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17 January 2025
Mexican National Extradited to the United States for Involvement in an International Human Smuggling OperationRead the Press Release
Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities resulted in the extradition of a human smuggler who allegedly participated in an international human smuggling conspiracy.
Monica Hernandez-Palma, also known as Moni, 32, a Mexican national, was arrested in Mexico pursuant to a U.S. request for her extradition and surrendered by Mexico to U.S. authorities yesterday to face charges previously filed in the Western District of Texas. Hernandez-Palma made her initial appearance today in the Western District of Texas, where an indictment against her was unsealed.
According to the indictment, beginning in November 2020 and continuing through September 2023, Hernandez-Palma conspired with others to bring and attempt to bring migrants to the United States illegally for commercial advantage and private financial gain.
Hernandez-Palma is charged with one count of conspiracy to bring a migrant to the United States at a place other than a designated port of entry and three counts of bringing a migrant to the United States without authorization and for purpose of commercial advantage and private financial gain. If convicted, she faces a maximum sentence of 10 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Jaime Esparza for the Western District of Texas; and Special Agent in Charge Craig S. Larrabee of Homeland Security Investigations (HSI) San Antonio made the announcement.
The Office of the Assistant Special Agent in Charge HSI Del Rio investigated this case, with assistance from the U.S. Border Patrol Del Rio Sector, HSI Human Smuggling Unit in Washington, D.C., and Customs and Border Protection’s National Targeting Center.
Trial Attorney Jenna Reed of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Holly Pavlinski for the Western District of Texas are prosecuting the case.
The Justice Department’s Office of International Affairs (OIA) provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The Justice Department thanks its Mexican law enforcement partners, who were instrumental in arresting and extraditing Hernandez-Palma.
The investigation and prosecution of Hernandez-Palma is being coordinated through the Justice Department Criminal Division’s Joint Task Force Alpha (JTFA). JTFA was created in June 2021 by Attorney General Merrick B. Garland, in partnership with Secretary of Homeland Security Alejandro N. Mayorkas, to strengthen the Justice Department’s efforts to combat the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, Department of Homeland Security, and other U.S. law enforcement agencies, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most impact on the United States; and coordinated significant human smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. In June, the initiative was expanded to Colombia and Panama to combat human smuggling in the Darién. JTFA is comprised of detailees from southwest border U.S. Attorneys’ Offices, including the Southern and Western Districts of Texas, District of New Mexico, District of Arizona, and Southern District of California. Dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA, led by HRSP and supported by the Office of Overseas Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; OIA; and Violent Crime and Racketeering Section.
This investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or raise grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Methamphetamine Trafficker on Federal Supervised Release Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Russell Javon Linney, 34, of Statesville, N.C. was sentenced today to 135 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in January 2023, the ATF initiated an investigation into Linney’s drug trafficking activities. During the investigation, court documents show that undercover ATF agents purchased methamphetamine from Linney multiple times. During one of the drug buys, Linney sold nearly a pound of methamphetamine to an undercover ATF agent in South Carolina. At the time, Linney was on federal supervised release for a firearms conviction in the Western District of North Carolina.
On August 8, 2024, Linney pleaded guilty to distribution of methamphetamine. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the ATF for the investigation of the case.
Special Assistant U.S. Attorney (SAUSA) William Wiseman prosecuted the cases. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United
Mercer Island, Washington man sentenced to home incarceration for sexual assault of teen on aircraft flying to Seattle from AtlantaRead the Press Release
Seattle – A 72-year-old Mercer Island, Washington man was sentenced today in U.S. District Court in Seattle to 10 years of supervised release during which two years must be served as home incarceration for Attempted Sexual Abuse of a Minor in Special Aircraft Jurisdiction and Abusive Sexual Contact in Special Aircraft Jurisdiction, announced U.S. Attorney Tessa M. Gorman. Munir Walji was convicted following a four-day jury trial in September 2024. At the sentencing hearing U.S. District Judge Tana Lin said Walji’s conduct “called for a term of incarceration.” However, Judge Lin noted Walji’s extremely poor health. “But for your medical conditions I would impose a prison sentence. But I am deeply concerned that a prison sentence would be a death sentence.”
“This defendant unbuckled the seat belt of the teen sleeping next to him in the confines of an aircraft, and reached inside her pants, attempting to reach her genitals,” said U.S. Attorney Gorman. “This is shocking conduct that traumatized the victim and impacted her family. We will continue to prosecute these cases demonstrating our commitment to holding these perpetrators accountable.”
According to records in the case and testimony at trial, on November 10, 2021, Walji was seated in the aisle seat next to the 15-year-old victim on a Delta Airlines flight from Atlanta to Seattle. The victim’s mother was in the window seat.
As the flight neared arrival in Seattle the victim felt a hand on her leg, waking her. She moved away from Walji and tried to go back to sleep. But the touching became more aggressive with Walji rubbing her thigh, and then unbuckling her seatbelt and reaching inside the waistband of her pants and underwear. The victim said something causing Walji to stop.
The flight attendants responded to the row when the mother pushed the call button. They moved the mother and victim to a different row. Law enforcement was notified, and Walji was arrested upon arrival in Seattle.
In asking for the 30-month sentence recommended by federal pretrial officers, prosecutors wrote to the court, “Despite Walji’s history of family support, opportunity, and career success, he chose to engage in behavior worthy of society’s condemnation. He chose to take advantage of a sleeping 15-year-old girl on a plane who did not know how to respond to this adult male’s nonconsensual sexual advances.”
Walji’s attorneys cited his “severe persistent health problems” including blood cancer and reduced lung function that requires him to take 20 medications per day. Being in a congregate setting would be life threatening, according to Walji’s attorneys.
Prosecutor Laura Harmon countered that at this juncture it was unknown whether BOP could meet Walji’s medical needs. BOP has facilities with high level medical care for cancer patients.
Judge Lin concluded that even though prison was warranted, she was not willing to take the risk that the Bureau of Prisons could not meet his medical needs. Judge Lin also imposed a $5,000 fine and ordered Walji to register as a sex offender.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorney Brian Wynne and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation and sex crimes in federal court.
Maryland Man Convicted of Drug Trafficking and Multiple Firearms ChargesRead the Press Release
Greenbelt, Maryland – After a four-day trial, a federal jury returned a guilty verdict, convicting Thomas Emmanuel Williams, 52, of Laurel, Maryland, on 12 federal charges related to drug and firearms trafficking.
Erek L. Barron, U.S. Attorney for the District of Maryland, announced the conviction with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to the evidence at trial, in January and February 2023, the defendant illegally sold 10 firearms, three machineguns, ammunition, and hundreds of oxycodone, codeine, and fentanyl pills to an undercover law-enforcement source. Williams sold several privately made firearms that didn’t have serial numbers, and so-called “Glock switches,” designed to convert semi-automatic Glock-style pistols into fully automatic firearms.
The Defendant arranged to sell the drugs and guns to the source on four different dates through FaceTime and phone calls. Williams met with the undercover source in shopping-center parking lots in Laurel and Hyattsville, Maryland, to sell guns, ammunition, and drugs in exchange for thousands of dollars in cash.
The firearms sold included a Hi Point 45 ACP Pistol and 9mm Rifle, Taurus 85 Ultra Lite .38 Special Revolver, two AR-style 5.56mm pistols, a Glock 21 .45 Auto Pistol, and a Glock 43 9mm Pistol, along with three “Glock switches” which are classified as machineguns under federal law.
Williams faces a minimum sentence of 30 years in federal prison. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Theodore D. Chuang scheduled sentencing for April 17, 2025.
U.S. Attorney Barron commended the ATF for their work in the investigation and ATF special agents Christopher Szakolczai and Katherine Rottman who conducted the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Darren S. Gardner and Dawn Williams who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Marion Man Sentenced to Federal Prison for Possessing Firearms as a Felon on Multiple OccasionsRead the Press Release
A man who unlawfully possessed firearms was sentenced today to more than two years in federal prison.
Yasir Jinnah, age 33, from Marion, Iowa, received the prison term after an August 13, 2024, guilty plea to one count of possession of a firearm by a prohibited person.
In a plea agreement, Jinnah admitted that on February 13, 2023, March 31, 2023, and April 26, 2024, he knowingly possessed firearms as a felon and as an unlawful user of marijuana. In May 2012, Jinnah was convicted in Illinois state court of unlawful sale of a firearm, a felony. As a felon, Jinnah is prohibited from possessing a firearm.
During 2023 and 2024, Jinnah posted photos and videos to social media of himself possessing firearms, shooting firearms, possessing marijuana, and smoking marijuana.
On February 13, 2023, Jinnah’s car was stopped for a traffic violation on Interstate 80 by a trooper with the Iowa State Patrol. After a drug dog alerted on the car, the trooper searched the car and found a loaded Glock 9mm pistol in the center console and three loaded 30-round 9mm magazines in a backpack on the rear seat.
On March 31, 2023, during the execution of a search warrant at Jinnah’s residence in Cedar Rapids, Iowa, officers found in bedroom nightstands two loaded Glock 9mm caliber pistols and four additional fully loaded 9mm magazines. Officers also found in the bedroom seven additional Glock 9mm magazines along with 137 rounds of 9mm ammunition. In the kitchen, officers found a loaded Beretta .40 caliber pistol and three additional loaded .40 caliber magazines.
On April 26, 2024, during the execution of a search warrant at Jinnah’s residence in Marion, Iowa, officers found in a bedroom a loaded Glock 9mm caliber pistol and an additional magazine containing 15 rounds of 9mm ammunition, and a loaded Smith & Wesson 9mm caliber pistol and an additional magazine containing 10 rounds of 9mm ammunition. Officers also found a bag with five additional magazines containing 109 rounds of 9mm ammunition. In a hallway closet, officers found a Maverick Arms 12-gauge shotgun along with 10 rounds of 12-gauge ammunition.
Jinnah was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Jinnah was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jinnah is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department, the Marion Police Department, the Iowa State Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-30.
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Manufacturing Company to Pay over $4.1 Million to Resolve Allegations It Received Paycheck Protection Program Loan in Violation of Employee Size RulesRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten announced today that Horn USA, Inc., a precision tool manufacturing company, has agreed to pay $4,153,111.12 to resolve allegations that it violated the False Claims Act by falsely obtaining a second-draw Paycheck Protection Program (PPP) loan for which it was ineligible.
“The Paycheck Protection Program provided important relief that was limited to entities that met the eligibility criteria,” said U.S. Attorney Mark Totten. “My office remains committed to working with the Small Business Administration to investigate fraud on its programs and protect taxpayer dollars.”
When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020 it enacted a program to provide emergency financial assistance to individuals and businesses suffering economic and public health effects caused by the COVID-19 pandemic. In 2021, the American Rescue Plan Act (ARPA) continued the CARES Act’s loan program administered by the Small Business Administration (SBA) and created a second-draw PPP loan that allowed eligible businesses that had previously received a PPP loan to apply for a second loan. As one condition to second-draw loan eligibility, the applicant company and its affiliates must have had no more than 300 employees collectively.
In January of 2021, Horn USA, Inc. applied for and received a $2,000,000 second-draw PPP loan, which SBA subsequently forgave. The United States alleges that Horn USA, Inc. was ineligible for this loan because the company and its affiliates had over 300 employees and thus exceeded the size standard.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Horn USA, Inc. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement or judgment. Here, the United States elected to take over the case, investigated it, and negotiated the settlement. The qui tam case is captioned U.S. ex rel. GNGH2 Inc. v. Horn USA, Inc., No. 1:24-cv-196 (W.D. Mich.).
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 the SBA. Assistant United States Attorney Whitney M. Schnurr investigated this case.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Manitowoc Sex Offender Sentenced to 25 Years in Federal Prison for Receipt of Child PornographyRead the Press Release
United States Attorney Gregory J. Haanstad announced that on January 17, 2025, Robert D. Nytes (age: 49) of Manitowoc, Wisconsin, was sentenced to 300 months in federal prison by Senior United States District Judge William C. Griesbach for receipt of child pornography.
According to court records, Nytes is a lifetime registrant on the Wisconsin Sexual Offender Registry based on a 1995 Second Degree Sexual Assault of a Child conviction in Sheboygan County. In August of 2023, law enforcement was informed that Nytes repeatedly sexually assaulted a minor and used the child to create pornography which he then uploaded to the cloud for receipt on his various electronic devices. Nytes was then charged with and pled guilty to a federal charge of receipt of child pornography.
At the sentencing hearing, Judge Griesbach said his crime was horrendous. The judge also noted the profound effects that Nytes had imposed upon his victim. The judge also pointed to Nytes’ history of abusing children. Ultimately, the judge determined that a sentence of 300 months in federal prison was a fair and just sentence reflective of the severity of the crime. Upon the completion of his federal prison sentence, the defendant will spend the remainder of his life on supervised release. He will also continue to be required to register as a sex offender under state and federal law.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Man Who Sexually Assaulted Teen Girl Sentenced to 20 Years for KidnappingRead the Press Release
A 46-year-old man who raped a 14-year-old on video while his friend filmed the assault was sentenced Wednesday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Lukumond Adebola Olatunji, 46, and his coconspirator, Vincent Jerome Thompson, 42, were indicted in January 2022. Mr. Thompson pleaded guilty in June 2024 to production of child pornography and aiding and abetting; two months later, Mr. Olatunji pleaded guilty to kidnapping a minor.
Mr. Olatunji was sentenced Wednesday by U.S. District Judge Ed Kinkeade to 240 months in federal prison, and ordered to register as a sex offender. Mr. Thompson received the same sentence in October.
According to plea papers, the men admit that on Oct. 23, 2021, they approached a 14-year-old girl and offered her a ride home. They then drove to an alleyway where Mr. Olatunji sexually assaulted her in the backseat of the car. Mr. Thompson recorded the assault on his cell phone, providing commentary as the assault progressed.
On the video, the child can be heard saying, “I don’t want to do it no more,” and “can we go?”
The pair then took the child to a nearby motel, where both men continued to sexually assault her. After approximately five hours inside the motel room, the child ran out of the room carrying her backpack and shoes. Police responded and searched the motel room, where they found condom wrappers and drug paraphernalia.
In interviews with law enforcement, both men admitted to engaging in sexual intercourse with the child. Mr. Olatunji admitted that the child repeatedly told them that she did not want to have sex anymore.
Homeland Security Investigation’s Dallas Field Office and the Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Michelle A. Winters, Jenna Rudoff (fmr.), and Joe Magliolo (fmr.) are prosecuting the case.
