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25 March 2020
Tampa Man Arrested for Distributing Heroin and Fentanyl, Causing DeathRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of a criminal complaint and arrest charging Isaiah Reed (30, Tampa) with conspiracy to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of heroin and fentanyl. If convicted, he faces a maximum penalty of life imprisonment.
According to the
criminal complaint , on September 19, 2019, Reed sold a victim a controlled substance that contained fentanyl. The victim injected the substance, became unresponsive, and died. The Hillsborough County Medical Examiner’s Office determined that the victim suffered an accidental death caused by the combined effects of fentanyl, methamphetamine, and heroin.A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. It was investigated by the Hillsborough County Sheriff’s Office and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
Southland Man Arrested on Federal Charges Alleging Fraudulent Investment Scheme Featuring Bogus Claims of COVID-19 CureRead the Press Release
LOS ANGELES – Special agents with the FBI this evening arrested a Southern California man on a federal fraud charge alleging he solicited investments in a company he claimed would be used to market pills that would prevent coronavirus infections and an injectable cure for those already suffering from COVID-19.
Keith Lawrence Middlebrook, 53 – who is associated with several addresses, including residences in Westwood, Newport Beach and Murrieta – was arrested pursuant to a criminal complaint filed late this afternoon in United States District Court in Los Angeles. The complaint charges Middlebrook with one count of attempted wire fraud, a felony offense that carries a statutory maximum penalty of 20 years in federal prison.
The complaint alleges that Middlebrook claimed to have personally developed a “patent-pending cure” and a treatment that prevents coronavirus infection, even though every major health authority has warned that there is no specific antiviral treatment for COVID-19 and no vaccine to prevent coronavirus infection.
Middlebrook was arrested during a meeting in which he delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor.
Middlebrook fraudulently solicited funds with promises of massive profits for a company he called Quantum Prevention CV Inc. (QP20), and he falsely claimed to at least one potential investor that Earvin “Magic” Johnson was a member of the board of directors, according to the affidavit in support of the complaint. Mr. Johnson confirmed to investigators that he knew nothing about Middlebrook’s company.
QP20, according to Middlebrook, would mass produce the pills he claimed would prevent COVID-19. Upon receipt of investor funds, Middlebrook would issue shares in both QP20 and Quantum Cure CV 2020 (QC20), another alleged corporation Middlebrook claimed would market the serum that could cure COVID-19 patients within two to three days, the complaint alleges.
In communications with a cooperating witness, Middlebrook said, “I have Developed the Cure for the Coronavirus COVID-19…*LA Patient tested Positive for Coronavirus got up and walked out 51 hours after my Injection,” according to the affidavit. In the same text message, Middlebrook also wrote, “Investors who come in at ground level say $1M will parachute with $200M - $300M…Conservative Minimum.”
“During these difficult days, scams like this are using blatant lies to prey upon our fears and weaknesses,” said United States Attorney Nick Hanna. “While this may be the first federal criminal case in the nation stemming from the pandemic, it certainly will not be the last. I again am urging everyone to be extremely wary of outlandish medical claims and false promises of immense profits. And to those who perpetrate these schemes, know that federal authorities are out in force to protect all Americans, and we will move aggressively against anyone seeking to cheat the public during this critical time.”
“There’s a particular opportunistic cruelty in seeking to profit based on the fear and helplessness of others,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As the country reacts to the current crisis, and while many suffer from losing a loved one or losing their livelihood, the last thing Americans need are con-artists who hawk miracle cures they know are not tested, guaranteed, nor approved. The FBI is using a variety of tools to identify anyone who exploits the current crisis through investment frauds or a variety of cyber schemes – and is proactively warning investors to thoroughly research any salesperson or any product claiming to save lives, before losing their money, or creating false hope.”
Middlebrook will be held in federal custody until his initial court appearance, which is expected to be Thursday afternoon in United States District Court in downtown Los Angeles.
In a video posted eight days ago to his Instagram account, Middlebrook stated that he had created the cure for COVID-19, and he showed viewers a syringe with a clear liquid and described how his cure worked, according to the affidavit. Accompanying the video is text that reads, in part:
Yes I have Developed the Cure for the Coronavirus COVID-19. After 6 Weeks of Intense Focus and Development (and very little sleep). I am currently going into Mass Production. … The CDC, WHO and Mainstream Media have created a Pandemonium environment. To answer this (just because it’s what I do) I have created a Coronavirus Prevention Pill” (After 3 Days of taking it the person is Immune to the Virus and STAYS immune as long as they continue taking it once a day it the morning) and also the COVID-19 Formula Vaccine Cure to Satisfy the Physiological and Phycological Need at large.
The affidavit states that as of March 24 the video had been viewed more than 633,000 times.
In another Instagram video that was viewed more than 1 million times over approximately three days, Middlebrook shows a pill he says prevents him from contracting COVID-19 and “states that if he took the pill and walked into the Staples Center filled with COVID-19 positive individuals, he could not contract the virus,” according to the criminal complaint.
The affidavit focuses on communications – both written and over the phone – between Middlebrook and two people he thought were potential investors, the cooperating witness and an undercover FBI agent. Middlebrook made a series of claims and promises to the undercover agent, including guaranteeing that a $300,000 investment would yield $30 million, a promise that was secured “by a current $10 billion offer from an unnamed buyer in Dubai,” according to the affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The ongoing investigation in this matter is being conducted by the FBI.
This case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James Hughes of the Major Frauds Section.
Sioux City Man Pleads Guilty to Distribution of Methamphetamine and Possessing a Gun During a Drug Trafficking CrimeRead the Press Release
A Sioux City man who distributed approximately 4 pounds of methamphetamine from his residence pled guilty today, March 25, 2020, in federal court in Sioux City.
Carlos Jose Gomez, age 37, from Sioux City, Iowa was convicted of conspiracy to distribute methamphetamine and possession of a firearm during a drug trafficking crime.
Law enforcement executed a search warrant on Gomez’s property where they seized approximately 5 grams of methamphetamine, a loaded handgun, and $1,000 in cash belonging to Gomez. In a plea agreement, Gomez admitted to selling nearly 4 pounds of “ice” methamphetamine from December of 2019 through March 4, 2020. Gomez also admitted to knowingly possessing a gun in furtherance of selling methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Gomez remains in custody of the United States Marshal pending sentencing. For Count 1, Gomez faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment. For Count 2, Gomez faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of life imprisonment, or both without the possibility of parole, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4024.
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Sells Man Sentenced to Prison for Sexal Abuse of Two MinorsRead the Press Release
TUCSON, Ariz. – On February 18, Tracy Antonio, 25, of Sells, Ariz., was sentenced by U.S. Senior District Judge Raner C. Collins to 37 months of imprisonment, to be followed by a lifetime term of supervised release. Antonio must also register as a sex offender and follow sex offender conditions while on supervised release. Antonio previously pleaded guilty to two counts of sexual abuse of a minor.
Between November 12, 2015 and March 23, 2017, Antonio engaged in sexual intercourse with two victims, who were both less than 16 years old at the time. The crimes occurred near Sells, Ariz., on the Tohono O’odham Nation Reservation. Antonio is an enrolled member of the Tohono O’odham Nation, as were both victims.
Tohono O’odham Police Department and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Erica Seger and Frances Kreamer Hope, District of Arizona, Tucson, prosecuted the case against Antonio.
CASE NUMBER: CR-18-01903-RCC-JR
RELEASE NUMBER: 2020-033_Antonio# # #
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.PokerStars Founder Pleads GuiltyRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that ISAI SCHEINBERG, the founder and former executive of PokerStars, an online poker company, pled guilty today to running a multimillion-dollar unlawful internet gambling business. SCHEINBERG pled guilty before U.S. Magistrate Judge Sarah L. Cave.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Ten years ago, this Office charged 11 defendants who operated, or provided fraudulent payment processing services to, three of the largest online poker companies then operating in the United States – PokerStars, Full Tilt Poker, and Absolute Poker – with operating illegal gambling businesses and other crimes. As Isai Scheinberg’s guilty plea today shows, the passage of time will not undermine this Office’s commitment to holding accountable individuals who violate U.S. law.”
As alleged in the Indictment filed in March 2011 in Manhattan federal court, PokerStars was founded in approximately 2001, with headquarters in the Isle of Man. PokerStars offered online poker games to players around the world, including in New York, New York. SCHEINBERG was PokerStars’ founder and principal. On October 13, 2006, the United States enacted the Unlawful Internet Gambling Enforcement Act (“UIGEA”), making it a federal crime for gambling businesses to “knowingly accept” most forms of payment “in connection with the participation of another person in unlawful Internet gambling.” With the enactment of UIGEA, leading internet gambling businesses – including the leading internet poker company doing business in the United States at that time – terminated their United States operations. However, PokerStars, along with Full Tilt Poker and Absolute Poker, continued illegally to make internet poker available to U.S. customers through March 2011.
In pleading guilty today, SCHEINBERG admitted that he knew operating a business that offered internet poker to New Yorkers violated state law, and that it was the clear position of the U.S. government that offering online poker in the United States violated federal law. Nonetheless, Scheinberg decided to continue running his multimillion-dollar online poker business in the United States.
In 2012, PokerStars and its related companies (the “PokerStars Companies”) agreed to settle a civil forfeiture and civil money laundering action brought by the Office. That settlement involved, among other things, the PokerStars Companies forfeiting $547 million to the United States and assuming approximately $184 million in foreign player liabilities of another online poker company subject to the settlement. Additionally, in June 2013, Mark Scheinberg, ISAI SCHEINBERG’s son, agreed to forfeit to the United States an additional $50 million of distributions he received from the operation of the PokerStars Companies.
* * *
SCHEINBERG, 73, a dual Canadian and Israeli national, was arrested in Switzerland on June 7, 2019, based on the U.S. charges. In early October 2019, SCHEINBERG was ordered to be extradited to the United States by the Swiss Federal Office of Justice, a decision he initially appealed. SCHEINBERG subsequently withdrew his appeal and surrendered to U.S. federal agents on January 17, 2020. He was arraigned before United States Magistrate Judge Katharine H. Parker on the same day.
SCHEINBERG pled guilty to one count of operating an illegal gambling business, in violation of 18 U.S.C. § 1955. SCHEINBERG faces a maximum sentence of five years in prison. He is scheduled to be sentenced by United States District Judge Lewis A. Kaplan on a date to be determined.
The maximum sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
Mr. Berman thanked the Federal Bureau of Investigation and Homeland Security Investigations for their outstanding work and perseverance in the investigation and prosecution of this case, and Swiss authorities and the Department of Justice Criminal Division’s Office of International Affairs for their assistance with SCHEINBERG’s arrest and extradition proceedings.
With SCHEINBERG’s guilty plea, all 11 defendants – including Raymond Bitar, Scott Tom, Brent Beckley, Nelson Burtnick, Paul Tate, Ryan Lang, Bradley Franzen, Ira Rubin, Chad Elie, and John Campos – originally charged in the Indictment have now pled guilty. All but SCHEINBERG have been sentenced.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Olga Zverovich, Sarah Lai, and Jason Cowley are in charge of the prosecution.
Mexican National faces federal marijuana smuggling charges in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Jose Angel Frias-Mendoza, 45, of Chihuahua City, Mexico appeared in federal court in Las Cruces, New Mexico on March 23 for an initial appearance on a criminal complaint charging him with possession with intent to distribute and importation of marijuana.
According to the criminal complaint, Frias-Mendoza allegedly tried to enter the United States on March 20 at the port of entry in Santa Teresa, New Mexico with 88 bundles (approximately 67.5 pounds) of marijuana hidden in the dashboard, roof, and fuel tank of the vehicle he was driving. U.S. Customs and Border Protection officers inspected the vehicle and located the hidden contraband, according to the complaint.
Frias-Mendoza is currently in custody pending a detention hearing on March 26. He faces up to five years in prison for possession with intent to distribute marijuana and five years in prison for importation of marijuana. A criminal complaint is only an accusation. A defendant is presumed innocent until proven guilty.
Homeland Security Investigations and U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorney Dustin C. Segovia is prosecuting the case.
Man and Woman Arrested, Charged with Selling Heroin Which May Have Led to the Deaths of Two IndividualsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan DiPirro, a/k/a JD, 29, of Depew, NY, and Sarah Szymanski, 28, of Cheektowaga, NY, were arrested and charged by criminal complaint with conspiracy to distribute heroin. The charge carries a maximum penalty of 20 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that according to the complaint, in October of 2019, the Lancaster Police Department, Drug Enforcement Administration, and the New York State Police Violent Gang Narcotics Enforcement Team began investigating the drug dealing activities of the defendants, who were identified as individuals who sold heroin and fentanyl in the Western New York area.
