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14 April 2020
Rochester Man Charged in Federal Court with Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Dixon, 38, of Rochester, NY, was arrested and charged by criminal complaint with possessing cocaine with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. The charges carry a minimum penalty of five years in prison, a maximum of life, and a fine of $1,000,000.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that according to the complaint, the defendant was arrested on March 11, 2020, at approximately 2:37 a.m., after police responded to an attempted burglary call. Upon searching Dixon, officers recovered a loaded handgun, approximately 24 grams of cocaine, and $586 in cash.
In 2004, Dixon was convicted of Robbery in the First Degree and as a result is legally prohibited from possessing a firearm.
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The criminal complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.
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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Nursing Home Chain Saber Healthcare Agrees to Pay $10 Million to Settle False Claims Act AllegationsRead the Press Release
Saber Healthcare Group LLC, and related entities, (Saber) have agreed to pay $10 million to resolve allegations that Saber violated the False Claims Act by knowingly causing certain of its skilled nursing facilities (SNFs) to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, or skilled, the Department of Justice announced today. Saber Healthcare, based in Bedford Heights, Ohio, owns and operates SNFs in seven states.
“Patients are entitled to individualized healthcare services appropriate to their specific medical needs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “When skilled nursing facilities provide rehabilitation therapy services based on maximizing revenue rather than what is necessary for their patients, we will not hesitate to hold them accountable.”
“Our office is committed to investigating and stopping healthcare fraud,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “Billing Medicare for higher-than-necessary levels of care exploits our senior citizens and undermines trust in the health care system.”
This settlement resolves allegations that Saber submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase Medicare billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of qualifying patients. The greater the patient’s needs, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients, who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged that Saber improperly established general goals that all patients should be provided with the Ultra High level of therapy, regardless of the patients’ individual therapeutic needs, and enforced that expectation by pressuring therapists to provide Ultra High therapy to each patient at nine facilities. The United States further contended that Saber established uniform expectations for Ultra High therapy in facility budgets, pressured facility directors in weekly or daily calls to ensure therapists provided the Ultra High therapy to each patient, prevented therapists from providing lower levels of therapy minutes if, in the therapists’ clinical judgment, a lower amount was warranted, caused therapists to report time spent on initial evaluations as therapy time in violation of Medicare policy, and caused therapists to report time spent providing unskilled services as time spent on skilled therapy.
The settlement covers conduct that occurred from Jan. 1, 2013 through March 31, 2017 at the following seven facilities – Chatham Health and Rehabilitation Center (Chatham, Virginia), Stratford Rehabilitation Center (Danville, Virginia), Azalea Health and Rehab Center (Wilmington, North Carolina), Emerald Health and Rehab Center (Lillington, North Carolina), Dunmore Healthcare Center (Dunmore, Pennsylvania), Amberwood Manor (New Philadelphia, Ohio), and Woodlands Health and Rehabilitation Center (Ravenna, Ohio) – and from March 1, 2016 through March 31, 2017 at the following two additional facilities – Autumn Care of Altavista (Altavista, Virginia) and Waddell Nursing and Rehab Center (Galax, Virginia).
Contemporaneous with the civil settlement, Saber has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Medicare pays for services that patients actually need,” said Special Agent in Charge Maureen R. Dixon for HHS-OIG. “We will continue working closely with our law enforcement partners to guard these vital taxpayer-funded health programs.”
The settlement announced today resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in the government’s recovery. The lawsuit was filed by Hope Wright, Laura Webb, and Deborah Edmonds, former Saber rehabilitation therapists and therapy managers. Wright, Webb, and Edmonds will receive $1,750,000 from the settlement with Saber.
This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Eastern District of Virginia, with assistance from the Department of Health and Human Services Office Inspector General.
The case is captioned United States ex rel. Wright et al. v. Saber Healthcare Holdings, LLC et al., Case No. 2:16-cv-640 (E.D. Va.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
NDTX Round-Up: April 3-9Read the Press Release
SENTENCING – CONSTANCE MARIE KELLY
On April 6, Constance Marie Kelly, 56, was sentenced via VTC to 46 months for conspiracy to commit wire fraud for her role in a $1.4 million real estate title insurance scheme. Kelly, a former employee of real estate title company American Title, admitted that she and codefendant Leonard James McMorris fraudulently transferred more than $1.4 million from American Title’s escrow accounts into bank accounts belonging to Mr. McMorris. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David Jarvis.
GUILTY PLEA – SOLOMON EMAKOJI
On April 6, Solomon Emakoji, 35, pleaded guilty to engaging in monetary transactions in property derived unlawful activity. Emakoji and an associate operated a “romance scheme” to defraud and obtain money by false pretenses. They created fake profiles on popular social media platforms, online games or apps, and dating websites to lure lonely women and men into romantic relationships. The perpetrators then would begin requesting money from the victims. Emakoji received a total of $89,185. As part of the fraud, Emakoji conspired with money agents to receive funds from victims and send it overseas via wire transfer to Nigerian bank accounts. Emakoji faces up to 10 years in federal custody. This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Nancy Larson.
SENTENCING – ALBERTO MENDOZA-ESPINOZA
On April 8, Alberto Mendoza-Espinoza, 39, was sentenced via VTC to 20 months for illegal reentry after removal from the United States. In March 2019, Mendoza-Espinoza, a non-U.S. citizen, was found living in the United States illegally. Previously, he had been deported and removed from the United States in April 2013. This case was investigated by Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Donna Max.
GUILTY PLEA – CHANSELLOR ORMON HILL
On April 8, Chansellor Ormon Hill, 25, pleaded guilty to sexual exploitation of a child. Hill entered the family restroom at the City of Grapevine’s Recreation Center. Inside the restroom, Hill induced a minor child to take sexually explicit photos. Using his Apple iPhone, Hill produced images of the unclothed minor later found in his possession. Hill faces up to 30 years in federal custody. This case was investigated by the Grapevine Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Muskogee Man Sentenced to 8 Months for Stealing Firearm from Licensed DealerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Neil Dunn a/k/a David Neil Dunn, Jr., age 20, of Muskogee, Oklahoma, was sentenced to 8 months’ imprisonment and 2 years of supervised release for Stealing A Firearm From A Federal Firearms Licensed Dealer, in violation of Title 18 United States Code Section 924(m). The charges arose from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Indictment alleged that on July 12, 2019, the defendant knowingly stole a firearm from Mike’s Outdoors, a federal firearms licensed dealer.
United States Attorney Brian J. Kuester said, “Investigations that lead to the recovery of stolen guns are obviously very important for the rightful owners. They are also critical for the safety of the community because gun violence is often carried out by criminals using stolen firearms. This investigation resulted in guns being returned to the lawful owner and a safer community.”
“All too often, firearms stolen from Federal Firearms Licensees end up in the hands of prohibited individuals,” stated ATF Special Agent in Charge Jeffrey C. Boshek II. “I am thankful these firearms were recovered quickly due to the collaborative effort of the Muskogee Police Department and ATF.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States.
Man from Albuquerque faces federal charges for allegedly shooting at cars traveling on and near I-25 through Kewa PuebloRead the Press Release
ALBUQUERQUE, N.M. – Byron Rosetta, 35, of Albuquerque, N.M., made an initial appearance today in federal court in Albuquerque on a criminal complaint charging him with assault with a dangerous weapon and discharging a firearm in the commission of a violent crime in Indian Country.
According to the criminal complaint, Rosetta, an Indian, allegedly committed the offense on the Kewa Pueblo (formerly known as the Santo Domingo Pueblo) in Sandoval County on April 5. The incident happened on State Road 22 near mile marker 2.5. Rosetta was driving a dark sedan when he passed and shot at a passing vehicle, narrowly missing the unsuspecting driver. Rosetta used a shotgun and shot birdshot pellets into the driver’s vehicle. The pellets damaged the vehicle coming very close to injuring the driver.
The criminal complaint also alleges that between February 3 and April 4 Rosetta shot at several other drivers near I-25 from his vehicle and from the roadside. Rosetta used various firearms, including a .38 caliber pistol. Several victims suffered injuries and damage to their windshields and other parts of their vehicles.
The New Mexico State Police and FBI identified Rosetta as a primary suspect, conducted surveillance, and the FBI arrested him in Albuquerque on April 11. Rosetta is currently in custody pending a detention hearing. He faces up to 10 years in prison if convicted of assault. He faces a consecutive sentence from 10 years to life in prison if convicted of discharging a firearm. A criminal complaints is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The Albuquerque office of the FBI investigated this case with assistance from the New Mexico State Police, the Sandoval County Sheriff’s Office, the Bureau of Indian Affairs, and the Drug Enforcement Administration. Assistant U.S. Attorney David P. Cowen is prosecuting the case.
Local man sentenced to prison for distributing opioids on behalf of interstate drug ringRead the Press Release
DAYTON – A Dayton man was sentenced in U.S. District Court today for selling opioids as part of an Atlanta-to-Dayton drug trafficking organization known as
“Diamond Cut” that is responsible for distributing large quantities of fentanyl and heroin in the Dayton area.James Easterling, 36, was sentenced to 60 months in prison. He is currently in custody and was sentenced via video conference from prison.
According to his plea agreement, on June 13, 2019, Easterling sold approximately 112 grams of fentanyl and heroin in Montgomery County in exchange for several thousand dollars in cash.
In February 2019, investigators received information about the Diamond Cut drug organization distributing drugs from the Saint Clair Lofts located on South Saint Clair Street in Dayton. The co-conspirators were allegedly keeping large amounts of fentanyl, heroin and several firearms in an abandoned green Ford sedan in the parking lot behind the Lofts.
The co-conspirators allegedly moved their drug operations from the Saint Clair Lofts to North Upland Avenue in March 2019.
Drug stash houses were also maintained on Homesite Drive in Harrison Township and Kipling Drive and Belmont Park North in Dayton.
Others charged in this case include: Levy K. Smith IV and Benjamin G. Vaughn. Vaughn was sentenced in March 2020 to 60 months in prison. Smith has pleaded guilty and is scheduled to be sentenced on May 12.
Vaughn was a defendant in a 2008 drug trafficking case prosecuted by this office and involving several other individuals. In that case, Vaughn was sentenced to 151 months in federal prison.
In 2018, three other Diamond Cut associates were sentenced in federal court in Dayton for drug and gun crimes. Clarence Winn, Jr. – a Dayton rap artist known as “Chaos” – was sentenced to 108 months in prison. His relative, Larry Winn, was sentenced to 60 months in prison. Darrius J. Reynolds was sentenced to 18 months in prison.
Another five alleged Diamond Cut members were prosecuted federally after a 2012 arrest. They included: Brandon Lee “Ace” Smith, Quinton “Big Mike” Clemons, Leo “Butter” Boykins, Quinten “Q” Robinson and Marcus “Roscoe” Ross.
David M. DeVillers, United States Attorney for the Southern District of Ohio, Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Montgomery County Sheriff Rob Streck and officials with the FBI’s Southern Ohio Safe Streets Task Force and Montgomery County Sheriff’s Office RANGE Task Force announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorneys Brent G. Tabacchi and Elizabeth Rabe are representing the United States in this case.
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Importers to Pay more than $5.2 Million to Resolve Allegations they Evaded Customs Duties in Violation of the False Claims ActRead the Press Release
U.S. Attorney John F. Bash of the Western District of Texas announced today that Blue Furniture Solutions, LLC, its successor XMillenium, LLC, and two of the companies’ former executives—CEO Yingqing Zeng and CFO Alex Cheng—have agreed to pay more than $5.2 million to resolve allegations that they violated the False Claims Act by evading customs duties and fees on furniture imported from China.
In July 2015, University Loft Company filed a False Claims Act qui tam action in the U.S. District Court for the Western District of Texas, Austin Division, alleging that Blue Furniture and others were importing wooden bedroom furniture into the U.S. without paying the required anti-dumping duties and other customs fees. After investigating University Loft’s allegations, the United States elected to intervene in the action.
