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Wednesday 15 January 2025
Jury Convicts Portageville Man of Meth Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Portageville, Mo., man has been convicted in a jury trial of trafficking methamphetamine and illegally possessing firearms.
Michael C. Patton, 36, was found guilty on Tuesday, Jan. 14, of possessing methamphetamine with the intent to distribute, possessing firearms in furtherance of a drug-trafficking crime, and being a felon in possession of firearms.
Patton was a passenger in a Ford sedan that was stopped by Springfield police officers on May 12, 2021. When officers searched the vehicle, they found a backpack in the front passenger floorboard that contained a loaded Beretta firearm, along with a plastic bag that contained 344 grams of pure methamphetamine and Patton’s Missouri identification. Officers also found a small black backpack in the backseat floorboard that contained a loaded revolver.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Patton has prior felony convictions for stealing, possession of methamphetamine with intent to sell, and possession of cocaine with intent to sell.
Under federal statutes, Patton is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for approximately two and a half hours before returning guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Jan. 13.
This case is being prosecuted by Assistant U.S. Attorneys Cameron A. Beaver and Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Johnstown Woman Pleads Guilty to Trafficking Heroin, Fentanyl and Other NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Eric G. Olshan announced today.
Jessica Wilson, 39, pleaded guilty to Count One of two separate Superseding Indictments before United States District Judge Marilyn J. Horan on January 14, 2025.
In connection with the guilty plea, the Court was advised that, from in and around January 2021 to July 2021, in the Western District of Pennsylvania, Wilson conspired to distribute and possessed with intent to distribute quantities of heroin, cocaine base in the form commonly known as crack, and methamphetamine. Wilson was intercepted on a federal wiretap obtaining quantities of the drugs that she distributed to others. Further, from in and around April 2024 to June 2024, Wilson conspired to distribute and possessed with intent to distribute quantities of mixtures and substances containing fentanyl and crack cocaine.
Judge Horan scheduled sentencing for May 8, 2025. At each count, the law provides for a total sentence of up to 20 years in prison, a fine of up to $1 million, or both. Under the federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Maureen Sheehan-Balchon and Arnold P. Bernard Jr. are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Wilson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Indictment Charges 7 Hartford Gang Members with Murder & Racketeering OffensesRead the Press Release
Seven alleged members of a violent Hartford gang have been charged in a federal indictment accusing them of a years-long interstate RICO conspiracy involving multiple murders, attempted murder, gun trafficking, extortion, arson, drug trafficking, and other crimes.
The announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; Sharmese L. Walcott, State’s Attorney for the Hartford Judicial District; Hartford Police Chief Kenny A. Howell; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation (FBI); and Michael J. Krol, Special Agent in Charge of the New Haven Division of the Homeland Security Investigations (HSI).
The 15-count indictment, which was returned by a grand jury in Hartford on January 8, 2025, charges
ANGEL RIVERA, a.k.a. “Rico,” a.k.a. “Slatt,” 24
RAQUAN KNIGHT, a.k.a. “RQ,”21
PAUL DOWNER, a.k.a. “Luap Benji,” 28
MEKHI THOMPSON, a.k.a. “Midnight,”24
PAUL CLARKE, a.k.a. “Tommy Bunz,” 30
TYSHON WALKER, a.k.a. “Pone Gwapoo,”26
JOSHUA CRUZ, a.k.a. “Hop-out Curly,” 24Clarke and Walker were arrested on January 9, 2025, and were ordered detained. Rivera, Knight, Thompson, and Cruz were previously detained in state custody on related charges, and Downer was previously detained in state custody for unrelated offenses.
The indictment alleges that the Hoodstar Gzz gang, which since it was formed in 2010 has referred to itself by a variety of names, including “Hoodstars,” “Hoodstarz,” “Hoodstar Gzz,” and “Gz,” generally operates between Capen, Westland, Enfield, and Main Streets in Hartford. The gang has distributed narcotics and engaged in multiple violent acts against rival gang members and innocent citizens; trafficked narcotics in Vermont and moved firearms from Vermont to Connecticut; utilized stolen vehicles in furtherance of the gang’s affairs and burned vehicles that were used in the commission of crimes; and recorded and distributed rap music to promote the gang’s criminal activity.
Among the violent acts committed by the defendants, the indictment alleges that:
- On April 16, 2019, Thompson attempted to murder members of a rival gang, which resulted in gunshot wounds to individuals with the initials T.J., G.C., and J.H. in Hartford.
- On January 22, 2021, Downer shot R.F. in the femoral artery for failure to pay a drug debt in St. Johnsbury, Vermont.
- On April 10, 2021, Rivera, Knight, Cruz, and other Hoodstar Gzz members and associates shot and killed Jamari Preston, a member of the rival Ave gang and wounded J.O. in Hartford.
- On January 18, 2022, Rivera, Walker, and Cruz and other Hoodstar Gzz members and associates shot at A.G., a.k.a. “Watts,” and shot and injured J.O. in Hartford.
- On January 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates shot and killed Kendall Fair, a.k.a. “Swerve,” and shot and injured J.W. in Hartford.
- On June 19, 2022, Knight shot E.A. in Hartford.
- On August 1, 2022, Rivera and other members and associates of the Hoodstar Gzz gang shot and killed Brian Evans and shot and injured D.G. and J.M. in Hartford.
- On September 14, 2022, Thompson and Rivera got into a confrontation with Devante Gardner over a rental car Thompson failed to return. Thompson then shot and killed Gardner.
- On October 27, 2022, Thompson and Rivera were involved in a car accident with a black Nissan sedan. Thompson and Rivera fled the scene. The Nissan followed them for approximately 1.6 miles. Thompson then exited the vehicle and shot and killed the driver of the Nissan, Manuel Rodriguez.
“We allege that members of the Hoodstar Gzz have engaged in murder and numerous other violent acts against both rival gang members and innocent civilians, and their criminal activity extended to northern Vermont, where they trafficked drugs and acquired firearms, some of which they transported back to Connecticut,” said U.S. Attorney Avery. “This case is a clear demonstration of our commitment to relentlessly pursue and dismantle organizations that threaten the peace and security of our communities. The effort to connect these violent acts and bring these individuals to justice has been a collaborative one, and I want to thank the federal, state, and local law enforcement agencies involved for their dedication to make our communities, both here in Connecticut and in Vermont, safer.”
This indictment – which is the first RICO indictment since the launch of the Violent Crime Initiative (VCI) in Hartford in April 2024 – alleges that the defendants engaged in numerous violent acts, including shooting at suspected rival gang members and shooting and killing a motorist with whom two of the defendants got into a car accident,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Violent gangs like the Hoodstars terrorize local communities and threaten safety across Hartford. Today’s announcement demonstrates that the VCI is already making an impact in Hartford, through the deployment of Criminal Division resources, in close coordination with our partners, to target the specific drivers of violent crime and hold gang members accountable for their crimes.”
“The Hartford State’s Attorney’s Office and the U.S. Attorney’s Office have endeavored to partner on crime reduction strategies to benefit the community, law enforcement, and improve case outcomes,” said Hartford State’s Attorney Walcott. “There is a tremendous amount of work that goes into building these cases and it takes a team of people all rowing the same direction. These arrests are a clear sign of our commitment to making a significant impact on gun violence in and around the Hartford community, and we will continue to work, tirelessly, to bring to justice those responsible.”
“For more than two years, the FBI and its law enforcement partners have worked tirelessly to disrupt and dismantle the Hoodstarz organization,” said FBI Special Agent in Charge Fuller. “This violent criminal organization has been responsible for wreaking havoc in the Hartford area and its takedown is a positive step forward in the never-ending quest to keep our community safe. Let this be a firm message that the FBI and its local, state, and federal partners will remain relentless in the fight to identify, disrupt, and dismantle violent criminal organizations.”
“Criminal gangs terrorize communities, leaving violence and destruction in their wake,” said HSI Special Agent in Charge Krol. “These individuals have been charged with crimes ranging from firearms possession to murder and, if convicted, will face serious federal prison time. HSI works with our state, local, and federal partners to dismantle criminal gangs like the Hoodstar Gzzs and help communities reclaim their safety and their streets.”
The indictment charges Rivera, Knight, Downer, Thompson, Clarke, Walker, and Cruz with one count of conspiracy to engage in a pattern of racketeering activity, an offense that ordinarily carries a maximum term of imprisonment of 20 years. If the defendants are convicted of a special sentencing factor, they face a maximum term of imprisonment of life. These defendants are also charged with conspiring to distribute and possessing with intent to distribute controlled substances, which carries a mandatory sentence of at least 10 years’ imprisonment.
The indictment also charges Rivera and Thompson with murder in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. This offense carries a mandatory term of imprisonment of life, or death if the government seeks the death penalty in this matter. Both defendants are also charged with using and discharging a firearm during and in relation to a crime of violence, which carries a mandatory consecutive sentence of at least 10 years of imprisonment, and using a firearm during and in relation to a crime of violence causing death, which carries a maximum penalty of life imprisonment, or death if the government seeks the death penalty in this matter.
Finally, the indictment charges Cruz and Walker with possessing a machine gun during and in relation to a drug trafficking offense, which carries a mandatory consecutive sentence of at least 30 years of imprisonment, and illegal possession of a machine gun, which carries a maximum penalty of 10 years’ imprisonment.
This prosecution is a part of the Justice Department’s Violent Crime Initiative (VCI) in Hartford, and the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhood (PSN) programs.
The VCI surges law enforcement tools and resources to target gangs and other violent groups that are threatening the safety and security of communities in the cities across the nation. The VCI utilizes prosecutors from the Criminal Division’s Violent Crime and Racketeering Section – the nation’s foremost experts in racketeering prosecutions – to work alongside prosecutors from the U.S. Attorneys’ Offices, as well as dedicated investigative agents, analysts, and forensic experts from FBI, ATF, the Drug Enforcement Administration (DEA), and other federal, state, and local law enforcement agencies.
PSN brings together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This ongoing investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, HSI, ATF, the Hartford Police Department, the East Hartford Police Department, the Windsor Police Department, the Connecticut State Police, the Connecticut Forensic Science Laboratory, the Connecticut Department of Correction, the St. Johnsbury (Vt.) Police Department, the Northfield (Vt.) Police Department, and the Vermont State Police.
The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington, John T. Pierpont, Jr., and Shan Patel from the District of Connecticut, and Trial Attorneys Jeremy Franker and Christopher Usher from the Criminal Division’s Violent Crime and Racketeering Section, with substantial assistance from the U.S. Attorney’s Office for the District of Vermont.
Hiram Man Indicted for Possessing Enough Fentanyl to Kill up to 500,000 IndividualsRead the Press Release
ROME, Ga. - Darrlin Vernard Warner, also known as “Juice,” has been arraigned on federal charges of conspiracy to possess with intent to distribute fentanyl and methamphetamine, possession with intent to distribute fentanyl and methamphetamine, and possession of firearms in furtherance of drug trafficking.
“Warner was allegedly trafficking a substantial amount of fentanyl and methamphetamine, posing an immense threat to the safety of residents of Paulding and Douglas Counties,” said U.S. Attorney Ryan K. Buchanan. “Fentanyl and methamphetamine continue to ravage communities throughout northern Georgia. Our Office is especially proud of the impact that our federal, state, and local law enforcement made in this investigation.”
“Fentanyl poisonings and other dangerous drugs are taking a terrible toll on Georgia,” said FBI Atlanta Acting Special Agent in Charge Sean Burke. “Disrupting the manufacturers and distributers of this poison remains a high priority for the FBI and our law enforcement partners.”
“This indictment highlights the significant threat that fentanyl and methamphetamine pose to our communities,” said GBI Director Chris Hosey. “The seizure of enough fentanyl to potentially kill 500,000 people underscores the deadly scale of this crisis. The collaborative efforts of local, state, and federal law enforcement continue to be crucial in protecting our citizens and dismantling drug trafficking networks.”
“We are proud to stand united with our state, local, and federal law enforcement agencies in operations like this,” remarked Paulding County Sheriff Ashley Henson. “This interagency collaboration has enabled us to effectively eliminate a substantial amount of deadly fentanyl, heroin, cocaine, and methamphetamine from the streets of Paulding County. As the new Sheriff, I will relentlessly work to ensure that these dangerous substances are kept away from our children and residents.”
According to U.S. Attorney Buchanan, the indictment, information provided in court, and other publicly available information: In October and November 2024, law enforcement found during the course of their investigation evidence that Darrlin Warner allegedly conspired to distribute fentanyl and methamphetamine in the region of Paulding and Douglas Counties. On November 13, 2024, federal, state, and local agencies executed a federal search warrant on Warner’s home and vehicle, recovering approximately one kilogram (2.2. pounds) of fentanyl, approximately one pound of methamphetamine, five firearms, and approximately $177,000 in cash, as well as other suspected controlled substances.
Two milligrams of illicit fentanyl can be a lethal dose, and the approximate one kilogram of fentanyl recovered from Warner is enough to potentially kill as many as 500,000 people.
Darrlin Vernard Warner, aka “Juice,” 39, of Hiram, Georgia, was arraigned before U.S. Magistrate Judge Walter E. Johnson on January 14, 2025. He was indicted by a federal grand jury on December 10, 2024.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation - Cartersville Office, the Georgia Bureau of Investigation - Northwest Georgia Drug Task Force, the Paulding County Sheriff’s Office, and the Douglas County Sheriff’s Office, with valuable assistance provided by Paulding County Fire/Rescue and Metro Ambulance.
Assistant U.S. Attorneys Calvin A. Leipold, III and Thomas M. Forsyth, III are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strategic Initiative focused on combatting the fentanyl crisis in northwest Georgia. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Anyone with information about drug sales/trafficking in their area can report it to the GBI at1-800-597-TIPS (8477) or DEA’s Atlanta Division Office at (404) 893-7000. Online tips can be submitted at https://www.dea.gov/submit-tip.
The Office of the U.S. Attorney for the Northern District of Georgia encourages parents and children to learn about the dangers of fentanyl and other drugs at the following websites: www.justthinktwice.gov, www.GetSmartAboutDrugs.com, www.operationprevention.com/, www.CampusDrugPrevention.gov, and www.dea.gov/onepill.
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.
Hino Motors, a Toyota Subsidiary, Agrees to Plead Guilty and Pay over $1.6B to Resolve Emissions Fraud SchemeRead the Press Release
The U.S. Justice Department, Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and State of California today reached criminal and multiple civil resolutions, valued at over $1.6 billion, with Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. These resolutions are subject to approval by the U.S. District Court for the Eastern District of Michigan.
This unlawful conduct allowed Hino, a subsidiary of Toyota Motor Corporation, to improperly secure approvals to import and sell, and cause to be imported and sold, more than 110,000 diesel engines in the United States from 2010 to 2022. These engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.
“Today, Hino Motors, a subsidiary of Toyota, agreed to plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers that violated federal environmental laws and endangered public health,” said Attorney General Merrick B. Garland. “No company is above the law. I am grateful to our federal and state partners for their work to hold Hino accountable for its criminal misconduct.”
“Hino knew the requirements that engines must meet to be certified to operate in the United States, yet it falsified data for years to skirt regulations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Hino’s actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws. Today’s plea agreement and civil settlements, on behalf of myriad federal entities, mark the Justice Department’s commitment to protecting our environment and holding companies accountable for corporate wrongdoing.”
“Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to aggressively seeking justice when corporate actors violate air quality standards and place our community at risk in order to increase their sales.”
“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom-line,” said FBI Director Christopher Wray. “To further this fraudulent scheme, Hino violated laws and regulations intended to protect American’s health and the environment. The FBI is committed to working with our partners across the U.S. government to ensure that corporate bad actors who purposefully violate the law are held accountable for their criminal actions.”
“Providing false information to federal agencies subverts regulations designed to protect the public and reduce costs for consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with its partners to hold accountable companies that prioritize profit over complying with the law.”
“EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution,” said Acting EPA Administrator Jane Nishida. “Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”
“CBP works with partner government agencies to prioritize the enforcement of environmental laws and is driving meaningful change in trade practices,” said Executive Assistant Commissioner AnnMarie Highsmith of CBP’s Office of Trade. “This settlement is an example of CBP’s role in enforcing laws that facilitate legitimate trade and protect the American economy, creating a level playing field for American businesses and ensuring that consumers have access to fair, safe products.”
“Misleading federal regulators is a brazen crime that is reflected in the size and scope of today’s settlement agreement which holds Hino Motors accountable for their wrongdoing,” said Inspector General Eric J. Soskin of DOT. “The judicial actions taken today demonstrate the ongoing commitment of DOT-OIG to work with our law enforcement and prosecutorial partners to investigate improper and illegal conduct of automotive corporations that submit false fuel consumption values.”
“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” said California Attorney General Rob Bonta. “At the California Department of Justice, we will continue to hold manufacturers like Hino accountable for breaking California’s laws. I want to thank our federal and state partners for their collective work on reaching this critical settlement.”
Global Resolution Details
As part of the global resolutions, Hino Motors, Ltd. has agreed to plead guilty to engaging in a multi-year criminal conspiracy. The plea agreement, which is subject to approval by the court, requires it to pay a criminal fine of $521.76 million, serve a five-year term of probation — during which it will be prohibited from importing any diesel engines it has manufactured into the United States — and implement a comprehensive compliance and ethics program and reporting structure. Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. Pursuant to the plea agreement, Hino’s future payments towards its civil settlement obligations, as well future payments as part of a civil class action settlement brought by private plaintiffs, will be credited towards its criminal forfeiture money judgment obligation.
In separate civil resolutions of environmental, customs and fuel economy claims by the federal government and the State of California, Hino will pay a civil penalty of $525 million based on its demonstrated financial condition. The global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA’s mobile source program.
Other provisions of the civil agreement include:
- A mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and installing locomotive idle reduction technology systems, throughout 49 states (excluding California), including the reduction of over 41,000 tons of nitrogen oxides (NOx) emissions;
- A recall program, valued at $144.2 million, to modify violative engines in 2017-2019 heavy-duty trucks so they comply with U.S. and California emissions laws;
- $123.6 million to fund mitigation projects and enforcement costs in California; and
- $30.3 million to resolve California False Claims Act claims.
EPA discovered Hino’s noncompliance as a result of conducting confirmatory testing of Hino’s engines. On Jan. 10, EPA voided engine approvals, called “certificates of conformity,” for Hino’s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment. This is the largest voiding action ever taken by EPA, reflecting the egregiousness of the conduct and the flagrant disregard for EPA’s certification program. That program is designed to provide a level playing field for vehicle and engine manufacturers seeking to do business in the United States.
Conduct Admitted to by Hino Motors, Ltd.
As part of its plea agreement, Hino Motors, Ltd. admits that between 2010 and 2019, it submitted and caused to be submitted false applications for engine certification approvals. Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino Motors, Ltd. further admits that it submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines. Hino Motors, Ltd. engineers also failed to disclose software functions that could adversely affect engines’ emission control systems. As a result of the fraud, Hino Motors, Ltd. imported and sold over 105,000 non-conforming engines between 2010 and 2022.
