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16 April 2020
Jackson Man Pleads Guilty under Project EJECT to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – Marlandow Johnson, 45, of Jackson, pled guilty today before U.S. District Court Judge Henry T. Wingate to possessing a firearm after having been previously convicted of a felony crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
On July 2, 2018, Jackson Police officers responded to a disturbance at Studio 7 hotel. Upon arrival, officers observed objects being thrown from a vehicle leaving the parking lot of the hotel. Officers stopped the vehicle and, while speaking with the driver, they observed a handgun on the front passenger seat. The driver was identified as Marlandow Johnson and officers discovered that he had been previously convicted of accessory after the fact to murder.
On October 24, 2018, Johnson was charged in a federal criminal indictment with possessing a firearm after having been previously convicted of a felony crime.
Johnson will be sentenced on June 30, 2020, by Judge Wingate, and faces a statutory penalty of up to 10 years in prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Bert Carraway.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
Former employee of medical packaging company charged with sabotaging electronic shipping records leading to the delay of PPE to healthcare providersRead the Press Release
ATLANTA - Christopher Dobbins, a former employee of a medical device packaging company, has been charged by criminal complaint for conducting a computer intrusion into his former employer’s package shipping system and deleting shipping information.
“This defendant allegedly disrupted the delivery of personal protective equipment in the middle of a global pandemic,” said U.S. Attorney Byung J. “BJay” Pak. “Scarce medical supplies should go to the healthcare workers and hospitals that need them during the pandemic. The Department of Justice is dedicated to moving quickly on cases like this to bring criminal opportunists to justice and protect the public during these challenging times.”
“The FBI is making it a priority during the worldwide pandemic to make sure crucial supplies are not being disrupted or diverted from the front lines of medical care,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are grateful to the medical packaging company for promptly reporting this disruption to their delivery of important medical supplies, so that we could react quickly.”
According to U.S. Attorney Pak, the criminal complaint, and other information presented in court: On March 29, 2020, Christopher Dobbins allegedly conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of personal protective equipment (“PPE”).
While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. In early March 2020, Dobbins was terminated from his employment at the company, losing his access to the company’s computer systems. On March 26, Dobbins received his final paycheck from the company. Three days later, Dobbins used a fake user account that he had previously created while employed at the company to log into the company’s computer systems.
Once logged in through the fake user account, Dobbins allegedly created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, the complaint alleges, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Christopher Dobbins, 40, of Duluth, Georgia, will have his initial appearance before U.S. Magistrate Judge Russell G. Vineyard. He was charged by criminal complaint on April 15, 2020.
Members of the public are reminded that the criminal complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office serve on the task force. 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 further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney's Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Grand Jury Returns Superseding Indictment Charging Eights Defendants in Drug Trafficking Ring Stretching Across the United StatesRead 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 22-count Superseding Indictment charging David Burgin, David Washington a/k/a Dirty Dave a/k/a Dirt a/k/a Wavy Davey a/k/a Brick Boy Dave, Eleazar Martinez Medina, Rodney Pierce, Torrance Bailey a/k/a Bird, Sherron Kye, Devante Nance a/k/a V-Dutch, and Devon Clark a/k/a Booski, with conspiring to possess with intent to distribute, and distributing, controlled substances, including five kilograms or more of cocaine, one kilogram or more of heroin, 400 grams of fentanyl, 280 grams or more of cocaine base, 100 grams or more of fentanyl analogues, and marijuana. Several defendants are also charged with possession with intent to distribute these same controlled substances and maintaining premises for the purposes of drug trafficking. The charges carry a mandatory minimum penalty of 10 years in prison, and a maximum of life in prison. Defendants Burgin and Pierce also face an additional consecutive five-year sentence for possessing firearms in furtherance of drug trafficking.
Assistant U.S. Attorneys Timothy C. Lynch and Laura A. Higgins, who are handling the case, stated that according to the Superseding Indictment, the defendants were involved in a drug trafficking ring that stretched from California to Buffalo and involved cocaine, crack cocaine, fentanyl analogues, and fentanyl being transported to the Buffalo, NY area for distribution and sale.
During the course of the investigation, search warrants were executed at 12 residences, and investigators seized $1,405,327 in United States currency in Buffalo and California. In addition, investigators seized:
• six firearms; • 3.63 kilograms of fentanyl; • 2.97 kilograms of cocaine; • 309 grams of fentanyl analogues; • 893 grams of heroin; and
• 268 grams of crack cocaine; • six concealed traps—many of which were hydraulically operated; • scales and drug packaging materials.The superseding indictment also seeks the forfeiture of multiple firearms, ammunition, and the financial proceeds of the drug trafficking conspiracy.
The indictment and criminal complaint are the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Erie County Sheriff’s Office, under the direction of Sheriff Tim Howard; the Internal Revenue Service, Criminal Investigation Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge; and Customs and Border Protection Air and Marine Unit, under the direction of Director Brian Manaher.
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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Failing to Go to Halfway House after Being Released from Prison Results in Additional Prison TimeRead the Press Release
A woman who escaped from federal custody was sentenced on April 15, 2020, to more than four months in federal prison.
Aleania Clendineng, age 35, from Cedar Rapids, Iowa, received the prison term after a February 13, 2020 guilty plea to one count of escape from custody.
At the guilty plea, Clendening admitted she escaped from federal custody by intentionally failing to arrive at a residential reentry center in Cedar Rapids, Iowa. On July 25, 2015, Clendening was sentenced to 60 months’ imprisonment for conspiracy to manufacture methamphetamine. On September 3, 2019, she was ordered to travel from a federal prison in Aliceville, Alabama, to the residential reentry center in Cedar Rapids, but never showed up at the center. A month later, Clendineng was arrested in Davenport, Iowa.
Clendineng was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clendening was sentenced to four months and fourteen days’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Clendening is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Dillan Edwards and investigated by the United States Marshals Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-111.
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Eastern District of Louisiana U.S. Attorney Peter G. Strasser Seeks Support of Southeastern Louisiana Hospital Administrators in Fight Against COVID-19 FraudRead the Press Release
NEW ORLEANS—Eastern District of Louisiana U.S. Attorney Peter G. Strasser, sent a letter to hospital executives throughout Southeast Louisiana on April 15, 2020, asking for their assistance in identifying individuals and companies that may have acquired vital medical supplies for the purpose of hoarding or price gouging.
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. The Department is also committed to preventing hoarding and price gouging for critical supplies during this crisis. To address this, Attorney General Barr created the COVID-19 Hoarding and Price Gouging Task Force. 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]. Members of the public in the Eastern District of Louisiana are also encouraged to call (504) 680-3000 or email [email protected] to reach their local Coronavirus Fraud Coordinator, Assistant U.S. Attorney Edward Rivera.
“Along with our federal, state and local law enforcement partners, we continue to stand ready to enforce the laws of the United States and to address the public safety needs of our community”, said U.S. Attorney Peter G. Strasser. “Unfortunately, during times of crisis, criminals continue their efforts to victimize the public. However, we are ready for them. During this pandemic, our office remains focused on the prevention, investigation, and prosecution of misconduct related to COVID-19 fraud, including hoarding and price-gouging of critical medical equipment.”
U.S. Attorney Strasser encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Eagle Butte Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on April 15, 2020, by U.S. Magistrate Judge Mark A. Moreno.
Silas Condon, age 24, was sentenced to 2 years probation with 4 months home detention, restitution of $349, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Condon was indicted by a federal grand jury on January 15, 2020. He pled guilty on April 15, 2020.
The conviction stemmed from an incident on December 6, 2019, when law enforcement was dispatched to remove Condon from a residence due to his intoxication. As law enforcement escorted Condon out of the residence, Condon was verbally abusive and spit on, kicked, and struck the officers multiple times.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Condon released following his sentencing hearing.
Dominican National Sentenced for Identity Theft and Stealing MassHealth BenefitsRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday for Social Security fraud, aggravated identity theft and benefit fraud.
Jose Miguel Baez, 43, was sentenced via videoconference by U.S. District Court Judge William G. Young to two years and one day in prison and two years of supervised release. The defendant also was ordered to pay restitution of approximately $17,198 to MassHealth, the Massachusetts Department of Unemployment Assistance and various other utility and medical providers. Baez will be subject to deportation proceedings upon completion of his sentence. In December 2019, Baez pleaded guilty to one count each of false representation of a Social Security Number, aggravated identity theft and false statements in matters relating to health care.
On Aug. 7, 2017, Baez applied for and obtained a Massachusetts driver’s license in the identity of a Puerto Rican born United States citizen. Eight days later, Baez applied for MassHealth using the victim’s identity and obtained $3,727 in MassHealth benefits. Baez also used the victim’s identity in other instances, including to collect unemployment benefits and for utility and medical bills, which Baez defaulted on. Baez use of the identity resulted in a total loss of at least $17,194 to utility companies, medical providers, MassHealth and the state unemployment agency.
When Baez was arrested in April 2019, agents recovered the Massachusetts driver’s license issued to him in the fraudulent identity and a copy of his Dominican identification document in his true name bearing his photo. Baez was identified, among other things, from a fingerprint match with a Dominican Republic identification document issued to him.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigation, New York Regional Office; and Phillip Coyne, Special Agent in Charge of Department of Health and Human Services, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Lelling’s Criminal Division prosecuted the case.
Carmel Valley Physician Charged with Fraud for Selling Purported COVID-19 “Miracle Cure”Read the Press Release
NEWS RELEASE SUMMARY – April 16, 2020
SAN DIEGO – Dr. Jennings Ryan Staley, a licensed physician and the operator of Skinny Beach Med Spa in San Diego, was charged today with mail fraud in connection with the sale of what he described as a “100%” cure for COVID-19 that he said would render customers immune to the virus for at least six weeks. Staley is scheduled to be arraigned in federal court tomorrow at 2 p.m. before U.S. Magistrate Judge Jill L. Burkhardt.
FBI Agents began investigating this COVID-19 related fraud immediately upon receiving a tip from the public and shortly thereafter introduced an undercover agent. Today, FBI Agents also executed a search warrant at the business of Skinny Beach Med Spa located in Carmel Valley. As alleged in the criminal complaint, Skinny Beach Med Spa, based in Carmel Valley, offered a range of beauty-related services such as botox, hair removal, and fat transfer. In late March, Skinny Beach began sending emails advertising “COVID-19 treatment packs,” described as a “concierge medicine experience” priced at $3,995 for a family of four, that included among other things access to Dr. Staley, the medications hydroxychloroquine and azithromycin, and “anti-anxiety treatments to help you avoid panic if needed and help you sleep.” In a recorded call in which Dr. Staley was selling his services to a would-be customer – in fact, the undercover FBI agent – Dr. Staley described the medication he was offering as “an amazing cure” and a “miracle cure” that would cure COVID-19 “100%.” He added that if you take the medication without having the disease, “you’re immune for at least 6 weeks.” Staley referred to medication he offered as a “magic bullet,” and said, “It’s preventative and curative. It’s hard to believe, it’s almost too good to be true. But it’s a remarkable clinical phenomenon.” Staley also stated, “I’ve never seen anything like this in medicine, just so you know. Really, I can’t think of anything. That, you’ve got a disease that literally disappears in hours.”
Dr. Staley was interviewed a week later by the FBI as part of the overt investigation. When Dr. Staley was asked by agents whether Skinny Beach has told patients that the treatments are a 100% effective cure for COVID-19, Dr. Staley said, “No, that would be foolish. We would never say anything like that.” He also told the FBI that it was “not definitive” that the medication he offered cures COVID-19.
As set out in the complaint, Dr. Staley also offered the would-be customer Xanax (alprazolam) – a Schedule IV controlled substance – as part of his concierge package, and shipped the drug without conducting any sort of medical examination. He claimed that his broker was smuggling hydroxychloroquine from China to make his own pills, and had concealed the shipment from customs authorities by describing it as sweet potato extract. Shipping records confirmed that Dr. Staley was indeed importing a shipment of “yam extract,” scheduled to arrive in the U.S. in a matter of days.
“We will not tolerate COVID-19 fraudsters who try to profit and take advantage of the pandemic fear to cheat, steal and harm others,” said U.S. Attorney Brewer. “Rest assured: those who engage in this despicable conduct will find themselves in the crosshairs of federal prosecutors.”
“The sale of false cures, especially by a medical professional, will be vigorously investigated by the FBI,” said Omer Meisel, the Acting Special Agent in Charge of the FBI’s San Diego Field Office. “The FBI is using a variety of tools to identify anyone who exploits the current crisis with fraudulent scams or a variety of cyber schemes – and is proactively warning the public about products claiming to save lives, before losing their money or creating false hope. Scammers seeking to profit by exploiting fear and uncertainty during this COVID-19 pandemic will be brought to justice.”
“The FDA will continue to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health during the Covid-19 pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “Today’s announcement should serve as a reminder that we will take appropriate action against bad actors who take advantage of a crisis while jeopardizing the health of Americans.”
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].
