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8 April 2020
Mexican Citizen Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Simon Pedro Vilchis-Rosas, age 46, who resided in Elmsford, New York, was sentenced today to time served (41 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Vilchis-Rosas, a citizen of Mexico, admitted that he was removed from the United States to Mexico on May 6, 2011. Vilchis-Rosas admitted that he returned to the United States following the removal without the necessary government permission. On February 28, 2020, ICE Officers arrested Vilchis-Rosas in Albany.
Vilchis-Rosas was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Hundreds of Surgical Masks Stolen by Reno Man from Veterans' Affairs Medical CenterRead the Press Release
RENO, Nev. – Peter Lucas, 35, of Reno, was arrested yesterday and appeared in court today for allegedly stealing hundreds of surgical masks from a supply cart at the Ioannis A. Lougaris VA Medical Center (VA Medical Center) in Reno, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
“Our military veterans served on the front lines to protect our country, and now our health professionals are doing the same in our fight against COVID-19,” said U.S. Attorney Trutanich. “We will not allow the theft of personal protective equipment to go undeterred, endangering the safety of doctors, nurses, and other health professionals protecting our communities.”
Lucas is charged with one count of theft of health care property. He made his initial appearance today before U.S. Magistrate Judge Carla L. Baldwin.
According to the complaint and affidavit, police surveillance cameras at the VA Medical Center depicted that, between March 19 and March 23, 2020, Lucas stole at least four boxes of surgical masks from supply carts in his care, then concealed the boxes under his jacket before exiting the hospital. Each box contained 50 masks.
If convicted, the maximum statutory penalty is one year in prison and a $100,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the Court, based on the advisory Sentencing Guidelines and other statutory factors.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is a product of an investigation by the VA Police Department. Assistant U.S. Attorney Peter Walkingshaw is prosecuting this case.
The public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected] or directly to the U.S. Attorney’s Office at [email protected]. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.
For the most up-to-date information on COVID-19, you may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.
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Hartford Men Charged with Selling Fentanyl, CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody announced that four Hartford residents were arrested today on federal criminal complaints charging them with narcotics distribution offenses. During today’s joint operation, investigators also found and seized 12 firearms.
The following individuals were arrested today:
ANTHONY DONES, also known as “Ant,” 38
JUAN LAUREANO, also known as “Pito,” 40
EDIL RAMOS, also known as “E,” 38
ELIAS GUZMAN, also known as “Bebo” and “Fat Boy,” 28As alleged in court documents and statements made in court, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department have been investigating drug trafficking and related criminal acts being committed by members and associates of the Los Solidos and Latin Kings street gangs in Hartford’s South End. In recent months, investigators have conducted multiple controlled purchases of fentanyl from Dones and his associate, Laureano, in the vicinity of Dones’ Montrose Street residence; fentanyl and crack cocaine from Ramos at his Wethersfield Avenue residence, and fentanyl and crack cocaine from Guzman on Benton Street.
Dones and Laureano were arrested at Dones’ residence. A search of the residence revealed a loaded .45 caliber pistol and drug packaging material.
A search of Ramos’ residence revealed a loaded 9mm firearm, approximately 1,200 bags of fentanyl, a distribution quantity of crack cocaine and approximately $33,000 in cash.
Guzman was arrested at his residence on Flatbush Avenue.
As part of today’s operation, investigators conducted a court-authorized search of a residence on Franklin Avenue and seized an additional 10 handguns, including several that had been reported stolen.
Dones and Laureano are charged with possession with intent to distribute, and distribution of, fentanyl, and conspiracy to possess with intent to distribute, and distribution, of fentanyl. Ramos and Guzman are charged with possession with intent to distribute, and distribution of, fentanyl and cocaine base (“crack cocaine”).
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the defendants were presented in court via videoconference and were ordered detained pending detention hearings that are scheduled for next week.
“These are difficult times for all of us, and I want to commend the FBI Task Force, Hartford Police Department and all members of law enforcement who, at increased personal risk, are working to keep us safe,” said U.S. Attorney Durham. “In recent months, shootings and fentanyl-related overdose deaths have been on the rise in our capitol city. Disrupting fentanyl trafficking networks and removing illegal guns from the street saves lives and, despite the significant obstacles posed by the COVID-19 pandemic, we continue to actively investigate and intend to aggressively prosecute those whose criminal activities endanger life in our communities.”
“During these challenging times, we continue to work around the clock seven days a week,” said FBI Special Agent in Charge Sundberg.” Today’s arrest and confiscation of guns and narcotics is a direct result of the hard work of local and federal law enforcement working together to reduce gun violence in our communities.”
“I would like to commend the extraordinary work of everyone involved in today’s arrests and seizures,” said Chief Thody. “These law enforcement officers were clearly at an elevated risk today, but still put themselves in harm’s way to make our city a safer place. Along with our federal, state and local partners, we will continue to focus our efforts on those that perpetuate violent behavior.”
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Former Navy Civilian Employee Charged with False Statements to Obtain Workers’ CompensationRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, DAVID BURLEY, 67, Bayboro, Nc was named in a Criminal Information filed on April 6, 2020 charging him with False Statement or Fraud to Obtain Federal Employee’s Compensation. If convicted, he faces up to one-year imprisonment, a $100,000 fine, and up to one year supervised release.
The Criminal Information charges BURLEY with failing to report income from 2015-2018 for work he performed in that time.
The Federal Employees Compensation Act (FECA) is part of the Department of Labor (DOL), Office of Workers’ Compensation Programs (OWCP). OWCP monitors the program by mailing an annual self-certification form to a FECA beneficiary that requests information about the beneficiary’s work activities during the past 15 months. The beneficiary is required to certify that the beneficiary’s responses are true, complete and correct. The beneficiary is required to report all employment for which the beneficiary received a salary, wages, income, or payment of any kind. The beneficiary is also required to report all volunteer work, self-employment or involvement in business enterprises, and to report any work or ownership interest in any business enterprise even if the business lost money or profits or income were paid to others.
OWCP uses the employee’s responses to reevaluate, confirm the amount of, or entitlement to, benefits. Recipients of workers’ compensation benefits have an obligation to immediately report any change in employment to OWCP.
The Naval Criminal Investigative Service (NCIS), in conjunction with the Marine Corps Eastern Area Counsel Office and the Department of Labor Office of Inspector General conducted the investigation in this matter.
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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.
Federal Complaint Filed Against San Antonio Man for COVID-19-Related HoaxRead the Press Release
In San Antonio, 39-year-old Christopher Charles Perez is charged with allegedly perpetrating a COVID-19-related hoax, announced U.S. Attorney John F. Bash and FBI San Antonio Division Special Agent in Charge Christopher Combs, San Antonio Division.
A federal criminal complaint unsealed today charges Perez with one count of violating 18 U.S.C. § 1038, which criminalizes false information and hoaxes related to weapons of mass destruction. According to the complaint, Perez allegedly posted a threat on Facebook in which he claimed to have paid someone to spread coronavirus at grocery stores in the San Antonio area because he was trying to deter people from visiting the stores, purportedly in order to prevent the spread of the virus. A screenshot of that posted threat was sent by an online tip to the Southwest Texas Fusion Center (SWTFC) on Sunday. The SWTFC contacted the FBI office in San Antonio for further investigation. To be clear, the alleged threat was false; no one spread coronavirus at grocery stores, according to investigators.
Perez, whom FBI agents arrested late yesterday afternoon without incident, faces up to five years in federal prison upon conviction. He remains in federal custody at this time.
The FBI’s Weapons of Mass Destruction Squad and the Joint Terrorism Task Force are investigating this case. Assistant U.S. Attorney Mark Roomberg is prosecuting the case on behalf of the government.
It is important to note that 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.
If you think that you or your family are the victims of a scam or attempted fraud involving coronavirus, you can report it without leaving your home. Please contact the National Center for Disaster Fraud Hotline at 866-720-5721 or by email at [email protected]. If it’s a cyber scam, you may also submit your complaint at www.ic3.gov.
Learn more about coronavirus-related frauds, as well as combatting and reporting the hoarding and price gouging of critical supplies, from the Department of Justice: https://www.justice.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.
Eagle Butte Man Sentenced for Being a Drug User in Possession of FirearmsRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man convicted of Possession of Firearms by a Drug User was sentenced on April 6, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jason Farlee, age 31, was sentenced to 83 days time served, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Four of his firearms were also forfeited due to their involvement in the offense.
Farlee was indicted by a federal grand jury on February 13, 2019. He pled guilty on January 15, 2020.
The conviction stemmed from an incident that occurred on October 8, 2018, in Eagle Butte, wherein Farlee was driving a vehicle which was stopped by the Cheyenne River Sioux Tribe Law Enforcement Services. Farlee advised an officer that he had firearms in the vehicle and later consented to a search. Officers found three rifles, a handgun, and multiple items of drug paraphernalia within reach of the driver’s seat. Farlee’s blood was drawn pursuant to a warrant and found to contain methamphetamine.
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.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Cameron J. Cook prosecuted the case.
Dominican National Sentenced for Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced today for aggravated identify theft and falsely using a Social Security Number.
Moices Santilit, 63, was sentenced by U.S. District Court Judge Indira Talwani to two years and one day in prison and two years of supervised release. In March 2020, he pleaded guilty to one count of aggravated identity theft and one count of using a Social Security number that is not assigned to him.
In February 2016, Santilit used the Social Security number of a U.S. citizen in order to fraudulently obtain a valid Massachusetts Asbestos Worker Identification card under the victim’s name.
United States Attorney Andrew E. Lelling and Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Lelling’s Public Corruption & Special Prosecutions Unit prosecuted the case.
Do Not Fall Victim to a COVID-19 ScamRead the Press Release
The Internal Revenue Service (IRS) will begin to distribute COVID-19 Economic Impact Payments 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 that have traditionally received tax refunds via paper check, they will receive their economic impact payments in this manner as well.
With any good news story from the IRS, comes an opportunity for criminals and scammers to take advantage of the American public.
• Scammers may try to get you to sign over your check to them.
• Scammers may use this as an opportunity to get you to “verify” your filing information in order to receive your money, using your personal information to file false tax returns in an identity theft scheme.
Between these two schemes, everyone receiving an economic impact payment is at risk.
The Internal Revenue Service – Criminal Investigation (IRS-CI) is working tirelessly alongside our civil counterparts and law enforcement partners to identify scams and halt wrongdoers from taking advantage of the American people. “Taxpayers should be extra vigilant for unsolicited phone calls or emails concerning their economic impact payments,” said Justin Campbell, Special Agent in Charge of the Seattle Field Office for IRS-CI. “The IRS will not call or email you about your payment. IRS-Criminal Investigation is stepping up our efforts in coordination with the Department of Justice to aggressively investigate anyone that seeks to defraud our community members during this crisis.”
United States Attorney William D. Hyslop stated, “Everyone should be aware and be on alert against people preying on others with these types of fraudulent schemes. Don’t let someone take advantage of you. Report it when they try. The United States Attorney’s Office for the Eastern District of Washington will work closely with IRS-CI and other federal, state, local and tribal law enforcement partners in investigating and prosecuting COVID-19 fraud schemes.”
Top Line Message from the Internal Revenue Service
The IRS will deposit your economic impact payment into the direct deposit account your previously provide 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 is necessary to get your economic impact payment. Beware of this scam.
If you receive a call, do not engage with scammers or thieves. 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. Do not click on any links in those emails.
Reports are also swirling about bogus checks. If you receive a “check” in the mail now, it’s fraud – it will take the Treasury Department a few weeks to distribute the payments. 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 fraud.
Beware of Scams and Schemes
IRS-Impersonation Telephone Scams
An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, have been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. Victims are told they owe money to the IRS and it must be paid promptly through a pre-loaded debit card or wire transfer. If the victim refuses to cooperate, they are then threatened with arrest, deportation or suspension of a business or driver’s license. Or, victims may be told they have a refund due to try to trick them into sharing private information.
With COVID-19 scams, they may urge you to pay this fake “debt” with your economic impact check. For those who receive an actual check, they may ask you to endorse it and forward to them for “payment of past debts.”
Remember: Scammer Change Tactics – Variations of the IRS impersonation scam continue year-round and they tend to peak when scammers find prime opportunities to strike – like the new economic impact check being sent.
Surge in Email, Phishing and Malware Schemes
Scam emails are designed to trick taxpayers into thinking these are official communications from the IRS, tax industry professionals or tax software companies. These phishing emails ask taxpayers about a wide range of topics – related to refunds, filing status, ordering transcripts, and verifying PIN information – in order to steal your personal information or file tax returns.
When people click on links from these phishing emails, they are taken to sites designed to imitate an official-looking website, such as IRS.gov. The sites may also carry malware, which can infect people’s computers to steal their files or record their keystrokes. Also be aware of email phishing scams that appear to be from the IRS and include a link to a bogus web site intended to mirror the official IRS web site. These emails contain the direction “you are to update your IRS e-file immediately.” The emails mention USA.gov and IRSgov (without a dot between “IRS” and “gov”). Don’t get scammed. These emails are not from the IRS.
Don’t be a victim! Visit www.irs.gov or www.irs.gov/coronavirus
Department of Justice Clears on Google’s Application to the Federal Communications Commission to Operate a Portion of the Pacific Light Cable Network SystemRead the Press Release
Today, the Department of Justice filed a petition with the Federal Communications Commission (FCC) concerning Google LLC’s application to operate a subsea cable.
On behalf of itself as well as the Departments of Homeland Security and Defense, the department advised the FCC that those agencies do not oppose Google LLC’s application (through its subsidiary GU Holdings Inc.) to operate the segment of the Pacific Light Cable Network System connecting the United States to Taiwan for the next six months, pending a final disposition of the license application, so long as that temporary authority is conditioned on certain obligations. Those obligations are set forth in a Provisional National Security Agreement that was executed by GU Holdings Inc. and the foregoing agencies on April 8, 2020. Google applied to the FCC for this operating authority in a Special Temporary Authority on April 2, 2020 (the “STA”).