In its complaint, the government alleged that Blue Furniture, XMillenium, Zeng, and Cheng conspired to evade millions of dollars in anti-dumping duties and customs fees by falsely describing wooden bedroom furniture imported from China as “metal” or “non-bedroom” furniture on documents submitted to U.S. Customs and Border Protection. The defendants manipulated images of their products in packing lists and invoices, and directed their Chinese manufacturers to ship furniture in mislabeled boxes and to falsify invoices to help the defendants avoid detection by authorities in the United States.
To resolve the government’s allegations, Blue Furniture and XMillenium consented to entry of a final judgment holding them jointly and severally liable to the U.S. in the amount of $4,679,987.19. Zeng and Cheng separately agreed to pay $460,000 and $90,000, respectively, to resolve their personal liability. In addition, Zeng and Cheng each pleaded guilty last year in the U.S. District Court for the District of South Carolina to criminal charges of conspiracy to defraud the U.S. in violation of 18 U.S.C. §§ 371 and 542. [United States v. Zeng et al., No. 2:19-CR-64-DCN (D.S.C.)].
“Companies that import goods from China or other foreign countries without paying the required duties and fees threaten the livelihood of American manufacturers and their workers, who are put at an unfair disadvantage relative to their foreign counterparts. My office will not hesitate to use every tool available—both criminal and civil—to make sure that these companies and their executives are held accountable,” stated U.S. Attorney Bash.
U.S. Attorney Bash commended the efforts of U.S. Customs and Border Protection, Department of Homeland Security Office of Inspector General, and U.S. Immigration and Customs Enforcement Homeland Security Investigations for their investigation of this matter. Assistant U.S. Attorney Thomas Parnham and former Assistant U.S. Attorney Susan Strawn represented the government in the civil lawsuit. The case is United States ex rel. University Loft Company v. Blue Furniture Solutions, LLC et al., Civil Action No. 1:15-CV-588-LY (W.D. Tex.).
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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.
Greece Man Arrested and Charged with Enticing A Minor to Engage in Sexual ActivityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Joseph McGrain, 49, of Greece, New York, was arrested and charged by criminal complaint with enticement of a minor to engage in sexual activity. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a $250,000 fine.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on March 27, 2020, the Greece Police Department learned that the defendant had been having a sexual relationship with a 16 year-old girl (Minor Victim) for one and a half years.
On April 1, 2020, investigators observed Facebook chat conversations between the defendant and Minor Victim on her cell phone. Among the messages, McGrain stated, “I miss our nights.” Another message stated, “Just sucks cause it's wrong but feels so good and safe with you...your right it’s wrong and it will end...thank you for that magic for the past year.” According to the complaint, the defendant and the Minor Victim had sexual relations almost daily since approximately October 2018, when she was fourteen years old, until March 26, 2020. The Minor Victim also sent McGrain numerous naked photographs of herself.
On the night of April 5, 2020, the defendant sent messages to the Minor Victim stating, “I'm a wreck, I already lost all. i told you death is my way out, If you really want it to end then tell them you set it all up and lied...I lost all and I'm just ready to die now.”
The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The criminal complaint is the result of an investigation by the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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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Georgia agency receives nearly $16 million to respond to public safety challenges from COVID-19Read the Press Release
SAVANNAH, GA: The state of Georgia has been awarded $15,840,333 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, announced by Southern District of Georgia U.S. Attorney Bobby L. Christine, was awarded to the Georgia Criminal Justice Coordinating Council (CJCC) under the Coronavirus Emergency Supplemental Funding program, authorized by the recent $850 million stimulus legislation signed by President Trump. Additional funds have been allocated for local jurisdictions in Georgia, including $750,000 targeted to agencies in the Southern District. The Justice Department is moving quickly to award grants on a rolling basis with the aim of having funds available for drawdown as soon as possible after receiving applications.
“This infusion of funding will enhance the ability of our state and local first responders amid the challenges created by the novel coronavirus pandemic,” said U.S. Attorney Christine. “We welcome the opportunity to assist these hard-working front-line public safety partners.”
“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.
Southern District communities targeted for the grants can find more information at https://bja.ojp.gov/sites/g/files/xyckuh186/files/media/document/bja-2020-18553.pdf.
Any Georgia cities or counties not specifically listed can find updated information from the CJCC at https://cjcc.georgia.gov/grants/covid-19-resources/federal-coronavirus-emergency-supplemental-funding-programThe 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.
Geneva Man Sentenced to 15 Months in Prison for Federal Gun ChargeRead the Press Release
Montgomery, Alabama – On Tuesday, April 14, 2020, Joshua Gianni Haire, a 21-year-old man from Geneva, Alabama, was sentenced to 15 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, he will be on supervised release for three years.
According to court records, in late 2018, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Alabama Law Enforcement Agency (ALEA) became aware that Haire was selling firearms from his home despite being prohibited from possessing them because he was a felon. In December 2018, the agents conducted a controlled buy of a 12-gauge shotgun from Haire and asked if he had any more firearms for sale. Haire stated that he had another shotgun, a Glock model 23 handgun, a Taurus 9mm handgun, and a box of 12-gauge shells available. Haire was ultimately indicted by a federal grand jury in September 2019 on the charge of possession of a firearm by a convicted felon and he pleaded guilty in January of this year.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Alabama Law Enforcement Agency (ALEA) investigated this case. The case was prosecuted by Assistant United States Attorney Brett Talley.
Former Pittsburgh Man Pleads Guilty to Conspiring to Distribute Cocaine and to Commit Money LaunderingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws and money laundering conspiracy, United States Attorney Scott W. Brady announced today.
Garfield Campbell, also known as “Sean Grant”, age 45, pleaded guilty to two counts before United States District Judge Marilyn J. Horan. Campbell has been detained at the Allegheny County Jail.
In connection with the guilty plea, the court was advised that Campbell participated in a conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, a Schedule II controlled substance from in and April 2017, and continuing thereafter to in and around April 2019, in the Western District of Pennsylvania and elsewhere. Campbell also plead guilty to conspiring to commit money laundering, from in and April 2017, and continuing thereafter to in and around April 2019. Specifically, Campbell was part of a conspiracy in which individuals, many of whom were born in Jamaica, mailed kilograms of cocaine from California to individuals in the Western District of Pennsylvania, including Campbell, who then arranged for its further distribution. The conspiracy also involved Campbell and others mailing packages back to the California cocaine suppliers, also through the mail. Federal agents obtained Court authorization and intercepted the communications of members of the conspiracy, including Campbell, and they also executed numerous search warrants. As part of the plea, Campbell acknowledged that he was responsible for between 15 and 50 kilograms of cocaine, and he and the government also agreed that the appropriate sentence in the case was 12 years of imprisonment.
Judge Horan scheduled sentencing for August 4, 2020. The law provides for a total sentence of up to life in prison, a fine of $10,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Brendan T. Conway and Marnie Sheehan-Balcon are prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation that led to the prosecution of Campbell. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises. In this case, the Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
Florida Passenger Arrested at Cyril E. King Airport for Smuggling 3 Kilograms of Marijuana into St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a complaint has been filed against Nathaniel Robinson for attempting to smuggle marijuana into St. Thomas. Robinson made his initial appearance in federal court Monday in St. Thomas.
According to the affidavit filed in the case, Robinson was stopped at the Cyril E. King airport after arriving in St. Thomas from Miami, FL. CBP officers then searched his luggage and found the approximately 3 kilograms of marijuana.
This case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Kyle Payne.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Florida Passenger Arrested at Cyril E. King Airport for Smuggling 15 Kilograms Marijuana into St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a complaint has been filed against Sheldon Stuart Isles for attempting to smuggle marijuana into St. Thomas. Isles made his initial appearance in federal court Monday in St. Thomas.
According to the affidavit filed in the case, Isles was stopped at the Cyril E. King airport after arriving in St. Thomas from Miami, FL. CBP officers then searched his luggage and found the approximately 15 kilograms of marijuana.
This case is being investigated by the Department of Homeland Security. It is being prosecuted by Assistant United States Attorney Kyle Payne.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Felon Charged with Illegally Possessing Firearms in Hospital Ground Area of St. ThomasRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced that a complaint has been filed charging Kenan Thomas with Felon in Possession of a Firearm.
According to the affidavit filed in this case, on April 8, 2020 Thomas fled upon seeing officers investigating multiple shootings in the Hospital Ground area of St. Thomas. Thomas allegedly hid the black bags he had been carrying in a nearby residence, and those bags contained four different weapons, as well as ammunition. According to court documents, Thomas allegedly possessed an AK-type 7.62mm pistol with an obliterated serial number; an AR-type pistol caliber .223/5.56; a Glock .45 caliber handgun and a Glock 10mm. Thomas also allegedly possessed multiple magazines found with various ammunition. Thomas is prohibited from carrying firearms, as he was previously convicted of multiple felonies in Georgia.
This case is being investigated by the Bureau of Alcohol, Tobacco, and Firearms and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorneys Kyle Payne and Nathan Brooks.
A complaint is merely a charging document, and it is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty beyond a reasonable doubt in a court of law.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – A Dominican national who previously resided in Lawrence was arrested yesterday and charged with illegal reentry.
Daniel Araujo Guerrero, 41, was charged in a criminal complaint unsealed yesterday with illegal reentry into the United States after deportation. Araujo Guerreo appeared yesterday afternoon via teleconference before Magistrate Judge M. Page Kelly, who ordered him detained pending a detention hearing scheduled for April 17, 2020.
According to the criminal complaint, in January 2016, Araujo Guerreo was convicted in federal court in Boston of identity theft and sentenced to 14 months in prison. On July 5, 2016, Araujo Guerreo was deported to the Dominican Republic.
It is alleged that, at some point, Araujo Guerreo returned to the United States. On Feb. 23, 2018, Araujo Guerreo was arrested in Lawrence on warrants for a variety of crimes including assault and battery with a dangerous weapon and drug conspiracy. He was held in custody at the Essex County House of Corrections until yesterday when he was transferred to the custody of immigration officers.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney David Tobin of Lelling’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Woman Charged in Federal Court with Assault for Spitting on A Postal Employee and Claiming to Have the CoronavirusRead 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 Melissa C. Daniels-Johnson, 39, of Buffalo, New York, was charged in a criminal complaint with assault of a federal employee and threatening to assault a federal employee. The charges carry a maximum penalty of eight years in prison.
“Any individual who threatens or attempts to use the COVID-19 virus as a weapon as alleged here deserves—and should expect—a strong dose of justice,” stated U.S. Attorney Kennedy. “For a person to spit on a public servant is beyond vile and disgusting—it is criminal. No matter who they are or what they do, the brave men and women who continue to serve others during this pandemic deserve our respect, admiration, and protection. Whether doctors, nurses, police officers, grocery clerks, letter carriers, transit workers, or anyone else providing an essential service, my message to you is simple, you have our thanks, and we have your backs.”
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, on March 19, 2020, at approximately 6:50 p.m., Postal Inspectors and Cheektowaga Police officers were called to the Cheektowaga Branch Post Office, located at 125 Galleria Drive in Cheektowaga, NY, for a report of a United States Postal Service letter carrier who had been verbally abused and spit upon by a female USPS customer. The incident occurred while the letter carrier was collecting the mail from the blue collection boxes situated in front of the Cheektowaga Post Office.
The letter carrier stated that while he was collecting mail, the defendant drove into the postal parking lot through the exit driveway, and drove against one-way traffic. He advised Daniels-Johnson that she entered the lot the wrong way. In response, she started screaming profanities at him, and threatened to cough on him to give him the Coronavirus. The manager of the Cheektowaga Branch Post Office tried to calm Daniels-Johnson and de-escalate the situation, but she remained very aggressive and abusive. As the defendant began to pull away, she pulled near the mailboxes, where the letter carrier was working, and pointed a cellphone at him and said, “This is the (expletive) right here, so you know what he looks like.” The letter carrier said the defendant told him that she was sending her husband to “(expletive) him up,” and told him that he was not going to “know what hit” him. The letter carrier said that he heard the male on the other end of the call tell Daniels-Johnson, “I don't think you should be saying things like this to a mail man.” The letter carrier said Daniels-Johnson replied with more derogatory remarks and expletives, adding that the letter carrier “ain't gonna do (expletive),” and then spit at him. The letter carrier used a mail bucket to shield his face, but the spit got all over his shorts and on his right leg. The woman sped away. The letter carrier went inside and removed his clothing. He was very concerned because of the defendant’s comment about Coronavirus.