Emissions Reductions
EPA estimates that Hino’s engines emitted levels of NOx, particulate matter, carbon dioxide (CO2), and nitrous oxide (N2O) above the regulatory limits. Hino’s recall is designed to bring model year 2017-2019 truck engines into compliance with emissions standards. Its mitigation projects around the country will fully offset the lifetime excess emissions of all violative engines. These mitigation projects include:
- Replacing more than 35 older, dirtier marine and locomotive engines with engines certified to the strictest EPA diesel emission standards, and
- Installing idle reduction technology in over 135 locomotives.
The mitigation projects will reduce emissions by at least 41,941 tons of NOx, 376 tons of particulate matter, 6,199 tons of CO2, and 135 tons of N2O. The NOx reductions alone are estimated to be equivalent to removing over 110,000 heavy-duty trucks from operation.
NOx and particulate matter are associated with serious health effects, including asthma attacks, respiratory illnesses and cardiovascular issues, which can lead to lung damage and premature death. CO2 and N2O are climate-impacting greenhouse gases, which can also endanger public health and welfare.
The Clean Air Act requires vehicle and engine manufacturers to submit testing data showing that their products meet air pollution emission standards in order to obtain certifications from EPA and California. As part of the certification process, manufacturers must conduct emission testing and submit test data demonstrating compliance with standards. Manufacturers must also disclose software functions that could affect engines’ emission controls. Further, motor vehicle engines must comply with emissions requirements to be lawfully imported into the United States. NHTSA regulations require that manufacturers like Hino provide fuel consumption values for each model year because these standards are designed to conserve fuel and increase efficiency.
The charges in the criminal information filed against Hino Motors, Ltd. are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. A plea hearing date has not yet been set. Future case updates will be listed at www.justice.gov/enrd/environmental-crime-victim-assistance/current-case-information-crime-victims. Individuals can contact the Justice Department regarding victim rights and services or the status of this case at (833) 676-181 or at [email protected]; please mention or put in the subject line: 198-01902. The Justice Department uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. If you believe you are a victim of the conduct described in the plea agreement and criminal information, please visit www.justice.gov/enrd/case/hino-motors-ltd.
The proposed global civil settlement consent decree is subject to a 30-day comment period and final court approval. More information on the consent decree and the process for submitting comments is available at www.justice.gov/enrd/consent-decrees. This settlement agreement is part of a coordinated group of settlements resolved by the United States against Hino by EPA, NHTSA, CBP, and California with resolved False Claims Act and other state-only claims on behalf of the California Air Resources Board (CARB) and the California Attorney General.
Special agents of EPA’s Criminal Investigation Division (EPA-CID)’s Ann Arbor Field Office and FBI’s Detroit Field Office are investigating the criminal case.
Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the criminal case, with support from EPA’s Regional Criminal Enforcement Counsel. The Civil Division’s Consumer Protection Branch, Justice Department’s Office of International Affairs, CBP’s Office of Chief Counsel and Office of the Assistant Chief Counsel-Detroit, DOT-OIG and NHTSA provided assistance.
Senior Counsel David Laufman Weigert and Senior Attorney Alexandra Sherertz with ENRD’s Environmental Enforcement Section, Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Legal Advisor Meetu Kaul and Attorney-Advisors Kayla Steinberg and Ian Altendorfer with EPA’s Office of Enforcement and Compliance Assurance (OECA), Air Enforcement Division are handling the civil settlements. Engineers with EPA’s Office of Transportation and Air Quality and OECA provided critical assistance.
CARB played an active and supportive role throughout the development and pursuit of the civil case and settlement negotiations by EPA and ENRD. Trial Attorneys Marilee Miller and Paulina Stamatelos with the Civil Division’s Consumer Protection Branch are handling NHTSA-related claims. Assistant Chief Counsel Karen Hiyama and Attorney Jason W. Williams with CBP’s Office of the Assistant Chief Counsel-Detroit are handling CBP-related claims.
Hino Motors Ltd Criminal Information.pdfHino Motors Ltd Plea Agreement.pdfHino Motors, a Toyota Subsidiary, Agrees to Plead Guilty and Pay over $1.6B to Resolve Emissions Fraud SchemeRead the Press Release
The U.S. Justice Department, Environmental Protection Agency (EPA), FBI, Customs and Border Protection (CBP), Department of Transportation’s Office of Inspector General (DOT-OIG), National Highway Traffic Safety Administration (NHTSA), and State of California today reached criminal and multiple civil resolutions, valued at over $1.6 billion, with Hino Motors, Ltd. (Hino Motors), Hino Motors Manufacturing U.S.A., Inc. and Hino Motors Sales U.S.A., Inc. (collectively, Hino) for violations related to the submission of false and fraudulent engine emission testing and fuel consumption data to regulators and the illicit smuggling of engines into the United States. These resolutions are subject to approval by the U.S. District Court for the Eastern District of Michigan.
This unlawful conduct allowed Hino, a subsidiary of Toyota Motor Corporation, to improperly secure approvals to import and sell, and cause to be imported and sold, more than 110,000 diesel engines in the United States from 2010 to 2022. These engines were primarily installed in heavy-duty trucks manufactured and sold by Hino nationwide.
“Today, Hino Motors, a subsidiary of Toyota, agreed to plead guilty to engaging in a criminal conspiracy to mislead regulators and consumers that violated federal environmental laws and endangered public health,” said Attorney General Merrick B. Garland. “No company is above the law. I am grateful to our federal and state partners for their work to hold Hino accountable for its criminal misconduct.”
“Hino knew the requirements that engines must meet to be certified to operate in the United States, yet it falsified data for years to skirt regulations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Hino’s actions led to vast amounts of excess air pollution and were an egregious violation of our nation’s environmental, consumer protection and import laws. Today’s plea agreement and civil settlements, on behalf of myriad federal entities, mark the Justice Department’s commitment to protecting our environment and holding companies accountable for corporate wrongdoing.”
“Corporate crimes such as these endanger the health and well-being of innocent Americans, as well as the environment in which we all live,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to aggressively seeking justice when corporate actors violate air quality standards and place our community at risk in order to increase their sales.”
“Hino Motors engaged in a years-long scheme to alter and fabricate emissions data in order to get a leg up over its competitors and boost their bottom-line,” said FBI Director Christopher Wray. “To further this fraudulent scheme, Hino violated laws and regulations intended to protect American’s health and the environment. The FBI is committed to working with our partners across the U.S. government to ensure that corporate bad actors who purposefully violate the law are held accountable for their criminal actions.”
“Providing false information to federal agencies subverts regulations designed to protect the public and reduce costs for consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with its partners to hold accountable companies that prioritize profit over complying with the law.”
“EPA and the American consumer rely on true and accurate data from engine manufacturers to protect our nation’s air quality. Hino’s actions directly undermined EPA’s program to protect the public from air pollution,” said Acting EPA Administrator Jane Nishida. “Today’s criminal charges and civil settlement demonstrates EPA’s commitment to hold companies like Hino Motors, Ltd. accountable for knowingly violating environmental laws and regulations that protect public health and the environment.”
“CBP works with partner government agencies to prioritize the enforcement of environmental laws and is driving meaningful change in trade practices,” said Executive Assistant Commissioner AnnMarie Highsmith of CBP’s Office of Trade. “This settlement is an example of CBP’s role in enforcing laws that facilitate legitimate trade and protect the American economy, creating a level playing field for American businesses and ensuring that consumers have access to fair, safe products.”
“Misleading federal regulators is a brazen crime that is reflected in the size and scope of today’s settlement agreement which holds Hino Motors accountable for their wrongdoing,” said Inspector General Eric J. Soskin of DOT. “The judicial actions taken today demonstrate the ongoing commitment of DOT-OIG to work with our law enforcement and prosecutorial partners to investigate improper and illegal conduct of automotive corporations that submit false fuel consumption values.”
“Hino knowingly took unlawful advantage of California’s incentives designed to accelerate the adoption of clean transportation technologies, which safeguard the health and safety of Californians from pollution,” said California Attorney General Rob Bonta. “At the California Department of Justice, we will continue to hold manufacturers like Hino accountable for breaking California’s laws. I want to thank our federal and state partners for their collective work on reaching this critical settlement.”
Global Resolution Details
As part of the global resolutions, Hino Motors, Ltd. has agreed to plead guilty to engaging in a multi-year criminal conspiracy. The plea agreement, which is subject to approval by the court, requires it to pay a criminal fine of $521.76 million, serve a five-year term of probation — during which it will be prohibited from importing any diesel engines it has manufactured into the United States — and implement a comprehensive compliance and ethics program and reporting structure. Hino Motors, Ltd. has also agreed to entry of a forfeiture money judgment against it in the amount of $1.087 billion. Pursuant to the plea agreement, Hino’s future payments towards its civil settlement obligations, as well future payments as part of a civil class action settlement brought by private plaintiffs, will be credited towards its criminal forfeiture money judgment obligation.
In separate civil resolutions of environmental, customs and fuel economy claims by the federal government and the State of California, Hino will pay a civil penalty of $525 million based on its demonstrated financial condition. The global resolution includes the second largest criminal fine and fourth largest civil penalty in the history of EPA’s mobile source program.
Other provisions of the civil agreement include:
- A mitigation program, valued at $155 million, to offset excess air emissions from the violations by replacing marine and locomotive engines, and installing locomotive idle reduction technology systems, throughout 49 states (excluding California), including the reduction of over 41,000 tons of nitrogen oxides (NOx) emissions;
- A recall program, valued at $144.2 million, to modify violative engines in 2017-2019 heavy-duty trucks so they comply with U.S. and California emissions laws;
- $123.6 million to fund mitigation projects and enforcement costs in California; and
- $30.3 million to resolve California False Claims Act claims.
EPA discovered Hino’s noncompliance as a result of conducting confirmatory testing of Hino’s engines. On Jan. 10, EPA voided engine approvals, called “certificates of conformity,” for Hino’s 2010-2019 diesel engines for heavy-duty trucks and nonroad equipment. This is the largest voiding action ever taken by EPA, reflecting the egregiousness of the conduct and the flagrant disregard for EPA’s certification program. That program is designed to provide a level playing field for vehicle and engine manufacturers seeking to do business in the United States.
Conduct Admitted to by Hino Motors, Ltd.
As part of its plea agreement, Hino Motors, Ltd. admits that between 2010 and 2019, it submitted and caused to be submitted false applications for engine certification approvals. Hino Motors, Ltd. engineers regularly altered emission test data, conducted tests improperly and fabricated data without conducting any underlying tests. Hino Motors, Ltd. further admits that it submitted fraudulent carbon dioxide emissions test data, which resulted in false fuel consumption values being calculated for its engines. Hino Motors, Ltd. engineers also failed to disclose software functions that could adversely affect engines’ emission control systems. As a result of the fraud, Hino Motors, Ltd. imported and sold over 105,000 non-conforming engines between 2010 and 2022.
Emissions Reductions
EPA estimates that Hino’s engines emitted levels of NOx, particulate matter, carbon dioxide (CO2), and nitrous oxide (N2O) above the regulatory limits. Hino’s recall is designed to bring model year 2017-2019 truck engines into compliance with emissions standards. Its mitigation projects around the country will fully offset the lifetime excess emissions of all violative engines. These mitigation projects include:
- Replacing more than 35 older, dirtier marine and locomotive engines with engines certified to the strictest EPA diesel emission standards, and
- Installing idle reduction technology in over 135 locomotives.
The mitigation projects will reduce emissions by at least 41,941 tons of NOx, 376 tons of particulate matter, 6,199 tons of CO2, and 135 tons of N2O. The NOx reductions alone are estimated to be equivalent to removing over 110,000 heavy-duty trucks from operation.
NOx and particulate matter are associated with serious health effects, including asthma attacks, respiratory illnesses and cardiovascular issues, which can lead to lung damage and premature death. CO2 and N2O are climate-impacting greenhouse gases, which can also endanger public health and welfare.
The Clean Air Act requires vehicle and engine manufacturers to submit testing data showing that their products meet air pollution emission standards in order to obtain certifications from EPA and California. As part of the certification process, manufacturers must conduct emission testing and submit test data demonstrating compliance with standards. Manufacturers must also disclose software functions that could affect engines’ emission controls. Further, motor vehicle engines must comply with emissions requirements to be lawfully imported into the United States. NHTSA regulations require that manufacturers like Hino provide fuel consumption values for each model year because these standards are designed to conserve fuel and increase efficiency.
The charges in the criminal information filed against Hino Motors, Ltd. are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. A plea hearing date has not yet been set. Future case updates will be listed at www.justice.gov/enrd/environmental-crime-victim-assistance/current-case-information-crime-victims. Individuals can contact the Justice Department regarding victim rights and services or the status of this case at (833) 676-181 or at [email protected]; please mention or put in the subject line: 198-01902. The Justice Department uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. If you believe you are a victim of the conduct described in the plea agreement and criminal information, please visit www.justice.gov/enrd/case/hino-motors-ltd.
The proposed global civil settlement consent decree is subject to a 30-day comment period and final court approval. More information on the consent decree and the process for submitting comments is available at www.justice.gov/enrd/consent-decrees. This settlement agreement is part of a coordinated group of settlements resolved by the United States against Hino by EPA, NHTSA, CBP, and California with resolved False Claims Act and other state-only claims on behalf of the California Air Resources Board (CARB) and the California Attorney General.
Special agents of EPA’s Criminal Investigation Division (EPA-CID)’s Ann Arbor Field Office and FBI’s Detroit Field Office are investigating the criminal case.
Senior Trial Attorney Banumathi Rangarajan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the criminal case, with support from EPA’s Regional Criminal Enforcement Counsel. The Civil Division’s Consumer Protection Branch, Justice Department’s Office of International Affairs, CBP’s Office of Chief Counsel and Office of the Assistant Chief Counsel-Detroit, DOT-OIG and NHTSA provided assistance.
Senior Counsel David Laufman Weigert and Senior Attorney Alexandra Sherertz with ENRD’s Environmental Enforcement Section, Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan and Senior Legal Advisor Meetu Kaul and Attorney-Advisors Kayla Steinberg and Ian Altendorfer with EPA’s Office of Enforcement and Compliance Assurance (OECA), Air Enforcement Division are handling the civil settlements. Engineers with EPA’s Office of Transportation and Air Quality and OECA provided critical assistance.
CARB played an active and supportive role throughout the development and pursuit of the civil case and settlement negotiations by EPA and ENRD. Trial Attorneys Marilee Miller and Paulina Stamatelos with the Civil Division’s Consumer Protection Branch are handling NHTSA-related claims. Assistant Chief Counsel Karen Hiyama and Attorney Jason W. Williams with CBP’s Office of the Assistant Chief Counsel-Detroit are handling CBP-related claims.
Hino Motors Ltd Criminal Information.pdf Hino Motors Ltd Plea Agreement.pdfHeart Butte man admits sexually abusing two girls on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Heart Butte man accused of sexually abusing children on the Blackfeet Indian Reservation admitted to charges on Jan. 14, U.S. Attorney Jesse Laslovich said today.
The defendant, Bradley Joseph Guardipee, 26, pleaded guilty to a superseding information charging him with two counts of aggravated sexual abuse and commission of a sex offense by a registered sex offender. Guardipee faces a maximum of life in prison, a $250,000 fine and at least five years to life of supervised release on the aggravated sexual abuse charges and a mandatory minimum of 10 years in prison, consecutive to any sentence imposed on the aggravated sexual abuse charges, for the commission of a sexual offense by a registered sex offender.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 28. Guardipee was detained pending further proceedings.
In a plea agreement, the parties agreed that a specific disposition of between 20 years and 30 years in prison is appropriate in this case.
The government alleged in court documents that in July 2024, Jane Doe 3 disclosed that she was sexually assaulted by Guardipee in 2022, when she was 11 and was in a residence alone with Guardipee. Doe 3 was taking a nap when Guardipee sexually assaulted her. Doe 3 reported that she knew at least four other girls who were sexually abused by Guardipee. Forensic interviews followed and six girls disclosed some kind of abusive touching by Guardipee.
The government also alleged that Jane Doe 1 reported being sexually abused by the defendant since she was about three years old. She reported in March 2024, when she was 12 years old, that Guardipee sexually abused her while she was in a vehicle with him. At the time of the March 2024 assault on Doe 1, Guardipee was required to register as a sex offender. Guardipee was required to register after being convicted by a guilty plea in May 2023 to sexual assault in state District Court in Cascade County.
The U.S. Attorney’s Office is prosecuting the case. Blackfeet Law Enforcement Services and the FBI conducted the investigation.
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Guatemala Resident Ordered Removed from U.S. After Pleading Guilty to Illegal Reentry ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Guatemala pleaded guilty in federal court to a charge of illegal reentry of a removed alien and was sentenced to time served and ordered removed from the United States, United States Attorney Eric G. Olshan announced today.
United States District Judge William S. Stickman IV imposed the sentence on Josue Raul Ascon-Morales, 26.
According to information presented to the Court, Ascon-Morales was previously removed from the United States in March 2008. On September 1, 2024, the Moon Township Police Department encountered Ascon-Morales in the Western District of Pennsylvania secondary to a traffic stop. Law enforcement determined that Ascon-Morales was unlawfully present in the United States, and he was taken into custody by immigration authorities on October 22, 2024. He admitted to unlawfully entering the United States in April 2018, and was indicted by a federal grand jury on November 19, 2024.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Olshan commended U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations for the investigation leading to the successful prosecution of Ascon-Morales.
Grand jury charges Dayton man with 12 armed robberiesRead the Press Release
DAYTON, Ohio – A Dayton man was indicted by a federal grand jury and charged with committing 12 separate armed robberies last month throughout southwest Ohio.
Timothy Farr, 43, was originally arrested in December 2024 after being charged by criminal complaint for committing eight of the robberies.
The 24-count indictment includes 12 counts of interfering with commerce by threats or violence (punishable by up to 20 years in prison) and 12 counts of using a firearm during a crime of violence (punishable by at least seven years and up to life in prison).
The indictment says Farr allegedly brandished a firearm at local gas stations, convenience stores and drive thru stores, demanding cash and cigarettes.
During the robberies, it is alleged Farr often wore a dark jacket, pants and shoes, as well as gray two-tone style gloves and a black balaclava mask covering part of his face. In some instances, Farr also allegedly wore an N-95 style mask. Farr allegedly brandished a black firearm.
Farr is accused of committing armed robberies on:
- Dec. 3, 2024, at Sunoco gas station on Wayne Avenue in Dayton,
- Dec. 4, 2024, at Marathon gas station on Linden Avenue in Riverside,
- Dec. 6, 2024, at Ray’s Xenia Avenue Market on Xenia Avenue in Dayton,
- Dec. 7, 2024, at Free Pike Drive-Thru on Free Pike in Dayton,
- Dec. 8, 2024, at Sunoco gas station on Selma Road in Springfield,
- *Dec. 8, 2024, at Family Dollar on Salem Avenue in Trotwood,
- Dec. 10, 2024, at Mini Mart on N. Main Street in Dayton,
- Dec. 11, 2024, at Marathon gas station on E. Fifth Street in Dayton,
- *Dec. 12, 2024, at White Oak Deli on Cheviot Road in Green Township,
- *Dec. 14, 2024, at Family Dollar on West Main Street in Springfield,
- Dec. 15, 2024, at Sammy’s Drive-thru store on Woodman Drive in Riverside, and
- *Dec. 15, 2024, at United Dairy Farmers on Vine Street in Cincinnati.
