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Wednesday 8 January 2025
Canadian National Sentenced to 40 Months in Prison for Multi Million Dollar Export Control SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Nikolay Goltsev was sentenced by United States District Judge LaShann DeArcy Hall to 40 months’ imprisonment for conspiring to commit export control violations. Goltsev, a Canadian national, masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. The electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
Breon Peace, United States Attorney for the Eastern District of New York; Merrick B. Garland, United States Attorney General; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (EEO), announced the sentencing.
“Simply put, Russia cannot effectively manufacture advanced weapons without U.S. technology. Today’s sentence goes a long way in preventing Russia’s access to U.S. electronics for use in the unlawful war against Ukraine,” stated United States Attorney Peace. “My Office is committed to stopping Russia’s illicit acquisition of U.S. technology.”
Mr. Peace also thanked U.S. Customs and Border Protection and the Department of Justice’s Office of International Affairs for their valuable assistance with the investigation.
“Today, Nikolay Goltsev joins the growing list of defendants held accountable for unlawfully procuring and profiting from the sale of U.S. technology to further Russia’s brutal war in Ukraine,” stated Attorney General Garland. “The Justice Department is sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
“Goltsev’s sentence sends a strong message that those who break our laws and contribute to Russia’s brutal war in Ukraine will be held accountable,” stated Assistant Attorney General Olsen of the Justice Department’s National Security Division. “The Department of Justice will vigorously pursue those who procure the component parts that make Russia’s war machine tick. This case demonstrates that these wrongdoers will be found and punished accordingly.”
“Nikolay Goltsev’s sentencing today sends a message to those seeking to bypass export control laws in support of the Kremlin’s inhumane attacks on Ukraine: HSI will do whatever it takes to prevent U.S. military technology from ending up on the Russian battlefield. HSI’s counter-proliferation investigators work tirelessly to combat the illegal export and proliferation of sensitive U.S. military and dual-purpose technology,” stated HSI New York Special Agent in Charge Walker. “Standing alongside our law enforcement partners, we are committing to stopping the Russian war machine in its tracks.”
FBI Assistant Director in Charge Dennehy stated, “Nikolay Goltsev served as a vehicle to reinforce Russia’s militant efforts against Ukraine through the distribution of electronics to sanctioned entities. Goltsev selfishly prioritized profits from this multi-million-dollar scheme at the expense of safeguarding United States technology against adversarial nations. May today’s sentencing reinforce the FBI's commitment to confront foreign countries which steal our technology to advance their nefarious and warmongering goals.”“Working with our law enforcement colleagues, the Office of Export Enforcement will continue to target networks that facilitate illicit shipments that support Russia’s war. Today’s sentencing is just the latest example of our resolute efforts to target, disrupt and dismantle these networks,” stated Department of Commerce EEO Special Agent in Charge Carson.
Goltsev used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out the criminal scheme, Goltsev, along with co-defendant Salimdzhon Nasriddinov and others, purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. The co-conspirators then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia. Goltsev’s wife, co-defendant Kristina Puzyreva, laundered the funds of the export control scheme.
Goltsev’s communications show that he had a sophisticated understanding of export control laws. For example, in a message in February 2023, Goltsev advised another co-defendant to “write something more substantial [to the U.S. company] so that there are no more questions.” The co-defendant responded, “is it better to provide them with a Chinese end user,” to which Goltsev stated, “yes should be ok.”
Goltsev’s communications also show that he knew the electronic components were going to Russia for use in Ukraine and support of Russia. In a May 30, 2023 text message conversation with Puzyreva, the defendants discussed a drone attack in Moscow and their support of Russia:
Puzyreva: what is Putin waiting for. He needs to destroy Ukraine.
Goltsev: yeah they’re gonna get f---ed either way.
Puzyreva: He needs to put fear into them. Those losers.
Goltsev: Well the way he is acting they have the right to do the same.
Puzyreva: I hate [ethnic slur for Ukrainians] anyway.
The scheme involved millions of dollars and proved to be lucrative for the defendants. In a text message exchange on or about January 13, 2023, Goltsev complained to Puzyreva that a subordinate of a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.”
The government seized $20,000 in cash from the New York hotel room in which Goltsev was arrested. In total, the government has seized approximately $1.68 million in connection with this export scheme.
On July 24, 2024, co-defendant Kristina Puzyreva was sentenced to 24 months’ imprisonment for conspiracy to launder the proceeds of the export scheme. Co-defendant Salimdzhon Nasriddinov is awaiting sentencing.
The case was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Ellen H. Sise are in charge of the prosecution, along with Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of Paralegal Specialist Mary Clare McMahon. Assistant United States Attorney Laura Mantell of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
NIKOLAY GOLTSEV
AGE: 38
Montreal, CanadaDefendants Previously Sentenced:
SALIMDZHON NASRIDDINOV
AGE: 54
Brooklyn, NYKRISTINA PUZYREVA
AGE: 33
Montreal, CanadaE.D.N.Y. Docket No. 23-CR-452 (LDH)
Canadian National Sentenced to 40 Months for Multimillion-Dollar Export Control SchemeRead the Press Release
Nikolay Goltsev, 38, of Montreal, Canada, was sentenced today to 40 months in prison for conspiring to commit export control violations. Goltsev masterminded a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by Goltsev were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.
“Today, Nikolay Goltsev joins the growing list of defendants held accountable for unlawfully procuring and profiting from the sale of U.S. technology to further Russia’s brutal war in Ukraine,” said Attorney General Merrick B. Garland. “The Justice Department is sparing no effort to ensure that those who violate America’s export controls to feed Russia’s war machine answer for their crimes in American courtrooms.”
“When Russia, its supporters, and its military companies lie and scheme their way around sanctions, they do not just violate the law – they endanger our Ukrainian allies and the freedoms they are fighting to protect,” said Secretary of Homeland Security Alejandro N. Mayorkas. “We cannot allow crimes like those committed by Mr. Goltsev to be ignored; to do so would only increase the risk they will be repeated. I commend the extraordinary Special Agents of Homeland Security Investigations who, alongside their federal and international law enforcement partners, are working diligently and bravely to support the people of Ukraine and hold accountable the perpetrators of Russia’s unlawful, unjust, and unprovoked war of aggression.”
“Today’s sentencing brings accountability to Nikolay Goltsev for his conspiracy to ship millions of dollars of electronics to Russia in support of its unprovoked invasion of Ukraine,” said FBI Director Christopher Wray. “Goltsev and his co-conspirators circumvented U.S. export control laws, used intermediary front companies to hide their crimes, and sold sophisticated electronics to Russia for use in its weapons platforms and signals intelligence equipment. The FBI is committed to working with our partners to investigate, disrupt, and hold accountable those who violate U.S. laws and provide aid to our adversaries.”
“Goltsev’s sentence sends a strong message that those who break our laws and contribute to Russia’s brutal war in Ukraine will be held accountable,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice will vigorously pursue those who procure the component parts that make Russia’s war machine tick. This case demonstrates that these wrongdoers will be found and punished accordingly.”
“Goltsev and his wife thought they would ‘get rich’ by running an illicit global procurement scheme to supply sanctioned end users in Russia,” said Acting Assistant Secretary for Export Enforcement Kevin J. Kurland of the Department of Commerce. “Instead, they got jail time.”
“Simply put, Russia cannot effectively manufacture advanced weapons without U.S. technology,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence goes a long way in preventing Russia’s access to U.S. electronics for use in the unlawful war against Ukraine. Today’s sentencing makes clear that the United States Attorney’s Office is committed to stopping Russia’s illicit acquisition of U.S. technology.”
Goltsev used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.
To carry out the defendants’ criminal scheme, Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. The co-conspirators then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China and the United Arab Emirates, where they were rerouted to Russia.
Goltsev’s communications show that he had a sophisticated understanding of export control laws. For example, in a message in February 2023, Goltsev advised another co-defendant to “write something more substantial [to the U.S. company] so that there are no more questions.” The co-defendant responded, “is it better to provide them with a Chinese end user,” to which Goltsev stated, “yes should be ok.”
Goltsev’s communications also show that he knew the electronic components were going to Russia for use in Ukraine and support of Russia. In a May 30, 2023 text message conversation between co-defendant Kristina Puzyreva, Goltsev’s wife, the defendants discussed a drone attack in Moscow and their support of Russia:
Puzyreva: what is Putin waiting for. He needs to destroy Ukraine.
Goltsev: yeah they’re gonna get f---ed either way.
Puzyreva: He needs to put fear into them. Those losers.
Goltsev: Well the way he is acting they have the right to do the same.
Puzyreva: I hate [ethnic slur for Ukrainians] anyway.
The scheme involved millions of dollars and proved to be lucrative for the defendants. In a text message exchange on or about Jan. 13, 2023, Goltsev complained to Puzyreva that a subordinate of a co-conspirator “asked me to make 80 accounts . . . I am making accounts for 3 mln [i.e., million]. Fingers hurting already from the laptop.” Puzyreva responded, “Lot of money? We will get rich.”
The government seized $20,000 in cash from the New York hotel room in which defendant Goltsev was arrested. In total, the government has seized approximately $1.68 million in connection with this export scheme.
On July 24, co-defendant Kristina Puzyreva was sentenced to 24 months in prison for conspiracy to launder the proceeds of the export scheme. Co-defendant Salimdzhon Nasriddinov is awaiting sentencing.
The BIS, HSI, and FBI are investigating the case. U.S. Customs and Border Protection and Justice Department’s Office of International Affairs provided valuable assistance to the investigation.
Assistant U.S. Attorneys Artie McConnell, Ellen H. Sise, and Laura Mantell for the Eastern District of New York and Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The case was coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Task Force KleptoCapture is an an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
California Man Admits Role in $10 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A California man today admitted his role in a kickback scheme that caused more than $10 million in losses to Medicare, Attorney for the United States Vikas Khanna announced.
Adam Wayne Owens, 44, of Riverside, California, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark to one count of a superseding indictment charging him with conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
From November 2018 to January 2020, Owens participated in a kickback and bribery scheme with testing companies that arranged for at-home cancer genetic tests (CGX). Owens owned and controlled marketing companies in California through which he and his conspirators identified Medicare beneficiaries to target for CGX testing. Owens and his conspirators provided personal and medical information about the Medicare beneficiaries to the testing companies, which caused CGX testing kits to be sent to the beneficiaries. Once the CGX tests were completed and returned, Owens’ conspirators submitted claims for reimbursement to Medicare. Owens’ companies received kickback payments ranging from $1,700 to $2,000 for each CGX test resulting in Medicare reimbursement.
To conceal the scheme, the testing companies wired various kickback payments to a company in New Zealand, which then wired the payments to bank accounts controlled by Owens in the United States. To further conceal the scheme, Owens entered into a sham contract with the New Zealand company which made it appear that one of Owens’ marketing companies was engaged in and being paid for legitimate marketing and referral services by the New Zealand company. Owens then generated invoices falsely purporting that the marketing company was providing hourly referral services for the New Zealand company. Instead, Owens received payments from the New Zealand company based solely on the number of CGX tests that Medicare reimbursed.
As a result of the kickback scheme, Owens and his conspirators caused a loss to Medicare of more than $10 million.
Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge Brian Driscoll; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Garrett J. Schuman and Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.
owens.supindictment.pdf
Businessman Sentenced for Theft of Pandemic Relief FundsRead the Press Release
BOSTON – A Massachusetts businessman was sentenced today for misappropriating COVID-19 relief funds for personal use.
Jesse Lelievre, 42, of North Andover, was sentenced by U.S. District Court Judge Denise J. Casper to two years of supervised release, with the first five months as home detention. Lelievre was also ordered to pay $179,090 in restitution. In September 2024, Lelievre pleaded guilty to theft of government property. Lelievre was charged in July 2024.
Lelievre was the owner and manager of Paramount Plumbing & Heating LLC, a Massachusetts company that provided plumbing, heating, and related services (“Paramount”). In 2021, Lelievre applied for a loan from the U.S. Small Business Administration (“SBA”) on behalf of Paramount. Lelievre obtained the loan through the SBA’s Economic Injury Disaster Loan (“EIDL”) program, which provided loans to small businesses that suffered substantial economic injury due to the COVID-19 pandemic. To obtain the loan, Lelievre entered into a loan agreement with the SBA in which he agreed, among other things, to use all loan proceeds solely as working capital for his business. Thereafter, Lelievre directed the EIDL funds into a bank account that he controlled and misappropriated approximately $179,000 for personal expenses, including to buy a diamond ring and to remodel his home.
United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General made the announcement. Substantial assistance was provided by the U.S. Small Business Administration, Office of Inspector General, Boston Region. Assistant U.S. Attorneys Christopher J. Markham and Kriss Basil of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Boise Woman Pleads Guilty to Selling a Man Fentanyl Pills That Caused His DeathRead the Press Release
BOISE – Jerilyn Martel Hupp, 33, of Boise, pleaded guilty to distribution of fentanyl in a case involving a fatality, U.S. Attorney Josh Hurwit announced today. Hupp sold ten fentanyl pills to a man she met online, who subsequently died after ingesting half of a pill containing illicit fentanyl.