The defendant is scheduled to make an initial appearance on April 27, 2020, before U.S. Magistrate Judge Michael J. Roemer.
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].
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski.
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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Brockton Man Pleads Guilty to Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Brockton man pleaded guilty today to being a felon in possession of a firearm.
Clive McFarlane, 36, pleaded guilty during a videoconference hearing before U.S. District Court Judge Allison D. Burroughs to one count of being a felon in possession of a firearm. Sentencing is scheduled for April 30, 2020. McFarlane was charged in September 2019.
On Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Beaverton Man Charged with Participating in $65 Million Tax Evasion Scheme Involving Area Construction CompaniesRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Beaverton, Oregon man has been charged for his role in one of the largest tax evasion schemes ever prosecuted in the District of Oregon. In this multiyear scheme, contracting companies, subcontracting companies, and their employees evaded more than $65 million in employment and income taxes owed to the IRS.
Victor Hugo Lopez-Diaz, 38, was charged by criminal information with one count of conspiring to commit tax evasion and two counts of filing false tax returns.
“Evading the payment of Medicare, Social Security, and income taxes harms every citizen,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “All business owners and their employees must file accurate tax returns with the IRS and pay all taxes required by law. Those who fail to do so will face significant consequences, including criminal prosecution, prison, and monetary penalties.”
“Employers that willfully concoct elaborate schemes to evade paying employment taxes will be held accountable by the Internal Revenue Service,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “This type of fraud does not go unnoticed by our investigators. Fraud of this variety not only impacts honest taxpayers, but significantly impacts honest competitors who follow the rules. Businesses that seek an unfair competitive advantage by cheating the Treasury of payroll taxes will always be a high priority for IRS-Criminal Investigation.”
According to court documents, from at least 2014 through February 2018, Lopez-Diaz and his conspirators are alleged to have successfully evaded their personal and employment tax obligations by cashing approximately $185 million in payroll checks at a co-conspirator’s check cashing business; using the cash to pay construction workers under the table; and filing false corporation, payroll, and individual tax returns.
Lopez-Diaz and some of his co-conspirators established subcontracting companies to facilitate their tax evasion conspiracy. Along with the owners and operators of local contracting companies, they knowingly hired unlicensed work crews, paid them cash under the table, and evaded payroll taxes by not putting the workers on their regular payroll systems.
Throughout the conspiracy, Lopez-Diaz also functioned as a payroll check casher for other companies. He used an alias, Miguel Lopez, to cash payroll checks and conceal his identity and gave the cash received to the leaders of off-the-books work crews and to contractors who used the cash to pay other employees surreptitiously.
Lopez-Diaz’s first appearance in federal court is scheduled for April 21, 2020.
If convicted, Lopez-Diaz faces a maximum sentence of 11 years in federal prison, three years’ supervised release, and $750,000 in fines.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is being investigated by IRS-Criminal Investigation and prosecuted by Seth D. Uram and Gavin W. Bruce, Assistant U.S. Attorneys for the District of Oregon.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Attorney General William P. Barr Issues Statement on Religious Practice and Social Distancing; Department of Justice Files Statement of Interest in Mississippi Church CaseRead the Press Release
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.[1] 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."
[1] The City has since stated it will drop the fines, but will continue to enforce the order.
Appeals Court Upholds Conviction of Former Carlisle Man Convicted of Witness Tampering Through MurderRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the U.S. Court of Appeals for the Third Circuit ordered the reinstatement of a jury’s convictions of Willie Tyler, age 68, formerly of Carlisle, Pennsylvania, of witness tampering by murder and witness tampering by intimidation.
According to United States Attorney David J. Freed, the case involved the brutal murder of a law enforcement confidential informant from the Carlisle area. The victim was scheduled to testify in Cumberland County Court against David Tyler, the brother of the defendant, on the day of her murder. Willie Tyler planned to murder the victim, along with four other individuals, who were convicted for their role in the murder in previous federal and state court proceedings.
Tyler was first tried in state court in 1994, and acquitted of the murder. The case was then adopted for federal prosecution, and Tyler was convicted after a federal jury trial in 1996. The Third Circuit overturned Tyler’s conviction, and he was convicted again following a re-trial in 2000. In 2013, the Third Circuit overturned the 2000 conviction in light of a change in the law and remanded the case to the district court for a new trial. Tyler was then tried and convicted for the third time in July 2017. The jury returned its verdict after two hours of deliberation following a four-day trial.
In February 2018, the district court vacated the jury’s verdict, concluding that there was not sufficient evidence to support the convictions. Today, the Third Circuit reversed the district court’s decision and remanded with instructions to reinstate the jury’s verdict and proceed to sentencing. Tyler’s conviction for witness tampering by murder carries a mandatory life sentence.
“Today we are one week shy of 28 years from the exact date that Doreen Proctor was beaten and murdered by the drug dealers that preyed upon her community,” said U.S. Attorney Freed. “Through one trial at the state level and three trials followed by years of appeals at the federal level, the dedicated law enforcement officers and prosecutors working on this case have never faltered in their efforts to achieve justice for Doreen. While it is certainly likely that more appeals are on the immediate horizon, we are pleased that this conviction has been reinstated and will continue to pursue this case until the end.”
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police with cooperation from the Carlisle Police Department. The case was prosecuted at the trial level by Assistant United States Attorneys Chelsea Schinnour and Joseph J. Terz and Special Assistant United States Attorney Gordon A. Zubrod. Assistant United States Attorneys Carlo D. Marchioli and Stephen R. Cerutti handled the appeal.
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13 April 2020
Woman Involved in 2014 Robbery of Drugs and Drug Proceeds Pleads Guilty in Federal CourtRead the Press Release
A woman who conspired to rob an individual of drugs and drug proceeds pled guilty today in federal court in Cedar Rapids.
Danielle Busch, age 30, from Cedar Rapids, Iowa, was convicted of conspiracy to commit robbery affecting interstate commerce and using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence resulting in murder.
At the plea hearing, Busch admitted that in May 2014 she conspired with others to commit a robbery affecting interstate commerce. She further admitted that during the robbery, one of her co-conspirators used, carried, brandished, and discharged a firearm during and in relation to the robbery. As a result of the use of the firearm, another individual was killed. Busch admitted that the discharge of the firearm was within the scope of the robbery conspiracy, and was reasonably foreseeable as a necessary or natural consequence of the conspiracy.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Busch remains in custody of the United States Marshal and will remain in custody pending sentencing. Busch faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, and up to eight years’ of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Richard L. Murphy and was investigated by the Marion Police Department, the Iowa Department of Criminal Investigation, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Davenport Police Department, the Iowa Division of Narcotics Enforcement, the Benton County Sheriff’s Office, and the Cedar County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0053.
Follow us on Twitter @USAO_NDIA.
VA Employee Agrees to Plead Guilty to Embezzling $70,000 Using Mobile Payment ApplicationRead the Press Release
BOSTON – A Department of Veteran Affairs (VA) employee has agreed to plead guilty to embezzling nearly $70,000 in VA funds.
Michael Donaher, 41, of Lakeville, was charged with one count of embezzlement and theft of public money, property or records. He has agreed, as part of a plea agreement, to reimburse the government for the funds he stole. A plea hearing has not yet been scheduled. Donaher was arrested in January on a criminal complaint.
Donaher worked as an Inventory Management Specialist for the Veterans Affairs Medical Facility in Brockton and was responsible for purchasing various equipment necessary for use in the facility. Donaher conducted fraudulent transactions using his government-issued purchase cards and routed the proceeds to his personal bank account. Donaher attempted to conceal these fraudulent purchases by making it appear as if the purchases were made through a large company – FW Webb – that the VA frequently used for legitimate business, when, in fact, they were actually made through a company Donaher created through Square, Inc., a mobile payment company. These purchases were not for actual items ever received by the VA. Furthermore, Donaher attempted to hide this fact by annotating the items as having been received within the VA’s accountability system. Donaher fraudulently routed approximately $70,000 of VA funds to his personal account since the scheme began in 2016.
The charging statute provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Jeffrey Stachowiak, Acting Special Agent in Charge of the Department of Veteran Affairs, Office of the Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
United States Attorney’s Office Continues to Enforce Servicemembers’ Civil Rights During COVID-19 PandemicRead the Press Release
COLUMBIA, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that the U.S. Attorney’s Office for the District of South Carolina and the Civil Rights Division of the Department of Justice continue to carry out their responsibility of protecting the civil rights of the brave men and women of our nation’s armed forces, and our nation’s veterans, in the face of the COVID-19 pandemic.
“Since COVID-19 has come to our shores, active duty servicemembers and members of the National Guard and Reserve have shouldered new burdens as they work to protect our country,” said U.S. Attorney McCoy. “We owe it to them to ensure that COVID-19 does not jeopardize their economic livelihood.”
The U.S. Attorney’s Office and the DOJ’s Civil Rights Division enforce multiple federal laws that protect the rights of servicemembers and veterans. For example, on March 13, 2020, in response to the Coronavirus, the Department of Defense (DOD) issued a stop movement order on domestic travel for all military personnel and their families until at least May 11, 2020, and possibly longer. Prior to this stop movement order, many servicemembers signed leases in anticipation of movement to a new duty station under previously received orders. These servicemembers are now unable to occupy the leased property and must maintain housing at their current location. As a result, they face the prospective burden of paying rent at two properties for an uncertain amount of time.
Consistent with federal and state law, the Department of Justice has strongly encouraged property managers to afford the men and women of the armed forces maximum flexibility to adjust their residential lease obligations as needed to comply with military orders during this uncertain time. The DOJ has further reminded employers and landlords to be mindful of the responsibilities they have with respect to members of the National Guard and Reserve under federal and state laws. These laws protect servicemembers’ prompt re-employment and continued pension benefits. These laws also protect servicemembers from discrimination based on their service.
South Carolina is uniquely impacted by the strain on the military community. The state has a substantial military presence: 8 major military installations; more than 55,000 servicemembers, putting South Carolina in the top ten states for active duty military and reserve populations; approximately 400,000 veterans; and over 9,000 Guardsmen. Over 300 South Carolina Guardsman have been activated as part of the current pandemic response, with the number likely to increase.
Servicemembers and their dependents who believe their rights have been violated under any of the statutes enforced by the DOJ’s Civil Rights Division should visit the DOJ’s website at https://www.justice.gov/servicemembers, email the U.S. Attorney’s Office Servicemember and Veterans Initiative Coordinator at [email protected], or visit their nearest Armed Forces Assistance Program Office.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney Joseph and IRS Warn Taxpayers of Potential Scams in Relation to COVID-19 Economic Impact PaymentsRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – The United States Attorney’s Office for the Western District of Louisiana and the Internal Revenue Service – Criminal Investigation (IRS-CI) are cautioning taxpayers of the opportunity for criminals to steal economic impact payments through various means of deception.
U.S. Attorney David C. Joseph and James E. Dorsey, Special Agent in Charge of the IRS-CI Atlanta Field Office, jointly made the announcement today in an effort to prevent taxpayers from falling victim to criminals using the recently approved economic impact payments as an opportunity to commit a crime.
“Fraudsters will exploit any opportunity – including a global pandemic - to con their victims,” said U.S. Attorney Joseph. “I urge citizens to be vigilant to protect themselves and to tell their family, friends, and neighbors about these scams. My office is working with our law enforcement partners to identify and prosecute those who use the COVID-19 pandemic as an opportunity to steal from the American taxpayer.”
“This is a time when ruthless criminals might seek to take advantage of this opportunity to prey upon unsuspecting individuals in an effort to line their own pockets by stealing your money or your personal information,” said James E. Dorsey, Special Agent in Charge of the IRS-CI Atlanta Field Office.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. Under the CARES Act, millions of Americans will start to receive COVID-19 economic impact payments from the IRS in the upcoming weeks. For most Americans, this one-time direct payment will be delivered primarily through direct deposit into their bank account. Those who did not identify a bank account on their tax returns or who have traditionally received tax refunds via paper check will receive their economic impact payment in that manner.