*Robberies added at indictment
During the investigation, law enforcement was able to identify a vehicle of interest using the Flock Safety Camera System and identified a 2011 red Ford Taurus linked to armed robbery locations.
When Dayton police officers initiated a traffic stop of the red Taurus on Dec. 16, 2024, Farr was allegedly in the front passenger seat wearing the outfit described in the armed robberies, had an N-95 style mask on the floorboard and gray two-tone gloves in his pocket. Farr also allegedly had a 9mm pistol in his waistband.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Springfield Police Chief Allison Elliott; Dayton Police Chief Kamran Afzal; Green Township Police Chief James Vetter; Cincinnati Police Chief Teresa Theetge; Trotwood Police Chief Erik Wilson; and Riverside Police Chief Frank Robinson announced the charges filed yesterday afternoon. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Anyone with information regarding these incidents should contact ATF at 1-888-ATF-TIPS (888-283-8477). Individuals may also email [email protected], or contact ATF through its website at www.atf.gov/contact/atf-tips. Tips may also be submitted to ATF using the ReportIt® app, available on both Google Play and the Apple App Store, or by visiting www.reportit.com.
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Grand Jury Charges Hunting Guide and Company with Wildlife ViolationsRead the Press Release
A grand jury in Seattle returned an indictment today charging a Washington man and his company with conspiracy and for violating the Lacey Act by transporting birds that had been hunted in violation of the Migratory Bird Treaty Act (MBTA).
The indictment alleges that, from August 2022 to January 2023, Branden Trager, 46, of Brush Prairie, Washington, and his guiding company, Mayhem Services LLC, guided three hunting parties in Canada to hunt waterfowl when Trager was not permitted under Canadian law to do so.
According to the indictment, Trager and Mayhem Services took hunters across the U.S.-Canadian border near Blaine, Washington. The hunts targeted the harlequin duck (Histrionicus histrionicus), a small sea duck with a habitat ranging from Alaska to California. Hunters prize the harlequin as a trophy and as part of a challenge to hunt 41 North American waterfowl species. Washington closed harlequin hunting for the 2022-2023 season, but limited hunting remained open in British Columbia.
The indictment alleges that the hunters paid Trager thousands of dollars to guide them in Canada, and Trager falsely told Canadian and Homeland Security authorities that he was hunting with friends. Trager allegedly conspired with a Canadian taxidermist to have the hunted birds shipped back to the United States in violation of the Lacey Act.
The Lacey Act is the nation’s oldest wildlife trafficking law. It prohibits, among other things, transporting wildlife that had been illegally taken under federal, state, tribal or foreign law. The MBTA is a U.S. law that implemented treaties with Canada and other nations to ensure sustainable populations of migratory birds. The MBTA imposed regulations on bird hunting, such as limits on the quantity and hunting methods allowed to take migratory birds.
An initial appearance hearing in federal court is scheduled for Jan. 23. The maximum penalty for both the conspiracy and Lacey Act charges is five years in prison and a $250,000 fine, or twice the economic gain or loss.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and Deputy Assistant Director Keith Toomey of the U.S. Fish and Wildlife Service (USFWS)’s Office of Law Enforcement made the announcement.
The USFWS’ Office of Law Enforcement led the investigation along with Homeland Security Investigations, British Columbia Conservation Officer Service and Washington Department of Fish & Wildlife.
Senior Trial Attorney Ryan Connors and Trial Attorney Sarah Brown of ENRD’s Environmental Crimes Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Washington.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Global Cryptocurrency Exchange BitMEX Fined $100 Million for Violating Bank Secrecy ActRead the Press Release
Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced that HDR GLOBAL TRADING LTD., a/k/a “BITMEX”, was sentenced today to a fine of $100 million for violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) and know-your-customer (“KYC”) program.
Attorney for the United States Matthew Podolsky said: “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity. It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security. Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”
According to the allegations in the Information and other filings and statements made in court:
Arthur Hayes, Benjamin Delo, and Samuel Reed founded BITMEX in or about 2014, and Gregory Dwyer became BITMEX’s first employee in 2015 and later its Head of Business Development. BITMEX, which has long serviced and solicited business from U.S. traders and operated through U.S. offices, was required to register with the Commodity Futures Trading Commission (“CFTC”) and to establish and maintain an adequate AML program. AML programs ensure that financial institutions, such as BITMEX, are not exploited for illicit purposes and serve to protect the integrity of the U.S. financial system and national security more broadly.
BITMEX and its executives knew that because BITMEX served U.S. customers, it was required to implement an AML program that included a KYC component but chose to flaunt those requirements, requiring only that customers provide an email address to use BITMEX’s services. Indeed, senior executives each knew that customers residing in the U.S. continued to access BITMEX’s trading platform through at least in or about 2018, and that BITMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BITMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. criminal laws. Corporate executives took affirmative steps purportedly designed to exempt BITMEX from the application of U.S. laws like AML and KYC requirements, despite knowing of BITMEX’s obligation to implement such programs by operating in the U.S. As part of BITMEX’s willful evasion of U.S. AML laws, the company lied to a bank about the purpose and nature of a subsidiary to allow BITMEX to pump millions of dollars through the U.S. financial system.
Hayes, Delo, and Reed, BITMEX’s three founders and top executives, and Dwyer, another top executive, all previously entered guilty pleas for violating the Bank Secrecy Act and were sentenced in 2022. The corporation entered a guilty plea on July 10, 2024, and was sentenced today.
* * *
In addition to the fine, BITMEX was sentenced to two years’ probation.
Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad.
The prosecution is being handled by the Office’s Illicit Finance & Money Laundering Unit. Assistant U.S. Attorneys Jessica Greenwood and Thane Rehn are in charge of the prosecution.
Glassport Felon Pleads Guilty to Possession of FirearmRead the Press Release
PITTSBURGH, Pa. - A resident of Glassport, Pennsylvania, pleaded guilty in federal court on January 14, 2025, to a charge of possessing a firearm and ammunition as a convicted felon, United States Attorney Eric G. Olshan announced today.
Rashee Beasley, 33, pleaded guilty to one count before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the Court was advised that Beasley, who has been convicted of multiple felony offenses, was found in possession of a loaded and stolen firearm on October 27, 2022. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Judge Fischer scheduled sentencing for May 14, 2025. The law provides for a total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Monroeville Police Department conducted the investigation that led to the prosecution of Beasley.
Former spouse of deceased U.S. Army veteran pleads guilty to fraud for improperly claiming military benefitsRead the Press Release
SAVANNAH, GA: The divorced spouse of a deceased U.S. Army veteran awaits sentencing after pleading guilty to fraudulently claiming her ex-husband’s benefits.
Miranda Rachel Briggs, a/k/a “Miranda Rachel Fisher,”34, of Rincon, Georgia, pled guilty to Wire Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Briggs to a statutory penalty of up to 20 years in prison, along with substantial financial penalties and restitution.
“Programs that financially benefit surviving family members of deceased veterans are designed to provide a safety net to those survivors,” said U.S. Attorney Steinberg. “This guilty plea demonstrates the tenacity of investigators and prosecutors in dismantling this scheme.”
The guilty plea outlines key events that began in November 2015 when Briggs married G.B., a U.S. Army veteran, keeping her maiden name “Fisher.” Less than a year later, Briggs filed for divorce. Two weeks after the divorce was final, the U.S. Department of Veterans Affairs granted G.B.’s request to remove Briggs as a recipient of G.B.’s benefits.
Briggs filed for Chapter 7 bankruptcy in January 2018, certifying that she and G.B. were divorced. After G.B. died about two weeks later, Briggs filed for VA benefits, falsely claiming to be G.B.’s surviving spouse. In April 2018 she also claimed to be G.B.’s spouse when applying for benefits from the Civilian Health and Medical Program of the Department of Veterans Affairs.
As a result of those false claims, Briggs received approximately $49,000 for medical care, and approximately $80,000 in benefits from the VA Dependency and Indemnity Compensation Program.
After the VA’s initial decision to deny her claim to G.B.’s VA survivor benefits, Briggs submitted additional paperwork claiming she and G.B. were married until his death in 2018. Based on this claim, the VA granted her the benefits. She then filed a petition in Chatham County Superior Court, changing her name from Miranda Rachel Fisher to Miranda Rachel Briggs. In April 2021, Briggs was named administrator of G.B.’s estate after claiming in Chatham County Probate Court to be G.B.’s surviving spouse.
In March 2023, the Chatham County Probate Court removed Briggs as administrator after finding she was divorced from G.B. at the time of his death and not eligible to act as an administrator of his estate.
U.S. District Court Judge Lisa Godbey Wood will schedule a sentencing hearing for Briggs after completion of a pre-sentence investigation by U.S. Probation Services.
“This guilty plea holds the defendant accountable for defrauding vital VA programs that provide monetary benefits for survivors of service members and veterans,” said Special Agent in Charge David Spilker with the VA OIG Southeast Field Office. “The VA OIG will continue to work with our law enforcement partners to root out fraudulent activity and seek the prosecution of those who would compromise the integrity of VA’s programs and services.”
The case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General, and prosecuted for the United States of America by Assistant U.S. Attorneys Michael Z. Spitulnik and Patricia G. Rhodes.
Foreign national sentenced for racketeering and drug trafficking conspiracy in the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A Romanian national convicted of plotting to traffic hundreds of kilograms of cocaine from the United States in a scheme that also included money laundering, arms trafficking, and an attempt to assassinate rival gang members, was sentenced to 25 years in federal prison in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Marius Lazar, 51, of Bucharest, Romania, was sentenced to 300 months in federal prison by U.S. District Judge Marcia A. Crone on January 15, 2025.
According to court documents and evidence presented at trial, Lazar was a “founding member” of his local chapter of the Hells Angels Motorcycle Club, a transnational outlaw motorcycle gang that was founded in the United States and is now active on six continents. Through his relationship with a fellow Hells Angels member from New Zealand, Lazar joined a conspiracy to purchase more than 400 kilograms of cocaine from a person in the United States, who the conspirators believed was a powerful drug trafficker but who was actually an undercover agent of the Drug Enforcement Administration (DEA). As part of his negotiations for the cocaine purchase, Lazar also solicited the undercover agent to kill two members of a rival motorcycle club in Romania, and offered to supply the undercover with rifles, grenades, armored vehicles, and other military-grade equipment that Lazar understood would be used against police officers in the United States. Members of the conspiracy sent nearly $1 million to the United States, via bank wires and Bitcoin transfers, as payment for the drugs and murders.
On November 17, 2023, a federal jury in Beaumont convicted Lazar of conspiracy to commit racketeering, conspiracy to import cocaine into the United States, and conspiracy to commit money laundering.
Co-defendants Murray Michael Matthews and Marc Patrick Johnson remain fugitives.
The DEA, Homeland Security Investigations, U.S. Marshals Service, and Internal Revenue Service – Criminal Investigations investigated the case, with significant assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas, Assistant U.S. Attorney Conor Mulroe, formerly of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and currently for the U.S. Attorney’s Office District of Columbia, and VCRS Trial Attorney Jared Engelking prosecuted the case.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Romania to secure the arrest and extradition of Lazar.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Foreign National Sentenced for Unlawful ReentryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Adan Garcia-Nava, a/k/a Adan Garcia, age 36, of Mexico, was sentenced to eight months in prison for one count of Unlawful Reentry of Removed Alien.
The charge arose from an investigation by the Cherokee County Sheriff’s Office and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Division.
On September 19, 2024, Garcia-Nava pleaded guilty to the charge. According to investigators, on May 20, 2024, Garcia-Nava, an alien, was found in the United States after having been previously deported and removed on four prior occasions.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Garcia-Nava will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Richard J. Lorenz represented the United States.
Five indicted for drug trafficking in “the Jungle” and Seattle’s International DistrictRead the Press Release
Seattle – Five Seattle-area men are in custody following a grand jury indictment for their drug trafficking activity in Seattle’s homeless encampments and International District, announced U.S. Attorney Tessa M. Gorman. The men are charged federally and have made their initial appearances over the last few days.
“We are all focused on increasing community safety, especially in Seattle’s International District,” said U.S. Attorney Gorman. “The Seattle Police Department, the FBI, DEA, and other law enforcement partners have worked tirelessly to identify members of this drug ring who are peddling drugs in the International District and homeless encampments. They prey on the most vulnerable and with guns and threats increase the danger on our streets.”
“This organization took advantage of many people’s addictions, homelessness, and other vulnerabilities, often using violence or threats of violence,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office. “Together with our partners, the FBI will continue to pursue drug trafficking organizations and remove dangerous individuals from our communities to keep Seattle and Washington state safer.”
The five men named in the indictment are:
Tommy Pham, 37, of Newcastle, Washington
Donfeuy Saephan, 54, of Seattle
Khampheth Keodara, 42, of Seattle
Sang Tran, 54, of Kent, Washington
Theodore Nation, 35, of Seattle
According to records filed in the case, the investigation began in November 2023, with the Seattle Police, FBI, and DEA focusing on a drug trafficking organization dealing fentanyl, methamphetamine, cocaine, and heroin in the homeless encampments of Seattle and in drug trafficking areas of the International District at locations such as 12th and Jackson. Some of the defendants were arrested with firearms. Using a court authorized wiretap, investigators gathered evidence of the drug trafficking and made arrests and seizures over the course of the investigation. Law enforcement heard intimations of violence on the calls and worked to intervene without tipping off the targets of the investigation.
During the arrest operation over the last few days, law enforcement seized 17 firearms and 23 kilos of suspected fentanyl powder.
Five defendants are charged with conspiracy to distribute controlled substances, Theodore Nation is charged with possession of controlled substances with intent to distribute. Pham and Tran are charged with distribution of controlled substances. Pham is charged with unlawful possession of a firearm because he has criminal history that bars him from possessing firearms.
The current charges carry a mandatory minimum ten years in prison for the conspiracy and some drug counts. Possession with intent to distribute is punishable by a mandatory minimum five years in prison. Illegal possession of a firearm is punishable by up to 15 years in prison.
“We’re proud to work with our federal partners on this enforcement action. The Seattle Police Department will continue to take the necessary steps to continue ensuring our city is safe and welcoming for all,” said Seattle Police Chief Sue Rahr.
“The fentanyl powder alone seized from this group could have unleashed 1.7 million potentially deadly doses of fentanyl into our community,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “This group posed a major threat to our neighborhoods, and I am proud of the work of DEA and our partners in neutralizing this danger.”
“This operation speaks to the stand against drug trafficking from all levels of law enforcement,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “We will continue doing our part to expose the profits of drug trafficking because we believe there should be no profit in crime.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was led by the FBI, Seattle Police Department and Drug Enforcement Administration (DEA) with significant assistance from the Internal Revenue Service - Criminal Investigation (IRS-CI). Investigators also worked with the King County Sheriff’s Office and the Tukwila Police Department.
The case is being prosecuted by Assistant United States Attorneys Casey Conzatti and Brian Wynne.
Fitchburg Man Sentenced to Prison for Fentanyl and Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a fentanyl and cocaine trafficking conspiracy.
Jose Mercado Aponte, 31, was sentenced by U.S. District Court Judge Margaret R. Guzman to 70 months in prison, to be followed by three years of supervised release. In October 2024, Mercado Aponte pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine, one count of distribution of and possession with intent to distribute fentanyl and cocaine, and five counts of possession with intent to distribute fentanyl.
Between April 2023 and Nov. 13, 2023, Mercado Aponte conspired with others, including Hector Soto Gonzalez, to knowing and intentionally distribute fentanyl and cocaine. Mercado Aponte met up with a cooperating witness (CW) on at least seven occasions to provide fentanyl and cocaine in exchange for money in Worcester and Leominster, Mass. During some of these meetings, Mercado Aponte discussed selling a firearm to the CW.
This investigation culminated on Nov. 13, 2023, when Mercado Aponte arranged to sell a kilogram of fentanyl to the CW that day. On that date, Mercado Aponte communicated with the CW to coordinate the deal and then made three calls to Soto Gonzalez who resided at a location in Hartford, Conn. Later that afternoon, law enforcement conducting surveillance of the residence in Hartford, Conn., observed Soto Gonzalez leave his residence and put something in his trunk. Soto Gonzalez subsequently departed his residence in his truck and travelled from Connecticut to Massachusetts where a traffic stop was conducted. Inside of Soto Gonzalez’s vehicle, law enforcement recovered approximately one kilogram of fentanyl.Soto Gonzalez is scheduled to change his plea on January 16, 2024.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Geoffrey Noble of the Massachusetts State Police; and Commissioner Shawn Jenkins of the Massachusetts Department of Correction made the announcement today. The Federal Bureau of Investigation New Haven Division, Norfolk County Sheriff’s Office, and the Watertown, Reading, Peabody, Hudson, Concord, Waltham, Fitchburg, Leominster, Hartford (Conn.) and Manchester (Conn.) Police Departments provided valuable assistance. Assistant U.S. Attorney J. Mackenzie Duane of the Narcotics & Money Laundering Unit is prosecuting the case.This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal jury convicts man who flew from Bogota to Dulles with over two kilograms of cocaineRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Rockville, Maryland, man today on charges of possession with intent to distribute cocaine.
According to court records and evidence presented at trial, on April 25, 2024, Gildo Ricci, 69, a citizen of Peru and a Lawful Permanent Resident of the United States, arrived at Dulles International Airport in Virginia on a flight from Bogota, Colombia. At the U.S. Customs and Border Protection (CBP) inspection area, CBP officers referred RICCI for a secondary inspection, during which officers found several desserts and other food items. After applying pressure to one of the items, it emitted a white powdery substance that tested positive for cocaine hydrochloride.
When an officer observed that a cake was unusually heavy and decided to probe the cake with a knife, the knife failed to penetrate the cake. The officer began to remove the top layer of the cake and discovered a foil wrapped brick inside. Each cake contained cocaine hydrochloride. Soup mix packets also contained cocaine hydrochloride. Altogether, the CBP officers found 2.07 kilograms of cocaine in Ricci’s assorted food and dessert items.
Within one of Ricci’s suitcases was a child's backpack that contained of $7,750, which was later determined to be counterfeit.
Ricci faces up to 20 years in prison when sentenced on April 25. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kai Wah Chan, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Washington, D.C.; and Matthew S. Davies, Acting Director of CBP’s Baltimore Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict.
Special Assistant U.S. Attorney Christopher M. Carter and Assistant U.S. Attorney Tony R. Roberts 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-149.
