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Newest first across public DOJ and U.S. Attorney press releases.
10 April 2020
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 Supplemental Nutrition Assistance Program (SNAP), the Department of Justice announced today. Until 2008, SNAP was known as the Food Stamp Program.
Under SNAP, the U.S. Department of Agriculture (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.
“SNAP is an important vehicle for helping families in need,” said Assistant Attorney General Joseph H. Hunt, head of the Justice Department’s Civil Division. “This settlement is an example of the Justice 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 DCFS has resolved its liability and cooperated with our investigation,” said William D. Hyslop, United States Attorney 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.”
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. 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. The USDA 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 DCFS, beginning in 2011, 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 and improperly receiving 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.
“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.”
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 QC processes by the USDA-OIG. The investigation for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States 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.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 9 was:
Keith Charles Harrison, 32, of Great Falls, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Harrison faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Harrison was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Great Falls Police Department and Russell Country Drug Task Force investigated the case. Pacer case reference. 20-21.
If the above case is of interest to your media organization and the community it serves, we encourage you to monitor its progress through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Georgia Man Arrested for Attempting to Defraud the Department of Veterans Affairs in a Multimillion-Dollar COVID-19 ScamRead the Press Release
WASHINGTON — Christopher Parris, a 39-year-old Atlanta, Georgia resident, was arrested today and charged in federal court in the District of Columbia with fraud for attempting to sell millions of nonexistent respirator masks to the Department of Veterans Affairs in exchange for large upfront payments, the Justice Department announced.
The criminal complaint charges Parris with wire fraud. It alleges that he made and caused to be made a series of fraudulent misrepresentations in an attempt to secure orders from the Department of Veterans Affairs for 125 million face masks and other personal protective equipment (PPE) that would have totaled over $750 million. For example, the complaint alleges that Parris promised that he could obtain millions of genuine 3M masks from domestic factories when he knew that fulfilling the orders would not be possible. Parris also allegedly made similar false representations to other entities in an effort to enter into other fraudulent agreements to sell PPE to state governments.
“We will vigorously pursue fraudsters who exploit the COVID-19 pandemic to make money,” said Attorney General William Barr. “As this case demonstrates, even beyond the typical costs associated with unlawful behavior, COVID-19 scams divert government time and resources and risk preventing front-line responders and consumers from obtaining the equipment they need to combat this pandemic. The Department of Justice will not tolerate this conduct, especially when it involves this kind of egregious attempt to target and defraud our nation’s treasures – our veterans.”
After arrest, Parris appeared before Chief United States Magistrate Judge Alan J. Baverman in the United States District Court for the Northern District of Georgia, where he was ordered detained. Parris will be extradited to the District of Columbia.
“During this time of crisis, fraud or attempted fraud impacting services for veterans, who have selflessly served this country, is unconscionable,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “My office will devote whatever resources are necessary to stop scams aimed at exploiting Americans during this unprecedented pandemic.”
“We are committed to protecting the integrity of taxpayer funds and ensuring the delivery of medical supplies necessary to provide quality healthcare to our nation’s veterans, and any attempt to exploit the current global COVID-19 pandemic for personal gain will be dealt with swiftly,” said Inspector General Michael J. Missal for the Department of Veterans Affairs. “Today’s charges are the direct result of the expeditious and tireless efforts of special agents of the Department of Veterans Affairs, Office of Inspector General, working in tandem with our law enforcement partners at the Department of Justice and Homeland Security Investigations.”
“Homeland Security Investigations special agents have sworn an oath to protect the American public, particularly during this health crisis, from opportunistic individuals who seek to deliberately harm and deceive others for their own profit," said Special Agent in Charge Jere T. Miles, Homeland Security Investigations – New Orleans. “Today, our special agents have shown their commitment to that promise.”
A criminal complaint is an accusation by a federal law enforcement agent, and defendants are entitled to the presumption of innocence unless proven guilty. Upon conviction for the wire fraud charge, the maximum statutory penalty is 20 years’ imprisonment and a $250,000 fine.
The Department of Veterans Affairs, Office of the Inspector General and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Peter Lallas and Zia Faruqui of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Trial Attorney Patrick Runkle of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorneys Alison Prout and Theodore S. Hertzberg of the U.S. Attorney’s Office for the Northern District of Georgia provided substantial assistance.
Information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Columbia, visit its website at https://www.justice.gov/usao-dc.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected].
Georgia Man Arrested for Attempting to Defraud the Department of Veterans Affairs in a Multimillion-Dollar COVID-19 ScamRead the Press Release
Christopher Parris, a 39-year-old Atlanta, Georgia resident, was arrested today and charged in federal court in the District of Columbia with fraud for attempting to sell millions of nonexistent respirator masks to the Department of Veterans Affairs in exchange for large upfront payments, the Justice Department announced.
The criminal complaint charges Parris with wire fraud. It alleges that he made and caused to be made a series of fraudulent misrepresentations in an attempt to secure orders from the Department of Veterans Affairs for 125 million face masks and other personal protective equipment (PPE) that would have totaled over $750 million. For example, the complaint alleges that Parris promised that he could obtain millions of genuine 3M masks from domestic factories when he knew that fulfilling the orders would not be possible. Parris also allegedly made similar false representations to other entities in an effort to enter into other fraudulent agreements to sell PPE to state governments.
“We will vigorously pursue fraudsters who exploit the COVID-19 pandemic to make money,” said Attorney General William Barr. “As this case demonstrates, even beyond the typical costs associated with unlawful behavior, COVID-19 scams divert government time and resources and risk preventing front-line responders and consumers from obtaining the equipment they need to combat this pandemic. The Department of Justice will not tolerate this conduct, especially when it involves this kind of egregious attempt to target and defraud our nation’s treasures – our veterans.”
After arrest, Parris appeared before Chief United States Magistrate Judge Alan J. Baverman in the United States District Court for the Northern District of Georgia, where he was ordered detained. Parris will be extradited to the District of Columbia.
“During this time of crisis, fraud or attempted fraud impacting services for veterans, who have selflessly served this country, is unconscionable,” said U.S. Attorney Timothy Shea for the District of Columbia. “My office will devote whatever resources are necessary to stop scams aimed at exploiting Americans during this unprecedented pandemic.”
“We are committed to protecting the integrity of taxpayer funds and ensuring the delivery of medical supplies necessary to provide quality healthcare to our nation’s veterans, and any attempt to exploit the current global COVID-19 pandemic for personal gain will be dealt with swiftly,” said Inspector General Michael J. Missal for the Department of Veterans Affairs. “Today’s charges are the direct result of the expeditious and tireless efforts of special agents of the Department of Veterans Affairs, Office of Inspector General, working in tandem with our law enforcement partners at the Department of Justice and Homeland Security Investigations.”
“Homeland Security Investigations special agents have sworn an oath to protect the American public, particularly during this health crisis, from opportunistic individuals who seek to deliberately harm and deceive others for their own profit," said Special Agent in Charge Jere T. Miles, Homeland Security Investigations – New Orleans. “Today, our special agents have shown their commitment to that promise.”
A criminal complaint is an accusation by a federal law enforcement agent, and defendants are entitled to the presumption of innocence unless proven guilty. Upon conviction for the wire fraud charge, the maximum statutory penalty is 20 years’ imprisonment and a $250,000 fine.
The Department of Veterans Affairs, Office of the Inspector General and Homeland Security Investigations investigated the case. Trial Attorney Patrick Runkle of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorneys Peter Lallas and Zia Faruqui of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Assistant U.S. Attorneys Alison Prout and Theodore S. Hertzberg of the U.S. Attorney’s Office for the Northern District of Georgia provided substantial assistance.
Information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Columbia, visit its website at https://www.justice.gov/usao-dc.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Federal Investigation into Conditions at a Nursing Home for Veterans in Massachusetts AnnouncedRead the Press Release
BOSTON – The United States Attorney’s Office for the District of Massachusetts and the Department of Justice’s Civil Rights Division have opened an investigation into the Soldiers’ Home in Holyoke to examine whether the Soldiers’ Home violated the rights of residents by failing to provide them adequate medical care generally, and during the coronavirus pandemic.
The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) which gives the Department the authority to investigate violations of the U.S. Constitution and federal law that result from a “pattern or practice of resistance to the full enjoyment of such rights” in state-run institutions, including nursing facilities. The federal civil investigation will be separate from any state or independent investigation.
“It would be difficult to overstate our obligation to the health and well-being of elderly and disabled military veterans and, by extension, to their families. The federal Civil Rights of Institutionalized Persons Act specifically protects the rights of those confined in state facilities like the Holyoke Soldiers’ Home,” said U.S. Attorney Andrew Lelling. “We will aggressively investigate recent events at the Home and, as needed, require the Commonwealth to adopt reforms to ensure patient safety in the future. My condolences to the families of those veterans who died while in the Home’s care; we will get to the bottom of what happened here.”
“Our hearts go out to the families of the veterans who passed away,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “We owe it to the veterans, their families, and the public to investigate the facts, determine what happened, ensure compliance with the Civil Rights of Institutionalized Persons Act, and protect those veterans who continue to reside at the Soldiers’ Home.”
The Civil Rights Unit at the U.S. Attorney’s Office for the District of Massachusetts and the Justice Department’s Civil Rights Division’s Special Litigation Section are jointly conducting the investigation. Residents of Soldiers’ Home and families are encouraged to contact the Department via phone at 1-888-221-6023 or by email at [email protected].
For more information regarding the case, please visit: https://www.justice.gov/usao-ma/federal-investigation-soldiers-home-holyoke
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/USAO-ma/civil-rights.
Federal Investigation into Conditions at a Nursing Home for Veterans in Massachusetts AnnouncedRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts have opened an investigation into the Soldiers’ Home in Holyoke to examine whether the Soldiers’ Home violated the rights of residents by failing to provide them adequate medical care generally, and during, the coronavirus pandemic.
The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) which gives the department the authority to investigate violations of the U.S. Constitution and federal law that result from a “pattern or practice of resistance to the full enjoyment of such rights” in state-run institutions, including nursing facilities. The federal civil investigation will be separate from any state or independent investigation.
“Our hearts go out to the families of the veterans who passed away,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “We owe it to the veterans, their families, and the public to investigate the facts, determine what happened, ensure compliance with the Civil Rights of Institutionalized Persons Act, and protect those veterans who continue to reside at the Soldiers’ Home.”
“It would be difficult to overstate our obligation to the health and well-being of elderly and disabled military veterans and, by extension, to their families. The federal Civil Rights of Institutionalized Persons Act specifically protects the rights of those confined in state facilities like the Holyoke Soldiers’ Home,” said U.S. Attorney Andrew Lelling. “We will aggressively investigate recent events at the Home and, as needed, require the Commonwealth to adopt reforms to ensure patient safety in the future. My condolences to the families of those veterans who died while in the Home’s care; we will get to the bottom of what happened here.”The Civil Rights Division’s Special Litigation Section and the Civil Rights Unit at the United States Attorney’s Office for the District of Massachusetts are jointly conducting the investigation. Residents of Soldiers’ Home and families are encouraged to contact the department via phone at 1-888-221-6023 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/USAO-ma/civil-rights.
Detroit Man Charged with Carjacking and Firearms Offenses Carjacked a retired police officer and shot up a gas stationRead the Press Release
A Detroit man was charged yesterday with carjacking, using a firearm in relation to a crime of violence and being a felon in possession of a firearm, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steven M. D'Antuono, Federal Bureau of Investigation.
Ivan Xavier Armstrong, 36, was arrested and is currently in the custody of the Michigan Department of Corrections on a parole hold.
“The Coronavirus might slow some things down, but it won’t slow down law enforcement who continue to pursue violent criminals in the midst of this pandemic,” said United States Attorney Matthew Schneider. “Our FBI and federal agents are working hard every day to keep our streets safe.”
"Armstrong's arrest is proof that - in spite of the pandemic - the FBI's mission to combat violent crime goes on unabated," said Special Agent in Charge D'Antuono. "I am grateful to the agents and prosecutors who worked quickly and decisively to remove Armstrong from our community."
According to the criminal complaint, during the early morning hours of April 3, Armstrong allegedly went on a two hour violent crime spree that included kicking in the front door of his mother’s house located on the eastside of Detroit, preventing her from leaving the home, damaging her phone and firing shots at her house. Armstrong then left the area on foot and approached a man sitting in his car. Armstrong tapped the window with his gun and ordered the victim to get out the car. Armstrong then racked the gun at which time the victim exited his vehicle. The victim was then robbed of his wallet which contained his retired police officer credentials.