Criminals have already begun deceiving taxpayers through unsolicited phone calls, emails, text messages or other communications purporting to be from the IRS in attempts to steal these payments. Scammers are also trying to get taxpayers to sign their checks over to them through various means. Everyone receiving money from the government as a result of the COVID-19 economic impact payment is potentially at risk.
United States Attorney Joseph and Special Agent in Charge Dorsey offer the following information to help taxpayers understand how the COVID-19 related economic impact payments will be issued, as well as offer some helpful tips to taxpayers about possible scams and fraud:
- 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, DO NOT 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 you can get your money faster by sending personal or banking information or clicking on links, DELETE them. Do NOT click on any links in those emails or texts.
- Scammers may also emphasize the words “stimulus check” or “stimulus payment.” The official term is economic impact payment.
- There are no fees to receive payment. The government is not asking citizens to pay anything up front to receive an economic impact payment. If someone contacts you asking for any form of payment in order to receive an economic payment, please contact law enforcement.
- If you receive unexpected emails, text messages, or social media messages with attachments or website links, DELETE them. Do NOT click on, download, or open any of the above, as you may be opening malware on your electronic device that can help criminals steal your information.
- Reports are also circulating about bogus checks being distributed. If you receive a “check” in the mail now, it’s a fraud. It will take the Department of Treasury a few weeks to mail the legitimate checks to taxpayers. If you receive a “check” for an odd amount (especially one with cents), a check that requires you to verify the check online or by calling a number, its’ a fraud.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or send an email to https://www.justice.gov/coronavirus.
The Western District of Louisiana Coronavirus Fraud Coordinator, AUSA Seth Reeg, can be reached at: (318) 676-3600.
For more information, visit the IRS website at www.irs.gov/coronavirus.
To find out more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Trustee Program Acts Quickly to Protect Public Health and Ensure Effective Functioning of the Bankruptcy System During Covid-19 EmergencyRead the Press Release
In response to the COVID-19 pandemic, the Department of Justice’s U.S. Trustee Program (USTP) has taken a number of steps to protect the health of the public and those involved in bankruptcy proceedings while ensuring that the bankruptcy system remains functional during the current public health emergency.
“Our first priority is the safety and health of the general public and all individuals involved in the bankruptcy process,” said USTP Director Cliff White. “In partnership with the courts, private trustees, and other stakeholders, the U.S. Trustee Program has taken steps to protect safety while keeping the bankruptcy system functioning for businesses and consumers who need financial relief.”
Actions taken by the USTP include:
- Halting about 60,000 already scheduled in-person administrative proceedings (known as section 341 meetings) that would have been attended by large numbers of debtors, creditors, and professionals;
- Mandating that future section 341 meetings be conducted by telephonic or other alternative means not requiring in-person attendance, while using best practices to preserve the evidentiary value of the debtor’s sworn testimony;
- Suspending the audit of bankruptcy cases to limit the need for in-person contact by those involved in the audits; and
- Ensuring that debtors going through the bankruptcy process can keep the “recovery rebates” provided for in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Section 341 meetings. To promote social distancing, in mid-March, the USTP postponed already scheduled section 341 meetings to enable them to be rescheduled telephonically or by other alternative means not requiring in-person attendance. At section 341 meetings, the debtor must appear and testify under oath, including answering questions from the U.S. Trustee, the case trustee appointed by the USTP, and creditors. These meetings are open to the public and typically are conducted in person with more than 50 parties in a meeting room at any given time. The USTP subsequently mandated that section 341 meetings for all cases filed through at least May 10, 2020, with meetings scheduled through early summer, be held telephonically or by other alternative means. In cooperation with the courts, special notices are being sent to more than one million parties. The USTP also has issued guidance on preserving the evidentiary value of testimony provided over the telephone and purchased 1,200 conference lines and other equipment to permit remote access to the meetings.
Debtor audits. By law, the USTP contracts with independent firms to perform audits of a sample of individual chapter 7 and chapter 13 cases. Because these audits require debtors to produce additional documentation and often to confer with counsel and financial institutions in responding to auditor requests and reports, the USTP suspended all audits until the current public health emergency allows debtors to meet their obligations in a manner that does not compromise their safety or the public health. Debtor audits are just one of many tools used by the USTP to detect fraud, abuse, and errors.
Recovery rebates. The USTP provided notice to case trustees on the CARES Act to help ensure that the direct payments that many debtors will receive under the law are protected from turn over during bankruptcy proceedings.
The USTP continues to refer instances of suspected fraud and criminal activity in bankruptcy cases to its law enforcement partners and to assist in the prosecution of bankruptcy crimes. Debtors who believe they are victims of a COVID-19 related fraudulent scheme are encouraged to contact their local U.S. Trustee or make a report to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The U.S. Trustee Program has 21 regions and 90 field office locations covering 88 judicial districts. Learn more about the U.S. Trustee Program at https://www.justice.gov/ust.
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.
- Halting about 60,000 already scheduled in-person administrative proceedings (known as section 341 meetings) that would have been attended by large numbers of debtors, creditors, and professionals;
U.S. Attorney Nicholas Trutanich and Attorney General Aaron Ford Form Nevada COVID-19 Task ForceRead the Press Release
LAS VEGAS, Nev. – Today, U.S. Attorney Nicholas A. Trutanich and Nevada Attorney General Aaron D. Ford announced the formation of the Nevada COVID-19 Task Force. The Task Force is comprised of local, state and federal investigators and prosecutors with significant experience in handling complaints and cases related to general fraud, heath care fraud, Medicaid fraud, insurance fraud, workers’ compensation fraud and cybercrime, among others. Together, they will share information and resources to protect Nevadans from those using the COVID-19 pandemic to take advantage of consumers.
All participating agencies will take information, tips and complaints from the public, as well as other local law enforcement agencies seeking the Task Force’s assistance. The Task Force will share resources to monitor, identify and investigate misconduct most effectively and efficiently as possible.
“Our top priority is protecting Nevadans during this public health crisis,” said U.S. Attorney Nicholas A. Trutanich. “I am committed to marshalling the full spectrum of capabilities my office and our federal law enforcement partners can bring to support the Task Force’s important mission of protecting our vulnerable populations from fraudsters. I urge citizens to contact the Task Force with information and tips.”
“Sadly, it is all too common for fraudsters to take advantage of the public during times of great distress and hardship,” said Attorney General Aaron D. Ford. “From day one, I’ve focused on protecting Nevada families and consumers, and I’m proud that my office continues to be on the front lines of fighting fraud and helping Nevadans in need. With a united front, we’re showing fraudsters they have no business taking advantage of Nevadans.”
The U.S. Attorney’s Office and the Nevada Attorney General’s Office caution residents to be wary of potential scams such as these:
- Diagnosis Testing Scams: Scammers offer fake COVID-19 testing kits, particularly door-to-door.
- Treatment/Cure Scams: Scammers offer fake or unproven treatment regimens that are particularly dangerous because they have the potential to do more harm than good.
- Charity Scams: Virtually every time there is a disaster or emergency, scammers set up fake charities to solicit donations that they then spend on themselves.
- Overinflated prices: The Task Force will use every tool available to hold sellers accountable who unlawfully use the COVID-19 pandemic to unreasonably inflate prices.
- Investment Scams: Scammers make false claims about tests, cures and other matters related to COVID-19 in order to entice victims to make investment decisions based on those false claims that allow the scammer to steal money and assets from Nevadans.
- Cyber Scams: Scammers send victims emails related to COVID-19 that appear to be from the victims’ banks, health care providers, the World Health Organization, the Centers for Disease Control and Prevention (CDC), and others for the purpose of obtaining the victims’ personal identifying information and exploiting it for the scammers’ own benefit.
- App Scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Insurance, Workers’ Compensation and Medicaid Fraud: Businesses and government agencies are not immune to scams. They should also be vigilant to ensure scammers do not take advantage of their businesses or customers during this pandemic.
- Economic Impact Payment (Stimulus Check): Scammers pretend to be government officials offering false economic impact payments (stimulus checks) in order to obtain personal identifying information including social security and bank account numbers.
Fifteen agencies are a part of this Task Force including:
- U.S. Attorney’s Office
- Office of the Nevada Attorney General
- Federal Bureau of Investigation
- U.S. Secret Service
- Internal Revenue Service – Criminal Investigation
- Drug Enforcement Administration
- U.S. Department of Health and Human Services’ Office of Inspector General
- Department of Veterans Affairs’ Office of Inspector General
- Department of Education Office of Inspector General
- Small Business Administration Office of Inspector General
- U.S. Postal Inspection Service
- Treasury Inspector General for Tax Administration
- Nevada’s Secretary of State’s Office
- Washoe County Sheriff’s Office
- Las Vegas Metropolitan Police Department
For tips on how to avoid falling victim to these scams, click here.
If you are in danger or experiencing a true emergency, please call 911. If you have been victimized by any crime related to the COVID-19 pandemic, please report your experience to the Attorney General’s Office (ag.nv.gov/Complaints/File_Complaint/) and the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or by e-mailing the NCDF at [email protected]. In your email, please provide the following information:
- Your full name and contact information;
- The dates on which you were victimized;
- The location of the incident (including city and state);
- A brief description of the crime; and
- The name(s) and contact information of the perpetrator(s) (if known).
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U.S. Attorney Ariana Fajardo Orshan Launches Task Force to Investigate and Prosecute COVID-19 FraudRead the Press Release
MIAMI, Fl. -- In response to the increasing threat of fraud related to the COVID-19 (Coronavirus) pandemic, U.S. Attorney Ariana Fajardo Orshan announced today that federal, state, and local law enforcement agencies have joined forces to form the Southern District of Florida COVID-19 Task Force. Led by the U.S. Attorney’s Office, the Task Force’s mission is to identify, investigate, and aggressively prosecute fraud in South Florida related to COVID-19.
While the Task Force will review and investigate all credible leads of COVID-19 fraud, it will focus on complaints of hoarding and price gouging of critical medical supplies and on schemes designed to exploit vulnerable populations, including the elderly. The Task Force also will prioritize schemes that have the potential to endanger public health and safety.
U.S. Attorney Fajardo Orshan has designated Assistant U.S. Attorney Jon Juenger as the Southern District of Florida’s Coronavirus Fraud Coordinator. AUSA Juenger will confer with agency counterparts regularly to prioritize cases and focus resources where needed.
Some examples of COVID-19 scams include:
- Unlawful Hoarding and Price-Gouging: The Department of Health and Human Services (HHS) has designated certain health and medical resources necessary to respond to the COVID-19 pandemic as “scarce,” including respirator masks, ventilators, and other medical protective equipment. These designated materials are subject to the hoarding prevention measures that trigger both criminal and civil remedies.
- Testing Scams: Scammers are selling fake at-home test kits or going door-to-door performing fake tests for money.
- Treatment Scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply Scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider Scams: Scammers are also contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity Scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing Scams and Cyber Intrusions: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into clicking on a link or opening an attachment that downloads malware that steals the user’s credentials, such as usernames, credit card numbers, passwords, and other sensitive information usually stored in internet browsers.
- App Scams: Scammers are also creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment Scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result.
- Stimulus Check Scams: Scammers are contacting people over email and are telling them that their check, as part of the stimulus package responding to COVID-19, is already waiting for them and that all they need to do is to provide personal information, such as bank account numbers and Social Security Numbers, which are the key pieces of information needed to perpetrate identity theft.
- Other scams include fraudsters claiming to work for the government or banks/credit cards and offering assistance for student loan relief, foreclosure or eviction relief, unemployment assistance, debt relief, and direct financial assistance, like government checks.
If you believe you have been a target or victim of a scam or fraud or have knowledge of any hoarding or price-gouging of critical medical supplies, please report it to the National Center for Disaster Fraud Hotline at 1-866-720-5721 or [email protected].