Federal and Local Law Enforcement Officials Form Task Force to Combat Crimes Related to Los Angeles-Area WildfiresRead the Press Release
LOS ANGELES – The leaders of federal and local law enforcement agencies have joined together to create the Joint Regional Fire Crimes Task Force to investigate and prosecute fire-related crimes as Los Angeles County recovers from devastating wildfires. The Task Force will focus on investigating and prosecuting criminal actors seeking to exploit the wildfire crisis.
The Joint Regional Fire Crimes Task Force includes representatives of the United States Attorney’s Office; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Homeland Security Investigations (HSI); the Los Angeles County District Attorney’s Office; the Los Angeles City Attorney’s Office; the Los Angeles Police Department; and the Los Angeles County Sheriff’s Department.
Members of the Task Force will meet to discuss case leads, develop and share crime intelligence, and facilitate the efficient prosecution of crimes related to the Los Angeles County wildfires. The Task Force will primarily focus on four areas: looting, burglary and impersonation offenses; crimes related to arson; illegal drone activity; and financial fraud targeting both disaster victims and those wishing to make charitable donations.
“We will not permit victims to be re-victimized,” said United States Attorney Martin Estrada. “Our community has suffered tremendously, and we are here to support them. The Joint Fire Crimes Task Force is committed to addressing crimes coming out of the fires, including any looting, arson, illegal drone flights and fraud. As the rebuilding process begins and donations and relief funds come in, we must ensure that those seeking to take advantage through criminal activity are held fully accountable.”
“Every crisis generates the best of us – brave first responders and average people who step up financially to support victims – as well as the worst in our society, including those who steal well-intentioned money or defraud victims who are already suffering,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In addition to our efforts to combat fraud, we will devote resources to the task force to investigate allegations of arson, and we will not tolerate careless and criminal drone operators who put firefighters and residents in harm’s way. The FBI will commit resources to address this new crop of criminals callously taking advantage of the vulnerable during and after these devastating wildfires.”
“ATF possesses unparalleled expertise in determining the origin and cause of fires, even under the most complex and challenging conditions,” said Jose Medina, Acting Special Agent in Charge of the ATF Los Angeles Field Division. “Our agency offers a comprehensive set of resources for arson investigations, including certified fire investigators, chemists, electrical engineers, accelerant-detection canines, and a state-of-the-art fire research laboratory. Arson destroys lives, businesses, and entire communities. Together with our partners, we are committed to identifying, apprehending, and prosecuting those responsible.”
“Far too often, during tragic events like the Los Angeles-area wildfires, we have seen greedy individuals seek to line their pockets and divert critical funds from those most in need,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “HSI Los Angeles and partner agencies will do our part to help the region recover and rebuild by ensuring that disaster-related funds will go to individuals and families that lost loved ones, homes and livelihoods – and not unscrupulous fraudsters.”
“The Los Angeles County District Attorney’s Office, in partnership with local and federal law enforcement agencies, will relentlessly pursue and hold accountable those who despicably seek to exploit this tragedy for personal gain,” said Los Angeles County District Attorney Nathan Hochman. “We want to send a clear and unequivocal message to criminals: If you seek to commit crime during this crisis, from arson, looting, burglary and theft to price gouging and financial scams, we will arrest you, prosecute you, and seek to punish you to the full extent of the law. As billions of dollars in vital aid relief pour into Los Angeles County, our Task Force, comprised of over a thousand prosecutors and thousands of law enforcement agents, will protect those who have suffered from being victimized again. Justice will be swift, certain and significant. Los Angeles County has been tested before and prevailed; and we will prevail again.”
“I am proud to stand with this powerful collaboration as we work together to ensure that no individual or business gets away with illegal or predatory conduct, including price gouging. People preying on others will face criminal justice,” said Los Angeles City Attorney Hydee Feldstein Soto. “In addition, with so many people now facing uncertainty about their future, my office is also leaning in to bring every legislative, executive and civil resource at our disposal to help us get through this emergency, and to heal, recover and rebuild together. As Angelenos, it’s what we’ve always done.”
“As our community continues to deal with these devastating wildfires, we remain steadfast in our commitment to protect our residents from those who would exploit their vulnerability,” said Los Angeles County Sheriff Robert G. Luna. “Whether it’s arson, illegal drone activity disrupting first responders, or fraud targeting victims and donors, this joint task force will investigate and hold individuals accountable. These efforts are about protecting our communities and ensuring those affected by this unimaginable disaster recover without fear or further victimization.”
“The Joint Task Force brings together individuals and agencies with the most experience and best resources to ensure that those suspected of breaking the law are identified and held accountable,” said LAPD Chief of Police Jim McDonnell. “The LAPD will not allow criminals to compound the devastation of our residents, and we will devote whatever resources are necessary to protect them.”
The Joint Regional Fire Crimes Task Force will aggressively pursue offenders in the following categories:
Looting, Burglary, Curfew Violations and Impersonation
The Task Force and partner agencies are investigating any looting, burglary, robbery, grand theft, impersonation of firefighters or law enforcement, curfew violations, and related crimes stemming from the Palisades Fire, the Eaton Fire, and other wildfires. To date more than 50 individuals have been arrested, and nine defendants have been charged and face maximum sentences ranging from six years to life in prison.
Arson
Members of the Task Force and fire authorities are investigating the Palisades Fire, the Eaton Fire and the other wildfires that started over the past week. At the request of the U.S. Attorney’s Office, ATF Los Angeles and the LAPD, ATF deployed its renowned National Response Team to the Palisades fire to investigate. These specialized investigators are working around the clock to determine the origins of these fires.
In addition, as wind events and dry conditions continue to leave the region vulnerable to wildfires, the Task Force will aggressively prosecute anyone who attempts to cause new fires by malice or reckless behavior. The federal arson statute carries a five-year mandatory minimum prison sentence and a statutory maximum sentence of 20 years in federal prison. Those penalties can increase to life sentence if a death has occurred. Under California law, arson carries a prison sentence of up to nine years.
Illegal Drones
Fire personnel must be able to perform their duties without interference. Illegal drone activity in active fire zones has disrupted operations, including one instance where a drone collided with a fire suppression plane.
The areas around the Palisades and Eaton fires are under temporary flight restrictions through January 25, and it is a crime to fly a drone in these areas. The FBI has deployed equipment to detect drones flying in these restricted areas. The federal offense of flying a drone in ones of these restricted airspaces carries a penalty of up to one year in federal prison and a fine of up to $75,000.
Fraud
The Task Force will not allow fire victims to be re-victimized by fraud and theft. Its efforts focus on ensuring that relief funds reach those in need and working to swiftly prosecutor those engaged in defrauding donors.
Generous people around the world are making donators to assist victims. Unfortunately, this creates opportunities for scams as criminals exploit disasters for their own gain by sending fraudulent solicitations or creating deceiving websites. Potential donors are urged to make donations only to known entities and to avoid giving donations in cash or via wire transfer.
The Task Force will also investigator the misuse of aid programs administered by government agencies, such as the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA). Federal agencies are deploying significant financial resources to support homeowners, renters, nonprofits and businesses affected by the fires, and any attempt to misuse these funds through fraud or identity theft will be vigorously investigated and prosecuted.
There are numerous other potential scams that might victimize victims such as contractor fraud. The Task Force will target any individual seeking to defraud victims of the wildfires.
Price-gouging laws went into effect immediately upon the declaration of a state of emergency. No person and no business can increase pricing on housing, shelter, food, water, clothing, pet care, health care or any other essential goods or services by more than 10% without violating the law. The Los Angeles City Attorney’s Office is leading Task Force efforts in this area. Violations of the price gouging statute are subject to criminal prosecution for up to one year in prison, plus a fine of up to $10,000. They are also subject to civil enforcement actions to include civil penalties of up to $2,500 per violation, injunctive relief and mandatory restitution.
Members of the Task Force remain committed to seeing that victims of these devastating fires receive justice and that those who exploit or harm them are held accountable.
Members of the public are encouraged to report wrongdoing to authorities at any law enforcement agency. For example, tips may be directed to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/home. The public may also report examples of financial fraud to the National Center for Disaster Fraud at (866) 720-5721 or https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Federal Jury Convicts Local Rapper of Illegal Possession of FirearmsRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that a federal jury returned a guilty verdict today against Keynon Frazier, a/k/a “Green Eyez,” 29, of Shreveport, on an illegal possession of firearms charge. United States District Judge S. Maurice Hicks, Jr. presided over the three-day jury trial.
Evidence presented at trial showed that on April 15, 2024, officers with the Shreveport Police Department attempted to stop a vehicle being driven by Frazier in the downtown Shreveport area, which ended with his vehicle crashing into a telephone pole and another vehicle. Officers approached the crashed vehicle and found Frazier, who was the sole occupant and driver of the vehicle. Also inside the vehicle on the front passenger floorboard, officers found two firearms, a Glock 17 firearm, and a Glock 45 firearm, along with an expended shell casing stuck within the chamber of the Glock 45. In addition, there was a bullet-size hole found in the front driver’s side windshield of the vehicle.
Officers determined that Frazier had prior felony convictions for aggravated battery and second degree robbery, and he was arrested at the scene and taken into custody. As a convicted felon, Frazier was prohibited from possessing any firearm or ammunition. The jury deliberated for approximately two hours before reaching their guilty verdict.
Frazier faces a sentence of up to 15 years in prison, 3 years of supervised release, and a fine of up to $250,000. Sentencing for Frazier has been set for May 22, 2025, at 3:00.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Shreveport Police Department and prosecuted by Assistant United States Attorneys Aaron Crawford and Cheyenne Wilson.
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Federal Inmate Sentenced to 33 Months in Prison for Breaking Fellow Inmate’s JawRead the Press Release
PEORIA, Ill. – Travis Jay Nyhoff, 42, who is currently incarcerated at the Federal Correctional Institution in Pekin, Illinois (FCI-Pekin), was sentenced on January 10, 2025 to 33 months’ imprisonment for aggravated battery. The sentence will run consecutive to the term of imprisonment Nyhoff is presently serving for possession with intent to distribute 50 grams or more of methamphetamine.
At the sentencing hearing before U.S. District Judge Joe B. McDade, the court considered the following uncontested information regarding the assault. On December 8, 2023, Nyhoff had approached another inmate from behind as the inmate was watching television in the common area, yanked his chair out from beneath him, and proceeded to strike the inmate across the face with the chair and then hurl the chair at the wall. The unprovoked attack was documented by security footage. The inmate sustained a broken lower jawbone, a laceration to his face that penetrated his oral cavity, and several dislodged teeth. He later underwent surgery to repair his jawbone.
A federal grand jury returned an indictment charging Nyhoff with assault in April 2024, and he entered a guilty plea in August 2024.
The statutory penalties for aggravated battery are two to five years’ imprisonment, to be followed by up to three years of supervised release.
The Federal Bureau of Investigation, Springfield Field Office, and the Federal Bureau of Prisons Special Investigative Services investigated the case. Assistant U.S. Attorney Melissa P. Ortiz represented the government in the prosecution.
Federal Inmate Sentenced to Additional 10 Years in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A federal inmate serving a ten-year sentence for possessing child pornography was sentenced today to an additional ten years in prison for possessing images and videos of child sexual abuse while incarcerated on his prior conviction, Acting U.S. Attorney Vikas Khanna announced.
Daniel Baldwin, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. U.S. District Judge Karen M. Williams imposed the sentence today.
According to documents filed in this case and statements made in court:
Baldwin was convicted in 2018 of possessing child pornography and sentenced to ten years imprisonment. In June 2022, while serving his sentence at a federal correctional institution in New Jersey, corrections officers found a SD card hidden in Daniel Baldwin’s clothing. A subsequent search of the SD card revealed hundreds of images and videos of child pornography, including depictions of prepubescent minors engaged in sexually explicit conduct.
In addition to the prison term, Judge Williams sentenced Baldwin to seven years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, under the leadership of Special Agent in Charge Brian J. Driscoll, with the investigation leading to today’s sentencing. He also thanked FCI Fort Dix staff for their assistance in the investigation.
The Government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Federal Grand Jury Indicts Two Louisville Men for Drug and Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on January 8, 2025, charging two local men with trafficking in firearms, distribution of methamphetamine, and illegal possession of firearms.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, Karen Wingerd, Special Agent in Charge, Cincinnati Field Office, IRS Criminal Investigation, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.
According to the indictment, Sukhjit Bains, 51, was charged with two counts of trafficking in firearms, two counts of distribution of 50 grams or more of a mixture of methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, two counts of possession of a firearm by a prohibited person, and one count of illegal possession of a machine gun, specifically, a 3D printed Glock type machinegun conversion device. A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law. All charges occurred on November 20th and December 12th of 2024. Bains was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On November 28, 2018, in the United States District Court, Western District of Kentucky, Bains was convicted of possession of a firearm and ammunition by a convicted felon, and possession with intent to distribute methamphetamine.
On March 28, 2017, in in Jefferson County Circuit Court, Bains was convicted of wanton endangerment in the first degree, tampering with physical evidence, and two counts of possession of a controlled substance in the first degree-methamphetamine.
Jonathan Ernspiker, 42, was charged with trafficking in firearms, distribution of 50 grams or more of a mixture of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a prohibited person. All charges occurred on November 20, 2024. Ernspiker was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On May 26, 2017, in Bullitt County Circuit Court, Ernspiker was convicted of being a convicted felon in possession of a firearm and possession of a controlled substance in the first degree methamphetamine.
On November 4, 2013, in Bullitt County Circuit Court, Ernspiker was convicted of fleeing or evading police in the first degree, and manufacturing methamphetamine in the first degree.
On May 3, 2013, in Bullitt County Circuit Court, Ernspiker was convicted of trafficking in a controlled substance in the first degree greater than two grams of methamphetamine.
On October 1, 2008, in Bullitt County Circuit Court, Ernspiker was convicted of criminal mischief in the first degree.
On January 10th Ernspiker and on January 13th Baines made an initial made initial court appearances before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. The Court ordered the Ernspiker detained pending trial. Baines has a detention hearing scheduled for tomorrow, January 16th. If convicted, Bains faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison, Ernspiker faces a minimum sentence of 10 years in prison and maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the ATF, LMPD, DEA, and IRS-CI.
Assistant U.S. Attorney Joshua R. Porter is prosecuting this case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Farmville felon sentenced to over 13 years in prison for illegal firearm possessionRead the Press Release
RICHMOND, Va. – A Farmville man was sentenced today to 13 years and four months in prison for being a felon in possession of a firearm.
According to court documents, on Oct. 31, 2023, an officer with the Richmond Police Department encountered Pierre Redd, 32, asleep in the driver seat of a vehicle stopped at an intersection in Richmond. The car was in drive at the time. The officer observed in plain view a loaded handgun between Redd’s legs and a bag containing 15.3 grams of cocaine in Redd's hand.
The officer opened the driver-side door, removed the firearm and cocaine, and awakened Redd. The officer directed Redd to place the car in park, and then reached in and placed the car in park himself. The officer then directed Redd to exit the vehicle. After Redd repeatedly declined to comply, the officer placed a handcuff on Redd's left wrist. Redd then placed the car in drive and sped away.
The officer returned to his police vehicle and pursued Redd with his lights and siren engaged. As Redd attempted to flee, he ran numerous stop signs and drove on the wrong side of the street. Redd eventually pulled into an apartment complex, where he exited his vehicle without putting it in park. The officer eventually subdued and arrested Redd after a foot pursuit.
At the time of the offense, Redd had several previous felony convictions, including, among others, for attempted malicious wounding, reckless handling of a firearm, receiving a stolen firearm, possession of a firearm by a felon, assault, forgery of public records, and possession of heroin. As a previously convicted felon, Redd cannot legally possess a firearm or ammunition.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Patrick J. McGorman and Stephen W. Miller 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 are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-56.
False Claims Act Settlements and Judgments Exceed $2.9B in Fiscal Year 2024Read the Press Release
Settlements and judgments under the False Claims Act exceeded $2.9 billion in the fiscal year ending Sept. 30, 2024, Principal Deputy Associate Attorney General Benjamin C. Mizer and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today. The government and whistleblowers were party to 558 settlements and judgments, the second highest total after last year’s record of 566 recoveries, and whistleblowers filed 979 qui tam lawsuits, the highest number in a single year. Settlements and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $78 billion.
“The Department’s enforcement of the False Claims Act this past year demonstrates its continued commitment to pursuing those who seek to defraud the American taxpayers,” said Principal Deputy Associate Attorney General Mizer. “The False Claims Act and its whistleblower provisions remain a critical tool in protecting the public fisc and ensuring that taxpayer funds serve the purposes for which they were intended.”
“The Department places a high priority on fighting fraud and abuse in federal programs,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department’s Civil Division. “The results announced today highlight once again that such conduct will not be tolerated, and that those who knowingly misuse taxpayer funds will be held accountable.”
The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus safeguards government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits. The resolutions in fiscal year 2024 also reflect the Department’s focus on key enforcement priorities, including combating health care fraud, the opioid epidemic, fraud in pandemic relief programs, and violations of cybersecurity requirements in government contracts and grants.
Of the more than $2.9 billion in False Claims Act settlements and judgments reported by the Justice Department this past fiscal year, over $1.67 billion related to matters that involved the health care industry, including managed care providers, hospitals and other medical facilities, pharmacies, pharmaceutical companies, laboratories, and physicians. The amounts included in the $1.67 billion reflect recoveries arising only from federal losses, but in many of these cases, the Department was instrumental in recovering additional amounts for state Medicaid programs.
The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporate entities. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system.
The Department also remained committed to incentivizing and rewarding entities and individuals that self-disclose misconduct, demonstrably cooperate in the course of an investigation, and take effective remedial measures. Multiple settlements over the last year acknowledged such cooperative measures and reflected credits afforded to the defendants in the form of reduced penalties or damage multiples in connection with the resolution, including several of the matters discussed in more detail below. These cooperative measures included self-disclosures, assistance with the determination of government losses, disclosures of internal investigations and facts not known to the government, and remedial measures such as implementing tracking system enhancements or terminating or separating employees.
In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblowers, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year, significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. The 979 qui tam suits filed in fiscal year 2024 breaks the prior record set in 2013, and this past year, the Justice Department reported settlements and judgments exceeding $2.4 billion in these and earlier-filed qui tam suits.
The $2.9 billion in settlements and judgments announced today does not include two significant settlements occurring just after the end of the fiscal year.
On Oct. 10, 2024, Teva Pharmaceuticals USA Inc., the largest generic drug manufacturer in the country, agreed to pay $425 million to resolve allegations that it violated the False Claims Act by paying copays for Medicare patients for the multiple sclerosis drug Copaxone while steadily raising the drug’s price. Teva further agreed to pay $25 million to resolve allegations that it conspired with other generic drug manufacturers to fix prices for certain drugs and that the benefits Teva received under its price fixing scheme constituted illegal kickbacks. This is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers.
On Oct. 16, 2024, Raytheon Company paid $428 million to resolve allegations that it knowingly provided false cost and pricing data when negotiating with the Department of Defense for numerous government contracts and double billed on a weapons maintenance contract, leading to Raytheon receiving profits in excess of negotiated rates. This is the second largest government procurement fraud recovery under the False Claims Act in history.