The complaint further alleges that at approximately 5:04 am, Detroit Police responded to a call for shots fired at a gas station, located at 14820 East Jefferson Avenue in the city of Detroit. The shooter was gone at the time of their arrival, however a review of high definition video taken by numerous cameras installed at the gas station revealed that Armstrong arrived at the gas station in the Hyundai Sonata he had carjacked from the retired police officer. The video from the gas station shows a physical fight ensued and that Armstrong fired several shots at people inside the store. No one was injured. Later that morning, Armstrong was arrested after having broken in to a residence on Alter Rd, in Detroit.
United States Attorney Matthew Schneider, in announcing the charges, praised the agents of the FBI for their diligent work on this case and getting Armstrong off the streets.
If convicted, Armstrong could face decades in federal prison.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
Couple Charged with Committing Armed Robberies of Five Connecticut Gas Stations in MarchRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that WILLIAM ROSARIO LOPEZ, 34, of New Haven, and SOLIMAR RODRIGUEZ GONZALEZ, 19, of New Britain, have been charged with federal offenses related to their participation in the armed robberies of five Connecticut gas stations last month.
Rosario Lopez and Gonzalez were arrested yesterday. Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the defendants were presented in court via videoconference. Rosario Lopez is detained and Gonzalez was released on bond.
As alleged in court documents and statements made in court:
On March 18, 2020, Rosario Lopez entered the Shell Gas Station located at 1302 Hartford Turnpike in Vernon. Rosario Lopez, wearing a black mask, pointed a small silver pistol at the store employee, grabbed him by the collar, directed him to walk to the cash register, and struck him in the back of the head as they were walking to the cash register. The employee opened the cash register and handed Rosario Lopez approximately $1,188. Rosario Lopez ordered the employee to lay on the floor and then fled the store.
On March 22, 2020, at approximately 10 p.m., Rosario Lopez entered the Fleet Gas Station located at 1611 Meriden Waterbury Turnpike in Southington. Rosario Lopez, wearing a surgical-type mask, pointed a silver pistol at the store employee and demanded money. After the employee provided Rosario Lopez with approximately $200, Rosario Lopez said, “Give me everything else.” The employee explained that all of the money was already in the safe and he did not know the combination. Rosario Lopez kicked the employee, ordered him to lay on the floor and then fled the store.
On March 22, 2020, approximately one hour after the Southington robbery, Rosario Lopez entered the Shell Gas Station located at 883 Hamilton Avenue in Waterbury. Rosario Lopez, wearing a surgical-type mask, pointed a small silver pistol at the store employee and demanded money. The employee opened the cash register and provided approximately $500 to Rosario Lopez. Rosario Lopez ordered the employee to lay on the floor and then fled the store.
On March 23, 2020, less than two hours after the Waterbury robbery, Rosario Lopez entered the Shell Gas Station located at 696 Main Street in Ansonia. Rosario Lopez, wearing a surgical-type mask, pointed a small silver pistol at the store employee, demanded money and threatened to shoot the employee. After the employee was unable to open the cash register quickly, Rosario Lopez fired one round in the direction of employee and then fled. The employee was not struck by the projectile.
On March 26, 2020, Rosario Lopez entered the Citgo Gas Station located at 788 West Main Street in New Britain. Rosario Lopez, wearing a surgical-type mask, waited for another customer to leave the store, approached the counter, pointed a small silver pistol at the store employee and demanded money. The employee opened the cash register and Rosario Lopez took approximately $250 from the register drawer. Rosario then fled the store.
It is alleged that Gonzalez acted as a “lookout” in at least two of the robberies, and she is depicted on store video surveillance just prior to the robberies that occurred in Vernon and Waterbury.
In association with the arrests of Rosario Lopez and Gonzalez, investigators searched a vehicle used by the defendants during the alleged robberies and recovered a silver .25 caliber semiautomatic pistol and 14 rounds of ammunition.
It is also alleged that Rosario Lopez’s criminal history includes convictions in New York for attempted murder and criminal possession of a weapon, and convictions in Puerto Rico for importation and unlawful possession of a firearm, aggravated kidnapping, aggravated assault with a firearm, unlawful possession of a firearm, threatening a witness, and aggravated robbery.
The federal criminal complaints charge Rosario Lopez and Gonzalez with Hobbs Act Robbery and conspiracy to commit Hobbs Act Robbery, offenses that carry a maximum term of imprisonment of 20 years on each count. If Rosario Lopez is convicted of brandishing a firearm during a robbery, he faces a mandatory minimum term of imprisonment of seven years, and if he is convicted of discharging a firearm during the Ansonia robbery, he faces a mandatory minimum term of imprisonment of 10 years.
Rosario Lopez is also charged with possession of a firearm by a previously convicted felon, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the Connecticut State Police, and the Vernon, Southington, Waterbury, Ansonia, New Britain, New Haven and Guilford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Patrick Doherty.
Contract Rehab Provider to Pay $4 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Encore Rehabilitation Services LLC (Encore) has agreed to pay $4.03 million to resolve allegations that Encore violated the False Claims Act by knowingly causing three Michigan skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Encore, based in Farmington Hills, Michigan, provides rehabilitation services to patients at over 600 health care facilities, including skilled nursing facilities, in over 30 states.
“Today’s settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Deputy Assistant Attorney General Michael Granston of the Department of Justice’s Civil Division. “Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they knowingly provide patients with unnecessary or ineligible services.”
This settlement resolves allegations that Encore’s policies and practices at three Michigan skilled nursing facilities resulted in the provision of unreasonable, unnecessary, or unskilled rehabilitation therapy or the recording of therapy minutes as individual therapy when concurrent or group therapy was actually provided. The settlement relates to Encore’s alleged conduct at the Autumn Woods Healthcare Facility in Warren, Michigan between Sept. 1, 2012, and July 31, 2018, the Bay Shores Senior Care and Rehab Center in Bay City, Michigan, for the period from April 1, 2013, to April 6, 2017, and MediLodge of Yale in Yale, Michigan, for the period from Oct. 1, 2010, to April 6, 2017.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “We are committed to working with our federal partners to protect both vulnerable Michiganders and these helpful healthcare programs.”
“The resolution announced today demonstrates my office’s commitment to aggressively pursuing providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profits.”
Contemporaneous with the civil settlement, Encore entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
“The submission of claims for unreasonable, unnecessary or unskilled rehabilitative services is improper and unacceptable,” said Special Agent in Charge Lamont Pugh III, HHS-OIG – Chicago Region. “The public expects that proper services will be provided and that tax payer dollars will not be wasted. OIG Corporate Integrity Agreements help to ensure that contracted providers, who have caused improper billing practices change their behavior.”
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Linda Anderson, Reza Saffarian and Audrey Theile, and Adam LaFerriere, former Encore employees. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. The amount to be recovered by the private parties in this matter has not been determined.
The matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Michigan and the Western District of Michigan, and the HHS-OIG.
The three qui tam cases are docketed as United States ex rel. Anderson v. Encore Rehabilitation Services, LLC, No. 2:14-cv-13759 (E.D. MI), United States ex rel. Saffarian, et al. v. Encore Rehabilitation Services, LLC, et al., No. 1:16-cv-605 (W.D. MI), and United States, et al., ex rel. LaFerriere v. Encore Rehabilitation Services, LLC, et al., No. 1:17-cv-95 (W.D. MI). The claims resolved by the settlement are allegations only; 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.
Contract Rehab Provider to Pay $4 Million to Resolve False Claims Act Allegations Relating to the Provisions of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
GRAND RAPIDS, MI – Encore Rehabilitation Services LLC (Encore) has agreed to pay $4.03 million to resolve allegations that Encore violated the False Claims Act by knowingly causing three Michigan skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Encore, based in Farmington Hills, Michigan, provides rehabilitation services to patients at over 600 health care facilities, including skilled nursing facilities, in over thirty states.
"Today’s settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests," said Deputy Assistant Attorney General Michael Granston of the Department of Justice’s Civil Division. "Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they knowingly provide patients with unnecessary or ineligible services."
This settlement resolves allegations that Encore’s policies and practices at three Michigan skilled nursing facilities resulted in the provision of unreasonable, unnecessary, or unskilled rehabilitation therapy or the recording of therapy minutes as individual therapy when concurrent or group therapy was actually provided. The settlement relates to Encore’s alleged conduct at the Autumn Woods Healthcare Facility in Warren, Michigan between Sept. 1, 2012, and July 31, 2018, the Bay Shores Senior Care and Rehab Center in Bay City, Michigan, for the period from April 1, 2013, to April 6, 2017, and MediLodge of Yale in Yale, Michigan, for the period from Oct. 1, 2010, to April 6, 2017.
"Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens," said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. "We are committed to working with our federal partners to protect both vulnerable Michiganders and these helpful healthcare programs."
"The resolution announced today demonstrates my office’s commitment to aggressively pursuing providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients," said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. "It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profits."
Contemporaneous with the civil settlement, Encore entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Health and Human Services – Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
"The submission of claims for unreasonable, unnecessary or unskilled rehabilitative services is improper and unacceptable," said Special Agent in Charge Lamont Pugh III, HHS-OIG – Chicago Region. "The public expects that proper services will be provided and that tax payer dollars will not be wasted. OIG Corporate Integrity Agreements help to ensure that contracted providers, who have caused improper billing practices change their behavior."
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Linda Anderson, Reza Saffarian and Audrey Theile, and Adam LaFerriere, former Encore employees. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. The amount to be recovered by the private parties in this matter has not been determined.
The matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Michigan and the Western District of Michigan, and the HHS-OIG.
The three qui tam cases are docketed as United States ex rel. Anderson v. Encore Rehabilitation Services, LLC, No. 2:14-cv-13759 (E.D. MI), United States ex rel. Saffarian, et al. v. Encore Rehabilitation Services, LLC, et al., No. 1:16-cv-605 (W.D. MI), and United States, et al., ex rel. LaFerriere v. Encore Rehabilitation Services, LLC, et al., No. 1:17-cv-95 (W.D. MI). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Contract Rehab Provider to Pay $4 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Encore Rehabilitation Services LLC (Encore) has agreed to pay $4.03 million to resolve allegations that Encore violated the False Claims Act by knowingly causing three Michigan skilled nursing facilities to submit false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Encore, based in Farmington Hills, Michigan, provides rehabilitation services to patients at over 600 health care facilities, including skilled nursing facilities, in over thirty states.
“Today’s settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Deputy Assistant Attorney General Michael Granston of the Department of Justice’s Civil Division. “Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they knowingly provide patients with unnecessary or ineligible services.”
This settlement resolves allegations that Encore’s policies and practices at three Michigan skilled nursing facilities resulted in the provision of unreasonable, unnecessary, or unskilled rehabilitation therapy or the recording of therapy minutes as individual therapy when concurrent or group therapy was actually provided. The settlement relates to Encore’s alleged conduct at the Autumn Woods Healthcare Facility in Warren, Michigan between Sept. 1, 2012, and July 31, 2018, the Bay Shores Senior Care and Rehab Center in Bay City, Michigan, for the period from April 1, 2013, to April 6, 2017, and MediLodge of Yale in Yale, Michigan, for the period from Oct. 1, 2010, to April 6, 2017.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “We are committed to working with our federal partners to protect both vulnerable Michiganders and these helpful healthcare programs.”
“The resolution announced today demonstrates my office’s commitment to aggressively pursuing providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Andrew Byerly Birge for the Western District of Michigan. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profits.”
Contemporaneous with the civil settlement, Encore entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Health and Human Services – Office of Inspector General (HHS-OIG) requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The CIA requires training, auditing, and monitoring designed to address the conduct at issue in the case.
“The submission of claims for unreasonable, unnecessary or unskilled rehabilitative services is improper and unacceptable,” said Special Agent in Charge Lamont Pugh III, HHS-OIG – Chicago Region. “The public expects that proper services will be provided and that tax payer dollars will not be wasted. OIG Corporate Integrity Agreements help to ensure that contracted providers, who have caused improper billing practices change their behavior.”
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Linda Anderson, Reza Saffarian and Audrey Theile, and Adam LaFerriere, former Encore employees. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery. The amount to be recovered by the private parties in this matter has not been determined.
The matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Michigan and the Western District of Michigan, and the HHS-OIG.