DEFENDANTS Case Number 20-mj-1407
Jennings Ryan Staley Age: 44 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, section 1341 (mail fraud)
Maximum penalty: 20 years in prison; fine; penalty assessment
AGENCY
Federal Bureau of Investigation
U.S. Food and Drug Administration
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
COVID-19 Concierge Medicine Pack (Criminal Complaint, Case No. 20-mj-1407, p. 9)Breman, Indiana Man SentencedRead the Press Release
SOUTH BEND - Charles Hartsell, age 48, of Bremen, Indiana was sentenced by United States District Court Judge Damon R. Leichty for conspiracy to sell and dispose of one or more firearms to an unlawful user of controlled substances, announced United States Attorney Thomas L. Kirsch II.
Hartsell was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in this case, in February of 2019, Mr. Hartsell met a male associate at the Four Winds South Bend casino, which is located on tribal land of the Pokagon Band of Potawatomi Indians. The two men transferred a .22 rifle and a 9 mm pistol from the associate’s car to Mr. Hartsell’s car. Mr. Hartsell then drove with his associate to a location in South Bend in order to meet a man referred to as “J”, who was known by Mr. Hartsell to be a drug user. Mr. Hartsell tried to sell the two firearms to “J”, but “J” decided not to purchase the two firearms. Mr. Hartsell and his associate then purchased some heroin and methamphetamine from “J” and drove back to the casino. When they arrived back at the casino, Mr. Hartsell and his associate were detained by Pokagon Band tribal police officers. The two firearms were recovered from Mr. Hartsell’s car by police.
“The United States has an important relationship with the Pokagon Band of the Potawatomi Indians and crimes that occur on this federally-recognized tribal land of the Pokagon Band will be taken seriously by my Office,” said U.S. Attorney Thomas L. Kirsch. “We will continue to work in unison with the Pokagon Band to protect the safety of its tribal citizens, while respecting the Pokagon Band’s sovereignty and culture.”
Pokagon Police Chief William Lux said, “The Pokagon Band of Potawatomi Indians is a federally-recognized sovereign nation and is committed to working with our law enforcement partners in the U.S. government to protect all who visit its trust land and to prosecute those who violate the law on Pokagon land. This case is a great example of team work between our officers, Pokagon Tribal Police Investigations Unit and the St. Joseph County Police Department. We appreciate the support of the FBI and U.S. Attorney Kirsch in prosecuting Mr. Hartsell for crimes committed while at Four Winds South Bend, which is on sovereign Pokagon Band land.”
This case was investigated by the FBI and ATF with the assistance of the Pokagon Tribal Police Department and to St. Joseph County Police Department. The case was prosecuted by U.S. Attorney Thomas L. Kirsch II and Assistant U.S. Attorney Luke N. Reilander
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Attorney General William P. Barr’s Statement on FCC Chairman Pai’s Draft Order to Approve Ligado’s Application to Facilitate 5G and Internet of Things ServicesRead the Press Release
Attorney General William P. Barr issued the following statement:
“I applaud FCC Chairman Pai's proposal to make available L-band spectrum, to be used together with C-band spectrum, for deployment of advanced wireless services, including 5G. As I said in my speech at the Center for Strategic and International Studies, swift FCC action on spectrum is imperative to allow for the deployment of 5G. This is essential if we are to keep our economic and technological leadership and avoid forfeiting it to Communist China. Freeing up L-band spectrum for use in tandem with the C-band, as the Chairman proposes, should greatly reduce the cost and time it will take to deploy 5G throughout the country and would be a major step toward preserving our economic future. I hope the full Commission moves forward quickly.”
To view the draft order, click here.
An Op-Ed from United States Attorney Louis V. Franklin, Sr.Read the Press Release
With Americans adjusting their daily lives as we work to contain the Coronavirus pandemic, one thing that has not changed is law enforcement’s commitment to pursuing justice and keeping our communities safe. As the United States Attorney for the Middle District of Alabama, I am privileged to work closely with state and local police as well as agents from the FBI, ATF, DEA, United States Marshals Service, and our nation’s other preeminent law enforcement agencies to enforce federal law. Together with my staff of Assistant United States Attorneys and support personnel, we work with these agencies to investigate crimes, arrest those who commit them, and bring those perpetrators to justice in federal court. The job may look different in a pandemic, and it may bring with it an added degree of difficulty, but it hasn’t stopped.
We’ve taken precautions to help do our part to limit the spread of the Coronavirus. Most of my AUSAs are working from home, continuing to advance their cases toward a just end, albeit from a distance. Meetings that were once held in person are held by telephone. Instead of seeing judges on the bench during hearings, we see them on a television screen. Agents have prioritized work that does not require them to personally interact with each other or the public.
But one thing should be absolutely clear, especially to those who would threaten our community or who believe that they can use the Coronavirus as a cover to commit crimes with impunity. We’re still here, and we’re still watching you. Agents will still investigate you. U.S. Marshals will still pursue and arrest you. AUSAs will still prosecute you, and federal judges will still send you to prison if you break the law.
To do that job, we need your help.
There can be a tendency, especially when a crime is committed, for witnesses to do everything they can to avoid being involved or to tell themselves that someone else will take care of the problem. But in these trying times, we need everyone to do their part. If you see a crime committed, report it. If you have information about a crime that has already happened, call our offices and let us know.
And be vigilant in protecting yourselves, especially against fraud. Con artists have never seen a crisis they couldn’t find a way to exploit. Already, we’ve heard reports of fraudsters peddling fake Coronavirus vaccines, hawking counterfeit protective gear, and offering bogus financial schemes related to the passage of Congress’s recent relief legislation. If you receive a phone call or an email offering a product or service during this crisis that seems too good to be true or that you believe is illegal, call our office or the office of the Alabama Attorney General. We are here to serve you. You can also contact the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or e-mail them at [email protected].
Of course, those who would take advantage of this crisis are in the minority. What we’ve seen far more across our community and this state are people coming together to help one another. That’s what Americans have always done when we’ve met a challenge, and we haven’t found one yet that we can’t overcome together. The Coronavirus will be no different.
$1.6+ Million in DOJ Grants for Public Safety in Response to COVID-19Read the Press Release
MACON, Ga. – $1,648,580 in federal grant dollars is now available to multiple communities across the Middle District of Georgia in response to the public safety challenges posed by the outbreak of COVID-19, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia.
The grants are available under the Coronavirus Emergency Supplemental Funding (CESF) program, authorized by the recent stimulus legislation signed by President Trump. 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.
The following communities are allocated grants: Albany, Americus, Athens-Clarke County Unified Government, Baldwin County, Columbus, Dougherty County, Houston County, Lowndes County, Macon-Bibb County, Monroe, Sumter County, Tift County, Tifton, Valdosta, Walton County and Warner Robins. To view the allocation amounts for each community, please visit https://bja.ojp.gov/program/cesf/state-and-local-allocations. 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.
Any Georgia cities or counties not specifically listed, and are interested in receiving funding, can find updated information from the Criminal Justice Coordinating Council (CJCC) at https://bja.ojp.gov/program/cesf/state-and-local-allocations. 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.
“Each community will have the opportunity to use this emergency funding to help address their most urgent public safety challenges during the COVID-19 pandemic,” said U.S. Attorney Charlie Peeler. “I want to thank the President and the Office of Justice Programs for making these grants available to our communities during this unprecedented time.”
“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 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.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
15 April 2020
U.S. Attorneys William D. Hyslop and Brian T. Moran Announce Nearly $11 Million to Address Covid-19 Pandemic in State of WashingtonRead the Press Release
Spokane/Seattle – William D. Hyslop, United States Attorney for the Eastern District of Washington, and Brian T. Moran, United States Attorney for the Western District of Washington, announced today that the state of Washington received almost $11 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, to the Washington Department of Commerce and the city of Olympia, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. An additional $5.7 million has been allocated for other local jurisdictions in Washington. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“The Department of Justice is committed to providing significant resources to support our public safety professionals,” said United States Attorney William D. Hyslop. “These vital dollars will go directly to supporting the important work of public health and safety of the community.”
“Our first responders continue to answer the call every single day, to keep our communities safe, while risking exposure to this dangerous virus,” said U.S. Attorney Moran. “The Department of Justice provides this funding with significant flexibility, so that state and local departments can use it in the ways that best benefit their officers and their community.”
“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.
U.S. Attorney Shawn N. Anderson Announce $2,932,867.00 Award to Address Covid-19 Pandemic on GuamRead the Press Release
Hagatña – Shawn N. Anderson, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands today announced that Guam received $2,932,867.00 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the Guam Bureau of Statistics and Plans is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Donald J. Trump. Additional funds have been allocated for local jurisdictions on Guam. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Funding is also available for the CNMI upon application and meeting grant requirements.
U.S. Attorney Anderson stated, “This important funding is an additional step in the ongoing efforts by the Department of Justice to respond to the COVID-19 outbreak. This particular allocation will support a broad range of activities by the Government of Guam. Other DOJ efforts include my appointing a Coronavirus Fraud Coordinator, who has joined our law enforcement partners in prioritizing criminal investigations related to coronavirus. At the national level, Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force to coordinate efforts with the Antitrust Division and U.S. Attorneys across the country where illegal activity is taking place.”
“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.
U.S. Attorney Jay Town Seeks Help from Local Hospitals in Reporting Hoarding and Price-Gouging of Medical SuppliesRead the Press Release
Birmingham, Ala. — U.S. Jay E. Town sent a letter to hospital executives in Northern Alabama today, encouraging employees and medical professionals to report individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding and/or price-gouging.
“While this pandemic has brought to the fore the very best among us, we are unfortunately becoming increasingly aware of myriad coronavirus-related criminal activities in our District and around the country,” Town said. “In relevant part to the medical providers, these crimes include Medicaid/Medicare billing manipulations, the sale of fake or counterfeit personal protective equipment, sale of bogus medicines related to COVID-19, and the hoarding and/or price gouging of critical medical supplies and materials. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, government agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
The letter was sent to hospitals and healthcare systems in Northern Alabama, as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud.
U.S. Attorney Town encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Town's letter to hospital leadership below.
U.S. Attorney Ariana Fajardo Orshan Seeks Support of South Florida Hospitals in Fight Against COVID-19 FraudRead the Press Release
MIAMI, Fl. — U.S. Attorney Ariana Fajardo Orshan sent a letter to South Florida hospital executives on Monday, asking them to share information about individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding or price gouging.
“In light of the COVID-19 pandemic, our office is prioritizing the deterrence, investigation, and prosecution of wrongdoing related to the COVID-19 pandemic – including . . . hoarding and/or price-gouging with regard to critical medical supplies,” said U.S. Attorney Fajardo Orshan. She asked the hospital executives for help “in identifying 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,” and reiterated her office’s commitment to investigating and prosecuting fraud designed to benefit from the coronavirus pandemic.
On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud. U.S. Attorney Fajardo Orshan launched the Southern District of Florida COVID-19 Task Force, through which agencies can share information and coordinate law enforcement action, and appointed AUSA Jon Juenger to lead her Office’s COVID-19 response.
U.S. Attorney Fajardo Orshan encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Fajardo-Orshan’s letter to hospital leadership by clicking the attachment.
Attachment:
U.S. Attorney’s Letter to South Florida Hospitals
Statement of U.S. Attorney John C. Anderson on arrests of Susan and William Harris by U.S. Marshals Service in OklahomaRead the Press Release
“In keeping with its highest traditions and revered reputation, by tracking and apprehending these fugitives the United States Marshals service has demonstrated once again that any attempt to flee from justice is a fool’s errand,” said U.S. Attorney Anderson. “Thanks to the dedication of the Marshals Service, these defendants will face sentencing for their crimes, and their victims will be afforded some measure of closure to the lengthy ordeal they have endured. I also thank the Albuquerque and Oklahoma City divisions of the FBI, IRS-Criminal Investigation, the U.S. Attorney’s Office for the Western District of Oklahoma and the Bernalillo County Sheriff’s Office for their assistance in the fugitive investigation.”
For further information on the arrests of Susan and William Harris, contact the U.S. Marshals Service at (505) 346-6400.
Salvadoran National Sentenced for Passport FraudRead the Press Release
Boston – A Salvadoran national previously residing in Chelsea was sentenced today for passport fraud.
Eliseo Rivas, 47, was sentenced in a videoconference hearing before U.S. District Court Judge Patti B. Saris to three months in prison and three years of supervised release. Rivas will face deportation upon completion of his state and federal sentence. Rivas is currently serving a seven-year state sentence in Maryland for a September 2018 conviction of sexual abuse of a minor. In March 2020, Rivas pleaded guilty to making a false statement in a passport application.
On Sept. 30, 2016, Rivas submitted an application for a U.S. Passport using the name, Social Security number, and date of birth of a United States citizen. As proof of citizenship and identity, Rivas submitted a Puerto Rican birth certificate in the victim’s name and a Massachusetts Identification Card in the victim’s name but with Rivas’s photo. After reviewing the application, the Boston Passport Agency forwarded the application to federal authorities for investigation.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Lelling’s Major Crimes Unit prosecuted the case.
