jennie Frias, a/k/a “Jennie Castillo,” 36, of Englewood, New Jersey, pleaded guilty by teleconference before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Between March 2016 and May 2018, Cash Flow Partners LLC, a business consulting firm with offices in New York and New Jersey, released internet advertisements and held seminars offering to assist customers in obtaining bank loans, including loans insured by the Federal Deposit Insurance Corporation (FDIC). When customers submitted documentation supporting their bank loan applications to Cash Flow Partners, Frias and others created false documentation to make customers’ loan applications appear more financially viable than they actually were. Victim banks sustained losses of over $4 million.
One of Frias’ conspirators, Raymundo Torres, previously pleaded guilty to charges relating to his role in the Cash Flow bank fraud conspiracy.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 2, 2020.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys J. Stephen Ferketic of the Opioids Unit and Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Second Defendant in Major Drug Conspiracy SentencedRead the Press Release
ABINGDON, Va. – The second defendant in a major drug distribution organization that trafficked methamphetamine, heroin, and cocaine from Texas and Indiana into Southwest Virginia was sentenced today in federal court on drug conspiracy charges, United States Attorney Thomas T. Cullen and Virginia Attorney General Mark Herring announced.
In a hearing today, Jon Trevor DeBord, 29, of Vinton, Va., was sentenced to 60 months in federal prison. In January 2020, DeBord pleaded guilty to one count of conspiracy to possess with the intent to distribute and distributing 50 grams but less than 200 grams of methamphetamine.
“The methamphetamine trade has ravaged communities across Southwest Virginia for too long,” U.S. Attorney Cullen stated today. “Reducing the meth trade is a top priority of the U.S. Attorney’s Office, and we will continue to work with our federal, state, and local partners to identify the individuals responsible for importing and distributing this deadly substance and put them in federal prison.”
“Methamphetamine is an extremely dangerous drug that can have devastating effects on communities,” said Attorney General Mark Herring. “My office remains committed to our partnership with the United States Attorney’s Office and law enforcement agencies at the federal, state, and local level to prosecute those who endanger our communities by trafficking this drug.”
In the most recent indictment, three individuals were charged as part of a drug trafficking conspiracy. DeBord, who pleaded guilty in January 2020, Daniel Augusto Rosa-Suarez, of Arlington, Texas, who was sentenced to 324 months in prison in February 2020, and Robert Luis Gray Osborne, who is scheduled for trial in August 2020.
According to court documents, the defendants conspired to traffic large quantities of crystal ice methamphetamine, heroin, and cocaine from Texas and Indiana into Southwest Virginia for redistribution. In Virginia, the organization operated primarily in Smyth County and the Harrisonburg area from August 26, 2016, through May 25, 2018.
This case is one in a series of indictments stemming from a methamphetamine trafficking conspiracy ring operating primarily in the Smyth County, Virginia area. In total, 20 defendants have been charged in federal court in connection with the investigation.
The investigation of this case was led by the Drug Enforcement Administration, Bristol, Virginia, with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation, including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, Washington County Virginia Sheriff’s Office, Abingdon, Virginia Police Department, Rockingham County Virginia RUSH Drug Task Force, Rockingham County Virginia Sheriff’s Office, Harrisonburg, Virginia Police Department, Bessemer, Alabama Police Department, Virginia Department of Corrections, Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, and Special Assistant United States Attorney Roy F. Evans, who is also Commonwealth’s Attorney for Smyth County, prosecuted the case for the United States.
Rochester Woman Sentenced to 60 Months for Drug Trafficking and Firearms OffensesRead the Press Release
CONCORD - Haley Hansler, 33, of Rochester, was sentenced to 60 months in federal prison for participating in a drug trafficking conspiracy and possessing a firearm in furtherance of drug trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Hansler conspired with two other individuals to traffic in methamphetamine and fentanyl in the Rochester area. On November 7, 2018, the New Hampshire State Police (“NHSP”) conducted a motor vehicle stop on a vehicle operated by Hansler and seized approximately 58 grams of heroin and smaller quantities of crystal “ice” methamphetamine and other narcotics. Later the same evening, members of the NHSP and the DEA searched Hansler’s hotel room in Ossipee, New Hampshire and seized approximately 171 grams of crystal “ice” methamphetamine and smaller quantities of fentanyl and other narcotics. Law enforcement also seized a semi-automatic handgun from Hansler’s purse. On December 20, 2018, DEA agents arrested Hansler and co-conspirator James Nesbitt at their Rochester residence and seized approximately 60 grams of fentanyl, four firearms, and ammunition.
Hansler previously pleaded guilty on January 21, 2020. Nesbitt pleaded guilty to the charges on March 6, 2020, and is awaiting sentencing.
“Drugs and guns are a potentially deadly combination,” said U.S. Attorney Murray. “In order to protect public safety, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate the armed drug dealers who endanger our communities. When drug traffickers use or possess firearms, they should understand that they will be prosecuted in federal court and receive substantial prison sentences.”
“DEA is committed to bring to justice poly-drug traffickers like Ms. Hansler,” said Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation and prosecution of major drug trafficking organizations.
This case was investigated by the DEA’s Tactical Diversion Squad; the New Hampshire State Police; the United States Postal Inspection Service; and the Strafford County Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Rapid City Man Sentenced for Tax EvasionRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Tax Evasion was sentenced by Jeffrey L. Viken, U.S. District Judge.
Joseph Bennington, age 42, was sentenced on April 27, 2020, to 15 months in federal prison, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $124,645.00 in restitution to the Internal Revenue Service.
“Tax evasion is a serious crime,” said U.S. Attorney Parsons. “It will be met with a serious federal response, as this prison sentence confirms.”
The conviction stemmed from Bennington failing to make an income tax return, as required by law, and failing to pay income taxes owed by him for the year 2017. Bennington also failed to file and pay income taxes for tax years 2008-2016, despite earning substantial income during the same period of time. Additionally, Bennington concealed his true income by cashing checks he received from Black Hills Auto Auction Inc. instead of depositing the checks into his bank account.
“Tax evasion is not a victimless crime,” said Acting Special Agent in Charge Adam Steiner, Internal Revenue Service – Criminal Investigation. “Today’s sentence exhibits that the IRS and U.S. Attorney’s Office are duty bound to protect the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations.”
The investigation was conducted by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bennington was ordered to self-surrender to the U.S. Marshals Service on June 29, 2020, to begin serving his custody sentence.
Prominent Physician of Dunn, North Carolina, Agrees to Pay up to $8.8 Million to Resolve Allegedly Fraudulent Medicare and Medicaid ClaimsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced today that Dr. Ibrahim Oudeh, his wife Teresa Sloan-Oudeh, and Dr. Oudeh’s medical practice agreed to relinquish approximately $3,300,000 worth of assets and further agreed to a conditional consent judgment in the amount of $5,500,000 to settle civil False Claims Act liability for allegedly false Medicare and Medicaid claims.
The United States and the State of North Carolina alleged that Dr. Oudeh, Ms. Sloan-Oudeh, and the practice were liable for more than 40,000 fraudulent claims that were systematically submitted to Medicare and Medicaid between 2010 and 2017.
Specifically, the Governments argued that Defendants falsely obtained approximately $1,900,000 from Medicare for over 37,000 diagnostic tests, an astronomical number of tests for a solo practitioner in a small North Carolina town. Defendants profited handsomely from them. They allegedly short-changed the outside physicians who interpreted those tests by paying them less than the practice’s Medicare reimbursement, and then pocketed the difference, all in violation of the federal Anti-Markup Rule. To boot, the Governments asserted that the vast majority of the more-than-37,000 tests were medically unnecessary.
The Governments also alleged that Defendants falsely billed for office visits. In some of those instances, Defendants billed more than twenty-four hours’ worth of supposed visits with one physician in a single day. In others, the evidence showed that the visits were for medication refills rather than for the complex, labor-intensive examinations that Defendants claimed. Either way, the Governments alleged that Defendants could not have provided the level of patient care for which they sought reimbursement.
Finally, the Governments contended that Defendants falsely obtained approximately $640,000 from Medicare and Medicaid after Dr. Oudeh certified almost 4,300 nerve-conduction studies that, by his own admission, he was unqualified to interpret. Dr. Oudeh also admitted to the Governments that he used the nerve-conduction studies as mere screening tools, in direct contravention of Medicare and Medicaid billing requirements.
“The United States takes healthcare fraud very seriously,” said U.S. Attorney Higdon. “Federal healthcare programs are designed to help patients in need. They are not boundless coffers that entrepreneurial fraudsters like the Oudehs can pilfer to maximize their fortunes. Our office will continue to dedicate resources to rooting out and pursuing those who would rob American taxpayers to satiate their greed. Such abuse will not be tolerated.”
This case is not Dr. Oudeh’s first run-in with government authorities. The North Carolina Medical Board previously entered a consent decree finding that Dr. Oudeh’s medical recordkeeping was deficient and revoking his ability to prescribe certain controlled substances.
The federal and North Carolina False Claims Acts mandate that the Governments recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted.
It should be noted that the claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability.
This matter was handled between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (“MID”), including Special Agents with the U.S. Department of Health and Human Services, Office of Inspector General, and MID Financial Investigators. Assistant United States Attorneys Neal Fowler and John Harris represented the United States. Special Deputy Attorney General Lareena Phillips, who also serves as a Special Assistant United States Attorney, represented the United States and the State of North Carolina.
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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.
Poplar woman sentenced to prison for bar stabbingRead the Press Release
GREAT FALLS—A Poplar woman who admitted stabbing a man multiple times while in a Wolf Point bar on the Fort Peck Indian Reservation was sentenced today to 20 months in prison and two years of supervised release, U.S. Attorney Kurt Alme said.
Emily Kaye Marie Gourneau, 32, pleaded guilty in December to assault resulting in serious bodily injury.
U.S. District Judge Brian M. Morris presided.
The prosecution said in court records that the assault occurred on July 23 at the Water Hole 1 bar in Wolf Point. Gourneau and the victim, who was playing pool, had been socializing. At some point, when the victim walked toward Gourneau from the pool table, Gourneau pulled out a knife and stabbed the victim multiple times, running around the bar chasing after him. The assault was recorded on a security camera. Gourneau left the bar after the assault.