The three qui tam cases are docketed as United States ex rel. Anderson v. Encore Rehabilitation Services, LLC, No. 2:14-cv-13759 (E.D. MI), United States ex rel. Saffarian, et al. v. Encore Rehabilitation Services, LLC, et al., No. 1:16-cv-605 (W.D. MI), and United States, et al., ex rel. LaFerriere v. Encore Rehabilitation Services, LLC, et al., No. 1:17-cv-95 (W.D. MI). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Camp Verde Man Sentenced to 106 Months in Prison for Failing to Register as a Sex OffenderRead the Press Release
PHOENIX, Ariz. – On March 2, Ellias Clint Thompson, 29, of Camp Verde, Arizona, was sentenced by U.S. District Judge Steven P. Logan to 106 months in federal prison.
In December 2019, Thompson pleaded guilty to Failure to Register as a Convicted Sex Offender in case number CR-19-8228. Thompson also admitted to violating conditions of his lifetime supervised release in two prior cases, CR-16-8198 and CR-13-8200. Upon release from prison, Thompson will remain on supervised release for life.
On May 17, 2019, while on supervised release in the 2013 and 2016 cases, Thompson absconded from a residential re-entry center. He then failed to register as a sex offender as required. Thompson is an enrolled member of the Yavapai Apache Nation.
The Yavapai-Apache Police Department and the United States Marshals Service conducted the investigation in this case. Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-8228-PCT-SPL
RELEASE NUMBER: 2020-046_Thompson# # #
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.Akron man charged with possession and receipt of child pornographyRead the Press Release
Matthew Barlow, age 38, of Akron was arrested this week on a federal complaint charging him with possession/access with intent to view child pornography and receipt of child pornography.
According to the affidavit in support of the complaint, from February 2016 through March 2020, Barlow used an email account to receive and possess approximately 1,483 images of child pornography which contained visual depictions of real minors engaged in sexually explicit conduct. Furthermore, the affidavit states that some of the images may have depicted a minor that had previously lived with Barlow.
Barlow is a registered sex offender and has been previously convicted of “Pandering Sexual Matter Involving Minor” in 2016 and “Illegal Use of Minor in Nude Material or Performance” in 2018.
A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation is being conducted by the Department of Homeland Security, Homeland Security Investigations and the Ohio Internet Crimes Against Children (“ICAC”) Task Force. The case is being prosecuted by Assistant U.S. Attorney Carol M. Skutnik.
9 April 2020
Williston Man Arrested on Federal Criminal Complaint for Child Exploitation, Child Pornography, Distribution of Child PornographyRead the Press Release
Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Justin Chavis, of Williston, South Carolina, was arrested on a federal criminal complaint and charged with child exploitation, child pornography, and distribution of child pornography.
Chavis had his initial appearance before United States Magistrate Judge Shiva V. Hodges, where he waived a preliminary hearing and a detention hearing. At this time, he remains in custody. According to the complaint, Chavis engaged in a conversation with an undercover law enforcement officer wherein he shared sexually explicit images and videos of children that he claimed to have created.
This case is being investigated by the Federal Bureau of Investigation (FBI), who brought the federal criminal complaint within twenty-four hours of discovering the underlying facts. The case is being prosecuted by Assistant United States Attorney James H. May of the Columbia Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
U.S. Attorney McCoy stated that all charges in this case are merely allegations and that the defendant is presumed innocent until and unless proven guilty.
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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.
chavis_complaint.pdfUniversal City Man Charged with Being a Convicted Felon in Possession of FirearmsRead the Press Release
In San Antonio today, U.S. Attorney John F. Bash and Bureau of Alcohol, Tobacco and Firearms (ATF) Special Agent in Charge Fred Milanowski, Houston Division, announced that federal authorities have filed a criminal complaint against 41 year-old Joshua Faleide for being a convicted felon in possession of firearms.
According to the complaint, the Bexar County Fire Marshal’s Office placed a “Be On The Lookout” alert on file for Faleide concerning two explosives-related state arrest warrants that were obtained on Tuesday. Yesterday, officers with the Universal City Police Department located a vehicle registered to the defendant at a local motel. Authorities executed the warrants and arrested Faleide. Investigators discovered three loaded firearms—a 7.62 caliber rifle that was on a bi-pod on a small table pointed at the door, a .45 caliber pistol, a 9mm pistol, and a suspected explosive device inside his motel room.
As for his felon status, Faleide was convicted of assault on a public servant in Bexar County, Texas, in 2008, for which he received a five-year prison sentence.
Upon conviction, Faleide faces up to ten years in federal prison for the felon-in-possession charge. He remains in custody at this time.
The ATF and the Bexar County Fire Marshal’s Office are investigating this case. The Universal City Police Department assisted with the arrest. Assistant U.S. Attorney William Calve is prosecuting this case on behalf of the government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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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 McSwain Warns of Potential Scams Concerning the Economic Impact Payments that Many Americans Will Soon ReceiveRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain warned the public today about potential scams relating to the upcoming coronavirus economic impact payments, commonly referred to as stimulus checks.
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 economic impact payments from the federal government in the upcoming weeks. In most cases, this one-time direct payment will be delivered by the Treasury Department and the Internal Revenue Service (IRS) to individual taxpayers primarily through direct deposit. Despite safeguards in place to protect these payments, fraudsters will undoubtedly attempt to exploit the current situation to steal individuals’ personal and financial information through a variety of ways, including phishing emails, social media, robocalls, and text messaging.
“It is paramount that we get this much-needed money safely into the hands of Americans in order to ease some of the pain from the pandemic,” said U.S. Attorney McSwain. “The unfortunate reality is that no matter what is going on in the world, fraudsters will look for opportunities to steal. But anybody who tries to take advantage of the pandemic in this manner will feel the full weight of federal law enforcement.”
“Unfortunately, there are fraudsters out there who will attempt to victimize vulnerable people during these trying times,” said Michael Montanez, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Philadelphia Field Office. “Everyone should be wary of swindlers trying to steal their COVID-19 Economic Impact Payment, as well as crooked individuals trying to take advantage of the crisis by tricking people into unnecessarily turning over their personal, sensitive information. All Americans should be cautious in this regard and it is asked that everyone also be on the lookout for the interests of the elderly and other susceptible family members and friends.”
Below are tips for how to spot and avoid scams:
What Fraudsters May Do:
- Ask taxpayers to sign over an economic impact payment.
- Ask by phone, email, text message, or social media for verification of personal and/or banking information for the purposes of expediting a person’s economic impact payment.
- Mail taxpayers bogus checks with contact information (such as a phone number or web address) regarding how the taxpayer can cash the check.
How to Avoid Scams:
- Don’t provide personal or financial information to strangers. Never provide an unknown individual with personal or financial information until you have verified the identity of the person with whom you are speaking.
- Don’t open or click on unusual links or attachments. 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.
- Checks are deposited automatically. Remember that in most cases, the IRS is using direct deposit to send the economic impact payments. Thus, if anyone is asking you for personal information in any manner, you should be wary and seek additional information to verify the person’s identity and employment.
- 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 impact payment, please contact law enforcement.
If you or someone you know has been the target or victim of a fraud scheme related to the coronavirus, please report the incident to the national hotline at The National Center for Disaster Fraud at 1-866-720-5721 or at [email protected].
U.S. Attorney and IRS-Criminal Investigation Warn of COVID-19 Economic Impact Payment ScamsRead the Press Release
U.S. Attorney John F. Bash and Acting Special Agent in Charge Rodrick Benton of the IRS–Criminal Investigation’s Houston Field Office today cautioned taxpayers of the opportunity for criminals to steal economic impact payments through various means of deception.
COVID-19 economic impact payments will be on their way from the IRS in a matter of weeks. For most Americans, this will be a direct deposit into your bank account. For the unbanked, elderly or other groups who have traditionally received tax refunds via paper check, they will receive their economic impact payment in this manner as well. Everyone receiving a COVID-19 related economic impact payment from the government is at risk. 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.
“My office will be aggressive in targeting anyone who attempts to steal from the American people during this time of national emergency,” said U.S. Attorney Bash. “I urge members of the public to report scams and other illegal activity to law-enforcement authorities.”
If anyone believes that they or their family are the victims of a scam or attempted fraud involving these stimulus payments, they can report it without leaving their home. Please contact the National Center for Disaster Fraud Hotline at 866-720-5721 or by email at [email protected]. If it is a cyber scam, they may also submit a complaint at www.ic3.gov.
“While the Nation deals with the COVID-19 pandemic, criminals see an opportunity to enrich themselves through fraudulent schemes,” warned Acting Special Agent in Charge Benton. “With the public’s awareness, we can combat these scammers and cease their exploitation of the American taxpayer during these trying times.”
IRS – Criminal Investigation has provided the following guidance to identify potential scams.
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it’s necessary to get your check. It’s a scam.
- If you receive a call, don’t engage with scammers or thieves, even if you want to tell them that you know it’s a scam, or you think that you can beat them. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don’t click on any links in those emails or texts.
- Reports are also swirling about bogus checks. If you receive a “check” in the mail now, it’s a fraud – it will take the Treasury a few weeks to mail those out. If you receive a “check” for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s a fraud.
For more information, visit the IRS website at www.irs.gov/coronavirus.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Matt Martin Announces Nearly $60 Million in Grants Available to Support Prisoners’ Successful Reentry into Their CommunitiesRead the Press Release
GREENSBORO, NC – U.S. Attorney Matt Martin of the Middle District of North Carolina announced today that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting successful reentry of adult and juvenile offenders into their communities.
“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“Focusing re-entry efforts on the most violent offenders is an important component of our office’s Project Safe Neighborhoods strategy to reduce violent crime. We work with our federal and local law enforcement partners to aggressively prosecute our most violent offenders. We also realize that assisting probation, service agencies, clergy, and community partners to direct resources towards returning impact players will improve public safety outcomes. These grants will help in the comprehensive fight against violent crime,” said U.S. Attorney Matt Martin.
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.
A number of funding opportunities are currently open, with several more opening in the near future.
- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17104
Total Available $7.2 million. Deadline 4/27/2020
- Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
https://bja.ojp.gov/funding/opportunities/bja-2020-17096
Total Available $3 million. Deadline 4/28/2020
- Improving Reentry for People with Substance Use Disorders Program
https://bja.ojp.gov/SCASUD20
Total Available $13.2 million. Deadline 4/27/2020
- Innovations in Reentry Initiative: Building System Capacity & Testing Strategies to Reduce Recidivism
https://bja.ojp.gov/funding/opportunities/bja-2020-17281
Total Available $4 million. Deadline 5/4/2020
- Research and Evaluation on Promising Reentry Initiatives
https://nij.ojp.gov/funding/opportunities/nij-2020-17295
Total Available $6 million. Deadline 5/5/2020
- Review and Validation of the First Step Act Risk Assessment Tool
https://nij.ojp.gov/funding/opportunities/nij-2020-fsa
Total Available: Determined after selection. Deadline 4/10/2020
- Second Chance Act Community-Based Reentry Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17110
Total Available $13.5 million. Deadline 5/4/2020
- Second Chance Act Evaluation Participation Support
https://bja.ojp.gov/funding/opportunities/bja-2020-17680
Total Available $4 million. Deadline 4/28/2020
- Second Chance Act Youth Offender Reentry Program
https://ojjdp.ojp.gov/sites/g/files/xyckuh176/files/media/document/ojjdp-2020-17350.pdf
Total Available $7 million. Deadline 4/28/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
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- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
U.S. Attorney Dunavant Sends Letter to Hospital Executives in West Tennessee Promoting Partnership in Combatting Hoarding and Price-Gouging of Critical Medical SuppliesRead the Press Release
Memphis, TN – U.S. Attorney D. Michael Dunavant of the Western District of Tennessee today sent the following letter to all Hospital Leaders and Executives in West Tennessee, requesting assistance and information regarding hoarding and price-gouging of critical medical supplies:
Dear Hospital Leaders and Executives:
As the United States Attorney for the Western District of Tennessee, I am the chief federal law enforcement officer in the area encompassing all of West Tennessee. My office’s primary responsibility is to enforce the laws of the United States on behalf of the citizens we serve. In light of the COVID-19 pandemic, our office is prioritizing the deterrence, investigation, and prosecution of wrongdoing related to the COVID-19 pandemic – including those engaged in hoarding and/or price-gouging with regard to critical medical supplies. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, governmental agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.