In its application for the STA, Google emphasized “an immediate need to meet internal demand for capacity between the U.S. and Taiwan” and that without the sought temporary authority Google would likely have to seek alternative capacity at “significantly higher prices.” After discussions with Google representatives, the departments concluded that the obligations undertaken by Google in the Provisional National Security agreement would be sufficient to preserve their abilities to enforce the law, protect national security, and preserve public safety.
Under the terms of the Provisional National Security Agreement, Google has agreed to a range of operational requirements, notice obligations, access and security guarantees, as well as auditing and reporting duties, among others.
The Provisional National Security Agreement also includes a commitment by Google to “pursue diversification of interconnection points in Asia,” as well as to establish network facilities that deliver traffic “as close as practicable” to its ultimate destination. This term reflects the views of the Executive Branch that a direct cable connection between the United States and Hong Kong would pose an unacceptable risk to the national security and law enforcement interests of the United States.
More information concerning the license application and the departments’ response is available here.
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 formerly known as Team Telecom, the operation of which was recently formalized by Executive Order (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.
Dallas Woman Sentenced via VTC for $1.4 Million Wire FraudRead the Press Release
A Dallas woman was sentenced via video teleconference to 46 months in federal prison for her role in a $1.4 million real estate title insurance scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Hers was the first VTC sentencing hearing in federal court in Dallas since the COVID-19 pandemic broke out.
Constance Marie Kelly, 56, pleaded guilty in November to conspiracy to commit wire fraud. She was sentenced Monday morning by Chief U.S. District Judge Barbara M.G. Lynn, who held the hearing via VTC.
“This defendant, who defrauded her employer out of more than a million dollars, was sentenced via video teleconference,” said U.S. Attorney Erin Nealy Cox. “We are gratified the Court is working with our office to ensure justice marches on, even amidst a pandemic.”
According to plea papers, Ms. Kelly, a former employee of real estate title company American Title, admitted that she and codefendant Leonard James McMorris fraudulently transferred more than $1.4 million from American Title’s escrow accounts into bank accounts belonging to Mr. McMorris. Between 2002 and 2007, Ms. Kelly admitted, she initiated at least 51 wire transfers and wrote 11 checks to fraudulently disburse the money from an American Title account at Compass Bank in Alabama.
Mr. McMorris had previously pleaded guilty to conspiracy to commit wire fraud and was sentenced in November 2016 to 30 months in federal prison.
The defendants are jointly and severally liable for more than $1.4 million in restitution.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney David Jarvis prosecuted the case.
DOJ Agrees to Civil Settlement with Additional Firm Involved in Bid Rigging and Fraud Targeting Defense Department Fuel Supply Contracts for U.S. Military Bases in South KoreaRead the Press Release
South Korea-based company Jier Shin Korea Co. Ltd., and its president, Sang Joo Lee, have agreed to pay $2 million to the United States for civil antitrust and False Claims Act violations for their involvement in a bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea, the Department of Justice announced today.
The United States previously reached civil settlements totaling over $205 million relating to the conspiracy with GS Caltex Corporation, Hanjin Transportation Co. Ltd., Hyundai Oilbank Co. Ltd., SK Energy Co. Ltd., and S-Oil Corporation. As with the prior civil settlements, this settlement reflects the important role of both Section 4A of the Clayton Act and the False Claims Act to ensure that the United States is compensated when it is the victim of anticompetitive conduct.
“Today’s settlement represents the final chapter of our efforts to use Section 4A of the Clayton Act to ensure that the companies involved in this conspiracy compensate American taxpayers for their anticompetitive activity,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “Together, these are the largest Section 4A settlements in American history, and we will continue to use this important enforcement tool when taxpayers are harmed by cartels.”
“This is the sixth False Claims Act settlement arising from the bid rigging of contracts to supply fuel to U.S. military bases in South Korea,” said Assistant Attorney General Jody Hunt of the Civil Division. “We will pursue and hold accountable those who seek to defraud the American taxpayers, including those who conspire with others to do so.”
“You will pay the price if you rig bids and especially if you target our military bases while doing so,” said U.S. Attorney David M. DeVillers for the Southern District of Ohio. “Today’s settlement shows that we will not stop until we hold accountable all responsible parties.”
The Department’s Antitrust Division today filed a civil antitrust complaint in the U.S. District Court for the Southern District of Ohio and, at the same time, filed a proposed settlement that, if approved by the court, would resolve the lawsuit against Jier Shin Korea and Mr. Lee for their anticompetitive conduct targeting the U.S. military in South Korea. The proposed settlement requires that Jier Shin Korea and Mr. Lee pay $2 million to the United States to resolve the civil antitrust violations. In addition, Jier Shin Korea and Mr. Lee have agreed to continue to cooperate with the United States’ civil investigations and to abide by an antitrust compliance program. The amount to be paid by Jier Shin Korea and Mr. Lee reflects the value of their cooperation, limitations on their ability to pay, and cost savings realized by avoiding extended litigation. The settlement further provides that the United States, if it discovers any material misrepresentations in the financial statements provided by Jier Shin Korea and Mr. Lee regarding their ability to pay, may recover the full amount by which Jier Shin Korea or Mr. Lee understated that ability.
The payment will also resolve civil claims that the United States has under the False Claims Act against Jier Shin Korea and Mr. Lee for making false statements to the government in connection with their agreement not to compete. The Civil Division has entered into a separate settlement agreement with Jier Shin Korea and Mr. Lee to resolve these claims.
The civil settlement was handled by the Antitrust Division’s Transportation, Energy, and Agriculture Section, by the Civil Division, and by the Civil Fraud Section of the United States Attorney’s Office in the Southern District of Ohio.
The United States’ civil investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act. Those provisions allow for private parties to sue on behalf of the United States and to share in any recovery.
The proposed civil antitrust settlement, along with the Antitrust Division’s competitive impact statement, will be published in the Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Robert Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the civil antitrust settlement upon a finding that it serves the public interest.
7 April 2020
Virginia Man Charged with Filing False Loan Application Using Stolen IdentityRead the Press Release
BOSTON – A Virginia man currently on federal supervised release for a previous conviction was charged yesterday in federal court in Worcester in connection with making a false statement on a loan application and aggravated identity theft.
Rashad Al-Terek Walker, 39, of Hampton, Va., was charged with making a false statement on a loan application and aggravated identity theft. Walker was detained following an initial appearance via videoconference.
According to the charging documents, in November 2019, Walker applied for a personal loan in the amount of $16,500 at a Worcester-area credit union using a stolen identity. As part of the loan application, Walker presented a utility bill, paystub and Massachusetts driver’s license using a stolen identity. At the time of the alleged offense, Walker was on supervised release following a conviction in the Eastern District of Virginia for conspiracy to commit bank fraud.
The charge of false information on a loan application provides for a sentence of up to 30 years in prison, three years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed and one year of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Sues Philadelphia Food Distributor for Allegedly Selling Uninspected and Misbranded PoultryRead the Press Release
PHILADELPHIA, PA – United States Attorney William M. McSwain announced today that his office has filed a lawsuit to stop Philadelphia food distributor Kawa Trading, Inc. (“Kawa”), and its president Chui Xun Liu, from continuing to violate federal food safety laws. Kawa’s most recent alleged violations include selling uninspected and misbranded poultry to two restaurants in Delaware and New Jersey.
The Food Safety and Inspection Service (“FSIS”) of the United States Department of Agriculture (“USDA”), is responsible for ensuring that meat, poultry, and egg products in commerce are wholesome, not adulterated, and properly marked, labeled, and packaged. The Poultry Products Inspection Act (“PPIA”) prohibits companies and individuals from selling, transporting, offering for sale or transportation, or receiving for transportation misbranded or uninspected poultry that is capable of use as human food. The Complaint alleges that Kawa received and sold multiple unlabeled and uninspected cases of poultry products in December 2017 and January 2018.
Kawa has a long history of violating the PPIA as well as another federal food safety law—the Federal Meat Inspection Act (“FMIA”), which similarly prohibits the sale or transportation of misbranded or uninspected meat products. Kawa’s violations of both the PPIA and the FMIA date back to 2013, and the USDA has warned Kawa numerous times about its violations.
“Food safety is a critical component of public health,” said U.S. Attorney McSwain. “We will not tolerate violations of federal food safety laws and will work with our partner agency, the USDA, to do all that we can to ensure that businesses safely handle the food we eat.”
“We allege that, despite numerous warnings, the company continued to violate food safety laws,” said FSIS Administrator, Paul Kiecker. “Today’s action shows that FSIS investigators are upholding the Agency’s mission to protect public health and ensure a safe food supply.”
The United States’ lawsuit seeks to permanently enjoin Kawa from committing any further violations of the PPIA or FMIA.
The Complaint filed in this matter contains allegations only; there has been no determination of civil liability.
The case is being litigated by Assistant United States Attorney Stacey L. B. Smith, with assistance from Tracy McGowan, USDA Trial Attorney.
U.S. Attorney’s Office and IRS-Criminal Investigation Warns of Possible Covid-19/Economic Impact Payment ScamsRead the Press Release
New Orleans, Louisiana – The U.S. Attorney’s Office, Eastern District of Louisiana and the Internal Revenue Service –Criminal Investigation (IRS-CI) warned Louisiana taxpayers today to be alert about possible scams relating to COVID-19 economic impact payments.
U.S. Attorney Peter G. Strasser and Demetrius Hardeman, Assistant Special Agent in Charge of the IRS-CI Atlanta Field Office, jointly made the announcement today to prevent taxpayers in need from being victimized by criminals using the recently approved payments as an opportunity to commit a crime.
“During a crisis, criminals do not scale back their efforts to take advantage of unsuspecting citizens; rather, criminals relish the opportunity. The upcoming COVID-19 economic impact payments offers a perfect scenario for scammers to conduct schemes designed to separate personal information -- such as a Social Security number or bank account information -- from members of our community. Scammers will prey on our vulnerabilities. We are strongly encouraging everyone to be wary of potential fraudulent schemes, both before and after the payments arrive, and contact law enforcement to report illicit any activity,” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“This is a time when ruthless criminals might seek to take advantage of this opportunity to prey upon unsuspecting individuals in an effort to line their own pockets by stealing your money or your personal information,” said Demetrius Hardeman, Assistant Special Agent in Charge of the IRS-CI Atlanta Field Office
COVID-19 economic impact payments will be on their way to taxpayers in a matter of weeks. For most Americans, the payment will come in the form of 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 the same manner as they have received their income tax refund.
Scammers may try to get you to sign over your check to them or use this as an opportunity to get you to “verify” your filing information as a ploy to steal your identity, and then use your personal information at a later date to file fraudulent tax returns. Because of this, everyone receiving money from the government as a result of the COVID-19 economic impact payment is potentially at risk. United States Attorney Peter G. Strasser and Assistant Special Agent in Charge Demetrius Hardeman offer the following information to help taxpayers understand how the COVID-19 related economic impact payments will be issued, as well as offer some helpful tips to arm taxpayers against possible scams and fraud:
- The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
- The IRS will not call and ask you to verify your payment details. Do not give out your bank account, debit account, or PayPal account information - even if someone claims it's necessary to get your check. It's a scam.
- If you receive a call, don't engage with callers/potential scammers or thieves. 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 circulating 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 get the payment process underway. 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.
In these uncertain and trying times, we need to stand together united with purpose. Don’t become a victim by allowing criminals to exploit the current need for economic assistance. Be vigilant about protecting your tax dollars! Stay strong, America; and tell your family, friends and neighbors about these scams.
Report fraud related to the COVID-19 crisis to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721 or email tips to the United States Attorney’s Office at [email protected].
For more information, visit the IRS website at www.irs.gov/coronavirus.
U.S. Attorney Scott Brady and Pennsylvania Attorney General Josh Shapiro Warn Against Zoom-Bombing and Hacking Teleconferences During Coronavirus PandemicRead the Press Release
PITTSBURGH - Scott W. Brady, United States Attorney for the Western District of Pennsylvania, and Pennsylvania Attorney General Josh Shapiro today warned against hacking teleconferences during the coronavirus pandemic. The Western Pennsylvania COVID-19 Task Force will investigate, disrupt and prosecute such hacking.
Many Pennsylvania residents have turned to video-teleconferencing platforms, such as Zoom, to stay connected during the COVID-19 pandemic. Unfortunately, as the FBI has reported, there has been a rise in so-called "Zoom-bombing," or video hacking across the United States, where uninvited hackers disrupt conferences and online classrooms with pornographic images, hate images and/or threatening language. These attacks have also targeted religious communities, minority groups, and vulnerable populations, such as Alcoholics Anonymous meetings. Some hackers have planned coordinated attacks through websites and social media, including Discord and Instagram, in violation of the terms of use. Pennsylvanians have seen several instances of such hacking within the past week.
Western Pennsylvania’s chief federal, state, and local law enforcement officials are joining together to warn that anyone who hacks into a teleconference can be charged with state or federal crimes. Charges may include: disrupting a public meeting, computer intrusion, using a computer to commit a crime, hate crimes, fraud, or transmitting threatening communications. When hackers work together on coordinated attacks, they can also be charged with conspiracy. All of these charges are punishable by fines and imprisonment.
U.S. Attorney Brady said, "Hackers are disrupting business and community meetings for sport and targeting specific groups, including addiction recovery meetings, in order to mock, harass and interfere with treatment. This is another low point in this crisis. We are better than this. DOJ will use all of our resources to find, expose and prosecute these low-lifes."
"At a time when people need internet conferencing technology to do essential business or to connect with loved ones, it’s vital that we make these platforms safe from hackers," Attorney General Josh Shapiro said. "People need confidence in the services they are relying upon during this emergency. Through my Office’s partnership with the Western Pennsylvania COVID-19 Fraud Task Force, we will be able to investigate and prosecute hackers."
"The COVID-19 pandemic has led to a spike in businesses and employees teleworking to communicate and share information over the internet," said Acting FBI Pittsburgh Special Agent in Charge Eugene Kowel. "Cyber criminals see this as an easy way to take advantage of vulnerable members of our community and to exploit telework software vulnerabilities to obtain sensitive information. The FBI encourages users to safeguard their user information and prevent these malicious cyber actors from eavesdropping or stealing sensitive information. We ask anyone with information about criminal activities, especially those exploiting the disruptions caused by the Coronavirus, to contact us."
