Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
11 June 2018
Manchester Man Convicted of Interstate Transportation of a Minor for SexRead the Press Release
CONCORD – United States Attorney Scott W. Murray announced that a jury found Kurt Carpentino, 34, of Manchester, New Hampshire, guilty of transporting a minor with intent to engage in criminal sexual activity.
In a trial that began on June 7, 2018 and ended with the jury’s verdict on June 11, 2018, evidence demonstrated that Carpentino transported a person under the age of 18 from New Hampshire to Vermont with intent to engage in sexual activity.
Evidence at trial showed that on April 27, 2017, the Hinsdale, New Hampshire Police Department received a report of a missing 14-year-old child. The child was found later that morning at an abandoned motel owned by the defendant’s sister in Rockingham, Vermont. The child told the police that the defendant took her to the motel and that they had sex there. The defendant was observed driving by the motel and arrested nearby. Later that day, he admitted to taking the child from New Hampshire to Vermont and having sex with her at the hotel. A few weeks later, the defendant wrote the victim letters from jail, attempting to get her to recant her statement to the police.
Sentencing is scheduled for September 19, 2018. The defendant faces a mandatory minimum sentence of ten years and a maximum sentence of life in prison.
“Those who prey on children will be prosecuted aggressively,” said U.S. Attorney Murray. “There is no place in our community for those who attempt to rob children of their innocence. I am grateful for the courage of the young victim, as well as the hard work and dedication of the investigators and prosecutors who secured this guilty verdict.”
The investigation in this case was led by the Vermont State Police, Homeland Security Investigations in Manchester, New Hampshire, the Hinsdale, New Hampshire Police Department, the Manchester, New Hampshire Police Department, the Springfield, Vermont Police Department, and the New Hampshire State Police, with the assistance of the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorneys Seth R. Aframe and Georgiana L. Konesky.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Man Sentenced for $9 Million Credit Card Refund SchemeRead the Press Release
RICHMOND, Va. – A man who led a $9 million nationwide credit card fraud scheme was sentenced today to 10 years in prison.
According to court documents, Michael Cooper, 30, of Orlando, Florida, owned and operated several different entities for the sole purpose of defrauding credit card customers, credit card companies, and various Internet service companies by obtaining refunds of money paid by credit card customers to these Internet service companies. Between 2012 and 2016, Cooper and employees of his entities, Homeland Arbitration LLC, Smith Associates, P.A., and Cohen Associates, LLP, targeted Internet service companies that offered to assist individuals in setting up or managing an Internet presence for their small business. Cooper and his employees located former clients of these companies and misrepresented that they worked at a law firm, provided legal services, and conducted “arbitration” to recover money credit card customers previously paid to the Internet service companies. Unbeknownst to these credit card customers, Cooper and his employees then impersonated these individuals in phone calls and written communications with the individual’s credit card companies, and fabricated contracts and other documents to obtain refunds on their behalf. Cooper charged his clients 40 percent of any amount recovered on their behalf. In total, Cooper and his employees obtained more than $9 million in fraudulent refunds from at least 76 different businesses.
In addition to Cooper, the following four individuals who were employed by Cooper have pleaded guilty to offenses arising from their unlawful participation in the credit card refund scheme described above:
Name, Age
City, State
Convictions
Sentencing Date
Dustin Lee Faulkner, 24
Orlando, FL
Conspiracy to Commit Mail Fraud
June 12
Ashley R. Davis, 34
Fort Lauderdale, FL
Conspiracy to Commit Mail Fraud
June 12
Gustavo Carvajal, 28
Coral Springs, FL
Conspiracy to Commit Mail Fraud
July 12
Michael E. Gordon, 29
Jacksonville, FL
Conspiracy to Commit Mail Fraud
August 3
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Joseph Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Katherine Lee Martin and Thomas A. Garnett prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-124.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on June 11, 2018, by U.S. District Judge Roberto A. Lange.
Tristan Patterson, a/k/a Tristan Johnson, age 20, was sentenced to 20 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Patterson was indicted by a federal grand jury on September 12, 2017. He pled guilty on March 21, 2018.
The conviction stemmed from an incident on July 29, 2017, when Patterson was being booked into the Lower Brule Correctional Facility following a tribal arrest. Patterson was non-compliant with the booking process. As he was escorted to a holding cell and his wrist restraints were removed, Patterson stood up and began to wrestle with correctional staff. A restraint chair was brought in and he was ordered to sit in the chair.
Patterson resisted and began to tense up his arms in an attempt to avoid being restrained. He also attempted having his legs restrained by kicking his legs out and up. In the course of resisting, Patterson struck one of the correctional officers on the side of the face with his foot, knocking his glasses up. Then Patterson began to spit towards the correctional officers and was placed in a spit mask. No injuries were noted, though one of the correctional officer’s watch was broken in the struggle.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Patterson was immediately turned over to the custody of the U.S. Marshals Service.
Loves Park Man Pleads Guilty to Producing Child PornographyRead the Press Release
ROCKFORD — A Loves Park man pleaded guilty Monday before U.S. District Judge Philip G. Reinhard to producing child pornography.
GRANT WOJAHN, 37, admitted in his written plea agreement that he created a Facebook account and posed as a female teenager. Wojahn admitted that on March 20, 2015, while using that profile, he contacted a minor female victim using the Facebook private messaging feature and persuaded and enticed the minor female victim to engage in sexually explicit conduct for the purposes of having the minor victim take photographs of the sexually explicit conduct and then having the minor victim transmit the images to Wojahn using the private messaging service on Facebook. According to the plea agreement, the female victim was 13 years of age at the time the pictures were produced and transmitted. Wojahn also admitted that between May 21, 2014, and April 5, 2015, he similarly persuaded six other minor female victims, who were between the ages of ten and 12, to do the same.
Wojahn also admitted that on March 25, 2015, he used the Facebook private messaging service to chat and send another user a number of images of child pornography depicting one of the minor victims. Wojahn further admitted that on Sept. 1, 2015, he possessed numerous images of child pornography on a USB storage device, a cellphone, and other devices, and that he possessed at least 43 videos of child pornography and at least 71 images of child pornography.
Wojahn faces a maximum sentence of 30 years’ imprisonment, and a statutory mandatory minimum sentence of 15 years, and a term of supervised release of five years to life. This offense also carries a maximum fine of $250,000.
Sentencing for Wojahn is set for Sept. 26, 2018, at 9:00 a.m., in federal court in Rockford.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey Sallet, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Louisiana Man Sentenced for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – A Bossier City, Louisiana, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in the Lake of the Ozarks area.
Kenneth Harvey Hudson, 29, of Bossier City, was sentenced by U.S. District Judge Brian C. Wimes to 11 years in federal prison without parole.
On Feb. 8, 2018, Hudson pleaded guilty to participating in a conspiracy to distribute methamphetamine in Camden County, Mo.
According to court documents, investigators received information from a confidential source that several individuals from Louisiana were in possession of methamphetamine and guns. Officers contacted Hudson, who was driving a Malibu with co-defendants Sir Master Ford, 29, of Greenwood, La., and Philip Daniel Dennington, 30, of Bossier City, as passengers, at a gas station in Osage Beach, Mo. Officers searched Hudson’s vehicle and found a bag that contained 922 grams of methamphetamine and four firearms, including a loaded 12-gauge shotgun, a loaded Glock .40-caliber pistol, a loaded Smith & Wesson .22-caliber revolver and a loaded Roam/Sontheim .22-caliber revolver.
In 2011, Hudson was convicted of distributing methamphetamine in Louisiana and sentenced to five years in prison. He was on parole for that offense at the time of his arrest in this federal case. Hudson admitted to a long history of substance abuse and methamphetamine use.
Ford was sentenced on Feb. 8, 2017, to two years in federal prison after pleading guilty to being a felon in possession of a firearm. Dennington pleaded guilty to his role in the conspiracy and to possessing methamphetamine with the intent to distribute and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Lake Area Narcotics Enforcement Group and the Missouri State Highway Patrol.
Lockport Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Sterling Jones, 24, of Lockport, NY, who was convicted of possession of child pornography, was sentenced to serve 36 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Jonathan P. Cantil, who handled the case, stated that on March 31, 2017, the defendant possessed 295 videos and 11 images of child pornography. These videos and images were on the cellular telephone and were stored by the defendant in his DropBox online storage account. Over 600 images of child pornography were recovered from Jones’ cellular telephone and some of the images included prepubescent minors and depictions of violence.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Local Man Sentenced for Multiple Child Exploitation ChargesRead the Press Release
HOUSTON – A 24-year-old man from Houston has been ordered to federal prison for receipt and possession of child pornography, announced U.S. Attorney Ryan Patrick. Lucio Banda pleaded guilty March 21, 2018.
Today, U.S. District Judge Kenneth Hoyt sentenced Banda to 120 months in prison. At the hearing, Banda tried to mitigate his responsibility by claiming he did not distribute child pornography on the internet through his use of a peer-to-peer program. The court heard arguments and reviewed evidence regarding how the file-sharing program worked with respect to the sharing and distribution of files Banda made available. In handing down the sentence, the court noted Banda was responsible for the distribution of child pornography. He was further ordered to pay $18,136.40 in restitution to the known victims included in his collection and will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
Banda first came to the attention of law enforcement after they found multiple images of child pornography associated with his online account.
Authorities conducted a search at his residence, at which time they seized Samsung Galaxy Note 3 cellular phone and a San Disk Micro SD Ultra flash drive and a San Disk Ultra Plush flash memory card. Forensic analysis ultimately uncovered 2,191 images and 251 videos contained child pornography which included a substantial number of files with minor females under the age of five. Some of the images are known victims identified through the National Center for Missing and Exploited Children.
He admitted the child pornography was his as well as the online account he used to obtain child pornography and acknowledged using peer-to-peer software to search for, download and obtain child pornography. He also admitted to viewing child pornography for at least five years and that he had been doing so for at least two to three years.
Banda was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Julie N. Searle is prosecuting the case which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lackawanna Man Sentenced for Attempting to Provide Support to ISISRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – Arafat M. Nagi, 47, of Lackawanna, NY, was sentenced to serve 15 years in prison and 15 years supervised release by U.S. District Judge Richard J. Arcara for attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney James P. Kennedy, Jr. for the Western District of New York, and Special Agent-in-Charge Gary Loeffert of the FBI’s Buffalo Office made the announcement.
On August 28, 2014, a community member advised the FBI that the defendant spoke about violent jihad to various people in the Lackawanna community and it was common for Nagi to get into verbal complaints over his jihadi beliefs. Further investigation determined that the defendant pledged allegiance to ISIS and the leader of the terrorist group, Abu Bakr al Bagdadi.