You may reach the Southern District of Florida Coronavirus Fraud Coordinator, AUSA Jon Juenger, at (305) 961-9450 or [email protected].
Attachment:
COVID 19-Fraud Flyer
- Unlawful Hoarding and Price-Gouging: The Department of Health and Human Services (HHS) has designated certain health and medical resources necessary to respond to the COVID-19 pandemic as “scarce,” including respirator masks, ventilators, and other medical protective equipment. These designated materials are subject to the hoarding prevention measures that trigger both criminal and civil remedies.
Two new prosecutors sworn in to serve in Southern District of Georgia U.S. Attorney's OfficeRead the Press Release
SAVANNAH, GA: Two new prosecutors have joined the Southern District of Georgia U.S. Attorney’s Office with swearing-in ceremonies held Monday in accordance with COVID-19 safety protocols.
The two assistant U.S. attorneys fill a vacancy in the office staff and a new position allotted by the Department of Justice in response to the Southern District’s high level of productivity.
“The staff in our office continue to adapt and overcome the challenges of the COVID-19 pandemic, including taking on a leadership role in fighting coronavirus fraud in Georgia, even as we maintain our aggressive fight against crime in the Southern District,” said U.S. Attorney Bobby L. Christine. “These new prosecutors will immediately get to work helping to keep our communities safe.”
Joining the Southern District of Georgia U.S. Attorney’s Office are:
- Channell Singh serves in the Criminal Division in the Savannah office.
Singh received her undergraduate degree from the University of Georgia and her Juris Doctor from the University of North Carolina School of Law. During law school, Singh interned with the Southern District U.S. Attorney’s Office and with U.S. District Court Judge William T. Moore Jr. After law school, she worked for three years as an Assistant District Attorney in Fulton County in their Complex Trial Division, and most recently served as an assistant in the capital litigation section of the Georgia Attorney General’s Office. She has appeared numerous times before the 11th Circuit.
- Jennifer Stanley serves in the Criminal Division in the Augusta office.
Stanley received her undergraduate degree from Vanderbilt University and her Juris Doctor from the Vanderbilt University School of Law. While in law school, she interned in the Southern District U.S. Attorney’s Office in Augusta. After receiving her law degree, Stanley clerked for then-Chief Judge Karon O. Bowdre in the Northern District of Alabama, and most recently served as an associate in a large Alabama-based legal practice, primarily in the areas of financial services litigation and securities litigation.
The Southern District of Georgia U.S. Attorney’s Office, led by U.S. Attorney Bobby L. Christine, is a component of the U.S. Department of Justice, prosecutes federal crimes and civil actions in the 43 counties of the Southern District, and provides legal services for federal agencies and facilities within the district. Learn more at justice.gov/usao-sdga.
Tucson Man Sentenced to Prison for Abusive Sexual ContactRead the Press Release
PHOENIX, Ariz. – On February 24, Martin Gerardo Mendoza, 51, of Tucson, Arizona, was sentenced by Senior U.S. District Judge David G. Campbell to 24 months in federal prison followed by 120 months of supervised release. In August 2019, Mendoza pleaded guilty to Abusive Sexual Contact.
On or between May 3 and May 4, 2018, Mendoza knowingly and intentionally engaged in sexual contact with the victim without her permission. Mendoza committed the act on the Yavapai-Prescott reservation in Prescott, Arizona. The victim is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation and the Tucson Police Department conducted the investigation in this case. Assistant U.S. Attorneys Christina Covault and William Voit, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-8246-PCT-DGC
RELEASE NUMBER: 2020-047_Mendoza# # #
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.Meadowbrook Health Services Agrees to Pay the United States $330,000 for Violations of the Controlled Substances ActRead the Press Release
Roanoke, VIRGINIA – Meadowbrook Health Services and William L. Lamar have agreed to pay the United States $330,000 to settle civil allegations that they violated the Controlled Substances Act (CSA). United States Attorney Thomas T. Cullen made the announcement today.
According to the agreement, between May 11, 2016, and November 18, 2016, Meadowbrook Pharmacy, formerly located in Charlottesville, Virginia, which ceased operations in 2016, violated the CSA by unlawfully dispensing a controlled substance on at least 33 occasions.
“Pharmacies and pharmacists, like other health-care providers, must follow the law in dispensing potentially deadly controlled substances,” U.S. Attorney Cullen stated today. “As this case illustrates, we continue to use all available tools, including stiff civil penalties, to hold those who unlawfully prescribe and dispense these drugs accountable.”
This proactive civil enforcement investigation was conducted by the Drug Enforcement Administration. Assistant United States Attorney Justin Lugar litigated the case for the United States.
Maury Regional Medical Center to Pay More Than $1.7 Million to Settle False Claims Act AllegationsRead the Press Release
NASHVILLE, Tenn. – April 14, 2020 – Maury Regional Hospital, d/b/a Maury Regional Medical Center, has agreed to pay $1,702,903 to settle False Claims Act allegations, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Maury Regional submitted a voluntary self-disclosure to the U.S Attorney’s Office and to the Office of Inspector General for the Department of Health and Human Services, which was prompted after an internal investigation concluded that there was aberrant billing for certain inpatient services. Specifically, Maury Regional concluded that certain diagnosis-related groups (“DRGs”) with complications or comorbidities (“CCs”) or major complications or comorbidities (“MCCs”) - specifically stroke, respiratory infection, simple pneumonia, and septicemia - may not have been reasonable, allowable, or documented in accordance with Medicare Part A requirements.
Based upon the results of Maury Regional’s investigation, the United States concluded that Maury Regional submitted claims and received payment for certain DRGs with CCs or MCCs, as described above, which were not supported by the medical records. The time period covered under this settlement agreement spans from April 1, 2013 through March 31, 2019. Maury Regional previously engaged in voluntary self-disclosures in 2012 and 2013.
“Maury Regional is again to be commended for its transparency and diligence in handling the disclosure of these aberrant billing issues,” said U.S. Attorney Cochran. “As in the past, Maury Regional swiftly implemented a protocol to address the problem going forward and developed a plan to determine the scope of the issues to be remedied, with which we agreed. It worked closely and quickly with us to bring this matter to a satisfactory resolution, even in the midst of the challenges it is facing in light of the novel coronavirus pandemic It is particularly important for this office to be able to work together with our rural hospitals at this time, and we will continue our efforts to maintain the integrity of the federal health care programs, while meeting the needs of communities throughout the Middle District of Tennessee.”
“Effective compliance programs demonstrate an institution’s good faith effort to comply with Medicare rules and regulations,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “We welcome an opportunity to work with hospitals and other health care providers to protect taxpayer dollars and ensure this money is properly spent to improve the health of all Americans.”
The United States encourages all health care providers to self-disclose any known violations that have resulted in the submission of improper claims to federal health care programs.
The case was investigated by the United States Attorney’s Office for the Middle District of Tennessee and the Department of Health and Human Services, Office of Inspector General (HHS-OIG). Assistant U.S. Attorney Kara F. Sweet represented the United States.
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Man Who Raped Child Sent to Federal Prison for a DecadeRead the Press Release
A man who repeatedly raped a thirteen-year-old victim was sentenced today to ten years in federal prison.
Damon Whitebreast, age 22, from Montour, Iowa, received the prison term after a November 4, 2019 guilty plea to two counts of sex abuse of a minor.
Evidence during the case established that on at least two occasions Whitebreast had sexual intercourse with a thirteen-year-old child. When police came to look for the child at his residence, Whitebreast hid the child from officers. After pleading guilty, and while housed at the Linn County jail, Whitebreast assaulted another inmate causing injuries and bruising.
Whitebreast was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Whitebreast was sentenced to 120 months’ imprisonment and fined $30,000. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
During the sentencing, Judge Williams found that this was a “crime of violence that caused incalculable harm to a thirteen-year old” victim.
Whitebreast is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Federal Bureau of Investigation and the Meskwaki Nation Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0068.
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Justice Department and Federal Trade Commission Jointly Issue Statement on COVID-19 and Competition in U.S. Labor MarketsRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Trade Commission’s (FTC) Bureau of Competition jointly released a statement today affirming the importance of competition for American workers. The agencies also announced that they will protect competition for workers on the frontlines of the Coronavirus Disease 2019 (COVID-19) response in the United States by enforcing the antitrust laws against those who seek to exploit the pandemic to engage in anticompetitive conduct in labor markets.
The agencies acknowledged that some cooperation between government, business, and individual actors may be necessary in order to protect the health and safety of Americans. At the same time, the agencies informed the public that they are on alert for employers, staffing companies, and recruiters who might engage in collusion or other anticompetitive conduct that harms workers. Examples of such conduct include agreements to suppress or eliminate competition with respect to compensation, benefits, hours worked, and other terms of employment, as well as the hiring, soliciting, recruiting, or retention of workers.
“The Antitrust Division will not tolerate companies and individuals who use COVID-19 to harm competition that cheats payroll and non-payroll workers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This includes doctors, nurses, first responders, and those who work in grocery stores, pharmacies, delivery and distribution networks, and warehouses, among other essential service providers on the front lines of addressing the crisis. Even in times of crisis, we choose a policy of competition over collusion. The division will use its enforcement authority to ensure that companies and individuals who distort the free market for labor are held to account.”
“Many American workers are under a tremendous amount of stress because of COVID-19, and that includes essential workers and first responders,” said FTC Chairman Joe Simons. “We will not stand for any collusion among employers that would deprive workers of competitive compensation for their hard work.”
For years, the division and the FTC’s Bureau of Competition have challenged unlawful wage-fixing and no-poach agreements, anticompetitive non-compete agreements, and the unlawful exchange of competitively sensitive employee information, including salary, wages, benefits, and compensation data. Companies and individuals who enter into naked wage-fixing and no-poach agreements may be criminally prosecuted by the division, and those that invite collusion may be subject to civil enforcement by the bureau, even absent a collusive agreement, the statement further notes. The agencies may also use their civil enforcement authority to challenge unilateral anticompetitive conduct by employers that harms competition in a labor market. Companies and individuals involved in the hiring, recruiting, retention, or placement of workers should be aware that anticompetitive conduct runs the risk of civil and/or criminal liability.
The division recognizes that protecting American consumers during the COVID-19 event may require significant cooperation between federal, state, local, and tribal governments, private businesses, and individuals.
To that end, the division and the FTC previously released guidance that compiles additional and existing information and resources that can provide those responding to COVID-19 with a general understanding of how the agencies enforce the antitrust laws on joint conduct. At the same time, the agencies remain vigilant about detecting and stopping anticompetitive conduct in labor markets. Therefore, the division, along with the rest of the department, will continue working closely with other federal agencies, including our partners at the FBI, the FTC, the Department of Labor, and the Department of Health and Human Services, to assist its efforts.
The division established the Procurement Collusion Strike Force, an interagency partnership created to combat antitrust crimes and related schemes affecting procurement, grant, and program funding. The Strike Force is on high alert for collusive practices in the sale of COVID-19-related products to federal, state, and local agencies.
If you have information concerning harm to competition in a labor market, please email the division’s Citizen Complaint Center at [email protected] and the bureau’s complaint center at [email protected].
Beyond labor competition matters, anyone with information or concerns about actions by individuals and businesses to take advantage of COVID-19 through other fraudulent and illegal schemes, or other COVID-19-related complaints, should contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail [email protected].
Justice Department Alleges Conditions at Edna Mahan Correctional Facility for Women Violate the ConstitutionRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division today concluded that there is reasonable cause to believe that the conditions at the Edna Mahan Correctional Facility for Women in Clinton, New Jersey violate the Eighth Amendment of the Constitution. Specifically, the Department concluded that there is reasonable cause to believe that Edna Mahan fails to protect prisoners from sexual abuse by the facility’s staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“Sexual abuse cannot be tolerated in any setting, including in prisons and jails,” U.S. Attorney Craig Carpenito said. “We have been encouraged by the State’s cooperation throughout our investigation, and stated commitment to ending sexual abuse at Edna Mahan. We hope to continue to work with New Jersey to resolve these significant concerns.”