Man Sentenced for Transporting Child Sexual Abuse MaterialsRead the Press Release
San Antonio, Texas – A Floresville man was sentenced yesterday to 200 months in prison for transporting child sexual abuse material to others.
According to court documents, Jeremy Michael Prieto, 34 years old, transported child sexual abuse material to others, including to an undercover FBI account. Prieto has been trafficking in child sexual exploitation material since at least 2016 and demonstrated a sexual interest in children for most of his life. Prieto had thousands of files on multiple devices. Prieto was ordered to serve lifetime on supervised release, and pay $100,000 in restitution to 20 victims of his offense. He was also ordered to forfeit the devices and accounts used to traffic the child sexual abuse material.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
Los Angeles-Area Man Pleads Guilty to Fraudulently Seeking Millions of Dollars in COVID-Related Tax Credits for Nonexistent BusinessRead the Press Release
LOS ANGELES – A Los Angeles-area man pleaded guilty today a federal felony charge and admitted to seeking more than $65 million from the IRS by falsely claiming on tax returns that his nonexistent farming business was entitled to COVID-19-related tax credits.
Kevin J. Gregory, 57, pleaded guilty to one count of making false claims to the IRS. Gregory has been in federal custody since May 2023.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit.”
To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
According to his plea agreement, from November 2020 to April 2022, Gregory made false claims to the IRS for the payment of nearly $65.4 million in tax refunds for a purported Beverly Hills-based farming-and-transportation company named Elijah USA Farm Holdings.
The IRS issued a portion of the refunds Gregory claimed, and Gregory used that portion – more than $2.7 million – for personal expenses.
Specifically, in January 2022, Gregory made a false claim to the IRS for the payment of a tax refund in the amount of $23,877,620, which he submitted as part of Elijah Farm’s quarterly federal tax return. Gregory claimed Elijah Farm employed 33 people, paid nearly $1.6 million in quarterly wages, had deposited nearly $18 million in federal taxes, and was entitled to nearly $6.5 million in COVID-relief tax credits.
In fact, Gregory knew that Elijah Farm employed nobody and paid wages to no one and had not made federal tax deposits to the IRS in the amounts stated on his tax return.
United States District Judge Josephine L. Staton scheduled a May 16 sentencing hearing, at which time Gregory will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section is prosecuting this 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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF online complaint form.
Little Rock Woman Sentenced to 15 Years in Federal Prison After Transporting Stolen Human RemainsRead the Press Release
LITTLE ROCK—Candace Chapman Scott, 37, of Little Rock, will serve a total of 15 years in federal prison for transporting stolen human body parts—including fetuses—out of Arkansas and conspiracy to commit mail fraud. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Thursday, January 16, 2025, by United States District Judge Brian S. Miller.
The investigation revealed that Scott, while an employee at a mortuary services provider between October 2021 through approximately July 15, 2022, stole human body parts and fetal remains. Scott would then sell the body parts and fetal remains to a purchaser in Pennsylvania.
The investigation revealed that Scott met the Pennsylvania purchaser through a Facebook group that openly discussed the sale of body parts. Ultimately, Scott sent the purchaser 24 boxes containing stolen human remains that she acquired at the mortuary provider, including two fetuses. Scott acknowledged in communications with the purchaser that ashes from other cremated bodies would be returned to the parents of the deceased fetuses, instead of ashes from their child.
The remains included a skull, multiple brains, an arm, an ear, multiple lungs, multiple hearts, multiple breasts, a belly button, testicles, and other parts. During a search warrant executed at Scott’s Little Rock home, investigators found numerous stolen body parts that she admitted she transported in trash bags from her work. Scott received a total of $10,625 from the purchaser in Pennsylvania for the human remains.
“Imagine learning that the cremated remains of your child given to you after their death were not actually those of your child, because instead the FBI recovered the body of that child in another state. That is the shocking truth that happened in this case for the family of “Baby Lux,” stated Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Baby Lux was named ‘Lux Siloam,’ which means ‘light sent,’ and now his light has illuminated an evil and dark underworld of criminals who engage in the trafficking of stolen human bodies and body parts. And with help from the powerful testimony of Baby Lux’s mother and grandmother at yesterday’s sentencing hearing, the criminal responsible for the theft and trafficking of the bodies and body parts of many Arkansas victims, including Baby Lux, has been held accountable. Let today’s sentence stand as a warning to anyone else committing these crimes that our office will spare no effort to find you, arrest you, and seek the harshest penalty under the law.”
“This was a truly incomprehensible and detestable crime,” said Federal Bureau of Investigation Little Rock Special Agent in Charge Alicia D. Corder. “This sentencing does not reverse the immeasurable damage that has been caused to the victimized families, however, the FBI and our partners will continuously work to ensure justice is served for all.”
Judge Miller sentenced Scott to 10 years in federal prison for interstate transportation of stolen property and 15 years in prison for conspiracy to commit mail fraud. Scott will serve both sentences concurrently for a total of 15 years. Judge Miller also sentenced Scott to a total of three years’ supervised release, a fine of $10,625, and restitution in the amount of $1,800. There is no parole in the federal system.
Scott was indicted on April 5, 2023, and pled guilty to conspiracy to commit mail fraud and interstate transportation of stolen property on April 25, 2024.
The case was investigated by the FBI and the Arkansas State Police, with assistance from the United States Postal Inspection Service, the Pulaski County Coroner’s Office, and the East Pennsboro Township Police Department (Pennsylvania). This case was prosecuted by Assistant United States Attorneys Amanda Jegley and Michael Gordon.
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Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
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Lead Defendants of Prolific Human Smuggling and Money Laundering Network Sentenced in Joint Task Force Alpha InvestigationRead the Press Release
A Texas woman and man were sentenced to 121 months and 135 months in prison and ordered to pay money judgments of $942,537.00 and $438,119.00, respectively, this week for their roles as the leaders of a human smuggling organization (HSO) that conspired to illegally transport, harbor, and conceal from law enforcement hundreds of undocumented individuals in the United States and launder the proceeds of their illicit human smuggling.
“The two defendants sentenced in this case were leaders of a human smuggling operation that endangered vulnerable migrants for profit,” said Attorney General Merrick B. Garland. “Since I directed the formation of Joint Task Force Alpha (JTFA) in 2021, the Justice Department has combatted the threats posed by dangerous human smuggling networks where they originate and operate. Since then, the Justice Department has made over 345 domestic and international arrests and secured 290 convictions.”
“As these sentencings make clear, human smugglers will ruthlessly and dangerously exploit vulnerable people for profit — intending migrants should not believe their false promises of safety and opportunity,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The Department of Homeland Security (DHS) will continue to work with our federal, state, and international partners to help track down these criminals, disrupt their illegal operations, and bring them to justice — the integrity of our lawful, orderly immigration system demands it.”
“The defendants exploited vulnerable migrants by leading a scheme to unlawfully transport them across the U.S. border, using dangerous methods that risked the migrants’ lives in order to evade detection,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Because of illegal operations like this one, more than three years ago we launched JTFA to combat the most prolific and harmful human smuggling organizations. The sentences and forfeitures announced today underscore the Criminal Division’s commitment to working with its JTFA partners to disrupt and dismantle smuggling networks that callously endanger human life for profit.”
“Confining individuals, including minors, in coffin-like spaces with no room to move or breathe, reveals this organization’s complete disregard for human life,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Those who profit from such human suffering will face justice, and their ill-gotten gains will be stripped away to ensure that crime does not pay.”
According to court documents, Erminia Serrano Piedra, also known as Irma and Boss Lady, 33, and Oscar Angel Monroy Alcibar, also known as Pelon, 41, were leaders of an illegal HSO that unlawfully transported, harbored, and concealed from law enforcement the detection of hundreds of undocumented individuals in the United States. These individuals were citizens of Mexico, Guatemala, Colombia, and elsewhere and they or their families paid members of the HSO to help them travel illegally to and within the United States. Serrano Piedra’s role included directing the operations of the HSO, recruiting members, ordering payments to be made related to the organization’s operation, and instructing members of the HSO to be lookouts for law enforcement. Monroy Alcibar coordinated the smuggling of undocumented individuals and movement of financial proceeds for the HSO.
The HSO used drivers to pick up undocumented individuals near the U.S.-Mexico border and transport them further into the interior of the United States, often harboring them at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers for the HSO used various dangerous methods to transport undocumented individuals, including hiding them in suitcases placed in pickup trucks, cramming them in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers, and wooden crates strapped to flatbed trailers. The methods used by the HSO to transport undocumented individuals placed their lives in danger, as they were frequently held in contained spaces with little ventilation, which became overheated and made it difficult to breathe, and they were driven at high speeds with no vehicle restraints in the back of trucks and tankers. Members of this HSO commonly referred to the undocumented individuals as “boxes,” “packages,” or “pieces.” Typically, the fee paid to the organization was approximately $8,000, with $3,000 paid up front to smugglers in Mexico and the remainder paid once the undocumented individuals entered the United States.
Further, Serrano Piedra and Monroy Alcibar have admitted in court documents that they conspired to engage in financial transactions designed to conceal the nature, location, source, ownership, and control of ill-gotten proceeds of illicit human smuggling and the unlawful harboring and transportation of undocumented individuals. The leaders of the organization recruited and utilized straw persons to accept human smuggling proceeds in the straw persons’ bank accounts and then transferred these proceeds to the leaders under the pretense of work payments. The defendants also established businesses and opened business accounts in order to transfer the human smuggling proceeds. In addition, the defendants recruited individuals in the construction industry who accepted human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts. Serrano Piedra and Monroy Alcibar, both leaders of the HSO, have admitted in court documents that they made significant money from their involvement in human smuggling. Moreover, Serrano Piedra admitted she was going to continue doing this for her lifetime and was not planning to retire.
In addition to the terms in prison, the court entered orders of criminal forfeiture of two properties belonging to one or both of these defendants, which were purchased with the illicit proceeds of human smuggling, recently estimated to have the value of approximately $2,275,000 and $515,000.
Serrano Piedra and Monroy Alcibar were originally charged by indictment in August 2022 and then by superseding indictment in August 2023. Serrano Piedra pleaded guilty on Jan. 4, 2024, to conspiracy to transport and move illegal aliens, transporting aliens for commercial and private financial gain and placing the lives of aliens in jeopardy while doing so, and conspiracy to launder money. Monroy Alcibar pleaded guilty on Jan. 9, 2024, to the same charges.
Including Serrano Piedra and Monroy Alcibar, 14 co-conspirators have been sentenced for their various roles in the HSO, including some for laundering illicit proceeds. The sentences ranged up to 135 months in prison, with money judgments totaling over $2.3 million and forfeiture of interests in real property, including residences located in Bastrop and Elgin, Texas. One other co-conspirator still awaits sentencing.
DHS Office of Inspector General, Homeland Security Investigations (HSI) Laredo, and Customs and Border Protection (CBP)’s U.S. Border Patrol Laredo Sector led U.S. investigative efforts on the case. HSI offices in Austin, San Antonio, Waco, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; and HSI’s Human Smuggling Unit in Washington, D.C.; along with CBP’s National Targeting Center; U.S. Marshals Service; U.S. Immigration and Customs Enforcement Enforcement and Removal Operations — Austin; the Treasury Executive Office for Asset Forfeiture; Police Departments in Laredo, Killeen, Elgin, and Round Rock, Texas, as well as Wiggins, Missouri and Bogalusa, Louisiana; the Webb County Constable’s Office; Webb County District Attorney’s Office; Sheriff’s Offices in Webb, Bastrop, and Caldwell County, Texas, Harrison County, George County, and Stone County, Mississippi, and Mobile County, Alabama; Jefferson Parish and Washington Parish, Louisiana; Mississippi Bureau of Narcotics, and Louisiana State Police provided substantial assistance with the investigation.
Trial Attorneys Christian Levesque and Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney and JTFA Deputy Director Daria Andryushchenko of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), MLARS Financial Investigator Kelly O’Mara, and JTFA member Assistant U.S. Attorney Jennifer Day for the Southern District of Texas are prosecuting the case, with substantial assistance from the Electronic Surveillance Unit of the Criminal Division’s Office of Enforcement Operations.
This and related convictions of co-conspirators are the result of the coordinated efforts of JTFA. Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP, and supported by MLARS, the Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 290 U.S. convictions; more than 240 defendants sentenced, including significant jail sentences imposed; and forfeitures of substantial assets.
Last Member of Deadly Trio Sentenced to 14 Years for Second Degree Murder in 2020 Shooting in Southeast DCRead the Press Release
WASHINGTON – Niko Hall, 33, of Washington, DC, was sentenced today to 14 years in prison for second degree murder while armed for shooting and killing a man on Martin Luther King Jr. Avenue, announced Acting U.S. Attorney Bridget Fitzpatrick and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Hall pleaded guilty on November 11, 2024, before Superior Court Judge Rainey Brandt who, in addition to the prison time, ordered five years of supervised release.
Hall is the final defendant to be sentenced for the crime. Co-defendants Kyrie Wells and Darquise Montgomery also pleaded guilty, on January 3, 2023, and July 6, 2023, respectively, to second degree murder while armed. Wells was sentenced to 14 years in prison; Montgomery was sentenced to 12 years of in prison.
According to the government’s evidence, on Saturday, September 26, 2020, the three defendants murdered Anthony Lee, 25, by shooting him in the back as Mr. Lee walked away from them, apparently unaware of the danger he was in. At around 11:22 p.m., as Mr. Lee and a companion walked south on Martin Luther King, Jr. Avenue, Hall came out of the Mellon Market with his handgun drawn and joined the two other men. The three of them lined up across the sidewalk, after one of them cleared potential witnesses out of the way. The gunmen then opened fire on Mr. Lee and his companion from behind. There had been no interaction between the victims and their assailants before the shooting and the victims were unarmed. Hall was the first to begin shooting and the last to stop. He opened fire on a busy street, with multiple witnesses present, in front of busy Saturday commercial traffic.
After Mr. Lee was shot, he fell to the ground one of the co-defendants, apparently acting in concert with the defendant and armed with an assault rifle, opened fire on Mr. Lee’s companion, firing at least 13 times.
The defendant was arrested almost exactly a month later, on October 20, 2020, and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Fitzpatrick and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists LaShone Samuels and Stephanie Siegerist and Victim/Witness Advocates Latrice Washington-Williams and Jenn Allen. Finally, they commended the work of Assistant U.S. Attorneys Jessica Keefer and Thomas Faulkner who prosecuted the case, and U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach, who investigated and prosecuted the case.
