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Monday 18 November 2024
Fresno Man Sentenced to 8 Years in Prison for Possessing a Live Hand Grenade, Ammunition, and MethamphetamineRead the Press Release
FRESNO, Calif. — Eric Feldmann, 39, of Fresno, was sentenced today to eight years and one month for possessing methamphetamine and for being a felon in possession of ammunition and an MKII hand grenade, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 24, 2023, Feldmann knowingly possessed an MKII hand grenade with a M204A2 Fuze in his car. The grenade was seized by police and destroyed. Feldmann also possessed between 50 and 200 grams of methamphetamine in plastic bags. On Jan. 9, 2024, law enforcement officers seized several rounds of ammunition from Feldmann’s storage locker. Feldmann had been previously convicted a felony and is prohibited from possessing a firearm or ammunition.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), the Fresno Police Department, Fresno County Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorneys Cody S. Chapple and Justin J. Gilio prosecuted the case.
Fraud Perpetrated on a Pandemic Housing Assistance Program Results in Guilty PleaRead the Press Release
WASHINGTON, DC – Geary Simon, 71, of Washington, D.C., entered a guilty plea today to one count of wire fraud in connection with a presidentially declared disaster or emergency and to one count of possession of a firearm by a prohibited person. The guilty plea was entered before U.S. District Judge Dabney L. Friedrich.
According to court filings, Simon obtained $38,560 from a D.C. government program called Stronger Together by Assisting You D.C. (STAY DC). The STAY DC program was intended to provide financial assistance to tenants living in the District who needed support during the COVID-19 pandemic to cover their housing and utility expenses due to a loss of income. In April 2021, the city allocated $352 million in federal relief funds for the program. Applicants applied for funds from the STAY DC program via an online portal operated by the D.C. Department of Human Services (DC-DHS).
Court filings show that Simon applied to the STAY DC program on June 22, 2021. In his application, SIMON stated that he was a tenant who rented a property in Washington, D.C., located at 2433 H Street, NW; that his landlord was “Robert Sutton”; that Simon owed “Robert Sutton” the sum of $72,000 in past due rent for the months of April 2020 through July 2021; that the telephone number for “Robert Sutton” was (***) ***-6933; and that “Robert Sutton” could be contacted at the email address *******@gmail.com. All of these statements were materially false and misleading. Simon was not a “tenant” at that address; “Robert Sutton” was not Simon’s landlord; Simon did not owe “Robert Sutton” the sum of $72,000 in unpaid rent; and the phone number and email address that Simon provided for “Robert Sutton” were actually for a phone number and email account that Simon created and controlled. Unaware of the fraud, DC-DHS granted Simon’s application for funding and issued Simon a check in the amount of $38,560 that DC-DHS would not otherwise have approved.
After receiving those funds from DC-DHS, court documents explain, Simon used those taxpayer-backed relief funds for personal purposes, such as to pay the private school tuition of Simon’s children and to satisfy Simon’s court-ordered child support obligations.
On March 14, 2024, law enforcement executed a search warrant at Simon’s personal residence and recovered two firearms. Simon has at least two prior felony convictions, including a conviction for carrying a pistol without a license. By virtue of those prior felonies, Simon was prohibited from possessing any firearms under federal law.
A sentencing hearing is scheduled for April 11, 2025. Simon faces a statutory maximum of 30 years in prison on the wire fraud charge and a statutory maximum of 15 years in prison on the firearms possession charge.
This case is being investigated by the FBI Washington Field Office. It is being prosecuted by Assistant United States Attorney John W. Borchert.
Four New Orleans Residents Indicted on Federal Kidnapping ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that HECTOR MONDRAGON-FLORES a/k/a Fumele, age 32, EDWIN SALGADO-NUNEZ, age 29, ABEL GARCIA, age 48, and JANNETTE RAMIREZ, age 33, were indicted on November 15, 2024, for kidnapping, and conspiracy to commit kidnapping, in violation of Title 18, United States Code, Sections 1201(a)(1) and (c). Additionally, HECTOR MONDRAGON-FLORES a/k/a Fumele is charged with assault on a federal officer with a deadly weapon, in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and being an alien in possession of a firearm, in violation of Title 18, Untied States Code, Sections 922(g)(5) and 924(a)(8).
The kidnapping, and conspiracy to commit kidnapping, offenses each carry up to life in prison, up to a $250,00 fine, and up to five years of supervised release. The charge of assault on a federal officer with a deadly weapon carries up to 20 years in prison, up to a $250,000 fine, and up to three years of supervised release. The charge of being an alien in possession of a firearm carries up to 15 years in prison, up to a $250,000 fine, and up to three years of supervised release. Each of the four counts also carries a $100 mandatory special assessment fee.
According to court documents, beginning on or about October 1, 2024 through October 2, 2024, the defendants conspired to, and did, kidnap a victim and hold him for ransom. The defendants variously held the victim at gunpoint, bound his legs together and his arms together behind his back, and threatened to kill the victim if his father did not pay a $7,000 ransom. After receiving a $3,000 ransom payment from the victim’s father, the defendants also attempted to extract an additional ransom payment from the victim’s girlfriend. Ultimately, the defendants took the victim to an ATM where he withdrew $400 in cash in exchange for his release.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, and the New Orleans Police Department. Assistant United States Attorneys David Berman and Sarah Dawkins of the Violent Crime Unit are in charge of the prosecution.
Former Virginia Inmate Sentenced to More Than a Decade in Prison for Drug Distribution and Money Laundering ConspiraciesRead the Press Release
BOSTON – A former inmate at the Buckingham Correctional Center in Dillwyn, Va. (Buckingham) was sentenced today in connection with leading conspiracies to distribute controlled substances and launder the proceeds in Massachusetts and inside the Virginia prison.
Michael Mao, a/k/a “Whitebodian,” a/k/a “Spook,” a/k/a “Leno,” 38, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 121 months in prison to be followed by four years of supervised release. In August 2024, Mao pleaded guilty to money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute MDMA and Buprenorphine.
Mao was serving prison sentences in Virginia for several state convictions for violent offenses, including attempted murder. From approximately December 2019 through May 2021, Mao conspired with co-conspirators Sathtra Em and Sarath Yut, to source MDMA and Buprenorphine from Massachusetts and mail the drugs to Virginia, where they were smuggled into Buckingham for him to sell to other inmates. The drug conspiracy involved several schemes for illegally introducing the drugs into Buckingham, including bribing a corrupt prison guard, Kenneth Owen. Mao and his co-conspirators also conspired to launder the drug proceeds to conceal their drug distribution activity.
Sarath Yut pleaded guilty to drug trafficking and money laundering conspiracies and was sentenced in October 2023 to 15 years in prison. Sathtra Em pleaded guilty to drug trafficking and money laundering conspiracies and was sentenced in August 2024 to 21 months in prison. Kenneth Owen pleaded guilty to drug trafficking and money laundering conspiracies in September 2024. He is scheduled to be sentenced on Dec. 10, 2024.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, the Internal Revenue Service’s Criminal Investigations and the Virginia Department of Corrections. Assistant U.S. Attorney Fred M. Wyshak, III of the Organized Crime & Gang Unit and Assistant U.S. Attorney Alexandra Amhrein of the Asset Forfeiture Unit prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Pentwater-Area Business Owner Sentenced to Prison in Timber Fraud SchemeRead the Press Release
Trent Witteveen Operated Titan Timber as a Ponzi-like Scheme from June 2018 to January 2021
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Trent William Witteveen, 40, of Montague, Michigan, was sentenced by U.S. District Court Judge Robert J. Jonker to 41 months in prison for orchestrating a multi-year wire fraud scheme. The court additionally ordered Witteveen to pay $844,282 in financial restitution to his victims. Witteveen, formerly of Pentwater, Michigan, operated a timber harvesting business under the names “Titan Timber” and “Titans Timber LLC.”
“Witteveen stole from innocent investors by operating his sham timber business as a Ponzi scheme, solely to line his own pockets,” said U.S. Attorney Mark Totten. “Financial fraud is a serious problem and the schemes are endless. Today’s sentence sends a message that my office will vigorously prosecute fraudsters whose lies and misrepresentations cause devastating financial harm to honest and hard-working individuals.”
According to court documents, between June 2018 and January 2021, Witteveen operated a Ponzi-like scheme involving his timber business that defrauded investors and others. Witteveen routinely represented to investors that he secured timber harvesting rights from landowners and promised the investors a significant return if they provided the investment capital necessary to pay the landowner for such rights. In reality, on most occasions, no current contracts for timber harvesting existed because, unknown to the investors, Witteveen had already harvested timber from the landowner’s property at an earlier time.
On other occasions, to obtain more investment capital from the investors, Witteveen misrepresented the true value of timber on a landowner’s property by purposely inflating the value to an amount higher than what he knew a sawmill would pay for the lumber after harvesting the timber. Witteveen also obtained cashier’s checks or money orders payable to the landowners and showed those checks to the investors to make his contract with the landowner appear genuine. In reality, no such contract existed, and Witteveen simply deposited those funds back into his own bank account.
After Witteveen obtained money from an investor, he used that investor’s money to repay all or some of what he owed to prior investors, or to repay the same investor with his or her money to give the appearance that he was actually paying the promised returns. This allowed Witteveen to perpetuate his scheme by causing investors to believe that they were likely to realize the promised returns and to continue to invest with him. During the period alleged in the indictment, Witteveen obtained over $2,000,000.00 from investors and used most of that money to pay his own personal expenses and fund his lifestyle.
“Today’s sentencing of Trent Witteveen, a former Timber business owner, highlights the serious consequences of committing financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Mr. Witteveen exploited the trust of his investors for personal gain, creating harm to others and the integrity of our financial systems. Members from FBI Michigan remain committed to protecting Michigan residents by investigating and arresting those who engage in fraudulent schemes. I would like to thank the U.S. Attorney's Office of the Western District of Michigan for their partnership in ensuring Mr. Witteveen is held accountable for his criminal acts."
The FBI’s Grand Rapids Office investigated the case and received assistance during the investigation from the Michigan State Police. Assistant U.S. Attorney Ron Stella prosecuted the case.
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Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
“Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes."
U.S. Attorney Philip R. Sellinger
According to documents filed in this case and statements made in court:
Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.
According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfFormer CEO of 500.Com (now Bit Mining Ltd.) Indicted for Role in Bribing Japanese Officials and Bit Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
U.S. Attorney Philip R. Sellinger
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former CEO Indicted for Role in Bribing Japanese Officials and BIT Mining Ltd. Resolves Foreign Bribery InvestigationRead the Press Release
An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.
BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.
A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its then-CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.
Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.
BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.
The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.
BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.
The FBI’s International Corruption Unit is investigating the case.
Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey are prosecuting the cases.
The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the deferred prosecution agreement here.
View the indictment here.
View the information here.