On November 2, 2019, Lancaster Police Officers, the Bowmansville Fire Company, and the Lancaster Volunteer Ambulance Corporation, responded to an emergency call at a residence in Lancaster. When first responders arrived, they discovered an individual identified as J.L. deceased. Next to J.L., officers observed a hypodermic needle containing a small amount of liquid or blood. A few days later, on November 4, 2019, officers took custody of an eyeglasses case that contained an amount of suspected controlled substances and the hypodermic needle. Testing by the Erie County Central Police Services Forensics Laboratory confirmed that the powdered substance contained a mixture of acetyl fentanyl, fentanyl, and cocaine. On February 11, 2020, the Erie County Medical Examiner's Office issued a death certificate listing the cause of death as “[a]cute mixed drug intoxication,” and identifying fentanyl and acetyl fentanyl as two of the drugs in J.L's system at that time that contributed to the drug intoxication.
Subsequent investigation determined that DiPirro was the individual J.L. contacted by cell phone, using calls, text messages, and Facebook Messenger, to purchase heroin or fentanyl. Specifically, between September 2019 and November 2, 2019, the date of his overdose death, J.L. contacted DiPirro continually using these lines of communication. During that time, J.L. overdosed from heroin and/or fentanyl on three known occasions. J.L. survived the first two overdoses, but died as a result of the third overdose.
On March 4, 2020, the Cheektowaga Police Department responded to an emergency call at a residence in Cheektowaga involving an overdose of an individual. When officers arrived, they found an individual, identified as S.L., unresponsive. Officers administered two doses of Narcan but could not revive S.L. Officers also administered cardiopulmonary resuscitation and transported S.L. to St. Joseph's Hospital. Medical personnel ultimately pronounced S.L. dead.
The investigation into S.L.'s fatal overdose revealed text messages and voice calls exchanged between S.L. and DiPirro on the date of S.L.'s death. The cause of S.L.’s death is pending.
Since February of 2020, members of DEA, Lancaster Police, New York State Police, and Depew Police have conducted three controlled purchases of suspected heroin from DiPirro and Sarah Szymanski.
“Notwithstanding the current pandemic, my Office, with all of our partners in law enforcement, will not hesitate to take action to protect the public from those who bring harm to our community,” stated U.S. Attorney Kennedy. “In this case, that harm was in the form of lethal opiates. What is particularly troubling is the fact that in January 2020, Ms. Szymanski was arrested on 3 occasions—by the Cheektowaga Police Department, the Lancaster Police Department, and the Erie County Sheriff’s Office—during one 24 hour period. Despite those arrests, she was permitted to remain at liberty, allowing her and her co-defendant to peddle this deadly poison. If that is not conclusive proof that New York State’s bail reform law as currently drafted makes our community less safe, then I don’t know what is.”
DiPirro and Szymanski made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and are being held pending detention hearings.
The complaint is the result of an investigation by the Lancaster Police Department, under the direction of Chief William J. Karn, Jr.; the Depew Police Department, under the direction of Chief Jerome Miller; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; the New York State Police Violent Gang Narcotics Enforcement Team, under the direction of Major James Hall; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Four Reservation Residents Indicted on Kidnapping and Assault ChargesRead the Press Release
United States Attorney Mark A. Klaassen announced today that Ashley Rose Yellowbear, age 27, Samuel Harold Friday, age 37, Kristen Jade Antelope, age 26, and Rusty Tso Tabaho, Sr. age 27, all residents of the Wind River Indian Reservation, were indicted by a federal grand jury on March 18, 2020, for Kidnapping and Aiding and Abetting. Yellowbear and Friday were also indicted for Assault with a Deadly Weapon with Intent to do Bodily Harm. Klaassen stated “Even in times of crisis, we must continue to enforce the law and protect our communities. Violent crime is a top priority for my office and we are working to address violence in Indian country and across Wyoming. These efforts require partnerships at every level to effectively investigate and prosecute these crimes.”
The Indictment alleges that on or about January 1, 2020, the defendants knowingly and unlawfully kidnapped a woman and a man for the purpose of assault and intimidating them to prevent reporting these acts. According to the charges, the defendants knowingly aided and abetted each other in committing the kidnapping offense. The Indictment further alleges that Yellowbear and Friday each assaulted one of the victims with a dangerous weapon, a tire-iron.
The maximum penalty upon conviction for kidnapping and aiding and abetting is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty upon conviction for assault with a deadly weapon is up to ten years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution to the victims may be ordered.
All defendants had their initial appearance before Chief United States District Court Judge Scott W. Skavdahl on March 25, 2020. Judge Skavdahl remanded the defendants to the custody of the U.S. Marshals Service pending a detention and arraignment hearing scheduled for March 30, 2020. A trial date has not yet been set.
The charges are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, with the assistance of the Bureau of Indian Affairs, Wind River Police Department.
Four Poughkeepsie Individuals Charged in White Plains Federal Court with Narcotics OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Ray Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Keith M. Corlett, Superintendent of the New York State Police (“NYSP”), and Thomas Pape, Chief of Police for the City of Poughkeepsie, announced charges today against MICHAEL NICHOLAS, a/k/a “Pop,” DARREN PARKER, a/k/a “Born,” REGINA CUMMINGS, a/k/a “Gina,” and JAQUON DANCY, a/k/a “Wiz,” with various narcotics-related offenses. During search warrant operations of NICHOLAS’s residence in Poughkeepsie, New York, law enforcement recovered approximately 15 kilograms of narcotics, including powder cocaine, heroin, crack cocaine, and approximately 1.5 kilograms of substances containing fentanyl. Three firearms were also recovered from NICHOLAS’s residence.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants trafficked in large amounts of fentanyl and other narcotics in and around Dutchess County. Fentanyl is one of the leading causes of overdose deaths and it has devastated communities across Dutchess County and the Southern District of New York. I commend our law enforcement partners in stopping those who allegedly traffic in fentanyl and other narcotics.”
DEA Special Agent in Charge Ray Donovan said: “The fact that these individuals are facing charges today demonstrates the degree of danger their alleged drug trafficking was to the City of Poughkeepsie. I commend our law enforcement partners who continue to keep our cities safe.”
NYSP Superintendent Keith M. Corlett said: “Once again, excellent police work by our federal, state and local departments has dismantled an alleged drug operation, put four allegedly dangerous individuals behind bars and seized drugs, cash and weapons. As alleged, these dealers were selling and transporting fentanyl, heroin and crack cocaine throughout the Poughkeepsie area. I applaud the hard work of the members involved in this investigation and together we will continue the fight to keep drugs off our streets.”
As alleged in the Indictments unsealed today and statements made in Court proceedings[1]:
From at least September 2018 till February 2020, MICHAEL NICHOLAS and DARREN PARKER conspired to distribute 400 grams or more of mixtures and substances containing fentanyl.
In addition, from at least January 2020 up to and including March 2020, NICHOLAS and REGINA CUMMINGS conspired to distribute 28 grams or more of crack cocaine.
Finally, in March 2020, JAQUON DANCY conspired with others to distribute 40 grams or more mixtures and substances containing fentanyl.
The defendants were arrested early this morning. Law enforcement recovered approximately 15 kilograms of narcotics and three firearms during search operations.
* * *
NICHOLAS, 33, of Poughkeepsie, New York, is charged with one count of conspiring to distribute 400 grams or more of mixtures and substances containing fentanyl, which carries a mandatory minimum of 10 years in prison and a maximum sentence of life in prison. He is also charged with one count of conspiring to distribute 28 grams or more of crack cocaine, which carries a maximum sentence of 40 years in prison.
PARKER, 51, of Poughkeepsie, New York, is charged with one count of conspiring to distribute 400 grams or more of mixtures and substances containing fentanyl, which carries a mandatory minimum of 10 years in prison and a maximum sentence of life in prison.
CUMMINGS, 51, is charged with one count of conspiring to distribute 28 grams or more of crack cocaine, which carries a mandatory minimum of five years in prison and a maximum sentence of 40 years in prison.
DANCY, 25, is charged with one count of conspiring to distribute 40 grams or more of mixtures and substances containing fentanyl, which carries a mandatory minimum of five years in prison and a maximum sentence of 40 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA, the NYSP, and the City of Poughkeepsie Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Shiva H. Logarajah is in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Indictments and the descriptions of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Federal and State Officials Launch Kentucky Coronavirus Fraud Task ForceRead the Press Release
LEXINGTON, Ky. – In response to the increased threat of fraud presented by the coronavirus, federal and state law enforcement leaders from Kentucky announced today the formation of the Kentucky Coronavirus Fraud Task Force.
The Kentucky Coronavirus Fraud Task Force is a joint federal and state partnership coordinated by Assistant United States Attorneys from both the Eastern and Western Districts of Kentucky, in partnership with experienced fraud investigators from the Federal Bureau of Investigation (FBI) and the Kentucky Attorney General’s Office. The mission of the task force is to identify, investigate, and prosecute fraud related to the ongoing coronavirus pandemic impacting Kentuckians.
“Kentucky law enforcement is united in the fight against those who seek to profit from fear during the COVID-19 national emergency,” said Robert M. Duncan, Jr. U.S. Attorney for the Eastern District of Kentucky. “Federal prosecutors in Kentucky are working closely with the FBI and the Kentucky Attorney General’s Office to identify individuals engaging in COVID-19 fraud, preying on vulnerable populations and the extraordinary anxiety caused by this public health crisis. Together, we remain committed to protecting our fellow Kentuckians from fraudsters and these truly despicable schemes.”
“We will not allow thieves to profit from fear,” said U.S. Attorney Russell Coleman. “Kentuckians should be confident that their state and federal law enforcement is steadfastly working as one to prevent those who would use this virus to exploit our families.”
"FBI Louisville stands ready to investigate scams surrounding the COVID-19 crisis. The last thing the American people need, in the middle of this pandemic, is criminals trying to exploit them for their financial gain,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “In starting this task force, FBI Louisville and its partners share a commitment to protect the American people in spite of these unprecedented circumstances."
“Those who try to capitalize on this health crisis by taking advantage of our citizens will be prosecuted to the fullest extent of the law,” said Kentucky Attorney General Daniel Cameron. “This unified effort between our office and our federal partners should signal to fraudsters that we will take aggressive action against them for targeting Kentuckians during this pandemic.”
The task force will review and investigate credible leads of fraud associated with the coronavirus pandemic, regardless of the loss amount, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens, and schemes that endanger health and safety. Federal prosecutors from the Eastern and Western Districts of Kentucky will meet and confer with the FBI and Office of the Kentucky Attorney General on a regular basis to prioritize cases and surge resources where needed.
In the Eastern District of Kentucky, Assistant U.S. Attorney Paul McCaffrey is serving as the COVID-19 Fraud Coordinator. Assistant United States Attorney David Weiser is serving as the COVID-19 Fraud Coordinator for the Western District of Kentucky.
As our nation continues to face the spread of COVID-19, the critical mission of the U.S. Department of Justice must and will continue, as we work together to safeguard our public health system, protect the safety and security of the citizens of Kentucky, and reassure the public that law enforcement is enduring to meet its mission. The Department of Justice will be a nationwide partner in bringing aggressive action against scams, hoarding, and price gouging for critical medical supplies.
Some examples of COVID-19 scams include:
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are also contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are also creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as "research reports," make predictions of a specific "target price," and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
- Price Gouging scams: When sellers and/or retailers sell or rent an item for a price “which is grossly in excess of the price prior to the declaration” per KRS 367.374. Goods and services included in this prohibition include consumer food items; goods or services used for emergency cleanup; emergency supplies; medical supplies; home heating oil; building materials; housing; transportation, freight, and storage services; and gasoline or other motor fuels.
- Other scams include fraudsters claiming to work for the government or banks/credit cards and offering assistance for student loan relief, foreclosure or eviction relief, unemployment assistance, debt relief, and direct financial assistance, like government checks.
U.S. Attorney Coleman, U.S. Attorney Duncan and Attorney General Cameron urge everyone, especially those most at risk of serious illness, to avoid these and similar scams by taking the following steps:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use "cdc.com" or "cdc.org" instead of "cdc.gov."
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID- 19 before giving. Remember, an organization may not be legitimate even if it uses words like "CDC" or "government" in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of "investment opportunities" tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
- For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
If you believe you have been a target or victim of a scam or fraud, please report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
Kentuckians wishing to report online scams and fraud can contact the Federal Bureau of Investigation at https://www.ic3.gov/default.aspx
To file a price gouging complaint, visit ag.ky.gov/pricegouging or call the Consumer Protection Hotline at 1-888-432-9257.
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Federal and State Officials Launch Kentucky Coronavirus Fraud Task ForceRead the Press Release
LOUISVILLE, Ky. – In response to the increased threat of fraud presented by the coronavirus, federal and state law enforcement leaders from Kentucky announced today the formation of the Kentucky Coronavirus Fraud Task Force.
The Kentucky Coronavirus Fraud Task Force is a joint federal and state partnership coordinated by Assistant United States Attorneys from both the Eastern and Western Districts of Kentucky, in partnership with experienced fraud investigators from the Federal Bureau of Investigation (FBI) and the Kentucky Attorney General’s Office. The mission of the task force is to identify, investigate, and prosecute fraud related to the ongoing coronavirus pandemic impacting Kentuckians.