Investigators learned that the defendant traveled to Turkey on two occasions, in October 2012 and July 2014, with the intention of meeting with members of ISIS. Prior to traveling to Turkey, the defendant purchased a large number of military combat items, including a tactical vest, army combat shirt, body armor, Shahada Flag, combat boots, backpack, burn kit, a hunting knife, machete and night vision goggles. Once in Turkey, Nagi purchased a SIM card and activated a Turkish cell phone number. Facebook messages showed that the defendant contacted other individuals, who were prepared to help the defendant enter Syria to join ISIS, and exchanged Turkish cell phone numbers. In addition, evidence seized from the defendant’s electronic devices showed that the defendant, while in Turkey, was researching how to travel from Istanbul to cities close to the Syrian border.
During follow up interviews in December, 2014 and March 2015, the community member who alerted the FBI regarding Nagi’s actions stated that the defendant still possessed radical political and religious views. According to the individual, Nagi was angry about the killing of rebels in Yemen which he blamed on the United States; pledged an oath to ISIS leaders; expressed agreement with ISIS tactics, including the killing of innocent men, women and children. The individual further reported that defendant planned to travel to Yemen and Turkey again soon.
“Today’s sentencing serves as yet another sobering reminder that terrorism’s reach knows no boundaries and that its supporters may be found—even in our own backyard,” said U.S. Attorney Kennedy. “Yet, today’s sentencing also demonstrates how members of the community play an important role in helping us to identify and eliminate those in our midst who support terrorism. Working with the community and with our partners in law enforcement, this Office will continue its vigilance in discharging our duty to enforce the rule of law so as to protect the lives of Americans at home and abroad and to preserve those values—such as liberty, tolerance, and justice—which define us as Americans.”
“Although today's sentencing of Arafat Nagi closes one FBI Buffalo counter-terrorism investigation, our office continues to identify and investigate potential existing or emerging threats,” said Assistant Special Agent-in-Charge Philip Frigm. “Nagi's actions were not only a threat to this country, but his behavior exposed those around him to unwarranted public scrutiny and speculation. That, too, is unacceptable. Our office continues to engage with our partner communities to understand their perspectives and to provide them with the protection afforded every member of our society. It is through these partner communities that we gain a true understanding of radicalization and use our combined conviction to deter recruitment and the spread of radicalization propaganda. The sentencing is the culmination of an investigation by the FBI Joint Terrorism Task Force.”
This case was investigated by the FBI Joint Terrorism Task Force, and assistance was provided by the New York State Attorney General’s Office. The case was prosecuted by Assistant U.S. Attorneys Timothy C. Lynch and Joel L. Violanti of the Western District of New York, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Justice Department Files Statement of Interest in Michigan Free Speech CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in Speech First, Inc., v. Schlissel in the Eastern District of Michigan. The plaintiff, Speech First, a nationwide organization dedicated to defending civil liberties, alleges that the University of Michigan has adopted policies prohibiting and punishing speech protected by the First and Fourteenth Amendments. Speech First alleges that the University of Michigan’s policies on “harassment,” “bullying,” and “bias” are so vague and overbroad as to prompt students to limit their speech out of fear that they might be subject to disciplinary sanction, including “individual education” or “restorative justice” at the hands of the University’s Bias Response Team.
The United States’ Statement of Interest argues that the University of Michigan’s Statement of Student Rights and Responsibilities, which prohibits “harassment,” “bullying,” and “bias,” is unconstitutional because it offers no clear, objective definitions of the violations. Instead, the Statement refers students to a wide array of “examples of various interpretations that exist for the terms,” many of which depend on a listener’s subjective reaction to speech.
The United States also argues that the University’s Bias Response Policy chills protected speech through its Bias Response Team. The Bias Response Team, which consists of University administrators and law enforcement officers, has the authority to subject students to discipline and sanction. It encourages students to report any suspected instances of bias, advising them: “[t]he most important indication of bias is your own feelings.” According to the plaintiff, the Bias Response Team has responded to more than 150 alleged incidents of bias in the last year.
In filing the Statement of Interest, Acting Associate Attorney General Jesse Panuccio provided the following statement:
“Freedom of speech and expression on the American campus are under attack. This Justice Department, under the leadership of Attorney General Jeff Sessions, is committed to promoting and defending Americans’ first freedom at public universities."
This is the fourth Statement of Interest filed by the Department of Justice in a First Amendment case under Attorney General Jeff Sessions. The first was filed on Sept. 26, 2017 in Uzuegbunam v. Preczewski, the second was filed on Oct. 24, 2017 in Shaw v. Burke, and the third was filed on January 25 in Young America’s Foundation and Berkeley College Republicans v. Janet Napolitano.
Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
JOSE ALBERTO SANTOS-MONTALVAN, age 42, a citizen of Honduras was sentenced yesterday after pleading guilty to a one-count indictment for illegal use of a Social Security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
According to court documents, SANTOS-MONTALVAN used a social security number that was not assigned to him by the Social Security Administration to register for a safety training course that he was required to complete before he could begin working for a local construction company on various job sites in the local area.
U.S. District Court Judge Eldon E. Fallon sentenced SANTOS-MONTALVAN to a sentence of time served. Following the completion of his sentence, SANTOS-MONTALVAN will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Guilty Verdict for Last of 19 Charged Defendants from Violent Drug OrganizationRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that a federal jury has convicted Romel Anthony, the last of the 19 defendants charged in the Khalil Smith indictment. Anthony was part of a violent drug gang that was responsible for, among other things, waterboarding, pistol-whipping, and torturing its victims with boiling water. Anthony was found guilty of one count of Attempted Possession with Intent to Distribute Cocaine. The other members of the drug gang either pleaded guilty or were previously convicted at earlier trials.
“This was an extremely violent drug organization and it’s a credit to our prosecutors and the investigators involved that every single member of this gang has now been convicted and taken off the streets,” said U.S. Attorney McSwain. “Gangs like this terrorize communities and hold neighborhoods hostage and this particular group is an example of why violent crime is a priority for both the Department of Justice and our office.”
“This conviction of the last member of the Khalil Smith home invasion robbery crew represents conclusive justice for the involved victims and their families and for the citizens of Philadelphia," said Special Agent in Charge Donald Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. “This conviction is the culmination of nearly four years of relentless investigation by the men and women of ATF Philadelphia, local law enforcement, and our outstanding partnership with the United States Attorney’s Office.”
The investigation was led by the ATF, with assistance from the Philadelphia Police Department, the Hatfield Township Police Department, the Whitpain Township Police Department, and the Cherry Hill Police Department. It is being prosecuted by Assistant United States Attorneys Salvatore Astolfi and Jeanine Linehan.
Ghanaian Man Sentenced for His Role in Internet Romance Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy announced today that Adams Amen, 32, a citizen of Ghana residing in Detroit, Michigan, who was convicted of conspiracy to commit wire fraud, was sentenced to serve 44 months in federal prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between March 28, 2015, and June 15, 2017, the defendant conspired with Jason Osei Bonsu and other Ghanaian nationals to devise an internet romance scheme to defraud victims and obtain money.
In furtherance of the scheme, Amen’s co-conspirators utilized a dating website, MillionaireMatch.com, to engage victims in communications online and over the phone to develop a rapport with victims and convince victims that they were developing romantic relationships via the internet. Victims received alleged pictures of the co-conspirators that were actually photographs of others downloaded from the internet. For example, Victim 1, who resides in the Western District of New York, received images of a person known to her as “Marvin Roecker,” but the image actually depicted a real estate agent from Texas, whose name is not “Marvin Roecker.”
After successfully building rapport, victims were asked to wire money to assist with fictitious business ventures, family emergencies, or inheritances. Victims did so, wiring funds to accounts in Ghana, the United Kingdom, and to accounts in the United States controlled by Ghanaian nationals, including Amen.
On March 2, 2016, Victim 1 wired $65,000 to Amen’s TD Bank account. Text messages between the defendant and co-defendant Jason Osei Bonsu demonstrate that both were participants in the scheme to defraud Victim 1. For instance, Amen and Bonsu discussed quickly withdrawing Victim 1’s money to prevent the bank from becoming suspicious. Subsequently, on March 21, 2017, following a request by “Marvin Roecker,” Victim 1 wired another $180,000 to a bank account located in the United Kingdom, which was controlled by a co-conspirator.
Between March 28, 2015, and June 15, 2017, victims wired $881,656 directly to accounts controlled by the defendant. One victim deposited $27,990 cash directly into Amen’s account. Victims lost a total of $909,646.
Jason Osei Bonsu was previously convicted and sentenced to 24 months in prison.
Today’s sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
Former Office Manager Pleads Guilty to Embezzling over $300KRead the Press Release
NEWPORT NEWS, Va. – A Norfolk woman pleaded guilty today to an embezzlement scheme that resulted in a loss of over $300,000.
According to court documents, Evelyn Gregory, 49, worked as the office manager of a women’s health clinic from 2007 through April 2016, and had access to multiple office credit cards which she misappropriated for her own use without the practice’s knowledge or consent. During this time Gregory incurred $250,000 in unauthorized purchases of office credit cards. As Gregory’s scheme progressed, she stopped paying office expenses, which caused the practice to accrue debts of which the owners were not aware due to the fact that Gregory concealed her activities by withholding credit card statements from the practice’s accountants. In the latter years of her tenure, Gregory started a debt collection company to which she referred debts owed to the practice without the owner’s knowledge or consent. Gregory and her son operated this company, and aggressively pursued patients for payment, collecting nearly $50,000 in funds owed to the practice. Gregory did not use the collected funds to satisfy the patients’ debt, instead charging the debt off the practice’s books and depositing the collected funds into her personal accounts.
Gregory pleaded guilty to money laundering and faces a maximum penalty of 20 years in prison when sentenced on September 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Joseph Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Assistant U.S. Attorneys Brian J. Samuels and Kaitlin Gratton Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:18-cr-21.
Former Nashville Airport Employee Pleads Guilty to Mail FraudRead the Press Release
John Pat Banister, Sr., 52, of Springfield, Tennessee, pleaded guilty today in U.S. District Court, to mail fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Banister, a former Telecommunications Service Manager at the Metropolitan Nashville Airport Authority (MNAA), was charged by information on April 5, 2018, with one count of mail fraud, after an investigation determined that he had used his airport credentials to fraudulently order 282 cell phones and sold them to another individual for profit. During the plea hearing, Banister admitted that from February 2015 through January 2017, he used his position and purchasing credentials to order the phones and that he personally profited from the scheme. According to court records, the MNAA paid approximately $134,627.21 for the cell phones.
At sentencing, Banister faces up to 20 years in prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Nashville International Airport Police. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
Former Merced County Store Manager Sentenced for Conspiracy to Defraud Government Benefits ProgramRead the Press Release
FRESNO, Calif. — Suzy Vang Lo, 41, formerly of Merced, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 21 months in prison for conspiring to defraud the United States by unlawfully purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients in exchange for cash, U.S. Attorney McGregor W. Scott announced.
