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17 April 2020
U.S. Attorney for the District of South Dakota and IRS-CI Warn Taxpayers Against Fraud Schemes Related to COVID-19 Economic Impact PaymentsRead the Press Release
The United States Attorney's Office for the District of South Dakota and Internal Revenue Service-Criminal Investigations (IRS-CI), St. Louis Field Office, are warning taxpayers to be on the lookout for scam artists trying to use the COVID-19 economic impact payments as cover for schemes to steal personal information and money.
Ron Parsons, U.S. Attorney for the District of South Dakota, and Karl A. Stiften, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), St. Louis Field Office, made the announcement today in an effort to prevent taxpayers from falling victim to criminals using the recently approved economic impact payments as an opportunity to commit a crime.
Automatic COVID-19 economic impact payments started being deposited into taxpayers’ accounts on April 11. For most Americans, this will be a direct deposit into your bank account. For the unbanked, retirees or other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment in this manner as well. Scammers may try to get you to sign over your check to them or use this as an opportunity to get you to “verify” your filing information in order to receive your money, and then use your personal information at a later date to file false tax returns in an identity theft scheme. Because of this, everyone receiving a COVID-19 related economic impact payment from the government is at risk.
Karl A. Stiften, Special Agent in Charge of the IRS-CI St. Louis Field Office warned “The existence of a deadly national pandemic will not stop criminals seeking to capitalize on the fears and difficulties faced by the public as they try to line their own pockets by stealing your money or your personal information.”
“All of us need to vigilant in these times to protect ourselves and our loved ones from being defrauded,” said U.S. Attorney Parsons. “You should report any suspicious activity to federal law enforcement immediately. If you think you are a victim of a scam or attempted fraud involving COVID-19 or stimulus relief, you can contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].”
Special Agent in Charge Stiften offers the following information and tips to spot a scam and understand how the COVID-19 related economic impact payments will be issued.
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will not call and ask you to verify your payment details. Do not give out your bank account or any other account information - even if someone claims it's necessary to get your check. It's a scam.
- If you receive a call, don't engage with scammers or thieves, even if you want to tell them that you know it's a scam, or you think that you can beat them. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don't click on any links in those emails or texts.
- Reports are also swirling about bogus checks. If you receive a check that requires that you verify the check online or by calling a number, it’s a fraud.
In these uncertain and trying times, we need to stand together united with purpose. Don’t become a victim by allowing criminals to exploit your emotions. Stay strong, tell your family, friends and neighbors about these scams.
"IRS Criminal Investigation alongside the U.S. Department of Justice are prioritizing these types of investigations to help protect taxpayers and the tax system, especially those looking to prey on vulnerable taxpayers,” said Special Agent in Charge Stiften. “Remember, go directly and solely to IRS.gov for official information.”
For more information, visit the IRS website at www.irs.gov/coronavirus. You can always report scams to the IRS on the website at https://www.irs.gov/privacy-disclosure/report-phishing
U.S. Attorney Justin Herdman and Homeland Security Investigations remind parents to be vigilant of online activity during National Child Abuse Prevention MonthRead the Press Release
April is National Child Abuse Prevention Month and U.S. Attorney Justin Herdman of the Northern District of Ohio and Vance Callender, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit, are reminding parents to be vigilant of their children’s online activities.
“The work our office and partners do to protect children and prevent abuse never stops, even during a national emergency,” said U.S. Attorney Herdman. “We are all committed to finding and prosecuting anyone who would exploit or endanger the children in our community. Parents can help us in this fight by taking an active role in knowing who their children talk to and what they do online.”
“Child predators continue to target young people even during this public health crisis,” said Special Agent in Charge Vance Callender. “We want everyone to know that while some aspects of regular life have been temporarily paused, HSI is designed to easily adapt to ensure its aggressive ability to protect children.”
“Ongoing investigations against child predators have not slowed down in the slightest,” said Ben Shaw, HSI Cleveland special agent. “Last week HSI arrested Matthew Barlow, a known sex offender, for possession and receipt of numerous images of child pornography. As the arrest of Mr. Barlow demonstrates, HSI investigations continue unaffected through this national crisis.”
U.S. Attorney Herdman and HSI offered the following tips to help protect your children online.
- Review and approve games and apps before they are downloaded.
- Make sure privacy settings are set to the strictest level possible for online gaming systems and electronic devices.
- Monitor your children’s use of the internet; keep electronic devices in an open, common room of the house.
- Check your children’s profiles and what they post online.
- Explain to your children that images posted online will be permanently on the internet.
- Make sure children know that anyone who asks a child to engage in sexually explicit activity online should be reported to a parent, guardian, or other trusted adult, as well as law enforcement.
To report suspicious activity or instances of child sexual exploitation, contact your local law enforcement agency. Tips can be submitted online at www.ice.gov/tipline, by phone at 866-DHS-2-ICE or by contacting your local HSI office. Reports can also be filed with NCMEC at 1-800-THE-LOST or online at www.cybertipline.org.
U.S. Attorney J. Douglas Overbey Announces $34,024 Award to Address Covid-19 Pandemic in TennesseeRead the Press Release
Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee today announced that Greene County Sheriff’s office received $32,024 in Department of Justice grants to respond to the public safety 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. Other jurisdictions can determine if they are eligible for funds and may 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.
“As this country continues to fight COVID-19, our office remains committed to deterring, investigating, and prosecuting those who seek to take advantage of the COVID-19 pandemic. This funding will help many of the communities struggling in these trying times and provide some much-needed relief to our district,” said U.S. Attorney Overbey.
“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 using these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies 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
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U.s. Attorney Announces $1.3 Million Grant to Denver Police to Fight COVID-19 PandemicRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced today that the City and County of Denver received $1.359 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19. The money will be used by the Denver Police Department for items such as personal protective equipment (PPE) and sanitizing devices.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition, $14 million was allocated for local jurisdictions in Colorado.
“Local governments and law enforcement are shouldering an immense amount of responsibility as they respond to coronavirus and work to prevent its spread,” said Dunn. “These funds are here to help them deal with the added burden they’re facing.”
Said Chief of Denver Police Paul M. Pazen: “The Denver Police Department is extremely grateful for this grant funding in support of community and officer safety amid the challenges posed by the COVID-19 pandemic. These funds will be used to support the community through staffing and overtime where most needed and will benefit the wellbeing of officers -- and by extension, those whom they contact – through personal protective equipment, devices for sanitizing gear and patrol vehicles, and COVID-19 testing.”
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
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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Two Charged with Bank FraudRead the Press Release
PROVIDENCE – Federal bank and credit card fraud charges have been filed in U.S. District Court in Providence against two individuals who allegedly participated in ATM skimming schemes that defrauded banks in Rhode Island and Massachusetts, announced United States Attorney Aaron L. Weisman and Craig A. Marech, Resident Agent in Charge of the Providence Office of the United States Secret Service.
It is alleged in court documents that Rafael Pedro Dutra DaSilva, 29, of Miami, FL, and Guilherme Mendes Altafin, 28, of Sao Paulo, Brazil, collectively accessed bank accounts at nearly a dozen bank branch offices with the use of gift and credit cards activated with stolen personal identifying information, fraudulently obtaining nearly $150,000.
According to court documents, in October 2019, law enforcement in Rhode Island and Massachusetts began receiving reports of a wave of fraudulent activity at bank ATMs. In November 2019, bank managers at an Acushnet, Mass., bank branch office notified police of a series of suspicious ATM transactions. Bank surveillance video showed the same individual as being responsible for many of the suspicious transactions. Acushnet Police established a live-streaming surveillance camera at the ATM, and on November 24, 2019, watched as the same person, later identified as DaSilva, allegedly attempted numerous transactions, completing several of them, repeatedly placing cash retrieved from the ATM inside a satchel he was carrying. He was detained and arrested outside of the bank.
Guilherme Mendes Altafin was arrested on December 10, 2019, shortly after an Acushnet police officer, familiar with the DaSilva investigation, watched as Altafin attempted several transactions, completing at least one of them, at the same ATM where DaSilva was arrested. It is alleged that a bank representative confirmed suspicious transactions, including two withdrawals of $500 each and six declined transactions.
Altafin’s arrest came two weeks after he allegedly was seen by an Acushnet police sergeant entering a New Bedford, Mass., courthouse carrying a bag with what appeared to contain a significant amount of cash on the same day a judge set $25,000 cash bail for DaSilva.
On Thursday, Altafin was ordered detained in federal custody by U.S. District Court Magistrate Judge Lincoln D. Almond. DaSilva remains in custody in Massachusetts. His appearance in U.S. District Court in Providence has not yet been scheduled.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
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Springfield Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man was sentenced today for failing to register as a sex offender.
Alberto Ayala, 60, was sentenced by U.S. District Court Judge Mark G. Mastroianni to time served (approximately 6.5 months) and five years of supervised release. In December 2019, Ayala pleaded guilty to one count of failure to register as a sex offender. Ayala was indicted in February 2019, and has been in custody since his arrest on Sept. 26, 2018, for violating his conditions of parole in another criminal case.
Ayala was convicted in New Jersey of sexual assault in 2006. While in New Jersey from 2011 to 2016, Ayala received, and complied with, many notices of his obligation to register as a sex offender. On Nov. 14, 2016, while Ayala was under parole supervision for the original sex offense, he submitted his last registration as a sex offender and vacated his address in New Jersey without advising his parole officer. Soon thereafter, a New Jersey parole warrant was issued for his arrest.
Ayala subsequently moved to Massachusetts, living in the Boston area in the summer of 2017 and in Springfield beginning in April 2018. Ayala never registered as a sex offender in Massachusetts, and was arrested in Springfield on Sept. 26, 2018.
United States Andrew E. Lelling and John Gibbons, United States Marshal for the District of Massachusetts, made the announcement today. Assistant U.S. Attorney Alex J. Grant, of Lelling’s Springfield Branch Office, prosecuted the case.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rapid City Man Sentenced for Illegal Possession of FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Michael Wiseley, age 37, was sentenced on April 13, 2020, to 5 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Wiseley, a previously convicted felon who is prohibited from possessing firearms, unlawfully possessing a Ruger, .380 caliber semi-automatic pistol, which was found after Wiseley came into contact with Rapid City police officers in June 2018.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’ssignature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Wiseley was immediately remanded to the custody of the U.S. Marshals Office.
President’s Commission on Law Enforcement and the Administration of Justice Continues Teleconferences on Crime ReductionRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice continued to hold hearings on crime reduction, with panelists speaking about domestic violence and sexual assault, technology issues encountered by law enforcement, and leveraging technology to reduce crime. The hearings were held over three days via teleconference. Each teleconference featured a panel of expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 14, the Commission received testimony from Matthew Gamette, Director of Forensic Services, Idaho State Police; Kim Garrett, CEO of Palomar, Oklahoma City’s Family Justice Center; Richard Hertel, Prosecutor for Ripley County, Indiana, and; Robert Hawkins, Muscogee Creek Nation Police Chief.
Testimony and discussions focused on preventing and reducing domestic violence and sexual assault. Director Gamette addressed the issue of forensic resources: “[I]n this country, for every one case we report, we get 1.5 cases back into the laboratory. To solve DNA backlogs, we need more scientists, bigger facilities, and funding. Turnaround time is directly proportional to lab staffing.” In response to a question regarding reports of increased allegations of domestic violence during the COVID-19 pandemic, CEO Garrett stated that Oklahoma City had experienced a 28 percent increase in domestic violence calls to police and detailed the City’s response to the crisis. Mr. Hertel spoke about the lack of criminal charges brought in domestic violence and sexual assault cases, either because of underreporting or case attrition. He advocated for a victim-centered approach to prosecutions. Chief Hawkins detailed the complexities of prosecuting domestic violence and sexual assault cases under tribal law and the challenges tribal governments face in providing essential services for victims.
On Wednesday, April 15, in a two-part session on technology issues encountered by law enforcement, the Commission heard testimony from Darrin Jones, Executive Assistant Director for Science and Technology for the FBI; Cyrus R. Vance Jr., District Attorney for New York County (New York); Chuck Cohen, Vice President of the National White Collar Crime Center; Bryan Stirling, Director of the South Carolina Department of Corrections, and; Todd Craig, Chief of the Office of Security Technology for the Federal Bureau of Prisons.
In part one of the hearing, testimony and discussion focused on lawful access and the dark web. DA Vance and Mr. Jones both stressed the need for federal legislation to achieve lawful access. Mr. Jones stated, “The impact and magnitude of the lawful access crisis in the United States has grown to a point where the public safety trade-off to the citizens of this country can and should no longer be made privately and independently in the corporate boardrooms of tech companies.” Vice President Cohen discussed the corruption of technology by criminals: “[W]hat is true is criminals tend to be early adopters of emerging technology and to subvert emerging technology to facilitate and obfuscate criminal activities. And this is especially true for online child sexual exploitation and online sex trafficking.”