“We will not allow thieves to profit from fear,” said Western District of Kentucky U.S. Attorney Russell Coleman. “Kentuckians should be confident that their state and federal law enforcement is steadfastly working as one to prevent those who would use this virus to exploit our families.”
“Kentucky law enforcement is united in the fight against those who seek to profit from fear during the COVID-19 national emergency,” said Robert M. Duncan, Jr. U.S. Attorney for the Eastern District of Kentucky. “Federal prosecutors in Kentucky are working closely with the FBI and the Kentucky Attorney General’s Office to identify individuals engaging in COVID-19 fraud, preying on vulnerable populations and the extraordinary anxiety caused by this public health crisis. Together, we remain committed to protecting our fellow Kentuckians from fraudsters and these truly despicable schemes.”
"FBI Louisville stands ready to investigate scams surrounding the COVID-19 crisis. The last thing the American people need, in the middle of this pandemic, is criminals trying to exploit them for their financial gain,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “In starting this task force, FBI Louisville and its partners share a commitment to protect the American people in spite of these unprecedented circumstances."
“Those who try to capitalize on this health crisis by taking advantage of our citizens will be prosecuted to the fullest extent of the law,” said Kentucky Attorney General Daniel Cameron. “This unified effort between our office and our federal partners should signal to fraudsters that we will take aggressive action against them for targeting Kentuckians during this pandemic.”
The task force will review and investigate credible leads of fraud associated with the coronavirus pandemic, regardless of the loss amount, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens, and schemes that endanger health and safety. Federal prosecutors from the Eastern and Western Districts of Kentucky will meet and confer with the FBI and Office of the Kentucky Attorney General on a regular basis to prioritize cases and surge resources where needed.
In the Eastern District of Kentucky, Assistant U.S. Attorney Paul McCaffrey is serving as the COVID-19 Fraud Coordinator. Assistant United States Attorney David Weiser is serving as the COVID-19 Fraud Coordinator for the Western District of Kentucky.
As our nation continues to face the spread of COVID-19, the critical mission of the U.S. Department of Justice must and will continue, as we work together to safeguard our public health system, protect the safety and security of the citizens of Kentucky, and reassure the public that law enforcement is enduring to meet its mission. The Department of Justice will be a nationwide partner in bringing aggressive action against scams, hoarding, and price gouging for critical medical supplies.
Some examples of COVID-19 scams include:
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are also contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are also creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as "research reports," make predictions of a specific "target price," and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
- Price Gouging scams: When sellers and/or retailers sell or rent an item for a price “which is grossly in excess of the price prior to the declaration” per KRS 367.374. Goods and services included in this prohibition include consumer food items; goods or services used for emergency cleanup; emergency supplies; medical supplies; home heating oil; building materials; housing; transportation, freight, and storage services; and gasoline or other motor fuels.
- Other scams include fraudsters claiming to work for the government or banks/credit cards and offering assistance for student loan relief, foreclosure or eviction relief, unemployment assistance, debt relief, and direct financial assistance, like government checks.
U.S. Attorney Coleman, U.S. Attorney Duncan and Attorney General Cameron urge everyone, especially those most at risk of serious illness, to avoid these and similar scams by taking the following steps:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use "cdc.com" or "cdc.org" instead of "cdc.gov."
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID- 19 before giving. Remember, an organization may not be legitimate even if it uses words like "CDC" or "government" in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of "investment opportunities" tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
- For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
If you believe you have been a target or victim of a scam or fraud, please report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
Kentuckians wishing to report online scams and fraud can contact the Federal Bureau of Investigation at https://www.ic3.gov/default.aspx
To file a price gouging complaint, visit ag.ky.gov/pricegouging or call the Consumer Protection Hotline at 1-888-432-9257.
Ecuadorian National Sentenced for Illegal Reentry after DeportationRead the Press Release
BOSTON – An Ecuadorian national was sentenced today in federal court in Boston for illegally reentering the United States after being deported.
Luis Ricardo Aucacama-Calle was sentenced by Chief U.S. District Court Judge F. Dennis Saylor IV to “time-served” (approximately 13 months) to be followed by one year of supervised release. Aucacama-Calle, who pleaded guilty in November 2019, is now subject to removal proceedings.
In February 2019, Aucacama-Calle was encountered by immigration officials at the Barnstable House of Corrections. At that time, Aucacama-Calle was serving a one year sentence imposed by the Barnstable District Court for operating under the influence of alcohol. Aucacama-Calle was interviewed, admitted his alienage and two previous removals (2015 and 2016). His fingerprints were obtained to confirm his identity. Upon completion of his state sentence, Aucacama-Calle was transferred into federal custody where he has remained.
United States Attorney Andrew E. Lelling and Marcos D. Charles, Acting Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
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Chemical Importer and Exporter in Bethlehem Agrees to Pay $450,000 to Resolve Allegations it Failed to Notify the Drug Enforcement Administration of Certain Shipments of ChemicalsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Ungerer & Company, a privately-owned company in the flavor and fragrance business operating in Bethlehem, PA, has agreed to pay $450,000 and to commit to remedial measures to resolve allegations that it failed to make required notifications to the Drug Enforcement Administration (DEA) about certain international shipments of listed chemicals that can be used to manufacture illicit controlled substances.
Federal law and regulations require companies registered with the DEA to notify the agency when it imports or exports certain chemicals that can be used to manufacture illicit controlled substances. Those chemicals include anthranilic acid and benzaldehyde, which can be used to manufacture methamphetamine. A company that imports and exports such “listed” chemicals is generally required to notify the DEA of the shipments, the type of chemical, and the amount shipped. After the shipment is completed, the company is generally required to once again notify the DEA of those details to account for any cancellations or changes, and to ensure the agency has accurate information on the shipments that have occurred.
According to the allegations in the settlement, the DEA conducted scheduled investigations of Ungerer and as a result of one of those scheduled investigations, the DEA found violations of the reporting obligations that apply after completion of the shipments, notified Ungerer of the violations, educated company representatives on the requirements, and issued letters of admonition. But when the DEA conducted the next scheduled investigation, the settlement alleges that the DEA found that, between January 2013 and the present, Ungerer had imported and exported listed chemicals on a number of occasions and failed to provide information to the DEA on the date and quantity actually imported and exported within 30 days after certain transactions. There are no allegations in the settlement that the chemicals were diverted for illicit purposes.
In addition to the $450,000 payment, Ungerer has entered into a three-year administrative agreement with the DEA under which it has committed to implement certain remedial measures. For example, the agreement requires Ungerer to submit certain delinquent forms on its shipments, requires Ungerer to implement a system and train its employees to ensure that these issues do not arise again, and requires Ungerer to submit quarterly certifications to the DEA that it is fully compliant with these reporting obligations.
“While there are legitimate reasons to ship these listed chemicals to international customers, it is critical that the DEA has the information it needs to track the shipments and prevent diversion of the chemicals for illicit production of controlled substances,” said U.S. Attorney McSwain. “This settlement shows how important it is for companies and individuals to uphold their responsibilities and comply with the reporting requirements, which are designed to protect the residents of the Eastern District and beyond.”
“Ungerer & Company has an obligation as a DEA registrant to notify the agency of international shipments of listed chemicals. If illegally diverted, listed chemicals can be used to manufacture dangerous drugs such as illicit fentanyl and methamphetamine,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The vast majority of listed chemicals are used for legitimate reasons. However, part of the DEA’s mission in protecting the public is ensuring that the distribution of these chemicals is properly reported and tracked.”
This investigation was conducted with the Philadelphia Field Division of the DEA and the Import/Export and Chemical Section in the DEA’s Diversion Control Division. For the United States Attorney’s Office, Assistant United States Attorney Anthony D. Scicchitano handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
California Man Pleads Guilty to Violating Federal Firearms LawRead the Press Release
A man who was prohibited from possessing a firearm pled guilty March 17, 2020, in federal court in Sioux City.
Meher Aboolian, 32, from Glendale, California, was convicted of possession of a firearm by a prohibited person. Aboolian was previously convicted of the following crimes which prohibit him from possessing firearms: Burglary, on or about January 15, 2008; False Checks, on or about May 8, 2008; and Felony Possession of a Controlled Substance for Sale, on or about December 22, 2016, all in the State of California, Los Angeles County Court.
At the plea hearing, evidence showed that on November 3, 2019, the vehicle Aboolian was driving was stopped by law enforcement. During a search of Aboolian, officers found, concealed under Aboolian’s hat, drug paraphernalia and pills for which Aboolian did not have a prescription. A search of the vehicle revealed additional drug paraphernalia, and items to mask the smell of illegal narcotics. Officers also located a stolen gun, namely a Smith & Wesson Model 669, 9mm pistol, with no visible serial number, and a loaded magazine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Aboolian remains in custody of the United States Marshal pending sentencing. Aboolian faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and not more than 3 years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4003. Follow us on Twitter @USAO_NDIA.
Buffalo Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Keith Cooley, 22, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to distribute 28 grams or more of crack cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Charles J. Volkert, who is handling the case, stated that between March and May 16, 2019, the defendant conspired with others to distribute crack cocaine in the Silver Creek area.
Between April 3 and May 9, 2019, investigators conducted six controlled purchases of crack cocaine from either the defendant or a co-defendant. On May 16, 2019, investigators executed a search warrant at an apartment on Central Avenue in Silver Creek. They recovered digital scales containing cocaine residue, a small amount of illegal narcotics, and approximately $700. Cooley was arrested at the scene.The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff's Office Lieutenant Ronald Lott; the Evans Police Department, under the direction of Chief Douglas J. Czora; and the New York State Police, under the direction of Major James Hall.
Sentencing is scheduled for July 14, 2020, before Judge Sinatra.
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Armed robber admits guilt in bar heist that left good-Samaritan soldier woundedRead the Press Release
SAVANNAH, GA: A Savannah man has admitted taking part in the March 2019 robbery of a bar that left a U.S. Army serviceman wounded.
Anthony Curtis Raife, 24, pled guilty to Possessing a Short-Barreled Shotgun in Furtherance of a Violent Crime in U.S. District Court, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries penalty of a minimum of 10 years in prison and of up to life in prison, followed by a period of supervised release. There is no parole in the federal system.
“Violent criminals have no place in our community except behind bars,” said U.S. Attorney Christine. “It’s fortunate that the good Samaritan who attempted to intervene in this robbery has recovered, and that his actions and those of our law enforcement partners helped take this violent criminal off the street.”
According to court documents and testimony, Raife and another man robbed the Brewer’s Sports Pub and Grill on Ogeechee Road on March 24, 2019. Both were armed. Raife carried a short-barreled shotgun that he pointed at patrons during the robbery. A bar customer, who was an active-duty U.S. Army serviceman, witnessed the robbery and helped other patrons escape. The serviceman then went unarmed to the rear of the store and punched Raife in the face, knocking the gun out of Raife’s hands. In response, the serviceman was shot by the other robber. Both robbers then fled; the soldier was treated and recovered.
Raife was located and arrested.
Anyone with information concerning the robbery is encouraged to call the FBI at 912-790-3100 or the Chatham County Police Department Tip Line at 912-650-6161.
“This case exemplifies the danger posed to innocent people when criminals use weapons to commit crimes in places of business,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We are fortunate that a brave soldier did not lose his life because of this brazen act of violence. We are also grateful for his actions and the actions of our local law enforcement partners who were instrumental in bringing this suspect to justice.”
“From the moment our first responding officers arrived on the scene until Mr. Raife was captured, the members of the Chatham County Police Department worked tirelessly to bring him to justice,” said Chatham County Police Chief Jeffrey Hadley. “Like every case we investigate, this was a team effort between officers who responded and secured the scene, forensic officers who meticulously gathered physical evidence, and detectives who investigated numerous leads until Mr. Raife was apprehended. I’m very proud of our efforts, and proud that are streets are safer with Mr. Raife behind bars.”
The case was investigated by the FBI and the Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
AG Shapiro and U.S. Attorney Brady Joint Op-Ed on Protecting Consumers with New COVID19 Fraud Task ForceRead the Press Release
During these difficult times, the last thing the people of Pennsylvania need are individuals, retailers, or wholesalers taking advantage of them. Gouging prices of household essentials or scamming people out of money for "at home" coronavirus kits that don’t exist isn’t just a disgusting practice – it is illegal.
In response to the COVID-19 pandemic, we created a first-in-the-nation operation – the Western Pennsylvania COVID-19 Fraud Task Force – to protect western Pennsylvanians from fraud related to this crisis. We are bringing together federal and state resources to stop fraudsters from profiting off misinformation in this uncertain time.
The breadth of fraud and scams we are seeing requires a similarly broad law enforcement coalition to respond. We have assembled a team that combines the necessary expertise and resources from critical federal and state partners.
Some of the scams we anticipate, or are already seeing include: individuals selling fake vaccines or cures for COVID-19; websites selling fake supplies, including face masks and medical equipment; individuals spoofing the phone numbers of health organizations who demand payment over the phone; and individuals requesting donations for fake charities.
We ask you to report any instances of these scams to our Task Force. We will share your reports with the appropriate agencies across state and federal governments and pool our resources to hold bad actors accountable. Our goal is to protect you by investigating jointly and taking action decisively.