According to court records, on August 18, 2023, the victim met Hupp at a hotel and purchased ten fentanyl pills from her. He then went back to his home, ingested half of a fentanyl pill, and died almost immediately. Coroner and pathologist reports showed a blood concentration level of 9.4 ng/ml of fentanyl and concluded the cause of death was fentanyl overdose. In fatalities from fentanyl, blood concentrations are variable and have been reported as low as 3 ng/ml.
Senior U.S. District Judge B. Lynn Winmill will sentence Hupp on April 2, 2025. The charge in this case is punishable by up to 20 years in federal prison, a maximum fine of $1,000,000, and a minimum of 3 years and up to lifetime of supervised release.
U.S. Attorney Hurwit commended the investigations by the Nampa Police Department, the Drug Enforcement Administration, the Boise Police Department, and the Meridian Police Department, which led to the charges. Assistant U.S Attorney David Morse is prosecuting this case.
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Boerne CEO Sentenced to Three Years in Federal Prison for Tax Evasion and Embezzlement of Employee Health Care PremiumsRead the Press Release
SAN ANTONIO – A Boerne woman was sentenced in a federal court in San Antonio to 36 months in prison for embezzling employee health insurance premiums and tax evasion.
According to court documents, Belinda Jo Juarez, 53, was the majority owner and CEO of Superior Home Health Service, a health care company based in San Antonio with additional locations elsewhere. The company offered employees the option to enroll in an employee health insurance plan. Beginning in or around August 2017, Juarez knowingly caused her company to stop remitting insurance payments to the insurance providers but continued to withhold contributions from employee paychecks, even after insurance providers canceled their contracts as the result of non-payment. Juarez’s employees, some of whom who had incurred costs for medical services, were not informed that their insurance coverage had been cancelled or was inactive. As part of the sentence, Juarez was ordered to pay $617,738.65 in restitution to former employees for improperly withheld premiums and resultant medical debts.
Juarez was also sentenced on one count of willful failure to collect or pay over tax for withholding federal payroll tax contributions from her employees’ paychecks and failing to remit the funds to the IRS for time periods between 2016 and 2019. The sentence accounted for over $1 million in personal income tax liability. In total, Juarez was sentenced to pay $3,667,098.88 in restitution to the IRS.
In addition to the restitution and imprisonment, Juarez was fined $20,000 and will serve three years of supervised release at the conclusion of her sentence.
“Protecting the public treasury is one of the primary missions of federal law enforcement,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is even more important when, as in this case, there is direct harm to civilian victims. Not only did this defendant withhold millions in tax payments to the government, but the ill-gotten gains also came directly from the paychecks of her own employees.”
“Juarez let greed drive her to defraud the government and left her employees to face the horror of losing their health insurance when they needed it most,” said acting Special Agent in Charge Lucy Tan for IRS Criminal Investigation’s Houston Field Office. “This case was referred to us by another IRS division, just as we get tips from the public and requests from other agencies. We pair our law enforcement and accounting skills in order to bring justice to victims because criminal greed doesn’t stop at one tax violation.”
“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector pension and health plans,” said Dallas Regional Director Deborah Perry for the Department of Labor, Employee Benefits Security Administration (EBSA).
IRS-CI and the EBSA investigated the case.
Assistant U.S. Attorneys Justin Chung and Justin Simmons prosecuted the case.
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Beckley Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Jalen O. Thomas, 27, of Beckley, was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on November 27, 2023, law enforcement officers executed a search warrant at a Beckley residence where Thomas was staying. During the search, officers seized a Smith & Wesson model SD9VE 9mm semiautomatic handgun, a loaded Glock model 17 Gen 5 9mm semi-automatic handgun with an extended magazine capable of holding 40 rounds, and a Taurus .38-caliber revolver. Thomas admitted to possessing the seized firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Thomas knew he was prohibited from possessing a firearm because of his prior conviction for felony fleeing in Cabell County Circuit Court on May 11, 2018.
The Court concluded that Thomas possessed firearms to facilitate drug trafficking. The Glock handgun seized on November 27, 2023, was found on a couch next to a package containing methamphetamine that was delivered to the Beckley residence as part of a controlled delivery shortly before officers executed the search warrant. Investigators intercepted the package before it was delivered, and found it contained over 400 grams of methamphetamine. Investigators removed most of the methamphetamine and replaced it with a sham substance before delivering the package to the residence.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Postal Inspection Service and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-197.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Devin I. Cresce, 28, of Beckley, pleaded guilty today to distribution of 50 grams or more of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on or about July 13, 2023, Cresce sold approximately 53 grams of methamphetamine to a confidential informant in exchange for $500 while in a vehicle outside the Crossroads Mall in Mount Hope. Cresce admitted to the transaction. Cresce further admitted to selling approximately 80 grams of methamphetamine for $750 on July 18, 2023, approximately 24 grams of fentanyl for $1,800 on July 28, 2023, and approximately 62 grams of methamphetamine for $750 on August 8, 2023. Each distribution occurred at Cresce’s residence and involved the same confidential informant.
On or about August 10, 2023, law enforcement officers executed a search warrant at Cresce’s residence and seized approximately 94.5 grams of fentanyl and 63 grams of methamphetamine. Cresce admitted that he intended to distribute these controlled substances in and around the Southern District of West Virginia.
Cresce is scheduled to be sentenced on May 9, 2025, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Central West Virginia Task Force.
United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-92.
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Aurora Man Indicted for Defrauding Surveying Company and $2.3 Million from COVID-19 Relief ProgramsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Mathew Barr, age 50, of Aurora, Colorado, was indicted by a federal grand jury on six counts of wire fraud and two counts of money laundering in connection with schemes to defraud a Colorado surveying company and programs intended to provide emergency relief funds during the COVID-19 pandemic.
According to the indictment, from June 2019 until around November 2022, Barr allegedly defrauded SurvWest, LLC, the surveying company in which he was majority shareholder of, to obtain over $843,452 for his own benefit, including to purchase an Aston Martin convertible, a Land Rover Range Rover Sport, and a Mercedes Benz G63.
The indictment further alleges that Barr participated in a scheme to defraud the Small Business Administration and others to obtain emergency COVID-19 relief funds totaling over $2.3 million during the pandemic.
On January 7, 2025, the defendant made his initial appearance in front of U.S. Magistrate Judge Kathryn A. Starnella.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being investigated by the Internal Revenue Service Criminal Investigation’s Denver Field Office. The prosecution is being handled by Assistant United States Attorneys Taylor Glogiewicz and Craig Fansler.
On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Case Number: 1:24-cr-00372-DDD
Auburn Man Sentenced to 35 Months for Cocaine Base TraffickingRead the Press Release
PORTLAND, Maine: An Auburn man was sentenced in U.S. District Court in Portland today for distributing cocaine base.
U.S. District Judge John A. Woodcock, Jr. sentenced Devonne Scott, 31, to 35 months in prison followed by three years of supervised release. Scott pleaded guilty on September 19, 2024.
According to court records, in July 2023, a confidential informant reported to the FBI that a man they knew agreed to sell the informant crack cocaine. In August 2023, the informant conducted two controlled buys of suspected cocaine base from Scott with the exchanges monitored and videotaped by the FBI and law enforcement partners. Laboratory tests confirmed the substances purchased contained cocaine base.
The FBI investigated the case, together with the U.S. Drug Enforcement Administration and the Lewiston Police Department.
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Acton Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
BOSTON – An Acton man was sentenced today in federal court in Boston to 20 years in prison for sexual exploitation of children, receipt of child sexual abuse material and possession of child sexual abuse material (CSAM).
Patrick Baxter, 44, was sentenced by U.S. District Court Judge Allison D. Burroughs to 20 years in prison, to be followed by five years of supervised release. In January 2024, Baxter was convicted after a jury trial of one count of possession of child pornography, one count of receipt of child pornography and one count of sexual exploitation of children. Baxter was previously arrested and charged in December 2022.
“Child pornography is not just an image or video, there is an innocent child behind that lens who has been victimized. Each time someone views these images, the victims are revictimized, causing immeasurable harm,” said United States Attorney Joshua S. Levy. “Nothing can reverse the damage that child exploitation does to its victims, but we hope that our commitment to holding perpetrators accountable, will serve as a stark warning to others.”
“Not only did Patrick Baxter amass hundreds of images of child sexual abuse, but he also sexually exploited a seven-year-old child for his own sick gratification,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The FBI and our law enforcement partners are working every day to find and bring to justice anyone actively harming children like this.”
Baxter downloaded CSAM from the internet on multiple occasions in 2021. A computer hard drive seized during a search of Baxter’s residence was found to contain approximately 427 video files depicting CSAM featuring prepubescent and pubescent minors engaged in various types of sexual acts and the lascivious display of their genitals. Baxter also produced CSAM in his home (then in Melrose) of a child known to him.
U.S. Attorney Levy and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the Melrose Police Department and the Royal Canadian Mounted Police. Assistant U.S. Attorneys David G. Tobin and Jessica L. Soto of the Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
45 Year Prison Term for Man Who Shot and Killed a 22-Year-Old in Southeast Washington D.C.Read the Press Release
WASHINGTON – Bernard Matthews, 45, of Washington, D.C., was sentenced today to 45 years in prison for the February 16, 2021, shooting of Diamonte Green in Southeast D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court jury found Matthews guilty of first-degree murder while armed, possession of a firearm during a crime of violence, unlawful possession of a firearm and carrying a pistol without a license on August 12, 2024, before the Honorable Michael O’Keefe.
According to the evidence presented at trial, around mid-afternoon, on February 16, 2021, Matthews walked several blocks and sought out the victim, 22-year-old Diamonte Green, who was threatening the defendant’s son via Instagram. The defendant shot the unarmed victim eight times inside the entry way of an apartment building at 33rd and C Street SE, killing him.
This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It was prosecuted and tried by Assistant U.S. Attorneys Andrea Coronado and Kathleen Gibbons of the U.S. Attorney’s Office for the District of Columbia.
Tuesday 7 January 2025
Владелец Расположенной В Бруклине Кредитной Kонсультационной Компании Приговорен К Более Чем 11 Годам Тюремного Заключения За Мошенничество В Отношении КлиентовRead the Press Release
Сегодня в федеральном суде Бруклина Марат Лернер, бывший президент компании по оказанию услуг по облегчению бремени задолженности, был приговорен Окружным судьей США Николасом Г. Гарауфисом [Nicholas G. Garaufis] к 135 месяцам тюремного заключения за сговор с целью совершения мошенничества с использованием электронных средств сообщения и за мошенничество с использованием электронных средств сообщения. Лернер также был осужден за продолжение деятельности по реализации своей преступной схемы в период досудебного освобождения. Лернер был приговорен к конфискации около 2 340 154 долларов в пользу государства. Размер возмещения убытков для жертв его преступлений будет определен позднее. Лернер признал себя виновным по этим обвинениям в феврале 2024 года.
Бреон Пис, Прокурор США Восточного округа Нью-Йорка, ДжеймсE. Деннехи [James E. Dennehy], помощник Директора Федерального бюро расследований (FBI) в Региональном управлении Нью-Йорка, и Гарри Т. Чавис младший [Harry T. Chavis, Jr.], Специальный агент в Региональном управлении Нью-Йорка Отдела расследований по уголовным делам Налогового управления США (IRS-CI), объявили приговор.
«Сегодня ответчик узнал, что существуют серьезные последствия за кражу денег своих клиентов, даже после его ареста, и безжалостную трату похищенных средств на роскошный автомобиль для себя, онлайн знакомства и дорогие обеды и ужины», – заявил Прокурор США Пис. «Его жертвами стали трудолюбивые люди, многие из которых выходцы из стран Восточной Европы, обратившиеся к нему за помощью, чтобы спасти свои дома и средства к существованию. Вместо оказания им помощи Лернер воспользовался их доверием и уязвимостью для кражи их денег. Лернер продолжал совершать свои преступления, даже когда он знал, что его действия привели к утрате жертвами его преступлений своих домов или к вынужденным объявлениям о банкротстве. Прокуратура намерена защищать население от недобросовестных консультантов, подобных Лернеру».
«Марат Лернер украл 2,5 миллионов долларов у уязвимых в финансовом отношении клиентов и довел нескольких из них до банкротства после того, как он направил их деньги на финансирование своих личных роскошных покупок вместо обеспечения обещанного снижения платежей по ипотеке», – заявил специальный агент FBI Деннехи. «Лернер предал доверие жертв своих преступлений, безжалостно продолжая использовать эту мошенническую схему даже после его первоначального ареста. Благодаря постоянной поддержке со стороны Полицейского управления Нью-Йорка (NYPD) и Таможенно-пограничной службы США (CBP), FBI продолжает расследовать дела преступников, использующих пустые обещания, чтобы нажиться на представителях социально незащищенных групп населения ради удовлетворения собственной жадности».