The second part of the hearing focused on contraband cellphones and other technology issues concerning security in jails and prisons. Director Stirling and Chief Craig stressed that inmates, although physically removed from the public, are still able to continue to commit crimes if they have access to a cellphone, such as drug dealing, gang activity, and even murder – as was the case in a fatal shooting orchestrated behind bars of a correctional officer whose responsibility it was to remove contraband cellphones from prison.
On Thursday, April 16, the Commission heard testimony from Tom Ruocco, Chief of Criminal Law Enforcement, Texas Department of Public Safety; Oxford (Alabama) Police Chief Bill Partridge; Christopher Amon, Chief of the Firearms Operations Division for the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and; David LeValley, Assistant Chief, Detroit Police Department.
Testimony and discussion focused on leveraging technology to aid law enforcement. Chief Ruocco discussed the need to identify and integrate “new technologies and methodologies into [law enforcement] procedures and work flows.” Chief Partridge explained that because smaller jurisdictions do not have the same technology capacity as larger departments, a regional model of crime centers can be a force multiplier for fighting crime in all areas of a county. Chief Amon discussed the National Integrated Ballistic Information Network (NIBIN), which compares ballistic imaging of bullet casings and provides actionable leads to law enforcement. He stressed that due to the high probability of shooters to reoffend, law enforcement must be able to identify them swiftly. “[NIBIN] allows investigators to identify crime guns using cutting edge technology and trace their origin quickly.” Assistant Chief LeValley spoke about Project Green Light Detroit, the first public-private community partnership of its kind. The Project is a mix of real-time crime fighting and community policing aimed at improving neighborhood safety and also while revitalizing and growing local business.
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.
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.
Pharmacist Arrested and Charged with Firebombing PlotRead the Press Release
ALEXANDRIA, Va. – A Nebraska pharmacist was arrested today on charges related to an alleged conspiracy to use explosives, specifically Molotov cocktails, to firebomb and destroy a competitor pharmacy.
According to court documents, Hyrum T. Wilson, 41, of Auburn, told an alleged co-conspirator: “This is the last shipment he will get from me as long as the other pharmacy is still standing.”
Wilson allegedly supplied thousands of prescription pills, including opioids, from his business, Hyrum’s Family Value Pharmacy, to William Anderson Burgamy IV. Burgamy allegedly operated as the Darknet vendor NeverPressedRX (NPRX) from August 2019 through April 2020, and had thousands of illegal recorded sales on a major Darknet market. Burgamy was charged in the Eastern District of Virginia last week and ordered detained. The firebombing plot was uncovered through search warrants that were executed following Burgamy’s arrest.
According to court documents, Wilson conspired with Burgamy to conduct a firebombing of another pharmacy in Auburn, Nebraska. The goal of the plot was to destroy Wilson’s local competition, which Wilson and Burgamy allegedly believed would increase the volume of prescription drugs that Wilson’s business could obtain, thereby allowing Wilson and Burgamy’s drug trafficking operation to continue and expand. Wilson and Burgamy allegedly agreed that the plot, named “Operation Firewood,” would involve the use of Molotov cocktails to burn down the victim pharmacy, and that Burgamy would carry numerous firearms during the attack.
Wilson allegedly created “getaway” maps and routes for Burgamy to use to help him evade law enforcement detection following the intended firebombing. Wilson also suggested that Burgamy steal prescription medications from the victim pharmacy before setting it on fire, and Burgamy offered to share with Wilson the profits from any stolen drugs.
Wilson is charged with conspiracy to use fire and explosives, conspiracy to distribute controlled substances, and a firearms-related offense. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kevin Vorndran, Acting Special Agent in Charge of the FBI's Washington Field Office Criminal Division; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement. The FBI’s Omaha Field Office and the U.S. Attorney’s Office for the District of Nebraska provided significant assistance in executing the arrest. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids. This investigation was also supported by the interagency Joint Criminal Opioid and Darknet Enforcement (JCODE) team.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-140.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Pastor of Orange County Church Agrees to Plead Guilty to Orchestrating $33 Million Fraud that Conned InvestorsRead the Press Release
SANTA ANA, California – The pastor of the Westminster-based Church of the Healthy Self has agreed to plead guilty to federal criminal charges that he orchestrated a church-based investment scam that took in more than $33 million, United States Attorney Nick Hanna announced today.
Kent R.E. Whitney, 38, of Newport Beach, has agreed to plead guilty to a two-count information charging him with mail fraud and filing a false federal income tax return. The criminal information and a related plea agreement were filed Wednesday in United States District Court.
According to his plea agreement, from September 2014 until April 2019, Whitney engaged in a scheme to defraud investors through the Church of the Healthy Self (CHS), a non-profit corporation, and its related entities, including CHS Asset Management, Inc. Whitney founded these entities, operated them out of a strip mall in Westminster, and claimed to be the pastor of CHS.
At Whitney’s direction, CHS representatives appeared on television and at live seminars at CHS offices to solicit investments in CHS Trust, the church’s investment arm. Recordings of these appearances frequently were uploaded onto YouTube.
In these appearances, at Whitney’s direction, CHS representatives made false or misleading claims, including:
- CHS Trust guaranteed an annual rate of return of 12 percent;
- CHS Trust guaranteed a return of principal with no risk because it was federally insured;
- The worst return received during the previous five years was a 1.5 percent profit for the month of January 2015;
- Traders used by CHS had not lost money in 15 years; and
- CHS was audited by accounting firm KPMG.
In reality, little investor money went into any trading accounts, according to court documents.
Relying on these false statements, victim-investors sent more than $33 million to CHS from 2014 to 2019. As part of the scheme, Whitney directed that monthly statements be sent to victims that contained false reports of investment returns. Whitney intended to lull victims into believing their money had been invested and was consistent with the false claims made by CHS representatives.
Whitney also admitted in his plea agreement that he knowingly and willfully signed and filed a false federal income tax return that reported that his total income for the tax year 2018 was $17,539. In fact, as Whitney knew, his true income for that year was at least $452,872, of which approximately $435,333 was obtained via Whitney’s CHS fraud. The resulting tax loss was at least $130,808, the plea agreement states.
When Whitney enters his guilty plea, he will face a statutory maximum sentence of 23 years in federal prison.
The FBI and IRS Criminal Investigation investigated this matter. The Securities and Exchange Commission provided substantial assistance with the investigation.
This case is being prosecuted by Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office.
North Country Man Sentenced for Health Care Fraud, Paying KickbacksRead the Press Release
ALBANY, NEW YORK – Anthony C. Armstrong, age 30, was sentenced today to 18 months in prison, to be followed by 3 years of supervised release, and ordered to pay $50,000 in restitution, for committing fraud and paying bribes in connection with Medicaid-funded transportation.
The announcement was made by:
- United States Attorney Grant C. Jaquith;
- New York State Police Superintendent Keith M. Corlett;
- Susan Ferensic, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
- New York State Inspector General Letizia Tagliafierro.
From 2015 through May 2018, Armstrong worked for and helped operate Ti Taxi Inc. (“Ti Taxi”), and worked for other Medicaid-funded transportation companies, all based in Essex County, New York.
In pleading guilty, Armstrong admitted that he committed a variety of frauds against Medicaid and the New York State Department of Health, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.
Armstrong also admitted that he paid kickbacks and bribes to Medicaid beneficiaries in order to induce those beneficiaries to schedule and keep scheduling medical transportation appointments. Kickbacks included cash, phone cards, cigarettes and tobacco, and free goods at a convenience store in Ticonderoga.
This case was part of a multi-agency investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County. The following defendants were charged and have previously pled guilty:
Name
Residence
Federal charge(s)
Sentence
Arshad Nazir
Ticonderoga
Conspiracy to commit health care fraud; conspiracy to pay bribes and kickbacks to Medicaid beneficiaries
1 year and 1 day in prison, and ordered to pay $400,000 in restitution
Waqas Nauman
Queensbury, New York
Health care fraud
Time served (25 days in jail), and ordered to pay $55,000 in restitution
Khurram Gondal, aka Khurram Choudhary
Ticonderoga
Health care fraud
Time served (25 days in jail), and ordered to pay $60,000 in restitution
Qaiser Gondal
Watervliet, New York
Conspiracy to commit health care fraud
Sentencing scheduled for May 12, 2020
Khalid Chadder
Ticonderoga
Conspiracy to commit health care fraud
Sentencing scheduled for June 9, 2020
These cases were investigated by the FBI, the New York State Police’s Special Investigations Unit, and the Office of the New York State Inspector General, and were prosecuted by Assistant U.S. Attorney Michael Barnett.
Several additional agencies assisted in this investigation, including the Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.
North Carolina Man Is Sentenced to Prison for Violating Federal Sex Offender Registration LawRead the Press Release
STATESVILLE, N.C. – On Thursday, U.S. District Judge Kenneth D. Bell sentenced Gregory Michael Johnson, 37, to 38 months in prison for failure to register as a sex offender, in violation of the federal Sex Offender Registration and Notification Act, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Johnson to serve 10 years under court supervision after he is released from prison and to register as a sex offender.
The Sex Offender Registration Act, or SORNA, was enacted in 2006, and aimed to strengthen the existing sex offender registration and notification programs, by providing a comprehensive set of minimum standards for sex offender registration and notification in the United States, and by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to filed court documents and statements made in court, on August 2, 2016, Johnson was convicted in Iredell County of Sexual Battery, and, as part of his sentence, he was required to register as a sex offender for 30 years. In 2017, prior to his release from prison, Johnson was informed of his registration obligations under SORNA, and signed requisite forms acknowledging that he understood his sex offender registration requirements in the state of North Carolina. On March 7, 2017, Johnson moved to Tennessee, where again he signed the relevant forms acknowledging he understood the state’s sex offender registration requirements.
Court records show that, on at least three different occasions during the relevant time period, Johnson violated SORNA by failing to register as a sex offender and traveling in interstate commerce. Specifically, Johnson failed to update his sex offender registration each time his residential address changed, and failed to register his place of employment. According to court records, Johnson failed to register or update his sex offender registration between April 27, to July 27, 2017; January 28, to June 2, 2018; and September 17, to September 30, 2018.
At Johnson’s sentencing hearing, the Government argued for and secured an enhanced sentence, noting, among other things, the defendant’s repeated failure to comply with SORNA, and the need to promote respect for the law. The Government also noted that Johnson refused to register properly in either North Carolina or Tennessee, despite living in both states at various times.
On December 2, 2019, Johnson pleaded guilty to three counts of failure to register and update registration as required by SORNA, and traveling in interstate commerce. He has been in federal custody since July 8, 2019.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Marshals Service for their investigation of this case.
Assistant United States Attorney Alfredo De La Rosa prosecuted the case.
Maryland Cardiologist and Related Practices to Pay the United States $750,000 for Alleged KickbacksRead the Press Release
Mubashar Choudry, M.D., and three medical practices with which he is associated, Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute, have agreed to pay the United States $750,000 to resolve False Claims Act allegations that they knowingly billed Medicare and TRICARE for claims in violation of the Anti-Kickback Statute (AKS), the Department of Justice announced today. Choudry is a cardiologist who has treated patients in Maryland and Washington, D.C. for peripheral arterial disease.
“Providing impermissible remuneration to induce patient referrals undermines government health care programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Patients are entitled to expect that the medical testing they receive and any resulting referral decision are free of financial inducements to the referring physician that may inappropriately impact the physician’s judgment.”
The AKS prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare and TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute may give rise to liability under the False Claims Act.
The settlement resolves allegations that, between Jan. 1, 2013 and Dec. 31, 2016, Choudry, Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute submitted, or caused, false claims in violation of the AKS. Specifically, the defendants allegedly induced patient referrals by providing ankle-brachial index testing on patients under agreements with the referring physicians but without collecting from the physicians the fair market value for the tests. Ankle-brachial index testing is used to detect peripheral arterial disease, which Choudry and the practices would treat.
“Kickback schemes like the scheme alleged in this case not only call into question the integrity of individual medical decisions, but they also raise the cost of health care for all of us,” said U.S. Attorney Robert K. Hur for the District of Maryland. “Patients deserve care based on a doctor’s sound medical judgment, not the doctor’s personal financial interest.”
“For four years, Dr. Choudry and associated medical practices boosted their profits by allegedly paying kickbacks to referring physicians,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. “Along with our law enforcement partners, we will continue maintaining the integrity of these vital health programs because taxpayers deserve better.”
The agreement resolves allegations brought by Steven Pringle, a former sales and operations employee of the practices, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States, et al., ex rel. Pringle v. Choudry, et al., Case No. GJH 16-cv-3779 (D. Md.). As part of this settlement, Pringle will receive $121,500 as his share of the government’s recovery.
This settlement was the result of a coordinated effort by the Civil Division of the Department of Justice; the U.S. Attorney’s Office for the District of Maryland; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; and the Defense Health Agency Office of General Counsel. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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.