Suzy Vang Lo and her husband, Michael Chu Lo, pleaded guilty to the scheme in March 2018. According to court documents, Suzy Vang Lo was the manager of LV Market in Winton. Her husband performed many employee functions at the store even though he was not officially employed at the store. Suzy Vang Lo conspired with her husband to give SNAP recipients cash in exchange for swiping their benefit cards. When the defendants exchanged SNAP benefits for cash, it caused the U.S. Department of Agriculture (USDA) to wire sums of money into an account that Suzy Vang Lo controlled.
Special Agent-in-Charge Lori Chan, United States Department of Agriculture (USDA), Office of Inspector General (OIG), Western Region, stated: “The USDA OIG has the responsibility for protecting the integrity of the Supplemental Nutrition Assistance Program. Protecting the integrity of SNAP is a major investigative priority for OIG. OIG conducts investigations in each region of the United States to deter and uncover criminal activity that undermines important USDA nutrition programs. Vendors who engage in SNAP fraud exploit the program’s needy beneficiaries and misuse the substantial funding that taxpayers provide. The OIG at USDA works to ensure SNAP funds are used for their intended purpose, feeding families, not for the enrichment of criminal enterprises.”
The USDA, through its Food and Nutrition Service, administers SNAP, a food assistance program designed to help low-income individuals and families purchase food. In California, the Food and Nutrition Service authorizes retail food stores to accept SNAP benefits for eligible food items from authorized recipients via the Electronic Benefit Transfer (EBT) system. Through EBT, the funds provided by SNAP and other state benefits programs are loaded onto the benefit recipients’ EBT debit cards. When a recipient wishes to use SNAP benefits to purchase eligible food items at a participating store, the store or customer swipes the recipient’s EBT card, and the recipient enters a Personal Identification Number (PIN). The SNAP dollar amount is immediately deducted from the customer’s SNAP account and is credited dollar-for-dollar to the retailer’s bank account.
When a retailer is authorized to participate in SNAP, it is informed that it may accept SNAP benefits only in exchange for eligible food items, and it must acknowledge in writing that trading cash for SNAP benefits is illegal.
In this case, for approximately three and a half years, the defendants swiped SNAP beneficiaries’ EBT cards and give them cash in the approximate amount of 69 cents per dollar of SNAP benefits. Michael Chu Lo kept notes at the cash registers to warn customers to remain silent during the transactions to avoid detection, and he attempted to hide large transactions by swiping EBT cards multiple times.
This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General. Assistant U.S. Attorneys Megan A. S. Richards and Jeffrey A. Spivak are prosecuting the case.
Co-defendant Michael Lo is scheduled to be sentenced on July 25, 2018.
Former Georgia Prison Guard Sentenced in Connection with Sexual Assaults of Female Inmates and Bomb ThreatRead the Press Release
The Justice Department today announced that former Georgia prison guard Edgar Daniel Johnson, 51, was sentenced to 51 months in prison for sexually assaulting three female inmates at the Emanuel Women’s Facility in Swainsboro, Georgia; for coercing the women to help him cover up the assaults; and for making a bomb threat at Elba Island on a separate occasion, in May, 2017. The Court will determine the amount of restitution owed to the victims at a later hearing.
In Oct. 2017, Johnson pleaded guilty in the Southern District of Georgia to three counts of willfully depriving the inmates of their Eighth Amendment rights under color of law, three counts of obstruction for coercing the women to cover up the assaults, and one count of maliciously conveying false information about explosive materials. During the plea hearing, Johnson admitted that, between Nov. 1, 2012, and Sept. 30, 2013, while he was working as a Georgia Department of Corrections prison guard at the Emanuel Women’s Facility, he engaged in non-consensual vaginal intercourse, on more than one occasion, with female inmates S.A., M.A., and M.P. Johnson further admitted that each act of intercourse was against the inmate’s will and violated the inmate’s right under the Eighth Amendment to be free from cruel and unusual punishment, which includes the right to be free from unwanted sexual assaults. Johnson further admitted that he coerced each of the inmates to cover up the assaults.
Johnson also admitted that on May 3, 2017, in an unrelated matter, he used a cellular telephone to call Southside Fire in Chatham County, Georgia, and falsely report a bomb threat at Elba Island. Johnson admitted that at the time he called in the bomb threat, he maliciously conveyed the threat even though he knew the threat to be false.
“This defendant abused his legal authority to prey on vulnerable women who had been entrusted to his care,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division is committed to protecting the rights of all individuals, and will hold law enforcement officers who violate the law accountable.”
“No one is above the law, and the criminal actions of this former prison guard compel a strong rebuke. Anyone who chooses to prey on others under color of official right should expect federal prosecution and jail,” said United States Attorney Bobby L. Christine.
“Corrections officials have a difficult and important job, but we cannot allow them to abuse their authority and assault the very people they are charged with supervising," said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. "The FBI will not allow the actions of a few to tarnish the many corrections officials who do their job every day, maintaining order and respecting the law."
This case was investigated by the FBI’s Augusta Resident Agency with assistance from the Georgia Department of Corrections and the District Attorney’s Office for Swainsboro, Georgia. The case is being prosecuted by Assistant U.S. Attorneys Tara Lyons and Matthew Josephson of the Southern District of Georgia and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.
Former Biscayne Park Police Chief and Two Former Patrol Officers Indicted for Conspiring to Violate Juvenile’s Civil rights by Intentionally Making False ArrestsRead the Press Release
U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.
Atesiano, Dayoub and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. If convicted, Atesiano, Dayoub and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano was held today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Mr. Greenberg commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and FDLE in this matter.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for its assistance. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Biscayne Park Police Chief and Two Former Patrol Officers Indicted for Conspiring to Violate Juvenile’s Civil Rights by Intentionally Making False ArrestsRead the Press Release
Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.
Atesiano, Dayoub, and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242. If convicted, Atesiano, Dayoub, and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano will be held at 1:30 p.m. today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.
The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.
An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Miami Field Office of the Federal Bureau Investigation including the FBI Miami Area Corruption Task Force and FDLE. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
Exective Director of RARES Pleads Guilty to Filing False Tax ReturnsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John Brian Mount, 60, of Pittsford, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci to filing a false tax return. The charge carries a maximum penalty of three years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Mount was the executive director of Regional Area Recreation and Employee Services (RARES), a non-profit business located at 312 West Commercial Street in East Rochester. The non-profit provides discounted tickets and services to subscribing companies. The defendant received salary and commissions from RARES that he failed to report on his 2010 through 22103 federal tax returns. In total, Mount failed to report approximately $227,835.77 in additional income on his tax returns, which resulted in the defendant failing to pay $60,977 in taxes to the Internal Revenue Service.
Today’s plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent in Charge, New York Field Office.
Mount’s sentencing is scheduled for September 19, 2018, at 3:00 p.m. before Judge Geraci.
Erica MacDonald Takes Oath of Office as United States Attorney for the District of MinnesotaRead the Press Release
Erica H. MacDonald has taken the oath of office to become the United States Attorney for the District of Minnesota. U.S. Attorney MacDonald was nominated by President Donald Trump on April 10, 2018, and confirmed by the U.S. Senate on May 24, 2018. She took the oath of office from U.S. District Court Chief Judge John R. Tunheim this morning. She succeeds Gregory Brooker who has served as the United States Attorney since March 2017.
“It is truly an honor to return to this office and serve as United States Attorney,” said U.S. Attorney MacDonald. “I am looking forward to leading a team of dedicated professionals and working alongside our law enforcement partners in the pursuit of justice on behalf of all Minnesotans.”
As United States Attorney, Ms. MacDonald is the top-ranking federal law enforcement official in the District of Minnesota. She will oversee a staff of 99 employees, including 52 attorneys and 47 support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, firearms, narcotics, child exploitation, human trafficking, financial fraud, healthcare fraud, and public corruption. The office is also responsible for representing the United States in affirmative and defensive civil cases, as well as assisting communities throughout Minnesota in appropriate community-building efforts designed to enhance public safety.
Before taking office, U.S. Attorney MacDonald was a judge in Dakota County since 2009. Prior to her judgeship, from 2000-2009, U.S. Attorney MacDonald served as an Assistant U.S. Attorney for the Northern District of Illinois and for the District of Minnesota. She began her legal career in 1997 as a judicial clerk to Judge James Henry Alesia of the U.S. District Court in Chicago. She then joined the firm of Kirkland and Ellis in 1999.
U.S. Attorney MacDonald received her J.D. degree, with honors, from DePaul University College of Law, and her B.A. degree from the University of Notre Dame.
Upon taking office, U.S. Attorney MacDonald thanked Mr. Brooker for his continued and dedicated service to the office and to the Department of Justice.
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Epsom Woman Sentenced to Eight Years in Prison on Fentanyl Trafficking and Firearm ChargesRead the Press Release
CONCORD – Nicole Roskos, 30, of Epsom, was sentenced to eight years in federal prison for conspiracy to possess with intent to distribute controlled substances and using and carrying a firearm during and in relation to a drug trafficking crime, announced United States Attorney Scott W. Murray.
According to court documents and statements made in court, the investigation began when the defendant sold fentanyl to a cooperating individual. In September of 2017, police executed a search warrant at the defendant’s residence and found four firearms, ammunition, over 511 grams of fentanyl, and approximately $24,000.
Roskos previously pleaded guilty to the charges on March 2, 2018. After she is released from prison, the defendant will serve a three-year term of supervised release.
“The deadly combination of fentanyl trafficking and firearms pose a substantial threat to public safety,” said U.S. Attorney Murray. “We will continue to work with all of our law enforcement partners to identify and prosecute those who distribute deadly drugs such as fentanyl. It should be noted, that drug dealers who choose to use guns to further their unlawful activities subject themselves to longer prison terms when convicted.”
This matter was investigated by the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Georgiana L. Konesky.
###
Dorchester Landlords and Property Manager Agree to Settle False Claims Act AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today a $57,000 settlement with two landlords and a property manager of three Dorchester apartments to resolve allegations they submitted false claims to the federal government after receiving impermissible excess rent payments from two low income tenants while participating in a federal housing subsidy program.
The Department of Housing and Urban Development provides federal funding through the Federal Housing Choice Voucher program, commonly referred to as “Section 8,” to assist low income individuals in securing safe housing. The funding is provided through vouchers that are administered by local public housing agencies. The housing subsidy, which may cover all or a portion of a tenant’s monthly rent, is paid directly to the landlord. As a condition for receiving the housing subsidy, the landlord contractually agrees not to charge the tenant rent in excess of the amount set by the public housing agency.
Despite this restriction, the landlords, Latchmin Nannan and David Nannan, and the property manager, Rhea Nannan, allegedly collected excess rent from two Section 8 tenants each month at various times between September 2006 and December 2015. Kafer Nevins, one of the two Section 8 tenants, first raised this allegation in a lawsuit filed against the defendants under the qui tam, or whistleblower, provisions of the False Claims Act.