By Executive Order dated March 23, 2020, President Trump delegated to the Secretary of Health and Human Services (HHS) the authority to designate materials critical to our the fight against COVID-19 as "scarce" pursuant to the Defense Production Act of 1950. On March 25, 2020, the HHS Secretary designated 15 categories of health and medical supplies as "scarce," thus triggering both criminal prohibitions and civil enforcement remedies that my office will aggressively enforce. These categories currently include:
• N-95 Filtering Facepiece Respirators; • Other Filtering Facepiece Respirators (e.g., those designated as N99, N100, R95, R99, R100, or P95, P99, P100); • Elastomeric, air-purifying respirators and appropriate particulate filters/cartridges; • Powered Air Purifying Respirator (PAPR); • Portable Ventilators; • Chloroquine phosphate or hydroxychloroquine HCl; • Sterilization services for certain medical devices and certain sterilizers; • Disinfecting devices and other sanitizing and disinfecting products suitable for use in a clinical setting; • Medical gowns or apparel, e.g., surgical gowns or isolation gowns; • Personal protective equipment (PPE) coveralls, e.g., Tyvek Suits; • PPE face masks; • PPE surgical masks; • PPE face shields; • PPE gloves or surgical gloves; • Ventilators, anesthesia gas machines modified for use as ventilators, and positive pressure breathing devices modified for use as ventilators, ventilator tubing connectors, and ventilator accessories.
In this time of critical shortage, we are asking for your assistance in identifying individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices. My office is committed to investigating and prosecuting any such incidents as well as any other fraudulent conduct designed to benefit from this pandemic (e.g., false treatments, tests, and/or vaccinations for COVID-19). In furtherance of this goal, I have created a federal COVID-19 Task Force, led by Assistant United States Attorney (AUSA) Tony Arvin, to investigate and prosecute these crimes. If you have any information related to this topic, I ask that you please contact AUSA Arvin at 901-601-0599 or [email protected].
With help from institutions like yours, the Department of Justice is using every available measure to ensure that these scarce materials are available to treat those affected by the coronavirus. I am very thankful for the vital work that you do on a daily basis and for your institution’s commitment to the people of Tennessee. I look forward to collaborating with you to protect the citizens of our community and enforce the laws of the United States during this time of national emergency.
Respectfully,
D. Michael Dunavant
United States Attorney
Western District of TennesseeThe public is also urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDC) hotline (1-866-720-5721) or to the NCDF e-mail [email protected].
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Two Phoenix Women Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
PHOENIX, Ariz. – On March 9, Consuelo Stephanee Pena, 29, and on March 16, Dulce Avilene Gonzalez-Rosillo, 24, both of Phoenix, Ariz., were sentenced by U.S. District Judge Diane J. Humetewa and U.S. District Judge Douglas L. Rayes, respectively, for their participation in multiple drug and money laundering offenses.
Pena was charged with multiple offenses related to drug trafficking and laundering drug proceeds between November 2015 and March 2018. Pena pleaded guilty to one count of Possession with Intent to Distribute Heroin and one count of Aiding and Abetting Money Laundering. Pena was sentenced to concurrent terms of 51 months in prison.
On April 17, 2017, Phoenix Police Officers came to the residence Pena shared with her boyfriend in Phoenix, Arizona. While she was speaking to officers in front of the residence, she sent a text message to her boyfriend, warning him that officers were in front of the residence and that he should escape out the back. Pena wanted him to hide drugs that were located in the residence so they would not be found by law enforcement. Pena’s boyfriend responded to Pena’s text by advising he had thrown a bag over the fence. Officers later located that bag, which contained two kilograms of cocaine, nine kilograms of heroin, and 84 grams of fentanyl.
On December 7, 2016, Pena provided Gonzalez-Rosillo with her debit card so that Gonzalez-Rosillo could withdraw drug proceeds from Pena’s bank account and transport the cash to Mexico. Pena admitted she and Gonzalez-Rosillo were being paid to engage in this illegal activity and were splitting the fee. On that same date, Gonzalez-Rosillo was searched by Customs and Border Protection Officers as she was attempting to drive outbound into Mexico with the cash. Officers found $7,802 on her person and in her vehicle.
Gonzalez-Rosillo pleaded guilty to one count of Possession with Intent to Distribute Heroin and one count of Possession with Intent to Distribute Marijuana. In July 2017, Gonzalez-Rosillo was stopped in Nevada while driving two kilograms of heroin from Arizona to Washington state. She was subsequently released from custody. Later, in June 2018, she was arrested for transporting 33 kilograms of marijuana near the United States-Mexico border. Gonzalez-Rosillo was sentenced to 12 months and one day of imprisonment on each count, to run concurrently, and her vehicle was forfeited.
Homeland Security Investigations and Internal Revenue Service Criminal Investigation investigated these cases, with assistance from Customs and Border Protection Office of Field Operations, United States Border Patrol, the Phoenix Police Department, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Nevada Department of Public Safety, and the White Pine County District Attorney’s Office. Assistant U.S. Attorney Lacy Cooper, District of Arizona, Phoenix, handled the prosecutions.
CASE NUMBERS: CR-18-1253-PHX-DLR/CR-18-1257-PHX-DLR/CR-19-0296-PHX-DJH
RELEASE NUMBER: 2020-045_Pena and Gonzalez-Rosillo
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Three People Charged with Drug Trafficking in Newark’s Pilgrim Baptist Village Housing ComplexRead the Press Release
NEWARK, N.J. – Three people have been charged in connection with their roles in the distribution of heroin – some of which contained fentanyl – and cocaine base (crack) in an affordable housing complex and a nearby senior living community in Newark, U.S. Attorney Craig Carpenito announced today.
Charged by complaint with one count each of conspiring to distribute cocaine base are: Sherrod Richardson, a/k/a “Drama,” 19; Yusef Ellis, a/k/a “Tweeze,” 39; and Reuben Howard, a/k/a “Ahmeer,” 38, all of Newark. Richardson is also charged with possession of heroin and cocaine base on Dec. 5, 2019, with intent to distribute. Richardson and Ellis were arrested today; Howard was arrested April 8, 2020. All three defendants appeared today by telephone conference before U.S. Magistrate Judge James B. Clark III.
According to the documents filed in this case and statements made in court:
The charges and arrests resulted from an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S. Attorney’s Office, in conjunction with numerous federal, state, and local law enforcement partners. Pilgrim Baptist Village Housing Complex, Site II (Pilgrim Village), is a privately owned, affordable housing complex in the vicinity of Avon and Jelliff avenues in Newark. It consists of 46 buildings, each with four units, which are accessible via exterior entrances as well as an interior stairwell leading from each apartment to a common hallway that connects multiple buildings and semi-subterranean garages for those buildings. The buildings are clustered around internal courtyards and pedestrian walkways, and the complex is accessible on foot from Avon Avenue or Jelliff Avenue and by car from one of four driveways leading to the semi-subterranean garages. Because its location and layout make it difficult for law enforcement to surveil, Pilgrim Village is the site of an open-air illegal market. Since at least November 2018, law enforcement has been investigating the organization that controls this market.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical and electronic surveillance, and analysis of telephone call detail records, law enforcement officials determined that the defendants distributed or conspired to distribute cocaine base in an around Pilgrim Village from at least June 2019 through April 2020.
The counts of conspiracy to distribute at least 28 grams of cocaine base each carry a minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a fine of at least $5 million. The counts of distribution and possession with intent to distribute heroin and cocaine base each carry a maximum penalty of 20 years in prison and a fine of $1 million.
U.S. Attorney Carpenito credited special agents and task force officers of ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges.
He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr. He also thanked the Belleville Police Department; the Nutley Police Department; the Bloomfield Police Department; the Verona Police Department; and the Orange Police Department for their assistance with this case.
The investigation is part of the Newark Violent Crime Initiative (VCI), through which the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate violent crime in Newark and surrounding cities.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Men Charged with Violent Robbery of Stamford JewelerRead the Press Release
United States Attorney John H. Durham, Chief State’s Attorney Richard J. Colangelo, Jr., FBI Special Agent in Charge David Sundberg, Stamford Acting Police Chief Thomas Wuennemann and Greenwich Police Chief James J. Heavey today announced that ROBERT RALLO, 56, of Brooklyn, New York, THOMAS LIBERATORE, 62, of White Plains, New York, and PAUL PROSANO, also known as “Tony Pro,” 59, of Brooklyn, have been charged with federal robbery offenses in connection with the March 28 robbery of Marco Jewelers in Stamford, Connecticut. During the robbery, the owner of Marco Jewelers was shot and killed.
As alleged in court documents, on March 28, 2020, at approximately 2:48 p.m., Stamford Police Officers responded to Marco Jewelers, located at 16 Sixth Street in Stamford. When officers arrived, they found evidence of a robbery and encountered the storeowner, Mark Vuono, lying on the ground in front of an open safe. Emergency medical personnel arrived and pronounced Vuono deceased.
It is further alleged that investigators collected and analyzed surveillance video from Marco Jewelers, surrounding businesses and Stamford city cameras. Video obtained from Marco Jewelers revealed that, on March 28, Prosano drove Rallo and Liberatore in a black Jaguar to Marco Jewelers. Rallo and Liberatore then entered the store. Rallo, armed with a handgun, engaged in a physical altercation with Vuono, while Liberatore stole items from the display cases. Vuono, who also possessed a firearm, and Rallo struggled next to a large open safe. During the struggle, Rallo reached into the safe and pulled out a third firearm, a .357 Magnum revolver. Rallo subsequently shot and killed Vuono with the .357 revolver.
It is further alleged that, following the robbery, law enforcement located the black Jaguar in Staten Island and maintained surveillance on the vehicle. On March 30, at approximately 5:30 p.m., a black BMW X3, driven by Prosano, pulled up beside the black Jaguar. Rallo exited the rear door of the BMW and entered the driver’s door of a black Jaguar. The two vehicles then left the area and rapidly accelerated. The Jaguar crashed on Tompkins Street. Rallo attempted to flee on foot, but was quickly apprehended. The BMW crashed into a tree and parked car at the intersection of Daniel Low Terrace and Corson Avenue. Prosano also attempted to flee and was apprehended.
A search of the BMW revealed 63 rings, eight bracelets, two tie pins, an earring and a cufflink, and a search of Prosano’s residence revealed 23 pairs of earrings and three rings. It is alleged that these items were stolen from Marco Jewelers on March 28.
Liberatore also was arrested on March 30. It is alleged that prior to the Marco Jewelers robbery, on March 18, 2020, Liberatore drove a Honda Civic he had stolen from a car dealer in Yonkers, New York, to Byram Jewelers in Greenwich, Connecticut. He entered the store at approximately 4:45 p.m. and asked a store employee to show him engagement rings. He then pointed a pistol at the employee, stole several rings, smashed a display case with his pistol and stole other items before exiting the store.
The federal criminal complaints charge Rallo, Liberatore and Prosano with Hobbs Act Robbery, an offense that carries a maximum term of imprisonment of 20 years. The defendants have been detained in New York on state parole violation charges, and the arrest warrants issued in this case have been lodged as detainers.
The complaints allege that each defendant has an extensive criminal history and the three men met while serving their respective sentences within the New York State Department of Corrections.
“These three defendants are alleged to have committed a brazen, violent robbery that left an innocent victim dead,” said U.S. Attorney Durham. “The FBI, Stamford Police, Greenwich Police and our other law enforcement partners have conducted an extraordinary investigation that resulted in the quick apprehension of these three men before they could wreak any additional havoc. I thank them for their efforts during what has been, due to this pandemic, an especially challenging time for law enforcement. This investigation is ongoing and, in coordination with our state counterparts, additional charges are expected.”
“This investigation and resulting prosecution is a great example of cooperation between the U.S. Attorney’s Office, Stamford/Norwalk State’s Attorney’s Office, FBI and the Stamford and Greenwich Police Departments,” said Chief State’s Attorney Colangelo. “We could not have moved as quickly as we did to apprehend the individuals alleged to be responsible for these offenses without the cooperation of all parties working together.”
“Our hearts go out to the victim’s family and our praise to the men and women of the Greenwich and Stamford Police Departments, as well as the NYPD and New York Office of the FBI, for their skill and professionalism throughout this investigation,” said FBI Special Agent in Charge Sundberg. “It is our expectation that justice will be served through the arrest of these three individuals.”
“We want to acknowledge the cooperation and teamwork of all of the law enforcement agencies involved in this investigation that made these arrests possible,” said Stamford Police Captain Richard Conklin. “During this crisis within a crisis, which created many logistical obstacles, federal and local agencies worked hand in hand and got this job done.”
“The Greenwich Police Department is pleased that its investigation of a jewelry store robbery in Greenwich, involving one of the three suspects in the Marco Jewelers robbery/homicide, was able to assist Stamford Police and the FBI in bringing to justice the suspects in these heinous crimes,” said Greenwich Police Chief Heavey. “We continue to emphasize collaboration in our law enforcement efforts and are proud of all of the detectives and investigators involved in this case. Our sincerest condolences go out to the family of Mark Vuono, owner of Marco Jewelers.”