Maryland Cardiologist and Related Medical Practices to Pay the United States $750,000 for Alleged KickbacksRead the Press Release
Baltimore, Maryland - Mubashar Choudry, M.D., and related medical practices Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute, have agreed to pay the United States $750,000 to resolve federal False Claims Act allegations that they knowingly billed Medicare and TRICARE for claims in violation of the Anti-Kickback Statute. Choudry is a cardiologist who has treated patients in Maryland and Washington, D.C. for peripheral arterial disease.
The settlement was announced by United States Attorney for the District of Maryland Robert K. Hur and Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
“Kickback schemes like the scheme alleged in this case not only call into question the integrity of individual medical decisions, but they also raise the cost of health care for all of us,” said U.S. Attorney Robert K. Hur. “Patients deserve care based on a doctor’s sound medical judgment, not the doctor’s personal financial interest.”
“Providing impermissible remuneration to induce patient referrals undermines government health care programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Patients are entitled to expect that the medical testing they receive and any resulting referral decision are free of financial inducements to the referring physician that may inappropriately impact the physician’s judgment.”
The settlement resolves allegations that, between January 1, 2013 and December 31, 2016, Choudry, Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute submitted, or caused, false claims in violation of the federal Anti-Kickback Statute (AKS). Specifically, the defendants allegedly induced patient referrals by providing ankle-brachial index testing on patients under agreements with the referring physicians but without collecting from the physicians the fair market value for the tests. Ankle-brachial index testing is used to detect peripheral arterial disease, which Choudry and the practices would treat.
The AKS prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare and TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the federal False Claims Act.
The agreement resolves allegations brought by Steven Pringle, a former sales and operations employee of the practices, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States, et al., ex rel. Pringle v. Choudry, et al., Case No. GJH 16-cv-3779 (D. Md.). As part of this settlement, Pringle will receive $121,500 as his share of the government’s recovery.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Choudry, nor a concession by the United States that its claims are not well founded.
This settlement was the result of a coordinated effort by the Civil Division of the United States Department of Justice; the U.S. Attorney’s Office for the District of Maryland; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; and the Defense Health Agency Office of General Counsel.
U.S. Attorney Robert K. Hur and Assistant Attorney General Jody Hunt thanked Assistant United States Attorney Tarra DeShields and Trial Attorney Michael Hoffman of the Justice Department’s Civil Division, who handled this case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Manchester Man Sentenced to 21 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Jeffrey Ortiz-Rodriguez, 41, of Manchester, was sentenced to 21 months in federal prison for possession of fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in September of 2018, two Manchester Police officers encountered Ortiz-Rodriguez and questioned him about a recent encounter in which they believed he was involved. After learning that he was the subject of an active warrant, the offices arrested Ortiz-Rodriguez. A search of the defendant revealed various drug-related items and a quantity of fentanyl.
“Fentanyl traffickers jeopardize lives by selling a very deadly substance,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to be aggressive in our efforts to identify, prosecute, and incarcerate the criminals who distribute fentanyl and other dangerous drugs. Through Operation S.O.S., we are working closely with the Manchester Police Department to protect the citizens of Manchester from deadly opioids.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Kentucky U.S. Attorneys Robert Duncan and Russell Coleman join Kentucky Attorney General Cameron in Launching PSA Warning about Fraudulent COVID-19 Testing SitesRead the Press Release
LEXINGTON, Ky. – Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky, and Russell M. Coleman, U.S. Attorney for the Western District of Kentucky, along with Kentucky Attorney General Daniel Cameron on Friday jointly released a public service announcement (PSA) regarding fraudulent COVID-19 testing sites.
The 60-second PSA alerts Kentuckians to the dangers of fraudulent COVID-19 testing sites and urges them to work with a licensed healthcare provider if they experience COVID-19 symptoms. The Commonwealth’s COVID-19 website, kycovid19.ky.gov, contains guidance on when to seek care for COVID-19 symptoms.
Scammers may use fraudulent testing sites to obtain personal information and payment from patients, often without fully processing the tests or providing patients with the results.
“We want Kentuckians who need COVID-19 testing to get it, but we are encouraging Kentuckians to follow the direction of state and local officials and health departments, including about where to seek legitimate testing,” said U.S. Attorney Duncan. “Kentuckians should be aware that fraudulent COVID-19 testing sites are appearing across the Commonwealth, but they should rest assured that law enforcement is aware of this risk, proactively monitoring the situation, and pursuing criminals who are trying to take advantage of this extraordinary situation.”
“Thieves using the cover of this health threat to prey on Kentuckians would be well-advised to avoid the Commonwealth as arrest and prosecution await you here,” said U.S. Attorney Russell Coleman. “Please assist law enforcement by reviewing these indicators of fraud, use good common sense, and report any concerns as quickly as possible.”
“Information regarding the availability of COVID-19 testing is rapidly changing to keep pace with demand, and we want to arm Kentuckians with tips and information on how to avoid fraudulent COVID-19 testing sites,” said Attorney General Cameron. “Just a few weeks ago, our office opened an investigation into pop-up COVID-19 testing sites in Louisville after learning they were engaging in questionable practices, and we’re prepared to go after any testing site that seeks to take advantage of Kentuckians during the pandemic.”
The following tips should be used to avoid fraudulent COVID-19 testing sites:
- Contact a trusted, licensed healthcare provider if you are experiencing COVID-19 symptoms and believe you need to be tested.
- Avoid any testing site that requires up-front payments or payments in cash only.
- Contact your local health department to confirm the validity of a testing site. You can access the contact information for local health departments here.
U.S. Attorney Duncan, U.S. Attorney Coleman, and Attorney General Cameron, recently partnered with the FBI to launch the Kentucky Coronavirus Fraud Task Force. The mission of the task force is to identify, investigate, and prosecute fraud related to the ongoing coronavirus pandemic impacting Kentuckians.
If you believe you have been a target or victim of a scam or fraud, please report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. You can also report a COVID-19 scam to the Attorney General’s Office by visiting ag.ky.gov/scams or by calling 1-888-432-9257.
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Justice Department Seeks to End Illegal Online Sale of Industrial Bleach Marketed as “Miracle” Treatment for COVID-19Read the Press Release
The United States District Court for the Southern District of Florida has entered a temporary injunction halting the sale of an unapproved, unproven, and potentially dangerous coronavirus (COVID-19) treatment product, the Department of Justice announced today.
In a civil complaint and accompanying court papers filed in U.S. District Court for the Southern District of Florida today, the Department of Justice alleges that the defendants, Genesis II Church of Health and Healing (Genesis) and its principals, Mark Grenon, Joseph Grenon, Jordan Grenon, and Jonathan Grenon sell and distribute a product called Miracle Mineral Solution, also referred to as MMS. Genesis sells MMS through its websites claiming that it will cure, mitigate, treat, or prevent Coronavirus, which includes COVID-19, as well as other diseases including Alzheimer’s, autism, brain cancer, HIV/AIDS, and multiple sclerosis, among others. MMS is a chemical product which, when combined with the included activator, creates a powerful bleach product that the defendants market for oral ingestion. The Food and Drug Administration (FDA) has previously issued public warnings to consumers that MMS can cause nausea, vomiting, diarrhea, and symptoms of severe dehydration. The Justice Department sought preliminary relief from the court.
“The Department of Justice will take swift action to protect consumers from illegal and potentially harmful products being offered to treat COVID-19,” said Assistant Attorney General Jody Hunt. “We will continue to work closely alongside our partners at the Food and Drug Administration to quickly shut down those selling illegal products during this pandemic.”
“We will zealously pursue perpetrators of fraud schemes seeking to take advantage of the COVID-19 pandemic,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Not only are these products potentially harmful, but their distribution and use may prevent those who are sick from receiving the legitimate healthcare they need.”
The complaint alleges that defendants’ disease-related treatment claims are unsupported by any well-controlled clinical studies or other credible scientific substantiation. Additionally, the complaint asserts that MMS’s labeling is false and misleading and that since defendants make disease-related treatment claims about MMS in the absence of any clinical data, the products are misbranded.
On April 8, 2020, FDA, jointly with the Federal Trade Commission, issued a Warning Letter to Defendants notifying them that they are violating federal law (both the Federal Food, Drug, and Cosmetic Act as well as the Federal Trade Commission Act) by, among other things, distributing unapproved new drugs and misbranded drugs in interstate commerce. Despite this warning, the complaint alleges, the defendants not only continue to sell MMS with claims that it cures, mitigates, treats, or prevents Coronavirus, which includes COVID-19, but they have also expressly stated that they will not take corrective action.
“Americans expect and deserve proven medical treatments and today’s action is a forceful reminder that the U.S. Food and Drug Administration will use its legal authorities to quickly stop those who have proven to continuously threaten the health of the American public. It is vital that sellers of drug products comply with the FD&C Act and do not sell products with false and misleading claims, especially to treat COVID-19 and other debilitating diseases, such as autism and Alzheimer’s disease,” said FDA Commissioner Stephen M. Hahn, M.D. “Despite a previous warning, the Genesis II Church of Healing has continued to actively place consumers at risk by peddling potentially dangerous and unapproved chlorine dioxide products. We will not stand for this, and the FDA remains fully committed to taking strong enforcement action against any sellers who place unsuspecting American consumers at risk by offering their unproven products to treat serious diseases.”
FDA’s previous warning to consumers about the dangers of MMS can be found here: https://www.fda.gov/consumers/consumer-updates/danger-dont-drink-miracle-mineral-solution-or-similar-products.
The enforcement action filed today is being prosecuted by Senior Litigation Counsel Ross S. Goldstein and David A. Frank of the Department of Justice, Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Matthew Feeley of the U.S. Attorney’s Office for the Southern District of Florida, with assistance from Associate Chief Counsel for Enforcement Joshua Davenport of the FDA, Office of General Counsel, Department of Health and Human Services.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at www.justice.gov/usao-sdfl. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Justice Department Seeks to End Illegal Online Sale of Industrial Bleach Marketed as “Miracle” Treatment for COVID-19Read the Press Release
Court Orders Defendants to Stop Operating Website Selling Unlawful Bleach Product for Coronavirus Treatment
MIAMI, Fl. – Today, a federal judge in South Florida entered a temporary injunction halting the sale of an unapproved, unproven, and potentially dangerous coronavirus (COVID-19) treatment product, announced Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida.
The civil complaint and accompanying court papers filed in U.S. District Court for the Southern District of Florida allege that the defendants, Genesis II Church of Health and Healing (Genesis) and its principals, Mark Grenon, Joseph Grenon, Jordan Grenon, and Jonathan Grenon sell and distribute a product called Miracle Mineral Solution, also referred to as MMS. Genesis sells MMS through its websites claiming that it will cure, mitigate, treat, or prevent Coronavirus, which includes COVID-19, as well as other diseases including Alzheimer’s, autism, brain cancer, HIV/AIDS, and multiple sclerosis, among others. MMS is a chemical product which, when combined with the included activator, creates a powerful bleach product that the defendants market for oral ingestion. The Food and Drug Administration (FDA) has previously issued public warnings to consumers that MMS can cause nausea, vomiting, diarrhea, and symptoms of severe dehydration. The Justice Department sought emergency and preliminary relief from the court.
“We will zealously pursue perpetrators of fraud schemes seeking to take advantage of the COVID-19 pandemic,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “Not only are these products potentially harmful, but their distribution and use may prevent those who are sick from receiving the legitimate healthcare they need.”
“The Department of Justice will take swift action to protect consumers from illegal and potentially harmful products being offered to treat COVID-19,” said Assistant Attorney General Jody Hunt. “We will continue to work closely alongside our partners at the Food and Drug Administration to quickly shut down those selling illegal products during this pandemic.”
The complaint alleges that defendants’ disease-related treatment claims are unsupported by any well-controlled clinical studies or other credible scientific substantiation. Additionally, the complaint asserts that MMS’s labeling is false and misleading and that since defendants make disease-related treatment claims about MMS in the absence of any clinical data, the products are misbranded.
On April 8, 2020, FDA, jointly with the Federal Trade Commission, issued a Warning Letter to Defendants notifying them that they are violating federal law (both the Federal Food, Drug, and Cosmetic Act as well as the Federal Trade Commission Act) by, among other things, distributing unapproved new drugs and misbranded drugs in interstate commerce. Despite this warning, the complaint alleges, the defendants not only continue to sell MMS with claims that it cures, mitigates, treats, or prevents Coronavirus, which includes COVID-19, but they have also expressly stated that they will not take corrective action.
“Americans expect and deserve proven medical treatments and today’s action is a forceful reminder that the U.S. Food and Drug Administration will use its legal authorities to quickly stop those who have proven to continuously threaten the health of the American public. It is vital that sellers of drug products comply with the FD&C Act and do not sell products with false and misleading claims, especially to treat COVID-19 and other debilitating diseases, such as autism and Alzheimer’s disease,” said FDA Commissioner Stephen M. Hahn, M.D. “Despite a previous warning, the Genesis II Church of Healing has continued to actively place consumers at risk by peddling potentially dangerous and unapproved chlorine dioxide products. We will not stand for this, and the FDA remains fully committed to taking strong enforcement action against any sellers who place unsuspecting American consumers at risk by offering their unproven products to treat serious diseases.”