Already, the Office of Attorney General has received nearly 2,000 complaints about price gouging, including many instances in western Pennsylvania:
A drug store in Monroeville was charging $21 for a 12-roll pack of toilet paper; a grocery store in Robinson Township charging $51.33 for a pack of toilet paper; and a grocery store in Pittsburgh increased its prices on a 12-roll pack of Charmin to $19.39. This is disgraceful.
Other scams have been reported to the U.S. Attorney’s Office: a physician marketing unapproved COVID-19 test kits for $49; fraudsters getting seniors’ social security numbers by posing as Medicare representatives; and fraudulent emails with malicious links that download malware to steal banking and other sensitive personal information.
Our goals are clear. First, we want each of you to receive consistent and timely information about scams to protect you and your loved ones against current or potentially active efforts. To do that, we will provide clear and consistent warnings about COVID-19 fraud, including counterfeit goods, fake remedies, malicious websites and apps, and disingenuous charities. We will keep you informed about what we are seeing, and we will give you practical tips to protect yourself.
Second, we plan to quickly and efficiently combat scam operations to bring justice to individuals who have already been affected, and prevent the spread of a scam’s misinformation and harm. Whether criminally or civilly, we must stop those who seek to exploit this crisis. We will shut down websites, send out cease-and-desists letters, seize counterfeit goods, and ensure that these individuals are held accountable for their crimes.
If you see anything that resembles these scams, call 888-C19-WDPA (219-9372) or email us at [email protected] or [email protected]. We will investigate every report and take legal action if necessary to serve justice.
We are here to protect and serve, but there are also steps you can take to protect yourself. When trying to identify a scam: independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19. Check the websites and email addresses of the entity offering information, products or related services. The Centers for Disease Control and Prevention’s website is www.cdc.gov but scammers will use "cdc.com" or some other similar address.
Ignore any claims of a vaccine or cure that come from an email, phone call, or unsolicited contact. If a vaccine is announced, you will hear about it from legitimate news sources and government agencies. Additionally, visit the U.S. Securities and Exchange Commission (https://www.sec.gov/) to verify offers from any company that contacts you about potential investment opportunities related to COVID-19.
Please remember that government agencies will not call you to ask for your social security number, financial information or any direct payment. Until you verify, do not give out such information over the phone or email. Rest assured: during these difficult times our agencies remain on the job and vigilant. Through this joint Western Pennsylvania COVID-19 Task Force, we are bringing together state and federal resources to more effectively combat those seeking to exploit Pennsylvanians. This is a time to band together, not give in to unlawful greed.
We ask you to report any price-gouging, scam, or other COVID-19-related fraud to our Task Force. Call our dedicated hotline at 888-C19-WDPA (219-9372) or email us at [email protected] or [email protected]. Outside of Pennsylvania, report to the National Center for Disaster Fraud Hotline: 866-720-5721 or [email protected].
24 March 2020
U.S. Attorneys Justin Herdman and David DeVillers, Ohio Attorney General and Pharmacy Board issue joint statement regarding State of Ohio Board of Pharmacy ruleRead the Press Release
On Sunday, March 22, the State of Ohio Board of Pharmacy held an emergency Sunday session in order to issue a rule prohibiting pharmacists from dispensing chloroquine or hydroxychloroquine for COVID-19 unless a person has tested positive for the virus or is otherwise approved by the pharmacy board’s executive director.
Today, U.S. Attorneys Justin Herdman and David DeVillers, Ohio Attorney General David Yost and the State of Ohio Board of Pharmacy, issued a joint statement confirming that they are aware of the allegations leading to the Board of Pharmacy order and declared a joint commitment to investigating any violations of state or federal law committed by any individuals or entities, including healthcare professionals.
“These are extraordinary times for the world, our nation, and the great state of Ohio. While we are seeing the absolute best of our healthcare professionals as they help to address the COVID-19 crisis, we will remain vigilant to address any self-serving behavior by any member of the medical community. Be assured that we will do our due diligence in holding accountable anyone who may be prescribing outside a legitimate medical purpose. Where we find doctors or others who are abusing their professional licenses to help themselves or associates, we will move swiftly to identify and prosecute any wrongdoing that is a violation of federal or state law. We are committed to pursuing all remedies to address misconduct associated with the allegations leading to the Board of Pharmacy action, including seeking criminal penalties where appropriate.”
On March 22, 2020, Governor Mike DeWine authorized the State of Ohio Board of Pharmacy to file emergency rule 4729-5-30.2 of the Administrative Code.
Read the rule here:
Requirements for Dispensing or Selling Chloroquine and Hydroxychloroquine Update 7.30.2020
U.S. Attorneys David DeVillers and Justin Herdman, Ohio Attorney General and Pharmacy Board Director issue joint statement regarding state pharmacy ruleRead the Press Release
COLUMBUS, Ohio – The United States Attorneys for the Southern and Northern Districts of Ohio, the Ohio Attorney General and the Ohio Board of Pharmacy Executive Director issued a joint statement today regarding the State of Ohio Board of Pharmacy rule prohibiting pharmacists from dispensing chloroquine or hydroxychloroquine for COVID-19 unless a person has tested positive for the virus or is otherwise approved by the pharmacy board’s executive director.
U.S. Attorney David DeVillers, U.S. Attorney Justin Herdman, Ohio Attorney General Dave Yost and Ohio Board of Pharmacy Executive Director Steven Schierholt confirmed awareness of the allegations leading to the state pharmacy order and stated:
“These are extraordinary times for the world, our nation, and the great state of Ohio. While we are seeing the absolute best of our healthcare professionals as they help to address the COVID-19 crisis, we will remain vigilant to address any self-serving behavior by any member of the medical community. Be assured that we will do our due diligence in holding accountable anyone who may be prescribing outside a legitimate medical purpose. Where we find doctors or others who are abusing their professional licenses to help themselves or associates, we will move swiftly to identify and prosecute any wrongdoing that is a violation of federal or state law. We are committed to pursuing all remedies to address misconduct associated with the allegations leading to the Board of Pharmacy action, including seeking criminal penalties where appropriate.”
On March 22, 2020, Governor Mike DeWine authorized the State of Ohio Board of Pharmacy to file emergency rule 4729-5-30.2 of the Administrative Code, which reads:
(A) Unless otherwise approved by the board’s executive director, no prescription for chloroquine or hydroxychloroquine may be dispensed by a pharmacist or sold at retail by a licensed terminal distributor of dangerous drugs unless all the following apply:
(1) The prescription bears a written diagnosis code from the prescriber; and
(2) If written for a COVID-19 diagnosis, the diagnosis has been confirmed by a positive test result, which is documented on the prescription and both of the following apply:
(a) The prescription is limited to no more than a fourteen-day supply; and
(b) No refills may be permitted unless a new prescription is furnished.
Prescriptions for either presumptive positive patients or prophylactic use of chloroquine or hydroxychloroquine related to COVID-19 is strictly prohibited unless otherwise approved by the board’s executive director in consultation with the board president, at which time a resolution shall issue.
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U.S. Attorney urges the public to report suspected COVID-19 fraudRead the Press Release
ATLANTA - U.S. Attorney Byung J. “BJay” Pak is urging the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“The Department of Justice will take swift action to shut down fraud schemes related to COVID-19,” said U.S. Attorney Byung J. “BJay” Pak. “We will use every resource at our disposal to detect these schemes and prosecute those who use this pandemic to perpetrate fraud.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, 2020, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. Assistant U.S. Attorney Russell Phillips was named the Northern District of Georgia Coronavirus Fraud Coordinator.
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 about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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.
U.S. Attorney announces $83 million to support school safetyRead the Press Release
Seattle – U.S. Attorney Brian T. Moran of the Western District of Washington today announced that more than $83 million in Department of Justice grants is available to help communities improve school security and protect students, teachers and faculty from threats of violence.
“At a time when we are appropriately focused on a health crisis, we still must look ahead to the difficult problems facing our community and especially our children,” said U.S. Attorney Moran. “I urge school administrators, teachers and district leaders to review these grant offerings and take time now to apply for these important federal resources.”
“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” 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 challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to tighten school security and improve the reporting of threats.
A number of funding opportunities for school safety are currently open, with another opening in the near future:
Research and Evaluation on School Safety https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $5 million Deadline 4/13/2020STOP Act School Violence Program (FY20) https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $71.4 million Deadline 4/13/2020Strategies to Support Children Exposed to Violence: https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926
Total Available $7 million Deadline 4/27/2020For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
U.S. Attorney Urges Public to Report Suspected COVID-19 FraudRead the Press Release
DES MOINES, Iowa – United States Attorney Marc Krickbaum of the Southern District of Iowa today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline 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.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities.
“The U.S. Attorney’s Office has appointed a coronavirus coordinator, and we are working with Attorney General Tom Miller, County Attorneys such as John Sarcone, and others across Iowa to identify cases of fraud and abuse,” said U.S. Attorney Krickbaum. “If anyone uses this crisis to exploit others and line their own pockets, we will hold them accountable.”
Some examples of these schemes include:• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
U.S. Attorney David J. Freed Urges the Public to Report Suspected Covid-19 FraudRead the Press Release
HARRISBURG – U.S. Attorney David J. Freed of the Middle District of Pennsylvania today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline 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.
“As with any crisis, there are criminals who will try to use the situation to their advantage,” said U.S. Attorney Freed. “All of law enforcement is united to help our fellow citizens during this difficult time. The NCDF Hotline will allow us to get the jump on fraudsters and shut them down as quickly as possible.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud;
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention;
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received;
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations; and
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Middle District of Pennsylvania’s Coronavirus Fraud Coordinator is AUSA Phillip Caraballo.
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 about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
# # #
U.S. Attorney Announces More Than $83 Million Available to Support School SafetyRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez today announced that more than $83 million in Department of Justice grants is available to help communities improve school security and protect students, teachers and faculty from threats of violence.
“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” 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 challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“The ability to protect our schools hinges upon the lessons learned during previous crises,” said U.S. Attorney Maria Chapa Lopez. “The funding opportunities announced today will provide administrators, educators, counselors, public safety practitioners, parents and students themselves, with essential tools to make our schools safer.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to tighten school security and improve the reporting of threats.
A number of funding opportunities for school safety are currently open, with another opening in the near future:
Research and Evaluation on School Safety
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $5 million Deadline 4/13/2020
STOP Act School Violence Program (FY20)
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $71.4 million Deadline 4/13/2020
Strategies to Support Children Exposed to Violence
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926
Total Available $7 million Deadline 4/27/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
U.S. Attorney Announces More Than $163 Million Available to Fight Addiction CrisisRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” 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 challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“Additional resources are critical in stemming the tide of substance abuse and addiction,” stated U.S. Attorney Maria Chapa Lopez. “The funding opportunities announced today allows for increased partnerships among key stakeholders, enhanced community engagement, and the development and delivery of better strategies to combat this crisis.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million Deadline 5/14/2020
Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million Deadline 5/21/2020
Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million Deadline: 5/4/2020
Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million Deadline 4/8/2020 (Extended)
Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1 million Deadline 5/5/2020
Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million Deadline 4/13/2020 (Extended)
Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million Deadline 4/13/2020
Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million Deadline 4/20/2020
Research and Evaluation on Drugs and Crime
https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million Deadline 4/20/2020
Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million Deadline 4/6/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
The Justice Department and the Federal Trade Commission Announce Expedited Antitrust Procedure and Guidance for Coronavirus Public Health EffortsRead the Press Release
The U.S. Department of Justice Antitrust Division and the Federal Trade Commission (FTC) today issued a joint statement detailing an expedited antitrust procedure and providing guidance for collaborations of businesses working to protect the health and safety of Americans during the COVID-19 pandemic.
The expedited procedure notes, for example, that health care facilities may need to work together in providing resources and services to assist patients, consumers, and communities affected by the pandemic and its aftermath. Other businesses may need to temporarily combine production, distribution, or service networks to facilitate production and distribution of COVID-19-related supplies.
Under the expedited procedure for COVID-19 public health projects, the agencies will respond to all COVID-19-related requests, and resolve those addressing public health and safety, within seven calendar days of receiving all information necessary to vet these proposals. The statement sets out the instructions for businesses wishing to take advantage of this procedure.
The expedited COVID-19 procedure offers quicker review than existing FTC and Justice Department programs that are designed to provide guidance to businesses concerned about the legality of proposed conduct under the antitrust laws. The FTC’s “Staff Advisory Opinion” procedure and DOJ’s “Business Review Letter” procedure allow any firm, individual, or group of firms or individuals to submit a proposal to the agencies and to receive a statement advising whether the agencies would challenge the proposed activity under the antitrust laws.
“The Antitrust Division recognizes the importance of providing expeditious clarity on any antitrust obligations in this challenging time,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Our expedited Business Review Letter procedure will help facilitate businesses that want to work quickly to address the urgent public health and economic needs associated with COVID 19.”