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, Stamford Police Department and Greenwich Police Department, with the assistance of the New York Police Department, Yonkers (N.Y.) Police Department and New Rochelle (N.Y.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Rahul Kale.
Taxpayers warned of scams in relation to COVID-19 economic payment checksRead the Press Release
HOUSTON – Federal authorities are cautioning taxpayers that criminals could steal economic impact payments through various means of deception, announced U.S. Attorney Ryan K. Patrick along with Acting Special Agent in Charge Rodrick Benton of IRS – Criminal Investigation (CI).
Everyone receiving a COVID-19 related economic impact payment from the government is at risk.
“Disasters create openings for crooks and scam artists,” said Patrick. “From phony door-to-door solicitations to complex computer and phone scams, I want people to be alert. Do not give out personal information to people who claim they are with the government. The scum that take advantage at a time like this will find the weight of federal law enforcement on them.”
“While the nation deals with the COVID-19 pandemic, criminals see an opportunity to enrich themselves through fraudulent schemes,” warned Benton. “With the public’s awareness, we can combat these scammers and cease their exploitation of the American taxpayer during these trying times.”
COVID-19 economic impact payment checks will be on their way from the IRS in a matter of weeks. For most Americans, this will be a direct deposit into their bank accounts. Those that did not identify a bank account on their tax returns, elderly individuals or others who have traditionally received tax refunds via paper check will receive their payments 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. Authorities warn taxpayers to be vigilant and on alert to this potential 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 information or clicking on links, DELETE them. Do NOT click on any links in those emails or texts.
- Bogus checks are also 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 that you verify the check online or by calling a number, IT’S A FRAUD.
For more information about coronavirus tax relief and economic impact payments, visit the IRS website.For more information about coronavirus fraud overall and related details, go to the DOJ website.
Salt Lake County Man Charged in Schemes to Defraud Health Care Benefit ProgramsRead the Press Release
SALT LAKE CITY – A Salt Lake County man, who managed and operated Eco Apothecary and Eco Pharmacy in South Jordan from early 2016 to Feb. 26, 2020, is facing federal criminal and civil cases related to an alleged scheme to defraud health care benefit programs.
James Vaughn Ammon aka James Vaughn Soto, age 56, is charged with four counts of health care fraud and one count of aggravated identity theft in the criminal case. A grand jury returned a five-count indictment in late February. According to the indictment, Eco Apothecary and Eco Pharmacy’s primary business was providing prescriptions to patients. The indictment alleges that Ammon devised a scheme to defraud Medicare and Medicaid.
According to the indictment, the businesses were enrolled as pharmaceutical providers with Medicaid and Medicare. To receive reimbursement for a covered service, the businesses were required to submit a claim with the required information identifying the patient and services rendered.
The indictment alleges Ammon unlawfully enriched himself by, among other things, submitting and causing the submission of false claims to Medicare and Medicaid. In furtherance of the scheme, the indictment alleges Ammon filed claims for drugs that were not dispensed to patients, filed claims for larger quantities of drugs than were actually dispensed, filed claims for dispensing drugs even though he did not have a valid prescription from a physician, and fabricated and forged State of Utah pharmacy licensing documents.
Each count of health care fraud carries a potential maximum penalty of 10 years in prison and a fine of $250,000. The potential penalty for aggravated identity theft is a two-year mandatory minimum sentence. The court has issued a summons to Ammon to appear on the charges.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
A parallel civil action filed by the U.S. Attorney’s Office alleges Eco Pharmacy, Eco Apothecary and Ammon violated the Controlled Substances Act and the False Claims Act by filling and billing Medicare for prescriptions after Eco Apothecary lost its state-issued license; billing for medications, including controlled substances, for which there was not a proper prescription or authorization; billing for medications not dispensed and delivered to patients or billing for quantities larger than what were actually dispensed to patients; forging licensing documents from the State of Utah; and failing to keep proper records of controlled substances.
Many of the medications not delivered were important life-saving medications of elderly patients. One patient, a recent organ transplant recipient, did not receive scheduled anti-rejection medication. This patient was then unable to fill the prescription at another pharmacy because Medicare showed that it had paid for the medications.
According to the civil complaint, from 2018 through 2019, Eco Apothecary and Ammon caused Medicare Part D sponsors to pay at least $1,662,077 for prescriptions they dispensed. During the same time period, Eco Pharmacy and Ammon caused Medicare to pay at least $1,895.264 for prescriptions they dispensed. The civil complaint alleges Eco Apothecary and Ammon caused Medicare and Medicaid plan sponsors to pay at least $274,129 and Medicaid at least $11,013 for at least 2,576 prescriptions after it was no longer licensed by the State of Utah to operate as a pharmacy and dispense medication.
The civil complaint seeks damages and injunctive relief against Ammon and the two businesses. It asks the court to impose a civil penalty of $64,820 for each individual prescription that was filled in violation of the Controlled Substance Act and a civil penalty of $15,050 for each violation of the Controlled Substances Act’s record-keeping provisions.
As required by law, civil violations of the False Claims Act subject violators to treble damages.
The U.S. Attorney’s office is also seeking an order stopping the defendants and their employees or representatives from directly or indirectly distributing, dispensing, or processing with intent to distribute any controlled substances.
Rapid City Man Sentenced for Discharging Firearm During Crime of ViolenceRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Discharging a Firearm During the Commission of a Crime of Violence was sentenced by Jeffrey L. Viken, U.S. District Judge.
Carl Shockey, age 19, was sentenced on April 3, 2020, to 10 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from Shockey and another person entering an occupied residence on April 23, 2019. Shockey wore a blue bandana to conceal his identity and was armed with a shotgun. After unlawfully entering the home in Pine Ridge, Shockey roused the sleeping occupants by loudly demanding they surrender their money and possessions. Shockey discharged one round inside the home before he and his accomplice fled the residence in a vehicle that had been stolen from Rapid City. The pair later abandoned the vehicle and were apprehended by Oglala Sioux Tribe Department of Public Safety officers.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Bureau of Indian Affairs - Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Shockey was immediately remanded to the custody of the U.S. Marshals Service.
Pierre Woman Sentenced for Methamphetamine TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on April 6, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Melissa Jean Scull, age 39, was sentenced to 77 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Scull was indicted by a federal grand jury on July 16, 2019. She pled guilty on December 5, 2019.
The conviction stemmed from a conspiracy that occurred between February 1, 2019, and July 16, 2019, in which Scull, knowingly and intentionally, conspired and agreed with others to knowingly and intentionally distribute and possess with intent to distribute methamphetamine in and around the Pierre and Ft. Pierre Communities. As part of the conspiracy, Scull and her co-defendants traveled to Denver, Colorado, to pick up methamphetamine. On June 23, 2019, law enforcement conducted a traffic stop of co-defendant Frank Miller’s vehicle, of which Scull was a passenger, wherein 236 grams of methamphetamine, a scale, pipes, and other items of distribution were found.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Pierre Police Department, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Scull was immediately turned over to the custody of the U.S. Marshals Service.
Lake Charles Man Pleads Guilty to Two Counts of Production of Child PornographyRead the Press Release
LAKE CHARLES, La. – United States Attorney David C. Joseph announced that Damon Lechtenberg, 46, of Lake Charles, Louisiana, pleaded guilty today before U.S. Magistrate Judge Kathleen Kay, for production of child pornography.
According to his guilty plea, Lechtenberg admitted to filming a minor female using hidden cameras that he had placed in the minor’s bedroom and bathroom. In December of 2019, authorities learned of Lechtenberg’s activities and obtained a search warrant. Law enforcement officers located multiple hidden cameras that had previously been hidden in the child’s bedroom and bathroom. Lechtenberg told officers that he placed the cameras in the bedroom and bathroom and filmed the minor while the minor was nude. A subsequent forensics review of the electronic devices seized from Lechtenberg revealed approximately 200 videos of the nude minor. Lechtenberg will remain in custody until sentencing.
At sentencing on July 16, 2020, Damon Lechtenberg faces up to 60 years in prison, five years to life of supervised release, registration as a sex offender and a $250,000 fine.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.
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 Attorney’s 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.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
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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Honduran National Pleads Guilty and is Sentenced for Returning to U.S. after RemovalRead the Press Release
PORTLAND, Maine: A Honduran national was sentenced today in federal court in Portland for being found in the United States after removal, U.S. Attorney Halsey B. Frank announced.
Following the acceptance of his plea, U.S. District Judge D. Brock Hornby sentenced Angel Isaula, 67, to time served (approximately three months).
According to court records, on January 7, 2020, U.S. Border Patrol agents stopped a van in Turner, Maine. Isaula, who was inside the van, told the agents that he was in the U.S. illegally, after having been removed on two prior occasions. Immigration records showed that he had been removed from the U.S. in September 2013 and again in June 2014.
The U.S. Border Patrol investigated the case.
Georgia resident arrested for selling illegal products claiming to protect against virusesRead the Press Release
ATLANTA - Rong Sun, a/k/a Vicky Sun made her initial appearance on federal charges of illegally selling an unregistered pesticide, illegally importing the unregistered pesticide, and mailing a prohibited article. Sun was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020.
“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”
“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses. Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”
“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.”
“The sale of this product not only violates several federal laws, it also gives people a false hope. During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”
“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”
According to U.S. Attorney Pak, the charges, and other information presented in court: The defendant allegedly sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses. The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.” As shown below, the eBay listing depicted the removal of viruses by wearing the “Virus Shut Out” and “Stop The Virus” product.
Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”
The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest. The term “pest” includes viruses. Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides. In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.
The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.
Rong Sun, a/k/a Vicky Sun, 34, of Fayetteville, Georgia, made her initial appearance before U.S. Magistrate Judge Alan J. Baverman. Members of the public are reminded that the complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Environmental Protection Agency-Criminal Investigation Division, Homeland Security Investigations, and U.S. Postal Inspection Service are investigating this case.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds, and Senior Counsel Krishna Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Resident Arrested for Selling Illegal Products Claiming to Protect Against VirusesRead the Press Release
A Georgia resident made her initial appearance on federal charges of illegally importing and selling an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses.
Rong Sun, aka Vicky Sun, 34, of Fayetteville, Georgia, was charged with a criminal complaint filed by the U.S. Attorney’s Office on April 8, 2020, and made her initial appearance today before U.S. Magistrate Judge Alan J. Baverman.
“In an event of this magnitude, the public needs facts, not fiction, on the best ways to protect themselves from viruses,” said Assistant Attorney General Jeffrey Bossert Clark for the Justice Department’s Environment and Natural Resources Division. “We must all remain vigilant against unsubstantiated or false claims that products ward off viruses. Those marketing such illegal products should beware they may end up on the radar of federal investigators, and be vigorously prosecuted.”
“The defendant took advantage of the current worldwide crisis to sell an illegal product with the claim that it protects individuals from viruses,” said U.S. Attorney Byung J. “BJay” Pak of the Northern District of Georgia. “We will take quick action through the Georgia COVID-19 Task Force to put a stop to criminals preying on the public with Coronavirus-related fraud schemes.”
“Reliance on fraudulent products may increase the spread of COVID-19 and exacerbate the current public health emergency,” said Environmental Protection Agency (EPA) Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “EPA and our law enforcement partners are working hard to keep these illegal products off the shelves, off the internet, and out of this country. We ask American consumers to help by checking the list of approved products found at epa.gov/coronavirus before making any purchases.”
“The sale of this product not only violates several federal laws, it also gives people a false hope. During a global crisis, like we are experiencing right now, it is incredibly dangerous and reckless to exploit people’s fear for profit,” said U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) acting Special Agent in Charge Robert Hammer, who oversees operations in Georgia and Alabama. “HSI Atlanta, in conjunction with our law enforcement partners, will continue to prioritize our efforts to protect Americans from COVID-19 fraud.”
“The U.S. Postal Inspection Service will pursue those individuals that are illegally utilizing the mail system to defraud victims during this coronavirus pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “With the collaborative investigative efforts of our law enforcement partners, we remain resolute to pursue and bring to justice any criminals involved in these deceptive schemes.”
According to the charges, the defendant sold an unregistered pesticide, Toamit Virus Shut Out, through eBay, claiming that it would help protect individuals from viruses. The pesticide was marketed as “Virus Shut Out” and “Stop The Virus.”