Rice University pays to resolve claims it defrauded federal grant programRead the Press Release
HOUSTON – William Marsh Rice University has paid the United States more than $3.7 million to resolve claims it engaged in a pattern and practice of improperly charging National Science Foundation (NSF) research and development awards, announced U.S. Attorney Ryan K. Patrick.
Congress created the independent federal agency in 1950 “to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense...”
NSF funds support approximately 24% of all federally-supported basic research that colleges and universities conduct in the United States. As of March 2020, Rice had 215 active NSF research grants. University grantees, including Rice, carry out NSF-sponsored research under uniform administrative rules. They specify an expense may only be charged to an award if it is allocable - if it is incurred specifically for the award, if it benefits the award or if it is necessary to the overall operation of the awardee and is assigned in part to NSF in accordance with the other award terms and conditions.
In 2016, authorities began an investigation of Rice’s suspected misuse of NSF grant funds. Specifically, Rice allegedly budgeted for graduate student stipends in its research grant proposals but then used a portion of the money to pay the students to perform teaching duties unrelated to the NSF awards.
As an NSF grant awardee, Rice falsely certified on each proposal, and each time it requested a payment under the grant, that it was complying with NSF award terms and conditions. Those terms and other applicable regulations require each grant recipient adhere to specific federal cost principles which state that costs must be necessary, reasonable and allocable to be properly charged to an award. Rice knowingly failed to follow these requirements.
From Nov. 18, 2006, through Sept. 30, 2018, Rice knowingly engaged in a pattern and practice of improperly charging graduate students’ stipends, tuition remission and related facilities and administrative charges to NSF awards. These charges were actually used in part for time the graduate students spent performing teaching duties unrelated to Rice’s NSF research and development awards. The activities were not specifically incurred for the research awards, did not benefit those awards and otherwise were not allowable or allocable to the NSF awards, in violation of NSF award terms and conditions and the False Claims Act.
To settle the allegations, Rice has agreed to pay $$3,754,186– double the loss to the United States.
“The NSF is a strong supporter of basic research at colleges and universities,” said Allison Lerner, NSF Inspector General. “However, the Agency expects grant recipients to follow the federal cost principles. Expenses charged to grants must be allowable, allocable and reasonable. I commend the U.S. Attorney’s Office for their work on upholding federal grant rules in this case.”
The settlement resolved the claims without a determination of liability.
The NSF – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Jill Venezia and Andrew Bobb handled the matter.
Reference Laboratory, Pain Clinic, and Two Individuals Agree to Pay $41 Million to Resolve Allegations of Unnecessary Urine Drug TestingRead the Press Release
Logan Laboratories Inc. (Logan Labs), a reference laboratory in Tampa, Florida; Tampa Pain Relief Centers Inc. (Tampa Pain), a pain clinic also based in Tampa Florida, and; two of their former executives, Michael T. Doyle and Christopher Utz Toepke (collectively, Defendants) have agreed to pay a total of $41 million to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT), the Department of Justice announced today. Both Logan Labs and Tampa Pain are subsidiaries of Surgery Partners Inc. Doyle is the former CEO of Surgery Partners and Logan Labs. Toepke is the former Group President for Ancillary Services at Surgery Partners, with oversight of Logan Labs, and a former Vice President at Tampa Pain.
The government alleged that Defendants knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, and definitive UDT are tests that identify the amounts of those drugs in a patient’s system. The government alleged that Defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the particular patients for whom the tests were ordered. According to the government’s allegations, the medically unreasonable and unnecessary definitive UDT was performed at Logan Labs, the medically unreasonable and unnecessary presumptive UDT was performed at Tampa Pain, and the respective resulting false claims were submitted by both Tampa Pain and Logan Labs to federal health care programs, from Jan. 1, 2010 through Dec. 31, 2017.
“The Department of Justice is committed to ensuring that federally-funded laboratory tests are ordered based on each patient’s medical needs and not for the purpose of increasing laboratory profits,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We do not tolerate practices that are not based on patient medial needs and that lead to unnecessary costs for federal health care programs.”
“Medical providers seeking profits at the expense of individualized patient care will be held accountable in our district,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “We will protect our district’s residents from providers whose concern for their bottom line overrides medical decision making.”
“The indiscriminate and unnecessary testing alleged here increased medical costs to the government without serving patients’ real medical needs,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “A laboratory that promotes and knowingly conducts medically unnecessary drug testing – prioritizing profits over objective medical decision-making – operates unlawfully and wastes limited federal health care resources. That is unfair to both patients and taxpayers and is the type of conduct that must be rooted out of our health care system.”
Contemporaneous with the False Claims Act settlement, Logan Labs entered into an “Integrity Agreement” and Tampa Pain entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General.
“Increasing the profits of a sister-company by referring patients for testing services that are not medically reasonable and necessary and then having that sister-company submit claims to government health insurance programs for those needless services drains resources from legitimate patient care,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General of the Department of Health and Human Services. “Those scheming to enrich themselves at the expense of taxpayer-funded programs must be held accountable for their actions.”
“It’s offensive when medical providers choose to bilk our healthcare billing system for personal enrichment,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS and our investigative partners are dedicated to fully investigate and bring to justice those who deprive the Department of Defense of limited resources needed for the healthcare of our military, veterans, and their families.”
“The Department of Labor appreciates the efforts of the OIG community and the Department of Justice in identifying and pursuing cases where unnecessary testing has resulted in excessive charges to our federal workers’ compensation program,” said Antonio Rios, Director of the Office of Workers’ Compensation Programs Division of Federal Employees’ Compensation. “Healthcare fraud detection efforts are a high priority for us.”
The allegations that are the subject of today’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers will receive approximately $7.79 million of the settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and Middle District of Florida, with assistance from the Department of Health and Human Services, Office of Inspector General. The two lawsuits are captioned United States ex rel. Ashton v. Logan Laboratories, LLC, et al., Case No. 16-4583 (E.D. Pa.) and United States ex rel. Cho v. Surgery Partners Inc., et al., Case No. 8:17-cv-983 (M.D. Fla.).
The claims resolved by this 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.
Reference Laboratory, Pain Clinic, and Two Individuals Agree to Pay $41 Million to Resolve Allegations of Unnecessary Urine Drug TestingRead the Press Release
Tampa, Florida – Logan Laboratories Inc. (Logan Labs), a reference laboratory in Tampa, Florida; Tampa Pain Relief Centers Inc. (Tampa Pain), a pain clinic also based in Tampa Florida, and; two of their former executives, Michael T. Doyle and Christopher Utz Toepke (collectively, Defendants) have agreed to pay a total of $41 million to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT), the Department of Justice announced today. Both Logan Labs and Tampa Pain are subsidiaries of Surgery Partners Inc.; Doyle is the former CEO of Surgery Partners and Logan Labs, and; Toepke is the former Group President for Ancillary Services at Surgery Partners, with oversight of Logan Labs, and a former Vice President at Tampa Pain.
The government alleged that Defendants knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, and definitive UDT are tests that identify the amounts of those drugs in a patient’s system. The government alleged that Defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the particular patients for whom the tests were ordered. According to the government’s allegations, the medically unreasonable and unnecessary definitive UDT was performed at Logan Labs, the medically unreasonable and unnecessary presumptive UDT was performed at Tampa Pain, and the respective resulting false claims were submitted by both Tampa Pain and Logan Labs to federal health care programs, from Jan. 1, 2010 through Dec. 31, 2017.
“Medical providers seeking profits at the expense of individualized patient care will be held accountable in our district,” said U.S. Attorney for the Middle District of Florida Maria Chapa Lopez. “We will protect our district’s residents from providers whose concern for their bottom line overrides medical decision making.”
“The Department of Justice is committed to ensuring that federally-funded laboratory tests are ordered based on each patient’s medical needs and not for the purpose of increasing laboratory profits,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We do not tolerate practices that are not based on patient medial needs and that lead to unnecessary costs for federal health care programs.”
“The indiscriminate and unnecessary testing alleged here increased medical costs to the government without serving patients’ real medical needs,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “A laboratory that promotes and knowingly conducts medically unnecessary drug testing – prioritizing profits over objective medical decision-making – operates unlawfully and wastes limited federal health care resources. That is unfair to both patients and taxpayers and is the type of conduct that must be rooted out of our health care system.”
Contemporaneous with the False Claims Act settlement, Logan Labs entered into an “Integrity Agreement” and Tampa Pain entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General.
“Increasing the profits of a sister-company by referring patients for testing services that are not medically reasonable and necessary and then having that sister-company submit claims to government health insurance programs for those needless services drains resources from legitimate patient care,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General of the Department of Health and Human Services. “Those scheming to enrich themselves at the expense of taxpayer-funded programs must be held accountable for their actions.”
“It’s offensive when medical providers choose to bilk our healthcare billing system for personal enrichment,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS and our investigative partners are dedicated to fully investigate and bring to justice those who deprive the Department of Defense of limited resources needed for the healthcare of our military, veterans, and their families.”
“The Department of Labor appreciates the efforts of the OIG community and the Department of Justice in identifying and pursuing cases where unnecessary testing has resulted in excessive charges to our federal workers’ compensation program,” said Antonio Rios, Director of the Office of Workers’ Compensation Programs Division of Federal Employees’ Compensation. “Healthcare fraud detection efforts are a high priority for us.”
The allegations that are the subject of today’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers will receive approximately $7.79 million of the settlement.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and Middle District of Florida, with assistance from the Department of Health and Human Services, Office of Inspector General. The two lawsuits are captioned United States ex rel. Ashton v. Logan Laboratories, LLC, et al., Case No. 16-4583 (E.D. Pa.) and United States ex rel. Cho v. Surgery Partners Inc., et al., Case No. 8:17-cv-983 (M.D. Fla.). Assistant U.S. Attorney Kyle S. Cohen handled the case in the Middle District of Florida, with assistance from U.S. Attorneys David A. Degnan and Viveca D. Parker in the Eastern District of Pennsylvania, auditor Denis Cooke, and Jake Shields and Augustine Ripa of the Civil Fraud Section of the Department of Justice.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Previously convicted felon from Albuquerque faces federal charge of illegally possessing firearms in truckRead the Press Release
ALBUQUERQUE, N.M. – William Westfall, 36, of Albuquerque, New Mexico has been charged in a criminal complaint with being a felon in possession of a firearm. He will make his initial appearance in federal court in Albuquerque on April 16.
According to the complaint, Westfall allegedly committed the offense in Bernalillo County, New Mexico on May 9, 2019. Westfall was allegedly traveling in a truck in Albuquerque with six firearms concealed in the vehicle. Westfall allegedly knew firearms were inside the truck although he was prohibited by federal law from possessing these firearms based on previous felony convictions for aggravated assault and aggravated battery with deadly weapons.
Westfall is currently in custody pending a detention hearing. He faces up to 10 years in prison if convicted. A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
The FBI Violent Crime Task Force (VCTF) investigated this case. The VCTF was created in 2019 with agents and officers from the FBI, New Mexico State Police, Albuquerque Police Department, and Bernalillo County Sheriff's Office, and recently added representatives from the U.S. Drug Enforcement Administration, New Mexico Corrections Department, and Santa Fe Adult Correctional Facility. Assistant U.S. Attorney Letitia Simms is prosecuting the case.
Man from Zuni, New Mexico sentenced to federal prison for methamphetamine possession with intent to distributeRead the Press Release
ALBUQUERQUE, N.M. – Cody Laweka, 29, of Zuni, New Mexico was sentenced in federal court in Albuquerque today to four years in prison for possession with the intent to distribute 10 pounds of methamphetamine.
Laweka previously pleaded guilty to this offense on Jan. 15. According to his plea agreement, Laweka planned to sell 10 pounds of methamphetamine on July 17, 2019. He went to a parking lot in Albuquerque expecting to meet the customer. Laweka kept the methamphetamine he intended to sell in a hotel room nearby. He was going to retrieve it after collecting payment of $28,000 from the customer. However, the customer was actually an undercover federal agent who arrested Laweka before completing the transaction.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Robert I. Goldaris prosecuted the case.
Man from Albuquerque faces federal firearm and ammunition possession chargesRead the Press Release
ALBUQUERQUE, N.M. - Isaiah Matthew Chavez, 29, of Albuquerque, New Mexico has been charged in a criminal complaint with possession of a firearm and ammunition by a person under indictment. Chavez will make his initial appearance in federal court on April 16.
According to the complaint, Chavez allegedly possessed two pistols and ammunition in a bedroom closet at his home in Albuquerque when law enforcement agents searched the location pursuant to a search warrant on April 15. Chavez is forbidden by federal law from possessing these items because he is under indictment in New Mexico state court for aggravated assault on a peace officer with a deadly weapon, resisting, evading, or obstructing an officer, and reckless driving.