“The Section 8 program provides precious funding for low income individuals to afford safe housing,” said United States Attorney Andrew E. Lelling. “We will hold landlords to their obligations under the program to ensure that Section 8 tenants will not be taken advantage of.”
“This office places a high priority on investigating allegations of waste, fraud and abuse related to HUD’s Public Housing Program,” said Christina Scaringi, Special Agent in Charge, Office of Inspector General, U.S. Department of Housing and Urban Development. “Today’s settlement should serve as a warning to those willing to commit fraud involving HUD funded programs that we will pursue such cases to the fullest extent of the law,” she concluded.
The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The settlement agreement requires the defendants to pay $57,000 to the United States. Mr. Nevins will receive approximately $11,400 of the recovery in this case.
U.S. Attorney Lelling and HUD OIG SAC Scaringi made the announcement today. This case was handled by Assistant U.S. Attorneys Steven Sharobem and Elianna Nuzum of Lelling’s Office with the assistance of the United States Department of Housing and Urban Development’s Office of Inspector General.
District Man Sentenced to 15 ½ Years in Prison for Stabbing Two People in Southeast WashingtonRead the Press Release
WASHINGTON - Ulysses Goodine, 39, of Washington, D.C., was sentenced today to a 15 ½-year prison term for stabbing a man in Southeast Washington and then stabbing a woman who tried to stop the attack, U.S. Attorney Jessie K. Liu announced.
Goodine was found guilty by a jury in March 2018 of one count each of aggravated assault while armed and assault with significant bodily injury while armed, and two counts of assault with a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. Goodine was sentenced by the Honorable Juliet McKenna. Upon completion of his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 18, 2016, at approximately 10:45 p.m., Goodine got into an altercation with a 19-year-old man in in the 5000 block of D Street SE. The altercation followed a series of interactions between the two men that evening that had ranged from verbal exchanges to a friendly handshake. The chain of events ended with Goodine calling the victim over to him and stabbing him several times in the arm, shoulder, and back. The most severe wound – which penetrated the victim’s chest cavity and collapsed his lung – was delivered to the back, as the victim was attempting to run away. In addition to stabbing this victim, Goodine attacked a woman who tried to intervene by stabbing her in the hand.
Goodine was arrested on Oct. 21, 2016, and has been in custody ever since. At sentencing, the government noted that Goodine now has 15 convictions as an adult, including for offenses such as distribution of drugs and assaults.
In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department and the United States Park Police. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kathryn Rakoczy, Jennifer Kerkhoff, and Laura A. Bach; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Paralegal Specialists Antoinette Sakamsa and Tierra Nanches; Litigation Technology Specialist Claudia Gutierrez, and Victim/Witness Security Specialists Debra Cannon and Lesley Slade.
Finally, she expressed appreciation for the work of Assistant U.S. Attorneys Ellen D’Angelo and Maryam Adeyola, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Mississippi Compounding Pharmacy and Two of its Officers to Prevent Distribution of Adulterated DrugsRead the Press Release
WASHINGTON – The U.S. District Court for the Northern District of Mississippi entered a consent decree of permanent injunction against defendants Delta Pharma, Inc. (Delta Pharma), its President, Dr. Tommy T. Simpson, and its Vice President and Pharmacist in Charge, Charles Michael Harrison, to prevent the distribution of adulterated drugs in violation of federal law, the Department of Justice announced today.
The entered permanent injunction stems from a complaint the Department filed in the U.S. District Court for the Northern District of Mississippi on June 4, 2018, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged, among other things, that the defendants distributed adulterated drugs in interstate commerce.
As part of the permanent injunction, defendants are enjoined from manufacturing, holding, or distributing any drugs manufactured from their facility unless they comply with specific remedial measures. Those measures include submitting a plan to FDA, which will provide for an independent expert to conduct inspection(s) of defendants’ facility and ensuring that defendants implement all recommended corrective actions. In addition, the defendants must report to FDA the actions they have taken to correct all insanitary conditions and deviations from current good manufacturing practice brought to their attention by the FDA or defendants’ expert. The permanent injunction provides that defendants cannot resume manufacturing, holding, and distributing such drugs until FDA notifies them in writing that they appear to be in compliance with the ordered remedial measures.
“Compounding pharmacies have a responsibility to ensure that they process and label drugs in a manner that ensures the safety and quality of such drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to work with FDA to ensure that doctors and patients can rely on the drug safety protections in federal law.”
“The Food, Drug, and Cosmetic Act is designed to protect the American people,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “This civil action demonstrates our commitment to enforce laws designed to protect the health and safety of the American public.”
According to the complaint filed by the Department, defendants’ drugs were adulterated because they were prepared, packed, or held under insanitary conditions whereby they may have been contaminated or may have been rendered injurious to health. The complaint also alleged that defendants’ drugs were adulterated because defendants failed to comply with current good manufacturing practice requirements.
FDA conducted an inspection of Delta Pharma in February 2017. According to the complaint, FDA investigators observed and documented numerous insanitary conditions, including the use of fifty-foot-long tubing to process purportedly sterile drugs, without determining whether the procedures for sterilizing the tubing are effective or assessing the tubing’s compatibility with the drug products to ensure that chemicals or particulates from the tubing do not leach, interact, or otherwise contaminate such drug products.
In addition, the complaint alleges that during the 2017 inspection, FDA documented numerous deviations from current good manufacturing practice requirements for drugs, including defendants’ failure to establish and follow appropriate written procedures that are designed to prevent microbiological contamination of drug products purporting to be sterile. According to the complaint, the FDA also documented that defendants failed to thoroughly review and investigate any unexplained discrepancy or the failure of a batch or any of its components to meet any of its specifications; and failed to establish an adequate quality control unit that has the responsibility and authority to approve or reject all components, drug product containers, closures, in-process materials, packaging material, labeling, and drug products, and has the authority to investigate any errors that may have occurred.
The consent decree of permanent injunction also resolved allegations in the complaint filed by the Department that the defendants distributed misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The government is represented by Trial Attorney Joshua D. Rothman of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney John Gough of the U.S. Attorney’s Office for the Northern District of Mississippi, with the assistance of Associate Chief Counsel Laura Akowuah of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Mississippi, visit its website at https://www.justice.gov/usao-ndms.
Delevan Man Sentenced to More Than 20 Years in Prison on A Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that John P. Cutler, 35, of Delevan, NY, who was convicted receipt of child pornography following a prior conviction, was sentenced to serve 262 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that between July 2016 and September 26, 2016, the defendant searched for and downloaded images and videos of child pornography online. Cutler saved the child pornography on a laptop computer. A forensic examination of the computer revealed approximately 1875 images and 199 videos of child pornography. Some of the images and videos depicted prepubescent minors as well as depictions of violence against the minors.
The defendant was previously convicted in New York State Court of committing a Criminal Sexual Act in the Second Degree.
Today’s sentencing is the result of an investigation by agents of the Federal Bureau of Investigation, under the direction of Gary Loeffert, Special Agent-in-Charge, and the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy Whitcomb.
Delaware Businessman Sentenced to Prison for Tax CrimesRead the Press Release
Wilmington, Del. – David C. Weiss, United States Attorney for the District of Delaware announced today that Jeffrey Minner, age 55, was sentenced to 18 months in prison by U.S. District Court Judge Gregory Sleet. In addition, Minner was ordered to pay $1,223,660 in restitution to the IRS.
According to statements made at the sentencing hearing and documents filed in court, Minner owned and operated Advanced Enterprises Incorporated, a commercial cleaning company that employed between 140 and 185 employees at any given time. Minner pled guilty to withholding taxes from his employees but failing to pay those monies over to the Internal Revenue Service (“IRS”).
Over the course of five years between 2011 and 2016, Minner collected in excess of $1.2 million in employee Medicare, Social Security, and income taxes that he did not pay over to the IRS. Instead, Minner used a portion of those monies to fund his lifestyle and pay off other debts.
In sentencing Minner to prison, U.S. District Court Judge Gregory Sleet said, “I hope this sentence will promote a greater respect for the law.”
U.S. Attorney Weiss added, “The U.S. Tax Code operates on a system of voluntary compliance. Not only will this sentence deter others who might consider diverting employee tax obligations to line their own pockets, but it represents justice for every tax-paying citizen.”
The case was prosecuted by Assistant U.S. Attorneys Whitney C. Cloud and Alexander P. Ibrahim and investigated by special agents from IRS Criminal Investigation.
DOJ Reaches Settlement with Washington Health Care Authority to Improve Services to Patients Who are Deaf or Hard of HearingRead the Press Release
The U.S. Department of Justice, working through the U.S. Attorney’s Office, and the Washington Health Care Authority (HCA) today entered into a settlement designed to improve important interpreter services for low income patients with hearing disabilities, announced U.S. Attorney Annette L. Hayes. The settlement calls for HCA to vastly increase the number of sign language interpreters it has available to attend Apple Health Plan (Medicaid) medical appointments and interpret for patients who are hearing impaired and/or their companions. Under the terms of the settlement, the number of interpreters under contract statewide will be increased from fewer than ten to more than 100.
“The ability of people with hearing disabilities to fully understand and thus participate in their medical care is a fundamental right protected by federal law,” said U.S. Attorney Annette L. Hayes. “Healthcare providers, and state agencies involved in healthcare, must ensure that their services are provided in a manner that does not exclude people with disabilities.”
An investigation by the U.S. Department of Justice, led by the U.S. Attorney’s Office for the Western District of Washington, revealed that since 2012, HCA’s Interpreter Services Program has contracted with CTS LanguageLink to provide interpreter services for medical appointments. However, during the term of that five year contract, CTS LanguageLink only had between zero and eight sign language interpreters available for Apple Health appointments state-wide, with no sign language interpreters available in most counties. This resulted in fewer than 30% of all requests for interpreter services being fulfilled. As a result, appointments with medical professionals were often cancelled or rescheduled when no interpreter was available. In some instances the appointments went forward with inferior means of communicating with the patient or their caregiver. The investigation concluded that HCA was violating the Americans with Disabilities Act because it failed to ensure that the Medicaid benefits of the Apple Health program were being provided equally to qualified individuals with disabilities.
Under the terms of the settlement, by July 1, 2018, HCA will contract with an interpreter service provider that has at least 100 sign language interpreters statewide. By April 2019, HCA will need to show an appointment fulfillment rate of at least 90 percent. If any region of the state falls short of that requirement, the settlement calls for HCA to take specific steps to recruit additional sign language interpreters.
The settlement also calls for immediate relief for the interpreter shortfalls by requiring HCA to permit healthcare providers to immediately obtain their own ASL interpreter for healthcare appointments outside of the HCA system and receive reimbursement by HCA for those services. The settlement also calls for HCA to use the Apple Health website and other communications tools to inform patients of their rights to interpreter services along with a grievance procedure if they believe their rights have been violated.