First responders found the victim lying on the floor and severely wounded and bleeding. The victim underwent surgery for multiple stab wounds at a hospital in North Dakota.
Assistant U.S. Attorney Cassady Adams is prosecuting the case, which was investigated by the FBI, Wolf Point Police Department and the Fort Peck Tribes’ Criminal Investigation.
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North Dakota Man Sentenced for Wildlife Violations involving Bald Eagle DeathsRead the Press Release
United States Attorney Ron Parsons announced that a Flasher, North Dakota, man convicted of Unlawful Taking of Bald Eagles, Unlawful Taking of Migratory Birds, and Unlawful Use of Restricted Use Pesticide was sentenced on April 2, 2020, by U.S. Magistrate Judge William D. Gerdes.
David Alan Meyer, age 58, was ordered to pay a total of $58,800 in restitution, $9,800 per eagle, a $50,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $50.
"Today's sentencing is a testament to the commitment of federal, tribal and state law enforcement agencies to protect our nation's bald eagles," said Edward Grace, Assistant Director of the Office of Law Enforcement. "Illegal poisoning can have a significant impact on their populations. Working with our tribal, state and federal partners, the U.S. Fish and Wildlife Service is dedicated to protect our nation's fish and wildlife resources."
Meyer was charged on January 16, 2020. He pled guilty to the Information on January 30, 2020.
In March and April 2016, a joint Standing Rock Sioux Tribe Game and Fish Department, U.S. Fish and Wildlife Service, and Environmental Protection Agency investigation revealed that David Meyer, owner of Meyer Buffalo Ranch on the Standing Rock Sioux Indian Reservation had supervised the misapplication of 39,000 pounds of Rozol prairie dog bait, a restricted use pesticide, on over 5,400 acres of his property.
Over a dozen workers were interviewed and confirmed they were supposed to put the poison in the holes, but due the high demand on the amount of poison that needed to be dispensed and the large land tract, workers got sloppy and the poison was not dispensed as required by the label. Because of the misapplication, the EPA emergency response team was dispatched to oversee the cleanup of the ranch land by Meyer. During the course of the investigation, six bald eagles were recovered and confirmed to have died as a result of the poison.
“The defendant put the health of workers and wildlife at risk by illegally obtaining and using a restricted-use pesticide,” said Acting Special Agent in Charge Lance Ehrig of the EPA’s Denver Area Office. “This case serves as a stark reminder that restricted use pesticides must be applied by certified personnel and as intended. Those who circumvent and ignore the laws that protect public health and wildlife will be held accountable by the EPA and our law enforcement partners.”
This case was investigated by the U.S. Fish and Wildlife Service, the Environmental Protection Agency, the Standing Rock Sioux Tribe Game and Fish Department, and the North Dakota Department of Agriculture. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Niagara and Monroe Counties Receiving Funding from the Justice Department to Fight COVID-19Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that two counties in the Western District of New York have been awarded grants under the Coronavirus Emergency Supplemental Funding Program. Niagara County and Monroe County will receive $58,008 and $52,669 respectively from the Bureau of Justice Assistance.
“This emergency supplemental funding is proof that the federal government is actively supporting the efforts of local government to keep our communities safe,” stated U.S. Attorney Kennedy. “This funding will help first responders by providing additional resources to support a broad range of activities to prevent, prepare for, and respond to the coronavirus.”
Projects or initiatives which may be funded with the monies include:
• Overtime costs
• Equipment and supplies (including PPE for law enforcement and medical personnel); • Hiring; • Training; • Travel expenses, particularly related to the distribution of resources to the most impacted areas; and
• Addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers.A total of $1,700,000 in grant funding is available to cities, towns, and counties in the WDNY.
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Michigan Man Charged with COVID-19-Related Wire Fraud SchemeRead the Press Release
SAN FRANCISCO – The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging Rodney L. Stevenson II with wire fraud for his operation of an e-commerce website that allegedly scammed customers into paying for N95 masks that they never received. The announcement was made by United States Attorney for the Northern District of California David L. Anderson, United States Attorney for the Western District of Michigan Andrew Byerly Birge, U.S. Postal Inspection Service San Francisco Division Postal Inspector in Charge Rafael E. Nuñez, U.S. Postal Inspection Service Detroit Division Acting Inspector in Charge Felicia George, FBI Special Agent in Charge John F. Bennett, and FBI Special Agent in Charge Detroit Field Division Steve D’Antuono.
“Hospitals, healthcare providers and everyday people are understandably anxious to obtain N95 masks, N99 filters and other PPE,” said U.S. Attorney Anderson. “The criminal element is always ready to prey on fear and uncertainty, and it is all too easy to lie over the internet. While sheltering in place, Americans are shopping on the internet like never before. The complaint alleges a consumer’s nightmare of fake webpages and false promises.”
“The reach of federal law enforcement is long. If someone uses the internet to commit alleged fraud, their victims can be from anywhere and they could find themselves facing those victims and subject to serious federal charges far from home,” said U.S. Attorney Birge. “After some preliminary hearings here in West Michigan, all future proceedings related to these very serious allegations will be in Northern California.”
“The United States Postal Inspection Service has a long history of successfully investigating complex fraud cases,” stated San Francisco Division Inspector in Charge Nuñez. “Anyone or any organization engaging in deceptive practices, especially if they are attempting to exploit the COVID-19 pandemic emergency, should know they will not go undetected and will be held accountable. The collaborative investigative work on this case conducted by Postal Inspectors, our law enforcement partners, and the United States Attorney’s Office illustrates our efforts to protect consumers.”
“The FBI will pursue criminals who attempt to deceive and defraud consumers at the expense of public safety during this pandemic,” said FBI Special Agent in Charge Bennett. “During this crisis, the FBI remains vigilant in deterring, detecting, and investigating wrongdoing and will rigorously pursue those individuals and groups attempting to victimize the American public.”
According to the complaint, Stevenson, 24, of Muskegon, Michigan, controlled EM General, a Michigan limited liability company created in September 2019. EM General operated a website that purported to sell an available inventory of “Anti-Viral N95” respirator masks. An N95 respirator mask is a particulate-filtering facepiece respirator that meets the U.S. National Institute for Occupational Safety and Health N95 standard of air filtration. N95 masks, which cover the user’s nose and mouth, are required to filter at least 95% of airborne particles.
The complaint alleges that EM General, through its website, falsely claimed to have N95 respirator masks “in stock” and available for sale and shipment during the shortage caused by the COVID-19 pandemic. Based on these and other representations, customers bought masks from the website, sometimes paying EM General more than $40 or more per mask. Stevenson is alleged to have taken several steps to fraudulently make EM General appear to be a legitimate company. For example, Stevenson invented a fictional Chief Executive Officer, “Mike Thomas,” from whom fraudulent emails were sent, as well as several other fake officers or employees of the company. Stevenson also used stock photographs from the internet to create a page depicting this team of fake professional management staff. After customers made their first purchase, the defendant offered additional masks to those customers at discounted prices.
The complaint describes how four victims paid for, but did not receive, N95-compliant masks. Three of the four victims reside in the San Francisco Bay Area, including one hospital employee. Also described in the complaint are follow-up emails from EM General to customers in which false excuses about supply and shipping issues were made. Three of the four customers in the complaint never received the promised products at all despite multiple representations that the masks had been shipped. The fourth customer paid over $400 on March 2, 2020, for N95 masks represented to be “in stock,” and, after raising several complaints, on March 27, 2020, received cheaply made fabric masks. The masks, delivered in a white envelope with no return address, did not comply with the N95 standard that EM General purportedly sold.
Stevenson is charged with wire fraud, in violation of 18 U.S.C. § 1343. A complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Stevenson was arrested at his home in Muskegon, Michigan, made his initial appearance before the United States District Court for the Western District of Michigan in Grand Rapids, and was released on supervised bond. Stevenson’s next scheduled appearance is set for May 18, 2020, in the Western District of Michigan for a preliminary hearing.
If convicted, the defendant faces a maximum sentence of 30 years in prison, 5 years of probation, and a fine of $1,000,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. This case is being investigated jointly by the San Francisco and Detroit Divisions of the United States Postal Inspection Service and the San Francisco and Detroit field offices of the Federal Bureau of Investigation.
Michigan Man Charged with COVID-19 Related Wire Fraud SchemeRead the Press Release
Defendant Allegedly Ran Website That Received Customers’ Money but Failed to Deliver N95 Masks
GRAND RAPIDS - The United States Attorney’s Office for the Northern District of California unsealed charges today in a criminal complaint charging Rodney L. Stevenson II with wire fraud for his operation of an e-commerce site that allegedly scammed several customers into paying for N95 masks that they never received. The announcement was made by U.S. Attorney for the Northern District of California David L. Anderson, U.S. Attorney for the Western District of Michigan Andrew B. Birge, U.S. Postal Inspection Service San Francisco Division Postal Inspector in Charge Rafael E. Nuñez, U.S. Postal Inspection Service Detroit Division Acting Inspector in Charge Felicia George, FBI Special Agent in Charge John F. Bennett, and FBI Special Agent in Charge Detroit Field Division Steve D’Antuono.
"Hospitals, healthcare providers and everyday people are understandably anxious to obtain N95 masks, N99 filters and other PPE," said U.S. Attorney Anderson. "The criminal element is always ready to prey on fear and uncertainty, and it is all too easy to lie over the internet. While sheltering in place, Americans are shopping on the internet like never before. The complaint alleges a consumer’s nightmare of fake webpages and false promises."
"The reach of federal law enforcement is long. If someone uses the internet to commit alleged fraud, their victims can be from anywhere and they could find themselves facing those victims and subject to serious federal charges far from home," said U.S. Attorney Birge. "After some preliminary hearings here in West Michigan, all future proceedings related to these very serious allegations will be in Northern California."