"Over the course of the next several weeks, the United States Secret Service’s primary investigative priorities will be to mitigate any efforts by criminals that target citizens for cyber-enabled crimes and identity theft as it relates to COVID-19 scams," said Tim Burke, Special Agent in Charge, United States Secret Service Pittsburgh Field Office. "In doing so, we at the Secret Service are grateful to be joining our fellow law enforcement partners on the COVID-19 Fraud Task Force. Together, the COVID-19 Task Force will enable us to focus our resources to uncover, investigate, and prevent these crimes more effectively in a unified front."
"Every community and their leadership are appreciative of the efforts that all of the Federal agencies are putting forth in addressing the issues of Zoom-bombing," added Bruce A. Fromlak, West View Borough Chief of Police and President of the Western Pennsylvania Chiefs of Police Association. "As we conduct business each and every day we are presented with new challenges. This is clearly a new challenge however this too will be dealt with in cooperation with all of our law enforcement partners and professional law enforcement organizations. We will approach and address all malicious attacks in an expeditious and professional manner in order to bring any and all unscrupulous individuals to justice."
As individuals continue the transition to online lessons and meetings, law enforcement recommends exercising due diligence and caution in your cybersecurity efforts. The following steps can be taken to mitigate teleconferencing threats:
• Do not make the meeting or classroom public. In Zoom, there are two options to make a meeting private: require a meeting password or use the waiting room feature and control which guests are admitted.
• Do not share a link to a teleconference or classroom on an unrestricted publicly available social media post. Provide the link directly to specific people.
• Manage screen sharing options. In Zoom, change screen sharing to "Host Only."
• Ensure users are using the updated version of remote access/meeting applications. In January 2020, Zoom updated their software. In their security update, the teleconference software provider added passwords by default for meetings and disabled the ability to randomly scan for meetings to join.
• Understand the features of your specific teleconference platform, including how to close a conference call in the middle and how to kick out people who are disrupting. Zoom has posted these steps on their blog.
• Lastly, ensure that your organization’s telework policy or guide addresses requirements for physical and information security.
If you were a victim of a teleconference hijacking, or any cyber-crime for that matter, report it to the FBI’s Internet Crime Complaint Center at https://www.ic3.gov/default.aspx. Click here for more information regarding teleconference hijacking: https://www.ic3.gov/media/2020/200401.aspx.
Additionally, if you receive a specific threat during a teleconference, please report it to the FBI at https://tips.fbi.gov/ or call the FBI Pittsburgh Division at (412) 432-4000.
To contact Secret Service directly call (412) 281-7825.
If you believe you have been a target or victim of any COVID-19-related frauds, please report them the Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline: 1-888-C19-WDPA or 1-888-219-9372, or email the Task Force at [email protected] or the Pennsylvania Attorney General at [email protected].
U.S. Attorney DeVillers sends letter to hospital executives promoting partnership in thwarting hoarding, price-gouging of essential medical itemsRead the Press Release
Dear Hospital Executives:
As the United States Attorney for the Southern District of Ohio, I am the chief federal law enforcement officer in approximately half of Ohio’s counties. 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 coronavirus – 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 Attorneys (AUSA) Peter Glenn-Applegate and Brenda Shoemaker, to investigate and prosecute these crimes. If you have any information related to price-gouging and/or hoarding, I ask that you please contact AUSA Shoemaker at 614-255-1588. If you have information related to coronavirus fraud, I ask that you please contact AUSA Glenn-Applegate at 614-255-1604.
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 Ohio. 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.
With gratitute,
David M. DeVillers
United States Attorney
Top federal, state prosecutors form Georgia COVID-19 Fraud Task ForceRead the Press Release
SAVANNAH, Ga. – Georgia’s leading state and federal prosecutors are announcing a new Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising as a result of the pandemic.
The task force will enhance communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office serve on the task force.
“My office is honored to work with this task force in our state’s fight against the spread of COVID-19. As a team, we are committed to putting Georgians first to ensure their safety and well-being as we address this public health state of emergency,” said Gov. Brian P. Kemp.
“Our office has received hundreds of complaints regarding scams, price gouging and other issues related to the COVID19 pandemic, and we won’t tolerate those who are taking advantage of consumers and interfering with our frontline workers’ response to the crisis,” said Attorney General Chris Carr. “This partnership between the State of Georgia and our U.S. Attorneys will enable us to work together to investigate and, as appropriate, prosecute those who violate our laws. We will leave no stone unturned as we protect all Georgians.”
“Opportunistic criminals are targeting the most vulnerable among us with COVID-19 scams, but our office and law enforcement and prosecutorial partners remain vigilant,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We strive to detect, investigate and prosecute criminal conduct, and reassure our law-abiding citizens that their safety and security is our primary focus.”
“Thieves never stop searching for ways to take advantage of unsuspecting people,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “Citizens can rest assured that we will bring every asset to bear against fraudsters and those who use this crisis as an opportunity to commit fraud. Also, we encourage anyone who believes they are the victim of a scam, or may have been contacted by someone stating they represent a government agency, to contact this task force immediately.”
“To all would-be scammers: Anyone who uses this pandemic to defraud Georgians will be investigated and prosecuted to the fullest extent of the law,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “The creation of this unified task force better prepares us to investigate and prosecute criminal acts of fraud related to the COVID-19 pandemic. The law enforcement community is strong in our state. I want to thank our partners at the local, state and federal level dedicated to protecting our citizens from fraudsters.”
Within each task force member agency, an appointed fraud complaint coordinator will oversee the cases and remain in regular contact with partner law enforcement agencies. The appointed coordinators are: Jim Crane, Assistant U.S. Attorney, U.S. Attorney’s Office for the Middle District of Georgia; David Dove, Executive Counsel, Office of the Governor of Georgia; Anne Infinger, Deputy Attorney General, Consumer Protection Division, Office of the Attorney General of Georgia; Russell Phillips, Assistant U.S. Attorney, U.S. Attorney’s Office for the Northern District of Georgia; and Patrick Schwedler, Assistant U.S. Attorney, U.S. Attorney’s Office for the Southern District of Georgia.
The public is urged to be on the lookout for any of these COVID-19 scams, which can be reported to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]:
- Treatment scams: Scammers are selling fake vaccines, medicines and cures for COVID-19.
- Supply scams: Scammers are claiming they have in-demand products, like cleaning, household, health and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
- Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities.
- Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails or texts to trick the recipient into sharing their personal information like account numbers, Social Security numbers, or login IDs and passwords.
- App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information after it is downloaded.
- Provider scams: Scammers pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demand payment for that treatment.
- Investment scams: Scammers are promoting the stock of small companies, which have limited publicly available information, using false or misleading claims that the companies’ stock will increase dramatically due to the COVID-19 outbreak, such as claims that a company can prevent, detect or cure COVID-19.
The Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received more than 600 complaints of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can file complaints with the CPD by calling 800-869-1123 or https://consumer.georgia.gov/.
Top federal and state prosecutors form Georgia COVID-19 Fraud Task ForceRead the Press Release
ATLANTA - Georgia’s leading state and federal prosecutors announce a new Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic.
The task force will enhance communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. Task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office serve on the task force.
“My office is honored to work with this task force in our state’s fight against the spread of COVID-19. As a team, we are committed to putting Georgians first to ensure their safety and well-being as we address this public health state of emergency,” said Governor Brian P. Kemp.
“Thieves never stop searching for ways to take advantage of unsuspecting people,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “Citizens can rest assured that we will bring every asset to bear against fraudsters and those who use this crisis as an opportunity to commit fraud. Also, we encourage anyone who believes they are the victim of a scam, or may have been contacted by someone stating they represent a government agency, to contact this task force immediately.”
“Our office has received hundreds of complaints regarding scams, price gouging and other issues related to the COVID19 pandemic, and we won’t tolerate those who are taking advantage of consumers and interfering with our frontline workers’ response to the crisis,” said Attorney General Chris Carr. “This partnership between the State of Georgia and our U.S. Attorneys will enable us to work together to investigate and, as appropriate, prosecute those who violate our laws. We will leave no stone unturned as we protect all Georgians.”
“Opportunistic criminals are targeting the most vulnerable among us with COVID-19 scams, but our office and law enforcement and prosecutorial partners remain vigilant,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We continue to detect, investigate and prosecute criminal conduct, and reassure our law-abiding citizens that their safety and security is our primary focus.”
“To all would-be scammers: Anyone who uses this pandemic to defraud Georgians will be investigated and prosecuted to the fullest extent of the law,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “The creation of this unified task force better prepares us to investigate and prosecute criminal acts of fraud related to the COVID-19 pandemic. The law enforcement community is strong in our state. I want to thank our partners at the local, state and federal level dedicated to protecting our citizens from fraudsters.”
Within each task force member agency, an appointed fraud complaint coordinator will oversee the cases and remain in regular contact with partner law enforcement agencies. The appointed coordinators are: Russell Phillips, Assistant U.S. Attorney, U.S. Attorney’s Office for the Northern District of Georgia , Jim Crane, Assistant U.S. Attorney, U.S. Attorney’s Office for the Middle District of Georgia; David Dove, Executive Counsel, Office of the Governor of Georgia; Anne Infinger, Deputy Attorney General, Consumer Protection Division, Office of the Attorney General of Georgia; and Patrick Schwedler, Assistant U.S. Attorney, U.S. Attorney’s Office for the Southern District of Georgia.
The public is urged to be on the lookout for any of these COVID-19 scams, which can be reported to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]:
- Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19.
- Supply scams: Scammers are claiming they have in-demand products, like cleaning and household supplies, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
- Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities.
- Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails and texts to trick the recipient into sharing personal information like account numbers, Social Security numbers, and login IDs and passwords.
- App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information.
- Provider scams: Scammers pretending to be doctors and hospitals demand payment for COVID-19 treatment allegedly provided to a friend or family member of the victim.
- Investment scams: To promote the sale of stock in certain companies—particularly small companies, about which there is little publicly available information—scammers are making false and misleading claims that those companies can prevent, detect or cure COVID-19.
The Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received more than 600 complaints of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can file complaints with the CPD by calling 800-869-1123 (toll-free) or at www.consumer.ga.gov.
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.
Top Federal, State Prosecutors Form Georgia COVID-19 Fraud Task ForceRead the Press Release
MACON, Ga. – Georgia’s leading state and federal prosecutors announce a new Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic.
The task force will serve to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia and the Executive Counsel for the Governor’s Office serve on the task force.
“To all would-be scammers: Anyone who uses this pandemic to defraud Georgians will be investigated and prosecuted to the fullest extent of the law,” said Charlie Peeler, U.S. Attorney for the Middle District of Georgia. “The creation of this unified task force better prepares us to investigate and prosecute criminal acts of fraud related to the COVID-19 pandemic. The law enforcement community is strong in our state. I want to thank our partners at the local, state and federal level dedicated to protecting our citizens from fraudsters.”
“My office is honored to work with this task force in our state’s fight against the spread of COVID-19. As a team, we are committed to putting Georgians first to ensure their safety and well-being as we address this public health state of emergency,” said Governor Brian P. Kemp.
“Our office has received hundreds of complaints regarding scams, price gouging and other issues related to the COVID19 pandemic, and we won’t tolerate those who are taking advantage of consumers and interfering with our frontline workers’ response to the crisis,” said Attorney General Chris Carr. “This partnership between the State of Georgia and our U.S. Attorneys will enable us to work together to investigate and, as appropriate, prosecute those who violate our laws. We will leave no stone unturned as we protect all Georgians.”
“Opportunistic criminals are targeting the most vulnerable among us with COVID-19 scams, but our office and law enforcement and prosecutorial partners remain vigilant,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “We continue to detect, investigate and prosecute criminal conduct, and reassure our law-abiding citizens that their safety and security is our primary focus.”
“Thieves never stop searching for ways to take advantage of unsuspecting people,” said Byung J. “BJay” Pak, U.S. Attorney for the Northern District of Georgia. “Citizens can rest assured that we will bring every asset to bear against fraudsters and those who use this crisis as an opportunity to commit fraud. Also, we encourage anyone who believes they are the victim of a scam, or may have been contacted by someone stating they represent a government agency to contact this task force immediately.”
Within each task force member agency, an appointed fraud complaint coordinator will oversee the cases and remain in regular contact with partner law enforcement agencies. The appointed coordinators are as follows: Jim Crane, Assistant U.S. Attorney, U.S. Attorney’s Office for the Middle District of Georgia; David Dove, Executive Counsel, Office of the Governor of Georgia; Anne Infinger, Deputy Attorney General, Consumer Protection Division, Office of the Attorney General of Georgia; Russell Phillips, Assistant U.S. Attorney, U.S. Attorney’s Office for the Northern District of Georgia; and Patrick Schwedler, Assistant U.S. Attorney, U.S. Attorney’s Office for the Southern District of Georgia.
The public is urged to be on the lookout for any of these COVID-19 scams, which can be reported to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]:
- Treatment scams: Scammers are selling fake vaccines, medicines, and cures for COVID-19.
- Supply scams: Scammers are claiming they have in-demand products, like cleaning and household supplies, and medical supplies, but when an order is placed, the scammer takes the money and never delivers the order.
- Charity scams: Scammers are fraudulently soliciting donations for non-existent charities to help people affected by the COVID-19 crisis. Scammers often use names that are similar to the names of real charities.
- Phishing scams: Scammers, posing as national and global health authorities, such as the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending fake emails and texts to trick the recipient into sharing personal information like account numbers, Social Security numbers, and login IDs and passwords.
- App scams: Scammers are creating COVID-19 related apps that contain malware designed to steal the user’s personal information.
- Provider scams: Scammers pretending to be doctors and hospitals demand payment for COVID-19 treatment allegedly provided to a friend or family member of the victim.
- Investment scams: To promote the sale of stock in certain companies—particularly small companies, about which there is little publicly available information—scammers are making false and misleading claims that those companies can prevent, detect or cure COVID-19.