Former Banker Pleads Guilty to Bank FraudRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces that Igor Shushpanov (39, Tampa) today pleaded guilty to a criminal information charging him with one count of bank fraud. Shushpanov faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from as early as February 2017, until in an around July 30, 2022, Shushpanov opened checking accounts at multiple credit unions that were members of the Federal Home Loan Bank system. Shushpanov then obtained credit cards or personal lines of credit from the credit unions. Upon receipt of the credit cards or personal lines of credit, Shushpanov made purchases or cash advances up to the credit limit. Shushpanov would then purportedly pay off the entire balance by sending worthless checks from accounts under his custody and control.
Between the time that the financial institutions credited Shushpanov’s credit account balances and the worthless checks were returned for insufficient funds, he would again max-out his credit cards and personal lines of credit resulting in higher negative credit account balances. Shushpanov continued perpetrating this scheme by repeatedly depositing worthless checks and making subsequent credit card or personal line of credit purchases, then filed a bankruptcy petition to avoid paying the credit unions he defrauded.
As part of the plea agreement, Shushpanov has agreed to forfeit $303,093.26, the proceeds of the charged criminal conduct.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida, Tampa Division, also provided substantial investigative assistance. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Felon heads to prison for violent carjacking attackRead the Press Release
HOUSTON – A 28-year-old Houston resident has been sentenced for carjacking during which one victim was repeatedly struck with a pistol, announced U.S. Attorney Alamdar S. Hamdani.
Dominique Luis-Donte Quinones-Amos pleaded guilty Feb. 12.
U.S. District Judge Andrew S. Hanen has now ordered Quinones-Amos to serve 108 months in federal prison to be immediately followed by three years of supervised release.
At the hearing, the court heard additional evidence that detailed his arrests in the Los Angeles vicinity for burglary and grand theft auto. In handing down the sentence, the court noted his previous convictions which included one for felony assault of a family member impeding breathing or circulation in which the victim lost consciousness.
“Quinones-Amos engaged in a series of offenses that put the people of this district in danger in a variety of ways – a carjacking, brandishing a gun, using fully-automatic conversion devices and even financial crimes,” said Hamdani. “This office will not allow such dangers to go unanswered, and today’s sentence will keep the community safe for several years to come from this one-man wrecking crew.”
As a convicted felon, Quinones-Amos was prohibiting from possessing a firearm or ammunition per federal law. However, law enforcement had discovered social media postings in which he appeared to be selling two firearms with extended magazines and firing a firearm with a machine gun conversion device (MCD) which makes a semi-automatic handgun operate as a fully automatic handgun.
Upon his arrest, authorities found him again in possession of another firearm.
During the investigation, law enforcement was able to tie Quinones-Amos to the violent carjacking that occurred Oct. 4, 2021.
On that date, two men were returning to an apartment complex located on Dunlap Street in a 2013 Dodge Avenger. Once they exited the vehicle into the parking lot, Quinones-Amos approached the two men, striking one in the face. That victim subsequently fled.
Quinones-Amos then pointed a firearm at the driver and struck him in his face with the gun multiple times. Quinones-Amos entered and drove off in the victim’s vehicle while he laid motionless on the ground.
Law enforcement later recovered the vehicle and were able to link it to Quinones-Amos through DNA testing.
In addition, the investigation further revealed Quinones-Amos was selling fraudulent credit cards and money orders in the names of other people.
Quinones-Amos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman prosecuted the case.
Federal Grand Jury Indicts Bullitt County Man for Federal Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville returned an indictment on November 5, 2024, charging a Bullitt County man with possession of a firearm by a convicted felon and possession of an unregistered firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Sheriff Walt Sholar of the Bullitt County Sheriff’s Office made the announcement.
According to the indictment, Jason Argenbright, 45, of Lebanon Junction, was charged with possession of a firearm by a convicted felon and possession of an unregistered firearm. On August 20, 2024, Argenbright possessed a DPMS Arms, model A-15, .223 caliber rifle. The rifle was equipped with silencer not registered to him in the National Firearms Registration and Transfer Record. Argenbright was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses.
On January 28, 2011, in Bullitt Circuit Court, Argenbright was convicted of manufacturing methamphetamine.
On March 2, 2011, in Bullitt Circuit Court, Argenbright was convicted of possession of a controlled substance, first degree, first offense and unlawful possession of a methamphetamine precursor.
On November 29, 2007, in Bullitt Circuit Court, Argenbright was convicted of possession of a controlled substance, first degree, first offense – drug unspecified.
The defendant made his initial court appearance on November 13, 2024, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. The Court ordered the defendant detained pending trial. If convicted, he faces a maximum sentence of 25 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.There is no parole in the federal system.
This case is being investigated by the ATF and Bullitt County Sheriff’s Office.
Assistant U.S. Attorney Frank Dahl is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Drug Trafficker with Gun Sentenced to 20 Years After Leading State Troopers on High-Speed ChaseRead the Press Release
RALEIGH, N.C. – Shoun Lamelle Wright Jr., 28, a resident of Sumter, South Carolina, was sentenced to 240 months in prison for drug trafficking and firearms offenses after he led law enforcement on a high-speed chase. These charges included possession with intent to distribute methamphetamine, cocaine, and fentanyl, as well as possession of a firearm by a felon. On August 4, 2024, he pled guilty to the charges.
“This armed drug runner tried to flee from state troopers at 135 miles per hour before ditching his dope out the driver’s side door,” said U.S. Attorney Michael F. Easley, Jr. “Running from law enforcement never works, and puts innocent motorists at risk. Many thanks to the NC Highway Patrol and Jacksonville Police for taking this dangerous felon off the streets.”
“This case not only highlights the risks that our members incur during the performance of their duties, but also the perilousness that hard-working North Carolinians can face as a result of such actions as they travel on our state’s highways,” said Colonel Freddy Johnson Jr., Commander of the North Carolina State Highway Patrol. “Our mission is to ensure the safety of our state’s motorists and inhabitants, and we greatly value the partnership of the Department of Justice in their pursuit to place accountability of criminals at the forefront to help us accomplish this mission. The decisiveness of this sentencing is undoubtedly a victory for the people of North Carolina.”
“Mr. Wright's complete and utter disregard for the safety of others is disturbing. Not only was he involved in activities that harmed our community, but he also deliberately put resident's lives at risk with his actions. I am thankful no one in the community was physically harmed by his actions. I commend the members from the Jacksonville Police Department, N.C. State Highway Patrol, the Federal Bureau of Investigation, and the U.S. Attorney's Office for their service to our community and for their excellent collaboration in bringing this case to a successful resolution,” said Jacksonville Police Chief Jarad Phelps.
According to court documents and other information presented in court, the N.C. State Highway Patrol (NCSHP) conducted a traffic stop on a vehicle driven by Wright on July 21, 2021. Wright initially pulled over and then fled as the trooper approached his vehicle, driving up to 135 miles per hour. Law enforcement made a successful stop when the vehicle entered Jacksonville. Once stopped, Wright dropped a bag containing 26 grams of crack out of the driver’s door, and a search of the vehicle resulted in the seizure of marijuana.
On July 29, 2021, officers with the Jacksonville Police Department (JPD) responded to a call from a security guard at the Platinum Gentlemen’s Club who saw an armed individual bagging narcotics in the establishment’s parking lot. The security guard stated that the individual, later identified as Wright, had pointed a pistol at him as he approached the vehicle. Later that day, a JPD officer identified the vehicle driven by Wright parked at a residence known to law enforcement due to previous narcotics and violent crime investigations. After Wright left the residence, the JPD officer initiated a traffic stop on his vehicle. Officers returned to the residence and conducted a search where they seized a loaded 9mm pistol with an obliterated serial number, a 27-round magazine, a second 9mm pistol, and a loaded .380 caliber pistol. They also seized nearly 2,000 grams of marijuana, more than 55 grams of crack, more than eight grams of cocaine, and over $7,000 in cash. Wright claimed ownership of the drugs and guns found at the residence. As a previously convicted felon, Wright cannot legally possess a firearm or ammunition.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The NCSHP, the JPD, and the FBI investigated the case.
Assistant U.S. Attorneys Ashley Foxx and Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00100-BO.
Delco Man Sentenced to More Than 11 Years in Prison for Armed Robbery of Metro by T-Mobile Store in 2022Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Donte Hayes, 26, of Clifton Heights, Pennsylvania, was sentenced today by United States District Court Judge Paul S. Diamond to 135 months in prison and five years of supervised release for the armed robbery of a Delaware County cellular phone store. At the time of the crime, Hayes was on state probation for burglary and a previous robbery.
In August 2022, Hayes was charged by indictment with one count of robbery interfering with interstate commerce (Hobbs Act robbery) and one count of using and carrying a firearm during and in relation to a crime of violence, pleading guilty to those charges in May of this year.
On the afternoon of June 9, 2022, Hayes entered a Metro by T-Mobile store in Clifton Heights, Pa. He initially posed as a customer, asking the store employee about the price of a wireless headset. Shortly thereafter, Hayes pointed a gun at the employee and stated that he “wanted the stuff.” In response, the employee placed the headset into the defendant’s open backpack. “No, the money,” Hayes replied. The employee opened the cash register and put $452 into the defendant’s backpack.
Hayes, removing a roll of duct tape from the backpack, ordered the employee to a rear office. He tied the employee to a chair and left the office, then walked out of the store with the headset and cash. The employee was eventually able to free himself and call 911.
As part of their investigation, Clifton Heights police obtained numerous video surveillance clips from residences and businesses in the area. They determined that the robber left the store on foot and walked to a Clifton Heights home, which proved to be the defendant’s residence.
Details of the robbery and the surveillance footage were disseminated within the Clifton Heights Police Department. Two weeks after the robbery, police officers spotted Hayes in front of his residence and took him into custody. At the time of his arrest, the defendant was wearing the stolen wireless headset and carrying a loaded .45 caliber pistol and ammunition in his backpack.
“Terrorizing an employee who’s just trying to earn a living so that you can steal money and merchandise is outrageous,” said U.S. Attorney Romero. “My office, the FBI, and our partners are working every day to hold armed repeat offenders like Mr. Hayes accountable, with the public’s safety our number one priority.”
“Armed robberies threaten the safety and security of our communities, undermining the hard work the FBI and its partners put in every day to protect the public," said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Today's sentencing sends a clear message: the FBI is steadfast in its commitment to removing violent offenders from our streets and ensuring they face justice."
The case was investigated by the Clifton Heights Police Department and FBI Philadelphia’s Newtown Square Resident Agency and is being prosecuted by Special Assistant United States Attorney Sandra M. Urban.
Chicago-Area Rap Artist and Celebrity Barber Pleads Guilty to Role in Nationwide Fraud ConspiracyRead the Press Release
BOSTON – A Chicago man has pleaded guilty in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.
Terrence Bender, a/k/a “Blends,” a/k/a “Dopeblends,” 32, pleaded guilty on Nov. 14, 2024 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Feb. 27, 2025. Bender was indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, rap artists Herbert Wright and Joseph Williams, their associate Demario Sorrells and one other co-defendant.
According to court documents, beginning in at least March 2017 through November 2018, Bender, Strong, Williams, Sorrells, Wright and, allegedly, one other co-defendant conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders' names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Bender and his co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, who consequently suffered losses in the amounts of the unauthorized transactions.