"One of the core tenets of the U.S. Postal Inspection Service’s mission is to support and protect customers of the U.S. Postal Service. Not only does that mean investigating and taking action against such exploitative behavior as alleged in this case, but also educating consumers how to be proactive in protecting themselves", said AIC Felicia George. "We urge citizens to do their due diligence when dealing with an unknown business or entity online, and if they believe they have been a victim of fraud, report it to us immediately at www.uspis.gov so that we can take the appropriate action."
"The FBI across the country will continue to be vigilant in deterring, detecting, and investigating wrongdoing related to the COVID-19 pandemic. Stevenson’s alleged behavior was reprehensible. Under no circumstances is it permissible to over-inflate the prices of much-needed safety equipment and then either provide substandard product or fail to provide the product altogether," said SAC D'Antuono. "The severe penalties for scams like the one alleged here should serve as a warning to others."
According to the complaint, Stevenson, 24, of Muskegon, Michigan, controlled EM General, a Michigan limited liability company created in September 2019. EM General operated a website that purported to sell an available inventory of "Anti-Viral N95" respirator masks. An N95 respirator mask is a particulate-filtering facepiece respirator that meets the U.S. National Institute for Occupational Safety and Health N95 standard of air filtration. N95 masks, which cover the user’s nose and mouth, are required to filter at least 95% of airborne particles.
The complaint further alleges EM General, through its website, falsely claimed to have N95 respirator masks "in stock" and available for sale and shipment during the shortage caused by the COVID-19 pandemic. Based on these and other representations, customers bought masks from the website, sometimes paying EM General more than $40 or more per mask. Stevenson is alleged to have taken several steps to fraudulently make EM General appear to be a legitimate company. For example, Stevenson invented a fictional Chief Executive Officer, "Mike Thomas," from whom fraudulent emails were sent, as well as several other fake officers or employees of the company. Stevenson also used stock photographs from the internet to create a page depicting this team of fake professional management staff. After customers made their first purchase, the defendant offered additional masks to those customers at discounted prices.
The complaint describes how four victims paid for, but did not receive, N95-compliant masks. Three of the four victims reside in the San Francisco Bay Area, including one hospital employee. Also described in the complaint are follow-up emails from EM General to customers in which false excuses about supply and shipping issues were made. Three of the four customers in the complaint never received the promised products at all despite multiple representations that the masks had been shipped. The fourth customer paid over $400 on March 2, 2020, for N95 masks represented to be "in stock," and, after raising several complaints, on March 27, 2020, received cheaply made fabric masks. The masks, delivered in a white envelope with no return address, did not comply with the N95 standard that EM General purportedly sold.
Stevenson is charged with wire fraud. If convicted, he faces up to 30 years in prison, followed by five years of court supervision, and a fine of up to $1,000,000.
Stevenson was arrested at his home in Muskegon, Michigan, and made his initial appearance before the U.S. District Court for the Western District of Michigan in Grand Rapids. Dates for further proceedings remain to be determined.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. This case is being investigated jointly by the San Francisco and Detroit Divisions of the United States Postal Inspection Service and the San Francisco and Detroit field offices of the Federal Bureau of Investigation.
A complaint merely alleges that crimes have been committed, and any defendant so charged is presumed innocent until proven guilty beyond a reasonable doubt.
All press inquiries related to local hearings should be directed to Anne Towns at [email protected] or (616) 808-2082. All other press inquiries should be directed to Abraham Simmons at (415) 436-7264 or by e-mail at [email protected] or Robin Wall at (415) 436-7071 or by email at [email protected].
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Macomb County Doctor Charged in Health Care Fraud SchemeRead the Press Release
A Macomb County doctor was charged in a criminal complaint for his alleged role in a health care fraud scheme which involved submitting false claims to Medicare for services that were never rendered and/or were medically unnecessary, announced United States Attorney Matthew Schneider.
Joining in the announcement were Special Agent in Charge Steven M. D’Antuono, Federal Bureau of Investigation and Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General (HHS-OIG).
Charged is Dr. Charles Mok, 56, of Washington, Michigan.
United States Attorney Schneider stated ”Dr. Mok is charged with exploiting the current pandemic to defraud the Medicare program, and putting the safety and health of his patients at risk in doing so. These are serious allegations, and my office is committed to prosecuting any medical professional who attempts to use the Covid-19 crisis to defraud patients or insurers.”
"Dr. Mok's alleged behavior goes beyond taking advantage of fears surrounding COVID-19 to profit illegally," said SAC D'Antuono. "The FBI has sworn to protect American citizens under any circumstances and we will vigorously investigate anyone who is alleged to put profit over patient safety or who provided questionable treatments as a way to defraud the Medicare system."
“We are committed to investigating those who exploit the ongoing public health crisis for financial gain,” said HHS OIG Special Agent in Charge Lamont Pugh. “Such actions threaten the integrity of federal health and human service programs and the health of Americans who rely on these programs.”
According to the complaint, Dr. Mok operates Allure Medical Spa, PLLC. Its principal place of business is at 8180 26 Mile Road, Shelby Township. MI 48316. Allure operates twenty-six outpatient clinics specializing in varicose vein treatments in eight different states with at least six clinics within the State of Michigan.
The complaint alleges Dr. Mok submitted false and fraudulent claims to Medicare for treatment of varicose veins by submitting claims for injections of Varithena in veins which had previously been ablated. The complaint alleges that once an ablation is done on a patient, there is no need for additional treatments including a Varithena injection. The complaint also alleges that some of the procedures were also medically unnecessary as numerous patients received up to 19 Varithena injections per leg and/or up to 12 ablations per leg, well beyond what is medically necessary to treat their conditions.
The complaint further alleges that Dr. Mok submitted false and fraudulent claims to Medicare for high-dose intravenous vitamin C infusions to patients at risk of contracting COVID-19, especially those working on the frontlines, and to those who tested positive for COVID-19. The infusions were primarily performed at Allure’s Shelby Township location. While the office had standard protocols to isolate patients who were positive for COVID-19, the complaint alleges that those protocols were not strictly followed, and on numerous occasions, COVID-19 positive patients were comingled with healthy patients, including those scheduled for non-essential elective procedures, in Allure’s one waiting room.
In multiple launch videos, Dr. Mok claimed that Allure offered the infusions because vitamin C reduces the severity of symptoms, duration of illness, and therefore the contagiousness of COVID-19 and significantly increases the immunity system of those who have a high risk for contracting the virus. There are currently no known U.S Food and Drug Administration (FDA) approved vaccines or drugs to treat COVID-19.
If any patients or staff have any concerns about their health or exposure to Covid-19, we urge them to consult with a trusted medical professional.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorneys Regina McCullough, Wayne Pratt and John Neal. The investigation is being conducted jointly by the FBI and HHS-OIG.
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to eight months in federal prison.
Avelino Zacarias-Bail, age 27, a citizen of Guatemala illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a January 9, 2020 guilty plea to one count of illegal reentry into the United States.
At the guilty plea, Zacarias-Bail admitted he had previously been deported from the United States in December 2015 and illegally reentered the United States without the permission of the United States government. In August 2019, Zacarias-Bail’s illegal presence in the United States came to the attention of immigration agents following his arrest in Black Hawk County, Iowa, on state criminal charges. Zacarias-Bail was later convicted in December 2019 of child endangerment and domestic abuse assault causing bodily injury.
Zacarias-Bail was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Zacarias-Bail was sentenced to eight months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Zacarias-Bail is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2053.
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Four-Time Felon and Drug User Sentenced to Federal Prison for Unlawfully Possessing a Loaded RevolverRead the Press Release
A Cedar Rapids man was sentenced today to more than two years in federal prison for unlawfully possessing a loaded revolver.
Charles Dixon Taylor, IV, age 43, from Cedar Rapids, Iowa, received the prison term after an October 31, 2019 guilty plea to one-count of Possession of a Firearm by a Prohibited Person.
At the guilty plea, Taylor admitted that on June 28, 2019, he illegally possessed a loaded revolver while driving his truck. He was prohibited from possessing firearms because he had been previously convicted of multiple felonies, including possession of a simulated controlled substance with the intent to deliver, marijuana distribution, possession of a controlled substance, and second-degree assault by drugging a victim. He was also prohibited because he was a user of methamphetamine and marijuana.
Statements at sentencing showed that a week after he was arrested for illegally possessing the loaded revolver, Taylor assaulted his live-in girlfriend by repeatedly punching her in the face, causing her to fall to the ground. Taylor then continued to punch the victim while she was on the ground, causing bruising and swelling to her face.
Taylor was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Taylor was sentenced to 33 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Taylor is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-101.
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Former Caregiver Pleads Guilty to Obstructing Investigation Related to Violation of Disabled Resident's Civil RightsRead the Press Release
Mary K. Paulo, a former employee of a Missouri residential treatment facility, pleaded guilty today in federal court in the Western District of Missouri to an obstruction of justice charge related to the death of C.D., a Missouri ward of the state with developmental disabilities. Paulo pleaded guilty to one count of knowingly falsifying a document with the intent to impede, obstruct, and influence an investigation related to the death of C.D.
“A vulnerable victim died because of the criminal conduct of those responsible for his care and custody. The defendant is being held responsible for her role in obstructing the investigation into the circumstances surrounding his death,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to investigate and prosecute allegations of criminal civil rights violations and those individuals who engage in related obstructive conduct.”
“This caregiver neglected her responsibility to a vulnerable victim, helped cover up criminal activity, and lied to federal law enforcement agents,” said U.S. Attorney Tim Garrison of the Western District of Missouri. “Her complicity is inexcusable, and her obstruction of justice won’t be tolerated. She will be held accountable, alongside her brother and her parents, for her role in this brazen scheme.”
"Today's guilty plea emphasizes law enforcement's unwavering dedication and determination to ensure all individuals responsible for their role in this victim's death are held accountable for their actions" said Timothy Langan, Special Agent in Charge of the FBI in Kansas City, Missouri. "The FBI is the primary federal agency responsible for investigating allegations regarding violations of federal civil rights and we remain committed to seeking justice on behalf of all victims."
“Paulo’s knowing obstruction into the investigation of the death of this vulnerable individual is a severe crime that cannot be tolerated,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Coordinating with our law enforcement partners, we are committed to investigating such criminal actions.”