The Consumer Protection Division (CPD) of the Office of the Attorney General of Georgia has received more than 600 complaints of price gouging or scams related to COVID-19, the majority regarding food, toilet paper, water and hand sanitizer. The public can file complaints with the CPD by calling 1-800-869-1123 (toll-free) or at consumer.ga.gov.
Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Pooler pharmacy, pharmacist to pay up to $2.2 million for dispensing illegitimate prescriptionsRead the Press Release
SAVANNAH, GA: A Savannah-area pharmacy and its pharmacist have agreed to settle federal claims that they unlawfully dispensed controlled substances pursuant to prescriptions by a notorious pill-mill doctor.
Under the settlement, Greeson Rx, LLC and Joshua Z. Greeson, of Brooklet, Ga., will pay up to $2.22 million in civil penalties, said U.S. Attorney Bobby L. Christine. Greeson Rx, LLC operates Pooler Pharmacy in Pooler, Ga.
“Our office continues to relentlessly pursue those who illegally and inappropriately prescribe and dispense addictive drugs in the midst of an opioid addiction and overdose crisis,” said U.S. Attorney Christine. “These actions vividly illustrate that hefty penalties are the cost for these violations in the Southern District.”
This settlement is the latest in a series of actions taken by the U.S. Attorney’s Office to combat the ongoing opioid crisis, including the prosecution of Dr. Frank Bynes, Jr., who was sentenced in February 2020 to serve 240 months in federal prison following his conviction at trial on 13 counts of Illegal Dispensation of Controlled Substances and three counts of Health Care Fraud. The United States also recently announced a judgment against Darien Pharmacy, of Darien, Ga., and settlements with Chip’s Discount Drugs, of Hazlehurst, Ga., and Gordon’s Pharmacy, of Bloomingdale, Ga., as well as with pharmacists at each of those three pharmacies.
The judgment and settlements against those pharmacies and pharmacists, together with the settlement with Greeson Rx, LLC and Joshua Z. Greeson, call for payments that could exceed a combined $7 million. The United States also previously announced the prosecutions of Ray Dixon, who was the pharmacist at Fulghum Drugs in Baxley, Ga., and Janice Colter, who was the pharmacist at Darien Pharmacy in Darien, Ga. Both Dixon and Colter have pled guilty to felony charges and await sentencing.
According to court filings involved with Darien Pharmacy and Chip’s Discount Drugs, those pharmacies were alleged to have dispensed hundreds of thousands of units of controlled substances prescribed by Bynes over the course of several years, despite obvious evidence Bynes was operating a pill mill.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), said “The mission of DEA’s Office of Diversion Control is to prevent, detect and investigate the diversion of controlled pharmaceutical and listed chemicals from legitimate sources. In this case, DEA Diversion investigators did an outstanding job of uncovering this pharmacist’s and this pharmacy’s complicit actions to improperly dispense opioids and other controlled substances, which ultimately led to this monetary settlement. DEA will continue to work hand in hand with its law enforcement partners and the U.S. Attorney’s Office to make sure healthcare providers are abiding by mandatory regulations.”
Any individuals who have information about illegal prescribing by physicians, dispensing by pharmacies, or other diversion, and any individuals who believe they were victims of Bynes, should call the U.S. Attorney’s Office at (912) 652-4422 and ask for the Opioid Coordinator.
Dispensing drugs in violation of the Controlled Substances Act carries a civil penalty of up to $64,820 per violation. Claims resolved by civil settlements are allegations only; there has been no determination of liability. Investigations continue as to others arising out of these announced actions.
Joshua Z. Greeson and Greeson Rx, LLC were investigated by the DEA, and Assistant U.S. Attorneys Jonathan A. Porter and Bradford C. Patrick represented the United States.
Pentax Medical Company Agrees to Pay $43 Million to Resolve Criminal Investigation Concerning Misbranded EndoscopesRead the Press Release
NEWARK, N.J. – Pentax Medical Company will pay $43 million to resolve criminal charges based on the company’s shipment of four types of endoscopes for 18 months without FDA-cleared instructions for use and the company’s failure to file timely reports of two infections associated with its endoscopes, the Department of Justice announced today.
Pentax was charged in a criminal complaint filed today in Newark federal court with distributing misbranded medical devices in interstate commerce in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). Pentax has entered into a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction if it complies with the reform and enhanced compliance requirements outlined in the agreement. As a result of the conduct outlined in the criminal complaint, Pentax has agreed to pay a $40 million criminal fine and to forfeit $3 million.
“Pentax made a decision to ignore the cleared instructions for use of its endoscopes, believing that doing so would increase its sales putting profits over patient safety,” U.S. Attorney Carpenito said. “In doing so, and by failing to report to the FDA certain adverse events relating to those endoscopes, it broke the law, jeopardized the health of patients, and, ultimately, cost itself $43 million on fines and forfeiture.”
“In carrying out its responsibilities to protect the health and safety of patients treated with medical devices, the FDA relies on manufacturers to provide health care professionals with the correct, approved or cleared instructions for safe use of the devices, and to report promptly to the FDA potential product safety issues,” Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division said. “Pentax’s failure to follow important safety requirements is serious and warrants the significant penalties imposed as part of this resolution.”
“Americans expect and deserve that the medical devices used on them are safe, effective, and properly labeled with accurate information. When companies subvert FDA’s standards and requirements, they place unsuspecting patients at risk,” Catherine A. Hermsen, Assistant Commissioner for Criminal Investigations, FDA Office of Criminal Investigations, said. “FDA will continue to investigate and help bring to justice companies that jeopardize the public health by distributing misbranded products.”
The criminal complaint against Pentax, which Pentax agrees is true, charges that Pentax made a deliberate business decision not to use revised FDA-cleared instructions for cleaning its endoscopes because Pentax feared the new instructions would cause it to lose business. Endoscopes are reusable devices that must be cleaned after each use or else infectious material may remain and be transmitted to subsequent patients. In 2014, the FDA told Pentax to revise its existing cleaning instructions for four types of endoscopes and add cleaning steps. Pentax agreed, and FDA cleared, revised cleaning instructions in April 2014. Pentax was then required to include these revised cleaning instructions when it shipped those four endoscopes.
Instead, for the next 18 months, Pentax shipped the four types of endoscopes with the old instructions for use and not the newly enhanced, FDA-cleared cleaning instructions. Pentax decided not to use the enhanced cleaning instructions because they required customers to spend more time cleaning the endoscopes. One internal email warned that the increase of cleaning time from five minutes to 25 minutes would be “catastrophic,” and another predicted that customers “will be very upset and could switch away from PENTAX because of the extra time, manpower, and cost to perform the new protocol.”
Pentax continued shipping the four types of endoscopes without the FDA-cleared cleaning instructions until September 2015. At that time, Pentax started including FDA-cleared instructions for two of the endoscopes and included newly validated cleaning instructions for the other two types of endoscopes. Pentax made $18 million in gross profits from selling the four types endoscopes during this 18-month period.
Pentax was also charged with and admitted failing to file timely reports of two infection incidents associated with its endoscope. To enable FDA and others to identify and monitor adverse events, the FDCA requires medical device manufacturers to file adverse event reports – known as Medical Device Reports (MDRs) – within 30 days of becoming aware of information that reasonably suggests that the manufacturer’s device may have caused or contributed to a death or serious injury.
In June 2013, Pentax learned that four patients at Advocate Lutheran General Hospital in Chicago were infected with drug-resistant bacteria after being treated with the same Pentax endoscope. Pentax failed to file MDRs within 30 days because its employees did not understand the reporting requirements. Pentax filed an MDR about the Advocate Lutheran infections in late September 2013.
In late June 2014, Pentax learned that four patients at Massachusetts General Hospital in Boston were infected with Escherichia coli bacteria after being treated with the same Pentax endoscope. Pentax also failed to file MDRs about this incident within 30 days because its employees misunderstood the reporting requirements. Pentax filed an MDR about the infections at Massachusetts General Hospital in December 2014.
As part of the DPA, Pentax has agreed to, among other things, conduct a thorough audit of its current instructions for use for endoscopic devices and MDR procedures to determine their compliance with FDA requirements and report to the FDA in writing. It has agreed to enhance its compliance training and maintain an effective compliance program. Pentax’s president and the president of the Lifecare Division of Pentax’s parent Hoya Corporation must annually certify that Pentax took the compliance measures required by the DPA, and Hoya’s board of directors must certify annually that Pentax’s compliance program is effective.
The investigation was conducted by special agents from the FDA’s Office of Criminal Investigations, under the direction of Special Agent in Charge Jeffrey J. Ebersole of the New York Field Office, along with special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office for the District of New Jersey; and Senior Litigation Counsel Patrick Jasperse of the Civil Division’s Consumer Protection Branch, with the assistance of Senior Counsel Shannon M. Singleton of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Pentax Medical Company Agrees to Pay $43 Million to Resolve Criminal Investigation Concerning Misbranded EndoscopesRead the Press Release
Pentax Medical Company will pay $43 million to resolve criminal charges based on the company’s shipment of four types of endoscopes for 18 months without FDA-cleared instructions for use and the company’s failure to file timely reports of two infections associated with its endoscopes, the Department of Justice announced today.
Pentax was charged in a criminal complaint filed today in Newark federal court with distributing misbranded medical devices in interstate commerce in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). Pentax has entered into a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction if it complies with the reform and enhanced compliance requirements outlined in the agreement. As a result of the conduct outlined in the criminal complaint, Pentax has agreed to pay a $40 million criminal fine and to forfeit $3 million.
“In carrying out its responsibilities to protect the health and safety of patients treated with medical devices, the FDA relies on manufacturers to provide health care professionals with the correct, approved or cleared instructions for safe use of the devices, and to report promptly to the FDA potential product safety issues,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Pentax’s failure to follow important safety requirements is serious and warrants the significant penalties imposed as part of this resolution.”
“Pentax made a decision to ignore the cleared instructions for use of its endoscopes, believing that doing so would increase its sales, putting profits over patient safety,” said U.S. Attorney Craig Carpenito for the District of New Jersey. “In doing so, and by failing to report to the FDA certain adverse events relating to those endoscopes, it broke the law, jeopardized the health of patients, and, ultimately, cost itself $43 million on fines and forfeiture.”
The criminal complaint against Pentax, which Pentax agrees is true, charges that Pentax made a deliberate business decision not to use revised FDA-cleared instructions for cleaning its endoscopes because Pentax feared the new instructions would cause it to lose business. Endoscopes are reusable devices that must be cleaned after each use or else infectious material may remain and be transmitted to subsequent patients. In 2014, the FDA told Pentax to revise its existing cleaning instructions for four types of endoscopes and add cleaning steps. Pentax agreed, and FDA cleared, revised cleaning instructions in April 2014. Pentax was then required to include these revised cleaning instructions when it shipped those four endoscopes.
Instead, for the next 18 months, Pentax shipped the four types of endoscopes with the old instructions for use – not the newly enhanced, FDA-cleared cleaning instructions. Pentax decided not to use the enhanced cleaning instructions because they required customers to spend more time cleaning the endoscopes. One internal email warned that the increase of cleaning time from five minutes to 25 minutes would be “catastrophic,” and another predicted that customers “will be very upset and could switch away from PENTAX because of the extra time, manpower, and cost to perform the new protocol.”
Pentax continued shipping the four types of endoscopes without the FDA-cleared cleaning instructions until September 2015. At that time, Pentax started including FDA-cleared instructions for two of the endoscopes and newly validated cleaning instructions for the other two types of endoscopes. Pentax made $18 million in gross profits from selling the four types endoscopes during this 18-month period.
Pentax was also charged with and admitted failing to file timely reports of two infection incidents associated with its endoscope. To enable FDA and others to identify and monitor adverse events, the FDCA requires medical device manufacturers to file adverse event reports – known as Medical Device Reports (MDRs) – within 30 days of becoming aware of information that reasonably suggests that the manufacturer’s device may have caused or contributed to a death or serious injury.
In June 2013, Pentax learned that four patients at Advocate Lutheran General Hospital in Chicago were infected with drug-resistant bacteria after being treated with the same Pentax endoscope. Pentax failed to file MDRs within 30 days because its employees did not understand the reporting requirements. Pentax filed an MDR about the Advocate Lutheran infections in late September 2013.
In late June 2014, Pentax learned that four patients at Massachusetts General Hospital in Boston were infected with Escherichia coli bacteria after being treated with the same Pentax endoscope. Pentax also failed to file MDRs about this incident within 30 days because its employees misunderstood the reporting requirements. Pentax filed an MDR about the infections at Massachusetts General Hospital in December 2014.
“Americans expect and deserve that the medical devices used on them are safe, effective, and properly labeled with accurate information. When companies subvert FDA’s standards and requirements, they place unsuspecting patients at risk,” said Catherine A. Hermsen, Assistant Commissioner for Criminal Investigations, FDA Office of Criminal Investigations. “FDA will continue to investigate and help bring to justice companies that jeopardize the public health by distributing misbranded products.”
As part of the DPA, Pentax has agreed to, among other actions, conduct a thorough audit of its current instructions for use for endoscopic devices and MDR procedures to determine their compliance with FDA requirements and report to the FDA in writing. It has agreed to enhance its compliance training and maintain an effective compliance program. Pentax’s president and the president of the Lifecare Division of Pentax’s parent, Hoya Corporation, must annually certify that Pentax took the compliance measures required by the DPA, and Hoya’s board of directors must certify annually that Pentax’s compliance program is effective.
The investigation was conducted by special agents from the FDA’s Office of Criminal Investigations, under the direction of Special Agent in Charge Jeffrey J. Ebersole of the New York Field Office, along with special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office for the District of New Jersey and Senior Litigation Counsel Patrick Jasperse of the Civil Division’s Consumer Protection Branch, with the assistance of Senior Counsel Shannon M. Singleton of the FDA’s Office of Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao-nj.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man from Mexico pleads guilty to marijuana smuggling charges in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Franz Thiessen Enns, 56, of Chihuahua, Mexico, pleaded guilty on April 2 in federal court in Las Cruces, New Mexico to importing and possessing marijuana with intent to distribute.