“Under these extraordinary circumstances, we understand that businesses collaborating on public health initiatives may need an expedited response from U.S. antitrust authorities,” said FTC Chairman Joe Simons. “We are committed to doing everything we can to help with these efforts, while continuing to aggressively enforce the antitrust laws.”
The antitrust laws accommodate procompetitive collaborations among competitors. In their joint statement, the FTC and the Department of Justice listed several types of collaborative activities designed to improve the health and safety response to the pandemic that would likely be consistent with the antitrust laws.
At the same time, the agencies also stressed that they will not hesitate to hold accountable those who try to use the pandemic to engage in antitrust violations. In addition, the Department of Justice will criminally prosecute conduct such as price-fixing, bid-rigging, or market allocation.
The expedited procedure requires that an applicant provide the FTC or Justice Department a written description of the proposal, including the parties that would be involved in the effort or activity, and the name and contact information of a person from whom the agencies could obtain additional information. This expedited procedure is for use solely for coronavirus-related public health efforts and may be invoked at the option of the requestor, in lieu of the agencies’ standard procedures for handling requests for advice.
The agencies also committed to expedite requests under the National Cooperative Research and Production Act for flexible treatment of certain standard development organizations and joint ventures.
The statement also notes that the FTC and the Justice Department are addressing actions by individuals and businesses to take advantage of COVID-19 through other fraudulent and illegal schemes. Anyone with information or concerns about this sort of conduct, or other COVID-19-related complaints, should contact the FTC’s Consumer Response Center at 1-877-382-4357 or the National Center for Disaster Fraud Hotline (1-866-720-5721) or e-mail ([email protected]). More information on the FTC’s guidance on potential fraud, deceptive practices, and scams is available here, and to report a complaint go to www.ftc.gov/complaint.
The Department of Justice Files Statement of Interest in Title IX Women's Equal Opportunities CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in federal court in Connecticut against the Connecticut Interscholastic Athletic Conference (CIAC) policy that requires biological males to compete against biological females — despite the real physiological differences between the sexes — if the male is a transgender individual who publicly identifies with the female gender.
“In our pluralistic society we generally try to accommodate how individuals desire to live their lives up to the point where those desires impinge on the other people’s rights,” said Attorney General William P. Barr. “Allowing biological males to compete in all-female sports deprives women of the opportunity to participate fully and fairly in sports and is fundamentally unfair to female athletes. Sports are an important part of education and character development and provide an arena where individual discipline can result in achievement and recognition. The purpose of all-female athletics is to ensure that women have an equal opportunity to participate, compete and excel in this important part of life. Title IX has been a major step forward in the long fight to achieve this equality. As reflected in Title IX, the basis for single-sex athletics, is rooted in the reality of biological differences between the sexes. Clearly then, eligibility to participate on a single-sex team must be based on objective biological fact. Girls should not be forced, through the dismantling of Title IX, to be sidelined in their own sports.”
Title IX and its implementing regulations prohibit discrimination solely “on the basis of sex,” not on the basis of transgender status, and therefore neither require nor authorize CIAC’s transgender policy. One of Title IX’s core purposes is to ensure that women have an “equal athletic opportunity” to participate in school athletic programs. Schools realize that purpose primarily by establishing separate athletic teams for men and women and by ensuring that those teams are on equal footing. Because of the physiological differences between men and women, the existence of women’s sports teams permits women to participate more fully in athletics than they otherwise could.
Under CIAC’s interpretation of Title IX, however, schools may not account for the real physiological differences between men and women. Instead, schools must have certain biological males — namely, those who publicly identify as female — compete against biological females. In doing so, CIAC deprives those women of single-sex athletic competitions and the opportunity to compete on equal athletic footing.
Six Erie Men Indicted in Large-Scale International Cocaine and Heroin Trafficking SchemeRead the Press Release
ERIE, Pa. - Six residents of Erie, Pennsylvania, have been indicted by a federal grand jury in Erie on federal drug and firearms charges relating to an international drug trafficking conspiracy, United States Attorney Scott W. Brady announced today.
The 14-count Indictment, returned on March 10 and unsealed today, named Abimael Arroyo-Garcia aka Pepo, Orlando Arroyo-Figueroa aka Lindin, Braulio Arroyo-Figueroa aka Sami, Jonathan Roman Vargas aka Mimo, Alberto Arroyo-Amaro, and Brayan Oma Arroyo-Amaro, as defendants.
According to the Indictment presented to the court, from November 2017 through February 2020 these defendants operated a conspiracy, with others known and unknown to the grand jury, to ship large quantities of cocaine and heroin from Puerto Rico for distribution in Erie, Pennsylvania. The indictment also alleges that on February 10, 2020, Vargas knowingly carried a Beretta 9mm handgun, during and in relation to a drug trafficking crime. On February 10, 2020, investigators seized approximately $250,000 in cocaine destined for Erie from Puerto Rico as part of this conspiracy.
"Through this coordinated effort between federal and state agencies, we disrupted a significant international drug trafficking organization which had been supplying cocaine and heroin to the Erie area for years," said U.S. Attorney Brady. "We want the people of Erie to know that the men and women of law enforcement continue to serve you every day and protect you from drug dealers who poison our communities."
"The culmination of this successful investigation validates the dedication and combination of investigators and resources combatting drug trafficking in the Erie area," said Captain Kreg S. Rodrigues, Director of the Drug Law Enforcement Division of the Pennsylvania State Police, Bureau of Criminal Investigation. "Drug dealers will be held accountable for their actions. The Pennsylvania State Police remains committed to the drug enforcement mission and will continue to partner with the Federal, state and local agencies by working together toward the common goal of improving the quality of life in our communities."
"The Postal Inspection Service is dedicated to protecting the American public," said Acting Inspector in Charge James Giehl. "One of the ways we fulfill this mission is by working tirelessly with other law enforcement agencies in operations just like this one to keep dangerous drugs out of the communities we serve."
The law provides for a maximum total sentence of life imprisonment, a fine of $16,000,000, or both for Orlando Arroyo-Figueroa; life imprisonment, a fine of $13,250,000, or both for Jonathan Roman Vargas; life imprisonment, a fine of $10,000,000, or both for Abimael Arroyo-Garcia; life imprisonment, a fine of $7,000,000, or both for Braulio Arroyo-Figueroa; and life imprisonment, a fine of $5,000,000, or both for Alberto Arroyo-Amaro and Brayan Oma Arroyo-Amaro. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Homeland Security Investigations and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Seven Defendants Charged in Manhattan Federal Court with Committing Murder, Robbery, Narcotics, and Firearms OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Superseding Indictment charging NAZEEM FRANCIS, a/k/a “Naz,” JONATHAN COLON, a/k/a “Johnny Blaze,” a/k/a “JB,” JULIO OZUNA, a/k/a “JJ,” a/k/a “Josh Balla,” a/k/a “Chocolate,” PRINCE GAINES, a/k/a “Poodie,” ERICK OLEAGA, a/k/a “E.D.,” VICTOR MARTINEZ, and KHALIL SUGGS, a/k/a “KI,” with crimes including murder, robbery, robbery conspiracy, narcotics distribution conspiracy, and firearms offenses.
Five defendants were arrested today and will be presented this afternoon before United States Magistrate Judge Sarah L. Cave. Two defendants were already in custody and will be presented at a later date. The case has been assigned to United States District Judge Mary Kay Vyskocil.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged in the indictment, the defendants brought violence and drugs to the streets of the Bronx. Now, thanks to our outstanding law enforcement partners at the FBI and the NYPD, these defendants face charges in federal court.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: "This investigation illustrates the extremes violent gang members will go to, all in the pursuit of making easy money. The arrests and announcement today also demonstrate that while much of the world is rightly slowing down, FBI special agents and detectives on the New York FBI Metro Safe Streets Gang Task Force will continue the extremely critical work of keeping criminals from putting more lives in danger."
According to the allegations in the Superseding Indictment[1] unsealed today in Manhattan federal court:
On or about September 3, 2018, FRANCIS, COLON, and OZUNA aided and abetted the shooting and killing of Christopher Pierce in the Bronx, New York, following the attempted robbery of Pierce’s friend, a marijuana dealer. FRANCIS, COLON, and OZUNA are also charged with attempted robbery and robbery conspiracy based on their participation in the botched robbery that led to Pierce’s death.
COLON, OZUNA, GAINES, OLEAGA, MARTINEZ, and SUGGS are charged with participating in a conspiracy to distribute cocaine and crack cocaine from in or about 2018 through in or about March 2020.
On or about November 18, 2019, SUGGS brandished a firearm, and aided and abetted the same, in furtherance of the drug trafficking conspiracy.
On or about January 19, 2020, OZUNA robbed an individual at gunpoint. OZUNA is charged with robbery, robbery conspiracy, and brandishing a firearm based on his participation in that gunpoint robbery.
* * *
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the FBI’s Safe Streets Task Force, as well as NYPD’s 43rd Police Precinct and Bronx Narcotics.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Allison Nichols and Jamie Bagliebter are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
COUNT
CHARGE
DEFENDANTS
MAX. PENALTY
Count One
Murder through the Use of a Firearm
18 U.S.C. §§ 924(j) and 2
NAZEEM FRANCIS
JONATHAN COLON
JULIO OZUNA
Death or life imprisonment;
Mandatory minimum of five years’ imprisonment
Count Two
Attempted Robbery
18 U.S.C. §§ 1951 and 2
NAZEEM FRANCIS
JONATHAN COLON
JULIO OZUNA
20 years’ imprisonment
Count Three
Robbery Conspiracy
18 U.S.C. § 1951
NAZEEM FRANCIS
JONATHAN COLON
JULIO OZUNA
20 years’ imprisonment
Count Four
Narcotics Conspiracy
21 U.S.C. § 846
JONATHAN COLON
JULIO OZUNA
PRINCE GAINES
KHALIL SUGGS
ERICK OLEAGA
VICTOR MARTINEZ
40 years’ imprisonment
Mandatory minimum of 5 years’ imprisonment
Count Five
Firearm Offense
18 U.S.C. §§ 924(c) and 2
KHALIL SUGGS
Life
Mandatory minimum of 7 years’ imprisonment
Count Six
Robbery
18 U.S.C. §§ 1951 and 2
JULIO OZUNA
20 years’ imprisonment
Count Seven
Robbery conspiracy
18 U.S.C. § 1951
JULIO OZUNA
20 years’ imprisonment
Count Eight
Firearm Offense
18 U.S.C. §§ 924(c) and 2
JULIO OZUNA
Life
Mandatory minimum of 7 years’ imprisonment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Reseda Man Arrested on Federal Charges Alleging Storage Unit Burglaries and Sale of Stolen Firearms to Convicted FelonsRead the Press Release
LOS ANGELES – A San Fernando Valley man has been arrested on federal charges alleging he and two other men broke into self-storage units in Los Angeles County, stole dozens of firearms, and sold at least some of the weapons to convicted felons.
Rick Eric Herst, 34, a.k.a. “Loyal,” of Reseda, was taken into federal custody Monday by special agents with the FBI and deputies with the Los Angeles County Sheriff’s Department.
Herst was arrested pursuant to an eight-count indictment that was unsealed at his arraignment late Monday in United States District Court in downtown Los Angeles. He pleaded not guilty to the charges, and a May 19 trial date was set.
Herst is named in the indictment along with Jeffrey James LaFraniere, 37, of the San Fernando Valley, and Alan Elperin, 29, of Mission Hills, both of whom were arrested by local law enforcement in June 2019 on separate cases and are now in federal custody.
All three defendants are charged with one count of conspiracy, one count of dealing firearms without a license, and two counts of selling stolen firearms.
In addition to these charges, LaFraniere and Herst face charges of selling firearms to convicted felons, and each being a felon in possession of a firearm.
The indictment alleges that from December 2018 to September 2019, LaFraniere, Herst and Elperin burglarized multiple self-storage units in Glendale, Valencia, Culver City, West Los Angeles and elsewhere, where they stole firearms and other valuables. The men allegedly offered the stolen firearms for sale to customers either in person or via text message. LaFraniere and Herst sold the firearms to buyers they knew were convicted felons, according to the indictment.
For example, on May 30, 2019, the men allegedly burglarized a self-storage facility in Valencia and stole 35 firearms, including multiple .45-caliber pistols, 12-gauge shotguns, and high-powered rifles, the indictment alleges. On the same day as the Valencia burglary, LaFraniere and Herst allegedly sold two of the stolen firearms – a .45-caliber pistol and a .40-caliber pistol – to a buyer.
In total, the defendants stole 47 firearms, according to the indictment.
LaFraniere has multiple felony convictions in Los Angeles Superior Court between July 2007 and August 2016 for offenses such as burglary, identity theft and possession of methamphetamine for sale, according to the indictment. Herst’s criminal history includes two felony convictions in Los Angeles Superior Court in 2009 for vehicle theft, the indictment states.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, LaFraniere and Herst would face a statutory maximum sentence of 60 years in federal prison, and Elperin would face a statutory maximum sentence of 30 years in federal prison.
This case was investigated by the FBI Eurasian Organized Crime Task Force and the Los Angeles County Sheriff’s Department.