According to the plea agreement, Paulo worked as a caregiver at Second Chance Homes, an organization that provided housing and care for developmentally disabled persons through a Missouri Department of Mental Health initiative. Victim C.D. had been a resident at Second Chance Homes since 2008.
Paulo admitted in her plea agreement that she regularly worked alongside C.D. and his caretakers. Paulo further admitted that in the summer of 2016, her mother – another caregiver at Second Chance Homes – told her to stop coming to work. Paulo did not report to work for a number of months, although she continued to receive pay.
In August of 2016, at her mother’s request, Paulo took another Second Chance Homes resident to one of C.D.’s scheduled medical appointments, presented him as C.D., and obtained a new prescription in C.D.’s name. Paulo did so knowing that the resident was not C.D. and that she had not seen C.D. in months.
Paulo returned to work in the fall of 2016 and noticed that C.D. was no longer present at Second Chance Homes.
In April of 2017, before Second Chance Homes was to be purchased by another company, Paulo’s mother gave Paulo several documents to sign. Paulo signed the documents, many of which attested that she had cared for C.D. in the previous nine months, while knowing that she had not seen C.D. in the previous nine months.
After C.D. was ultimately reported missing to the Fulton Police Department, Paulo wrote and submitted a false statement to the police. Paulo wrote in the statement that she saw C.D. alive and well on April 16, 2017, while knowing that she had, in fact, not seen C.D. in months.
Pursuant to Paulo’s plea agreement, she faces a maximum of 24 months incarceration. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Paulo’s mother, Sherry Paulo, and father, Anthony Flores, have previously pleaded guilty to criminal civil rights charges stemming from C.D.’s death. Paulo’s brother, Anthony R.K. Flores, previously pleaded guilty to knowingly falsifying a document with the intent to impede, obstruct, and influence an investigation related to the death of C.D.
This case was investigated by the Jefferson City Resident Agency of the FBI Kansas City Division and the St. Louis Field Office of the Department of Health and Human Services Office of the Inspector General Kansas City Region. The case is being prosecuted by Assistant U.S. Attorneys Cindi Woolery and Gregg Coonrod of the U.S. Attorney’s Office, Special Litigation Counsel Julia Gegenheimer and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section. The Fulton, Missouri Police Department and Callaway County Prosecutor Christopher Wilson contributed significantly to the successful investigation and prosecution of this matter.
Federal, State, and Local Officials Announce New Violence Reduction ProgramRead the Press Release
Baltimore, Maryland – A coalition of federal, state, and local government officials today announced a new violence reduction program, I Care Baltimore. I Care Baltimore is a multi-faceted program designed to reduce violent crime by empowering community members, by highlighting programs that are making a difference in the City of Baltimore by offering alternatives to violence, and by increasing awareness of the consequences of federal prosecution for violent repeat offenders. The new initiative, funded by a $250,000 grant to the Mayor’s Office of Criminal Justice (MOCJ) from the Governor’s Office of Crime Prevention, Youth, and Victim Services, builds on the U.S. Attorney’s Office Project Exile which seeks to remove guns from the hands of criminals. In response to the COVID-19 pandemic, the I Care program now also offers resources available to assist Baltimoreans to stay safe and healthy.
The initiative was announced by United States Attorney for the District of Maryland Robert K. Hur; Executive Director Glenn Fueston of the Governor’s Office of Crime Prevention, Youth, and Victim Services; Director Tamika Gauvin of the Mayor’s Office of Criminal Justice; Commissioner Michael Harrison of the Baltimore Police Department; and State’s Attorney for Baltimore City Marilyn J. Mosby.
“Gun violence remains a pervasive problem in too many Baltimore communities,” said United States Attorney Robert K. Hur. “Law enforcement is an important part of the solution, but we must also foster community involvement and help make citizens aware of choices they can make for the good of their own lives and their neighborhoods. The I Care Baltimore website highlights resources available to prevent young people from becoming involved in violence. If you use a gun, you could face federal time, where there is no parole—ever. Please, put down the guns and save a life—maybe even your own.”
“We appreciate the comprehensive approach that the U.S. Attorney's Office is taking for Project Exile for the District of Maryland,” said Glenn Fueston, Executive Director of the Maryland Governor's Office of Crime Prevention, Youth, and Victim Services. “The Hogan Administration has supported the U.S. Attorney's efforts targeting violent offenders, and we also realize community engagement - especially with our youth - is vital for crime reduction and making our neighborhoods safer.”
To help deter gun crime, the I Care Baltimore initiative has placed 18 billboards at locations around Baltimore highlighting the importance of positive decision-making and awareness of the consequences of poor decisions. Images and locations of the billboards can be found
here .The coalition has partnered with Urban One, Inc., which operates five stations in the Baltimore area, including WERQ 92-Q, to implement the program. The I Care Baltimore website is live and will be updated regularly. The website includes: monthly highlights of different community organizations helping make Baltimore a safer and healthier place to live; a highlighted organization each month; community resources, listed by area; a link to report crime tips anonymously; and a section where individuals can pledge their support to I Care Baltimore, either through specific actions or through monetary donations. The program will also be advertised at events attended by Urban One disc jockeys and government officials, once the current stay-at-home order has been lifted.
Baltimore faces many challenges but there are many good things happening in Baltimore, too. I Care is about uplifting the best of Baltimore City, understanding that the future is in our hands. It’s about helping citizens to get involved with the organizations that make Baltimore the greatest city in America. I Care is about providing communities with the tools and resources to make a positive change. Show Baltimore that you care by becoming part of the solution.
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Federal Prosecutors Poised to Act Against Criminals Targeting Economic Impact PaymentsRead the Press Release
In partnership with the U.S. Postal Inspection Service, federal prosecutors are poised to take action against criminals targeting the Economic Impact Payments (EIP) that are being hand-delivered by the U.S. Postal Service, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“A wave of scammers and thieves are working overtime during the COVID-19 pandemic to defraud the American public of their Economic Impact Payments,” warned U.S. Attorney Erin Nealy Cox. “I urge the public to report any suspicious, fraudulent, or criminal activity related to the Coronavirus to law enforcement authorities.”
Amid economic effects of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. The $2 trillion in financial relief package mandated distribution of EIPs to millions of Americans. These EIPs are being delivered in two ways: direct deposit into the recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury through the United States Postal Service.
More than 89.5 million individuals, including 7.8 million Texans, have received EIPs worth nearly $160 billion in benefits during the program’s first three weeks. The U.S. Postal Service anticipates hand-delivering over 80 million additional EIPs over the next few months.
This unprecedented mail volume gives rise to opportunist mail thieves and criminals to steal EIPs.
“The COVID-19 pandemic has created unique challenges for the nation as well as unique opportunities for thieves,” warns D. Glen Henderson, Acting Inspector in Charge of the Fort Worth Division. “The criminal efforts targeting those in need are unconscionable. The U.S. Postal Inspection Service is committed to protecting the mail, and we ask the public to immediately report any suspicious activity. We also want to thank the U.S. Attorney’s Office for their continued partnership as we pursue criminals who target the mail, the U.S. Postal Service, or its customers.
The U.S. Postal Inspection Service is working diligently to rout out criminals who engage in mail theft and fraud and refer them to the U.S. Attorney’s Office. The U.S. Postal Inspectors are prepared for a variety of schemes that criminals and thieves are employing to exploit the American public during this time of crisis. If you suspect mail theft, please report it to www.uspis.gov.
To underscore federal law enforcement’s commitment to pursue those who take advantage of the Coronavirus pandemic for gain, below are several COVID-19 related prosecutions in the Northern District of Texas:
- Court Prohibits Dallas Wellness Center from Touting ‘Ozone Therapy’ as COVID-19 Treatment
- U.S. Attorney’s Office Files Enforcement Action Against Chiropractor Promoting Fake COVID-19 Treatment
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. The Northern District of Texas has appointed Assistant U.S. Attorney Fabio Leonardi as the District’s Coronavirus Fraud Coordinator to work with federal, state, and local law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
For more information visit: https://www.justice.gov/usao-ndtx/report-covid-19-fraud
United States Postal Service
To file a complaint regarding theft of Economic Impact Payments from the mail or COVID-19 fraud involving the U.S. Mail, please contact the U.S. Postal Inspection Service at: www.uspis.gov/report or 1-800-ASK-USPS.
Internal Revenue Service
Economic Impact Payment fraud can be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
CDC
For information on COVID-19 and the federal response visit: https://www.cdc.gov/coronavirus
Federal Appellate Court Upholds Enforcement of IRS Summons Seeking Information Concerning Law Firm Clients Involved in Foreign TransactionsRead the Press Release
WASHINGTON – On April 24, 2020, a federal appellate court upheld an order enforcing an Internal Revenue Service (IRS) summons directed to the Taylor Lohmeyer Law Firm PLLC, the Department of Justice announced. The summons directed the law firm to provide information about clients who used the law firm’s services to create and maintain foreign bank accounts and entities. On appeal, the United States Court of Appeals for the Fifth Circuit upheld the trial court’s enforcement of the summons and rejected the law firm’s “blanket” claim that all responsive materials were protected by the attorney-client privilege. It explained that revealing the fact that the clients participated in specific types of transactions would not necessarily reveal any confidential communication of legal advice protected by the attorney-client privilege.
U.S. taxpayers seeking to hide their assets often utilize the services of professional service providers, who may be unaware of their clients’ true goals. This action is part of ongoing efforts by the United States to stop persons from using foreign financial accounts and entities to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U.S. obligations.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Joshua Wu thanked Tax Division attorneys Michael Haungs and Douglas Rennie, who handled the case on appeal, as well as Curtis Smith who litigated the case in the district court.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
EDLA U.S. Attorney Joins Department of Justice to Target Covid-19 Related Housing Predatory PracticesRead the Press Release
NEW ORLEANS - As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent, with reports that nearly one third of Americans were unable to pay their April rent at the beginning of the month.
Many landlords responded to these circumstances with understanding and care, by working with their tenants to weather the current crisis. However, there have been reports of other property owners who have demanded sexual favors and other acts of unwelcomed sexual conduct in exchange for deferral of rent payments. Such behavior is despicable and illegal.