According to his plea agreement and other public court documents, Enns tried to enter the United States from Mexico on January 22 with a load of marijuana hidden in his car. When questioned at the port of entry in Santa Teresa, New Mexico, Enns stated that he was traveling to El Paso, Texas, to go “shopping”. He acknowledged having two bottles of alcohol to declare, but did not mention any other property although he knew he had marijuana in his vehicle. U.S Customs and Border Protection agents later inspected his car and found approximately 57.4 kilograms of marijuana in the gas tank.
Enns is currently in custody awaiting sentencing. He faces up to 20 years in federal prison under the terms of his plea agreement.
Homeland Security Investigations and U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorney Clara N. Cobos is prosecuting the case.
Man and Woman Charged with Armed Robbery of Drive-Through Restaurants in Miami GardensRead the Press Release
Miami, Florida – Two South Florida residents appeared in federal court today on charges of using an assault firearm to rob money from drive-through cashiers at a Miami Gardens Burger King and a Miami Gardens Wendy’s.
According to the criminal complaint affidavit, on March 31, 2020, at about 10:40 am, Amos Roberts, 34, and Tyra Nance, 21, placed an order at a drive-through speaker at a Miami Gardens Burger King restaurant. The affidavit alleges that Nance drove the car while Roberts, who wore a black hoodie sweatshirt and black skull cap, sat in the backseat. Once the car was at the drive-through window and the cash register was open, Roberts allegedly pushed the cashier out of the way with a large assault-style firearm and took money from the cash tray. Roberts and Nance allegedly drove off with the money.
The criminal complaint affidavit also alleges that Roberts and Nance repeated the crime later that day, this time at a Miami Gardens Wendy’s restaurant. With Nance allegedly at the wheel, they placed an order at the drive-through speaker, then drove up to the payment window. Once the cash register was open, Roberts allegedly exited the back of the car carrying a rifle, which he pointed at the drive-through cashier. The cashier ran away from the register and Roberts allegedly grabbed money from the cash tray.
Officers investigated and located Roberts and Nance. They pulled the defendants over as they were driving a car that matched the one involved in the robberies. Officers found a black hoodie, black skull cap, and an AR15 style semi-automatic firearm inside the car. They arrested Roberts and Nance. The criminal complaint charges them with robbery and firearm offenses.
Roberts and Nance had their initial appearances and detention hearings today. They will be detained without bond pending trial.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Alfredo Ramirez III, Director, Miami-Dade Police Department (MDPD) made the announcement.
U.S. Attorney Fajardo Orshan commended the FBI, MDPD, and Miami Gardens Police Department for their investigative efforts and the Miami-Dade State Attorney’s Office for its assistance. U.S. Attorney Cary O. Aronovitz is prosecuting this case.
During the current COVID-19 health crisis, the United States Attorney’s Office and its federal, state, and local law enforcement partners continue investigating and prosecuting all forms of crime in South Florida.
This case involved the U.S. Attorney’s Office Violence Reduction Partnership (VRP) initiative. Through the VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Justice Department Settles Immigration-Related Retaliation Claim Against Minnesota CompanyRead the Press Release
WASHINGTON – The Department of Justice today announced that it has reached a settlement agreement with Taiyo International Inc. (Taiyo), a wholly-owned subsidiary of Japan-based Taiyo Kagaku that develops, produces, and sells various food and pharmaceutical ingredients. The settlement resolves a claim that Taiyo retaliated against an applicant in violation of the antidiscrimination provision of the Immigration and Nationality Act (INA).
“Employees and applicants must be able to raise concerns about discrimination without being subjected to retaliation that may deter them and others from asserting their rights,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We appreciate Taiyo’s cooperation and are pleased that Taiyo has agreed to offer back pay to the affected U.S. citizen and take measures to ensure compliance with the law.”
Based on its investigation, the Department concluded that Taiyo rescinded a job offer it extended to a naturalized U.S. citizen in retaliation for her complaints of discrimination. The Department determined that, during the applicant’s three interviews, Taiyo employees repeatedly asked the applicant improper questions related to her national origin, citizenship status, the timing of her naturalization, and her valid work authorization documents. After Taiyo offered her the job, the applicant sent an email to the interviewers complaining that the treatment she received was discriminatory, and Taiyo immediately rescinded the job offer.
The INA’s antidiscrimination provision prohibits employers from discriminating in hiring against employees because of their national origin, citizenship status, or immigration status. The statute also prohibits employers from retaliating against workers because they opposed unlawful employer conduct or conduct that they reasonably believe was unlawful discrimination.
Under the terms of the settlement agreement, Taiyo will pay a civil penalty for the violation, offer back pay plus interest totaling $10,400.00 to the worker, post notices informing workers of their rights under the INA’s antidiscrimination provision, train its staff, and be subject to departmental monitoring for three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination against individuals who are authorized to work based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
Employers can find information on how to avoid unlawful discrimination based on citizenship status or national origin here. Workers can find information about their rights under the antidiscrimination provision of the INA here. For more information about protections against employment discrimination under the INA, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Federal, State, Local Law Enforcement Discuss Strategies to Combat Covid-19 FraudRead the Press Release
PROVIDENCE –Local and state police departments from across Rhode Island and federal law enforcement agencies today participated in a teleconference hosted by the United States Attorney’s Office, the FBI, and the United States Postal Inspection Service to discuss strategies to identify and combat COVID-19 fraud.
The FBI, U.S. Postal Inspection Service, and other federal law enforcement agencies report a steady increase in the number and kinds of fraudulent schemes related to COVID-19 being perpetrated. As people become more isolated, particularly the elderly, they become more susceptible to falling victim to these fraudulent schemes.
The FBI reports that in recent weeks, cyber actors have engaged in phishing campaigns against first responders, deployed ransomware at medical facilities, and created fake COVID-19 websites that quietly download malware to victim devices. Based on recent trends, the FBI assesses these same groups will target businesses and individuals working from home via telework software vulnerabilities, education technology platforms, and new Business Email Compromise schemes.
“Fraud related to COVID-19 is particularly disturbing as it exploits a national crisis that threatens the health and safety of every American for personal gain,” said United States Attorney Aaron L. Weisman. “Attorney General William Barr has directed all U.S. Attorneys to prioritize the investigation and prosecution of crimes related to coronavirus. Working with local, state, and federal law enforcement across the state we are committed to doing just that. There will be no second chances for COVID-19 fraudsters.”
“With the outbreak of COVID-19, scammers are using people’s fears, isolation, and thirst for information to their advantage. They’re targeting anyone they deem as vulnerable to try and steal their money, their personal information, or both,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We want you to help us stop these fraudsters by reporting suspicious activity, fraud and attempted fraud to www.ic3.gov We also want you to avoid falling prey to these scams. So please don’t click on links within emails from senders you don’t recognize, always independently verify information originates from a legitimate source, never supply your login credentials or financial data in response to an email or phone call, and visit websites by inputting their domains manually. By working together, we can help stop this type of activity.”
"The United States Postal Inspection Service wants to emphasize how important it is to stay connected with our loved ones during these trying times. The United States Postal Service continues to deliver to every door, every day. It is sometimes the only means of communication available to our many, particularly our elder population,” said Sean M. Boyce, Team Leader of the Providence U.S. Postal Inspection Service field office. “Under the right conditions, anyone could fall victim to a scam, but scammers are especially successful at targeting people with certain risk factors, like social isolation, loneliness, limited mobility, and cognitive aging. Scammers are also attracted by the pensions and life savings of retirees. But there are many ways to help older Americans protect the nest eggs they’ve worked so hard to secure – by staying connected with them and staying alert. For everything this generation has done to protect our freedoms and defend this country, we owe it to them to protect and defend them from these scams during this difficult time."
In addition to investigating and arresting fraudsters, law enforcement across Rhode Island are committed to providing important information to help keep individuals from falling victim to fraudsters and scammers. To support that effort, the United States Attorney’s Office has created a web page with information on how to avoid becoming a victim and how to report cases of suspected fraud. The information is available at www.justice.gov/ri
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Federal Inmate Sentenced to More Than Additional Year in Prison for Indecent Exposure to Prison StaffRead the Press Release
OKLAHOMA CITY – Carlos Deontea Brummitt, 29, of Washington D.C., has been sentenced to serve 12 months and one day in federal prison for indecent exposure, announced U.S. Attorney Timothy J. Downing.
"Federal Bureau of Prisons correctional staff deserve the ability to perform their duties without concern of sexually offensive and criminal behavior by inmates," said U.S. Attorney Downing. "Today’s sentence demonstrates that when such conduct occurs, we will zealously prosecute inmates for this disruptive behavior."
Brummitt was indicted in July 2019 for three counts of Indecent Exposure—all occurring while he was an inmate at the Federal Transfer Center (FTC) in Oklahoma City—and alleging he lewdly exposed his genitals by masturbating in the presence of three separate FTC employees.
On January 17, 2020, pursuant to a plea agreement, Brummitt pled guilty to one count of indecent exposure. Yesterday, U.S. District Judge Charles Goodwin sentenced Brummitt to serve 12 months and one day in prison followed by one year of supervised release. This sentence is in addition to the federal sentence Brummitt was serving when he committed the indecent exposure offense.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Ashley L. Altshuler prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
El Departamento de Justicia Resuelve una Demanda Relacionada con la Inmigración contra una Empresa de MinnesotaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Taiyo International Inc. (Taiyo), una filial íntegramente propiedad de Taiyo Kagaku, cuya sede está en Japón, que desarrolla, produce y vende distintos ingredientes farmacéuticos y de alimentos. El acuerdo resuelve una afirmación que Taiyo tomó represalias contra una aspirante, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
«Los empleados y aspirantes deben tener la posibilidad de vocalizar sus preocupaciones acerca de la discriminación sin ser sujetos a represalias que podrían disuadirlos a ellos y a otros de hacer valer sus derechos», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Valoramos la cooperación de Taiyo y nos complace ver que Taiyo ha acordado ofrecer pagos retroactivos a la ciudadana estadounidense afectada y tomar medidas para asegurar el cumplimiento con la ley».
Con base en su investigación, el Departamento concluyó que Taiyo había rescindido una oferta de trabajo que había extendido a una ciudadana estadounidense naturalizada como represalia por sus denuncias de discriminación. El Departamento determinó que, durante las tres entrevistas de la aspirante, los empleados de Taiyo le hicieron preguntas impropias en repetidas ocasiones acerca de su nacionalidad de origen, estatus de ciudadanía, cuándo se naturalizó y sus documentos válidos de autorización para trabajar. Después de que Taiyo le ofreció el trabajo, la aspirante envió un correo electrónico a los entrevistadores quejándose que el trato que había recibido fue discriminatorio y Taiyo inmediatamente rescindió la oferta de trabajo.
La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen a empleados durante el proceso de contratación por motivos de su nacionalidad de origen, estatus de ciudadanía o estatus migratorio. Asimismo, la ley prohíbe que los empleadores tomen represalias contra trabajadores porque estos se hayan opuesto a una conducta ilícita por parte del empleador o a cualquier otra conducta que ellos crean que constituye discriminación ilícita.
Conforme a los términos del acuerdo conciliatorio, Taiyo pagará una sanción civil por la infracción, ofrecerá pagos retroactivos más intereses que se ascienden a un total de 10.400,00 $ a la trabajadora, publicará notificación para informar a los trabajadores de sus derechos en virtud de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a la supervisión del departamento durante tres años.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe que se discrimine a individuos que cuentan con la debida autorización para trabajar con base en su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Los empleadores encontrarán más información sobre cómo evitar la discriminación ilícita por motivos de estatus de ciudadanía o nacionalidad de origen aquí. Los trabajadores encontrarán más información acerca de sus derechos en virtud de la disposición antidiscriminatoria de la INA aquí. Para más información sobre las protecciones que ofrece la INA contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico [email protected]; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the Department of Justice is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local, and tribal governments to apply immediately for these critical funds. The Department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“In light of this pandemic, these are especially dangerous times for our law enforcement partners,” said U.S. Attorney McCoy. “This funding program will allow our state and local partners access to critical funds as they continue the mission of protecting the people of South Carolina.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs, and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to January 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
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U.S. Attorney McCoy is currently discussing the U.S. Attorney’s Office’s efforts to combat Coronavirus-related frauds and schemes with media members. To schedule an interview with U.S. Attorney McCoy, please call AUSA Derek A. Shoemake at 843-813-0982 or email him at [email protected].
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.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
$4.4 Million Available to West Virginia
CHARLESTON, W.Va. – The Department of Justice announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding (CESF) program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“Public safety agencies are facing unprecedented challenges as a result of the COVID-19 pandemic,” said United States Attorney Mike Stuart. “No amount of telework can protect the public and ensure safety from those that create chaos and crisis even at a time of chaos and crisis. Just like they do every day of the week and through every crisis, law enforcement selflessly continues their work on the front lines to protect the citizens of West Virginia. The funding provided through the CESF program will ensure our dedicated first responders have the critical resources needed to carry out their mission.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
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.
Follow us on Twitter: SDWVNews and USAttyStuart
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Dayton Jones Charged by U.S. Attorney with Production of Child PornRead the Press Release
PACUCAH, Ky. – United States Attorney Russell Coleman is today announcing the arrest of Dayton Jones, 24, of Hopkinsville, Kentucky. Jones has been charged via a federal Criminal Complaint with one count of producing child sex abuse material, that is, child pornography.
“This prosecution is about one thing and one thing only, Mr. Jones’ conduct in harming someone’s child in the Western District of Kentucky in violation of federal law,” said U.S. Attorney Russell Coleman. “It serves as a reminder that despite these uncertain times, Kentucky families are well-served by some inspiring federal, state, and local law enforcement professionals that put themselves at risk to protect our kids.”
“FBI Louisville stands ready, alongside our federal, state, and local partners, to find and hold accountable criminals who seek to exploit one of our most vulnerable populations, our children,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “Even in these trying times, our investigators will work tirelessly to ensure the citizens of the Commonwealth of Kentucky are protected from those who seek to victimize them."