Kyle Man Indicted for Assault and Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Kyle, South Dakota, man for Assault Resulting in Serious Bodily Injury, Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner, Sexual Abuse, and Aggravated Sexual Abuse.
Vinnie Sonny Makes Good, age 36, was indicted in December 2024. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on January 8, 2025, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life imprisonment and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Makes Good assaulting his intimate dating partner on three sperate occasions between March 23 and October 12, 2023. These assaults resulted in the victim sustaining serious bodily injury. On February 4, 2024, Makes Good sexually assaulted a different female who was incapable of declining participation in or engaging in sexual intercourse.
The charges are merely accusations and Makes Good is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Makes Good was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 18, 2025.
Klamath Falls Man Sentenced to Life in Federal Prison for Kidnapping and Sexually Assaulting Two Women and Holding One in a CellRead the Press Release
MEDFORD, Ore.— Negasi Zuberi, 31, of Klamath Falls, Oregon, was sentenced to life in federal prison today for kidnapping and sexually assaulting two women, and holding one in a cell he constructed in his garage.
“There is no place in civil society for this type of terrifying violence,” said Natalie Wight, U.S. Attorney for the District of Oregon. “I sincerely hope Zuberi’s life sentence will bring some measure of comfort to his victims. Their courage and perseverance are an inspiration to us all.”
According to court documents, on July 15, 2023, while in Seattle, Zuberi posed as a police officer and used a taser and handcuffs to detain his victim in the backseat of his vehicle. Zuberi then transported the victim approximately 450 miles to his home in Klamath Falls, stopping along the way to sexually assault her.
At his residence, the victim was moved from his vehicle into a cell he had constructed in his garage. The woman repeatedly banged on the cell door until it broke open and she escaped. The victim retrieved a handgun from Zuberi's vehicle, fled his garage, and flagged down a passing motorist who called 911.
On July 16, 2023, Reno Police Department officers and Nevada State Patrol officers located Zuberi in a parking lot in Reno, Nevada. After a short standoff, Zuberi surrendered to law enforcement and was taken into custody.
While investigating Zuberi's crimes, federal agents discovered that approximately six weeks prior to the kidnapping in Seattle, on May 6, 2023, Zuberi kidnapped and sexually assaulted another victim. While being held by Zuberi, his first victim observed stacked cinder blocks in his garage that he later used to construct the cell where he detained his second victim.
On August 2, 2023, a federal grand jury in Medford returned an indictment charging Zuberi with kidnapping and transporting a victim with intent to engage in criminal sexual activity. Later, on February 15, 2024, a second kidnapping charge and charges for illegally possessing firearms and ammunition.
On October 18, 2024, a federal jury found Zuberi guilty of all charges.
This case was investigated by the FBI Portland and Reno, Nevada Field Offices, Klamath Falls Police Department, and Oregon State Police with assistance from the U.S. Attorney's Office for the District of Nevada; Klamath County District Attorney's Office; Reno, Nevada Police Department; Washoe County, Nevada District Attorney's Office; Nevada State Police; and Klamath Falls Sheriff’s Office. It was prosecuted by Jeffrey S. Sweet, Nathan J. Lichvarcik, and Marco A. Boccato, Assistant U.S. Attorneys for the District of Oregon, with assistance from Appellate Chief Suzanne Miles, also of the District of Oregon.
Kansas man pleads guilty to child pornography possessionRead the Press Release
WICHITA, KAN. – A Kansas man pleaded guilty to possession of child sexual abuse materials which was found on multiple electronic devices.
According to court documents, Alexander James Rosell, 34, of Wichita pleaded guilty to one count of possession of child pornography.
Rosell's activity was discovered through an international investigation into a particular dark web website, as well as reports made against IP addresses connected to a residence to which he had access. During a search warrant at the home, investigators found Rosell had child pornography images on a cell phone and multiple laptops.
Rosell was remanded to the custody of the U.S. Marshals Service and is scheduled to be sentenced on April 4, 2025. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI), the Wichita Police Department, and the Kansas Internet Crimes Against Children Task Force are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
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 CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.###
Justice Department files nationwide lawsuit alleging Walgreens knowingly filled millions of prescriptions that lacked a legitimate medical purposeRead the Press Release
ALEXANDRIA, Va. – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
“Today’s announcement demonstrates that we are doubling down on our commitment to both combat the opioid crisis and enforce corporate accountability,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “We will continue to work with colleagues across the nation to confront these issues and deter pharmacies from failing to honor their obligation to ensure that these powerful drugs are provided only to those with a true medical need.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said DEA Principal Deputy Administrator George Papadopoulos. “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to 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 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia, Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, and Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
• Middle District of Florida, justice.gov/usao-mdfl;
• Northern District of Illinois, justice.gov/usao-ndil;
• District of Maryland, justice.gov/usao-md;
• Eastern District of New York, justice.gov/usao-edny; and
• Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
• DEA at dea.gov;
• FBI at fbi.gov;
• HHS at hhs.gov;
• DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
• OPM at opm.gov; and
• DOL at dol.gov.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
A complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Justice Department Sues to Shut Down Florida Return PreparerRead the Press Release
The Justice Department filed a civil injunction suit yesterday in federal court in Fort Lauderdale, Florida. The suit seeks to bar a Broward County, Florida, tax return preparer and his business from owning or operating a tax return preparation business and preparing tax returns for others.
The complaint alleges that Suni Ramchandani and his business SR Chandra Inc., doing business as AHS Income Tax Service, prepare federal tax returns for customers on which the preparers claim fraudulent deductions and credits to purposely underreport the tax their customers owe and claim refunds their clients are not entitled to receive. Specifically, the complaint alleges that Ramchandani and AHS prepare returns with false or inflated deductions, business expenses and business losses, as well as false claims for residential energy credits, fuel tax credits and other credits. The complaint also alleges that Ramchandani and AHS file returns that include a Form 8888 (Allocation of Refund), diverting customers’ additional refund amounts to bank accounts associated with Ramchandani without their customers’ knowledge or consent.
The government further alleges that Ramchandani and AHS prepare thousands of tax returns each year, and that when the IRS examined dozens of returns for 2022 and 2023, between 78-82% of the examined returns had errors and fabrications. According to the complaint, the repeated understatement of tax has harmed the United States by causing a revenue loss of approximately $11 million over the past two years. In addition to seeking an injunction against Ramchandani and AHS, the government has requested an order of disgorgement to prevent them from profiting from their violation of the internal revenue laws.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ramchandani Complaint.pdfJustice Department Statements on Supreme Court’s Decision in TikTok, et al. v. GarlandRead the Press Release
The Justice Department issued the following statements from Attorney General Merrick B. Garland and Deputy Attorney General Lisa Monaco on the Supreme Court’s decision in TikTok, et al. v. Garland:
“The Court’s decision enables the Justice Department to prevent the Chinese government from weaponizing TikTok to undermine America’s national security,” said Attorney General Garland. “Authoritarian regimes should not have unfettered access to millions of Americans’ sensitive data. The Court’s decision affirms that this Act protects the national security of the United States in a manner that is consistent with the Constitution.”
“We welcome today’s decision by the Supreme Court. The Justice Department has long warned about the national security harms from PRC control of TikTok — including the ability to gather sensitive information about tens of millions of Americans and to covertly manipulate the content delivered to them,” said Deputy Attorney General Lisa Monaco. “The Court’s ruling also underscores that the bipartisan legislation upheld today is focused on protecting Americans, not restricting free speech. Rather, this legislation is about breaking the ties that bind TikTok to the government in Beijing, in a manner consistent with the Constitution. The next phase of this effort — implementing and ensuring compliance with the law after it goes into effect on January 19 — will be a process that plays out over time.”
Justice Department Recovers an Additional $20M in Misappropriated 1MDB FundsRead the Press Release
Note: View the complaint here.
View the stipulation and request to enter consent judgment of forfeiture here.
The Justice Department announced today that it has reached an agreement to recover an additional $20 million in misappropriated 1Malaysia Development Berhad (1MDB) funds. In June 2024, the department announced it has already recovered and returned and assisted in returning to Malaysia approximately $1.4 billion.
Beginning in 2016, a landmark effort encompassing now 43 civil forfeiture actions filed in the Central District of California and one in the District of Columbia by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) led to the seizure of over $1.7 billion in stolen assets. This is the largest recovery to date under the Justice Department’s Kleptocracy Asset Recovery Initiative. The funds include both funds finally forfeited to the government and funds the department assisted in recovering and returning. The department continues to litigate actions against additional assets allegedly linked to this scheme.
According to court documents, the funds from 1MDB, formerly Malaysia’s investment development fund, were laundered through major financial institutions worldwide, including in the United States, Switzerland, Singapore, and Luxembourg.
As alleged in the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were misappropriated by high-level officials of 1MDB and their associates, and Low Taek Jho, also known as aka Jho Low, through a criminal scheme involving international money laundering and embezzlement. Some of the embezzlement proceeds were also allegedly used to pay bribes. As alleged in the complaint filed in this case, tens of millions of dollars in funds misappropriated from 1MDB were paid to companies owned and controlled by Frank White Jr. and others. The unlawful source of these funds was unknown to White Jr. at the time of the payment. White Jr. has consented to $20 million in forfeiture in this case, all of which derives from these embezzled funds.
In conjunction with the agreement announced today, White Jr.’s company, DuSable Capital Management LLC (DuSable), submitted amended filings pursuant to the Foreign Agents Registration Act (FARA). The amended filings disclose additional political activities performed by DuSable for the government of Malaysia, including lobbying the U.S. government to provide non-financial support for a solar project in Malaysia.
1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were misappropriated and spent on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, California, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, a movie production company that made “The Wolf of Wall Street,” the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York; and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.
The FBI’s International Corruption Squad in New York is leading this investigation.
MLARS Trial Attorney Joshua Sohn is prosecuting the civil forfeiture case. MLARS Trial Attorney Joshua Sohn and former MLARS Trial Attorney Sean Fern, Deputy Chief Erik Paulsen of the U.S. Attorney’s Office for the Eastern District of New York’s International Narcotics and Money Laundering Section, and Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section investigated the case. Asset Forfeiture Section Chief Jonathon Galatzan of the U.S. Attorney’s Office for the Central District of California provided critical assistance with the investigation and prosecution.
The Justice Department’s Office of International Affairs is providing substantial assistance. MLARS’ Program Operations Unit, the U.S. Marshals Service, and the U.S Attorney’s Office for the Central District of California have also provided significant support.
Significant assistance has also been provided to the Justice Department over the course of its work in the investigations and civil and criminal litigation by the Attorney General’s Chambers of Malaysia, Royal Malaysian Police, Malaysian Anti-Corruption Commission, U.K. Financial Conduct Authority, U.K. Prudential Regulation Authority, U.K. National Crime Agency, Attorney General’s Chambers of the Territory of the British Virgin Islands, Attorney General’s Office of the Bailiwick of Guernsey and Guernsey Economic Crime Division, International Anti-Corruption Coordination Centre, Attorney General’s Chambers of Singapore, Singapore Police Force — Commercial Affairs Division, Office of the Attorney General and Federal Office of Justice of Switzerland, judicial investigating authority of the Grand Duchy of Luxembourg, Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, Republic of Indonesia, Latvian authorities, and French authorities, including the Parquet National Financier and Agency for Management and Recovery of Seized and Confiscated Assets (AGRASC).
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated MLARS prosecutors in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to repatriate those recovered assets to governments for the benefit of the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should email [email protected] or submit information at tips.fbi.gov/.
Justice Department Reaches Agreement with the Orange County, California, Sheriff’s Department to Protect Against the Misuse of Custodial InformantsRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Orange County Sheriff’s Department on the use of custodial informants by the Orange County Sheriff’s Department in California. The agreement, together with an earlier agreement with the Orange County District Attorney, fully resolves the department’s civil investigation into custodial informant activity at the Orange County Jails from 2007 through 2016 that violated criminal defendants’ right to counsel under the Sixth Amendment and right to due process of law under the 14th Amendment to the U.S. Constitution.
The agreement with the Orange County Sheriff will ensure that reforms put in place by the sheriff since suspending the use of custodial informants in 2016 provide appropriate protections against future violations. Under the agreement, the sheriff agrees to maintain changes to policies, training, document and information systems and audits in a manner that permits effective oversight of the custodial informant practices at the Orange County jails. The sheriff also agrees to solicit feedback on additional improvements from members of the criminal justice system in Orange County and to publish information about its reform efforts. The department will have full and direct access to independently validate that the Sheriff’s Department has sustained the reforms.
“We applaud the sheriff for his proactive efforts instituting key improvements to prevent the misuse of custodial informants at the Orange County Jails and to assist prosecutors in meeting their fundamental disclosure obligations while pursuing justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The robust and transparent validation measures in today’s agreement will strengthen the public’s trust in the sheriff’s Department and uphold the constitutional rights of criminal defendants in custody. The sheriff’s cooperation and adoption of reforms have helped narrow the scope and expected duration of the out-of-court agreement and, together with a related agreement reached with the Orange County District Attorney, will provide for continuation of the necessary collaboration and information sharing.”
The department opened its investigation into the Orange County Sheriff’s Department and the Orange County District Attorney’s Office in 2016. The evidence uncovered by the department revealed that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel, and that for years Orange County sheriff deputies maintained and concealed systems to track, manage and reward those custodial informants. The evidence also revealed that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.
The Civil Rights Division’s Special Litigation Section conducted the investigation pursuant to 34 U.S.C. § 12601. The statute prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law.
Since January 2021, the Civil Rights Division has opened 12 investigations into law enforcement agencies. The section is enforcing 15 agreements with law enforcement agencies and two post-judgment orders. The department also reached a court enforceable agreement with Louisville, Kentucky, and Minneapolis, Minnesota to resolve its findings. Both are pending review by the court.
The memorandum of agreement between the department and Orange County Sheriff’s Department can be found here, and the department’s investigative findings from October 2022 can be found here.
Information about the Civil Rights Division is available at www.justice.gov/crt.
Justice Department Files Nationwide Lawsuit Alleging Walgreens Knowingly Filled Millions of Prescriptions that Lacked a Legitimate Medical PurposeRead the Press Release
Note: View the complaint here.