«Лернер жил роскошной жизнью, присваивая деньги людей в своем собственном сообществе», – заявил специальный агент IRS-CI Чавис. «Его подпольная брокерская деятельность не была простой денежной аферой; она приводила к тому, что жертвы не выплачивали ипотечные кредиты, а некоторые оказывались в ситуации изъятия банком заложенного под ипотечный кредит имущества. Сегодняшний приговор должен стать напоминанием всем, кто наживается на других ради удовлетворения собственных алчных желаний: вас поймают, вас будут преследовать по закону, и вы отправитесь в тюрьму за свои преступные деяния».
Согласно судебным документам и фактам, представленным во время слушания по вынесению приговора Лернеру, ответчик был владельцем компании Lerner Group, которая заявляла, что она предоставляет услуги по облегчению бремени задолженности, включая изменение условий ипотечного кредита, в основном для лиц в восточноевропейской иммигрантской общине в Бруклине. Многие из жертв, обманутых Лернером, уже испытывали финансовые затруднения и специально обращались к Лернеру за помощью, чтобы снизить свои ежемесячные выплаты по ипотеке. Лернер, в свою очередь, обещал, что он поможет им снизить ежемесячные ипотечные платежи, работая с их ипотечными кредиторами, чтобы добиться изменения условий ипотечного кредита или получения федеральной помощи домовладельцам. Для осуществления мошенничества Лернер получал доступ к банковским счетам своих жертв, которые, как он утверждал, будут использоваться для выплат ипотечным банкам от имени клиентов.
Лернер использовал доступ к банковским счетам своих жертв для хищения около 2,5 миллиона долларов – деньги, которые, как полагали его 19 жертв, использовались для оплаты их ипотечных кредитов. Получив доступ к банковским счетам своих жертв, Лернер переводил средства с их счетов в подконтрольные ему компании и/или банковские счета. Лернер прикрывал свое мошенничество, заявляя, что денежные средства находятся на условном депонировании или в филиалах ипотечных банков. На деле же Лернер оставлял себе большую часть денег и тратил их на личные и деловые расходы, включая автомобиль BMW, предметы роскоши и дорогие обеды и ужины. Лернер довел нескольких своих клиентов до вынужденной необходимости заявить о банкротстве во избежание изъятия банком заложенного под ипотечный кредит имущества, и в результате его преступной схемы несколько его жертв находятся в процессе изъятия банком заложенного под ипотечный кредит имущества.
В январе 2023 года Лернер был арестован в связи с мошенничеством и освобожден под залог. Ему были даны указания не совершать дополнительных преступлений. Однако Лернер незамедлительно открыл новые банковские счета и продолжил осуществление своей преступной схемы. После ареста по этому делу Лернер похитил у своих клиентов еще как минимум 50 000 долларов. В сентябре 2023 года постановление об освобождении Лернера под залог было отменено после того, как большое жюри предъявило Лернеру дополнительное обвинение в совершении дополнительных преступлений.
Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг Прокуратуры США. Помощник прокурора США Ник М. Аксельрод [Nick M. Axelrod] и бывший помощник прокурора США Дженни Нгаи [Genny Ngai] отвечали за ведение этого дела.
Ответчик:
МАРАТ ЛЕРНЕР
Возраст: 42
Бруклин, Нью-ЙоркНомер дела E.D.N.Y. 23-CR-15 (S-1) (NGG)
Windham Man Sentenced to 15 Years, Ordered to Pay $108,000 in Restitution for Possessing, Distributing Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: A Windham man was sentenced today in U.S. District Court in Portland for distributing and possessing child sexual abuse material.
U.S. District Judge Nancy Torresen sentenced Cote Noonan, 33, to 180 months in prison to be followed by 10 years of supervised release. He was also ordered to pay $108,000 in restitution to victims. Noonan pleaded guilty on June 5, 2024.
According to court records, in October 2023, Noonan, using the username “Femboy Cassidy,” sent an undercover FBI agent three child sexual abuse material videos using the instant messaging application TeleGuard. The videos showed the sexual abuse of young victims, including an infant. The agent also observed “Femboy Cassidy” share similar photos and videos on two other occasions in a trading room for child sexual abuse material. During the investigation, Noonan admitted to operating the “Femboy Cassidy” account and informed investigators that they would find child sexual abuse material on his electronic devices. He also admitted to sexually abusing a child on multiple occasions and recording that abuse. The FBI seized several devices from Noonan’s residence, four of which contained thousands of known child sexual abuse material images and videos. Many of these images and videos showed the sexual abuse of toddlers and infants. The FBI did not locate any photos or videos documenting the hands-on sexual abuse described by Noonan.
The FBI investigated the case.
“Mr. Noonan admitted to a long and disturbing history which includes viewing and downloading child sexual abuse materials for more than two decades, in addition to engaging in illicit sexual contact with children,” said U.S. Attorney Darcie N. McElwee. “This sentence will protect children from being victimized and hopefully offer some measure of justice to those he exploited.”
“Simply put, Cote Noonan is a predator,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “He amassed tens of thousands of images of young children being sexually abused and shared them online. During our investigation, he also admitted to sexually abusing a child. It’s vital that he’s locked away where he can’t hurt any more kids. The FBI and our partners won’t ever stop fighting to protect children from being so horrifically exploited.”
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: 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 Department’s Child Exploitation and Obscenity Section, 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, visit https://www.justice.gov/usao-me/psc.
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Virginia contractor to pay over $2.6M to settle allegations of falsely obtaining small business contractsRead the Press Release
NEWPORT NEWS, Va. – R&K Enterprises Inc. (R&K), headquartered in Newport News, has agreed to pay over $2.6 million to resolve allegations under the False Claims Act and the common law that the company represented that it was eligible for certain small business set-aside contracts when it did not meet the program rules to qualify as a small business.
The United States alleged that R&K represented and certified in its bid that it met the size standard for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract — measured in average revenue over the previous three years from the date of the bid — when it did not. To appear to meet the size standard, R&K allegedly novated a contract to another company, K&P Management Inc. (K&P), and represented the two companies were not affiliated. The United States alleged that, under the applicable rules, the two companies were affiliated based on several factors, including that the wife of R&K’s owner owned K&P, all of K&P’s purported revenue came from R&K, the two companies shared executives, and R&K exercised control over K&P. As a result, the United States contended that R&K should have included K&Ps revenue in R&K’s calculation of its size.
“My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The complex, multi-agency investigation that culminated in this settlement exemplifies the importance of strong partnerships that maximize our expertise and authority to effectively enforce the law.”
“Small business set-aside contracts assist small businesses to compete,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies fraudulently obtain contracts reserved for small businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”
“We will work with law enforcement partners to investigate allegations of small business fraud, including companies that misrepresent their status to get federal contracts,” said Deputy Inspector General Robert C. Erickson of the General Services Administration (GSA).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Division’s Commercial Litigation Branch, Fraud Section with assistance from the GSA Office of Inspector General, Small Business Administration and Department of Transportation Office of Inspector General.
Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia and Trial Attorney Danielle Rowan of the Justice Department’s Civil Division investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Virginia Contractor to Pay over $2.6M to Settle Allegations of Falsely Obtaining Small Business ContractsRead the Press Release
R&K Enterprises Inc. (R&K), headquartered in Newport News, Virginia, has agreed to pay over $2.6 million to resolve allegations under the False Claims Act and the common law that the company represented that it was a small business eligible for certain small business set-aside contracts when it did not meet the program rules to qualify as a small business.
The United States alleged that R&K represented and certified in its bid that it met the size standard for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract — measured in average revenue over the previous three years from the date of the bid — when it did not. To appear to meet the size standard, R&K allegedly novated a contract to another company, K&P Management Inc. (K&P), and represented the two companies were not affiliated. The United States alleged that, under the applicable rules, the two companies were affiliated based on several factors, including that the wife of R&K’s owner owned K&P, all of K&P’s purported revenue came from R&K, the two companies shared executives and R&K exercised control over K&P. As a result, the United States contended that R&K should have included K&Ps revenue in R&K’s calculation of its size.
“Small business set-aside contracts assist small businesses to compete,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies fraudulently obtain contracts reserved for small businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.”
“My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The complex, multi-agency investigation that culminated in this settlement exemplifies the importance of strong partnerships that maximize our expertise and authority to effectively enforce the law.”
“We will work with law enforcement partners to investigate allegations of small business fraud, including companies that misrepresent their status to get federal contracts,” said Deputy Inspector General Robert C. Erickson of the General Services Administration (GSA).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Virginia with assistance from the GSA Office of Inspector General, Small Business Administration and Department of Transportation Office of Inspector General.
Trial Attorney Danielle Rowan of the Justice Department’s Civil Division and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia investigated the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Violent Waterbury Gang Member Sentenced to 35 Years in Federal PrisonRead the Press Release
DAYQUAIN SINISTERRA, also known as “Quan,” 27, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 420 months of imprisonment, followed by three years of supervised release, for offenses stemming from his participation in the 960 gang, a violent Waterbury street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo.
According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Sinisterra and 15 other 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses.
On March 13, 2024, Sinisterra pleaded guilty to one count of racketeering conspiracy, six counts of attempted murder and assault with a dangerous weapon in aid of racketeering, and three counts of carrying and using a firearm during and in relation to a crime of violence.
Sinisterra specifically admitted that he and other 960 members were engaged in violent activity and conspired to shoot and murder members of rival gangs, including:
- On September 21, 2018, in retaliation for the murder of an associate, Sinisterra and other 960 members participated in drive-by shootings of occupied residences on Lounsbury Street and Scott Road in Waterbury.
- On October 6, 2018, in a drive-by shooting, Sinisterra and other gang members attempted to murder individuals believed to be members of a rival gang, which resulted in gunshot wounds to an individual.
- On October 11, 2018, in an effort to murder rival gang members, Sinisterra and other gang members participated in a drive-by shooting that resulted in the death of an innocent bystander, 30-year-old Fransua Guzman, and the paralysis of a second victim.
- On November 1, 2018, Sinisterra shot a rival gang member.
- On November 18, 2018, Sinisterra and other gang members participated in a drive-by shooting of rival gang members, which resulted in gunshot wounds to two individuals.
Sinisterra has been detained since November 21, 2018.
This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, Waterbury Police Department, ATF, and U.S. Marshals Service, with the assistance of the Southington Police Department, Watertown Police Department, New Milford Police Department, Connecticut State Police, Connecticut Department of Correction, Connecticut Forensic Science Laboratory, and the DEA Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo, who were cross-designated as Special Assistant U.S. Attorneys in this matter.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is a program bringing 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.
United States Attorney Talbert Announces His ResignationRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert has announced his resignation effective midnight on Jan. 11, 2025. Talbert has served as the Presidentially appointed U.S. Attorney for the Eastern District of California for two and a half years.
“It has been the honor of my lifetime to serve as the United States Attorney for the Eastern District of California, the district where I served as a federal prosecutor for two decades,” said Talbert. “I thank President Biden for nominating me to the position and am grateful to the late Senator Dianne Feinstein, Senator Alex Padilla, and Attorney General Merrick Garland for their support and confidence in me to lead this office of dedicated public servants. It has been a privilege to work alongside the talented attorneys and staff of this office as well as with our federal, state, and local law enforcement partners to protect the over 8 million residents who live in our district, to seek justice on behalf of victims, to safeguard civil rights, and to uphold the rule of law. After my departure, I am confident the office will continue to perform at a high level of excellence and will continue to demonstrate its commitment to pursuing justice in a fair, ethical, and nonpartisan manner, with a clear understanding of the need to maintain the public’s confidence and trust.”
The United States Attorney serves as the chief federal law enforcement officer and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras and has almost 100 attorneys and almost 100 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.
Upon Mr. Talbert’s resignation, Michele M. Beckwith will become the Acting U.S. Attorney for the Eastern District of California pursuant to the Vacancies Reform Act. Ms. Beckwith is a veteran federal prosecutor who served as First Assistant U.S. Attorney to Mr. Talbert and earlier as Executive Assistant U.S. Attorney and Criminal Chief.
U.S. Attorney Talbert has served the Department of Justice for more than 31 years, and over the last 14 years he has made a lasting mark on the Eastern District of California through his steady, team-oriented, and innovative leadership. He first assumed the role of First Assistant U.S. Attorney in the office in 2011, and later led the office for almost two years in 2016-2017 as the Acting and Interim U.S. Attorney. He returned to the First Assistant U.S. Attorney position in 2017, and then again led the office as the Acting and Interim U.S. Attorney in 2021-2022 before being confirmed as the Presidentially appointed U.S. Attorney in June 2022. His stalwart leadership throughout changes in Administrations and within the U.S. Attorney’s Office embodies the office’s commitment to excellence and its enforcement of federal law without bias and unaffected by partisanship.
At the national level, Mr. Talbert also served the U.S. Department of Justice through multiple subcommittees and working groups, including the Civil Rights Subcommittee and its Hate Crimes Working Group, the Controlled Substances Subcommittee and its Prevention Working Group, the Office of Management and Budget Subcommittee, and the Resource Allocation Working Group.
Previously, Mr. Talbert served as an Assistant U.S. Attorney in this district, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases and then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law.
Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C. after being hired in the Attorney General’s Honors Program; as an attorney at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit.
Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review.