Jones is charged for conduct which occurred in October 2014. He created a video depicting child pornography. He created and shared the video with others, using the social media application Snapchat. Jones previously pled guilty to state charges involving sodomy, wanton endangerment, and distribution of material depicting the sexual performance of a minor, in Christian Circuit Court Case Number 14-CR-588.
Jones faces a mandatory minimum 15-year sentence in federal prison. The maximum potential penalties are 30 years in prison, a $250,000.00 fine, and Supervised Release of five years up to and including life. There is no parole in the federal system.
Today’s charging is the direct result of career prosecutors at the U.S. Attorney’s Office working side-by-side with law enforcement officials investigating the case. The case was investigated by the Christian County Sheriff’s Office with assistance from the Federal Bureau of Investigation, Christian County Sheriff’s Office, Kentucky State Police, Kentucky Office of the Attorney General, and the United States Marshals Service, who all played critical roles in advancing the federal charges and securing Jones’ arrest.
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A Criminal Complaint is an accusation only and
the person is presumed innocent until and unless proven guilty.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
Cómo Evitar Fraudes Relacionados Al CoronavirusRead the Press Release
SAN JUAN, P.R. – El Fiscal Federal de los Estados Unidos para el Distrito de Puerto Rico W. Stephen Muldrow hoy les exhorta a todos los ciudadanos de Puerto Rico que estén en alerta a los criminales que se aprovechan del miedo y la incertidumbre que ocasiona la enfermedad de coronavirus (COVID-19) para robar dinero y obtener información personal.
Se incluye un boletín con la información necesaria para prevenir e identificar fraudes relacionados al coronavirus y otros tipos de fraudes que ocurren en situaciones similares. Para más información también puede acceder a https://www.justice.gov/coronavirus.
Para más información:
- https://www.justice.gov/disaster-fraud
- https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
- https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form
- https://www.justice.gov/coronavirus
Coronavirus is No Excuse for HateRead the Press Release
BOISE – On June 19, 1982, 27-year-old Vincent Chin, a Chinese-American man, was out with friends in Detroit, Michigan, when he encountered two white autoworkers. In the 1980s, the American auto industry faced growing troubles, including competition from Japanese auto manufacturers. Apparently assuming Chin was Japanese, the two autoworkers harassed him about Japan’s success in the auto industry. This led to a fight. After they were thrown out of the club, the fight continued in the parking lot. The two autoworkers then searched the neighborhood for Chin and his friends. Outside of a McDonald's, one of the autoworkers held Chin while the other repeatedly struck Chin in the head with a baseball bat. Four days later, on June 23, Chin died.
A state court plea bargain reduced the second-degree murder charges against the two killers to manslaughter. They were both sentenced to three years’ probation and ordered to pay a $3,000 fine. Two civil rights trials and a civil suit followed, but neither killer spent a day in jail.
Some 38 years later, Vincent Chin’s senseless death serves as a grim reminder of our country’s often forgotten history of discrimination and hate crimes committed against Asians, Asian-Americans and Pacific Islanders. As we confront the novel coronavirus, it has never been more important for us to remember this history. Unfortunately, I have received reports that hate crimes in this country against Asians, Asian-Americans and Pacific Islanders are on the rise. We will never tolerate this.
My office, like my Department of Justice colleagues and our federal, state, and local law enforcement and prosecution partners throughout the nation, is committed to fighting hate crimes like the one that took Vincent Chin’s life. Our Constitution and our laws guarantee freedom from discrimination based on race, color, religion and national origin. I learned these values from my dear parents, trusted family and friends, church, and by experience. I hold these principles dearly. My office stands ready to guard these principles by prosecuting those who violate them.
To this end, I ask each and every one of you to help us protect the principles and values codified in our laws and our great Constitution. You can do this by reporting hate crimes to law enforcement. If we ignore hate crimes, we erode the very fabric of our country’s dearest principles and values. The novel coronavirus threat, and our fight against it, is with the disease itself, not with another nation, race, color, ethnicity, religion, or national origin.
There were many tragedies in the Vincent Chin case. But the biggest tragedy was that Chin was murdered for no reason other than how he looked. As you go about your day, please take a moment to remember this tragedy, and other hate crimes like it. Report hate crimes to law enforcement.
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Attorney General Will Chair Committee to Review Foreign Participation in the U.S. Telecommunications SectorRead the Press Release
On Saturday, the President by Executive Order formally established an interagency committee to advise the Federal Communications Commission (FCC) on national security and law enforcement concerns related to certain license applications by companies under foreign ownership or control. The Attorney General will chair the committee, which includes the Secretaries of Homeland Security and Defense.
Saturday’s Executive Order, “Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector,” formalizes a process known as Team Telecom that has existed for years, but which will benefit from a transparent and empowered structure.
“In the digital age, our telecommunications networks are more important than ever, and not just to the economy,” said Attorney General William P. Barr. “This is a national security and public safety issue. That’s why the federal government must be vigilant and ensure that a foreign adversary cannot undermine the networks our country depends on.”
The Justice Department’s National Security Division, through its Foreign Investment Review Section, will represent the Attorney General on the Committee. Other departments and agencies will serve as Advisors to the Committee.
“We look forward to continuing to work with our federal partners to ensure that our nation’s telecommunications networks maintain the security, integrity, and continuity that the American people expect and American security demands,” said John C. Demers, Assistant Attorney General for National Security. “We welcome foreign participation in our communications system, but we must ensure that anyone licensed to do business here is a trusted partner. The National Security Division is ready and proud to lead this effort to increase transparency to the public, certainty and timeliness for the business community, and security for the nation.”
The Committee will review applications for telecommunications, submarine cable landing, and other FCC licenses which the FCC refers for review of national security and law enforcement concerns. Under the Executive Order, once an application is deemed complete, the Committee must complete an initial review of an application within 120 days, and if a review reveals potential risks, must complete a secondary assessment within 90 days. Even complex applications would be reviewed within about a year, substantially faster than Team Telecom has functioned historically. The EO also establishes a framework for Advisors to the Committee to contribute to the process, ensuring that the FCC receives a timely recommendation that reflects a coordinated Executive Branch view. Those recommendations will continue to be filed on the FCC’s public docket, and the FCC will continue to make the final decision on the disposition of any application.
Accountant from Silver City, New Mexico pleads guilty to federal wire fraud and identity theft chargesRead the Press Release
ALBUQUERQUE, N.M. – Thomas Laws, 62, of Silver City, New Mexico pleaded guilty today in federal court in Las Cruces, New Mexico to four counts of wire fraud and one count of aggravated identity theft in a scheme to steal more than $1.5 million from his victims.
According to his plea agreement, Laws worked as a licensed accountant and registered investment advisor in Silver City. He provided accounting, tax preparation and investment services to clients. From 2008 to 2019, Laws engaged in a scheme to obtain money by false pretenses and fraudulent misrepresentations made to clients, lenders, investors and others.
Among other things, Laws lied to two clients to convince them to invest in a real estate development project. Laws fabricated and forged mortgage documents purporting to show that $650,000 these clients invested in the project was secured by a mortgage. In reality, Laws had previously mortgaged the property to other lenders, defaulted, and a court had ordered foreclosure and judicial sale of the property. Rather than developing the real estate, Laws channeled the $650,000 to pay part of a settlement with an earlier victim of his scheme.
Laws also scammed two other investors out of $550,000 that Laws claimed would be used for a mining project. Instead, Laws used the money to pay off earlier victims of his scheme, including partial restitution to a corporation from which he, as the corporation’s chief executive officer, had embezzled more than one million dollars.
As part of his fraudulent scheme, Laws made, or caused others to make, several wire transfers of funds. Laws also used stolen money to pay personal expenses for himself and his family, including credit cards debts, travel, communication and media services, firearms and cash. His scheme caused total financial losses of more than $1.5 million to the victims.
Laws is currently out of custody awaiting sentencing. He faces up to 81 months in prison under the terms of his plea agreement, including a mandatory sentence of 24 months for aggravated identity theft.
The FBI and New Mexico Securities Division investigated this case. Assistant U.S. Attorney Tim S. Vasquez is prosecuting this case.
6 April 2020
Woman charged with falsely claiming officer accessed her bank account from International Space StationRead the Press Release
HOUSTON – A federal indictment has been unsealed against a 44-year-old woman for making false statements to federal authorities, announced U.S. Attorney Ryan Patrick.
A Houston federal grand jury returned the two-count indictment against Summer Worden, of Wichita, Kansas, Feb. 27. She is expected to make her initial appearance before U.S. Magistrate Judge Dena H. Palermo April 13.
The charges allege Worden made false statements to NASA - Office of Inspector General (OIG) and the Federal Trade Commission (FTC).
According to the indictment, Worden maintained multiple bank accounts at USAA Federal Savings Bank. She allegedly shared access to her online accounts with a commissioned officer in the U.S. Army on detail to NASA’s Johnson Space Center who had access until at least Jan. 31, 2019.
The indictment alleges Worden filed a complaint with the FTC, alleging the officer had improperly accessed her bank account. She claimed she had opened a new account in September 2018 and reset her login credentials in order to prevent the individual from accessing her accounts, according to the charges. However, the indictment alleges she actually opened the account in April 2018 and did not change her login credentials until January 2019.
The indictment charges Worden with making false statements on two occasions. She allegedly filed the false complaint March 19, 2019, with the FTC and later made a false statement in an interview with NASA-OIG July 22, 2019.
If convicted, Worden faces up to five years in prison on each count and a possible $250,000 maximum fine.
NASA-OIG and FTC conducted the investigation. Deputy Chief Ted Imperato and Assistant U.S. Attorney John Pearson are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Wisconsin Physician Agrees to Pay Financial Penalties to Resolve Allegations That He Prescribed Opioids Illegally and Violated False Claims ActRead the Press Release
United States Attorney Matthew D. Krueger announced today that Dr. Mehran Heydarpour of Brookfield, Wisconsin, agreed to pay $175,000 to resolve allegations that he prescribed opioid pain medications in violation of the Controlled Substances Act and that he billed Medicare for patient visits that did not occur in violation of the False Claims Act. Dr. Heydarpour also agreed that he would never again seek to register with the Drug Enforcement Administration for authorization to prescribe controlled substances.
Until 2016, Dr. Heydarpour provided pain management services at his clinic in Brookfield, Wisconsin. Based on investigation by the Drug Enforcement Administration (DEA) and the Office of Inspector General, Department of Health and Human Services (OIG), the government alleges that Dr. Heydarpour prescribed controlled substances, including opioid pain medications such as oxycodone, without legitimate medical purpose. Dr. Heydarpour routinely prescribed multiple opioid medications at extremely high doses to patients, often for years and without any documented evaluation of the patients or improvement in the patients’ pain or condition. In addition, the government alleges that Dr. Heydarpour billed Medicare for patient visits that never occurred, as he claimed.
“For many, the road to addiction began with opioids prescribed by their physician,” said United States Attorney Krueger. “Precisely because opioids and other controlled substances are so dangerous, physicians may only prescribe them to legitimately treat medical issues. Dr. Heydarpour abused that privilege and prescribed excessive amounts of opioids to patients without a legitimate medical purpose. This settlement imposes a significant penalty on Dr. Heydarpour and also ensures that he will never prescribe controlled substances in the future.”
“DEA will continue to pursue civil actions against any registrant that violates the Controlled Substances Act by practicing outside of professional medical practice and issuing illegitimate controlled substance prescriptions. The overprescribing of opioids has played a large role in the national opioid addiction crisis that our country currently faces on a daily basis,” said DEA Milwaukee District Office Assistant Special Agent in Charge Paul E. Maxwell, Jr.
Assistant United States Attorney Michael Carter represented the government in this matter. The DEA and OIG assisted in the investigation. The settlement agreement states allegations only; Dr. Heydarpour does not admit liability for the allegations. .
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For Additional Information Contact:
Public Information Officer Kenneth B. Gales 414-297-1700
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United States Attorney William M. McSwain Announces Nearly $60 Million in Grants Available to Support Offenders’ Successful Reentry into Communities and to Prevent their Reversion to Criminal BehaviorRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting the successful reentry back into their communities of adult and juvenile offenders who have served their prison sentences.
The funding is available through the Office of Justice Programs (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.
“Providing offenders who have paid their debt to society with functional ways to reintegrate into their communities is an important piece of the Department’s strategy for promoting public safety,” said U.S. Attorney McSwain. “And what we have learned from our District’s reentry program – Supervision to Aid Reentry (STAR) – is that these programs work. For example, in our District, statistics show that the recidivism and revocation rates of offenders who graduate from the STAR program are significantly lower than offenders residing in our District who did not participate in the program.”
“Our District’s STAR program is a national model, and its success is directly attributable to the strong partnerships we have forged with the Federal Community Defenders’ Office, the U.S. Probation Office, and the Court,” continued U.S. Attorney McSwain. “I encourage all who are eligible to apply for these available grants to strengthen and grow reentry programs in our District and beyond.”
“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.”
The following funding opportunities are currently available, with additional ones coming in the near future:
- Review and Validation of the First Step Act Risk Assessment Tool
Link: https://nij.ojp.gov/funding/opportunities/nij-2020-fsa
Available Funds: Determined after selection
Deadline: April 10, 2020
The National Institute of Justice (NIJ) is the research, development, and evaluation agency of the U.S. Department of Justice. With this funding opportunity, NIJ seeks to review and revalidate, on an annual basis, the risk assessment tool developed in response to the First Step Act. The risk assessment tool – the Prisoner Assessment Tool Targeting Estimated Risk and Needs (PATTERN) – will be used by the Federal Bureau of Prisons (BOP) to predict the likelihood of general and violent recidivism for all BOP inmates. Governmental agencies are excluded from eligibility for this grant. NIJ expects to support multiple individual consultants with this funding, and those consultants selected will work as a team to address First Step Act mandates.
- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17104
Available Funds: $7.2 million
Deadline: April 27, 2020
The Bureau of Justice Assistance (BJA) seeks applications to implement or expand education and employment programs that emphasize strong partnerships with corrections, parole, probation, education, workforce development, and reentry service providers. Programs funded by these grants will target prisons, jails, and juvenile facilities and should be focused on the three-year period before release, as well as upon transition and reentry into the community. The following entities are eligible to apply for and receive funding pursuant to this grant: state or local governmental agencies (or their components); federally recognized Indian tribal governments; or nonprofit organizations with a demonstrated history of providing comprehensive reentry services.
- Improving Reentry for People with Substance Use Disorders Program
Link: https://bja.ojp.gov/SCASUD20
Available Funds: $13.2 million
Deadline: April 27, 2020
BJA seeks applications for funding to establish, expand, and improve treatment for people with substance use disorders during their incarceration and reentry into the community, which in turn will help to reduce recidivism, promote public safety, and recovery. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, federally recognized tribal governments, and nonprofit agencies.
- Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17096
Available Funds: $3 million
Deadline: April 28, 2020
BJA seeks applications from community supervision agencies, e.g., adult probation and parole or pretrial services, to develop and test new or enhanced applications of the swift, certain, and fair (SCF) principles of intervention. The SCF principles of intervention were developed by BJA to reduce recidivism and improve outcomes for people under community supervision. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.
- Second Chance Act Youth Offender Reentry Program
Link: https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17350
Available Funds: $7 million
Deadline: April 28, 2020
The Second Chance Act Youth Offender Reentry Program encourages collaboration between state agencies, local government, and community and faith-based organizations to address the challenges that reentry and recidivism reduction pose for moderate to high-risk juvenile offenders returning to their communities from juvenile residential or correctional facilities. The following entities are eligible to apply for and receive funding pursuant to this grant: states (including territories), local governments, or federally recognized Indian tribal governments, in partnership with interested persons (including federal corrections and supervision agencies), service providers, and nonprofit organizations.
- Innovations in Reentry Initiative: Building System Capacity and Testing Strategies to Reduce Recidivism
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17281
Available Funds: $4 million
Deadline: May 4, 2020
This program will help jurisdictions assess their reentry system, identify strengths and gaps, and then build capacity for improving the reentry system in place or expanding services it provides. The following entities are eligible to apply for and receive funding pursuant to this grant: states, units of local government, and federally recognized tribal governments.
- Second Chance Act Community-Based Reentry Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17110
Total Available: $13.5 million
Deadline: May 4, 2020
BJA seeks applications to implement or expand on reentry programs that demonstrate strong partnerships with corrections, parole, probation, and other reentry service providers. These partnerships should develop comprehensive case management plans that directly address criminogenic risk and needs, as determined by validated criminogenic risk assessments, and include delivery or facilitation of services. The following entities are eligible to apply for and receive funding pursuant to this grant: nonprofit organizations and federally recognized tribal governments.
- Research and Evaluation on Promising Reentry Initiatives
Link: https://nij.ojp.gov/funding/opportunities/nij-2020-17295
Available Funds: $6 million
Deadline: May 5, 2020
With this solicitation, the National Institute of Justice (NIJ) requests proposals for rigorous research to examine reentry initiatives that incorporate promising practices, strategies, or programs. NIJ is particularly interested in supporting evaluations of innovative reentry initiatives that focus on offenders with a moderate-to-high risk of reoffending. The following entities are eligible to apply for and receive funding pursuant to this grant: states; units of local government; federally recognized Indian tribal governments that perform law enforcement functions; nonprofit and for-profit organizations; and institutions of higher learning.
- Second Chance Act Evaluation Participation Support Program
Link: https://bja.ojp.gov/funding/opportunities/bja-2020-17680
Available Funds: $4 million
Deadline: May 28, 2020
BJA seeks applicants to participate in an evaluation of their Second Chance Act-funded programs. The following entities are eligible to apply for, and receive, funding pursuant to this grant: units or components of state, local, or county governments and federally recognized Indian tribal governments, provided that applicants are current, or previous, recipients of BJA Second Chance Act funds and are running reentry programs ready for a rigorous, randomized control trial evaluation.
For more information regarding all OJP funding opportunities, please visit: https://www.ojp.gov/funding/explore/current-funding-opportunities
U.S. Attorney Erica MacDonald and Minnesota Attorney General Keith Ellison Announce Joint Minnesota COVID-19 Action TeamRead the Press Release
United States Attorney Erica H. MacDonald and Minnesota Attorney General Keith Ellison today jointly announced the formation of the Minnesota COVID-19 Action Team (MCAT), a coordinated statewide effort focused on investigating and prosecuting unlawful activity associated with the COVID-19 pandemic and enforcing all state and federal laws and executive orders to put an end to it. The MCAT urges the public to report any COVID-19-related criminal behavior, scams, price-gouging, cybercrimes, hate crimes, or other unlawful activity to the Minnesota Attorney General’s Office. The Attorney General’s Office has established a dedicated COVID-19-specific complaint form at that is live as of today. Minnesotans with any concerns or complaints about unlawful activity related to COVID-19 may also call the Attorney General’s office (651) 296-3353 or (800) 657-3787.
“Together, we are living through an extremely challenging and unprecedented time. Unfortunately, there are bad actors who seek to exploit these challenges by preying on vulnerable individuals for a quick financial profit, launching a myriad of insidious cyber scams, or carrying out bias-motivated acts of violence. This type of criminal activity is reprehensible and will not go unpunished,” said U.S. Attorney MacDonald. “The MCAT’s number one priority is the safety and security of all Minnesotans during this extremely challenging time. We are marshalling all available resources to meet that mission.”
“Now is the time for Minnesotans to turn toward each other, not against each other. The vast majority of people and businesses are doing that: they’re doing right by each other, their customers, and communities, and we thank them. But for those that aren’t — for those who are profiteering off the pandemic or using it as a pretext to attack other people — we’re not standing for it. We’re pooling all our resources to come after them and to help all other Minnesotans afford their lives and live with dignity and respect,” Attorney General Ellison said.
“Our County Attorneys appreciate the leadership of our U.S. Attorney and our Attorney General in forming this team. It is another example of the importance of coordination and cooperation between federal, state, and local prosecutors in protecting our communities,” said Robert Small, Executive Director of the Minnesota County Attorneys Association.
The MCAT, led by the U.S. Attorney’s Office for the District of Minnesota, the Minnesota Attorney General’s Office, and the Minnesota County Attorneys Association, unites the collective criminal and civil investigative and enforcement power of our federal, state, local and tribal law-enforcement agencies. The goal of the MCAT is to protect the citizens of Minnesota from any wrongdoing related the COVID-19 pandemic. Through outreach, investigation, enforcement, and prosecution, the MCAT will address reports of COVID-19-related unlawful activity, including fraud scams, price gouging, hoarding of essential medical supplies, schemes targeting economic impact payments (i.e., stimulus checks) and phishing emails and other cybercrimes. The MCAT will serve as a clearinghouse for any such reports or complaints that the public submits to the Attorney General’s Office or any federal, state, or local agency, provide for a swift and coordinated law enforcement response, and facilitate the sharing of information about COVID-19-related unlawful conduct occurring anywhere in Minnesota. Additionally, any instances of COVID-19-related hate crimes targeting specific communities and threats to and assaults upon law enforcement will be promptly investigated and referred for civil action or criminal prosecution, when appropriate. We urge the public to remain vigilant, report any wrongdoing, avoid falling victim to a scammer, and look out for your community and fellow Minnesotans. Complaints can also be submitted to the National Center for Disaster Fraud hotline at (866) 720-5721 or [email protected].
“Let us be clear: Minnesota law enforcement remains on-duty and committed to meeting the critical mission of protecting individuals, families and communities. Ignorant, hateful attacks have no place in Minnesota and will not be tolerated. And to those who seek to make a quick buck by exploiting the fears and vulnerabilities of individuals, your illegal behavior will not be tolerated,” said U.S. Attorney MacDonald.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney Announces South Carolina COVID Strike Team to Combat Coronavirus FraudRead the Press Release
COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that, in coordination with the Department of Justice, the U.S. Attorney’s Office has established the South Carolina COVID Strike Team to pursue the prosecution and investigation of Coronavirus fraud schemes, hoarding, and price gouging activities.
The South Carolina COVID Strike Team is comprised of members of the U.S. Attorney’s Office, federal law enforcement officers, officers with the South Carolina Law Enforcement Division (SLED), and members of the South Carolina Attorney General’s Office. The federal agencies involved include the Internal Revenue Service (IRS), Federal Emergency Management Agency (FEMA), Federal Bureau of Investigation (FBI), Department of Health and Human Services (HHS), Defense Criminal Investigation Service (DCIS), Veterans Affairs Office of Inspector General (VA-OIG), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Drug Enforcement Administration (DEA). As needed, the South Carolina COVID Strike Team is also working with local law enforcement agencies throughout South Carolina.
“It is a sad truth that criminals are always willing to take advantage of every opportunity to prey on the most vulnerable,” said U.S. Attorney McCoy. “In these unprecedented times, the U.S. Attorney’s Office and its federal, state, and local partners remain vigilant, and we will prosecute those who take advantage of Americans during this pandemic.”
There have been numerous cases of fraud, hoarding, and price gauging across the country. The schemes range from fake COVID-19 tests, hoarding of personal protective medical equipment, and scams related to the upcoming COVID-19 economic impact payments. According to U.S. Attorney McCoy, the South Carolina COVID Strike Team began receiving, and responding to, leads related to Coronavirus activity almost immediately after standing up.
Members of the public can report suspected fraud schemes and price gouging related to Coronavirus by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components, to identify, investigate, and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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U.S. Attorney McCoy is currently discussing the U.S. Attorney’s Office’s efforts to combat Coronavirus-related frauds and schemes with media members. To schedule an interview with U.S. Attorney McCoy, please call AUSA Derek A. Shoemake at 843-813-0982 or email him at [email protected].
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 Media Executives and Sports Marketing Company Indicted in FIFA CaseRead the Press Release
A 53-count third-superseding indictment (the “Indictment”) was unsealed today in federal court in Brooklyn charging sports marketing executives Hernan Lopez and Carlos Martinez, formerly of 21st Century Fox, Inc. (“Fox”); Gerard Romy, former co-CEO of Spanish media company Imagina Media Audiovisual SL (“Imagina”); and Uruguayan sports marketing company Full Play Group S.A. (“Full Play”) (collectively, the “New Defendants”) with wire fraud, money laundering and related offenses – including, as to Romy and Full Play, racketeering conspiracy – in connection with the government’s long-running investigation and prosecution of corruption in organized soccer. The Indictment, returned under seal by a federal grand jury on March 18, 2020, includes additional charges against certain defendants located overseas who were previously indicted and have yet to be extradited to the United States.
Defendants Lopez, Martinez and Full Play are scheduled to be arraigned on April 9, 2020, before United States District Judge Pamela K. Chen in Brooklyn.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the charges.
“The charges unsealed today reflect this Office’s ongoing commitment to rooting out corruption at the highest levels of international soccer and at the businesses engaged in promoting and broadcasting the sport,” stated United States Attorney Donoghue. “Companies and individuals alike should understand that, regardless of their wealth or power, they will be brought to justice if they use the U.S. financial system to further corrupt ends.” Mr. Donoghue extended his thanks to the agents and other investigative personnel at the FBI New York Eurasian Joint Organized Crime Squad, the FBI’s Integrity in Sport and Gaming Initiative and the IRS-CI Los Angeles Field Office, as well as their colleagues in the United States and abroad, for their continuing effort in this case.
“The profiteering and bribery in international soccer have been deep-seated and commonly known practices for decades. These men, along with the general public, have known the FBI New York and our many law enforcement partners are investigating the illicit handshakes and backroom deals hidden in the infrastructure of soccer events, venues and marketing contracts. The first public charges date back to 2015. This should illustrate to everyone still hoping to score millions corruptly, we're going to find you,” stated FBI Assistant Director-in-Charge Sweeney.
“As charged in the Indictment, over a period of many years, the defendants and their co-conspirators corrupted the governance and business of international soccer with bribes and kickbacks, and engaged in criminal fraudulent schemes that caused significant harm to the sport of soccer. Their schemes included the use of shell companies, sham consulting contracts and other concealment methods to disguise the bribes and kickback payments and make them appear legitimate. IRS-CI is proud to have worked alongside our partners at the FBI to unravel this trail of deception,” stated IRS-CI Special Agent-in-Charge Korner.
As alleged in the Indictment, FIFA and its six continental confederations – including the Confederation of North, Central American and Caribbean Association Football (“CONCACAF”), headquartered in the United States, and the Confederación Sudamericana de Fútbol (“CONMEBOL”), the confederation governing soccer in South America – together with affiliated regional federations, national member associations and sports marketing companies, constitute an enterprise of legal entities associated in fact for purposes of the federal racketeering laws. The principal – and entirely legitimate – purpose of the enterprise is to regulate and promote the sport of soccer worldwide. Consistent with previous indictments returned in the case, the Indictment alleges that over a period of more than two decades, the defendants and their co-conspirators corrupted the enterprise by engaging in various criminal activities, including fraud, bribery and money laundering.
As set forth in the Indictment, the New Defendants used their positions in the world of international soccer to engage in schemes involving the solicitation, offer, acceptance, payment and receipt of bribes and kickbacks, principally to obtain lucrative broadcast rights to various international soccer tournaments and events. For example, as alleged:
- Lopez and Martinez, formerly high-ranking executives of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events. Lopez and Martinez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained.
- Romy was a high-ranking executive and shareholder of Imagina, a privately held, multinational media conglomerate based in Barcelona, Spain, that owned various subsidiaries around the world, including in the United States. Romy participated in schemes to pay millions of dollars to high-ranking officials of the Caribbean Football Union (“CFU”) and of federations within the Central American Football Union (“UNCAF”), both regional soccer unions operating under the CONCACAF umbrella, to secure the media and marketing rights to FIFA World Cup qualifier matches organized by federations within the CFU and UNCAF. In connection with the CFU scheme, Romy and his co-conspirators agreed to pay Jeffrey Webb, a senior official of the CFU and the president of CONCACAF, a $3 million bribe in exchange for a share of a contract awarding the media and marketing rights to CFU members’ home World Cup qualifier matches for the 2018 and 2022 qualification cycles.