“The Eighth Amendment of the Constitution guarantees prisoners reasonable safety from harm,” Assistant Attorney General Eric Dreiband for the Civil Rights Division said. “Sexual abuse should not be a part of any prisoner’s punishment. Our investigation found reasonable cause to conclude that women prisoners at Edna Mahan are at substantial risk of sexual abuse by staff because systemic deficiencies discourage prisoners from reporting sexual abuse and allow sexual abuse to occur undetected and undeterred.”
The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in April 2018 under CRIPA, which authorizes the Department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the Civil Rights Unit; Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit; Mary Bohan, Deputy Chief of the Civil Rights Division’s Special Litigation Section; and Kerry Krentler Dean, Trial Attorney, Special Litigation Section.
Individuals who believe their civil rights may have been violated may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint.
Justice Department Alleges Conditions at Edna Mahan Correctional Facility for Women Violate the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey today concluded that there is reasonable cause to believe that the conditions at the Edna Mahan Correctional Facility for Women (Edna Mahan) in Clinton, New Jersey violate the Eighth Amendment of the Constitution. Specifically, the department concluded that there is reasonable cause to believe that Edna Mahan fails to protect prisoners from sexual abuse by the facility’s staff.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Eighth Amendment of the Constitution guarantees prisoners reasonable safety from harm,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Sexual abuse should not be a part of any prisoner’s punishment. Our investigation found reasonable cause to conclude that women prisoners at Edna Mahan are at substantial risk of sexual abuse by staff because systemic deficiencies discourage prisoners from reporting sexual abuse and allow sexual abuse to occur undetected and undeterred.”
“Sexual abuse cannot be tolerated in any setting, including in prisons and jails,” said U.S. Attorney Craig Carpenito. “We have been encouraged by the State’s cooperation throughout our investigation, and stated commitment to ending sexual abuse at Edna Mahan. We hope to continue to work with New Jersey to resolve these significant concerns.”
The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in April 2018 under CRIPA, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
DNA on Firearm Left When Fleeing Police Leads to Federal Prison Time for Convicted FelonRead the Press Release
A felon who ran from the scene of a traffic stop leaving behind a loaded pistol with an attached high capacity extended magazine was sentenced today to more than five years in federal prison.
Prequondis Lequay Holmes, age 29 from Waterloo, Iowa, received the prison term after a December 2, 2019 guilty plea to possession of a firearm by a felon.
In August 2018, Holmes was traveling in a vehicle when it was stopped by the police. Holmes told the driver to take-off and then ran away, leaving a pistol with an attached high capacity extended magazine in the vehicle. Law enforcement found Holmes’ DNA on the pistol. Holmes has previous convictions for intimidation with a dangerous weapon, reckless use of a firearm, assault causing bodily injury, eluding, and flight to avoid prosecution.
Holmes was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Holmes was sentenced to 70 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Holmes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-2054.
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Buffalo Man Pleads Guilty to Speeding Through Lewiston Border CrossingRead 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 Raison Holt, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo, Jr. to high speed flight from border checkpoint. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan A. Tokash, who is handling the case, stated that on January 20, 2020, around 6:00 a.m., the defendant was driving a motor vehicle on the Lewiston-Queenstown Bridge, heading into Canada. Before entering Canada, Holt turned around in the middle of the bridge and drove toward the United States at the Lewiston Bridge Port of Entry in Lewiston. Despite numerous “stop” signs posted by U.S. Customs and Border Protection, the defendant failed to stop for federal inspection.
At a vehicle check point just past the initial inspection gate, a CBP officer verbally ordered Holt to stop, but the defendant ignored the command and accelerated on Interstate 190, and then onto the route 104 exit ramp. CBP vehicles gave chase in pursuit of the defendant’s speeding vehicle. Officers witnessed Holt lose control of his vehicle and crash into a ditch on the side of the road. The defendant attempted to run away but officers took the Holt into custody. It was subsequently determined that the vehicle the defendant was driving was stolen. Holt was turned over to the Buffalo Police Department for an outstanding arrest warrant for Grand Larceny and Unauthorized Use of a Motor Vehicle.
The plea is the result of an investigation by Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
Sentencing is scheduled for August 21, 2020, before Judge Vilardo.
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Attorney General Barr Issues Guidance to Protect Facilities from Unmanned Aircraft and Unmanned Aircraft SystemsRead the Press Release
Today, Attorney General William P. Barr issued Guidance to Department of Justice components regarding counter-unmanned aircraft systems (C-UAS) actions authorized under the Preventing Emerging Threats Act of 2018 (the Act).
“This guidance was the product of extensive collaboration between the Department of Justice, the Department of Transportation and the FAA,” said Attorney General William P. Barr. “It will ensure that we are positioned for the future to address this new threat, and that we approach our counter-drone efforts responsibly, with full respect for the Constitution, privacy, and the safety of the national airspace.”
The Guidance outlines the process by which authorized department components can request designation of facilities or assets for protection under the Act, and ensures coordination with the FAA when any C-UAS action authorized under the Act might affect aviation safety, civilian aviation and aerospace operations, aircraft airworthiness, and the use of the airspace. This includes conducting a risk-based assessment in consultation with the Secretary of Transportation to examine potential airspace impacts and other considerations.
“The Guidance is another important step forward,” said Deputy Attorney General Jeffrey A. Rosen, who is responsible under the Guidance for reviewing and approving DOJ components’ protection requests. “The number of unmanned aircraft is increasing rapidly, as is their importance to the economy. By further enabling the Department’s efforts to mitigate threats posed by errant or malicious UAS, the Guidance helps to bring us closer to the larger objective of ensuring all forms of air traffic in the National Airspace System operate lawfully and safely.”
Importantly, the Guidance also reflects the department’s dedication to protecting privacy, civil rights, and civil liberties. It contains explicit limitations on the retention and use of any data collected during the course of counter-drone operations and requires each component deploying C-UAS technologies to train personnel on privacy and civil liberties in that context. The Guidance further contains testing, procurement, and training requirements for authorized department personnel.
The publication of the Guidance can be found here.
10 April 2020
With Sharp Rise in Fatal Drug Overdoses in Erie County During the Past Month, Buffalo Man Arrested and Charged with Heroin Possession Following Months of SurveillanceRead 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 James Terrell, 35, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute one kilogram or more of heroin. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
“Lately, with the pandemic, we have heard a great deal about mortality rates,” stated United States Attorney Kennedy. “Since March 1st in Erie County, we have had 110 documented drug overdoses which have resulted in the deaths of 36 individuals—for a death rate of 33%—one-third of all individuals who have overdosed in Erie County since March 1st have died. I think we need to consider the role that social isolation coupled with non-stop reporting on the pandemic may have on the feelings of desperation and hopelessness among those struggling with substance abuse. Amidst the current crisis, we need to remember that substance abuse existed long before COVID-19, and it will likely remain long after we have wiped out the virus. Not only has the time come to credit those brave men and women working in the medical, healthcare, and law enforcement communities as they do their best, in the face of deadly threats, to preserve public health and safety, but the time has also come for all of us to recognize that the job is not theirs alone to do. Only when personal responsibility overtakes public panic as the impetus for individual and collective action can we optimize our ability to recognize and overcome the greatest threats we face.”
“It’s unconscionable that drug traffickers would continue to distribute their deadly poison in our communities in the midst of a public health crisis,” said Kevin Kelly, Special Agent-in-Charge for Homeland Security Investigations (HSI). “These reckless actions only serve to deepen the resolve of HSI, the Erie County Sheriff’s Office, and our partners to protect our communities against the multitude of threats that exist today.”
“I am extremely pleased that my Narcotics Unit and our partners at Homeland Security Investigations were able to complete an investigation and arrest another drug dealer in our community,” said Sheriff Timothy B. Howard. “Unfortunately, these peddlers of death are taking advantage of people at a very vulnerable time. With increasing stress levels and isolation, drug dealers are preying on people, and law enforcement won’t stand for it. That is why we will continue our efforts during this pandemic to ensure our residents’ health and safety.”
Assistant U.S. Attorney Michael J. Adler, who is handling the case against Terrell, stated that according to the complaint, in 2019, Homeland Security Investigations learned that the defendant was engaged in an exchange of bulk U.S. currency. Subsequent surveillance revealed that Terrell changed vehicles multiple times. On August 20, 2019, around 1:05 p.m., the Erie County Sherriff’s Office executed a vehicle and traffic stop of the defendant in the vicinity of East Delavan Avenue and Grider Street in Buffalo. During the traffic stop, a K9 dog detected the odor of narcotics on the rear passenger side door. A search warrant was executed on the vehicle and resulted in the seizure of $80,110 in cash and two cellular telephones.
During subsequent surveillance, HSI Special Agents observed Terrell operating additional vehicles, a common tactic deployed by drug traffickers in an effort to avoid law enforcement surveillance and detection. In addition, during the course of the surveillance, investigators conducted a controlled purchase of fentanyl from the defendant. On April 9, 2020, HSI Special Agents conducting surveillance observed Terrell’s vehicle parked on Earl Place in Buffalo. At approximately 2:00 p.m., they observed a delivery driver park in front of a residence on Earl Place and place a large brown box on the porch of the residence. A short time later, agents observed the defendant leave the same residence carrying a package. Terrell was observed at the trunk of his vehicle for approximately 30 seconds, he then got into the vehicle and drove away. Buffalo Police then conducted a traffic stop a few blocks away.
A search warrant was executed on the vehicle. During the search, investigators recovered a brick like object from the trunk, compactly taped and hidden within sweatpants. Examination of the brick revealed several additional layers of tape and wrappings. Underneath the taping and wrapping was a thinly green taped brick with the words “Arco Tijuana” written on it in marker. Field testing determined the brick contained suspected heroin.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
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.
# # # #
Virginia Coronavirus Fraud Task Force Asks Hospitals for Help Identifying Potential FraudRead the Press Release
ROANKOE, Va. – The Virginia Coronavirus Fraud Task Force, led by U.S. Attorneys Thomas T. Cullen and G. Zachary Terwilliger, sent letters to the CEOs of all major hospital systems across the Commonwealth alerting them of potentially fraudulent and illegal activity associated with the COVID-19 pandemic.
These letters apprised hospital leadership of the potential criminal consequences of hoarding certain medical supplies identified as scarce in a March 23 Executive Order signed by President Donald J. Trump. Some of the 15 categories of health and medical supplies identified as scarce include N-91 masks, portable ventilators, Choroquine phosphate or hydroxychoroquine HCL, and a variety of other personal protective equipment, such as face masks, surgical masks, gloves, and face shields.
In addition to alerting the hospital systems about potential hoarding, the letter also asks administrators to, “identify those individuals or entities that may have acquired vital medical supplies in excess of what they would reasonably use or for the purpose of charging exorbitant prices.”
“Our regional health systems and the brave men and women they employ have a unique vantage point from which to detect potentially fraudulent and illegal hoarding activity associated with COVID-19,” said U.S. Attorney Cullen. “It is our hope that these institutions will partner with us to combat criminal conduct that undermines our collective efforts to slow the spread of this disease.”
“It is imperative that we get these critical materials to the people on the front lines,” said U.S. Attorney Terwilliger. “If you are someone who is looking to unjustly enrich yourself off of this pandemic, and amassing bulk quantities to unfairly extort hospitals and others, we will investigate and take all next steps to ensure these critical supplies get where they are needed most.”
“Governor Northam and his administration have no tolerance for any kind of fraudulent activity occurring in Virginia related to the COVID-19 pandemic,” said Virginia Secretary of Public Safety and Homeland Security Brian Moran. “At a time when the accessibility of specific, life-critical health and medical supplies are imperative to the mitigation of COVID-19 within our communities, Virginia is appreciative of our federal partners bringing these concerns to light.”
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Virginia Coronavirus Fraud Task Force Asks Hospitals for Help Identifying Potential FraudRead the Press Release
ROANOKE, Va. – The Virginia Coronavirus Fraud Task Force, led by U.S. Attorneys Thomas T. Cullen and G. Zachary Terwilliger, sent letters to the CEOs of all major hospital systems across the Commonwealth alerting them of potentially fraudulent and illegal activity associated with the COVID-19 pandemic.