In a recent memo, the Attorney General instructed every U.S. Attorney across the country to take legal action against anyone trying to capitalize on the current crisis by sexually harassing those in need of housing. "The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated." said Attorney General Barr. 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.
U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials to combat housing related sexual harassment. State, local, and tribal authorities are on notice that the Justice Department and U.S. Attorneys stand ready to take aggressive action against housing-related sexual harassment whenever and wherever it occurs. “Our office remains on alert to assist victims of sexual harassment and will aggressively investigate reports of landlord predatory practices related to COVID-19,” said U.S. Attorney Peter G. Strasser. “The victimization of tenants during this national crisis will not be tolerated and violators will be prosecuted.”
If you think you are a victim of sexual harassment by a property owner, or other person who has control over housing, resulting from the COVID-19 crisis, contact:
- Sexual Harassment in Housing Initiative at 1-844-380-6178
- Email: [email protected]
- 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-vivienda. More facts on how to report sexual harassment in housing: www.justice.gov/crt/page/file/1048341/download
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Department of Justice committed to combatting sexual harassment in housing during COVID-19 crisisRead the Press Release
HONOLULU, Hawaii – U.S. Attorney Kenji M. Price is urging those who have experienced housing-related sexual harassment to report such conduct to the Department of Justice. While many landlords have accommodated their tenants in response to the economic hardships posed by the COVID-19 crisis, there have been reports of landlords responding to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct.
“Sexual harassment in housing is an often underreported, but egregious violation of the right to fair housing,” U.S. Attorney Price said. “Landlords and property managers who use their power to exploit those desperately in need of housing during a crisis, and engage in other predatory practices, will face the long arm of the law. The Attorney General has asked my fellow U.S. Attorneys and I to investigate reports of housing-related sexual harassment resulting from the current crisis, and my office is committed to uncovering such violations where they exist and bringing justice to victims by vigorously enforcing the law.”
The Department of Justice--through the U.S. Attorney’s Offices and the Civil Rights Division, 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 Justice Department brings cases each year involving unlawful landlord conduct, including allegations of defendants exposing themselves sexually to current or prospective tenants, requesting sexual favors in exchange for reduced rents or making necessary repairs, making unrelenting and unwanted sexual advances to tenants, and evicting tenants who resisted their sexual overtures. More information about the Department of Justice’s Sexual Harassment in Housing Initiative is available on its webpage at https://www.justice.gov/crt/sexual-harassment-housing-initiative.
Anyone who has experienced sexual harassment in housing, or knows someone who has, is encouraged to contact the Department of Justice’s Civil Rights Division by calling 1.844.380.6178 or emailing [email protected]. Individuals in Hawaii are also encouraged to contact the U.S. Attorney’s Office for the District of Hawaii by emailing [email protected].
Columbia Man Pleads Guilty to Meth, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man pleaded guilty in federal court today to illegally possessing methamphetamine and a firearm.
Anthony Maurice Malin, 39, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
According to today’s plea agreement, a Columbia police officer spotted Malin in a parking lot near the intersection of Broadway and Stadium Boulevard in Columbia on Jan. 30, 2019. The officer, aware that Malin was wanted on arrest warrants in Taney County, Missouri, began to follow him. Law enforcement tracked Malin to his residence and officers surrounded the residence and directed Malin to come out. After 50 minutes, Malin and two other individuals left the residence and were arrested. Malin had a small bag of methamphetamine in his pocket.
Officers searched Malin’s residence and found smoking devices and baggies with drug residue in almost every room of the house. Inside a kitchen drawer, they found a loaded Smith and Wesson .40-caliber handgun. Officers also found a small bag of cocaine, scales, pipes, and a .40-caliber round in the upstairs master bathroom. Throughout the residence, officer found over 150 various sized and used plastic bags with methamphetamine and marijuana residue. Officers also found marijuana, heroin, methamphetamine, and more ammunition in the residence.
The downstairs toilet was clogged, according to the plea agreement. Malin told officers he tried to flush approximately a quarter pound of methamphetamine down the toilet when he heard the officers at the front door.
Under the terms of today’s plea agreement, the government and the defendant will jointly recommend a sentence of eight years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Columbia, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Camden County Man Admits Food Stamp Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey man today admitted his role in a scheme to steal hundreds of thousands of dollars in government funds using fraudulently procured electronic benefits transfer (EBT) cards, U.S. Attorney Craig Carpenito announced.
Juan Melo, 56, of Woodlynne, New Jersey, pleaded guilty by teleconference before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to defraud the United States and one count of defrauding the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). Melo and his co-defendants, Luciano Estevez, 50, and Jose Garcia, 52, both of Camden; and Octavio Rodriguez, 51, of Pennsauken, New Jersey, were previously charged by separate complaints in August 2019 with participating in the conspiracy and defrauding SNAP.
Formerly known as the food stamp program, SNAP is administered by the USDA to assist low-income individuals and families with the purchase of groceries and food items. SNAP recipients receive EBT cards, similar to commercial debit cards, to make food purchases. Retailers authorized to accept SNAP benefits have EBT terminals to process the purchases, which are made by swiping the EBT card at the terminal and entering a Personal Identification Number (PIN). The EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction, and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.
According to documents filed in this case and statements made in court:
Melo, Estevez, Rodriguez, Garcia, and others allegedly targeted low-income individuals who possessed or had access to EBT cards, and unlawfully purchased the cards from these individuals in exchange for cash and controlled substances. Two confidential sources working with law enforcement engaged in 43 controlled transactions involving EBT cards totaling more than $40,500, which they exchanged for cash and controlled substances, including prescription opioids.
The defendants used the unlawfully procured EBT cards to purchase bulk goods and food items from large national superstores. These goods and food items were then resold in small convenience and grocery stores owned or affiliated with the defendants or their associates, resulting in a profit for the defendants. Hundreds of EBT cards fraudulently procured by the defendants were used at these superstores, resulting in the misappropriation of approximately $150,000 in government funds.
Estevez also unlawfully procured an EBT terminal registered to a superstore in Philadelphia to use at his small grocery store in Camden, where Melo was an employee. Through this terminal, the scheme netted approximately $110,000 in SNAP funds.
Each of the counts to which Melo pleaded guilty carry a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Melo’s sentencing is scheduled for Sept. 8, 2020.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture-Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI Philadelphia Field Office, South Jersey Resident Agency, under the direction of Special Agent in Charge Mike Driscoll in Philadelphia.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
CN Railway to Pay $1.25 Million to United States for Damages Caused by Forest FireRead the Press Release
United States Attorney Erica MacDonald today announced that Wisconsin Central LTD and CANADIAN NATIONAL RAILWAY COMPANY have collectively paid $1.25 million to settle a lawsuit brought by the United States for damages resulting from a 2016 wildfire in northeastern Minnesota that burned more than 973 acres in St. Louis County, 387 acres of which were national forest land.
According to the government’s allegations, on May 6, 2016, a wildfire known as the Skibo Fire ignited in St. Louis County, Minnesota, east of Hoyt Lakes, in the area of Skibo, Minnesota. The United States alleged that the fire ignited due to a railroad locomotive that experienced mechanical failure. By the time the fire was suppressed, 387 acres had been burned within the Superior National Forest, and another 585 acres belonging to St. Louis County and private landowners. The fire cost more than $1.5 million to suppress, threatened the nearby City of Hoyt Lakes and forced the evacuation of several residences in the community of Skibo, Minnesota.
The United States sought to recover damages from WISCONSIN CENTRAL LTD and CANADIAN NATIONAL RAILWAY COMPANY for their failure to maintain the equipment that started the fire. Under the settlement announced today, WISCONSIN CENTRAL LTD and CANADIAN NATIONAL RAILWAY COMPANY have paid $1.25 million to settle the dispute.
“This settlement goes a long way toward compensating the public for the expense of fighting the fire and the damage to public lands,” said U.S. Attorney Erica MacDonald. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those whose carelessness damages our precious national resources.”
“This is another reminder that everyone has an important role to play in fire prevention,” said USDA Forest Service Acting Eastern Region Regional Forester Robert Lueckel. “We all must remain vigilant, especially during fire season.”
This case was handled by the Affirmative Civil Enforcement unit of the U.S. Attorney’s Office for the District of Minnesota and was investigated by U.S. Forest Service Law Enforcement and Investigation Division, the State of Minnesota Fire Marshall’s Office, the State of Minnesota Department of Natural Resources, and the East Range Police Department.
The case was settled prior to the United States filing suit. The claims resolved by the settlement are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Brooklyn Man Charged with Traveling to Charlotte to Engage in A Sexual Activity with A Minor Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A New York man appeared in federal court today, on charges of traveling from Brooklyn to Charlotte for the purpose of engaging in illicit sexual conduct with a minor, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Manuel Oppenheimer, 26, had his initial appearance this morning before U.S. Magistrate Judge David S. Cayer.
John A. Strong, Special Agent in Charge of the FBI in North Carolina; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
“The internet has been an essential tool during the COVID-19 outbreak, helping children continue their studies through remote learning and stay connected with teachers, classmates, friends and family through social media and other apps,” said U.S. Attorney Murray. “However, more unmonitored screen time can lead to an increased risk of exposure to all the dangers that lurk on the internet, including child predators who leverage social media to target and exploit innocent children. I urge parents to take proper precautions and be extra-vigilant in monitoring their children’s online activity, so kids can continue to take advantage of all the positive things the digital world has to offer and safely use their electronic devices to enrich their lives, while staying safe from predators and other online threats.”
According to allegations contained in the federal charging document, on April 16, 2020, the Union County Sheriff’s office received information regarding a missing 14-year-old female, who was possibly located in Charlotte with an adult male, later identified as Oppenheimer. CMPD officers were able to locate the minor at a residence in Charlotte, and the minor was returned to Union County. Law enforcement subsequently arrested Oppenheimer.