Additionally, the listing stated that “its main ingredient is ClO2, which is a new generation of widely effective and powerful fungicide recognized internationally at present. Bacteria and viruses can be lifted up within one meter of the wearer’s body, just like a portable air cleaner with its own protective cover.” It also stated that “In extraordinary times, access to public places and confined spaces will be protected by one more layer and have one more layer of safety protection effect, thus reducing the risks and probability of infection and transmission.”
The listing further claimed that Toamit is “office and home essential during viral infections reduce transmission risk by 90%.”
The Federal Insecticide, Fungicide and Rodenticide Act, FIFRA, regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest. The term “pest” includes viruses. Pesticides are required to be registered with the EPA. Toamit Virus Shut Out was not registered and it is illegal to distribute or sell unregistered pesticides. In addition, Sun allegedly imported the pesticide from Japan, violating the anti-smuggling law and then sent it via U.S. Postal Service priority mail.
The EPA has taken steps to block importing of Toamit Virus Shut Out and its sale within the United States: https://www.epa.gov/newsreleases/epa-administrator-wheeler-talks-retailers-and-third-party-marketplace-platforms-discuss and https://www.epa.gov/newsreleases/us-epa-acts-protect-public-unregistered-virus-shut-out-product-imported-honolulu-and.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The EPA-Criminal Investigation Division, HSI, and U.S. Postal Inspection Service are investigating this case.
Senior Counsel Krishna Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Christopher J. Huber, Deputy Chief Complex Frauds are prosecuting the case.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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.
Executive Branch Agencies Recommend the FCC Revoke and Terminate China Telecom’s Authorizations to Provide International Telecommunications Services in the United StatesRead the Press Release
Today, interested Executive Branch agencies[1] unanimously recommended that the Federal Communications Commission (FCC) revoke and terminate China Telecom (Americas) Corp.’s authorizations to provide international telecommunications services to and from the United States. China Telecom is the U.S. subsidiary of a People’s Republic of China (PRC) state-owned telecommunications company.
The Department of Justice led the review of China Telecom’s authorizations, and it based the recommendation on developments since the authorizations were last transferred in 2007, including China Telecom’s failure to comply with the terms of an existing agreement with the Department.
“Today, more than ever, the life of the nation and its people runs on our telecommunications networks,” said John C. Demers, Assistant Attorney General for National Security. “The security of our government and professional communications, as well as of our most private data, depends on our use of trusted partners from nations that share our values and our aspirations for humanity. Today’s action is but our next step in ensuring the integrity of America’s telecommunications systems.”
In its recommendation, the Executive Branch agencies identified substantial and unacceptable national security and law enforcement risks associated with China Telecom’s operations, which render the FCC authorizations inconsistent with the public interest. More specifically the recommendation was based on:
- the evolving national security environment since 2007 and increased knowledge of the PRC’s role in malicious cyber activity targeting the United States;
- concerns that China Telecom is vulnerable to exploitation, influence, and control by the PRC government;
- inaccurate statements by China Telecom to U.S. government authorities about where China Telecom stored its U.S. records, raising questions about who has access to those records;
- inaccurate public representations by China Telecom concerning its cybersecurity practices, which raise questions about China Telecom’s compliance with federal and state cybersecurity and privacy laws; and
- the nature of China Telecom’s U.S. operations, which provide opportunities for PRC state-actors to engage in malicious cyber activity enabling economic espionage and disruption and misrouting of U.S. communications.
Some of the foregoing relate to China Telecom’s failure to comply with a 2007 Letter of Assurance, which was a basis for the existing FCC authorizations. The Department’s National Security Division, Foreign Investment Review Section, identified those compliance issues through its mitigation monitoring program. As a result, the Executive Branch agencies concluded that the national security and law enforcement risks associated with China Telecom’s international Section 214 authorizations could not be mitigated by additional mitigation terms.
More information concerning the Executive Branch agencies’ recommendation is available on the FCC’s International Bureau Filing System (IBFS), under Docket Number ITC-T/C-20070725-00285. The Department of Commerce’s National Telecommunications and Information Administration filed the recommendation on behalf of the Executive Branch agencies.
The Department is committed to working with industry to ensure that critical business needs are considered and addressed in a manner that is consistent with the United States’ national security and law enforcement interests. This action was taken under the legacy, ad hoc arrangement of the Departments of Justice, Defense, and Homeland Security, formerly known as Team Telecom, the operation of which was recently formalized by Executive Order dated April 4, 2020, establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. Applications referred by the FCC after the date of the Executive Order will be handled under the process outlined therein.
[1] For purposes of the recommendation, the Executive Branch agencies included the Departments of Justice, Homeland Security, Defense, State, Commerce, and the United States Trade Representative.
Darknet Vendor Arrested on Distribution and Money Laundering ChargesRead the Press Release
ALEXANDRIA, Va. – A Maryland man was arrested today on charges related to his alleged unlawful distribution of medications through the Darknet, and money laundering involving Bitcoin.
According to court documents, William Anderson Burgamy IV, 32, of Hanover, recently posted on his Darknet market vendor page: “Even with Corona Virus [sic] the shop is running at full speed.”
“I want to offer thanks and praise to our local law enforcement partners for moving forward with this public safety investigation amidst the COVID-19 pandemic,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “The selflessness and bravery being exercised by our law enforcement partners every day, but especially now, deserves broad public recognition and thanks.”
Burgamy, who is not a pharmacist, has allegedly illegally operated as the Darknet vendor NeverPressedRX (NPRX) since at least August 2019. The NPRX vendor store claimed to sell authentic medications, including prescription opioids, sourced from United States pharmacies. NPRX had thousands of recorded sales on a major Darknet market. Burgamy allegedly laundered the proceeds of his criminal activity by cashing out his Bitcoin cryptocurrency drug payments into United States dollars and moving the funds through a variety of accounts, including his business bank accounts, in an effort to conceal and disguise the nature and source of his illicit proceeds.
According to court documents, law enforcement, in coordination with the U.S. Attorney’s Office, conducted online undercover operations targeting NPRX. Since January, undercover federal agents made numerous purchases of medications, including prescription opioids, from Burgamy’s NPRX Darknet account. After identifying Burgamy, investigators surveilled him as he conducted numerous trips to local post offices, where he allegedly mailed prescription drugs to various Darknet buyers, including to the undercover federal agents in the Eastern District of Virginia.
During the execution of a search warrant inside Burgamy’s residence, law enforcement discovered what appeared to be thousands of prescription opioid pills and at least eight firearms, including two loaded AR-15 assault rifles.
Burgamy is charged with distribution of controlled substances and money laundering, and faces a maximum penalty of 40 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Kevin Vorndran, Acting Special Agent in Charge of the FBI's Washington Field Criminal Division; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement. The FBI's Baltimore Field Office and the Anne Arundel County Police Department assisted in executing the arrest. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-mj-130.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Criminal Street Gang Prosecutor Joins U.S. Attorney's OfficeRead the Press Release
MACON, Ga. – The former Gwinnett County Managing Assistant District Attorney (ADA), Michael Morrison, was sworn-in as an Assistant U.S. Attorney (AUSA) for the Middle District of Georgia, said Charles “Charlie” Peeler, the U.S. Attorney for the Middle District of Georgia. The swearing-in occurred on Monday, April 6, 2020 and was conducted remotely by phone due to social distancing restrictions in place since the outbreak of Coronavirus (COVID-19).
Mr. Morrison earned both his undergraduate and juris doctorate degrees from Georgia State University. Since 2008, he has served as a prosecutor in the Gwinnett County District Attorney’s Office, supervising the Gwinnett Drug & Gang Task Force. Mr. Morrison has a strong track record trying complex, large-scale drug trafficking and violent criminal street gang cases. Most recently, Mr. Morrison was nominated, along with members of the FBI-Atlanta Gang Unit, for a 2019 FBI Director’s Award for his role as the lead prosecutor in the state murder trial of Nine Trey Gangster Bloods leader Gordon Evans, and was nominated for a separate award, along with members of the Atlanta-Carolinas High Intensity Drug Trafficking Areas (HIDTA) drug task force, for his role as the lead prosecutor in a lengthy wiretap investigation targeting an Atlanta-based cell of the notorious Cartel De Jalisco Nueva Generacion, better known as CJNG.
“Mike is one of the most effective criminal street gang and drug trafficking prosecutors in the state, known for his expertise handling complex cases against dangerous individuals,” said U.S. Attorney Charlie Peeler. “We are working tirelessly alongside our law enforcement partners to crack down on violent gang and drug activity across the Middle District. Mike strengthens this effort, and we are extremely pleased to have him on our team.”
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Cortland County Man Pleads Guilty to Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Christopher M. Perry, 36, of Cortland, New York, pled guilty today to a two-count information charging that he, together with Sarah R. Gates, conspired to sexually exploit, and sexually exploited, a child under five years of age for the purpose of producing images of the abuse.
The announcement was made by the United States Attorney Grant C. Jaquith and Kevin M. Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Perry admitted that on several occasions in 2017, he and Sarah R. Gates performed sexual acts on the child while taking photographs of the abuse, using two cell phones.
Sarah R. Gates is charged by complaint with the same offenses, which are merely accusations, and she is presumed innocent unless and until proven guilty.
Senior United States District Judge Thomas J. McAvoy will sentence Perry on August 18, 2020. Each of the three crimes to which Christopher M. Perry pled guilty carries a mandatory minimum sentence of 15 years, and a maximum sentence of 30 years in prison, a fine of up to $250,000.00, and a term of post-imprisonment supervised release of at least 5 years and up to life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court.
This case is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Sahar L. Amandolare.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
8 April 2020
We’re Americans. We’ll beat this.Read the Press Release
It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness….” This is not just the first line of the novel, Tale of Two Cities by Charles Dickens, it is a good description of our current times.
The “worst” of times is easily understood. Anytime the word “pandemic” is used in everyday conversation, it is a concern. Disbelief remains the most common reaction to what we have all been going through. The current pandemic is a generational changing event that we won’t forget but from which we will hopefully learn a great deal and be better and more prepared in the future because of it.
The “best” of times can also be seen, if you choose to look. Families are spending more time together. We are concerned for each other. We are helping each other. We are learning to appreciate the little things, and even more importantly, we are appreciating people who we often overlook during other “normal” times.
We now see how critically we depend on our health care workers. They are devoted, brave and inspirational people. I expect we will have a new appreciation for them if we don’t already. In my role as the chief federal law enforcement officer for the Northern District of West Virginia, I get the privilege of working with first responders, particularly law enforcement. Those individuals are still out there every day, every hour, and every minute. Our heroes are not on television shows or sporting events. Our heroes are in our communities protecting us, feeding and teaching our kids, stocking our grocery shelves, and assuring our basic services remain intact.
I live in Berkeley County, which is one of the more heavily affected counties in our state. Yet, on my few trips to my grocery store, there was no panic. People were staying apart. There was genuine concern and kindness being exhibited. I was encouraged by what I saw.
I am blessed to work with amazing professionals. There will still be prosecutions, arrests, and court proceedings, albeit under different conditions. We are on the lookout for those trying to take advantage of the public through fraud. We are seeing evidence of fraud in West Virginia and we have joined forces with our state and federal colleagues to find it, stop it, and prosecute it. Crisis always attracts those who prey on the anxiety and fear of others. But, we need your help. The public needs to report individuals trying to price gouge, those promising early government checks or the “magical” cure for the virus to law enforcement.
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]
I am confident that we will come through this crisis stronger than we were, more appreciative than we were, and closer than we were. We live in the greatest of countries and our history has demonstrated time and again that we will rise to the occasion and be better for it.
-U.S. Attorney Bill Powell, Northern District of West Virginia
United States Attorney Michael Bailey and Arizona Attorney General Mark Brnovich Launch Covid-19 Fraud Task ForceRead the Press Release
PHOENIX, Ariz. – United States Attorney Michael Bailey and Arizona Attorney General Mark Brnovich today launched a joint federal, state, and local task force to combat coronavirus-related fraud.
The COVID-19 Fraud Task Force brings together a dozen partners from across the state, with the goal of combining resources and information to better investigate and prosecute wrongdoers that seek to profit from the public health crisis. The mission of the Task Force is to streamline the government’s response to reports of fraud related to COVID-19 in Arizona. By working together across all levels of government, the Task Force will ensure that cases are investigated promptly and brought to the appropriate prosecuting entity. In the midst of the current crisis, members of the Task Force will work together, share information, and better protect Arizona citizens by ensuring that all scams are investigated and those responsible are held to account.