Notable criminal cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Criminal prosecutions of major frauds, including cases against the two co-founders and co-CEOs of Bitwise Industries, who received 11-year and 9-year sentences for a $115 million fraud centered on a failed Fresno-based tech startup; a former congressman charged with fraud in conducting his private business dealings; the owner of a chain of supermarkets who allegedly employed undocumented workers then used their immigration status to avoid paying for overtime; and a former local water district manager convicted of a long-running scheme to divert and sell managed water.
- Investigations and cases undertaken in concert with federal, state, and local law enforcement partners to reduce violent crime, including prosecution of MS-13 and Aryan Brotherhood defendants who committed and directed murders, other violent crimes, and drug trafficking crimes, and the prosecution of illegal firearms trafficking schemes, including a ring alleged to have illegally brought over 500 guns from Georgia to the Eastern District of California and another unrelated scheme that allegedly resulted in the sale of over 100 guns used in crimes across California and neighboring states.
- Cases targeting individuals who prey upon and sexually exploit children, including multiple defendants who extorted minors online for child sexual abuse material, multiple defendants who used hidden recording devices to surreptitiously film children in various stages of undress, and a defendant sentenced to 30 years for the sex trafficking of a minor.
- The indictment of two individuals, leaders of the Terrorgram Collective, for allegedly soliciting over Telegram the murder of federal officials and mass hate crimes as well as other federal crimes.
- The investigation and indictment of individuals operating major drug trafficking organizations in and through the district, including one case that led to seizures of 12,900 pounds of methamphetamine, 23 kilograms of fentanyl, and 35 firearms, and another case involving counterfeit pills containing fentanyl trafficked by a defendant who called himself the “M30 king of Fresno.”
- Cases targeting individuals who defrauded the state and federal government out of millions of dollars of pandemic relief funds intended for people and companies legitimately needing the assistance, including a former gang member serving a life sentence for murder in state prison who allegedly attempted a $550 million COVID relief tax credit fraud scheme while he was simultaneously directing a methamphetamine trafficking organization operating outside of prison walls.
- Cases protecting the environment, including the indictment of a group of defendants who allegedly conspired to create, distribute, and use a sophisticated software system to obtain passing smog check tests for vehicles that would otherwise fail, in violation of the Clean Air Act, and cases against others who distributed defeat devices that unlawfully interfered with the emissions control systems in trucks.
- The indictment of eleven “burglary tourists” alleged to have used blowtorches and cellphone jammers to commit a string of bank robberies in multiple states.
- Criminal prosecutions of law enforcement officers violating victims’ civil rights while acting under color of law, including a state prison guard who assaulted two inmates, resulting in one’s death, and later with fellow officers engaged in an attempted coverup, and a police officer alleged to have abused his official position to sexually assault women.
- Cases against perpetrators of violent crimes, including sexual assaults, in Yosemite National Park.
- Prosecution and conviction of 20 individuals in a series of cases involving corruption at the California Department of Motor Vehicles.
Notable civil cases the office has handled under U.S. Attorney Talbert’s leadership include:
- Multiple cases of health care fraud, including the following: Health Net Federal Services paid more than $97 million for overstated billings to the Veteran’s Administration; Nor-Cal Pharmacies Inc. was shut down and ordered to pay $1 million for dispensing oxycodone and hydrocodone based on invalid prescriptions; Oroville Hospital is to pay $10.25 million for paying kickbacks to physicians in order to increase hospital admissions and admitting patients for whom they knew inpatient care was not medically necessary; and Dr. Francis Lagattuta and his clinic agreed to pay $11.4 million for billing for allegedly medically unnecessary skin biopsies, spinal cord stimulation surgeries, and urine drug testing.
- Recoveries for damage to federal lands based on negligently caused forest fires, including a $117 million payment by PG&E relating to the 2018 Camp Fire.
- Multiple civil settlements for fraud in COVID relief programs.
- A case resulting in a $3.1 million settlement for the manufacture and sale of illegal devices to circumvent emission control systems of diesel trucks.
- The opening of a civil rights investigation with the Civil Rights Division into allegations of sexual abuse of inmates by staff at California’s largest women’s prison.
Throughout his time in the office, Mr. Talbert participated in and supported the development of the office’s community outreach program, especially in the area of interfaith outreach, working to build strong community bonds among various groups and between those groups and law enforcement. He launched the Fresno Area Hate Crimes Task Force, modeled on the successful Sacramento Area Hate Crimes Task Force which he also led, and he worked to increase the public’s awareness of the threat and impact of hate crimes, the importance of reporting them to law enforcement, and the need for different parts of the community and law enforcement to stand up to acts of hate together. Within the federal court family, he ensured that the U.S. Attorney’s Office took a leadership role through its innovative Special Emphasis Program to raise awareness of issues impacting all parts of the community and to further develop leadership opportunities for women lawyers. He also helped create the Sacramento Region Diversity Career Fair, the first legal career fair in the area connecting diverse law students and newer lawyers with prospective employers, and he helped establish the fair as an annual event for three years running.
U.S. Transfers $50M in Forfeited Assets to the Republic of Estonia in Recognition of Assistance in the Danske Bank Prosecution and ForfeitureRead the Press Release
The Justice Department announced today that it entered into an agreement to share $50 million in forfeited assets with the Republic of Estonia (Estonia) in recognition of Estonia’s assistance in the successful prosecution of Danske Bank and related forfeiture.
“Coordinating with our foreign law enforcement counterparts is critical in the fight against complex financial crime — which now, more than ever before, is transnational in nature,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Today’s agreement to share $50 million in forfeited funds with Estonia recognizes Estonia’s valuable contribution to the successful U.S. prosecution of Danske Bank, which pleaded guilty for lying to U.S. banks about its inadequate anti-money laundering controls and high-risk, offshore customer base to gain access to the U.S. financial system. Estonia’s pledge to use the funds to combat financial crime, enhance asset recovery, and facilitate international cooperation reflects both countries’ commitment to invest in our vital law enforcement relationship to tackle complex cross-border crime.”
In December 2022, Danske Bank pleaded guilty to one count of conspiracy to commit bank fraud in a scheme to defraud U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system. According to admissions and court documents, Danske Bank Estonia had a lucrative business line serving non-resident customers, whom it attracted by ensuring that those customers could transfer large amounts of money through Danske Bank Estonia with little, if any, oversight. Under the terms of the plea agreement, Danske Bank agreed to forfeit $2.059 billion. The Justice Department agreed to credit approximately $850 million in payments Danske Bank made in a coordinated criminal resolution with Danish authorities and a coordinated civil resolution with the U.S. Securities and Exchange Commission and forfeited approximately $1.2 billion. Estonia provided valuable law enforcement assistance in the Danske Bank investigation and ultimate resolution and forfeiture by providing evidence obtained in its investigation of individuals and in response to requests from U.S. authorities.
Under the agreement announced today, Estonia will use the funds to strengthen its capacity to fight financial crime. The shared funds must be used to 1) prevent, detect, investigate, and prosecute financial crime in all its forms, including money laundering, fraud, cybercrime, corruption, and terrorist financing; 2) provide cyber forensics, forensic accounting, counterintelligence, and other specialized education and training across the Baltic States and Nordic region, including as may be appropriate through a training center and collaboration with the United States; 3) enhance compliance with requirements and effective practices for combatting money laundering and the financing of terrorism, strengthen regulatory and administrative controls against money laundering and terrorist financing, and increase public awareness regarding financial crimes, white-collar crime, and financial fraud; and 4) enhance Estonian confiscation procedures and strengthen international cooperation in confiscation matters.
The agreement contains key measures to ensure transparency and accountability. Under the agreement, Estonia will establish an Implementing Commission composed of the heads of the Estonian Ministries of Justice and Digital Affairs, Internal Affairs, and Finance that will oversee the administration of funds and projects. In addition, expenditures will be subject to review by an independent external auditor. In recognition of the important bilaterial relationship of Estonia and the United States and their critical cooperation in law enforcement matters, the United States will serve as an advisor to the Implementing Commission.
Danske Bank was prosecuted by the Bank Integrity Unit of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Southern District of New York. The FBI investigated the case. The Justice Department’s Office of International Affairs provided critical assistance.
The Criminal Division, through MLARS’ International Unit, administers the Justice Department’s international asset forfeiture sharing program. Pursuant to federal law, and in coordination with the Departments of the Treasury and State, the Attorney General may share proceeds of successful forfeiture of property with foreign countries that participate in the seizure or forfeiture of the property.
U.S. Attorney Jane E. Young Announces the Appointment of the Deputy Chief of the Criminal Division, Internal Transfers, and the Creation of an External Engagement DivisionRead the Press Release
CONCORD – United States Attorney Jane E. Young announces the appointment of Assistant United States Attorney (AUSA) John Kennedy as the Deputy Chief of the Criminal Division, the internal transfers of AUSA Kasey Weiland to the Civil Division and AUSA Matthew Vicinanzo to the Criminal Division, and the creation of an External Engagement Division at the United States Attorney’s Office for the District of New Hampshire.
AUSA John Kennedy has been appointed as the Deputy Chief of the Criminal Division. He has more than a decade of experience as a prosecutor in New Hampshire, as an Assistant United States Attorney and as an Assistant Attorney General. In these roles, AUSA Kennedy has led investigations in connection to a variety of federal and state crimes, including homicides, voter fraud and public integrity crimes, drug and firearm crimes, and complex financial fraud. He is a graduate of Notre Dame Law School.
“John is a veteran prosecutor whose broad legal knowledge and trial skills will assist in leading the Criminal Division,” said U.S. Attorney Young. “He is an exceptional attorney that has tackled a variety of challenging cases. His hard work and unwavering pursuit of justice for crime victims have earned him the respect of his colleagues and law enforcement partners.”
AUSA Kasey Weiland has transferred to the Civil Division and AUSA Matthew Vicinanzo has transferred to the Criminal Division. AUSA Kasey Weiland has had a notable career at the U.S. Department of Justice, prosecuting some of the most egregious crimes targeting children in the District of New Hampshire and the Western District of Tennessee. AUSA Matthew Vicinanzo joined the United States Attorney’s Office in 2023 from private practice as an AUSA dedicated to civil and criminal Civil Rights matters.
“Kasey will bring her legal acumen to her civil litigation portfolio, while Matt will bring his broad investigatory skills to his criminal portfolio,” said U.S. Attorney Young. “I am confident that both Kasey and Matt will continue to thrive in their new positions.”
Additionally, U.S. Attorney Young announces the creation of an External Engagement Division and has appointed Jessica Kuron to lead the division. During U.S. Attorney Young’s tenure, the U.S. Attorney’s Office has been focused on strengthening and expanding law enforcement partnerships, community outreach efforts, and accessibility to public information. Since May 2022, among other actions, the U.S. Attorney’s Office utilized federal programs and national expertise to offer 18 law enforcement trainings at no-cost to the U.S. Attorney’s Office and police departments across the district. These trainings focused on honing New Hampshire law enforcement’s understanding of legal, investigative, and effective community policing topics, including trainings on Miranda warnings, dark web investigations, pre-indicators of violent assault, suicide prevention for all layers of law enforcement, and best practices for engaging with faith-based communities. The U.S. Attorney’s Office has also become a leader in addressing emerging public safety concerns, such as elder fraud and scams, bank fraud, and hate crimes, by participating in more than 30 community awareness events.
The External Engagement Division will allow the U.S. Attorney’s Office to expand its external engagement footprint to include supporting victims in federal cases. The division aims to bridge the gap between the office’s prosecution function and impact of the underlying crimes on communities by offering additional services. With additional resources, the division will expand the office’s training program as well as partnerships for grant funding. The External Engagement Division will also oversee a new student program focused on providing federal government work experience to undergraduate students studying criminal justice, political science, and communications. The student program will allow the office to expand engagement to colleges and universities in the Granite State and allow staff to provide mentorship to the next generation of public servants.
“Since May 2022, the U.S. Attorney’s Office has prioritized strengthening partnerships with law enforcement, the media, and communities throughout New Hampshire. We have focused our efforts on enhancing access to this office and amplifying visibility into the great work performed here every day. The creation of an External Engagement Division will enable the U.S. Attorney’s Office to continue expanding its services to the public and our partners throughout the Granite State in the years ahead,” said U.S. Attorney Jane E. Young. “The positive impact that this office has had on engagement with our law enforcement and community partners is in large part due to the tireless efforts of Jess Kuron. I know that the External Engagement Division will continue to flourish under Jess’s tutelage.”
As Chief of the External Engagement Division, Ms. Kuron will continue to serve as an advisor to the U.S. Attorney, as the office’s spokesperson, and as the liaison for law enforcement in the District of New Hampshire. She will also lead a team of professional and support staff focused on advocating for victims of federal crimes, coordinating witnesses for trials, supporting members of the public in contact with the office, and with trainings and community outreach.
Positions in the External Engagement Division are vacant. Job solicitations will be posted on USAJobs.gov and on the United States Attorney’s Office for the District of New Hampshire’s LinkedIn page as they become available at www.linkedin.com/company/usao-nh.