According to allegations in the criminal complaint, law enforcement determined that Oppenheimer met the minor on “Omegle,” a free online chat website, and later began talking to the minor on “Snapchat,” a mobile app that allows users to share messages, photos, and videos. The federal criminal complaint alleges that Oppenheimer wanted to meet the minor in April due to the COVID-19 outbreak, otherwise it was possible their meeting would need to be postponed up to a year, until the outbreak was over. The criminal complaint further alleges that the defendant was aware that the victim was a minor, and that he traveled from New York to Charlotte to meet with the minor for the purpose of engaging in sexual contact.
Oppenheimer is charged with one count of traveling across state lines for the purpose of engaging in sexual activity with a minor. He is currently in federal custody.
The charges contained in the criminal complaint are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
U.S. Attorney Murray thanked the FBI, the Union County Sheriff’s Office, and CMPD for their investigation of this case.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
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For additional information and helpful tools about children’s online safety please visit the FBI’s Safe Online Surfing website and view this video.
Also visit the Justice Department’s website to learn more about measures parents, guardians, caregivers and teachers can take to help protect children from becoming victims of online child predators.
Immediately report suspected online enticement or sexual exploitation of a child by calling 911, contacting the FBI at tips.fbi.gov, or filing a report with the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or report.cybertip.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Attorney Agrees to Plead Guilty to a String of Crimes, Including Paying Bribes to Two Federal Law Enforcement OfficialsRead the Press Release
LOS ANGELES – A Calabasas man has agreed to plead guilty to five federal offenses – one related to a credit card “bust-out” scheme, and the others related to more than $250,000 in bribes he paid to two federal agents for assistance that included sensitive law enforcement information.
Edgar Sargsyan, 39, an attorney with law offices in Beverly Hills, was charged today with conspiracy to commit bank fraud, two counts of bribing a public official, and two counts of making false statements to federal investigators. In a plea agreement also filed today in United States District Court, Sargsyan agreed to plead guilty to the five felony counts, which cumulatively carry a statutory maximum penalty of 50 years in federal prison.
In the plea agreement, Sargsyan admitted paying tens of thousands of dollars from the beginning of 2015 through early 2017 to a special agent with Homeland Security Investigations (HSI) and a special agent with the Federal Bureau of Investigation.
Sargsyan paid the HSI agent at least $32,000 in checks and at least $45,000 to $50,000 in cash in return for assistance that included the HSI agent searching law enforcement databases to corruptly obtain information that he passed to Sargsyan, according to the plea agreement. The HSI agent also altered a Department of Homeland Security database to make it “more likely” that a foreign national who was a client of Sargsyan’s law firm would be allowed to enter the United States. In another corrupt act detailed in the plea agreement, the HSI agent prepared a document on HSI letterhead in an unsuccessful attempt to have one of Sargsyan’s relatives from Armenia admitted into the United States.
Sargsyan also admitted he paid the FBI agent monthly cash bribes of up to $10,000 beginning in 2015 in exchange for the agent providing “protection,” which included running queries on law enforcement databases and warning Sargsyan to “stay away” from certain individuals who were the targets of criminal investigations. The agent, who worked out of the FBI’s San Francisco Field Office, accepted the cash payments on trips to Southern California, where he stayed at luxury hotels that were paid for by Sargsyan. The FBI agent also accepted from Sargsyan a $36,000 racing motorcycle as a “bonus” for running database checks on a particular person. Sargsyan also gave the FBI agent a $30,000 cashier’s check that was made to appear to be a payment to the agent’s business, according to court documents.
Sargsyan also agreed to plead guilty to two counts of making false statements to federal investigators. These charges stem from interviews in September 2017 by the Department of Justice Office of Inspector General, when Sargsyan falsely stated that the $30,000 check to the FBI agent was a loan, and in December 2018, when he falsely told special agents with the FBI and HSI that he did not pay bribes to the FBI agent.
In his plea agreement, Sargsyan also admitted he participated in a conspiracy that defrauded financial institutions by fraudulently obtaining credit cards in the names of aliens who had previously been in the United States on J1 visitor visas. Once the credit cards were issued by the financial institutions, Sargsyan and his co-conspirator charged “purchases,” including more than $941,000 that Sargsyan personally charged at two businesses he controlled, Pillar Law Group and Regdalin Group.
Sargsyan has been directed to make his initial court appearance in this case on June 9.
This matter was investigated by the FBI’s Eurasian Organized Crime Task Force, which includes agents from HSI, the FBI, the U.S. Department of Health and Human Services – Office of Inspector General, the United States Secret Service, the Glendale Police Department, the Los Angeles County Sheriff’s Department, and the California Department of Health Care Services. The Los Angeles Police Department provided substantial assistance.
This case is being prosecuted by Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Alabama United States Attorneys Announce $9,645,679 Award to Address Covid-19 Pandemic in AlabamaRead the Press Release
BIRMINGHAM, Ala. – United States Attorney Jay E. Town, Northern District of Alabama, United States Attorney Louis V. Franklin for the Middle District of Alabama, and United States Attorney Richard W. Moore for the Southern District of Alabama today announced that the State of Alabama received $9,645,679 in Department of Justice grants to respond to the challenges posed by the outbreak of COVID-19.
The grant 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, over $4.8 million has been allocated to local agencies throughout Alabama, with $2,954,663 being set aside for twenty-five jurisdictions in the Northern District. 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. Jurisdictions not listed for individual allocations may be eligible to apply for part of the state funding through the Alabama Department of Economic and Community Affairs.
“The COVID- 19 pandemic has created many challenges for law enforcement and our first responders to safely perform important duties,” Town said. “These funds from DOJ will be used to ensure that our brave men and women of the badge can continue the mission of safeguarding the citizens of our great state.”
“As the coronavirus crisis continues, every day law enforcement officers and first responders knowingly put themselves at risk of exposure as they do their jobs serving and protecting the community,” stated U.S. Attorney Louis V. Franklin, Sr. “This funding will help the State of Alabama and numerous local agencies that are struggling with limited resources to address many critical needs. I encourage all agencies eligible to apply for funding to do so.”
“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.
27 April 2020
US Attorney Coleman Adds Second Full-Time Federal Prosecutor to Bowling Green OfficeRead the Press Release
BOWLING GREEN, Ky. – United States Attorney Russell Coleman is today announcing the swearing-in of Mark Yurchisin, as the second full-time Assistant United States Attorney (AUSA) assigned to the newly-staffed Bowling Green Office.
The Bowling Green U.S. Attorney’s Branch Office is located in the William H. Natcher Federal Courthouse and opened on a full-time basis following a community dedication ceremony in February of this year. AUSA Yurchisin joins Branch Chief AUSA Madison Sewell, who was the first ever full-time Assistant United States Attorney based in Bowling Green.
“I promised this community that federal law enforcement would work hard to be better partners in furtherance of our duty to protect families who live outside of urban areas like Louisville,” said U.S. Attorney Russell Coleman. “To help fulfill that pledge, I could not be more pleased to again swear-in Mark, this time as a full-time federal prosecutor. He brings a wealth of relationships to our new Bowling Green Office with such top-flight law enforcement partners as the Bowling Green-Warren County Drug Task Force, dedicated sheriffs and talented Commonwealth’s Attorneys across the region.”
AUSA Yurchisin, who was born and raised in Warren County, previously served as a part-time Special Assistant U.S. Attorney in the office in which he will now serve a full-time federal prosecutor. Prior to being sworn in today as an AUSA, Yurchisin served as an Assistant County Attorney for Warren County Attorney Amy Milliken. Before he joined the Warren County Attorney’s Office, AUSA Yurchisin served as an Assistant Commonwealth’s Attorney for the 38th Judicial District in Morgantown, Kentucky.
Having two full-time AUSAs who live and work in the Bowling Green community will foster deeper working relationships with local law enforcement and state prosecutors which in turn will lead to better outcomes for the citizens of the entire Southcentral Kentucky region. Their work with federal, state, and local law enforcement partners will play a vital role in the investigation and prosecution of violent crime, drug trafficking, child exploitation, federal firearms, and fraud related offenses, to include combatting newly emerging COVID related fraud.
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U.S. Attorney and TIGTA Urge Public Awareness for Scams and Fraud Involving CARES Act Economic Impact PaymentsRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott and Rod Ammari, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), Office of Investigations, Western Field Division, today warned the public to be aware of scammers attempting to intercept Economic Impact Payments being delivered by the Internal Revenue Service.
U.S. Attorney Scott and SAC Ammari announced an effort to provide taxpayers with the necessary information to avoid falling victim to criminals using this pandemic as an opportunity to commit fraud. TIGTA has established a website for citizens to report IRS-related Coronavirus scams at tips.TIGTA.gov. You may also contact TIGTA’s investigative offices in Fresno at 559-458-7377 or in Sacramento at 916-974-5774.
Most eligible taxpayers will receive their payment through direct deposit into their bank account. Taxpayers that traditionally receive tax refunds via paper check, including many elderly citizens and those who do not use banking services, will receive their payments via U.S. Treasury check delivered by mail by the U.S. Postal Service.
“During this national emergency, all Californians must remain vigilant against those who are plotting ways to scam them out of their COVID-19 economic impact payments,” said U.S. Attorney Scott. “It is critical that suspicious calls and efforts are immediately reported to law enforcement.”
“TIGTA is the agency responsible for protecting the integrity of Federal tax administration, including attempts to impersonate the IRS to defraud taxpayers,” said Special Agent in Charge Ammari. “We are committed to working with our law enforcement partners to investigate and bring to justice any individual or organization that engages in criminal activity and exploits this national crisis as a means to commit fraud.”
U.S. Attorney Scott and SAC Ammari offered the following tips on how to identify and report attempted scams involving the Economic Impact Payments:
- The IRS will not call you, text you, or email you to prompt you for more information as a prerequisite to getting an Economic Impact Payment.
- To check on the status of your Economic Impact Payment, please visit www.IRS.gov and click on “Get My Payment.” Only use the website www.IRS.gov. Do not use any other websites or services that claim to be able to process your Economic Impact Payment or act as an intermediary between you and the IRS. Similarly, do not click on any links in e-mails that purport to take you to the IRS website. The best practice is to manually type “www.IRS.gov” into your web browser.
- Anyone who calls you claiming to be from the IRS and offering to process your Economic Impact Payment is impersonating the IRS. Do not share any personal or financial information with these scammers.