FDA’s previous warning to consumers about the dangers of MMS can be found here: https://www.fda.gov/consumers/consumer-updates/danger-dont-drink-miracle-mineral-solution-or-similar-products.
The enforcement action filed today is being prosecuted by Assistant United States Attorney Matthew Feeley of the U.S. Attorney’s Office for the Southern District of Florida, and Senior Litigation Counsel Ross S. Goldstein and David A. Frank from the Department of Justice, Civil Division’s Consumer Protection Branch. Assisting with the enforcement action is Associate Chief Counsel for Enforcement Joshua Davenport of the FDA, Office of General Counsel, Department of Health and Human Services.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at www.justice.gov/usao-sdfl. For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
Harrison County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Ann Brennan, of Shinnston, West Virginia, was sentenced today to 24 months incarceration for a drug charge, U.S. Attorney Bill Powell announced.
Brennan, age 53, pled guilty to one count of “Distribution of Hydrocodone in Proximity of a Protected Location” in December 2019. Brennan admitted to selling hydrocodone near Lincoln Middle School and Lincoln High School in Harrison County in November 2017.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Greensboro, N.C. Man Is Sentenced to Prison for Conspiracy to Manufacture Thousands of Dollars in Counterfeit U.S. CurrencyRead the Press Release
STATESVILLE, N.C. – Joseph Haywood Smith, 45, of Greensboro, N.C., was sentenced to 41 months in prison late yesterday, for conspiracy to manufacture more than $7,000 in counterfeit U.S. currency, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also sentenced Smith’s co-defendant, Angela Kristen Shaw, 39, also of Greensboro, to time served, and ordered both defendants to serve two years of supervised release.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from February 2019 to March 2019, Smith and Shaw manufactured counterfeit U.S. currency, which they then used to purchase goods at various retail stores in the greater Statesville area. According to court records, the defendants purchased art supplies, and used them to manufacture more than 335 counterfeit $20 bills, and more than 63 counterfeit $10 bills. Court records show that during the relevant time period, the defendants used, or attempted to use, the counterfeit currency to buy merchandise at various retail stores, including at Burger King, CVS, and Dollar General located in Statesville, and elsewhere.
In pronouncing the sentence, Judge Bell noted that “counterfeiting is extremely serious,” and called Smith, who has a significant criminal history, a “career lifetime thief.”
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.
Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Government Seeks to Forfeit Fraudulently Obtained Items from Pawn Shop OwnerRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney James P. Kennedy, Jr. announced today that a civil forfeiture complaint has been filed in United States District Court for the Western District of New York seeking to forfeit assets which the government alleges that Devin Tribunella, 36, of Rochester, NY, obtained through fraud.
According to Assistant U.S. Attorney Grace M. Carducci, who is handling the civil case, the complaint seeks the forfeiture of:
• A 2014 Rolls Royce; • A 2014 Mercedes Benz; • A 2008 Lamborghini; • A 2015 Porsche 911; • $148,025 seized from two PayPal accounts; • $7,157.87 seized from Canandaigua National Bank; • A men’s Rolex watch; • A men’s Patek Phillipe diamond encrusted watch; • A 14k 21ct. diamond tennis chain; • A 14k 2ct. diamond tennis bracelet; • A 14k diamond cross; • A 14k 41.5ct. diamond necklace; and
• A gold Cartier bracelet.On November 19, 2019, Tribunella was charged by criminal complaint with: wire fraud; conspiracy to commit wire fraud; selling and conspiring to sell stolen goods across state lines; engaging in financial transactions involving the proceeds of this unlawful activity; and aggravated identity theft. Tribunella owns and operates Royal Crown Pawn & Jewelry (Royal Crown) located at 3635 Dewey Avenue in Rochester. Royal Crown has one of the highest volumes of purchases and sales of any pawnshop in Monroe County.
The complaint against Tribunella states that individuals struggling with opiate addiction had been stealing merchandise from Rochester area retail stores, including CVS, Wegmans, Walmart, Kohl’s, Lowe’s, Circuit City, Target, Walmart, and Home Depot, and selling the stolen merchandise to pawnshops, including Royal Crown. Those stealing the property would then use the proceeds of their “sales” to Royal Crown in order to purchase illegal drugs. The defendant allegedly knowingly purchased stolen, new-in-box goods from these individuals for a fraction of the retail value. In order to perpetuate this scheme, Tribunella made false and fraudulent representations in an online database known as LeadsOnline as well as in his User Agreements with eBay and Amazon. The defendant would subsequently re-sell the stolen goods on eBay and Amazon and ship them to buyers, including to buyers located outside of New York State.
Between January 1, 2017, and September 16, 2019, Tribunella and a co-defendant are accused of purchasing and re-selling $3,248,426.79 in stolen goods on eBay. According to the civil complaint, Tribunella used $2,995,949.55 of these illegal proceeds to purchase the above-referenced vehicles and jewelry, and to fund financial accounts and cash withdrawals.
This cycle of theft and re-sale has also resulted in Monroe County having some of the highest incidents of retail theft in the country, according to statistics maintained by nationwide retailers.
The criminal and civil complaints are the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office; the Rochester Police Department, under the direction of Chief La’Ron D. Singletary; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the Greece Police Department, under the direction of Chief Patrick Phelan; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
If convicted of the criminal charges, Tribunella faces 20 years in prison and a $250,000 fine.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Former Shreveport Police Officer Pleads Guilty to Anabolic Steroids ConspiracyRead the Press Release
SHREVEPORT, La. – U.S. Attorney David C. Joseph announced that Brian Skinner, 44, a former Shreveport police officer, appeared in federal court on April 16, 2020, before U.S. District Judge Elizabeth E. Foote, and pleaded guilty to conspiracy to distribute and possess with the intent to distribute anabolic steroids.
According to plea documents filed in the case, from January 2016 to May 2018, Skinner obtained anabolic steroids on multiple occasions from Brant Landry, an acquaintance he met at a Bossier City gym. In addition to obtaining the anabolic steroids from Landry for himself, Skinner also obtained them to distribute to a third party. Besides his own criminal conduct, Skinner failed in his duty as a law enforcement officer to report Landry’s steroid trafficking and related activity to the appropriate authorities.
On November 13, 2019, Skinner, along with his co-defendant and former Bossier Parish Deputy Jonathan Colgin, was indicted on charges of conspiracy to distribute and possess with the intent to distribute anabolic steroids. Colgin was also charged with misprision of a felony. Colgin entered a not guilty plea on December 4, 2019.
Following the plea hearing, Skinner was released to home incarceration. At sentencing on May 27, 2020, Skinner faces up to ten years in prison and a $500,000 fine.
This case is related to the prosecution in United States v. Brant R. Landry, and United States v. Mike Mosura, Criminal Docket No. 18-cr-00252. Press releases linked.
The DEA, High Intensity Drug Trafficking Areas (HIDTA) Task Force and Bossier Parish Sheriff’s Office investigated the case. Assistant U.S. Attorneys Earl M. Campbell and Jessica D. Cassidy are prosecuting case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Postal Employee Sentenced for Mail TheftRead the Press Release
ALBANY, NEW YORK – John R. Elbayeh, aka Jean Elbayeh, age 44, of Albany, was sentenced today to time served (about 6 months in jail), to be followed by 2 years of supervised release, for stealing Apple iPhones, gold coins, small gold bars and other valuable items from mailed packages while employed as a postal clerk.
The announcement was made by United States Attorney Grant C. Jaquith and Matthew Modafferi, Special Agent in Charge of the Northeast Area for the United States Postal Service (USPS), Office of the Inspector General (OIG).
Elbayeh worked as a lead mail processing clerk at the USPS Processing and Distribution Center in Albany, from December 2012 through December 2018. He admitted that for approximately 2 years ending in December 2018, he stole valuable items from the mail, including iPhones and gold coins, which he pawned for a total of $50,362.22.
Shortly after being interviewed by federal agents in December 2018, Elbayeh took a one-way flight to Beirut, Lebanon, and remained outside the United States until October 17, 2019. On that date, USPS-OIG Agents arrested him at Dulles International Airport in Virginia, where Elbayeh had just arrived from a flight originating in Cairo, Egypt. Elbayeh had been in custody since that time.
This case was investigated by the USPS, Office of the Inspector General, with assistance from the United States Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Federal Prosecutors Team up with AARP to Provide Californians with Information on Scams Related to Coronavirus and COVID-19Read the Press Release
LOS ANGELES – Prosecutors from the four United States Attorney’s Offices in California, along with representatives from the FBI, will be participating in a telephonic town hall being coordinated by AARP to provide information to California residents to help them identify and avoid fraudulent schemes related to Coronavirus and COVID-19.
The telephonic town hall will happen on Monday, April 20 from 10 a.m. until 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions to a panel of Assistant United States Attorneys from the four offices that serve California.
AARP’s Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation may sign up here.
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
“As part of our ongoing efforts to enhance security across our district, we are participating in this town hall to provide valuable information to help residents avoid scams that could cost them their hard-earned money,” said United States Attorney Nick Hanna. “Unfortunately, during a time when all Americans are coming together, there are some individuals who seek to exploit the current health emergency and prey on our seniors. Our public outreach efforts are designed to provide knowledge that will increase everyone’s level of safety.”
Soon after the town hall event, a recording will be available at https://vekeo.com/aarpcalifornia/#.
Nick Hanna is the United States Attorney for the Central District of California, which is comprised of seven counties – Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
Federal Prosecutors Team up with AARP to Provide Californians with Information on COVID-19 ScamsRead the Press Release
NEWS RELEASE SUMMARY – April 17, 2020
SAN DIEGO – Prosecutors from the four United States Attorney’s Office in California, along with representatives from the FBI, will be participating in a telephonic town hall being coordinated by the AARP to provide information to California residents to help them identify and avoid fraudulent schemes related to Coronavirus and COVID-19.
The telephonic town hall will happen on Monday, April 20 from 10 a.m. until 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions of a panel of Assistant United States Attorneys from the four offices that serve California.
The AARP Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation can sign up on this AARP registration page: https://vekeo.com/aarpcalifornia/#.
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
“This innovative outreach event will deliver valuable information designed to protect potentially vulnerable seniors from scams, cyber-attacks and fake cures,” said Robert Brewer, U.S. Attorney for the Southern District of California. “Community members will also learn how to report suspected fraud, which is critically important. We need to partner with educated consumers to identify and investigate despicable felons seeking to profit from the current health emergency by preying on the public.”
U.S. Attorney Brewer commended Assistant U.S. Attorney Robert Huie, Deputy Chief of the Major Frauds Section, for his participation in the AARP town hall and prosecution of significant COVID-19 scams.
Soon after the event, the recording will be available at https://vekeo.com/aarpcalifornia/#.
The FBI continues to warn the public about health care fraud schemes: https://www.fbi.gov/news/pressrel/press-releases/fbi-warns-of-emerging-health-care-fraud-schemes-related-to-covid-19-pandemic and other COVID-19 related crimes at: https://www.fbi.gov/coronavirus.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800.
In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Federal Prosecutors and FBI to Participate in Telephonic Town Hall to Provide Information About COVID-19 ScamsRead the Press Release
SAN FRANCISCO – Prosecutors from the four United States Attorney’s Offices in California, along with representatives from the FBI, will participate in a telephonic town hall to help California residents identify and avoid fraudulent schemes related to Coronavirus and COVID-19. The event is being coordinated by the American Association of Retired Persons (“AARP”).
The telephonic town hall will happen on Monday, April 20 from 10 to 11 a.m. PDT. During the event, a special agent from the FBI and a federal prosecutor will make presentations, and participants from across California will be allowed to ask questions to a panel of Assistant United States Attorneys from the four offices that serve California.
AARP’s Fraud Watch Network is providing the infrastructure for the event. Approximately 100,000 AARP members will receive a phone call Monday morning inviting them to participate in the town hall. Those who wish to receive an invitation may sign up here (https://vekeo.com/aarpcalifornia/).
During the current health crisis, federal investigators and prosecutors continue to fulfill their critical mission of protecting public safety. Federal officials have prioritized the disruption, investigation and prosecution of crimes related to Coronavirus and COVID-19, including fraudulent schemes, unapproved treatments, and scams related to stimulus money. During the town hall, federal officials will discuss the types of schemes currently being seen, along with tips on how to avoid becoming a victim.
Soon after the town hall event, a recording will be available at https://vekeo.com/aarpcalifornia/.
***
REPORT COVID-19 CRIME. Contact the National Center for Disaster Fraud Hotline: 866-720-5721 or [email protected].
Coronavirus Fraud Task Force Committed to Protecting U.S. Postal Service Delivery of Economic Impact PaymentsRead the Press Release
ALEXANDRIA, Va. – The Virginia Coronavirus Fraud Task Force announced today that they are preparing for potential criminal activity, including theft and fraud, from the Economic Impact Payment checks or debit cards soon to be hand-delivered by the U.S. Postal Service.