Representative examples of False Claims Act matters pursued by the government and whistleblowers this past fiscal year are discussed below.
HEALTH CARE FRAUD
In fiscal year 2024, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, in many cases, enforcement of the False Claims Act also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services.
Opioid Epidemic
The Justice Department continued its pursuit of health care providers, pharmaceutical companies and pharmacies that contributed to and exacerbated the opioid crisis.
Endo Health Solutions, which is in bankruptcy, agreed that the United States has an allowed, unsubordinated, general unsecured claim of $475.6 million in the bankruptcy to resolve, among other things, allegations relating to losses to federal healthcare programs that paid for Opana ER, an opioid drug sold and marketed by Endo. The Department alleged that Endo used an aggressive scheme that marketed Opana ER to high-volume prescribers of opioids, including many prescribers that Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications.
Rite Aid Corporation and 10 subsidiaries and affiliates paid $7.5 million and agreed to provide to the United States an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case to resolve allegations that Rite Aid knowingly dispensed unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not issued in the usual course of professional practice and/or were not valid prescriptions, or were not for a medically accepted indication. The unlawful prescriptions included prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” and prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl.
Dr. Gregory Gerber agreed to a consent judgment that, among other things, requires him to pay $4.7 million arising from allegations that he unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances, that one patient died from an overdose of fentanyl patches prescribed by Gerber, and that Gerber received kickback payments from a drug manufacturer. Gerber was also sentenced to 42 months in prison and one year of home confinement in a related criminal case.
A chain of substance use disorder treatment clinics called Crossroads paid $863,934 to resolve allegations that the clinics defrauded the Medicaid program by billing for treatment services they did not provide by, for example, billing for comprehensive medical examinations when only a regular check-in visit occurred.
Unnecessary Services and Substandard Care
The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care.
Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities agreed to pay $21.3 million to resolve allegations that they knowingly billed federal health care programs for therapy services that were unreasonable, unnecessary or unskilled, or that simply did not occur as billed. As part of the settlement, the company admitted it had implemented quotas relating to beneficiaries’ length of stay and to the percentages of beneficiaries billed at the highest reimbursement rate, resulting in some Medicare beneficiaries staying on therapy longer than was reasonable and medically necessary.
Acadia Healthcare Company Inc. paid $16.6 million to resolve allegations that six of its health facilities billed for medically unnecessary inpatient behavioral health services and failed to properly discharge beneficiaries when they no longer needed inpatient treatment and had improper and excessive lengths of stay. The United States further alleged that Acadia failed to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm resulting from these staffing deficiencies, and failed to provide active treatment, to develop and/or update individualized assessments and treatment plans, to provide adequate discharge planning, and to provide required individual and group therapy.
Daniel Hurt, who owned and/or operated Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, agreed to pay over $27 million, based on his ability to pay, to resolve allegations that he and his companies received payments from Medicare for cancer genomic tests that were not medically necessary and were procured through illegal kickbacks.
Medicare Advantage Matters
The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries impacted, the work of the Justice Department in this area is of critical importance.
Oak Street Health, a wholly-owned subsidiary of CVS Health since 2023, paid $60 million to resolve allegations that it paid kickbacks to third-party insurance agents in exchange for recruiting seniors to Oak Street’s primary care clinics. Under the Medicare Advantage Program, Medicare beneficiaries have the option to obtain their health care through privately-operated insurance plans known as MA plans, some of which contract with health care providers, including Oak Street, to provide their plan members with primary care services. The United States alleged that the Oak Street Health payments to the agents improperly incentivized them to base their referrals and recommendations on the financial motivations of Oak Street Health and of the agents rather than the best interests of seniors.
In addition to this matter, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group, Elevance Health (formerly Anthem), and the Kaiser Permanente consortium.
Unlawful Kickbacks and Stark Law Violations
Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program. The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting billing for certain services when the referring physician and the entity submitting the claim have a financial relationship that does not satisfy one of the statute’s exceptions.
Community Health Network Inc. (Community) paid $345 million to resolve allegations that it submitted claims to Medicare for services that were referred in violation of the Stark Law. The United States alleged that the compensation Community paid to certain physician groups was well above fair market value, and that Community awarded bonuses to physicians that were tied to the number of their referrals. The United States alleged that senior management at Community embarked on an illegal scheme to recruit physicians for employment for the purpose of capturing their lucrative “downstream referrals.”
DaVita Inc. paid $34.5 million to resolve allegations that it paid kickbacks to a competitor to induce referrals to a former subsidiary that provided pharmacy services for dialysis patients. As part of the improper arrangement, the United States alleged that DaVita agreed to acquire certain European dialysis clinics and agreed to purchase dialysis products from the competitor. The United States also alleged that DaVita paid additional kickbacks to nephrologists and vascular physicians to induce referrals to DaVita’s dialysis centers.
Prema Thekkek, her management company Paksn Inc., and six skilled nursing facilities owned by Thekkek and/or operated by Paksn entered into a $45.6 million consent judgment to resolve allegations they paid kickbacks to physicians in the form of medical directorships to induce patient referrals.
RDx Bioscience Inc. (RDx) and its owner and Chief Executive Officer Eric Leykin paid $10.3 million to resolve allegations that they paid kickbacks in the form of commissions based on the volume and value of referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests, as well as purported management services organization (MSO) payments to physicians, which were disguised as investment returns but actually were offered to induce the provider to order RDx laboratory tests. To date the government has recovered over $53 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 48 physicians.
Innovasis and two senior executives agreed to pay $12 million to resolve allegations that they paid kickbacks to spine surgeons in the form of consulting fees, intellectual property acquisition and licensing fees, registry payments, performance shares in Innovasis, travel to a luxury ski resort, and lavish dinners and holiday parties to induce use of the company’s spinal implants, devices, and other equipment in medical procedures performed on Medicare beneficiaries.
The Justice Department filed claims against Murphy Medical Center, Inc., doing business as Erlanger Western Carolina Hospital, and Chattanooga-Hamilton County Hospital Authority doing business as Erlanger Health System and Erlanger Medical Center (collectively, Erlanger), alleging that Erlanger knowingly submitted claims to Medicare for services that were referred in violation of the Stark Law. The complaint alleged that Erlanger paid its physicians compensation that was well above fair market value and that Erlanger knew that the claims for services referred by those physicians were not eligible for payment.
The Justice Department also filed claims against Rick Nassenstein, formerly the president, chief financial officer, and co-owner of Cardiac Imaging Inc., a provider of mobile cardiac positron emission tomography (PET) scans. The complaint alleges that Nassenstein played a central role in a scheme whereby CII paid above-fair market value fees to doctors who referred patients to CII for cardiac PET scans, which was the subject of a $85 million settlement with Cardiac Imaging and its founder last year.
Other Health Care Fraud
Rite Aid Corporation (Rite Aid) and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC, and RX Solutions LLC (Elixir), which offered Medicare drug plans and pharmacy benefit manager (PBM) services, agreed to pay $101 million and to grant the United States an additional, allowed, unsubordinated, general unsecured claim of $20 million in Rite Aid’s bankruptcy to resolve allegations that they failed to accurately report drug rebates to the Medicare Program. The United States alleged that these Rite Aid entities improperly reported portions of rebates they received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees.
Walgreens Boots Alliance Inc. and Walgreen Co. (together, Walgreens) agreed to pay $106.8 million to resolve allegations that they billed government health care programs for prescriptions that were processed but never picked up by beneficiaries.
Columbus LTACH, doing business as Silver Lake Hospital, and certain of its investors, agreed to pay over $30 million to resolve allegations that Silver Lake claimed excessive Medicare cost outlier payments, a form of supplemental reimbursement to hospitals in cases where the cost of care is unusually high. The settlement also resolved allegations under the Federal Debt Collection Procedures Act that Silver Lake transferred millions of dollars of the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program.
Gentiva, successor to Kindred at Home, paid $19.4 million to resolve allegations that Kindred at Home and related entities submitted claims and retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits.
The Justice Department filed claims against Regeneron Pharmaceuticals Inc., alleging that the company fraudulently inflated Medicare reimbursement rates for Eylea, a medication used to treat neovascular Age-Related Macular Degeneration. The complaint alleges that Regeneron knowingly submitted false average sales price reports, on which Medicare reimbursements are set, to the government that did not take into account certain price concessions.
The Justice Department also filed claims against six health plans (Brighton Marine Health Center, CHRISTUS Health Services, Johns Hopkins Medical Services Corporation, Martin’s Point Health Care, Pacific Medical Center, and St. Vincent’s Catholic Medical Centers of New York) participating in the Uniformed Services Family Health Plan program, as well as their trade group, alleging they knowingly retained inflated payments for healthcare services provided to retired military members and their families. The United States further alleged that after learning of the calculation errors, the plans took steps to conceal the overpayments from the government and continued to submit invoices at the inflated payment rates. The government resolved related claims against Kennell and Associates, an actuarial firm, for $779,951 plus contingent payments, based on its inability to pay.
MILITARY PROCUREMENT FRAUD
The government continued its pursuit of fraud matters involving the purchase of goods and services by the military services. Fraud in these programs not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk.
Sikorsky Support Services Inc and Derco Aerospace Inc. paid $70 million to resolve allegations they overcharged the U.S. Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators. The United States alleged that these entities, which were owned by the same parent company, entered into an improper subcontract that resulted in the Navy paying inflated costs for parts.
Austal USA LLC paid $811,259 to resolve allegations that it knowingly supplied valves that did not meet military specifications. The United States alleged that under a U.S. Navy contract Austal invoiced for military grade valves to be installed on certain combat ships when Austal knew the valves had not met the testing requirements to be deemed military grade.
The Department brought claims against Insect Shield LLC and the Estate of Richard Lane, the founder, majority owner and chief operating officer of the company, for allegedly causing the submission of false claims to the Department of Defense under contracts to provide Army Combat Uniforms. The United States alleges that Insect Shield and Lane falsified the results of the insect repellant testing to conceal failing test results, including by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples, and performing re-tests of uniforms in excess of what the contract permitted.
PANDEMIC FRAUD
In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), and alleged fraud affecting Medicare and other federal healthcare programs for services related to COVID-19 testing and treatment. During fiscal year 2024, the Department obtained more than 250 False Claims Act settlements and judgments, which collectively exceeded more than $250 million, resolving allegations of pandemic-related fraud.
Now-bankrupt financial technology company Kabbage Inc., doing business as KServicing, agreed to resolve allegations that it submitted, and caused the submission of, thousands of false claims for PPP loan forgiveness, loan guarantees, and processing fees to the SBA. The United States alleged that Kabbage systemically inflated PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive, and that Kabbage failed to implement appropriate fraud controls. As part of the resolution, the United States will receive an allowed, unsubordinated, general unsecured claim in the bankruptcy proceeding of up to $120 million.
West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.) and its founders and former owners Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi paid $6.3 million to resolve allegations that the company and affiliated dental offices received seven improper second-draw PPP loans, which were limited to businesses with 300 employees or less. The United States alleged the companies falsely certified that they qualified for these loans.
Hemisphere GNSS (USA) Inc., which was purchased by CNH Industrial in 2023, paid $2.6 million to resolve allegations that it provided false information with a PPP loan and forgiveness of that loan. To obtain the loan, the company certified that no entity created in or organized under the laws of the People’s Republic of China owned or held 20% or more of an economic interest in the company, and that it did not have a board member who was a resident of the People’s Republic of China. The United States alleged that at the time the company applied for the loan, both of those certifications were false.
Andrew Maloney and the clinical laboratory that he owned, Capstone Diagnostics, paid $14.3 million to resolve allegations that, among other things, they sought to profit from the COVID-19 pandemic by paying volume-based commissions to independent contractor sales representatives to recommend respiratory pathogen panel tests to senior communities interested only in COVID-19 tests and to generate orders using forged signatures of physicians that did not reflect the medical conditions of the senior community residents receiving the tests. In a similar matter, the government obtained a $26.3 million default judgment against Provista Health LLC and its owner Patrick Britton-Harr for billing during the height of the pandemic for medically unnecessary respiratory pathogen panel tests and tests that were not performed.
City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company LLC, which collectively do business as CityMD, agreed to pay $12 million to resolve allegations for false claims for COVID-19 testing to a Health Resources and Services Administration (HRSA) program for uninsured patients arising from CityMD’s failure to adequately confirm that the individuals had health insurance coverage before submitting their claims to the Uninsured Program.
CYBERSECURITY INITIATIVE
The Department’s effort to combat cybersecurity threats includes its Civil Cyber-Fraud Initiative. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements.
The Justice Department filed claims against Georgia Institute of Technology and Georgia Tech Research Corp. alleging that those defendants failed to meet cybersecurity requirements in connection with Department of Defense (DoD) contracts. The complaint alleges that a research lab at Georgia Tech failed to develop and implement a system security plan, as required by DoD cybersecurity regulations, and submitted a false cybersecurity assessment score to DoD for the Georgia Tech campus. The complaint also alleges that the lab failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at the lab.
Guidehouse Inc. paid $7.6 million and Nan McKay agreed to pay $3.7 million to resolve allegations they failed to meet cybersecurity requirements in a contract with New York funded by a federal grant intended to secure online environments for New York residents to apply for federal rental assistance during the Covid-19 pandemic. Guidehouse and McKay admitted that neither satisfied their obligation to complete the required testing of the online site used to house applicants’ information, and the site was shut down within twelve hours after certain applicants’ personally identifiable information had been compromised.
Insight Global LLC paid $2.7 million to resolve allegations it failed to implement adequate cybersecurity measures to protect health information obtained during Covid-19 contact tracing. The United States alleged that the Pennsylvania Department of Health hired the company to provide staffing for Covid-19 contact tracing using funds from the U.S. Centers for Disease Control and Prevention and that the company failed to keep the health information confidential and secure.
OTHER FRAUD RECOVERIES
The judgments, settlements, and lawsuits announced during fiscal year 2024 involved a variety of other programs and schemes that reflect the range of the government’s False Claims Act enforcement efforts.
Gen Digital Inc. (formerly known as Symantec Corp.) paid $55.1 million to satisfy a judgment that it made knowingly false claims to the United States when it misrepresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract. The court found after a four-week bench trial that the false disclosures induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices. The court also found that Symantec continuously violated the Price Reduction Clause, a standard term in these types of contracts that requires the contractor throughout performance of the contract to maintain GSA’s price position in relation to an identified customer or category of customer agreed upon in contract negotiations.
The City of Los Angeles paid $38.2 million to resolve allegations that it failed to meet federal accessibility requirements when it sought and used Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing. The United States alleged that the city failed to make its affordable multifamily housing program accessible to people with disabilities. The United States further alleged that the city failed to maintain a publicly available list of accessible units and their accessibility features and the city, on an annual basis, falsely certified to HUD that it complied with related grant requirements.
Hilcorp San Juan L.P. paid $34.6 million to resolve allegations that it underpaid royalties owed on oil and natural gas produced from federal lands. The United States alleged that the company made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently adjusting its payments in the following months to account for actual volumes and values, resulting in the underpayment of royalties to the United States. In another case based on allegations of the underpayment of royalties owed on natural gas, XTO Energy Inc. paid $16 million to resolve allegations that the company improperly deducted costs necessary to put the gas in marketable condition, improperly deducted costs of transporting carbon dioxide, and failed to pay royalties on carbon dioxide.
Hahn Air Lines GmbH and Hahn Air USA Inc. paid $26.8 million to resolve allegations that Hahn Air failed to remit to the United States certain travel fees collected from commercial airline passengers flying into or within the United States.
Consolidated Nuclear Security LLC paid $18.4 million to resolve allegations that it billed for time not worked at the National Nuclear Security Administration’s Pantex Site near Amarillo, Texas.
AECOM paid $11.8 million to resolve allegations that it submitted false claims to the Federal Emergency Management Agency for the replacement of certain educational facilities located in Louisiana that were damaged by Hurricane Katrina. The United States alleged that AECOM submitted to FEMA fraudulent requests for disaster assistance funds and did not correct applications that included materially false design, damage and replacement eligibility descriptions. Combined with settlements with other entities involved in the alleged conduct, the government recovered over $25 million in connection with the disaster assistance applications prepared by AECOM.
RECOVERIES IN WHISTLEBLOWER SUITS
Of the $2.9 billion in settlements and judgments reported by the government in fiscal year 2024, over $2.4 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the relator shares for the individuals who exposed fraud and false claims by filing qui tam actions exceeded $400 million.
The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with an average of more than 18 new cases filed every week during this past year.
“Whistleblowers play a critical role in identifying fraud schemes,” said Principal Deputy Assistant Attorney General Boynton. “We continue to be grateful for their efforts and often substantial sacrifices to uncover and report these schemes.”
In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions.
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On behalf of the Civil Division, Principal Deputy Assistant Attorney General Boynton expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. “The accomplishments announced today are a result of the tireless efforts of civil servants who work to protect taxpayer dollars and the important programs that they support,” said Principal Deputy Assistant Attorney General Boynton. “These individuals serve at offices across the country, including the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that contribute to this important work.”
Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest.
View the statistics sheet here.
Eric G. Olshan Steps Down as United States AttorneyRead the Press Release
PITTSBURGH, Pa. – United States Attorney Eric G. Olshan announced today that he will resign his position, effective 11:59 p.m. on January 19, 2025.
“The dedicated public servants who walk the halls of our office are second to none in their clear-eyed and even-handed commitment to pursuing justice on behalf of the more than three million people who call the Western District of Pennsylvania home,” said U.S. Attorney Olshan. “Serving alongside this team of career civil servants—prosecutors, civil litigators, and professional staff alike—has been the privilege of my career. I am grateful to President Biden, Senator John Fetterman, and former Senators Bob Casey and Pat Toomey for their trust and faith in my ability to lead the office. I will always treasure the 17 years I have devoted to representing the United States and working to defend and uphold the rule of law on behalf of the Department of Justice and the American people.”
During Olshan’s tenure as U.S. Attorney, the office continued its steadfast efforts to tackle violent crime and the most serious narcotics offenses, focusing on large-scale drug trafficking organizations (DTOs) and the offenders who drive violence in western Pennsylvania. Working side by side with dedicated federal, state, and local law enforcement partners throughout the district, the office brought charges against: 24 members and associates of the “Drizzy” street gang for cocaine trafficking (Pittsburgh); eight members and associates of the “Zhoove” street gang for fentanyl and cocaine trafficking (Pittsburgh); 19 defendants involved in an interstate DTO trafficking fentanyl, heroin, cocaine, and oxycodone (New Castle); 35 members and associates of a cross-country and transnational DTO trafficking fentanyl, methamphetamine, and cocaine (Johnstown area); 13 defendants involved in a DTO trafficking methamphetamine, heroin, and cocaine (Altoona area); and 26 regional drug dealers trafficking fentanyl, methamphetamine, and cocaine (Erie).