Strong was a music promoter and Bender was a rap artist and celebrity barber in the area around Chicago. Bender and his co-conspirators used illicit account information to obtain, among other things, a private jet chart flight, a New York City villa rental, designer puppies from a pet boutique and car insurance in Bender’s own name. In total, Bender was responsible for $103,000 in victim losses.
On July 28, 2023, Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official, and on Jan. 11, 2024, was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968and a $5,500 fine. On Feb. 2, 2024, Sorrells pleaded guilty to one count of conspiracy to commit wire fraud and, on Aug. 29, 2024, was sentenced to three years’ probation and ordered to pay restitution and forfeiture of $106,481. On March 8, 2024, Williams pleaded guilty to one count of conspiracy to commit wire fraud and, on Aug. 13, 2024, was sentenced to three years’ probation and ordered to pay restitution and forfeiture of $155,392. On May 22, 2024, Strong pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and, on Oct. 29, 2024, was sentenced to three years in prison and ordered to pay restitution and forfeiture of $2,159,874.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chicago Man Sentenced to 20 Years in Federal Prison for Robbing Three Banks at GunpointRead the Press Release
CHICAGO — A Chicago man has been sentenced to 20 years in federal prison for robbing three banks at gunpoint.
In 2020 and 2021, CHRISTOPHER PORTER, 53, robbed a bank in Evergreen Park, Ill., and two banks in Chicago. In all of the robberies, Porter pointed a gun at tellers and customers. In the third robbery, Porter put a customer in a headlock, pointed a gun at his head, and pinned him against a wall.
A federal jury in 2022 convicted Porter of all three robberies, as well as a firearm charge. U.S. District Judge Sharon Johnson Coleman imposed the sentence on Thursday during a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Cook County Sheriff’s Office.
“Defendant terrorized innocent bank tellers and customers,” Assistant U.S. Attorneys Thomas P. Peabody and Paige A. Nutini argued to the Court at sentencing. “His short spree of bank robberies was serious, violent, criminal conduct.”
Buffalo man sentenced for his role in narcotics conspiracy which resulted in a triple homicideRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that James Reed a/k/a Fatts, 42, of Buffalo, NY, who was convicted of narcotics conspiracy, conspiracy to obstruct justice, use of fire to commit a felony, and accessory after the fact, was sentenced to serve 166 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorneys Michael J. Adler, Maeve E. Huggins, and Joseph M. Tripi, who handled the case, stated that beginning in 2014, Reed, and others, began receiving and selling marijuana, heroin, and cocaine. Reed, and his co-conspirators utilized 973 Fillmore Avenue to store, package, and sell the illegal narcotics. In furtherance of the narcotics conspiracy, on September 15, 2019, Reed accompanied co-defendant Jariel Cobb to purchase a kilogram of cocaine from Miguel Anthony Valentin-Colon and Dhamyl Roman-Audiffred, who served as Cobb’s sources of supply. Valentin-Colon, along with his wife. Nicole Marie Merced-Plaud, their minor son, and Roman-Audiffred, arrived in their vehicle, a white minivan, at a residence on Roebling Avenue, as directed by Cobb. Roman-Audiffred exited the van and entered the residence’s kitchen, at which time co-defendant Deandre Wilson hit her in the head with a blunt object and she fell to the floor. Wilson then went outside and shot and killed both Valentin-Colon and Merced Plaud, in the presence of their minor son, who was seated in a child’s car seat. Wilson then drove the minivan and parked it on Scajaquada Street near Kilhoffer Street in Buffalo.
A short time later, Reed and Cobb moved the body of Dhamyl Roman-Audiffred from the kitchen into the residence’s basement, where they dismembered her body. Cobb placed the body parts into multiple trash bags and placed them into the trunk of his vehicle, and then Cobb and Reed drove to a residence on Box Avenue, removed the trash bags, and placed them into a burning fire in a fire pit area in the backyard.
The following day, during the early morning hours of September 16, 2019, Cobb and Wilson retrieved the minivan from Scajaquada Street, with the bodies of Miguel Valentin-Colon and Nicole Marie Merced-Plaud still inside, as well as their minor son. They drove the minivan into the yard of a residence on Tonawanda Street and doused the vehicle and the bodies with gasoline, lighting the vehicle and bodies on fire. They took the minor child and left him on a stranger’s porch on Potomac Avenue in Buffalo.
James Cobb and Deandre Wilson were previously convicted. Cobb was sentenced to serve 20 years in prison, while Wilson was sentenced to serve three life sentences.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney Michael Keane.
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Bronx Man Sentenced to 13 Years for Participating in International Fraud and Money Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BASHIRU GANIYU was sentenced today by U.S. District Judge Lewis A. Kaplan to 13 years in prison for his role in a criminal enterprise that defrauded individuals and businesses across the U.S. of millions of dollars. In April 2024, GANIYU was convicted following a jury trial of conspiracy to commit mail fraud and wire fraud, conspiracy to commit money laundering, conspiracy to receive stolen money, and receipt of stolen money.
U.S. Attorney Damian Williams said: “The defendant participated in a criminal enterprise that preyed on elderly people and other unsuspecting victims, deceiving them into sending millions of dollars in romance scams and other schemes. The defendant’s conduct devastated victims around the country, including many who were looking for companionship. Today’s sentence holds the defendant accountable for his conduct.”
As reflected in the Indictment, court filings, and the evidence presented at trial:
From in or about 2020 through in or about 2022, a criminal enterprise (the “Enterprise”) based in Ghana committed a series of romance scams and business email compromises against individuals located across the U.S., including in the Southern District of New York. The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise like GANIYU. The Enterprise also used business email compromises to trick individuals and businesses to send funds that the victims believed were being sent to legitimate business counterparties but were actually sent to accounts controlled by members of the Enterprise.
GANIYU received money sent by more than 40 victims of the Enterprise under false pretenses into 10 bank accounts held in the name of his purported business located in the Bronx, New York. After receiving nearly $12 million in stolen funds, GANIYU laundered these criminal proceeds to other members of the Enterprise or abroad at the direction of his co-conspirators.
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In addition to the prison term, GANIYU, 39, of the Bronx, New York, was sentenced to three years of supervised release and ordered to forfeit $11,744,115.07 and pay restitution in the amount of $7,675,785.32.
Mr. Williams praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Kudla and Matthew Weinberg are in charge of the prosecution, with assistance from Paralegal Specialist Lucy Gavin.
Brevard County Man Sentenced to More Than 8 Years in Federal Prison for Distributing FentanylRead the Press Release
Orlando, Florida – U.S. District Judge Julie S. Sneed has sentenced Jaylun Ramon Brown (30, Melbourne) to eight years and four months in federal prison for distributing fentanyl. Brown pled guilty on August 14, 2024.
According to court documents, a confidential source was used to conduct controlled purchases of fentanyl from Brown in 2024, first through a middleman, then directly from Brown. The controlled purchases revealed that Brown could distribute ounce and multiple ounce quantities of fentanyl at a time. A search warrant was also executed at Brown’s residence, resulting in the recovery of additional fentanyl. Much of the fentanyl distributed by Brown was adulterated with xylazine, also known to as “tranq,” “tranq dope,” and “zombie drug,” which was created as an animal tranquilizer for veterinary procedures and is not suitable or authorized for use in humans due to causing respiratory depression and low blood pressure.
This case was investigated by the Drug Enforcement Administration, the Palm Bay Police Department, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Megan Testerman.
Boston Man Sentenced to Prison for Fraudulently Obtaining Nearly $50,000 in COVID-Relief FundsRead the Press Release
BOSTON – A Boston man was sentenced on Nov. 15, 2024 for fraud and false statements charges in connection with a scheme to fraudulently obtain pandemic-related relief funds from the Paycheck Protection Program (PPP) made available under the Coronavirus Aid, Relief, and Economic Security Act.
Antawn Davis, 40, was sentenced by U.S. District Court Judge Julia E. Kobick to five months in prison and two years of supervised release. Davis was also ordered to pay $49,999 in restitution and forfeiture. In June 2024, Davis pleaded guilty to one count of wire fraud and one count of making false statements. Davis was arrested in February 2024 along with over 40 alleged Heath Street Gang members/associates, who were charged with racketeering conspiracy; drug trafficking; firearms charges; and financial frauds, including COVID-related fraud.
In April and May 2021, Davis submitted fraudulent PPP loan applications on behalf of his purported business. The applications contained multiple false statements, including the purported business’ total gross income in 2020 and the purpose of the loan. Davis also submitted false tax records in support of his loan applications. Based on the fraudulent applications, Davis received approximately $49,999 in PPP loans, which he then spent on non-business-related expenses, including transactions at a casino and at Saks Fifth Avenue.
Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Borrego Springs Man Sentenced to 120 Months in Prison for Possessing Child Sex Abuse MaterialRead the Press Release
NEWS RELEASE SUMMARY
SAN DIEGO – Robert Clonts, a registered sex offender from Borrego Springs, was sentenced in federal court today to 10 years in prison for possessing approximately 147 images of child sex abuse material.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from an online service provider about a customer who uploaded approximately 147 images of child sex abuse material on May 25, 2023. NCMEC provided this information to the Federal Bureau of Investigation, which identified Clonts as the customer who uploaded the child sex abuse material.
Following his arrest in December 2023, Clonts admitted to obtaining and viewing child pornography on a cellular device and other media devices. Clonts also verified his email address and phone number matched the information on the suspect account that uploaded the 147 images containing sexually explicit depictions of prepubescent minors.
Clonts pleaded guilty on August 13, 2024, admitting he possessed images of minors engaged in sexually explicit conduct. According to publicly filed documents in this case, Clonts was previously convicted in 1990 of lewd and lascivious acts with a child under the age of 14, which resulted in his registration as a sex offender.
“This defendant’s actions are a grave violation of both the law and human decency,” said U.S. Attorney Tara McGrath. “Those who put children in jeopardy will face the full force of justice.”
“This sentence should send a clear message that individuals who think they can get away with sexually exploiting children will be vehemently sought by law enforcement and ultimately brought to justice,” said FBI San Diego Special Agent in Charge Stacey Moy. “The FBI and it’s law enforcement partners take great pride in locking up criminals who commit these types of crimes and will remain dedicated to ensuring the safety of all Americans, especially children.”
This case is being prosecuted by Assistant U.S. Attorney Andrew Sherwood.
DEFENDANTS Case Number 24CR0048-H
Robert Colia Clonts Age: 67 Borrego Springs, CA
SUMMARY OF CHARGES
Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2452(a)(4)(B)
Maximum penalty: Twenty years in prison, and a mandatory minimum prison term of 10 years; $250,000 fine; Supervised release for life; Registration as a sex offender under the Sex Offender Registration and Notification Act
INVESTIGATING AGENCY
Federal Bureau of Investigation
Anchorage man guilty of August 2024 bank robberyRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage man late Friday for robbing a credit union in August 2024.