This matter is being prosecuted by Assistant United States Attorney Ian V. Yanniello of the International Narcotics, Money Laundering, and Racketeering Section.
Pennsylvania Attorney Indicted for Role in $2.7 Million Ponzi SchemeRead the Press Release
An Allentown, Pennsylvania, attorney has been charged for his role in a $2.7 million investment fraud scheme that victimized his law clients, according to a superseding indictment that was unsealed Monday.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael J. Driscoll of the FBI’s Philadelphia Field Office made the announcement.
Todd H. Lahr, 59, of Nazareth, Pennsylvania, was indicted by a federal grand jury in the Eastern District of Pennsylvania on one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud.
According to the superseding indictment, from 2012 through 2019, Lahr conspired with others to perpetrate a securities fraud scheme targeting his own law clients, which involved the fraudulent sale of the securities of two entities, THL Holdings LLC and Ferran Global Holdings Inc. Lahr used investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills and other personal debts. He allegedly perpetuated the scheme by using money that he received from new investors to pay money owed to other investors in the scheme.
Total investor losses are estimated to be over $2.7 million, according to the indictment.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI investigated this case. Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael J. Rinaldi of the Eastern District of Pennsylvania are prosecuting the case.
The department appreciates the substantial assistance provided by the U.S. Securities and Exchange Commission.
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.
Notice regarding service of certain bankruptcy filings on the United States AttorneyRead the Press Release
As a temporary measure due to COVID-19 concerns, service on the United States Attorney shall be made via both email and US mail as follows:
A copy of any filing requesting relief affecting a lien or claim of the United States shall be emailed to [email protected]. A paper copy shall also be mailed to the Civil Process Clerk, United States Attorney’s Office, 1000 Louisiana, Suite 2300, Houston, TX 77002. Hand delivery may not be accepted.
E-mail delivery will not deemed complete until receipt is acknowledged by e-mail from the U.S. Attorney’s Office for the Southern District of Texas. This emergency accommodation will expire when the U.S. Bankruptcy Court lifts its public health and safety protocols.
Ryan K. Patrick
United States AttorneyMore Than $163 Million Available to Fight Addiction Crisis Announced by New Jersey U.S. AttorneyRead the Press Release
NEWARK, N.J. –U.S. Attorney Craig Carpenito today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“My office devotes substantial resources toward the battle against opioid diversion and abuse, but the problem requires more than just a law enforcement approach,” U.S. Attorney Carpenito said. “These grants provide resources to our partners that can help them tackle opioid addiction, a crisis that afflicts so many of our communities, with solutions focused on treatment and recovery. I encourage them to explore the opportunities listed below.”
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs (OJP), said. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million Deadline 5/14/2020
Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million Deadline 5/21/2020
Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million Deadline: 5/4/2020
Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million Deadline 4/8/2020 (Extended)
Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1 Deadline 5/5/2020
Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million Deadline 4/13/2020 (Extended)
Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million Deadline 4/13/2020
Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million Deadline 4/20/2020
Research and Evaluation on Drugs and Crime https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million Deadline 4/20/2020
Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million Deadline 4/6/2020
For more information regarding all OJP funding opportunities, visit: https://www.ojp.gov/funding/explore/current-funding-opportunities
Man from Silver City, New Mexico pleads guilty to federal child pornography chargeRead the Press Release
ALBUQUERQUE, N.M. – Ruben Joseph Castillo, 49, of Silver City, New Mexico pleaded guilty in federal court in Las Cruces, New Mexico today to production of visual depictions of minors engaging in sexually explicit conduct.
According to Castillo’s plea agreement, he admitted searching for underage girls and contacting them on social media. Castillo admitted meeting with a victim on July 21, 2019, and taking photos with his mobile phone camera of the minor victim engaging in sexually explicit conduct.
Castillo is currently in custody awaiting sentencing. He faces from 15 to 30 years in prison.
Homeland Security Investigations and the Silver City Police Department investigated this case. Assistant U.S. Attorneys Marisa A. Ong and Ry Ellison are prosecuting the case.
Mail Thief Sentenced for Bank Fraud, Identity TheftRead the Press Release
Defendant used stolen IDs to negotiate forged, stolen checks
GRAND RAPIDS, MICHIGAN — U.S Attorney Andrew Birge announced that Kristine Marie Jung, 36, of Kalamazoo, Michigan was sentenced yesterday to 48 months’ imprisonment by U.S. District Judge Paul L. Maloney. Jung was part of a group of individuals in Kalamazoo involved in a "mailboxing" ring. She and her accomplices stole checks, credit cards, driver’s licenses and other identity documents from residential mailboxes, unattended purses and parked cars. They then forged and altered the checks, and used some of them to purchase merchandise at local retail stores. In some cases, they made them payable to people whose identification documents they had stolen, and impersonated those people in order to cash the checks at financial institutions.
In June 2019, the Kalamazoo County Sheriff’s Department was alerted that someone had used a local resident’s stolen driver’s license to open a fraudulent account. Using surveillance footage, analysis of bank records, and witness interviews, the U.S. Postal Inspection Service determined Jung was the perpetrator. When Jung was arrested that same month, she was found in possession of stolen checks and identification documents, as well as equipment commonly used in forging and counterfeiting checks. These included chemical solvents, sponges and Exacto blades used to remove ink from checks. Jung confessed she had been committing identity theft to support her methamphetamine habit.
Jung’s sentence included three concurrent 24-month terms for bank fraud and two counts of mail theft. She will also serve a mandatory two year consecutive sentence for aggravated identity theft, because she used another person’s identity in the commission of a felony. Three other Kalamazoo "mailboxers" from Jung’s social circle were sentenced last spring by U.S. District Judge Janet T. Neff for similar conduct. Beatrice Michael Brown, Shadow Nicole Kornmiller and Jessica Ann Ledger received sentences of 27, 33 and 51 months respectively.
In imposing the four-year total sentence, Judge Maloney noted the defendant’s long history of retail fraud convictions. He also observed that "The security of the Postal System is important to all Americans," and said those who steal from the mail "need to understand that they will pay a heavy price in the federal court system." Judge Maloney commended the defendant for finishing her GED while awaiting sentencing, and recommended the Bureau of Prisons house her at a facility with a drug treatment program. "It may be easy to steal from residential mailboxes, but it’s hard to escape punishment. Anyone considering it should realize it’s not worth the price they will eventually pay," said U.S. Attorney Birge.
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Lehigh Valley Attorney Indicted for Orchestrating $2.7 Million Ponzi Scheme that Targeted His Own Clients to Invest in Fake Business OpportunitiesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Todd H. Lahr, 60, of Nazareth, PA, was charged by Superseding Indictment with one count of conspiracy to commit securities fraud and wire fraud, two counts of securities fraud, and four counts of wire fraud. The charges were unsealed today in the Eastern District of Pennsylvania.
The Superseding Indictment alleges that Lahr, an attorney licensed to practice law in Pennsylvania, perpetrated a multiyear securities fraud scheme that targeted his own law clients. The scheme involved the fraudulent sale of the securities of two entities, THL Holdings, LLC and Ferran Global Holdings, Inc. Lahr raised funds for the two companies by soliciting investments from his clients, telling them that their money would be used for a variety of business opportunities, most prominently, a mining operation in Papua New Guinea. According to the Superseding Indictment, these opportunities were non-existent; instead, Lahr used the investor funds to finance his own lifestyle, paying his home mortgage, his child’s school tuition, utility bills, and other personal debt. Total investor losses are estimated to be over $2.7 million.
In addition to the criminal charges Lahr is facing, the U.S. Securities and Exchange Commission (SEC) filed a parallel civil enforcement action in the Eastern District of Pennsylvania today based on the same course of conduct. The SEC Complaint charges Lahr and another individual, Thomas Megas, with multiple securities fraud violations and seeks disgorgement, prejudgment interest, civil money penalties, and injunctions against future violations of the federal securities laws against both defendants.
“Lawyers are entrusted to uphold the law, not break it,” said U.S. Attorney McSwain. “And what is particularly disturbing here is that Lahr allegedly targeted the very people he owed a duty of loyalty to – his clients. Instead of serving their interests, he allegedly stole almost $3 million from them so he could indulge himself. I want to thank our law enforcement partners at the FBI and SEC, along with the attorneys in the Fraud Section of the Department of Justice, who worked with my Office to put an end to this fraud and hold the defendant accountable.”
“Todd Lahr's clients thought he was a man of his word,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Little did they know he would take full advantage of that trust, diverting and using their money as his own. The FBI is fighting every day to shut down financial fraudsters like this, find justice for their victims, and protect the public.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi and Trial Attorney Philip B. Trout of the U.S. Department of Justice, Criminal Division, Fraud Section. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hazlehurst pharmacy, pharmacist to pay up to $2.1 million for dispensing thousands of illegitimate prescriptionsRead the Press Release
BRUNSWICK, GA: A South Georgia pharmacy and its pharmacist have agreed to settle a federal civil suit alleging they unlawfully dispensed thousands of illegitimate prescriptions for opioids and other controlled substances.
Under the settlement, announced only weeks after the Southern District of Georgia U.S. Attorney’s Office filed the suit on behalf of the United States, Chip’s Discount Drugs and its pharmacist-in-charge, Rogers “Chip” Wood, Jr., of Hazlehurst, Ga., will pay up to $2,153,383 in civil penalties, said U.S. Attorney Bobby L. Christine.
According to the lawsuit, the defendants routinely ignored numerous red flags associated with prescriptions written by Dr. Frank Bynes Jr., who in February 2020 was sentenced to serve 240 months in federal prison on 13 counts of Unlawful Dispensation of Controlled Substances and three counts of Health Care Fraud. The suit alleged the pharmacy dispensed more than 350,000 units of controlled substances prescribed by Bynes over the course of two years, despite obvious evidence Bynes was operating a “pill mill,” including:
- Most patients traveled between four and six hours to obtain prescriptions for commonly-abused controlled substances from an internal medicine doctor without any type of specialty;
- More than 90 percent of Bynes’ patients received a monthly supply of the highest strength of oxycodone, double the opioid potency the Centers for Disease Control advises clinicians to avoid;
- Most of Bynes’ patients received multiple types of immediate-release opioids at the same time;
- Most of Bynes’ patients received the so-called “holy trinity” drug cocktail of opioids, benzodiazepines, and Soma favored by opioid addicts;
- The medications were consistently and disproportionately the highest available strength; and,
- Multiple members of the same household were receiving similar dangerous prescriptions, including one family of three that received more than 17,500 dosage units of controlled substances from the pharmacy in less than two years.
The suit also alleges that the defendants could not account for more than 9,000 oxycodone and hydrocodone pills supplied to the pharmacy as required by the Controlled Substances Act.
“Pharmacists have a responsibility to fill only legitimate prescriptions for controlled substances,” said U.S. Attorney Christine. “Pharmacies that turn a blind eye to this obligation contribute to the opioid epidemic and allow pill-mill doctors to wreak havoc on our community. This settlement makes clear that your U.S. Attorney’s Office will utilize every ethical tool to attack this crisis.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, ““This pharmacist scarred many lives through his actions. Unfortunately, many of those patients will struggle with addiction for the rest of their lives. DEA will not hesitate to use all its resources to ensure that members of the healthcare community follow the law.”
The suit is part of an ongoing investigation by the U.S. Attorney’s Office and its federal law enforcement partners of the pharmacies who filled illegitimate prescriptions from Dr. Bynes. In addition to the settlement of the civil claims against Chip’s Discount Drugs, U.S. Attorney Christine also announced that Gordon’s Pharmacy of Bloomingdale, Ga., and its pharmacist-in-charge, Steven Keith Gordon, have agreed to pay up to $200,000 to settle claims that they unlawfully filled prescriptions for controlled substances written by Bynes. The U.S. Attorney’s office previously announced criminal and civil prosecutions of Darien Pharmacy of Darien, Ga., and Ray Dixon, the owner of Fulghum Drugs of Baxley, Ga.
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, and failing to make, keep, or furnish accurate prescription records carries a civil penalty of up to $15,040 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.
The cases were investigated by the DEA, and Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter represented the United States.
Hayesville, N.C. Man Is Sentenced to More Than 21 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Bobby Roger Burch, 48, of Hayesville, N.C. today to 262 months in prison, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Burch to serve five years under court supervision upon completion of his prison sentence.
According to filed court documents and today’s sentencing hearing, Burch was part of a drug conspiracy operating in North Carolina and Georgia, that distributed significant quantities of methamphetamine in and around Clay County and elswhere. Court records show that Burch was the North Carolina-based source of supply for the drug ring. Court records also show that, over the course of the investigation, law enforcement conducted controlled buys and seized significant quantities of methamphetamine from the drug conspiracy. According to court records, law enforcement seized from Burch more than three pounds of methamphetamine, which Burch was transporting from Georgia to North Carolina. In addition to the narcotics, law enforcement seized 39 firearms from Burch’s residence, including an assault rifle. As reflected in court documents, Burch obstructed or attempted to impede the administration of justice by threatening and intimidating some of his co-conspirators whom he suspected were cooperating with law enforcement.