Chavez is currently in custody pending a detention hearing. He faces up to 10 years in prison if convicted. A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
The FBI Violent Crime Task Force (VCTF) investigated this case. The VCTF was created in 2019 with agents and officers from the FBI, New Mexico State Police, Albuquerque Police Department, and Bernalillo County Sheriff's Office, and recently added representatives from the U.S. Drug Enforcement Administration, New Mexico Corrections Department, and Santa Fe Adult Correctional Facility. Assistant U.S. Attorney Letitia Simms is prosecuting the case.
Larry Mitchell Hopkins sentenced to 21 months in federal prison for illegal firearm possession in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Larry Mitchell Hopkins, who is also known as Johnny Horton Jr., 70, of Flora Vista, New Mexico, was sentenced in federal court in Albuquerque today to 21 months in prison for being a felon in possession of a firearm.
Hopkins previously pleaded guilty to this offense on Jan. 2. In his plea agreement, Hopkins admitted committing this offense in San Juan County, New Mexico by possessing nine pistols, rifles, and shotguns on Nov. 28, 2017. Hopkins also admitted possessing ammunition after being previously convicted of felony offenses in Michigan, Oregon, and South Dakota, including illegal weapon possession and impersonating a peace officer.
The FBI investigated this case. The Sunland Park Police Department assisted in arresting Hopkins. The U.S. Attorney’s Office for the District of New Mexico prosecuted the case.
Lake Worth Businessman Pleads Guilty to Evading Taxes on Millions in Income, Stashing Funds in Secret Accounts Around the WorldRead the Press Release
Tapped Hidden Accounts to Buy $1.3 Million Yacht and Waterfront Property Filed False “Quiet” Disclosure
WASHINGTON – A Lake Worth, Florida, businessman pleaded guilty today to tax evasion and willful failure to file a Report of Foreign Bank or Financial Account, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and statements made in court, Dusko Bruer owned and operated a company that bought U.S.-made agricultural machinery and parts and sold them throughout the world. Beginning in 2003, the company did not pay Bruer a salary. Instead, Bruer used millions of dollars from the company’s bank accounts to pay his personal expenses, make investments abroad, and make transfers to an employee and his family. From 2007 through 2011, Bruer transferred over $5.8 million of the company’s profits to foreign financial accounts. Bruer used the company’s profits to buy a yacht, purchase a waterfront home for his girlfriend and himself, purchase a home for an employee, and buy real property in Serbia. Between 2007 and 2014, Bruer failed to report more than $7.7 million in income and did not pay taxes of more than $2.7 million that were due to the United States.
Although Bruer’s company had a number of employees and reaped millions of dollars in profits, Bruer never filed a corporate tax return for the company nor did the company ever pay taxes on its income. Bruer also never filed employment tax returns during those years reporting wages that the company paid to its employees nor did the company withhold and pay over payroll taxes.
From 2007 through 2015, Bruer maintained financial accounts in Croatia, Germany, Serbia, and Switzerland. He did not report his ownership of the accounts to the Financial Crime Enforcement Network (FinCEN) by filing a Report of Foreign Bank or Financial Account (FBAR), despite knowing he had an obligation to do so. In 2010, an account he held at a subsidiary of Credit Suisse AG in Zurich, Switzerland reached a year-end high value of $6,177,586. Bruer used the assets in his foreign accounts for personal use, including the purchase of a yacht for $1,350,000 and a 3,200 square foot home in Lake Worth, Florida, with 100 feet of waterfront frontage for approximately $1,650,000.
From 1999 to 2014, Bruer never filed a personal tax return nor did he pay tax on his income. In 2015, Credit Suisse closed his account in Switzerland and advised him to enter the IRS’s Offshore Voluntary Disclosure Program (OVDP), by which taxpayers could avoid criminal prosecution by making a voluntary disclosure directly to IRS-Criminal Investigation, filing six years of delinquent or amended income tax returns, as well as delinquent or amended FBARs, paying back taxes, interest, and certain penalties on the six tax years in the disclosure period, and paying a penalty on the highest aggregate account balance of their noncompliant offshore assets. Bruer did not enter into the OVDP because he determined that the cost would be too high. Instead, Bruer made a “quiet” disclosure that involved filing several delinquent tax returns with the IRS, not flagging the returns in anyway or paying the taxes, penalties and interest that would be paid in OVDP.
The returns Bruer filed as part of his “quiet” disclosure were false because they disclosed only the funds he held in the Credit Suisse account and not the funds he held in the accounts in Croatia, Germany, Serbia, nor did they report the income he earned from his company.
United States District Court Judge Senior District Judge Kenneth A. Marra scheduled sentencing for June 12, 2020. Bruer faces a maximum sentence of five years in prison for each charge, three years of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly of the Tax Division and Assistant U.S. Attorney Aurora Fagan, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan also thanked the Ministry of Justice of the Republic of Croatia for their assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
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.
Joshua Brissette, a Felon with a Prior Conviction for Domestic Violence, Charged with Unlawfully Possessing a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Joshua Brissette, 35, of Burlington, Vermont, was charged this morning by criminal complaint with being a felon in possession of a firearm and possessing a firearm after having been convicted of a misdemeanor crime of domestic violence. A federal arrest warrant was issued for Brissette, who remains in the primary custody of the State of Vermont. A date for Brissette’s initial appearance in federal court has not yet been scheduled.
According to court records, on April 13, 2020, at approximately 6:18 pm, Burlington Police officers responded to reports of a shooting in the area of 44 North Union Street in Burlington, Vermont. The victim had been shot once in the chest, and stated that “Josh” had shot her. “Josh” was determined to be Joshua Brissette, who stole his roommate’s car, drove to the victim’s location, and discharged multiple rounds in the direction of both the victim and her husband. Brissette then fled the scene, and attempted to dispose of the firearm at a Winooski gas station. The station clerk located the firearm, a Mossberg model MC1 9 mm pistol, and contacted the police. A search of Brissette’s residence located an empty Mossberg pistol box, two empty boxes of ammunition, and receipts for the gun and ammunition. A loaded pistol magazine was located in Brissette’s roommate’s car.
Brissette has five felony convictions, including a 2012 escape-from-furlough conviction and a 2016 felony conviction for Driving Under the Influence – Third. In addition, Brissette was charged with felony aggravated domestic assault in 2016, which resulted in his conviction for misdemeanor domestic violence. The victim of Brissette’s prior conviction for domestic violence was the same victim as the shooting on April 13, 2020.
If convicted, Brissette faces a maximum of ten years of imprisonment, which could be imposed to be served consecutively to any sentence imposed in the pending state case. The actual sentence however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges in the complaint are merely accusations, and that the defendant is presumed innocent unless and until he is proven guilty.
United States Attorney Christina E. Nolan commended the investigative efforts of the Burlington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. She stated: “The U.S. Attorney’s Office will continue to show zero tolerance for domestic violence. We will use our federal gun statutes to prevent these crimes and to bring justice to offenders. We look forward to continued support of, and collaboration with, state prosecutors to combat domestic violence in Vermont.”
The United States is represented in this matter by Assistant U.S. Attorney Wendy Fuller. Defendant Brissette is not yet represented by counsel in the federal case.
This case is 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 enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting firearm use and possession crimes; prioritizes prosecuting persons who make false statements when attempting to obtain firearms; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives concerning persons who attempt to obtain firearms illegally; coordinates responses to persons prevented from obtaining firearms for mental health reasons; and ensures the use of modern intelligence tools and technology to focus on the criminals posing the greatest threat to our communities.
For more information, please see https://www.justice.gov/projectguardian.
Jamestown Man Indicted on Drug Conspiracy ChargeRead 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 an indictment charging Rocco A. Beardsley, 34, of Jamestown, NY, with narcotics conspiracy. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment, between December 2018, and April 2020, the defendant conspired with others to possess and distribute methamphetamine; acetyl fentanyl; crack cocaine; and fentanyl.
Beardsley was previously convicted in Federal Court in 2007 of conspiracy to distribute crack cocaine and sentenced to serve 57 months in prison. The defendant is currently on New York State parole following a 2017 conviction for Criminal Possession of a Controlled Substance, and Narcotic Drug Intent To Sell.
The defendant was arraigned before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan; the Jamestown Police Department, under the direction of Chief Harry Snellings; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito.
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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Hartford Man on Federal Supervised Release Charged with Dealing FentanylRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody announced that YACOV OCASIO, also known as “C-Low,” 23, of Hartford, was arrested today on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, fentanyl.
As alleged in court documents and statements made in court, in December 2019, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department learned that Ocasio was selling fentanyl in Hartford. Since May 2019, Ocasio has been on federal supervised release following a conviction for possession with intent to distribute, and distribution of, heroin/fentanyl. In that case, Ocasio distributed heroin/fentanyl that caused the overdose death of a 28-year-old Middletown man in August 2016. In August 28, 2017, Ocasio was sentenced in Hartford federal court to 30 months of imprisonment, followed by three years of supervised release, for that offense.
It is further alleged that, between December 2019 and March 2020, investigators conducted seven controlled purchases of fentanyl from Ocasio.
Ocasio was arrested this morning at a hotel in Hartford where he was staying. It is alleged that he possessed approximately 150 bags of fentanyl at the time of his arrest.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), Ocasio was presented in court via videoconference. U.S. Magistrate Judge Robert A. Richardson ordered Ocasio detained.
The charge of possession with intent to distribute, and distribution of, fentanyl carries a maximum term of imprisonment of 20 years. Ocasio faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Baltimore Police Officer Facing Federal Charges for Allegedly Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During a BPD InvestigationRead the Press Release
Baltimore, Maryland – A federal criminal information has been filed today charging former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, with making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.
Former Baltimore Police officer Ivo Louvado, age 46, of Harford County, Maryland was previously charged in federal court for his role in this matter.
The federal charges were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
Victor Rivera and Ivo Louvado joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively. In February 2009, Rivera and Louvado were serving on a squad with W.J., C.J., P.G., and K.G., that was supervised by W.K.
According the charging documents, prior to February 19, 2009, W.J. and C.J. told Rivera and Louvado that they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland. On February 19, 2009, Rivera, Louvado, and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, an individual whose initials are T.M. Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container. Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers. During this time other officers claimed to have followed a second individual who left the residence who threw trash from the car window, which was found to contain cocaine residue. Rivera, Louvado, and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge.
As detailed in their criminal informations, Rivera and Louvado ultimately participated in the search of the residence and Louvado took photographs of items that BPD seized, including a jacket hanging behind a door that contained a large amount of cash in it. While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely. A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby. Louvado and other officers went to the pickup. The back of the pickup truck had an opaque cover over it that could be locked. The cover was opened and in the back of the pickup truck, under construction debris, a significant quantity of cocaine was found. Rivera subsequently learned that drugs were found in the truck. Louvado and other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity. In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G. After the cocaine was loaded into the surveillance van, Louvado followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine. Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009. Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.
According to the charging documents, Rivera, Louvado, and K.G. subsequently discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD. These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009. Rather than turn this cocaine in to BPD, Rivera, Louvado, and K.G. agreed to sell the cocaine and split the proceeds from its sale.
Rivera allegedly sold the cocaine to a confidential informant of his, who trafficked in cocaine. The source sold the cocaine in Baltimore City. Rivera received the proceeds of the sale from his source and then shared them with Louvado and K.G. Ultimately, Rivera received $20,000 and Louvado received $10,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.
If convicted, Rivera and Louvado each face a maximum sentence of 10 years in prison for making false statements to a federal law enforcement officer. No court appearance has been scheduled.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting the case.
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Florida-Based Laboratory, Pain Clinic, and Two Former Executives Agree to Pay $41 Million to Resolve Allegations of Unnecessary Drug TestingRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Logan Laboratories, Inc. (Logan Labs), a reference laboratory in Tampa, Florida, Tampa Pain Relief Centers, Inc. (Tampa Pain), a pain clinic also based in Tampa, Florida, and two of their former executives, Michael T. Doyle and Christopher Utz Toepke, have agreed to pay a total of $41 million to resolve alleged violations of the False Claims Act for billing Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT). Both Logan Labs and Tampa Pain are subsidiaries of Surgery Partners, Inc. Doyle is the former CEO of Surgery Partners and Logan Labs. Toepke is the former Group President for Ancillary Services at Surgery Partners, with oversight of Logan Labs, and a former Vice President at Tampa Pain.
The government alleged that defendants knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, while definitive UDT are tests that identify the amounts of those drugs in a patient’s system. The government alleged that defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the particular patients for whom the tests were ordered. According to the government’s allegations, from January 1, 2010 through December 31, 2017, the medically unreasonable and unnecessary definitive UDT were performed at Logan Labs, the medically unreasonable and unnecessary presumptive UDT were performed at Tampa Pain, and the respective resulting false claims were submitted by both Tampa Pain and Logan Labs to federal health care programs. The settlement resolves allegations brought in two separate lawsuits, one in the Eastern District of Pennsylvania and the other in the Middle District of Florida.
“The indiscriminate and unnecessary testing alleged here increased medical costs to the government without serving patients’ real medical needs,” said U.S. Attorney McSwain. “A laboratory that promotes and knowingly conducts medically unnecessary drug testing -- prioritizing profits over objective medical decision-making -- operates unlawfully and wastes limited federal health care resources. That is unfair to both patients and taxpayers and is the type of conduct that must be rooted out of our health care system.”