WASHINGTON – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“The Justice Department has prioritized both combating the opioid crisis and upholding corporate accountability, and the action we are announcing today affirms our resolve,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “My office is pleased to partner with our colleagues from across the nation to confront these issues and deter pharmacies and pharmacists from failing to honor their obligation to ensure that these dangerous drugs are only provided to those with a true medical need.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said DEA Principal Deputy Administrator George Papadopoulos. “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to 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 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, justice.gov/usao-mdfl;
- Northern District of Illinois, justice.gov/usao-ndil;
- District of Maryland, justice.gov/usao-md;
- Eastern District of New York, justice.gov/usao-edny; and
- Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
- DEA at dea.gov;
- FBI at fbi.gov;
- HHS at hhs.gov;
- DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at opm.gov; and
- DOL at dol.gov.
###
Justice Department Files Nationwide Lawsuit Alleging Walgreens Knowingly Filled Millions of Prescriptions that Lacked a Legitimate Medical PurposeRead the Press Release
In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“Today’s announcement demonstrates that we are doubling down on our commitment to both combat the opioid crisis and enforce corporate accountability,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “We will continue to work with colleagues across the nation to confront these issues and deter pharmacies from failing to honor their obligation to ensure that these powerful drugs are provided only to those with a true medical need.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said DEA Principal Deputy Administrator George Papadopoulos. “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to 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 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, justice.gov/usao-mdfl;
- Northern District of Illinois, justice.gov/usao-ndil;
- District of Maryland, justice.gov/usao-md;
- Eastern District of New York, justice.gov/usao-edny; and
- Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
- DEA at dea.gov;
- FBI at fbi.gov;
- HHS at hhs.gov;
- DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at opm.gov; and
- DOL at dol.gov.
View the complaint here.
Justice Department Files Nationwide Lawsuit Alleging Walgreens Knowingly Filled Millions of Prescriptions that Lacked a Legitimate Medical PurposeRead the Press Release
WASHINGTON – In a civil complaint filed yesterday in the U.S. District Court for the Northern District of Illinois, the Justice Department alleges that Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) dispensed millions of unlawful prescriptions in violation of the Controlled Substances Act (CSA) and then sought reimbursement for many of these prescriptions from various federal health care programs in violation the False Claims Act (FCA). Walgreens is one of the country’s largest pharmacy chains, with over 8,000 pharmacies across the United States.
“This lawsuit seeks to hold Walgreens accountable for the many years that it failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our complaint alleges that Walgreens pharmacists filled millions of controlled substance prescriptions with clear red flags that indicated the prescriptions were highly likely to be unlawful, and that Walgreens systematically pressured its pharmacists to fill prescriptions, including controlled substance prescriptions, without taking the time needed to confirm their validity. These practices allowed millions of opioid pills and other controlled substances to flow illegally out of Walgreens stores.”
The government’s complaint alleges that, from approximately August 2012 through the present, Walgreens knowingly filled millions of prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the millions of unlawful prescriptions that Walgreens allegedly filled were prescriptions for dangerous and excessive quantities of opioids, prescriptions for early refills of opioids and prescriptions for the especially dangerous and abused combination of drugs known as the “trinity,” which is made up of an opioid, a benzodiazepine and a muscle relaxant.
The complaint alleges that Walgreens pharmacists filled these prescriptions despite clear “red flags” that indicated that the prescriptions were highly likely to be unlawful. Walgreens allegedly ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from its own pharmacists and internal data.
The complaint further alleges that Walgreens systematically pressured its pharmacists to fill prescriptions quickly without taking the time needed to confirm each prescription’s validity. Walgreens also allegedly deprived its pharmacists of crucial information, including by preventing pharmacists from warning one another about certain prescribers.
The complaint alleges that by knowingly filling unlawful prescriptions for controlled substances, Walgreens violated the CSA and, where Walgreens sought reimbursement from federal health care programs, also violated the FCA. The complaint alleges that Walgreens’s actions helped to fuel the prescription opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at Walgreens. If Walgreens is found liable, it could face civil penalties of up to $80,850 for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription paid by federal programs in violation of the FCA. The court also may award injunctive relief to prevent Walgreens from committing further CSA violations.
“As alleged in the complaint, Walgreens continually disregarded its obligations under the Controlled Substances Act and False Claims Act by illegally dispensing powerful controlled substances and unlawfully seeking reimbursement from federal health care programs,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “These laws are critically important in protecting our communities from the dangers of the opioid epidemic. Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“The damage caused by the opioid crisis continues to reverberate in the Middle District of Florida and around the country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The filing of this civil complaint is a major step in our continued effort to confront those responsible for the harm they have done to our communities.”
“Pharmacies play a critical role in ensuring that only lawful controlled substance prescriptions are dispensed – Walgreens failed to do just that,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We are committed to holding Walgreens accountable for its role in the opioid epidemic that has devastated communities across the country, including in Maryland.”
“This country is in the midst of a serious opioid epidemic, and New York is no exception,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “Walgreens, which operates one of the largest pharmacy chains in the United States, including nearly 300 pharmacies in the Eastern District of New York during the relevant time period, repeatedly ignored its obligations to ensure that these drugs did not fall into the wrong hands. My office will continue to work with others in the Justice Department to combat the opioid crisis by holding pharmacies that fill unlawful prescriptions accountable.”
“The Justice Department has prioritized both combating the opioid crisis and upholding corporate accountability, and the action we are announcing today affirms our resolve,” said First Assistant U.S. Attorney Maya D. Song for the Eastern District of Virginia. “My office is pleased to partner with our colleagues from across the nation to confront these issues and deter pharmacies and pharmacists from failing to honor their obligation to ensure that these dangerous drugs are only provided to those with a true medical need.”
“Walgreens and its pharmacists have an obligation to ensure that every prescription they fill is legitimate and issued responsibly. As this lawsuit alleges, Walgreens failed in this obligation, and many times ignored the red flags that warned of suspicious prescribing practices,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Walgreens placed the public in danger by disregarding their responsibility. DEA will continue to pursue any individual or corporation that chooses profit over patient safety and we will hold them accountable.”
“Millions of Americans enrolled in Medicare, Medicaid, and other public health care programs count on pharmacies to dispense drugs responsibly. When pharmacies disregard federal laws and put profits ahead of patients, they endanger Americans’ health and compromise taxpayer dollars,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains diligent in pursuing entities involved in unlawful behavior that abuses the public’s trust in health care services.”
Four different whistleblowers who previously worked for Walgreens in various parts of the country filed whistleblower actions under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here. The four cases have been consolidated and are captioned United States ex rel. Novak v. Walgreens Boots Alliance Inc. No. 18 C 5452 (NDIL).
The United States’ intervention in this matter underscores the government’s commitment to 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 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by Assistant Director Amy DeLine, Senior Litigation Counsel Donald Lorenzen and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division’s Consumer Protection Branch and Assistant Director Natalie Waites and Trial Attorney Joshua Barron of the Civil Division’s Commercial Litigation Branch, Fraud Section, as well as Assistant U.S. Attorney Valerie R. Raedy for the Northern District of Illinois, Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie for the Middle District of Florida, Chief of the Civil Division Thomas Corcoran for the District of Maryland, Assistant U.S. Attorney Elliot M. Schachner for the Eastern District of New York and Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia.
The U.S. Attorneys’ Offices for the District of Colorado and the Southern District of California, the DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General and FBI Chicago Field Office provided substantial assistance in the investigation.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. In March 2023, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, Fraud Section, DEA and other department components. The Task Force steers the department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, www.justice.gov/usao-mdfl;
- Northern District of Illinois, www.justice.gov/usao-ndil;
- District of Maryland, www.justice.gov/usao-md;
- Eastern District of New York, www.justice.gov/usao-edny; and
- Eastern District of Virginia, www.justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal health care fraud, visit:
- DEA at www.dea.gov;
- FBI at www.fbi.gov;
- HHS at www.hhs.gov;
- DHA at www.health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at www.opm.gov; and
- DOL at www.dol.gov.
Justice Department Files Civil Rights Lawsuit Against Iowa Landlord for Sexually Harassing TenantsRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Kurt Williams and Gearhead Properties LC, of Davenport, Iowa, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Williams has managed residential rental properties in Davenport since at least 2010.
The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, alleges that, since at least 2010, Williams subjected female tenants to unwelcome sexual contact, exposed his genitals to female tenants, made requests for sex in exchange for reduced rent or other housing benefits and evicted tenants when they did not give in to his sexual advances.
“Landlords who target vulnerable women by repeatedly demanding sex for themselves and their friends and retaliating against those who refuse with eviction actions and refusals to make repairs show an egregious abuse of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to protecting tenants’ right to live in and access housing free of sexual harassment. We encourage survivors of sexual harassment to speak out so that we can vindicate their fair housing rights.”
“Seeking basic human needs such as housing, should not bring with it the threat of sexual harassment,” said U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Gearhead Properties is alleged to have violated the rights of tenants to be free from this type of harassment. Our office and the Justice Department will continue to protect and vindicate tenant’s rights. Improper interference with a tenant’s right to housing will not be tolerated. Anyone with information about the Gearhead Properties investigation are encouraged to contact our office at the number below.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest, and a court order barring future discrimination.
The lawsuit is the result of a joint investigative effort with the Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
“It is unconscionable for landlords to sexually harass or abuse their vulnerable, low-income tenants,” said Inspector General Rae Oliver Davis of HUD. “The defendant allegedly preyed upon female tenants by seeking sexual acts in exchange for housing benefits and retaliating against them when they refused his advances. Together with our law enforcement partners we will continue to hold landlords accountable for this type of horrible conduct.”
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental properties owned or managed by Kurt Williams or Gearhead Properties LC, or who have other information that may be relevant to this case, may contact the Justice Department by calling the U.S. Attorney’s Office for the Southern District of Iowa at (515) 473-9300. Individuals may also email the Justice Department at [email protected] or submit a report online. Reports also may be made by contacting HUD at 1-800-669-9777 or by filing a complaint online.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 48 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.
Justice Department Files Civil Rights Lawsuit Against Iowa Landlord for Sexually Harassing TenantsRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Kurt Williams and Gearhead Properties LC, of Davenport, Iowa, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Williams has managed residential rental properties in Davenport since at least 2010.
The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, alleges that, since at least 2010, Williams subjected female tenants to unwelcome sexual contact, exposed his genitals to female tenants, made requests for sex in exchange for reduced rent or other housing benefits and evicted tenants when they did not give in to his sexual advances.
“Landlords who target vulnerable women by repeatedly demanding sex for themselves and their friends and retaliating against those who refuse with eviction actions and refusals to make repairs show an egregious abuse of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to protecting tenants’ right to live in and access housing free of sexual harassment. We encourage survivors of sexual harassment to speak out so that we can vindicate their fair housing rights.”
“Seeking basic human needs such as housing, should not bring with it the threat of sexual harassment,” said U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Gearhead Properties is alleged to have violated the rights of tenants to be free from this type of harassment. Our office and the Justice Department will continue to protect and vindicate tenant’s rights. Improper interference with a tenant’s right to housing will not be tolerated. Anyone with information about the Gearhead Properties investigation are encouraged to contact our office at the number below.”
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest, and a court order barring future discrimination.
The lawsuit is the result of a joint investigative effort with the Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
“It is unconscionable for landlords to sexually harass or abuse their vulnerable, low-income tenants,” said Inspector General Rae Oliver Davis of HUD. “The defendant allegedly preyed upon female tenants by seeking sexual acts in exchange for housing benefits and retaliating against them when they refused his advances. Together with our law enforcement partners we will continue to hold landlords accountable for this type of horrible conduct.”
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental properties owned or managed by Kurt Williams or Gearhead Properties LC, or who have other information that may be relevant to this case, may contact the Justice Department by calling the U.S. Attorney’s Office for the Southern District of Iowa at (515) 473-9300. Individuals may also email the Justice Department at [email protected] or submit a report online. Reports also may be made by contacting HUD at 1-800-669-9777 or by filing a complaint online.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 48 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.
Jury Convicts Man for Involvement in $700,000 Casino HeistRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Jesus Gaytan-Garcia, 45, Chicago, Illinois, of interstate transportation of stolen money, and theft from an Indian tribal organization. Mr. Gaytan-Garcia will be sentenced on a later date to be set by the court.
“This case underscores the need for businesses, organizations, and citizens to be diligent and cautious about phone and internet scams,” said U.S. Attorney Totten. “Thanks to the persistent and dedicated investigators at the Pokagon Tribal Police Department and FBI, Mr. Gaytan-Garcia was identified as one of the perpetrators of this theft-scam and is being held accountable for this bold crime.”
The evidence at trial showed that on July 30, 2023, a call came into the Hartford Four Winds Casino. The caller falsely claimed that he was the tribal chairperson and needed funds to make an urgent payment. A casino supervisory employee, apparently misled by the caller’s fraudulent claims, took $700,000 in cash and walked out of the casino. At the direction of the caller, the employee transported the cash across state lines to a gas station in Gary, Indiana, where the employee then handed the money over to two unknown individuals. The evidence at trial proved that Jesus Gaytan-Garcia was one of those individuals.
When investigators searched Gaytan-Garcia’s home in Chicago, they located a bundle of cash still wrapped in a paper band that was stamped with the word, “Hartford,” the location of the victimized Four Winds Casino, and the exact date of the theft, July 30, 2023.
“The cooperative efforts of the FBI and our tribal law enforcement has resulted in justice for the Pokagon Band of the Potawatomi Indians,” said Pokagon Band Chief of Police Mario RedLegs. “I am extremely proud of the professional teamwork that was put forth by those involved in the investigation. The diligence of the investigative team and the U.S. Attorney's Office was vital to hold Mr. Gaytan-Garcia responsible for the crimes he committed against the Pokagon Band of Potawatomi Indians.”
"The conviction of Jesus Gaytan-Garcia represents a significant step toward justice and healing for the Pokagon Tribal Community," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Those involved in large-scale thefts will be held accountable for their actions. I am grateful for the dedicated investigative efforts of our team at the FBI’s St. Joseph Resident Agency, in partnership with the FBI Chicago Field Office and the Pokagon Tribal Police Department, as well as the U.S. Attorney’s Office for the Western District of Michigan, whose collaboration was crucial in securing this successful prosecution."
The case was investigated by the Pokagon Band Tribal Police and the FBI, and Assistant U.S. Attorneys Erin Lane and Alexia Jansen prosecuted it.