The agreement will be in force for three years and during that time the HCA will collect data on requests and fulfillment for sign language interpreting. The data will be provided to the U.S. Attorney’s Office, Western District of Washington on a quarterly basis so that the Department of Justice can ensure services are being provided as required.
Assistant United States Attorney Christina Fogg led the investigation and negotiated the settlement.
Convicted Felon Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney James P. Kennedy, Jr. announced today that Aaron Lucas, aka B-Wise, 39, of Buffalo, NY, who was convicted of being a felon-in- possession of a firearm, was sentenced to serve 48 months in federal prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Meghan A. Tokash, who handled the case, stated that on October 25, 2015, a New York State search warrant was executed at the defendant’s Busti Avenue residence in Buffalo. Officers recovered a .22 caliber semi-automatic rifle.
Lucas was convicted in 2003 of a felony charge in state court and as a result was prohibited from legally possessing a firearm.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division.
Claims Specialist at Social Security Administration Arrested on Fraud and Identity Theft Charges for Allegedly Misappropriating at Least $680,000 in Fraudulent BenefitsRead the Press Release
CHICAGO — A claims specialist for the U.S. Social Security Administration has been indicted on federal fraud and identity theft charges for allegedly approving and pocketing at least $680,000 in fraudulent benefits.
ANNE AROSTE, also known as “Ann Aroste,” worked as a claims specialist at the SSA’s field office in Aurora. Aroste was responsible for processing applications for Social Security benefits via the agency’s electronic records system. According to the indictment, Aroste created fraudulent applications for benefits on the Social Security earnings records of deceased workers. She then used her employee credentials to approve the applications and to route the payments to bank accounts she controlled, the indictment states.
From 2013 to last month, Aroste caused the U.S. Treasury Department to issue at least $680,962, in fraudulent payments, the indictment states.
The indictment charges Aroste, 42, of Montgomery, with five counts of wire fraud and five counts of aggravated identity theft. She was arrested this morning and pleaded not guilty at an afternoon arraignment before U.S. Magistrate Judge Daniel G. Martin. A detention hearing is set for June 13, 2018, at 11:00 a.m., before U.S. District Judge Manish S. Shah.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Tracey Thanos, Special Agent-in-Charge of the Social Security Administration’s Office of Inspector General in Chicago; and Benjamin Sides, Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
The indictment describes five instances in which Aroste allegedly caused an application for Social Security benefits to be submitted in the names of individuals whom Aroste falsely claimed had been married to deceased workers. Aroste used her employee credentials to approve the fraudulent applications for survivor’s benefits based on the Social Security earnings of the deceased workers, the indictment states. The Treasury then transmitted the benefit payments into Aroste’s bank accounts.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in prison, while each count of aggravated identity theft carries a mandatory, consecutive prison sentence of two years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Special Assistant U.S. Attorney Jared C. Jodrey.
Bangor Man Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that David Jack, 44, of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 10 years in prison and 15 years of supervised release for possessing child pornography. Jack pleaded guilty on January 26, 2018.
According to court records, in the summer of 2016, the defendant, while living in Bangor, used his cellular telephone to show images of children engaged in sexual activity to a 9-year-old girl. Shortly thereafter, detectives with the Bangor Police Department obtained a search warrant for the defendant’s home and seized two laptop computers and a cellular telephone. A forensic examination of those devices revealed over two thousand images of children, many of them prepubescent, engaged in sexually explicit conduct.
The case was investigated by the Bangor Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Albany Man Sentenced to 210 Months for Producing Child PornographyRead the Press Release
ALBANY, NEW YORK – Brennan McNeil, age 26, of Albany, was sentenced today to 210 months in prison for sexually exploiting a child for the purpose of producing child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation.
As part of his guilty plea on March 5, McNeil admitted that, in early 2017, he produced a video of a 10-year-old child being subjected to sexually explicit conduct. McNeil produced the video in North Carolina, where he lived at the time, and saved it on a thumb drive that he brought with him when he moved, in May 2017, from North Carolina to New York
Senior United States District Judge Thomas J. McAvoy also sentenced McNeil to a life term of post-imprisonment supervised release. McNeil must also register as a sex offender upon his release from prison.
This case was investigated by the FBI, the Colonie Police Department, and the New York State Police, and was prosecuted by Assistant U.S. Attorneys Joseph A. Giovannetti and Katherine Kopita.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Albany Attorney Admits to Stealing from Elderly Clients in $11.8 Million Estate FraudRead the Press Release
ALBANY, NEW YORK – Richard J. Sherwood, age 58, of Guilderland, New York, pled guilty today to money laundering and tax crimes, and admitted his role in stealing approximately $11.8 million from estates for which he served as an attorney and fiduciary.
The announcement was made by United States Attorney Grant C. Jaquith; New York Attorney General Barbara D. Underwood; Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
Sherwood also pled guilty today, in Albany County Court, to grand larceny in the second degree, in a case brought by the New York Attorney General’s Office.
United States Attorney Grant C. Jaquith stated: “Richard Sherwood betrayed his clients and his profession when he stole $11.8 million from their estates. His elderly clients, including one who suffered from dementia, planned to continue their philanthropy after their deaths by using their estates to support churches, charities, and civil organizations. Instead of carrying out their wishes, as he was required to do by both legal and ethical obligations, Sherwood used his legal skills to divert and steal their money. Any lawyer preying on elders should take notice that criminal conduct by attorneys will be aggressively investigated and prosecuted to the fullest extent of the law.”
New York Attorney General Barbara D. Underwood said: “New Yorkers should be able to trust that their financial advisors will make sound decisions – not scheme to line their own pockets. We will continue to hold accountable those that try to game the system and violate the public trust.”
Sherwood, an attorney since 1988, practiced primarily in the area of trusts and estates. Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.
Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.
In pleading guilty, Sherwood admitted that after Pauline Bruggeman’s death, he and another person conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013. Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013.
FBI Acting Special Agent in Charge Janelle M. Miller stated: “Richard Sherwood abused his position and defrauded clients who trusted him with their life savings. This is a case about greed and abuse of trust. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and prosecuted. Mr. Sherwood will now face serious consequences for his fraudulent actions.”
IRS-CI Special Agent in Charge James D. Robnett stated: “Richard Sherwood was entrusted to ensure the financial security of these innocent victims but instead chose to utilize his profession to unjustly enrich himself. Attorneys who abuse their fiduciary responsibilities and commit their own financial crimes must be held responsible.”
Sherwood admitted that he and a co-conspirator stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and the conspirator controlled. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake in Galway, New York.
Sherwood’s co-conspirator is presumed innocent unless and until proven guilty.
Sherwood admitted that he and the co-conspirator induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and the co-conspirator to transfer Bruggeman/Urban assets to themselves. Sherwood and his co-conspirator also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves.
Sherwood also pled guilty to filing false federal tax returns in 2013 and 2015. These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme.
Sherwood faces up to 20 years in prison, a maximum fine of $250,000, and up to 3 years of post-imprisonment supervised release when he is sentenced by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Sherwood has agreed to forfeit $3,742,211.65 that the United States Attorney’s Office and FBI have already seized from him, as well as the residence on Galway Lake that had previously belonged to the Bruggemans.
Sherwood served as Guilderland Town Justice from 2014 until his arrest, on state charges, on February 23, 2018. He resigned his position on March 5.
The federal case is being investigated by the FBI and IRS-CI, and is being prosecuted by Assistant U.S. Attorney Michael Barnett. Assistant U.S. Attorney Tamara B. Thompson is prosecuting the forfeiture aspects of this case.
The state case is being prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Daniel G. Cort and Deputy Bureau Chief Stacy Aronowitz. The Criminal Justice Division is led by Executive Deputy Attorney General Margaret Garnett.
The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam. The Investigations Bureau is led by Chief Dominick Zarrella. Meaghan Scovello, Associate Forensic Auditor, provided the financial analysis. The Forensic Audit Section is supervised by Edward Keegan. Senior Analyst Sara Pogorzelski assisted in the investigation.
Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
SIOUX FALLS, SD – Attorney General Jeff Sessions and U.S. Attorney for the District of South Dakota Ron Parsons announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis. The official announcement was made on June 4, 2018, the 500th day of the Trump Administration.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In the District of South Dakota, one of these additional AUSAs will focus on violent crime and one on civil enforcement of laws regulating the use and distribution of prescription opioids. In addition to these newly created positions, the District of South Dakota has already added two AUSAs to its Pierre office this year who will focus on prosecuting crimes committed in Indian Country, and is in the process of hiring an AUSA for its Rapid City office to prosecute drug crime.
“We are grateful to the Administration for this demonstrated commitment to reducing violence, drug trafficking, and overdose deaths,” said U.S. Attorney Parsons. “Under the leadership of Attorney General Sessions, we are working as hard as we can every day to help make every community in South Dakota a safer place to live.”
74 Arrested in Coordinated International Enforcment Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Memphis, TN – Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
• Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
• Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
• Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
• Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
The BEC scam is related to other forms of fraud such as:
• “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
• “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
• “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
• “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
• “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit:www.ic3.gov/media/2018/180611.aspx
74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
- Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
- Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
- Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
The BEC scam is related to other forms of fraud such as:- “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
- “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
- “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
- “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
- “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“The deceptive and illicit practices that drive cyber fraud schemes have no place in our South Florida community,” stated U.S. Attorney Benjamin Greenberg for the Southern District of Florida. “Shell companies, money mules, email account takeovers and wire fraud disrupt legitimate businesses and have devastating financial consequences for the victims. A lifetime of savings can disappear with a keystroke. We remind everyone to be vigilant, to protect your personal identifying information and to be extremely cautious of cyber-scams.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell, U.S. Postal Inspection Service. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
- Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
- Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
- Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
- The BEC scam is related to other forms of fraud such as:
- “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
- “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
- “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
- “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
- “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx
An indictment, criminal complaint, and information sets forth a formal charge against a defendant. Under the law, that charge is merely an accusation and a defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm. The following BEC related matters are currently being handled by the U.S. Attorney’s Office for the Southern District of Florida: Case Nos. 17-CR-20748, 18-CR-20170, and 18-CR-20415.
9 June 2018
Arizona Man Arrested for Threatening Harvard Black Commencement Attendees in 2017Read the Press Release
BOSTON – An Arizona man was arrested last night in connection with posting threats to bomb Harvard and shoot attendees at the Black Commencement event held on May 2017.
Nicholas Zuckerman, 24, was indicted on two counts of transmitting in interstate and foreign commerce a threat to injure the person of another. Zuckerman was arrested last night and will appear in federal court in Boston at a later date.