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Richland County Man Sentenced to Federal Prison for Unlawful Firearm PossessionRead the Press Release
COLUMBIA, S.C. — Joseph Nayquan Kelly, 30, of Eastover, was sentenced to more than six years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that on Dec. 28, 2021, Richland County Sheriff’s Department deputies conducted a traffic stop on a vehicle for a license plate that came back to another type of vehicle. Kelly was a passenger in the vehicle. During that traffic stop, deputies smelled the odor of marijuana and the driver of the vehicle admitted there was a small amount of marijuana in the car. Deputies searched the vehicle and found approximately 1 pound of marijuana in a shoebox alongside a 9mm pistol with an extended magazine that had been reported stolen. Kelly claimed ownership of that pistol and the marijuana. The court ultimately held him responsible for possession of several other pistols as well as for a reckless vehicle pursuit in other incidents. Kelly is convicted felon and is unable to lawfully possess firearms or ammunition.
United States District Judge Mary Geiger Lewis sentenced Smith to 78 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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. Notably, Kelly was a prior participant in the City of Columbia’s Project Ceasefire initiative, which works to put at-risk probationers in connection with a variety of social service providers in and around Columbia with the goal of preventing recidivism but also stresses that consequences will be more significant if they choose to re-offend. Kelly’s sentence in this case is more than double the length of his longest previous sentence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richland County Sheriff’s Department, and the Columbia Police Department. Special Assistant U.S. Attorney Matthew R. Sanford is prosecuting the case.
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Repeat Sex Offender Sentenced to 16 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Joshua Sherwood, 34, of Arpin, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 195 months in federal prison for receiving child pornography. This term of imprisonment will be followed by 25 years of supervised release. Sherwood pleaded guilty to this charge on November 4, 2024.
Shortly after being released from state prison for possessing child pornography, Sherwood began reaching out to minor girls across the country, manipulating them into producing sexually explicit images for him by sending them money and items from their Amazon wish lists. When the girls refused to send him additional explicit images, he threatened to either send the images he had to the victims’ parents or to kill himself.
In choosing a 16-year sentence, Judge Conley observed that Sherwood was willing to directly exploit his young victims, seemingly enjoying the manipulation. Judge Conley saw no awareness from the defendant of the damage that he regularly caused and noted that Sherwood’s descent was so far, it will be difficult to change.
The charge against Sherwood was the result of an investigation conducted by the Smyrna, Tennessee Police Department, Homeland Security Investigations, the Marshfield Police Department, the Wisconsin Department of Corrections, and the New Lisbon Correctional Institution. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
This investigation was a part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pryor Resident Sentenced to 180 Months for Child Sexual Exploitation and AbuseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lucien Tyler Littledave, age 30, of Pryor, Oklahoma, was sentenced to 180 months in prison for one count of Sexual Exploitation of a Child, 180 months for one count of Coercion and Enticement, 180 months for one count of Receipt of Certain Materials Involving Sexual Exploitation of a Minor, 180 months for one count of Distribution of Certain Materials Involving Sexual Exploitation of a Minor, 180 months for one count of Rape in the Second Degree in Indian Country, and 120 months for one count of Sexual Battery in Indian Country. These sentences are set to be served concurrently.
The charges arose from an investigation by the Muscogee (Creek) Nation Lighthorse Police Department and the Broken Arrow Police Department.
On May 7, 2024, Littledave pleaded guilty to the charges. According to investigators, between March 2023 and May 2023, while employed as a teacher and coach with the Coweta Public School System, Littledave knowingly enticed a minor to engage in illegal sexual activity. Littledave also used a cell phone to produce and distribute sexually explicit images of the victim.
The crimes occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation, and in Wagoner County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report on the National Center for Missing & Exploited Children (NCMEC)'s website at www.cybertipline.com, call 1-800-843-5678, contact the FBI at 1-800-CALL-FBI (1-800-225-5324), or call 877-4-HSI TIP.
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 in Muskogee. Littledave 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 Jessie K. Pippin represented the United States.
Pittsburgh Man Pleads Guilty to Cocaine Trafficking ChargeRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession with the intent to distribute more than 500 grams of cocaine, United States Attorney Eric G. Olshan announced today.
David Loveings, age 71, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that Loveings was pulled over by officers from the Pittsburgh Bureau of Police for various traffic violations. The traffic stop eventually led to a search of Loveings’ vehicle and the seizure of approximately 927 grams of cocaine.
Judge Wiegand scheduled sentencing for May 13, 2025. The law provides for a total sentence of not less than five years in prison and not more than forty years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Loveings.
Pharmacy Owner Sentenced to Imprisonment for Health Care FraudRead the Press Release
ABINGDON, Va. – The owner of Randy’s Gateway Drug in Cedar Bluff, Virginia, was sentenced recently to 18 months in prison on federal healthcare fraud charges after pleading guilty in May for conduct that caused $1.3 million in losses to the federal government.
Randy Yost, 72, of Cedar Bluff, Virginia, pled guilty in May 2024 to one count of healthcare fraud, one count of conspiracy to commit healthcare fraud, and one count of distributing oxycodone.
According to court documents, Yost owned Randy’s Gateway Drug, a participating provider of Medicare, Medicaid, and Tricare. Between April 2016 and June 2023, Yost, and others, dispensed cheaper generic medications for Schedule II drugs such as Oxycontin to customers, yet billed the government healthcare benefits programs for the more expensive brand name medications.
In addition, Yost billed the government healthcare benefits programs and other insurance companies for prescription medications that were not dispensed to patients.
Yost also billed for prescription medications that were dispensed to patients and then returned to the pharmacy by those same patients, but the charge to the government healthcare benefits programs was not reversed. Instead, the returned medications were dispensed again and billed a second time.
In February 2023 and February 2024, a government analysis comparing medications ordered by Randy’s Gateway Drug’s billed to government healthcare benefits programs was completed. That analysis showed an adjusted loss to the government of $1,309,515. As a result, Yost was ordered to pay restitution in the amounts of $1,035,279.44, to Medicare, $271,274.03 to Virginia Medicaid, and $2,961.75 to TriCare.
Acting United States Attorney Zachary T. Lee, Special Agent in Charge of the DEA’s Washington Division Jarod Forget, and Virginia Attorney General Jason Miyares made the announcement..
The Drug Enforcement Administration, U.S. Department of Health and Human Services- Office of Inspector General, Virginia Office of the Attorney General- Medicaid Fraud Control Unit and the Department of Defense Criminal Investigative Service- Office of Inspector General investigated the case.
Special Assistant United States Attorney and Virginia Assistant Attorney General Janine Myatt and Assistant U.S. Attorney Danielle Stone prosecuted the case.
Pawtucket Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
PROVIDENCE – A Pawtucket man found to be in possession of more than 17,000 images and dozens of videos of child pornography has been sentenced to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Court documents reflect that in August 2023, the National Center for Missing and Exploited Children notified law enforcement that a telephone number, later determined by law enforcement to belong to Eugenio Lopes Gomes, 47, was being utilized to upload child pornography. A court-authorized search and forensic audit of the defendant’s electronic devices determined that the devices contained approximately 17,000 images and 144 videos of explicit material depicting children ranging in ages from one to twelve years old.
Lopes Gomes was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 36 months of incarceration to be followed by three years of federal supervised release. Lopes Gomes pleaded guilty on September 24, 2024, to a charge of possession of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
The case was prosecuted by Assistant United States Attorney Julienne Kline, with the assistance of Assistant U.S. Attorney Peter I. Roklan.
The matter was investigated by the Rhode Island State Police Internet Crimes Against Children Task Force and Homeland Security Investigations.
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Owner of Brooklyn-Based Credit Counseling Business Sentenced to More Than 11 Years in Prison for Defrauding ClientsRead the Press Release
Earlier today, in federal court in Brooklyn, Marat Lerner, the former president of a debt relief services business, was sentenced by United States District Judge Nicholas G. Garaufis to 135 months in prison for conspiracy to commit wire fraud and wire fraud. Lerner was also convicted of continuing his criminal scheme while on pre-trial release. Lerner was ordered to forfeit approximately $2,340,154 to the government. Restitution to the victims will be determined at a later date. Lerner pleaded guilty to the charges in February 2024.
Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“Today the defendant learned there are serious consequences for stealing his clients’ money, even after he was arrested, and ruthlessly spending it on a luxury car for himself, on-line dating and expensive meals,” stated United States Attorney Peace. “His victims were hard-working people, many from the Eastern European community, who went to him for help saving their homes and livelihoods. Instead of helping them, Lerner took advantage of their trust and vulnerability to steal their money. Lerner continued his crimes even when he knew that his actions had directly caused his victims to lose their homes and-or to declare bankruptcy. My Office is committed to protecting the public from unscrupulous advisors like Lerner.”
“Marat Lerner stole $2.5 million from fiscally vulnerable clients and forced several into bankruptcy after funneling their money to fund his personal luxury purchases rather than providing the promised reduced mortgage payments," stated FBI Assistant Director in Charge Dennehy. "Lerner betrayed his victims’ trust, remorselessly continuing to perpetuate this fraudulent scheme even after his initial arrest. With the continued support from NYPD and CBP, the FBI remains dedicated to investigating those who employ empty promises to prey upon disadvantaged communities to satisfy their own greed.
“Lerner lived a glamourous life by taking money out of the pockets of people in his own community. His underground brokerage was not just a simple money scam; it led to victims defaulting on their mortgage payments and some falling into foreclosure,” stated IRS-CI Special Agent in Charge Chavis. “Today’s sentencing should stand as a reminder to those preying on others to fulfill their own greedy desires—you will get caught; you will be prosecuted; and you will go to prison for your criminal acts.”
According to court documents and facts presented at Lerner’s sentencing, the defendant was the owner of the Lerner Group, a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn. Many of the victims Lerner defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments. Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance. To carry out his fraud, Lerner obtained access to the victims’ bank accounts, which he claimed he would use to pay the mortgage banks on their behalf.
Lerner used his access to his victims’ bank accounts to steal approximately $2.5 million – money that the 19 victims believed was being used to pay their mortgages. Once Lerner gained access to the victims’ bank accounts, he transmitted funds from their accounts to companies and/or bank accounts that he controlled. Lerner covered up his fraud by claiming the money was being held in escrow or by affiliates of the mortgage banks. In truth, Lerner kept most of the victims’ money and spent it on personal and business expenses, including a BMW, luxury goods and expensive meals. Lerner caused several of his clients to file bankruptcy petitions to stave off foreclosure to continue his fraud, and as a result of his scheme, several of his victims are facing foreclosure proceedings.
In January 2023, Lerner was arrested in connection with the fraud and released on bail. He was instructed not to commit additional crimes. However, Lerner promptly opened new bank accounts and continued his criminal scheme. After his arrest in this case, Lerner stole at least an additional $50,000 from his clients. In September 2023, Lerner’s bail was revoked after a grand jury returned a superseding indictment charging Lerner with additional crimes.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorney Nick M. Axelrod and former Assistant U.S. Attorney Genny Ngai prosecuted the case.
The Defendant:
MARAT LERNER
Age: 42
Brooklyn, New York
E.D.N.Y. Docket No. 23-CR-15 (S-1) (NGG)Owner of Addiction Treatment Chain That Billed for Recovery Services Not Provided Sentenced to More Than Eight Years in Federal Prison in Health Care Fraud ConspiracyRead the Press Release
PROVIDENCE, RI – The owner of a now defunct Rhode Island-based chain of addiction treatment centers who, as described in court documents “embezzled and cheated his way through life,” has been sentenced to more than eight years in federal prison for defrauding Medicare, Medicaid, and other health insurers out of millions of dollars, announced United States Attorney Zachary A. Cunha.
Michael Brier, 62, of Newton, MA, previously admitted to a federal judge that he and his company, Recovery Connections Centers of America, Inc. (RCCA), short changed patients suffering from substance abuse disorders in Rhode Island and Massachusetts by failing to provide them with required counseling sessions and treatment that were an important part of their care, while simultaneously billed Medicare, Medicaid, and other health care payors for those sessions. In many cases, RCCA routinely billed for 45-minute counseling sessions, while in fact providing sessions that were only 5-10 minutes or less in length.
“Michael Brier held out his business as a lifeline to vulnerable patients - men and women fighting to turn their lives around and escape the grim toll of addiction, but instead used it as a front for fraud that shortchanged those patients and lined his own pockets at taxpayer’s expense,” remarked U.S. Attorney Zachary Cunha. “Instead of providing the care these patients required and deserved, Brier directed his own employees not to provide the sessions that these patients needed, that his own therapists wanted to provide, and that the law required, while at the same time wildly overbilling federal and private health care payors. Today’s sentence should leave no doubt that those who attempt to feed their own greed from funds intended to care for those in need will be held accountable.”
“Brier and RCCA orchestrated a fraud scheme that not only robbed taxpayer funds from Medicare and Medicaid, but also undermined the health of vulnerable patients who sought help for their addiction,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s sentencing should serve as a stern reminder that those who seek to exploit our nation’s health care system at the expense of patients and taxpayers will be brought to justice.”