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Jonesboro Man Sentenced for Possession of FentanylRead the Press Release
MONROE, La. – Jarrell M. Palmer, 44, of Jonesboro, Louisiana, was sentenced today for possession with intent to distribute fentanyl, announced United States Attorney Brandon B. Brown. Chief United States District Judge Terry A. Doughty sentenced Palmer to 188 months (15 years, 8 months) in prison, followed by 5 years of supervised release.
In April 2023, agents with the U.S. Postal Inspection Service intercepted a suspicious package mailed from California to an address in Jonesboro. Agents exposed the package to an open air examination by a narcotic detecting K-9 who alerted to the presence of the odor of narcotics coming from inside the box. A warrant was obtained, and agents found several jigsaw puzzle boxes inside, one which contained Ziplock-style bags wrapped in plastic wrap and carbon paper. Inside those bags were more than 5,000 pills suspected to be fake oxycodone tablets. Subsequent chemical analysis determined that the pills comprised a mixture and substance containing a detectable amount of fentanyl and weighed approximately 552.5 grams.
Law enforcement agents repackaged the box and conducted a controlled delivery of the package to the front door of the Jonesboro address. Agents observed the defendant’s mother retrieve the package from the front doorstep and take it inside the residence. Shortly thereafter, agents were alerted by way of sensors installed on the package that it had been opened and they converged on the home to execute the search warrant. Agents found Palmer standing outside of the home and arrested him. Palmer had residue on his hands from spray that was added to the package by law enforcement agents. Inside the home was the suspicious package containing the jigsaw puzzle boxes with the fentanyl, as well as marijuana and a digital scale. Palmer admitted that the suspicious package was his and that he sold the pills to other individuals. He pleaded guilty to possession with intent to distribute fentanyl on December 12, 2023.
The case was investigated by U.S. Postal Inspection Service, Jackson Parish Sheriff’s Office and Metro Narcotics Unit in Monroe, and prosecuted by Assistant United States Attorney Mike Shannon.
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International Crypto Vendor Sentenced for Money Laundering ConspiracyRead the Press Release
FRANKFORT, Ky. – An Indian national, Anurag Pramod Murarka, 30, an international virtual currency vendor operating under two monikers (“elonmuskwhm” and “la2nyc”), was sentenced late Wednesday, by U.S. District Judge Gregory Van Tatenhove, to 121 months in prison for conspiracy to commit money laundering.
According to court documents recently unsealed, since at least April 2021 and continuing until September 29, 2023, Murarka operated an international money laundering business. Murarka advertised his services online, often on dark net marketplaces, as a money laundering service. Customers would then contact him through encrypted messages, in response to those advertisements, and negotiate an exchange rate. Once the exchange rate had been set, Murarka, located in India, directed his customers to send cryptocurrency to certain cryptocurrency addresses. Murarka then worked through a complex, pre-arranged hawala operation emanating out of India to arrange for cash to be delivered to his employees in the United States. Murarka’s network of employees throughout the United States and overseas would collect cash from Murarka’s hawala connections and then package the cash in a variety of ways, including between the pages of books and sealed in multiple envelopes, before mailing the cash to the customer.
Murarka collected a fee for his services and used part of the fee to pay off his employees and co-conspirators. Murarka was aware that many of his customers engaged in criminal activity – specifically computer hacking and drug trafficking – and therefore knew that his business facilitated that criminal activity, by assisting in disguising the source of the unlawful activity. In total, Murarka and his co-conspirators laundered more than $20 million in criminal proceeds.
A joint operation between the FBI and USPIS resulted in Murarka’s arrest. Thereafter, the FBI assumed his online identity, taking control of the money laundering operation and conducting undercover activity. This operation resulted in law enforcement actions against several of Murarka’s customers, including the prevention of multiple financial account takeovers (in excess of $1.4 million), the seizure of counterfeit and illegal drugs and drug manufacturing equipment, and related prosecutions. Additionally, the FBI seized millions of dollars’ worth of criminal proceeds.
Under federal law, Murarka must serve 85 percent of his prison sentence. Upon Murarka’s release from prison, he will be under the supervision of the U.S. Probation Office for three years.
“Using the internet, the defendant provided his assistance to countless other criminals as they tried to conceal their stolen money and illegal drug proceeds,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “This case highlights the global scope of cybercrime, as well as the demand for diligence and collaboration in fighting money laundering – a devastating second layer of criminal conduct. The dedicated work of our law enforcement partners has now held him accountable; and we remain committed in our collaborative efforts to combat this destructive criminal activity.”
“Gone are the days when cyber criminals, who enable and profit from the horrendous criminal conduct of others, can sit safely in their dens, across oceans, convinced of the limited reach of justice. The success of this operation proves that the FBI can unmask even the most careful anonymous online actors,” said Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office. “Moreover, the FBI will leverage every advantage against criminal networks that cause damage to our communities, to apprehend these malicious actors, seize the proceeds of their crimes, and expose their network of co-conspirators.”
“The successful conclusion of this case involving the sentencing of Anurag Murarka, a cryptocurrency exchanger, shines a light on the United States Postal Inspection Service’s relentless pursuit of criminals who think they can use the anonymity of the dark web to perpetrate crimes and make the US Postal Service an unwitting partner in transferring ill-begotten funds,” said Lesley Allison, U.S. Postal Inspector in Charge – Pittsburgh Division.
United States Attorney Shier; FBI Special Agent in Charge Stansbury; and USPIS Postal Inspector in Charge Allison, jointly announced the sentence.
The investigation was conducted by FBI and USPIS. Assistant U.S. Attorney Kate Dieruf prosecuted the case on behalf of the United States.
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Health Care Plan Agrees to Pay over $500,000 as Part of Self-Disclosure of Potential False Claims Act ViolationsRead the Press Release
DETROIT – United States Attorney Dawn N. Ison announced today that Commonwealth Care Alliance, Inc. (CCA) has agreed to pay $520,355.65 to resolve allegations that Reliance HMO, Inc., a company CCA acquired in 2022, violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by providing cash payments to induce the referral of Medicare beneficiaries to enroll in Reliance’s Medicare Advantage Plan, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2). CCA voluntarily self-disclosed the conduct to the U.S. Attorney’s Office, and the settlement acknowledges that CCA took significant steps, entitling it to credit for cooperating with the government’s investigation.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). The Centers for Medicare & Medicaid Services (CMS) pays MA Plans a monthly capitated payment for each beneficiary who enrolls in one of their plans. The Anti-Kickback Statute prohibits parties who participate in federal healthcare programs from knowingly and willfully paying or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of, any item or services for which payment is made by the federal healthcare programs.
CCA is a not-for-profit corporation, with its principal place of business in Boston, Massachusetts, engaged in offering MA Plans. In April 2019, CMS authorized Reliance HMO, Inc. (Reliance) to operate a MA plan for Medicare beneficiaries in Michigan, with beneficiaries receiving coverage starting in January 2020. On March 31, 2022, CCA announced completion of its acquisition of a 70% stake in Reliance. After the acquisition, CCA identified concerns regarding certain marketing-related outreach and payments Reliance agents had made to personnel at physician practices. In particular, CCA disclosed two schemes.
First, from April 12, 2019, through December 22, 2020, Reliance provided cash payments to healthcare professionals and administrative staff in physician practices, in exchange for providing Reliance with the contact information for patients who had agreed, through executing so-called “permission to contact” cards, to be contacted by Reliance regarding its MA plan offerings.
Second, in November 2019, prior to Reliance’s MA plan becoming active, Reliance paid each of four physicians and physician practices $2,500, which Reliance characterized as advances on “coordination of care” services to be provided by the physicians to beneficiaries when the MA plan became active in 2020.
The United States alleges these payments were intended to induce the referral, recommendation, or arrangement of enrollment of Medicare beneficiaries in Reliance’s MA plan. Such payments, the United States alleges, were impermissible kickbacks in violation of the False Claims Act. The settlement announced today resolves these claims.
CCA voluntarily self-disclosed this conduct to the United States and received credit for its cooperation. In addition, CCA took remedial measures, including terminating the employees directly involved with the decision to offer the payments described above, and providing the United States with a detailed written statement describing its investigation, along with other supplemental information to assist the United States in its investigation.
“Our office encourages companies and individuals to make timely self-disclosures and take remedial measures to mitigate the harm from fraud that they discover,” said U.S. Attorney Ison. “While we remain steadfast in using the False Claims Act to address the use of prohibited payments to induce federal healthcare business, our office is prepared to give credit, where justified, to those that save the government time and resources by disclosing fraud.”
Ison was joined in the announcement by Special Agent in Charge Mario Pinto, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
"Paying kickbacks in exchange for patient referrals can drive up costs and lead to unnecessary medical services," said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "This settlement highlights the value of HHS-OIG’s Self-Disclosure Program, which allows providers to report potential fraud directly to HHS-OIG and mitigate the costs and disruptions often associated with a government-directed investigation."
The United States Attorney’s Office encourages anyone with information involving waste, fraud, and abuse in federal healthcare or other programs, to please report the illegal conduct, by contacting:
HHS-OIG Hotline: 1-800-HHS-TIPS (1-800-447-8477) or https://tips.oig.hhs.gov
To file a voluntary self-disclosure, please access the link below:
https://oig.hhs.gov/compliance/self-disclosure-info/self-disclosure-protocol/
The civil investigation was handled by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG.
The claims resolved by the settlement are allegations only; there has been no determination or admission of liability.
HF Sinclair Navajo Agrees to Settlement to Reduce Climate- and Health- Harming Emissions at Artesia Refinery in New MexicoRead the Press Release
The Justice Department, the Environmental Protection Agency (EPA) and the New Mexico Environment Department (NMED) today announced a proposed settlement with HF Sinclair Navajo Refining LLC, an HF Sinclair Corp. subsidiary, resolving alleged Clean Air Act and New Mexico Air Quality Control Act violations at the company’s oil refinery in Artesia, New Mexico.
Under the settlement, HF Sinclair Navajo must pay a civil penalty of $35 million, owed in equal shares to the United States and the State of New Mexico. The company must implement compliance measures at an estimated cost of $137 million, including significant capital investments, to reduce emissions at its refinery. The compliance measures are projected to achieve reductions of:
- 180 tons per year of hazardous air pollutants, including benzene,
- 2,716 tons per year of volatile organic compounds (VOCs),
- 51 tons per year of NOx and
- 31 tons per year of sulfur dioxide (SO2).
These include reductions already achieved in response to EPA’s investigations. All told, the emission reductions have a related climate benefit of reducing 97,551 tons per year of carbon dioxide emission equivalence.
HF Sinclair Navajo also must operate 10 real-time air pollution monitors along the refinery fence line and one real-time air pollution monitor and six other passive monitors in the town of Artesia to measure refinery air pollution emissions and make the results available on a public website.
The refinery is adjacent to a community overburdened by pollution. This settlement is part of the Justice Department and EPA’s ongoing commitment to address unlawful pollution in historically marginalized and disproportionally impacted communities.
“This settlement reinforces the United States’ commitment to protect communities from illegal refinery benzene and VOC emissions,” said Acting Assistant Attorney General Katherine E. Konschnik of the Justice Department’s Environment and Natural Resources Division (ENRD). “Under the settlement, the refinery will make significant capital investments in pollution controls and implement additional programs to improve air quality and reduce health impacts on the residents of Artesia, including the students at Roselawn Elementary School.”
“HF Sinclair Navajo’s failure to monitor and control the release of benzene, a known carcinogen, and other hazardous and toxic air pollutants posed a significant threat and potential health risks to the nearby community,” said Acting Assistant Administrator Cecil Rodriguez of EPA’s Office of Enforcement and Compliance Assurance. “The monitoring required by today’s settlement will ensure that the community and state and federal regulators will have real-time emissions data to help ensure the community is protected against future health impacts from the refinery’s operations.”
“The fenceline community in Artesia has lived with the burden of benzene and VOC emissions for many years. This settlement is an overdue step in bringing them some relief from the potential health effects of these pollutants,” said EPA Regional Administrator Dr. Earthea Nance. “The Roselawn Elementary School, just hundreds of feet away from the HF Sinclair refinery, is a reminder of how critical our rulemaking and enforcement efforts are to protecting the health and environment of impacted citizens.”
“Today’s settlement continues to hammer home that if you don’t follow through on your commitments to clean air by following our rules, permits, or prior settlement agreements, you will pay for it in fines,” said Secretary James Kenney of NMED. “Today’s action not only obtains civil penalties — it forces the Artesia Refinery to invest in a number of projects to benefit our state, including improving controls for cancer-causing benzene emissions and other pollutants that infringe on New Mexicans’ right to breathe clean air.”
HF Sinclair Navajo has agreed to take the necessary measures to address the refinery’s failure to comply with regulations that govern a wide range of refinery equipment and operations, including flaring, fenceline monitoring of benzene emissions, wastewater, storage vessels, heat exchanger leaks and leak detection and repair.
These failures are alleged in the United States’ complaint, filed simultaneously with the settlement, and resulted in the release of hazardous air pollutants and VOCs directly into the air. The company will address these failures by:
- Installing a flare gas recovery system that will reduce VOC, SO2, and NOx, and greenhouse gas emissions;
- Implementing capital investments and additional upgrades to wastewater equipment to reduce benzene in wastewater streams and an enhanced monitoring program to more quickly identify and address air pollution emissions;
- Implementing numerous projects, such as the installation of geodesic domes, for storage vessels to reduce VOC emissions and an enhanced and innovative monitoring program to more quickly identify and address air pollution emissions;
- Strengthening leak detection and repair practices at the refinery to lower VOC and HAP emissions from process equipment and
- Implementing an enhanced inspection and chemical monitoring program of heat exchangers to more quickly identify VOC and HAP emissions from cooling towers.
In 2018 and 2019, monitoring at the refinery recorded the highest refinery fenceline benzene concentrations in the country. Under the settlement HF Sinclair Navajo agreed to operate and maintain air pollution monitors at the facility fenceline and in the community at an estimated cost of $1.8 million. The monitoring will help ensure compliance with Clean Air Act’s regulations, and help the company identify and address potentially harmful emission sources more quickly. Additionally, the fenceline and community monitoring will help regulators and the community hold HF Sinclair Navajo accountable for harmful air pollutants entering the community.
Benzene is known to cause cancer in humans and is associated with short-term and long-term inhalation exposure risks. VOCs, along with nitrous oxide, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. Ground-level ozone exposure is linked to a variety of short- and long-term health problems.
HF Sinclair Corp. is a publicly traded energy company headquartered in Dallas. The Artesia refinery serves markets in the southwestern United States and has a crude oil capacity of 100,000 barrels per day.