These letters apprised hospital leadership of the potential criminal consequences of hoarding certain medical supplies identified as scarce in a March 23 Executive Order signed by President Donald J. Trump. Some of the 15 categories of health and medical supplies identified as scarce include N-91 masks, portable ventilators, Choroquine phosphate or hydroxychoroquine HCL, and a variety of other personal protective equipment, such as face masks, surgical masks, gloves, and face shields.
In addition to alerting the hospital systems about potential hoarding, the letter also asks administrators to, “identify those individuals or entities that may have acquired vital medical supplies in excess of what they would reasonably use or for the purpose of charging exorbitant prices.”
“Our regional health systems and the brave men and women they employ have a unique vantage point from which to detect potentially fraudulent and illegal hoarding activity associated with COVID-19,” said U.S. Attorney Cullen. “It is our hope that these institutions will partner with us to combat criminal conduct that undermines our collective efforts to slow the spread of this disease.”
“It is imperative that we get these critical materials to the people on the front lines,” said U.S. Attorney Terwilliger. “If you are someone who is looking to unjustly enrich yourself off of this pandemic, and amassing bulk quantities to unfairly extort hospitals and others, we will investigate and take all next steps to ensure these critical supplies get where they are needed most.”
“Governor Northam and his administration have no tolerance for any kind of fraudulent activity occurring in Virginia related to the COVID-19 pandemic,” said Virginia Secretary of Public Safety and Homeland Security Brian Moran. “At a time when the accessibility of specific, life-critical health and medical supplies are imperative to the mitigation of COVID-19 within our communities, Virginia is appreciative of our federal partners bringing these concerns to light.”
For More information about the Virginia Coronavirus Fraud Task Force, please visit:
https://www.justice.gov/usao-wdva/covid-19-fraud
Western Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Michael Baudinet, [email protected] or 540-278-1494.
Eastern Virginia Coronavirus Fraud Coordinator, Assistant U.S. Attorney Kaitlin G. Cooke, [email protected] or 804-819-5416.
To report a COVID-19 fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or sending an email to [email protected].
For more information, visit the IRS website at www.irs.gov/coronavirus
FBI at: https://www.ic3.gov or 804-261-1044.
To report fraudulent activity to the Virginia State Police, Virginians can contact the Virginia Fusion Center (VFC) at [email protected].
For continuing information on the COVID-19 virus and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
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U.S. Attorney’s Office Gets Relief Under ADA for 10-Year-Old Deaf Soccer PlayerRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that the United States has resolved a claim of discrimination under the Americans with Disabilities Act (ADA) against Colorado Rush Soccer Club. The initial complaint was brought by the family of a former youth player who is deaf.
“John” was seven years old in the fall of 2017, when he began playing soccer on a Colorado Rush-sponsored team. Because John is deaf, he requires auxiliary aids and services to communicate with his coaches and fellow teammates during practices and games. Without some communication assistance, John could not understand what was going on during soccer practices and games. Colorado Rush initially provided auxiliary aids and services for John.
The family alleged that in January of 2018, Colorado Rush stopped providing auxiliary aids and services to John to help him communicate, claiming that it was too expensive. Colorado Rush informed John’s family that the family would be responsible for ensuring that John could effectively communicate during Colorado Rush’s soccer practices and games. The family alleged that they hired their own sign language interpreter for John, or John’s father provided interpretation, for hundreds of practices or games. The family did this so that John could play soccer with his peers in the spring and fall of 2018 and the spring of 2019. Ultimately, the family decided that they could no longer play soccer with Colorado Rush because of the burden of having to provide effective communication for their son.
To resolve the complaint, Colorado Rush agreed to pay $11,000 in compensatory damages and civil penalties. It also agreed to adopt policies and procedures affirming that under Title III of the ADA, Colorado Rush is obligated to provide effective communication to individuals with disabilities through the provision of auxiliary aids and services.
“All youth sports leagues, whether public or private, must comply with the Americans with Disabilities Act,” said U.S. Attorney Jason Dunn. “We are pleased that Colorado Rush has agreed to adopt policies that comply with the Act. Those policies will help ensure that kids with disabilities now have the same opportunities to participate in youth sports programs as kids without disabilities.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department and U.S. Attorney’s Office will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Two Men Plead Guilty to Respective Robbery and Firearms CrimesRead the Press Release
RICHMOND, Va. – Two Richmond men pleaded guilty today to their respective charges in separate cases in federal court.
“The wheels of justice continue to turn,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The resolve and dedication of our staff and law enforcement partners on the front lines is nothing short of tremendous. Rather than wait for this pandemic to end to get back to work, we are doing our best to work through it and ensure the safety of the public and communities we serve.”
“The work of the FBI does not stop, even during this unprecedented period of national emergency,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “Together with our partners, our investigations and our operations will continue. FBI Richmond is fully committed to the mission of protecting Americans and upholding the Constitution.”
Antonio Smith, 52, pleaded guilty to possession of a firearm as a convicted felon. According to court documents, Smith fled as Richmond Police officers approached him regarding a request for him to vacate a residence in the 2500 block of Bethel Street in Richmond. After refusing commands to stop, Smith threw firearms through an open passenger window of an occupied vehicle parked on Bethel Street. After Smith was detained, Richmond Police recovered two firearms from the vehicle, one of which was a Ruger, Mode LCP II, .380 caliber, semi-automatic pistol. At the time of the incident, Smith had previously been convicted of a felony and was prohibited for possessing firearms.
Smith and faces a maximum penalty of 10 years in prison when sentenced on October 8.
In a separate case, Michael J. Aikens, 33, pleaded guilty to aiding and abetting robbery and aiding and abetting the use of a firearm during and in relation to a robbery. According to court documents, Aikens assisted Christopher Tatum in robbing Brothers Market in Henrico in April 2019. On the day before the robbery, Aikens identified and scouted the location for Tatum and relayed to Tatum vital information about the store, such as the number of customers typically in the store, the number of employees working in the store, and the available entrances and exits. Tatum previously pleaded guilty in a related case and admitted to committing the April 24 robbery, along with six others.
Aikens faces a mandatory minimum prison term of seven years in prison when sentenced on October 7.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office; William C. Smith, Chief of Richmond Police; and Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, made the announcement. Assistant U.S. Attorneys Peter S. Duffey and Stephen E. Anthony and Special Assistant U.S. Attorney Holli R. Wood are prosecuting the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-14, and 25.
Sioux City Man Sentenced to Prison for Failure to Register as a Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced on April 8, 2020, to 15 months’ in federal prison.
Ulises Alvarado, age 53, from Sioux City, received the prison term after a January 16, 2020, guilty plea to one count of failure to register as a sex offender.
At the guilty plea, Alvarado admitted that from November 19, 2018, through March 6, 2019, he knowingly failed to register or update his registration as required by the Sex Offender Registration and Notification Act in the Northern District of Iowa. Alvarado is required to register as a sex offender due to a December 10, 1998, conviction for unlawful sexual contact in the third degree in the State of Delaware. The investigation showed from November 19, 2018, through December 15, 2018, he worked and resided in Storm Lake; and from December 18, 2018, through March 6, 2019, he worked and resided in Sioux City. Law enforcement found that the State of Iowa Sex Offender Registry contained no record of Alvarado registering as a sex offender in Iowa prior to March 6, 2019.
Alvarado was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Alvarado was sentenced to 15 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Alvarado is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher 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-04059.
Follow us on Twitter @USAO_NDIA.
Schaller Sex Offender Sentenced to Federal Prison for Violating Supervised ReleaseRead the Press Release
A man on federal supervised release following his 2012 conviction for receipt of child pornography had his release revoked, and was sentenced to 15 months in federal prison.
Daniel Lindgren, age 33, from Schaller, Iowa, received the prison term after an April 9, 2020, revocation hearing. Lindgren was originally sentenced to 66 months’ imprisonment for his 2012 conviction, and was released from prison in March of 2016.
At the revocation hearing, Lindgren admitted having contact with a child under the age of 18, and failing to be truthful with his federal probation officer. At the hearing it was revealed that Lindgren, from September of 2019 through March of 2020, engaged in nearly daily text and voice communications with a minor. The minor was 15 years old when the communications began. Lindgren also met with the minor at a Denison restaurant during the same period.
Lindgren was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Lindgren was sentenced to 15 months’ imprisonment. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
“This case shows how important it is for child pornography offenders to be closely watched when they get out of prison,” said U.S. Attorney Peter Deegan. “I commend the United States Probation Office for doing an excellent job tracking Lindgren’s communications, and holding him accountable for his actions.”
Lindgren is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy Duax and investigated by the United States Probation Office for the Northern District of Iowa.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 11-CR-4076.
Follow us on Twitter @USAO_NDIA.
President’s Commission on Law Enforcement and the Administration of Justice Holds Teleconferences on Crime ReductionRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice held hearings on crime reduction, with panelists speaking about the national and local impact of violent crime, gun crime, and gangs. The hearings were held over three days via teleconference. Each teleconference featured a panel of expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 7, the Commission received testimony regarding the national and local impact of violent crime from Amy Blasher, Chief of the Crime Statistics Management Unit for the FBI; U.S. Attorney Justin Herdman for the Northern District of Ohio; Collin County (Texas) Sheriff Jim Skinner; Chief Steve Anderson, Metropolitan Nashville Police Department, and; Camden County (N.J.) Police Chief Scott Thomson (retired).
Testimony and discussions focused on the local and national trends of violent crime and the various initiatives law enforcement are implementing to address it. Chief Blasher recommended that “the nation’s law enforcement agencies fully support a transition to the National Incident-Based Reporting System to improve understanding violent crime … and create a framework for better assessment of crime reduction strategies.” U.S. Attorney Herdman stressed the importance of “community partnerships convened at the federal level and focused on violent crime prevention.” Sheriff Skinner discussed the importance of highway interdiction efforts; because sheriffs have jurisdiction over miles of state and federal highways, they are an asset to fighting weapons, drugs, cash, and human smuggling. Chief Anderson highlighted the importance of devoting resources to high crime neighborhoods, not based on an enforcement model, but to develop lasting relationships, which will transform the lives of the people who live there. Chief Thomson testified to the importance of repairing relationships in communities where high levels of mistrust of law enforcement exist, “community policing has to be meaningful and it has to be based upon human contact… [it’s] not just a squad car sitting there with its windows rolled up and the officer reading a paper or... texting on their phone.”
On Wednesday, April 8, the Commission heard testimony regarding gun crimes from Tom Chittum, Assistant Director of Field Operations, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Melissa Nelson, State Attorney, Florida’s 4th Judicial Circuit; Paul Neudigate, Assistant Chief, Cincinnati Police Department, and; U.S. Attorney Zachary Terwilliger for the Eastern District of Virginia.
Testimony and discussion focused on the impact of gun crimes on public safety and the tools needed to address it. Assistant Director Chittum provided detailed testimony of how firearms end up in the hands of criminals, whether through theft, straw purchases, or, becoming increasingly more common, privately made firearms. State Attorney Nelson, Assistant Chief Neudigate, and U.S. Attorney Terwilliger each testified to the importance of removing crime guns from the streets, engaging with communities to remove high impact players, increasing state and federal firearms prosecutions, and partnering with the ATF, whose expertise, particularly with ballistic technology, is critical to solving gun crimes. “Without ATF, the use of gunshot detection would not be as effective, as we would lack the ability to link the recovered shell casings to crime and individuals,” stated Chief Neudigate.
On Thursday, April 9, the Commission heard testimony regarding gangs from Tim Sini, District Attorney, Suffolk County, New York; Commissioner Geraldine Hart, Suffolk County, New York, Police Department; Victor Gonzalez, Director of Program Services, City of Houston Mayor’s Anti-Gang Office Department of Neighborhoods; and Robert Mateo, President of the National Alliance of Gang Investigators Associations.