On or about May 13, 2017, Zuckerman allegedly commented on a post published to Harvard University’s Instagram account, saying: “If the blacks only ceremony happens, then I encourage violence and death at it. I’m thinking two automatics with extendo clips. Just so no nigger gets away.” It is further alleged that on that same date, Zuckerman posted a comment to another Harvard Instagram post, saying: “#bombharvard and end their pro-black agenda.” Several minutes later, Zuckerman allegedly commented “#bombharvard” on other users’ posts approximately 11 times over a span of four minutes.
A concerned citizen who saw the posts reported them to the Harvard University Police who ultimately referred the case to federal authorities.
The charge of transmitting in interstate and foreign commerce a threat to injure the person of another of provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling, Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division, and Harvard University Chief of Police Francis D. Riley made the announcement today. Assistant U.S. Attorneys Anne Paruti of Lelling’s Major Crimes Unit and Scott Garland of Lelling’s National Security Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
8 June 2018
White River Man Indicted for Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Ron Parsons announced that a White River, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Roy Brushbreaker, III, age 24, was indicted on May 15, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 6, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 28, 2017, Brushbreaker knowingly engaged in, and attempted to engage in, a sexual act with a minor female.
The charge is merely an accusation and Brushbreaker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brushbreaker was released on bond pending trial. A trial date has not been set.
Wellpinit Man Sentenced to 60 Months for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Spokane – Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Bazil N. Peone, age 31, of Wellpinit, Washington, was sentenced after having pleaded guilty on February 15, 2018, to possession with intent to distribute five grams or more of pure methamphetamine. United States District Judge Stanley A. Bastian sentenced Peone to a 60-month term of imprisonment, to be followed by a five-year term of court supervision after he is released from Federal prison.
According to information disclosed during court proceedings, Kalispel Tribal Police officers received information that someone was residing without permission at an apartment in Airway Heights, Washington. On October 26, 2017, the officers entered the apartment with a key, encountered the lone occupant, Peone, and arrested him. After obtaining a warrant to search the apartment, officers seized 74 grams of heroin, 44.5 grams of pure methamphetamine, 4.8 grams of cocaine, psilocybin mushrooms, scales, distribution supplies, drug paraphernalia, drug ledgers, several firearms and rounds of ammunition, and two ballistic vests.
Joseph H. Harrington said, “Prosecuting drug crimes continues to be a priority for the United States Attorney’s Office for the Eastern District of Washington. Individuals who engage in the illegal distribution of controlled substances should be aware that there are serious criminal penalties connected with drug distribution and that this Office is committed to prosecuting aggressively drug and firearm-related cases in the Eastern District of Washington.”
This case was investigated by the Kalispel Tribal Police, the Bureau of Indian Affairs, and the Spokane Resident Office of the United States Drug Enforcement Agency. This case was prosecuted by Patrick J. Cashman, Assistant United States Attorney for the Eastern District of Washington.
U.S. Attorney and District Attorney General Announce Federal and State Charges Related to Death of Dickson County Sheriff's DeputyRead the Press Release
In a joint announcement, Attorney General Jeff Sessions and U.S. Attorney Don Cochran announced federal charges against Steven J. Wiggins, 31, of Dickson, Tennessee, following an announcement by District Attorney General Ray Crouch that Wiggins, along with Erika Castro-Miles, 38, also of Dickson, had been indicted for the murder of Dickson County Sheriff’s Sergeant Daniel Baker.
Wiggins was charged in a criminal complaint yesterday afternoon with violations of four federal statutes, including carjacking resulting in the death of Sergeant Baker. The criminal complaint also charges Wiggins with using, carrying and discharging a firearm during the commission of a crime of violence; being a convicted felon in possession of a firearm; and using, carrying and discharging a firearm during a crime of violence, which resulted in the death of another person.
“At the Department of Justice, we back the women and men in blue. Violence against law enforcement officers – federal, state, local or tribal – will not be tolerated,” said Attorney General Sessions. “Sergeant Daniel Baker served our country and the people of Tennessee faithfully and honorably, first as a Marine and then as a member of the Dickson County Sheriff’s Office, before he was killed in the line of duty. The Department of Justice will hold those responsible for his murder accountable to the fullest extent of the law.”
U.S. Attorney Don Cochran, joined by District Attorney General Ray Crouch; Dickson County Sheriff Jeff Bledsoe; and the leadership of local, state and federal law enforcement, made a joint announcement of state and federal charges at a morning news conference in Dickson, Tennessee.
“We stand here in absolute solidarity to say to anyone who commits an act of violence against a law enforcement officer, particularly if you kill or seriously injure one of our men and women in blue, you will face the full force and effect of our justice system and we will be unrelenting in our unified efforts to bring you to justice – just as we have done here,” said U.S. Attorney Cochran.
District Attorney General Ray Crouch announced that a grand jury in Dickson, Tennessee had returned indictments on Wednesday, charging Steven Wiggins and Erika Castro-Miles with the murder of Sergeant Daniel Baker. U.S. Attorney Don Cochran then announced the federal charges brought yesterday against Steven Wiggins.
“Yesterday, a Dickson County grand jury, sitting in special session, returned indictments charging Steven Wiggins and Erika Castro-Miles with the willful and premeditated murder of Sergeant Daniel Baker,” said District Attorney General Ray Crouch. “I look forward to seeking justice on behalf of his family and this community.” I am grateful for the support of the United States Attorney and will work with all of our partners at every level until justice is achieved.”
The complaint alleges that on May 30, 2018, Sergeant Daniel Baker responded to a suspicious vehicle call in Dickson County, Tennessee. Upon arrival, Sergeant Baker encountered two individuals in a vehicle, later identified as Steven J. Wiggins, the driver, and Erika Castro-Miles, the front passenger. The vehicle had a flat tire and was not drivable. Sergeant Baker subsequently determined that the vehicle had been stolen and ordered both occupants out of the car. Wiggins then claimed his door would not open and Sergeant Baker ordered him to exit from the passenger side. According to the body cam video recovered from Sergeant Baker, he then walked around the rear of the vehicle to the passenger side, at which time Wiggins initially fired approximately five rounds from a .45 caliber pistol, Sergeant Baker was struck by at least one of those rounds and attempted to take cover before collapsing several yards away. While Sergeant Baker was lying wounded on the ground, Wiggins fired five additional rounds, the last three appearing to have been fired at close range. Initial autopsy findings showed that Sergeant Baker suffered six gunshot wounds; two to his torso; one to his hand and three to the left side of his head.
The complaint also alleges that after shooting Sergeant Baker, Wiggins re-positioned Baker’s patrol car and dragged Sergeant Baker’s body to the car and placed it in the rear seat and drove away. Wiggins then drove the patrol vehicle three to four miles away and into a field near the intersection of Bear Creek Valley Road and Byrd Road, in Dickson County, where he set a fire inside the vehicle and left the scene.
The complaint further alleges that at the time Wiggins was captured by the Tennessee Highway Patrol on June 1, 2018, his backpack contained a .45 caliber pistol and a Glock pistol.
Subsequent investigation by the Tennessee Bureau of Investigation and the ATF determined that shell casings found at the scene where Sergeant Baker was shot matched the .45 caliber weapon and that the Glock recovered from Wiggins’ backpack had been previously purchased by Sergeant Baker’s wife.
Finally, the complaint alleges that Wiggins had previously been convicted of aggravated assault, a Class C felony, in December 2017 in Williamson County, Tennessee, and had previously been convicted of domestic violence in Dickson County, Tennessee, in 2009. Each of these convictions prohibits Wiggins from possessing a firearm.
U.S. Attorney Cochran praised the work of the Dickson County Sheriff’s Department, District Attorney General Ray Crouch; the Tennessee Bureau of Investigation; the ATF; the Tennessee Highway Patrol; the FBI; and the numerous local, state and federal agencies who participated in the investigation, search and ultimate capture of Wiggins. U.S. Attorney Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Two Members of “Central Divisadero Players” Gang Sentenced to Multiple Life Sentences for Murder and PimpingRead the Press Release
SAN FRANCISCO – Charles Heard (aka “Cheese”), and Jaquain Young (aka “Loc”), were sentenced today to multiple terms of life in prison, announced Acting United States Attorney Alex Tse and FBI Special Agent in Charge John F. Bennett. The sentences were handed down by the Honorable William Orrick, U.S. District Judge.
Heard, 33, and Young, 44, as well as co-defendants Adrian Gordon (aka “Tit”), 29, Esau Ferdinand (aka “Sauce”), 35, and Monzell Harding, Jr., 26, were each convicted of racketeering charges by a federal jury on March 5, 2018. The verdict followed a 14-week trial in which the jury heard evidence about the San Francisco gang referred to as Central Divisadero Players, often referred to as Central Divis Playas or CDP.
“The multiple life sentences handed down today is the just punishment under the law for the proven heinous crimes of violence,” said Acting U.S. Attorney Tse. “This office will zealously advocate for the strongest sentences in these gang related crimes to vindicate the rights of victims and protect our community against crimes of violence.”
Heard was convicted of murdering Andre Helton and Isiah Turner in a double-homicide that took place on August 14, 2008, near the University of San Francisco. He was also convicted of racketeering conspiracy.
Young was convicted of murdering Andre’s brother, Jelvon Helton, at the Gravity bar in the Marina District of San Francisco on November 1, 2010. In addition, Young was convicted of racketeering conspiracy, as well as separate pimping charges – including attempting to entice and persuade a minor to engage in prostitution between August 9, 2012, and March 11, 2013.
Judge Orrick sentenced Heard to four life sentences for the murders of Turner and Andre Helton. He sentenced Young to three life sentences for the murder of Jelvon Helton and one life sentence for the attempted pimping of a minor, plus a ten-year sentence to run consecutively for a related firearms charge. Judge Orrick also sentenced Young to 20 years in prison (the statutory maximum) for attempting to persuade an individual to travel for prostitution.