- Do not share your personal information with anyone, whether claiming to be from the IRS or some other business or government agency, offering to assist you with your Economic Impact Payment. Payments will be delivered by the IRS through direct deposit or via U.S. Treasury check delivered by mail by the U.S. Postal Service.
- Do not share your online banking username or password with anyone. The IRS does not need your online banking username and password in order to send your Economic Impact Payment.
After your Economic Impact Payment has been sent, the IRS will send you a letter confirming your payment. If you receive this letter, but you have not received your Economic Impact Payment, please report the missing payment to TIGTA through our website at tips.TIGTA.gov. You will also need to report the missing payment separately to the IRS.
Additional information about the coronavirus pandemic and the Justice Department’s role in combatting related illegal activities can be found at www.justice.gov/coronavirus.
U.S. Attorney Dunn Announces $9 Million Grant to Help State of Colorado Fight COVID-19Read the Press Release
DENVER – U.S. Attorney Jason Dunn announced the state of Colorado will receive $9 million to support its response to the public safety challenges posed by the outbreak of COVID-19.
“This grant will help ensure the safety of our law enforcement community as they continue to protect us during this unprecedented time,” Dunn said. “It is part of the $14 million the Department of Justice allocated for public safety agencies in the state of Colorado that we announced a few short weeks ago, and we are seeing the quick distribution of those funds. In addition to the $9 million given to the state, local jurisdictions are being awarded grants as well – with Larimer County and the cities of Fountain and Grand Junction also receiving grants in the last week.”
The grants to local jurisdictions were for the following amounts:
- Larimer County – $51,342
- City of Fountain – $34,327
- City of Grand Junction – $91,671
There is a wide range of application for the funds including overtime, hiring, and supplies – such as personal protective equipment and sanitizer. Grand Junction, for example, is using its funds to bring in a hazard mitigation team to sanitize police equipment, such as vehicles, on a weekly basis. The City is also purchasing PPE, masks, wipes and hand sanitizer.
Dunn is encouraging other communities in Colorado find out if they are eligible and apply for the remaining grant money. Other 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. These grants are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, of which $14 million was allocated for local jurisdictions in Colorado.
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Two Individuals Arrested for Conspiring to Defraud Purported Purchasers of Personal Protective EquipmentRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Donald Allen and Manuel Revolorio with conspiracy to commit wire fraud by seeking more than $4 million from a purported purchaser of personal protective equipment (“PPE”) that the defendants did not own nor otherwise have authorization to sell. The defendants were arrested today in California, and their initial appearance is scheduled for this afternoon before United States Magistrate Judge Pedro V. Castillo in federal court in Los Angeles.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the charges.
According to court filings, as part of their fraudulent scheme, Allen and Revolorio misrepresented the nature of their business experience, their inventory of PPE and their right to resell PPE to purported purchasers of PPE. For example, the defendants created a website for their company, International Commerce and Investment Group (ICIG), falsely representing that since 2014 ICIG had worked closely with global traders, medical institutions and other companies to supply PPE. The defendants also falsely claimed that ICIG had contracts and agreements in place to resell millions of masks, and attempted to pressure a potential purchaser to wire more than $4 million to secure those masks. To reinforce their claim to have large supplies of PPE available for sale, the defendants displayed sealed and shrink-wrapped empty boxes at their office, which they represented were filled with masks. The defendants also displayed to an individual, posing as a representative of an investor, more than one million masks that were owned by an unrelated third party – unbeknownst to the defendants, the “representative” was actually a federal law enforcement agent.
“As alleged in the complaint, the defendants sought to take advantage of the urgent national need for life-saving personal protective equipment through a fraudulent scheme designed to line their own pockets,” stated United States Attorney Donoghue. “This Office, together with the Department’s COVID-19 Hoarding and Price Gouging Task Force, is working tirelessly to ensure that scam artists who seek to capitalize on the worldwide pandemic will be brought to justice.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Offices in New Jersey and the Central District of California, and the Los Angeles Field Offices of the FBI and IRS-CI for their invaluable assistance in this case.
“The defendants in this case allegedly created an elaborate scam to defraud their victim, going as far as to wrap and label empty boxes and try to pass them off as containing actual personal protective equipment,” stated COVID-19 Hoarding and Price Gouging Task Force head Carpenito. “The public should be on guard against these types of schemes, and the perpetrators of them should know that the Department of Justice and its partners are working all the time to disrupt their attempts to prey on the public.”
"The alleged behavior here is nothing short of a betrayal of fellow citizens – both those serving on the front lines, and the communities who need those essential workers able to safely serve,” stated FBI Assistant Director-in-Charge Sweeney. “At this critical time, Allen and Revolorio allegedly deceived potential investors and purchasers into thinking they were running a legitimate business with resell rights to more than three million of these highly sought-after items. The FBI will continuously work to identify and hold accountable any company, individual, or entity whose intention it is to unlawfully take advantage of the current pandemic.”
“At a time when we should be coming together to help one another and support our healthcare professionals who are working heroically to save lives, Donald Allen and Manuel Revolorio allegedly decided to take advantage of the Covid-19 pandemic for their own personal benefit,” stated IRS-CI Special Agent-in-Charge Larsen. “IRS-CI is committed to not only protecting the tax system, but also protecting all taxpayers from unscrupulous individuals who attempt to take advantage of them.”
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being handled by the Office’s Public Integrity and Business & Securities Fraud Sections. Assistant United States Attorneys Nathan Reilly and Hiral Mehta are in charge of the prosecution.
The Defendants:
DONALD LEE ALLEN
Age: 62
Riverside, CaliforniaMANUEL REVOLORIO
Age: 37
Rancho Cucamonga, CaliforniaE.D.N.Y. Docket No. 20-MJ-318
Testing Laboratory Agrees to Pay up to $43 Million to Resolve Allegations of Medically Unnecessary TestsRead the Press Release
Genova Diagnostics Inc., a clinical laboratory services company based in Asheville, North Carolina, has agreed to pay up to approximately $43 million to resolve allegations that it violated the False Claims Act, including claims that it billed for medically unnecessary lab tests, the Department of Justice announced today.
“Government healthcare programs are designed to provide beneficiaries with care that is medically reasonable and necessary,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Providers of taxpayer-funded federal healthcare services will be held accountable when they knowingly cause false claims to be submitted for services that do not meet this standard of care.”
“The False Claims Act is an important legal tool in our rigorous fight to protect the integrity of our healthcare system from providers like Genova Diagnostics, that bill government programs for non-covered testing to boost profits at the expense of taxpayer dollars,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina. “This office is dedicated to ensuring that healthcare providers in the Western District make medical decisions that benefit their patients, not the providers’ bottom line.”
The settlement resolves allegations that Genova: (a) improperly submitted claims to Medicare, TRICARE, and the federal employee health program for its IgG allergen, NutrEval and GI Effects lab test profiles because the tests were not medically necessary, (b) engaged in improper billing techniques, and (c) paid compensation to three phlebotomy vendors that violated the physician self-referral prohibition commonly known as the Stark Law. The Stark Law is intended to ensure that physician referrals are determined by the medical needs of patients and not the financial interests of physicians.
Under the settlement, Genova has agreed to pay approximately $17 million, through the surrender of claim funds held in suspension by Medicare and TRICARE, plus up to an additional $26 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $43 million.
Contemporaneous with the civil settlement, Genova entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Genova establish and maintain a compliance program with specific requirements and that it engage an independent review organization.
“Labs are expected to bill taxpayer-supported federal health programs for medically necessary services, not pad their bottom lines as alleged by the government in this case,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to safeguard these vital programs.”
“The results of this investigation highlight another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to root out fraud and corruption involving medical professionals who undermine the integrity of the Department of Defense,” said Special Agent in Charge Robert E. Craig Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to target fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs, such as TRICARE."
“The OPM OIG is committed to ensuring the integrity of the Federal Employees Health Benefits Program, which depends upon fair and honest accountings by providers,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management, Office of the Inspector General.
The agreement resolves allegations brought by Darryl Landis under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring a lawsuit on behalf of the United States for fraud and to share in any recovery. The settlement provides for a payment of up to approximately $6 million to Dr. Landis.
This settlement was the result of a coordinated effort by the department’s Civil Division; the U.S. Attorney’s Office for the Western District of North Carolina; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the DCIS; the Defense Health Agency Office of General Counsel, and; the OPM OIG, with assistance from the North Carolina Department of Justice.
The lawsuit resolved by this settlement is captioned United States ex rel. Darryl Landis, M.D. v. Genova Diagnostics, Inc., et al., No. 1:17-cv-341 (W.D.N.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Testing Laboratory Agrees to Pay up to $43 Million to Resolve Allegations of Medically Unnecessary TestsRead the Press Release
ASHEVILLE, N.C. – Genova Diagnostics Inc., a clinical laboratory services company based in Asheville, North Carolina, has agreed to pay up to approximately $43 million to resolve allegations that it violated the False Claims Act, including claims that it billed for medically unnecessary lab tests, the Department of Justice and the U.S. Attorney’s Office announced today.
"Government healthcare programs are designed to provide beneficiaries with care that is medically reasonable and necessary,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Providers of taxpayer-funded federal healthcare services will be held accountable when they knowingly cause false claims to be submitted for services that do not meet this standard of care.”
“The False Claims Act is an important legal tool in our rigorous fight to protect the integrity of our healthcare system from providers like Genova Diagnostics, that bill government programs for non-covered testing to boost profits at the expense of taxpayer dollars,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina. “This office is dedicated to ensuring that healthcare providers in the Western District make medical decisions that benefit their patients, not the providers’ bottom line.”
The settlement resolves allegations that Genova: (a) improperly submitted claims to Medicare, TRICARE, and the federal employee health program for its IgG allergen, NutrEval and GI Effects lab test profiles because the tests were not medically necessary, (b) engaged in improper billing techniques, and (c) paid compensation to three phlebotomy vendors that violated the physician self-referral prohibition commonly known as the Stark Law. The Stark Law is intended to ensure that physician referrals are determined by the medical needs of patients and not the financial interests of physicians.