The proposed consent decree was filed with the U.S District Court for the District of New Mexico and is subject to a 30-day comment period. The complaint and the proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
EPA and NMED investigated the case.
Attorneys with ENRD’s Environmental Enforcement Section are handling the case.
Guatemala Man Sentenced to Federal Prison for over 10 Years for Attempted Enticement of a Minor and Sex Trafficking of a ChildRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Lawrence L. Piersol has sentenced a Guatemala man convicted of Attempted Enticement of a Minor Using the Internet and Attempted Sex Trafficking of a Child. The charge of attempted enticement carries a mandatory minimum sentence of 10 years in federal prison.
Gerber David Santos-Gonzalez, age 26, was indicted by a federal grand jury in April 2024. He was found guilty following a jury trial in October 2024.
On January 13, 2025, Santos-Gonzalez was sentenced to 10 years and one month in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200. Santos-Gonzalez is required to register as a sex offender once released from federal prison.
The conviction stemmed from an incident on March 12, 2024, when Santos-Gonzalez used Facebook and Facebook Messenger to convince a 15-year-old girl to have sex with him in exchange for $100. The 15-year-old girl was actually an undercover law enforcement officer. Santos-Gonzalez was arrested when he attempted to meet up with the girl in Sioux Falls, South Dakota.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the 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.
This case was investigated by Homeland Security Investigations, the South Dakota Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Watertown Police Department, Tea Police Department, Minnehaha County Sheriff’s Office, Lincoln County Sheriff’s Office, and South Dakota Highway Patrol. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
Santos-Gonzalez was immediately remanded to the custody of the U.S. Marshals Service.
Grand jury indicts 2 former FirstEnergy executives in racketeering conspiracy involving more than $60 million in bribery schemesRead the Press Release
CINCINNATI – Two former FirstEnergy executives have been indicted by a federal grand jury and charged with one count of participating in a racketeering (RICO) conspiracy.
Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, will be scheduled to appear in federal court in Cincinnati today. The indictment was returned on Jan. 15 and unsealed this morning.
It is alleged that Jones and Dowling participated in an enterprise (FirstEnergy Corp. and its subsidiaries) through a pattern of racketeering activity – including bribery, money laundering and obstruction – to increase the company’s stock price and enrich themselves. Although the defendants helped pursue the legal interests of FirstEnergy, Jones and Dowling also corrupted FirstEnergy by allegedly abusing their positions of trust and engaging in criminal activities in pursuit of personal and commercial gain.
Jones served in senior executive positions for FirstEnergy, including as President and CEO, from approximately 2015 until his employment was terminated in 2020. During that time, Jones made approximately $65 million in compensation. Approximately $60 million of his earnings came from performance-based pay tied, in part, to FirstEnergy stock prices. Dowling served as Senior Vice President at the time of his termination in 2020. Part of his pay was also tied to company financial performance and growth.
The 42-page indictment details the ways in which Jones and Dowling allegedly acted in support of the RICO conspiracy, including schemes to bribe former Ohio House Representative Larry Householder and former PUCO Chairman Samuel Randazzo.
According to the indictment, between 2017 and March 2020, FirstEnergy paid more than $59 million to 501(c)(4) entity Generation Now, which Jones and Dowling knew was operated for the benefit of and controlled by Householder. The bribe money helped Householder gain the position of Speaker of the House and pass and uphold House Bill 6, a billion-dollar nuclear plant bailout to benefit FirstEnergy.
It is alleged Jones and Dowling used a different 501(c)(4) entity, Energy Pass-Through, to fund with FirstEnergy money and direct payments to Generation Now and other entities they believed were associated with public officials for FirstEnergy’s and the officials’ benefit. Dowling allegedly referred to the 501(c)(4) as a “political tool.”
The indictment also alleges that Jones and Dowling pushed for FirstEnergy-approved appointments to the state public utilities board, including Randazzo as PUCO Chairman. In January 2019, FirstEnergy allegedly paid Randazzo’s companies more than $4.3 million for Randazzo providing favorable official actions for FirstEnergy through PUCO proceedings.
The indictment alleges that Jones referred to Householder as his “expensive friend,” and thanked Randazzo after PUCO, under Randazzo’s leadership, took action in 2019 that Jones attributed to raising FirstEnergy’s stock price.
After the passage of House Bill 6, Dowling wrote, “Huge bet and we played it all right on the budget and HB 6 – so we can go back for more!”
“I stated following the jury conviction of Householder and Borges that this office would continue to work tirelessly to hold more people accountable for their actions to harm Ohioans, and we have,” said U.S. Attorney Kenneth L. Parker. “This indictment is yet another step in the direction of that accountability.”
“This alleged $60 million racketeering conspiracy defrauded Ohioans to enrich the defendants," stated FBI Cincinnati Special Agent in Charge Elena Iatarola. “The FBI will continue to pursue political corruption and corporate fraud to protect taxpayers and hold white-collar criminals responsible for their actions.”
The RICO conspiracy as charged in this case is punishable by up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the charges. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Rapids Man Sentenced for Firearms Violation, Apprehended with AR-Style Gun at High School GraduationRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Shyon Malik Armstrong, 19, of Grand Rapids, was sentenced to 50 months in prison for being a felon in possession of firearms.
“At one of life’s most celebratory moments – a high school graduation – Mr. Armstrong created the risk of horrendous harm for these graduates, their families, and school officials,” said U.S. Attorney Mark Totten. “I’m so grateful to the Grand Rapids Police Department officers who acted swiftly to protect the community. Every person – no matter who they are or where they live – has a right to live free from the fear of gun violence.”
On May 30, 2024, Grands Rapids Police Department responded to information that violence might break out at a graduation ceremony at Calvary Church. The police had learned earlier in the day that two street gangs were fighting and threatening acts of violence at the graduation ceremony. Mr. Armstrong attempted to flee police, but when they detained him, they found two loaded firearms in his backpack. One of the guns was an AR-style pistol with an extended magazine containing 35 rounds of ammunition.
The Grand Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. For more information, visit www.justice.gov/psn.
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Gladwyne Investment Adviser Charged with Misappropriating More Than $17 Million from Clients Through Two Long-Running Fraud SchemesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Scott Mason, 66, of Gladwyne, Pennsylvania, was charged by criminal information with wire fraud, securities fraud, investment adviser fraud, and filing false tax returns, arising from two fraudulent schemes that Mason, through his investment advisory firm Rubicon Wealth Management LLC, orchestrated to divert millions of dollars in client funds in order to finance his lavish lifestyle.
The information alleges that between 2016 and 2024, Mason — who had a fiduciary duty to make investment decisions in his clients’ best interests — transferred more than $17 million from 13 Rubicon clients to an entity that he owned and controlled, and ultimately used that money to finance his personal expenditures, including international travel, country club membership dues, credit card bill payments, and the purchase of an ownership stake in a Jersey Shore-based miniature golf course.
The information further alleges that Mason targeted clients with whom he had a longstanding relationship and who trusted him implicitly, including longtime friends and family members, and he often liquidated those clients’ securities holdings in order to finance the fraudulent transfers. Mason allegedly either forged client signatures on distribution authorization forms or omitted all pertinent details of the so-called “investments” when seeking client authorization for the transfers and instead falsely represented that he was investing client funds in diversified short-term bonds.
In reality, as the information alleges, Mason was converting client funds to his own personal use. He also used a portion of the fraud proceeds to repay another Rubicon client from whom Mason had allegedly misappropriated an additional several million dollars dating back to at least 2014, in order to avoid detection by that victim.
Finally, the information alleges that Mason failed to report any of his fraud proceeds on his personal income tax returns, generating a tax loss of approximately $3.225 million.
If convicted, the defendant faces a maximum possible sentence of 80 years’ imprisonment and a fine of $6,760,000.
The case was investigated by the FBI and IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Jessica Rice. In a parallel matter, the Securities and Exchange Commission announced charges against Mason today.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gang Member Admits to Racketeering ChargeRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted to his role in a racketeering conspiracy, Acting U.S. Attorney Vikas Khanna announced.
Jason Franklin, a/k/a “Freak,” (“Franklin”), 41, pleaded guilty before U.S. District Judge Susan D. Wigenton to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (“RICO”) conspiracy.
According to documents filed in this case and statements made in court:
From at least in or around 2015 through on or about September 22, 2022, Franklin was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. Franklin held a leadership role within the enterprise and ordered other members and associates of the enterprise to commit several acts of violence.
Specifically, on or about March 20, 2019, in Irvington, New Jersey, Franklin ordered other members and associates of the enterprise to murder another person, in retaliation for the murder of a member and associate of the Rollin’ 60s.
In or around early April 2021, Franklin ordered other members and associates of the enterprise to retaliate against rival gang members, resulting in the April 5, 2021 attempted murder of another person, who sustained serious bodily injury as a result of being shot.
The defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000. Sentencing is scheduled for May 21, 2025, at 11:00 a.m.
Acting U.S. Attorney Khanna credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; the Internal Revenue Service, Criminal Investigation (IRS-CI), under the direction of Special Agent in Charge Jenifer Piovesan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks, Jr., as well as investigators of the U.S. Marshals Service, under Marshal Juan Mattos’ direction; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, the FBI, under the direction of Special Agent in Charge Brian J. Discroll Jr., the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, Sr., the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, the Essex County Sheriff’s Office, under Sheriff Amir D. Jones’s direction, the East Orange Police Department, under the direction of Chief Phyllis L. Bindi, the Elizabeth Police Department, under the direction of Police Director Earl J. Graves, the Edison Police Department, under the direction of Chief of Police Tom Bryan, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, the Spotswood Police Department, under the direction of Chief Philip Corbisiero, and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake A. Nasar of the Health Care Fraud Unit.
Defense Counsels:
Anthony Iacullo, Esq.
Michael Koribanics, Esq.
franklin.superseding_indictment.pdfFour People Sentenced to Prison for Distributing FentanylRead the Press Release
MIAMI – Four South Florida residents have been sentenced to federal prison for distributing fentanyl and meth.
On Jan. 16, Gito St Fort, 35, of West Palm Beach, Florida, a career criminal, was sentenced to 320 months in federal prison after pleading guilty to distribution of a controlled substance resulting in death. On Dec. 24, 2023, St Fort sold the victim the fentanyl which resulted in his death while the victim was visiting his parents.
On Jan. 15, Anwar Hazzi, 36, of Sunny Isles Beach, Florida, was sentenced to 200 months in federal prison. From June 2023 to May 2024, Hazzi sold drugs, including more than 900 grams of fentanyl and 500 grams of meth. The fentanyl was concealed within counterfeit prescription pills resembling oxycodone and the meth was concealed within counterfeit prescription pills resembling Adderall. In September 2024, Hazzi pleaded guilty to conspiracy to distribute controlled substances, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of drug trafficking.
Also, on Jan. 15, Samantha Yi, 31, of Lake Worth, Florida, was sentenced to 288 months in federal prison. Yi and her then boyfriend, Darnell Julio Mendez, 32, of Lake Worth, sold fentanyl to the mother of a 10-month-old baby who fatally overdosed on the fentanyl in March 2022. Both defendants pleaded guilty to conspiracy to distribute controlled substances, distribution of fentanyl resulting in death, possession with intent to distribute controlled substances, and possession of firearms by a convicted felon. Mendez, a career criminal, was sentenced to 360 months in federal prison in October 2024.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, announced the sentence.
The DEA Miami Field Division investigated the cases with assistance from PBSO, BBPD and the Palm Beach Gardens Police Department. Assistant U.S. Attorneys Adam McMichael, Brian Ralston and Shannon O’Shea Darsch prosecuted the cases.
According to the DEA’s National Drug Threat Assessment, nitazenes are synthetic opioids, like fentanyl, but some nitazenes can match or surpass the potency of fentanyl. Different nitazenes have been appearing in fentanyl mixtures in the United States since 2019. When combined with fentanyl, the effects of both drugs are heightened, which significantly increases the chance of a fatal drug poisoning.
Synthetic drugs such as fentanyl are poisoning the nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (CDC), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida.
For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx; https://www.cdc.gov/opioids/basics/fentanyl.html#; and https://www.dea.gov/factsheets/fentanyl.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 24-cr-80063, 24-cr-80070 and 24-cr-80041.
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Four Members of Charlotte-Based Multi-Million Dollar Auto Theft Ring Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Four members of a theft ring that stole more than 100 high-end vehicles worth millions of dollars from dealerships located across the United States were sentenced in federal court late yesterday, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
The defendants pleaded guilty to conspiracy to transport, possess, and sell stolen vehicles in interstate commerce and were sentenced as follows:
- Dewanne Lamar White, 44, of Sumter, South Carolina, was sentenced to 108 months in prison followed by three years of supervised release. White also pleaded guilty to possession of a stolen motor vehicle.
- Kevin Ja’Coryen James Fields, 28, of Charlotte, was sentenced to 96 months in prison followed by three years of supervised release. Fields also pleaded guilty to interstate transportation of a stolen vehicle.
- Reginald Eugene Hill, 25, of Charlotte, was sentenced to 60 months in prison, followed by two years of supervised release.
- Garyka Vaughn Bost, 26, of Denver, North Carolina, was sentenced to 12 months and a day in prison followed by two years of supervised release.
According to court documents and court proceedings, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. To maximize profits, they targeted luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers.
Court documents show that the defendants executed the thefts in a number of ways. In some instances, they visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the defendants would swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, they employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. According to court records Bost, Fields, and Hill often served as drivers in the conspiracy, and White frequently paid them and other drivers for their work in the scheme. On several occasions the defendants and other co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses.
According to court documents and the sentencing hearings, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things. The stolen vehicles were then transported back to Charlotte where they were sold locally at prices well below market value.
In making today’s announcement, U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that assisted with the investigation.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Fort Towson Resident Sentenced for MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Thomas Raymond Phillips, III, age 36, of Fort Towson, Oklahoma, was sentenced to a term of life in prison for First Degree Murder in Indian Country. Phillips was also sentenced to 120 months in prison for one count of Use, Carry, Brandish, and Discharge of a Firearm During and In Relation to a Crime of Violence. The sentences are set to be served consecutively.