According to court documents and evidence presented at trial, on Aug. 12, 2024, Joseph Sledge, 30, arrived at a credit union in Anchorage around 11:35 a.m. and stated that he needed to make a withdrawal to a nearby security guard. Sledge entered the credit union wearing a baseball cap, grey COVID-19 facemask with a local Native corporation’s logo on it, flannel shirt, jeans and a plastic Pirate Bay necklace.
Sledge walked into the lobby and looked around before a teller signaled Sledge over to his station. Sledge approached and tossed a note on the counter that stated, “Give me $50,000 and all your cash.” The teller read the note multiple times and observed Sledge silently staring at him before he sent a message to his co-workers stating, “Code Red,” which meant there was a robbery in progress.
The teller placed $2,500 on the counter and Sledge left with the money and note.
When investigators identified the logo on Sledge’s mask, they distributed still shots from the robbery to the Native corporation and one employee recognized the defendant from an interaction earlier that day. Roughly 30 minutes before the robbery, Sledge went to the Native corporation’s office to pick up a shareholders check. When a staff member told him the check was not ready, he grabbed a COVID-19 mask with the company’s logo on it that were available for members and left.
Sledge then went to a different floor in the same building and entered a property management office where he asked a staff member if they were happy with their security. Sledge then asked the staff member for $20 and snacks, but the employee said no and asked Sledge to leave.
Sledge then exited the office and sat down at a coffee shop on the first floor of the building and fell asleep. At roughly 11:34 a.m., a building security guard asked Sledge to leave. The guard followed the defendant off the premise and observed him walking in the direction of the credit union. Sledge entered the credit union roughly one minute later.
On Aug. 16, 2024, law enforcement located and arrested Sledge at a location along the Seward Highway. At the time of his arrest, Sledge was wearing the same necklace, flannel shirt and jeans as worn during the robbery.
Sledge was convicted of one count of credit union robbery.
“There’s no such thing as free money in the United States of America,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Mr. Sledge used intimidation to steal from a local credit union and will now face the consequences of his actions. Thank you to the FBI and Anchorage Police Department for contributing to this successful prosecution. Our office will continue to work with law enforcement to hold criminals accountable and fight for justice.”
"Today’s conviction demonstrates the FBI’s commitment to aggressively pursue criminals who terrorize and steal from our community,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Utilizing FBI Anchorage’s Safe Streets Task Force, the FBI will continue to work closely with our law enforcement partners to pursue and apprehend criminals like Joseph Sledge so they are held accountable for their crimes.”
The FBI Anchorage Field Office and Anchorage Police Department investigated the case.
Assistant U.S. Attorneys Amy Miller and Alana Weber are prosecuting the case.
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Albion Man Sentenced for Guns-for-Drugs Straw Purchase SchemeRead the Press Release
BANGOR, Maine: An Albion man was sentenced in U.S. District Court in Bangor today for knowingly making false statements to a Federal Firearms Licensee (FFL) while purchasing firearms.
U.S. District Judge John A. Woodcock, Jr. sentenced Jason Palmer, 43, to 12 months and one day in prison followed by three years of supervised release. Palmer pleaded guilty on October 24, 2023.
According to court records, between June and August 2022, Palmer obtained five pistols in five separate transactions with an FFL located in Fairfield. In each of those transactions, Palmer completed the required Form 4473 and misrepresented that he was the actual buyer of the firearm when he was in fact purchasing it for another individual. He also falsely indicated on the form that he was not an unlawful user of any controlled substances. In an interview with law enforcement, Palmer admitted that he had been offered heroin/fentanyl in exchange for purchasing the firearms.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Waterville Police Department investigated the case.
STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her.
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80 Year Prison Term for Man Convicted in Double Homicide in Southeast WashingtonRead the Press Release
WASHINGTON – Beysean Jones, 29, of Washington, D.C., was sentenced today to 80 years in prison for the July 2022 deadly shooting of Ronald Brown, 19, and Tijuan Wilson, 41, in Southeast Washington, D.C. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court jury found Jones guilty of two counts of first-degree murder while armed, one count of assault with intent to kill, three counts of possession of a firearm during a crime of violence, and two counts of possession of a firearm by a person previously convicted of a crime on June 26, 2024, before the Honorable Michael O’Keefe.
According to the evidence presented during trial, on July 22, 2022, Beysean Jones and Ronald Brown argued at the SC Discount Tobacco and Grocery store on South Capitol St. SW. Shortly thereafter, shots fired from Brown’s vehicle struck Jones’ vehicle and Jones returned fire in the 4000 block of Livingston Rd. SE. A civilian witness who associated with Jones in the drug trade testified about texts he received from Jones about the shooting on the 22nd and Jones’ actions in preparing to retaliate against Brown, including putting a $30,000 bounty on the person who shot him.
Just five days later, surveillance video captured a vehicle follow Ronald Brown’s vehicle into a residential parking lot surrounded by apartments in the 4300 block of 4th St. SE. That vehicle backed into a parking space several spaces down from Brown’s vehicle and at least two shooters opened fire with both .40 caliber and rifle rounds, firing over 60 rounds in the direction of Brown. This barrage of fire killed Tijuan Wilson and badly injured his partner of over 18 years, though luckily their children, who were outside at the time, were unharmed. Others in the parking lot returned fire. Multiple vehicles and residential buildings were damaged by gunfire.
Casings left behind on July 27th near the suspect vehicle were ballistically linked to the casings Jones fired at Brown on July 22nd.
The convictions would not have been possible without the assistance of the extraordinary efforts of Metropolitan Police Department Homicide Squad, led by Detective Konstantinos “Gus” Giannakoulias, and the excellent work of personnel from the U.S. Attorney’s Office including, Lead Paralegal Specialist Meridith McGarrity, Paralegal Specialist LaShone Samuels, Supervisory Paralegal Specialist Tasha Harris, Victim/Witness Program Specialist Latrice Washington-Williams, Investigative Analyst Zach McMenamin, Supervisory IT Specialist Leif Hickling, Litigation Technology Specialist Sigourney Jackson, Witness Security Specialist Marlon Hernandez, Witness Security Specialist Robert Cephas, Supervisory Victim Witness Service Coordinator Katina Adams, Victim Witness Service Coordinator Shanika McCullough, Homicide Interns Tasha Dambacher and Karen Padilla, and former Homicide Intern Xander de los Reyes.
It was prosecuted by Assistant U.S. Attorneys Andrea Antonelli and Zach Horton of the U.S. Attorney’s Office for the District of Columbia.
Sunday 17 November 2024
Taunton Man Sentenced to Two Years in Prison for Illegally Possessing FirearmRead the Press Release
BOSTON – A Taunton man was sentenced on Nov. 15, 2024 for being a felon in possession of a firearm.
Jermaine Rodrigues, 34, was sentenced by U.S. District Court Judge Angel Kelley to two years in prison, followed by three years of supervised release. In June 2024, Rodrigues pleaded guilty to one count of being a felon in possession of a firearm. In July 2023, Rodrigues was indicted by a federal grand jury.
In June 2022, Rodrigues possessed two Anderson Manufacturing AM-15, .300 blackout firearms – one of which was equipped with a laser sight and optics affixed to the top rail. In addition, Rodrigues possessed almost 100 rounds of .300 blackout ammunition.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Valuable assistance was provided by the Taunton and Fall River Police Departments. Assistant United States Attorneys Luke A Goldworm and Meghan C. Cleary of the Major Crimes Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Saturday 16 November 2024
Three Men Charged in Proactive Law Enforcement ActionRead the Press Release
CONCORD – Charging documents were unsealed earlier today alleging three defendants attempted to sex traffic a child at a Manchester hotel, U.S. Attorney Jane E. Young announces. These three defendants were arrested as a result of a proactive federal and local law enforcement action.
To date the following defendants have been charged by criminal complaint with attempted sex trafficking of a minor:
- Stacey Ray Lancaster, age 46, Hudson, New Hampshire. Lancaster is in federal custody and will appear in federal court on Monday, November 18, 2024 at 1:00pm.
- Arthur Picanco, age 42, Bradford, Massachusetts. Picanco is in federal custody and will appear in federal court on Monday, November 18, 2024 at 3:00pm.
- Ozeias Luiz Guilherme, age 38, Haverhill, Massachusetts. Guilherme is in federal custody and will appear in federal court on Monday, November 18, 2024 at 2:30pm.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the Manchester Police Department, the New Hampshire Attorney General’s Office, and the New Hampshire Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Matthew Vicinanzo, Kasey Weiland, Anna Krasinski and Georgiana MacDonald are prosecuting the cases.
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.
Community questions should be directed to the U.S. Attorney’s Public Voicemail Line at 603-230-2563.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Friday 15 November 2024
Woman Charged with Embezzling more than $100,000 in Funds Used to Support Children in Foster Care from the Spokane Tribe of IndiansRead the Press Release
Spokane, Washington – On November 7, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Tawhnee Willow Colvin, of Davenport, Washington, with more than two dozen counts for allegedly embezzling more than $100,000 from the Spokane Tribe of Indians.
Between September 2019 and October 2023, Colvin was employed as Assistant Director of the Spokane Tribe of Indians’ Department of Health and Human Services and Division of Child and Family Services (DCFS).
As part of her position as Assistant Director of DCFS, Colvin had access to the Spokane Tribe of Indians bank account that held per capita funds for children who were in foster care. This DCFS bank account was maintained to ensure that guardians would receive these funds for the children in their care. According to the indictment, caregivers received funds by a check from the DCFS bank account or in cash. When caregivers accepted a cash payment, they signed a receipt to document the disbursement. Documentation of checks and cash receipts were to be maintained by the Spokane Tribe of Indians Department of Health and Human Services.
As alleged in the indictment, between October 2019 and November 2023, Colvin made more than 50 fraudulent money transfers, totaling $50,880, from the DCFS bank account to her own personal bank account. The indictment further alleges that between September 2019 and April 2021, on at least 17 different days, Colvin made cash withdrawals totaling $49,950 for which DCFS has no documentation or receipts supporting that any of these funds were provided to caregivers.
“Individuals in positions of trust have an obligation to protect the funds they oversee. This is all the more important for resources dedicated to vulnerable members of our community, such as children in foster care,” said United States Attorney Vanessa R. Waldref. “My office takes fraud seriously, and will continue to work with our federal, tribal, state, and local law enforcement to expose and prosecute public corruption, self-dealing, and fraud.”
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by United States Attorney Vanessa Waldref and Assistant United States Attorney Dan Fruchter.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2:24-cr-00148-TOR
Winter Park Man Sentenced to More Than Five Years in Federal Prison for Receiving Child Sex Abuse ImagesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Kevin Thompson (35, Winter Park) to five years and six months in federal prison for receipt of child sex abuse material. Thompson entered a guilty plea on July 22, 2024.
According to court documents, an undercover FBI agent discovered an Internet Protocol (IP) address that was sharing files containing child sex abuse material. The investigation traced the IP address back to Thompson and his Winter Park residence. During the execution of a search warrant at Thompson’s residence, the FBI located dozens of files depicting the sexual abuse of children on Thompson’s smartphone device. During an interview with FBI agents, Thompson admitted to utilizing his smartphone to download and view child sex abuse material while at his residence. Thompson further told agents that he had been viewing child sex abuse material for approximately 14 years.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael Sartoian.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Washington State Resident Sentenced to 14 Years in Prison for Role in Fentanyl Trafficking ConspiracyRead the Press Release
JOHNSTOWN, Pa. – A resident of SeaTac, Washington, was sentenced in federal court to 168 months in prison, to be followed by five years of supervised release, on his conviction of conspiracy to distribute and possession with intent to distribute fentanyl, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Sahal Sahal, 38, on November 14, 2024.