The defendants currently are in custody and will begin serving their sentences immediately. Defendants Ferdinand, Gordon, and Harding will be sentenced on June 29, 2018. Any sentence for these individuals will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gordon, Heard, Ferdinand, Young, and Harding, were the first five defendants to stand trial for crimes alleged in an eleven-defendant, 22-count second superseding indictment filed on August 14, 2014. The indictment described CDP as a racketeering organization that worked collectively with other gangs in the Western Addition of San Francisco to preserve and protect power, territory, reputation, and profits of the enterprise through the use of intimidation, violence, assaults, and murder. During the trial, the jury heard evidence that the five defendants, all from San Francisco, each played a role in the racketeering conspiracy whose crimes ranged from murder to pimping. The jury concluded that the five defendants were guilty of the following specific crimes:
Defendant Found Guilty of the Following Charges Maximum Penalties
All Five Defendants
Racketeering conspiracy
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Racketeering, including murder,
in violation of 18 U.S.C. § 1962(d)
Life in prison and a $250,000 fine
Gordon
Attempted racketeering murder of Victim 3 on May 20, 2011,
in violation of 18 U.S.C. § 1959(a)(5)
10 years in prison and a $250,000 fine
Racketeering assault with a dangerous weapon May 20, 2011,
on Victim 3, in violation of 18 U.S.C. § 1959(a)(3)
20 years in prison and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm during a crime of
violence during the May 20, 2011, assault with a deadly weapon
of Victim 3, in violation of 18 U.S.C. § 924(c)
10 years in prison (mandatory minimum) consecutive to term of imprisonment for other offenses
Heard
Racketeering murder of Andre Helton on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Racketeering murder of Isiah Turner on August 14, 2008, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Use of a firearm in aid of the August 14, 2008, racketeering murders of Andre Helton and Isiah Turner, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Young
Racketeering murder of Jelvon Helton on November 1, 2010, in violation of 18 U.S.C. § 1959(a)(1)
Life in prison (mandatory minimum) and a $250,000 fine
Use, carry, brandishing, or discharge of a firearm in connection with November 1, 2010, murder in aid of racketeering of Jelvon Helton, in violation of 18 U.S.C. § 924(c)
10 years in prison (mandatory minimum) consecutive to term of imprisonment for other offenses
Use of a firearm in aid of the November 1, 2010, racketeering murder of Jelvon Helton, in violation of 18 U.S.C. § 924(j)(1)
Life in prison and a $250,000 fine
Attempting to entice and persuade an individual to travel for prostitution (from August 9, 2012, to March 11, 2013), in violation of 18 U.S.C. § 2422(a)
20 years in prison and fine of $250,000
Attempting to entice and persuade a minor to engage in prostitution (from
August 9, 2012, to March 11, 2013),
in violation of 18 U.S.C. § 2422(b)
Life in prison (10 years mandatory minimum) and fine of $250,000
As described in the chart above, the jury concluded that Adrian Gordon attempted to murder Victim 3, that Charles Heard murdered Andre Helton and Isiah Turner, and that Jaquain Young murdered Jelvon Helton. The evidence at trial also demonstrated that the gang intimidated victims, potential victims, and community members through violence and threats of violence.
The prosecution is the result of joint investigation by the Federal Bureau of Investigation; San Francisco Police Department’s Gang Task Force, Homicide Detail, Robbery Detail, Special Victims Unit, and the Northern, Park, and Bayview Stations; San Francisco District Attorney’s Office; and the San Pablo Police Department.
Two Essex County Men Found Guilty on Drug and Weapons ChargesRead the Press Release
NEWARK N.J. – Two Essex County, New Jersey, men charged with multiple drug and weapons offenses were convicted today on all counts, U.S. Attorney Craig Carpenito announced.
Jesse Tullies, 53, of Hillside, New Jersey, and Eugene Williams, 33, of Newark, were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.
During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, detectives recovered the following items:
- One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;
- One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing suspected cocaine base and cocaine;
- A 9mm Beretta NaNa semiautomatic handgun loaded with two rounds of 9mm ammunition;
- A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition;
- A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.
Laboratory testing confirmed that the substances recovered from under the rear bumper of the Chevrolet Lumina were heroin and crack cocaine.
Each of the drug counts on which the defendants were convicted carries a maximum penalty of 20 years in prison. The felon in possession of a weapon counts carry a maximum penalty of 10 years in prison. The use of a firearm counts carry a consecutive mandatory minimum of five years in prison and a maximum of life in prison. Sentencing is scheduled for Oct. 4, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John Devito in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Francisco Navarro of the National Security Unit and Elaine Lou of the Organized Crime/Gangs Unit in Newark.
Two Dominican Nationals Detained for Possession of Fraudulent Credit Card, ID Document Manufacturing EquipmentRead the Press Release
PROVIDENCE, RI – Two Dominican nationals were ordered detained in federal custody today after Pawtucket Police allegedly discovered them with a large array of equipment and materials used to produce fraudulent identification documents, credit cards and skimming equipment used to steal credit and debit card data.
Juan Josue Rodriguez-Castro, 35, and Wilberd Armando Reyes-Castro, aka “Jose M. Robels-Burgos,” 25, were arrested by Pawtucket Police on Wednesday when officers discovered the equipment after responding to a 911 emergency call for an alleged home invasion at the men’s residence.
United States Attorney Stephen G. Dambruch, Pawtucket Police Chief Tina Goncalves and Resident Agent in Charge of the United States Secret Service Brian Deck announce the filing of a federal criminal complaint charging Rodriguez-Castro and Reyes-Castro with possession of equipment to produce fraudulent credit cards and possession of equipment to produce fraudulent identification documents.
According to documents filed in U.S. District Court, it is alleged that on June 6, 2018, Pawtucket Police received a 911 emergency call reporting a home invasion in progress. The caller stated that she was in video communication with a person inside an apartment where a home invasion was occurring, and that she saw a struggle and heard someone inside the apartment state that someone had a firearm.
Upon arrival at the residence, Pawtucket Police detained three individuals as they fled out a rear door. It is alleged that jewelry and a watch belonging to individuals inside the apartment were located on the individuals detained by the officers. Officers then entered the apartment to search for the firearm allegedly used in the robbery.
Inside the apartment, officers encountered the occupants and observed in the dining room a large amount of computer equipment, including a lap top, color printers, a laminating machine and a shredder. The officer also saw a box addressed to Juan Rodriguez which contained a home-made ATM-style card reader and a DHL package containing American Express signature stickers similar to those used on the backs of credit cards. In a trash barrel, an officer observed an American Express card, and a Connecticut driver’s license. A Pawtucket Police officer conducted a query of the Connecticut driver’s license number and learned that there was no record of that number on file.
Based on the discovery of these items, the Pawtucket Police applied for and obtained a court-authorized search warrant. The execution of the search warrant resulted in the seizure of a mountain of materials used to fraudulently produce identification documents and credit cards as well as skimming equipment used to fraudulently obtain credit and debit card data of unsuspecting individuals.
The items seized by police included at least 7 laptops, skimming equipment used to steal credit and debit card information at gas pumps, a mobile credit card reader, the apparent inside of an ATM machine, a photo ID card printer, numerous flip phones, a laminating machine, color printers, numerous flash drives, other card readers, card scanners, blank checks, boxes of identification holograms used to make driver’s licenses from the states of Wyoming, Georgia, Indiana, New Jersey, Louisiana, North Carolina, South Carolina, Kentucky, Mississippi, Ohio, Pennsylvania, Florida, Tennessee and Connecticut, 3 Dominican passports in the names of other individuals, numerous blank credit cards with chips, paper cutter, color ribbons and numerous other items commonly used in the creation of fraudulent identification documents and access devices.
Reyes-Castro and Rodriguez-Castro made initial appearances in federal court today and were ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond. Immigration detainers have been lodged against both defendants by Immigration and Custom Enforcement.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter is being investigated by the Pawtucket Police Department, United States Secret Service and Homeland Security Investigations.
###
Two Defendants in the Baltimore Police Department GTTF Racketeering Case Sentenced to Seven Years in PrisonRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Catherine C. Blake sentenced former Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland, and former Detective Maurice Kilpatrick Ward, age 36, of Middle River, Maryland today for racketeering conspiracy. Hendrix was sentenced to seven years in prison, followed by three years of supervised release. Ward was also sentenced to seven years in prison, followed by three years of supervised release. Hendrix and Ward were formerly members of the Baltimore Police Department’s Gun Trace Task Force (“GTTF”).
The sentences were announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreements, Hendrix and Ward admitted to participating in four robberies from February through August. Hendrix and Ward also admitted that they were armed with their Baltimore Police Department (BPD) service firearms during the robberies, that individual victims of the robberies were physically restrained to facilitate the commission of the offenses, and that they authored false and fraudulent incident reports and other official documents in some cases in order to conceal their criminal conduct and otherwise obstruct justice.
For example, on February 17, 2016, Ward and one of his co-defendants stole $500 from an arrestee. Ward then authored a false BPD incident report to conceal the robbery.
On March 22, 2016, Hendrix and Ward admitted that they, along with two of their co-defendants, robbed a safe they found in the basement of a house they were searching, stealing more than $200,000 in the basement of a house they were searching.
Similarly, on June 24, 2016, while executing a search warrant in a home, Hendrix stole money and later, after the search, gave a portion of it to Ward.
On August 24, 2016, Hendrix stole money from an arrestee and then gave a portion of the cash to Ward.
Hendrix and Ward also admitted that they and their co-defendants routinely submitted false and fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of the State of Maryland. On these reports, Ward, Hendrix and their co-conspirators falsely certified that they worked their entire regularly assigned shifts, when they did not, and that they worked additional hours for which they received overtime pay, when they had not worked all and in some cases any of those overtime hours.
According to their plea agreements, Hendrix and Ward also admitted that they submitted false and fraudulent overtime reports on behalf of their co-defendants, with their co-defendants’ knowledge and at their direction, and that their co-defendants submitted false and fraudulent overtime reports on their behalf in return. They both admitted that the practice at the GTTF was that if a sub-set of the GTTF had a gun arrest, all members of the GTTF, regardless of whether they had actually participated in the arrest, would submit individual overtime reports, as if they did, and receive salary and overtime for it.
United States Attorney Robert K. Hur commended the FBI for its work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted these Organized Crime Drug Enforcement Task Force cases.
Two Charged in Shooting of ATF AgentRead the Press Release
HAMMOND – Blake King, age 19, of Chicago and Bernard Graham, age 25, of Calumet City were charged today by criminal complaint, announced U.S. Attorney Kirsch.
Both were charged by criminal complaint with the following charges:
- Forcibly assaulting, opposing, impeding, intimidating and interfering with Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives while they were engaged in the performance of their official duties, by use of deadly and dangerous weapons and infliction of bodily injury, and
- Using and carrying a firearm during and in relation to, and possessing in furtherance of a crime of violence, a firearm that was discharged.
According to documents in this case, during an undercover operation with ATF in the City of Gary, the individuals identified in this press release fired upon ATF Special Agents.
U.S. Attorney Kirsch stated, “Gun violence doesn’t stop at the state line and neither do government investigations. We will continue to coordinate with law enforcement and prosecutors in this jurisdiction and others including Northern Illinois to defeat these criminals. We will never tolerate gun violence and never stop doing all we can to defeat it.”
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case is being investigated by the ATF. Other agencies that assisted with the investigation were the FBI; DEA; Homeland Security Investigations; US Marshal’s Service; Indiana State Police; Gary Police Department; Hammond Police Department; East Chicago Police Department; Merrillville Police Department; Purdue University NW Police Department; Lake County Sheriff’s Office; Lake County Prosecutor’s Office and Indiana HIDTA. This case is being handled by Assistant U.S. Attorneys Thomas Mahoney and Nicholas Padilla.