“The Department of Justice is committed to ensuring that federally-funded laboratory tests are ordered based on each patient’s medical needs and not for the purpose of increasing laboratory profits,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We do not tolerate practices that are not based on patient medial needs and that lead to unnecessary costs for federal health care programs.”
“Medical providers seeking profits at the expense of individualized patient care will be held accountable in our district,” said the United States Attorney for the Middle District of Florida Maria Chapa Lopez. “We will protect our district’s residents from providers whose concern for their bottom line overrides medical decision-making.”
Contemporaneous with the False Claims Act settlement, Logan Labs and Tampa Pain have also entered into a “Corporate Integrity Agreement” with the U.S. Department of Health and Human Services, Office of Inspector General.
“Increasing the profits of a sister-company by referring patients for testing services that are not medically reasonable and necessary and then having that sister-company submit claims to government health insurance programs for those needless services drains resources from legitimate patient care,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Those scheming to enrich themselves at the expense of taxpayer-funded programs must be held accountable for their actions.”
“It is offensive when medical providers choose to bilk our healthcare billing system for personal enrichment,” said Special Agent in Charge Cynthia A. Bruce, Defense Criminal Investigative Service (DCIS) for the Department of Defense Office of Inspector General, Southeast Field Office. “DCIS and our investigative partners are dedicated to fully investigating and bringing to justice those who deprive the DoD of limited resources needed for the healthcare of our military, veterans and their families.”
“The Department of Labor appreciates the efforts of the OIG community and the Department of Justice in identifying and pursuing cases where unnecessary testing has resulted in excessive charges to our federal workers’ compensation program,” said Antonio Rios, Director of the Office of Workers’ Compensation Programs Division of Federal Employees’ Compensation. “Healthcare fraud detection efforts are a high priority for us.”
The allegations that are the subject of today’s settlement were originally alleged in two cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The Act also permits the government to intervene in such actions, as the government previously did in the two whistleblower cases. The whistleblowers will receive approximately $7.79 million of the settlement.
The government’s pursuit of these matters illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800‑HHS‑TIPS (1-800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The two lawsuits are captioned United States ex rel. Ashton v. Logan Laboratories, LLC, et al., Case No. 16-4583 (E.D. Pa.) and United States ex rel. Cho v. Surgery Partners Inc., et al., Case No. 8:17-cv-983 (M.D. Fla.). Assistant U.S. Attorneys David A. Degnan and Viveca D. Parker handled the case in the Eastern District of Pennsylvania, with assistance from auditor Denis Cooke, and worked jointly with Assistant U.S. Attorney Kyle Cohen of the Middle District of Florida and Jake Shields and Augustine Ripa of the Civil Fraud Section of the Department of Justice.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Federal Law Enforcement Leaders Affirm Importance of Protecting Civil Rights Amid Coronavirus PandemicRead the Press Release
PORTLAND—Today, U.S. Attorney Billy J. Williams and FBI Special Agent in Charge Renn Cannon denounced discrimination and acts of hate targeting Asian Americans, Pacific Islanders, Native Americans, and other racial and ethnic minorities and called on Oregonians to take steps to counter xenophobia throughout the state.
“During these challenging times, Oregonians must come together to stop the spread of both COVID-19 and racial bias,” said U.S. Attorney Williams. “It is categorically false that certain groups of people are more susceptible to carrying the virus based on their real or perceived race or ethnicity. Spreading these untruths puts communities at risk of real physical harm and must stop.”
“The FBI stands watch over all Americans. One of our top priorities is investigation of federal civil rights crimes against any person, including Asian Americans or individuals from East Asian countries,” said Special Agent in Charge Cannon. “We will use all authority granted under federal law to hold those who commit hate crimes accountable.”
The Justice Department will prosecute hate crimes and violations of anti-discrimination laws against Asian Americans, Pacific Islanders, Native Americans, and others to the fullest extent of the law. Attorney General William Barr and Assistant Attorney General for Civil Rights Eric Dreiband have called upon department prosecutors throughout the country to watch for hate-motivated acts of violence.
U.S. Attorney Williams and Special Agent in Charge Cannon urged Oregonians to take the following steps to protect racial and ethnic minority community members from bias and hate:
- Use language supported by public health officials when referring to the global pandemic and the precipitating virus—World Health Organization (WHO) officials have recommended using “coronavirus disease 2019” or “COVID-19” as appropriate descriptors.
- Disseminate accurate COVID-19 information within professional and social networks—U.S. Government officials have warned the public about widespread misinformation and disinformation related to the COVID-19 pandemic. Avoid spreading inaccurate information by relying on trusted sources for news and public health guidance. Examples include: the Centers for Disease Control and Prevention (CDC.gov), the WHO (WHO.int), and the Oregon Health Authority (Oregon.gov/OHA).
- Encourage people you know to report all incidents of bias and hate—There is a significant disparity between hate crimes that actually occur and those reported to law enforcement. It is critical to report hate crimes not only to show support for the individual(s) directly impacted, but also to send a clear message that the community will not tolerate these kinds of crimes. Reporting also enables law enforcement to fully understand the scope of the problem in a community and assign resources toward preventing and addressing crimes of bias and hate.
On March 18, 2020, U.S. Attorney Williams announced the appointment of a COVID-19 civil rights coordinator to lead investigations into known and suspected hate crimes and civil rights violations related to the nation’s ongoing public health emergency.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a hate crime or other violation of your civil rights, please contact the FBI Portland Field Office by calling (503) 224-4181 or submitting a tip online at tips.fbi.gov.
The U.S. Attorney’s Office COVID-19 civil rights coordinator will be notified of tips submitted via the above reporting methods.
East Longmeadow Man Charged with Attempted Arson at Longmeadow Assisted Living Residential FacilityRead the Press Release
BOSTON – An East Longmeadow man was arrested today and charged in connection with attempted arson at a Longmeadow assisted living residential facility.
John Michael Rathbun, 36, was charged in a criminal complaint in federal court in Springfield with two counts of attempted arson. Rathbun will make an initial appearance via videoconference before Magistrate Judge Katherine Robertson.
“In times of national crisis, hatred based on religion often blossoms into violence,” said United States Attorney Andrew E. Lelling. “The charges in this case allege that the defendant tried to blow up a Jewish assisted living residence with a five gallon gas canister, at the same time that the facility was being discussed on white supremacist online platforms. We will find, investigate and aggressively prosecute anyone engaged in this kind of mayhem. I also extend my thanks to the Longmeadow Police Department for its help with this investigation.”
“As alleged, John Rathbun placed a homemade incendiary device near the entrance of a Jewish assisted living facility, located within a short distance of three Jewish temples, a Jewish private school, and a Jewish Community Center,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case highlights the very real threat posed by racially motivated violent extremists and make no mistake, the FBI will use every investigative tool available, along with the expertise and skills of our partners on our Joint Terrorism Task Forces, to identify, assess and disrupt threats like this one to keep our communities safe.”
According to the criminal complaint, on April 2, 2020, police discovered a homemade incendiary device at the entrance of Ruth’s House, a Jewish-sponsored assisted living residential facility for seniors of all faiths, located on Converse Street in Longmeadow. The device was located within feet of a widely used pedestrian walkway and approximately 50 yards from the Ruth’s House facility. Ruth’s House is located within one square mile of several other Jewish facilities, including three Jewish temples, a Jewish private school and a Jewish Community Center.
It is alleged that the incendiary device consisted of a five-gallon plastic Scepter gas canister, filled with liquid believed to be flammable gasoline, with burnt paper (later identified as a Christian religious pamphlet) placed in the nozzle of the canister. A portion of the pamphlet was charred and appeared to have been lit on fire in an attempt to ignite the gas. Law enforcement observed what appeared to be blood stains on the canister handle and on the pamphlet. On or about April 9, 2020, it was determined that samples of the stains on the canister and the pamphlet were linked to Rathbun’s DNA profile.
In March 2020, a white supremacist organization that operated on two social media platforms was identified by law enforcement. On these platforms, users promoted mass killings in the United States and elsewhere directed against religious, racial and ethnic minorities; discussed plans to engage in these crimes themselves; discussed using various explosive and incendiary devices, including improvised devices commonly known as “Molotov cocktails”; and identified targets, such as mosques and synagogues.
On or about March 4, 2020, a user on the first social media platform specified two choices for mass killings, including “that jew nursing home in longmeadow massachusetts.” The organization’s form on the second platform included a calendar in which users could create events that listed the dates, times, and locations; invite other users to attend the event; and communicate concerning the event. The calendar listed the following entries: April 2, 2020 - “hating niggers day”; and April 3, 2020 - “jew killing day.” The calendar entry for “jew killing day” listed the event location as “Jew Nursery Home” without a specifying address. It is alleged that the user who identified the Jewish nursing home in Longmeadow, and the user who created the April 3 calendar entry, are likely the same individual.
Anyone with questions or information about this case can contact the U.S. Attorney’s Office at 888-221-6023.
The charge of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle, or other real or personal property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce provides for a mandatory minimum sentence of five years and a maximum of 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling and FBI Boston SAC Bonavolonta made the announcement today. The investigation was led by the FBI’s Western Massachusetts Joint Terrorism Task Force with valuable assistance also provided by the Longmeadow and East Longmeadow Police Departments and the Massachusetts State Police. Assistant U.S. Attorney Steven H. Breslow of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Court-Orders Final Forfeiture of over $54 Million in Connection with Billion Dollar Ponzi SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, U.S. District Judge John A. Mendez ordered the final forfeiture of $3.9 million in private jet shares bringing the total court-ordered forfeiture this year to more than $54 million related to the DC Solar Ponzi scheme, U.S. Attorney McGregor W. Scott announced.
The assets were seized in the fraud prosecution of the owners of DC Solar, a Benicia-based company, who pleaded guilty in January to charges related to a billion dollar Ponzi scheme. Monday’s order follows an earlier order, on March 24, ordering the final forfeiture of 83 seized assets worth more than $50 million. In total, $120 million in assets have been forfeited so far by the defendants in this investigation and prosecution, which has resulted in the largest criminal forfeiture in the history of the Eastern District of California.
Jeff Carpoff, 49, of Martinez, pleaded guilty on Jan. 24 to conspiracy to commit wire fraud and money laundering. His wife, Paulette Carpoff, 46, pleaded guilty the same day to conspiracy to commit an offense against the United States and money laundering. According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers and promoted as providing emergency power to cellphone towers and lighting at sporting events. A significant incentive for investors were generous federal tax credits due to the solar nature of the mobile units.
The conspirators pulled off their scheme by selling solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist.
U.S. Attorney Scott stated: “This billion dollar Ponzi scheme hurt investors and took money from the United States Treasury. This case represents not only the largest criminal fraud scheme in the history of the District, it also represents the District’s largest criminal forfeiture. All of the more than $120 million in forfeited assets will be returned to the victims. These final forfeiture orders make clear that criminals engaged in fraud risk their freedom and won’t be able to profit from their crimes because federal investigators and prosecutors will make every effort to locate and seize their ill-gotten fortunes to help make victims whole.”
The forfeitures in this investigation included the seizure and auction of 148 of the Carpoffs’ luxury and collector vehicles that resulted in recouping over $8.2 million for victims. Jeff and Paulette Carpoff used money from the scheme to pay for a minor-league professional baseball team and a NASCAR racecar sponsorship; to purchase luxury real estate in California, Nevada, the Caribbean, Mexico, and elsewhere; a subscription private jet service; a suite at a professional football stadium; and jewelry.
Four defendants have previously pleaded guilty to federal criminal charges related to the fraud scheme since October 2019. Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges on Oct. 22, 2019. Robert A. Karmann, 53, of Clayton, pleaded guilty to related charges on Dec. 17, 2019. Ryan Guidry, 53, of Pleasant Hill, pleaded guilty to related charges on Jan. 14. A seventh co-conspirator is scheduled to plead guilty on June 16. The investigation into the fraud remains ongoing.
This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.
Jeff and Paulette Carpoff are scheduled to be sentenced by U.S. District Judge John A. Mendez on May 19. Jeff Carpoff faces a maximum statutory penalty of 30 years in prison. Paulette Carpoff faces a maximum statutory penalty of 15 years in prison. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Baltimore Doctor to Pay $436,000 to the United States to Resolve False Claims Act Allegations Relating to Medically Unnecessary ProceduresRead the Press Release
Baltimore, Maryland – Ebenezer Quainoo, M.D., an internist in Baltimore, Maryland, who operates a medical practice known as Baltimore Health Care, P.C., has agreed to pay the United States $436,000 to settle allegations that he submitted false claims to the United States for medically unnecessary autonomic nervous function tests and trigger point injections with the use of ultrasound guidance.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
In his practice, Dr. Quainoo administered peripheral autonomic nervous function tests and he performed trigger point injections using ultrasound guidance. Autonomic nervous function disorders are relatively uncommon disorders and tests conducted to determine such disorders should be done only after a clinician suspects an autonomic nervous function disorder. Furthermore, such tests should be conducted only one time per beneficiary, with the necessary equipment, and only by clinicians with specialized training to administer and interpret these tests.