“The U.S. Postal Inspection Service will be extra vigilant as Economic Impact Payments are mailed to approximately 80 million Americans across the country,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “We are prepared to protect our employees, our customers, and the U.S. Mail from criminals who are looking to take advantage of our nation during the Coronavirus pandemic. We will continue to work in conjunction with the U.S. Attorney’s Office and our partners in the COVID-19 Task Force to investigate anyone who seeks to take advantage of consumers during these unprecedented times, and bring them to justice.”
In response to the significant economic challenges caused by the COVID-19 pandemic, the United States Government passed a $2 trillion stimulus package which includes providing Economic Impact Payments (EIPs) to millions of Americans. These EIPs will be distributed in two ways: direct deposit into recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury. The distribution of electronic direct deposits has already started. The mailings through the U.S. Postal Service of Treasury checks are expected to begin April 20.
“Fraudsters frequently prey upon vulnerable individuals during difficult times,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are working closely with our law enforcement partners like the U.S. Postal Inspection Service to guard against fraudulent pandemic profiteers, as well as to ensure the rule of law and public safety is not eroded during this critical time. For anyone victimized by a COVID-19 scam, our office remains steadfastly committed to pursuing justice on your behalf.”
The U.S. Postal Service anticipates delivering over 80 million EIPs over the next few months. This is an unprecedented mailing the Postal Service is ready to deliver for the American public.
“We are committed to ensuring that economic-impact payments are safely delivered to the citizens of Virginia and prosecuting those who interfere with those efforts,” said U.S. Attorney Thomas T. Cullen. “We will aggressively investigate and prosecute mail theft and tampering related to these impact payments, as well as fraud schemes associated with the COVID-19 pandemic.”
The U.S. Postal Inspection Service will have a critical security and investigative role to ensure these checks make it to intended recipients. U.S. Postal Inspectors are preparing to protect against and prevent criminal activities that may arise relating to the distribution of these benefits. There will also likely be a variety of related fraud schemes to investigate as criminals attempt to exploit these EIP mailings for their own greed.
The U.S. Postal Inspection Service will partner with the Virginia Coronavirus Fraud Task Force on any investigations surrounding EIPs in continued partnership to bring criminals to justice.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal 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 about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
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.
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Coronavirus Fraud Task Force Committed to Protecting U.S. Postal Service Delivery of Economic Impact PaymentsRead the Press Release
ROANOKE, Va. – The Virginia Coronavirus Fraud Task Force announced today that they are preparing for potential criminal activity, including theft and fraud, from the Economic Impact Payment checks or debit cards soon to be hand-delivered by the U.S. Postal Service.
“The U.S. Postal Inspection Service will be extra vigilant as Economic Impact Payments are mailed to approximately 80 million Americans across the country,” said Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service. “We are prepared to protect our employees, our customers, and the U.S. Mail from criminals who are looking to take advantage of our nation during the Coronavirus pandemic. We will continue to work in conjunction with the U.S. Attorney’s Office and our partners in the COVID-19 Task Force to investigate anyone who seeks to take advantage of consumers during these unprecedented times, and bring them to justice.”
In response to the significant economic challenges caused by the COVID-19 pandemic, the United States Government passed a $2 trillion stimulus package which includes providing Economic Impact Payments (EIPs) to millions of Americans. These EIPs will be distributed in two ways: direct deposit into recipient’s bank accounts and Treasury checks or debit cards mailed by the U.S. Treasury. The distribution of electronic direct deposits has already started. The mailings through the U.S. Postal Service of Treasury checks are expected to begin April 20.
“Fraudsters frequently prey upon vulnerable individuals during difficult times,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “We are working closely with our law enforcement partners like the U.S. Postal Inspection Service to guard against fraudulent pandemic profiteers, as well as to ensure the rule of law and public safety is not eroded during this critical time. For anyone victimized by a COVID-19 scam, our office remains steadfastly committed to pursuing justice on your behalf.”
The U.S. Postal Service anticipates delivering over 80 million EIPs over the next few months. This is an unprecedented mailing the Postal Service is ready to deliver for the American public.
“We are committed to ensuring that economic-impact payments are safely delivered to the citizens of Virginia and prosecuting those who interfere with those efforts,” said U.S. Attorney Thomas T. Cullen. “We will aggressively investigate and prosecute mail theft and tampering related to these impact payments, as well as fraud schemes associated with the COVID-19 pandemic.”
The U.S. Postal Inspection Service will have a critical security and investigative role to ensure these checks make it to intended recipients. U.S. Postal Inspectors are preparing to protect against and prevent criminal activities that may arise relating to the distribution of these benefits. There will also likely be a variety of related fraud schemes to investigate as criminals attempt to exploit these EIP mailings for their own greed.
The U.S. Postal Inspection Service will partner with the Virginia Coronavirus Fraud Task Force on any investigations surrounding EIPs in continued partnership to bring criminals to justice.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal 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 about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
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.
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Convicted Drug Trafficker Charged with Escaping Custody of Federal Bureau of PrisonsRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announces that today, RICHARD R. CEPHAS, of Wilmington, Delaware, was charged in a federal Criminal Complaint with escaping from the custody of the Federal Bureau of Prisons (BOP) in Butner, North Carolina on or about April 1, 2020. The Criminal Complaint was authorized by United States Magistrate Judge Robert T. Numbers, II, and supported by the sworn affidavit of a Deputy United States Marshal. The United States Marshals Service (USMS) has been investigating CEPHAS’ alleged escape since he was discovered missing on April 2.
In June 2017, CEPHAS was sentenced by the United States District Court for the District of Delaware to a term of 66 months in federal prison – for his violation of Title 21, United States Code, Sections 841 (a)(l) and (b)(l)(A) and 846, Conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine. The conviction and sentence resulted from a long-term High Intensity Drug Trafficking Area (HIDTA) federal wiretap investigation spearheaded by the Drug Enforcement Administration’s (DEA) Drug Trafficking Task Force in Delaware. More about that investigation here.
As alleged in the publicly filed affidavit attached to the Criminal Complaint, CEPHAS had been serving the remainder of his prison sentence at the Federal Prison Camp in Butner, NC. On April 2, 2020, CEPHAS was placed in an escape status by the BOP following his absence from a bed count conducted by staff at the Butner facility. At the time of his absence, CEPHAS was not authorized to be away from the Federal Prison Camp. He remains in an escape status and law enforcement is working to determine his whereabouts.
U.S. Attorney Higdon issued the following statement:
“This morning, members of my office obtained a criminal complaint charging Richard R. Cephas with violation of Title 18, United States Code, Section 751(a), escape from the custody of a facility to which he was confined at the Direction of the Attorney General.
The complaint alleges that Mr. Cephas began planning his escape as early as March 30. At that time, he had email communication with at least one family member. Two days later, Mr. Cephas contacted another family member regarding his plan to escape. When a head count was conducted later that day, and again very early in the morning of April 2, Mr. Cephas was missing. A search of the entire prison complex resulted in a determination that Mr. Cephas had escaped.
Media reports surfaced late yesterday afternoon in which an individual identifying himself as Richard Cephas during a recorded video interview explained that he escaped from Butner because of health concerns related to the ongoing coronavirus pandemic and his belief that he is particularly vulnerable because of an ongoing chronic health condition. This, he explained, justified his escape and warrants a modification to his underlying sentence. He also argued that it requires the Justice Department to overlook and tolerate his escape.
Let me be clear, Mr. Cephas is a convicted drug trafficker who was sentenced to federal prison for his role in a wide-ranging drug conspiracy which imported cocaine and methamphetamine into the United States from Mexico. He was convicted in federal court in Delaware and sentenced to a term of imprisonment, which he was serving at the Butner facility. Mr. Cephas’ decision to escape federal custody is nothing more than an opportunistic move to use the coronavirus pandemic as an excuse to cut his prison term short. He is a fugitive from justice and federal law enforcement will find him and bring him to Court here in the Eastern District to answer these charges.
Should Mr. Cephas choose to turn himself in, he may do so at any law enforcement office; to the United States Marshal for the Eastern District of North Carolina (call 919-856-4153); or to the United States Marshal in any federal district in which he is currently located (call 877-WANTED-2). Otherwise, federal agents will pursue his arrest.
Mr. Cephas will, of course, be extended his Constitutional rights when he appears in Court, including the presumption of innocence and the requirement that the Government prove the escape case against him beyond a reasonable doubt. We look forward to presenting our case before the Court.
In the meantime, the public should assume that Mr. Cephas is dangerous and they should take caution if they encounter him. The public should also know that anyone who knowingly harbors or assists Mr. Cephas in avoiding arrest may be in violation of federal law as well.
I want to thank the law enforcement officers who have been tasked with investigating this case and pursuing Mr. Cephas’ arrest. His decision to escape has increased their already heavy workload and has raised the risk of illness and harm to them by drawing them out into the community at this difficult time. This is another example of the dedication of law enforcement who serve us no matter the circumstances.”
The charges and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Christian County Man Arrested on Charges of Alleged Illegal Possession of Firearms by a FelonRead the Press Release
SPRINGFIELD, Ill. – An Assumption, Ill., man, Randall R. Burrus, 50, made his initial appearance in federal court via teleconference on April 16, following his arrest on April 15, 2020. Burrus is charged in a criminal complaint with possession of a firearm by a felon and with possession of a firearm after conviction for misdemeanor domestic violence.
According to the affidavit filed in support of the criminal complaint, in mid-March, the FBI National Threat Operations Center received an online tip via the www.tips.fbi.gov website. The tip reported an online chat by several unknown subjects on a chat platform used by gamers known as Discord. The tip reported that the subjects appeared to be making plans for some type of attack and/or shooting at a school, mosque, or synagogue in the United States, Canada and New Zealand.
An investigation of the username ‘Martyrdom,’ one of the usernames on the chat platform, led investigators to the IP address, phone number and email for Randall Burrus of Assumption, Ill., according to the affidavit. Burrus allegedly has both felony and misdemeanor convictions in Shelby and Christian counties for domestic battery and violation of orders of protection, which would make Burrus ineligible to legally possess firearms and ammunition.
On April 15, the FBI executed a search warrant related to hate crimes and illegal possession of firearms at Burrus’s residence in the 300 block of Sarah St. According to the affidavit, agents recovered a .223 Ruger Mini 14 rifle, a Smith and Wesson .40 handgun and numerous boxes of ammunition.
Burrus was taken into law enforcement custody, and appeared today before U.S. Magistrate Judge Eric I. Long, who ordered that Burrus remain detained pending a hearing scheduled on Monday, April 20.
Assistant U.S. Attorney Crystal C. Correa is representing the government in the prosecution. The FBI, Illinois State Police, and the Christian County Sheriff’s Office are conducting the investigation.
If convicted of the charges, Burrus faces up to 10 years in prison.
Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case is brought as 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, and local authorities in investigating and prosecuting gun crimes; improves information-sharing by ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System, to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
CBL/BFL Member Sentenced for Racketeering Conspiracy and Selling Crack CocaineRead 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 Larquon Watkins, 27, of Buffalo, NY, who was convicted of racketeering conspiracy and distribution of crack cocaine, was sentenced to serve 57 months in prison by U.S. District Judge Lawrence J. Vilardo, Jr.
Assistant U.S. Attorneys Paul C. Parisi and Seth T. Molisani, who handled the case, stated that the defendant was a member of the CBL/BFL Gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009, and which operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang. Watkins is one of 12 CBL/BFL Gang members charged and convicted in this case. He is the 4th defendant to be sentenced.
On various occasions between 2010 and 2012, the defendant was stopped by Buffalo Police Officers and found to be in possession of marijuana, and between 2015 and 2016, the defendant sold crack cocaine at least 10 times and heroin at least 10 times in the Towne Gardens to an individual working investigators.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Chief James Michel; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Billings man charged with drug trafficking crime after officers seize eight pounds of methRead the Press Release
BILLINGS—A Billings man suspected of trafficking methamphetamine for distribution in the community appeared on charges today after law enforcement officers intercepted a package containing about eight pounds of the drug that was sent through the U.S. Postal Service, U.S. Attorney Kurt Alme said.
Trevion Maurice Jones, 44, had an initial appearance on a criminal complaint charging him with possession with intent to distribute meth. If convicted of the most serious crime, Jones faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided and ordered Jones detained pending further proceedings.
The charging document is merely an accusation, and Jones is presumed innocent until proven guilty.
Court documents filed in the case said drug enforcement officers learned that Jones was a meth supplier and had sources in California and Las Vegas. Jones received some meth through the mail. On April 14, a U.S. Postal inspector located a priority express parcel addressed to Jones’ residence and sent from a California address. The package weighed 24 pounds. A K-9 alerted to the package, which officers opened after getting a search warrant. Inside the parcel was a safe, which contained five vacuum sealed packages that weighed about eight pounds and tested positive for meth. Eight pounds of meth is the equivalent of about 28,992 doses.