The charges arose from an investigation by the Choctaw County Sheriff’s Office, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On October 25, 2023, Phillips was found guilty of the charges by a federal jury at trial. According to investigators, on the evening of December 19, 2020, Phillips fired multiple shots into a Fort Towson bar after being ejected by management for instigating a fight. One bullet struck a patron, killing the victim at the scene. The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
“The defendant’s malicious and senseless acts stole a life, and the defendant will spend his remaining days in prison paying the price justice demands for his crimes,” said United States Attorney Christopher J. Wilson. “I commend county, state, and federal law enforcement for their investigative work and the prosecuting attorneys for presenting the case and advocating for the victim.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Phillips 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. Attorneys Dean Burris and T. Cameron McEwen represented the United States.
Fort Dodge Woman Sentenced to More Than 10 Years in Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine in the Fort Dodge area was sentenced January 17, 2025, to 126 months in federal prison.
Carolyn Michaels (Woodman), 60, recently from Ankeny, Iowa, received the prison term after an August 19, 2024, guilty plea to conspiracy to distribute methamphetamine and distribution of methamphetamine in a protected zone.
Evidence at the plea and sentencing hearings showed that Michaels was involved in a conspiracy that distributed at least 50 kilograms of methamphetamine in 2023/2024. Additional evidence showed Michaels distributed a total of six ounces of methamphetamine over three transactions to an individual cooperating with law enforcement. During a search warrant at Michaels’ residence, law enforcement seized drug use/trafficking paraphernalia, including: several cellular telephones, a scale, cocaine, marijuana, and methamphetamine. Michaels admitted to obtaining pound quantities of methamphetamine from sources in Fort Dodge and re-distributing it in ounce to ¼ pound quantities to several persons in Fort Dodge area.
Michaels was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Michaels was sentenced to 126 months’ imprisonment. She must also serve an 8-year term of supervised release after the prison term. There is no parole in the federal system. Michaels is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, Iowa DCI Laboratory, the Iowa State Patrol, and the Webster County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-3012.
Follow us on X @USAO_NDIA.
Former nurse practitioner in Butte sentenced to five years in prison, ordered to pay more than $600,000 restitution for health care fraudRead the Press Release
MISSOULA — A former nurse practitioner in Butte was sentenced today to five years in prison, to be followed by three years of supervised release, for falsely billing an insurance company approximately $62 million for vitamin B-12 injections in which she received approximately $613,108 for the false claims, U.S. Attorney Jesse Laslovich said today.
The defendant, Tristan Ashley Svejkovsky, 41, pleaded guilty in August 2024 to health care fraud and to use of a registration number issued to another person.
U.S. District Judge Donald W. Molloy presided. The court also ordered $613,108 in restitution. The court allowed Svejkovsky to self-report to the U.S. Marshals Service.
The government alleged in court documents that Svejkovsky was a nurse practitioner whose license was suspended by the Montana Board of Nursing on April 1, 2022. Svejkovsky continued to prescribe controlled substances using her own name and Drug Enforcement Administration registration number until June 2022. After contact by the DEA, Svejkovsky agreed to voluntarily surrender her DEA registration. However, Svejkovsky continued to prescribe controlled substances using the name and DEA registration number of a friend who also was nurse practitioner. Svejkovsky misrepresented to her friend that her nursing license was on probation, not suspended, and that she would not use her friend’s information to prescribe drugs. In fact, Svejkovsky used her friend’s DEA registration number to write at least 28 prescriptions for controlled substances.
The government further alleged that Svejkovsky falsely billed Blue Cross Blue Shield of Montana for 158 vitamin B-12 injections that did not occur and stole $613,108 from the insurance company. In August 2021, Svejkovsky started falsely increasing the number of units of a standard vitamin B-12 injection from one unit to 1,000 units, thereby increasing the payment from the insurance company for each injection from roughly $4.88 to $4,880. After her license was suspended, Svejkovsky started submitting numerous such claims each month to Blue Cross Blue Shield of Montana by backdating claims to supposedly before her license was suspended. This conduct continued through May 2022, when Svejkovsky submitted four claims, this time claiming $15 million per vitamin B-12 injection to a new patient. In total, Svejkovsky billed the insurance company $62,310,000 in fraudulent claims for false vitamin B-12 injections and stole $613,108 from the insurance company.
The U.S. Attorney’s Office prosecuted the case. The DEA and FBI conducted the investigation.
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Former West Michigan Business Owners Sentenced to PrisonRead the Press Release
Gregory Hite and Bridget Bureau Defrauded Nearly 40 Victims of $3,019,972
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Gregory Hite and Bridget Bureau, both age 39 and residents of Lake, Michigan, were sentenced to federal prison for their roles in defrauding nearly 40 victims of more than $3 million dollars in a long-running fraud and identity theft scheme. U.S. District Judge Paul Maloney sentenced Hite to serve 150 months in prison and Bureau to serve to 51 months in prison. Both defendants were ordered to pay $1,952,186 in restitution to their victims.
“Protecting victims from financial crimes is part of keeping our communities safe,” said U.S. Attorney Mark Totten. “Hite and Bureau deceived unsuspecting victims out of millions of dollars for their personal gain. Criminals do not always wear masks and carry a gun; sometimes they carry out their deeds with a pen and paper and a dash of charm. We are determined to hold fraudsters accountable whoever they are.”
Gregory Hite and Bridget Bureau, a married couple, pleaded guilty to conspiring with each other to commit wire fraud and unlawfully using the identities of others to fraudulently obtain financing for their former west Michigan businesses. Those businesses operated under several names, including Hites RV, Alpine Trailer Sales, Great Lakes Recreational, Great Lakes Trailer, GLR Transport, and Great Lakes Trailer Manufacturing.
Between 2016 and 2020, the defendants assumed the identities of credit-worthy individuals to fraudulently obtain $5,443,982 in loans to support their fledgling business venture. The defendants made materially false statements on loan/equipment financing documents, unlawfully used other people’s identities to obtain financing they could not get on their own, impersonated those victims on phone calls with other victims, and used multiple limited liability companies to facilitate and conceal their fraudulent conduct. The fraud scheme collapsed when the defendants ran out of money and lenders began seeking repayment from the identity theft victims.
The sentencing of Gregory Hite and Bridget Bureau highlights the FBI’s steadfast commitment to safeguarding vulnerable victims and financial institutions from those who exploit and defraud the system,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI in Michigan will remain relentless in its efforts to protect our communities and ensure accountability for those who engage in fraudulent schemes.”
The Federal Bureau of Investigation investigated this case.
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Former Oakland Mayor Sheng Thao, Thao’s Longtime Partner, and Two Local Businessmen Charged with Bribery OffensesRead the Press Release
OAKLAND – An eight-count indictment was unsealed today charging former Oakland Mayor Sheng Thao, her longtime romantic partner Andre Jones, and local businessmen David Trung Duong and Andy Hung Duong with bribery offenses, and charging Andy Duong with making false statements to government agents.
According to the indictment filed Jan. 9, 2025, in the weeks leading up to the City of Oakland mayoral election in November 2022 and following her election as mayor, Thao promised to take official actions as the mayor of Oakland to benefit David Duong and Andy Duong, in exchange for the Duongs providing various benefits to Thao and Jones. David Duong was the president and CEO of a recycling company that provided residential recycling collection services to Oakland households, and was also the chairman and co-owner of a housing company formed to develop and manufacture prefabricated modular homes. Andy Duong, David Duong’s son, was an employee of the recycling company and also a founder and co-owner of the housing company.
The indictment describes that Thao promised to commit the City of Oakland to purchase housing units from the Duongs’ housing company, extend the City’s contract with the Duongs’ recycling company, and appoint city officials selected by the Duongs. In exchange, David and Andy Duong promised to and did fund a $75,000 negative mailer campaign targeting Thao’s opponents in the mayoral election, and made $95,000 in payments to Jones for a no-show job with their housing company, with the promise of additional payments, all intended for the benefit of Thao and Jones.
Once Thao became Mayor of Oakland in January 2023, she allegedly took steps in furtherance of the corrupt relationship with the Duongs, including using her influence to help appoint a high-level City of Oakland official selected by David and Andy Duong, and requesting that members of her staff meet with and tour the Duongs’ housing company.
Thao allegedly benefitted from the payments that the Duongs made to Jones. Financial records indicate that before Jones began receiving payments as a result of the bribery scheme, Thao either paid the entirety of or split with Jones the rent for their shared residence. However, starting in January 2023, soon after Jones began receiving payments as part of the bribery scheme, Jones began paying the entirety of their rent. In addition, beginning in January 2023, Jones increased his contribution to, or paid the entirety of, shared bills with Thao, including household utility bills and mobile phone bills.
Defendants allegedly took steps to conceal their bribery scheme by, among other actions: at Thao’s direction, making the bribe payments to Jones to avoid a paper trial to Thao; misrepresenting that Jones had a legitimate job with the Duongs’ housing company to mask the bribery payments; creating false invoices for the bribe payments from the Duongs’ recycling company; and failing to disclose benefits received on California Form 700, Statement of Economic Interests.
“The public deserves honesty and transparency from City Hall. When elected officials agree to a pay-to-play system to benefit themselves rather than work for the best interests of their constituents, that breaches the public trust,” said First Assistant United States Attorney Patrick D. Robbins. “This indictment reaffirms the U.S. Attorney’s Office’s commitment to root out, investigate, and prosecute corruption in our local governments.”
“Our communities are entitled to leaders who act in their best interest, free from the shadow of corruption,” said FBI Acting Special Agent in Charge Dan Costin. “Today’s actions demonstrate our resolute determination to protect the integrity of our government and ensure accountability for those who betray the public’s trust.”
“To protect the public trust, Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners at the FBI and IRS Criminal Investigation (CI) to investigate and prosecute those individuals responsible for fraud schemes committed against a government agency, businesses, and the public,” said San Francisco Division Inspector in Charge Stephen M. Sherwood of the U.S. Postal Inspection Service (USPIS).
“The alleged crimes committed against the citizens of Oakland by former Mayor Thao and her co-conspirators are a clear breach of public trust and cannot be tolerated,” said IRS Criminal Investigation Oakland Field Office Special Agent in Charge Linda Nguyen. “Public corruption schemes are rooted in greed and typically leave a money trail behind. IRS-CI specializes in following that trail and building cases that lead to justice.”
The indictment charges each defendant with one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371; one count of bribery concerning programs receiving federal funds in violation of 18 U.S.C. § 666(a)(1)(B) or 18 U.S.C. § 666(a)(2); one count of conspiracy to commit honest services mail and wire fraud in violation of 18 U.S.C. § 1349; one count of honest services mail fraud in violation of 18 U.S.C. §§ 1341, 1346; and two counts of honest services wire fraud in violation of 18 U.S.C. §§ 1343, 1346. Andy Duong was also charged with one count of making false statements to government agents in violation of 18 U.S.C. § 1001(a)(2).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, defendants face a maximum sentence of 20 years in prison for each count under 18 U.S.C. § 1349, 18 U.S.C. § 1341, and 18 U.S.C. § 1343, a maximum sentence of 10 years in prison for each count under 18 U.S.C. §§ 666(a)(1)(B) and (a)(2), and a maximum of five years in prison for the count under 18 U.S.C. § 371. Andy Duong faces a maximum sentence of five years in prison for the count under 18 U.S.C. § 1001. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled to make their initial federal court appearance in Oakland at 10:30 a.m. on Jan. 17, 2025, before U.S. Magistrate Judge Kandis A. Westmore.
Assistant U.S. Attorneys Molly K. Priedeman, Abraham Fine, and Lloyd Farnham are prosecuting the case with the assistance of Amala James and Madeline Wachs. The prosecution is the result of an investigation by the FBI, USPIS, and IRS-CI.
Sheng Thao Indictment
Former Liberian Rebel General Pleads Guilty to Immigration FraudRead the Press Release
A New Jersey man pleaded guilty yesterday to using and possessing a green card that he unlawfully obtained by making false statements about his involvement in the civil war in the West African nation of Liberia.
According to court documents, Laye Sekou Camara, 46, of Mays Landing, New Jersey, was a general with a Liberian rebel group from approximately 1999 to 2003 and fought against the Liberian government that was led by then-President Charles Taylor. Camara, also known as K-1 and Dragon Master, entered the United States pursuant to an immigrant visa and later obtained Lawful Permanent Resident status and a green card by falsely stating on immigration forms that he had never participated in extrajudicial killings or other acts of violence; had never been involved with a paramilitary unit, rebel group, or guerilla group; and had never engaged in the recruitment or use of child soldiers.
Camara pleaded guilty to three counts of using and one count of possessing a fraudulently obtained green card. According to the indictment, Camara used the green card when he applied for a Pennsylvania identification card in 2017, applied for a New Jersey home health care aide license in 2020, and sought employment at a New Jersey-based home health care agency in 2020, and he was in possession of the green card when he was arrested in 2022 at JFK International Airport in New York before attempting to board an international flight.
Camara is scheduled to be sentenced on May 19, 2025, and faces a maximum penalty of 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania; and Special Agent in Charge Edward V. Owens of Homeland Security Investigations (HSI) Philadelphia made the announcement.
HSI is investigating the case, with assistance from the Pennsylvania Attorney General’s Office and U.S. Department of State’s Diplomatic Security Service at the U.S. Embassy in Monrovia, Liberia.
Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys Linwood C. Wright Jr., Patrick J. Brown, and Kelly M. Harrell for the Eastern District of Pennsylvania are prosecuting the case.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the U.S. Immigration and Customs Enforcement online tip form.
Former Liberian Rebel General Pleads Guilty to Immigration FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero, the Justice Department, and Homeland Security Investigations announced that Laye Sekou Camara, 46, of Mays Landing, New Jersey, entered a plea of guilty yesterday before United States District Court Judge Chad F. Kenney to using and possessing a green card that he unlawfully obtained by making false statements about his involvement in the civil war in the west African nation of Liberia.
Camara pleaded guilty on the eve of trial to all charges against him — three counts of using, and one count of possessing, a fraudulently obtained green card.
According to court documents, Camara was a general with a Liberian rebel group from approximately 1999 to 2003 and fought against the Liberian government that was led by then-President Charles Taylor. Camara, also known as K-1 and Dragon Master, entered the United States pursuant to an immigrant visa and later obtained Lawful Permanent Resident status and a green card by falsely stating on immigration forms that he had never participated in extrajudicial killings or other acts of violence; had never been involved with a paramilitary unit, rebel group, or guerilla group; and had never engaged in the recruitment or use of child soldiers.
According to the indictment, Camara used the green card when he applied for a Pennsylvania identification card in 2017, applied for a New Jersey home health care aide license in 2020, and sought employment at a New Jersey-based home health care agency in 2020, and he was in possession of the green card when he was arrested in 2022 at JFK International Airport in New York before attempting to board an international flight.