Driving down the illicit sale and use of firearms likewise remained a priority, with the office securing convictions of three defendants, including a former police officer, who built and sold so-called “hit kits” containing untraceable privately made firearms (“ghost guns”), silencers, subsonic ammunition, and latex gloves. The office also brought charges against several extremely violent offenders, including an alleged methamphetamine dealer who orchestrated a targeted bombing resulting in the death of a woman who owed him a drug debt; an alleged fentanyl and heroin dealer who discharged a Glock equipped with a machinegun conversion device while fleeing from the police; a violent drug offender who allegedly shot at and attempted to kill a DEA agent; and a violent recidivist offender who allegedly committed multiple armed carjackings and robberies of Pittsburgh-area businesses. Notably, after experiencing a steady increase in homicides beginning in 2019, Pittsburgh—the district’s largest municipality—has seen more than a 40% decrease in homicides since 2022. Non-fatal shootings in the city similarly have dropped by more than 50% over the last three years after a four-year increase starting in 2018.
Under Olshan’s leadership, the office focused on offenders who preyed upon the most vulnerable members of our communities. On the white collar front, prosecutors brought charges against the alleged perpetrators of a multi-million-dollar international “lottery” scam targeting the elderly, as well as a far-reaching “bail bond” scam, securing convictions and significant sentences against multiple co-conspirators and successfully extraditing the alleged masterminds from Panama. The office also continued its impressive track record of obtaining substantial justice for child victims, including cases against a defendant who engaged in the sextortion of multiple children (30 years in prison); a defendant who used the dark web to distribute child sexual abuse material (25 years); a Florida resident who transported and sexually exploited a child from Erie (20 years); a Pennsylvania State Trooper who surreptitiously recorded children (23 years); and a defendant who created “morphed” sexually explicit images of child actors (14 years).
During Olshan’s tenure, the office strengthened its position at the forefront of complex cyber enforcement, working with domestic and international law enforcement partners to disrupt a Russia-based criminal enterprise through the seizure of web domains used to create more than 40,000 spoofed websites and store the personal information of more than a million victims. The office also coordinated a court-authorized operation that disrupted a worldwide botnet operated by Chinese state-sponsored hackers and shut down the illicit Rydox online marketplace where cyber criminals had access to over 300,000 cybercrime tools.
The office further demonstrated its ongoing commitment to combatting the threat of domestic and international terrorism, obtaining convictions against two defendants who violently obstructed law enforcement during a protest on the campus of the University of Pittsburgh and bringing terrorism charges against an Upper St. Clair resident who traveled to Lebanon and Syria with a “master plan . . . to join Hezbollah and kill Jews.”
Under Olshan’s leadership, the office cemented its reputation as a national leader in hate crime enforcement, including through the completion of a groundbreaking prosecution of two co-conspirators who committed violent assaults against over a dozen severely disabled residents at a Beaver County long-term care facility. The office also brought hate crime charges against two defendants, including a self-avowed Hamas adherent, who allegedly vandalized Jewish property in Pittsburgh’s Squirrel Hill neighborhood.
Moreover, Olshan’s tenure saw the successful conclusion of the prosecution of the worst antisemitic mass shooting in United States history, resulting in the deaths of 11 Jewish worshippers from three congregations at the Tree of Life Synagogue on October 27, 2018.
“This investigation and prosecution will forever be a part of the fabric of our office,” U.S. Attorney Olshan said. “There is no greater honor as a prosecutor than securing justice for crime victims, and I will always be grateful for the faith and trust of the victim community in this case. It was a gift our team of prosecutors, investigators, and victim-support staff worked each day to earn, and it sustained us throughout the years-long litigation.”
Olshan also worked with office colleagues and law enforcement partners to enhance community outreach efforts around the district, including through participation in numerous United Against Hate educational programs, the Take Back the Night march at Indiana University of Pennsylvania, National Night Out police-community engagement events, Shon Owens Unity Week events in Beaver County, a “Bigs in Blue” event through Big Brothers and Big Sisters of Greater Pittsburgh, Pittsburgh Pride events, and the Allegheny County Anchored Reentry Annual Summit, which the office co-hosted. During Olshan’s tenure, the office coordinated multiple trainings for federal, state, and local law enforcement, including programs on strategic subject interviewing techniques, criminal use of artificial intelligence, criminal intelligence analytics, and First Amendment-protected activity.
The office’s Civil Division additionally saw significant results in cases across multiple areas of enforcement under Olshan’s leadership. For example, the office filed a complaint against a nationwide insurer and its subsidiaries for falsely placing auto insurance on hundreds of thousands of car buyers; secured a $6.5 million False Claims Act judgment against a telecommunications company related to violations of an FCC subsidy program; entered into a consent decree with the Allegheny County Jail to ensure that inmates received prescribed medications for opioid use disorder under the Americans with Disabilities Act; obtained an injunction prohibiting Philips Respironics from manufacturing and distributing faulty sleep and respiratory devices; and resolved Clean Air Act claims against two oil and natural gas producers for over $5 million.
The office’s affirmative civil enforcement, financial litigation, and asset forfeiture staff likewise continued to set the standard in financial recoveries, collecting more than $120 million in civil, criminal, and forfeiture actions in fiscal years 2023 and 2024.
Upon Olshan’s resignation and pursuant to the Vacancies Reform Act, First Assistant United States Attorney Troy Rivetti, who has served the office for over 27 years, will become the Acting United States Attorney. Rivetti previously served as the Acting U.S. Attorney for the office prior to Olshan’s confirmation.
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U.S. Attorney Olshan joined the Department of Justice in Washington, D.C., through the Attorney General’s Honors Program in 2007 and spent a decade prosecuting public corruption offenses in federal courts around the country as a Trial Attorney and Deputy Chief in the Criminal Division’s Public Integrity Section. Olshan became an Assistant United States Attorney in the Western District of Pennsylvania in 2017, and, prior to assuming his position as U.S. Attorney, most recently served as the Chief of the Economic, Cyber, and National Security Crimes Section. During his time in the office, Olshan also served as the Civil Rights Coordinator, Healthcare Fraud Coordinator, Public Corruption Coordinator, Environmental Crime Coordinator, and District Election Officer.
Olshan was nominated by President Joseph R. Biden Jr. on March 21, 2023, and unanimously confirmed by the United States Senate on June 8, 2023. As U.S. Attorney, he oversaw an office of approximately 130 prosecutors, civil litigators, and professional staff in three offices—Pittsburgh, Erie, and Johnstown. During his tenure, Olshan served on the Attorney General’s Advisory Committee (AGAC), a select group of U.S. Attorneys who advise the Attorney General on matters of policy, procedure, and management. Olshan was also a member of the AGAC’s White Collar Fraud, Terrorism and National Security, Civil Rights, and Environmental Justice subcommittees.
Eleven Defendants Sentenced to a Total of 123 Years in Federal Prison as Law Enforcement Dismantles Cartel-Linked Drug Trafficking Ring that Used Train Cars in the Midwest to Smuggle Fentanyl and MethamphetamineRead the Press Release
INDIANAPOLIS— The following eleven defendants have been sentenced for their roles in a large methamphetamine trafficking ring:
DefendantCharge(s)Prison SentenceErick Apolinar Romero, 35Conspiracy to distribute controlled substances
Distribution of Methamphetamine
Attempted possession with intent to distribute controlled substances
19 years
5 years supervised release
Matthew Wright, 47
Palestine, IllinoisPossession with intent to distribute methamphetamine19 years
5 years supervised release
Julian Islas-Lozada, 37Conspiracy to distribute controlled substances
Distribution of Methamphetamine
Unlawful use of a communication facility
19 years
5 years supervised release
Zachary Polk, 46
Vincennes, Indiana
Possession with intent to distribute methamphetamine188 months (15.7 years)
5 years supervised release
Junior Castillo, 36Conspiracy to distribute controlled substances
Attempted possession with intent to distribute controlled substances
Unlawful use of a communication facility
170 months (14.1 years)
5 years supervised release
Kevin Josue Patino-Romero, 21Conspiracy to distribute controlled substances
Distribution of Methamphetamine
140 months (11.7 years)
5 years supervised release
Alexander Franco-Lopez, 21Conspiracy to distribute controlled substances
Attempted possession with intent to distribute controlled substances
80 months (6.7 years)
3 years supervised release
Jesus Alberto Casillas-Martinez, 28Conspiracy to distribute controlled substances
Attempted possession with intent to distribute controlled substances
65 months (5.4 years)
3 years supervised release
Eduardo Perez-Martinez, 30Conspiracy to distribute controlled substances.
Attempted possession with intent to distribute controlled substances.
65 months (5.4 years)
3 years supervised release
Eduardo Abel Torres De Leon, 31Unlawful use of a communication facility4 years
1 year supervised release
Richard Michael Moore, 56Unlawful use of a communication facility3 years
1 year supervised release
According to court documents, between September 2021 and November 2022, the defendants conspired together to distribute a total of nearly 400 pounds of methamphetamine, and over seven kilograms of fentanyl.
Romero supervised the organization, and throughout the course of the conspiracy, he and other members assisted the smuggling of methamphetamine and fentanyl from a Mexican drug cartel to the United States. The methods ranged from delivery by the United States Postal Service, commercial land vehicle smuggling, and the use of trains. Romero, Islas-Lozada, and Patino-Romero then supplied the drugs to De Leon, Moore, Polk, and Wright for redistribution to various communities, including out of state. On multiple occasions, Franco-Lopez, Castillo, Perez-Martinez, and Casillas-Martinez assisted Romero by traveling to Iowa, Nebraska, and other locations in the Midwest to smuggle drugs from various trainyards for later circulation.
In late October 2022, Drug Enforcement Administration agents learned that the traffickers were traveling to Nebraska to locate a rail car loaded with drugs by the Mexican cartel. Romero directed the entire operation, which was unsuccessful due to interception by DEA agents. The agents seized over 68 kilograms of methamphetamine and over seven kilograms of fentanyl hidden in a top-side void of the rail car that had been wielded shut.
On December 13, 2022, DEA agents arrested Islas-Lozada and Castillo in their Indianapolis home and located nine black PVC pipes and plastic bags filled with 56 kilograms of methamphetamine. The PVC pipes bore the stamp “HECHO EN MEXICO” (“Made in Mexico”). Erick Romero, the ringleader of the operation, was also arrested that day at his home in Indianapolis. Officers located 10.7 kilograms of methamphetamine and thirteen firearms in the home.
Additionally, several members of the trafficking ring used firearms to protect themselves and their profits. In total, law enforcement officers seized 20 firearms from the defendants during court-authorized searches at multiple locations in Indianapolis.
“International cartels have flooded our communities with poisons, using planes, trains, automobiles, and even the U.S. Mail to smuggle fentanyl and meth into our communities right here in Indiana for local distribution,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Every link in this chain fuels the death and misery touching far too many of our families—and must be dismantled. Thanks to the hard work and cooperation of the DEA, US Postal Inspection Service, IRS-CI, and many other federal, state, and local agencies, this significant drug trafficking organization is out of business and its members are off our streets.”
“I am incredibly proud of the outstanding work that was done by the DEA, High Intensity Drug Trafficking Area (HIDTA) Task Force, and the Metropolitan Drug Task Force in this investigation. Additional collaboration with the DEA Special Operations Division assisted agents with the highest levels of investigative techniques allowing agents to fully unravel a sophisticated international drug trafficking organization linked to the Sinaloa Cartel,” said DEA Assistant Special Agent in Charge Michael Gannon. “This operation has had a significant impact on Indianapolis, Indiana, and the broader Midwest region, resulting in the seizure of hundred-pound quantities of methamphetamine kilogram quantities of fentanyl, and the removal of numerous firearms from our streets. These actions are a big win for all Hoosiers. I deeply appreciate the strong partnerships that made this critical investigation possible.”
“Every day, Postal Inspectors work to prevent the mail from being misused by criminals, including large scale Drug Trafficking Organizations,” said USPIS Inspector in Charge Rodney Hopkins. I want to acknowledge the contributions of the officers and agents with our partner agencies, whose relentless efforts not only help us protect the mail, but also our communities from the dangers of these organizations. I also want to thank the Assistant United States Attorneys who supported this investigation.”
The Drug Enforcement Administration, United States Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation Division investigated this case. The Indianapolis Metropolitan Police Department, Lawrence Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The sentences were imposed by Chief U.S. District Judge Tanya Walton Pratt.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Jayson W. McGrath and Lindsay Karwoski, who prosecuted this case.
This case was part of the Indiana High Intensity Drug Trafficking Areas (HIDTA) Program and an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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El Salvador Man Sentenced for Illegal Reentry into U.S.Read the Press Release
PITTSBURGH, Pa. - A resident of El Salvador pleaded guilty in federal court to a charge of illegal reentry of a removed alien and was sentenced to time served, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Jose Humberto Diaz-Tobar, 41.
According to information presented to the Court, on February 1, 2024, the Allegheny County Police Department encountered Diaz-Tobar following a traffic accident. Law enforcement determined that Diaz-Tobar was unlawfully present in the United States after being previously removed from the country in October 2012, when he admitted to immigration officials that he crossed the Rio Grande River near Hidalgo, Texas, and was not inspected by an immigration officer. Diaz-Tobar was taken into custody by immigration authorities for his latest offense on July 24, 2024, and was in federal custody for nearly six months prior to his sentencing.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Olshan commended U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations for the investigation leading to the successful prosecution of Diaz-Tobar.
Duval County resident imprisoned for sexual exploitation of a childRead the Press Release
CORPUS CHRISTI, Texas – A 32-year-old Duval County resident has been ordered to serve 30 years in prison after admitting to abusing a child, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Luis Saenz Jr. pleaded guilty Sept. 26, 2024.
U.S. District Judge Nelva Gonzales Ramos has now ordered Saenz to serve 360 months in federal prison. At the hearing, the court also heard additional information including testimony from the mother of the victim detailing the profound impact Saenz’ conduct has had on the family. In handing down the prison terms, the court noted the egregiousness of the offense and the age of the victim. Saenz was further ordered to pay $15,000 in restitution to a known victim and will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Saenz will also be ordered to register as a sex offender.
The investigation into Saenz began when authorities discovered he was participating in chat rooms involving discussions of child sexual assault material (CSAM). During an online conversation, Saenz claimed he had recently sexually abused a child. On Aug. 28, 2023, Saenz sent a video of himself sexually abusing a young child. Law enforcement quickly acted and arrested him the same day.
After his arrest, Saenz admitted he had produced the video of himself sexually abusing the young child. Saenz was also in possession of a phone. Law enforcement discovered approximately 100 files depicting CSAM on the device.
Saenz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance of the Duval County Sheriff’s Office.
Assistant U.S. Attorney Patrick Overman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Durant Resident Sentenced for Assault with A Dangerous Weapon with Intent to Do Bodily HarmRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hr’Lee Wayde Hisaw, age 23, of Durant, Oklahoma, was sentenced to 21 months in prison for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm, in Indian country.
The charge arose from an investigation by the Ada Police Department, the Bureau of Indian Affairs, and the Federal Bureau of Investigation.
On September 26, 2024, Hisaw pleaded guilty to the charge. According to investigators, on February 18, 2024, Hisaw fired a semiautomatic handgun at the victim’s vehicle as it drove away from a residence. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. Chief District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Hisaw will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Jonathan E. Soverly represented the United States.
Drug Dealer Sentenced to 151 Months in Federal PrisonRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on January 13, 2025, defendant Joselito Lumanlam Cura, age 58, was sentenced in the U.S. District Court of Guam to 151 months imprisonment. A jury previously found him guilty of three counts of Distribution of Methamphetamine Hydrochloride and one count of Possession with Intent to Distribute Methamphetamine Hydrocholoride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered five years of supervised release and a mandatory $400 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
Between July 27, 2021, to September 7, 2021, Cura delivered 355 grams of methamphetamine over the course of three controlled purchases by a government informant. The drugs had an average purity of 97 percent and a street value of $44,375 to $62,125. On October 12, 2021, law enforcement executed a search warrant at Cura’s residence, where they found $22,051 in currency, digital scales, a money counter, firearms, and other drug paraphernalia.
“Drugs and firearms are a dangerous combination,” stated United States Attorney Anderson. “Armed drug dealers will always attract the attention federal law enforcement. Combatting this activity remains a high priority for our office. I applaud the work of our federal and local partners in holding Cura accountable.”
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Guam Police Department conducted this investigation.
Assistant United States Attorney Stephen F. Leon Guerrero prosecuted the case in the District of Guam.
Doctor Sentenced for $70M Medicare Fraud SchemeRead the Press Release
A Texas doctor was sentenced today to 10 years in prison and ordered to pay $26,622,522.82 in restitution for his role in a scheme to defraud Medicare by prescribing durable medical equipment and cancer genetic testing without seeing, speaking to, or otherwise treating patients.
According to court documents and evidence presented at trial, David M. Young M.D., 61, of Fredericksburg, signed thousands of medical records and prescriptions for orthotic braces and genetic tests that falsely represented that the braces and tests were medically necessary and that he diagnosed the beneficiaries, had a plan of care for them, and recommended that they receive certain additional treatment. Young prescribed braces and genetic tests for over 13,000 Medicare beneficiaries, including undercover agents posing as different Medicare beneficiaries, many of whom he did not see, speak to, or otherwise treat. Young’s false prescriptions were then used by brace supply companies and laboratories to bill Medicare more than $70 million. Young was paid approximately $475,000 in exchange for signing the fraudulent prescriptions.
In May 2024, a jury convicted Young of one count of conspiracy to commit health care fraud and three counts of false statements relating to health care matters.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; and Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
HHS-OIG and MFCU investigated the case.
Assistant Chief Brynn Schiess and Trial Attorney Ethan Womble of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Denver Man Convicted on Five Counts Related to Denver Bank RobberiesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Flozell Beasley, 72, of Denver, was convicted by a federal jury on four counts of bank robbery and one count of robbery affecting interstate commerce.
According to the facts established at trial, Beasley robbed two banks, two credit unions, and a taco shop in Denver, between May and July 2023. In each robbery, the defendant dressed like a construction worker and threatened employees with a high-quality replica gun before taking their money and fleeing. On July 11, 2023, the defendant robbed the Vectra Bank at 1001 E 17th Street and left with a GPS tracker inside the money stolen from the bank. He then boarded a nearby RTD bus and was arrested twelve minutes later sitting on the bus with the tracker, stolen money, replica gun, construction vest, and construction helmet in a bag at his feet.
“Our office remains focused on stopping brazen, serial bank robbers who victimize bank employees,” said United States Attorney Matt Kirsch. “
“This individual is a previously convicted felon who was released from prison and returned to robbing banks -- and a restaurant when his chosen bank was closed,” said FBI Denver Special Agent in Charge Mark Michalek. “This is the kind of defendant that gets the attention of the FBI Denver Rocky Mountain Safe Streets Task Force, and with help from partners like the Denver Police Department and the Regional Transportation District, we tracked him down and ended his criminal activity in the community. “
United States District Court Judge Regina M. Rodriguez presided over the trial.