Officers replaced some of the meth in the safe, obtained a search warrant for Jones’ residence and made a controlled delivery. The postal inspector knocked on the door, delivered the package to Jones, who answered, and left. Law enforcement officers then served the search warrant at the residence and arrested Jones without incident.
The Drug Enforcement Agency, Eastern Montana High Intensity Drug Trafficking Area Task Force and U.S. Postal Service investigated the case.
Pacer case reference. MJ-20-35.
If the above cases is of interest to your media organization and the community it serves, we encourage you to monitor its progress through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Beaverton Man Charged in Bank Fraud Scheme Targeting Local Credit Union MembersRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged with bank fraud in a scheme involving the impersonation of credit union employees in order to obtain members’ personal financial information.
Winston E. Gray, 30, has been charged by criminal complaint with bank fraud.
According to court documents, on March 30, 2020, a fraud investigator for Rivermark Credit Union in Portland contacted the Portland Police Bureau to report that numerous credit union members had received fraudulent text messages asking them to confirm or deny a recent transaction. When a victim member denied the transaction, they received a phone call from someone purporting to be a credit union employee asking for their debit card number and PIN in order to disable their card.
The personal financial information obtained was used to clone victims’ debit cards and make numerous purchases and ATM withdrawals throughout the Portland metro area. Using a list of fraudulent transactions provided by Rivermark, detectives from Portland Police Bureau and the Beaverton Police Department, with assistance from investigators with OnPoint Credit Union, Bank of America, Unitus Credit Union, and Fred Meyer, obtained video surveillance and photos of the unauthorized transactions from various ATMs and retail establishments.
Surveillance images of the suspect, later alleged to be Gray, were obtained from a Bank of America ATM on NW Cornell Road in Portland. On March 29, 2020, after making a balance inquiry on a victim member’s account, Gray made three consecutive withdrawals of $203 each from the ATM. Gray was later linked to a second fraudulent ATM withdrawal and two fraudulent money order purchases the same day.
As the investigation continued, detectives linked Gray to additional fraudulent transactions between March 30 and April 8, 2020 at locations throughout the Portland area. After reviewing body-worn camera footage from a previous traffic stop, detectives were able to positively identify Gray as the suspect responsible for the fraudulent bank transactions and obtain his home address.
On April 15, 2020, detectives obtained and served state search warrants on Gray’s Beaverton residence, person, and vehicle.
Detectives seized a Bluetooth card writer used to re-encode magnetic strips on credit cards; blank cards with magnetic strips; handwritten instructions on creating stolen identities and committing credit card fraud; multiple stolen credit cards, debit cards, and driver’s licenses; clothing matching those seen in the surveillance footage; more than $10,000 in cash; a 380 caliber handgun; a box of 380 caliber ammunition; and 26 grams of cocaine from Gray’s residence. Other related items were seized from his person and vehicle.
After conducting the searches, Gray was arrested without incident. Gray made his first appearance in federal court today and was ordered detained.
If convicted, Gray faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and a $1 million fine.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Portland Police Bureau, Beaverton Police Department, and Homeland Security Investigations (HSI) and is being prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
16 April 2020
Virginia Coronavirus Fraud Task Force Warns of Stimulus Check ScamsRead the Press Release
ALEXANDRIA, Va. – Today the Virginia Coronavirus Fraud Task Force issued a warning to the public of financial scams regarding Economic Impact Payments currently being distributed by the IRS.
“Fraudsters are chomping at the bit to steal your money,” said G. Zachary Terwilliger, co-leader of the task force and U.S. Attorney for the Eastern District of Virginia. “We have reports of criminals attempting to use various phishing techniques, including text messages, emails, and letters delivered through the mail, all attempting to steal your personal information or swindle you out of your economic impact payment. Please be vigilant. Simply put: Hang up on robocalls, do not provide your personal identifying information to anyone, and always confirm you are accessing legitimate links from IRS.gov.”
For most Americans, the Economic Impact Payments will be directly deposited into their bank account. However, for those individuals who do not utilize direct deposit, and other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment as a hard check.
“Americans will receive their economic-impact payments in one of two ways: through the mail or by direct deposit into their bank accounts,” said Thomas T. Cullen, co-leader of the task force and U.S. Attorney for the Western District of Virginia. “These payments do not need to be confirmed, authorized, or activated, and you should assume that any unsolicited calls or emails from individuals or entities who claim to be associated with the IRS are fraudulent.”
Recently, IRS launched two new tools: “Non-Filers: Enter Your Payment Info Here” allows quick registration for Economic Impact Payments for those who don’t normally file a tax return and, “Get My Payment” which enables taxpayers to check the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them. Both tools can be found here: https://www.irs.gov/coronavirus/economic-impact-payments
““Providing the community with knowledge about how economic impact payments are being distributed and warning of potential scams is key in helping prevent taxpayers from becoming victimized," said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). "Taxpayers needing assistance or information regarding the economic impact payments should visit IRS.gov. When taxpayers access the tool “Non-Filers: Enter Payment Info Here”, they will be taken from the IRS.gov site to Free File Fillable Forms, a certified IRS partner. This site is safe and secure as long as you access the site via IRS.gov. IRS-CI is working diligently with the United States Attorney’s Office and our federal and state law enforcement partners to help protect the citizens of Virginia and our tax system.”
IRS Criminal Investigation is actively working to combat scam artists trying to exploit economic impact payments and other provisions related to COVID-19. So far, the scams IRS-CI have seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS-CI is prioritizing these types of investigations to help protect taxpayers and the tax system.
There has been an increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “Corona Virus”, “COVID-19”, and “Stimulus” in varying ways.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal 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 about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Virginia Coronavirus Fraud Task Force Warns of Stimulus Check ScamsRead the Press Release
ROANOKE, Va. – Today the Virginia Coronavirus Fraud Task Force issued a warning to the public of financial scams regarding Economic Impact Payments currently being distributed by the IRS.
“Fraudsters are chomping at the bit to steal your money,” said G. Zachary Terwilliger, co-leader of the task force and U.S. Attorney for the Eastern District of Virginia. “We have reports of criminals attempting to use various phishing techniques, including text messages, emails, and letters delivered through the mail, all attempting to steal your personal information or swindle you out of your economic impact payment. Please be vigilant. Simply put: Hang up on robocalls, do not provide your personal identifying information to anyone, and always confirm you are accessing legitimate links from IRS.gov.”
For most Americans, the Economic Impact Payments will be directly deposited into their bank account. However, for those individuals who do not utilize direct deposit, and other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment as a hard check.
“Americans will receive their economic-impact payments in one of two ways: through the mail or by direct deposit into their bank accounts,” said Thomas T. Cullen, co-leader of the task force and U.S. Attorney for the Western District of Virginia. “These payments do not need to be confirmed, authorized, or activated, and you should assume that any unsolicited calls or emails from individuals or entities who claim to be associated with the IRS are fraudulent.”
Recently, IRS launched two new tools: “Non-Filers: Enter Your Payment Info Here” allows quick registration for Economic Impact Payments for those who don’t normally file a tax return and, “Get My Payment” which enables taxpayers to check the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them. Both tools can be found here: https://www.irs.gov/coronavirus/economic-impact-payments
“Providing the community with knowledge about how Economic Impact Payments are being distributed and warning of potential scams is key in helping prevent taxpayers from becoming victimized,” said Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI). “Taxpayers needing assistance or information regarding the economic impact payments should visit IRS.gov. When taxpayers access the tool “Non-Filers: Enter Payment Info Here”, they will be taken from the IRS.gov site to Free File Fillable Forms, a certified IRS partner. This site is safe and secure. IRS-CI is working diligently with the U.S. Attorney’s Office and our federal and state law enforcement partners to help protect the citizens of Virginia and our tax system.”
IRS Criminal Investigation is actively working to combat scam artists trying to exploit economic impact payments and other provisions related to COVID-19. So far, the scams IRS-CI have seen look to prey on vulnerable taxpayers who are unaware of how the payments will reach them. IRS-CI is prioritizing these types of investigations to help protect taxpayers and the tax system.
There has been an increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “Corona Virus”, “COVID-19”, and “Stimulus” in varying ways.
The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. Under the leadership of Attorney General William Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal 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 about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
Economic Impact Payment Fraud can also be reported directly to the IRS at: [email protected]
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
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Virgin Islands U.S. Attorney’s Office, IRS Criminal Investigation, Virgin Islands Bureau of Internal Revenue, and the Virgin Islands Department of Justice Warn Taxpayers to be Alert for Scams Related to Covid-19 Economic Impact PaymentsRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert, Special Agent in Charge Michael J. De Palma of the Internal Revenue Service – Criminal Investigation (IRS-CI), Director Joel A. Lee of the VI Bureau of Internal Revenue (the Bureau) and V.I. Attorney General Denise N. George, today warned taxpayers to be alert to possible scams relating to COVID-19, especially in connection with economic impact payments. The announcement is an effort to prevent taxpayers from being victimized by criminals using the recently approved COVID-19 payments as an opportunity to commit a crime.
U.S. Attorney Shappert stated, "Fraudsters who prey on vulnerable victims will be held accountable for their criminal conduct. Federal law enforcement and federal prosecutors urge the public to be aware of scams associated with the COVID-19 crisis and schemes designed to interfere with receipt of legitimate federal tax refunds and COVID-19 economic impact payments. We urge all Americans to be vigilant and to report any suspicious activity to federal law enforcement."
In the Virgin Islands, COVID-19 economic impact payments will be on their way during the month of May. For Virgin Islands taxpayers, this payment will be via check to the mailing address on the taxpayers’ 2018 individual income tax returns. Everyone receiving a COVID-19 related economic impact payment from the government is at risk.
Michael J. De Palma, Special Agent in Charge of the IRS-CI Miami Field Office warned, "Even as our Nation is enduring a State of Emergency, criminals will continue to engage in heinous acts to further enrich themselves demonstrating no sympathy by exploiting you during your most difficult circumstance."
Joel A. Lee, Director of the Bureau, reminded bona fide residents of the Virgin Islands that they should file and pay taxes to the Bureau. "The Economic Impact Payments, or the stimulus payments, will be coming directly to Virgin Islands taxpayers from the Department of Finance. Virgin Islands residents who fraudulently filed IRS returns or otherwise received an EIP from IRS must repay the IRS or be subject to possible criminal prosecution, since they are to receive their EIP directly from the US Virgin Islands," explained Director Lee.
"There is certainly a wave of COVID-19 fraud that focuses on all areas of consumer vulnerability. The Virgin Islands Department of Justice will vigorously prosecute violations of our anti-fraud laws. Nonetheless, it is more important than ever during these trying times that Virgin Islands residents remain vigilant by taking extra precautions to avoid becoming victimized," emphasized V.I. Attorney General Denise N. George.
These offices offer the following guidance to the public to warn about potential scams:
The Bureau, through the Department of Finance, will mail your check to the last known address on your 2018 tax return.
- Neither the Bureau nor IRS will call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it’s necessary to get your check. The caller may be perpetrating a scam.
- If you receive a call relating to your tax return, don’t engage with possible scammers or thieves, even if you want to tell them that you know it’s a scam. The best advice is to just hang up the phone. If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don’t click on any links in those emails or texts.
- Reports are also circulating about bogus checks. It will take the Bureau and the Department of Finance several weeks to mail the checks out. If you receive a "check" for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s likely a fraud,
"During these unprecedented and uncertain times, Virgin Islanders need to come together and address the current challenges with a purpose," Shappert said. "Our citizens should not allow criminals to victimize innocent people by exploiting emotions during this crisis. Everyone is advised to stay connected and to inform law enforcement, family, and friends of any suspicious activity that may involve a fraud or financial scam."
"IRS Criminal Investigation will continue to pursue criminals who violate the law and attack our community. IRS-CI will work diligently alongside the Department of Justice and our law enforcement counterparts to identify scams, stop the con-artists in their tracks and bring them to justice." said. De Palma.
For more information, visit the IRS website at www.irs.gov/coronavirus. To learn more about Department of Justice resources, involving the COVID-19 crisis, visit the DOJ Website:
http://www.justice.gov/coronavirus.
You can also contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at disaster@leo,gov.
United States Attorney’s Office District of Arizona March 2020 Immigration and Border ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
946 individuals were charged in March with illegal reentry
A. 359 of those 946 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 359 individuals with non-immigration criminal records:1. 74 had violent crime convictions, including:
2 individuals had homicide convictions
9 individuals had sex offense convictions
24 individuals had domestic violence convictions2. 52 had property crime convictions
3. 98 had DUI convictions
4. 132 had drug crime convictions
B. 264 of those 946 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
69 individuals were charged in March with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
405 individuals were charged in March with illegal entry on the CCI calendar
Criminal conviction information based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them.