According to information presented to the Court, from in and around October 2022 to in and around June 2023, in the Western District of Pennsylvania, Sahal conspired with others to distribute and possess with intent to distribute 400 grams or more of fentanyl. Sahal was intercepted on a federal wiretap obtaining quantities of fentanyl that he distributed to others.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Sahal. Additional agencies participating in this investigation include the Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Virginia hospital system agrees to $2.37M False Claims settlementRead the Press Release
ALEXANDRIA, Va. – Inova Health System Foundation, Inova Health Care Services, Inc., and Inova Physician Partners, LLC, (collectively, Inova), located in Falls Church, agreed to pay $2,378,731.06 to settle claims that it submitted claims to Medicaid that contained falsified information.
Inova voluntarily submitted written disclosures to the U.S. Attorney’s Office and the Virginia Attorney General’s Office. Specifically, the disclosure stated that, between Jan. 1, 2020, and Aug. 31, 2020, Inova had submitted claims to Medicaid for reimbursement, including resubmitted claims for reimbursement, for sterilization and hysterectomy procedures that contained documentation that had been improperly modified by or at the request of one or more Inova employees. These modifications resulted in the claim containing falsified information. Following an internal investigation, Inova took remedial actions and agreed that $1,585,820.71 received from Medicaid was improper.
This settlement resolves federal and state civil claims under the federal False Claims Act, Virginia Code §§ 32.1-312,32.1-313, and 8.01-216 et seq., and common law remedies.
Inova received full credit under the Justice Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Department of Health and Human Services, Office of Inspector General, and the Office of the Attorney General for the Commonwealth of Virginia, Medicaid Fraud Control Unit.
The matter was handled by Assistant U.S. Attorney John E. Beerbower and Kimberly M. Bolton, Assistant Attorney General, Virginia Medicaid Fraud Control Unit.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled are allegations only; there has been no determination of civil liability.
United States Reaches Settlement Agreement to Make Daycare Program Accessible for Children with DisabilitiesRead the Press Release
ATLANTA – The United States Attorney’s Office for the Northern District of Georgia has entered into a settlement agreement with Smarter Kids Child Care (“Smarter Kids”) located in Smyrna, Georgia, to resolve allegations that Smarter Kids violated the Americans with Disabilities Act (“ADA”) by denying a child an opportunity to participate in its daycare program on the basis of his autism.
“Access to childcare is essential for all parents, including those parents raising children with disabilities” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve equal opportunities to participate in daycare programs, and my office looks forward to working with Smarter Kids to ensure it meets this critical obligation.”
Title III of the ADA prohibits discrimination on the basis of disability in the full and equal enjoyment of the goods, services, facilities, and privileges of any place of public accommodation. Smarter Kids is a private entity that operates childcare facilities that are places of “public accommodation” within the meaning of Title III of the ADA.
Based on the agreement, Smarter Kids will adopt a non-discrimination policy to ensure ADA compliance. Smarter Kids will also provide mandatory training for all employees who consider requests for reasonable accommodations or make enrollment decisions. Additionally, Smarter Kids will pay $7,000 in compensation to the complainant and $1,000 to the United States as a civil penalty.
The case is being handled by Assistant U.S. Attorney Rahul Garabadu and Senior Civil Investigator Tamara Jones.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Settlement Agreement:
smarter_kids_settlement_agreement_executed.pdfU.S. Attorney Damien M. Diggs announces Operation Purple Ribbon targeting domestic violence offenders in the Eastern District of TexasRead the Press Release
PLANO, Texas – Bringing an end to domestic violence is a top priority for the U.S. Department of Justice. Domestic violence is a pervasive problem in Texas, where, in 2023, 205 Texans were killed by their intimate partners across 64 counties. The Eastern District of Texas is proud to announce the unveiling of Operation Purple Ribbon—an initiative specifically targeting domestic violence abusers for federal prosecution, announced U.S. Attorney Damien M. Diggs.
Domestic violence is a pattern of abusive behavior in any relationship that is used by one partner to gain or maintain power and control over another intimate partner. It can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and education levels. Domestic violence occurs in both opposite-sex and same-sex relationships and can happen to intimate partners who are married, living together, dating, or share a child.
In an effort to prevent more domestic violence related homicides from occurring in the Eastern District of Texas, the strategy behind Operation Purple Ribbon is clear—to bring together and unite federal, state, and local resources for the sole purpose of holding domestic abusers accountable. The initiative prioritizes prosecutions of federal firearms offenses (and other criminal offenses) that arise in domestic violence settings. Operation Purple Ribbon is intended to be a force multiplier to the work already being by our state and local law enforcement partners, who do the heavy lifting in seeking to hold domestic abusers accountable.
Most federal domestic violence crimes fall into two categories:
Offenses under the Gun Control Act, which prevents prohibited persons—including convicted felons, individuals previously convicted of misdemeanor crimes of domestic violence, and individuals subject to certain protective orders—from possessing firearms, or from lying to firearms dealers about their status; and
Crimes under the Violence Against Women Act, which prohibits interstate stalking, cyberstalking, and using interstate commerce to commit domestic violence or violate protective orders.
Although Operation Purple Ribbon was formally announced last week, the Eastern District of Texas has been doing impactful work in this space for over a year and has prosecuted more than 20 domestic abusers who unlawfully possessed firearms. One of those cases was John Richard Burch, Jr., an individual with a history of domestic violence, sentenced to 235 months in federal prison for drug trafficking and firearms violations. Another case was Jorge Luis Castelan, Jr., sentenced to 57 months in federal prison for a firearms violation arising from a domestic disturbance.
“In the Eastern District of Texas, we must remain vigilant in our efforts to hold domestic abusers accountable, particularly when that abuser is in possession of a firearm, as it is our goal to promote peace and safety in the home,” said U.S. Attorney Damien Diggs. “We have no higher priority than keeping our communities and families safe. Every child deserves to grow up in a safe environment and without fear from those within their homes.”
Two KC Area Brothers Indicted for Possessing Machine GunsRead the Press Release
KANSAS CITY, Mo. – Two Kansas City, Mo., area men have been indicted by a federal grand jury, in separate cases, for illegally possessing machine gun conversion devices.
Demetrius Harris, also known as “Meech,” 24, of Kansas City, Mo., and his brother, Darius R. Harris, also known as “D” and “D2,” 22, of Raytown, Mo., were charged in two separate indictments returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Nov. 6. Those indictments were unsealed and made public following the arrests and initial court appearances of the defendants.
The initial court appearances were held today for Demetrius Harris and on Thursday, Nov. 14, for Darius Harris.
Demetrius Harris was charged with one count of illegally possessing and transferring machine guns – an Anderson Manufacturing AM-15 multi-caliber rifle with an AR-type machine gun conversion device and two AR-type machine gun conversion devices – on Jan. 24, 2024.
Darius Harris was charged with two counts of illegally possessing and transferring a Glock-type machine gun conversion device on two separate occasions, on Oct. 30, 2023, and on Nov. 9, 2023.
Machine gun conversion devices, also known as “switches” or “auto searsa,” are used to convert semi-automatic weapons into machine guns that fire multiple shots automatically through a single pull of the trigger, enabling more rapid and often less accurate gunfire. Whether or not they are attached to a firearm, these devices constitute machine guns under federal law. It is therefore illegal to possess, sell, or use machine gun conversion devices.
These cases are being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Three Defendants Indicted on Methamphetamine Trafficking ChargesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment Thursday against Francisco Cornejo-Quezada, 21, of Watsonville; and Shawn Eric Morales Sr., 51, and Renee Michele Hermann, 54, both of Hood, charging all three defendants with conspiracy to distribute methamphetamine and related offenses, U.S. Attorney Phillip A. Talbert announced.
According to court documents, all three defendants are charged with conspiracy to distribute and possess with intent to distribute over 500 grams of methamphetamine. The indictment also charges the defendants with multiple counts of distributing methamphetamine and charges Morales and Hermann with possession with intent to distribute methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration and Homeland Security Investigations, with assistance from the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, each defendant faces a minimum statutory penalty of 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Texas and Lafourche Parish Residents Guilty of Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on November 12, 2024, YOLANDA TILLMAN, (“TILLMAN”), age 42, of Des Allemands, Louisiana, and ANJHAELYN HAYNES, (“HAYNES”), age 28, of Humble, Texas, pled guilty before U.S. District Judge Brandon S. Long to charges stemming from a cocaine distribution conspiracy. Both are scheduled for sentencing on February 18, 2025.
TILLMAN pled guilty to conspiracy to distribute, and possess with intent to distribute, controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846. At sentencing she faces a minimum of 5 years and up to 40 years imprisonment, up to a $5,000,000 fine, and at least 4 years of supervised release.
HAYNES pled guilty to conspiracy to distribute, and possession with intent to distribute, controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846. At sentencing, she faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release. All counts also carry a mandatory $100 special assessment fee.
According to court records, beginning on a time unknown, but continuing until at least June 5, 2024, TILLMAN, HAYNES, and others, conspired to distribute, and possess with intent to distribute, cocaine and methamphetamine throughout the Lafourche and Terrebonne Parish within the Eastern District of Louisiana. The conspiracy involved obtaining narcotics from Houston, Texas and transporting the narcotics to Thibodaux, Louisiana. The conspiracy was carried out through wire and electronic communications, and the use of multiple vehicles.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at http://www.justice.gov/OCDETF.
United States Attorney Evans praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Thibodaux Police Department, the Lafourche Parish Sheriff’s Office, and the Terrebonne Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Staten Island Crips Gang Member Pleads Guilty to Coercion and Enticement of a Minor and Being a Felon in Possession of a FirearmRead the Press Release
Earlier today, in federal court in Brooklyn, Justin Dixon pleaded guilty to coercion and enticement of a minor and to being a felon in possession of a firearm. The proceeding was held before United States District Judge William F. Kuntz II. When sentenced, Dixon faces a mandatory minimum term of 10 years in prison and a maximum of life in prison.
Breon Peace, United States Attorney for the Eastern District of New York; James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Thomas G. Donlon, Interim Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“With today’s guilty plea, the defendant has added directing the prostitution of a minor and being a felon in possession of a firearm to his criminal history, and he will face the consequences for his lack of respect for the law,” stated United States Attorney Peace. “The Penn Track is a blight on our district, and predators like the defendant who operate there are going to be held accountable by my Office and our law enforcement partners for their ruthless exploitation of women and minors.”
Mr. Peace expressed his appreciation to the Richmond County District Attorney’s Office for their assistance during the investigation.