“Today’s sentence holds this career criminal accountable for capitalizing on the opioid crisis by defrauding taxpayer-funded federal health care programs out of millions of dollars and leaving the patients who came to his clinics deprived of treatment,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Michael Brier is a liar, a cheat, and the mastermind of this sophisticated scheme, and the FBI and our partners are gratified we could shut him down, along with his chain of addiction treatment centers, which were little more than a front for fraud.”
As described in a criminal complaint filed in this matter, under the guise of running recovery clinics that supposedly provided much-needed medical and therapy services to men and women in Rhode Island and Massachusetts who needed help in their struggles with addiction, the defendants shortchanged their patients, providing them with little to no therapy or support, all the while billing Medicare and other insurers as if they had fully served their patients. For example, Brier and RCCA billed the government or insurance providers for 45 minutes sessions when, in fact, patients were actually seen for less than 15 minutes - in some cases substantially less than that. One counselor was known as the “five-minute queen” because the counseling sessions would last that long and no longer. In another instance, an employee was equipped with a bell that they would ring to ensure that the flow of patients moved along briskly.
Briar and RCCA previously admitted that they caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application; Brier was sentenced to 27 months incarceration by a federal judge as a result of that 2013 conviction.
In this most recent matter, Brier was sentenced today by U.S. District Court Judge Mary S. McElroy to 98 months of incarceration to be followed by three years of supervised release and ordered to pay restitution in the amount of $3,515,100. At the government’s request, the court ordered Brier to forfeit approximately one million dollars contained in various bank and investment accounts, his interest in a beachfront property in Caracol Beach, Panama, and two luxury vehicles.
RCCA was sentenced by U.S. District Court Judge Mary S. McElroy to one year probation and ordered to pay restitution in the amount of $3,515,100.
The case was prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard, with the assistance of Assistant United States Attorney Milind M. Shah.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Department of the Attorney General for their assistance in the investigation.
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Oil Companies to Pay Record Civil Penalty for Violating Antitrust Pre-Transaction Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia against crude-oil producers XCL Resources Holdings LLC (XCL), Verdun Oil Company II LLC (Verdun) and EP Energy LLC (EP).
The lawsuit alleges that the three companies violated the pre-transaction notification and waiting period requirements of the Hart-Scott-Rodino Act of 1976 (HSR Act), following Verdun’s $1.4 billion purchase agreement for EP on July 26, 2021. At the time of transaction, Verdun was under common management with XCL.
According to the complaint, the three companies failed to observe a required waiting period following such a large transaction, in which federal agencies can investigate a potential merger before it closes. Instead, EP allowed Verdun and XCL to assume operational and decision-making control over significant aspects of its day-to-day business operations, including a stoppage to EP’s planned well-drilling and development at a time when the U.S. crude-oil market faced significant supply shortages and consumers faced soaring gasoline prices.
Simultaneous to filing its complaint, the department filed a proposed settlement, subject to approval by the court, under which the defendants have agreed to pay a $5.6 million civil penalty to resolve the lawsuit, a record civil penalty for illegal pre-merger coordination in violation of the HSR Act.
Further details about this matter are described in the FTC’s press release issued today, and in the complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period via email to [email protected] or by post to Maribeth Petrizzi, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Ohio Woman Sentenced to Prison for Selling Nearly $300,000 in U.S. Treasury Bonds Stolen from Elderly VictimRead the Press Release
CLEVELAND – A Cleveland woman has been sentenced to 32 months in prison after pleading guilty to conspiring to transport and sell stolen U.S. Treasury bonds across state lines, forging treasury bonds, and using a false social security number. According to court documents, Toni Laverne Smith, 71, had in her possession, U.S. Treasury bonds that were believed to have been stolen from the residence of an elderly female in 2011.
The investigation discovered that from about September 2011 to April 2012, Smith and a co-conspirator transported U.S. Treasury bonds, which they knew were stolen, across state lines. They used fake identification cards with the name of the victim to negotiate the sale of more than 350 forged Series E and EE, U.S. Treasury bonds with a face value of $268,500. The sale netted approximately $299,364 in proceeds which included interest on mature bonds. Additionally, they used the social security number of the victim to open bank accounts at several financial institutions as far away as Michigan and Illinois. Smith had eluded capture for more than a decade. Federal authorities apprehended Smith June 3, 2024, on unrelated charges.
This case was investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney Vanessa Healy for the Northern District of Ohio.
To report stolen treasury bonds, visit https://www.treasurydirect.gov/savings-bonds/manage-bonds/lost-stolen-destroyed-ee-or-i-bonds/ or call 844-284-2676.
New Orleans Man Indicted for Being Felon in Possession of FirearmRead the Press Release
NEW ORLEANS, LA – ERIC ROGERS (“ROGERS”), age 33, of New Orleans, was indicted on January 3, 2025, for being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(8), and 942(e), announced U.S. Attorney Duane A. Evans.
According to the indictment, ROGERS possessed a firearm on October 10, 2024. ROGERS was prohibited from possessing a firearm, due to his previous felony conviction(s). If convicted, ROGERS faces up to 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. ROGERS also faces payment of a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This case is being prosecuted by Assistant United States Attorney Troy L. Bell of the Violent Crimes Unit.
New London Man Sentenced for Drug Trafficking Offense, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CRUZ J. BONILLA, 41, of New London, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to approximately 52 months of imprisonment, time already served, and six years of supervised release, the first six months of which Bonilla must serve in home detention, for trafficking narcotics and for violating his conditions of supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in February 2014, Bonilla was sentenced in New Haven federal court to 68 months of imprisonment and four years of supervised release for distributing heroin. He was released from federal prison in October 2019.
On four occasions between March and May 2020, an undercover law enforcement officer purchased heroin/fentanyl from Bonilla. During the investigation, law enforcement identified William Caraballo III, also known as “Wilo,” as Bonilla’s drug supplier and learned that Caraballo regularly transported kilogram quantities of heroin/fentanyl from New York to southeastern Connecticut for distribution.
Bonilla has been detained since his federal arrest on August 26, 2020. On July 30, 2024, he pleaded guilty to possession with intent to distribute, and distribution of, a controlled substance.
Caraballo pleaded guilty to a related charge and, on December 12, 2024, was sentenced to 12 years of imprisonment.
This investigation was conducted by the Drug Enforcement Administration, the Connecticut State Police, and the Connecticut Statewide Narcotics Taskforce East. The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha M. Freismuth.
Michigan Farmer to Pay $87,500 to Settle Allegations He Wrongfully Obtained Crop Insurance and Farm BenefitsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that David G. Zelmer of Niles, Michigan, has agreed to pay $87,500 to resolve allegations that he violated the False Claims Act by obtaining federal crop insurance coverage and Farm Service Agency (FSA) benefit payments for crops he did not farm.
“Michigan farmers depend on federal programs to provide economic security,” said U.S. Attorney Mark Totten. “But the wellbeing of these programs depends on farmers telling the truth and playing by the rules. My office is committed to working with our law enforcement partners to investigate allegations of false claims to these federal programs.”
The United States alleges that Zelmer owned and farmed land in Berrien County but entered into a lease agreement with another farmer in 2015 in which he leased certain tracts of that land to the other individual to farm. This lease agreement continued through 2017. The United States alleges that, despite leasing those farm tracts to the other farmer, Zelmer certified that he was the sole producer of the crops on those farm tracts when seeking benefit payments from the FSA in crop years 2015, 2016, and 2017, when he was not. The United States further alleges that Zelmer certified that he was the sole producer of the crops on those same farm tracts when obtaining federal crop insurance coverage from the Federal Crop Insurance Corporation, when he was not.
“The U.S. Department of Agriculture, Office of Inspector General is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act,” said Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General. “Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from which they were intended. We are thankful to the U.S. Attorney’s Office and USDA’s Risk Management Agency for their partnership on this joint investigation, and OIG will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and USDA-OIG and USDA’s Risk Management Agency.
Assistant United States Attorney Andrew J. Hull prosecuted this case.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Massachusetts Man Sentenced to 46 Months in Federal Prison for Role in Massachusetts-Based Drug Trafficking OrganizationRead the Press Release
CONCORD – A Massachusetts man was sentenced today in federal court for his role in an organization trafficking drugs into New Hampshire, U.S. Attorney Jane E. Young announces.
Osvaldo Soto Jimenez, age 30, was sentenced by U.S. District Court Judge Samantha Elliott to 46 months in federal prison and 3 years of supervised release. In August 2024, Soto Jimenez pleaded guilty to one count of conspiracy to distribute controlled substances. He is the eighth of 21 charged defendants in the drug trafficking organization to be sentenced.
“As the manager of the dispatch operation that arranged the purchases and deliveries of fentanyl and cocaine, the defendant enabled this organization to traffic dangerous narcotics from Massachusetts and into our communities,” said U.S. Attorney Jane E. Young. “The defendant will now face the consequences of his criminal conduct by serving 46 months in federal prison. Other drug traffickers should be on notice that they will face the same consequences if they dare to traffic poison into our communities.”
“Osvaldo Soto Jimenez took part in a conspiracy led by his father that saw vast amounts of deadly fentanyl and cocaine brought here to Manchester, with no regard for the harm he caused in this community,” said Jodi Cohen, Special Agent in Charge of the FBI’s Boston Division. “Today’s sentence is a win for the FBI and all our partners as we work together to get dangerous drugs and criminals off the street.”
“Fentanyl and cocaine are causing tremendous damage to our communities in New Hampshire,” said Acting Special Agent in Charge Stephen Belleau, New England Field Division. “Those who distribute these drugs are endangering the safety of the citizens of the Granite State. The DEA will continue to work each day alongside our law enforcement partners to identify and investigate those who are responsible for distributing deadly drugs.”
The defendant was part of a Massachusetts-based drug trafficking organization that was distributing significant quantities of fentanyl and cocaine in New Hampshire, primarily in Manchester. The organization used a dispatch operation to sell drugs. Customers called a phone line to purchase narcotics, where they would speak to the defendant. The defendant would then send a runner to conduct the drug sale at an arranged meeting location. The defendant arranged runners to conduct these drug sales on three occasions and personally delivered drugs himself on two other occasions. A search of the defendant’s shared Massachusetts-based residence yielded approximately $15,000 and drug ledgers in his bedroom, and firearms in a common area. A search of a vehicle used by the defendant yielded roughly 94 grams of fentanyl and 196 grams of crack cocaine packaged in small baggies for distribution.
The Federal Bureau of Investigation and the Drug Enforcement Administration led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande and Jarad Hodes are 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.
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Marketers and Healthcare Providers in Texas, Virginia and South Carolina Agree to Pay over $1.1M to Settle Laboratory Kickback AllegationsRead the Press Release
Two laboratory marketers — Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; three physicians — Dr. Abbesalom Ghermay, of Plano, Texas; Dr. Daniel Theesfeld, of Longview, Texas; and Dr. James Cook, of Richmond, Virginia; and medical practice owner Troy Belton, of Columbia, South Carolina, and associated entities, have agreed to pay a total of $1,137,914 to resolve False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute. The parties have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged schemes.
“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia and Texas.
Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey; Dallas, Texas; and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the health care providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for 10 years.
John Bello and his marketing company, RiteRx4U LLC, agreed to pay $140,000 to resolve allegations that, from February 1, 2019, through February 28, 2021, they paid Dr. James Cook, of Richmond, Virginia, thousands of dollars in kickbacks to induce Dr. Cook to order testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Dr. Cook’s referrals to these laboratories.
The Healthcare Provider Settlements
The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia and Texas.
Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Dr. James Cook and his medical practice, Family Medical Centers, P.C., agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories.
Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC, agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Advantage Medical Group, an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton, agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey; Dallas, Texas; and Denton, Texas.
“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.”
“Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlements.
The United States has recovered over $53 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with 48 physicians. The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only. There has been no determination of liability.
View the Naghshbandi Settlement here.
View the Bello Settlement here.
View the Cook Settlement here.
View the AMG Settlement here.
View the Theesfeld Settlement here.
View the Ghermay Settlement here.
Marketers and Healthcare Providers in Texas, Virginia, and South Carolina Agree to Pay over $1.1 Million to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two laboratory marketers, three healthcare providers, an outpatient clinic, and associated entities have agreed to pay a $1.14 million to resolve violations of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.
Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; and three physicians – Abbesalom Ghermay, of Plano, Texas, Daniel Theesfeld, of Longview, Texas, and James Cook, of Richmond, Virginia – and medical practice owner Troy Belton, of Columbia, South Carolina, agreed to settle False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute.
“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions. Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.”
U.S. Attorney Philip R. Sellinger
“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division said. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.”
“Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia, and Texas.
Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey, Dallas, Texas, and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the healthcare providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for ten years.
John Bello and his marketing company, RiteRx4U LLC, agreed to pay $140,000 to resolve allegations that, from February 1, 2019 through February 28, 2021, they paid Dr. James Cook, of Richmond. Virginia, thousands of dollars in kickbacks to induce Cook to order testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Cook’s referrals to these laboratories.
The Healthcare Provider Settlements
The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia, and Texas.
Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Dr. James Cook and his medical practice, Family Medical Centers, P.C., agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories.
Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC, agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Advantage Medical Group, an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton, agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey, Dallas, Texas, and Denton, Texas.