Trigger point injections may be indicated to treat patients with localized muscle pain in places where there are palpable and painful knots or nodules, but only after non-invasive medical management, such as muscle relaxers, topical analgesics and physical therapy, prove unsuccessful.
According to the settlement agreement, from July 24, 2014 to November 30, 2018, Dr. Quainoo submitted claims to Medicare for medically unnecessary autonomic nervous function tests and trigger point injections using ultrasound guidance. The United States alleged that autonomic nervous function tests were not medically necessary because Dr. Quainoo lacked the necessary equipment to conduct the tests, the patients did not have an autonomic nervous function disorder before the test was conducted, Dr. Quainoo lacked the specific training to conduct such tests, and he only used the tests to monitor patient symptoms, not make any clinical decisions about future patient care.
As to the trigger point injections, the United States alleged that these procedures were not medically necessary because Dr. Quainoo failed to document a muscular knot or nodule before the patient underwent the injections, Dr. Quianoo failed to exhaust conservative treatments or therapy before performing the injections, and ultrasound guidance was not needed to perform the injections because the site of the muscle knot should be palpable; otherwise, there is no indication to perform the treatment.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Dr. Quainoo, nor a concession by the United States that its claims are not well founded.
The civil settlement reached by the U.S. Attorney’s Office for the District of Maryland arose from an initiative launched by the U.S. Attorney’s Office, which involves the use of specialized resources and personnel to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the affected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter is appropriate for enforcement under the False Claims Act.
United States Attorney Robert K. Hur commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Thomas Corcoran and Neil White, who handled the case.
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Attorney General William P. Barr’s Statement on Religious Practice and Social Distancing; Department of Justice Files Statement of Interest in Mississippi Church CaseRead the Press Release
WASHINGTON – Attorney General William P. Barr issued the following statement:
"In light of the COVID-19 pandemic, the President has issued guidelines calling on all Americans to do their part to slow the spread of a dangerous and highly contagious virus. Those measures are important because the virus is transmitted so easily from person to person, and because it all too often has life-threatening consequences for its victims, it has the potential to overwhelm health care systems when it surges.
To contain the virus and protect the most vulnerable among us, Americans have been asked, for a limited period of time, to practice rigorous social distancing. The President has also asked Americans to listen to and follow directions issued by state and local authorities regarding social distancing. Social distancing, while difficult and unfamiliar for a nation that has long prided itself on the strength of its voluntary associations, has the potential to save hundreds of thousands of American lives from an imminent threat. Scrupulously observing these guidelines is the best path to swiftly ending COVID-19’s profound disruptions to our national life and resuming the normal economic life of our country. Citizens who seek to do otherwise are not merely assuming risk with respect to themselves, but are exposing others to danger. In exigent circumstances, when the community as a whole faces an impending harm of this magnitude, and where the measures are tailored to meeting the imminent danger, the constitution does allow some temporary restriction on our liberties that would not be tolerated in normal circumstances.
But even in times of emergency, when reasonable and temporary restrictions are placed on rights, the First Amendment and federal statutory law prohibit discrimination against religious institutions and religious believers. Thus, government may not impose special restrictions on religious activity that do not also apply to similar nonreligious activity. For example, if a government allows movie theaters, restaurants, concert halls, and other comparable places of assembly to remain open and unrestricted, it may not order houses of worship to close, limit their congregation size, or otherwise impede religious gatherings. Religious institutions must not be singled out for special burdens.
Today, the Department filed a Statement of Interest in support of a church in Mississippi that allegedly sought to hold parking lot worship services, in which congregants listened to their pastor preach over their car radios, while sitting in their cars in the church parking lot with their windows rolled up. The City of Greenville fined congregants $500 per person for attending these parking lot services – while permitting citizens to attend nearby drive-in restaurants, even with their windows open. The City appears to have thereby singled churches out as the only essential service (as designated by the state of Mississippi) that may not operate despite following all CDC and state recommendations regarding social distancing.
As we explain in the Statement of Interest, where a state has not acted evenhandedly, it must have a compelling reason to impose restrictions on places of worship and must ensure that those restrictions are narrowly tailored to advance its compelling interest. While we believe that during this period there is a sufficient basis for the social distancing rules that have been put in place, the scope and justification of restrictions beyond that will have to be assessed based on the circumstances as they evolve.
Religion and religious worship continue to be central to the lives of millions of Americans. This is true more so than ever during this difficult time. The pandemic has changed the ways Americans live their lives. Religious communities have rallied to the critical need to protect the community from the spread of this disease by making services available online and in ways that otherwise comply with social distancing guidelines.
The United States Department of Justice will continue to ensure that religious freedom remains protected if any state or local government, in their response to COVID-19, singles out, targets, or discriminates against any house of worship for special restrictions."
The City has since stated it will drop the fines, but will continue to enforce the order.
Artículo De Opinion: El Fiscal Federal Exhorta Al Publico A Denunciar Fraudes Relacionados Con La Covid-19Read the Press Release
La Oficina del Fiscal Federal de los Estados Unidos para el Distrito de Puerto Rico y todos los oficiales de ley y orden federal están coordinando sus esfuerzos para evitar que los ciudadanos de Puerto Rico sean víctimas de fraudes y otros actos ilegales durante la pandemia de coronavirus, e investigarán y procesarán todos los casos de fraudes y esquemas relacionados con el coronavirus. En el día de hoy hemos circulado a nuestros fiscales y a las agencias de ley y orden federal unas guías de procesamiento criminal específicas para los delitos relacionados a la COVID-19.
Lamentablemente, muchos ciudadanos son víctimas de esquemas de fraude todos los días. Nuestras oficinas están trabajando para investigar y procesar todos los esquemas relacionados con el coronavirus que están diseñados para defraudar a los ciudadanos de Puerto Rico y aprovecharse del miedo que naturalmente puedan tener a contagiarse con esta terrible enfermedad. Nuestra misión es asegurarnos de que todos los residentes de Puerto Rico estén a salvo de los criminales que pretenden enriquecerse ilegalmente durante estos tiempos difíciles.
Aunque esta crisis ha demostrado la valentía, amor y heroísmo de la mayoría de los que viven en Puerto Rico, siempre habrá algunas personas que intentarán obtener ganancias durante un momento de emergencia. Nuestras oficinas no tolerarán a quienes explotan el miedo de nuestros ciudadanos más vulnerables. Juntos protegeremos la seguridad de nuestra isla durante la pandemia de COVID-19. Estaremos atentos para detectar, investigar y procesar cualquier esquema de fraude relacionado con el coronavirus. Y, a medida que la isla se recupere del daño causado por el huracán María y los temblores del 6 y 7 de enero, nuestras oficinas también coordinarán para investigar y enjuiciar a cualquier persona que lleve a cabo esquemas de fraude relacionados con los esfuerzos de socorro en casos de desastre.
Desafortunadamente, durante los tiempos difíciles, los criminales intentan aprovecharse de las víctimas desprevenidas. Queremos que estos criminales sepan que no se tolerará que se aprovechen de ésta crisis. Cualquier intento de hacerlo será investigado y procesado rápidamente. Para enfrentar los esquemas de fraude relacionados con el coronavirus, el Fiscal General de los Estados Unidos William Barr ha ordenado a los fiscales federales de los Estados Unidos y sus oficinas a priorizar las investigaciones y el enjuiciamiento de los esquemas de fraude relacionados con el coronavirus.
Hemos actuado rápidamente para identificar y atajar posibles vías de fraude. Una vía de fraude que estamos evaluando activamente es el acaparamiento de artículos médicos vitales y equipos de protección personal, incluidas máscaras faciales N-95, máscaras quirúrgicas y guantes, y dispositivos desinfectantes, con el fin de revender estos artículos para obtener ganancias inesperadas a expensas de la seguridad pública, salud y bienestar de nuestros conciudadanos. El acaparamiento y el aumento de precios frustran los heroicos esfuerzos de nuestros profesionales de la salud que luchan contra esta pandemia.
Del mismo modo, no toleraremos casos de fraude, incluida la venta de kits de prueba falsos de coronavirus, fraudes en las redes sociales, correos electrónicos de phishing que soliciten dinero, esquemas de medicamentos recetados o cualquier otro intento de aprovecharse de la vulnerabilidad de nuestros ciudadanos. No podemos permitir, y no permitiremos, que los oportunistas generen temor en nuestros ciudadanos. Todos podemos ser víctimas potenciales de estos criminales. Sin embargo, tengan la seguridad de que nuestras oficinas investigarán y procesarán a cualquier persona que explote o intente explotar a nuestros ciudadanos vulnerables durante esta crisis.
Solicitamos su ayuda para informar cualquier comportamiento sospechoso. Si sospecha de fraude relacionado con el coronavirus o los esfuerzos de ayuda en caso de desastre relacionados con los temblores de enero, infórmelo a través del enlace en el Centro Nacional para el Fraude de Desastres (NCDF) https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form o la Línea Directa de NCDF al 866-720-5721. Los informes de sospecha de aumento de precios deben incluir detalles del nombre y la ubicación del comerciante, fecha y hora de compra, método de pago, recibos, precio del artículo en días previos al aumento repentino de precios y el precio que pagó. Informe a sus familias y vecinos sobre nuestros esfuerzos de prevención de fraude y que haremos nuestra parte para investigar y procesar las irregularidades.
Puedes encontrar más información sobre estos esquemas de fraude en los siguentes enlaces:
- https://www.justice.gov/coronavirus
- https://www.justice.gov/disaster-fraud
- https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
- https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form
14 April 2020
West Haven Man Sentenced to More Than 3 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
New Haven – John H. Durham, United States Attorney for the District of Connecticut, announced that DENZIL STEWART, 25, of West Haven, was sentenced today by U.S. District Judge Robert N. Chatigny to approximately 37 months of imprisonment, time already served, and three years of supervised release, for firearm and drug possession offenses.
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 February 2017, ATF special agents and task force officers made three controlled purchases of narcotics from Stewart. Two of the purchases involved heroin and the third involved both heroin and crack cocaine.
On March 2, 2017, investigators conducted a court-authorized search of a West Haven apartment where Stewart was staying and found a loaded .22 caliber semi-automatic pistol, approximately 90 grams of cocaine, more than 160 grams of marijuana, approximately166 grams of Psilocybin mushrooms, a quantity of oxycodone, items used to package narcotics for street sale, and $6,386 in cash. Stewart was arrested on state charges at that time.
Stewart, who was released on bond in his state case, was arrested on a federal criminal complaint on March 23, 2017. A search of Stewart’s residence on that date revealed a quantity of marijuana.
In December 2010, Stewart was convicted in Florida of burglary and attempted burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Stewart has been detained since his federal arrest. On October 9, 2019, he pleaded guilty to one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute cocaine.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the West Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Joseph Vizcarrondo and Brian Leaming.
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.
United States Files Injunction Action Against Long Island-Based Lead Paint Removal ContractorRead the Press Release
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and Peter D. Lopez, Regional Administrator of the U.S. Environmental Protection Agency, Region 2 (EPA), announced today that the United States has filed a civil lawsuit against Precision Consulting Inc., in New Hyde Park, New York and its principal, Wayne Gladney, of Queens Village, New York, for violating the Toxic Substances Control Act. The suit seeks preliminary and permanent injunctive relief preventing the defendants from performing lead-based paint abatements and renovations in the New York City area in violation of federal law.
Congress enacted the Toxic Substances Control Act (“TSCA”) in 1976 in response to a finding that people and the environment are exposed each year to a large number of potentially harmful chemical substances, including lead. Lead is commonly found in paints used in residences built prior to 1977. Its ingestion, even in small quantities, can cause serious health problems, including hypertension, kidney failure and infertility. Children six years and younger are the most vulnerable to the harmful effects of lead. Lead poisoning in that age group can lead to intelligence quotient deficiencies, reading and learning disabilities, impaired hearing, reduced attention span, hyperactivity and behavior problems. In adults, lead exposure can cause a decrease in renal function, spontaneous abortions and preterm birth. Lead dust may also be a trigger for asthma.
Property owners and managing agents typically hired the defendants to perform lead-based paint abatements or renovations following notification from the New York Department of Health and Mental Hygiene (“Department of Health”) when a child residing at the property had an elevated blood lead level.
As alleged in the complaint, since 2012, Precision and Gladney have repeatedly performed lead-based paint abatements and renovations in the New York City metropolitan area in violation of TSCA and its implementing regulations.
The complaint further alleges that the defendants have performed more than two dozen unlawful abatements at residences in New York City since 2012. Between March 2017 and March 2020, defendants repeatedly violated TSCA and its implementing regulations, the Abatement Rule and Renovation, Repair and Painting Rule, by failing to assign a certified supervisor to oversee the abatements; failing to follow post-abatement clearance procedures; failing to ensure that a certified abatement worker perform the abatements; and failing to obtain EPA certification prior to performing at least one renovation. Defendants continue to perform abatements and host websites promoting their abatement business in which they represent that they have expertise in compliance with laws and regulations related to abatement.