“Justin Dixon trafficked a 14-year-old girl, along with several other women, for commercial sex and issued violent punishments to ensure adherence to his demeaning rules. Dixon’s twisted ruse allowed him to groom victims before forcing them into sexual servitude on the infamous Penn Track where profits are valued over bodily autonomy. The FBI will continue its mission apprehending predators who prey upon innocent populations out of financial greed,” stated FBI Assistant Director in Charge Dennehy.
“Today’s guilty plea sends a powerful message that crimes against our most vulnerable population, our children, will not be tolerated in our city,” stated NYPD Interim Commissioner Donlon. “It also reaffirms the unwavering dedication of law enforcement to ensure public safety for all New Yorkers. I commend our investigators, as well as our partners at the FBI and the office of the U.S. Attorney for the Eastern District of New York, for their relentless efforts in combating the scourge of sex trafficking. Their determination to hold Mr. Dixon accountable for his actions and to obtain justice for the survivors of these horrific crimes is truly commendable.”
As set forth in court filings, in January 2023, Dixon used violence and threats of violence to compel a 14-year-old minor (Jane Doe) to engage in commercial sex for the defendant’s financial benefit. Dixon transported the minor victim—as well as other women—to an area in East New York, Brooklyn near Pennsylvania Avenue, which is known as the “Penn Track” or the “Blade.” Dixon forced Jane Doe and other women to engage in prostitution and demanded that the proceeds of their sex work be turned over to him. Any resistance from the victims was met with violence. During this time period, the defendant was affiliated with the Crips street gang.
Dixon used social media and other internet applications to establish relationships with potential victims, groom them and manipulate them into working for him as prostitutes. Jane Doe was forced to live in a Staten Island house, along with Dixon and other women. Dixon required that Jane Doe and the other women clean the house, cook for him and bathe him. Dixon would not allow the women to be clothed inside the house and would physically punish the women if they disobeyed any of these rules.
Dixon called Jane Doe “tiny,” and told her that she needed to eat more food in order to look older than her age. The defendant also told Jane Doe that he was arranging a trip to Florida for her to have plastic surgery, including breast implants, to make her appear older.
Prior to his arrest, Dixon brandished firearms in the presence of Jane Doe and other victims. In January 2023, law enforcement officers executed a search warrant in connection with the investigation and recovered a defaced Ruger LCP .380 caliber handgun inside a vehicle used by Dixon to transport Jane Doe and other women to the Penn Track. Prior to possessing this firearm, Dixon had a felony conviction.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorney Lorena Michelen is in charge of the prosecution.
The Defendant:
JUSTIN DIXON
Age: 33
Staten Island, New YorkE.D.N.Y. Docket No. 23-CR-090 (WFK)
Statement of U.S Attorney Damian Williams on the Conviction of Alvin EusebioRead the Press Release
“As evidence has shown during the trial of Alvin Eusebio, the 174th Street Crew was a large-scale narcotics organization, principally operating in Washington Heights. Earlier today, Eusebio was convicted in connection to this crew that operated an organized and sophisticated operation, staffing managers to ensure 24/7 coverage, and even disciplining members who missed work or demanding proof of illness (such as a doctor’s note or picture of a positive COVID-19 test). All to pump narcotics onto our streets, including deadly fentanyl. Eusebio’s federal conviction is indicative of the consequences facing those who peddle massive amounts of illegal narcotics on New York’s streets.”
South Carolina Man Arrested for Hate-Based Threats to Kill News Reporter and Her FamilyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that AUSTIN SUMAN was arrested after he made a series of violent and hate-based threats to a news reporter, threatening to kill her and her family, as well as blow up her house. SUMAN was arrested in Myrtle Beach, South Carolina, this morning and will be brought to the Southern District of New York to be presented in White Plains federal court.
U.S. Attorney Damian Williams said: “The charges against the defendant demonstrate our resolve to work at lightning speed to neutralize threats against the press—which serves a vital role in our democracy. To any individual who dares to cross the line and make hate-based threats against members of our press: you will be found, and you will be held accountable for your actions.”
FBI Assistant Director in Charge James E. Dennehy said: “Austin Suman allegedly made numerous threats and ethnic slurs to a local news reporter to file a personal grievance against her for her previous reporting of his prior arrest. His alleged threats to inflict significant harm with firearms and explosives were delivered with intimidation and prejudice. Hiding behind a screen will not prevent the FBI’s pursuit of those who target others with hateful messages of violence and death.”
As alleged in the Complaint:[1]
On Friday, November 8, 2024, SUMAN sent messages over Facebook and email threatening a news reporter based in Orange County, New York. “You are a dumb spick, we [are] coming for you,” he said. “I will end you and your family.” “You better stay in [N]ew [Y]ork.” SUMAN also threatened to blow up the victim’s residence: “I can blow your house off [its] foundation tread lightly.” His threats appeared motivated by an article the reporter wrote several years ago, which related to SUMAN’s arrest for threatening a former roommate with a firearm, resulting in his guns being taken away. He added that all his guns were returned, stating “I have more guns than ever,” including “ful[ly] auto[matic]” weapons. SUMAN’s threats also appeared motivated by gender, race, ethnicity, and national origin. “[D]umb fuckin cunt . . . female journalist what a joke.” “[D]umb Mexican,” he said, while repeating ethnic slurs against people of Hispanic, Latin American, or Spanish descent. “We are going to deport your family all of them . . . [u]seless life. Dumb bitch. I would drag you by your legs naked with my horse.” “Guess what I have now? More [guns] than you or your family might know. Fucking spicks.”
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SUMAN, 35, of Myrtle Beach, South Carolina, is charged with threatening interstate communications, which carries a maximum sentence of five years in prison; willfully making a threat involving explosives, which carries a maximum sentence of 10 years in prison; and interstate stalking, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI and the Hudson Valley Safe Streets Task Force in swiftly investigating the threats charged in the Complaint. Mr. Williams also thanked the New York State Police, Horry County Police Department, and FBI Columbia Division.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Reyhan Watson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Six Defendants Charged with Narcotics Conspiracy in PeekskillRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of six individuals charged with participating in a drug conspiracy that distributed large amounts of cocaine and fentanyl on the streets of Peekskill, New York. The defendants, JASON TINSLEY, a/k/a “Floss,” JEROME REED, a/k/a “Pops,” RAKIM MAYO, a/k/a “Bo,” THOMAS RYAN, GARY BURKETT, and MIESHA CATO, were arrested and arraigned on Tuesday before U.S. Magistrate Judge Andrew E. Krause. The case is assigned to U.S. District Judge Kenneth M. Karas.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, the defendants participated in a conspiracy to flood the streets of Peekskill with cocaine, crack, and fentanyl. They allegedly operated throughout the City of Peekskill, on the street and in public housing complexes, disrupting people’s everyday lives and brazenly infesting the streets and residential buildings of Peekskill with dangerous drugs while they sought to get rich. Our investigation remains ongoing, and I thank our law enforcement partners and the career prosecutors of this Office who are working tirelessly to keep drug dealers and dangerous illegal drugs out of our communities.”
FBI Assistant Director in Charge James E. Dennehy said: “These six defendants allegedly organized a regional narcotics trade to supply significant amounts of highly addictive drugs, including cocaine and fentanyl, through various personal and intermediary transactions. The alleged conspiracy operated on the streets and within local residential complexes, putting the wellbeing and safety of residents at risk through the increased presence of illegal drugs. The FBI will continue to dismantle and terminate the flow of illegal drugs plaguing our communities.”
As alleged in the Indictment unsealed in White Plains federal court and statements made in court proceedings:
From roughly April 2024 until their arrests this week, the defendants participated in a conspiracy to supply and distribute large amounts of primarily cocaine, crack cocaine, and fentanyl in Peekskill, New York, along with methamphetamine and other narcotics. They operated out of multiple residential buildings, including Peekskill’s Bohlmann Towers and Dunbar Heights public housing complexes, actively selling drugs everyday themselves and through street sellers and couriers.
In addition to arresting the defendants on Tuesday, the FBI, City of Peekskill Police Department, the Westchester County Police Department, and other members of the FBI’s Westchester County Safe Streets Task Force and its partners also executed multiple search warrants in Peekskill, Brooklyn, and New Jersey. In these searches, members of law enforcement discovered multiple kilograms of methamphetamine and crack cocaine, PCP, multiple firearms and rounds of ammunition, and over $100,000 of cash and jewelry.
If you have any information about this case, please contact the FBI at 1-800-Call-FBI or tips.fbi.gov.
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TINSLEY, 42, of Peekskill, New York; REED, 35, of Peekskill, New York; MAYO, 35, of Brooklyn, New York; RYAN, 43, of Brooklyn, New York; BURKETT, 62, of Peekskill, New York; and CATO, 37, of Peekskill, New York, are charged with narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI Westchester County Safe Streets Task Force, the City of Peekskill Police Department, the Westchester County Police Department, and the Drug Enforcement Administration. Mr. Williams also thanked the Yorktown Police Department, the New York City Police Department, and the New York State Police.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Justin L. Brooke is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sisseton Woman Acquitted of Theft from an Indian Tribal OrganizationRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sisseton, South Dakota, woman was acquitted of Theft from an Indian Tribal Organization following a federal jury trial in Aberdeen, South Dakota, on November 12-14, 2024.
Diahna Kirk, a/k/a Diahna Rose Kirk, age 36, was indicted by a federal grand jury in May 2024.
The charge related to the alleged embezzlement of money by Kirk belonging to the Sisseton-Wahpeton Oyate Fuel Inc., which is an Indian tribal organization
The investigation was conducted by the U.S. Attorney’s Office and the FBI. The U.S. Attorney's Office prosecuted the case.
Sioux Falls Man Sentenced to Federal Prison for Illegally Selling Firearms in South DakotaRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. Chief Judge Roberto A. Lange has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on November 12, 2024, in Sioux Falls.
Ocean Stevenson, age 21, was sentenced to 12 months and one day in federal prison, followed by three years of supervised release. He was ordered to pay a $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Stevenson was indicted by a federal grand jury in May 2024. He pleaded guilty on August 5, 2024.
On December 13, 2023, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted an operation targeting Stevenson as an illegal seller of firearms. During the operation, an ATF agent assumed an undercover role and exchanged in communications with Stevenson, during which Stevenson agreed to sell a .40 caliber handgun. The agent met with Stevenson at a location in Sioux Falls to complete the sale. Stevenson is prohibited from possessing firearms due to a 2023 felony conviction in Pennington County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the ATF and the Sioux Falls Police Department. Special Assistant U.S. Attorney Mark Joyce prosecuted the case.
Stevenson was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Seven More Sentenced for Roles in Meth Conspiracy Tied to Officer’s MurderRead the Press Release
ABINGDON, Va. – Seven more defendants who participated in a conspiracy to distribute methamphetamine tied to the murder of Big Stone Gap, Virginia Police Officer Michael Chandler, were sentenced this week in federal court.
Misty Lynn Ward, 36, of Big Stone Gap, Virginia, Anthony Holmes, 39, of Appalachia, Virginia, and Keri Leanna Corbin, 44, of Jonesville, Virginia were all sentenced yesterday. Holmes was sentenced to 130 months, Ward to 30 months, and Corbin to time served- 24 months and 19 days for their respective roles in the conspiracy.