In making today’s announcement, U.S. Attorney Murray said, “The arrest and prosecution of Burch and several of his co-conspirators has positively impacted Clay County and the surrounding areas in North Carolina, which have seen a significant drop in criminal activity following the successful dismantling of this multi-state drug trafficking ring. Working with our law enforcement partners, we will continue to identify, investigate, and prosecute drug trafficking organizations that plague our communities with deadly drugs and drug-fueled crimes.”
“The cocktail of deadly chemicals used to manufacture methamphetamine are a recipe for disaster. These substances are not only volatile and toxic, but they also destroy families, communities and lives. Because of the collective effort between DEA and its local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, this defendant was brought to justice and will spend well-deserved time in prison,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
U.S. Attorney Murray thanked the DEA’s Asheville Post of Duty; the Clay County Sheriff’s Office; the Georgia Bureau of Investigation; the Swain County Sheriff’s Office; the Macon County Sheriff’s Office; the Highlands Police Department; and the North Carolina State Bureau of Investigation for handling the investigation.
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In a separate case, Judge Reidinger also sentenced James Kevin Jones, 45, of Candler, N.C. to 188 months in prison followed by four years of supervised release. According to court documents and today’s sentencing hearing, investigators made three controlled buys of methamphetamine from Jones and seized methamphetamine and a loaded firearm from Jones’ residence in Candler during the course of the investigation.
Court documents show that law enforcement also seized an additional quantity of methamphetamine that Jones concealed on his body while in the Buncombe County Detention Center. According to court records and statements made in court today, Jones has multiple prior felony convictions, and committed crimes while he was on state probation for those convictions.
Jones’ investigation was handled by the Buncombe County Anti-Crime Task Force and the Buncombe County Sheriff’s Office.
Both defendants are in custody, and upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
Former Veterans Affairs Police Officer Pleads Guilty to Criminal Civil Rights Violation and Making False Entries in A ReportRead the Press Release
Tampa, Florida – Norman Nicholson (56, Largo) today pleaded guilty to one count of depriving an individual of his Fourth Amendment right to a reasonable search and seizure under the color of law and one count of knowingly making false entries in a report with the intent to obstruct an investigation within the jurisdiction of a federal agency. Nicholson faces a maximum penalty of 20 years’ imprisonment. A sentencing hearing is scheduled for June 24, 2020.
According to the
plea agreement , while employed as a police officer with Veterans Affairs in Bay Pines, Florida, Nicholson instructed an Army veteran to leave the premises and the veteran complied. Nicholson then followed the veteran outside and arrested him. In doing so, Nicholson swung the veteran around, and placed both of the veteran’s hands behind his back. The veteran did not resist the arrest and moved his left arm behind his back on his own. After the veteran was already handcuffed and in custody, Nicholson used his left hand to shove the veteran’s head against the fence. He then used his right hand to pull the veteran’s legs apart, causing him to fall face first into the fence and then to the ground. Nicholson then forcefully grabbed the veteran from the ground, and lifted him up. While lifting him up, Nicholson used his right hand to grab the veteran by his face and nose.Nicholson then authored two arrest affidavits and a police report in which he made numerous false statements regarding the incident. Specifically, Nicholson stated that the veteran “refused to leave the property…became resistant…pulled away…raised his hand in an aggressive posture…did not obey commands to stop resisting…resisted on the ground…and buckled his knees in an attempt to make himself dead weight.” Those statements were false, and were made with the intent to impede, obstruct, or influence a matter that was within the jurisdiction of the United States Department of Veterans Affairs.
As a result of this arrest, the veteran spent several days in custody at the Pinellas County jail.
This case was investigated by the Department of Veterans Affairs - Office of Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Federal Prosecutors Move to Revoke Supervised Release for Convicted FelonRead the Press Release
ATHENS, Ga. – A convicted felon with a lengthy criminal history in the Athens-Clarke County area is currently in detention after being accused of multiple new violations, said Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Shabazz Sangria Wingfield, 27, of Athens, was sentenced in January 2015 by U.S. District Judge C. Ashley Royal to 60 months in prison and five years of supervised release after pleading guilty to one count of possession of a firearm in furtherance of a drug trafficking crime. Since Wingfield’s release from federal prison on December 28, 2018, he is accused of committing ten violations of his supervised release. Documents filed in federal court allege the most recent violation occurred on January 30, 2020, when Wingfield was arrested on state charges following accusations that he struck a woman and threatened to kill her. On March 13, 2020, Wingfield pleaded guilty in state court to criminal trespass-family violence arising from the January 30, 2020 incident, in addition to pleading guilty to a state charge of Criminal Trespass from an incident on December 28, 2019.
U.S. Magistrate Judge Charles Weigle ordered Wingfield’s continued detainment at an initial appearance and detention hearing on Tuesday, March 17, 2020. Wingfield is facing a maximum five years in prison for violating the terms of his supervisory release, in addition to any potential state sentences. The final revocation hearing has not been scheduled. Defendants are presumed innocent until and unless proven guilty; in this case, the court must find by a preponderance of the evidence that the defendant violated a condition of supervised release before it can be revoked.
“Our office will quickly move to revoke the supervised release of convicted felons who choose to commit violent crimes in our communities after serving their prison sentence,” said U.S. Attorney Charlie Peeler. “Convicted felons caught violating the terms of their supervised release will be prosecuted.”
The case was investigated by the U.S. Probation Office. First Assistant U.S. Attorney Peter Leary is prosecuting the case for the Government. 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.
FBI Takes Down a Russian-Based Hacker Platform; Arrests Suspected Russian Site AdministratorRead the Press Release
NEWS RELEASE SUMMARY – March 24, 2020
San Diego – A Russian-based cyber platform known as DEER.IO was shut down by the FBI today, and its suspected administrator – alleged Russian hacker Kirill Victorovich Firsov - was arrested and charged with crimes related to the hacking of U.S. companies for customers’ personal information.
DEER.IO was a Russian-based cyber platform that allowed criminals to purchase access to cyber storefronts on the platform and sell their criminal products or services. DEER.IO started operations as of at least October 2013, and claimed to have over 24,000 active shops with sales exceeding $17 million. The platform was shut down pursuant to a seizure order issued by the Southern District of California Court.
FBI agents arrested Firsov, a Russian cyber hacker, on March 7 in New York City. Firsov not only managed the DEER.IO platform, he also advertised it on other cyber forums, which catered to hackers. Firsov is next scheduled to appear on April 16, 2020, before U.S. Magistrate Judge Allison H. Goddard.
According to a federal complaint, DEER.IO virtual stores offered for sale a variety of hacked and/or compromised U.S. and international financial and corporate data, Personally Identifiable Information (PII), and compromised user accounts from many U.S. companies. Individuals could also buy computer files, financial information, PII, and usernames and passwords taken from computers infected with malicious software (malware) located both in the U.S. and abroad. Law enforcement found no legitimate business advertising its services and/or products through a DEER.IO storefront. Store operators and customers accessed the storefront via the Internet. Specifically, in this case, the FBI made purchases from DEER.IO storefronts hosted on Russian servers.
The DEER.IO platform offered a turnkey online storefront design and hosting platform, from which cybercriminals could advertise and sell their products (such as harvested credentials and hacked servers) and services (such as assistance performing a panoply of cyber hacking activities). The DEER.IO online stores were maintained on Russian-controlled infrastructure. The DEER.IO platform provided shop owners with an easy-to-use interface that allowed for the automated purchase and delivery of criminal goods and services.
Once shop access was purchased via the DEER.IO platform, the site then guided the newly-minted shop owner through an automated set-up to upload the products and services offered through the shop and configure crypto-currency wallets to collect payments for the purchased products and/or services.
As of 2019, a cybercriminal who wanted to sell contraband or offer criminal services through DEER.IO could purchase a storefront directly from the DEER.IO website for 800 Rubles (approximately $12.50) per month. The monthly fee was payable by Bitcoin or a variety of online payment methods such as WebMoney, a Russian based money transfer system similar to PayPal.
A cybercriminal who wanted to purchase from storefronts on the DEER.IO platform could use a web browser to navigate to the DEER.IO domain, which resolved to DEER.IO storefronts. DEER.IO contained a search function, so individuals could search for hacked accounts from specific companies or PII from specific countries, or the user could navigate through the platform, scanning stores advertising a wide array of hacked accounts or cyber criminal services for sale. Purchases were also conducted using cryptocurrency, such as Bitcoin, or through the Russian-based money transfer systems.
On or about March 4, 2020, the FBI purchased approximately 1,100 gamer accounts from the DEER.IO store ACCOUNTS-MARKET.DEER.IS for under $20 in Bitcoin. Once payment was complete, the FBI obtained the gamer accounts, including the user name and password for each account. Out of the 1,100 gamer accounts, 249 accounts were hacked Company A accounts. Company A confirmed that if a hacker gained access to the user name and password of a user account, that hacker could use that account. A gamer account provides access to the user’s entire media library. The accounts often have linked payment methods, so the hacker could use the linked payment method to make additional purchases on the account. Some users also have subscription-based services attached to their gamer accounts.
On or about March 5, 2020, the FBI purchased approximately 999 individual PII accounts from the DEER.IO store SHIKISHOP.DEER.IS for approximately $170 in Bitcoin. On that same date, the FBI purchased approximately 2,650 individual PII accounts from the DEER.IO store SHIKISHOP.DEER.IS for approximately $522 in Bitcoin. From those identities, the FBI identified names, dates of birth and U.S. Social Security numbers for multiple individuals who reside in San Diego County, including G.V. and L.Y.
“There is a robust underground market for hacked stolen information, and this was a novel way to try to market it to criminals hoping not to get caught,” said U.S. Attorney Robert Brewer. “Hackers are a threat to our economy, and our privacy and national security, and cannot be tolerated.”
FBI Special Agent in Charge Omer Meisel stated, “Deer.io was the largest centralized platform, which promoted and facilitated the sale of compromised social media and financial accounts, personally identifiable information (PII) and hacked computers on the internet. The seizure of this criminal website represents a significant step in reducing stolen data used to victimize individuals and businesses in the United States and abroad. The FBI will continue to be at the forefront of protecting Americans from foreign and domestic cyber criminals.”
The office extends its appreciation to the New York Division of U.S. Customs and Border Protection operating at John F. Kennedy International Airport and to private sector cyber-security company Black Echo LLC, which provided assistance throughout the investigation.
Report cyber crimes by filing a complaint with the FBI's Internet Crime Complaint Center, by calling your local FBI office or 1800 CALL FBI.
DEFENDANT Case Number: 20MJ1029
Kirill Victorovich Firsov Age: 28
SUMMARY OF CHARGE
Unauthorized Solicitation of Access Devices, 18 USC Sec. 1029(a)(6)(A)
Maximum Penalty: Ten years in prison, $250,000 fine, restitution.
AGENCIES
Federal Bureau of Investigation
Employee of Drug Testing Facility Charged with Accepting Bribes in Exchange for Falsifying Drug Test Results Sent to U.S. Probation OfficeRead the Press Release
LAS VEGAS, Nev. — Billy Joe West, 57, of Las Vegas, made his initial appearance Monday on a federal charge alleging that he misused his position as an employee at a federally contracted drug testing facility to solicit and accept bribes from individuals on federal probation, in exchange for concealing their positive and missed drug tests, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
“Employees of federal contractors must put the public interest over their own self interests,” said U.S. Attorney Trutanich. “Our law enforcement partners and our office will continue to investigate violations of the public trust.”
“Obstructing justice by accepting bribes in exchange for false reporting is unacceptable,” said Special Agent in Charge Rouse. “The FBI will use every resource available to assist our law enforcement partners in holding individuals accountable for their actions.”
According to the complaint, West was an employee at WestCare Nevada, Inc., a federal contractor that conducted, among other services, court-ordered urinalysis drug testing of supervisees (on federal probation and supervised release). West’s responsibilities included administering that drug testing.
The complaint alleges that West devised a scheme to solicit and accept payments from supervisees in exchange for reporting a false negative drug test to the U.S. Probation Office. During January and February 2020, in exchange for cash bribes, West helped an individual falsify drug testing results on at least three occasions. On the first two occasions, West received $400 in exchange for reporting a negative drug test even though the individual was not tested.
A preliminary hearing has been scheduled before U.S. Magistrate Judge Daniel J. Albregts on April 13, 2020.
If convicted, West faces a statutory maximum sentence of 20 years in prison and a $250,000 fine for the honest services wire fraud charge. 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.
This case was the product of an investigation by the FBI.
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Department of Justice Requests Citizens Be Aware of and Report COVID-19 FraudRead the Press Release
For accurate and up-to-date information on COVID-19, please visit the CDC’s website at cdc.gov/covid19.
The Department of Justice is remaining vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis. In a memo to U.S. Attorneys, Attorney General Barr said, "The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated."Be aware that criminals are attempting to exploit COVID-19 worldwide through a variety of scams. There have been reports of:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share virus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
Criminals will likely continue to use new methods to exploit COVID-19 worldwide.If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home though a number of platforms. Go to:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
- Report it to the FBI at www.fbi.gov/coronavirus#Report-Fraud.