“In times of crisis, the best of humanity is often evident as people support one another and unite together to fight a common enemy. We see that in today’s stories about our health care workers, our first responders, and our communities sacrificing safety and comfort to protect one another,” said United States Attorney Michael Bailey. “Unfortunately crisis can also be a time when the worst parts of humanity surface. This Task Force will seek out and punish scam artists who prey on the fear and uncertainty of our citizens during this public health crisis.”
Assistant United States Attorney Jim Knapp, recently appointed as the United States Attorney’s Office COVID-19 Fraud Coordinator, and Joseph Sciarrotta, Civil Division Chief for the Attorney General’s Office, are leading the Arizona COVID-19 Fraud Task Force. Other members include: Maricopa County Attorney’s Office, the Federal Bureau of Investigation, the Food and Drug Administration, the Internal Revenue Service Investigation Division, Health and Human Services, the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, the United States Secret Service, the United States Army Criminal Investigation Division, and the Defense Criminal Investigative Services.
"It’s not surprising con artists are taking advantage of headlines and exploiting COVID-19 concerns and anxieties of consumers," said Attorney General Mark Brnovich. "The Attorney General’s Office is here to serve Arizonans and is working around the clock to combat fraud, but we can't do it alone. The launch of this new COVID-19 Task Force with our federal and local partners will maximize our resources and help ensure we are prepared to combat new and evolving consumer threats."
"The FBI is proud to be a member of Arizona's COVID-19 Fraud Task Force," said Sean Kaul, Special Agent in Charge of the FBI Phoenix Field Office. "We are committed to aggressively pursuing bad actors who are utilizing the COVID-19 pandemic to commit cyber, financial, and healthcare fraud, including withholding critical supplies from our citizens, healthcare workers, and first responders."
In recent weeks, stories of fraud related to the coronavirus have increased across the nation. In times of uncertainty, consumers are often more vulnerable to scams as they seek answers and a sense of security. Fake texts, emails, and social media posts that might normally be ignored may now be enticing if they offer COVID-19 tests, miracle cures, medical products, or financial windfall.
On April 6, the Federal Trade Commission reported that it had received almost 12,000 consumer complaints related to COVID-19 in just three months. Well over half of those complaints were fraud-related, with a total loss to consumers of $8.39 million.
The Arizona Attorney General’s Office has also experienced a spike in COVID-19-related consumer fraud complaints. The office already sent cease-and-desist letters to local businesses (YiLo Superstore Dispensary and Prepper’s Discount) that were offering COVID-19-related products alleged to be in violation of the Arizona Consumer Fraud Act. To help keep Arizonans informed of the latest scams and to provide tips to consumers, the Attorney General’s Office recently launched a COVID-19 scam information page: www.AZAG.gov/COVID-19.
In light of these reports, United States Attorney Bailey and Attorney General Brnovich urge all Arizonans to be on alert for scam artists. Be smart and consider the following to protect yourself from COVID-19 fraud:
- Do not respond to texts, emails, or calls requesting your personal information in exchange for a COVID-19 stimulus check. If you receive one of these requests, immediately report it to the hotline. COVID-19 economic impact checks will be delivered based on 2018 or 2019 tax return information, so no action is required for most people.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. An organization may not be legitimate even if it uses words like “CDC” or “government” in its name.
- Be cautious of purchasing personal protective equipment (PPE) from unknown third party vendors. Verify that the company is legitimate before ordering their products or sending money.
- Never click on a link or open an email attachment from an unknown or unverified source. Links and attachments may be embedded with a virus that will infect your computer or mobile device. To better protect yourself against malware, make sure your anti-virus software is operating and up-to-date.
- Do not be convinced by sales pitches for COVID-19 tests that promise to give results in as little as 24 hours. If an effective, quick-results test becomes widely available, you will find out through news sources and government reporting, not a sales pitch.
If you believe you have been a target of a coronavirus-related scam, or know someone else who has been, please report the fraud. Reports can be made to the Task Force at:
- National Center for Disaster Fraud Hotline: 1-800-720-5721 or [email protected]
- Arizona Attorney General’s Office: www.AZAG.gov/complaints/consumer
- FBI’s IC3 (for internet related scams): www.IC3.gov
RELEASE NUMBER: 2020-044_Coronavirus Task Force Launch
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Do not respond to texts, emails, or calls requesting your personal information in exchange for a COVID-19 stimulus check. If you receive one of these requests, immediately report it to the hotline. COVID-19 economic impact checks will be delivered based on 2018 or 2019 tax return information, so no action is required for most people.
U.S. Attorney seeks help from hospitals to report hoarding and price-gouging of medical suppliesRead the Press Release
U.S. Attorney Justin Herdman sent a letter to Northern Ohio hospitals today encouraging employees and medical professionals to report individuals and companies that may be acquiring or selling medical supplies for the purpose of price-gouging or hoarding.
“Our office is prioritizing the deterrence, investigation, and prosecution of wrongdoing related to the COVID-19 pandemic—including those engaged in hoarding and/or price-gouging critical medical supplies,” said U.S. Attorney Herdman. “We are asking for your assistance in identifying individuals and companies that may have acquired vital medical supplies in excess of what they would reasonably use, or for the purpose of charging exorbitant prices. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, governmental agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
The letter was sent to various hospitals and healthcare systems in Northern Ohio as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud.
The U.S. Attorney’s Office encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or email tips to the Northern District office at [email protected].
Read U.S. Attorney Herdman's letter to hospital leadership below.
US Attorney Herdman's letter to hospital systems.pdfU.S. Attorney and IRS Warn of Potential Fraud and Schemes in Wake of Economic Impact PaymentsRead the Press Release
U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana, who also serves as the Executive Director of the National Center for Disaster Fraud (NCDF), again urges the public to be vigilant of potential fraud and schemes relating to the Internal Revenue Service COVID-19 economic impact payments, which will soon be disbursed.
U.S. Attorney Fremin stated, “Criminals constantly look for opportunities to take advantage of unsuspecting victims and this pandemic is a perfect example of such opportunity. My office, along with the IRS, urge the public to continue using extreme caution when responding to unsolicited phone calls, emails, and text messages that appear to come from the IRS attempting to elicit your personal identifying information or financial information. I strongly encourage the public to report suspected coronavirus-related waste, fraud, abuse or allegations of criminal conduct by contacting the NCDF.”
The IRS recently reminded taxpayers of approaches scammers may use:
- Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
- Ask the taxpayer to sign over their economic impact payment check to them.
- Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
- Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
- Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.
For more information, visit the IRS website at www.irs.gov/coronavirus.
To report suspected fraud related to COVID-19, please contact the National Center for Disaster Fraud by calling 1-866-720-5721 or sending an e-mail to [email protected].
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina announces that a federal grand jury in Raleigh has returned indictments charging JEOVANY AMILCAR RIBAS-NAVARETE, age 40, of El Salvador, and LEONEL AGUIRRE-GIRON, age 36, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry, RIBAS-NAVARETE, previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
AGUIRRE-GIRON, previously deported twice and found in Sampson County, is alleged to have been previously deported subsequent to a felony conviction for illegal reentry of a deported alien in the Southern District of Texas. Therefore, if convicted, he would face maximum penalties of ten years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the cases.
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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.
Three Men Sentenced to Two Years’ Federal Prison Apiece for Parking Lot Beating and TheftRead the Press Release
Three men who assaulted two other men in February 2020 were sentenced on April 6, 2020, to two years apiece in federal prison.
Lashaun Perry, age 43, Maurice Bivens, age 40, both of Cedar Rapids, Iowa, and Montrivel Woods, age 42, from Ely, Iowa, received the prison terms on April 6, 2020, after an evidentiary hearing held on February 25, 2020.
Evidence at the hearing showed that in the early morning hours of February 2, 2020, Perry, Bivens, and Woods got into an altercation with some other men outside The Lumberyard, a strip club in Cedar Rapids. The altercation was broken up and the other men drove from the scene to a nearby parking lot. There, one of the men got out of their car and retrieved a propane tank from a gas grill in the parking lot. That individual took the propane tank to the street where the car in which Perry, Bivens, Woods, and Brian Turner was driving by. Surveillance video showed the man running back into the parking lot without the propane tank, followed shortly by Bivens, Turner, Woods, and Perry. A brawl then ensued with Bivens, Woods, Perry, and Turner fighting the man who took the propane tank and another man. During the melee, one of the other men was knocked to the ground, at which time Perry stomped and kicked his head while Bivens was holding him. Perry, Bivens, and Woods then pursued the other man to a corner of the parking lot, where Perry punched him twice in the head, knocking him unconscious. That man suffered a concussion and significant bleeding from the back of his head.
After the man was unconscious on the ground, Bivens approached the man, took his cell phone from his pocket, and smashed it on the ground. Woods and Turner then approached the man and took his cash, cigarettes, and shoes.
At the time of the fight, Perry, Woods, and Bivens were all on supervised release for prior federal convictions. Woods was convicted in 2007 of conspiring to distribute crack cocaine. Bivens was convicted in 2008 of possession with intent to distribute crack cocaine. Perry was convicted in 2013 of being a felon in possession of a firearm.
Perry, Bivens, and Woods were sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Each man was sentenced to 24 months’ imprisonment. There is no parole in the federal system. Each man is being held in the United States Marshal’s custody until he can be transported to a federal prison.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number for Bivens is 07-CR-00095-LRR. The case file number for Woods is 06-CR-00141-LRR. The case file number for Perry is 12-CR-00050-LRR.
Follow us on Twitter @USAO_NDIA.
Statement from Assistant Attorney General Makan Delrahim on District Court Decision in U.S. v. Sabre Corp. and Farelogix Inc.Read the Press Release
"At trial, the Antitrust Division argued that Sabre’s acquisition of Farelogix would extinguish a crucial constraint on Sabre’s market power and would result in higher prices and less innovation. While we are disappointed with the court’s decision, we appreciate the court’s thoughtful consideration of this important case. We will closely review the court’s opinion and consider next steps in light of our commitment to preserving competition for the benefit of the American consumer."
St. Petersburg Man Who Threatened to Spread Covid-19 Virus by Spitting and Coughing on Police Officers Charged with Biological Weapons HoaxRead the Press Release
Tampa, Florida– United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging James Jamal Curry (31, St. Petersburg) with perpetrating a biological weapons hoax. If convicted, Curry faces up to five years in federal prison.
According to the
complaint , on March 27, 2020, officers from the St. Petersburg Police Department responded to a domestic violence call involving Curry. During Curry’s arrest, he turned to an officer, declared that he was infected with the Coronavirus, and coughed on the officer’s arm.The next day, Curry bonded out of the Pinellas County Jail. On the evening of March 28, 2020, police were again called to the same residence where they encountered Curry and arrested him a second time. During his arrest, Curry spit on an arresting officer multiple times—hitting the officer’s face, nose, and inside her mouth with blood-filled saliva. Curry again claimed to have the Coronavirus, laughed, and announced that he was spreading the virus around.
Law enforcement officers subsequently obtained and executed a search warrant to test Curry for COVID-19. Curry tested negative. Individuals close to Curry and jail personnel reported that Curry had not shown any symptoms of COVID-19.
A criminal complaint is merely a charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the St. Petersburg Police Department, the Florida Department of Health, the State Attorney’s Office (Sixth Judicial Circuit), and the Pinellas County Jail. It will be prosecuted by Assistant United States Attorney Frank Murray.
South Florida U.S. Attorney’s Office and IRS-CI Warn Taxpayers Against Fraud Schemes Related to COVID-19 Economic Impact PaymentsRead the Press Release
MIAMI, Florida -- The United States Attorney’s Office for the Southern District of Florida and Internal Revenue Service-Criminal Investigations (IRS-CI), Miami Field Office, are warning taxpayers to be alert about possible scams relating to COVID-19 economic impact payments.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement today in an effort to prevent taxpayers from falling victim to criminals using the recently approved payments as an opportunity to commit a crime.
COVID-19 economic impact payments are scheduled to be on their way in a matter of weeks. For most Americans, this will be a direct deposit into their bank accounts. For others, it will be through a check that they receive in the mail. Scammers may try to get you to sign over your check to them or get you to “verify” your filing information in order to steal your money. Your personal information could then be used to file false tax returns in an identity theft scheme. Because of this, everyone receiving a COVID-19 economic impact payment is at risk.
Michael J. De Palma, Special Agent in Charge of the IRS-CI Miami Field Office warned, “Even as our Nation is enduring a State of Emergency, criminals will continue to engage in heinous acts to further enrich themselves demonstrating no sympathy by exploiting you during your most difficult circumstance.”
Special Agent in Charge De Palma offers the following information and tips to spot a scam and understand how the COVID-19 related economic impact payments will be issued.