- Full Play, a sports marketing company incorporated in Uruguay, based in Buenos Aires, Argentina, and owned by father-and-son defendants Hugo Jinkis and Mariano Jinkis, participated in numerous schemes to pay bribes to officials of CONMEBOL and CONCACAF in exchange for media and marketing rights to various soccer events, including World Cup qualifier and friendly matches, the Copa Libertadores, and multiple editions of the Copa América, a national team tournament administered by CONMEBOL. Hugo and Mariano Jinkis, charged in the first indictment in the case unsealed on May 27, 2015, are among the defendants charged in the Indictment and remain fugitives.
In connection with the above schemes, the Indictment charges Romy and Full Play with RICO conspiracy and all four New Defendants with wire fraud and money laundering offenses. Each of the offenses carries a maximum of 20 years’ imprisonment, and, if convicted, each defendant faces mandatory restitution, forfeiture and a fine.
Other schemes alleged in the Indictment relate to the payment and receipt of bribes and kickbacks in connection with, among other things, contracts for the media and marketing rights to additional soccer events and FIFA’s selection of the countries to host various editions of the World Cup, including the World Cup hosted by Russia in 2018 and the World Cup scheduled to be hosted by Qatar in 2022.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Patrick T. Hein, Kaitlin T. Farrell, David C. Pitluck and Brian D. Morris, with assistance provided by the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The New Defendants:
HERNAN LOPEZ
Age: 49
Los Angeles, CaliforniaCARLOS MARTINEZ
Age: 51
Doral, FloridaGERARD ROMY
Age: 65
Barcelona, SpainFULL PLAY GROUP S.A.
Buenos Aires, ArgentinaE.D.N.Y. Docket No. 15-CR-252 (S-3) (PKC)
- Lopez and Martinez, formerly high-ranking executives of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events. Lopez and Martinez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained.
Supai Man Sentenced to 27 Months in Prison for Assaulting Two Federal OfficersRead the Press Release
PHOENIX, Ariz. – On March 9, Delton Rogers, 33, of Supai, Arizona, was sentenced by U.S. District Judge Steven P. Logan to two terms of 27 months in federal prison followed by 36 months of supervised release. Rogers will serve the terms concurrently. In December 2019, Rogers pleaded guilty to Assault on a Federal Officer in two different cases.
On September 27, 2018, Rogers struck a Bureau of Indian Affairs police officer who was attempting to restrain him during an altercation in Supai, Arizona. On April 21, 2019, when Hualapai Police Department officers were attempting to locate Rogers after a domestic disturbance report, he led officers on a high speed vehicle pursuit. While being taken into custody, Rogers aggressively attempted to break free from officers and repeatedly kicked an officer in the legs.
The Bureau of Indian Affairs (Truxton Canyon Agency) and the Hualapai Police Department investigated the case. Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-8036-PCT-SPL; CR-19-8155-PCT-SPL
RELEASE NUMBER: 2020-043_Rogers# # #
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.New Jersey Chiropractor Agrees to Pay $2 Million to Resolve Allegations of Unnecessary Knee Injections and Knee Braces and Related KickbacksRead the Press Release
David Podell, a New Jersey chiropractor, has agreed to pay the United States $2 million to resolve False Claims Act allegations that he both knowingly billed Medicare for medically-unnecessary viscosupplementation injections and knee braces and that he received illegal kickbacks, the Justice Department announced today. The settlement follows the government’s earlier settlement with seven former Osteo Relief Institutes (ORIs) and their owners, who agreed to pay the United States collectively more than $7.1 million to resolve their False Claims Act liability.
“Billing for services or items that are medically unnecessary or tainted by illegal kickbacks threatens the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The department will continue to pursue providers who seek to improperly enrich themselves at the expense of these programs, their beneficiaries, and the taxpayers.”
Podell previously owned and managed a clinic in Edgewater, New Jersey that performed viscosupplementation, among other procedures. Along with a business partner, he also promoted a business model to other chiropractors for running and marketing a clinic that specialized in the treatment of osteoarthritis through the administration of fluoroscopic-guided viscosupplementation injections and the provision of knee braces. This led to the formation of the ORIs. Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid. Through his association with his business partner, Podell received a percentage of the ORIs’ collections.
The government alleged that Podell caused his clinic and other ORIs to bill Medicare for viscosupplementation injections for patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries. The government also alleged that Podell caused his clinic and the ORIs to provide unnecessary custom knee braces to patients. The government further alleged that Podell solicited and received kickbacks from a manufacturer of knee braces in exchange for ordering more of the manufacturer’s braces for his clinic.
“When medical professionals seek to increase their revenue by improperly exploiting public healthcare programs, beneficiaries suffer and taxpayer dollars are wasted,” said U.S. Attorney Erica H. MacDonald for the District of Minnesota. “Today’s settlement serves as another example of our commitment to address fraud and abuse in the healthcare system.”
“Medical providers have a responsibility to ensure that the products and services that they provide are medically necessary and appropriate,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Providing medically unnecessary products and services can put a patient’s health and safety at risk and waste vital taxpayer dollars. HHS-OIG will continue to investigate and hold accountable those who put their financial interests above those of Medicare beneficiaries.”
The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data. The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The claims asserted against this defendant are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
New Jersey Chiropractor Agrees to Pay $2 Million to Resolve Allegations of Unnecessary Knee Injections and Knee Braces and Related KickbacksRead the Press Release
WASHINGTON – David Podell, a New Jersey chiropractor, has agreed to pay the United States $2 million to resolve False Claims Act allegations that he both knowingly billed Medicare for medically-unnecessary viscosupplementation injections and knee braces and that he received illegal kickbacks, the Justice Department announced today. The settlement follows the government’s earlier settlement with seven former Osteo Relief Institutes (ORIs) and their owners, who agreed to pay the United States collectively more than $7.1 million to resolve their False Claims Act liability.
“Billing for services or items that are medically unnecessary or tainted by illegal kickbacks threatens the integrity of federal healthcare programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The department will continue to pursue providers who seek to improperly enrich themselves at the expense of these programs, their beneficiaries, and the taxpayers.”
Podell previously owned and managed a clinic in Edgewater, New Jersey that performed viscosupplementation, among other procedures. Along with a business partner, he also promoted a business model to other chiropractors for running and marketing a clinic that specialized in the treatment of osteoarthritis through the administration of fluoroscopic-guided viscosupplementation injections and the provision of knee braces. This led to the formation of the ORIs. Viscosupplementation is a treatment for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid. Through his association with his business partner, Podell received a percentage of the ORIs’ collections.
The government alleged that Podell caused his clinic and other ORIs to bill Medicare for viscosupplementation injections for patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries. The government also alleged that Podell caused his clinic and the ORIs to provide unnecessary custom knee braces to patients. The government further alleged that Podell solicited and received kickbacks from a manufacturer of knee braces in exchange for ordering more of the manufacturer’s braces for his clinic.
“When medical professionals seek to increase their revenue by improperly exploiting public healthcare programs, beneficiaries suffer and taxpayer dollars are wasted,” said U.S. Attorney Erica H. MacDonald for the District of Minnesota. “Today’s settlement serves as another example of our commitment to address fraud and abuse in the healthcare system.”
“Medical providers have a responsibility to ensure that the products and services that they provide are medically necessary and appropriate,” said Special Agent in Charge Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Providing medically unnecessary products and services can put a patient’s health and safety at risk and waste vital taxpayer dollars. HHS-OIG will continue to investigate and hold accountable those who put their financial interests above those of Medicare beneficiaries.”
The allegations resolved by today’s settlement were identified by a government investigation that arose out of a critical analysis of Medicare claims data. The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The claims asserted against this defendant are allegations only, and there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
MiMedx Group, Inc. Agrees to Pay $6.5 Million to Resolve False Claims Act Allegations for False Commercial Pricing DisclosuresRead the Press Release
WASHINGTON – MiMedx Group Inc. (MiMedx), a biopharmaceutical company based in Marietta, Georgia that manufactures and sells human tissue grafts, will pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false commercial pricing disclosures to the United States Department of Veterans Affairs (VA), the Justice Department announced today.
“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government charge a fair price for their goods,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Government contractors will not be permitted to profit improperly at the expense of taxpayers.”
This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products. Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.
“Charging inflated prices for medical products is unlawful and unethical,” said U.S. Attorney Erica MacDonald for the District of Minnesota. “This settlement underscores the obligation of government contractors to be fair and truthful in their dealings with the United States and to prevent wasted taxpayer dollars.”
“Our nation’s veterans deserve the best healthcare products and services available and the American taxpayers deserve fair and honest pricing from government contractors,” said Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs. “This settlement underscores VA OIG’s commitment to protecting the integrity of the VA’s healthcare system and procurement processes.”
The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.). As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, and the Office of Inspector General of the Department of Veterans Affairs. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
MiMedx Group Inc. Agrees to Pay $6.5 Million to Resolve False Claims Act Allegations of False Commercial Pricing DisclosuresRead the Press Release
MiMedx Group Inc. (MiMedx), a biopharmaceutical company based in Marietta, Georgia that manufactures and sells human tissue grafts, will pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly submitting false commercial pricing disclosures to the United States Department of Veterans Affairs (VA), the Justice Department announced today.
“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government charge a fair price for their goods,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Government contractors will not be permitted to profit improperly at the expense of taxpayers.”
This settlement resolves allegations that MiMedx knowingly submitted false statements and disclosures to the VA regarding MiMedx’s commercial pricing practices, enabling MiMedx to charge the VA inflated prices for its human tissue graft products. Prior to the United States’ disclosure to MiMedx of its investigation, MiMedx made a disclosure to the VA Office of Inspector General regarding its commercial sales practices. In the settlement, the United States acknowledged MiMedx’s cooperation.
“Charging inflated prices for medical products is unlawful and unethical,” said U.S. Attorney Erica MacDonald for the District of Minnesota. “This settlement underscores the obligation of government contractors to be fair and truthful in their dealings with the United States and to prevent wasted taxpayer dollars.”
“Our nation’s veterans deserve the best healthcare products and services available and the American taxpayers deserve fair and honest pricing from government contractors,” said Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs. “This settlement underscores VA OIG’s commitment to protecting the integrity of the VA’s healthcare system and procurement processes.”
The allegations resolved by the settlement were first brought in a lawsuit filed by former MiMedx sales representatives under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States of America ex rel. Jess Kruchoski and Luke Tornquist v. MiMedx Group, Inc., 17-cv-00187 (D. Minn.). As part of this settlement, they will receive $1,625,000 as their share of the government’s recovery.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Minnesota, and the Office of Inspector General of the Department of Veterans Affairs. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Illegal possession of firearm sends Billings man to prisonRead the Press Release
BILLINGS—A Billings man who admitted he illegally had a firearm after being found passed out in a vehicle was sentenced today to two and one half years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Matthew Robert-Jefferson Miller, 32, pleaded guilty in October to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court documents that in 2009, Matthew Robert-Jefferson Miller was convicted of felony drug charges. On March 8, 2019, a Rosebud County Sheriff’s sergeant received a call for service regarding a vehicle off the road and stuck in the snow near the Rosebud Creek turn off on Highway 10. The officer found the vehicle with Miller passed out behind the wheel. During a pat down search of Miller, the officer found a loaded firearm in his waistband. The officer conducted a DUI investigation and arrested Miller. During an interview, Miller advised he had the firearm for protection.
Assistant U.S. Attorney Julie Patten prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Georgia Man Indicted for Sexual Exploitation of MinorsRead the Press Release
United States Attorney Ron Parsons announced that a Hahira, Georgia, man was charged in federal district court with Enticement of a Minor Using the Internet, Sexual Exploitation of a Minor, and Transfer of Obscene Material to a Minor.
Franklin Love McDaniel, age 33, was charged on January 15, 2020. He appeared before U.S. Magistrate Judge Daneta Wollmann on March 25, 2020, and pleaded not guilty to the charges. The penalty upon conviction is a mandatory minimum of 15 years up to life in federal prison and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to McDaniel sexually exploiting underage females between April 2017 and June 2019 in Rapid City via the internet. The charges are merely an accusation and McDaniel is presumed innocent until and unless proven guilty.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
McDaniel was released on conditions pending trial. A trial date has not been set.
Federal Defendant Charged with Gun Law Violation Ordered Detained Pending TrialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been ordered detained pending trial, United States Attorney Scott W. Brady announced today.
Earlier today, Cheron Shelton, 33, proceeded to a detention hearing before federal Magistrate Judge Lisa Pupo Lenihan of the Western District of Pennsylvania. At the close of the hearing, Judge Lenihan determined that no condition or combination of conditions of release could adequately assure the safety of the community and the appearance of the defendant for future court proceedings, and ordered the defendant detained pending trial.
Shelton is charged in a one-count Indictment with possession of a firearm by a convicted felon.
According to the Indictment, on March 12, 2016, Shelton possessed a firearm and ammunition, namely a Colt Model M4, .22 caliber rifle, knowing that he had been previously convicted of a crime punishable by a term exceeding one year. Federal law prohibits any person who has been convicted of a felony from owning a firearm.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Douglas C. Maloney and Brendan T. Conway are prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Allegheny County Police Department and the Wilkinsburg Police Department conducted the investigation leading to the Indictment in this case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dominican National Sentenced for False Identity CrimeRead the Press Release
Boston – A Dominican national formerly residing in Methuen was sentenced today for falsely representing a Social Security number as his own.
Francisco Antonio Sanchez Bernabe, 50, was sentenced by U.S. District Court Judge Leo T. Sorokin to time served (approximately one year), one year of supervised release and ordered removed to the Dominican Republic. In December 2019, Sanchez Bernabe pleaded guilty to false representation of a Social Security number. He has been in federal custody since his arrest on the charges on April 18, 2019.
On Oct. 25, 2018, Sanchez Bernabe falsely represented that a Social Security number was his in an application for a driver’s license at the Massachusetts Registry of Motor Vehicles. In connection with the application, Sanchez Bernabe provided various documents, including a birth certificate and Social Security card, in order to obtain the license.
United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit prosecuted the case.