Camara is scheduled to be sentenced on May 19, 2025, and faces a maximum penalty of 40 years in prison.
“Respecting both human dignity and the rule of law is fundamental to who we are as a nation,” said U.S. Attorney Romero. “Camara lied about his brutal history in Liberia to get a green card and live in the United States, enjoying the benefits and protections provided by our government’s laws, even as he flouted them. The Department of Justice is committed to working with our federal and international partners to deny human rights violators safe haven in this country.”
“The guilty plea by Laye Sekou Camara is another resounding example of coordination and collaboration targeting human rights violators globally,” said Edward V. Owens, Special Agent in Charge of HSI Philadelphia. “Camara fraudulently claimed that he had not participated in Liberia’s civil war. In fact, Camara, also known as ‘Dragon Master,’ was a high-ranking member of the Liberians United for Reconciliation and Democracy (LURD) rebel group during Liberia's Second Civil War. As such, he was involved in committing atrocities, including the massacre of civilians, and the recruitment of child soldiers. HSI, along with the excellent prosecutors with the U.S. Attorney’s Office, will continue to thoroughly investigate and prosecute such offenses to ensure that war criminals that engage in such horrific crimes against humanity will find no refuge within the United States.”
This case is being investigated by HSI, with assistance from the Pennsylvania Attorney General’s Office and U.S. Department of State’s Diplomatic Security Service at the U.S. Embassy in Monrovia, Liberia.
Assistant U.S. Attorneys Linwood C. Wright Jr., Patrick Brown, and Kelly M. Harrell are prosecuting the case, with Trial Attorney Chelsea Schinnour of the Department of Justice Criminal Division’s Human Rights and Special Prosecutions Section.
Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form.
Former Finance Minister of Mozambique Sentenced in $2B Fraud and Money Laundering SchemeRead the Press Release
The former Finance Minister of Mozambique was sentenced today to 102 months in prison for his role in a $2 billion international fraud, bribery, and money laundering scheme, in which he received $7 million in bribes to approve fraudulent loans.
According to court documents and evidence presented at trial, Manuel Chang, 69, of Mozambique, received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely told banks and investors that the loan proceeds would be used for the projects and not to pay bribes to government officials. In fact, however, Chang and his co-conspirators diverted more than $200 million of the loan proceeds that were used, among other things, to pay bribes and kickbacks to Chang and others.
“Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”
“Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” said Acting U.S. Attorney Carolyn Pokorny for the Eastern District of New York. “My office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”
“Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy-bank.”
Between approximately 2013 and 2015, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators — including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company — ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.
Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.
On Aug. 8, 2024, Chang was convicted at trial of one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. In addition to the term of imprisonment, Chang was ordered to forfeit $7 million. A restitution amount will be determined at a later date.
In October 2021, Credit Suisse AG and CSSEL (together, Credit Suisse) admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and the U.S. Attorney’s Office for the Eastern District of New York. As a part of the resolution, Credit Suisse paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.
The FBI New York Field Office investigated the case.
Fraud Section Trial Attorney Peter Cooch, MLARS Trial Attorney Morgan Cohen, and Assistant U.S. Attorneys Hiral D. Mehta and Jonathan Siegel for the Eastern District of New York prosecuted the case.
The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Finance Minister of Mozambique Sentenced to 102 Months’ Imprisonment for His Role in $2 Billion Fraud and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Manuel Chang, the former Finance Minister of Mozambique, was sentenced by United States District Judge Nicholas G. Garaufis to a term of imprisonment of 102 months and ordered to pay $7 million in forfeiture. The restitution amount will be determined at a later date. Chang was convicted after a four-week trial in July and August 2024 of conspiring to commit wire fraud and money laundering in connection with his role in a $2 billion international fraud, bribery and money laundering scheme that victimized investors in the United States and elsewhere. He was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States and extradited to the Eastern District of New York in July 2023.
Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, Brent S. Wible, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” stated Acting United States Attorney Pokorny. “My Office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”
“Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”
“Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” stated FBI Assistant Director in Charge Dennehy. “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy bank.”
As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects. As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials. In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.Between approximately 2013 and 2016, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM). The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.
Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks. These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans. The loans were subsequently sold in whole or in part to investors worldwide, including in the United States. In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used. Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.
In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS). As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.
The Office’s Business & Securities Fraud Section is handling the case. Assistant United States Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with assistance from Paralegal Specialist Timothy Migliaro. The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain and Portugal.
The Defendant:
MANUEL CHANG
Age: 69
MozambiqueE.D.N.Y. Docket No. 18-CR-681 (NGG)
Former CIA analyst pleads guilty to transmitting Top Secret National Defense InformationRead the Press Release
ALEXANDRIA, Va. – A former CIA analyst pled guilty today to retaining and transmitting Top Secret National Defense Information to people who were not entitled to receive it, information which was publicly posted on a social media platform in October 2024.
According to court documents, Asif William Rahman, 34, of Vienna, was an employee of the CIA since 2016 and had a Top Secret security clearance with access to Sensitive Compartmented Information (SCI).
“Asif Rahman is pleading guilty in federal court three months to the day that he disclosed top secret American documents in violation of his oath, his responsibility, and the law,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “This District, in partnership with federal law enforcement and the intelligence community, exemplified dedication, skill, and speed to bring him to justice expeditiously. Mr. Rahman’s actions placed lives at risk, undermined U.S. foreign relations, and compromised our ability to collect vital intelligence in the future.”
“Mr. Rahman betrayed the trust of the American people by unlawfully sharing classified national defense information he swore an oath to protect,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s guilty plea demonstrates that the Justice Department will spare no effort to swiftly find and aggressively prosecute those who harm the United States by illegally disclosing our national security secrets.”
“With today's plea, Asif Rahman acknowledges he betrayed the trust of his country by sharing classified information in spite of the risk to the United States and our allies,” said Robert Wells, Executive Assistant Director of the FBI's National Security Branch. “Government employees who are granted security clearances and given access to our nation's classified information must promise to protect it. Rahman blatantly violated that pledge and took multiple steps to hide his actions. The FBI will use all our resources to investigate and hold accountable those who illegally transmit classified information and endanger the national security interests of our country.”
“Today’s plea demonstrates the FBI’s resolve to deploy the necessary tools and authorities to identify, locate, and bring to justice a government clearance holder who violated the oath he took to support and defend the U.S. Constitution,” said Assistant Director David Sundberg of the FBI Washington Field Office. “This is a good reminder to all clearance holders that the FBI and our Intelligence Community partners will spare no resource to immediately find and hold accountable those who violate the law and disclose classified information without authorization, no matter where in the world they are located.”
According to court documents, on Oct. 17, 2024, Rahman accessed and printed two Top Secret documents containing National Defense Information regarding a U.S. foreign ally and its planned actions against a foreign adversary. Rahman removed the documents, photographed them, and transmitted them to individuals he knew were not entitled to receive them. By Oct. 18, 2024, the documents appeared publicly on multiple social media platforms, complete with the classification markings.
After Oct. 17, 2024, Rahman deleted and edited journal entries and written work product on his personal electronic devices to conceal his personal opinions on U.S. policy and drafted entries to construct a false narrative regarding his activity. Rahman also destroyed multiple electronic devices, including a personal mobile device and an internet router he used to transmit classified information and photographs of classified documents, and discarded the destroyed devices in public trash receptacles in an effort to thwart potential investigations into him and his unlawful conduct.
Beginning in the spring of 2024 and continuing through November 2024, Rahman repeatedly accessed and printed classified National Defense Information, including documents classified up to the Top Secret level, to take them to his residence. There, Rahman reproduced the documents and, while doing so, altered them in an effort to conceal their source and his activity. Rahman then communicated Top Secret information that he learned in the course of his employment to multiple individuals he knew were not entitled to receive it.
Rahman was indicted by a grand jury on Nov. 7, 2024, and was arrested by the FBI as he arrived to work on Nov. 12, 2024. He has remained in custody since his arrest.
Rahman pled guilty to two counts of willful retention and transmission of classified information related to the national defense. He is scheduled to be sentenced on May 25. He faces up to 10 years in prison for both counts in the plea agreement. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office is investigating the case.
Assistant U.S. Attorney Troy A. Edwards Jr. for the Eastern District of Virginia and Trial Attorney Brett Reynolds of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-CR-249.
Former CIA Analyst Pleads Guilty to Transmitting Top Secret National Defense InformationRead the Press Release
A former CIA analyst pleaded guilty today to retaining and transmitting Top Secret National Defense Information to people who were not entitled to receive it, information which was publicly posted on a social media platform in October 2024.
According to court documents, Asif William Rahman, 34, of Vienna, was an employee of the CIA since 2016 and had a Top-Secret security clearance with access to Sensitive Compartmented Information (SCI).
“Mr. Rahman betrayed the trust of the American people by unlawfully sharing classified national defense information he swore an oath to protect,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s guilty plea demonstrates that the Justice Department will spare no effort to swiftly find and aggressively prosecute those who harm the United States by illegally disclosing our national security secrets.”
“Asif Rahman is pleading guilty in federal court three months to the day that he disclosed top secret American documents in violation of his oath, his responsibility, and the law,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “This District, in partnership with federal law enforcement and the intelligence community, exemplified dedication, skill, and speed to bring him to justice expeditiously. Mr. Rahman’s actions placed lives at risk, undermined U.S. foreign relations, and compromised our ability to collect vital intelligence in the future.”
“With today's plea, Asif Rahman acknowledges he betrayed the trust of his country by sharing classified information in spite of the risk to the United States and our allies,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “Government employees who are granted security clearances and given access to our nation's classified information must promise to protect it. Rahman blatantly violated that pledge and took multiple steps to hide his actions. The FBI will use all our resources to investigate and hold accountable those who illegally transmit classified information and endanger the national security interests of our country.”
“Today’s plea demonstrates the FBI’s resolve to deploy the necessary tools and authorities to identify, locate, and bring to justice a government clearance holder who violated the oath he took to support and defend the U.S. Constitution,” said Assistant Director David Sundberg of the FBI Washington Field Office. “This is a good reminder to all clearance holders that the FBI and our Intelligence Community partners will spare no resource to immediately find and hold accountable those who violate the law and disclose classified information without authorization, no matter where in the world they are located.”
According to court documents, on Oct. 17, 2024, Rahman accessed and printed two Top Secret documents containing National Defense Information regarding a U.S. foreign ally and its planned actions against a foreign adversary. Rahman removed the documents, photographed them, and transmitted them to individuals he knew were not entitled to receive them. By Oct. 18, 2024, the documents appeared publicly on multiple social media platforms, complete with the classification markings.
After Oct. 17, 2024, Rahman deleted and edited journal entries and written work product on his personal electronic devices to conceal his personal opinions on U.S. policy and drafted entries to construct a false narrative regarding his activity. Rahman also destroyed multiple electronic devices, including a personal mobile device and an internet router he used to transmit classified information and photographs of classified documents, and discarded the destroyed devices in public trash receptacles in an effort to thwart potential investigations into him and his unlawful conduct.
Beginning in the spring of 2024 and continuing through November 2024, Rahman repeatedly accessed and printed classified National Defense Information, including documents classified up to the Top Secret level, to take them to his residence. There, Rahman reproduced the documents and, while doing so, altered them in an effort to conceal their source and his activity. Rahman then communicated Top Secret information that he learned in the course of his employment to multiple individuals he knew were not entitled to receive it.
Rahman was indicted by a grand jury on Nov. 7, 2024, and was arrested by the FBI as he arrived to work on Nov. 12, 2024. He has remained in custody since his arrest.
Rahman pleaded guilty to two counts of willful retention and transmission of classified information related to the national defense. He is scheduled to be sentenced on May 15, 2025. He faces a maximum penalty of 10 years in prison for both counts in the plea agreement. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office is investigating the case.
Assistant U.S. Attorney Troy A. Edwards Jr. for the Eastern District of Virginia and Trial Attorney Brett Reynolds of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former Attorney Sentenced to Federal Prison for Fraud and Tax EvasionRead the Press Release
PROVIDENCE, RI – Former Rhode Island personal injury attorney Peter P.D. Leach has been sentenced to nearly three years in federal prison and ordered to repay clients that he defrauded when he conducted a Ponzi scheme with their settlement funds, announced United States Attorney Zachary A. Cunha.
At the time of his guilty plea to charges of wire fraud and tax evasion, Leach admitted that he forged client signatures and deposited client settlement checks into his attorney IOLTA account, using those funds to pay personal expenses and to repay earlier clients whose funds he had embezzled. To prolong his scheme, Leach repeatedly made false representations to clients about the status of their cases and told them that he would pay their medical expenses and other bills with settlement funds he had received.
Leach also admitted that from 2014-2019, he took multiple steps to conceal his gains from the IRS, including by making false statements on IRS forms regarding his assets; making false statements to IRS Revenue officers about his ability and willingness to pay his taxes and about his withdrawal of over $540,000 of cash from his IOLTA accounts for payment of personal expenses; and by transferring money from his client account to the account of family members to make personal payments.
“Peter Leach egregiously abused the core responsibility of any lawyer- the trust of his clients – to help himself to money that belonged to victims of accidents and tragedies, and then tried to cheat on his taxes into the bargain” remarked U.S. Attorney Zachary A. Cunha. “Today’s sentence provides not just accountability, but hopefully a chance for his victims to recover some of the funds that he stole from them, and it serves notice of this Office’s continued determination to tireless pursue the perpetrators of financial crimes against vulnerable victims.”
“While it is the expectation that a person can trust their attorney, Leach used his position to take advantage of his clients. He used their money and personal information to line his pockets, telling lie after lie to get what he wanted. Now, there is no lie that he can tell to hide the fact that he will spend the next few years in prison for his criminal acts. It’s time for him to face the truth,” said Thomas E. Demeo, Acting Special Agent in Charge of IRS-CI Boston.
On Thursday, U.S. District Court Judge Leo T. Sorokin sentenced Leach to 33 months of incarceration to be followed by two years of federal supervised release. Additionally, Leach was ordered to pay restitution to his victims totaling $299,774.41. In a separate restitution matter, the court is expected to enter an order that Leach pay $320,622.76 to the IRS, representing taxes he failed to pay to the agency.
The case was prosecuted by Assistant United States Attorneys Sandra R. Hebert and Denise M. Barton.
The matter was investigated by the Rhode Island State Police Financial Crimes Unit and Internal Revenue Service – Criminal Investigation.
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