Testimony and discussion focused on gang eradication and prevention. Commissioner Hart argued that targeted enforcement alone will not lead to the eradication of MS13 in Suffolk County communities. Success requires law enforcement to partner with community members, schools, clergy, and other community stakeholders. District Attorney Sini discussed the importance of electronic surveillance in eradicating criminal organizations. He advocated for smart investment in technology for local law enforcement. Director Gonzalez discussed prevention and intervention, particularly in schools, to stop at-risk youth from joining gangs. President Mateo testified that laws – even language – have been slow to respond to the evolution of criminal gangs and how they operate. He recommends strengthening state and federal laws to afford prosecutors the tools they need to prosecute gang members for violent crimes.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice. Audio recordings and transcripts of the hearings will be posted online once available.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Mt. Pleasant Man Sentenced in Virtual Proceeding to 24 Years for String of Armed RobberiesRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that D’Angelo Antonio Coakley, 30, of Mount Pleasant, was sentenced via teleconference to 24 years in federal prison after pleading guilty to a series of armed robberies that culminated in a high-speed chase and shots fired at South Carolina Highway Patrol Officers.
“It’s important for those who choose to commit crimes to know that even in the pandemic the U.S. Attorney’s Office is open for business,” said U.S. Attorney McCoy. “We will hold those who break the law accountable.”
Evidence presented to the court showed Coakley was charged along with three co-defendants: Julius Hamilton Washington, 29, of Summerville; Malik Juwan Gadist, 23, of Mount Pleasant; and Paul Anthony Walker, 24, of Goose Creek. The four were indicted in 2018 and charged with robbing multiple businesses and business employees at gunpoint. Information provided at Coakley’s guilty plea established that the four defendants conspired to commit multiple armed robberies of businesses, including a Dollar General Store in Awendaw, a Verizon Store in Summerville, and a Verizon Store in Waxhaw, North Carolina.
The string of robberies ended shortly after the four robbed the Verizon Store in Waxhaw on February 10, 2017. Like in other robberies, the four held the store employee at gunpoint while they stole cell phones and electronic devices from the store’s safe. Immediately after the robbery the defendants were tracked from North Carolina into South Carolina, where Troopers with the South Carolina Highway Patrol located their car and attempted to stop them. The defendants did not stop, and instead fled at high speeds and fired shots at the pursuing Troopers. No Troopers were hit by the shots, and the pursuing Troopers were eventually able to push the defendants’ car into a median where it crashed, and all four defendants fled. Investigators were able to identify each defendant and determine their involvement in the crimes.
Coakley is the third defendant to be sentenced. Defendant Walker was previously sentenced to 10 years imprisonment, defendant Gadist was sentenced to 15 years imprisonment, and defendant Washington has yet to be sentenced.
United States District Court Judge David C. Norton sentenced Coakley to 288 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system. The sentencing was conducted virtually by telephone under the CARES Act passed by Congress last month, so that the parties did not appear in the courtroom.
The case was investigated by the Federal Bureau of Investigation, Charleston County Sheriff’s Office, Dorchester County Sheriff’s Office, Richland County Sheriff’s Department, South Carolina Department of Public Safety Highway Patrol, South Carolina Law Enforcement Division, and Waxhaw, North Carolina, Police Department.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.
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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.
Man Charged with Trafficking Almost $30 Million in Drugs through Cross-Border TunnelRead the Press Release
SAN DIEGO – Rogelio Flores Guzman, a Mexican national with legal residency in the U.S., was charged today with trafficking in fentanyl, methamphetamine, heroin, cocaine and marijuana via a subterranean tunnel stretching from Mexico to a warehouse in Otay Mesa.
Flores, who was known to live in Victorville, Las Vegas and Otay Mesa, was taken into custody at Los Angeles International Airport yesterday as he was boarding a plane to Guadalajara, Mexico. He was arraigned this afternoon in federal court before U.S. Magistrate Judge Barbara L. Major via live video because of COVID-19 precautions. The judge ordered that he be detained without bond after the government argued that he was a flight risk.
“Cross-border tunnels always spark fascination, but in reality they are a very dangerous means for major drug dealers to move large quantities of narcotics with impunity until we intervene,” said U.S. Attorney Robert Brewer. “We have seized this tunnel, confiscated almost $30 million in drugs and now we’ve charged one of the alleged crew members. They can dig tunnels, but we will find them, fill them in and put the leaders in prison.”
“This arrest reflects the unyielding commitment of the law enforcement community to curb the flow of illicit narcotics and keep our neighborhoods safe,” said Cardell T. Morant, acting Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. “Despite the challenges we all face as we endure this pandemic, our federal agents and officers who make up the San Diego Tunnel Task Force, working alongside the U.S Attorney’s Office and local law enforcement, continue to investigate and serve justice to those involved with the construction and operation of this tunnel.”
“The DEA and our partners on the San Diego Tunnel Task Force are committed to finding cross-border tunnels, shutting them down, and holding people accountable for building, operating and using these tunnels to bring deadly drugs into our country,” said DEA Special Agent in Charge John W. Callery. “Today’s charges against one of the alleged crew members demonstrates our determination to do so. If any member of the public has information about a possible tunnel, I encourage them to contact the San Diego Tunnel Task Force at 1-877-9TUNNEL (1-877-988-6635).”
“We are grateful for the resolve, perseverance, and hard work that our law enforcement partners have demonstrated in making this arrest,” said Chief Patrol Agent Aaron Heitke, “Collaboratively, the task force has shut-down the tunnel, seized over two tons of narcotics, and made this crucial arrest despite the current challenges. Our agents remain vigilant and dedicated to protecting America.”
On March 20, 2020, pursuant to the service a federal search warrant issued by U.S. Magistrate Judge Mitchel D. Dembin, federal agents discovered an exit-point for a subterranean transnational tunnel within a commercial warehouse located at 2587 Otay Center Drive, occupied by Big Brands Warehouse Sales Corporation.
From the entry-point in Mexico, the tunnel continues northbound, crossing the international border, with its exit-point located within the Otay Warehouse. Within this tunnel, agents located approximately 575 packages. Based upon field-tests, these packages tested presumptively positive to contain controlled substances in the following approximate gross amounts:
- 394 packages containing 585 kilograms of cocaine;
- 133 packages containing 1355 kilograms of marijuana;
- 40 packages of containing 39.12 kilograms of methamphetamine;
- Seven packages containing 7.74 kilograms of heroin; and
- One package containing 1.1 kilograms of fentanyl.
According to a complaint, federal agents conducting surveillance had seen Flores Guzman frequently come and go from the Otay Warehouse over the course of several months.
On March 18, agents conducting surveillance saw Flores Guzman leave the Otay Warehouse as the driver and sole visible occupant of a medium sized box-truck (a truck that had a separate cargo area that was only accessible from the back of the truck). As agents proceeded to follow, the defendant started to drive in a way that made agents believe he was aware that he was being followed. Specifically, at one point, the defendant pulled over, parked in a no parking zone, and briskly walked away from the Box Truck. Agents approached the parked Box Truck and, through a gap in the back door of the truck’s cargo compartment, agents were able to see human fingers, indicating that there were several people located in the Box Truck’s cargo compartment. Within the cargo area, agents located 10 people who later self-identified as Mexican nationals who did not legally enter the United States. The defendant was released pending further investigation.
On April 9, agents contacted the defendant at the Los Angeles International Airport as he waited to board a flight to Guadalajara, Mexico. The complaint said that during this contact, agents verbally advised the defendant of his Miranda rights, and he admitted participating in the tunnel construction, controlling access to the tunnel and personally transporting drugs through the tunnel.
He was charged with Conspiracy to Distribute Controlled Substances.
The discovery of the tunnel resulted from an ongoing investigation by members on the San Diego Tunnel Task Force, which include Homeland Security Investigations, U.S. Border Patrol, the Drug Enforcement Administration and the United States Attorney’s Office.
The large seizure of mixed drugs represents the first time in San Diego’s history where five different types of drugs were found inside a tunnel. The total street value of the drugs seized from the tunnel is estimated at $29.6 million.
The tunnel extends for more than 2,000 feet underground from a warehouse in Tijuana, Mexico to a warehouse in the Otay Mesa area of San Diego. The tunnel has an average depth of 31 feet and is three-feet wide through most of the passageway.
Agents estimate the tunnel has been in existence for several months due to the advanced construction observed in several portions of the passageway, which included reinforced walls, ventilation, lighting and an underground rail system.
Flores Guzman’s next court appearances are scheduled for April 23 and May 7 at 9:30 a.m. before Judge Major.
DEFENDANT Case Number 20MJ1367
Rogelio Flores Guzman Age: 54 Victorville, Las Vegas, Chula Vista, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Secs. 841 (a)(1) and 846
Maximum Penalty: Life in prison, 10-year mandatory minimum; $10 million fine
AGENCY
Homeland Security Investigations
U.S. Drug Enforcement Administration
U.S. Border Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Medicaid Fraud Indictment Alleges False Claims for Caregiver ServicesRead the Press Release
United States Attorney Mark A. Klaassen announced today that Holly Lundahl, age 63, was arrested on April 6, 2020 in Rapid City, South Dakota following an indictment by a federal grand jury in Wyoming for three counts of health care fraud and two counts of aggravated identity theft. The charges involve allegedly fraudulent claims submitted to the Wyoming Medicaid program. The indictment is part of an ongoing investigation conducted by the Wyoming Attorney General’s Medicaid Fraud Control Unit.
According to the indictment, Lundahl submitted false documentation to the Wyoming Medicaid program to register two individuals as care providers for a disabled Medicaid beneficiary. The indictment further alleges that Lundahl submitted claims for services in both individuals’ names despite the fact that neither of these individuals provided the claimed services. Lundahl also allegedly signed herself up as a care provider using false documentation and contrary to Wyoming Medicaid rules. In total, Lundahl allegedly submitted over $73,000 worth of fraudulent claims between June 2016 and January 2020.
“My office, in cooperation with the Medicaid Fraud Control Unit, is focused on protecting this important program from fraud,” said U.S. Attorney Mark Klaassen. “False claims undermine the integrity of the system and limit our ability to help those who rely on the program for legitimate needs.”
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
The Wyoming Attorney General’s Medicaid Fraud Control Unit investigates and prosecutes fraud by those providing health care services or goods to Medicaid beneficiaries. The unit also investigates and prosecutes instances of abuse, neglect, and exploitation in Medicaid funded health care facilities. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit the Unit’s website at http://ag.wyo.gov/medicaid-fraud-control-unit.
Louisiana Department of Children and Family Services Agrees to Pay over $3.9 Million to Resolve False Claims Act Liability in Connection with SNAP Quality ControlRead the Press Release
The Louisiana Department of Children and Family Services (DCFS) has agreed to pay the United States $3,984,254 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
“SNAP is an important vehicle for helping families in need,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement is an example of the department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“Although it is appalling that these actions occurred within a state agency entrusted with assisting vulnerable and needy residents, I am heartened that LDCFS has resolved its liability and cooperated with our investigation,” said U.S. Attorney William D. Hyslop for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA, Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
Under SNAP, the USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits, and to perform quality control to ensure that eligibility decisions are accurate. The USDA requires that the states’ quality control processes ensure that benefits are correctly awarded, are free from bias, and accurately report states’ error rates in making eligibility decisions.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement resolves allegations that beginning in 2011, DCFS contracted with a consultant known as Julie Osnes Consulting LLC (Osnes Consulting) to provide advice and recommendations designed to lower its SNAP quality control error rate. The United States alleged that Osnes Consulting’s recommendations, as implemented by DCFS, injected bias into DCFS’s quality control process and resulted in DCFS submitting false quality control data and information to USDA, for which it received unentitled performance bonuses for fiscal years 2012 and 2013.
This is the sixth settlement in this matter, and the fifth settlement with a state agency for manipulating its SNAP quality control findings. The United States has reached previous settlements with state agencies in Virginia, Wisconsin, Texas, and Alaska, as well as with Osnes Consulting and its owner, Julie Osnes. Including this settlement, the United States has now recovered over $36 million in connection with this investigation.
The settlement was the result of a joint investigation conducted by the USDA-OIG, the U.S. Attorney’s Office for the Eastern District of Washington, and the Department of Justice’s Civil Division, Commercial Litigation Branch. The investigation arose out of a nationwide audit of SNAP Quality Control processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant U.S. Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil 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.