The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
naghshbandi.settlementagreement.pdf ghermay.settlementagreement.pdf cook.settlementagreement.pdf bello.settlementagreement.pdf amg.settlementagreement.pdf theesfeld.settlementagreement.pdfManchester Man Pleads Guilty to the Illegal Possession of AmmunitionRead the Press Release
CONCORD – A Manchester man pleaded guilty today in federal court to the illegal possession of ammunition, U.S. Attorney Jane E. Young announces.
Eric Edmondson, 46, pleaded guilty to the possession of ammunition by a prohibited person. U.S. District Court Judge Joseph Laplante scheduled sentencing for April 17, 2025.
On September 11, 2023, a motorist called 911 to report a potential road rage incident involving a driver, of a small black sedan with temporary NH plates, who displayed an apparent firearm. Law enforcement responded, identified the suspect vehicle, and initiated a stop along Route 101. The defendant was driving the vehicle and was arrested on an outstanding state arrest warrant. A subsequent state search warrant yielded a privately manufactured firearm and five rounds of 9 mm ammunition in the defendant’s vehicle. The defendant, a felon, is prohibited from owning or possessing ammunition.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The New Hampshire State Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Local trafficker sentenced for having firearm while dealing cocaine and marijuanaRead the Press Release
McALLEN, Texas – A 28-year-old Donna resident has been sentenced for utilizing a firearm in furtherance of drug trafficking activity, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Segura Jr. pleaded guilty Oct. 1, 2024.
U.S. District Judge Drew B. Tipton has now ordered Segura to serve 60 months in federal prison followed by 5 years of supervised release,
On July 24, 2024, authorities conducted a search warrant at Segura’s residence. At that time, they discovered marijuana, over 400 grams of cocaine and body armor within the home. Authorities also found a firearm in Segura’s bedroom next to the body armor. Segura admitted he was in possession of the firearm to protect himself during his drug trafficking activity.
Segura will remain in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Alamo Police Department conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Laconia Man Pleads Guilty to Distributing Methamphetamine and Possessing a Firearm as a Prohibited PersonRead the Press Release
CONCORD – A Laconia man pleaded guilty in federal court in connection with his distribution of methamphetamine and his possession of a firearm as a prohibited person, Attorney Jane E. Young announces.
Steven Ridgeway, 50, pleaded guilty to two counts of distribution of methamphetamine and one count of possession of a firearm by a prohibited person. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for April 17, 2025.
A confidential informant purchased a total of approximately 165 grams of methamphetamine from Ridgeway on July 5 and July 24, 2023. During the July 24, 2023, drug sale, Ridgeway also sold the confidential informant a pistol. Ridgeway, a felon, is prohibited from owning or possessing firearms and ammunition.
The charges of distribution of methamphetamine provide a maximum prison term of 20 years, a maximum fine of $1,000,000, and at least 3 years of supervised release. The charge of possession of a firearm by a prohibited person provides a maximum prison term of 15 years, a maximum fine of $250,000, and not more than 3 years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation’s Major Offender Task Force led the investigation. The Major Offender Task Force is comprised of federal agents partnered with law enforcement officers from police departments state-wide. Valuable assistance was provided by the New Hampshire Attorney General’s Drug Task Force, the New Hampshire State Police, and the Laconia Police Department. Assistant United States Attorney Heather A. Cherniske prosecuted the case.
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Justice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10
The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course of months about their pricing strategies, including plans for certain price increases.
- Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts.
- Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations.
- Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.”
The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things:
- Using competitors’ competitively sensitive data to train or run any pricing model;
- Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and
- Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.
Proposed Final Judgment - US et al. v. RealPage Inc.pdf Amended Complaint - U.S. et al. v. RealPage Inc..pdfJustice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10
WASHINGTON — The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course
- Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts.
- Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations.
- Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.”
The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things:
- Using competitors’ competitively sensitive data to train or run any pricing model;
- Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and
- Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.
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Justice Department Secures Third Settlement with a Non-Depository Mortgage Company to Resolve Redlining Claims in MiamiRead the Press Release
MIAMI — The Justice Department announced today that The Mortgage Firm, Inc. (The Mortgage Firm) agreed to pay $1.75 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach, Florida, Metropolitan Statistical Area (Miami MSA).
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“Our efforts to protect everyone’s civil rights is never ending,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The unlawful practice of lending discrimination is not merely a thing of the past, but persists in this country, to include within the Southern District of Florida. Our office is fully committed in ensuring that every person living in the Southern District of Florida, to include residents in predominantly Black and Hispanic neighborhoods, can achieve the American dream of building wealth through home ownership. We will continue to work with the Civil Rights Division to hold those lenders accountable who engage in unlawful discriminatory practices in our diverse district.”
“Non-depository institutions, including mortgage companies, are now originating a higher share of loans to homebuyers than banks and credit unions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this trend comes the obligation to ensure full compliance with our federal laws that prohibit redlining. By denying predominantly Black and Hispanic neighborhoods in the greater Miami area access to credit, The Mortgage Firm violated the law, denied communities equal access to credit and exacerbated the racial wealth gap. This settlement will provide impacted communities in Miami with expanded access to homeownership, and makes clear that no matter the type of financial institution — bank, credit union or mortgage company — the department is committed to rooting out redlining across the country.”
The Mortgage Firm is a non-depository mortgage company headquartered in Altamonte Springs, Florida. The complaint, filed today in the Southern District of Florida, alleges that The Mortgage Firm violated the Fair Housing Act and Equal Credit Opportunity Act by failing to provide equal access to mortgage lending services to majority- and high-Black and Hispanic neighborhoods in the Miami MSA and discouraging people seeking credit in those communities from obtaining home loans. The Mortgage Firm located its offices in predominantly white neighborhoods and took inadequate steps to market to and develop referral networks within Black and Hispanic neighborhoods. As a result, The Mortgage Firm generated mortgage loan applications in predominantly Black and Hispanic neighborhoods in the Miami MSA at rates far below peer institutions.
The proposed consent order, which awaits court approval, would require The Mortgage Firm to:
Conduct a Community Credit Needs Assessment to identify the credit needs of residents of predominantly Black and Hispanic neighborhoods in the Miami MSA and to consider the results of that assessment to develop future loan programs, marketing campaigns and outreach efforts.
Provide $1.75 million for a loan subsidy program to offer affordable home purchase, refinance and home improvement loans in predominantly Black and Hispanic neighborhoods in the Miami MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance or payment of initial mortgage insurance premiums.
Conduct a detailed assessment of its fair lending program in the Miami MSA, specifically as it relates to fair lending obligations and lending in predominantly Black and Hispanic neighborhoods.
Enhance its fair lending training and staffing to ensure equal access to credit is provided across The Mortgage Firm’s market area, including by maintaining a Director of Community Lending.
Expand its outreach and advertising efforts by maintaining an office location in a majority-Black and Hispanic neighborhood in Miami-Dade County, translating its website into Spanish and requiring all of its loan officers in the Miami MSA to engage in marketing to majority-Black and Hispanic neighborhoods.
Bolster connections with the community and build referral sources in predominately Black and Hispanic neighborhoods by providing four outreach events per year, six financial education seminars per year and partnering with one or more community partner to increase access to credit in predominately Black and Hispanic neighborhoods in the Miami MSA.
The Justice Department opened this investigation into The Mortgage Firm’s lending practices after receiving a referral from the Consumer Financial Protection Bureau. This settlement marks the Justice Department’s 16th redlining settlement under the Combating Redlining Initiative, and the third non-depository institution to reach a redlining settlement with the department. Non-depository lenders, which are not traditional banks and do not provide typical banking services, engage in mortgage lending and now make the majority of mortgages in this country. Under the Combating Redlining Initiative, the department has secured over $153 million in relief for communities of color that have been the victims of lending discrimination. This historic amount of relief is expected to generate over $1 billion in investment to address unequal access to credit in communities of color across the country.
A copy of the complaint and proposed consent order, as well as information about the Justice Department’s fair lending enforcement work, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
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Justice Department Secures Third Settlement with a Non-Depository Mortgage Company to Resolve Redlining Claims in MiamiRead the Press Release
The Justice Department announced today that The Mortgage Firm, Inc. (The Mortgage Firm) agreed to pay $1.75 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach, Florida, Metropolitan Statistical Area (Miami MSA).
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“Non-depository institutions, including mortgage companies, are now originating a higher share of loans to homebuyers than banks and credit unions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this trend comes the obligation to ensure full compliance with our federal laws that prohibit redlining. By denying predominantly Black and Hispanic neighborhoods in the greater Miami area access to credit, The Mortgage Firm violated the law, denied communities equal access to credit and exacerbated the racial wealth gap. This settlement will provide impacted communities in Miami with expanded access to homeownership, and makes clear that no matter the type of financial institution — bank, credit union or mortgage company — the department is committed to rooting out redlining across the country.”
“Our efforts to protect everyone’s civil rights is never ending,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The unlawful practice of lending discrimination is not merely a thing of the past, but persists in this country, to include within the Southern District of Florida. Our office is fully committed in ensuring that every person living in the Southern District of Florida, to include residents in predominantly Black and Hispanic neighborhoods, can achieve the American dream of building wealth through home ownership. We will continue to work with the Civil Rights Division to hold those lenders accountable who engage in unlawful discriminatory practices in our diverse district.”
The Mortgage Firm is a non-depository mortgage company headquartered in Altamonte Springs, Florida. The complaint, filed today in the Southern District of Florida, alleges that The Mortgage Firm violated the Fair Housing Act and Equal Credit Opportunity Act by failing to provide equal access to mortgage lending services to majority- and high-Black and Hispanic neighborhoods in the Miami MSA and discouraging people seeking credit in those communities from obtaining home loans. The Mortgage Firm located its offices in predominantly white neighborhoods and took inadequate steps to market to and develop referral networks within Black and Hispanic neighborhoods. As a result, The Mortgage Firm generated mortgage loan applications in predominantly Black and Hispanic neighborhoods in the Miami MSA at rates far below peer institutions.
The proposed consent order, which awaits court approval, would require The Mortgage Firm to:
- Conduct a Community Credit Needs Assessment to identify the credit needs of residents of predominantly Black and Hispanic neighborhoods in the Miami MSA and to consider the results of that assessment to develop future loan programs, marketing campaigns and outreach efforts.
- Provide $1.75 million for a loan subsidy program to offer affordable home purchase, refinance and home improvement loans in predominantly Black and Hispanic neighborhoods in the Miami MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance or payment of initial mortgage insurance premiums.
- Conduct a detailed assessment of its fair lending program in the Miami MSA, specifically as it relates to fair lending obligations and lending in predominantly Black and Hispanic neighborhoods.
- Enhance its fair lending training and staffing to ensure equal access to credit is provided across The Mortgage Firm’s market area, including by maintaining a Director of Community Lending.
- Expand its outreach and advertising efforts by maintaining an office location in a majority-Black and Hispanic neighborhood in Miami-Dade County, translating its website into Spanish and requiring all of its loan officers in the Miami MSA to engage in marketing to majority-Black and Hispanic neighborhoods.
- Bolster connections with the community and build referral sources in predominately Black and Hispanic neighborhoods by providing four outreach events per year, six financial education seminars per year and partnering with one or more community partner to increase access to credit in predominately Black and Hispanic neighborhoods in the Miami MSA.
The Justice Department opened this investigation into The Mortgage Firm’s lending practices after receiving a referral from the Consumer Financial Protection Bureau. This settlement marks the Justice Department’s 16th redlining settlement under the Combating Redlining Initiative, and the third non-depository institution to reach a redlining settlement with the department. Non-depository lenders, which are not traditional banks and do not provide typical banking services, engage in mortgage lending and now make the majority of mortgages in this country. Under the Combating Redlining Initiative, the department has secured over $153 million in relief for communities of color that have been the victims of lending discrimination. This historic amount of relief is expected to generate over $1 billion in investment to address unequal access to credit in communities of color across the country.
A copy of the complaint and proposed consent order, as well as information about the Justice Department’s fair lending enforcement work, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Justice Department Secures Forfeiture of Two Miami Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
MIAMI – The Department of Justice announced today that, pursuant to a court-ordered default judgment and final order of forfeiture entered on Jan. 7, has secured the forfeiture of two luxury Miami condominiums which were maintained, transferred, and leased in violation of U.S. sanctions against Russian national Viktor Perevalov. The forfeited properties have a combined value of approximately $1.8 million.
The judgment is the result of a civil forfeiture complaint filed by the United States in February 2024 seeking the forfeiture of the properties.
“Today’s successful forfeiture once again demonstrates that the attempt to hide assets behind nominees and shell companies is a risky short-term game with real long-term costs,” said Co-Director Michael Khoo of the Justice Department’s Task Force KleptoCapture. “The prosecutors and agents who investigated and brought this case are the proof that the United States has the people, the tools, and the will to vigorously enforce our nation’s sanctions programs.”
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea. OFAC added Perevalov, Abramov, and VAD, AO to the Specially Designated Nationals (SDN) and Blocked Persons List. OFAC never issued a license which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. Perevalov was re-designated by OFAC on Dec. 18, 2024, pursuant to E.O. 14024 for operating in the construction sector of the Russian economy.