###
Toledo man indicted for selling heroin that resulted in fatal overdoseRead the Press Release
A Toledo man was indicted in federal court for selling heroin that resulted in a fatal overdose last year, said U.S. Attorney Justin E. Herdman and FBI Special Agent in Charge Stephen D. Anthony.
Harold Sasse, 41, was indicted on one count of possession with intent to distribute a controlled substance resulting in death.
Sasse sold heroin on March 29, 2017 to two people, identified in court documents as E.M. and T.W. Sometime between that day and March 30, 2017, E.M. ingested the heroin and died, according to the indictment.
“Every death represents someone’s son or daughter, friend or neighbor,” said U.S. Attorney Justin Herdman. “We will seek prison sentences for those who profit off this epidemic while working to prevent future tragedies and getting help for those who want treatment.”
"Overdoses have killed far too many Americans,” said FBI Acting Special Agent in Charge Jeff Fortunato. “The FBI, in collaboration with the Toledo Police Department, is avidly committed to holding those like Harold Sasse accountable for selling the deadly drugs which are killing our fellow citizens."
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
This case was investigated by the Federal Bureau of Investigation and the Toledo Police Department. It is being handled by Assistant U.S. Attorney Tracey Ballard Tangeman.
An indictment is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
Three Men Plead Guilty to Charges in 2015 Slaying of Man Near Shaw/Howard Metro StationRead the Press Release
WASHINGTON – Three men, all from Washington, D.C., pled guilty today to charges stemming from the August 2015 slaying of Matthew Shlonsky, an innocent bystander who was shot on a crowded street in Northwest Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Andre Dudley, 22, Marcus King, 22, and Christopher Proctor, 28, pled guilty to one count of voluntary manslaughter while armed and two counts of assault with a dangerous weapon. Dudley also pled guilty to a charge of attempted assault with a dangerous weapon stemming from a jailhouse stabbing. The pleas took place in the Superior Court of the District of Columbia.
Dudley’s plea, which is contingent upon the Court’s approval, calls for Dudley to be sentenced to an agreed-upon 18 ½-year prison term for the shooting and an additional 22 months for the jailhouse stabbing, for a total of 20 years and four months of incarceration. King’s plea calls for an agreed-upon sentence of 15 to 20 years, and Proctor’s plea calls for an agreed-upon term of 12 to 14 years. The Honorable Juliet McKenna scheduled sentencing for Aug. 13, 2018. All three defendants remain held pending the sentencing hearing.
According to the government’s evidence, King and Proctor both associated with the Ninth Street neighborhood of Northwest Washington. On Saturday, Aug. 15, 2015, at approximately 4:45 p.m., King and Proctor were standing near a liquor store at the intersection of Seventh and S Streets NW, both armed with firearms. Dudley, meanwhile, drove to the area of Seventh and S in a red Chrysler 300 sedan. While stopped at the intersection of 8th and S Streets, Dudley got into an argument with Ninth Street crew members. One pulled out a gun, and Dudley pulled out his gun as well. King and Proctor were both nearby, and Proctor yelled out to other crew members to find out the identity of the person in the red car.
Dudley then turned from Eighth Street onto S Street and headed east. He adjusted his position so that his head and arms were outside the sunroof. He then pointed his gun at individuals on the south side of S Street, near Seventh. King and Proctor both fired shots at Dudley as he crossed their path. King fired seven shots from a .40-caliber semiautomatic firearm and Proctor fired 10 shots from a different .40-caliber semiautomatic. Dudley extended his arm out and fired several shots in the direction of King and Proctor.
Mr. Shlonsky, 23, had just gotten out of an Uber with friends and was heading to a concert at the Howard Theatre. He was walking in the 1800 block of Seventh Street NW, near the entrance to the Shaw/Howard Metro station, when one of the bullets from the shootout struck him in the chest. He was pronounced dead a short time later.
While King and Proctor were firing their weapons, a couple was walking on the sidewalk of the 700 block of S Street NW. The man and woman were each pushing strollers that had two young children inside each of them. Hearing the gunshots, the couple sprinted away; however, their proximity to the gunfire put them in the zone of harm.
While Dudley drove east on S Street NW, his vehicle came head-to-head with a vehicle turning left on S Street NW, from Sixth Street, NW. Blocked, Dudley again lifted his head and arms out of the sunroof, pointed a gun at the driver, threatened to kill him, and yelled at him to move his car. Scared, the driver moved his vehicle and Dudley then continued across S Street; as he sped into the 1900 block of Fourth Street NW, another man yelled at Dudley to slow down. In response, Dudley slammed on the brakes, rolled down his window, pointed an imitation firearm at the man, which the man believed was an actual firearm, and fired shots in the general vicinity of the man. Dudley then left the area. Dudley pled guilty to two counts of assault with a dangerous weapon for these crimes.
As part of the plea agreement, Dudley admitted to his role in the May 17, 2018 stabbing of a fellow inmate at the District of Columbia Jail. The victim of that incident sustained non-life-threatening injuries.
In announcing the pleas, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, including the FBI’s Cellular Analysis Survey Team, and the District of Columbia Department of Forensic Sciences.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Kimberley Nielsen, Laura Bach, and Jeffrey Nestler; former Assistant U.S. Attorney Shana Fulton; Paralegal Specialists Lornce Applewhite and Sharon Newman; Litigation Technology Specialist Leif Hickling, and Victim/Witness Advocate Marcia Rinker. Finally, they commended the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the case.
South Boston Man Arrested for Loansharking and Gambling ChargesRead the Press Release
BOSTON - A South Boston man was arrested today on loansharking and gambling charges.
Tam V. Nguyen, 50, was charged in an indictment with one count of conspiracy to collect extensions of credit by extortionate means and one count of operating an illegal gambling business.
According to the indictment, from April to August 2017, Nguyen conspired to collect an extension of credit from a victim. Nguyen also engaged in an illegal gambling business from September 2016 through August 2017.
As part of the same investigation, in August 2017, Vinh Quang Huynh, Quang PT Le, and Kim Nguyen, all of Dorchester, were charged with kidnapping, conspiracy to collect extension of credit by extortionate means, and operating an illegal gambling business. Ban “Bo” Tran was also charged with operating an illegal gambling business. On May 9, 2018, Le was sentenced to six years in prison, three years of supervised release and ordered to pay restitution of $6,300. In December 2017, Huynh pleaded guilty and is awaiting sentencing. The remaining defendants have pleaded not guilty and are pending trial.
The charge of conspiracy to collect extensions of credit by extortionate means provides for a sentence of no greater than 20 years in prison, three years of supervised release and fine of $250,000. The charge of operating an illegal gambling business provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William B. Evans; and Quincy Police Chief Paul Keenan made the announcement today. The Internal Revenue Service’s Criminal Investigation in Boston and the Massachusetts Department of Correction assisted with the investigation. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Signature Healthcare to pay more than $30 million to resolve False Claims Act allegations related to rehabilitation therapyRead the Press Release
ATLANTA – Signature HealthCARE, LLC (“Signature”), a Louisville, Kentucky based company that owns and operates approximately 125 skilled nursing facilities, including facilities in Georgia, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary, and skilled. Under the settlement agreement, Signature has agreed to pay more than $30 million.
The government’s investigation concerning Signature’s policies and practices, including whether unrealistic financial goals and scheduling therapy to achieve the highest reimbursement level regardless of the clinical needs of its patients, resulted in Signature providing and billing for unreasonable, unnecessary, and unskilled services for Medicare patients.
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
“Corporate goals should never get in the way of providing necessary quality healthcare,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “The OIG will continue to protect taxpayer dollars and vulnerable recipients of government healthcare programs.”
The message is clear, if you take advantage of programs like Medicare you will be held accountable,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves an investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia and allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlement also resolves allegations that Signature submitted forged certifications of patient need for skilled nursing care to the State of Tennessee’s Medicaid program.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Tennessee, the U.S. Department of Justice Civil Division’s Commercial Litigation Branch, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation.
The civil settlement was reached by Assistant U.S. Attorney Lena Amanti (Northern District of Georgia), Assistant U.S. Attorney Jason Ehrlinspiel (Middle District of Tennessee), and Christelle Klovers (Commercial Litigation Branch).
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.
Attachments:
Signature Healtcare Settlement AgreementSignature HealthCARE to Pay More Than $30 Million to Resolve False Claims Act Allegations Related to Rehabilitation TherapyRead the Press Release
Signature HealthCARE, LLC (Signature), a Louisville, Kentucky based company that owns and operates approximately 115 skilled nursing facilities, including 7 in middle Tennessee, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, the Department of Justice announced today. The settlement also resolves allegations that Signature submitted forged pre-admission certifications of patient need for skilled nursing to the state of Tennessee’s Medicaid program. Under the settlement agreements, Signature has agreed to pay more than $30 million. As part of the resolution, the State of Tennessee will receive a portion of the overall settlement.
“Today’s settlement demonstrates our continuing efforts to protect patients and taxpayer by ensuring that the care provided to beneficiaries of government-funded healthcare programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “Nursing home facilities provide important services to our elderly, and those facilities must uphold the trust placed in them by billing the government only for reasonable and necessary services.”
The government alleged that Signature engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: (1) presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; (2) providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; and, (3) pressuring therapists and patients to complete the planned minutes of therapy even when patients were sick or declined to participate in therapy.
“Health care providers who engage in deceptive practices place patients at unnecessary risk and contribute to the financial distress of our federal healthcare programs,” said U.S. Attorney Cochran for the Middle District of Tennessee. “Our dedicated teams of civil enforcement attorneys will work tirelessly with the relators who report fraud such as this and with our law enforcement partners who investigate healthcare fraud. When we determine that companies are cheating the taxpayers, we will hold them accountable as we have in this case.”
“Our most vulnerable citizens are put at risk when healthcare providers put their financial interests above their patients’ needs and valuable federal funds are diverted from where they are surely needed,” said U. S. Attorney Byung J. “BJay” Pak for the Northern District of Georgia. “This settlement demonstrates our commitment to pursuing healthcare providers who provide unnecessary care to advance their bottom line.”
“Signature was charged with illegally boosting profits by providing excessive amounts of therapy to patients whether they needed it or not,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General. “The decision to provide therapy should never be based on corporate financial considerations rather than a patient’s medical needs.”
The settlement resolves allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Offices for the Middle District of Tennessee and the Northern District of Georgia, the Office of Inspector General of the Department of Health and Human Services, the Tennessee Bureau of Investigation. Department of Defense, Office of Inspector General, the Defense Criminal Investigative Service, and the Department of Health and Human Services, Office of the Inspector General. Trial Attorneys Christelle Klovers and Denise Barnes of the Civil Division of the Department of Justice, Assistant United States Attorney Sarah K. Bogni of the Middle District of Tennessee, and Assistant United States Attorney Lena Amanti of the Northern District of Georgia represent the United States. Assistant Attorney General Philip Bangle represents the State of Tennessee.
The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.