Kacie Lynn Werner, 43, of Big Stone Gap, Amanda Blanton, 42, of Big Stone Gap, Lucille Vanover, 33, of Kingsport, Tennessee, and Tiny Westmoreland, 47, of Big Stone Gap, were sentenced earlier this week. Werner was sentenced to 36 months, Blanton to 36 months, Westmoreland was sentenced to 60 months, and Vanover was sentenced to time served, 24 months and 17 days.
Previously sentenced for their roles in the conspiracy were: Timothy Ray Jones - 235 months; Charles Ryan Bowman - 120 months; Elicia Amber Burns - 172 months; James Brian Mullins - 180 months; Justin Dwayne Skaggs - 132 months; Tyler Lee Westmoreland - 54 months, Hailee Dietz and Paul Jones, were each sentenced to 121 months; and James Ray Worley - 120 months.
A total of 19 defendants were charged for conspiring to distribute more than 15 kilograms of methamphetamine, as well as heroin and fentanyl. According to court documents, beginning in August 2021 and continuing until their arrest, the 19 defendants participated in a conspiracy to traffic methamphetamine from Tennessee and other states into southwest Virginia, and then further distribute it throughout Wise County, Virginia.
Tragically, at approximately 4:00 a.m. on November 13, 2021, Officer Chandler responded to a welfare check call at 2505 Orr Street in Big Stone Gap, known locally as “the red house.” Upon arriving at the Orr Street address, Officer Chandler encountered a vehicle outside the residence and was immediately shot by Michael Donivan White. Officer Chandler died later that evening from his injuries. White was later located at a motel in Kingsport, Tennessee, and a subsequent search of the motel room revealed a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler. Michael Donivan White was indicted on federal and state charges for killing Officer Chandler and has since pled guilty in both cases. White is scheduled to be sentenced in federal court in Abingdon on February 20-21, 2024.
United States Attorney Christopher R. Kavanagh, and Anthony A. Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department.
Assistant U.S. Attorneys Lena L. Busscher and Danielle Stone are prosecuting the case.
San Francisco Man and New York Man Charged in Scheme to Defraud InvestorsRead the Press Release
OAKLAND – A federal grand jury indicted Avi Fogel, now known as Avi King, and Christos Chrestatos each with one count of conspiracy to commit wire fraud and four counts of wire fraud. Fogel was also charged with one count of false writings to a government agency and an additional count of wire fraud.
Fogel, 47, of San Francisco (who was also known as, in addition to Avi King, Aaron Rose, Aaron Rothchild, and Aaron Gilman), self-surrendered on Nov. 7, 2024, and made his initial appearance in federal court in Oakland that same day. Chrestatos, 45, of Long Island, N.Y., also known as Chris Silverman, was arrested today, and made his initial appearance in federal court in the Eastern District of New York.
According to the indictment filed Oct. 3, 2024, and unsealed Nov. 7, 2024, defendants allegedly engaged in an investment fraud scheme wherein they purported to be producers in the entertainment industry with close ties to “A-list” actors, directors, and other celebrities. Fogel allegedly met potential victims in a variety of places, such as dating websites and shared taxi rides. At various times, defendants claimed to be producers at “Universal.” The indictment alleges that the men lied to victims about their ability to arrange investment and product integration deals in feature films, documentaries, and television series when they knew they had no actual connection to the productions and no affiliation with Universal.
Defendants allegedly created entities, including Suzy and the Sock Dragon Media Group, LLC, Rhinoheart Films, LLC, and The Book Media Group, LLC, to entice investors to invest in their fraudulent scheme. According to the indictment, Fogel and Chrestatos fraudulently obtained investments from multiple victims totaling approximately $167,100, and used the funds for purposes other than as represented to investors.
Additionally, the indictment alleges that Fogel submitted a fraudulent loan application to the U.S. Small Business Administration through the Economic Injury Disaster Loan Program, ultimately receiving $52,400. Fogel allegedly claimed that his company, Suzy and the Sock Dragon Media Group, LLC, was engaged in “entertainment services,” had $125,000 in gross revenues and sold $20,000 in goods, amounts that were derived from the money obtained through defendants’ investment fraud scheme.
The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp.
Both defendants were released on bond. Fogel’s next scheduled appearance is on Dec. 9, 2024, for a status hearing before the Honorable Araceli Martínez-Olguín, U.S. District Judge.
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 each face a maximum sentence of 20 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the charges of conspiracy to commit wire fraud and wire fraud in counts one to five. Additionally, if convicted, Fogel faces a maximum sentence of 30 years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the wire fraud charge in count six, and five years of imprisonment, a fine of $250,000, three years of supervised release, and forfeiture for the false writings to a government agency charge in count seven. However, 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.
Assistant U.S. Attorney Benjamin K. Kleinman is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI.
Avi Fogel Indictment
Reno Man Sentenced to 10 Years in Prison for Coercion and Enticement of A MinorRead the Press Release
RENO – A Reno resident was sentenced by United States District Judge Miranda M. Du to 10 years in prison to be followed by 20 years of supervised release for coercion and enticement of a teenage boy.
According to court documents, in March 2023, Gregory Weeks (37) engaged in sexually explicit conversations with and sent nude videos of himself masturbating to a 15-year-old boy. The conversations included making plans to have sex in a hotel in Reno. Weeks drove from Utah to Reno and picked the victim up outside the gate leading to the victim’s home. Weeks then drove the victim to a hotel where Weeks made reservations and engaged in sexual activities with the victim.
In July 2024, Weeks pleaded guilty to one-count of coercion and enticement. In addition to imprisonment, Weeks was also ordered to pay $6,150 in restitution to the victim. Under the Sex Offender Registration and Notification Act (SORNA), after his release from prison, Weeks will be required to register as a sex offender.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI-led Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of detectives and investigators from the Sparks Police Department, Washoe County Sheriff’s Office, Nevada Attorney General’s Office, and Homeland Security Investigations (HSI) investigated the case. Assistant United States Attorney Megan Rachow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children by calling 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org.
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QOL Medical and Its CEO Agree to Pay $47 Million for Allegedly Paying Kickbacks to Induce Claims for QOL's Drug SucraidRead the Press Release
BOSTON – Pharmaceutical company QOL Medical, LLC (QOL) and its CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations that they caused the submission of false claims to federal health care programs, in violation of the False Claims Act, by offering kickbacks, in the form of free Carbon-13 breath testing services, to induce claims for QOL’s drug Sucraid.
Sucraid is an FDA-approved therapy for the rare genetic condition, Congenital Sucrase-Isomaltase Deficiency (CSID). CSID patients have difficulty digesting sucrose (table sugar) and suffer from chronic gastrointestinal symptoms such as diarrhea, abdominal pain, bloating and gas.
As part of the settlement, QOL and Mr. Cooper admitted and accepted responsibility for certain facts providing the basis of the settlement. Beginning in 2018, QOL, with Mr. Cooper’s approval, distributed free Carbon-13 breath test kits to health care providers and asked providers to give the kits to patients with common gastrointestinal symptoms. QOL claimed that the test could “rule in or rule out” CSID. In fact, the test does not specifically diagnose CSID. Conditions other than CSID can cause a patient to test “positive” for low sucrase activity on a Carbon-13 breath test. Approximately 30% of the Carbon-13 breath tests from QOL were positive for low sucrase activity.
QOL paid a laboratory to analyze the breath tests, report the results to health care providers, and provide the results to QOL. The results QOL received from the laboratory did not contain patient names, but did contain the name of the health care provider who ordered the test, along with the patient’s age, gender, symptoms and test result. Between 2018 and 2022, QOL disseminated this information to its sales force with instructions to make sales calls for Sucraid to health care providers whose patients had positive Carbon-13 breath test results. QOL tracked whether sales representatives converted “positive” Carbon-13 breath tests into Sucraid prescriptions. As QOL’s CEO, Mr. Cooper was aware of and approved the implementation and continuation of this marketing program.
Some QOL sales representatives also made claims regarding the Carbon-13 test’s ability to definitively diagnose CSID that were not supported by published scientific literature. For example, in slides at a 2019 national sales training, which Mr. Cooper reviewed, QOL suggested that sales representatives tell health care providers, “If you have a positive breath test, the patient will not improve unless you treat with Sucraid.”
“QOL provided free goods to doctors and patients in order to induce prescriptions for the very expensive drug QOL manufactured,” said Acting United States Attorney Joshua S. Levy. “Not all kickbacks come in the form of cash going into a doctor’s or a patient’s pocket. Here, the defendants relied on free breath tests and misleading sales tactics to drive patients to their product. This conduct unnecessarily drained money from the federal health care programs and improperly influenced treatment decisions by physicians and their patients.”
“Participants in the federal healthcare system, including pharmaceutical manufacturers, may not offer improper inducements to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the integrity of federal health care programs, upholding the objectivity of treatment decisions by physicians and patients and preventing overutilization and waste in government health care programs.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will thoroughly pursue allegations of False Claims Act violations.”
“It is extremely important that we protect our government funded health care programs against fraud of any kind. Today’s settlement with QOL Medical and its CEO is the result of years of hard work by the FBI and our partners to make sure this company did not get away with offering improper incentives to boost sales of its drug Sucraid,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Let this case be a warning to others that we will aggressively pursue all those, motivated by greed, who try to unlawfully enrich themselves at taxpayers’ expense.”
“The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, has placed a high priority on pursuing companies that engage in fraudulent activity at the expense of the U.S. military,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “This settlement demonstrates our commitment to protecting the TRICARE program, and we will continue to work with our partners to ensure critical healthcare funds are utilized in the appropriate manner.”
“QOL misled doctors and patients by claiming their breath test could definitively diagnose CSID when there was not reliable data to support those claims,” said Special Agent in Charge Fernando McMillan, FDA Office of Criminal Investigations New York Field Office. “FDA will continue to pursue those who make unsupported claims that can jeopardize the public health for financial gain.”
The allegations resolved by the settlement agreement were, in part, originally bought in a case filed under the qui tam or whistleblower provisions of the False Claims Act by former QOL Medical employees. The case is captioned United States ex rel. John Doe 1, et al. v. QOL Medical, LLC, et al., No. 1:20-cv-11243 (D. Mass.). Of the total $47 million recovery, approximately $43.6 million constitutes the federal portion of the recovery and approximately $3.4 million constitutes a recovery for State Medicaid programs. The whistleblowers will receive approximately $8 million as their share of the recovery.
This matter was handled by Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts and Trial Attorneys Emily Bussigel and Paige Ammons of the Justice Department’s Civil Division. The case was investigated by HHS-OIG, FBI, DCIS and the Office of Inspector General for the Department of Veterans Affairs.
Portage Man Sentenced to 8 Years in Prison for Telemarketing FraudRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Irfan Gill, 63, of Portage was sentenced to 8 years in prison following convictions, at trial, for mail fraud and money laundering in connection with an international telemarketing scheme. Gill was also ordered to pay $561,980.27 in restitution to the victims of this case.