The FBI Denver Field Office handled the investigation. Assistant United States Attorneys Brian Dunn and Garreth Winstead handled the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 23-cr-342-RMR
Connecticut Man Sentenced to Prison for Fraud and Money LaunderingRead the Press Release
BOSTON – A Thomaston, Conn. man was sentenced yesterday in federal court in Springfield in connection with a scheme to obtain bank loans and money for projects in Saudi Arabia.
Hanibal Tayeh, 63, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison, to be followed by five years of supervised release. In August 2024, Tayeh pleaded guilty to a superseding indictment with two counts of bank fraud, four counts of wire fraud, three counts of money laundering and one count of making a false bankruptcy declaration. Tayeh was originally charged and arrested in July 2018.
In 2013 and 2014, Tayeh used fake documents and misrepresentations to obtain a $9.1 million loan package and later a $400,000 extension of credit from a bank. A number of the fake documents and misrepresentations pertained to a business venture Tayeh claimed to be pursuing in Saudi Arabia. Further, he financially defrauded an individual by making misrepresentations related to construction projects he claimed to be pursuing in Saudi Arabia. Tayeh then laundered the proceeds of his fraud schemes through payments made to third parties for his personal obligations. Additionally, Tayeh made a false statement during a bankruptcy proceeding when he denied knowledge of a fake letter of credit that he created.United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Christopher L. Morgan of the Springfield Branch Office prosecuted the case.
Connecticut Man Sentenced to Nine Years on Methamphetamine ConvictionRead the Press Release
UTICA, NEW YORK – Joseph Lastrina, age 39, of Norwalk, Connecticut, was sentenced today to 108 months in prison for conspiring to distribute methamphetamine. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Lastrina admitted to directing both Robert Sanger and Thaddeus Price to complete drug deals that Lastrina arranged. Those November 2023 transactions collectively involved 177 grams of pure methamphetamine. A search warrant executed at Sanger’s home led to the recovery of an additional 217 grams of pure methamphetamine.
Senior United States District Judge David N. Hurd also imposed a 3-year-term of supervised release and a $30,000. Judge Hurd previously sentenced Sanger to 16 months in prison and 5 years of supervised release. Price will be sentenced on March 19, 2025.
The DEA investigated this case, which Assistant U.S. Attorneys Jonathan S. Reiner and Ashlyn Miranda are prosecuting.
Colorado man sentenced to 10 years in federal prison for attempting to entice a minor to engage in illegal sexual activityRead the Press Release
Gabriel Estrada, 30, of Denver, Colorado, was sentenced to 120 months, with five years of supervised release to follow, for attempting to entice a minor to engage in illegal sexual activity. U.S. District Court Judge Alan B. Johnson imposed the sentence in Cheyenne on Jan. 13.
A federal jury convicted Estrada on Oct. 25, 2024. According to trial evidence and court documents, Estrada used a chat website to meet up with a 13-year-old persona for sexual intercourse. An undercover agent posed as a 13-year-old female living in Laramie, Wyoming. Estrada messaged the 13-year-old persona asking if she would have sex with him. He went on to ask the 13-year-old persona if she had a friend who would like to join them in the sexual encounter and asked about her sexual experience. Estrada then drove the two hours from his home to Laramie after confirming the person he believed to be a 13-year-old girl would engage in sexual acts with him. Estrada arrived in Laramie and was arrested by police officers, who seized Estrada’s iPhone containing text messages to the 13-year-old persona. Estrada also had two condoms.
“The Internet can be a dangerous place for our children because of people like this defendant, a fully grown man who wanted to have sex with a 13-year-old girl and did everything he could to make that happen,” said United States Attorney Eric Heimann. “The United States Attorney’s Office will continue to support proactive law enforcement actions aimed at identifying and arresting individuals who are ready, willing, and eager to sexually abuse children.”
The Laramie Police Department and the FBI investigated the crime and Assistant U.S. Attorney Z. Seth Griswold prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Case No. CR-24-00033
Coeur d’Alene Man Sentenced for Multimillion Dollar Accounts Receivable Factoring SchemeRead the Press Release
COEUR D’ALENE – Douglas Worman, 64, of Coeur d’Alene was sentenced to 46 months in federal prison for his convictions for engaging in a scheme to defraud J.S. Richards Forestry Management out of more than $2.5 million, U.S. Attorney Josh Hurwit announced today. A federal jury convicted Worman of 17 counts of wire fraud relating to his factoring scheme after a six-day trial in August 2024.
According to court records and evidence presented at trial, Worman owned and operated Worman Forest Management, a Coeur d’Alene-area forestry management company. In 2010, Worman, through his company, entered into a factoring agreement with J.S. Richards Forestry Management to sell millions of dollars of Worman Forest Management’s accounts receivable that were based on invoices for work the business had provided to its customers. Factoring is a form of short-term financing in which a business sells its accounts receivable to a third-party at a discount. In a factoring transaction, the seller of an invoice obtains immediate funding from a buyer, and the buyer of an invoice earns a fee for providing the up-front financing.
According to court records, beginning in at least 2015 and continuing through September 2018, Worman submitted inflated and entirely false and fraudulent invoices to J.S. Richards Forestry Management for factoring, purportedly for work Worman’s business had performed for its customers. Between June and September 2018, Worman submitted more than $2 million in false and fraudulent invoices for factoring to J.S. Richards Forestry Management. Those invoices claimed to be for actual work performed by Worman Forest Management for its customers, but, in reality, the invoices were for amounts that were inflated and entirely fictitious. As a result of Worman’s fraud scheme, Worman fraudulently obtained at least $2.5 million from J.S. Richards Forestry Management.
Chief U.S. District Judge David C. Nye also sentenced Worman to three years of supervised release and ordered that Worman pay restitution in an amount to be determined at a later date.
“This case sends a clear message that, along with our law enforcement partners, we will not tolerate fraud in Idaho’s business community,” said U.S. Attorney Hurwit. “I am grateful for the FBI’s painstaking investigation of the defendant’s fraud and the tenacious work of our office’s prosecutors to marshal the evidence for the jury.”
“Douglas Worman is being held accountable for exploiting the trust of his victims,” said Acting Special Agent in Charge Albert Kelly of the Salt Lake City FBI. “The FBI is committed to protecting Idahoans by investigating and arresting those who seek to defraud others. We also encourage the public to report potential fraud to the FBI.”
U.S. Attorney Hurwit commended the investigation by the Federal Bureau of Investigation, which led to the charges. Assistant U.S. Attorneys Brittney Campbell and Sean Mazorol prosecuted this case.
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Choppa City Member Sentenced to 18 Years for His Role in Three Brinks Armored Car RobberiesRead the Press Release
WASHINGTON –Erin Sheffey, 30, of Washington D.C., was sentenced today to 18 years in prison for his involvement in a series of armed robberies of Brinks armored cars in Washington, D.C. that resulted in the loss of more than $1.2 million. The sentence was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Sean Ryan of the Washington Field Office’s Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Sheffey was found guilty by a jury on September 9, 2024, of conspiracy to interfere with interstate commerce by robbery. The jury also convicted co-defendants Brock and McNair of interference with interstate commerce by robbery (Hobbs Act Robbery), bank robbery, and brandishing a firearm during a crime of violence. In addition to the 18-year prison sentence, U.S. District Court Judge Royce Lamberth ordered Sheffey to serve three years of supervised release.
The offenses related to three robberies of Brinks armored trucks that occurred on October 6, 2021, December 8, 2021, and March 2, 2022. In those robberies, the defendants used firearms to assault the drivers of Brinks armored cars and steal money. In total, the defendants stole over $1.2 million.
According to court documents and the evidence at trial, the three defendants were members of the Choppa City street crew. Brock, McNair, and Sheffey conspired together and with others to plan and carry out the robberies, brandishing firearms on D.C. city streets while doing so. Each robbery occurred on a Wednesday at about 9 a.m. in the morning and two occurred on busy city throughfares, causing a significant risk to the public. Testimony in the case revealed the conspirators used assault rifles to carry out their robberies.
Co-defendant Brock planned the robberies for months, learning the routes and arrival times of the Brinks drivers, in order to ensure the robbery team was in place. When the Brinks driver exited his armored car vehicle to deliver money to a bank or local business, the robbers ambushed him. In two cases, the defendants assaulted one of the Brink’s drivers, even after he turned over his courier bag.
Some of the defendants used social media to show off large sums of money they stole during the robberies and photographed themselves making high-end luxury purchases. For example, within two days of the robberies, defendant Brock purchased vehicles in cash totalling over $36,000.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Police Department. It was prosecuted by Assistant U.S. Attorney Cameron Tepfer and Special Assistant U.S. Attorney Alex Schneider. Valuable assistance was provided by AUSAs Josh Gold, Meredith Mayer-Dempsey, and Thomas Strong.
An AR-15 Weapon Used by the Defendants During the Armed Robberies
Defendant Brock (Right) and Defendant McNair (Left) robbing a Brinks armored car employee weapon with a firearm on December 8, 2021. Both Brock and McNair assaulted the driver by beating him with their pistols even after he turned over the delivery bag.
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Choctaw County Resident Pleads Guilty to Distributing MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Karen Sue Freeman, age 64, of Grant, Oklahoma, entered a guilty plea to one count of Distribution of Methamphetamine.
The Indictment alleged that on March 13, 2024, Freeman knowingly and intentionally distributed 5 grams or more of methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Drug Enforcement Administration, the Hugo Police Department, and the Durant Police Department.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Freeman will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Rachel Geizura represented the United States.
Chicago Man Sentenced to 108 Months in PrisonRead the Press Release
HAMMOND- Clinton Williams, 48 years old, of Chicago, Illinois was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 108 months in prison followed by 4 years of supervised release.
According to documents in the case, between August 2021 and June 2022, Williams was involved in a conspiracy to distribute heroin laced with fentanyl. As part of that conspiracy, Williams was personally involved in five controlled buys of the substance.
This case was investigated by the Federal Bureau of Investigation Gang Response Investigative Team. This case was prosecuted by Assistant United States Attorney Michael J. Toth and Special Assistant United States Attorney Patrick D. Grindlay.
Charlotte Man Is Sentenced to Prison for Transporting Child Sexual Abuse MaterialRead the Press Release
CHARLOTTE, N.C. – David Williams, 45, of Charlotte, was sentenced today to 140 months in prison followed by a lifetime of supervised release for transporting of child sexual abuse material (CSAM), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Williams was also ordered to register as a sex offender after he is released from prison.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.
“Williams possessed thousands of images and videos depicting the sexual abuse of children, yet his criminal conduct did not end there,” said U.S. Attorney King. “Williams produced a surreptitious recording of a prepubescent minor using the bathroom, and also used AI technology to modify and alter images of children he found on the internet to generate child sexual abuse material. This type of misuse of technology, and specifically generative AI, is at the forefront of our efforts to protect our children from this emerging threat and secure proper punishment for perpetrators.”
According to filed court documents and today’s sentencing hearing, law enforcement received information from the National Center for Missing and Exploited Children (NCMEC) that an individual was using the internet to upload CSAM. Law enforcement identified the individual as Williams. On September 14, 2021, law enforcement conducted an interview of Williams. The defendant denied having any CSAM, at first. He later admitted to having CSAM and turned over some of his electronic devices to law enforcement. A forensic examination of Williams’s devices revealed that the defendant possessed images and videos depicting children being sexually abused and that Williams did not provide all of the relevant electronics.
On September 16, 2021, law enforcement executed a search warrant at Williams’s residence, seizing additional electronics from the defendant. A forensic analysis of those electronics confirmed the presence of CSAM, including images and videos of children as young as toddlers being sexually abused. In total, Williams possessed over 4,000 videos and images of CSAM. Additionally, forensic analysis determined that Williams produced a surreptitious recording of a prepubescent minor using the bathroom.
Forensic analysis further determined that Williams used an online AI chatbot to generate realistic CSAM by morphing or modifying images of clothed minors he found on the internet.
On June 12, 2023, Williams pleaded guilty to transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In announcing Williams’s sentence, U.S. District Judge Max O. Cogburn, Jr., emphasized that “this is a serious crime with serious consequences.”
The FBI and CMPD investigated the case.
Assistant U.S. Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 https://www.justice.gov/psc.
Central Ohio men sentenced to 25 years & 13 years in prison for crimes related to armed robberies, I-70 shootoutRead the Press Release
COLUMBUS, Ohio – Two central Ohio men were sentenced in federal court here today for committing crimes related to the July 6, 2023, shooting of a Columbus police officer. The men participated in a crime spree that involved the armed robberies of five high-end automobile dealerships, banks and gaming stores in and around Columbus and ended in a shootout with police officers on I-70.
Faisal M. Darod, 25, of Columbus, was sentenced to 300 months in prison. Aden Abdullahi Jama, 21, of Reynoldsburg, was sentenced to 156 months in prison.
“Violent crimes like these reverberate throughout the community. The victims of the armed robberies remain traumatized from being held at gunpoint and having their lives threatened. One accomplice is dead. And, though he survived this tragedy, one Columbus police officer was shot a number of times and was gravely injured,” said U.S. Attorney Kenneth L. Parker. “Put simply, gun violence is never worth the resulting costs, including spending significant time in federal prison.”
“The gun violence committed by these defendants altered the lives of many victims, especially the hero Columbus Division of Police Officer who was wounded during the harrowing gun battle that ensued when Columbus Police bravely confronted the defendants,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “Thanks to the valiant action of Columbus and Whitehall Police, the violent crime spree of the defendants was stopped. ATF is proud to have led the investigation in collaboration with our federal, state, and local partners to ensure justice for all the victims and accountability for the defendants.”
Columbus Police Chief Elaine R. Bryant stated: “This case serves as a solemn reminder of the dangers brave officers of the Division face every day in the line of duty. I extend my appreciation to those in the U.S. Attorney’s office who worked to ensure that justice prevailed, holding the responsible individuals accountable.”
In spring 2023, Darod began making concerted efforts to obtain a firearm for a third man involved in the crimes. By June of 2023, Darod and the man began using a Glock handgun with extended magazine to commit a host of armed robberies.
According to court documents, on June 21, 2023, Darod aided in the robbery of a GameStop store on Hilliard-Rome Road in Hilliard. Darod and the other man initially planned to rob a bank that day, but mistakenly thought the bank would be open until 6pm. When they realized the bank was closed, they shifted focus to the GameStop instead, and, at approximately 6:15pm, robbed the store at gunpoint using the handgun with an extended magazine. Darod served as a lookout during the robbery.
On July 3, 2023, Darod drove the other man to the Auto Gallery on Westerville Road in Minerva Park, where the man robbed the car dealership owner at gunpoint. The man stole a 2016 Corvette Stingray. Over the next two days, Darod had others record several videos of him driving the Corvette around the parking lot of the Baymont Inn and Suites at Morse Road, where he had rented a room.
On July 5, 2023, Darod arranged for Jama to pick up him and another individual after they robbed at gunpoint the Fifth Third Bank on Fishinger Road in Upper Arlington. Following the bank robbery, Darod texted Jama and instructed him to meet up with them on West Sixth Avenue in Columbus and drive them to the Baymont Inn and Suites.
While at the hotel, Darod and Jama recorded a video on Darod’s cell phone showing Darod lying on the bed surrounded by the recently stolen cash. In the video, Darod raps about “cheese” – i.e., money, being in the air and everywhere.
The next day, on July 6, 2023, Darod aided and abetted an armed robbery at Byers Imports in Whitehall. He and Jama drove the third man to the car dealership to commit the robbery.
Shortly after the robbery, Darod and Jama met up with the other man at townhomes on the southeast side of Columbus. The three men then drove the stolen Porsche Cayenne, sometimes exceeding 100 miles per hour, to Hilliard to commit another armed bank robbery.
Darod and Jama again served as the lookout and aided and abetted the armed robbery and the use of a firearm during that robbery at Fifth Third Bank on Hilliard-Rome Road in Hilliard.
Unbeknownst to the three men, Whitehall police detectives had been tracking their movements using the Porsche Cayenne’s onboard GPS system. The detectives surrounded the stolen car at Fifth Third Bank and ordered the men to stop the vehicle. The other man drove the stolen Porsche through a gap in the detectives’ cars and fled over a grass embankment onto Hilliard-Rome Road, and, eventually, out to Roberts Road and the freeway.
Columbus police officers then located the stolen vehicle on I-70 traveling eastbound. The men reached speeds more than 125 miles per hour near rush hour while attempting to flee law enforcement.
The vehicle became damaged and came to an abrupt stop before Darod and Jama both fled on foot. The third man used the handgun with an extended magazine to ambush the responding officers. He opened fire from close range and struck one officer. That officer suffered life-threatening injuries. The driver of the stolen vehicle was struck several times and died of his gunshot wounds soon after.
Following the gun battle on I-70, a coordinated manhunt ensued for Jama and Darod. Darod was arrested in Columbus on the evening of July 7, 2023. By then, he had conducted several internet searches for flights out of Columbus to Somalia. U.S. Marshals and Homeland Security Investigation agents arrested Jama at Chicago O’Hare International Airport on July 8, 2023, bound for Turkey, with an ultimate destination of Somalia.
Both Darod and Jama pleaded guilty in October 2023. Darod pleaded guilty to all nine counts charged against him in a superseding indictment that was returned in September 2023. The crimes include aiding and abetting robberies and aiding and abetting the use of a firearm during the robberies. Jama pleaded guilty to being an accessory after the fact to bank robbery, two counts of aiding and abetting robberies and two counts of aiding and abetting the use of a firearm during the robberies.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; the Whitehall, Minerva Park and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the sentences imposed today by Chief U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton and Special Assistant United States Attorney David J. Bosley are representing the United States in this case.
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Burnsville Woman Pleads Guilty to Straw Purchasing Firearms Used in Fatal Shooting of First RespondersRead the Press Release
ST. PAUL, Minn. – A Burnsville woman has pleaded guilty to straw purchasing multiple firearms for a felon, two of which were used to fatally shoot police officers Paul Elmstrand and Matthew Ruge, and firefighter paramedic Adam Finseth in Burnsville on February 18, 2024, announced U.S. Attorney Andrew M. Luger.
According to court documents, between September of 2023 and January of 2024, the defendant purchased five different firearms from two different federal firearms licensees that the defendant knowingly transferred to her domestic partner, Shannon Cortez Gooden. Under Gooden’s direction, Dyrdahl purchased the firearms and transferred them to Gooden, despite knowing that Gooden was a felon and was therefore legally prohibited from obtaining or possessing firearms.
Among the firearms Dyrdahl bought for Gooden were three semiautomatic AR-15–style firearm lower-receivers. One of these was a Franklin Armory FAI-15 .300 caliber semiautomatic firearm that was equipped with a binary trigger. A firearm with a binary trigger fires one shot when the trigger is pulled and another when the trigger is released, effectively doubling the rate of fire. Dyrdahl also purchased a .300 caliber barrel for the lower receiver. Dyrdahl knew that Gooden was loading the semiautomatic AR-15–style firearms with .300 Blackout ammunition, which is a heavier load ammunition that has an increased potential for lethality.