In performing unlawful abatements and renovations, defendants have placed the public, and particularly children, at risk of lead exposure.
“The United States filed this action to protect children and their families from defendants’ improper and unsafe lead-based paint abatements and renovations,” stated United States Attorney Donoghue. “This Office seeks an injunction to end these practices, demonstrating its commitment to protecting the public’s health from those who act outside the law.”
“Holding businesses and individuals accountable for flouting lead paint laws can serve as an effective deterrent to those who may otherwise seek to cut corners,” stated EPA Regional Administrator Lopez. “By not complying with EPA rules designed to ensure that lead paint activities are conducted by properly trained workers, the defendants put the public, including young children with documented elevated blood lead levels, at risk in their own homes.”
The case is being handled by Assistant U.S. Attorney Shana Priore of the U.S. Attorney’s Office for the Eastern District of New York, with the assistance of Assistant Regional Counsel Stuart Keith of EPA’s Regional Office, and Demian Ellis, Acting Chief of Toxics Compliance Section in the Pesticides and Toxic Substances Compliance Branch of EPA's Enforcement and Compliance Assurance Division.
The Defendants:
PRECISION CONSULTING INC.
New Hyde Park, New YorkWAYNE GLADNEY
Queens Village, New YorkE.D.N.Y. Docket No: 20-CV-1794
United States Attorneys Stuart and Powell Launch Statewide Election Fraud Task ForceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart for the Southern District of West Virginia and United States Attorney Bill Powell for the Northern District of West Virginia today announced the formation of the West Virginia Election Fraud Task Force to identify, investigate and prosecute fraud related to the 2020 West Virginia election including the Primary Election scheduled for June 9, 2020.
West Virginia has more than 1.2 million registered voters eligible to participate in the June 9th Primary Election. There are more than 1,700 polling locations available throughout the state for in-person voting on election day.
The West Virginia Election Fraud Task Force will be led by Assistant United States Attorneys from both the Southern and Northern Districts of West Virginia, Special Agents from the Federal Bureau of Investigation (FBI), and investigators from the West Virginia Secretary of State’s Office. Assistant United States Attorney (AUSA) Erik Goes has been appointed to serve as the District Election Officer (DEO) for the Southern District of West Virginia and AUSA Stephen D. Warner has been designated as the DEO for the Northern District of West Virginia. The AUSAs are responsible for overseeing the federal response to any complaints of election fraud and voting rights abuses in consultation with state authorities, the FBI, and Justice Department headquarters.
“Free and fair elections are the foundations of liberty and freedom,” said United States Attorney Stuart. “Election fraud has always been a priority for the Department of Justice. This year, with the national emergency related to coronavirus and the increase in social distancing, social media, absentee voting and mail in ballots, it is more important than ever that we use every resource available to ensure that every vote is counted and every vote is legitimate. I look forward to working with the Election Fraud Task Force and U.S. Attorney Powell on this important effort.”
“Compliance with our election laws is extraordinarily important to our democratic way of life. It is my privilege to work with my colleague, U.S. Attorney Mike Stuart and our state election officers. We are committed to the enforcement of our laws so that the election is fair and above reproach,” said Bill Powell, U.S. Attorney, Northern District of West Virginia.
"Americans have a right to expect fair, open and honest elections: it’s a cornerstone of our democracy," said FBI Pittsburgh Acting Special Agent in Charge Eugene Kowel. "We know we have adversaries, foreign and domestic, who are very aggressive and have an interest in providing disinformation to disrupt our political process. That's why the FBI, along with its state, local and other federal partners, will continue to work together to make sure the integrity of our elections is secure."
"I am very pleased to join U.S. Attorneys Stuart and Powell in this effort to help deter and prosecute election fraud in West Virginia," said WV Secretary of State Mac Warner. "These are extraordinary times calling for an extraordinary partnership to protect the integrity of our elections and to maintain confidence among the voters."
According to Secretary Warner, the use of absentee ballots could present additional opportunities for voter fraud during an election. Every voter in West Virginia qualifies for an absentee ballot for the 2020 Primary Election due to the heightened precautions of the coronavirus pandemic. In-person voting remains an option for voters during the early voting period and on Election Day, and local election officials are using every precaution to keep voters and poll workers safe. However, due to the current COVID-19 pandemic, substantial increases in the use of absentee-by-mail ballots is anticipated during the June 9th Primary Election.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on June 9, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorneys Stuart and Powell stated that AUSAs/DEOs Goes and Warner will be on duty while the polls are open. AUSA Goes can be reached at 304-345-2200 and AUSA Warner can be reached at 304-636-1739.
In addition, the FBI will have Special Agents available to receive allegations of election fraud and other election abuses on June 9, 2020. The FBI can be reached by the public at 1-800-CALL-FBI (1-800-225-5342).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by e-mail to [email protected] or by complaint form at https://www.justice.gov/crt/contacting-voting-section.
Follow us on Twitter: SDWVNews and USAttyStuart
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United States Attorney Michael Bailey and IRS Warn of Schemes Tied to Economic Impact PaymentsRead the Press Release
PHOENIX, Ariz. – The United States Attorney’s Office for the District of Arizona and the Internal Revenue Service – Criminal Investigation (IRS-CI) today urged citizens to be on high alert for scams related to the COVID-19 economic impact payments.
According to the United States Treasury Department, more than 80 million taxpayers who opted for direct deposit should see the economic impact payments in their bank accounts by tomorrow, if the payment has not already arrived. Coinciding with these payments, United States Attorney Michael Bailey and Tara Sullivan, Acting Special Agent in Charge (SAC) of the IRS-CI Phoenix Field Office, expect a surge in scam calls, emails, and text messages as criminals try to leverage the payout as an opportunity to defraud individuals.
“Our office is on the lookout for scam artists who try to steal these much-needed economic impact payments from the pockets of our citizens,” said U.S. Attorney Michael Bailey. “We are on high alert for anyone who tries to prey upon Arizonans during this pandemic, and we ask that each of you take the same approach – educate yourself about common scams, be vigilant in protecting your information, and report any attempted fraud.”
U.S. Attorney Michael Bailey and Acting SAC Tara Sullivan also remind retirees who do not normally file a tax return that no further action is needed to receive the $1,200 economic impact payment. The IRS will not contact retirees to request additional information via email, text, call, or in-person to issue an economic impact payment. The IRS is sending the economic impact payment automatically to retirees and no further action is required to receive it. Any contact asking for information regarding an economic impact payment should be considered suspicious. If contacted, retirees should hang up the phone, ignore the email, or shut the door, and report the scam to the IRS or the National Center for Disaster Fraud hotline.
“As soon as the Economic Impact Payments were announced by the government, we saw efforts from scammers trying to get their hands on this money. The IRS or Treasury will not be contacting you to verify your personal information. We don’t want any Arizonans to be victims of fraud related to these payments,” said Acting SAC Tara Sullivan.
The United States Attorney’s Office and the IRS-CI suggest the following tips to protect against economic impact payment scams:
- Don’t provide personal or banking information in response to any call, email, text, or social media request. If you do not file taxes and you are not a retiree, then you should provide your information to the IRS to register for an economic impact payment, but only do so by using the secure portal on IRS.gov.
- Never sign your economic impact payment check over to someone you don’t know and trust.
- Don’t believe anyone who says they can help you get your economic impact payment faster. Be patient. Look for updates on IRS.gov.
- Be wary of emails, texts, or calls that emphasize the phrases “Stimulus Check” or “Stimulus Payment.” The official term that is used by the IRS is economic impact payment.
- If you expect your economic impact payment to come via mail, be mindful of thieves who may take this as an opportunity to raid your mailbox. Check your mail regularly and in a timely fashion.
- If you receive an economic impact payment in the form of a physical check and someone calls you or asks you to verify information online in order to cash it, don’t believe them. Bring the check to a bank teller for verification – don’t provide that information to an unknown person, even if they claim to be from the government.
If you believe you were the target or victim of a scam related to the economic impact payments, please contact the IRS via [email protected] or the National Center for Disaster Fraud Hotline: 866-720-5721 or [email protected].
More information about the economic impact payments can be found on the Coronavirus Tax Relief page on IRS.gov. If you are a registered taxpayer who elected for direct deposit and you have not received a payment by the end of the week, visit IRS.gov to determine the status of your payment. If you are a retiree and don’t file taxes, no further action is required to receive your payment. If you are not a retiree and don’t file taxes, enter your information as a non-filer through the secure portal at IRS.gov to determine your eligibility and register for a payment.
RELEASE NUMBER: 2020-048_Economic Impact Payment Scams
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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.- Don’t provide personal or banking information in response to any call, email, text, or social media request. If you do not file taxes and you are not a retiree, then you should provide your information to the IRS to register for an economic impact payment, but only do so by using the secure portal on IRS.gov.
Union County Man Charged with Filing a False Tax Return for Tax Year 2013Read the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was charged today with allegedly filing a false tax return for tax year 2013, U.S. Attorney Craig Carpenito announced.
Anthony Salters, 57, of Hillside, New Jersey, is charged by complaint with subscribing to a false tax return. A summons was issued for Salters to appear in Newark federal court at a time to be scheduled by U.S. Magistrate Judge Leda Dunn Wettre.
According to documents filed in this case and statements made in court:
Salters was a principal of Media Allies LLC, a company that purportedly provided public relations services. On Feb. 12, 2014, Salters signed, filed, and caused to be filed with the IRS a U.S. Individual Income Tax Return, Form 1040, for tax year 2013, which contained a written declaration that it was filed under penalty of perjury and which falsely stated that Salters’ business income was zero and his total income was zero.
Salters and Media Allies had substantial gross receipts in calendar year 2013. Checks totaling $104,411 made payable to Media Allies were deposited into a Media Allies bank account for which Salters was the sole authorized signer. Payors of those checks included the City of Orange Township, the Paterson Municipal Utilities Authority, the Newark Housing Authority, a political campaign committee, and a company associated with a camp where a program was to be conducted for high school football teams affiliated with Newark public schools.
The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Cari Fais and J Fortier Imbert of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Repatriates $300 Million to Malaysia in Proceeds of Funds Misappropriated from 1Malaysia Development BerhadRead the Press Release
The Department of Justice announced today that it has repatriated to Malaysia approximately $300 million (RM 1.292 billion) in additional funds misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
Combined with other funds that the department previously returned to Malaysia in May 2019, the United States has returned or assisted Malaysia in recovering over $600 million (RM 2.6 billion) of funds misappropriated from 1MDB. The department’s efforts to recover funds misappropriated from 1MDB are continuing.
In 2019, the U.S. District Court for the Central District of California entered judgments forfeiting more than $700 million in assets acquired by Low Taek Jho, aka Jho Low, and his family located in the United States, the United Kingdom and Switzerland. To date, the United States has recovered or assisted in the recovery of more than $1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.
“We are pleased to make this latest repatriation of an additional $300 million in stolen 1MDB funds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The payment reflects the United States’ continuing commitment to the Malaysian people to hunt down, seize, forfeit, and return assets that were acquired in connection with this brazen scheme.”
“The repatriation of these stolen funds to the citizens of Malaysia is the result of the tireless efforts of prosecutors and federal agents to prevent foreign kleptocrats and their associates from using the United States as a playground where they can enjoy the fruits of their pilfered wealth,” said U.S. Attorney Nick Hanna of the Central District of California. “The amount of money stolen from the people of Malaysia is staggering, and we have been relentless in recovering assets that always should have been used for their benefit.”
“The FBI’s International Corruption Squads are dedicated to protecting the United States from criminals attempting to benefit from our economy using their illicit, ill-gotten funds,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The repatriation announced today is a direct result of an FBI international corruption investigation, conclusively demonstrating that criminals will not be allowed to prosper in the United States. This money is now being returned to its rightful place – the country and people of Malaysia.”
“This extraordinary sum of money is going back to the people of Malaysia where it belongs and where it can finally be used for its original intended purpose—to better the lives of everyday Malaysians,” said Chief Don Fort of IRS-Criminal Investigations (IRS-CI). “Mr. Low attempted to launder these assets through multiple international jurisdictions and a web of shell corporations, but his greed finally caught up with him. This case is a model for international cooperation in significant cross-border money laundering investigations.”
According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people. The assets subject to the 2019 judgments include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy, Joshua L. Sohn and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys John Kucera, Michael R. Sew Hoy and Steven R. Welk of the Central District of California are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.
The department also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Repatriates $300 Million to Malaysia in Proceeds of Funds Misappropriated from 1MDB Investment FundRead the Press Release
LOS ANGELES – The Department of Justice announced today that it has repatriated to Malaysia approximately $300 million in additional funds misappropriated from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and laundered through financial institutions in several jurisdictions, including the United States, Switzerland, Singapore and Luxembourg.