RELEASE NUMBER: 2020-049_March Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.United States Attorney William M. McSwain Seeks Partnerships with Health Care Institutions to Stop Coronavirus-Related FraudRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain sent a letter to area health care institutions today to advise them that the U.S. Attorney’s Office for the Eastern District of Pennsylvania is working with its federal, state, and local law enforcement partners to investigate and prosecute those who seek to exploit the devastating effects of the coronavirus pandemic for their own financial benefit. In his letter addressed to hospital leaders across the District, U.S. Attorney McSwain asked for their assistance in identifying those suspected of perpetrating coronavirus-related crimes and urged them to report suspicious conduct to his Office.
In his letter, U.S. Attorney McSwain identified several types of coronavirus-related crimes. In addition to preventing and punishing hoarding and price gouging relating to critical health and medical supplies, he reiterated his commitment to prosecuting all types of coronavirus-related fraud scams, including fraudsters who advertise and sell fake or non-existent medical equipment or phony cures, steal personal identifying information, and engage in other cybercrimes related to the pandemic.
“If left unchecked, these bad actors can inhibit hospitals, physicians, and other health care professionals, as well as governmental agencies and the public, from mitigating the spread of the coronavirus and from successfully saving lives,” said U.S. Attorney McSwain. “We are all extremely grateful for the vital work these health care professionals are performing on a daily basis. I look forward to collaborating with area health care systems and hospitals to protect the community and enforce the laws of the United States during this time of national emergency.”
For health care institutions, illegal hoarding and price gouging of health and medical supplies is of critical concern. To that end, the letter identifies the health and medical supplies that the Secretary of Health and Human Services has designated as “scarce” pursuant to the Defense Production Act, and advises that hoarding or selling these supplies at exorbitant prices will trigger criminal penalties and civil enforcement remedies that the U.S. Attorney’s Office will aggressively pursue. There are fifteen (15) categories of critical health and medical supplies covered by the Act:
- N-95 filtering facepiece respirators
- Other filtering facepiece respirators (e.g., those designated as N99, N100, R95, R99, R100, P95, P99, or P100)
- Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges
- Powered air purifying respirators (PAPR)
- Portable ventilators
- Drug products with active ingredient chloroquine phosphate or hydroxychloroquine HCl
- Sterilization services for any device as defined in Section 201(h) of the Food, Drug, and Cosmetics Act, and sterilizers as defined in Title 21, Sections 880.6860, 880.6870 & 880.6880 of the Code of Federal Regulations
- Disinfecting devices intended to kill pathogens and other kinds of microorganisms by chemical means or physical means, and other sanitizing and disinfecting products suitable for use in a clinical setting
- Medical gowns or apparel (e.g., surgical gowns or isolation gowns)
- Personal protective equipment (PPE) coveralls (e.g., Tyvek Suits)
- PPE face masks
- PPE surgical masks
- PPE face shields
- PPE gloves or surgical gloves
- Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories
U.S. Attorney McSwain encouraged hospital employees to report any coronavirus-related suspicious activity or fraud schemes to his Office and to the national hotline at The National Center for Disaster fraud at 1-866-720-5721 or at [email protected].
Read U.S. Attorney McSwain’s letter to hospital leadership here.
U.S. Attorney Urges Health Care Sector to Report Fraud Related to the COVID-19 PandemicRead the Press Release
BOSTON – As part of the comprehensive federal response to the COVID-19 outbreak, United States Attorney Andrew E. Lelling is urging leadership at Massachusetts hospitals to report individuals and companies that may be engaged in wrongdoing related to the COVID-19 pandemic.
In a letter to leadership at Massachusetts hospitals, U.S. Attorney Lelling encouraged health care facilities to report to federal authorities individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices. This includes 15 categories of health and medical supplies designated by the Secretary of Health and Human Services (HHS) as “scarce,” thus triggering civil and criminal enforcement remedies that the U.S. Attorney’s Office will pursue. In addition, the U.S. Attorney’s Office will investigate any other fraudulent conduct designed to benefit from the pandemic (e.g., false treatments, tests, and/or vaccinations for COVID-19).
“In light of the COVID-19 pandemic, my office is prioritizing the investigation and prosecution of wrongdoing related to the COVID-19 pandemic, including those engaged in hoarding and/or price-gouging with regard to critical medical supplies,” said United States Attorney Lelling. “These practices are not only morally repugnant in light of the pandemic but also, if left unchecked, will inhibit hospitals, physicians, other health care professionals, and government agencies from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
U.S. Attorney Lelling named Amanda Strachan, Chief of the Health Care Fraud Unit, as the COVID-19 Fraud Coordinator for the District of Massachusetts.
Massachusetts residents who believe they are victims of fraud or other criminal activity related to the pandemic should contact the United States Attorney’s Office at [email protected] or call 1-888-221-6023 and leave a message. Members of the public can also contact the FBI’s Internet Crime Complaint Center (IC3) by visiting www.IC3.gov. If you or someone you know are in immediate danger, please call 911.
U.S. Attorney DeVillers statement on arrest of former D.A.R.E. police officerRead the Press Release
“Kevin A. Kovacs, a former longtime Beavercreek police officer, was arrested this morning on federal charges of producing, distributing, receiving, transporting and possessing child pornography,” said U.S. Attorney David M. DeVillers. “Additionally, Kovacs is charged with tampering with a witness or informant.
Kovacs appeared in federal court at 1:30pm today and is scheduled to appear again at 1:30pm tomorrow for a detention hearing. This investigation remains ongoing. If you have any information related to this case, please contact the FBI at 513-421-4310 or the Fairborn Police Department at 937-343-8854.”
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Torrington Financial Advisor Sentenced to Prison for Misappropriating Funds from Elderly ClientsRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, announced that LESTER BURROUGHS, 61, of Torrington, was sentenced today by U.S. District Judge Victor A. Bolden to 33 months of imprisonment, followed by three years of supervised release, for misappropriating approximately $575,000 from investment clients, most of whom were elderly.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, Burroughs owned Burroughs Investment Group, a full-service financial consulting firm based in Torrington, and was a registered securities broker with the Financial Industry Regulatory Authority. Beginning in at least 2012 and continuing through 2019, Burroughs misrepresented to certain clients that their money would be invested in legitimate guaranteed investment contracts. Instead, he used his clients’ money to pay business expenses and other clients’ “guaranteed” investment returns.
Burroughs began the scheme after an investment he recommended to a client failed to materialize an expected return and Burroughs feared the possible financial repercussions to his business should that client file a complaint with regulatory agencies. Burroughs then stole approximately $370,000 from an elderly client in order to pay the nonexistent returns of the failed investment to the first client. In 2018, after the elderly client’s daughter demanded a full accounting of her mother’s investments, Burroughs tried to cover up his conduct by providing his client’s daughter with fraudulent accounting statements and documents. When his client’s daughter demanded money, Burroughs provided the client with funds he had stolen from three other unsuspecting clients, all of whom were told by Burroughs that he was investing their money in guaranteed investment contracts.
Through this scheme, Burroughs defrauded clients of a total of approximately $575,000. Burroughs is required to pay full restitution.
On December 4, 2019, Burroughs pleaded guilty to one count of wire fraud.
Burroughs, who is released on a $100,000 bond, is scheduled to report to prison on June 1, 2020.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Securities and Exchange Commission filed related civil charges against Burroughs. (Securities and Exchange Commission v. Lester Burroughs, 3:19-cv-1913).
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Three Indicted on Passport Fraud, Naturalization Fraud, Making False Statements in an Immigration Proceeding, and Violating the Sex Offender Registration and Notification ActRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Greenville has returned indictments charging MARIO SOTELO, age 48, a naturalized citizen of the U.S., born in Mexico, with passport fraud and possession of a fraudulent immigration document, and ZAW LIN LAY, age 42, a naturalized citizen of the U.S., born in Burma, with naturalization fraud, passport fraud, and making false statements in an immigration proceeding.
Additionally, the grand jury returned a superseding indictment charging HECTOR DANERI REGALADO, age 44, a naturalized citizen of the U.S., born in Honduras, with naturalization fraud, passport fraud, possession of a fraudulent immigration document, and violating the Sex Offender Registration and Notification Act.
If convicted of passport fraud, SOTELO, of Wake County, could face maximum penalties of 40 years’ imprisonment, a $1,000,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of naturalization fraud, and making false statements in an immigration proceeding, LAY, of Craven County, could face maximum penalties of 85 years’ imprisonment, a $2,500,000 fine, a term of supervised release following any term of imprisonment, and the revocation of his citizenship.
If convicted of naturalization fraud, passport fraud, possession of a fraudulent immigration document, and violating the Sex Offender Registration and Notification Act, REGALADO, of Sampson County, could face a maximum imprisonment term of 85 years, a $2,500,000 fine, a term of supervised release following any term of imprisonment, and the revocation of his citizenship.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations pursuant to Operation False Haven, an ongoing initiative to identify and prosecute felons who fraudulently obtained U.S. citizenship, are investigating the cases.
Three Canadian Men Sentenced for Sweepstakes FraudRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that three Canadian men were sentenced on April 15, 2020, for their roles in a bogus sweepstakes scam that defrauded 45 victims across the United States out of $302,045.
Konstantine Filippas, age 74, Michael Dissos, age 68, and Michael Pare, age 55, all from the greater Montreal, Canada area, were sentenced yesterday by Chief U.S. District Court Judge Christopher C. Conner after pleading guilty last year to conspiracy to commit mail and wire fraud charges. Dissos and Pare received a sentence of time served of approximately nine months each, and Filippas was sentenced to 18 months’ imprisonment.
According to United States Attorney David J. Freed, all three defendants were indicted in 2014, along with four other alleged co-conspirators. The seven defendants allegedly defrauded approximately 65 victims, most of whom were elderly, for losses exceeding $1.2 million. Filippas, Dissos and Pare were eventually extradited from Canada to the Middle District of Pennsylvania last summer. The defendants admitted during their guilty plea proceedings to allowing their Canadian bank accounts to be used to receive monies sent by victims who were lead to believe they had won substantial winnings in a fictitious sweepstakes contest. The defendants also admitted to cashing out Western Union and MoneyGram money transfers sent by some victims.
Chief Judge Conner also ordered Dissos to pay $34,080, Pare to pay $90,745, and Filippas to pay $177,220 in restitution to the 45 victims. Chief Judge Conner further ordered Dissos and Pare to self-deport back to Canada within seven days of their release from custody.
The case was investigated by the Harrisburg Office of the U.S. Postal Inspection Service. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
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Paducah Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
PACUCAH, Ky. – United States Attorney Russell Coleman today announced the charging of Salaam Muhammad AKA Wayne D. Askew, 46, for being a felon in possession of an AK-47 type assault rifle and ammunition via federal Criminal Complaint.
“This is exactly the type coordination between federal, state, and local law enforcement that best serves the people of the Purchase Region,” said U.S. Attorney Russell Coleman. “While much remains unknown during this pandemic, Kentuckians should rest assured that the professionals of the ATF, Paducah Police Department, and United States Attorney’s Office remain on the job to protect their families.”
According to the Criminal Complaint, Paducah Police Department officers responding to a call identified Muhammad in a vehicle with a Norinco, model BWK-92 Sporter, 5.56 X 45, semiautomatic rifle, with a loaded magazine and round in the chamber.
The defendant was previously convicted for possession with intent to distribute 50 grams or more of “crack” cocaine in case number 5:03-CR-17-R. Muhammad was convicted of the felony in United States District Court. The defendant was also convicted on December 18, 2000, in McCracken County Circuit Court in case number 00-CR-126, of 1st degree possession of a controlled substance, cocaine, a felony offense. He was also charged with assault resulting in a felony conviction in 1992.
If convicted at trial, the maximum sentence for unlawfully possessing a firearm is no more than ten years in prison, a $250,000 fine, and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney Seth Hancock who also serves as the Branch Chief of U.S. Attorney’s Office-Paducah. The case is being investigated by the Paducah Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in support of the Paducah Police Department.
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A Criminal Complaint is an accusation only and
the person is presumed innocent until and unless proven guilty.
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The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Kentucky. A centerpiece of this effort is Project Guardian and Project Safe Neighborhoods, programs that bring together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.
Operator of durable medical equipment company charged in multi-million-dollar telemedicine kickback schemeRead the Press Release
SAVANNAH, GA: A California man who operated a durable medical equipment (DME) company has been charged for his alleged participation in a massive healthcare fraud scheme. The defendant is the 22nd charged in the Southern District of Georgia as part of an investigation that uncovered more than $410 million in fraudulent claims to Medicare, the largest fraud case in the history of the Southern District of Georgia.
Scott M. Hirsch, the operator of JI Medical, Inc., a California company, is accused of conspiring to pay kickbacks in exchange for obtaining orders for DME that JI Medical, Inc. would then bill to Medicare. Those Medicare beneficiaries were located in the Southern District of Georgia and elsewhere. As part of this scheme, the physicians receiving the kickbacks from JI Medical, Inc. knowingly signed false medical records describing “consultations” of Medicare patients. The operator of JI Medical, Inc. was charged by way of an Information, filed in the U.S. District Court for the Southern District of Georgia.