- If it's a cyber scam, submit your complaint through https://www.ic3.gov/default.aspx
For more information regarding Federal Efforts, Department of Justice Resources, and Coronavirus Fraud News, please visit the Department of Justice COVID-19 Fraud Page at https://www.justice.gov/coronavirus.Columbus man charged federally for allegedly setting up fake online sales to lure victims, steal their money & shoot themRead the Press Release
COLUMBUS, Ohio – A Columbus man allegedly pretended to be selling a car and pretended to be an online escort in order to rob victims at gunpoint. Further, the man allegedly brandished a firearm during the robberies and shot and struck two victims.
Keith Jorel Hudson, 34, was charged federally today and is scheduled to appear in federal court tomorrow afternoon.
According to an affidavit filed in support of the criminal complaint, on March 5, Hudson met up with a victim who had communicated with Hudson on Facebook Messenger regarding a post stating Hudson was selling a black Honda Accord.
It is alleged that when the victim arrived at a meetup location on Spencer Court in Columbus, Hudson brandished a firearm and demanded the victim drop his wallet and keys.
The affidavit details that the victim complied. As Hudson reached to pick up the wallet, the victim grabbed his own keys and attempted to flee in his car. Hudson allegedly blocked the victim from entering his car, pistol whipped the victim, and shot him in the back of the neck. The round entered and exited the victim’s neck, leaving a flesh wound and shattering the victim’s car window.
The victim was able to flag down a Columbus police officer a short distance away and was transported to Grant Hospital.
On March 20, according to the affidavit, a second victim responded to an online advertisement. This post was a dating advertisement on a personals webpage.
The second victim arrived at the Hickory Creek Apartments complex to meet a female and pay her for sexual activity. Instead, Hudson allegedly approached him and pointed a handgun at him, demanding cash from him.
The victim gave Hudson the $30 he had in his possession and began to leave. The victim attempted to take a picture of Hudson’s license plate when Hudson began shooting at the victim. The victim attempted to flee and Hudson pursued the victim in his vehicle. Hudson fired his gun again near the intersection of Schrock Road and Ambleside Drive and struck the victim in his hand. The gunfire also disabled the victim’s car.
Shortly thereafter, Hudson was located by Columbus Police officers and arrested.
Hudson is charged with two counts of robbery and two counts of discharging a firearm during a crime of violence. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Columbus Police Chief Thomas Quinlan announced the charges. Assistant United States Attorney Timothy Prichard is representing the United States in this case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
If you believe you are also a victim or have any information related to this alleged conduct, please contact Columbus Police Detectives Brian Boesch at 614-230-3173 or John Herman at 614-645-4665.
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Cedar Rapids Man Sentenced to Nearly a Decade in Federal Prison for Unlawfully Possessing a Gun During Home InvasionRead the Press Release
A Cedar Rapids man who went with an associate to rob others of money and drugs using a firearm was sentenced March 23, 2020, to 114 months in federal prison.
Carl McArthur, age 40, from Cedar Rapids, Iowa, received the prison sentence following an October 24, 2019 jury verdict. The jury deliberated for nine hours before finding McArthur guilty of one count of being in possession of a firearm, specifically a Taurus .45LC/.410 caliber “Judge” handgun, after having been convicted of a 2003 misdemeanor domestic abuse assault in Linn County, Iowa, and a 2009 federal felony firearm conviction.
The evidence at trial and sentencing showed that on March 17, 2018, McArthur and an associate entered a house on the southwest side of Cedar Rapids. They were armed with firearms. McArthur and his associate planned to rob the occupants of the house of any money or methamphetamine in their possession. Three of the occupants of the house testified that McArthur and his associate forced their way into the house, assaulted them, and threatened to shoot them and pour hot grease on them in an effort to get money and drugs from them. One of the occupants called 911, and officers from the Cedar Rapids Police Department responded within minutes. The officers found McArthur inside the residence, and his associate was outside. The associate fled the scene, leaving behind the ski mask he wore to conceal his identity. Officers searched the house and found a Taurus .45LC/.410 caliber “Judge” handgun, a 9mm handgun, methamphetamine, and drug paraphernalia.
McArthur was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McArthur was sentenced to 114 months’ and 20 days’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Patrick Reinert and was investigated by Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0102.
Follow us on Twitter @USAO_NDIA.
COVID-19 FraudRead the Press Release
On March 13, 2020, President Donald J. Trump declared the outbreak of COVID-19 (the coronavirus) in the United States to be a national emergency. Unfortunately, criminals and scammers are trying to take advantage of the crisis for their own profit. The U.S. Attorney’s Office for the Southern District of Texas through its United States Attorney, Ryan Patrick, has made it a top priority to detect, investigate, and prosecute anyone who attempts to exploit the anxiety and uncertainty surrounding the COVID-19 outbreak to defraud other people.
For example, there are reports of fraudsters falsely claiming to be from legitimate health organizations, selling fake medicines, vaccines, tests, medical supplies, and using phishing scams to steal personal and financial information. Please don’t fall victim to these frauds and crimes. If you see these frauds being attempted or if you are a victim of one of these frauds, please report them to:
National Center for Disaster Fraud (NCDF)
Telephone hotline:1-866-720-5721
Email address:[email protected]Federal Bureau of Investigation (FBI): Submit a complaint online at https://tips.fbi.gov/
For cyber or internet related scams, submit your complaint at https://www.ic3.gov/default.aspx
Telephone:713-693-5000,Southern District of Texas COVID-19 Fraud Coordinator, Assistant U.S. Attorney Justin R. Martin
Telephone:713-567-9000
Email:[email protected]Please be on the lookout for any of these COVID-19 scams:
- 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. The FTC offers tips for avoiding charity scams: https://www.consumer.ftc.gov/features/how-donate-wisely-and-avoid-charity-scams
- 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. The FTC offers tips for avoiding phishing scams: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams
- 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.
For the most up to date information on the COVID-19 outbreak and the federal response, check https://www.cdc.gov/coronavirus/2019-ncov/index.html
Bronx Man Charged with Queens MurderRead the Press Release
Geoffrey S. Berman, United States Attorney for the Southern District of New York, and Darcel D. Clark, Bronx District Attorney, announced the unsealing yesterday of a Superseding Indictment charging JERRY ROJAS, a/k/a “Feddi,” with the January 13, 2020, murder of Vladimir Olivo, 42, in the vicinity of Northern Boulevard and 208th Street in Queens, New York. The case has been assigned to United States District Judge Jesse M. Furman. ROJAS was arrested yesterday and presented before U.S. Magistrate Judge Thérèse Wiley Dancks in the Northern District of New York.
U.S. Attorney Geoffrey S. Berman said: “As alleged in the Indictment, Jerry Rojas murdered Vladimir Olivo earlier this year. Thanks to the outstanding work of the NYPD, DEA, and the Special Agents of our Office, Rojas now faces federal murder charges for this terrible crime. I want to specially thank District Attorney Clark for the collaboration between our offices that helped make this prosecution possible.”
As alleged in the Superseding Indictment unsealed yesterday in Manhattan federal court[1]:
JERRY ROJAS, a/k/a “Feddi,” is a member of the Black Stone Gorilla Gang, a racketeering enterprise that operates principally in the New York City metropolitan area and in the jails and prisons of New York City and the State of New York. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, BSGG members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder and assaults; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in bank fraud and wire fraud; and obtained, possessed, and used firearms. BSGG members also evaded prosecution by law enforcement authorities through acts of intimidation and violence against potential witnesses to crimes committed by the gang.
On or about January 13, 2020, ROJAS shot and killed Vladimir Olivo in the vicinity of Northern Boulevard and 208th Street in Queens.
ROJAS is also charged with participating in a conspiracy to distribute heroin, cocaine, cocaine base, oxycodone, and marijuana from in or about 2011 through in or about March 2020, and using a firearm in furtherance of that conspiracy.
* * *
ROJAS, 26, is charged in the following counts of the Superseding Indictment:
COUNT
CHARGE
MAX. PENALTY
Count One
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life imprisonment
Count Ten
Narcotics Conspiracy
21 U.S.C. § 846
Life
Mandatory minimum of 10 years’ imprisonment
Count Eleven
Firearms Offense
18 U.S.C. §§ 924(c) and 2
Life
Mandatory minimum of 5 years’ imprisonment
Count Twelve
Murder in Aid of Racketeering
18 U.S.C. §§ 1959 and 2
Death or life imprisonment;
Mandatory minimum of life imprisonment
Count Thirteen
Murder through the Use of a Firearm
18 U.S.C. §§ 924(j) and 2
Death or life imprisonment;
Mandatory minimum of five years’ imprisonment
Mr. Berman praised the outstanding investigative work of the NYPD, DEA, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. Mr. Berman also thanked the New York/New Jersey Regional Fugitive Task Force of the United States Marshals Service for its work in apprehending ROJAS.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Danielle R. Sassoon, Andrew K. Chan, and Brandon Harper, and Special Assistant United States Attorney Jaclyn Wood, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
23 March 2020
United States Attorney’s Office Takes Steps to Protect Consumers and Prevent Civil Rights Violations Amidst COVID-19 Public Health EmergencyRead the Press Release
SACRAMENTO, Calif.—Today, U.S. Attorney McGregor W. Scott announced a series of steps aimed at protecting consumer financial safety amidst the COVID-19 (Coronavirus) outbreak.
U.S. Attorney Scott has appointed a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of consumer financial fraud resulting from the nation’s ongoing public health emergency.
U.S. Attorney Scott stated, “The investigation and prosecution of crime remains the mission of the U.S. Attorney’s Office. We will continue to vigilantly guard the public from wrongdoers, including those who might try to take advantage of the COVID-19 crisis. Those who violate federal law will be held accountable.”
If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home though a number of platforms. Go to:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
- Report it to the FBI at tips.fbi.gov
- If it’s a cyber-scam, submit your complaint through https://www.ic3.gov/default.aspx
The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via any of the above reporting methods.
Taking into account the general orders filed by Chief U.S. District Judge Kimberly Mueller related to COVID-19, the U.S. Attorney’s Office has taken necessary precautions to protect the health and safety of its staff during this health emergency while continuing to fulfill its public safety mission. Essential law enforcement functions including investigations, the signing and execution of warrants, filing of charges, and case litigation will continue. Eastern District of California prosecutors and support staff will continue working with federal, state, local and tribal law enforcement partners to safeguard our justice system and protect the safety and security of our nation during this difficult time.
United States Attorney Shares Tips for Avoiding COVID-19 ScamsRead the Press Release
SACRAMENTO, Calif.—Today, U.S. Attorney McGregor W. Scott warned of several new fraud schemes seeking to exploit the evolving COVID-19 (Coronavirus) public health emergency often targeting vulnerable populations.
Scammers have already devised numerous methods for defrauding people in connection with COVID-19. They are setting up websites, contacting people by phone and email, and posting disinformation on social media platforms. Some examples of scams linked to COVID-19 include:
- Testing scams: Scammers are selling fake at-home test kits or going door-to-door performing fake tests for money.
- Treatment scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
- Supply scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider scams: Scammers are contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing scams: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), are sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
- App scams: Scammers are creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as “research reports,” make predictions of a specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
The U.S. Attorney’s Office urges Californians to take the following precautionary measures to protect themselves from known and emerging scams:
- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure your computer’s anti-malware and anti-virus software is operating and up to date.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
- Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
- For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
On March 23, U.S. Attorney Scott announced the appointment of a COVID-19 fraud coordinator to lead investigations into known and suspected occurrences of financial fraud related to the nation’s ongoing public health emergency.
If you think you are a victim of a scam or attempted fraud involving COVID-19, you can report it without leaving your home though a number of platforms. Go to:
- Contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]
- Report it to the FBI at tips.fbi.gov
- If it’s a cyber-scam, submit your complaint through https://www.ic3.gov/default.aspx
The U.S. Attorney’s Office COVID-19 fraud coordinator will be notified of tips submitted via the above reporting method.
U.S. Attorney urges the public to report suspected COVID-19 fraud Assistant U.S. Attorney John Neal Appointed as Coronavirus Fraud CoordinatorRead the Press Release
DETROIT, Michigan – U.S. Attorney Matthew Schneider today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected]. U.S. Attorney Schneider also urged the public to report suspected price gouging to the Michigan Attorney General’s Office by calling 877-765-8388 or reporting online at www.michigan.gov/ag.
Attorney General William Barr has directed U.S. Attorneys to coordinate with the Department of Justice to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“During the pandemic, our office will continue to investigate and prosecute cases, particularly those involving violent and dangerous criminals,” United States Attorney Matthew Schneider stated. “We also plan to prioritize our efforts to go after scammers who exploit the Coronavirus to cheat people. Our job is to protect the public, and we continue to work with our state and local partners to preserve public safety during these challenging times.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Eastern District of Michigan Coronavirus Fraud Coordinator is Assistant United States Attorney John Neal, who serves as Chief of the White Collar Crime Unit in the U.S. Attorney’s Office.
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 about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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