Combined with other funds that the department previously returned to Malaysia in May 2019, the United States has returned or assisted Malaysia in recovering more than $600 million misappropriated from 1MDB. The department’s efforts to recover funds misappropriated from 1MDB are continuing.
In 2019, a federal judge in Los Angeles entered judgments forfeiting more than $700 million in assets acquired by Low Taek Jho, aka Jho Low, and his family located in the United States, the United Kingdom and Switzerland. To date, the United States has recovered or assisted in the recovery of more than $1 billion in assets associated with the 1MDB international money laundering and bribery scheme. This represents the largest recovery to date under the department’s Kleptocracy Asset Recovery Initiative and the largest civil forfeiture ever concluded by the Justice Department.
“The repatriation of these stolen funds to the citizens of Malaysia is the result of the tireless efforts of prosecutors and federal agents to prevent foreign kleptocrats and their associates from using the United States as a playground where they can enjoy the fruits of their pilfered wealth,” said United States Attorney Nick Hanna. “The amount of money stolen from the people of Malaysia is staggering, and we have been relentless in recovering assets that always should have been used for their benefit.”
“We are pleased to make this latest repatriation of an additional $300 million in stolen 1MDB funds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The payment reflects the United States’ continuing commitment to the Malaysian people to hunt down, seize, forfeit, and return assets that were acquired in connection with this brazen scheme.”
“The FBI’s International Corruption Squads are dedicated to protecting the United States from criminals attempting to benefit from our economy using their illicit, ill-gotten funds,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The repatriation announced today is a direct result of an FBI international corruption investigation, conclusively demonstrating that criminals will not be allowed to prosper in the United States. This money is now being returned to its rightful place – the country and people of Malaysia.”
“This investigation sends a clear message that criminals cannot evade law enforcement authorities by laundering money through multiple international jurisdictions and a web of shell corporations,” said Ryan L. Korner, the Special Agent in Charge for IRS Criminal Investigation in Los Angeles. “This case represents a model for international cooperation in significant cross-border money laundering investigations. We are proud to have worked alongside our domestic and international law enforcement partners on this complex financial investigation, and to be able to return the stolen funds to the Malaysian people.”
According to the civil forfeiture complaints filed in United States District Court in Los Angeles, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment, and its funds were intended to be used for improving the well-being of the Malaysian people. The assets subject to the 2019 judgments include high-end real estate in Beverly Hills, New York and London; a luxury boutique hotel in Beverly Hills; and tens of millions of dollars in business investments that Low allegedly made with funds traceable to misappropriated 1MDB monies.
The FBI’s International Corruption Squads in New York City and Los Angeles and the IRS-CI are investigating the case. The cases that led to the recoveries in the 1MDB matter are being litigated by Assistant United States Attorney Steven R. Welk, Chief of the Asset Forfeiture Section; Assistant United States Attorneys John Kucera and Michael R. Sew Hoy of the Asset Forfeiture Section; and Deputy Chief Woo S. Lee and Trial Attorneys Barbara Levy, Joshua L. Sohn and Jonathan Baum of the Criminal Division’s Money Laundering and Asset Recovery Section. The Office of International Affairs at the Department of Justice is providing substantial assistance.
The Department of Justice also appreciates the significant assistance provided by the Attorney General’s Chambers of Malaysia, the Royal Malaysian Police, the Malaysian Anti-Corruption Commission, the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General and the Federal Office of Justice of Switzerland, the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the United States.
U.S. Attorney’s Office Partners with Meals on Wheels in Wake County to Stop Coronavirus (COVID-19) FraudRead the Press Release
RALEIGH – The U.S. Attorney’s Office for the Eastern District of North Carolina continues to promote the Department of Justice’s (DOJ) Elder Justice Initiative (EJI) throughout the Wake County area. On April 14, 2020, the Eastern District partnered with Meals on Wheels in Wake County to conduct outreach to approximately 1,300 seniors in the area to raise awareness about Coronavirus (COVID-19) fraud.
Below are some facts shared with the community about how to protect against becoming a victim of COVID-19 scams:
- Hang up on robocalls. Scammers are using illegal robocalls to pitch everything from scam Coronavirus treatments to work-at-home schemes.
- Verify information. Contact trusted sources to confirm information is correct. For the most up to date information about Coronavirus, visit the Centers for Disease Control and Prevention (CDC) at www.cdc.gov.
- Know from whom you are buying. Online sellers may claim to have in-demand products like cleaning, household, and health and medical supplies when, in fact, they do not.
- Do not click on links from sources you do not trust. They could download malware onto your computer or device.
- Do your homework. Do not let anyone rush you into making a donation. If someone wants donations in cash, by gift card, or by wiring money, do not do it.
If you believe you are a victim of a scam, call local law enforcement and file a complaint online or by phone:
National Center for Disaster Fraud (NCDF): (866) 720-5721
www.IC3.gov (cyber)
www.cdc.gov
www.coronavirus.gov
www.FDA.gov
www.ftc.gov/coronavirus
www.justic.gov/usao-ednc
The mission of the Elder Justice Initiative is to support and coordinate DOJ’s enforcement and programmatic efforts to prevent and combat elder abuse, neglect, financial exploitation and scams that target our nation’s seniors by promoting justice for older adults; helping older victims and their families; enhancing state and local efforts through training and resources; and supporting research to improve elder abuse policy and practice.
For more information about DOJ’s efforts to prevent and combat elder abuse, please visit the Elder Justice Website at https://www.justice.gov/elderjustice. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1-855-4VICTIM (1-855-4842846), or contact the Elder Justice Coordinator at the U.S. Attorney’s Office for the Eastern District of North Carolina at (919) 856-4530.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorneys Moran and Hyslop announce nearly $11 million to address COVID-19 pandemic in Washington StateRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington and William D. Hyslop of the Eastern District of Washington today announced that the state of Washington received almost $11 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grants, to the Washington Department of Commerce and the city of Olympia, are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. An additional $5.7 million has been allocated for other local jurisdictions in Washington. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
“Our first responders continue to answer the call every single day, to keep our communities safe, while risking exposure to this dangerous virus,” said U.S. Attorney Moran. “The Department of Justice provides this funding with significant flexibility, so that state and local departments can use it in the ways that best benefit their officers and their community.”
“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.
U.S. Attorney seeks help from local hospitals in reporting hoarding and price-gouging of medical suppliesRead the Press Release
LEXINGTON, Ky. — U.S. Attorney Robert M. Duncan, Jr. sent a letter to hospital executives in Eastern Kentucky on Monday, asking them to provide information to law enforcement about individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding or price gouging.
“Our Office is focused on deterrence, investigation, and prosecution of wrongdoing related to the COVID-19 pandemic—including those engaged in hoarding and/or price-gouging critical medical supplies,” said U.S. Attorney Duncan. “We are asking for the help of hospital and medical professionals in identifying individuals and companies that may have acquired vital medical supplies in excess of what would reasonably be used, or for the purpose of charging exorbitant prices. We are committed holding accountable those who are preventing valuable resources being provided to hospitals and other medical professionals who desparately need them.
The letter was sent to hospitals and healthcare systems in Eastern Kentucky, as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud. U.S. Attorney Duncan appointed AUSA Paul McCaffrey to lead the Office’s COVID-19 response. The Office is also partnering with the U.S. Attorney’s Office for the Western District of Kentucky, the FBI Louisville Field Division, and the Kentucky Attorney General’s Office as part of the Kentucky Coronavirus Fraud Task Force.
U.S. Attorney Duncan encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Duncan’s letter to hospital leadership below.
U.S. Attorney Duncan's Letter to Hospitals###
U.S. Attorney and IRS Special Agent in Charge Urge Public to Watch Out for Scams and Fraud Involving COVID-19 Economic Impact PaymentsRead the Press Release
SAN FRANCISCO – U.S. Attorney David L. Anderson and Kareem Carter, Special Agent in Charge of the IRS Criminal Investigation today warned the public that scammers may try to target the anticipated COVID-19 economic impact payments and urged everyone to be on the lookout for possible scams.
U.S. Attorney Anderson and Special Agent in Charge Carter made the announcement today in an effort to arm taxpayers with the information necessary to avoid being victimized by criminals who may view the forthcoming payments as an opportunity for fraud.
COVID-19 economic impact payments will be issued over the coming days and weeks. For most Americans, the payment will come in the form of a direct deposit into their bank account. However, for those taxpayers that traditionally receive tax refunds via paper check, including many elderly citizens and those who do not use banking services, the payments will be issued as a paper check. All taxpayers—whether they expect to receive a direct deposit or a paper check—may be the target of fraud.
“We must all remain alert,” said U.S. Attorney Anderson. “Scammers will always try to think of creative ways to take your money from you. With the help of an alert public, we can bring them to justice before they can profit from their illegal schemes.”
“As this deadly virus continues to impact every part of our lives, scammers are looking to take advantage of all the chaos,” said Special Agent in Charge Carter. “They will prey on our hopes and fears to steal your money, your personal information, or both.”
U.S. Attorney Anderson and Special Agent in Charge Carter offered the following information about how the COVID-19 related economic impact payments will be issued and tips on how to spot and avoid scams:
- 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, debit account, or PayPal 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.
- Reports are also swirling about bogus checks. If you receive a “check” in the mail now, it’s a fraud - it will take the Treasury a few weeks to mail those 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 a fraud.
Additional information about the pandemic and the Department’s role in combatting related illegal activities can be found here: www.justice.gov/coronavirus.
If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home through a number of platforms. Go to:
The National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected], or
Report the incident to IRS Criminal Investigation at [email protected]
U.S. Attorney and IRS Advise Caution Regarding IRS Economic Impact PaymentsRead the Press Release
OKLAHOMA CITY, OK – The Internal Revenue Service (IRS) will soon begin making COVID-19 economic impact payments. For most Americans, this will be a direct deposit into your bank account. For the unbanked, elderly or other groups who have traditionally received tax refunds via paper check, they will receive their check in this same manner.
United States Attorney Timothy J. Downing and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Tamera Cantu want to warn local Oklahomans that criminals are well aware of these payments and will be actively attempting to steal these funds when they are most needed. Unsolicited phone calls, emails, text messages, or other communications pretending to be from the IRS are likely a scam.
"We will work with IRS-CI to vigorously pursue anyone who tries to cheat or scam Oklahomans out of their much-needed stimulus money," said U.S. Attorney Downing. "Any fraudster who is thinking about engaging in related criminal conduct should think again. We will hold them accountable to the fullest extent possible."
IRS-CI Special Agent in Charge Tamera Cantu of the Dallas Field Office offers the following information and tips to spot a scam and how citizens can report fraudulent activities:
- The IRS will NOT call and ask you to verify your payment details. Do NOT give your bank account, debit account, or PayPal account information to anyone—even if someone claims it's necessary to get your check. It's a scam.
- If you receive a call, do NOT engage with scammers, even if you want to tell them that you know it's a scam. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal identifying information or clicking on links, delete these texts and emails. Do NOT click on any links in those texts or emails.
- If you receive a "check" for an odd amount (especially one with cents), or a check that requires you to verify the check online or by calling a number, it’s a scam.
Special Agent in Charge Cantu warns the public, "As the agency responsible for issuing economic impact payments, the IRS unfortunately expects some bad actors to execute fraud schemes in an attempt to take advantage of the situation. Be aware that unsolicited contact from non-IRS sources could be scams and do not become a victim. Every taxpayer needs to exercise caution when choosing a return preparer or tax professional to ensure their personal and other privileged information is safeguarded."
- Remember, scammers change tactics. Callers can be aggressive and threatening. Do not be bullied into disclosing personal information or in making any payment.
- Residents of Western Oklahoma can contact the local IRS-CI field office to report violations and suspected fraud at [email protected].
U.S. Attorney Seeks Help from Healthcare Professionals in Reporting Hoarding and Price Gouging of Medical SuppliesRead the Press Release
Portland, Maine: U.S. Attorney Halsey B. Frank sent a letter to the Maine Medical Association and Maine Hospital Association today, asking them to provide information to law enforcement about individuals and companies that may be acquiring or selling scarce medical supplies for the purpose of hoarding or price gouging.
“The U.S. Attorney’s Office is focused on investigating and prosecuting those who are trying to use the current pandemic to take advantage of Mainers,” said U.S. Attorney Frank. “Law enforcement needs the assistance of medical professionals in identifying those who may have acquired crucial medical supplies in excess of what they could reasonably use, or for the purpose of charging exorbitant prices. These supplies should be in the hands of the brave healthcare workers who are putting themselves in harm’s way to protect others.”
U.S. Attorney Frank sent the letter as part of a coordinated, nationwide effort to combat coronavirus-related fraud. 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. The Department is also committed to preventing hoarding and price gouging for critical supplies during this crisis. To address this, Attorney General Barr created the COVID-19 Hoarding and Price Gouging Task Force.
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]. Members of the public in Maine are also encouraged to email [email protected] to reach the office’s Coronavirus Fraud Coordinator, Assistant U.S. Attorney Dan Perry.
Read U.S. Attorney Frank’s letter below.