“Telemedicine is an important tool for legitimate providers – but paying kickbacks is not part of telemedicine and will not be tolerated under any circumstances,” said U.S. Attorney Bobby L. Christine. “While many of our prosecutors and law enforcement partners may be working remotely during the COVID-19 pandemic, this office continues to work day and night to bring bad actors to justice.”
The healthcare fraud scheme charged is the largest in the history of the Southern District of Georgia. Previous charges in this string of cases include eight physicians, two nurse practitioners, two operators of telemedicine companies, and two brokers of patient data. The Medicare and Medicaid beneficiaries whose identities were used as part of the scheme are located throughout the Southern District of Georgia, including the Augusta, Brunswick, Dublin, Savannah, Statesboro, and Waycross Divisions, as well as elsewhere in the United States.
The $410 million fraud scheme charged in the Southern District of Georgia is part of nationwide operations by the Department of Justice that thus far has halted a multi-billion dollar fraud network involving fraudulent claims for genetic testing, orthotic braces, pain creams, and other items.
“The growing number of medical providers and equipment providers alleged to have been involved in this ongoing scheme is disheartening,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our federal partners will continue to root out such deceitful practices and protect taxpayers and the citizens who deserve the benefits from programs like Medicare, even as telemedicine becomes more common.”
“This investigation is a stellar example of inter-agency cooperation and working together to bring those who defraud the health care system to justice,” said FBI Birmingham Special Agent in Charge Johnnie Sharp Jr. “The public can be assured that the FBI and our partners will continue to seek to identify and pursue investigations against such egregious offenders.”
“In these trying times, it’s more important than ever that we safeguard the Medicare trust fund,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “HHS/OIG, along with our partners, will vigorously pursue any provider who puts their own financial gain above that of their patients.”
“Cases of this magnitude can only be tackled using a strategy that recognizes that the most effective way to fight these large criminal networks is by combining the strengths, resources, and expertise of our federal agencies,” said Resident Agent in Charge Glen M. Kessler of the U.S. Secret Service. “Our nation’s healthcare system cannot tolerate kickbacks to physicians and pharmacies while criminals line their pockets with taxpayer funded healthcare dollars.”
“The U.S. Postal Inspection Service aggressively conducts investigations of those who fraudulently use the U.S. Mail to facilitate complex fraud schemes,” said Inspector in Charge Joseph W. Cronin of the U.S. Postal Inspection Service’s Boston Division. “We will continue to support and work with our federal law enforcement partners to stop those who are engaged in these types of fraudulent activities and defend the U.S. Mail from criminal misuse.”
“The defendant in this case used the U.S. Mail to facilitate his elaborate criminal scheme. Postal Inspectors partnered with other agencies to quickly identify the scheme and worked aggressively with the U.S. Attorney's Office to dismantle this criminal enterprise. Through cases like these, the Postal Inspection Service upholds its longstanding mission of protecting the public and preventing criminal misuse of the U.S. Mail,” said Antonio J. Gomez, Inspector in Charge of the U.S. Postal Inspection Service - Miami Division.
Indictments or criminal informations contain only charges; defendants are presumed innocent unless and until proven guilty.
This investigation is ongoing. As telemedicine becomes an increasing part of our healthcare system, vigilance in ensuring that fraud and kickbacks do not usurp the legitimate practice of medicine by electronic means is more important than ever. If you are aware of any fraud or kickbacks relating to telemedicine, including COVID-19 fraud, please call the FBI hotline at 1-800-CALL-FBI.
This particular prosecution resulted from a joint investigation of multiple agencies and offices. U.S. Attorney Christine acclaimed the hard work of the investigatory team, led by FBI - Savannah, FBI - Birmingham, the Department of Health and Human Services Office of Inspector General, the United States Secret Service, and the United States Postal Inspection Service.
Assistant U.S. Attorneys J. Thomas Clarkson and Jonathan A. Porter are prosecuting these cases on behalf of the United States.
Niagara Falls Man Indicted by A Federal Grand Jury for Producing Child PornographyRead 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 a federal grand jury has returned a 16 count indictment charging Jonathon R. Cassatt, 34, of Niagara Falls, NY, with 15 counts of production of child pornography and one count of possession of child pornography. The charges carry a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Special Assistant U.S. Attorney Jeffrey T. Fiut, who is handling the case, stated that according to the indictment and a previously filed criminal complaint, in November 2019, the Niagara Falls Police Department received information that the defendant’s cell phone contained images and videos of child pornography. Subsequent investigation determined that Cassatt used his cell phone to produce child pornography involving a minor victim on 15 different occasions between 2017 and 2019.
Cassatt was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert, and the Niagara Falls Police Department, under the direction of Chief Thomas Licata.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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New Haven Man Sentenced for Possessing Stolen Firearm in StamfordRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, announced that NYEJIRE REDMOND, also known as “Polo,” 20, of New Haven, was sentenced today by U.S. District Judge Michael P. Shea to approximately 15 months of imprisonment, time already served, and three years of supervised release, for possessing a stolen firearm.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in January 2019, Redmond’s associate, Joel Cruz-Berrios, arranged to trade firearms with an individual in Stamford. On January 22, 2019, Stamford Police officers arrested Redmond, Cruz-Berrios and Victor Berrios-Sanchez after they traveled from New Haven to a parking garage in Stamford. Redmond was sitting in the backseat of the vehicle next to a sleeping, unrestrained child who was approximately two years old. Berrios-Sanchez possessed a loaded .22 caliber revolver, a .25 caliber semi-automatic handgun and three .25 caliber rounds of ammunition, and Redmond possessed a loaded .45 caliber automatic handgun that had been reported stolen in New Britain in December 2018.
Redmond has been detained since his arrest. On December 5, 2019, he pleaded guilty to one count of possession of a stolen firearm.
Cruz-Berrios, of New Haven, previously pleaded guilty in federal court to possession of a firearm by a convicted felon and is detained while awaiting sentencing. Berrios-Sanchez, of New Haven, pleaded guilty in state court to firearm offenses and was sentenced to 31 months of incarceration.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Mission Woman Indicted on Drug Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Jessi Barrera, age 33, was indicted on March 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on April 14, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 5 years, up to 40 years in prison and/or a $5,000,000 fine, at least 4 years of supervised release, and $100 to the Federal Crime Victims Fund for each Count. Restitution may also be ordered.
The Indictment alleges that Barrera knowingly and intentionally possessed with the intent to distribute methamphetamine, a Schedule II controlled substance, and aided and abetted others in the distribution of meth on the Rosebud Indian Reservation.
The charge is merely an accusation and Barrera is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Barrera was released on bond pending trial. A trial date has not been set.
Lancaster County Farm Agrees to Consent Decree to Remedy Continued Violations of Food Safety Laws and to Ensure Compliance with Terms of Court-Ordered Permanent InjunctionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced today that United States District Judge Edward G. Smith has approved a Consent Decree between the United States and Miller’s Organic Farm of Bird-in-Hand, PA. Five months ago, on November 19, 2019, the court permanently enjoined Miller’s and its owner, Amos Miller, from obstructing federal health and safety oversight and from slaughtering, processing, and selling non-federally-inspected, misbranded meat and poultry products to Miller’s nationwide “private membership association” customers. In the Consent Decree, Miller’s acknowledges its recent violations of these prohibitions and agrees to enforceable remedial provisions.
The first of those violations came to light in December 2019, shortly after the injunction began, when investigators from the Food Safety and Inspection Service (FSIS) of the U.S. Department of Agriculture went to Miller’s to assess compliance with the injunction. They found approximately 2,000 pounds of fresh meat carcasses and products that Miller’s had recently slaughtered without federal inspection, in violation of the injunction. After FSIS “detained” these articles (by tagging them so that they could not be used, altered, moved, or sold in commerce while under detention), Miller’s voluntarily destroyed them.
FSIS investigators found more violations of the court’s permanent injunction in January 2020. Under the injunction, Miller’s had 60 days to sell, exclusively to its buyers’ club members, approximately 34,062 pounds of frozen meat-and-poultry-product inventory that was already in existence when the court entered the November 19, 2019 injunction. On January 22, 2020, just after that deadline had passed, the investigators found the inventory still at Miller’s, with Mr. Miller contending that he had sold all of it to only one of his buyers’ club members who runs both a Miller’s website and a Florida food Co-Op. FSIS maintained that Miller’s violated the injunction by failing timely to sell and ship the inventory directly to individual members in consumer quantities (rather than to a single member in bulk).
On that date, the investigators also observed and detained approximately 2,100 pounds of non-federally-inspected, freshly slaughtered beef carcasses. Two days later, when FSIS investigators returned to Miller’s to detain the 34,062 pounds of frozen inventory, Mr. Miller violated the injunction by initially denying them access to his facilities.
On February 10, 2020, the United States filed a separate action to seize and condemn the detained frozen inventory and fresh meat carcasses. The U.S. Marshals Service then legally seized those meat and poultry articles but left them in place (frozen and stored) at Miller’s pending a condemnation hearing.
Under the Consent Decree, Miller’s acknowledges that it has violated the injunction and agrees: (1) to pay the financial sanction ($2,500) that the court’s injunction order allows for denying FSIS access to Miller’s; (2) either to adhere to procedures for distributing the frozen inventory directly to Miller’s members in consumer quantities or to destroy the inventory; (3) to denature or destroy the fresh carcass meat, if Miller’s cannot sell it to a pet food manufacturer; and (4) to cease internet advertising of “fresh” or “unfrozen” meat and poultry products unless and until such offers for sale comply with federal and state laws. Meanwhile, the Decree contemplates a stay of the condemnation action while Miller’s has an opportunity to distribute and dispose of the articles under FSIS oversight.
FSIS is responsible for ensuring that commercially sold meat, poultry, and egg products are safe, wholesome, and correctly labeled and packaged. The Consent Decree and the condemnation action are part of the United States’ continuing efforts to bring Miller’s into compliance with the Federal Meat Inspection Act and the Poultry Products Inspection Act.
“This Office takes very seriously these violations of the court’s injunction order and is prepared to seek maximum penalties should violations continue. We are entering into today’s Consent Decree to give Miller’s an opportunity to remedy its non-compliance, to show that it is finally willing to follow food safety law requirements, to stop hindering FSIS from carrying out its food safety mission, and to operate within the rule of law that applies to all other similar businesses,” said U.S. Attorney McSwain. “Particularly during the coronavirus pandemic, when Americans have heightened concern about food safety and availability, my Office will remain vigilant in its efforts to ensure that our nation’s food safety laws are followed so that the public’s health is not further put at risk by allowing potentially unsafe food to enter our food supply.”
“FSIS inspection of meat, poultry, and processed egg products provides U.S. consumers with confidence in the safety of the products they serve their families,” said FSIS Administrator Paul Kiecker. “FSIS will continue to exercise its authority to implement and enforce food safety regulations to protect the American public and maintain the integrity of the USDA mark of inspection.”
The injunction action is captioned United States of America v. Miller’s Organic Farm and Amos Miller, EDPA No. 19-cv-1435. The condemnation action is captioned United States of America v. 2,100 Pounds of Meat Carcasses, Parts of Carcasses, and Meat Food Products, and 34,062 Pounds of Meat Food Products and Poultry Products, EDPA No. 20-757.
The United States Attorney’s Office received valuable assistance on these cases from FSIS’s Compliance and Investigations Division, Philadelphia Regional Office; USDA’s Office of the General Counsel; and FSIS’s Enforcement and Litigation Division, Office of Investigation, Enforcement and Audit. The injunction action and condemnation action were handled by Assistant United States Attorney Gerald Sullivan.
Justice Department Issues Business Review Letter to the Association of Independent Commercial ProducersRead the Press Release
The Department of Justice announced today that it will not challenge a proposal by the Association of Independent Commercial Producers (AICP) to operate an online platform for advertisers to solicit bids from companies that provide production services for commercial advertisements. The department’s position was stated in a business review letter from Assistant Attorney General Makan Delrahim of the Antitrust Division to counsel for the AICP.
According to representations made by the AICP, the AICP platform would allow an advertiser to upload details about its need for a commercial advertising production, including bid specifications and, at the advertiser’s option, budget parameters. The advertiser independently would identify the production company bidders to be invited to participate in the bidding process. Any submitted bids would remain private to both the bidder and the advertiser. After the advertiser has awarded the bids, no bidding data would be retained or collected.
Although exchanging price and other competitive information can facilitate anticompetitive coordination among competitors, the AICP has designed the proposed platform to prevent such information sharing. To this end, the proposed platform will contain numerous safeguards to ensure that neither the nonpublic information an advertiser provides to the platform nor the nonpublic information that bidders submit in response to an advertiser’s job specifications will be shared with other advertisers, bidders, or with third parties. Additionally, the AICP platform will include firewalls to ensure that neither the AICP nor its members can access that third-party information.
Based on the information submitted and representations made by the AICP, the department has no present intention to challenge the operation of the AICP’s proposed online bidding platform.
This statement is made in accordance with the department’s business review procedure, 28 C.F.R. § 50.6, and subject to the limitations and reservations of rights therein. Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530.
After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].