From in or around January 2018 through in or around March 2023, the condominiums were maintained, transferred, and leased in violation of the International Emergency Economic Powers Act (IEEPA). Specifically, on or about June 14, 2018, a Miami real estate agent retained to manage the properties transferred the two condominiums owned by Perevalov to a limited liability company set up to obfuscate Perevalov’s interest in the properties. Following the transfer, the properties continued to be leased, generating proceeds used to maintain them.
The FBI Miami Field Office investigated the case with assistance from the Sunny Isles Beach Police Department.
Assistant U.S. Attorneys Joshua Paster, Marx P. Calderón, and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section prosecuted the civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
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Justice Department Secures Forfeiture of Two Miami Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
The Department of Justice announced today that, pursuant to a court-ordered default judgment and final order of forfeiture entered on Jan. 7, it has secured the forfeiture of two luxury Miami condominiums that were maintained, transferred, and leased in violation of U.S. sanctions against Russian national Viktor Perevalov. The forfeited properties have a combined value of approximately $1.8 million.
The judgment is the result of a civil forfeiture complaint filed by the United States in February 2024 seeking the forfeiture of the properties.
“Today’s successful forfeiture once again demonstrates that the attempt to hide assets behind nominees and shell companies is a risky short-term game with real long-term costs,” said Co-Director Michael Khoo of the Justice Department’s Task Force KleptoCapture. “The prosecutors and agents who investigated and brought this case are the proof that the United States has the people, the tools, and the will to vigorously enforce our nation’s sanctions programs.”
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea. OFAC added Perevalov, Abramov, and VAD, AO to the Specially Designated Nationals (SDN) and Blocked Persons List. OFAC never issued a license, which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. Perevalov was also re-designated by OFAC on Dec. 18, 2024, pursuant to E.O. 14024, for operating in the construction sector of the Russian economy.
From in or around January 2018 through in or around March 2023, the condominiums were maintained, transferred, and leased in violation of the International Emergency Economic Powers Act (IEEPA). Specifically, on or about June 14, 2018, a Miami real estate agent retained to manage the properties transferred the two condominiums owned by Perevalov to a limited liability company set up to obfuscate Perevalov’s interest in the properties. Following the transfer, the properties continued to be leased, generating proceeds used to maintain them.
The FBI Miami Field Office investigated the case with assistance from the Sunny Isles Beach Police Department.
Assistant U.S. Attorneys Joshua Paster, Marx P. Calderón, and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section prosecuted the civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Justice Department Modernizes Process that Federal Agencies Use to Acquire Real PropertyRead the Press Release
The Justice Department today announced the completion of a major effort to modernize the process that federal agencies use to acquire real property. Over the past two years, the Justice Department’s Environment and Natural Resources Division (ENRD) has collaborated with attorneys throughout the federal government to identify outdated provisions in delegations of authority previously issued by the Justice Department between 1970 and 1991.
As a result of that effort, on Dec. 10, 2024 — pursuant to 40 U.S.C. § 3111(b) — Assistant Attorney General Todd Kim of ENRD issued 10 revised delegations of title review authority to land-acquiring federal agencies. These revised delegations should reduce the unnecessary duplication of effort by agency and Justice Department staff, promoting government efficiency and saving taxpayer funds.
Before the United States may acquire real property, 40 U.S.C. § 3111 requires that the Attorney General must first determine that the purchase will include sufficient title for the United States to use the property as intended. In 1970, because most land-acquiring agencies already employed legal staff qualified to review title evidence and make that determination, Congress authorized the Justice Department to delegate title review responsibility, allowing agency counsel to approve sufficiency of title on behalf of the Attorney General subject to Justice Department supervision and regulation. The Attorney General, through the Assistant Attorney General, subsequently delegated title review authority to 10 different land-acquiring agencies.
Many provisions of the original delegations are outdated, including references to since-replaced regulations and a now-unnecessary restriction on agency approval of title in certain acquisitions valued at more than $100,000. Additionally, since 1970, Congress has dissolved one affected agency, the Atomic Energy Commission, and administratively transferred another, the United States Coast Guard. The revised delegations address these issues, incorporating the Regulations of the Attorney General Governing the Review and Approval of Title for Federal Land Acquisitions (2016), eliminating the $100,000 limitation on certain acquisitions and identifying the modern version of each relevant agency.
“The revised delegations will enhance the productive working relationship that the Justice Department has always maintained with its agency partners, ensuring that each land acquisition complies with federal law while also promoting government efficiency and the conservation of taxpayer resources,” said Assistant Attorney General Kim. “This was a years-long project that will have a tangible effect on thousands of real property acquisitions by the federal government every year. I want to thank not only the Justice Department attorneys involved in this project, but also those throughout the entire federal government who contributed their ideas, experience, and expertise.”
The following agencies received revised delegations of authority: the Department of Agriculture, Department of the Army, Department of Energy, Department of Homeland Security, Department of the Interior, Department of the Navy, Department of Transportation, Department of Veterans Affairs, the General Services Administration and the U.S. Section of the International Boundary and Water Commission.
ENRD’s Land Acquisition Section — including Section Chief Andrew M. Goldfrank, Division Counsel for Title Matters Georgia Garthwaite and Trial Attorney Ben McMurtray — led the effort.
Justice Department Launches 2025 Access to Justice Prize to Address the Rural Justice GapRead the Press Release
The Justice Department’s Office for Access to Justice today announced the launch of the Access to Justice Prize, a year-long prize competition that aims to foster innovative solutions to address critical gaps in access to justice across the United States. The inaugural competition will focus on access to justice gaps faced by rural communities across the country, aiming to advance general public awareness about rural access to justice gaps; prompt and support the development of new and innovative solutions; and promote the replication and expansion of strategies that work.
“Through our engagement with courts, justice practitioners, legal aid providers, academic institutions and other organizations across the country, we’ve heard loud and clear that solutions to close the rural justice gap must begin with rural communities themselves,” said Director Rachel Rossi of the Justice Department’s Office for Access to Justice. “Through the Access to Justice Prize competition, we further this approach, empowering those who best know the barriers their communities face to drive the effective solutions that will ensure access to justice for all, regardless of geography.”
Nationwide access to justice barriers are often exacerbated for rural Americans, especially when unique circumstances like long travel times, limited internet access or lack of attorneys are too often overlooked. A 2022 study by the Legal Services Corporation revealed that 77% of low-income rural households experienced at least one civil legal problem in the previous year, with 94% receiving inadequate or no legal help. Additionally, rural criminal justice systems are strained by part-time judges, contract defense counsel and lacking prosecutorial resources. Studies demonstrate that recruitment and retention challenges are increasing for criminal justice careers in rural areas, including for public defenders, prosecutors and law enforcement. And rural courts face rising caseloads, delay, uneven workloads among judges and lack of resources.
The 2025 Access to Justice Prize aims to inspire and support innovative ideas that address these challenges by engaging those closest to the issues — rural courts, practitioners and organizations. Eligible participants are encouraged to submit proposals for any solutions that expand access to justice, including, for example, solutions to:
- Increase access to legal representation, assistance or information;
- Simplify legal processes, systems, forms or language;
- Leverage technology to enhance legal system efficiency;
- Expand access for underserved rural populations, including Tribal communities and individuals with disabilities; and
- Build innovative partnerships to address local justice needs.
More information and additional examples can be found here. The competition will run on a one-year cycle, starting in January 2025, and will feature two judging phases:
- Finalist Selection: Up to five finalists will receive $5,000 each and then refine their proposals over a six-month phase in preparation to compete for the grand prize.
- Grand Prize Selection: Finalists will present their solutions at an Access to Justice Showcase, where judges will select the grand prize winner to receive $50,000.
Below is the timeline for the year-long Access to Justice Prize competition cycle:
- Jan. 7: Submissions open
- March 31: Submission deadline
- April 30: Finalists announced
- May 1 – Oct. 31: Refinement Phase
- Early December 2025: Grand Prize Showcase and winner announcement
Applicants are encouraged to visit the Access to Justice Prize website on Challenge.gov to review eligibility requirements, submission guidelines, and resources. The Office for Access to Justice will also present an informational webinar on Feb. 11 at 3:00 PM EST. Applications may be submitted beginning on Jan. 7 and must be received by 11:59 PM EST on March 31.
The Access to Justice Prize competition continues the ongoing work of the Office for Access to Justice to engage with and support rural communities in closing the justice gap. This includes the publication of resources to support rural access to justice; a focus on economic barriers faced by rural communities; and broad engagement with rural-focused court leaders, access to justice commissions, initiatives (including the Kansas Rural Justice Initiative Committee and the Alaska Legal Services Corporation’s Community Justice Workers project), criminal justice practitioners, civil legal aid providers, pro bono volunteers and more.
Entities and organizations are encouraged to also review their eligibility for Justice Department grant funding opportunities that may support rural justice initiatives and programs, including those specifically focused on rural jurisdictions, such as the Rural Program administered by the Office on Violence Against Women and the Rural Violent Crime Reduction Initiative administered by the Office of Justice Programs.
Justice Department Files Voting Rights Suit Against City of Hazleton, PennsylvaniaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the City of Hazleton, Pennsylvania, to challenge the city council’s at-large method of election.
The lawsuit alleges that the city’s current at-large method of electing city council members results in Hispanic citizens having less opportunity than other members of the electorate to participate in the political process and to elect candidates of choice, in violation of Section 2 of the Voting Rights Act. Hispanic voting-age citizens make up more than 40% of the city’s electorate. Hispanic-preferred candidates have run for the city council and routinely lose, despite the county’s sizeable Hispanic citizen population.
“The Voting Rights Act is an important tool to ensure that underrepresented citizens have an equal opportunity to choose their elected officials,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that all citizens have an equal opportunity to participate in the democratic process and elect candidates of choice. We look forward to working with officials to achieve a more perfect union by bringing Hazleton, Pennsylvania, into compliance with the Voting Rights Act.”
“The Hispanic population is a growing and important population in the City of Hazelton, and those citizens should have the ability to choose candidates that represent their interests,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “This complaint demonstrates my office’s commitment to partner with the Justice Department to enforce civil rights statutes like the Voting Rights Act.”
The complaint, filed in the U.S. District Court for the Middle District of Pennsylvania, alleges that changing the method of election can create opportunities for Hispanic voters to elect candidates of their choice to the Hazleton City Council. For example, by electing councilmembers from single-member districts, Hispanic voters would have an opportunity to elect at least two members of the five-member city council. The lawsuit seeks a federal court order implementing a new method of electing the Hazleton City Council.
The Justice Department looks forward to continued discussions with the City of Hazleton toward resolution of this matter.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Jury convicts South Texan for transporting people in the tractor’s cabRead the Press Release
CORPUS CHRISTI, Texas – A 26-year-old Edinburg man has been convicted of unlawfully transporting an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for an hour and a half following a less than two-day trial before finding Lisandro Vasquez-Gomez guilty.
On Aug. 29, 2024, Vasquez-Gomez drove to the Falfurrias Border Patrol checkpoint where he told authorities he was hauling an empty trailer and was heading to Houston. He denied having any passengers in his vehicle. However, a K-9 alerted to the cab of the tractor where law enforcement located five people illegally present in the United States hidden behind the driver.
At trial, the jury heard from some of those being transported who explained that smugglers had driven them to a remote area where a tractor-trailer was waiting. They did not see the driver, but the vehicle began moving shortly after they were concealed in the sleeper berth.
The defense attempted to convince the jury that authorities failed to fully investigate the smuggling attempt and that Vasquez-Gomez was simply hauling a decoy smuggling load. They did not believe those claims and found him guilty as charged on all three counts.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for April 8, at which time Vasquez-Gomez faces up to five years in federal prison.
He was permitted to remain on bond pending that hearing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Patrick Overman, Ashley A. Pruitt and Liesel Roscher prosecuted the case.
Jefferson County man sentenced for drug trafficking in Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced for drug trafficking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Francisco Manuel Magdaleno, 41, was convicted at trial of conspiracy to distribute and possession with intent to distribute methamphetamine. Magdaleno was sentenced to 265 months in federal prison by U.S. District Judge Marcia A. Crone on January 7, 2025.
According to information presented in court, from February 2019 through May 2022, Magdaleno was involved in a conspiracy to traffic methamphetamine from Michoacán, Mexico, through Beaumont, Texas, and into areas throughout the United States. More than 20 known co-conspirators were a part of the conspiracy that included the Magdaleno drug trafficking organization.
The investigation revealed that Magdaleno played a central role in obtaining more than ten thousand grams of methamphetamine and distributing that methamphetamine to areas throughout Texas, Louisiana and Florida. Evidence obtained at trial revealed that Magdaleno was also a multi-kilogram distributor of cocaine.
This is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. 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 was investigated by the U.S. Drug Enforcement Administration, Beaumont HIDTA Task Force, Beaumont Police Department, Texas Department of Public Safety-CID, Jefferson County Sheriff’s Office, and Chambers County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Jonathan Lee and Rachel Grove.
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