“Irfan Gill preyed on older Americans to pad his own pocket, leaving victims scared and ruined,” said U.S. Attorney Mark Totten. “Every day these scams happen across America and target vulnerable members of our communities. We’re fighting to hold these criminals accountable, but above all want to prevent these crimes. I encourage everyone to protect themselves and their loved ones: be wary of unsolicited calls; never share sensitive information; and resist the pressure to act quickly.”
The evidence at trial showed that between at least June 2018 and March 2022, Gill worked with a call center in Pakistan that defrauded over 1,500 primarily elderly people across the United States into paying a total of more than $560,000.00 for cable and satellite television upgrades and subscription discounts that were never provided. Callers in Pakistan convinced victims to mail checks and money orders to post office boxes in Portage, including, in some cases, by threatening to terminate victims’ television services. Gill retrieved victims’ payments and deposited them into bank accounts in the names of fake cable and satellite television businesses, including Cable Upgrade, D Network, D Tech, Direct Network, Dish, Dish Upgrade, and Sky Satellite. Gill kept track of the payments, attributing specific victims to specific overseas callers, and calculated how much money to keep for himself and how much to wire to Pakistan. Gill avoided detection by opening multiple post office boxes and bank accounts for his fake companies and by making efforts to convince several bank investigators that his fake companies were legitimate. The jury convicted Gill of seven counts of mail fraud and eleven counts of money laundering in connection with his telemarketing scheme.
In addition to the telemarketing scheme, Gill did not report or pay taxes on the fraud proceeds and, during the COVID-19 pandemic, he fraudulently obtained over $20,000.00 in Paycheck Protection Program loans for a fake cable and satellite television company that did not exist.
“This sentencing highlights the U.S. Postal Inspection Service’s dedication to safeguarding our most vulnerable citizens, especially the elderly, from those who seek to exploit them for personal financial gain,” said Inspector in Charge Rodney M. Hopkins of the U.S. Postal Inspection Service, Detroit Division. “This individual’s fraudulent activities inflicted untold financial and emotional distress on the victims, and today’s sentencing reaffirms our commitment to protecting the public from such schemes. We will continue to be vigilant in our pursuit of justice for those who would prey upon the vulnerable.”
Federal law enforcement provides a number of tips on how to protect yourself from telemarketing scams, including:
- Be cautious of unsolicited phone calls, e-mails, and mailings.
- Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses.
- Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action.
- If you recognize a scam attempt, immediately end all communication with the perpetrator.
The U.S. Postal Inspection Service investigated this case, and Assistant U.S. Attorneys Adam Townshend and Stephen Baker prosecuted it.
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Porcupine Man Sentenced to Four Years in Federal Prison for Sexually Abusing a Minor FemaleRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Porcupine, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on November 13, 2024.
Michael Lee Spider, Jr., age 30, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Spider was indicted for the charge by a federal grand jury in April of 2024. He pleaded guilty on August 5, 2024.
In September of 2023, Spider met up with a 14-year-old female at a residence in the Pine Ridge Reservation. The female became intoxicated and high on marijuana. Spider and the female engaged in a sexual act.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Spider was immediately remanded to the custody of the U.S. Marshals Service.
Plankinton Man Charged as an Unlawful User of Controlled Substances in Possession of FirearmsRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Plankinton, South Dakota, man for Possession of Firearms by a Prohibited Person.
Cory John Cumings, age 45, was indicted in November of 2024. He appeared before U.S. Magistrate Judge Veronica L Duffy on November 14, 2024, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, up to three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 21, 2023, Cumings, knowing he was an unlawful user of controlled substances, was in possession of excess of 100 firearms and ammunition.
The charge is merely an accusation and Cumings is presumed innocent until and unless proven guilty.
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.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the South Dakota Division of Criminal Investigation. The Davison County Sheriff’s Office and the Mitchell Police Department also assisted with the investigation. Special Assistant U.S. Attorney Mark Joyce is prosecuting the case.
Cumings was released on bond pending trial. A trial date has not been set.
Pharmaceutical Company QOL Medical and CEO Agree to Pay $47M for Allegedly Paying Kickbacks to Induce Claims for QOL’s Drug SucraidRead the Press Release
Pharmaceutical company QOL Medical LLC (QOL) and its co-owner and CEO, Frederick E. Cooper, have agreed to pay $47 million to resolve allegations that they caused the submission of false claims to federal health care programs, in violation of the False Claims Act and similar state statutes, by offering kickbacks in the form of free Carbon-13 breath testing services to induce claims for QOL’s drug Sucraid.
Sucraid is an FDA-approved therapy for the rare genetic condition Congenital Sucrase-Isomaltase Deficiency (CSID). CSID patients have difficulty digesting sucrose (table sugar) and suffer from gastrointestinal symptoms such as diarrhea, abdominal pain, bloating and gas.
Beginning in 2018, QOL, with Cooper’s approval, distributed free Carbon-13 breath test kits to health care providers and asked providers to give the kits to patients with common gastrointestinal symptoms. QOL claimed that the test could “rule in or rule out” CSID. In fact, the test does not specifically diagnose CSID. Conditions other than CSID can cause a patient to test “positive” for low sucrase activity on a Carbon-13 breath test. Approximately 30% of the Carbon-13 breath tests from QOL were positive for low sucrase activity.
QOL paid a laboratory to analyze the breath tests, report the results to health care providers and also provide the results to QOL. The results provided to QOL did not contain patient names, but did contain the name of the health care provider who ordered the test, along with the patient’s age, gender, symptoms and test result. Between 2018 and 2022, QOL disseminated this information to its sales force with instructions to make sales calls for Sucraid to health care providers whose patients had positive Carbon-13 breath test results. QOL tracked whether sales representatives converted “positive” Carbon-13 breath tests into Sucraid prescriptions. As QOL’s CEO, Cooper was aware of and approved the implementation and continuation of this marketing program.
Some QOL sales representatives also made claims to health care providers regarding the Carbon-13 test’s ability to definitively diagnose CSID that were not supported by published scientific literature. For example, in slides at a 2019 national sales training, which Cooper reviewed, QOL suggested that sales representatives tell health care providers, “If you have a positive breath test, the patient will not improve unless you treat with Sucraid.”
As part of the settlement, QOL and Cooper admitted and accepted responsibility for certain facts providing the basis of the settlement.
“Participants in the federal healthcare system, including pharmaceutical manufacturers, may not offer improper inducements to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting the integrity of federal health care programs, upholding the objectivity of treatment decisions by physicians and patients and preventing overutilization and waste in government health care programs.”
“QOL provided free goods to doctors and patients in order to induce prescriptions for the very expensive drug QOL manufactured,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Not all kickbacks come in the form of cash going into a doctor’s or a patient’s pocket. Here, the defendants relied on free breath tests and misleading sales tactics to drive patients to their product. This conduct unnecessarily drained money from the federal health care programs and improperly influenced treatment decisions by physicians and their patients.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting taxpayer-funded health care programs and the patients served by those programs, and we will thoroughly pursue allegations of False Claims Act violations.”
“Kickbacks have no place in our healthcare system,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This settlement should send a message that the FBI is committed to finding fraudsters and investigating all those who try to exploit the healthcare system at the expense of patients.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, has placed a high priority on pursuing companies that engage in fraudulent activity at the expense of the U.S. military,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “This settlement demonstrates our commitment to protecting the TRICARE program, and we will continue to work with our partners to ensure critical healthcare funds are utilized in the appropriate manner.”
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the qui tam or whistleblower provisions of the False Claims Act by Elizabeth Allen, Lauren Canlas, Donald Johnson and Stacey Adams, who are former QOL Medical employees. The case is captioned United States ex rel. John Doe 1 et al. v. QOL Medical LLC, et al., No. 1:20-cv-11243 (DMA). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did, in part, in this case. Of the total $47 million recovery, approximately $43.6 million constitutes the federal portion of the recovery and approximately $3.4 million constitutes a recovery for State Medicaid programs. The whistleblowers will receive approximately $8 million from the federal portion of the recovery.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. 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 resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG, the FBI Boston Field Office, DCIS and Department of Veterans Affairs’ Office of the Inspector General.
Trial Attorneys Emily Bussigel and Paige Ammons of the Justice Department’s Civil Division and Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts handled the matter.
With the exception of the facts admitted by QOL and Cooper, the claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Patrick Bryant Hawley Arrested for Sexual Exploitation of ChildrenRead the Press Release
CHATTANOOGA, Tenn. — On November 14, 2024, Patrick Bryant Hawley, 42, of Lookout Mountain, Tennessee, was arrested in Chattanooga by agents of Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) on charges involving sexual exploitation of children.
An initial appearance was held at 4:00 p.m. on Thursday, November 14, 2024, in the United States District Court in Chattanooga, before United States Magistrate Judge, Honorable Susan K. Lee, in the United States District Court for the Eastern District of Tennessee. Hawley was detained following this proceeding. An arraignment is scheduled for Friday, November 22, 2024. A trial date will be set at a later time.
The details of the charges are outlined in the arrest warrant and supporting affidavit, which are filed as public records in the United States District Court for the Eastern District of Tennessee at Chattanooga.
United States Attorney, Francis M. Hamilton, III, of the Eastern District of Tennessee, Special Agent in Charge, Rana Saoud, with HSI, and Special Agent in Charge, Joseph E. Carrico, with FBI made the announcement.
HSI encourages anyone who believes that they or someone they know has been a victim of child exploitation should contact HSI at (877) 4-HSI-TIP or online at www.ice.gov/tipline.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Owner of Florida Healthcare Companies Pleads Guilty to Tax CrimesRead the Press Release
A Florida man pleaded guilty today in federal court in Miami to not paying employment taxes and not filing his individual income tax returns.
According to court documents, Paul Walczak, of Palm Beach Gardens, controlled a web of interconnected healthcare companies operating under various names, including Palm Health Partners and Palm Health Partners Employment Services (PHPES). At its peak, PHPES employed over 600 people and paid over $24 million dollars annually in payroll.
From 2016 through 2019, Walczak withheld nearly $7.5 million in taxes from his employees’ paychecks but did not pay over those taxes to the IRS as required by law. He did this despite having been penalized by the IRS in 2014 for not paying his employees’ taxes. During this same period, Walczak also did not pay $3,480,111 of the business’s portion of his employees’ Social Security and Medicare taxes.
At the same time Walczak was withholding taxes from his employees’ wages and not paying them to the IRS, he used over $1 million from his businesses’ bank accounts to purchase a yacht, transferred hundreds of thousands of dollars to his personal bank accounts and used the business accounts for personal spending at retailers such as Bergdorf Goodman, Cartier and Saks Fifth Avenue.
For 2019 through 2020, Walczak did not file personal income tax returns despite being legally required to do so.
In total, Walczak caused a tax loss to the IRS of $10,912,334.80
Walczak is scheduled to be sentenced on Feb. 28, 2025. He faces a maximum penalty of five years in prison for the employment tax charge and one year in prison for not filing income tax returns. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Andrew Ascencio, Brian Flanagan and Ashley Stein of the Justice Department’s Tax Division are prosecuting the case.