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information – even if someone claims it’s necessary to get your check. It’s a scam.
- If you receive a call, don’t engage with scammers or thieves, even if you want to tell them that you know it’s a scam, or you think that you can beat them. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don’t click on any links in those emails or texts.
- Reports are also swirling about bogus checks. If you receive a “check” in the mail now, it’s a fraud – it will take the Treasury a few weeks to mail those out. If you receive a “check” for an odd amount (especially one with cents), or a check that requires that you verify the check online or by calling a number, it’s a fraud.
During these unprecedented and uncertain times, our community needs to come together and fight with a purpose. Don’t allow these criminals to victimize you by exploiting your emotions during this crisis. Stay connected and inform your loved ones including your family, friends and neighbors about these scams.
“Fraudsters are constantly on the lookout for new opportunities to swindle innocent people out of their hard-earned money. My Office and other law enforcers are on the lookout too -- for them. We will not tolerate fraudsters taking advantage of South Floridians during the COVID-19 crisis,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“IRS Criminal Investigation will continue to pursue criminals who violate the law and attack our community. IRS-CI will work diligently alongside the Department of Justice and our law enforcement counterparts to identify scams, stop the con-artists in their tracks and bring them to justice.” said Special Agent in Charge De Palma.
For more information, visit the IRS website at www.irs.gov/coronavirus.
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].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Rite Aid to Pay $4.75 Million to Resolve Allegations that it Violated Federal Law in the Sale of Pseudoephedrine TabletsRead the Press Release
ALBANY, NEW YORK – Retail drugstore chain Rite Aid, which operates more than 2,000 pharmacies in 18 states, will pay the United States a $4.75 million penalty to resolve allegations that its employees, in violation of the Controlled Substances Act, recorded false or incomplete information about customers who purchased tens of thousands of products containing pseudoephedrine. Pseudoephedrine, an ingredient found in many cough and cold medicines, is used by some to illegally manufacture the drug methamphetamine.
Grant C. Jaquith, United States Attorney for the Northern District of New York, Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, U.S. Drug Enforcement Administration (DEA), New York Division, and Todd Scott, Special Agent-in-Charge, DEA, Louisville Division, made the announcement.
In order to prevent the illicit use of pseudoephedrine, the Controlled Substances Act requires Rite Aid and other retail sellers to create and maintain a logbook that contains, among other things, the name and address of each customer who makes a purchase of a pseudoephedrine product. In the settlement agreement, Rite Aid admitted that, between August 2009 and January 2014, certain Rite Aid employees entered into Rite Aid’s logbook inaccurate or incomplete name and address information for customers. The United States alleged that this misconduct occurred in connection with tens of thousands of sales during that time period. Shortly after the United States brought these violations to Rite Aid’s attention, the company voluntarily devised and implemented a number of enhancements to its process for sales of pseudoephedrine products to better ensure Rite Aid’s compliance with federal law.
“Rite Aid had a moral and a legal obligation to keep track of its pseudoephedrine sales to help ensure that the regulated drug was purchased for legitimate reasons, and not for the illegal manufacture of methamphetamine,” stated United States Attorney Jaquith. “We are committed to enforcing that obligation with aggressive action and appropriate penalties that also reflect acceptance of responsibility, implementation of compliance measures, and ability to pay.”
“Pseudoephedrine products are regulated under federal law because they have been used in the production of a highly addictive and highly dangerous drug, methamphetamine,” stated United States Attorney Donoghue. “The settlement with Rite Aid sends a clear message to all those engaged in the manufacture, distribution and sale of those products: you must comply with federal laws enacted to prevent the illegal use of your products.”
“Companies that do not comply with the Controlled Substances Act are violating the law,” stated DEA Special Agent-in-Charge Donovan. “Regulatory laws are put in place for a reason – to ensure public health and safety. Companies that turn a blind eye to regulations concerning the purchase of products containing pseudoephedrine enable illicit methamphetamine production. Rite Aid’s disregard to compliance made it personal to us – whose job it is to save lives.”
“What Rite Aid learned today is that no one is above the law, not even large companies,” stated DEA Special Agent-in-Charge Scott. “It is vitally important that pharmacies meet their record-keeping obligations to account for the safe flow of medications, to include pseudoephedrine, which carries the potential for methamphetamine abuse.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the U.S. Attorney’s Office for the Eastern District of New York, and DEA. The United States was represented by Assistant U.S. Attorneys Adam J. Katz of the Northern District of New York and Elliot M. Schachner of the Eastern District of New York.
Rite Aid to Pay $4.75 Million to Resolve Allegations That It Violated Federal Law in the Sale of Pseudoephedrine Tablets, Which Can Be Used in the Manufacture of MethamphetamineRead the Press Release
Retail drugstore chain Rite Aid, which operates more than 2,000 pharmacies in 18 states, will pay the United States a $4.75 million penalty to resolve allegations that its employees, in violation of the Controlled Substances Act, recorded false or incomplete information about customers who purchased tens of thousands of products containing pseudoephedrine. Pseudoephedrine, an ingredient found in many cough and cold medicines, is used by some to illegally manufacture the drug methamphetamine.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Grant C. Jaquith, United States Attorney for the Northern District of New York, Ray Donovan, Special Agent-in-Charge, U.S. Drug Enforcement Administration, New York Division (DEA), and Todd Scott, Special Agent-in-Charge, DEA, Louisville Division, made the announcement.
In order to prevent the illicit use of pseudoephedrine, the Controlled Substances Act requires Rite Aid and other retail sellers to create and maintain a logbook that contains, among other things, the name and address of each the customer who makes a purchase of a pseudoephedrine product. In the settlement agreement, Rite Aid admitted that, between August 2009 and January 2014, certain Rite Aid employees entered into Rite Aid’s logbook inaccurate or incomplete name and address information for customers. The United States alleged that this misconduct occurred in connection with tens of thousands of sales during that time period. Shortly after the United States brought these violations to Rite Aid’s attention, the company voluntarily devised and implemented a number of enhancements to its process for sales of pseudoephedrine products to better ensure Rite Aid’s compliance with federal law.
“Pseudoephedrine products are regulated under federal law because they have been used in the production of a highly addictive and highly dangerous drug, methamphetamine,” stated United States Attorney Donoghue. “The settlement with Rite Aid sends a clear message to all those engaged in the manufacture, distribution and sale of those products: you must comply with federal laws enacted to prevent the illegal use of your products.”
“Rite Aid had a moral and a legal obligation to keep track of its pseudoephedrine sales to help ensure that the regulated drug was purchased for legitimate reasons, and not for the illegal manufacture of methamphetamine,” said United States Attorney Jaquith. “We are committed to enforcing that obligation with aggressive action and appropriate penalties that also reflect acceptance of responsibility, implementation of compliance measures, and ability to pay.”
“Companies that do not comply with the Controlled Substances Act are violating the law,” stated DEA Special Agent-in-Charge Donovan. “Regulatory laws are put in place for a reason – to ensure public health and safety. Companies that turn a blind eye to regulations concerning the purchase of products containing pseudoephedrine enable illicit methamphetamine production. Rite Aid’s disregard to compliance made it personal to us – whose job it is to save lives.”
“What Rite Aid learned today is that no one is above the law, not even large companies,” stated DEA Special Agent-in-Charge Scott. “It is vitally important that pharmacies meet their record-keeping obligations to account for the safe flow of medications, to include pseudoephedrine, which carries the potential for methamphetamine abuse.”
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of New York, the U.S. Attorney’s Office for the Northern District of New York, and DEA. The United States was represented by Assistant U.S. Attorneys Elliot M. Schachner of the Eastern District of New York and Adam J. Katz of the Northern District of New York.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 6, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Dwight Black Spotted Horse, age 35, was sentenced to 21 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Black Spotted Horse was indicted by a federal grand jury on September 10, 2019. He pled guilty on January 28, 2020.
Black Spotted Horse was convicted of Sexual Abuse of a Minor in October 2006. As a result of this conviction, he is required to register as a sex offender for his natural lifetime. Between June 16, 2019, and September 10, 2019, Black Spotted Horse failed to properly register and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore prosecuted the case.
Black Spotted Horse was immediately turned over to the custody of the U.S. Marshals Service.
Parmelee Man Sentenced for Habitual Domestic AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on April 6, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Adrian Hawkman, age 35, was sentenced to 18 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hawkman was indicted by a federal grand jury on June 11, 2019. He pled guilty on January 15, 2020.
The conviction stemmed from an incident that occurred on February 23, 2019, wherein Hawkman assaulted his domestic partner at their home in Parmelee. At the time of this incident, Hawkman had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Hawkman was immediately turned over to the custody of the U.S. Marshals Service.
Public Repository of Documents Relating to Practice Fusion, Inc.’s Resolution of Conspiracy and Kickback Charges in Connection with Pharma Co. X Now Available On-LineRead the Press Release
Christina E. Nolan, the United States Attorney for the District of Vermont, announced today that the public document repository required by the January 27, 2020, Deferred Prosecution Agreement (“DPA”) between her office and electronic medical record vendor Practice Fusion, Inc. is now live. The DPA provisionally resolved Practice Fusion’s criminal conspiracy and violation of the Anti-Kickback Statute in connection with soliciting and receiving remuneration from an opioid company (“Pharma Co. X”) in exchange for creating and embedding clinical decision support alerts in Practice Fusion’s health record’s software to influence physician ordering of extended release opioids. Under the terms of the DPA, Practice Fusion is required to host a website containing documents underlying the criminal conduct.
“This first-of-its-kind public document repository is an important component of our resolution with Practice Fusion and provides transparency as to the conduct underlying this resolution,” said Christina E. Nolan, United States Attorney for the District of Vermont. “The public has a right to understand how Practice Fusion promised to use its medical technology in ways commercially favorable to itself and an opioid company.”
The website containing links to over four hundred (400) documents is available at:
https://www.pfdatabasedistrictofvermontsettlement.net/.
Information about the Government’s January 27, 2020 resolution with Practice Fusion, including links to the Government’s Information, DPA, and other court filings, is available at:
https://www.justice.gov/usao-vt/pr/electronic-health-records-vendor-pay-largest-criminal-fine-vermont-history-and-total-145
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150YearsMiddle School Teacher Charged with Exploiting Children on KikRead the Press Release
A Fort Worth middle school teacher has been charged with child exploitation after using a popular chat app to share child pornography, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Stephen Travis Corkill, an 35-year-old seventh grade teacher at Marine Creek Middle School in Fort Worth, was charged via criminal complaint with transporting a depiction of a minor engaged in sexually explicit conduct via interstate commerce. He made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton Wednesday morning.
According to charging documents, Mr. Corkill allegedly used Kik, a messaging app popular among teenagers, to share an explicit image of a young girl.
Kik automatically flagged the image as having a hash value associated with known child pornography, and, after verifying the image was indeed pornography, reported it to law enforcement. Agents then subpoenaed the subscriber information for the IP address associated with the upload, and traced it back to Mr. Corkill.
A search of Mr. Corkill’s residence revealed an iPhone with Kik installed. Under questioning, Mr. Corkill allegedly acknowledged he was the sole owner of the Kik account, which he said he used to view child pornography.
A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Corkill is presumed innocent unless and until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Flower Mound Police Department, Fort Worth Police Department, and Cedar Hill Police Department. Assistant U.S. Attorney A. Saleem is prosecuting the case.
Mexican man convicted of smuggling half a million dollarsRead the Press Release
McALLEN, Texas – A 35-year-old resident of Mexico City, Mexico, has entered a guilty plea to bulk cash smuggling, announced U.S. Attorney Ryan K. Patrick.
Jorge Alberto Ruiz-Periban evaded a currency reporting requirement in his attempt to conceal $570,247 while trying to take the money into Mexico.
On Jan. 8, Ruiz-Periban entered the southbound inspection lanes in a vehicle at the Anzalduas Port of Entry. Authorities referred him to secondary inspection, at which time he denied possession of $10,000 or more in U.S. currency. However, they located an abnormality in the spare tire of Ruiz-Periban’s vehicle and subsequently discovered $570,247 concealed in it.
At his plea today, Ruiz-Periban admitted he intended to evade the currency reporting requirement and intended to transport the money he hid in the tire from Mission to Mexico.
As part of the terms of the plea agreement, the $570,247 will be forfeited to the United States.
U.S. District Judge Randy Crane will impose sentencing June 16. At that time, Ruiz-Periban faces up to five years in prison and a maximum $250,000 possible fine. He has been and will remain in custody pending that hearing.
Customs and Border Protection and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.