On February 18, 2024, Gooden used two firearms that Dyrdahl purchased for him to ambush police officers and firefighter paramedics who were responding to a call for help in his home. Gooden used a large-capacity magazine in the attack. The attack killed two police officers and a firefighter paramedic and injured a third police officer.
Dyrdahl pleaded guilty yesterday in U.S. District Court to two counts of straw purchasing in front of U.S. District Judge Jerry W. Blackwell. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Burnsville Police Department, with assistance from the Dakota County Attorney’s Office and the Burnsville Fire Department.
Assistant U.S. Attorneys Kristian Weir and Thomas Calhoun-Lopez are prosecuting the case.
Browning man sentenced to 13 years in prison for sexually abusing child, sending obscene material to minorsRead the Press Release
GREAT FALLS — A federal judge today sentenced a Browning man to 13 years in prison, to be followed by a lifetime of supervised release, for sexually abusing a child on the Blackfeet Indian Reservation and for sending sexually explicit photographs of himself to minors, U.S. Attorney Jesse Laslovich said.
The defendant, Treston Lane Kickingwoman, 29, pleaded guilty in September 2024 to one count of abusive sexual contact and two counts of transfer of obscene material to a minor.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in 2022, the victim, Jane Doe 1, disclosed to law enforcement that when she was about six years old, in 2014 or 2015, Kickingwoman sexually abused her one time. While staying at a house in Browning, Kickingwoman laid down on the bed by her and sexually abused her. Kickingwoman stopped when another person started moving in the room.
Nearly a decade later, in March 2024, an FBI online covert employee with a fictitious persona as a juvenile began communicating on Facebook with Kickingwoman. Kickingwoman sent the persona explicit pictures and videos of his genitalia and solicited sexually explicit pictures from her. During a search of Kickingwoman’s Facebook account, law enforcement discovered that Kickingwoman had sent pictures of his nude genitalia to dozens of separate Facebook accounts. Investigators identified two Facebook accounts for juvenile girls, Jane Doe 2 and Jane Doe 3, who were living on the Blackfeet Reservation. Law enforcement interviewed both girls, who confirmed that they had messaged with Kickingwoman on Facebook Messenger in the summer of 2023, when they were 12 years old and that they told him they were 13. Kickingwoman sent both girls pictures of his nude genitalia and solicited sexually explicit pictures from them. Jane Doe 2 provided the requested photographs to Kickingwoman through his Facebook account.
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Broker and Three Traders Indicted for Years’ Long Insider Trading SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging broker David Cooper and traders Randy Grewal, John Lowe and Richard Ringel with conspiracy to commit securities fraud and securities fraud for their involvement in an insider trading scheme. Cooper was arrested today in Westchester and will be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo. Grewal was arrested in Anthem, Arizona and Lowe and Ringel were arrested in Stewart and Boca Raton, Florida, respectively. They will be arraigned in the Eastern District of New York at a later date.
Judy Philips, Acting Attorney for the United States for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) and Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrests and charges.
“As alleged, the defendants exploited their access to inside information for years to gain an unfair advantage over the investing public for their own personal gain,” stated Acting Attorney for the United States Philips. “The arrests and indictment demonstrate that this Office will protect the integrity of the securities markets and aggressively prosecute those who engage in insider trading.”
Ms. Philips expressed her appreciation to the U.S. Securities and Exchange Commission, New York Regional Office, and the Financial Industry Regulatory Authority for their significant cooperation and assistance during the investigation.
“Those who participate in illicit trading schemes undermine our U.S. Securities and Exchange Commission laws and regulations with selfish ambition,” stated HSI New York Special Agent in Charge Walker. “HSI continues to work side-by-side with our law enforcement partners to ensure fraudsters who manipulate our legal financial systems are identified and prosecuted to the fullest extent.”
“This is a case of pure greed where individuals lied, obtained information illegally, and used it solely for their own personal financial gain. Postal Inspectors, along with our law enforcement partners, will continue to investigate fraud vigilantly and will protect investors from falling victim to predatory behavior,” stated USPIS Acting Inspector in Charge Donahue.
As alleged in the indictment, between approximately January 2018 and May 2024, the defendants conspired to obtain material non-public information (MNPI) about upcoming secondary stock offerings and to trade on that MNPI in advance of those offerings. The defendants illegally obtained MNPI from numerous sources, including through Cooper, who obtained MNPI in his capacity as an employee of a broker-dealer (Broker-Dealer) with investment banks involved in and underwriting the secondary stock offerings. The MNPI included specific deal information such as the identity of the public company issuing the secondary offering; the timing of the deal; the structure of the deal; and the price at which the company would offer its stock in the upcoming offering. Cooper breached his duty of confidentiality to Broker-Dealer and misappropriated the information when he improperly disclosed it to Lowe, Ringel and others with knowledge that they intended to use the information to execute short sales in advance of the public announcement of the secondary offerings. Cooper shared the MNPI to induce Broker-Dealer customers, including Lowe and Ringel, to commit to buy shares in the offerings so that Cooper and Broker-Dealer would receive compensation from the underwriters. Lowe, in turn, passed MNPI to Grewal. Lowe, Ringel and Grewal used MNPI to obtain more than $1 million in illegal profits on their short sales in advance of secondary offerings.
Evidence obtained from judicially authorized wiretaps revealed that in connection with numerous secondary offerings between approximately January 2023 and May 2023, Cooper and a co-conspirator (Co-Conspirator #1) obtained MNPI from investment firms that were underwriting the secondary offerings and provided MNPI to Lowe, Ringel and others, with knowledge that Lowe, Ringel and others intended to trade securities in advance of secondary offerings based on the MNPI. Those secondary offerings included the companies Chicken Soul for the Soul Entertainment, Inc. (NASDAQ: CSSE), Revelation Biosciences, Inc. (NASDAQ: REVB) and Tivic Health Systems, Inc. (NASDAQ: TIVC).
Fraudulent Trading on MNPI in the CSSE Secondary Offering
On or about March 30, 2023, Cooper obtained MNPI about the timing and pricing of the CSSE offering from the sole managing underwriter for the deal and shared that information with Ringel, who traded in CSSE in advance of the offering using the information, and Co-Conspirator #1, who gave the inside information to Lowe. Lowe traded based on the MNPI and tipped Grewal, who also traded using the MNPI.
Fraudulent Trading on MNPI in the REVB Secondary Offering
Between February 6, 2023 and February 8, 2023, Lowe obtained MNPI about the timing of the REVB offering from a representative of the sole underwriter on the deal and passed it to Grewal, who traded in REVB using the information. Between February 7, 2023 and February 9, 2023, Ringel traded REVB based on MNPI that Cooper received from another representative of the sole underwriter on the deal.
Fraudulent Trading on MNPI in the TIVC Secondary Offering
On or about February 6, 2023, Cooper called a representative of the sole managing underwriter for the TIVC offering. The next day, Co-Conspirator #1 communicated to Lowe that TIVC intended to offer shares of its stock in a secondary offering. After learning this information, Lowe traded in TIVC and passed the MNPI he received from Co-Conspirator #1 to Grewal, who then also traded in TIVC. Between February 6, 2023 and February 8, 2023, Ringel and Cooper spoke over the telephone numerous times and Cooper executed a number of short sales in TIVC. In particular, on February 8, 2023 (after Co-Conspirator shared MNPI about the TIVC deal with Lowe), Cooper spoke with Co-Conspirator #1 and then with Ringel. Approximately six minutes after Ringel and Cooper spoke, Ringel executed additional short sales in TIVC.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants face up to 25 years in prison if convicted of the charges.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Jessica K. Weigel, Sophia M. Suarez and Adam R. Toporovsky are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett.
The Defendants:
DAVID COOPER
Age: 38
Larchmont, New YorkRANDY GREWAL
Age: 54
Anthem, ArizonaJOHN LOWE (also known as “Clams”)
Age: 61
Sayville, New YorkRICHARD RINGEL
Age: 54
Boca Raton, FloridaE.D.N.Y. Docket No. 25-CR-10 (DG)
Bollinger Shipyard LLC Agrees to Pay $1,025,000 to Settle False Claims Act Allegations Involving Billing the Coast Guard for Employees Ineligible to Work in the United StatesRead the Press Release
Bollinger Shipyard LLC (Bollinger), a Lockport, Louisiana, based company, has agreed to pay $1,025,000 to resolve allegations that it violated the False Claims Act by knowingly billing the U.S. Coast Guard for labor provided by workers who were not eligible to work in the United States.
Bollinger manufactures ships for the United States, including the Coast Guard’s Fast Response Cutter (FRC). The United States alleged that, from 2015-2020, Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. Specifically, the United States alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. The United States further alleges that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract. Further, the United States alleged that Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
“Companies that conduct business with the United States are required to do so in a legitimate manner,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The favorable resolution of these False Claims Act allegations illustrates the collaboration and commitment by our federal partners to use all available remedies to address signs of fraud, waste and abuse.”
“Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law,” said Inspector General Joseph V. Cuffari Ph.D. of the Department of Homeland Security (DHS). “DHS’ Office of Inspector General (DHS OIG) and our law enforcement partners will continue to prioritize protecting our national security from these kinds of schemes.”
“The Coast Guard Investigative Service (CGIS) is committed to continually working with all our law enforcement partners to protect and secure taxpayer funds and aggressively act to fully investigate allegations of false claims involving the Coast Guard,” said Assistant Director William Hicks of CGIS.
Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the matter.
DHS OIG and CGIS assisted in the investigation.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Bloods Gang Member Sentenced to 23 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Joshua Lampley-Reid, also known as “Tio” and “Fendi,” and a member of the Makk Balla set of the Bloods street gang, was sentenced by United States District Judge Gary R. Brown to 23 years in prison for sex trafficking of minors. Lampley-Reid operated as a “pimp,” using violence and the threat of violence to compel the commission of commercial sex acts for his financial benefit, including by minors as young as 15 years old. Lampley-Reid pleaded guilty to the charge in August 2022.
Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI) and Errol D. Toulon, Jr., Suffolk County Sheriff, announced the sentence.
“The defendant is a ruthless predator who exploited vulnerable minors without families or homes, and sexually trafficked them for his own financial gain,” stated Acting United States Attorney Pokorny. “He is deserving of today’s significant jail sentence for the horrific physical and psychological abuse he inflicted on the victims, which, unfortunately, will continue to affect them for years to come. It is my sincere hope that the justice meted out today will provide some measure of comfort to these young women and help them on their journey to healing.”
“This sentence brings some justice to the minors victimized by this dangerous predator who is now put away from causing any further harm to our community’s most vulnerable members,” stated HSI New York Special Agent in Charge Walker. “Our children deserve to be protected from this violence and shielded from the lifelong trauma that accompanies it. HSI works collectively with our federal, state and local law enforcement partners to bring an end to child exploitation and sex trafficking. Prosecuting those who seek to exploit children for their own self-gratification or greed is one of our top priorities.”
“The sentencing of this dangerous gang member is a clear message that those who prey on the most vulnerable members of our community will be held accountable,” stated Suffolk County Sheriff Toulon. “The Suffolk County Sheriff’s Office is committed to continuing to fight human trafficking and working tirelessly with our federal and local partners to ensure that justice is served and that survivors are supported in their journey toward recovery.”
As set forth in the government’s sentencing memorandum and other court documents, in December 2019, Lampley-Reid began recruiting females, including Jane Doe 1 and Jane Doe 2, to engage in commercial sex acts for his own financial benefit. The defendant used social media and other internet applications to establish relationships with potential victims and groomed them by conveying a romantic interest in them, manipulating them into performing commercial sex acts and then effectively enslaving them through acts of force and coercion. The defendant directed when, where and with whom the commercial sex acts would be performed. The defendant met resistance to his commands, or failure to pay him, with violence or the threat of violence. To maintain control over his victims, the defendant alternately showed affection and acted violently, not only beating and choking his victims, but also withholding food and other basic necessities. This psychological and emotional abuse was depicted in videos recovered from the defendant’s cellular telephone. He tracked his victims’ phones, threatened their families and stalked them after they left him. The defendant used his association with the Makk Balla set of the Bloods street gang to terrorize them. He also engaged in sexual intercourse with his minor victims, which he often video recorded, and managed his prostitution business over the Internet, posting sexually exploitative photos of minor victims that he took or persuaded them to take of themselves in order to further his trafficking business. Although this conduct was concentrated in Nassau County, the defendant also transported certain victims to other states, including Florida, North Carolina and Maryland.
If you are a victim or have information about sex trafficking, call HSI at 1-866-347-2423. To get help from the National Human Trafficking Hotline, call 1-888-373-7888 or text HELP or INFO to BeFree (233733). HSI is ready to work with you in your native language, regardless of your immigration status.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution.
The Defendant:
JOSHUA LAMPLEY-REID (also known as “Tio” and “Fendi”)
Age: 30
West Hempstead, Long IslandE.D.N.Y. Docket No. 21-CR-319 (S-1) (GRB)
Bergen County Man Sentenced to 72 Months in Prison for Possession with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced to 72 months in prison for possession of heroin with intent to distribute, Acting U.S. Attorney Vikas Khanna announced.
Dawan A. Brown, 37, of Cliffside Park, New Jersey, previously pleaded guilty before Judge Brian R. Martinotti to an information charging him with one count of possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin. Judge Martinotti imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
Since at least January 2022, law enforcement had investigated drug trafficking activity in the District of New Jersey, to include in and around Harrison, New Jersey. During the investigation, law enforcement officers learned that Dawan Brown, a/k/a “DB,” distributes narcotics in New Jersey.
Through investigation, law enforcement officers learned that Brown packaged and distributed large amounts of heroin from an apartment in a building located in Harrison, New Jersey. On June 14, 2022, law enforcement officers executed search warrants at the Harrison apartment and at Brown’s residence located in Cliffside Park, New Jersey. From the apartment in Harrison, officers recovered approximately two kilograms of narcotics, suspected to contain amounts of heroin and fentanyl; drug paraphernalia, including a ledger, a safe, scales, a coffee and spice grinder, ink pads, stamps, Ziplock bags, vacuum bags and a vacuum bag sealer machine, razor blades, glassine envelopes and strainers; and approximately $34,000 that was contained within the safe along with some of the suspected heroin and fentanyl. From the residence in Cliffside Park, officers recovered approximately $169,000, five cell phones, safety deposit keys, and various jewelry including diamond necklaces, gold watches, and a gold ring. Law enforcement officers also recovered approximately $225,000 from safety deposit boxes that were associated with Brown.
As part of his plea agreement, Brown agreed to forfeit $436,615.95, the proceeds from the narcotics trafficking.
In addition to the prison term, Judge Martinotti sentenced Brown to four years of supervised release.
Acting U.S. Attorney Khanna credited special agents of the FBI, under the direction of Special Agent in Charge Brian J Driscoll Newark; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; Harrison Police Department, under the direction of Chief David Strumolo; and Cliffside Park Police Department, under the direction of Chief Marc Marano, with the investigation leading to the sentencing. He also thanked the Essex County Sheriff’s Office, the Bloomfield Police Department, the Newark Police Department, Irvington Police Department, Hillsborough Police Department, and the Fort Lee Police Department.
The government is represented by Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Dong Joo Lee of the Cybercrime Unit, in Newark.
Attorney General Merrick B. Garland Announces Gina Allery as Director of the Office of Tribal JusticeRead the Press Release
The Justice Department today announced that Gina Allery has been appointed to serve as the Director of the Office of Tribal Justice (OTJ). Attorney General Merrick B. Garland swore Allery in to the office on Monday afternoon. In this role, Allery will lead OTJ and serve as the principal advisor on Tribal matters to the Attorney General and other Department leaders.
“Gina Allery’s experience and leadership on Indian law and Tribal issues in a variety of roles across the Justice Department will make her an incredible asset to the Office of Tribal Justice,” said Attorney General Garland. “I am confident that Gina will skillfully lead the Department’s efforts to partner with Tribal Nations in the pursuit of justice and safety for Tribal communities. I am grateful that she has agreed to continue her public service in this important role.”
OTJ was initially formed in 1995 in response to requests from Tribal leaders for a dedicated point of contact for Indian country-specific legal and policy matters. The office was made permanent on July 29, 2010, with the passage of the Tribal Law and Order Act.
OTJ is the program and legal policy advisor to the Attorney General on the treaty and trust relationship between the United States and Indian Tribes. The office also serves as a primary point of contact for federally recognized Tribal governments and Tribal organizations on Department policies and programs, as well as issues relating to public safety and justice in Indian country. OTJ also coordinates with other bureaus, agencies, offices, and divisions within the Justice Department on issues and initiatives that affect Tribes and American Indian and Alaska Native people.
Prior to her appointment, Allery served as Deputy Assistant Attorney General for the Tribal Resources and Land Acquisition Sections of the Department’s Environment and Natural Resources Division (ENRD), beginning in 2022. From 2018-2021, Allery served as a Special Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Minnesota where she prosecuted violent crimes in Indian country. Previously, she served for six years as Deputy Director of OTJ, where she worked on a variety of legal and policy issues impacting Indian Tribes. Allery began her career with the Justice Department as an attorney in ENRD, where she litigated cases on behalf of Tribes, including land-into-trust, reservation boundary, treaty rights, and gaming cases. She served for three years as ENRD’s Senior Counsel for Indian Affairs, providing legal advice to the Assistant Attorney General on variety of Indian law issues. She is a recipient of the John Marshall Award, the Department’s highest award for attorneys for contributions and excellence in specialized areas of legal performance. Prior to working at the Justice Department, Allery worked in private practice. Allery earned a bachelor’s degree in biochemistry from the University of Minnesota and a J.D. from Columbia Law School.
Daron Carreiro, who has been serving as the Acting Director of OTJ since March 2024, will return to his role as Section Chief in ENRD’s Tribal Resources Section.
“Daron Carreiro has been an excellent leader and advisor since beginning as Acting Director of OTJ,” said Attorney General Garland. “I thank him for his dedicated public service and for his ongoing contributions to the Department’s work alongside our Tribal partners.”
Armed Henderson Fentanyl Trafficker Sentenced to Nine YearsRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced to 117 months in prison for possessing with the intent to distribute a mixture and substance containing fentanyl and possessing a firearm in furtherance of a drug trafficking crime. On September 23, 2024, Kortez Travon Williams, age 26, pled guilty to the charges.
According to court documents and other information presented in court, law enforcement utilized a confidential informant (CI) to conduct multiple controlled purchases of narcotics from Williams. Two days after selling the CI marijuana, Williams sold the CI approximately 400 dosage units of a substance containing fentanyl. One week later, Williams sold the CI almost 500 dosage units of a substance containing fentanyl. During all three controlled purchases, Williams had a firearm with him and visible. Following the controlled purchases, law enforcement executed a search warrant at Williams’ residence, during which they recovered approximately 7,095 dosage units, a firearm, and $12,736.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the N.C. State Bureau of Investigation, the Henderson Police Department, and the Vance County Sheriff’s Department investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-00063.