Under the settlement, Genova has agreed to pay approximately $17 million, through the surrender of claim funds held in suspension by Medicare and TRICARE, plus up to an additional $26 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $43 million.
Contemporaneous with the civil settlement, Genova entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Genova establish and maintain a compliance program with specific requirements and that it engage an independent review organization.
“Labs are expected to bill taxpayer-supported federal health programs for medically necessary services, not pad their bottom lines as alleged by the government in this case,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to safeguard these vital programs.”
“The results of this investigation highlight another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to root out fraud and corruption involving medical professionals who undermine the integrity of the Department of Defense,” said Special Agent in Charge Robert E. Craig Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to target fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs, such as TRICARE."
“The OPM OIG is committed to ensuring the integrity of the Federal Employees Health Benefits Program, which depends upon fair and honest accountings by providers,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management, Office of the Inspector General.
The agreement resolves allegations brought by Darryl Landis under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring a lawsuit on behalf of the United States for fraud and to share in any recovery. The settlement provides for a payment of up to approximately $6 million to Dr. Landis.
This settlement was the result of a coordinated effort by the department’s Civil Division; the U.S. Attorney’s Office for the Western District of North Carolina; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the DCIS; the Defense Health Agency Office of General Counsel, and; the Office of Personnel Management Office of the Inspector General, with assistance from the North Carolina Department of Justice.
The lawsuit resolved by this settlement is captioned United States ex rel. Darryl Landis, M.D. v. Genova Diagnostics, Inc., et al., No. 1:17-cv-341 (W.D.N.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Statement from Assistant Attorney General Makan Delrahim on the 20th Anniversary of World Intellectual Property DayRead the Press Release
This week, the U.S. Department of Justice Antitrust Division celebrates the 20th anniversary of World Intellectual Property Day. The division marks the occasion by remembering the revolutionary ideal that our nation’s founding fathers embedded in the U.S. Constitution: that “securing . . . to Authors and Inventors the exclusive Right to their respective Writings and Discoveries” will “promote the Progress of Science and useful Arts.” For over 200 years, this “exclusive Right” has served as the foundation of the U.S. system of patent, copyright, and trademark laws.
Indeed, as James Madison explained in The Federalist Papers, “The utility of this power (the Intellectual Property Clause) will scarcely be questioned. The copyright of authors has been solemnly adjudged, in Great Britain, to be a right of common law. The right to useful inventions seems with equal reason to belong to the inventors. The public good fully coincides in both cases with the claims of individuals.”
Securing the rights of individuals over their inventions and creative output provides powerful incentives for innovation and dynamic competition. Time and again, strong intellectual property rights have fueled new technologies and creative trends that break down the power of entrenched monopolists—all to the benefit of consumers all over the world.
Inventors, scientists, authors, musicians, and filmmakers have enriched our cultural fabric, improved our health, inspired generations of consumers to become innovators themselves, and helped make America great. As then-Assistant Attorney General for the Antitrust Division Robert H. Jackson, in a speech before the New York State Bar Association, put it: we are “a nation whose genius is invention.” In celebration of World Intellectual Property Day, the Antitrust Division honors these innovators and artists by helping to protect the intellectual property rights on which they rely.
Research Scientist Sentenced for Making False Statements in Connection with NIH GrantsRead the Press Release
ALBANY, NEW YORK – Gerwin Schalk, age 48, of Albany, was sentenced today to 1 year of probation for making false statements on conflict of interest certifications he submitted in connection with National Institutes of Health (NIH) grants.
The announcement was made by United States Attorney Grant C. Jaquith; New York State Inspector General Letizia Tagliafierro; and Scott J. Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (DHHS-OIG).
United States District Judge Mae A. D’Agostino also ordered Schalk to pay $70,000 in restitution and perform 50 hours of community service.
Schalk was a research scientist employed by the New York State Department of Health (DOH) in Albany, and served as deputy director of the National Center for Adaptive Neurotechnologies.
In connection with applying for and receiving federal research grants, Schalk was required to disclose any financial conflicts of interests to DOH and its affiliate, Health Research, Inc. (“HRI”), or certify that no conflicts existed.
In pleading guilty, Schalk admitted that he knowingly and repeatedly lied about, and failed to disclose, payments he was receiving from a company whose products Schalk regularly purchased and used in connection with his research. Schalk admitted that the company paid him at least $70,000, from July 2013 to April 10, 2019, and that he signed at least 15 conflict of interest forms during that time, never once disclosing a payment from the company as he was required to do.
The company paying Schalk also billed HRI approximately $260,000 for sales of neurotechnology equipment to HRI, from 2012 through January 23, 2018, and was principally paid from federal grant money.
Schalk resigned from state employment as part of his plea agreement.
This case was investigated by the New York State Inspector General’s Office and the DHHS Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Registered sex offender sentenced to 10 years in prison for possessing child pornographyRead the Press Release
DAYTON – Kenneth J. Musgrave, 55, of Greenville, Ohio, was sentenced in U.S. District Court to 120 months in prison and 20 years of supervised release for possessing child pornography on his phone.
According to court documents, Musgrave is a registered sex offender and was convicted in 2000 on state charges of one count of rape of a minor under the age 13 and one count of gross sexual imposition of a minor under the age 13. He was sentenced to 15 years in state prison.
In October 2018, while on parole for those offenses, Musgrave’s parole officer conducted a lawful parole search of his smartphone. Musgrave possessed more than 200 files of child pornography on his Samsung phone.
Musgrave pleaded guilty to possession of child pornography in January 2020.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Vance Callender, Special Agent in Charge over Michigan and Ohio, Homeland Security Investigations (HSI); the Ohio Department of Rehabilitation and Corrections, Adult Parole Authority and Greenville Police Chief Steve Strick announced the sentence imposed Friday by Senior U.S. District Court Judge Thomas M. Rose. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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President’s Commission on Law Enforcement and the Administration of Justice Completes Teleconferences on Crime Reduction and Begins Hearing on ReentryRead the Press Release
Last week, the President’s Commission on Law Enforcement and the Administration of Justice completed its hearings on crime reduction, with a panel on technology tools for law enforcement, specifically “drones,” facial recognition technology, and body worn cameras, and a panel featuring survivors of sexual assault, domestic violence, and human trafficking. The Commission also held its first hearing on reentry. 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 21, the Commission received testimony from Colonel Edwin Roessler Jr., Chief of the Fairfax County Police Department; Damon Mosler, Assistant District Attorney for San Diego County; Dr. Richard Vorder Bruegge, Senior Physical Scientist for the Federal Bureau of Investigation, and; Kevin Jinks, Senior Counsel for the Department of Justice Office of Legal Policy.
Testimony and discussions focused on technology tools for law enforcement. Colonel Roessler and Assistant District Attorney Mosler discussed body worn cameras. Colonel Roessler stated, “The biggest need is the public accountability for community and the police officers in the body-worn camera program.” Assistant District Attorney Mosler testified that although “public perception and expectation have made it almost essential for law enforcement to have cameras given the public desire for transparency and accountability,” this trend poses new challenges for prosecutors and the entire criminal justice system due, in part, to the quantity of data collected. Dr. Vorder Bruegge spoke of “opportunities and challenges associated with the use of facial recognition to combat violent crime.” The final panelist, Mr. Jinks, discussed “how governments at all levels can first use UAS, or Unmanned Aerial Systems, also known as drones, to further our missions and second counter the threat posed by dangerous drones and their operators.”
On Wednesday, April 22, the Commission concluded its hearing on Crime Reduction with testimony from Joyce Bilyeu, Director of Client Services for the Sacramento Regional Family Justice Center; Adrianna Griffith, SA/DV Specialist/Lived Experience Expert for the Women’s Center - Youth and Family Services; Bella Hounakey, Subject Matter Expert for the United States Advisory Council on Human Trafficking, and; Natasha Alexenko, Founder of Natasha’s Justice Project.
Testimony and discussion featured the personal experiences of survivors of sexual and domestic violence and human trafficking. Director Bilyeu shared her story as a survivor of domestic violence. She stressed the challenges victims face to leave their abusers, noting that each time she tried to take control of her situation by calling the police, her husband spiraled further out of control and the abuse worsened. Ms. Griffith shared her experiences of witnessing abuse as a child and falling into the cycle of crime as a victim herself. She advocates for early social services intervention for children who experience/witness abuse so that they have the chance to lead healthy lives. Ms. Hounakey shared her story of being trafficked by her aunt from Togo to the United States at nine-years-old to work up to 18 hours a day. She described how trafficking victims are conditioned by their traffickers to not trust law enforcement. She explained how, in addition to the federal agents who rescued her in 2014, she would have liked to have been met by medics, social workers, and translators so that she and the other victims would have better understood their situation. Ms. Alexenko provided the final testimony of the day, sharing her story as a survivor of sexual assault at gunpoint. She waited 10 years for her rape kit to be tested and 15 years before her rapist would face a jury.
On Thursday, April 23, the Commission began its hearing on Reentry with testimony from Tony Lowden, Executive Director for the Federal Interagency Council on Crime Prevention and Improving Reentry; Jason Hardy, Author of The Second Chance Club: Hardship and Hope After Prison, and Special Agent for the Federal Bureau of Investigation; John Koufos, the National Director of Reentry Initiatives, Right on Crime, and; Grant Duwe, Director of Research for the Minnesota Department of Corrections.
Testimony and discussion focused on the state of reentry. Executive Director Lowden testified that “reentry is all about redemption & providing every opportunity for a person to be who they were created to be…Reducing the risk of a prisoner re-offending upon release is one of the most effective ways to ensure public safety.” Special Agent Hardy discussed the economic benefit to quality reentry programs: “Every dollar committed to reentry services at probation and parole agencies has the potential to return enormous taxpayer savings down the road.” Mr. Koufos offered similar testimony, stating: “Successful reentry empowers people to participate in meaningful work opportunities, which helps many pay child support and restitution, and strengthens tax bases.” Director Duwe provided the day’s final testimony, stressing that reentry begins the day a person walks into prison. He stated the need to focus time in prison on quality evidence-based programming and not simply warehousing people behind bars.
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.